Annual Report
Transcripción
Annual Report
Annual Report Index 06 01 8 Letter from the Chairman 02 10 Highlights 03 Management Board of Directors Executive Committee Organization Structure 04 20 Ownership Structure 05 The Largest Latin American IT Services Network The Company Business Segments History Subsidiaries Human Resources Quality Management World-Class Credentials SONDA and Transantiago Investment and Financing Policies Thousands of customers in Latin America Business Alliances 06 The Information Technology (IT) Industry 36 Information Technology Market 07 Results 2007 Results in Chile Results in Brazil Results in Mexico Results in OPAL (Others) Prospects for 2008 08 The Company and its Subsidiaries 09 Financial Information page 10 14 20 22 38 42 60 72 2007. Highlights Procwork 540 US$ million 100% Acquisition SONDA SONDA made significant progress with its investment plan 2007-2009 with the acquisition of 100% of Procwork, a leading company in Brazil in IT consulting services and IT systems integration. Its incorporation within SONDA strengthens the Company’s regional position with the addition to its customer base of close to 700, and of more than 3,600 highly-qualified professionals. The leadership reached by SONDA in the provision of IT Services in Latin America reflects itself in unprecedented figures for the Company: revenues of US$ 540 million and EBITDA of US$ 98 million during 2007. in revenues IPSA Although only a year has passed since its stock listing, SONDA entered the list of the 40 most traded stocks on the Santiago Stock Exchange (the IPSA index), with a market capitalization over US$ 1,000 million. 1,000 US$ million market capitalization In 2007, SONDA becomes one of the principal partners of SAP in Latin America. SAP 439 US$ Revenues coming from outside Chile in the second half Deals signed by SONDA during 2007 grew by 65% over the year before, totaling contracts worth more than US$439 million. million long-term contracts SONDA successfully introduced the technology for the new means of payment of the Santiago public transportation system - the BIP! card - processing more than 1,300 million transactions in the year. 07 50% Annual Report SONDA In line with its strategic plan, SONDA achieved to increase the relative share of revenues originated out of Chile in its consolidated sales, significantly increasing the relative weight of Brazil, the largest technology market in Latin America. Non-Chilean sales in the second half of 2007 represented 49.5% of total revenues. Highly-qualified professionals 00 Customer 3,600 page 700 BIP! 01. Letter from the Chairman Dear shareholders, The year 2007 was a period of many challenges and considerable achievements. SONDA’s medium and long-term potential was strengthened and, apart from the difficulties we had to overcome, the Company showed strong bases for continuing to develop successfully in the future. The Annual Report and Financial Statements of SONDA for the year ended December 31, 2007 are therefore the reflection of excellent results that enable us to look to the future with great confidence. Annual Report SONDA 07 The new businesses awarded to SONDA in 2007 grew by 65% over the year before, with contracts totalling US$ 439 million. Of these, US$ 305 million related to IT Services and Applications, including contracts with companies like Consorcio Red Uno (Telmex) and Citibank-Banamex One of the most relevant events of the year was undoubtedly the acquisition of 100% of the company Procwork, one of the most important IT services companies in Brazil. The transaction, forming part of the investment plan outlined at the time of our stock exchange listing in November 2006, also brought formidable development and growth opportunities, where the first beneficiaries were our own customers and personnel, both in Brazil and the rest of the region. Our operation in Brazil already contributed revenues of US$ 117.4 million in the first halfyear, representing 36.5% of that period’s consolidated revenues. 00 The financial statements show a net income of Ch$ 23,084 millon (US$ 46 million). I cannot but express my satisfaction of having achieved revenues in 2007 of US$ 540 million, a record for our Company. in Mexico, or Petrobrás, Redcard, Embraer, Teleperformance y Sadia, in Brazil. In this, I should praise especially the efforts of our commercial teams which have carried out an extraordinary job in working in markets that are increasingly more competitive, without frontiers and tremendously dynamic. page During the year, the Company made substantial progress in its development and consolidation strategy. Large-scale projects were carried out, reaffirming its position, after 33 years of existence, as one of the most complete and reliable information technology (IT) companies in the whole continent, with a presence in nine countries and a relevant volume of business in each one. Procwork, was the achievement of the coveted desire to increase the relative participation of the international area of the Company’s consolidated revenues. In the third quarter of 2007, revenues generated from outside Chile already represented 50% of total revenues, a figure that should increase with the organic growth of the subsidiaries and the new planned acquisitions, the first of which will be a first-class company in Colombia. This, together with the sustained growth of our present business, points to the objective of generating more value for our shareholders. Its great acceptance by the market has enabled SONDA to become part of the IPSA (the Chilean selective stock price index) in early 2008, occupying an outstanding place among the most actively-traded companies in Chile. But 2007 also brought us difficulties, mainly deriving from our participation as the technological operator of Transantiago. However, we believe that this project, rather than weakening us, actually strengthened us. Thanks to the unconditional work of each and every one of our engineers and staff, we managed to successfully overcome the technical disputes, which in fact were relatively minor, and face with firmness and maturity the innumerable political and communicational problems. We have not for one moment regretted becoming involved in Transantiago; quite the opposite. We are convinced that there is no other company in the world capable of carrying out a project of such scale and complexity and we are proud and particularly gratified to be part of something as important as the new Santiago public transportation system. We will remain faithful to our mission of working with all our energy, enthusiasm and skills in the process of the incorporation of information technologies and innovation in the countries of Latin America. We have the cash resources for continuing with our investment plans which include new acquisitions in the most important markets. In conclusion, and on behalf of the Company’s board of directors, I have to thank very especially all the employees of SONDA for the great effort made during the year. Without their commitment and dedication, the achievements and good results shown would not have been possible. The quality of our human team is our principal pride. I wish to extend this appreciation also to our shareholders for their trust and support during the year, and to express to them my profound satisfaction for the honor of presiding such prestigious company. Thank you, everyone. We are very optimistic about the future of the project. The agreements reached in early 2008 between the different players (including Administrador Financiero de Transantiago, the banks, bus operators, computer firms and government) show that there is a serious and real commitment to make a success of this ambitious plan, which is what the people and country need. As a global company, we are certain of finding ourselves in an advantageous position for continuing to consolidate our business in 2008. This is despite a scenario that presents uncertainties from the viewpoint of the global economy. Our commitment is to continue creating value for our shareholders on the basis of professional and efficient management. Andrés Navarro Haeussler / President SONDA S.A. page 00 Annual Report SONDA 07 02. Highlights Consolidated Net Income of SONDA 2004-2007 (figures in millions of constant Ch$ as of Dec. 31, 2007) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 R: CAG 10,513 5.9% 2004 30.0 % 21,715 12,227 23,084 10.8% 8.6% 6.1% 2005 2006 Net margin CAGR annual growth 2007 Consolidated EBITDA 2004-2007 Consolidated Operating Income 2004-2007 (figures in millions of constant Ch$ as of Dec. 31, 2007) (figures in millions of constant Ch$ as of Dec. 31, 2007) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 R: CAG 27,508 21.1 % 48,834 35,116 31,813 15.4% 15.9% 2004 2005 18.2% 17.5% 2006 EBITDA margin CAGR annual growth 2007 Consolidates Sales of SONDA 2004-2007 (figures in millions of constant Ch$ as of Dec. 31, 2007) 270,000 250,000 230,000 210,000 190,000 170,000 150,000 130,000 R: CAG 14.6 199,801 % 268,093 200,582 178,170 CAGR: annual growth 2004 2005 2006 2007 50,000 40,000 30,000 20,000 10,000 0 R: CAG 24.8 15,832 19,542 8.9% 9.8% 2004 2005 % 21,845 30,757 11.5% 10.9% 2006 2007 Operating margin CAGR: annual growth SONDA’s sales by country Distribution of personnel Total: 9.262 emplayees as of December 31, 2007 57.8% Chile Opal 24.2% Chile 27.5% 58.6% Brazil Brazil Sales by Lines of Business 9.2% Applications 63.0% IT Services 27.8% Platforms 2004-07 7.2% 07 Opal México Annual Report SONDA 8.1% 10.0% 011 México page 6.6% Claudia Pessoa / Director of Natura “Our experience with SONDA has been very positive”. Natura / Brazil “Through the relationship that we have built, we seek the continuous improvement of our services, for which we include a permanent monitoring of its quality”. NATURA ONE OF THE MOST ADMIRED COMPANIES OF BRAZIL, LEADER IN THE INDUSTRY OF COSMETICS, PARFUMS AND PERSONAL HYGIENE, AND ONE OF THE MOST VALUED BRANDS OF THAT COUNTRY. ITS PRODUCTS ARE SOLD ALSO IN VARIOUS COUNTRIES OF LATIN AMERICA AND EUROPE, HAVING REACHED SIGNIFICANT GROWTH RATES. THEIR REVENUES FLANKED US$1,700 MILLION, WITH OVER 5,000 EMPLOYEES. 03. Management a. Board of Directors Ensuring the interests of all shareholders, SONDA and its management The function of the Company’s management and performance is deassume full responsibility of carrying out the best practices related to legated to a chief executive officer by the board of the Company, who corporate governance. is responsible for all the company’s operations and to whom each of the business and support units reports. In order to correctly manage the organization, the Company is therefore headed by a board of directors comprising nine members, who have been The ordinary shareholders meeting held on April 17, 2007 appointed elected by the ordinary shareholders meeting for a period of three years. the members of the board for the new statutory period, as follows: Board of directors meets monthly, and extraordinary meetings are held in the event of special situations. 