Results 3Q17 Agenda 01 04 03 02 General Financial SKs - - PowerPoint PPT Presentation

SLIDE 1

Asesores Financieros

3Q17 Results Presentation| December 2017

SLIDE 2

Agenda

▪

Results 3Q17

02

Main Consolidated figures

03

SK’s subsidiaries Highlights

04

Financial Exhibits

01

General Background

SLIDE 3

▪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 Comercial Ingeniería y Construcción Enaex Magotteaux

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

Enaex Magotteaux SK Comercial SKBergé Puerto Ventanas CHBB SK Godelius

50,01% 58,19% 74,59% 40,00%

SLIDE 4

▪4

Corporate Governance

Ownership Structure Board of Directors

Source: Santiago Stock Exchange.

(1) Last 12 month

Corporate Presentation

Sigdo Koppers ▪ Daily Average vol. traded (1): US$0.4 millions ▪ Market Cap: US$1.8 billions (As of Nov 30th 2017)

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

Ownership structure as of Nov-17

SLIDE 5

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 & LOGISTICS MINING DEVELPOMENT

1 3 4 2 1 2 3 4

+ + +

BHP Billiton - Minera Escondida:

1 2 3 4

+ + +

Codelco – Andina:

1 2 3

+ +

SLIDE 6

Agenda

▪

Results 3Q17

02

Main Consolidated figures

03

SK’s subsidiaries Highlights

04

Financial Exhibits

01

General Background

SLIDE 7

7

▪ Consolidated revenues amounted to US$1.64 billion, a similar

level compared to Sep-16.

✓

Magotteaux sales rose 5.5%, inline with a higher level of physical sales (+3.9%).

✓

Lower sales at SK Comercial, mainly due to a decrease in Chile and Perú.

▪ Consolidated EBITDA amounted to US$200 millions (-5,4%) ✓

Higher level of EBITDA in Puerto Ventanas by greater transfer of cargo.

▪ Net

profit totaled US$52 millions (-15%), a decrease explained by:

✓

Lower performance

• f

the Engineering and Construction business due to the low level of activity and 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 distribution business in Chile.

▪ Sigdo Koppers is executing plans of reorganization and cost

efficiency in its different subsidiaries

Highlights - June 2017

▪

▪

Sigdo Koppers has a good consolidated Cash liquidity of US$284 millions and a conservative level of consolidated debt

▪

The net financial debt-to-EBITDA ratio is 2.91x and if we add consortiums net profit is 2.77x

(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 3Q17

Sep-16 Sep-17

Var.

Sales 1.640.110 1.635.569

• 0,3%

EBITDA (1) 211.070 199.652

• 5,4%

EBITDA Margin 12,9% 12,2%

EBITDA Pro Forma (2) 244.794 226.475

• 7,5%

Profit (Loss) 89.544 80.175

• 10,5%

Sigdo Koppers Net Profit (non recurrent) 61.070 51.788

• 15,2%

Dec-16 Sep-17

Var.

Total Assets 3.544.520 3.614.631

2,0%

Total Equity (3) 1.680.342 1.739.946

3,5%

Net Debt 810.854 812.575

0,2%

Net Debt / EBITDA

2,79 2,91

ROE 255,26% 277,26% ROCE 6,70% 5,78% Consolidated Income Statement Figures in ThUS$

SLIDE 8

Agenda

▪

Results 3Q17

02

Main Consolidated figures

03

SK’s subsidiaries Highlights

04

Financial Exhibits

01

General Background

SLIDE 9

9

▪…

OPERACIÓN VENTA Y LOGÍSTICA ▪ DESARROLLO PROCESO

▪

Resultados Sep-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 3Q17

SLIDE 10

Ingeniería y Construcción SK

▪

Resultados Sep-16

10

Results 3Q17

▪ Lower result of account of low activity level and lower than expected returns ▪ Advance in current works

➢ Works with problems of recovery of "claims“:

Cochrane thermoelectric plant, and Talara refinery (PetroPerú)

▪ ICSK Brasil

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

Fujian has already started.

