3Q16 Results Presentation November Asesores Financieros

Transcription

1 3Q16 Results Presentation November 2016 Asesores Financieros

2 Resultados September-16 Agenda 01 General Background 02 Main Consolidated figures SK s subsidiaries Financial Highlights Exhibits

3 1 At a Glance Company Overview Corporate Presentation Sigdo Koppers Sigdo Koppers, Chilean conglomerate founded in 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. Sales (US$ millions) Ingeniería y Construcción Enaex Magotteaux SK Comercial Consolidated EBITDA (US$ millions) 60,43% 60,72% 97,75% 85,77% Puerto Ventanas SK Godelius CHBB SKBergé Net Profit (US$ millions) 286 (1) 50,01% 58,19% 74,59% 40,00% 121 (2) Source: Company Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of June 2016, (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 3

4 1 At a Glance Corporate Governance Board of Directors Corporate Presentation Ownership Structure Sigdo Koppers 7,82% Stock Brokers 4,34% Mutual Funds and other institutional investors 7,19% Pension Funds and Insurance companies 4,23% Others 1. Juan Eduardo Errázuriz Ossa Chairman 3. Horacio Pavez Aro Director 5. Canio Corbo Lioi Independent Director 7. Norman Hansen Rosés Director 2. Naoshi Matsumoto Takahashi Vicepresident 4. Juan Andrés Fontaine Talavera Director 6. Jaime Vargas Serrano Director Ownership structure as of Sep-16 Daily Average vol. traded (1) : US$0.3 millions Market Cap: US$1.4 billions (As of Nov 1st 2016) Source: Santiago Stock Exchange. (1) Last 12 month 4

5 Corporate Presentation Supplier of products and services for the mining Investment approach Strategic Focus: Provide products and services for the mining and industry aprox. 75% of the SK s Consolidated EBITDA comes from the exposure to the mining activities Involved in the main stages of the mining value chain MINING DEVELPOMENT MINING OPERATION ORE PROCESSING SALES & LOGISTICS Anglo American - Minera Los Bronces: Codelco Andina: BHP Billiton - Minera Escondida:

6 Results September-16 Agenda General Background Main Consolidated SK s subsidiaries Highlights Financial Exhibits figures

7 Highlights - September 2016 Consolidated Income Statement Sep-15 Sep-16 Var. Sa l es ,1% EBITDA (1) ,6% EBITDA Margin 15,7% 12,9% EBITDA Pro Forma (2) ,5% Profi t (Los s) ,3% Sigdo Koppers Net Profit (non recurrent) Figures in ThUS$ ,1% Dec-15 Sep-16 Var. Tota l As s ets ,6% Total Equity (3) ,6% Deuda Fi na nci era Neta ,6% Deuda Financiera Neta/ EBITDA 2,31 2,90 ROE 216,09% 266,10% ROCE 11,36% 7,77% Consolidated revenues decreased mainly explained by a lower level of sales in Magotteaux and Enaex and a tighter scenario with less activity in the businesses of leasing and selling of machinery (SK Comercial). Consolidated EBITDA amounted to US$211 millions,, a drop of 25% mainly due to a decline in the activity in the Service, Commercial and Automobile areas. Net profit totaled US$61 millions (-38%), a decrease explained by: More complex business scenario, particularly in mining and industry affects the volumes and results of the business areas of the company. Sigdo Koppers is executing plans of reorganization and cost efficiency in its different subsidiaries Sigdo Koppers has a good consolidated Cash liquidity of US$242 millions and a conservative level of consolidated debt The net financial debt-to-ebitda ratio is 2.9x and if we add consortiums net profit is 2.7x (1) EBITDA = Ganancia Bruta + Otros Ingresos por Función Costos de Distribución - Gastos de Administración Otros Gastos por Función + Gastos de Depreciación y Amortización (3) EBITDA Pro-forma: considera las utilidades de empresas relacionadas que no consolidan. 7

8 Results September-16 Agenda General Background Main Consolidated SK s subsidiaries Highlights Financial Exhibits figures