1 1 HÉCTOR GÓMEZ BRAIN Director Civil Industrial Engineer Universidad Católica de Chile Tax Id N°6.426.176-2 2 3 2 ANDRÉS NAVARRO HAEUSSLER Chairman Civil industrial engineer Universidad Católica de Chile Tax Id N°5.078.702-8 4 3 MARIO PAVÓN ROBINSON Director Civil industrial engineer Universidad Católica de Chile Tax Id N°5.386.757-K 5 6 4 PABLO NAVARRO HAEUSSLER Director Civil industrial engineer Universidad Católica de Chile Tax Id N°6.441.662-6 Directors’ Committee SONDA, in accordance with clause 50 bis of the Corporations Law 18,046, has a Directors’ Committee consisting of three members of the board, whose functions are those stated in the law. Mario Pavón Robinson as the members of the Directors’ Committee. At its meeting held on June 4, 2007, SONDA’s Directors’ Committee appointed Segismundo Schulin-Zeuthen Serrano as its chairman and Ramón Valdivieso Ríos, the Company’s legal counsel, as secretary. The Company’s board, at its meeting held on April 25, 2007, appointed Segismundo Schulin-Zeuthen Serrano, Ignacio Fernández Doren and 7 The Committee examined the respective quarterly financial statements and proposed their approval to the board, established procedures for the revision and approval of the Company’s transactions with related parties and the up-dating of information relating to directors and senior executives, and took note before the close of the year of the internal control letter sent by the external firm of auditors. 8 5 SEGISMUNDO SCHULIN-ZEUTHEN SERRANO Director Civil Industrial Engineer Universidad de Chile Tax Id N°4.689.635-1 6 LUIZ CARLOS U.FELIPPE Director Economist, Universidad Católica de Sao Paulo, and Business Administrator of the Faculty Eduardo Prado Tax Id N°10.188.505-2 7 IGNACIO FERNÁNDEZ DOREN Director Civil engineer Universidad de Chile Tax Id N°7.037.340-8 8 RAÚL RIVERA ANDUEZA Director Master of Business Administration University of Stanford and Degree in Economics, Macalester College, USA Tax Id N°6.460.793-6 015 The first one set the guidelines for carrying out the Committee’s own tasks, agreeing to meet at least four times a year, on a day prior to the board meeting for approving the Company’s quarterly financial statements. page The Directors’ Committee met four times during 2007. Annual Report SONDA 07 Activities of the Committee b. Executive Committee 1 PABLO NAVARRO HAEUSSLER Vice president Civil industrial engineer Universidad Católica de Chile Tax Id N°6.441.662-6 2 RAÚL VÉJAR OLEA Chief Executive Officer Civil Electronic Engineer and Master in Electronic Engineering, Universidad Santa María Tax Id N°6.580.740-8 3 ANDRÉS NAVARRO HAEUSSLER Chairman Civil industrial engineer Universidad Católica de Chile Tax Id N°5.078.702-8 SONDA’s Executive Committee consists of the chairman, two directors, the chief executive officer and two first-line managers. Its objective is to support and strengthen the management on matters as important as the design of strategies, investment plans and decisions, customer satisfaction, business analysis and results, quality management, human resources policy and marketing. 1 2 4 MARIO PAVÓN ROBINSON Vice president Civil industrial engineer Universidad Católica de Chile Tax Id N°5.386.757-K 3 4 5 OCTAVIO GÓMEZ COBO Division Manager Professional Degree from Universidad de Concepción Tax Id N°5.380.064-5 5 6 6 RAFAEL OSORIO PEÑA Corporate Finance Manager Civil industrial engineer Universidad de Chile Tax Id N°7.923.570-9 page 017 Annual Report SONDA 07 The executives who are members of the Executive Committee are: The directors Andrés Navarro H., Mario Pavón R., Pablo Navarro H. and Héctor Gómez B. are also directors of the subsidiaries mentioned below, without receiving any remuneration for such functions. Directors’ Remuneration (Thousands of pesos) Directors Andrés Navarro Haeussler 20072006 Per Diem - Others (*) 189,009 Per Diem - Others (*) 249,549 Mario Pavón Robinson - 107,081 - 138,563 Pablo Navarro Haeussler - 96,562 - 171,264 Segismundo Schulin-Zeuthen Serrano Ignacio Walker Prieto (3) 10,333 - 8,784 - 7,421 - 8,822 - Héctor Gómez Brain 9,382 - 11,730 - Raúl Rivera Andueza 5,659 - 9,767 - 10,326 - 10,754 - - 963 3,868 Ignacio Fernández Doren Miguel Navarro Haeussler (1) - - Alejandro Ferreiro Yazigi (2) - - Luis Carlos Utrera Felippe (4) - - - - 3,719 - - - Julio Solar Caamaño (4) Total 46,840 392,652 54,688 - 559,376 (*) Includes remuneration received as directors who also perform executive functions within the Company. (1) The remuneration 2006 of Miguel Navarro relates to the month of January. The board was re-elected at the ordinary shareholders meeting held on March 21, 2006. (2) The director Alejandro Ferreiro Yazigi resigned on July 14, 2006. (3) Ignacio Walker Prieto resigned on October 23, 2007 without a replacement having been appointed as of December 31, 2007. (4) The director Julio Solar Caamaño resigned on September 12, 2007 and Luiz Carlos Utrera Felippe was appointed as his replacement. Management remuneration The total remuneration received during 2007 by the executive committee of SONDA and principal executives amounted to Ch$2,532 million. There were no severance payments to senior executives during 2007. Director Name of company and position Andrés Navarro Haeussler Administradora de Activos Financieros S.A. (Chairman) Fullcom S.A. (Chairman) Microgeo S.A. (Chairman) Novis S.A. (Chairman) Orden S.A. (Chairman) Servibanca S.A. (Chairman) SONDA México S.A. (Chairman) SONDA del Perú S.A. (Chairman) SONDA Servicios Profesionales S.A. (Chairman) Mario Pavón Robinson Pablo Navarro Haeussler Héctor Gómez Brain Administradora de Activos Financieros S.A. (Director) I-Med S.A. (Director) Microgeo S.A. (Director) Novis S.A. (Director) Orden S.A. (Director) Servibanca S.A. (Director) Soluciones Expertas S.A. (SOLEX S.A.) (Director) SONDA Ecuador S.A. (Director) SONDA del Perú S.A. (Director) SONDA Inmobiliaria S.A. (Director) SONDA Servicios Profesionales S.A. (Director) Tecnoglobal S.A. (Director) Transacciones Electrónicas S.A. (Director) Factoring General S.A. (Director) Microgeo S.A. (Director) Servibanca S.A. (Director) Servicios Educacionales SONDA S.A. (Director) SONDA Inmobiliaria S.A. (Chairman) SONDA Servicios Profesionales S.A. (Director) Tecnoglobal S.A.(Director) Bazuca Internet Partners S.A. (Chairman) I-Med S.A. (Chairman) Transacciones Electrónicas S.A. (Chairman) c. Organization Structure SONDA’s organization structure is designed to assume a series of corporate functions in addition to the functions pertaining to the different business and support units. The corporate functions are oriented to the definition and implementation of strategic decisions in different areas of action, producing the generation of synergies and the alignment of the whole organization with respect to the guidelines provided by the senior management, both locally and regionally. These functions provide transversal support for the different business units and cover matters related to marketing, range of products, alliances, human resources, corporate finance and performance control. The different business units have been organized in such a way that they can respond effectively and efficiently to customer needs, having a degree of autonomy necessary for taking decisions quickly and flexibly. Incentives Plan Executive Commitee Incentives are an important factor within the organization. The Company therefore has plans for remunerating its executives in a variable way as a function of compliance with annual objectives, individual performance and contribution to achieving SONDA’s targets. page CEO 019 Board Annual Report SONDA 07 The corporate organizational structure is shown below: In addition, on October 23, 2007, the board, as agreed by the extraordinary shareholders meeting of July 4, 2006 and the board meeting of December 19, 2006, resolved to offer a group of principal executives the option to subscribe and pay for Company shares related to the capital increase agreed at that extraordinary meeting. Corporate Functions Business Units Products and Alliances Human Resources Marketing Corporate Finance and Reporting 04. Ownership Structure Ownership structure (As of December 31, 2007) RUT Shareholders 88.492.000-0 79.822.680-0 78.091.430-0 97.008.000-7 59.120.060-7 97.008.000-7 97.036.000-K 99.552.910-6 96.684.990-8 84.177.300-4 90.249.000-0 91.888.000-3 INVERSIONES PACIFICO II LTDA. INVERSIONES SANTA ISABEL LTDA. INVERSIONES ATLÁNTICO LIMITADA CITIBANK N.A. ON BEHALF OF 3RD PARTIES (foreign investors) INTERNATIONAL FINANCE CORPORATION CITIBANK N.A. ON BEHALF OF 3RD PARTIES BANCO SANTANDER CHILE. INVERSIONES TECNOLÓGICAS S.A. MONEDA S.A. AFI PIONERO INVESTMENT FUND CELFIN CAPITAL S.A. CORREDORES DE BOLSA BOLSA DE COMERCIO DE SANTIAGO BOLSA DE VALORES CIA. DE INVERSIONES TRANSOCEANICA S.A. OTHERS TOTAL Shares Percentage 302,769,600 78,854,400 73,848,000 36,278,400 35,318,400 32,636,202 28,997,795 28,279,200 13,011,000 9,780,608 9,135,691 7,607,354 113,202,611 39.33% 10.24% 9.59% 4.71% 4.58% 4.24% 3.76% 3.67% 1.69% 1.27% 1.18% 0.98% 14.70% 769,719,261 100.00% 46 US$ Annual Report SONDA 07 million was SONDA net income in year 07 Dividend Policy page 021 The shareholders meeting agrees on the amount of the dividend by a majority, unless this be for less than 30% of the net income for the year, in which case this requires unanimous approval Dividends paid per share 2005 2004 No. of shares (*) Earnings per share Dividends paid 2006 2005 2006 23,604,000 769,282,884 2007 2007 769,719,261 472.38 26.28 29.99 196.03 (1) 7.24(2) 7.88(3) Distributable Earnings ThCh$ Net income Amortization of negative goodwill Accumulated earnings (figures in pesos on the date of payment) (*) Subscribed and paid shares (1) Relates to distribution of net income for 2004, paid on April 15, 2005 (2) Relates to distribution of net income for 2005, paid on March 30, 2006 (3) Relates to distribution of net income for 2006, paid on April 30, 2007 Distributable earnings 2006 2007 21,714,578 23,084,371 (881,362) (48,213) 835,713 16,078,376 21,668,929 39,114,534 05. The Largest Latin American IT Services Network The Company SONDA is the largest Latin American Information Technology Services company. It has a base of more than 5.000 customers in nine countries, including the principal markets in the Region. Its mission is to add value to its clients by means of the best use of information technologies. Because of it, SONDA has been characterized for the strong commitment with its clients, trying to establish long-term relationships, which requires to deliver consistently services and products of quality. The Company seeks, develops and implements innovative solutions for improving the productivity of a wide range of private and public organizations, bringing technology to the people. In its more than 33 years of life, it has been the artifice of initiatives of great importance and technical complexity, such as the new Chilean system of identification, the measuring of environmental variables in Santiago, the electronic health-attention insurance contribution system, and traffic control systems in the cities of Santiago and Sao Paulo. INTEGRAL IT SOLUTIONS IT SERVICES Professional services and systems integration IT outsourcing IT management and support APPLICATIONS PLATFORMS Its annual sales amounted to US$ 539.5 million (Ch$268,093 million) in 2007 while its market capitalization as of December 31 exceeded US$ 1,000 million. SONDA has successfully expanded into Latin America through the merger and acquisition of companies, increasing market share and significantly expanding its customer base. The Company has selectively acquired more than 20 companies in nine countries since the 1980s, making it the Latin American provider with the most complete regional coverage. MARKET LEADERSHIP POSITION NEARSHORE MODEL ADVANTAGES Leader in systems integration Positioning in the top-level corporate market Brand recognition Geographical proximity Similar time zone and language Same culture Less travel Lower costs 98 540 US$ US$ million was SONDA revenues in year 07 million was the EBITDA of SONDA in year 07 SONDA is present in the three principal segments of this industry: IT Services, the segment offering the highest value added and the best growth