Agenda 01 03 02 General Financials SKs subsidiaries - - PowerPoint PPT Presentation

SLIDE 1

Asesores Financieros

4Q15 Results Presentation| March 2016

Larrainvial 10th Annual Andean Conference Santiago

SLIDE 2

Agenda

• 02

SK’s subsidiaries Highlights

03

Financials

01

General Background

SLIDE 3

3

286(1) 121(2)

Company Overview

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

SK Comercial Ingeniería y Construcción Enaex Magotteaux

60.43% 60.72% 95.00% 85.77%

Enaex Magotteaux SK Comercial SKBergé Puerto Ventanas CHBB SK Godelius

50.01% 58.19% 74.59% 40.00%

SLIDE 4

4

Corporate Governance

• Ownership Structure
• Board of Directors
• Source: Santiago Stock Exchange.
• (1) Last 12 month
• Corporate Presentation

Sigdo Koppers

• Daily Average vol. traded (1): US$0.3 millions
• Market Cap: US$1.3 billions (As of Feb 29th 2016)

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

Independent Director

• 7. Jaime Vargas Serrano

Director

• 5,41% Stock Brokers
• 6,26% Mutual Funds and
• ther institutional

investors

• 9,33% Pension Funds
• and Insurance companies
• 2,58% Others
• Ownership structure as of Dec-15
• 1

SLIDE 5

5

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

Anglo American - Minera Los Bronces:

…

MINING OPERATION SALES & LOGISTICS MINING DEVELPOMENT

1 3 4 2 1 2 3 4

+ + +

BHP Billiton - Minera Escondida:

1 2 3 4

+ + +

Codelco – Andina:

1 2 3

+ +

SLIDE 6

6

Dic-14 Dic-15

Var.

Sales 2.499.612 2.414.522

• 3,4%

EBITDA (1) 365.970 378.593

3,4% EBITDA Margin 14,6% 15,7%

EBITDA Pro Forma (2) 427.441 433.566

1,4%

Profit (Loss) 211.284 203.702

• 3,6%

Sigdo Koppers Net Profit (non recurrent) 134.668 134.987

0,2%

Dic-14 Dic-15

Var.

Total Assets 3.380.313 3.475.023

2,8%

Total Equity (3) 1.602.489 1.573.746

• 1,8%

Deuda Financiera Neta 787.549 875.630

11,2%

Deuda Financiera Neta/ EBITDA

2,15 2,31

ROE 11,23% 11,36% ROCE 9,39% 9,42% Consolidated Income Statement Figures in ThUS$

6

• The consolidated revenues droped in

US$85 millions:



CLP/USD exchange rate impacted the accounting of ICSK, SK Rental and Fepasa.



The revenues of Magotteaux and Enaex also fell because the prices of raw materials dropped

• Significant increase in the EBITDA margin,

from 14.3% to 15.7%, a reflection of the cost control efforts in several of the companies.

• The net profit totaled US$99 million, an

increase of 0.4% compared to the close of the previous year.

• SK distributed dividends of CLP$36 per

share in 2015, which meant a dividend yield of 4.3% at the close of 2015.

Highlights as of December 2015

• Results as of Dec-15

(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.

• Sigdo Koppers has a good consolidated

cash liquidity of US$245 million and a conservative level of consolidated debt.

• The net financial debt-to-EBITDA ratio is

2.31x

SLIDE 7

7

Agenda

• Results as of Dec-15

02

SK’s subsidiaries Highlights

03

Financial Exhibits

01

General Background

SLIDE 8

8

Ingeniería y Construcción SK

• Results as of Dec-15

8

(*) EBITDA Pro-Forma: EBITDA + Related company profit

Dic-14 Dic-15 Var. 4Q14 4Q15 Var. MM$ MM$ % MM$ MM$ % Revenue 316.509 319.373 0,9% 59.938 97.587 62,8% EBITDA 22.932 18.915