▪ Backlog

➢ Backlog equivalent to US$251 million (-24% compared to Jun-17). Main projects: assembly of transformers

for EWS/BHP and Codelco/ underground Chuquicamata tunnels.

➢ Projects awarded by US$123 million (Jan-Sep 2017) ➢ Major projects awarded: Modification of tailings thickener (Minera Escondida), Talara Refinery

Modernization Project (PetroPerú) and the dismantling and assembly of transformers (Minera Escondida).

Sep-16 Sep-17 Var. 3Q16 3Q17 Var. MM$ MM$ % MM$ MM$ % Revenue 234.236 220.543

• 5,8%

84.881 79.472

• 6,4%

EBITDA

• 2.813
• 950

66,2%

• 952

5.404 667,8%

EBITDA Margin

• 1,2%
• 0,4%
• 1,1%

6,8%

Pro-Forma EBITDA(*) 10.142 2.894

• 71,5%

3.282 7.117 116,9%

Pro-Forma EBITDA Margin 4,3% 1,3% 3,9% 9,0%

Controller's net profit 6.965

• 1.276
• 118,3%

1.534 4.301

180,4%

Horas (Miles) Horas (Miles) Var. Horas (Miles) Horas (Miles) Var. Total man-hours executed 12.377 12.175

• 1,6%

4.060 4.000

• 1,5%

Ingeniería y Construcción Sigdo Koppers

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

SLIDE 11

Puerto Ventanas

Puerto Ventanas ▪ Cargo Transfer (+9%)

➢ Higher Cooper Concentrate transfers (+20%) and grain

(+147%).

▪ Port business income reach US$49 million

(+19%)

▪ Investments

➢ New warehouse for Cu Concentrate up and running. ➢ Upgrade Site No.3: beginning of operations during Dec-

17.

11

▪

Resultados Sep-16 Results 3Q17

Fepasa ▪ Mobilized load

➢ Cargo movement of Cu Concentrate (+31%) due to

new contract with Codelco Teniente.

➢ Movement of wood pulp cargo (-27%), impacted

by the collapse of the Toltén bridge on August 18, 2016 (lower volumes and

• ver

costs). This situation will continue until the repair of the bridge by EFE.

Sep-16 Sep-17 Var. 3Q16 3Q17 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 97.318 101.417 4,2% 33.975 34.354 1,1% EBITDA 25.182 30.065

19,4%

8.829 10.148

14,9% EBITDA Margin 25,9% 29,6% 26,0% 29,5%

Controller's net profit 14.416 15.427

7,0%

5.021 5.003

• 0,4%

PVSA - Tons transferred 3.821.904 4.159.040 8,8% 1.419.008 1.383.332

• 2,5%

Fepasa - Th Ton-Km 887.141 716.715

• 19,2%

277.589 238.936

• 13,9%

Puerto Ventanas Consolidated

SLIDE 12

12

Enaex

▪ Chemical business (Amonium Nitrate)

➢ Lower AN sales associated with lower consumption in Chile, together with

lower consumption of certain deposits in the region and decreases in the Peruvian market.

➢ AN exports rose by 6%.

▪ Rock Blasting Services

➢ Chile: more complex scenario with lower volumes in some clients (-13%

v/s 3Q16). Mining production in Chile (-4%)%.

➢ Brazil / Britanite: Slight economic recovery in Brazil and new awarded

contracts, particularly in mining, has increased sales volume (+22%).

▪ Davey Bickford:

➢ Higher revenues (+9%) explained mainly by a recovery in the American

market.

▪

Resultados Sep-16

Physical sales evolution (Thu Tons)

Results 3Q17 Sep-16 Sep-17 Var. 3Q16 3Q17 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 516.752 513.728

• 0,6%

170.196 173.857 2,2% EBITDA 121.495 120.367

• 0,9%

34.297 41.279

20,4% EBITDA Margin 23,5% 23,4% 20,2% 23,7%

Controller's net profit 61.626 58.710

• 4,7%

17.513 20.439

16,7%

Enaex

SLIDE 13

▪ Volume

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

market in North America (+7%).

➢ Casting business: higher volumes, particularly in cement (+5%) and

mining (+7%).

