Corporate Presentation September 2015 Results
Agenda Enaex and its history Enaex in the explosive market Financial Background
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) 232 234 321 312 409 575 641 648 646 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015* EBITDA (TM USD) 732 AA- (stable) 50 47 67 92 110 142 152 150 154 172 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015* Chemical Products Services International Subsidiaries Net Profit (TM USD) 57 70 77 79 91 94 99 103 28 29 LTM 2015* = Last twelve months to September 2015 Source: The Company, SVS. 3 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015*
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*) 2.380 1.648 (71%) 732 (31%) 373 201 (61%) 172 (46%) 135 32 (55%) 63 (47%) LTM 2015* = Last Twelve Months to September 2015 Source: The Company, SVS. 4 Ingresos EBITDA Utilidad Sales EBITDA Net Profit
Outstanding Growth History First Ammonium Nitrate plant is built with a production capacity of 100.000 tons per year. Chilean Explosive Company is founded. 1920 The Company is established as Enaex S.A. 1983 1989 1990 Sigdo Koppers takes control of Enaex, increasing its ownership interest to 50.01%. 1992 Increase capacity production of ammonium nitrate in Prillex, bringing the company's total capacity to 450.000 tons per year. 1999 A new capacity increase in the Prillex complex, which brings it to a total capacity of 850.000 tons of ammonium nitrate per year. 2010 2012 Enaex acquires one third of Britanite (IBQ). Enaex starts operating at the Peruvian market. 2014 2015 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
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
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
Agenda Enaex and its history Enaex in the explosive market Financial Background
Management with a wide experience and background 2015 Acquisitions Market Leadership International Subsidiaries Important Customer Base Portfolio
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
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) 77.290 54.200 1,4x 39.120 1,4x 1974-2009 2009-2014 2015E-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 5.750 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E China Perú Estados Unidos Australia 1.632 1.380 1.346 963 Otros 7.445 Source: The Company, Cochilco, Foreign Investor Committee (CIE). 11
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 0 500 1.000 1.500 2.000 2.500 EGAN Demand in LATAM (Thousand Tons) 606 580 310 334 300 325 260 284 259 220 61 69 96 111 2010 2011 2012 2013 2014 2015E Chile Perú Colombia Brasil México Argentina Otros Intake Capacity 2014 2015E EGAN = Explosive Grade Ammonium Nitrate. Source: The Company, CRU, Bloomberg. 12
2. Market Leadership Historical Revenue Stability and Regional Presence Quantity Evolution (Thousand tons) Sales by product LTM 2015* 834 853 838 864 280 260 241 251 917 281 638 180 690 210 13% 12% 1% 43% Bulk Explosives Ammonium Nitrate Packaged Explosives 554 593 597 613 636 458 480 31% Services and blasting accessories Other 2011 2012 2013 2014 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 2015. Source: The Company, SVS 13
3. Important customer base portfolio Long-term relation with regional customers 1922 1995 2011 1988 2000 2012 1986 2000 2012 1995 2009 2015 Source: The Company, SVS. 14
4. International Subsidiaries 3 Important Global Presence HQ HQ HQ Source: The Company.
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 1.064 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 2014 255 250 314 344 350 Main Products 2010 2011 2012 2013 2014 66 45 EBITDA (Millons of Brazillian reais) 33 40 52 Nitrocarbonitrate Brinel MF Detonator Strings Trigger device Cone Emulsions 2010 2011 2012 2013 2014 Cone Emulsions Source: The Company. 16
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) 51 54 71 65 72 Leading Clients 2010 2011 2012 2013 2014 EBITDA (Millions of euros) 8 8 Since 2009 Since 2009 Since 2009 6 1 3 Since 2011 Since 2012 2010 2011 2012 2013 2014 Source: The Company.. 17
Agenda Enaex and its history Enaex in the explosive market Financial Background
Cash Flow Stability and Solid Financial Performance Sales (Million USD) EBITDA (Million USD) 800 700 600 500 400 300 200 100 0 575 641 648 646 732 2011 2012 2013 2014 LTM 2015* 471 sep-14 557 sep-15 200 180 160 140 120 100 80 60 40 20 0 134 152 150 154 172 2011 2012 2013 2014 LTM 2015* 115 sep-14 133 sep-15 120 100 80 60 79 90 Net Profit (Million USD) 103 99 94 74 78 30% 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% 0 2011 2012 2013 2014 LTM 2015* sep-14 sep-15 0% 2011 2012 2013 2014 LTM 2015* sep-14 sep-15 LTM 2015*: Last twelve months to September 2015. Source: The Company, SVS. 19 EBITDA Margin Net Profit Margin
Strong Financial Ratios Financial Debt (Times) Total Equity (Thousand UF) 14.634 1,20x 10.203 10.046 11.483 13.151 0,48x 0,41x 0,32x 0,34x 0,68x 8.000 2011 2012 2013 2014 sep-15 2011 2012 2013 2014 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 2011 2012 2013 2014 LTM 2015* 2011 2012 2013 2014 LTM 2015* LTM 2015* = Las twelve months to September 2015. Source: The Company, SVS. 20
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 2015 2011 2012 2013 2014 sep-15 Source: The Company, SVS. 21
Corporate Presentation September 2015 Results