potential; Applications, which consist of the development and commercialization of software solutions; and Platforms, which relate to the supply of technological infrastructure. Lines of Business Annual Report SONDA 07 SONDA’s offer is integral and covers IT Services, Applications and hardware and software Platforms. The Company complements its development capacities with agreements and alliances with the principal global suppliers of technology. The extensive regional coverage of its services enables it to take advantage of the knowledge and experience accumulated in each of its territories. page 023 The Company has developed the ability to export and adapt its solutions and technological services to the reality in each country, obtaining synergies in its operation and penetrating markets with large growth potential. Over the years, SONDA has managed to combine its own IT-world capacities with its knowledge of different industries and processes, allowing it to add value to the businesses of its customers and provide them with an optimum return on their investments in technology. IT Services Applications Platforms Outsourcing Software solutions Servers IT management and support Industry-specific solutions PCs Projects and systems integration Development of tailor-made software Professional services Specialized consultancy and advice Implementation, support, maintenance and updating of versions Platforms Printers Storage and back-up Communications equipment Basic software (data bases, operating systems, etc.) 33.7% of revenue growth in year 2007 History 1974 1975 / 80 1981 / 85 1986 / 90 1991 / 95 1996 / 00 2001 / 05 2006 2007 Foundation of SONDA in association with Copec Representation of Digital Equipment Corp., a successful American manufacturer in the 1980s (1978) Start of internationalization: Peru (1984) First integral outsourcing services contract (National Savings and Loans Association) Applications for AFPs (pension funds) and ISAPRES (health insurance entities) Internationalization process continues: Argentina (1986) Ecuador (1990) Applications for the banking industry Automation of horse-racing betting Uruguay (1994). Check clearing processing services Traffic control in Santiago and Sao Paulo Pension fund solutions in Argentina and Peru Colombia (2000) Launching of ERP FIN700 Mobile telephony projects in Brazil and Paraguay Brazil (2002) Costa Rica (2003) Mexico (2004) Electronic health coupons ( I-med ) Stock market listing for SONDA (November 3, 2006) Acquisition of the Brazilian company Procwork Winery solution (Kupay) Outsourcing service for Telefónica CTC Chile New Chilean identification system (Civil Registry) SONDA acquires Technical Support Division of Qualita in México Pension funds solution (Brazil) Adjudication of the state of Colombia’s procurement system Adjudication and implementation of large-scale projects in different countries, like Codelco, Pizarreño, AFT and SII in Chile, Petrobrás, Teleperformance and Redecard in Brazil, Telmex and Banamex in Mexico, and several Nigerian pension funds. and with the constant economic, Monitoring of environmental variables in Santiago Start of banking projects in Latin American countries: Bandesco in Perú political, social and cultural changes in the countries of the region. This, added to a responsible and careful management, Mobile telephony projects in Argentina Banking projects in Indonesia, Thailand and Taiwan has enabled it maintain solid growth over and above swings in the market, the industry or ownership changes, to become SAP platform service for Codelco Solutions for health providers ChileCompra Contract with Petrobrás Outsourcing for tax collections (Brazil) Livestock traceability (Uruguay) Development of the AFT project For the first time, in the third quarter the international operational revenues surpass revenues in Chile Automation of hospitals in Argentina, Colombia and Chile High-value payments clearing in the financial industry (ComBanc) Pension funds solution (Nigeria) SONDA qualifies to enter the IPSA (Chile’s selective stock price index). Successful implementation of the BIP! card, new means of payment for the Transantiago. the principal Latin American network in IT Services. Annual Report SONDA abilities both in IT development 025 been marked by its adaptation page First ERP of SONDA (SGS management system) 07 SONDA’s business record has First large systems integration project (automation of the Civil Registry) Dr. Telmex / Chile “Our experience with SONDA as one of our more important strategic partners in Chile has been of great value. To the quality of their services, one must add the agility with which they attend us and the personal and permanent contact that we have with their executives and technical support engineers. In all these years, this has added positively in our business processes”. TELMEX CHILE CHILEAN SUBSIDIARY OF ONE OF THE LEADING TELECOMMUNICATIONS COMPANIES IN LATIN AMERICA, WITH OPERATIONS IN MEXICO, ARGENTINA, BRAZIL, COLOMBIA, CHILE, URUGUAY, PERÚ AND UNITED STATES, AND ANNUAL CONSOLIDATED BILLING OVER US$16,000 MILLION. TELMEX CHILE HAS HAD REMARKABLE GROWTH AND BUSINESS DEVELOPMENT SINCE ITS ARRIVAL IN THE COUNTRY IN THE YEAR 2004. Eduardo Díaz Corona / Chief Executive Officer Telmex Chile “The experience to have SONDA as strategic partner has been of great value for us”. Subsidiaries in Latin America and Chile SONDA directly and indirectly owns 100% of its subsidiaries in Latin America. Besides, it has shareholdings in other subsidiaries related to the IT industry. SONDA S.A. Company Sonda Argentina S.A. y Filial Sonda do Brasil S.A. y Filial Sonda de Colombia S.A. Sonda Tecnologías de la Información de Costa Rica S.A. Sonda del Ecuador Ecuasonda S.A. Sonda Pissa (México) S.A. de CV. Sonda del Perú S.A. Sonda Uruguay S.A. Fonsorbes Participacoes Ltda. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% CHILE Company Acfin S.A. Bazuca Internet Partners S.A. Factoring General S.A. Fullcom S.A. I-Med S.A. y Filiales Microgeo S.A. y Filial Novis S.A. Orden S.A. y sus Filiales Puerto Norte S.A. Servibanca S.A. Servicios Educacionales Sonda S.A. Soc. Prod. y Serv. Redes Móviles Soluciones Expertas S.A. SONDA Inmobiliaria S.A. SONDA Servicios Profesionales S.A. Tecnoglobal S.A. Transacciones Electrónicas S.A. SONDA Holding 60.00% 100.00% 100.00% 97.00% 50.08% 71.17% 60.00% 100.00% 59.43% 86.75% 100.00% 90.00% 50.01% 100.00% 100.00% 100.00% 50.08% SONDA Holding 100.00% 100.00% 100.00% The executive staff have been with the Company for an average of 14 years; this reflects a broad experience and recognized reputation in the IT industry. These executives have carried out large undertakings and actively contributed to the Company’s growth and its regional expansion. SONDA’s growing presence in nine countries of the region has permitted a greater mobility of its executives and technicians, substantially improving the Company’s know-how and contributing to generating a unique corporate culture. Brazil Mexico 2,242 24.2% 10 4,910 507 5,427 58.6% 5 859 928 10.0% 665 7.2% 9,262 100,0% 64 *Opal TOTAL 22 503 140 92 7.856 1,314 % by functions Executives 1.0% 84.8% 14.2% Engineers & technicians Administration, sales & operations * Opal (other countries Latin American ) 07 Annual Report SONDA 8000 7000 6000 5000 4000 3000 2000 1,584 603 029 As of December 31, 2007, the Company has a total of 9,262 employees throughout Latin America, of which 7,856 are specialized engineers and technicians who constitute the basis of a complete and broad network of support and service for its customers. 55 Chile Total country % by country page SONDA seeks to develop in an integral manner its staff, primary basis for a good long-term relationship with customers. (as of December 31, 2007) 1000 SONDA’s human resources policy is oriented to develop people in the organization in both the professional and personal areas, as well as forming motivated and highly-productive teams. All this within a framework of a good working climate that contributes to the integral development of all its staff. Personnel 0 Human Resources Quality Management The quality management standards of SONDA are of an international level. Thanks to the permanent investment in improving the services, techniques and processes, the training and formation of its staff and the introduction of practices, methodologies and new technologies have enabled it to respond professionally and completely to the requirements of its customers. Principal Quality Credentials ISO 9001:2000 Quality management system based on processes whose focus is on continuous improvement and customer satisfaction. It is fundamental and indispensable for the Company to strengthen the development of the staff and their skills, improve productivity and work quality, pillar that generates competitive long term advantages. ITIL (IT Infrastructure Library) A combination of best practices for IT service management. SONDA’s quality management system is based on three fundamentals: PMO (Project Management Office): Quality methodology in project management. PEOPLE Constant concern for training, service attitude to customers and recognition of its staff. CMMi (Capability Maturity Model Integrated): Combination of the best practices for the development of software products. PROCESSES Incorporation of internationally-recognized mature models. TOOLS Information systems developed by SONDA that gather the broad experience of more than 30 years in the provision of IT services in Latin America. World-class credentials SONDA provides its services within high standards of quality and consistency. The Company in 2007 made constant investments that maintained these high standards and industry best practices, this being coherent with its commitment to provide quality services to its customers. The principal global IT manufacturers recognize the high levels of service quality provided by the Company to its customers. page 031 Annual Report SONDA 07 1,300 million transactions with the Bip! Card SONDA and Transantiago It is a fundamental part of SONDA’s work to undertake projects involving important technological innovation that represent long-term recurring revenues and have a positive impact on the companies or society. These were the motivations that led the Company to participate in the Transantiago project, the new public transportation system of Santiago city. In previous years, SONDA’s own abilities plus those of specific partners in the projects it undertook enabled it to acquire valuable experience in projects like the automation of traffic lights in Santiago, the modernization of the Chilean identification system or the construction and operation of the state electronic procurement portal called ChileCompra. SONDA acts as technological operator of Administrador Financiero de Transantiago (AFT), an entity formed by large local financial institutions to provide services for the new transportation plan for the capital. In its search for suppliers having the technical, organizational and financial capacities required for a project of this size, AFT chose SONDA, asking it also to take a minority stake in the company. The technological operation services contract between AFT and SONDA basically consists of: • Payments system: Includes control machines for capturing transactions with the Bip! card, tariff integration and processing in a clearing system involving the metro and the card recharging points. • Fleet Exploitation Support System (SAEF). • Technological equipping for a total (originally) of 4,515 buses, computers (or concentrators) and aerials at the bus terminals, fixed and wireless communications system, and