9 Main Subsidaries 60,43% 60,72% 85,77% 40,0% 97,75% 50,01% 51,82% DESARROLLO OPERACIÓN PROCESO VENTA Y LOGÍSTICA 53 años de experiencia en más de 300 proyectos de gran envergadura Producción de Nitrato de Amonio y Servicios de Tronadura Venta, Arriendo y Servicio de Maquinaria de prestigiosas marcas Comercialización de automóviles Producción de Bolas de Molienda y Piezas de desgaste (casting) Puerto de Carga a granel y combustible. Dueña de 52% Fepasa (tpte. ferroviario) (Presencia en Chile y Perú) (Presencia en Chile, Perú Brasil y Colombia) (Presencia en Chile, Perú Argentina y Colombia) (Presencia en 11 países) Cadena de valor de la minería e industria 9

10 Ingeniería y Construcción SK Ingeniería y Construcción Sigdo Koppers Sep-15 Sep-16 Var. 3Q15 3Q16 Var. MM$ MM$ % MM$ MM$ % Revenue ,6% ,0% EBITDA ,2% ,6% EBITDA Margin 5,6% -1,6% 6,0% -1,1% Pro-Forma EBITDA(*) ,5% ,8% Pro-Forma EBITDA Margin 10,8% 3,9% 12,7% 3,9% Controller's net profit ,3% ,4% Horas Horas Horas Horas Var. Var. (Miles) (Miles) (Miles) (Miles) Total man-hours executed ,1% ,9% (*) Pro-Forma EBITDA: EBITDA + Related company profit Current Advance Works Transmition line TEN/ECL reaches 55% advance and scheduled for completion 3T17. Project of Cochranne Thermoelectric plant and Desalinization plant for Escondida in final phase. SSK-Peru Earth Movement consortium with the company Excon with an extraordinary loss of $ 6,553 million at EBITDA level. Backlog Backlog equivalent to US$475 million (-7% compared to Jun 16). Main projects: TEN/Engie transmition line, GEAlstom/substations assembly and Codelco/ underground Chuquicamata tunnels. Projects awarded by US$ 274 million (Jan-Sep 2016) Major projects awarded: Talara (Peru), Marítime Terminal Penco Lirquen and maintenance of Bio Bio refinery (Enap) Pipeline: Important opportunities for new transmission lines in Brazil. 10

11 11 Puerto Ventanas Puerto Ventanas Consolidated Sep-15 Sep-16 Var. 3Q15 3Q16 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue ,3% ,2% EBITDA ,1% ,5% EBITDA Margin 33,1% 25,8% 31,1% 26,0% Controller's net profit ,2% ,0% PVSA - Tons transferred ,1% ,1% Fepasa - Th Ton-Km ,2% ,7% Puerto Ventanas Cargo Transfer Cu Concentrate transfer decreased (-17%) due to production problems at Codelco's Andina (-16%) Lower Coal transfers (-7%) due to high levels of inventories AESGener as of Dec-15. Swells have maintained the port with low operational availability during the 1S16. Investments New warehouse for Cu Concentrate : start Dec-16. Upgrade Site No.3: advance 25% and expected start Dec-17. Fepasa Mobilised load Cargo movement of Cu Concentrate (-14%) affected by production problems at Codelco Andina and Teniente. Movement of wood pulp cargo (+3%) because of new contracts with Arauco Forest. Increasing intermodal and logistics services have increased the costs of some contracts, a situation that is expected to normalize in coming quarters. Toltén bridge The results of Fepasa have been impacted by the collapse of the Toltén bridge on August 18 (lower volumes and over costs). This situation will continue until the repair of the bridge by EFE.

12 12 Enaex Enaex Sep-15 Sep-16 Var. 3Q15 3Q16 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue ,2% ,9% EBITDA ,9% ,3% EBITDA Margin 23,8% 23,4% 24,5% 20,2% Controller's net profit ,2% ,4% Chemical business (Amonium Nitrate) Higher international inventory levels ammonium nitrate. AN exports decreased 22%. Ammonia prices decreased by 37%. Scheduled stop of Panna4 Plant cost-based increases production during 3Q2016. Rock Blasting Services Chile: more complex scenario with lower volumes in some clients. Mining production in Chile -3,9%. Physical sales evolution (Thu Tons) Brazil / Britanite: Economic crisis in Brazil has impacted infrastructure investments and consequently consumption of explosives in that market. Has increased its stake in mining but operational difficulties of some clients have affected sales volume. Davey Bickford: Good operating performance product awards of new contracts. Synergies with Enaex.

