2Q18 Results Presentation September 2018 Credicorp XVI Andean Conference Lima. Asesores Financieros

Transcription

1 2Q18 Results Presentation September 2018 Credicorp XVI Andean Conference Lima Asesores Financieros

2 Results June-18 Agenda General Background Main Consolidated SK s subsidiaries Highlights Financial Exhibits figures

3 At a Glance [ Company Overview ] We are a 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 worldwide comprehensive supplier of products and services for the mining and industrial operations. Ingeniería y Construcción Puerto Ventanas Enaex Magotteaux SK Comercial SKBergé SK Godelius 60,62% 60,72% 87,48% 58,19% 50,01% 98,07% 40,00% At a glance (L12M, Jun-18) Sales US$ 2,3 billion EBITDA US$ 304 million Net Profit US$ 88 million employees 29 specialized production units in 15 countries Commercial operation in more than 30 countries [ 3

4 At a Glance [ Corporate Governance ] Boards of Directors 1. Juan Eduardo Errázuriz Ossa Chairman 2. Naoshi Matsumoto Takahashi Vice president 3. Silvio Rostagno Hayes Independent Director 4. Norman Hansen Fernandez Director 5. Jaime Vargas Serrano Director 6. Horacio Pávez Aro Director 7. Luis Felipe Cerón Cerón Director Ownership Structure Controlling Group 73,99% Others 26,01% Pension funds & Insurance companies 10,31% Others 3,31% Others 26,01% Mutual funds and other institutional investors 4,87% Stock Brokers 7,52% US$0,5 million daily avg. Vol. traded US$1.7 billions Market Cap (Aug 31, 2018) [ 4

5 Investment Approach [ 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 75% of the SK s Consolidated EBITDA comes from the exposure to the mining activities DEVELOPMENT OPERATION ORE PROCESSING 5 LOGISTICS [

6 Main Consolidated figures - June 2018 Consolidated Income Statement Good liquidity and level of leverage Jun-17 Jun-18 Var. Sales ,9% EBITDA (1) ,6% EBITDA Margin 11,4% 12,4% EBITDA Pro Forma (2) ,8% Profit (Loss) ,1% Sigdo Koppers Net Profit (non recurrent) Figures in ThUS$ ,5% Dec-17 Jun-18 Var. Total Assets ,3% Total Equity (3) ,9% Net Debt ,8% Net Debt / EBITDA 2,63 2,54 ROE 6,32% 6,78% ROCE 5,83% 6,54% Consolidated Cash US$299 million Net Financial Debt/EBITDA is 2,52x Consolidated revenues increased 6% compared to jun-17: Higher income in Magotteaux (+11%) aligned with higher lever of physical sales (+5%). Higher revenues in Enaex (+7%) mainly explained by higher incomes in the subsidiaries Britanite (+10%) and Davey Bickford (+36%). Higher revenues in PVSA (+12%) mainly by higher cargo transference of their subsidiary Fepasa (+15%). Consolidated EBITDA amounted to US$140 million (+15%) Higher level of EBITDA in Magotteaux and SK Comercial for higher sales volumen. Net profit totaled US$34 million (+16%) : Low performance in Ingeniería y Construcción business because the projects in Backlog are not yet being executed, together with a low performance of operations in Peru. Increase of 86% in Magotteaux Net Profit, higher margin and higher physical sales. Higher level of sales in the machinery distribution business in Chile. (1) EBITDA = Gross Profit+ Other income by function Distribution Cost - Administration Expenses Other Expenses by function + Depreciation and Amortizacion Expenses (3) EBITDA Pro-forma: Considers the profits of related companies that do not consolidate. 6

7 Agenda General Background Main Consolidated SK s subsidiaries Highlights Financial Exhibits figures

8 Main Subsidaries 60,62% 60,72% 87,20% 40,0% 98,07% 50,01% 51,82% DEVELOPMENT OPERATION PROCESS SALE AND LOGISTIC 53 years of experience in more tan 300 large-scale projects (Presence in Chile and Peru) Production of Ammonium Nitrate and Blasting Services Sale, Leasing and Service of machinery of prestigious brands (Presence in Chile, Peru Brazil and Colombia) Automotive commercialization (Presence in Chile, Peru Argentina and Colombia) Production of Grinding Balls and Casting (Presence in 11 countries) Bulk cargo port and fuel. Owner of 52% Fepasa (railway) Mining and industry value chain 8

