Result Presentation December 2018 Results 4Q18 Agenda 03 04 02 - PowerPoint PPT Presentation

▪ Asesores Financieros Result Presentation December 2018

▪ Results 4Q18 Agenda 03 04 02 01 Financial Q&A Main General Consolidated Background Exhibits figures

▪ Results 4Q18 Highlights - December 2018 ▪ Consolidated revenues increased 5% compared to dec-17: Figures in ThUS$ Consolidated Income Statement ✓ Var. Higher income in Magotteaux (+6%) aligned with Dec-17 Dec-18 higher lever of physical sales (+2%). Sales 2.204.618 2.329.917 5,7% EBITDA (1) 285.930 313.323 9,6% ✓ Higher revenues in Enaex (+11%) mainly explained EBITDA Margin 13,0% 13,4% by a higher level of sales of initiation systems EBITDA Pro Forma (2) 318.158 343.844 8,1% (+23%). Profit (Loss) 127.081 128.269 0,9% ✓ Higher revenues in PVSA (+18%) mainly by higher Sigdo Koppers Net Profit (non 83.387 86.106 3,3% cargo transference in the railway business (+17%). recurrent) ▪ Consolidated EBITDA amounted to US$313 million (+10%) Dec-17 Dec-18 Var. ✓ Best operating result in Magotteaux and PVSA. Total Assets 3.635.093 3.676.849 1,1% ✓ Total Equity (3) Better performance in the rental and distribution 1.760.468 1.719.739 -2,3% business of machinery of SK Comercial. Net Debt 750.573 827.156 10,2% Net Debt / EBITDA ▪ Net profit totaled US$86 million (+3%) : 2,63 2,64 ROE 6,30% 6,58% ✓ Increase of 60% in Magotteaux Net Profit, higher ROCE 5,80% 6,99% margin and higher physical sales. ✓ Higher level of sales in the machinery distribution business in Chile. ✓ Losses recorded in Ingeniería y Construcción Sigdo Koppers, which originate from the work at the Talara refinery in Peru. ▪ Good liquidity and level of leverage ✓ Consolidated Cash US$287 million ✓ Net Financial Debt/EBITDA is 2,64x (1) EBITDA = Gross Profit+ Other income by function – Distribution Cost - Administration Expenses – Other Expenses by function + Depreciation and Amortizacion Expenses 3 (3) EBITDA Pro-forma: Considers the profits of related companies that do not consolidate.

▪ Results 4Q18 Agenda 03 04 02 01 Financial Q&A Main General Consolidated Background Exhibits figures

▪ Results 4Q18 Main Subsidaries 60,62% 60,72% 40,0% 87,20% 98,07% 50,01% ▪ … 51,82% SALE ▪ DEVELOPMENT OPERATION PROCESS AND LOGISTIC 53 years of Bulk cargo port and Production of Sale, Leasing and Production of Automotive experience in more fuel. Ammonium Nitrate Service of Grinding Balls and commercialization tan 300 large-scale and Blasting machinery of Casting Owner of 52% Fepasa projects Services prestigious brands (railway) (Presence in Chile and Peru) (Presence in Chile, Peru (Presence in Chile, Peru (Presence in 11 countries) Brazil and Colombia) Argentina and Colombia) Mining and industry value chain 5

▪ Results 4Q18 Ingeniería y Construcción SK Dec-17 Dec-18 Var. 4Q17 4Q18 Var. Ingeniería y Construcción Sigdo Koppers MM$ MM$ % MM$ MM$ % Revenue 290.598 273.102 -6,0% 66.472 89.368 34,4% EBITDA 10.100 5.858 -42,0% 11.051 11.022 -0,3% EBITDA Margin 3,5% 2,1% 16,6% 12,3% Pro-Forma EBITDA(*) 13.754 8.270 -39,9% 10.859 12.666 16,6% Pro-Forma EBITDA Margin 4,7% 3,0% 16,3% 14,2% Controller's net profit 5.103 -3.739 -173,3% 6.379 5.765 -9,6% Horas Horas Horas Horas Var. Var. (Miles) (Miles) (Miles) (Miles) Total man-hours executed 16.378 18.178 11,0% 5.122 5.006 -2,3% ▪ ICSK Chile ➢ Higher level of activity in industrial and mining areas ➢ Lower income explained by change in accounting standard (IFRS 15) ▪ ICSK Peru ➢ Low level of activity ➢ Works in the Talara refinery project (PetroPeru) records losses ▪ Backlog equivalent to US$533 millon ➢ Projects awarded for US$ 347 million (Jan-Dec-2018): ▪ CHILE: Main Transportation System Chuquicamata (Codelco), Andina Transfer and Intermediate Transport System (Codelco), Dataluna Datacenter Project, Project pulpa textile Valdivia Plant (Arauco), Cervecerias Chile expansion project and Project underwater lines, Oxiquim. ▪ BRASIL: EPC Electric transmission lines in Brazil. ▪ PERU: Sulfur plant and material handling for Marcobre ▪ COLOMBIA: EPC Water Plant Termozipa 6

