asesores financieros corporate presentation | june 2015 ... · 6 ore processing supplier of...

Asesores FinancierosCorporate Presentation | June 2015

EXTENDED VERSION

3

Company Overview

Source: Company Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of March 2015, (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.

286(1)

At a

Gla

nce

121(2)

4

Corporate GovernanceOwnership StructureBoard of Directors

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

Corporate Presentation Sigdo Koppers

Daily Average vol. traded (1): US$0,6 millions

Market Cap: US$1,620 millions (As of Apr 30th 2015)

1. Juan EduardoErrázuriz OssaChairman

2. Naoshi MatsumotoTakahashiVicepresident

3. Juan Andrés FontaineTalaveraDirector

4. Horacio Pavez García Director

5. Norman Hansen RosésDirector

6. Canio Corbo LioiIndependent Director

7. Jaime Vargas Serrano Director

At a

Gla

nce

5,95% Stock Brokers

6,43% Mutual Funds and other institutional investors

9,21% Pension Funds and Insurance companies

1,99% Others

Ownership structure as of Mar-15

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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

Gla

nce

6

ORE PROCESSING

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 | Investment approach S

trate

gic

focu

s on

the

min

ing

and

indu

stry

Anglo American - Minera Los Bronces:

…

MINING OPERATION SALES & LOGISTICSMINING DEVELPOMENT

1 3 42

1 2 3 4+ + +

BHP Billiton - Minera Escondida:

1 2 3 4+ + +Codelco – Andina:

1 2 3+ +

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ICSKIndustrial Construction Services

Puerto VentanasICSK

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

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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 VentanasICSK



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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 VentanasICSK



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Puerto VentanasLogistics and transport

.

Port Business

Loading & unloading Warehousing

RailroadBusiness

Puerto VentanasICSK



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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 VentanasICSK



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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 VentanasICSK



11 years of experience in explosives and rock blasting services

10% of MkSh in A.N. in Perú

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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: 320.000Low chrome GM: 55.000Forged steel GM: 55.000Castings: 66.000 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 VentanasICSK



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MagotteauxHigh performance wear resistant consumables

41.4

54.0

37.9

135.0

100.0

9.0

5.0

3.8

5.0

7.3

4.5

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 December 2014 (1) GM: Grinding Media

Puerto VentanasICSK



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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 VentanasICSK



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

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

Dic-12: SK Rental began its operations in Colombia

SK ComercialSale, Rental and Service of machinery

Consolidated Sales(US$ millions)

Source: SKC

Puerto VentanasICSK



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Services and Parts

Machinery Rental

Machinery Distribution

Puerto VentanasICSK



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 VentanasICSK



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SKBergé – Brand representation by Country

Perú

Argentina

Chile

Colombia

Puerto VentanasICSK



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

Suc

cess

ful I

ndus

trial

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 Koppers1

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

sten

t Pro

fitab

ility

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

• Sigdo Koppers has maintained a consistentgrowth in all the businesses it manages, with anspecial focus on the innovation and search ofnew opportunities

• Our growth is accompanied by a consistentinvestment policy, which is focused on returnover our investments

25


Ste

ady

Gro

wth

& C

onsi

sten

t Pro

fitab

ility

Concrete Growth Plan

Source: Company

• Consolidate acquisition of Britanite in Brazil.• Consolidate acquisition of Chemtrade in Peru.

• 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

• Current backlog of US$717 millions mainly in the mining and electric sector, which will be executed during 2015-2017.

Investment approach2

• Expansion of the Rental machinery business in Brazil and Colombia focusing on the mining, industry and civil works

26

Supply of products and services for the Mining and Industry

Mining Industry

Enaex

Magotteaux

ICSK

Puerto Ventanas

Fepasa

Sigdopack


Stra

tegi

cfo

cus

on th

e m

inin

g an

d in

dust

ry3

Source: Company

Investment approach

27

Corporate Presentation | Investment approach

Our clients – Mining and Industrial Blue Chip companiesFo

co E

stra

tégi

co e

n la

Min

ería

e In

dust

ria3S

trate

gic

focu

s on

the

min

ing

and

indu

stry

3

28


Glo

bal N

etw

ork

International approachInvestment approach

4 Since 2011, SK became a company with Global Exposure

As of today, 39% of SK’s sales are outside Chile (61%)

29

Leadership of our subsidiariesMarket 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-cromegrinding 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 termpartnership 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 approachLe

ader

ship

in a

ll bu

sine

ss a

reas

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

SK Rental # 1 in Chile # 2 in Perú (15% Msh) # 3 in South America

Leader in distribution of industrial machinery and equipment in Chile

SKBergé is the biggest distributor of automobiles in terms of revenues

Important player in the Peruvian and Colombian market

62%of the total load

transferred through the Chilean central zone

(excl. containers)

12%Of all the new cars

sold in Chile – units (3)

(As of Dec 2014)

Solid commodities loaded by portChilean central zone (1) (As of Mar 2015)

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

13%Market share,

measured by salesin Chile

(As of May 2013)

18%Of all new cars sold

in Perú – units(As of Dec 2014)

Corporate Presentation | Investment apporach

Fork Lift 17%Telescopic handler 49%Articulated Trucks 82%

Motor Graders 28%

20% Machinery Rental in Chile

(Dic 2014)

Lead

ersh

ip in

all

busi

ness

are

as5

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

1,88x

2011 2012 2013 2014 Mar-15

Current Assets 1.042 1.262 1.251 1.162 1.182Non-current Assets 2.058 2.388 2.348 2.238 2.221Total Assets 3.100 3.650 3.599 3.401 3.403

Current Liabilities 972 1.103 845 734 289Non-current Liabilites 832 964 1149 1064 678Equity (Atributable to the controler) 963 1.176 1.190 1.199 1.210Equity (Non attributable to the controler) 332 407 415 404 408

Total Equity 1.295 1.583 1.605 1.602 1.618Total Equity and Liabilities 3.100 3.650 3.599 3.401 3.403

Con

serv

ativ

eFi

nanc

ialp

ositi

on6

Asesores FinancierosCorporate Presentation| June 2015

EXTENDED VERSION

asesores financieros corporate presentation | june 2015 ... · 6 ore processing supplier of...

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