▪ Quick increase in the price of FeCr and scrap at an international level

that has not yet been completely transferred to customers, affecting the margins both grinding balls and casting.

▪ US$20 million loss in net result due to this effect

▪ Reorganization Plan

➢ SG&A expenses decreased 6% compared to Sep-16 (-8% vs. Sep-15)

▪

Resultados Sep-16

Magotteaux

13

Results 3Q17 Sep-16 Sep-17 Var. 3Q16 3Q17 Var. MUS$ MUS$ % MUS$ MUS$ % Revenue 472.149 498.194 5,5% 150.968 167.688 11,1% EBITDA 51.400 36.767

• 28,5%

15.537 10.529

• 32,2%

EBITDA Margin 10,9% 7,4% 10,3% 6,3%

Controller's net profit 18.359 6.948

• 62,2%

5.996 1.712

• 71,4%

Magotteaux Group

Sep-16 Sep-17 Mill Balls 230.414 239.050 3,7% Casting 35.509 37.349 5,2% Total 265.923 276.399 3,9% Magotteaux Group Var. %

SLIDE 14

14

SK Comercial

▪ Machinery Distribution Business

➢ Machinery sales in Chile remain depressed (-14% units vs. Sep-16). ➢ Mainly the industrial machinery market (-31% units vs. Sep-16).

▪ Machinery Rental Business

➢ Fleet: US$154 million (-14% 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 size

• f the market and lower investment cycle.

▪ Corporate reorganization

➢ Continuing a project to reduce costs and synergies between different

subsidiaries of SKC, Sep-17 reports US$1,6 million higher costs for this concept.

➢ Synergy projects in warehouses and workshops. ➢ Rationalisation of branches and maximizing the use of offices and

• perations in Lampa (headquarters).

▪

Resultados Sep-16 Results 3Q17

Sep-16 Sep-17 Var. 3Q16 3Q17 Var. ThUS$ ThUS$ % ThUS$ ThUS$ % Revenue 226.833 190.675

• 15,9%

73.687 68.737

• 6,7%

Distribution Business

144.938 116.597

• 19,6%

44.317 39.627

• 10,6%

Rental Business

86.842 77.836

• 10,4%

32.008 30.059

• 6,1%

Consolidation adjust

• 4.947
• 3.758

0,0%

• 2.638
• 949

0,0%

EBITDA 21.943 17.154

• 21,8%

5.833 7.308

25,3% EBITDA Margin 9,7% 9,0% 7,9% 10,6%

Controller's net profit

• 8.093
• 7.262

10,3%

• 3.631
• 1.200

67,0%

SK Comercial

SLIDE 15

SK Inversiones Automotrices

▪ SKIA had profits of MM$13,672 Chilean Pesos

(US$21 millions) (+38%).

✓

Result explained by higher margins of SKBergé in Chilean market (Positive effect of exchange rate)

✓

Higher sales volume in Chile, Peru and Colombia

▪ SKBergé accounted sales for 58,942 units, an

increase of 15% compared to September 2016.

✓

Higher level of sales in Chile: 31,879 units (+30%).

✓

Higher sales performance abroad: 26,063 units (+ 2%).

▪ In Chile, ANAC recorded sales of 261,567 units in

3Q17 (+ 19%).

▪ High growth potential in countries such as Peru

and Colombia

▪

Resultados Sep-16 Results 3Q17

15

Perú Argentina Chile Colombia

Sep-16 Sep-17 Var. 3Q16 3Q17 Var. MM$ MM$ % MM$ MM$ % Controller's net profit 9.938 1.331

• 86,6%

3.735

• 8.394 -324,7%

SK Inversiones Automotrices

SLIDE 16

Agenda

▪

Results 3Q17

02

Main Consolidated figures

03

SK’s subsidiaries Highlights

04

Financial Exhibits

01

General Background

SLIDE 17

Sigdo Koppers Income Statement

17

▪

Resultados Sep-16 Results 3Q17

Sep-16 Sep-17 Var. 3Q16 3Q17 Var.

