Result Presentation December 2018 Results 4Q18 Agenda 03 04 02 - - PowerPoint PPT Presentation

SLIDE 1

▪Asesores Financieros

Result Presentation December 2018

SLIDE 2

Agenda

▪

Results 4Q18

01

General Background

02

Main Consolidated figures

03

Financial Exhibits

04

Q&A

SLIDE 3

3

▪ Consolidated revenues increased 5% compared to dec-17: ✓

Higher income in Magotteaux (+6%) aligned with higher lever of physical sales (+2%).

✓

Higher revenues in Enaex (+11%) mainly explained by a higher level of sales of initiation systems (+23%).

✓

Higher revenues in PVSA (+18%) mainly by higher cargo transference in the railway business (+17%).

▪ Consolidated EBITDA amounted to US$313 million (+10%) ✓

Best operating result in Magotteaux and PVSA.

✓

Better performance in the rental and distribution business of machinery of SK Comercial.

▪ Net profit totaled US$86 million (+3%) : ✓

Increase of 60% in Magotteaux Net Profit, higher margin and higher physical sales.

✓

Higher level of sales in the machinery distribution business in Chile.

✓

Losses recorded in Ingeniería y Construcción Sigdo Koppers, which originate from the work at the Talara refinery in Peru.

Highlights - December 2018

▪

Results 4Q18

(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.

▪

Good liquidity and level of leverage

✓

Consolidated Cash US$287 million

✓

Net Financial Debt/EBITDA is 2,64x

Dec-17 Dec-18

Var.

Sales 2.204.618 2.329.917

5,7%

EBITDA (1) 285.930 313.323

9,6% EBITDA Margin 13,0% 13,4%

EBITDA Pro Forma (2) 318.158 343.844

8,1%

Profit (Loss) 127.081 128.269

0,9%

Sigdo Koppers Net Profit (non recurrent) 83.387 86.106

3,3%

Dec-17 Dec-18

Var.

Total Assets 3.635.093 3.676.849

1,1%

Total Equity (3) 1.760.468 1.719.739

• 2,3%

Net Debt 750.573 827.156

10,2%

Net Debt / EBITDA

2,63 2,64

ROE 6,30% 6,58% ROCE 5,80% 6,99% Consolidated Income Statement Figures in ThUS$

SLIDE 4

Agenda

▪

Results 4Q18

01

General Background

02

Main Consolidated figures

03

Financial Exhibits

04

Q&A

SLIDE 5

5

▪…

OPERATION SALE AND LOGISTIC ▪ DEVELOPMENT PROCESS

▪

Results 4Q18

Main Subsidaries

60,62% 60,72% 87,20% 98,07% 40,0% 50,01% 51,82%

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

SLIDE 6

Ingeniería y Construcción Sigdo Koppers Dec-17 Dec-18 Var. 4Q17 4Q18 Var. MM$ MM$ % MM$ MM$ % Revenue 290.598 273.102

• 6,0%

66.472 89.368 34,4% EBITDA 10.100 5.858

• 42,0%

11.051 11.022

• 0,3%

EBITDA Margin 3,5% 2,1% 16,6% 12,3%

Pro-Forma EBITDA(*) 13.754 8.270

• 39,9%

10.859 12.666 16,6%

Pro-Forma EBITDA Margin 4,7% 3,0% 16,3% 14,2%

Controller's net profit 5.103

• 3.739
• 173,3%

6.379 5.765

• 9,6%

Horas (Miles) Horas (Miles) Var. Horas (Miles) Horas (Miles) Var. Total man-hours executed 16.378 18.178 11,0% 5.122 5.006

• 2,3%

Ingeniería y Construcción SK

▪ ICSK Chile ➢ Higher level of activity in industrial and mining areas ➢ Lower income explained by change in accounting standard (IFRS 15) ▪ ICSK Peru ➢ Low level of activity ➢ Works in the Talara refinery project (PetroPeru) records losses ▪ Backlog equivalent to US$533 millon

➢Projects awarded for US$ 347 million (Jan-Dec-2018): ▪ CHILE: Main Transportation System Chuquicamata (Codelco), Andina Transfer and Intermediate Transport System

(Codelco), Dataluna Datacenter Project, Project pulpa textile Valdivia Plant (Arauco), Cervecerias Chile expansion project and Project underwater lines, Oxiquim.

