Asesores Financieros 4Q17 Results Presentation| March 2018 ... · Tronadura Venta, Arriendo y Servicio de Maquinaria de prestigiosas marcas (Presencia en Chile, Perú Brasil y Colombia)

Asesores Financieros

4Q17 Results Presentation| March 2018

Larrainvial 12 Annual Andean Conference Santiago

Agenda

▪Results 4Q17

02Main

Consolidated

figures

03SK’s subsidiaries

Highlights

04Financial

Exhibits

01General Background

▪3

121

286

Company Overview

Source: Company

Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of March 2017

(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 ComercialIngeniería y

ConstrucciónEnaex Magotteaux

60,62% 60,72% 97,75% 87,20%

Enaex Magotteaux SK Comercial

SKBergéPuerto

VentanasSK Godelius

50,01% 58,19% 40,00%

▪4

Corporate Governance

Ownership StructureBoard of Directors

Source: Santiago Stock Exchange. (1) Last 12 month

Corporate PresentationSigdo Koppers .

▪ Daily Average vol. traded (1): US$0.6 millions

▪ Market Cap: US$2.2 billions (As of Feb 28th 2018)

1. Juan Eduardo

Errázuriz Ossa

Chairman

2. Naoshi Matsumoto

Takahashi

Vicepresident

3. Horacio Pavez Aro

Director

4. Juan Andrés Fontaine

Talavera

Director

5. Canio Corbo Lioi

Independent Director

6. Jaime Vargas Serrano

Director

7. Norman Hansen Rosés

Director

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 & LOGISTICSMINING

DEVELPOMENT

1 3 42

1 2 3 4+ + +

BHP Billiton - Minera Escondida:

1 2 3 4+ + +Codelco – Andina:

1 2 3+ +

Agenda

▪Results 4Q17

02Main

Consolidated

figures


Highlights

04Financial

Exhibits


7

▪ Consolidated revenues amounted to US$2.20 billion, a similarlevel compared to Dic-16.

✓ Magotteaux sales rose 6%, inline with a higher levelof physical sales (+4%).

✓ Lower sales at SK Comercial, mainly due to adecrease in Chile and Perú.

▪ Consolidated EBITDA amounted to US$286 millions (-2%)

✓ Higher level of EBITDA in Puerto Ventanas bygreater transfer of cargo.

▪ Net profit totaled US$83 millions (-2%), a decrease explainedby:

✓ Lower performance of the Engineering andConstruction business due to the low level of activityand lower yields than expected in some works

✓ The negative impact of the increase in raw materials(ferrochrome and scrap) in Magotteaux

✓ Lower level of sales in the machinery distributionbusiness in Chile.

▪ Sigdo Koppers is executing plans of reorganization and costefficiency in its different subsidiaries

Highlights - December 2017▪

▪ Sigdo Koppers has a good consolidated Cash liquidity ofUS$311 millions and a conservative level of consolidated debt

▪ The net financial debt-to-EBITDA ratio is 2.62x and if we addconsortiums net profit is 2.54x

(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.

Results 4Q17

Dic-16 Dic-17 Var.

Sales 2.191.918 2.204.618 0,6%

EBITDA (1) 291.018 285.930 -1,7%

EBITDA Margin 13,3% 13,0%

EBITDA Pro Forma (2) 336.471 318.038 -5,5%

Profi t (Loss ) 125.764 127.081 1,0%

Sigdo Koppers Net Profit (non

recurrent)85.009 83.386 -1,9%

Dec-16 Dic-17 Var.

Total Assets 3.546.436 3.628.916 2,3%

Total Equity (3) 1.680.342 1.767.172 5,2%

Net Debt 811.317 750.573 -7,5%

Net Debt / EBITDA 2,79 2,62

ROE 255,41% 254,37%

ROCE 6,70% 6,26%

Consolidated Income StatementFigures in ThUS$

Agenda

▪Results 4Q17

02Main

Consolidated

figures


Highlights

04Financial

Exhibits


9

▪…

OPERACIÓNVENTA

Y LOGÍSTICA▪ DESARROLLO PROCESO

▪Resultados Dic-16

Main Subsidaries

60,43% 60,72% 87,2% 97,75%40,0% 50,01%

51,82%

53 años de experiencia en más de 300 proyectos de gran envergadura

(Presencia en Chile y Perú)

Producción de Nitrato de Amonio y Servicios de Tronadura

Venta, Arriendo y Servicio de Maquinaria de prestigiosas marcas

(Presencia en Chile, Perú Brasil y Colombia)

Comercialización de automóviles

(Presencia en Chile, Perú Argentina y Colombia)

Producción de Bolas de Molienda y Piezas de desgaste (casting)

(Presencia en 11 países)

Puerto de Carga a granel y combustible.

