asesores financieros corporate presentation · capacity installed in thousands tons, as of june...

Asesores Financieros

Corporate Presentation | September 2014

EXTENDED VERSION

3

Company Overview

Source: Company Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of June 2014, (1) Net Profit of 2011 have an extraordinary effect of US$157 millions mainly due to the sale of CTI(2) Net Profit of 2013 have an extraordinary loss of US$29.2 millions mainly due to the sale of Sigdopack

Corporate Presentation |Sigdo Koppers

Sales(US$ millions)

Consolidated EBITDA(US$ millions)

Net Profit (US$ millions)

Sigdo Koppers, Chilean conglomerate founded in 1960. One of the most dynamic and important industrial groups in Chile. Our commitment is a

long term investment industrial approach, aiming to be a comprehensive supplier of products and

services for the mining and industrial operations worldwide.

SK ComercialIngeniería y

ConstrucciónEnaex Magotteaux

60.43% 60.72% 95.00% 85.77%

Enaex Magotteaux SK Comercial

SKBergéPuerto

VentanasCHBBSK Godelius

50.01% 58.19% 74.59% 40.00%

286(1)

At a G

lance

121(2) 115(2)

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Corporate Governance

Ownership StructureBoard of Directors

Source: Santiago Stock Exchange. (1) Last 12 month

Corporate PresentationSigdo Koppers

Successful US$440 millions capital increased (Issued between Dec-11 and mid Jan-12)

Daily Average vol. traded (1): US$0,73 millions

Market Cap: US$1,780 millions (As of Sep 4th 2014)

4,69% Stock Brokers

7,49% Mutual Funds and other institutional investors

8,63% Pension Funds and Insurance companies

2,77% Others

Ownership structure as of July 20141. Juan EduardoErrázuriz OssaChairman

2. Naoshi MatsumotoTakahashiVicepresident

3. Juan Andrés FontaineTalaveraDirector

4. Horacio Pavez García Director

5. Norman Hansen RosésDirector

6. Canio Corbo LioiDirector

7. Jaime Vargas Serrano Director

14 752 63

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lance

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Corporate Presentation |

Corporate Social Responsibility (CSR)

Sigdo Koppers

SK seeks sustainable development, with a business vision that favors respect for ethics, people, communities and environment.

Sigdo Koppers is part of UN Global Compact, under which it committs to respect principles of responsible behavior, in order to achieve the objectives of building a sustainable and inclusive global economy

Environment: Carbon credit (CERs)

project (Enaex) ISO 14001 certification

Community: CFT Talcahuano. Improving community

environment (SquareSKBergé, Program “Un contrato, un árbol” SKC)

Dialog programs(PVSA)

Labor Relations: Emphasis on occupational

health and risk prevention Training and labor

certification (ICSK) Integration of people with

disabilities(SKBergé)

Corporate Governance: Code of Ethics Investor Relations

Customers and Suppliers : ISO 9001 Studies

SK manages and measures the development of CSR under ISO 26.000 certification

At a G

lance

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Supplier of products and services for the mining

Strategic Focus: Provide products and services for the mining and industry

Involved in the main stages of the mining value chain

aprox 75% of the SK’s Consolidated EBITDAcomes from the exposure to the mining activities

Corporate Presentation |Corporate Strategy

Str

ate

gic

focus

on the m

inin

g indust

ry

…

Anglo American - Minera Los Bronces: 1 2 3 4+ + +

BHP Billiton - Minera Escondida:

1 2 3 4+ + +Codelco – Andina:

1 2 3+ +

ORE PROCESSING

MINING OPERATION SALES & LOGISTICSMINING DEVELPOMENT

1 3 42

8

ICSKIndustrial Construction Services

Puerto Ventanas

ICSK

Industrial Services Industrial Commercial & Automotive

Enaex Magotteaux CHBB / SK Godelius SKC SKBergé

Ingeniería y Construcción Sigdo Koppers (ICSK) is a leading company in the execution of engineering, construction and industrial erection projects with a solid reputation both in Chile and abroad

+50 years of experience in construction and industrial erection

The company has participated in the execution of the main relevant projects for the development of Chile , and has also executed large scale works in Peru and Argentina

The company has ample experience in projects in the areas of Mining and Metallurgy, Chemistry and Petrochemistry, Energy Generation and Transmission, Industrial Buildings , Pulp and Paper, and Civil Works

ICSK owns a large fleet of new construction machinery

Long term relationship with Bechtel

Consolidated Sales(US$ millons)

Source: ICSK

9

Environmental

solutions for

the local

industry

through

services and

consultancies.