▪ BRASIL: EPC Electric transmission lines in Brazil. ▪ PERU: Sulfur plant and material handling for Marcobre ▪ COLOMBIA: EPC Water Plant Termozipa

▪

Results 4Q18

6

SLIDE 7

Puerto Ventanas

Puerto Ventanas ▪ Cargo Transfer (+8%)

➢ Higher transfers of concentrate (+11%) and grains

(+53%)

▪ The revenues of the Port Business reached US$

70 million (+8%)

▪ Lower result in port business, different cargo mix

with lower margins and higher SGA associated with the search for new growth opportunities 7

▪

Results 4Q18

Fepasa ▪ Mobilized load (+17%)

➢ Movement of cargo in the mining (+29%) and

forestall (+15%) sector

➢ Higher

cargo movement for Codelco Teniente and for Anglo American Los Bronces (new contract)

➢ Higher movement of cargo for Arauco

▪ Growth of 58% in EBITDA: MM $ 8,966

Puerto Ventanas Consolidated Dec-17 Dec-18 Var. 4Q17 4Q18 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 136.773 161.608 18,2% 35.356 45.189 27,8% EBITDA 40.403 48.401

19,8%

10.167 14.487

42,5% EBITDA Margin 29,5% 29,9% 28,8% 32,1%

Controller's net profit 20.063 21.373

6,5%

4.636 7.133

53,9% PVSA - Tons transferred 5.412.836 5.832.590 7,8% 1.253.774 1.541.781 23,0% Fepasa - Th Ton-Km 948.597 1.108.301 16,8% 231.881 285.411 23,1%

SLIDE 8

8

Enaex

▪ Chemical business

➢ Higher sales of Amonium Nitrate (AN) in Chile (+6%) ➢ Exports of AN increased by 12%

▪ Rock Blasting Services

➢ Chile: Similar level of activity compared to December 2017 ➢ Brasil/Britanite: Increase in sales volume (+19%) and EBITDA (+9%)

▪ Inititation Systems (Davey Bickford)

➢ Higher revenues (+23%), higher sales levels in the Latin American and

North American markets.

▪ Cachimayo Plant

➢ 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.

▪

Results 4Q18

Physical sales evolution (Thu Tons)

Enaex Dec-17 Dec-18 Var. 4Q17 4Q18 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 705.173 783.061 11,0% 191.445 223.464 16,7% EBITDA 164.373 166.235

1,1%

44.132 46.440

5,2% EBITDA Margin 23,3% 21,2% 23,1% 20,8%

Controller's net profit 80.184 78.730

• 1,8%

21.474 23.128

7,7%

100 200 300 400 500 600 700 800 900 1000 2009 2010 2011 2012 2013 2014 2015 2016 2017 L12M 543 671 834 853 839 865 934 853 832 923

SLIDE 9

▪ Volume

➢ Grinding Balls: Higher volumes of grinding balls,

particularly in the mining market (+4%) in South America and Asia. Volume affected by lower sales of balls in the cement and utilities market (-16%)

➢ Casting: Higher Casting volumes, particularly in the

cements (+2%) and aggregates (+5%) markets

▪ Higher level of EBITDA (+42%) driven mainly by

better prices in both GM and Casting

▪ Net income showed an increase of 52%

▪

Results 4Q18

9

Magotteaux Group Dec-17 Dec-18 Var. 4Q17 4Q18 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 667.376 709.188 6,3% 169.182 181.386 7,2% EBITDA 43.323 61.592

42,2%

14.767 15.815

7,1% EBITDA Margin 6,5% 8,7% 8,7% 8,7%

Controller's net profit 13.627 20.653

51,6%

6.679 9.698

45,2%

Dec-17 Dec-18 Grinding Media 319.467 322.688 1,0% Casting 49.183 52.160 6,1% Total 368.650 374.848 1,7% Magotteaux Group Var. %

SLIDE 10

10

SK Comercial

▪ Machinery Distribution Business

➢ Higher physical sale of machinery (+18%) ➢ Increase in sales by 12% compared to December 2017

▪ Machinery Rental Business

➢ Fleet: US$134 million (-11% vs. dic-17) ➢ Machinery Rental Business in Chile: Decrease in the size of the fleet, a significant recovery in the

demand is not yet evident

➢ Machinery Rental Business in Peru:. Improvement in results compared to December 2017 but

underperformance, mainly due to a low level of investment projects in Peru

▪ Reorganization Plan

➢ Extraordinary profit from the sale of a piece of land framed in the restructuring process of SKC