• 17,5%

4.684 6.428 37,2%

EBITDA Margin 7,2% 5,9% 7,8% 6,6%

EBITDA Pro-Forma (*) 40.064 36.341

• 9,3%

8.312 12.490 50,3%

Pro-Forma EBITDA Margin 12,7% 11,4% 13,9% 12,8%

Controller's net profit 20.196 20.555

1,8%

2.787 7.095

154,6%

Horas (Miles) Horas (Miles) Var. Horas (Miles) Horas (Miles) Var. Total man-hours executed 27.166 22.458

• 17,3%

4.240 4.753 12,1% Ingeniería y Construcción Sigdo Koppers

(*) EBITDA Pro-Forma: EBITDA + Related company profit

• Consolidated revenue MM$ 319,373 (US $ 488 million) (+ 1%)

 Man Hours executed 23 million (-17%)

• Pro-Forma EBITDA of $ 36,341 million (-9%)

 Pro-Forma EBITDA margin reached 11%

• ICSK is considering participating in the market for transmission

lines in Brazil in partnership with Alumini

• At 4T15, the company has a backlog of US$ 513 million, mainly

in mining and power projects to be implemented between 2016- 2018, in Chile (85%),Peru (8%) and Brazil (7% ).

SLIDE 9

9

Puerto Ventanas

9

• Results as of Dec-15

Puerto Ventanas

• 5.928.225 Tons (-0,2%) transfered as of Dec-15



Coal (+6%)



Clinker (+25%)



Cooper Concentrate (-5%)

• Same revenues levels from the Port Business

compared to Dec-14

• Port business´ EBITDA increased 3% due to higher
• perating efficiency and more favorable exchange

rate.



EBITDA Margin: 56%

• PVSA Holds a market share of 61% in solid bulk

cargo transfer as of December 2015 Fepasa

• Fepasa carried a total of 1.212.401 Ktons-Km
• f cargo 4Q15 (-4%)



Mining cargo (21% of total transported): -0,4 in Ton/Km



Forestry cargo (pulp): (54%

• f

total transported): -2,6% in Ton/Km

• Fepasa consolidated EBITDA reached US$9

millions (-21% in pesos)



EBITDA Margin: 14%

• Fepasa signed a contract with Anglo American to carry

copper concentrate via railroad from Las Tortolas Plant (Los Andes) to Puerto Ventanas, beginning operations in 2017.

Dic-14 Dic-15 Var. 4Q14 4Q15 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 142.427 131.832

• 7,4%

36.590 33.238

• 9,2%

EBITDA 46.770 43.318

• 7,4%

13.124 10.670

• 18,7%

EBITDA Margin 32,8% 32,9% 35,9% 32,1%

Controller's net profit 25.282 24.896

• 1,5%

7.310 6.127

• 16,2%

PVSA - Tons transferred 5.937.708 5.928.225

• 0,2%

1.418.520 1.477.672 4,2% Fepasa - Th Ton-Km 1.256.435 1.212.401

• 3,5%

330.670 305.042

• 7,8%

Puerto Ventanas Consolidated

SLIDE 10

10

10

Enaex

• Results as of Dec-15
• Enaex recorded revenues of US$762 million (+18%)



Physical sales totaled 937 Ktons (+8%)



Increase of 19% in physical sales in the rock blasting services business compared to 2014.

• The average price of ammonia reach US$458/ton (-17%)
• The consolidated EBITDA of Enaex was US$181 million (+18%)
• Enaex recorded a net profit of US$105 million (+6%)
• Enaex agreed to buy Davey Bickford, a global manufacturer

and distributor of electronic detonators for the explosives industry at US$ 106 million (for 91% of shares).