Dueña de 52% Fepasa (tpte. ferroviario)

Cadena de valor de la minería e industria

Results 4Q17

Ingeniería y Construcción SK


10

Results 4Q17

▪ Lower level of investments in Chile and Peru evidenced in recent yearshas affected the performance of the company

▪ Sale of fixed assets with profit of $ 5,051 million

▪ ICSK Brasil➢ Construction of electric transmission lines in Brazil for State Grid through a consortium with Alumini and

Fujian has already started.

▪ Backlog➢ Projects awarded for US$519 million (Jan-Dec-2017): Main transportation system in Chuquicamata

subterráneo (Codelco), transfer project in Codelco Andina (Codelco), modification of tailings thickeners

(Minera Escondida), Talara refinery modernization project ( PetroPerú), refurbishment of ball mills

(Collahuasi) and the disassembly and assembly of transformers (Minera Escondida)

➢ Main projects in progress: Repowering of ball mills / Collahuasi (70% advance), Projects Vulnerability of

Gases in Cellulose Plants / Arauco (95% advance) and tunnels dress Chuquicamata subterráneo / Codelco

(95% advance)

Dic-16 Dic-17 Var. 4Q16 4Q17 Var.

MM$ MM$ % MM$ MM$ %

Revenue 308.230 290.598 -5,7% 73.995 70.055 -5,3%

EBITDA -260 10.100 3988,8% 2.554 11.051 332,7%

EBITDA Margin -0,1% 3,5% 3,5% 15,8%

Pro-Forma EBITDA(*) 15.389 13.754 -10,6% 5.247 10.859 106,9%

Pro-Forma EBITDA Margin 5,0% 4,7% 7,1% 15,5%

Control ler's net profi t 8.592 5.103 -40,6% 1.627 6.379 292,0%

Horas

(Miles)

Horas

(Miles) Var.

Horas

(Miles)

Horas

(Miles) Var.

Total man-hours executed 17.346 18.252 5,2% 4.969 6.077 22,3%

Ingeniería y Construcción Sigdo

Koppers

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

Puerto Ventanas

Puerto Ventanas

▪ Cargo Transfer (+4%)

➢ Higher Cooper Concentrate transfers (+3%) and grain(+99%).

▪ Port business income reach US$65 million(+12%)

▪ Investments

➢ New warehouse for Cu Concentrate up and running.

➢ Upgrade Site No.3: Ramp up period

11

▪Resultados Dic-16Results 4Q17

Fepasa

▪ Mobilized load➢ Cargo movement of Cu Concentrate (+33%) due to

new contract with Codelco Teniente.

➢ Movement of wood pulp cargo (-26%), impactedby the collapse of the Toltén bridge on August 18,2016 (lower volumes and over costs). Thissituation will continue until the repair of thebridge by EFE.

➢ Higher EBITDA (+81%) due to a significantdecrease in direct operational costs

➢ Start in cargo transfer from Anglo American by rail,transport of the copper concentrate from the LasTórtolas plant (Los Andes) to Puerto Ventanas.


ThUS$ ThUS$ % ThUS$ ThUS$ %

Revenue 132.398 136.773 3,3% 35.080 35.356 0,8%

EBITDA 34.222 40.403 18,1% 9.416 10.167 8,0%

EBITDA Margin 25,8% 29,5% 26,8% 28,8%

Control ler's net profi t 19.457 20.063 3,1% 5.041 4.636 -8,0%

PVSA - Tons transferred 5.216.118 5.412.814 3,8% 1.394.214 1.253.773 -10,1%

Fepasa - Th Ton-Km 1.138.959 948.597 -16,7% 251.818 231.881 -7,9%

Puerto Ventanas

Consolidated

12

Enaex

▪ Chemical business (Amonium Nitrate)

➢ Lower AN sales associated with lower consumption in Chile, together withlower consumption of certain deposits in the region and decreases in thePeruvian market.

➢ AN exports dropped by 2%.

▪ Rock Blasting Services

➢ Chile: more complex scenario with lower volumes in some clients (-13%v/s 4Q16).