▪

Results 4Q18

SK Comercial Dec-17 Dec-18 Var. 4Q17 4Q18 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 254.266 265.981 4,6% 63.591 72.763 14,4%

Distribution Business

166.273 185.506 11,6% 43.651 50.650 16,0%

Rental Business

100.958 96.746

• 4,2%

23.122 24.268 5,0%

Consolidation adjust

• 12.965
• 16.271

0,0%

• 3.182
• 2.155

0,0%

EBITDA 23.864 34.811 45,9% 6.589 9.326

41,5% EBITDA Margin 9,4% 13,1% 10,4% 12,8%

Controller's net profit

• 7.855

2.039

126,0%

• 593

805

235,8%

66% 16% 6% 10% Chile Perú Brasil Colombia

Distribution of the SK Rental Fleet by Country (US$)

SLIDE 11

11

SK Inversiones Automotrices

▪ SKIA obtained a profit of MM$26,9 (US$17,2

millon) (-0.8%)

➢ Result explained as a result of losses due to

exchange rate differences (strong devaluation of the Argentine peso).

▪ SKBergé

recorded sales

• f

91,946 units, showing a greater sale of 18% compared to December 17

➢ Highest sales level in Chile: 56,632 units (+28%) ➢ Greater performance in sales abroad 37,314 units

(+6%)

Perú Argentina Chile Colombia

▪

Results 4Q18

SK Inversiones Automotrices Dec-17 Dec-18 Var. 4Q17 4Q18 Var. MM$ MM$ % MM$ MM$ % Controller's net profit 17.393 17.254

• 0,8%

3.721 7.098

90,7%

SLIDE 12

Agenda

▪

Results 4Q18

01

General Background

02

Main Consolidated figures

03

Financial Exhibits

04

Q&A

SLIDE 13

Sigdo Koppers Income Statement

13

▪

Results 4Q18

Dec-17 Dec-18 Var. 4Q17 4Q18 Var.

Sales 2.204.618 2.329.917

5,7%

563.352 651.508

15,6%

Sales expenses

• 1.722.298
• 1.800.047
• 4,5%
• 435.175
• 497.495
• 14,3%

Gross income 482.320 529.870

9,9%

128.177 154.013

20,2%

Other operating income 14.932 13.248

• 11,3%

6.469 2.587

• 60,0%

Distribution costs

• 69.782
• 78.005
• 11,8%
• 17.325
• 19.359
• 11,7%

Administrative expenses

• 222.303
• 220.995

0,6%

• 58.475
• 50.229

14,1%

Other operating expenses

• 42.274
• 48.137
• 13,9%
• 11.288
• 13.412
• 18,8%

Other gains (losses) 907 2.180

140,4%

3.310

• 449
• 113,6%

Operating income 163.800 198.161

21,0%

50.868 73.151

43,8%

EBITDA 285.930 313.323

9,6%

86.278 101.987

18,2% % EBITDA Margin 13,0% 13,4% 15,3% 15,7%

Interest income 5.731 6.327

10,4%

1.796 2.335

30,0%

Interest expenses

• 53.754
• 57.261
• 6,5%
• 13.078
• 15.700
• 20,0%

Related companies income 32.228 30.521

• 5,3%

5.285 12.956

145,1%

Exchange differentials 3.048

• 4.375
• 243,5%
• 152
• 18

88,2%

Price - level restatement

• 2.134

3.165

248,3%

• 1.021

1.174

215,0%

Other income (losses) 907 2.180

140,4%

3.310

• 449
• 113,6%

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

• -
• -

Income before taxes 148.919 176.538

18,5%

43.698 73.898

69,1%

Income tax

• 21.838
• 48.269
• 121,0%

3.208

• 16.443
• 612,6%

Income 127.081 128.269

0,9%

46.906 57.455

22,5%

Gain (losses) from uncontinnued operations

• -
• -

Net income 127.081 128.269

0,9%

46.906 57.455

22,5% Income attributable to Sigdo Koppers

83.387 86.106

3,3%

31.599 40.256

27,4%

Income attributable to non-controlling interests 43.694 42.163

• 3,5%

15.307 17.199

12,4% Sigdo Koppers Consolidated Income Statement Figures in ThUS$ Cifras en MUS$

SLIDE 14

Revenue Business Areas Figures in ThUS$ Figures in ThUS$ Dec-17 Dec-18 Var. 4Q17 4Q18 Var.

