Corporate Presentation. September 2015 Results

Transcription

1 Corporate Presentation September 2015 Results

2 Agenda Enaex and its history Enaex in the explosive market Financial Background

3 Sales (TM USD) Enaex at a Glance (1) With 95 years of history in the Chilean market, Enaex S.A is the main ammonium nitrate producer and supplier of comprehensive rock fragmentation services for the mining industry in Latin America. Enaex has a global presence, a solid financial position, low debt levels and is controlled by Sigdo Koppers Group. AA- (stable) LTM 2015* EBITDA (TM USD) 732 AA- (stable) LTM 2015* Chemical Products Services International Subsidiaries Net Profit (TM USD) LTM 2015* = Last twelve months to September 2015 Source: The Company, SVS LTM 2015*

4 Enaex at a Glance (2) Board of Directors Ownership Structure 13,1% Sigdo Koppers 12,6% Austin Powder 13,6% 60,7% Grupo Karlezi Solari AFP's, Investment funds and others Juan Eduardo Errázuriz Ossa Jorge Carey Tagle Juan Pablo Aboitiz Domínguez Alejandro Gil Gómez Norman Hansen Fernández Naoshi Matsumoto Takahashi Horacio Pavez García Kenneeth Pickering Ewen Sergio Undurraga Saavedra President Vice President Director Director Director Director Director Director Director Other of SK Group Enaex Enaex is an important subsidiary of SK Group (Million USD / LTM 2015*) (71%) 732 (31%) (61%) 172 (46%) (55%) 63 (47%) LTM 2015* = Last Twelve Months to September 2015 Source: The Company, SVS. 4 Ingresos EBITDA Utilidad Sales EBITDA Net Profit

5 Outstanding Growth History First Ammonium Nitrate plant is built with a production capacity of tons per year. Chilean Explosive Company is founded The Company is established as Enaex S.A Sigdo Koppers takes control of Enaex, increasing its ownership interest to 50.01% Increase capacity production of ammonium nitrate in Prillex, bringing the company's total capacity to tons per year A new capacity increase in the Prillex complex, which brings it to a total capacity of tons of ammonium nitrate per year Enaex acquires one third of Britanite (IBQ). Enaex starts operating at the Peruvian market Enaex acquires 100% of Britanite. Enaex acquires 91% of Davey Bickford. Sigdo Koppers acquires 33% of the company s shares. Source: The Company, SVS. 5

6 SERVICES CHEMICALS Present in all of the blasting service process chain Import Materials Importation by ships of 100% of ammonia in its liquid state. Ammonia storage and managing supplies Once the shipment arrives at Enaex port, the ammonia is stored in tanks in the Prillex complex. Nitric Acid Production Production takes place at PANNA (Nitric Acid and Ammonium Nitrate plant). Nitric Acid is made by the combination of Ammonia and Oxygen (O 2 ) Ammonium Nitrate Production The ammonia is now combined with Nitric Acid obtaining liquid Ammonium Nitrate. Blasting Services Enaex Servicios S.A provides a comprehensive blasting service to our main clients. Manufacture plant of High Explosives High Explosives Detonators Emulsions Cartridges Transportation Ammonium Nitrate is transported by trucks to the mines where the blasting services are provided.. Ammonium Nitrate Exportation Ammonium Nitrate is exported to different countries as a raw material for the manufacture of explosives. Main Business Lines. Source: The Company. 6

7 Constant Concern for Innovation and CSR (1) Competitive Factor ENAEX Solutions Hidrex Panfex Mineral Law Energy and Water Solutions for deep mining and slopes Prillex ULD High Fragmentation Energex Productivity and Logistics Milodon Truck UBT Truck Massive Blasting Scaling Solutions Exportations CSR CDM projects Carbon footprints of explosives Blast Site Watch 4 MM tco 2 Vibration Control Source: The Company.. 7

8 Agenda Enaex and its history Enaex in the explosive market Financial Background

9 Management with a wide experience and background 2015 Acquisitions Market Leadership International Subsidiaries Important Customer Base Portfolio

10 1. Management with a wide experience and background Management with a wide Experience and Background In over 95 years Enaex has developed a solid and cohesive team, this team is also highly qualified with experience at all levels of the organization. Outstanding record of growth and consistent creation of value over time. Enaex management characterized by its high responsibility, made the company win the award of The most representative company of the mining industry in Chile in the last three consecutive years. In 2013, PwC awards Juan Andrés Errázuriz as the most innovative CEO of the year. Source: The Company. *Recognition developed by the Ministry of Mining, Imagine Chile of Corfo, The Great Industrial Suppliers of Mining Association (Aprimin) and Phribrand (a company dedicated to research and industrial marketing). Given at the Expomin framework. 10

11 2. Market Leadership Mining Market and Explosive Demand in Chile Continuous growth of explosive demand in Chile Solid investment backlog of mining projects in Chile 1,2 1,1 1,1 4,7 4,6 4,9 5,4 5,3 5,4 5,6 5,8 5,8 5,9 5,3 5,4 5,4 5,4 5,3 0,9 0,9 0,9 0,7 0,7 0,7 0,7 0,7 0,8 0,7 0,6 0,7 0,7 0,7 0,7 0,7 0,5 0,5 0,6 (Million USD, 2015) ,4x ,4x E-2024E 0,3 0,4 0,3 0,4 0,4 0,4 0,4 Chile is the main copper provider worldwide (Thousand tons, 2014) Chile E China Perú Estados Unidos Australia Otros Source: The Company, Cochilco, Foreign Investor Committee (CIE). 11