central computers. The equipping of buses consists of sophisticated elements of which the “heart” is the on-board or MTC computer which includes GPS. • A combination of support services for the normal operation. Soon before the start-up of the new system, the authority decided to gradually increase the fleet of buses, which a few months afterwards had grown by 43%. This situation meant a large challenge for SONDA implying the generation of a technology that could accompany these uncontemplated modifications but which were necessary for progressively improving the quality of service of the public transport. In particular, at the end of the first operation period of Transantiago, very especially notable was the performance of the Bip! card, the new means of payment of the transportation system that has worked robustly, both in its use in controlling machines for recording transactions and in the sale and recharging of cards, unloading of transactions and transmission of the data to the central computers, and processing the so-called Clearing for payment to the operators. As of December 31, 2007, 1,300 million transactions had been processed, successfully passing demanding tests by external auditors. Transantiago is a unique project in the world, which integrates with a means of payment to multiple transport operators, including the metro. It is the most sophisticated and ambitious systems-integration project developed in Chile, not only for the level of investment required until now, but for all it has meant in generating a technological solution in which multiple component and various suppliers are integrated. During 2007, and despite the excellent functioning of the Bip! card, SONDA had to face innumerable difficulties, most of which were outside its scope of competence. Apart from the adjustments that any new system requires in its implementation stage, the situation of this project has been particularly amplified as a result of modifications made to the original design. In addition, SONDA had to assume a series of important tasks vital to the operation of the system and which were not included in the tender bases or contracts. These include the equipment and technological upgrading of the pay zones, the daily determination of the Program Compliance Index (ICP) requested by the Ministry of Transport and the development of a “synoptic” system for controlling fleets. Transantiago should be seen from two optical, a real one, which is the one described previously, and another media one. This last one has covered diverse political and communication spheres, in which SONDA has been treated very unfairly. Nevertheless, doubts concerning where the main responsibilities lie in the difficulties in the design and implementation of the new transport plan have been clearing over time. SONDA has placed its best skills in the development of this project, which would not have been possible to implement without the Company´s contributions. Based on this and the degree that the corrective actions being taken by the authority so that the new capital transportation plan achieves a level of service of the quality that the population expects, SONDA will once again have contributed significantly to the improvement of the quality of life of the citizens through the introduction of new technologies. 07 Annual Report SONDA in the Transantiago project which amount was mostly in software development and the acquisition of equipment, software and services for the installation and start-up of the technological system. However, for the Fleet Exploitation Support System, being an on-line system and there being a significant proportion of the fleet without onboard computers, it was impossible to perform the work foreseen in the original project. This caused it to receive unjust criticisms suggesting that the technological system was not working. 033 Between 2006 and 2007, SONDA has invested close to US$100 million page The role of SONDA is that of integrator of solutions and services, under which it chose specialized suppliers. Among the most important is Siemens, a global company with world-class credentials and a vast experience in technological systems for transport. In this situation, SONDA’s engineers managed to design and introduce complementary solutions that enabled the payments system, vital in an integrated-tariff transport system, to operate properly. These solutions included equipping the additional buses incorporated partially into the fleet with control machines but without on-board computers as the manufacturers’ delivery time for the required new equipment is around 6 months. 49 of progress of the investment plan in its first year of implementation % Investment and Finance Policies Investment Policy SONDA is continuously analyzing new investment opportunities related to the development of IT businesses, both in the countries where it is currently operating or in markets not yet explored. However, and despite SONDA having contemplated continuing its expansion strategy in Latin American markets, this should not translate into higher debt levels. Its principal investments will be financed through the use of funds generated by the business and the proceeds of the capital increase made in 2006. It is expected that an increase in revenues from the businesses under development (which in 2006 and 2007 have required greater working capital funds) will strengthen net operating cash flows. The Company uses as a basis for assessing the convenience of an acquisition the following aspects, among others: • Financial evaluation • Portfolio of customers and contracts that permit the expansion of the customer base, cross selling and recurring revenues. • Customers’ perception of the company’s services. • Capacity and commitment of the principal executives and profesionals and their willingness to remain in the organization. • Geographical presence. • Possibilities of synergy. • Management style. Finance Policy SONDA stands out from among its peers for having an effective financial flexibility related to a good funds-generation capacity, a satisfactory debt repayment structure and a balance of cash and cash equivalents at December 2007 of US$122 million. This figure includes the Company’s share in the SONDA Private Investment Fund, managed by Moneda Asset Management, whose investments are in cash, mutual funds and Chilean and foreign fixed-income securities. The principal bank loans have quarterly and semi-annual repayments of principal so the Company does not face a high concentration of debt maturities. The bank loan agreements contain covenants concerning the level of debt and net financial debt coverage to EBITDA, with which the Company is comfortably in compliance. The liabilities of SONDA with the financial system are generally taken at fixed interest rates and occasionally at floating rates. SONDA currently has a syndicated loan with the banks BCI, Estado and Security whose principal outstanding as of December 31, 2007 is UF 316,600. This loan carries a rate of TAB 180, plus a fixed spread with quarterly repayments and its remaining term to maturity is 9 months. In addition, SONDA has a loan subscribed in February 2006 for Ch$31,349 million (US$58.9 million) with the banks Santander, BCI and Estado (historic amounts). This loan has a four-year term, is peso-denominated at a fixed rate with semi-annual repayments, and its maturity is in 2010. The purpose of this loan has been to finance the acquisition of assets related to the technological operator contract with AFT (Administrador Financiero del Transantiago). The rest ofr investment decisions are taken in accordance with the corporate general investment policy which states that these should be presented by the business units in their annual operating plans. Investments outside the plan are presented and analyzed together with the corporate finance management and submitted for approval by the board. The main purpose of SONDA’s financial investments is to maintain an adequate level of surpluses for covering its short-term cash needs and these are generally made through purchases of fixed-income securities. SONDA and its subsidiaries do not participate in businesses of a speculative nature so the taking of positions in financial derivatives like forwards, futures, swaps, options or others does not form part of SONDA’s business. However, when justified, the Company may take positions in financial instruments in order to hedge its exchange or interest-rate exposures arising from its normal course of business. In any event, natural or Annual Report SONDA On the other hand, investment decisions in research and development (R&D) are related to the development of new software products, together with the evolution of the present ones and permanent updating of its professionals in the latest technologies required for the performance of their work. 035 Most of the financial debt is concentrated on the parent company and is denominated in local currency with long-term maturities and fixed interest rates. SONDA has no secured debt and its exposure as guarantor of subsidiary companies is insignificant. In recent years, the focus of SONDA’s acquisitions has been on companies whose principal business is the provision of technical support services, IT outsourcing and systems integration. page The Company has maintained a satisfactory liquidity position, with large available funds (cash and liquid assets) compared to its short-term cash needs and has therefore not needed to face the risks of refinancing significant amounts of debt. 07 Added to this, the strengthening of its equity base has enabled it to finance its investment plan without increasing its stock of financial debt. 439 US$ millon in new contracts signed in the year 07 operating hedges are always preferred. from its normal course of business. In any event, natural or operating Thousands of Customers in Latin America SONDA’s services have been characterized for their excellence and professionalism which has permitted it to maintain long-term relationships with most of its customers, which today amount to more than 5,000 in all Latin America. Sector and regional diversification has also helped it to considerably reduce its dependence on its individual sales. The 5 largest customers of SONDA generated during 2007 sales that represented just a fifth of total consolidated sales, while the 50 largest customers generated sales representing 43% of total consolidated sales. The broad spectrum of services that the Company is able to provide gives it a larger volume of potential business opportunities and long-term relations. The strong commitment with its customers and the integral offer of products and services have enabled it to cultivate relations that are shown in the high rate of contract renewals and recurrence in its sales of close to 70%. SONDA’s customers include global and Latin American companies with a strong regional presence. There is also a large number of public deals in the countries where we operate which, through competitive tenders, have been awarded to SONDA for the execution of large projects related to state modernization. SONDA sales by business sector Natural Resources 17.5% 0.0% 2.4% 1.0% 10.0% 0.9% 1.8% 3.6% Health 39.0% Manufacturing 9.6% 3.2% 2.6% 6.3% Others 1.3% 10.2% 13.2% 4.5% 19.6% 19.8% Government Financial 48,6% 19.7% 16.3% 0.8% 2.2% 20% 6.4% 14.4% 40% 12.0% 29.7% 60% 42.0% 80% Commercial 100% 10.2% 22.2% 8.9% Telecommunications (as of December 2007) 0% Chile Brazil Mexico OPAL 65 % SONDA also reaches occasional agreements with technological leaders, depending on the particularities of the projects in question, seeking the best supplier for each need. SONDA has signed such agreements with manufacturers like Microsoft, HP, IBM, SAP, Cisco, Autodesk, Intel Oracle, Sun, Symbol, Siemens, De la Rue and Montran. 