➢ Brazil / Britanite: Slight economic recovery in Brazil and new awardedcontracts, particularly in mining, has increased sales volume (+23%) andEBITDA (+141%).

▪ Davey Bickford:

➢ Higher revenues (+12%) explained mainly by a recovery in the Americanand Australian market.

➢ Growth in EBITDA (+ 103%) in line with higher revenues and greateroperational efficiency


Physical sales evolution (Thu Tons)

Results 4Q17



Revenue 691.731 705.173 1,9% 174.979 191.445 9,4%

EBITDA 165.259 164.373 -0,5% 44.567 44.132 -1,0%

EBITDA Margin 23,9% 23,3% 25,5% 23,1%

Control ler's net profi t 85.337 80.184 -6,0% 23.711 21.474 -9,4%

Enaex

▪ Volume➢ Grinding Balls Business: Higher volumes of HiCr, particularly in the mining

market in North America (+5%).

➢ Casting business: higher volumes, particularly in aggregates (+6%) andmining (+32%).

▪ Quick increase in the price of FeCr and scrap at an international levelthat has not yet been completely transferred to customers, affectingthe margins both grinding balls and casting.

▪ US$16 million loss in net result due to this effect

▪ Reorganization Plan➢ SG&A expenses decreased 6% compared to Dic-16 (-8% vs. Dic-15)

➢ New provisions affected the EBITDA of 4Q17. Recurring EBITDA reachedUS$ 51 million


Magotteaux

13

Results 4Q17


MUS$ MUS$ % MUS$ MUS$ %

Revenue 628.520 667.376 6,2% 156.371 169.182 8,2%

EBITDA 63.362 43.323 -31,6% 11.962 6.556 -45,2%

EBITDA Margin 10,1% 6,5% 7,6% 3,9%

Control ler's net profi t 22.936 13.627 -40,6% 4.576 6.679 45,9%

Magotteaux Group

Dic-16 Dic-17

Mil l Bal ls 306.993 319.467 4,1%

Casting 47.254 49.183 4,1%

Total 354.248 368.650 4,1%

Magotteaux

Group

Var.

%

14

SK Comercial

▪ Machinery Distribution Business➢ Machinery sales in Chile remain depressed (-12% units vs. Dic-16).

➢ Mainly the industrial machinery market (-28% units vs. Dic-16).

▪ Machinery Rental Business➢ Fleet: US$152 million (-16% vs. Dec-16)

➢ Rental markets in Chile and Peru remain stable.

➢ SKRental continues in a fleet reduction strategy in Chile and Peru to fit the sizeof the market and lower investment cycle.

▪ Corporate reorganization➢ Continuing a project to reduce costs and synergies between different

subsidiaries of SKC, Dic-17 reports US$2 million higher costs for this concept.

➢ Synergy projects in warehouses and workshops.

➢ Rationalisation of branches and maximizing the use of offices andoperations in Lampa (headquarters).

▪Resultados Dic-16 Results 4Q17



Revenue 299.837 254.266 -15,2% 73.004 63.591 -12,9%

Distribution Business 194.380 158.173 -18,6% 49.442 41.575 -15,9%

Rental Business 111.827 100.958 -9,7% 24.985 23.122 -7,5%

Consolidation adjust -6.370 -4.865 0,0% -1.423 -1.107 0,0%

EBITDA 27.046 23.864 -11,8% 5.341 6.589 23,4%

EBITDA Margin 9,0% 9,4% 7,3% 10,4%

Control ler's net profi t -16.574 -7.855 52,6% -8.481 -593 93,0%

SK Comercial


MM$ MM$ % MM$ MM$ %

Control ler's net profit 15.045 17.393 15,6% 5.107 3.721 -27,1%

SK Inversiones

Automotrices

SK Inversiones Automotrices

▪ SKIA had profits of MM$17,393 Chilean Pesos(US$27 millions) (+16%).

✓ Result explained by higher margins of SKBergé inChilean market (Positive effect of exchange rate)

✓ Higher sales volume in Chile, Peru and Colombia

▪ SKBergé accounted sales for 78,197 units, anincrease of 15% compared to September 2016.

✓ Higher level of sales in Chile: 42,919 units(+30%).

✓ Higher sales performance abroad: 35,278 units(+ 1%).

▪ In Chile, ANAC recorded sales of 360,900 units in4Q17 (+ 18%).

