Resultados Dec-14 Agenda 01 04 03 02 General Financial SKs - PowerPoint PPT Presentation

Asesores Financieros 1Q15 Results Presentation| June 2015

 Resultados Dec-14 Agenda 01 04 03 02 General Financial SK’s subsidiaries Main Background Highlights Exhibits Consolidated figures

Corporate Presentation | Sigdo Koppers Company Overview Sigdo Koppers , Chilean conglomerate founded in Sales 1960. One of the most dynamic and important (US$ millions) 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. Consolidated EBITDA (US$ millions) Ingeniería y Enaex Enaex Magotteaux Magotteaux SK Comercial SK Comercial Construcción 60.43% 60.72% 95.00% 85.77% Net Profit Puerto (US$ millions)  286 (1) SK Godelius CHBB SKBergé Ventanas  121 (2) 50.01% 58.19% 74.59% 40.00% Source: Company Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of March 2015, 3 (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 Corporate Governance Board of Directors Ownership Structure 5,95% Stock Brokers 6,43% Mutual Funds and other institutional investors 9,21% Pension Funds and Insurance companies 3 4 2 1 5 6 7 1,99% Others Ownership structure as of Mar-15 1. Juan Eduardo 2. Naoshi Matsumoto Errázuriz Ossa Takahashi Chairman Vicepresident 3. Juan Andrés Fontaine 4. Horacio Pavez García Talavera  Daily Average vol. traded (1) : US$0,6 millions Director Director 5. Norman Hansen Rosés 6. Canio Corbo Lioi  Market Cap: US$1,650 millions (As of Mar 30th 2015) Director Director 7. Jaime Vargas Serrano Director Source: Santiago Stock Exchange. 4 (1) Last 12 month

Corporate Presentation | Investment approach Supplier of products and services for the mining  Strategic Focus: Provide products and  aprox. 75% of the SK’s Consolidated EBITDA services for the mining and industry comes from the exposure to the mining activities  Involved in the main stages of the mining value chain 3 4 1 2 MINING ORE MINING OPERATION SALES & LOGISTICS DEVELPOMENT PROCESSING … + + + 1 Anglo American - Minera Los Bronces: 2 3 4 + + + Codelco – Andina: 1 2 3 4 5 + + BHP Billiton - Minera Escondida: 1 2 3

 Results as of Mar-15 Agenda 01 04 03 02 General Financial SK’s subsidiaries Main Background Highlights Exhibits Consolidated figures 6

 Results as of Mar-15 Highlights as of March 2015  The consolidated revenues droped in US$95.72 millon Figures in ThUS$ Consolidated Income Statement  US$79 millon explained by a Mar-14 Mar-15 Var. lower activity in ICSK -14,8% Sales 646.159 550.438  US$15 million explained by EBITDA (1) 92.476 89.603 -3,1% exchange rate EBITDA Margin 14,3% 16,3%  US$7 million explained by lower EBITDA Pro Forma (2) activity in machinery distribution 105.369 102.425 -2,8% business in SKC Profit (Loss) 55.425 48.077 -13,3%  Sigdo Koppers’ consolidated EBITDA was Sigdo Koppers Net Profit (non 35.333 31.381 -11,2% US$89.6 million as at March 2015, a recurrent) decline of 3.1%. Nonetheless, the EBITDA margin rose from 14.3% to 16.3%, a reflection of the cost control efforts in Dic-14 Mar-15 Var. several of the companies. Total Assets 3.428.052 3.403.048 -0,7%  The net profit totaled US$31.4 million, a (3) decrease of 11.2% compared to the close 1.602.489 1.617.665 0,9% Total Equity of the previous year. Deuda Financiera Neta 787.549 680.954 -13,5% Deuda Financiera Neta/ EBITDA 2,15 1,88 ROE  11,23% 10,80% Sigdo Koppers has a good consolidated cash liquidity of US$286.5 million and a ROCE 9,39% 9,47% conservative level of consolidated debt. The net financial debt-to-EBITDA ratio is 1.88. (1) EBITDA = Ganancia Bruta + Otros Ingresos por Función – Costos de Distribución - Gastos de Administración – Otros Gastos por Función + Gastos de Depreciación y Amortización 7 (3) EBITDA Pro-forma: considera las utilidades de empresas relacionadas que no consolidan. 7

 Results as of Mar-15 Level of Activity - Physical Sale Industrial Commercial & Automotive Services Ing. y Construcción Enaex SK Rental SK Comercial (millions Men Hours) (units) Fleet (US$MM) (MTons) Puerto Ventanas Magotteaux SKBergé (Tons) (Mtons) (units) 8 8