Services 584.791 587.326 0,4% 140.590 178.750 27,1% Ingeniería y Construcción SK 448.018 425.718

• 5,0%

105.234 133.561 26,9% Puerto Ventanas 136.773 161.608 18,2% 35.356 45.189 27,8% Industrial 1.375.338 1.492.249 8,5% 361.285 404.850 12,1% Enaex 705.173 783.061 11,0% 191.445 223.464 16,7% Magotteaux (1) 667.376 709.188 6,3% 169.182 181.386 7,2% SK Inv. Petroquímicas 2.789

• 100,0%

658

• 100,0%

Commercial & Automotive 254.266 265.981 4,6% 63.591 72.763 14,4% SK Comercial 254.266 265.981 4,6% 63.591 72.763 14,4% SKIA (2)

• Parent company & adjustment(3)
• 9.777
• 15.639
• 60,0%
• 2.114
• 4.855
• 129,6%

Consolidated Sales 2.204.618 2.329.917 5,7% 563.352 651.508 15,6%

Revenue Sigdo Koppers

14

▪

Results 4Q18

(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

Services Area Industrial Area Commercial and Automotive Area

25% 64% 11%

Consolidated Sales

Total: MMUS$ 2,329

SLIDE 15

Revenue by country (incl. SK Bergé)

▪D

15

▪

Results 4Q18 ▪ December 2017 ▪ December 2018

Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 87,5% 12,5% 0,0% 6,7% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 83,7% 16,3%

• 8,8%
• Puerto Ventanas

100%

• Área Industrial

36,9% 4,6% 0,1% 12,9% 8,6% 14,7% 18,0% 4,2% Enaex 60,1% 8,9% 0,3% 16,6%

• 10,1%

4,0% Magotteaux 12,2%

• 8,9%

17,7% 30,3% 26,5% 4,4% SK Inv. Petroquímicas 100,0%

• Área Comercial y Automotriz

60,4% 27,8% 5,8% 0,5% 0,0% 0,0% 0,0% 5,5% SK Comercial 92,1% 2,4% 2,0% 3,6%

• SKIA

55,3% 31,9% 6,4%

• 6,4%

Ventas Empresas SK 56,1% 17,0% 2,9% 5,9% 3,1% 5,3% 6,5% 4,2%

Ventas Áreas de Negocios

Chile Perú Colombia Brasil Asia Norte America Europa Otros Países MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ Área Servicios 93,1% 6,9% 0,0% 5,3% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 90,5% 9,5%

• 7,3%
• Puerto Ventanas

100%

• Área Industrial

36,9% 4,4% 0,1% 10,5% 12,5% 11,5% 16,8% 7,2% Enaex 61,8% 8,5% 0,2% 10,2%

• 15,9%

3,3% Magotteaux 9,3%

• 10,8%

26,3% 24,2% 17,8% 11,6% Área Comercial y Automotriz 64,7% 22,9% 7,5% 0,5% 0,0% 0,0% 0,0% 4,3% SK Comercial 92,4% 1,6% 1,7% 4,2%

• SKIA

60,8% 25,9% 8,4%

• 5,0%

Ventas Empresas SK 58,8% 14,1% 3,8% 4,7% 4,4% 4,1% 6,0% 4,8%

Ventas Áreas de Negocios

SLIDE 16

EBITDA Business Areas Figures in ThUS$ Figures in ThUS$ Dec-17 Dec-18 Var. 4Q17 4Q18 Var.

Services 55.975 57.533 2,8% 27.192 31.830 17,1% Ingeniería y Construcción SK 15.572 9.132

• 41,4%

17.025 17.343 1,9% Puerto Ventanas 40.403 48.401 19,8% 10.167 14.487 42,5% Industrial 210.493 227.783 8,2% 59.217 62.255 5,1% Enaex 164.373 166.235 1,1% 44.132 46.440 5,2% Magotteaux (1) 43.323 61.592 42,2% 14.767 15.815 7,1% SK Inv. Petroquímicas 2.797