29.4% 19.5% Commercial Financial 13.1% Manufacturing 11.4% Government 7.6% 5.6% 3.3% 10.1% 100% 80% 60% 40% 20% 0% Consolidated Telecommunications Natural Resources Health Others *Approximate figures 037 SONDA has long-term commercial and collaboration agreements with the world’s principal technological suppliers. Through these, the Company is kept up to date in the state of the art in IT and in its incorporation and use in different industries, and has access to the latest innovations and trends. Apart from the regular updating of its offer of products and services, these relations give it expedite access to specialized high-level support in different technological platforms. page Business Alliances Annual Report SONDA 07 increased the volume of new contracts signed in year 07 06. The Information Technology Industry Information Technology (IT) industry has been highly important in the modernization and efficiency of all sectors of society. The mass introduction of these tools has strongly affected the structure and dynamics of economic and social processes, redefining the ways of producing, selling and competing in practically all the productive sectors of goods and services. It has also influenced the education, interaction and communication between people and entities in society, and in all government actions. Now nobody can remain outside the incorporation and use of new technologies. The benefits it brings are extremely relevant. Among others, it increases the production and quality of goods and services, enlarges the productivity and competitiveness, creates new business opportunities, facilitates communications, permits equal access to information and knowledge, and contributes to raise the quality of life of the people. Overall, Latin America invested more than US$ 51,000 millon during 2007, 23.2% more than in 2006. Of this, 74% came from the private business sector, 19% from the residential sector and 7% from the public sector. In the particular case of Chile, IT investment grew by 21.6% in 2007 to US$ 2,688 millon. This growth was greater than that of national Gross Domestic Product (GDP) in the same period, thus showing the important activity of the sector in recent times and its relative importance in the local economy. An even more positive scenario is expected for 2008. According to IDC, IT expenditure in Latin America will reach US$ 57,660 million, showing a 12.8% of increase over 2007. Japan USA Europe GDP per capital (US$) As the development level increases, a greater investment in IT services and solutions takes place. In less than ten years, Latin America has become the second-fastest growing region in the world of IT, after Eastern Europe, with significant increases in the services segments, particularly IT outsourcing and professional services. Brazil and Mexico are the leaders, with investments of around US$23,500 million and US$ 11,300 million respectively. Technological Solutions Penetration Mexico Chile Latin America 0,5% 1,0% 1,5% Brazil 2,0% 2,5% Source: IDC (International Data Corporation ) and World Bank 2005 3,0% 3,5% 07 SOFTWARE OR APPLICATIONS: This is oriented to Software Solutions development and services. Includes software solutions development to order, implementation, support, maintenance and updating of versions. USA Europe 43% Applications 25% 32% 35% 41% 45% 20% Japan 41% 46% 53% 34% 39% 15% 18% Brazil Chile Mexico 53% Platforms Source: IDC 2005 0% 13% 20% 27% 40% 31% 60% 16% 80% 12% Composition of IT spending IT Services 60% 100% Asia Pacific PLATFORMS: Relates to hardware and software technological infrastructure. This includes servers, PCs, printers, storage and back-up equipment, communications equipment and base software (data bases, operating systems, etc.), among others. Annual Report SONDA IT SERVICES: This covers a wide range of options including externalization or outsourcing of services, IT management and support, projects and systems integration, professional services and consulting. It is the fastest-growing area globally and in which technology companies can add greater value for the customer 039 The IT industry is divided into three large segments: page Information Technology Market Engineer Ricardo Cano Baltazar / Administration and IT Control Manager “SONDA gives us confidence”. Minera México / México “Our users are located in very remote regions of Mexico. We have trusted in SONDA to provide us with On-site support services, obtaining high levels of satisfaction thanks to the solidity of their capacities and to their flexibility to attend our requests”. MINERA MÉXICO GRUPO MEXICO IS AN IMPORTANT PLAYER IN THE WORLD MINING INDUSTRY AND IS AMONG THE MOST IMPORTANT COMPANIES OF MEXICO, PERU AND UNITED STATES. CONSOLIDATED SALES REACHED US$7,087 MILLION AT THE END OF 2007. MINERA MÉXICO - BELONGING TO GRUPO MÉXICO - PRODUCES COPPER, ZINC, SILVER, GOLD AND MOLYBDENUM, AND IS THE LARGEST MINING COMPANY IN THE COUNTRY. ITS OPERATIONS ARE DISTRIBUTED IN VARIOUS LOCATIONS IN EACH OF THESE THREE COUNTRIES. 07. Results 2007 General Results In a year that ended in the middle of uncertainties caused by the fluctuations in the global economy, fears of recession in the United States and inflationary pressures in several Latin American countries, SONDA has shown once again its ability to continue adding value for its shareholders, growing profitably regionally and generating positive financial results. From the point of view of our investment plan, 2007 was notable for the acquisition of Procwork in Brazil. With this, our presence in the largest IT market in the region has been strengthened and enabled us to become one of the leading technology companies in that country. The acquisition has also brought complementary skills and experiences regionally, increasing cross-selling opportunities, adding a base of over 700 new customers and incorporating a team of more than 3,600 new highly-qualified professionals. During the second half of 2007, we worked in integrating Procwork into the rest of our regional operations. During those months we have been implementing various synergies that this acquisition provides to our operations, in Brazil and in the rest of Latin America, and we have successfully concluded the integration of all the administrative, financial, marketing and human resources functions, internal systems and IT infrastructure. The investment in Procwork is without doubt one of the most significant events in our 33 years in business and enables us to view the near future with great optimism. Our operations in the rest of Latin America were marked by a regional spreading out of our services network as we have never had before, with a permanent interaction between our different business units, a corporate management acting as a constant link and with transversal businesses to several countries that enable us to best take advantage of our ample regional coverage. The Company has therefore been able to strengthen its competitive position in the region. By the end of the year, sales coming from outside Chile increased their relative weight in the consolidated sales from 34.3% in 2006 to 42.2% in 2007, after a third quarter in which over 50% of sales came from outside Chile. This change is an important step that symbolizes substantial progress with our strategic plan set in late 2006. Relation with our customers have also benefited in this process of regional consolidation. Customers sharing the same regional presence as SONDA can now therefore interact directly with us through just one Consolidated Net Income of SONDA 2004-2007 (figures in millions of constant Ch$ as of Dec 31. 2007) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 R: CAG 10,513 5.9% 2004 30.0 % 21,715 12,227 10.8% 23,084 8.6% 6.1% 2005 2006 Net margin CAGR annual growth 2007 Consolidated EBITDA 2004-2007 (figures in millions of constant Ch$ as of Dec 31. 2007) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 R: CAG 27,508 2.1 % 31,813 15.4% 15.9% 2004 2005 48,834 35,116 17.5% 2006 18.2% 2007 EBITDA margin CAGR annual growth With an increase of 65.0% over 2006, the new agreements signed during 2007 totaled US$ 439.3 million, including IT Services contracts of up to 8 years. The signing of contracts and agreements with large customers like Petrobrás, IBM, Redecard, Sadia, Teleperformance and Embraer in Brazil; Red Uno, Banamex and Citi Info in Mexico; Codelco, IANSA and SII in Chile, among many others, demonstrate SONDA’s good position today to continue growing during the coming years. At the regional level, in Chile we signed agreements for US$ 155.1 in 2007, in Brazil for US$ 192.2 million, in Mexico for US$ 50.2 million, and in the rest of Latin America for US$ 41.8 million. On the other hand, IT Services business has continued to increase its share of the Company’s total sales, as a result of the growth strategy focused on this business segment. This business has progressed from 07 SONDA’s sales by country 6.6% Mexico 8.1% OPAL 57.8% Chile 27.5% Brazil Annual Report SONDA The non-operating result was a loss of Ch$1,808 million (US$3.6 million) largely explained by two factors: (a) a higher charge for price-level restatements which amounted to Ch$4,875 million (US$ 9.8 million) due to the high levels of inflation in 2007, and (b) a extraordinary net charge of Ch$3,542 million (US$7.1 million) basically arising from provisions that reflect the effects of a probable settlement to resolve the differences with the AFT. page contact point, obtaining agile and efficient responses and at a fair price. Similarly, our local customers know that they have an organization of more than 9,000 professionals, who accompanies them and supports their own plans for regional growth, and they can rely on us in meeting new challenges. Our most important customers continue trusting in SONDA as their principal technology partner, and this is demonstrated also by the large volume of new contracts and agreements that we signed during 2007. In terms of financial results, SONDA and its subsidiaries produced consolidated sales of Ch$268,093 million (US$539.5 million) in 2007, 33.7% higher than in 2006 and reflecting growth in all the lines of business, especially IT Services. This positively affected operating and EBITDA which rose by 40.8% and 39.1% respectively compared to 2006, Ch$30,757 million (US$61.9 million) and Ch$48,834 million (US$98.3 million) in each case. 043 representing 60.0% of total sales in 2006 to 63.0% in 2007. We have obtained positive results in Chile, Brazil, Mexico, Colombia and Uruguay, both in terms of increased sales and EBITDA margins and the larger relative share in the mix of products and services. However, the improved operating income enabled the net income for 2007 to reach Ch$23,084 million (US$46.5 million), an increase of 6.3% over 2006. Distribution of sales by business sector Platforms Applications 40% IT Services In terms of margins, we obtained 20.6% at the gross level, 11.5% at the operating level and 18.2% at the EBITDA level, the last two-named improvements over 2006 as a result of operational improvements. 30% 36.3% 32.2% 31.7% 27.8% 20% 8.5% 9.6% 8.4% 9.2% 10% 55.2% 58.2% 60.0% 63.0% 0 2004 2005 2006 2007 • Current liquidity, being the ratio of current assets to current liabilities, declined from 3.81:1 to 2.21:1 due to the use of funds to finance the acquisition of Procwork. 2007 • The acid test ratio, being available funds to current liabilities, fell from 2.46:1 to 1.60:1 for the same reason explained above. 