Corporate Overview

Corporate Overview
November 2006
The Company
MADECO S.A. was incorporated
as a public limited company in
Chile in 1944. Over the years it
has expanded its operations to
Brazil, Peru and Argentina.
Today, MADECO is the regional
leader in finished and semifinished
products
made
of
copper, aluminum, related alloys
and optic fiber.
MADECO is also present
flexible container industry.
are
used
in
the
consumption market for
snacks and cosmetics.
100%
99,3%
75,9%
Ficap
Indeco
Decker
Indelqui
WIRE &
WIRE &
WIRE &
CABLE
CABLE
CABLE
Chile
Brazil
Argentina
WIRE & CABLE
BRASS MILLS
MADECO
100%
in the
These
mass
food,
Peru
Alusa
100%
BRASS MILLS
Aluflex
99,1%
Indalum
ALUMINUM
PROFILES
FLEXIBLE PACKAGING
2
Shareholders
AFPs
6,3%
Other
41,0%
(1)
ADRs
4,9%
Quiñenco
Group
47,8%
The Company’s largest
shareholder is Quiñenco, a
Chilean conglomerate that has
interests in the banking, food,
beverages and
telecommunications sectors,
among others.
The portion of Madeco on the
stock exchange that does not
belong to the controller as of
December 31, 2005, was 47.8%.
As of May 31, 2006
3
Business Units
Flexible Packaging
Aluminum Profiles
Aluminun
Profiles
Flexible
9%
Packaging
11%
Wire & Cable
58%
Brass Mills
22%
Total Madeco´s Production
(Jan - Sept. 2006)
105,449 Tons.
Brass Mills
Wire & Cable
4
Regional Presence
Business Unit
Wire & Cable
Brass Mills
Flexible Packaging
Aluminum Profiles
Subsidiary
% ownership
Country
Market
Share(1)
Position
Madeco-Chile
100%
Chile
37%
1
Ficap
100%
Brazil
16%
2
Decker-Indelqui
98%
Argentina
5%
4
Indeco
93%
Peru
65%
1
Madeco-Chile
100%
Chile
59%
1
Decker-Indelqui
98%
Argentina
14%
2
Armat (coin blanks)
100%
Chile
4%
3
Alusa
76%
Chile
26%
2
Aluflex
76%
Argentina
8%
4
Indalum
99%
Chile
71%
1
MADECO is a leading Latin American manufacturer of finished and semi-finished non-ferrous products based on
copper, aluminum and similar alloys. It is also a producer of flexible packaging products for use in the mass
consumer market. The Company has the portfolio of assets and technology required to compete in each market.
5
Regional Presence
Wire & Cable plant
in Rio de de Janeiro (Brazil)
Wire & Cable plant
in Sao Paulo (Brazil)
6
EBITDA Margin
EBITDA Margin
14,0%
13,1%
12,0%
11,1%
10,7%
2004
2005
10,0%
8,0%
7,8%
7,8%
7,7%
6,6%
6,0%
4,0%
2,0%
0,0%
2000
2001
2002
2003
sep-06
7
Revenues and EBITDA Breakdown by Business Unit
Flexible
Packaging
8%
Aluminun
Profiles
6%
Revenues (Jan - Sept. 2006)
Ch$ 427,878 million
(US$ 795.0 million)
Revenues
Brass Mills
23%
Wire & Cable
63%
Wire & Cable unit is the largest business unit, representing
63% of revenues and EBITDA.
EBITDA (Jan - Sept. 2006)
Ch$ 56,161 million
(US$ 104.3 million)
Flexible
Aluminun Profiles
Packaging
6%
10%
Brass Mills
21%
Rate of exchange US$1,00 = Ch$538,2 on September 30th 2006
Wire & Cable
63%
EBITDA
8
Revenues Breakdown by Economic Sector and Destination
Revenues by Economic Sector
Mining
2%
Mass Consumer
13%
Revenues by Destination
Energy
10%
Peru
9%
Wire Rod
22%
Industrial
28%
Construction
22%
Telecom.
3%
Brazil
26%
Exports
26%
Chile
32%
Argentina
7%
Madeco’s principal sales sector has been the industrial sector, followed by sales to the construction
sector. Chile and exports represent 32% and 26% of the total income, respectively, followed by the sales
in Brazil (26%).
9
The Company’s Wire & Cable Business Unit
Products and Plants
Product lines
–
Copper rod
–
Bare wire of Cu and Al
–
Magnetic wire
–
Thermoplastic and thermostable wires of Cu and Al
–
Cu telephone wire
–
Building wire
Lima
(13,560 tons)
Rio de Janeiro (2)
(20,760 tons)
(1,000,000 km Optic
fiber)
Santiago
(15,100 tons)
Sao Paulo
(29,100 tons)
Buenos Aires (3)*
(7,200 tons)
(300,000 km Optic
fiber)
–
Construction
–
Industry
–
Mining
–
Energy
–
Telecommunications
Capacity Utilization
Annually Ton
Sectors
50,000
Notes:
Capacities at
December 2004.
45,000
There is idle capacity
in telephone
Cables in Chile
and Brazil that has an
impact on the total
utilization factor of the
Plants’ capacity
30,000
Idle capacity
40,000
Utilized capacity
35,000
62%
25,000
20,000
15,000
67%
10,000
78%
9%
5,000
0
Chile
Brasil
Perú
Argentina
10
The Company’s Brass Mills Business Unit
Products and Plants
Product Lines
–
Copper tubes and brass tubes
–
Bars of copper and brass
–
Sheets of copper, brass and aluminum
–
Coin blanks
Quilpué
(9,000 tons)
Santiago (2)
(115,100 tons)
Buenos Aires (3)
(37,400 tons)
Capacity Utilization
Tons per year
Sectors
–
Construction
–
Industry
–
Energy
–
Mining
50,000
Idle capacity
45,000
Utilized capacity
40,000
35,000
83%
30,000
25,000
20,000
Note:
Capacities at
December 2004.
15,000
10,000
6%
30%
5,000
0
Chile
Argentina
Coins
11
The Company’s Flexible Packaging Business Unit
Lines of products
Products and Plants
–
Multiple laminates
–
Containers of Doypack and Flowpack type
–
Monolaminated and multilaminated film with
“cold seal” and “hot melt” applications
–
Merchandising products
–
Bag-in-box
–
Roll labels
–
Multilayer co-extruded film
Santiago
(13,000 tons)
San Luis
(6,500 tons)
Sectors
–
–
National and International companies of the mass
consumer industry
Tons per year
Capacity Utilization
16,000
Personal use
Idle capacity
14,000
Utilized capacity
12,000
10,000
Principal Clients
Note:
Capacities at
December 2004.
8,000
79%
6,000
4,000
80%
2,000
0
Chile
Argentina
12
The Company’s Aluminum Profiles Business Unit
Products and Plants
Lines of products
–
Aluminum profiles
–
Windows: sliding, lowering, projecting, fixed
practicable and sliding with guardrail
–
Doors: lowering, swinging
–
Profiles: multiple use, universal and showerdoor
–
Profiles for private use
Santiago
(16,800 tons)
Capacity Utilization
Sectors
–
Construction
–
Industry
Tons per year
25,000
Idle capacity
Utilized capacity
20,000
15,000
Note:
Capacities at
December 2004. 10,000
66%
5,000
0
Chile
13
Corporate Overview
November 2006