Services of

construction

and erection of

medium- scale

projects.

Support to

clients in the

areas of

operation, long

term

maintenance

of their

productive

assets and

operation of

Industrial

assets.

Technical

training

organization

committed to

the

development of

qualified

human

resources.

Engaged in

construction

and erection

projects in

Peru.

Civil works

construction,

submarine pipe,

electro

mechanics

erections,

utilities and port

works.

Puerto Ventanas

ICSK



10

Puerto VentanasLogistics and transport

Leading private port in the central region ofChile

Puerto Ventanas engages in two lines ofbusiness: Loading and unloading solid and liquid

bulk Storage of the cargo if necessary

Main cargo associated to mining and energyclients: mineral concentrates, coal, fuel

It has ample stockpiling yards and modernfacilities that offer significant comparativeadvantages

Ferrocail del Pacífico S.A. (Fepasa) is the mainsubsidiary of Puerto Ventanas (51,82%)

Fepasa is the largest railroad freight companyin the central and south zone of Chile

Tons transfered(Thousands tons)

Source: PVSA

Puerto Ventanas

ICSK



11

Puerto VentanasLogistics and transport

.

Port Business

Loading & unloading

Warehousing

Railroad

Business

Puerto Ventanas

ICSK



12

EnaexRock fragmentation services

Founded in 1920, Enaex is the most importantproducer of ammonium nitrate, miningexplosives and provider of integral rock-breakingservices in Chile and Latin America

The company is vertically integrated in its mostimportant raw materials and conducts virtuallyall activities in the value chain of rock-blasting

Enaex is the leader in the Chilean market (60%)

Enaex has four production plants: Loa River, LaChimba, Teatinos Point and Prillex America

The company developed the largest CarbonEmission Project in Chile. The greenhouse gasemission rights have been assigned toMitsubishi

Jun-12: Enaex and the Brescia Group (Peru)acquired 66,7% of the Britanite (Brazil)

Consolidated Sales(US$ millons)

Source: Enaex

Puerto Ventanas

ICSK



13

Largest Ammonium Nitrate Plant in the region

Prillex America (Chile) 850 thousands tons/year

Factory Trucks: 71

Service Plants: 23

Río Loa: Cartridge Explosives Plant

La Chimba: Cartridge Emulsions Plant

50 years of experience in explosives manufacturing and rock blasting services

Leader in Brazil with 41% of MkSh

Services and Explosives(Chile)

International BusinessPetrochemical Area

Puerto Ventanas

ICSK



14

Magotteaux, based on Belgium, is a leading global provider of high chrome grinding media (GM) and castings

Principal end markets for Magotteaux’s products are the mining and cement industries

The company has 19 wholly-owned manufacturing facilities across 11 countries and 25 commercial offices worldwide

The main facilities are located in Belgium, Brazil, United States and Thailand

Magotteaux has a Joint Venture with Scaw Metals in South Africa

Installed capacity (tons/year)

High chrome GM: 249.000

Low chrome GM: 55.000

Forged steel GM: 55.000

Castings: 68.500

JV with Scaw Metals: 100.000 (high chrome GM)

Magotteaux provides high value-added products, being recognized as an innovation and technology leader

MagotteauxHigh performance wear resistant consumables

(1) Figures 2009-2011 does not consolidate Sabo Chile and 50% of Proacer. After 2011, Figure consolidates both SK Sabo Chile and 100% of Proacer

Consolidated Sales(1)

(US$ millions)

Source: Magotteaux

Puerto Ventanas

ICSK



15

MagotteauxHigh performance wear resistant consumables

41.4

54.0

37.9

80.0

100.0

9.0

5.0

3.8

5.0

7.3

4.5 (2)

33.22.5

9.0

9.7 6.5

9.0

Castings Scaw Metals – Technical Assistance

60.050.0

High chrome GM (1) Low chrome GM Forged steel GM

Source: Magotteaux Capacity installed in thousands tons, as of June 2014

(1) GM: Grinding Media(2) Capacity installed in Thailand will increase to 9.0 ths tons by 2015

Puerto Ventanas

ICSK



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CHBBCompañía de Hidrogeno del Bío Bío S.A.

Compañía de Hidrógeno Bio Bio S.A. (CHBB) owns a highly pure hydrogen production plant that supplies only the Bio Bio Refinery owned by Empresa Nacional del Petróleo (ENAP) in in the borough of Talcahuano.

Sigdo Koppers S.A. owns 82,87% of the shares in SK Inversiones Petroquímicas (SKIP), which holds 90% of the shares in CHBB.

