Agenda 01 03 02 General Financials SKs subsidiaries - PowerPoint PPT Presentation

Asesores Financieros 4Q15 Results Presentation| March 2016 Larrainvial 10th Annual Andean Conference Santiago

 Agenda 01 03 02 General Financials SK’s subsidiaries Background Highlights

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) SK Godelius CHBB SKBergé 286 (1) Ventanas 50.01% 58.19% 74.59% 40.00% 121 (2) Source: Company Note: The percents correspond to the ownership of Sigdo Koppers over its subsidiaries, as of June 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  5,41% Stock Brokers  6,26% Mutual Funds and other institutional investors  9,33% Pension Funds  and Insurance companies  2,58% Others  Ownership structure as of Dec-15 1. Juan Eduardo 2. Naoshi Matsumoto Errázuriz Ossa Takahashi Chairman Vicepresident 3. Juan Andrés Fontaine 4. Horacio Pavez García  Daily Average vol. traded (1) : US$0.3 millions Talavera Director Director 5. Norman Hansen Rosés 6. Canio Corbo Lioi  Market Cap: US$1.3 billions (As of Feb 29th 2016) Director Independent Director 7. Jaime Vargas Serrano Director  1  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 Dec-15 Highlights as of December 2015 Figures in ThUS$  The consolidated revenues droped in Consolidated Income Statement Dic-14 Dic-15 Var. US$85 millions:  Sales 2.499.612 2.414.522 -3,4% CLP/USD exchange rate impacted the accounting of ICSK, EBITDA (1) 365.970 378.593 3,4% SK Rental and Fepasa. EBITDA Margin 14,6% 15,7%  The revenues of Magotteaux EBITDA Pro Forma (2) 427.441 433.566 1,4% and Enaex also fell because the prices of raw materials dropped Profit (Loss) 211.284 203.702 -3,6%  Significant increase in the EBITDA margin, Sigdo Koppers Net Profit (non 134.668 134.987 0,2% from 14.3% to 15.7%, a reflection of the recurrent) cost control efforts in several of the companies.  The net profit totaled US$99 million, an Var. Dic-14 Dic-15 increase of 0.4% compared to the close of Total Assets 3.380.313 3.475.023 2,8% the previous year. Total Equity (3) -1,8% 1.602.489 1.573.746  SK distributed dividends of CLP$36 per Deuda Financiera Neta 787.549 875.630 11,2% share in 2015, which meant a dividend yield of 4.3% at the close of 2015. Deuda Financiera Neta/ EBITDA 2,15 2,31 ROE 11,23% 11,36%  Sigdo Koppers has a good consolidated cash liquidity of US$245 million and a ROCE 9,39% 9,42% conservative level of consolidated debt.  The net financial debt-to-EBITDA ratio is 2.31x (1) EBITDA = Ganancia Bruta + Otros Ingresos por Función – Costos de Distribución - Gastos de Administración – Otros Gastos por Función + Gastos de Depreciación y Amortización 6 (3) EBITDA Pro-forma: considera las utilidades de empresas relacionadas que no consolidan. 6

 Results as of Dec-15 Agenda 01 03 02 General Financial SK’s subsidiaries Background Highlights Exhibits 7

 Results as of Dec-15 Ingeniería y Construcción SK Ingeniería y Construcción Sigdo Dic-14 Dic-15 Var. 4Q14 4Q15 Var. Koppers MM$ MM$ % MM$ MM$ % Revenue 316.509 319.373 0,9% 59.938 97.587 62,8% EBITDA 22.932 18.915 -17,5% 4.684 6.428 37,2% EBITDA Margin 7,2% 5,9% 7,8% 6,6% EBITDA Pro-Forma (*) 40.064 36.341 -9,3% 8.312 12.490 50,3% Pro-Forma EBITDA Margin 12,7% 11,4% 13,9% 12,8% Controller's net profit 20.196 20.555 1,8% 2.787 7.095 154,6% Horas Horas Horas Horas Var. Var. (Miles) (Miles) (Miles) (Miles) Total man-hours executed 27.166 22.458 -17,3% 4.240 4.753 12,1% (*) EBITDA Pro-Forma: EBITDA + Related company profit  Consolidated revenue MM$ 319,373 (US $ 488 million) (+ 1%)  Man Hours executed 23 million (-17%)  Pro-Forma EBITDA of $ 36,341 million (-9%)  Pro-Forma EBITDA margin reached 11%  ICSK is considering participating in the market for transmission lines in Brazil in partnership with Alumini  At 4T15, the company has a backlog of US$ 513 million, mainly in mining and power projects to be implemented between 2016- 2018, in Chile (85%),Peru (8%) and Brazil (7% ). (*) EBITDA Pro-Forma: EBITDA + Related company profit 8 8