• 44
• 101,6%

318

• 100,0%

Commercial & Automotive 23.772 34.696 46,0% 6.556 9.308 42,0% SK Comercial 23.864 34.811 45,9% 6.589 9.326 41,5% SKIA (3)

• 92
• 115
• 25,0%
• 33
• 18

45,5% Parent company & adjustment

• 4.310
• 6.689
• 55,2%
• 6.687
• 1.406

79,0%

Consolidated EBITDA 285.930 313.323 9,6% 86.278 101.987 18,2%

EBITDA Margin 13,0% 13,4% 15,3% 15,7%

Consolidated pro-forma EBITDA 318.158 343.844 8,1% 96.373 107.993 12,1%

EBITDA Sigdo Koppers

16

▪

Results 4Q18

(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.

Services Area Industrial Area Commercial and Automotive Area

17% 65% 18%

Consolidated Pro Forma EBITDA

Total: MMUS$ 343,84

SLIDE 17

Result affected by cost

• verruns and lower yields

in the Talara project in Peru. Greater performance in machinery rental business, together with higher level of physical sales in the machinery distribution business Better result product

• f greater transfers

in port and rail business Higher operational result in the initiation systems business Higher margins in grinding ball (GM) and casting business, together with an increase in GM's physical sales in mining and casting

EBITDA Pro-Forma by business areas

17

EBITDA Pro-Forma

By business areas: dic-17 v/s dic-18 (K US$)

▪

Results 4Q18

+8%

Services Industrial Commercial and Automotive

Result affected by loss due to exchange rate losses 17% 65% 17% Higher comparison base profit for sale of CHBB in 2017

SLIDE 18

Sigdo Koppers Net Profit

18

▪

Results 4Q18

(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. Services Area Industrial Area Commercial and Automotive Area

Net profit Business Areas Total Companies % SK Attributable to parent company Figures in ThUS$ Figures in ThUS$ Dec-17 Dec-18 Var. Dec-18 Dec-17 Dec-18 Var.

Services 27.930 15.544

• 44,3%

15.882 8.176

• 48,5%

Ingeniería y Construcción SK 7.867

• 5.829
• 174,1%

60,43% 5.020

• 3.928
• 178,2%

Puerto Ventanas 20.063 21.373 6,5% 50,01% 10.862 12.104 11,4% Industrial 95.736 99.461 3,9% 60.171 63.669 5,8% Enaex 80.184 78.730

• 1,8%

60,72% 48.689 47.806

• 1,8%

Magotteaux (1) 13.627 20.653 51,6% 95,00% 9.887 15.791 59,7% SK Inv. Petroquímicas (2) 1.925 78

• 95,9%

74,59% 1.595 72

• 95,5%

Commercial & Automotive 18.976 28.980 52,7% 19.972 28.727 43,8% SK Comercial

• 7.855

2.039 126,0% 87,20%

• 6.846

1.784 126,1% SKIA 26.831 26.941 0,4% 99,99% 26.818 26.943 0,5%

SK companies profit 142.641 143.985 0,9% 96.025 100.572 4,7%

Parent company & adjusments

• 12.638
• 14.466

Total consolidated profit 83.387 86.106 3,3%

8% 63% 29%

Consolidated Net Profit

Total: MMUS$ 86,10

SLIDE 19

Consolidated Balance Sheet

Figures in ThUS$ Dec-17 Dec-18 Var.