13 Magotteaux Magotteaux Group Sep-15 Sep-16 Var. 3Q15 3Q16 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue ,9% ,8% EBITDA ,7% ,8% EBITDA Margin 11,1% 10,9% 10,2% 10,3% Controller's net profit ,0% ,8% Grinding Balls Business HiCr balls lower volumes, particularly in the cement market of North America and South America. Operation in Brazil remains positive but shocked by economic crisis in Brazil. Decline in international demand has led to a decrease in the utilization ratio of the different plants. New Plant in Thailand on track to achieve expected productivity. Increased sales of forged steel, but the market remains strong competition set by China. Casting business Casting lower volumes (-7%), particularly in Asia. Improving margins hand of a better mix and higher level of productivity of plants. Reorganization Plan SG&A expenses decreased 2,2% compared to Sep-15 (-12% vs. Sep-14) New reorganization phase, focused in greater independence for regions. Magotteaux Group Sep-15 Sep-16 Var. % Mill Balls ,2% Cas ting ,2% Total ,2% 13

14 SK Comercial SK Comercial Sep-15 Sep-16 Var. 3Q15 3Q16 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue ,3% ,5% Distribution Business ,7% ,3% Rental Business ,8% ,2% Consolidation adjust ,9% ,4% EBITDA ,6% ,3% EBITDA Margin 15,5% 10,0% 12,3% 7,9% Control l er's net profi t ,9% ,4% Machinery Distribution Business Chile s machinery market remains depressed, although no further significant falls are recorded. Market of construction machinery and earthworks has been the most affected (-30% to -50% vs.2013). Truck market in Chile -10% over Sep 2015 (-26% compared to June 2013). Closing Volvo operation in Peru. Machinery Rental Business Fleet: US$196 million (-9% vs. Dec-15) Rental markets in Chile and Peru has been adjusted downward. SKRental is in a fleet reduction strategy in Chile and Peru to fit the size of the market and lower investment cycle. Corporate reorganization Synergy projects in warehouses and workshops. Rationalisation of branches and maximizing the use of offices and operations in Lampa (headquarters). 14

15 SK Inversiones Automotrices SK Inversiones Automotrices Sep-15 Sep-16 Var. 3Q15 3Q16 Var. MM$ MM$ % MM$ MM$ % Controller's net profit ,5% ,2% SKIA had profits of MM$9,938 Chilean Pesos (US$17 millions) (-29%). Mainly due to lower margins in the Chilean market and lower sales in the Peruvian and Colombian markets. SKBergé accounted sales for 49,987 units, a decrease of 7% compared to September 15. Chile Perú Lower level of sales in Chile: 24,560 units (-9%). Lower sales in Peru and Colombia: 25,427 units (-5%), as a consequence of a contraction of the Peruvian and Colombian markets. Sales of light vehicles in the Chilean market reached 219,596 units as of September 16 (+7%). Colombia Argentina 15

16 Results September-16 Agenda General Background Main Consolidated SK s subsidiaries Highlights Financial Exhibits figures

17 Sigdo Koppers Income Statement Sigdo Koppers Consolidated Income Statement Figures in ThUS$ Cifras en MUS$ Sep-15 Sep-16 Var. 3Q15 3Q16 Var. Sales ,1% ,7% Sales expenses ,1% ,0% Gross income ,5% ,5% Other operating income ,1% ,7% Distribution costs ,5% ,0% Administrative expenses ,6% ,8% Other operating expenses ,9% ,4% Operating income ,6% ,2% EBITDA ,6% ,5% % EBITDA Margin 15,7% 12,9% 15,4% 11,5% Interest income ,1% ,3% Interest expenses ,0% ,4% Related companies income ,2% ,5% Exchange differentials ,8% ,0% Price - level restatement ,8% ,5% Other income (losses) ,2% ,6% Gain (losses) between book value and fair value (financial assets) Income before taxes ,0% ,8% Income tax ,8% ,0% Income ,3% ,0% Gain (losses) from uncontinnued operations Net income ,3% ,0% Income attributable to Sigdo Koppers ,1% ,4% Income attributable to non-controlling interests ,6% ,3% 17