2004 2005 2006 (figures in millions of constant Ch$ as of Dec 31. 2007) Sales 178,170 199,800 200,582 268,093 Platforms 64,644 64,278 63,500 74,414 IT Services 98,307 116,315 120,326 168,979 Applications 15,219 19,208 16,756 24,700 The principal liquidity, debt and profitability indicators moved as follows between 2006 and 2007: • The annualized return on average total assets changed from 8.3% to 6.8%, while the annualized return on average operating assets rose from 47.0% to 54.9%. 07 Annual Report SONDA • The return on average equity changed from 12.9% to 9.7%, mainly due to the larger average equity following the capital increase made in November 2006. 045 • The proportion of long-term debt to total debt moved from 0.42:1 to 0.24:1. As a result of the large volumes of share trading during 2007, SONDA became part of the IPSA (selective Santiago Stock Exchange stock price index) for 2008, which comprises the 40 most traded companies on the local market, with more than US$200 million in market capitalization. page • The total debt ratio, being the ratio of current and long-term liabilities to shareholders’ equity, moved from 0.41:1 to 0.44:1. a. Results in Chile SONDA is leader in the information technologies and systems integration industry in Chile, and one of the most important in the region. It has a market share of close to 26% in IT Services, with a broad, well-spread and diversified customer base. Its sales are generated by three business areas: information technology services, platforms and software applications. The most important business is that of IT Services which generated sales in 2007 of Ch$ 87,950 million (US$ 177.0 million). Next in importance is the Platforms line which produced Ch$ 57,564 million (US$ 115.8 million), while sales of Applications amounted to Ch$ 9,341 million (US$ 18.8 million). Sales by Business Segments in Chile (figures in millions of constant Ch$ as of December 31, 2007) 6.0% Applications 9,341 56.8% IT Services 87,951 37.2% TOTAL: 154,857 Platforms 57,564 Total sales amounted to Ch$ 154,857 million (US$ 311.7 million), 17.8% higher than in 2006. This was the result of larger sales in the IT Services businesses, specifically IT outsourcing. siness in 2007 signed deals for more than US$ 155 million, especially notable being those with Codelco, Pizarreño, Iansa and the Internal Revenue Service (SII), among others. Operating income reached Ch$22,341 million (US$ 45.0 million), with an operating margin of 14.4%, mainly explained by the increase in the relative share of its higher value-added businesses, by improved margins from its product lines and the optimization of the use of installed capacity. Interesting business opportunities are foreseen in the different areas where the Company conducts businesses in Chile. These include new outsourcing projects and the externalization of technological infrastructure support, the development of biometric services and new businesses in the health sector. Similarly, we are continuing to explore from Chile other new markets like Central America. EBITDA produced by the operations in Chile showed a rise of 32.3% over 2006 and totaled Ch$ 37,239 million (US$ 74.9 million). The EBITDA margin in 2007 increased by 260 basis points with respect to 2006, and reached 24.0% (21.4% in 2006). Overall, the Chilean market represented 57% of consolidated sales and 76% of Ebitda. From a commercial point of view, the Chilean bu- Sales by business sector in Chile 10.2% Others 2.6% Manufacturing 19.7% Financial 4.5% Telecommunications 42.0% Commercial 3.6% Health 1.0% Natural Resources 16.3% Government Sales in Chile EBITDA in Chile (figures in millions of constant Ch$ as of December 31, 2007) (figures in millions of constant Ch$ as of December 31, 2007) 123,781 100,000 2004 2005 2006 2007 27,164 28,146 22,868 18.5% 24.0% 19.2% 21.4% EBITDA Margin 07 120,000 131,482 37,239 2004 2005 2006 2007 Annual Report SONDA 141,254 140,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 047 154,857 page 160,000 b. Results in Brazil SONDA fulfilled its objective during the year to strengthen its presence in Brazil, the largest IT market in Latin America, following the acquisition for US$ 118 million of the Brazilian company Procwork, leader in the provision of information technology and consulting services. The transaction was financed whit cash, mainly from the proceeds of the Company´s stock offering in 2006. Sales by business sector in Brazil 13.2% Others This acquisition enabled SONDA to incorporate a broad business platform 39.0% Manufacturing and a customer base comprising the most varied industries, including two out of three of the 100 largest companies in Brazil. 12.0% Financial Procwork offers a wide range of IT outsourcing, systems integration, consulting and software development services, plus an important range of own software application products. The company is also one of the principal integrators of SAP in Brazil and has been recognized and praised by that company with its Awards of Excellence over the last seven years. Procwork currently has more than 1,500 SAP specialists who have so far completed over 360 integration projects. 10.2% Telecommunications 6.4% Commercial 0.9% Health 17.5% Natural Resources 0.8% Government Brazil is the principal IT market in Latin America, which translates into some US$ 23,500 million annually with an expected growth rate of13.2% for the period 2007-2011, according to IDC figures. SONDA has had a presence in that country since 2002 but the acquisition of Procwork makes it one of the largest IT Services companies in Brazil, offering a complete range of services to a top-level customer base. The year was marked by the consolidation and integration of SONDA’s operations in that country, carrying out a series of activities for taking advantage of multiple synergies and strengthening the range of products and services. 1 2 During the year, the Brazilian market represented 28% of the Company’s consolidated sales, making it the second most important after Chile but with a very high potential for becoming number one. Sales in Brazil in 2007 amounted to US$ 148.4 million and EBITDA was US$ 15.5 million. The company signed deals for more than US$ 192 million, notable being those with Petrobrás, Redecard, Embraer, Teleperformance and Sadia, basically for IT Services. 3 5 8 4 6 9 7 10 44 % % of SONDA new contracts were closed in Brazil in year 07 SONDA in Brazil is expected to generate large profits in the next few years from cross selling to more than 700 active customers of Procwork and the 50 that SONDA had previously. Only five of SONDA original customers in Brazil have contracts with Procwork so there is a lot of scope for cross selling, besides synergies generated and reductions in operating costs. EBITDA in Brazil (figures in millions of constant Ch$ as of December 31, 2007) 6,696 2,548 9.9% 1,953 6.8% 2004 2005 2,680 8.6% 9.1% 2006 2007 EBITDA margin SONDA currently has a team of around 5,000 specialists in Brazil which enables it to cover the principal cities in that country offering world-class services. 07 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Sales by business segments Sales in Brazil (figures in millions of constant Ch$ as of December 31, 2007) (figures in millions of constant Ch$ as of December 31, 2007) Applications 13,447 80.7% IT Services 59,521 1.1% TOTAL: 73,751 1 CARLOS FRANCA (Director of Business Development) Platforms 784 6 FEDERICO GUEDES MONTEIRO VILHENA VILAR (Director of SAP Sales) 2 DANIEL SILVA (Director of Finance and Administration) 3 FLAVIO BORGES (Director of IT Sales) 4 MARCOS AVINO 5 (Director of Business Solutions and Infrastructure) RONEY LEONI MACHADO (Director of International Business) 7 CARLOS KAZUO TOMOMITSU (Director of SAP & IT Solutions) 8 LUIZ CARLOS U. FELIPPE (President) 9 LUISA NARIMATSU (Manager of Human Resources) 10 CARLOS HENRIQUE TESTOLINI (COO) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 73,751 page 18.2% Annual Report SONDA of SONDA professionals speaks portuguese as their first language 049 59 25,697 28,532 2004 2005 31,026 2006 2007 859 professionals to serve its clients in Mexico, the second most important market in Latin America c. Results in Mexico Sales by business sector in Mexico 48.6% Financial EBITDA in Mexico (figures in millions of constant Ch$ as of December 31, 2007) 2.000 1,912 1.500 1.000 500 22.2% Telecommunications 14.4% Commerce 1.8% Health 0 10.9% 899 214 231 2.7% 2.3% 2004 2005 5.8% 2006 2007 2.2% Government 1.3% Others EBITDA margin 9.6% Manufacturing Mexico is the second largest IT market in Latin America, with estimated growth for the period 2007-2011 of 11,6%. This translates into an annual investment of more than US$ 11,300 million, comparing positively with various nations in the developed world. Sales by business segments (figures in millions of constant Ch$ as of December 31, 2007) 0.1% Applications SONDA began operations in Mexico in 2004 and, although its market share is still low, it already has more than 100 customers from the most diverse industries and is placed among the 10 most important IT services integrators in the country. Conditions in Mexico are however propitious for the Company’s growth, above all because we are opening an interesting business niche in outsourcing and administrative services following the decree of austerity issued recently by the federal government. 11 72.0% IT Services 12,661 27.9% TOTAL: 17,576 Platforms 4,904 The principal products and services in SONDA’s portfolio in Mexico are outsourcing and integration services, infrastructure support services, software licensing for IBM and Microsoft mainframes and the provision of computer equipment and communications devices. SONDA has a team of nearly 900 specialized employees in the country and a wide geographical coverage. Sales growth was also accompanied by an improvement in margins which permitted operating income to reach US$ 3.4 million. Mexico represented 7% of the Company’s consolidated sales, being one of the markets of greatest potential growth in the region. Sales in 2007 amounted to US$ 35.4 million while EBITDA reached US$ 3.8 million. During the year, SONDA in Mexico signed deals for more than US$ 50 million, remarkably those with Consorcio Red Uno (Telmex), CitibankBanamex and Omnilife, among others. Sales in Mexico (figures in millions of constant Ch$ as of December 31, 2007) 20,000 17,576 15,499 15,000 10,000 9,949 7,878 2005 2006 Annual Report SONDA 2004 2007 page 051 0 07 5,000 4 1 1 JUAN JOSÉ SILVA GÓMEZ PORTUGAL (Director of IT Support Services) 4 FRANCISCO FERRER ARREOLA (Director of Human Resources) 2 2 ALBERTO MERINO POHL (Director of Operations) 5 FELIPE MATTA NAVARRO (Director of Finance) 5 3 3 GUIDO CAMACHO GARCÍA (Chief Executive Officer) d. Results in OPAL (Others) URUGUAY ARGENTINA GLADYS TANCO (Project Manager) GUILLERMO LIZAMA (Controller) MARCELA VARELA (CFO) GERARDO CRUZ CIRONI (Chief Executive Officer) WALTER ALPUIN (IT Services Manager) JOSÉ GARCÍA (CFO) CARLOS ÁLVAREZ (Commercial Manager) ROBERTO GONZÁLEZ (Technical Support Manager) JORGE OPALND (Manager of Technological Development) GABRIEL MORA (Project and Systems Integration Manager) GERARDO CRUZ CIRONI (Chief Executive Officer) GUSTAVO MANFREDI (Commercial Manager) ALFREDO CACHAFEIRO (Integration and Outsourcing Manager) JORGE DE LA CALLE (Commercial Manager) 1,600 SAP consultants in SONDA across Latin America During the year 2007, this region showed important growth in new business volumes, signing deals and agreements for close to US$ 42 million, fundamentally in Platforms and IT Services. OPAL sales amounted to US$ 44.1 million. There were also positive results in operating income and EBITDA, driven by the businesses in Colombia, Uruguay and Costa Rica. These reached US$ 3.6 million and US$ 6.0 million respectively and providing an operating margin of 8.1% and an EBITDA margin of 13.6%. Sales by business sector in OPAL page 3.2% Manufacturing 053 Annual Report SONDA 07 SONDA’s technological services extend to another six Latin American countries (OPAL). These are Argentina, Colombia, Costa Rica, Ecuador, Peru and Uruguay. These are markets in which the Company has a relevant presence and where the estimated investment in IT is US$ 13,560 million annually, with an 10,8% increase for the period 2007-2011. 