1 Source: Company Note: The percents correspond to the ownership of - - PowerPoint PPT Presentation

Asesores Financieros

Corporate Presentation| December 2013

1 Our Company

3

Company Overview

Source: Company Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of August 2013, (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 Comercial Ingeniería y Construcción Enaex Magotteaux

60.43% 60.72% 95.00% 82.79%

Enaex Magotteaux SK Comercial SKBergé Puerto Ventanas CHBB SK Godelius

50.01% 58.19% 74.59% 40.00%

At a Glance

1

4

Corporate Governance

Ownership Structure Board of Directors

Source: Santiago Stock Exchange. Company.

Corporate Presentation

Sigdo Koppers

• Successful US$440 millions capital

increased (Issued between Dec-11 and mid Jan-12)

• Average volume traded (1): US$1,6 millions
• Market Cap: US$1,728 millions (As of Nov 30th 2013)

• ther institutional

Ownership structure as of November 2013

1. Juan Eduardo Errázuriz Ossa Chairman

• 2. Naoshi Matsumoto

Takahashi Vicepresident

• 3. Juan Andrés Fontaine

Talavera Director

• 4. Horacio Pavez García

Director

• 5. Norman Hansen Rosés

Director

• 6. Canio Corbo Lioi

Director

• 7. Jaime Vargas Serrano

Director

At a Glance

1

5

Enlargement plant 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 of Plastic films production initiated through

Acquisition of Acquisition of Starts its

• perations

Foundation of Foundation of

2010 2011

Divestment of Acquisition of Enlargement plant

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

At a Glance

1

 Long term investment approach

and and

2012

Acquired 33.3% of

1999

1986 2013

Divestment of

6

Corporate Presentation |

Corporate Social Responsibility (CSR)

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

• bjectives of building a sustainable and

inclusive global economy

Environment:  Carbon credit (CERs) project (Enaex)  ISO 14001 certification Community:  CFT Talcahuano.  Improving community environment (Square SKBergé, 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

• f CSR under ISO 26.000 certification

At a Glance

1

Sigdo Koppers

Investment approach

2

8

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 EBITDA comes from the exposure to the mining activities

Corporate Presentation |

Investment approach

Strategic focus on the mining and industry

Anglo American - Minera Los Bronces:

…

MINING OPERATION SALES & LOGISTICS MINING DEVELPOMENT

2

1 3 4 2 1 2 3 4

+ + +

BHP Billiton - Minera Escondida:

1 2 3 4

+ + +

Codelco – Andina:

1 2 3

+ +

9

Corporate Presentation |

Investment approach

Our Clients - Mining and Industrial Blue Chips Companies Strategic focus on the mining and industry

2

10

Leadership of our subsidiaries

Market Share Leadership by area

 Biggest producer of Ammonia 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 consumables 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

#1

Worldwide 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

Leadership in all business areas

2

#2

Worldwide grinding media balls producer

14%

market share in high- crome balls for the mining industry (1)

67%

Market share of Ammonium Nitrate production in Latin America

11

Leadership of our subsidiaries

Market 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

64,2%

• f the total load

transferred through the Chilean central zone (excl. containers)

11,5%

Of all the new cars sold in Chile – units (3)

(As of March 2013)

Solid commodities loaded by port Chilean central zone (1) (As of Sep 2013)

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 sales in Chile

(As of June 2012)

13%

Of all new cars sold in Perú – units (As of June 2012)

Corporate Presentation |

Investment apporach

18%(2)

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

Leadership in all business areas

2

12

Corporate Presentation |

Active International Presence

• Since 2011, SK became a company with Global Exposure
• As of today, 35% of SK’s sales are outside Chile (65%)

Global Network

2

Investment approach

13

Corporate Presentation |

Concrete Growth Plan

Source: Company

• Consolidate acquisition of Britanite in Brazil.
• Growth Project in ammonium nitrate capacity

(Nitratos del Perú – Mejillones expansion)

• New grinding media balls and castings plants in Asia

and Latinamerica

• Find synergies between Magotteaux and SK in the

Latin American region

• Current backlog of US$700 millions mainly in the

mining sector, which will be executed during 2013- 2016.

Investment approach

Steady Growth & Consistent Profitability

2

• Expansion of the Rental machinery business to Brazil

and Colombia focusing on the mining, industry and civil works

14

Corporate Presentation |

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)

Steady Growth & Consistent Profitability

2

Source: Company

CAGR: 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

• ver our investments

15

Corporate Presentation |

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 2013 A+(2) Aug 2013

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

Investment approach

Conservative Financial position

Covenant: 0,5X Covenant: 1,2X

Conservative Financial position

2

2010 2011 2012 Sep-13 Current Assets 938 1,042 1,262 1.281 Non-current Assets 1,266 2,058 2,388 1.142 Total Assets 2,204 3,100 3,650 3.668 Current Liabilities 653 972 1,103 1.079 Non-current Liabilites 490 832 964 987 Equity (Atributable to the controler) 615 963 1,176 1.188 Equity (Non attributable to the controler) 446 332 407 414 Total Equity 1,061 1,295 1,583 1.603 Total Equity and Liabilities 2,204 3,100 3,650 3.668

2.26x

Asesores Financieros

Corporate Presentation| December 2013