▪ High growth potential in countries such as Peruand Colombia


15

Argentina

Chile

15

Perú

Colombia

Agenda

▪Results 4Q17

02Main

Consolidated

figures


Highlights

04Financial

Exhibits


Sigdo Koppers Income Statement

17



Sales 2.191.918 2.204.618 0,6% 551.808 569.049 3,1%

Sales expenses -1.706.607 -1.722.298 -0,9% -427.658 -435.175 -1,8%

Gross income 485.311 482.320 -0,6% 124.150 133.874 7,8%

Other operating income 21.190 14.932 -29,5% 3.898 772 -80,2%

Distribution costs -78.531 -69.782 11,1% -15.227 -17.325 -13,8%

Administrative expenses -222.712 -221.519 0,5% -53.132 -57.691 -8,6%

Other operating expenses -37.354 -43.058 -15,3% -12.761 -12.072 5,4%

Operating income 167.904 162.893 -3,0% 46.928 47.558 1,3%

EBITDA 291.018 285.930 -1,7% 79.948 86.278 7,9%

% EBITDA Margin 13,3% 13,0% 14,5% 15,2%

Interest income 4.410 5.731 30,0% 1.363 1.796 31,8%

Interest expenses -54.413 -53.754 1,2% -13.644 -13.078 4,1%

Related companies income 45.453 32.228 -29,1% 11.729 5.285 -54,9%

Exchange differentials -1.459 3.048 308,9% -2.408 -152 93,7%

Price - level restatement -1.236 -2.134 -72,7% 248 -1.021 -511,7%

Other income (losses) 4.482 907 -79,8% 4.437 3.310 -25,4%

Gain (losses) between book value and fair

value (financial assets) - - - -

Income before taxes 165.141 148.919 -9,8% 48.653 43.698 -10,2%

Income tax -39.377 -21.838 44,5% -12.433 3.208 125,8%

Income 125.764 127.081 1,0% 36.220 46.906 29,5%

Gain (losses) from uncontinnued

operations - - - -

Net income 125.764 127.081 1,0% 36.220 46.906 29,5%

Income attributable to Sigdo Koppers 85.009 83.386 -1,9% 23.939 31.598 32,0%

Income attributable to non-controlling

interests40.755 43.695 7,2% 12.282 15.308 24,6%

Sigdo Koppers

Consolidated Income Statement

Figures in ThUS$ Cifras en MUS$


Services 587.841 584.791 -0,5% 146.257 146.070 -0,1%

Ingeniería y Construcción SK 455.443 448.018 -1,6% 111.177 110.714 -0,4%

Puerto Ventanas 132.398 136.773 3,3% 35.080 35.356 0,8%

Industrial 1.323.386 1.375.338 3,9% 332.099 361.285 8,8%

Enaex 691.731 705.173 1,9% 174.979 191.445 9,4%

Magotteaux (1) 628.520 667.376 6,2% 156.371 169.182 8,2%

SK Inv. Petroquímicas 3.135 2.789 -11,0% 749 658 -12,1%

Commercial & Automotive 299.837 254.266 -15,2% 73.004 63.591 -12,9%

SK Comercial 299.837 254.266 -15,2% 73.004 63.591 -12,9%

SKIA (2) - - - - - -

Parent company & adjustment(3) -19.773 -9.777 50,6% 448 -1.897 -522,9%

Consolidated Sales 2.191.291 2.204.618 0,6% 551.808 569.049 3,1%

Figures in ThUS$Revenue

Business Areas

Figures in ThUS$

Revenue Sigdo Koppers

18


(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

Area Servicios

Area Industrial

Area Comercial

y Automotriz

Results 4Q17

Revenue by country (incl. SKBergé)▪D

19


▪ December 2016

▪December 2017

Results 4Q17

Chile Perú Colombia Brasil Asia Norte America Europa Otros Países

MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$

Área Servicios 86,7% 13,3% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Ingeniería y Construcción SK 82,9% 17,1% - - - - - -

Puerto Ventanas 100% - - - - - - -

Área Industrial 41,3% 1,2% 0,3% 10,8% 9,5% 12,5% 20,9% 3,4%

Enaex 67,6% 2,2% 0,7% 12,7% - - 14,2% 2,6%

Magotteaux 11,9% - - 8,9% 20,0% 26,4% 28,4% 4,4%

SK Inv. Petroquímicas 100% - - - - - - -

Área Comercial y Automotriz 57,4% 31,8% 6,4% 0,3% 0,0% 0,0% 0,0% 4,1%

SK Comercial 83,3% 13,3% 1,8% 1,6% - - - -

SKIA 51,6% 36,0% 7,4% - - - - 5,0%

Ventas Empresas SK 56,2% 17,3% 3,1% 4,2% 3,5% 4,7% 7,8% 3,2%

Ventas

Áreas de Negocios

Chile Perú Colombia Brasil Asia Norte America Europa Otros Países

MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$ MUS$

Área Servicios 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% - - - - - - -