18 Revenue Sigdo Koppers Revenue Business Areas Figures in ThUS$ Figures in ThUS$ Sep-15 Sep-16 Var. 3Q15 3Q16 Var. Services ,8% ,7% Ingeniería y Construcción SK ,7% ,1% Puerto Ventanas ,3% ,2% Industrial ,0% ,6% Enaex ,2% ,9% Magotteaux (1) ,9% ,8% SK Inv. Petroquímicas ,7% ,9% Commercial & Automotive ,3% ,5% SK Comercial ,3% ,5% SKIA (2) Parent company & adjustment (3) ,2% ,2% Consolidated Sales ,1% ,7% Area Servicios Area Industrial Area Comercial y Automotriz (1) Magotteaux s figures include income of SKSabo Chile S.A. The profits attributable to the controller were adjusted in the different companies through which Sigdo Koppers controls Magotteaux. (2) SK Inversiones Automotrices S.A. (SKIA) does not account for the income of SKBergé because it holds 40% of its shares and, therefore, does not consolidate its financial statements. (3) Eliminations and adjustments as of June are mainly the result of consolidated intercompany eliminations 18

19 D Revenue by country (incl. SKBergé) September 2015 Ventas Áreas de Negocios Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 83,1% 16,9% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 77,9% 22,1% Puerto Ventanas 100% Área Industrial 49,2% 0,0% 0,0% 9,5% 9,1% 14,3% 12,6% 5,4% Enaex 87,9% - - 6,8% ,3% Magotteaux 12,4% ,1% 17,7% 27,8% 24,6% 5,5% SK Inv. Petroquímicas 100,0% Área Comercial y Automotriz 57,3% 31,6% 7,6% 0,5% 0,0% 0,0% 0,0% 3,1% SK Comercial 78,3% 17,7% 1,7% 2,3% SKIA 51,8% 35,2% 9,1% ,9% Ventas Empresas SK 58,1% 17,3% 3,5% 3,9% 3,5% 5,5% 4,8% 3,5% September 2016 Ventas Áreas de Negocios Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 90,9% 9,1% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 88,2% 11,8% Puerto Ventanas 100% Área Industrial 41,3% 1,0% 0,0% 10,3% 9,1% 13,1% 21,5% 3,7% Enaex 68,4% 1,9% - 11,7% ,6% 3,3% Magotteaux 11,7% - - 8,8% 19,0% 27,4% 29,0% 4,1% SK Inv. Petroquímicas 100% Área Comercial y Automotriz 57,0% 33,7% 5,6% 0,3% 0,0% 0,0% 0,0% 3,4% SK Comercial 79,8% 16,8% 1,7% 1,7% SKIA 51,3% 38,0% 6,5% ,2% Ventas Empresas SK 56,4% 16,8% 2,5% 4,2% 3,6% 5,2% 8,4% 3,0% 19

20 EBITDA Sigdo Koppers EBITDA Business Areas Figures in ThUS$ Figures in ThUS$ Sep-15 Sep-16 Var. 3Q15 3Q16 Var. Services ,5% ,6% Ingeniería y Construcción SK ,4% ,0% Puerto Ventanas ,1% ,5% Industrial ,1% ,5% Enaex ,9% ,3% Magotteaux (1) ,7% ,8% SK Inv. Petroquímicas ,6% ,5% Commercial & Automotive ,7% ,3% SK Comercial ,6% ,3% SKIA (3) ,2% ,1% Area Servicios Area Industrial Area Comercial y Automotriz Parent company & adjustment ,9% ,4% Consolidated EBITDA ,6% ,5% EBITDA Margin 15,7% 12,9% 15,4% 11,5% Consolidated pro-forma EBITDA ,5% ,6% (1) Magotteaux s figures through December include the EBITDA of SK Sabo Chile S.A. (2) SK Inversiones Automotrices S.A. (SKIA) does not account for the EBITDA of SKBergé because it owns 40% of its shares and, therefore, it does not consolidate its financial statements. (3) Pro Forma EBITDA = EBITDA + Related Company Profits. 20

21 21 EBITDA Pro-Forma Por áreas de negocio: Sep-16 v/s Sep-15 (US$ miles) Results 3Q16 Pro-Forma EBITDA decreased a 55% in CLP due t higher operational costs in Peru and a lower level of activity in the mining sector (BSK) -23,5% Lower physical sales and lower operating margin because of plant maintenance Decrease in Rental Business Lower margins and volumes EBITDA Pro-Forma por área de Negocios Servicios Lower operational profit on PVSA (-4,4 MUS$) and Fepasa (-3,4 MMUS$) Smaller volumes and margins in Grinding balls business (HiCr) Industrial Comercial y Automotriz