▪ Results 4Q18 Puerto Ventanas Dec-17 Dec-18 Var. 4Q17 4Q18 Var. Puerto Ventanas Consolidated ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 136.773 161.608 18,2% 35.356 45.189 27,8% EBITDA 40.403 48.401 19,8% 10.167 14.487 42,5% EBITDA Margin 29,5% 29,9% 28,8% 32,1% Controller's net profit 20.063 21.373 6,5% 4.636 7.133 53,9% PVSA - Tons transferred 5.412.836 5.832.590 7,8% 1.253.774 1.541.781 23,0% Fepasa - Th Ton-Km 948.597 1.108.301 16,8% 231.881 285.411 23,1% Fepasa Puerto Ventanas ▪ Mobilized load (+17%) ▪ Cargo Transfer (+8%) ➢ Movement of cargo in the mining (+29%) and ➢ Higher transfers of concentrate (+11%) and grains forestall (+15%) sector (+53%) ➢ Higher cargo movement for Codelco ▪ The revenues of the Port Business reached US$ Teniente and for Anglo American Los 70 million (+8%) Bronces (new contract) ▪ Lower result in port business, different cargo mix ➢ Higher movement of cargo for Arauco with lower margins and higher SGA associated ▪ Growth of 58% in EBITDA: MM $ 8,966 with the search for new growth opportunities 7

▪ Results 4Q18 Enaex Dec-17 Dec-18 Var. 4Q17 4Q18 Var. Enaex ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 705.173 783.061 11,0% 191.445 223.464 16,7% EBITDA 164.373 166.235 1,1% 44.132 46.440 5,2% EBITDA Margin 23,3% 21,2% 23,1% 20,8% Controller's net profit 80.184 78.730 -1,8% 21.474 23.128 7,7% ▪ Chemical business ➢ Higher sales of Amonium Nitrate (AN) in Chile (+6%) ➢ Exports of AN increased by 12% ▪ Rock Blasting Services ➢ Chile: Similar level of activity compared to December 2017 ➢ Brasil/Britanite: Increase in sales volume (+19%) and EBITDA (+9%) ▪ Inititation Systems (Davey Bickford) Physical sales evolution (Thu Tons) ➢ Higher revenues (+23%), higher sales levels in the Latin American and 934 1000 923 865 853 853 North American markets. 834 839 832 900 800 671 700 ▪ Cachimayo Plant 543 600 500 ➢ Acquisition of 70% of Industrias Cachimayo S.A. The company is a 400 300 manufacturer of ammonium nitrate in Peru and has a capacity of 35,000 200 tons per year. 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 L12M 8

▪ Results 4Q18 Dec-17 Dec-18 Var. 4Q17 4Q18 Var. Magotteaux Group MUS$ MUS$ % MUS$ MUS$ % Revenue 667.376 709.188 6,3% 169.182 181.386 7,2% EBITDA 43.323 61.592 42,2% 14.767 15.815 7,1% EBITDA Margin 6,5% 8,7% 8,7% 8,7% Controller's net profit 13.627 20.653 51,6% 6.679 9.698 45,2% ▪ Volume Dec-17 Dec-18 Var. Magotteaux Group % ➢ Grinding Balls: Higher volumes of grinding balls, Grinding Media 319.467 322.688 1,0% Casting 49.183 52.160 6,1% particularly in the mining market (+4%) in South Total 368.650 374.848 1,7% America and Asia. Volume affected by lower sales of balls in the cement and utilities market (-16%) ➢ Casting: Higher Casting volumes, particularly in the cements (+2%) and aggregates (+5%) markets ▪ Higher level of EBITDA (+42%) driven mainly by better prices in both GM and Casting ▪ Net income showed an increase of 52% 9

▪ Results 4Q18 SK Comercial Dec-17 Dec-18 Var. 4Q17 4Q18 Var. SK Comercial ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 254.266 265.981 4,6% 63.591 72.763 14,4% Distribution Business 166.273 185.506 11,6% 43.651 50.650 16,0% Rental Business -4,2% 100.958 96.746 23.122 24.268 5,0% 0,0% Consolidation adjust -12.965 -16.271 -3.182 -2.155 0,0% EBITDA 23.864 34.811 45,9% 6.589 9.326 41,5% EBITDA Margin 9,4% 13,1% 10,4% 12,8% Controller's net profit -7.855 2.039 126,0% -593 805 235,8% Distribution of the SK Rental Fleet by Country (US$) ▪ Machinery Distribution Business 10% 6% ➢ Higher physical sale of machinery (+18%) 16% ➢ Increase in sales by 12% compared to December 2017 66% ▪ Machinery Rental Business Chile Perú Brasil Colombia ➢ Fleet: US$134 million (-11% vs. dic-17) ➢ Machinery Rental Business in Chile: Decrease in the size of the fleet, a significant recovery in the demand is not yet evident ➢ Machinery Rental Business in Peru:. Improvement in results compared to December 2017 but underperformance, mainly due to a low level of investment projects in Peru ▪ Reorganization Plan ➢ Extraordinary profit from the sale of a piece of land framed in the restructuring process of SKC 10

▪ Results 4Q18 SK Inversiones Automotrices Dec-17 Dec-18 Var. 4Q17 4Q18 Var. SK Inversiones Automotrices MM$ MM$ % MM$ MM$ % Controller's net profit 17.393 17.254 -0,8% 3.721 7.098 90,7% Chile Perú ▪ SKIA obtained a profit of MM$26,9 (US$17,2 millon) (-0.8%) ➢ Result explained as a result of losses due to exchange rate differences (strong devaluation of the Argentine peso). Colombia ▪ SKBergé recorded sales of 91,946 units, showing a greater sale of 18% compared to December 17 ➢ Highest sales level in Chile : 56,632 units (+28%) ➢ Greater performance in sales abroad 37,314 units (+6%) Argentina 11

▪ Results 4Q18 Agenda 03 04 02 01 Financial Q&A Main General Background Consolidated Exhibits figures