• Enaex bought 66,7% share of Xion Participacoes, for US$85
• million. Enaex now controls 100% of the Brazilian company IBQ

(Britanite). Physical Sales Evolution (Thu tons)

Sep-14 Sep-15 Var. 3Q14 3Q15 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 470.852 556.603 18,2% 167.729 209.959 25,2% EBITDA 114.939 132.654

15,4%

36.878 51.389

39,3% EBITDA Margin 24,4% 23,8% 22,0% 24,5%

Controller's net profit 74.103 78.216

5,6%

22.675 28.440

25,4%

Enaex Dic-14 Dic-15 Var. 4Q14 4Q15 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 645.950 761.766 17,9% 175.098 205.163 17,2% EBITDA 154.126 181.056

17,5%

39.187 48.402

23,5% EBITDA Margin 23,9% 23,8% 22,4% 23,6%

Controller's net profit 99.148 104.582

5,5%

25.045 26.366

5,3%

Enaex

SLIDE 11

11

• Results as of Dec-15

Magotteaux

11

• Consolidated income totaled US$692 million as of 4Q15 (-11%)
• Physical sales totaled 372 Ktons

 321,722 tons of mill balls (-2%) (81% in mining)  50,138 tons of castings (53% in cement, 30% in agregates)

• EBITDA amounted to US$80 millions as of Dec-15 (+17%)

 Better performance and margins in the business lines of casting

and grinding balls

 Lower SG&A – reorganization process

• The company earned a net profit of US$29 millions as of 4Q15.

Dic-14 Dic-15 Var. 4Q14 4Q15 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 776.513 692.284

• 10,8%

189.224 162.138

• 14,3%

EBITDA 69.009 80.415

16,5%

18.574 21.553

16,0% EBITDA Margin 8,9% 11,6% 9,8% 13,3%

Controller's net profit 26.364 29.396

11,5%

7.246 7.786

7,5%

Magotteaux Group (1)

Dic-14 Dic-15 Mill Balls 326.867 321.722

• 1,6%

Bolas de Molienda 47.717 50.138 5,1% Casting 374.585 371.860

• 0,7%

(1) Consolidated figures of Magotteaux & SK Sabo Chile S.A.

Magotteaux Group

(1)

Var. %

SLIDE 12

12

12

SK Comercial

• Results as of Dec-15

Distribution of SK Rental Fleet by Country (US$)

• Consolidated revenues totaled US$347 millions (-9%)

 The machinery distribution business sold 2,125 units (-2%).  SK Rental revenue dropped 15% compared to 2014 (FX impact)  SK Rental Consolidated fleet reaches 4,565 units (valued at US$216

millions (-15%))

• Consolidated EBITDA reached US$51 millions (-19%)



Consolidated EBITDA Margin of 15%

• The net profit of SK Comercial totaled US$0,2 million

 This result is composed of a lower yield in machinery rental business in

Chile (SK Rental) and lower business performance in Distribution Services.

Dic-14 Dic-15 Var. 4Q14 4Q15 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 383.201 347.412

• 9,3%

97.314 88.685

• 8,9%

Distribution Business

261.384 257.465

• 1,5%

68.930 66.961

• 2,9%

Rental Business

157.964 134.181

• 15,1%

39.146 31.101

• 20,6%

Consolidation adjust

• 36.147
• 44.234

22,4%

• 10.762
• 9.377
• 12,9%

EBITDA 62.297 50.760

• 18,5%

16.147 10.529

• 34,8%

EBITDA Margin 16,3% 14,6% 16,6% 11,9%

Controller's net profit 5.143 225

• 95,6%

2.520

• 798
• 131,7%

SK Comercial

SLIDE 13

13

13

SK Inversiones Automotrices

Perú Argentina Chile Colombia

• Results as of Dec-15
• SKIA

recorded revenues

• f

MCH$18,627 (US$29 millions) (+6%).



Result affected by favorable exchange rate.

• SKBergé sold 71,898 units, showing a decrease
• f 12% compared to 4Q14.



Increase in Market Share of 12% to 13% in Chile



Lower performance in overseas sales 35,962 units (-10%)

• ANAC recorded sales of 282,232 units in Chile

at the end of 4Q15 (-16%).