19.6% Financial 8.9% Telecommunications COLOMBIA 29.7% Commerce 10.0% Health 2.4% Natural Resources JORGE ANDRADE (Chief Executive Officer) LILIANA BENAVIDES (Financial Sector Manager) PATRICIO RIQUELME (Health Sector Manager) YESID SANTAMARÍA (CFO) JULIÁN MILLÁN (Industrial and Technical Processes Manager) 19.8% Government 6.3% Others EBITDA in OPAL (figures in millions of constant Ch$ as of December 31, 2007) 4,000 3,391 3,000 2,000 1,000 2,465 1,878 2,987 15.0% 13.6% 12.3% 9.0% EBITDA margin 0 2004 2005 2006 2007 Sales by business segments in OPAL (figures in millions of constant Ch$ as of December 31, 2007) 50.9% Platforms 11,162 8.7% Applications 1,900 40.4% IT Services 8,846 TOTAL: 21,908 ECUADOR Sales in OPAL (figures in millions of constant Ch$ as of December 31, 2007) 24,000 22,000 22,574 20,815 21,908 VLADIMIR VÁSQUEZ (CFO) 20,065 20,000 LUIS SÁNCHEZ (IT Services Manager) PATRICIO REAL (Software Applications Manager) FABIÁN MENA (Chief Executive Officer) DIEGO BURGOS (Outsourcing Projects Manager) 18,000 0 2004 2005 2006 2007 07 Annual Report SONDA 055 page COSTA RICA JULIO ARIAS (CFO) XINIA BARQUERO (Sales Manager) ALLAN OBANDO (IT Services Manager) EDUARDO SANDOVAL (Chief Executive Officer) PERÚ MIGUEL ANGEL GUERRERO (Chief Executive Officer) JOSÉ ANTONIO OLIVERA (IT Solutions Manager) ANDRÉS CERDA (IT Solutions Manager) JUAN MANUEL VEGA (IT Services Manager) Dr. Hospital Fundación Santa Fe / Bogotá Colombia “Since we hired SONDA’s integral outsourcing information technology services, we have achieved very important improvements in the support to the practices of the business. The excellent technological operation that we have, is one of the pillars of the development of our University Hospital”. HOSPITAL FUNDACIÓN SANTA FÉ DE BOGOTÁ THE HOSPITAL FUNDACIÓN SANTA FÉ DE BOGOTÁ, WITH 25 YEARS OF SERVICE, IS ONE OF THE MOST RECOGNIZED HEALTH INSTITUTIONS IN COLOMBIA. IT EMPHASIZES FOR ITS TECHNICAL-SCIENTIFIC ADVANCES, HIGH QUALITY IN THE MEDICAL ATTENTION, LAST TECHNOLOGY, AND A MEDICAL BODY WITH TOP-LEVEL SPECIALISTS AND RIGOROUSLY SELECTED. ITS STRATEGY OF SAFE MEDICAL ATTENTION IS PIONEER IN THE REGION. Dr. Roberto Esguerra / Foundation Director “Our technological decisions are fundamental for growth”. 12.8 % is the projected growth that IDC expects for IT industry in Latin America in the year 2008 Prospects for 2008 Following years of recovery and accelerated growth, it is expected that the technological markets of Latin America will show signs of greater maturity in 2008. According to IDC, the scenario for the IT industry in Latin America is seen as positive despite a possible deceleration in the United States economy. The firm foresees Latin American IT spending to reach US$ 57.660 million in 2008, which would mean an increase of 12.8% over 2007, making it one of the fastest growing in the world. This is especially relevant for SONDA, the principal Latin American company in the provision of IT services, with a presence in nine countries, sales of US$ 540 million and an investment plan of US$ 350 million in full development. The acquisition of Procwork in Brazil represented the starting point of the investment plan set for the Company in 2006 in order to consolidate its regional presence, broadening its offer of products and services, developing large integration projects and acquiring IT companies in the most important markets in Latin America. With the acquisition of Procwork, SONDA has completed 49% of its objective, managing to strengthen its regional role, significantly expanding its customer base and increasing the opportunities for the cross selling of services. The Company also met its objective of increasing the share of business outside Chile. In the second half of 2007, Mexico, Brazil and the rest of the countries in Latin America accounted for almost 50% of SONDA’s total sales. For the future, SONDA will continue with its acquisitions plan, especially focused on Brazil, Colombia and Mexico. For 2008, SONDA expects significant growth in its sales and EBITDA due to the high volume of new contracts signed in 2007, the consolidation of the business of Procwork and the new acquisitions. 40 Annual Report SONDA 059 page 08 07 The most traded companies in Chile conform the IPSA, to which SONDA became part in the year 2008 08. The Company and its Subsidiaries Name: SONDA S.A. TAX Nº 83.628.100-4 Type of entity: Open corporation Securities registration: Nº 950 External auditors: Deloitte & Touche Sociedad de Auditores y Consultores Ltda. Address: Teatinos 500 Telephone: 657-5000 Fax: 657-5410 Web site: www.SONDA.com Constitution Documents SONDA S.A. was constituted as a limited partnership by public deed dated October 30, 1974, before the Santiago notary, Herman Chadwick Valdés. An extract of this deed was registered (folio 11,312 number 6,199) in the Santiago Trade Register for 1974 and published in the Official Gazette on December 28 that year. By public deed dated September 16, 1991, signed before the Santiago notary Humberto Quezada Moreno, whose extract was registered (folio 28,201 No.14,276) in the Santiago Trade Register for 1991 and published in the Official Gazette on September 24, 1991, the company was transformed into a corporation. Following this transformation, the Company’s bylaws were amended, its present text being in public deed dated July 4, 2006 signed before the Santiago notary, René Benavente Cash, whose extract was registered (folio 27,555 No.19,250) in the Santiago Trade Register for 2006 and published in the Official Gazette on July 17, 2006. Information on Subsidiaries Acts and Contracts · As of December 31, 2007 there were no acts or contracts with subsidiary or associate companies that significantly affect the operations and results of the Parent company. Commercial Relations with Subsidiaries · These mainly refer to IT Services such as Datacenter and support services and technological infrastructure maintenance. The trading relations of the subsidiaries are principally and basically with parties other than SONDA S.A. or its subsidiaries. 478 US$ SONDA SERVICIOS PROFESIONALES S.A. SUBSCRIBED & PAID CAPITAL ThCh$11,644 NO. OF SHARE SUBSCRIBED & PAID 3,901 OBJECTS The provision of services in design, development, introduction, implementation, support, adaptation and maintenance of software; advisory and consultancy services relating to data processing and in general activities in the data and communications areas. STRUCTURE OF THE COMPANY Associate companies: SONDA Costa Rica S.A. with 0.10% shareholding (direct) / SONDA Ecuador S.A. 0.01% shareholding (direct), SONDA Perú S.A., 24.00% holding (direct) / SONDA Colombia S.A. 0.0001% holding (direct), SONDA Inmobiliaria S.A. 0.0001% holding (direct) / Factoring General S.A. 0.01% holding (direct), Orden S.A. 4.32% holding (direct) / Bazuca Internet Partners S.A. 0.01% holding (direct), SONDA Argentina S.A. 5% holding (direct) / Fonsorbes Participacoes Ltda. (Brazil) 0.0001% holding (direct) / SONDA Pissa S.A. de C.V. (Mexico) 0.0004% holding (direct). CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Pablo Navarro Haeussler (Director of SONDA S.A.) / Mario Pavón Robinsón (Director of SONDA S.A.) Rafael Osorio Peña (Executive of SONDA S.A.) CHIEF EXECUTIVE Raúl Véjar Olea (Chief Executive of SONDA S.A.) PROPORTION OF PARENT COMPANY’S ASSETS 0.12% PARENT COMPANY’S HOLDING IN THE COMPANY 99.99 % 02 COMPANY SONDA INMOBILIARIA S.A. SUBSCRIBED & PAID CAPITAL ThCh$ 302,161 No. SHARES SUBSCRIBED AND PAID 1,025,000 OBJECTS Acquire, dispose of and exploit all kinds of real estate. STRUCTURE OF THE COMPANY Associate companies: Inversiones Valparaíso S.A. 33.33% shareholding (direct) / SONDA Colombia S.A. 0.01% holding (direct) / Tecnoglobal S.A. 0.01% holding (direct) CHAIRMAN OF THE BOARD Pablo Navarro Haeussler (Director of SONDA S.A.) DIRECTORS Rafael Osorio Peña (Executive of SONDA S.A.) Mario Pavón Robinson (Director of SONDA S.A.) CHIEF EXECUTIVE Alvaro Pérez Frugone PROPORTION OF PARENT COMPANY’S ASSETS 1.33% PARENT COMPANY’S HOLDING IN THE COMPANY 99.99 % 061 COMPANY page 01 Annual Report SONDA 07 million reached shareholders equity book value in year 07 03 COMPANY TECNOGLOBAL S.A. SUBSCRIBED AND PAID CAPITAL ThCh$6,7 6,985 No. SHARES SUBSCRIBED AND PAID 130,000,000 OBJECTS Distribute and sell all kinds of electronic, communications and computer equipment, and software. STRUCTURE OF THE COMPANY Associate: SONDA Colombia with shareholding of 0.01% Direct CHAIRMAN OF THE BOARD Octavio Gómez Cobo (Executive of SONDA S.A.) DIRECTORS Pablo Navarro Haeussler (Director of SONDA S.A.) / Rafael Osorio Peña (Executive of SONDA S.A.) Mario Pavón Robinson (Director of SONDA S.A.) CHIEF EXECUTIVE Raul Sapunar Kovacic PROPORTION OF PARENT COMPANY’S ASSETS 2.78% PARENT COMPANY’S HOLDING IN THE COMPANY 9.99 % 04 COMPANY ORDEN S.A. SUBSCRIBED AND PAID CAPITAL ThCh$1.59 1.210 No. SHARES SUBSCRIBED AND PAID 74,000 OBJECTS The provision of all kinds of computer, processing and data ordering services, development and exploitation of software and application systems. STRUCTURE OF THE COMPANY Subsidiary: SONDA Tecnologías de Información de Costa Rica S.A. holding 99.90% (direct) Subsidiary: Westham S.A. de C.V. (Mexico) 99.99 % (direct) Subsidiary: Soc. Proveedora de Productos y Servicios por redes de Datos Móviles S.A., holding 90% (direct) Asóciate: SONDA de Colombia S.A. holding 21.16% (direct) CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Presidente de SONDA S.A.) DIRECTORS Octavio Gómez Cobo (Executive of SONDA S.A.) / Raúl Vejar Olea (Chief Executive of SONDA S.A.), Mario Pavón Robinson (Director of SONDA S.A.) / Rafael Osorio Peña (Executive of SONDA S.A.) CHIEF EXECUTIVE Alvaro Pérez Frugone PROPORTION OF PARENT COMPANY’S ASSETS 0.29% PARENT COMPANY’S HOLDING IN THE COMPANY 95.68% 05 COMPANY SERVICIOS EDUCACIONALES SONDA S.A. SUBSCRIBED AND PAID CAPITAL ThCh$383,268 No. SHARES SUBSCRIBED AND PAID 1,483,680 OBJECTS Provide occupational and educational training in all its methods, principally in the area of computers and data processing. STRUCTURE OF THE COMPANY Associate: Servicios Profesionales SONDA S.A., 0.08% direct holding. CHAIRMAN OF THE BOARD Octavio Gómez Cobo (Executive of SONDA S.A.) DIRECTORS Pablo Navarro Haeussler (Director of SONDA S.A.) / Rafael Osorio Peña (Executive of SONDA S.A.), Alberto Merino Pohl (Executive of SONDA S.A.) CHIEF EXECUTIVE Horacio Gerardo Nazif Ojeda PROPORTION OF PARENT COMPANY’S ASSETS 0.15% PARENT COMPANY’S HOLDING IN THE COMPANY 9.33% 06 COMPANY FACTORING GENERAL S.A SUBSCRIBED AND PAID CAPITAL ThCh$24,271 No. SHARES SUBSCRIBED AND PAID 330 OBJECTS The purchase of accounts receivable documented with invoices, bills of exchange, promissory notes, and other documents; provision of administration, market survey, commercial information investigation and advisory services in general; administer investments and receive their returns; provision of