ENAP pays a fixed annual fee to CHBB regardless the production of the plant.

SK GodeliusCompañía de Tecnología e Información

SK Godelius is a system integrator which provides services,develops projects and implements technological solutions inthe mining and the natural resources industries.

Sigdo Koppers S.A. owns 100% of the shares in SK InversionesTecnológicas (SKIT), which holds 58,19% of the shares in SKGodelius.

SK Godelius has focused in providing technological solutionsfor the mining industry.

Puerto Ventanas

ICSK



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Founded in 1975, SK Comercial S.A. (SKC),through its subsidiaries, conducts thebusinesses of the sale, rental of machinery,distribution of inputs and technical services

The SKC is present in Chile, Peru and Brazil

SKC and SKC Rental (SKC´s subsidiary) carryout their commercial activities in sectorssuch as mining, construction, agriculture,forestry, land and air transportation

SKC Rental is the leading company in the Rental industry in Chile. It has a machinery fleet of US$243 millions

Dic-12: SKC Rental began its operations in Colombia

SK ComercialSale, Rental and Service of machinery

Consolidated Sales(US$ millions)

Source: SKC

Puerto Ventanas

ICSK



18

Services and Parts

Machinery Rental

Machinery Distribution

Puerto Ventanas

ICSK



19

SKBergéAutomotive Sales

SKBergé S.A. was formed by SK and theBergé Group (Spain) to develop the businessof the representation, sale and distributionof light vehicles in Chile, Peru, Colombia andArgentina

SKBergé is the leading automotive retailgroup in Chile in terms of revenue (n° 2 inunits)

In 2008 began the operations of SantanderConsumer Finance, a subsidiary of SKBergéthat specialize in automotive finance

The company has a dealership networkcomprised of 106 dealers, 223 points of saleand 218 service branches

Consolidated Sales(US$ millions)

Source: SKBergé

Puerto Ventanas

ICSK



20

SKBergé – Brand representation by Country

Perú

Argentina

Chile

Colombia

Puerto Ventanas

ICSK



22

Investment attractiveness

Global Network Global Network

Leadership in all business

areas

Leadership in all business

areas

Successful Industrial

history

Successful Industrial

history

Strategic focus on the mining and

industry

Strategic focus on the mining and

industry

Steady Growth &

Consistent Profitability

Steady Growth &

Consistent Profitability

Conservative Financial position


23

Succ

ess

ful In

dust

rial his

tory

Enlargementplant

was founded

1960

Foundation of Acquisition of

Joint Venture with Bergé Group in the automotive

commercialization business

1975 1987 1990 1997 1998 2001 2003 2005 2006 2009

Acquisition ofPlastic films

production initiated through

Foundation of our Rental business

Acquisition of

Acquisition of

Starts its operations

Foundation of

Foundation of

2010 2011

Divestment of

Acquisition of

Enlargementplant

Presentacion Corporativa |

Our Industrial development history

• Our solid 50+ years of track record have demonstrated our ability to managed and developed successful industrial

greenfield investments.

• Our businesses have has been developed in both organic and inorganic growth.

• We have a long term investment industrial approach, managing and optimizing our companies operations.

Source: Company

Consideraciones de Inversión .Corporate Presentation

Sigdo Koppers

1

Long term investment approach

and

and

2012

Acquired 33.3% of

SK enter to the property of

1999

Divestment of EMEC S.A.

Acquisition of EMEC S.A.

1986 2013

Divestment of

24


Track record

Consistent and steady growth

Consolidated Sales Sigdo Koppers S.A.(1)

(US$ millions)

Investment approach

Consolidated EBITDA Sigdo Koppers S.A(1).(US$ millions)

Net Profit Sigdo Koppers S.A.(1)

(US$ millions)

Ste

ady

Gro

wth

& C

onsi

ste

nt

Pro

fitabili

ty2 Source: Company

(1) Figures of 2011 considers 4Q of Magotteaux and CTI accumulated until AugustCAGR: Compound annual growth rate.