• High growth potential in countries with low

density of cars like Peru and Colombia

Dic-14 Dic-15 Var. 4Q14 4Q15 Var. MM$ MM$ % MM$ MM$ % Controller's net profit 17.657 18.627

5,5%

6.437 4.728

• 26,6%

SK Inversiones Automotrices

SLIDE 14

14

14

• Ingeniería y Construcción Sigdo Koppers:

 The award of the SIC-SING interconnection project that will entail an investment of close to US$320 million.  ICSK maintains a high level of backlog and remains expectant of new project awards

• Puerto Ventanas:

 High operational efficiency in the Port Business  New investments in development stage in the port in Quintero. Pipeline: new projects in the railway business

• Enaex:

 Significant growth in the service business (rock fragmentation) in Chile (new award of Collahuasi)  Important new investments in the Rock Fragmentation Services business (Davey Bicford & Britanite)

• Magotteaux:

 Successful implementation of the reorganization plan. Benefits will materialize during 2015 and 2016.  Best performance in castings

• SK Comercial:

 Slight recovery in the Distribution of machinery business  Positive evidence ability to adapt to low investment cycles thru inventory reduction and reduced size of the rental

fleet.

• SKBergé:

 Lower decreased in units of SKBergé vs market - Increased market share  Diversification of currency, market and brand is a protection in low business cycles

Summary highlights of SK Companies – 4Q15

• Results as of Dec-15

SLIDE 15

Agenda

• 02

SK’s subsidiaries Highlights

03

Financial Exhibits

01

General Background Results as of Dec-15

SLIDE 16

Income Statement of Sigdo Koppers

16

• Results as of Dec-15

Dic-14 Dic-15 Var. 4Q14 4Q15 Var.

Sales 2.499.612 2.414.522

• 3,4%

595.612 629.780

5,7%

Sales expenses

• 1.952.217
• 1.852.640

5,1%

• 466.984
• 489.224
• 4,8%

Gross income 547.395 561.882

2,6%

128.628 140.556

9,3%

Other operating income 15.725 14.688

• 6,6%

6.321 3.683

• 41,7%

Distribution costs

• 87.899
• 82.837

5,8%

• 19.789
• 20.310
• 2,6%

Administrative expenses

• 223.988
• 226.128
• 1,0%
• 51.457
• 54.195
• 5,3%

Other operating expenses

• 4.302
• 13.355
• 210,4%
• 992
• 6.201
• 525,1%

Operating income 246.931 254.250

3,0%

62.711 63.533

1,3%

EBITDA 365.970 378.593

3,4%

93.764 98.800

5,4% % EBITDA Margin 14,6% 15,7% 15,7% 15,7%

Interest income 4.992 5.311

6,4%

1.696 2.016

18,9%

Interest expenses

• 52.849
• 52.569

0,5%

• 13.722
• 14.924
• 8,8%

Related companies income 61.471 54.973

• 10,6%

17.468 15.192

• 13,0%

Exchange differentials

• 6.362
• 13.808
• 117,0%

1.419

• 1.339
• 194,4%

Price - level restatement 1.780 2.198

23,5%

• 2.325
• 562

75,8%

Other income (losses)

• 116
• 882
• 660,3%
• 184
• 2.336 -1169,6%

Gain (losses) between book value and fair value (financial assets)

7 -

• -

Income before taxes 255.854 249.473

• 2,5%

67.063 61.580

• 8,2%

Income tax

• 44.570
• 45.771
• 2,7%
• 12.148
• 7.940

34,6%

Income 211.284 203.702

• 3,6%

54.915 53.640

• 2,3%

Gain (losses) from uncontinnued

• perations
• -
• -

Net income 211.284 203.702

• 3,6%

54.915 53.640

• 2,3%

Income attributable to Sigdo Koppers

134.668 134.987

0,2%

36.414 36.332

• 0,2%

Income attributable to non- controlling interests

76.616 68.715

• 10,3%

18.501 17.308

• 6,4%

Net income 211.284 203.702

• 3,6%

54.915 53.640

• 2,3%

Sigdo Koppers Consolidated Income Statement Figures in ThUS$ Cifras en MUS$

SLIDE 17

Revenue of Sigdo Koppers

17

• Results as of Dec-15

(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) 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 December are mainly the result of consolidated intercompany eliminations.