9 Ingeniería y Construcción SK Ingeniería y Construcción Jun-17 Jun-18 Var. 2Q17 2Q18 Var. Sigdo Koppers MM$ MM$ % MM$ MM$ % Revenue ,5% ,5% EBITDA ,8% ,6% EBITDA Margin -4,4% -3,0% -11,6% -3,6% Pro-Forma EBITDA(*) ,9% ,6% Pro-Forma EBITDA Margin -2,9% -2,7% -11,6% -3,6% Controller's net profit ,2% ,9% Backlog por País Horas (Miles) Horas (Miles) Var. Horas (Miles) Horas (Miles) Total man-hours executed ,0% ,6% Var. Chile 80,2% Perú 10,4% Brazil 9,4% Colombia 0,1% ICSK Chile Lower income explained because newly awarded projects are in the beginning of execution phase Higher level of activity in industrial and mining areas ICSK Peru Low level of activity Works in the Talara refinery project (PetroPerú) records losses ICSK Brasil Positive progress in the construction of electric transmission lines (ETL) in Brazil New ETL awards consortium with Alumini and Fujian Backlog equivalent to US$627 millon Projects awarded for US$ 107 million (Jan-Jun-2018): Dataluna Datacenter Project, Project pulpa textile Valdivia Plant (Arauco), the Cervecerias Chile expansion project, new power transmission lines in Brazil (in a joint venture with the Alumini and Fujian consortium), Improvements in evaporators Constitución Plant (Arauco), Project underwater lines Oxiquim, and the Ojos del Salado mine maintenance project. 9

10 Puerto Ventanas Puerto Ventanas Consolidated Jun-17 Jun-18 Var. 2Q17 2Q18 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue ,9% ,4% EBITDA ,8% ,7% EBITDA Margin 29,7% 26,8% 30,9% 30,9% Controller's net profit ,7% ,2% PVSA - Tons transferred ,2% ,7% Fepasa - Th Ton-Km ,9% ,5% Puerto Ventanas Cargo Transfer (-0,2%) Lower transfers of coal (-9%) and acid (-26%) The valued revenues of the Port Business reached US $ 31 million (-6%) Fepasa Mobilized load (+15%) Movement of cargo in the mining sector increased by 80% New Contract for the transport of copper concentrate from the Las Tórtolas Plant to Puerto Ventanas Higher movement of cargo for Codelco Teniente Growth of 75% in EBITDA: MM $ 4,177 10

11 11 Enaex Enaex Jun-17 Jun-18 Var. 2Q17 2Q18 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue ,9% ,5% EBITDA ,6% ,7% Chemical business Higher sales of Amonium Nitrate (AN) in Chile (+26%) Exports of AN decreased by 6% Rock Blasting Services Chile: Lower level of activity (-4%) Brasil/Britanite: Increase in sales volume by 20% Davey Bickford Higher revenues (+36%), higher sales levels in the Latin American and North American markets. Cachimayo Plant EBITDA Margin 23,2% 21,6% 24,4% 22,2% Controller's net profit ,1% ,1% Acquisition of 70% of Industrias Cachimayo S.A. The company is a manufacturer of ammonium nitrate in Peru and has a capacity of 35,000 tons per year. Physical sales evolution (Thu Tons) México 2,0% Perú 10,0% Detalle de Ventas Físicas por Región Brasil 13,2% Otros Países 7,2% 934 Chile 67,6% L12M