Current Assets Cash and cash equivalent 310.877 286.801

• 7,7%

Account and sales receivables 578.018 520.227

• 10,0%

Inventories 300.013 408.116

36,0%

Other current assets 31.997 36.959

15,5%

Total current assets 1.220.905 1.252.103

2,6%

Long-term assets Property, plants & equipment 1.185.268 1.185.574

0,0%

Other long-term assets 1.228.920 1.239.172

0,8%

Total long-term assets 2.414.188 2.424.746

0,4%

Total assets 3.635.093 3.676.849

1,1%

Current liabilities Short-term financial debt 245.781 223.409

• 9,1%

Accounts payable 362.129 398.485

10,0%

Other current liabilities 148.740 152.805

2,7%

Total current liabilities 756.650 774.699

2,4%

Long-term liabilities Long-term financial debt 815.669 890.548

9,2%

Other long-term liabilities 302.306 291.863

• 3,5%

Total long-term liabilities 1.117.975 1.182.411

5,8%

Total liabilities 1.874.625 1.957.110

4,4%

Equity Attributable to the controller 1.324.488 1.308.420

• 1,2%

Attributable to non-controlling interests 435.980 411.319

• 5,7%

Total equity 1.760.468 1.719.739

• 2,3%

Total liabilities and equity 3.635.093 3.676.849

1,1%

Sigdo Koppers Balance sheet

19

▪

Results 4Q18

Services Area Industrial Area Commercial and Automotive Area

Indicators Dec-17 Dec-18 Net Financial Debt 750.573 827.156 Working Capital 515.902 529.858 Working Capital Days 85 83 Days of Consolidated Inventory 64 83 Accounts Receivable (Days) 96 81 Accounts Payable Days 77 81

17% 73% 10%

Consolidated Assets

Total: MMUS$ 3,676

SLIDE 20

0,0 0,5 1,0 1,5 2,0 2,5 3,0

Net Financial Debt / EBITDA + Consortium Financial Debt

20

Services Industrial Commercial and Automotive SK Holding

US$ 1.114 millon – Consolidated US$ 827 millon – Net Financial Leverage

CP → 20% LP → 80%

Cash (US$ million) Key financial Indicators

Conservative financial profile

▪

Results 4Q18 2,64x

▪ Consolidated Leverage: 1,14x ▪ Financial Net Leverage**: 0,46x ▪ Net Financial Debt/EBITDA: 2,64x ▪ ND/EBITDA+Consortium : 2,58x ▪ Coverage Financial Expenses: 5,525x ▪ Rating: A+ Fitch-Ratings, AA- ICR

* Including CHBB, SK Inv. Automotrices S.A. y SK Internacional S.A. ** Corporate Bonds Covenant < 1,2x 15,9% 53,3% 10,8% 20,0%

287 108 50 100 150 200 250 300 350

Consolidada Matriz *

SLIDE 21

Cash Flow of Sigdo Koppers

21

▪

Results 4Q18

Consolidated Cash Flow

Figures in ThUS$ Dec-17 Dec-18 Var.

Operating cash flow 339.201 161.992

• 52,2%

Investment cash flow

• 111.910
• 132.037
• 54,9%

Capex

• 100.715
• 108.276
• 1,6%

Fixed assets sales 3.051 28.683

• 27,0%

Other

• 14.246
• 52.444
• 104,9%

Finance cash flow

• 226.956
• 42.252

322,6%

Net variation in financial liabilities

• 109.761

60.560

• 107%

Interest

• 39.825
• 42.299

34,2%

Dividends

• 65.941
• 64.917
• 3,1%

Capital increased

18,0%

Other

• 11.429

4.404 Total net cash flow 335

• 12.297
• 7,5%

Effect of exchange rate changes 6.340

• 8.689
• 268,1%

Cash and cash equivalent 288.070 267.084

81,4%

SLIDE 22

CAPEX

22

▪

Results 4Q18

(1) Net Capex: SKC's Capex includes the sale of used machinery from SK Rental

Main investments in Fixed Assets:

▪ ICSK:

✓ Increase of machinery for new investments

▪ Puerto Ventanas:

✓ Final disbursement site 3

▪ Enaex:

✓ Acquisition of Cachimayo Plant in Peru (US$15.2

million)

▪ Magotteaux:

✓ Investment in shares of Grinding Media South

Africa (consortium with Scaw Metal) (US$26.7 million)

▪ SK Inv. Petroquímicas:

✓ Sale of CHBB (US $ 8.5 million)

▪ SK Comercial:

✓ Purchase of new machinery and sale of old

equipment (fleet renewal)

✓ Sale of the Sigdotek ground ( US$6.9 million)

Dec-17 Dec-18

Services 39.396 32.671 Ingeniería y Construcción SK 332 14.772 Puerto Ventanas 39.064 17.899 Industrial 47.403 94.112 Enaex 32.128 56.854 Magotteaux (1) 15.275 45.772 SK Inv. Petroquímicas

• (8.514,00)

Commercial & Automotive

• 46.537
• 15.980

SK Comercial

• 46.537
• 15.980

SKIA (3)

• Total

40.263 110.803 Capex & Investments Business Areas Figures in ThUS$

SLIDE 23

Agenda

▪

Results 4Q18

01

General Background

02

Main Consolidated figures

03

Financial Exhibits

04

Q&A

SLIDE 24

▪Asesores Financieros

Results Presentation