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


Services 32.710 55.975 71,1% 13.167 27.192 106,5%

Ingeniería y Construcción SK -1.802 15.572 964,3% 3.751 17.025 353,9%

Puerto Ventanas 34.512 40.403 17,1% 9.416 10.167 8,0%

Industrial 230.611 210.493 -8,7% 56.940 51.006 -10,4%

Enaex 165.479 164.373 -0,7% 44.567 44.132 -1,0%

Magotteaux (1) 63.362 43.323 -31,6% 11.962 6.556 -45,2%

SK Inv. Petroquímicas 1.770 2.797 58,0% 411 318 -22,6%

Commercial & Automotive 27.921 23.772 -14,9% 5.323 6.556 23,2%

SK Comercial 28.017 23.864 -14,8% 5.341 6.589 23,4%

SKIA (3) -96 -92 4,2% -18 -33 -83,3%

Parent company & adjustment -224 -4.310 -1822,0% 4.518 1.524 -66,3%

Consolidated EBITDA 291.018 285.930 -1,7% 79.948 86.278 7,9%

EBITDA Margin 13,3% 13,0% 14,5% 15,2%

Consolidated pro-forma EBITDA 336.471 318.038 -5,5% 91.677 91.563 -0,1%

Figures in ThUS$EBITDA

Business Areas

Figures in ThUS$

EBITDA Sigdo Koppers

20


(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.

Area Servicios

Area Industrial

Area Comercial

y Automotriz

Results 4Q17

Pro-Forma EBITDA

decreased a 11% in CLP

due to lower level of

activity in the mining

sector (BSK) and Works

with problems of

recovery of "claims"

Lower performance of

rental business (-5%)

Lower physical sales

and lower operating

margin because of

plant maintenance

Rapid increase of raw material affected

the margins in business of grinding

balls and casting.

21

EBITDA Pro-FormaBy business área: Dic-16 v/s Dic-17 ( K US$ )

▪Results 4Q17

-5.5%

Higher margins and

volumes

Higher operational

profit on PVSA

(+3 MUS$) and in

Fepasa

(+3 MMUS$)

Dic-16 Dic-17 Var. Dic-17 Dic-16 Dic-17 Var.

Services 32.152 27.930 -13,1% 17.658 15.881 -10,1%

Ingeniería y Construcción SK 12.695 7.867 -38,0% 60,43% 7.672 5.019 -34,6%

Puerto Ventanas 19.457 20.063 3,1% 50,01% 9.986 10.862 8,8%

Industrial 109.480 95.736 -12,6% 70.344 60.796 -13,6%

Enaex 85.337 80.184 -6,0% 60,72% 51.818 48.689 -6,0%

Magotteaux (1) 22.936 13.627 -40,6% 95,00% 17.526 10.512 -40,0%

SK Inv. Petroquímicas (2) 1.207 1.925 59,5% 74,59% 1.000 1.595 59,5%

Commercial & Automotive 5.689 18.976 233,6% 8.015 19.972 149,2%

SK Comercial -16.574 -7.855 52,6% 87,20% -14.216 -6.846 51,8%

SKIA 22.263 26.831 20,5% 99,99% 22.231 26.818 20,6%

SK companies profit 147.321 142.641 -3,2% 96.017 96.649 0,7%

Parent company & adjusments -11.008 -13.263

Total consolidated profit 85.009 83.386 -1,9%

Total Companies Attributable to parent companyNet profit

Business Areas

% SKFigures in ThUS$ Figures in ThUS$

Sigdo Koppers’ Net Profit

22


(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

Industrial

Commercial &

Automobile

Results 4Q17

Sigdo Koppers Balance sheet

23


Dec-16 Dic-17 Var.