Area Servicios Area Industrial Area Comercial y Automotriz

Dic-14 Dic-15 Var. 4Q14 4Q15 Var.

Services 697.170 619.850

• 11,1%

134.143 174.649 30,2% Ingeniería y Construcción SK 554.743 488.018

• 12,0%

97.553 141.411 45,0% Puerto Ventanas 142.427 131.832

• 7,4%

36.590 33.238

• 9,2%

Industrial 1.426.212 1.457.492 2,2% 365.228 368.130 0,8% Enaex 645.950 761.766 17,9% 175.098 205.163 17,2% Magotteaux (1) 776.513 692.284

• 10,8%

189.224 162.138

• 14,3%

SK Inv. Petroquímicas 3.749 3.442

• 8,2%

906 829

• 8,5%

Commercial & Automotive 383.201 347.412

• 9,3%

97.314 88.685

• 8,9%

SK Comercial 383.201 347.412

• 9,3%

97.314 88.685

• 8,9%

SKIA (2)

• Parent company & adjustment(3)
• 6.971
• 10.232

46,8%

• 1.073
• 1.684

56,9%

Consolidated Sales 2.499.612 2.414.522

• 3,4%

595.612 629.780 5,7% Figures in ThUS$ Revenue Business Areas Figures in ThUS$

SLIDE 18

Revenue by country (incl. SK Bergé)

• D

18

• Results as of Dec-15
• As of december 2014
• As of December 2015

Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 87,1% 12,9% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 83,7% 16,3%

• Puerto Ventanas

100%

• Área Industrial

51,0% 0,0% 0,0% 6,8% 9,8% 13,1% 15,4% 3,9% Enaex 96,3%

• 3,7%

Magotteaux 13,1%

• 12,4%

18,0% 24,0% 28,4% 4,1% SK Inv. Petroquímicas 100%

• Área Comercial y Automotriz

58,5% 30,1% 9,2% 0,5% 0,0% 0,0% 0,0% 1,6% SK Comercial 80,2% 15,9% 1,1% 2,8%

• SKIA

53,4% 33,4% 11,2%

• 2,0%

Ventas Empresas SK 60,7% 16,8% 4,5% 2,6% 3,4% 4,5% 5,3% 2,1%

Ventas Áreas de Negocios

Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 77,1% 22,9% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 70,9% 29,1%

• Puerto Ventanas

100%

• Área Industrial

48,2% 1,0% 0,0% 10,4% 8,6% 12,7% 15,4% 3,7% Enaex 79,4% 2,0%

• 9,9%
• 5,5%

3,2% Magotteaux 13,5%

• 11,0%

18,2% 26,8% 26,3% 4,2% SK Inv. Petroquímicas 100%

• Área Comercial y Automotriz

57,7% 32,1% 7,2% 0,4% 0,0% 0,0% 0,0% 2,6% SK Comercial 77,8% 18,5% 1,6% 2,0%

• SKIA

52,5% 35,6% 8,6%

• 3,3%

Ventas Empresas SK 57,2% 18,7% 3,2% 4,2% 3,3% 4,9% 5,9% 2,6%

Ventas Áreas de Negocios

SLIDE 19

EBITDA of Sigdo Koppers

19

• Results as of Dec-15

(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

Dic-14 Dic-15 Var. 4Q14 4Q15 Var.