Sales 1.640.110 1.635.569

• 0,3%

549.130 567.864

3,4%

Sales expenses

• 1.278.949
• 1.287.123
• 0,6%
• 436.892
• 440.577
• 0,8%

Gross income 361.161 348.446

• 3,5%

112.238 127.287

13,4%

Other operating income 17.292 14.160

• 18,1%

3.757 1.974

• 47,5%

Distribution costs

• 63.304
• 52.457

17,1%

• 22.311
• 16.266

27,1%

Administrative expenses

• 169.580
• 163.828

3,4%

• 53.450
• 48.903

8,5%

Other operating expenses

• 24.593
• 30.986
• 26,0%
• 5.466
• 15.021
• 174,8%

Operating income 120.976 115.335

• 4,7%

34.768 49.071

41,1%

EBITDA 211.070 199.652

• 5,4%

63.540 77.414

21,8% % EBITDA Margin 12,9% 12,2% 11,6% 13,6%

Interest income 3.047 3.935

29,1%

1.239 1.741

40,5%

Interest expenses

• 40.769
• 40.676

0,2%

• 14.527
• 13.996

3,7%

Related companies income 33.724 26.943

• 20,1%

12.031 8.914

• 25,9%

Exchange differentials 949 3.200

237,2%

• 1.823

3.695

302,7%

Price - level restatement

• 1.484
• 1.113

25,0%

• 40
• 721 -1702,5%

Other income (losses) 45

• 2.403
• 5440,0%

337

• 598
• 277,4%

Gain (losses) between book value and fair value (financial assets)

• -
• -

Income before taxes 116.488 105.221

• 9,7%

31.985 48.106

50,4%

Income tax

• 26.944
• 25.046

7,0%

• 7.018
• 12.942
• 84,4%

Income 89.544 80.175

• 10,5%

24.967 35.164

40,8%

Gain (losses) from uncontinnued

• perations
• -
• -

Net income 89.544 80.175

• 10,5%

24.967 35.164

40,8% Income attributable to Sigdo Koppers

61.070 51.788

• 15,2%

16.647 22.021

32,3%

Income attributable to non-controlling interests 28.473 28.387

• 0,3%

8.319 13.143

58,0%

Net income 89.543 80.175

• 10,5%

24.966 35.164

40,8% Sigdo Koppers Consolidated Income Statement Figures in ThUS$ Cifras en MUS$

SLIDE 18

Revenue Sigdo Koppers

18

▪

Resultados Sep-16

(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 3Q17

Sep-16 Sep-17 Var. 3Q16 3Q17 Var.

Services 441.585 438.721

• 0,6%

161.714 157.791

• 2,4%

Ingeniería y Construcción SK 344.267 337.304

• 2,0%

127.739 123.437

• 3,4%

Puerto Ventanas 97.318 101.417 4,2% 33.975 34.354 1,1% Industrial 991.287 1.014.053 2,3% 321.942 342.235 6,3% Enaex 516.752 513.728

• 0,6%

170.196 173.857 2,2% Magotteaux (1) 472.149 498.194 5,5% 150.968 167.688 11,1% SK Inv. Petroquímicas 2.386 2.131

• 10,7%

778 690

• 11,3%

Commercial & Automotive 226.833 190.675

• 15,9%

73.687 68.737

• 6,7%

SK Comercial 226.833 190.675

• 15,9%

73.687 68.737

• 6,7%

SKIA (2)

• Parent company & adjustment(3)
• 19.595
• 7.880

59,8%

• 8.213
• 899

89,0%

Consolidated Sales 1.640.110 1.635.569

• 0,3%

549.130 567.864 3,4% Figures in ThUS$ Revenue Business Areas Figures in ThUS$

SLIDE 19

Revenue by country (incl. SKBergé)

▪D

19

▪

Resultados Sep-16 ▪ December 2016 ▪September 2017 Results 3Q17

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 87,2% 12,8% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% Ingeniería y Construcción SK 83,3% 16,7%