12 2. Market Leadership Market Leadership of EGAN in LATAM Ammonium Nitrate Growing Demand in The World (Million Tons) One of the main producers of Ammonium Nitrate Worldwide (Thousand Tons. 2014) 14,9 14,4 16,3 15,9 17,5 17,6 17,1 18,5 19,0 18,3 18,9 20,7 Orica Dyno Nobel Enaex Shaanxi Omnia Yara PCS Vale Wesfarmers Guangxi JSC Acron Maxam Uralchem # 1 in LATAM # 3 Worldwide EGAN Demand in LATAM (Thousand Tons) E Chile Perú Colombia Brasil México Argentina Otros Intake Capacity E EGAN = Explosive Grade Ammonium Nitrate. Source: The Company, CRU, Bloomberg. 12

13 2. Market Leadership Historical Revenue Stability and Regional Presence Quantity Evolution (Thousand tons) Sales by product LTM 2015* % 12% 1% 43% Bulk Explosives Ammonium Nitrate Packaged Explosives % Services and blasting accessories Other LTM 2015* sep-14 sep-15 Chile Other Sales by destiny LTM 2015* Sales Exportation Evolution LTM 2015* 10,4% 16,3% Peru 69% 31% Exportation Sales National Sales 9,9% 12,4% 36% Argentina Mexico Bolivia Brazil 15% Other Remark: Sales as of June 2015 only include two months of Britanite results. LTM 2015*= Last twelve months to September Source: The Company, SVS 13

14 3. Important customer base portfolio Long-term relation with regional customers Source: The Company, SVS. 14

15 4. International Subsidiaries 3 Important Global Presence HQ HQ HQ Source: The Company.

16 5. Acquisitions 2015 Britanite (Brazil) With over 50 years of experience in the explosive industry, Britanite is leader in the civil explosive and blasting service market in Brazil. Main Clients As of today, Britanite has a total of direct employees. Britanite also has offices in the states of Rio Grande so Sul, Santa Catarina, Sao Paulo, Rio de Janeiro, Minas Gerais, Pernambuco, Bahia, Gois y Para, reaching a great part of the brazilean territory. The Company has about 40% of market share in the Brazilian explosive market. Since 1995 Since 2006 Since 2009 Sales (Millons of Brazillian reais) Since 2011 Since Main Products EBITDA (Millons of Brazillian reais) Nitrocarbonitrate Brinel MF Detonator Strings Trigger device Cone Emulsions Cone Emulsions Source: The Company. 16

17 5. Acquisitions 2015 Davey Bickford (France) With over 150 years of experience, Davey Bickford is an international leader in Electronic Initiation Systems. Enaex is now a comprehensive company at its core business. David Bickford has a staff of 581 employees and owns a manufacturing plant in Hery, France. Electronic Devices Manufacturers Cohesive Companies of Mining Services Explosive manufacturers The plant has a capacity production of 45 million of pyrothecnic components and 4 million of electronic detonators per year. Their main products are: Initiation Systems, Electronic detonators, Electric detonators, Non-Electric detonators and Detonating cords. David Bickford is a prestigious international company known for its quality and years of experience providing its services to the explosive industry. Sales (Millions of euros) Leading Clients EBITDA (Millions of euros) 8 8 Since 2009 Since 2009 Since Since 2011 Since Source: The Company.. 17

18 Agenda Enaex and its history Enaex in the explosive market Financial Background

19 Cash Flow Stability and Solid Financial Performance Sales (Million USD) EBITDA (Million USD) LTM 2015* 471 sep sep LTM 2015* 115 sep sep Net Profit (Million USD) % 25% 20% 15% EBITDA Margin and Net Profit Margin 23,3% 23,8% 23,2% 23,9% 24,5% 23,5% 22,0% 13,7% 14,0% 14,5% 15,3% 14,1% 13,5% 13,6% 40 10% 20 5% LTM 2015* sep-14 sep-15 0% LTM 2015* sep-14 sep-15 LTM 2015*: Last twelve months to September Source: The Company, SVS. 19 EBITDA Margin Net Profit Margin

20 Strong Financial Ratios Financial Debt (Times) Total Equity (Thousand UF) ,20x ,48x 0,41x 0,32x 0,34x 0,68x sep sep-15 Financial Debt / Equity Covenant Total Equity Covenant Net Financial Debt / EBITDA (times) 1,64x Financial Expense Coverage (Times) 37,54x 1,30x 29,15x 32,19x 32,88x 30,45x 1,00x 0,74x 0,60x LTM 2015* LTM 2015* LTM 2015* = Las twelve months to September Source: The Company, SVS. 20

21 5. Sólida posición financiera Conservative Financial Profile Enaex has maintained over the years a solid credit profile and a good liquidity position. Solid debt structure and a healthy financial history. Stable cash flow generation in order to meet future debt obligations. Financial Ratios 2014 Sept-15 Current Liquidity 1,90x 1,40x Acid-Test Ratio 1,45x 1,00x Leverage 0,57x 0,98x Financial Debt 0,34x 0,68x Cash (million USD) 89,4 80,5 Liabilities / Equity (Times) Risk Rating 0,98x Market Agency Rating Date 0,71x 0,70x 0,55x 0,57x Local AA- (stable) AA- (stable) July 2015 September sep-15 Source: The Company, SVS. 21

22 Corporate Presentation September 2015 Results