 Results as of Dec-15 Puerto Ventanas Dic-14 Dic-15 Var. 4Q14 4Q15 Var. Puerto Ventanas Consolidated MUS$ MUS$ % MUS$ MUS$ % Revenue 142.427 131.832 -7,4% 36.590 33.238 -9,2% EBITDA 46.770 43.318 -7,4% 13.124 10.670 -18,7% EBITDA Margin 32,8% 32,9% 35,9% 32,1% Controller's net profit 25.282 24.896 7.310 6.127 -1,5% -16,2% PVSA - Tons transferred 5.937.708 5.928.225 -0,2% 1.418.520 1.477.672 4,2% Fepasa - Th Ton-Km 1.256.435 1.212.401 -3,5% 330.670 305.042 -7,8% Puerto Ventanas Fepasa  5.928.225 Tons (-0,2%) transfered as of Dec-15  Fepasa carried a total of 1.212.401 Ktons-Km  Coal (+6%) of cargo 4Q15 (-4%)   Mining cargo (21% of total transported): -0,4 Clinker (+25%) in Ton/Km  Cooper Concentrate (-5%)  Forestry cargo (pulp): (54% of total  Same revenues levels from the Port Business transported): -2,6% in Ton/Km compared to Dec-14  Fepasa consolidated EBITDA reached US$9  Port business ´ EBITDA increased 3% due to higher millions (-21% in pesos) operating efficiency and more favorable exchange  EBITDA Margin: 14% rate.  Fepasa signed a contract with Anglo American to carry  EBITDA Margin: 56% copper concentrate via railroad from Las Tortolas Plant  PVSA Holds a market share of 61% in solid bulk (Los Andes) to Puerto Ventanas, beginning operations cargo transfer as of December 2015 in 2017. 9 9

 Results as of Dec-15 Enaex Dic-14 Dic-15 Var. 4Q14 4Q15 Var. Sep-14 Sep-15 Var. 3Q14 3Q15 Var. Enaex Enaex MUS$ MUS$ % MUS$ MUS$ % MUS$ MUS$ % MUS$ MUS$ % Revenue 645.950 761.766 17,9% 175.098 205.163 17,2% Revenue 470.852 556.603 18,2% 167.729 209.959 25,2% EBITDA 154.126 181.056 17,5% 39.187 48.402 23,5% EBITDA 114.939 132.654 15,4% 36.878 51.389 39,3% EBITDA Margin 23,9% 23,8% 22,4% 23,6% EBITDA Margin 24,4% 23,8% 22,0% 24,5% Controller's net profit 99.148 104.582 25.045 26.366 Controller's net profit 74.103 78.216 5,5% 22.675 28.440 5,3% 5,6% 25,4%  Enaex recorded revenues of US$762 million (+18%)  Physical sales totaled 937 Ktons (+8%)  Increase of 19% in physical sales in the rock blasting services business compared to 2014.  The average price of ammonia reach US$458/ton (-17%)  The consolidated EBITDA of Enaex was US$181 million (+18%) Physical Sales Evolution (Thu tons)  Enaex recorded a net profit of US$105 million (+6%)  Enaex agreed to buy Davey Bickford, a global manufacturer and distributor of electronic detonators for the explosives industry at US$ 106 million (for 91% of shares).  Enaex bought 66,7% share of Xion Participacoes, for US$85 million. Enaex now controls 100% of the Brazilian company IBQ (Britanite). 10 10

 Results as of Dec-15 Magotteaux Dic-14 Dic-15 Var. 4Q14 4Q15 Var. Magotteaux Group (1) MUS$ MUS$ % MUS$ MUS$ % Revenue 776.513 692.284 -10,8% 189.224 162.138 -14,3% EBITDA 69.009 80.415 16,5% 18.574 21.553 16,0% EBITDA Margin 8,9% 11,6% 9,8% 13,3% Controller's net profit 26.364 29.396 7.246 7.786 11,5% 7,5%  Consolidated income totaled US$692 million as of 4Q15 (-11%) Dic-14 Dic-15 Magotteaux Group Var. (1) %  Physical sales totaled 372 Ktons Mill Balls 326.867 321.722 -1,6% Bolas de Molienda 47.717 50.138 5,1%  321,722 tons of mill balls (-2%) (81% in mining) Casting 374.585 371.860 -0,7%  50,138 tons of castings (53% in cement, 30% in agregates) (1) Consolidated figures of Magotteaux & SK Sabo Chile S.A.  EBITDA amounted to US$80 millions as of Dec-15 (+17%)  Better performance and margins in the business lines of casting and grinding balls  Lower SG&A – reorganization process  The company earned a net profit of US$29 millions as of 4Q15. 11 11