• Puerto Ventanas

100%

• Área Industrial

36,7% 4,5% 0,1% 12,4% 5,9% 16,5% 17,7% 6,1% Enaex 60,4% 8,9% 0,2% 15,9%

• 10,2%

4,4% Magotteaux 12,0%

• 8,9%

12,0% 33,5% 25,6% 8,0% SK Inv. Petroquímicas 100%

• Área Comercial y Automotriz

60,2% 26,0% 7,6% 0,5% 0,0% 0,0% 0,0% 5,7% SK Comercial 92,1% 2,6% 2,0% 3,4%

• SKIA

55,0% 29,9% 8,5%

• 6,7%

Ventas Empresas SK 55,9% 16,2% 3,7% 4,7% 2,1% 6,0% 6,4% 5,0%

Ventas Áreas de Negocios

SLIDE 20

EBITDA Sigdo Koppers

20

▪

Resultados Sep-16

(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 3Q17

Sep-16 Sep-17 Var. 3Q16 3Q17 Var.

Services 19.557 28.612 46,3% 7.374 18.333 148,6% Ingeniería y Construcción SK

• 5.539
• 1.453

73,8%

• 1.455

8.185 662,5% Puerto Ventanas 25.096 30.065 19,8% 8.829 10.148 14,9% Industrial 173.671 158.231

• 8,9%

50.269 52.146 3,7% Enaex 120.912 120.367

• 0,5%

34.297 41.279 20,4% Magotteaux (1) 51.400 36.767

• 28,5%

15.537 10.529

• 32,2%

SK Inv. Petroquímicas 1.359 1.097

• 19,3%

435 338

• 22,3%

Commercial & Automotive 22.598 17.095

• 24,4%

5.813 7.290 25,4% SK Comercial 22.676 17.154

• 24,4%

5.833 7.308 25,3% SKIA (3)

• 78
• 59

24,4%

• 20
• 18

10,0% Parent company & adjustment

• 4.756
• 4.286

9,9%

• 253

243 196,2%

Consolidated EBITDA 211.070 199.652

• 5,4%

63.203 78.012 23,4%

EBITDA Margin 12,9% 12,2% 11,5% 13,7%

Consolidated pro-forma EBITDA 244.794 226.475

• 7,5%

75.234 86.926 15,5% Figures in ThUS$ EBITDA Business Areas Figures in ThUS$

SLIDE 21

Pro-Forma EBITDA decreased a 72% 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 (-11%) 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-Forma

By business área: Sep-16 v/s Sep-17 ( K US$ )

▪

Results 3Q17

• 7.5%

Higher margins and volumes Higher operational profit on PVSA (+3 MUS$) and in Fepasa (+2 MMUS$)

SLIDE 22

Sigdo Koppers’ Net Profit

22

▪

Resultados Sep-16

(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 3Q17

Sep-16 Sep-17 Var. Sep-17 Sep-16 Sep-17 Var.

Services 24.652 13.475

• 45,3%

13.757 6.835

• 50,3%

Ingeniería y Construcción SK 10.236

• 1.952
• 119,1%

60,43% 6.186

• 943
• 115,2%

Puerto Ventanas 14.416 15.427 7,0% 50,01% 7.571 7.778 2,7% Industrial 80.908 66.397

• 17,9%

52.122 40.474

• 22,3%

Enaex 61.626 58.710

• 4,7%

60,72% 37.420 35.650

• 4,7%

Magotteaux (1) 18.359 6.948

• 62,2%

95,00% 13.937 4.212

• 69,8%

SK Inv. Petroquímicas (2) 923 739

• 19,9%

74,59% 765 612

• 20,0%

Commercial & Automotive 6.548 13.679 108,9% 7.664 14.599 90,5% SK Comercial

• 8.093
• 7.262

10,3% 87,20%

• 6.942
• 6.329

8,8% SKIA 14.641 20.941 43,0% 99,99% 14.606 20.928 43,3%

SK companies profit 112.109 93.552

• 16,6%

73.543 61.908

• 15,8%

Parent company & adjusments

• 12.473
• 10.120

Total consolidated profit 61.070 51.788

• 15,2%

Total Companies Attributable to parent company Net profit Business Areas % SK Figures in ThUS$ Figures in ThUS$

SLIDE 23

Sigdo Koppers Balance sheet

23

▪

Resultados Sep-16 Results 3Q17

Dec-16 Sep-17 Var.