12 Magotteaux Group Jun-17 Jun-18 Var. 2Q17 2Q18 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue ,4% ,1% EBITDA ,8% ,2% EBITDA Margin 7,9% 9,6% 7,2% 9,4% Controller's net profit ,7% ,6% Volume Grinding Balls: Higher volumes of grinding balls, particularly in the mining market (+11%) Casting: Higher Casting volumes, particularly in the aggregates (+9%) and fluids (+1%) markets Higher margins driven mainly by better prices Net income showed an increase of 87% Magotteaux Group Jun-17 Jun-18 Grinding Media ,4% Casting ,3% Total ,9% Distribución de ventas físicas Mineria 71,3% Var. % Otros 0,4% Otros 0,4% Agregados 4,6% Agregados 4,8% Cemento & Utilities 23,7% Cemento & Utilities 19,8% Mineria 75,0% Jun-17 Jun-18 12

13 13 SK Comercial SK Comercial Jun-17 Jun-18 Var. 2Q17 2Q18 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue ,1% ,0% Distribution Business ,1% ,1% Rental Business ,5% ,4% Consolidation adjust ,0% ,0% EBITDA ,2% ,5% EBITDA Margin 8,1% 11,6% 7,7% 11,9% Controller's net profit ,4% ,4% Machinery Distribution Business Higher physical sale of machinery (+37%) Increase in sales by 27% compared to June 2017 Distribution of the SK Rental Fleet by Country (US$) 5% 9% 16% 64% Machinery Rental Business Fleet: US$146million (-7.4% vs. jun-17) Chile Perú Brasil Colombia Machinery Rental Business in Chile: Slight recovery in margins but a recovery in demand has not yet materialized. Machinery Rental Business in Peru: Performance under our expectations, mainly due to the political condition that is affecting the economy. The ANAC projects a rise in truck sales during 2018 (+7%).

14 SK Inversiones Automotrices SK Inversiones Automotrices Jun-17 Jun-18 Var. 2Q17 2Q18 Var. MM$ MM$ % MM$ MM$ % Controller's net profit ,1% ,1% Chile Perú SKIA obtained a profit of MM$8,348 (US$13,8 millon) (-14,1%) Result explained as a result of lower operating margins, and losses due to exchange rate differences (strong devaluation of the Argentine peso). SKBergé recorded sales of 45,391 units, showing a greater sale of 22% compared to June 17 Highest sales level in Chile: 25,791 units (+ 28%) Greater performance in sales abroad 19,600 units (+ 14%) Colombia Argentina 14

15 Agenda General Background Main Consolidated SK s subsidiaries Highlights Financial Exhibits figures

16 Sigdo Koppers Income Statement Sigdo Koppers Consolidated Income Statement Figures in ThUS$ Cifras en MUS$ Jun-17 Jun-18 Var. 2Q17 2Q18 Var. Sales ,9% ,0% Sales expenses ,7% ,6% Gross income ,3% ,9% Other operating income ,6% ,1% Distribution costs ,3% ,7% Administrative expenses ,0% ,0% Other operating expenses ,4% ,3% Other gains (losses) ,2% ,3% Operating income ,6% ,9% EBITDA ,6% ,2% % EBITDA Margin 11,4% 12,4% 10,6% 13,2% Interest income ,5% ,3% Interest expenses ,3% ,0% Related companies income ,9% ,7% Exchange differentials ,9% ,6% Price - level restatement ,4% ,0% Other income (losses) ,2% ,3% Gain (losses) between book value and fair value (financial assets) Income before taxes ,2% ,7% Income tax ,4% ,5% Income ,1% ,7% Gain (losses) from uncontinnued operations Net income ,1% ,7% Income attributable to Sigdo Koppers ,5% ,2% 16

17 Revenue Sigdo Koppers Revenue Business Areas Figures in ThUS$ Figures in ThUS$ Jun-17 Jun-18 Var. 2Q17 2Q18 Var. Consolidated Sales Total: MMUS$ Services ,3% ,9% Ingeniería y Construcción SK ,7% ,6% Puerto Ventanas ,9% ,4% Industrial ,9% ,7% Enaex ,9% ,5% Magotteaux (1) ,4% ,1% SK Inv. Petroquímicas ,0% ,0% Commercial & Automotive ,1% ,0% SK Comercial ,1% ,0% SKIA (2) Parent company & adjustment (3) ,4% ,1% Consolidated Sales ,9% ,0% 12% 64% 24% Services Area Industrial Area Commercial and Automotive Area (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 17