Current Assets

Cash and cash equivalent 299.606 310.805 3,7%

Account and sales receivables 552.061 578.018 4,7%

Inventories 272.910 296.385 8,6%

Other current assets 37.882 31.997 -15,5%

Total current assets 1.162.459 1.217.205 4,7%

Long-term assets

Property, plants & equipment 1.188.101 1.185.268 -0,2%

Other long-term assets 1.195.876 1.226.443 2,6%

Total long-term assets 2.383.977 2.411.711 1,2%

Total assets 3.546.436 3.628.916 2,3%

Current liabilities

Short-term financial debt 297.552 245.709 -17,4%

Accounts payable 299.555 328.496 9,7%

Other current l iabilities 131.180 169.564 29,3%

Total current liabilities 728.287 743.769 2,1%

Long-term liabilities

Long-term financial debt 813.371 815.669 0,3%

Other long-term liabilities 324.436 302.306 -6,8%

Total long-term liabilities 1.137.807 1.117.975 -1,7%

Total liabilities 1.866.094 1.861.744 -0,2%

Equity

Attributable to the controller 1.268.867 1.331.192 4,9%

Attributable to non-controlling interests 411.475 435.980 6,0%

Total equity 1.680.342 1.767.172 5,2%

Total liabilities and equity 3.546.436 3.628.916 2,3%

Consolidated Balance SheetFigures in ThUS$

Indicators Dec-16 Dic-17

Net Financial Debt 811.317 750.573

Working Capital 525.416 545.907

Working Capital Days 88 90

Days of Consolidated Inventory 58 63

Accounts Receivable (Days) 92 96

Accounts Payable Days 64 70

Net Financial Debt/ EBITDAFinancial Debt

24

Services

Industrial

Commercial &

Automobile

Parent Comp.

US$ 1,061 millions – Consolidated

US$ 751 millions – Net Financial Debt

Current 23%

Non Current 77%

Cash (US$ millions) Key financial Indicators

Conservative financial profile


▪ Consolidated Leverage: 1.05x

▪ Financial Net Leverage**: 0.41x

▪ Net Financial Debt/EBITDA: 2.62x▪ ND/(EBITDA+Consortium): 2.54x

▪ Rating: ✓ A+ Fitch-Ratings✓ AA- ICR

* Including CHBB, SK Inv. Automotrices S.A. y SK Internacional S.A.

** Corporate Bonds Covenant < 1,2x

Results 4Q17

2,62x

2,54x

Cash Flow of Sigdo Koppers

25


Dic-16 Dic-17 Var.

Operating cash flow 315.715 339.201 7,4%

Investment cash flow -111.557 -111.910 -0,3%

Capex -128.073 -100.715 21,4%

Fixed assets sales 2.393 3.051 27,5%

Other 14.123 -14.246 -200,9%

Finance cash flow -165.541 -226.956 -37,1%

Net variation in financial l iabilities -62.412 -109.761 -76%

Interest -44.214 -39.825 9,9%

Dividends -83.611 -65.941 21,1%

Capital increased 169 0 0,0%

Other 24.527 -11.429 -146,6%

Total net cash flow 38.617 335 -99,1%

Effect of exchange rate changes 2.282 6.340 177,8%

Cash and cash equivalent 281.395 288.070 2,4%

Consolidated

Cash Flow

Figures in ThUS$

CAPEX

26

▪

Major investments in Fixed Assets:

▪ Puerto Ventanas:

✓ Ramp up of copper concentrate warehouse of

46,000 Tons capacity

✓ Upgrade of Site #3 (total investment US$32

million, beginning of operations during Dec-17)

▪ Enaex:

✓ Overhaul and Upgrade in Prillex plant (Panna 3)

(US$ 2.5 million)

✓ Construction plant in Los Bronces (US$ 2.6 million)

✓ Construction of a modular emulsion plant in the

USA (US$ 1.6 million)

▪ SK Comercial: Defleeting (divestment) of fleet of SKRental.

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

Results 4Q17

Dic-16 Dic-17

MUS$ MUS$

Área Servicios 61.249 39.953

Ingeniería y Construcción SK 15.195 889

Puerto Ventanas 46.054 39.064

Área Industrial 70.156 52.009

Enaex 41.607 36.734

Magotteaux 28.549 15.275

SK Inv. Petroquímicas - -

Área Comercial y Automotriz -60.748 -46.537

SK Comercial (1) -60.748 -46.537

SKIA - -

Capex Empresas SK 70.657 45.425

Capex

Áreas de Negocios

▪Asesores Financieros

Results Presentation

Documents

Asesores Financieros 4Q17 Results Presentation| March 2018 ... · Tronadura Venta, Arriendo y Servicio de Maquinaria de prestigiosas marcas (Presencia en Chile, Perú Brasil y Colombia)