Current Assets Cash and cash equivalent 299.606 284.081

• 5,2%

Account and sales receivables 552.061 573.342

3,9%

Inventories 272.910 282.616

3,6%

Other current assets 37.882 29.919

• 21,0%

Total current assets 1.162.459 1.169.958

0,6%

Long-term assets Property, plants & equipment 1.187.522 1.203.498

1,3%

Other long-term assets 1.194.539 1.241.175

3,9%

Total long-term assets 2.382.061 2.444.673

2,6%

Total assets 3.544.520 3.614.631

2,0%

Current liabilities Short-term financial debt 297.552 269.666

• 9,4%

Accounts payable 299.555 290.037

• 3,2%

Other current liabilities 131.180 170.043

29,6%

Total current liabilities 728.287 729.746

0,2%

Long-term liabilities Long-term financial debt 812.908 826.990

1,7%

Other long-term liabilities 324.436 317.949

• 2,0%

Total long-term liabilities 1.137.344 1.144.939

0,7%

Total liabilities 1.865.631 1.874.685

0,5%

Equity Attributable to the controller 1.268.867 1.310.155

3,3%

Attributable to non-controlling interests 411.475 429.791

4,5%

Total equity 1.680.342 1.739.946

3,5%

Total liabilities and equity 3.545.973 3.614.631

1,9%

Consolidated Balance Sheet

Figures in ThUS$ Indicators Dec-16 Sep-17 Net Financial Debt 810.854 812.575 Working Capital 525.416 565.921 Working Capital Days 88 94 Days of Consolidated Inventory 58 60 Accounts Receivable (Days) 92 96 Accounts Payable Days 64 62

SLIDE 24

Net Financial Debt/ EBITDA Financial Debt

24

Services Industrial Commercial & Automobile Parent Comp.

US$ 1,097 millions – Consolidated US$ 813 millions – Net Financial Debt

Current  25% Non Current  75%

Cash (US$ millions) Key financial Indicators

Conservative financial profile

▪

Resultados Sep-16

▪ Consolidated Leverage: 1.08x ▪ Financial Net Leverage**: 0.46x ▪ Net Financial Debt/EBITDA: 2.91x ▪ ND/(EBITDA+Consortium): 2.77x ▪ Rating:

✓ A+ Fitch-Ratings ✓ AA- ICR

* Including CHBB, SK Inv. Automotrices S.A. y SK Internacional S.A. ** Corporate Bonds Covenant < 1,2x

Results 3Q17 2.91x 2.77x

SLIDE 25

Cash Flow of Sigdo Koppers

25

▪

Resultados Sep-16 Results 3Q17 Sep-16 Sep-17 Var.

Operating cash flow 237.256 194.974

• 17,8%

Investment cash flow

• 104.845
• 80.372

23,3%

Capex

• 93.210
• 73.972

20,6%

Fixed assets sales 2.242 2.947

31,4%

Other

• 13.877
• 9.347

32,6%

Finance cash flow

• 109.255
• 135.203
• 23,7%

Net variation in financial liabilities

• 17.648
• 55.776
• 216%

Interest

• 37.332
• 30.283

18,9%

Dividends

• 69.736
• 51.081

26,8%

Capital increased

0,0%

Other 15.461 1.937

• 87,5%

Total net cash flow 23.156

• 20.601
• 189,0%

Effect of exchange rate changes 3.684 5.203

41,2%

Cash and cash equivalent 225.554 265.997

17,9%

Consolidated Cash Flow

Figures in ThUS$

SLIDE 26

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 SK

Rental.

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

Results 3Q17

Sep-16 Sep-17 MUS$ MUS$ Área Servicios 43.414 32.180 Ingeniería y Construcción SK 6.801 960 Puerto Ventanas 36.613 31.220 Área Industrial 48.074 37.354 Enaex 27.841 27.250 Magotteaux 20.233 10.104 SK Inv. Petroquímicas

• Área Comercial y Automotriz
• 45.432
• 40.304

SK Comercial (1)

• 45.432
• 40.304

SKIA

• Capex Empresas SK

46.056 29.231

Capex Áreas de Negocios

SLIDE 27

▪Asesores Financieros

Results Presentation