• Sigdo Koppers has maintained a consistent

growth in all the businesses it manages, with an

special focus on the innovation and search of

new opportunities

• Our growth is accompanied by a consistent

investment policy, which is focused on return

over our investments

25


Concrete growth plan

Source: Company

• Consolidate aquisition of Britanite in Brazil

• Growth Project in ammonium nitrate capacity

(Panna 5– Mejillones expansion)

• New grinding media balls and castings plants in Asia

and Latinamerica

• Consolidate the business in Chile and Peru,

enhancing synergies with SK

• Expansion of the Rental machinery business in Brazil

and Colombia focusing on the mining, industry and

civil works

• Current backlog of US$648 millions mainly in the

mining sector, which will be executed during 2014-

2016

Investment approachS

teady

Gro

wth

& C

onsi

ste

nt

Pro

fitab

ility

2

26

Supply of products and services for the Mining and Industry

Mining Industry

Enaex

Magotteaux

ICSK

Puerto Ventanas

Fepasa

Sigdopack


Str

ate

gic

focu

s on the m

inin

g a

nd in

dust

ry3

Source: Company

Investment approach

27

Corporate Presentation |Investment approach

Our clients – Mining and Industrial Blue Chip companiesF

oco

Est

raté

gic

o e

n la M

inerí

a e

Indust

ria

3S

trate

gic

focu

s on the m

inin

g a

nd in

dust

ry3

28


Glo

bal N

etw

ork

International approach

Investment approach

4 Since 2011, SK became a company with Global Exposure

As of today, 40% of SK’s sales are outside Chile (60%)

29

Leadership of our subsidiaries

Market Share Leadership by area

Biggest producer of Amonia Nitrate

and explosives for the mining in Latin

America

Regional leader in rock blasting

services

#1 worldwide provider of high-crome

grinding media balls

One of the main players in the

cement industry

Leader in the production of high

value-added wear resistant

consumable for the cement, mining,

fluid, dredging and utilities industries

Leader in the execution of

engineering, construction and

industrial erection in Chile

High prestige and long term

partnership with Bechtel

Main Ammonium Nitrate producer in the

region

#1Worldwide High-crome

grinding media balls producer

44%Market share in high-

crome grinding media balls for the cement industry (1)

33%Market share in construction

and industrial erection of large scale projects

Rock blasting services - Chile

Source: ENAEX, Magotteaux, ICSK.(1) Strategic Consultants, figures as of 2010

Corporate Presentation |Investment approach

Le

aders

hip

in a

ll busi

ness

are

as

5

#2Worldwide grinding

media balls producer

14%market share in high-

crome balls for the mining industry (1)

30

Leadership of our subsidiariesMarket Share Leadership by area

Puerto Ventanas leads the load and

unload of commodities in the central

region of Chile, specially copper and

coal

Fepasa is the main railroad freight

company in the central zone of Chile

Leader in both distribution and rent of

industrial machinery and equipment

in Chile

#2 in the machinery rental business

in Peru (Aprox. 10% of market share)

SKBergé is the biggest distributor of

automobiles in terms of revenues

Important player in the Peruvian and

Colombian market

69%of the total load

transferred through the Chilean central zone

(excl. containers)

12,7%Of all the new cars

sold in Chile – units (3)

(As of March 2014)

Solid commodities loaded by portChilean central zone (1) (As of Jun 2014)

Source: (1) Puerto Ventanas (2) SKC internal research (3) Based on units sold published by ANAC Chile;

31%in fork lift

18%en mini-loaders

30%in excavators

24%in machinery loaders

13%Market share,

measured by salesin Chile

(As of June 2012)

13%Of all new cars sold

in Perú – units(As of June 2012)

Corporate Presentation |Investment apporach

Le

aders

hip

in a

ll busi

ness

are

as

5

18%(2)

in the machinery rental business in Chile (As of December 2011)

31


Consolidated Balance Sheet(US$ millions)

Net Financial Leverage (Bonds Covenants)(Times)

Net Financial Debt / EBITDA(Times)

Credit rating - Local

Institution Rating Date

A+(1) July 2014

A+(2) July 2014

Source: Company. (1) Stable Outlook (2) Outlook Stable

Investment approach


Covenant: 0,5X

Covenant: 1,2X

2010 2011 2012 2013 Jun-2014

Current Assets 938 1,042 1,262 1,251 1,247

Non-current Assets 1,266 2,058 2,388 2,348 2,341

Total Assets 2,204 3,100 3,650 3,599 3,588

Current Liabilities 653 972 1,103 845 845

Non-current Liabilites 490 832 964 1,149 1,126

Equity (Atributable to the controler) 615 963 1,176 1,190 1,193

Equity (Non attributable to the controler)

446 332 407 415 424

Total Equity 1,061 1,295 1,583 1,605 1,617

Total Equity and Liabilities 2,204 3,100 3,650 3,599 3,588

2,09x

Conse

rvativ

eF

inanci

alposi

tion

6

Asesores Financieros

Corporate Presentation| September 2014

EXTENDED VERSION

asesores financieros corporate presentation · capacity installed in thousands tons, as of june...

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