Services 86.963 72.221

• 17,0%

20.799 20.058

• 3,6%

Ingeniería y Construcción SK 40.193 28.903

• 28,1%

7.675 9.388 22,3% Puerto Ventanas 46.770 43.318

• 7,4%

13.124 10.670

• 18,7%

Industrial 225.585 263.548 16,8% 58.342 70.440 20,7% Enaex 154.126 181.056 17,5% 39.187 48.402 23,5% Magotteaux (1) 69.009 80.415 16,5% 18.574 21.553 16,0% SK Inv. Petroquímicas 2.450 2.077

• 15,2%

581 485

• 16,5%

Commercial & Automotive 62.217 50.657

• 18,6%

16.127 10.492

• 34,9%

SK Comercial 62.297 50.760

• 18,5%

16.147 10.529

• 34,8%

SKIA (3)

• 80
• 103

28,8%

• 20
• 37

85,0% Parent company & adjustment

• 8.795
• 7.833
• 10,9%
• 1.505
• 2.190

45,5%

Consolidated EBITDA 365.970 378.593 3,4% 93.764 98.800 5,4%

EBITDA Margin 14,6% 15,7% 15,7% 15,7%

Consolidated pro-forma EBITDA 427.441 433.566 1,4% 111.232 113.992 2,5% Figures in ThUS$ EBITDA Business Areas Figures in ThUS$

Area Servicios Area Industrial Area Comercial y Automotriz

SLIDE 20

20

EBITDA Pro-Forma por área de Negocios

20

EBITDA Pro-Forma

Por áreas de negocio: Dec-15 v/s Dec-14 (US$ Thu)

• Resultados Dec-15

+1,4%

Lower EBITDA Pro-Forma in CLP (-9%) Lower performance in rental business

• utside Chile

Lower results in railway bussiness (FEPASA) Higher EBITDA in Enaex and Britanie and Davey Bickford consolidation Less IT expenses Better performance in castings and lower SG&A

Servicios Industrial Comercial y Automotriz

Favorable exchange rate conditions

SLIDE 21

Net Profit of Sigdo Koppers

21

• Results as of Dec-15

(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. (3) Extraordinary effect associated with the sale of Sigdopack in December 2013.

Dic-14 Dic-15 Var. Dic-15 Dic-14 Dic-15 Var.

Services 60.681 56.304

• 7,2%

34.515 32.144

• 6,9%

Ingeniería y Construcción SK 35.398 31.408

• 11,3%

60,43% 21.392 18.980

• 11,3%

Puerto Ventanas 25.283 24.896

• 1,5%

50,01% 13.123 13.164 0,3% Industrial 127.169 135.420 6,5% 83.419 89.640 7,5% Enaex 99.149 104.582 5,5% 60,72% 60.204 63.503 5,5% Magotteaux (1) 26.364 29.396 11,5% 95,00% 21.886 24.943 14,0% SK Inv. Petroquímicas (2) 1.656 1.442

• 12,9%

74,59% 1.329 1.194

• 10,2%

Commercial & Automotive 36.091 28.688

• 20,5%

35.358 28.654

• 19,0%

SK Comercial 5.144 225

• 95,6%

85,77% 4.411 192

• 95,6%

SKIA 30.947 28.463

• 8,0%

99,99% 30.947 28.462

• 8,0%

SK companies profit 223.941 220.412

• 1,6%

153.292 150.438

• 1,9%

Parent company & adjusments

• 18.624
• 15.451

Total consolidated profit 134.668 134.987 0,2% Total Companies Attributable to parent company Net profit Business Areas % SK Figures in ThUS$ Figures in ThUS$

SLIDE 22

Dec-14 Dic-15 Var.