22 Sigdo Koppers Net Profit Net profit Business Areas Total Companies Attributable to parent company % SK Figures in ThUS$ Figures in ThUS$ Sep-15 Sep-16 Var. Sep-16 Sep-15 Sep-16 Var. Services ,1% ,2% Ingeniería y Construcción SK ,3% 60,43% ,3% Puerto Ventanas ,2% 50,01% ,6% Industrial ,8% ,1% Enaex ,2% 60,72% ,3% Magotteaux (1) ,0% 95,00% ,8% SK Inv. Petroquímicas (2) ,2% 74,59% ,1% Commercial & Automotive ,2% ,1% SK Comercial ,1% 85,77% ,6% SKIA ,6% 99,99% ,8% SK companies profit ,4% ,4% Parent company & adjusments Total consolidated profit ,1% Services Industrial Commercial & Automobile (1) Magotteaux s figures include income of SK Sabo Chile S.A. The profits attributable to the controller were adjusted in the different companies through which Sigdo Koppers controls Magotteaux. (2) The profit of CHBB was adjusted in SK Inversiones Petroquímicas S.A. through which Sigdo Koppers controls CHBB. 22

23 Sigdo Koppers Balance sheet Consolidated Balance Sheet Figures in ThUS$ Dec-15 Sep-16 Var. Current Assets Cash and cash equivalent ,2% Account and sales receivables ,3% Inventories ,7% Other current assets ,9% Total current assets ,0% Long-term assets Property, plants & equipment ,0% Other long-term assets ,7% Total long-term assets ,9% Total assets ,6% Current liabilities Short-term financial debt ,6% Accounts payable ,9% Other current liabilities ,2% Total current liabilities ,3% Long-term liabilities Long-term financial debt ,1% Other long-term liabilities ,5% Total long-term liabilities ,1% Total liabilities ,1% Equity Attributable to the controller ,5% Attributable to non-controlling interests ,1% Total equity ,6% Total liabilities and equity ,6% Indicators Net Financial Debt Working Capital Working Capital Days Days of Consolidated Inventory Accounts Receivable (Days) Accounts Payable Days

24 Conservative financial profile Financial Debt Net Financial Debt/ EBITDA Parent Comp. Services Industrial Commercial & Automobile Current 28% Non Current 72% 2,90x 2,66x US$ 1,141 millions Consolidated US$ 899 millions Net Financial Debt Cash (US$ millions) Key financial Indicators Consolidated Leverage: 1.14x Financial Net Leverage*: 0.54x Net Financial Debt/EBITDA: 2.90x ND/(EBITDA+Consortium): 2.66x Rating: A+ Fitch-Ratings AA- ICR * Corporate Bonds Covenant < 1,2x 24

25 Cash Flow of Sigdo Koppers Consolidated Cash Flow Figures in ThUS$ Sep-15 Sep-16 Var. Operating cash flow ,9% Investment cash flow ,4% Capex ,2% Fixed assets sales ,3% Other ,0% Finance cash flow ,5% Net variation in financial liabilities % Interest ,9% Dividends ,2% Capital increased ,0% Other ,0% Total net cash flow ,4% Effect of exchange rate changes ,3% Cash and cash equivalent ,2% 25

26 CAPEX Results 3Q16 Capex e Inversiones Áreas de Negocios Sep-15 MUS$ Sep-16 MUS$ Área Servicios Ingeniería y Construcción SK Puerto Ventanas Área Industrial Enaex Magotteaux SK Inv. Petroquímicas - - Área Comercial y Automotriz SK Comercial (1) SKIA - - Total Empresas SK Major investments in Fixed Assets: Puerto Ventanas: Construction of warehouse for copper concentrate with capacity of 46,000 Tons is ready and next to start operations (total investment US$21 million, US$10,5 million in 3Q16) Upgrade of Site #3 (total investment US$32 million, US$12 million in 3Q16) SK Comercial: Defleeting (divestment) of fleet of SK Rental. (1) Capex Neto: El Capex de SKC incluye la venta de maquinaria usada de SK Rental 26

27 Results Presentation Asesores Financieros