18 D Revenue by country (incl. SK Bergé) June 2017 June 2018 Ventas Áreas de Negocios Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 87,2% 12,8% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 83,1% 16,9% Puerto Ventanas 100% Área Industrial 37,3% 4,3% 0,1% 12,3% 6,2% 16,4% 17,6% 5,8% Enaex 62,0% 8,5% 0,00 15,4% - - 9,5% 4,4% Magotteaux 11,6% - - 9,2% 12,7% 33,3% 25,9% 7,2% SK Inv. Petroquímicas 100,0% Área Comercial y Automotriz 59,3% 27,0% 7,3% 0,4% 0,0% 0,0% 0,0% 5,9% SK Comercial 92,1% 2,7% 2,1% 3,2% SKIA 54,0% 31,0% 8,2% ,9% Ventas Empresas SK 55,5% 16,5% 3,5% 4,8% 2,3% 6,0% 6,5% 4,9% Ventas Áreas de Negocios Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 91,2% 8,8% 0,0% 7,1% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 87,8% 12,2% - 9,8% Puerto Ventanas 100% Área Industrial 32,9% 4,2% 0,1% 12,4% 12,2% 12,6% 17,4% 8,2% Enaex 56,0% 8,5% 0,2% 15,5% ,3% 3,4% Magotteaux 10,0% - - 9,3% 24,3% 25,1% 18,4% 12,9% Área Comercial y Automotriz 64,1% 24,9% 5,9% 0,5% 0,0% 0,0% 0,0% 4,7% SK Comercial 92,0% 1,6% 2,2% 4,3% SKIA 60,1% 28,2% 6,4% ,3% Ventas Empresas SK 56,7% 15,5% 3,1% 5,6% 4,3% 4,4% 6,1% 5,3% 18

19 EBITDA Sigdo Koppers EBITDA Business Areas Figures in ThUS$ Figures in ThUS$ Jun-17 Jun-18 Var. 2Q17 2Q18 Var. Services ,5% ,1% Ingeniería y Construcción SK ,3% ,1% Puerto Ventanas ,8% ,7% Industrial ,4% ,1% Enaex ,6% ,7% Magotteaux (1) ,8% ,2% SK Inv. Petroquímicas ,6% ,7% Commercial & Automotive ,4% ,9% SK Comercial ,2% ,5% SKIA (3) ,0% ,2% Parent company & adjustment ,3% ,0% Consolidated EBITDA ,6% ,5% EBITDA Margin 11,4% 12,4% 10,9% 13,2% Consolidated pro-forma EBITDA ,8% ,1% Consolidated Pro Forma EBITDA Total: MMUS$ % 9% 72% Services Area Industrial Area Commercial and Automotive Area (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. 19

20 140,3 154,1 20 EBITDA Pro-Forma By business areas: jun-17 v/s jun-18 (K US$) +10% EBITDA Pro-Forma by business areas 180 EBITDA Pro-Forma in CLP (-+20%) product of cost overruns and lower performance in projects in Peru, together with lower results for projects that are in the initial phase of execution Higher margins in grinding ball (GM) and casting business, together with an increase in GM's physical sales in mining Result affected by loss due to exchange difference 19% 9% 72% ,8 0,2 Better result in PVSA product of higher transfers of their subsidiary Fepasa 0,5 Lower operating margin 9,1 5,7 1,0 Greater performance in leasing business, together with higher level of physical sales in the sale of machinery 0,3 Services Industrial Commercial and Automotive 20