Current Assets Cash and cash equivalent 237.470 245.206

3,3%

Account and sales receivables 560.715 539.654

• 3,8%

Inventories 310.523 296.416

• 4,5%

Other current assets 54.160 50.300

• 7,1%

Total current assets 1.162.868 1.131.576

• 2,7%

Long-term assets Property, plants & equipment 1.181.320 1.161.598

• 1,7%

Other long-term assets 1.036.125 1.181.849

14,1%

Total long-term assets 2.217.445 2.343.447

5,7%

Total assets 3.380.313 3.475.023

2,8%

Current liabilities Short-term financial debt 306.441 251.940

• 17,8%

Accounts payable 272.273 283.157

4,0%

Other current liabilities 155.012 167.098

7,8%

Total current liabilities 733.726 702.195

• 4,3%

Long-term liabilities Long-term financial debt 718.578 868.896

20,9%

Other long-term liabilities 325.520 330.186

1,4%

Total long-term liabilities 1.044.098 1.199.082

14,8%

Total liabilities 1.777.824 1.901.277

6,9%

Equity Attributable to the controller 1.198.855 1.188.685

• 0,8%

Attributable to non-controlling interests 403.634 385.061

• 4,6%

Total equity 1.602.489 1.573.746

• 1,8%

Total liabilities and equity 3.380.313 3.475.023

2,8%

Consolidated Balance Sheet

Figures in ThUS$

Balance Sigdo Koppers

22

• Results as of Dec-15

Indicators Net Financial Debt 787.549 875.630 Working Capital 598.965 552.913 Working Capital Days 87 84 Days of Consolidated Inventory 58 58 Accounts Receivable (Days) 82 82 Accounts Payable Days 51 56

SLIDE 23

23

Financial Net Debt/EBITDA Financial Debt

23

Servicios Industrial Comercial y Automotriz Matriz

US$ 1.121 millon – Consolidated US$ 876 millon – Financial Net Debt

Current 22% Non Current  78%

Cash (US$ millon) Financial Key Indicators

Conservative Financial Profile

• Results as of Dec-15
• Consolidated Leverage : 1,21x
• Financial Net Leverage :

0,56x

• Financial Net Debt/EBITDA: 2,31x
• Rating: A+ (Feller-Rate, Fitch-Ratings)

2,31x

SLIDE 24

Dic-14 Dic-15 Var.

Operating cash flow 316.956 372.951

17,7%

Investment cash flow

• 140.260
• 323.433

130,6%

Capex

• 138.896
• 130.359
• 6,1%

Fixed assets sales 5.445 2.678

• 50,8%

Other

• 6.809
• 195.752

2774,9%

Finance cash flow

• 146.376
• 36.466
• 75,1%

Net variation in financial liabilities 985 132.763

13378%

Interest

• 38.957
• 37.955
• 2,6%

Dividends

• 113.882
• 108.322
• 4,9%

Capital increased 3.378 229

• 93,2%

Other 2.100

• 23.181 -1203,9%

Total net cash flow 30.320 13.052

57,0%

Effect of exchange rate changes

• 10.479
• 8.734
• 16,7%

Cash and cash equivalent 235.238 239.556

1,8%

Consolidated Cash Flow

Figures in ThUS$

Cash Flow of Sigdo Koppers

24

• Results as of Dec-15

SLIDE 25

25

Capex by business Area

• Resultados Dec-15

(1) Capex Neto: El Capex de SKC incluye la venta de maquinaria usada de SK Rental

Major investments in fixed assets:

• Puerto Ventanas: Construction of warehouse for copper

concentrate capacity

• f

46,000 Tons (US$ 21 million investment)

• Enaex:

 Acquisition of 66.7% of the Brazilian company Britanite

(total investment US$ 85 million)

 Acquisition of 91% of Davey Bickford (total investment US

$ 106 million)

 New Plant for cartridged emulsions in Rio Loa de 14.400

Tons/year (Investment US$ 11 million)

• SK Comercial: Lower investment in SK Rental’s fleet, lower

activity.

Capex & Investments

Dic-14 Dic-15 MUS$ MUS$ Área Servicios 17.443 36.073 Ingeniería y Construcción SK 9.264 15.278 Puerto Ventanas 8.179 20.795 Área Industrial 87.814 259.473 Enaex 31.687 223.045 Magotteaux 56.127 36.428 SK Inv. Petroquímicas

• Área Comercial y Automotriz

15.624

• 13.565

SK Comercial (1) 15.624

• 13.565

SKIA

• Total Empresas SK

120.881 281.981

Capex e Inversiones Áreas de Negocios

SLIDE 26

Asesores Financieros

Results Presentation