 Results as of Mar-15 EBITDA Pro-Forma By business area : Mar-14 v/s Mar-15 (US$ Thu) EBITDA Pro-Forma by business area -2,8% Lower performance in both Leasing and Lower EBITDA Distribution & Pro-Forma en CLP Services (-42,4%) Less favorable exchange rate Lower EBITDA due conditions to lower physical sales Services Industrial Commercial y Less IT Better performance in expenses Automotive both castings and Increased grinding balls. Revenue and operational efficiency in Port Business 9 9

 Results as of Mar-15 CAPEX Mar-14 Mar-15 Capex Áreas de Negocios MUS$ MUS$ Major investments in fixed assets: Área Servicios 3.441 4.898  Puerto Ventanas: Begins construction of Ingeniería y Construcción SK 1.464 1.812 warehouse for copper concentrate capacity of Puerto Ventanas 1.977 3.086 46,000 Tons (US $ 21 million investment) Área Industrial 21.810 13.735  Enaex: New Plant for cartridged emulsions in Rio Enaex 4.744 8.179 Loa de 14.400 Tons/year (Investment US$ 11 Magotteaux 17.066 5.556 million) SK Inv. Petroquímicas - - Área Comercial y Automotriz 5.816 1.651  SK Comercial: Lower investment in SK Rental’s SK Comercial (1) 5.816 1.651 fleet , lower activity. SKIA - - Capex Empresas SK 31.066 20.284 (1) Capex Neto: El Capex de SKC incluye la venta de maquinaria usada de SK Rental 10 10

 Results as of Mar-15 Conservative Financial Profile Financial Net Debt/EBITDA Financial Debt Matriz Servicios Current  30% 1,88x Non Current  70% Industrial Comercial y Automotriz US$ 968 millon – Consolidated US$ 681 millon – Financial Net Debt Cash (US$ millon) Financial Key Indicators  Consolidated Leverage : 1,10x  Financial Net Leverage : 0,42x  Financial Net Debt/EBITDA: 1,88x  Rating: A+ (Feller-Rate, Fitch-Ratings) 11 11

 Results as of Mar-15 Agenda 01 04 03 02 General Financial SK’s subsidiaries Main Background Highlights Exhibits Consolidated figures

 Results as of Mar-15 Ingeniería y Construcción SK Ingeniería y Construcción Sigdo Mar-14 Mar-15 Var. Koppers MM$ MM$ % Revenue 94.240 51.247 -45,6% EBITDA 6.577 2.548 -61,3% EBITDA Margin 7,0% 5,0% EBITDA Pro-Forma (*) 10.404 5.989 -42,4% Controller's net profit 5.847 3.121 -46,6% Horas Horas Var. (Miles) (Miles) Total man-hours executed 7.837 5.111 -34,8%  ICSK reached 5.1 million man-hours (-35%), reflecting a drop in activity, particularly in the mining sector.  Its net profit totaled CH$3.121 billion (US$5.0 million), a decrease of 47% in pesos compared to the first quarter of 2014.  Pro-Forma EBITDA (*) de $5.989 millon (-42,4%)  The backlog as of March 31, 2015 was US$695 million , a rise of 58.4% in pesos compared to December 2014. The reason was the award of the SIC-SING interconnection project that will entail an investment of close to US$320 million.  Backlog distribution: Chile (89%) & Perú (11%). (*) Incorpora la utilidad empresas relacionadas 13

 Results as of Mar-15 Puerto Ventanas Mar-14 Mar-15 Var. Puerto Ventanas Consolidated MUS$ MUS$ % Revenue 35.330 33.904 -4,0% EBITDA 11.612 12.176 4,9% EBITDA Margin 32,9% 35,9% Controller's net profit 6.241 7.201 15,4% PVSA - Tons transferred 1.524.332 1.597.306 4,8% Fepasa - Th Ton-Km 307.076 305.289 -0,6% Puerto Ventanas Fepasa  1,597,306 tons (+4.8%) transfered as of Mar-15  Fepasa carried a total of 305,289 Ktons-Km of  Coal (+22%) cargo 1Q15 (-1%)   Mining cargo (21% of total transported): +4% Clinker (+59%) in Ton/Km  Cooper Concentrate (-16%)  Forestry cargo (pulp): (54% of total  Revenues from the Port Business grew 4% transported): +4% in Ton/Km compared to Mar-14  Fepasa consolidated EBITDA reached US$3  Port business EBITDA increased 18% due to higher millions (-12% en pesos) operating efficiency and more favorable exchange  EBITDA Margin: 15% rate.  Fepasa signed a contract with Anglo American to carry  EBITDA Margin: 60% copper concentrate via railroad from Las Tortolas Plant  PVSA Holds a market share of 62% in solid bulk as (Los Andes) to Puerto Ventanas, beginning operations of March 2015 in 2017. 14