21 Sigdo Koppers Net Profit Net profit Business Areas Total Companies Figures in ThUS$ % SK Attributable to parent company Figures in ThUS$ Jun-17 Jun-18 Var. Jun-18 Jun-17 Jun-18 Var. Services ,4% ,8% Ingeniería y Construcción SK ,3% 60,43% ,8% Puerto Ventanas ,7% 50,01% ,7% Industrial ,0% ,9% Enaex ,1% 60,72% ,1% Magotteaux (1) ,7% 95,00% ,6% SK Inv. Petroquímicas (2) ,6% 74,59% ,3% Commercial & Automotive ,5% ,6% SK Comercial ,4% 87,20% ,4% SKIA ,7% 99,99% ,7% SK companies profit ,2% ,1% Parent company & adjusments Total consolidated profit ,5% Consolidated Net Profit 31% Total: MMUS$ 34 0% 67% Services Area Industrial Area Commercial and Automotive Area (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. 21

22 Sigdo Koppers Balance sheet Consolidated Balance Sheet Figures in ThUS$ Dec-17 Jun-18 Var. Current Assets Cash and cash equivalent ,9% Account and sales receivables ,4% Inventories ,0% Other current assets ,8% Total current assets ,3% Long-term assets Property, plants & equipment ,7% Other long-term assets ,4% Total long-term assets ,3% Total assets ,3% Consolidated Assets Total: MMUS$ 3,566 10% 74% 16% Services Area Industrial Area Commercial and Automotive Area Current liabilities Short-term financial debt ,7% Accounts payable ,0% Other current liabilities ,7% Total current liabilities ,3% Long-term liabilities Long-term financial debt ,8% Other long-term liabilities ,2% Total long-term liabilities ,2% Total liabilities ,8% Equity Attributable to the controller ,7% Attributable to non-controlling interests ,5% Total equity ,9% Total liabilities and equity ,3% Indicators Dec-17 Jun-18 Net Financial Debt Working Capital Working Capital Days Days of Consolidated Inventory Accounts Receivable (Days) Accounts Payable Days

23 Conservative financial profile Financial Debt Net Financial Debt / EBITDA + Consortium 11,5% 21,3% 16,0% SK Holding Services CP 21% 3,0 2,5 2,54x 2,52x 51,2% Industrial Commercial and Automotive LP 79% 2,0 1,5 US$ millon Consolidated US$ 772 millon Net Financial Leverage 1,0 Dic-2011 Dic-2012 Dic-2013 Dic-2014 Dic-2015 Dic-2016 Dic-17 Jun-18 Cash (US$ million) Key financial Indicators Consolidated Leverage: 1,08x Financial Net Leverage**: 0,44x 250 Net Financial Debt/EBITDA: 2,54x 200 ND/EBITDA+Consortium : 2,52x Coverage Financial Expenses: 5,62x Rating: A+ Fitch-Ratings, AA- ICR 50 0 Consolidada Matriz * * Including CHBB, SK Inv. Automotrices S.A. y SK Internacional S.A. ** Corporate Bonds Covenant < 1,2x 23

24 Cash Flow of Sigdo Koppers Consolidated Cash Flow Figures in ThUS$ Jun-17 Jun-18 Var. Operating cash flow ,8% Investment cash flow ,7% Capex ,3% Fixed assets sales ,0% Other ,9% Finance cash flow ,7% Net variation in financial liabilities % Interest ,1% Dividends ,8% Capital increased ,0% Other ,3% Total net cash flow ,1% Effect of exchange rate changes ,5% Cash and cash equivalent ,9% 24

25 CAPEX Capex & Investments Business Areas Figures in ThUS$ Jun-17 Jun-18 Services Ingeniería y Construcción SK Puerto Ventanas Industrial Enaex Magotteaux (1) SK Inv. Petroquímicas - (8.514,00) Commercial & Automotive SK Comercial SKIA (3) - - Total Main investments in Fixed Assets: ICSK: Increase of machinery for new investments Puerto Ventanas: Enaex: Payment site 3 (Total investment US $ 32 million) Acquisition of Cachimayo Plant in Peru (US $ 15.2 million) SK Inv. Petroquímicas: Sale of CHBB (US $ 8.5 million) SK Comercial: Purchase of new machinery and sale of old equipment (fleet renewal) (1) Net Capex: SKC's Capex includes the sale of used machinery from SK Rental 25

26 Results Presentation Asesores Financieros