simple, pre-judicial and judicial collection services. CHAIRMAN OF THE BOARD Rafael Osorio Peña (Executive of SONDA S.A.) DIRECTORS Pablo Navarro Haeussler (Director of SONDA S.A.) / Daniel Silva Silva (Executive of SONDA S.A) CHIEF EXECUTIVE Germán Muñoz Escudero PROPORTION OF PARENT COMPANY’S ASSETS 0.01% SERVIBANCA S.A. ThCh$1,058,237 No. SHARES SUBSCRIBED AND PAID 1,200 OBJECTS Provision of professional, technical, computer and/or training services. STRUCTURE OF THE COMPANY Associate: Procesos & Canjes S.A., 50% direct holding. CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Mario Pavón Robinson (Director of SONDA S.A.) / Pablo Navarro Haeussler (Director of SONDA S.A.) Raúl Vejar Olea (Gerente General de SONDA S.A.) / Rafael Osorio Peña (Ejecutivo de SONDA S.A.) Octavio Gómez Cobo (Ejecutivo de SONDA S.A.) / Jaime Bellolio Rodríguez CHIEF EXECUTIVE Cristián Zegers Reyes PROPORTION OF PARENT COMPANY’S ASSETS 1.46% PARENT COMPANY’S HOLDING IN THE COMPANY 86.75 % 08 COMPANY MICROGEO S.A. SUBSCRIBED AND PAID CAPITAL ThCh$1,795,681 No. SHARES SUBSCRIBED AND PAID 1,790 OBJECTS The rental, import export, distribution and sale of all kinds of computer equipment, elements and accessories, software, supplies and periphery equipment; the provision of advisory and training services to third parties. STRUCTURE OF THE COMPANY Subsidiary: Microgeo LLC, USA, 70% holding (direct). CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Pablo Navarro Haeussler (Director of SONDA S.A.) / Mario Pavón Robinson (Director of SONDA S.A.), Rafaél Osorio Peña (Executive of SONDA S.A.) / Robert Richter Stein CHIEF EXECUTIVE Stefano Sigala Romele PROPORTION OF PARENT COMPANY’S ASSETS 0.49% PARENT COMPANY’S HOLDING IN THE COMPANY 71.17% 063 COMPANY SUBSCRIBED AND PAID CAPITAL page 07 Annual Report SONDA 07 PARENT COMPANY’S HOLDING IN THE COMPANY 97.06% 09 COMPANY FULLCOM S.A. SUBSCRIBED AND PAID CAPITAL ThCh$678,275 No. SHARES SUBSCRIBED AND PAID 333 OBJECTS Telecommunications services CHAIRMAN OF THE BOARD Andrés Navarro Hauessler (Chairman of SONDA S.A.) DIRECTORS Rafael Osorio Peña (Executive of SONDA S.A.) / Francisco Díaz Muñoz CHIEF EXECUTIVE Francisco Díaz Muñoz PROPORTION OF PARENT COMPANY’S ASSETS 0.07% PARENT COMPANY’S HOLDING IN THE COMPANY 97.00% 10 COMPANY TRANSACCIONES ELECTRONICAS S.A. SUBSCRIBED AND PAID CAPITAL ThCh$1,480,534 No. SHARES SUBSCRIBED AND PAID 2,467,556 OBJECTS Investments, computer, advisory, consultancy and technical assistance services for companies. STRUCTURE OF THE COMPANY Subsidiary: I-Med S.A., 99.84% holding (direct). Subsidiary: I-Med Consultoría S.A., 99.9% holding (direct). Subsidiary: Iswitch S.A., 96.7% holding (direct). CHAIRMAN OF THE BOARD Héctor Manuel Gómez Brain (Director of SONDA S.A.) DIRECTORS Mario Pavón Robinson (Director of SONDA S.A.) / Carlos Kubik Castro Cristián Irarrázabal Philippi CHIEF EXECUTIVE Pablo Izquierdo Walker PROPORTION OF PARENT COMPANY’S ASSETS 0.27% PARENT COMPANY’S HOLDING IN THE COMPANY 50.08% 11 COMPANY NOVIS S.A. SUBSCRIBED AND PAID CAPITAL Ch$406,980 No. SHARES SUBSCRIBED AND PAID 4,200 OBJECTS The development and sale of solutions in which information technology is applied or may be applied. CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Mario Pavón Robinson (Director of SONDA S.A.) / Patricio Artiagoitia Alti CHIEF EXECUTIVE Patricio Artiagoitia Alti PROPORTION OF PARENT COMPANY’S ASSETS 0.21% PARENT COMPANY’S HOLDING IN THE COMPANY 60.00% 12 COMPANY ADMINISTRADORA DE ACTIVOS FINANCIEROS S.A. SUBSCRIBED AND PAID CAPITAL ThCh885,508 No. SHARES SUBSCRIBED AND PAID 2,950,925 OBJECTS Administration of financial assets. STRUCTURE OF THE COMPANY Subsidiary: Sociedad Administradora Lo Recabarren S.A, 99.99% direct holding. CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Mario Pavón Robinson (Director of SONDA S.A.) / Rafael Osorio Peña (Executive of SONDA S.A.), Patricio Díaz Quiroga CHIEF EXECUTIVE Patricio Díaz Santelices PROPORTION OF PARENT COMPANY’S ASSETS 0.20% BAZUCA INTERNET PARTNERS S.A SUBSCRIBED AND PAID CAPITAL ThCh$2,149,372 No. SHARES SUBSCRIBED AND PAID 6,884 OBJECTS Investments in shares, bonds and all kinds of securities issued by technology and internet companies; the financing of information technology projects. CHAIRMAN OF THE BOARD Pablo Navarro Haeussler (Director of SONDA S.A.) DIRECTORS Rafael Osorio Peña (Executive of SONDA S.A.) / Raúl Vejar Olea (Chief Executive of SONDA S.A.), Jorge Díaz Fernández CHIEF EXECUTIVE Rafael Osorio Peña (Ejecutivo de SONDA S.A.) PROPORTION OF PARENT COMPANY’S ASSETS 0.12% PARENT COMPANY’S HOLDING IN THE COMPANY 99.99 % 14 COMPANY PUERTO NORTE S.A. SUBSCRIBED AND PAID CAPITAL ThCh$586,238 No. SHARES SUBSCRIBED AND PAID 448,398 OBJECTS Investment and exploitation of real estate for its own of third party’s account, warehouse rental and services; investment in all kinds of real estate. CHAIRMAN OF THE BOARD Jorge Diaz Fernández DIRECTORS Héctor Fernández Fernández / Juan José Gana Fernández / Rafael Osorio Peña (Executive of SONDA S.A.), Alvaro Pérez Frugone (Executive of SONDA S.A.) CHIEF EXECUTIVE Jaime Gana del Río PROPORTION OF PARENT COMPANY’S ASSETS 0.07% PARENT COMPANY’S HOLDING IN THE COMPANY 59.43% 065 COMPANY page 13 Annual Report SONDA 07 PARENT COMPANY’S HOLDING IN THE COMPANY 60.00% 15 COMPANY SOLUCIONES EXPERTAS S.A. (SOLEX S.A.) SUBSCRIBED AND PAID CAPITAL ThCh$8,182 No. SHARES SUBSCRIBED AND PAID 2,000,000 OBJECTS Design and implement systems and solutions; purchase, sale, import, export, representation, distribution and sale of any type of computer programs; the provision of all kinds of information technology services and of all kinds of training services. CHAIRMAN OF THE BOARD Jorge Díaz Fernández DIRECTORS Mario Pavón Robinson (Director of SONDA S.A.) / Eduardo Parra Bucher / Jorge Hoyl Moreno CHIEF EXECUTIVE Jorge Hoyl Moreno PROPORTION OF PARENT COMPANY’S ASSETS 0.07% PARENT COMPANY’S HOLDING IN THE COMPANY 50.00% 16 COMPANY FONSORBES PARTICIPAÇÕES LTDA. AND SUBSIAIRIES SUBSCRIBED AND PAID CAPITAL US$119,150,000 No. SHARES SUBSCRIBED AND PAID 230,880,950 OBJECTS Participation in other nacional or foreign companies as a partner or shareholder. Through its subsidiary PWI Corp Participaciones Ltda. (PROCWORK), the operative company, it specializes in consultancy services and the integration of IT solutions. STRUCTURE OF THE COMPANY Subsidiaries: PWI Corp Participações Ltda. (PROCWORK), 100% holding (direct) SONDA Procwork Software Informática Ltda., 100% holding (indirect) SONDA Procwork Dealer Infomática Ltda., 100% holding (indirect) Procwork Professional Services do Brasil Informática Ltda., 100% holding (direct) PLP Informática Ltda., 100% holding (indirect) SONDA Procwork Tecnología e Outsourcing Informática Ltda., 100% holding (indirect) SONDA Procwork Consulting Informática Ltda., 100% holding (indirect); PPS - Procwork Professional Services do Brasil Informática Ltda., 100% holding (indirect) CHIEF EXECUTIVE Luiz Carlos Utrera Felippe PROPORTION OF PARENT COMPANY’S ASSETS 20.69% PARENT COMPANY’S HOLDING IN THE COMPANY 99.99 % 17 COMPANY SONDA DO BRASIL S.A. SUBSCRIBED AND PAID CAPITAL US$18,264,603 No. SHARES SUBSCRIBED AND PAID 45,984,741 OBJECTS Mainly the professional management of complex IT environments for third parties, corresponding to various categories of professional services mainly focused on technology networks, from the maintenance of IT equipment to consultancy services for improving infrastructure. STRUCTURE OF THE COMPANY Subsidiary: SONDA Serviços de Tecnología da Informação Ltda., 99.00% holding (direct) CHAIRMAN OF THE BOARD Raúl Vejar Olea (Chief Executive of SONDA S.A.) DIRECTORS Rafael Osorio Pena (Executive of SONDA S.A.) / Álvaro Pérez Frugone (Executive of SONDA S.A.) CHIEF EXECUTIVE Luiz Carlos Utrera Felippe PROPORTION OF PARENT COMPANY’S ASSETS 2.65% PARENT COMPANY’S HOLDING IN THE COMPANY 9.99 % 18 COMPANY SONDA URUGUAY S.A. SUBSCRIBED AND PAID CAPITAL US$958.879 No. SHARES SUBSCRIBED AND PAID 28.960.876 OBJETO SOCIAL Su giro principal es la prestación de servicios computacionales, la provisión de hardware y la implementación de proyectos de integración en el campo de la tecnología informática. CHAIRMAN OF THE BOARD Raúl Vejar Olea (Chief Executive of SONDA S.A.) DIRECTORS Gerardo Cruz Cironi (Executive of SONDA S.A.) / Rafael Osorio Peña (Executive of SONDA S.A.) / José García CHIEF EXECUTIVE Gerardo Cruz Cironi PROPORTION OF PARENT COMPANY’S ASSETS 0.37% SONDA DEL PERÚ S.A. US$613,722 No. SHARES SUBSCRIBED AND PAID 227,775 OBJECTS Sale of computer equipment and provision of computer services using own technology, automation of electronic processes and inputs of electronic and electrical equipment, parts and components, including the rental of computer applications and software. CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Raúl Vejar Olea (Chief Executive of SONDA S.A.) / Rafael Osorio Peña (Executive of SONDA S.A.), Mario Pavón Robinsón (Director of SONDA S.A.) CHIEF EXECUTIVE Miguel Ángel Guerrero Watanabe PROPORTION OF PARENT COMPANY’S ASSETS 0.18% PARENT COMPANY’S HOLDING IN THE COMPANY 76% 20 COMPANY SONDA DE COLOMBIA S.A. SUBSCRIBED AND PAID CAPITAL US$1,231,694 No. SHARES SUBSCRIBED AND PAID 2,747,372 OBJECTS The preparation, generation, development, consignment for use, rental, transformation and sale of computer programs, data bases or information systems and other data processing equipment. CHAIRMAN OF THE BOARD Jorge Edmundo Andrade Niklitschek DIRECTORS Patricio Riquelme Huerta / Juan Correa Gálvez. CHIEF EXECUTIVE Jorge Edmundo Andrade Niklitschek PROPORTION OF PARENT COMPANY’S ASSETS O.2% PARENT COMPANY’S HOLDING IN THE COMPANY 78.84% 067 COMPANY SUBSCRIBED AND PAID CAPITAL page 19 Annual Report SONDA 07 PARENT COMPANY’S HOLDING IN THE COMPANY 50.00% 21 COMPANY SONDA DEL ECUADOR ECUASONDA S.A. SUBSCRIBED AND PAID CAPITAL US$ 494,252 No. SHARES SUBSCRIBED AND PAID 12,356,306 OBJECTS Contracting and sale of computer services. The sale, purchase, import or export of computer and similar equipment or materials. Design and installation of networks. Technical assistance in programming and systems. Advice and development of computer packages. Data processing training. Exploitation, manufacture, development and application of hardware and software. CHAIRMAN OF THE BOARD Raúl Véjar Olea (Chief Executive of SONDA S.A.) DIRECTORS Rafael Osorio Peña (Executive of SONDA S.A.) / Mario Pavón Robinson (Director of SONDA S.A.) / José García CHIEF EXECUTIVE Alberto Fabián Mena Ojeda PROPORTION OF PARENT COMPANY’S ASSETS 0.66% PARENT COMPANY’S HOLDING IN THE COMPANY 9.99 % 22 COMPANY SONDA ARGENTINA S.A. SUBSCRIBED AND PAID CAPITAL US$ 12,050 No. SHARES SUBSCRIBED AND PAID 12,050 OBJECTS The commercialization of computer equipment, provision of data-processing services, development and exploitation of software and application systems. STRUCTURE OF THE COMPANY Subsidiary: Microcomputación S.A., 51% direct holding. Associate: SONDA Uruguay S.A., 50% direct holding. CHAIRMAN OF THE BOARD Gerardo Cruz Cironi DIRECTORS Raúl Véjar Olea (Chief Executive of SONDA S.A.) / Gerardo Cruz Cironi / Agustín Navarro Cox, José Celestino García CHIEF EXECUTIVE Gerardo Cruz Cironi PROPORTION OF PARENT COMPANY’S ASSETS 1.33% PARENT COMPANY’S HOLDING IN THE COMPANY 95% 23 COMPANY SONDA PISSA S.A. DE C.V. (MEXICO) SUBSCRIBED AND PAID CAPITAL USD$16,786,545 No. SHARES SUBSCRIBED AND PAID 2,431 OBJECTS The manufacture, processing, assembly, import and sale of computer equipment, the provision of data- processing services and the development, implementation, support and guarantee of computer equipment and/or programs or systems. STRUCTURE OF THE COMPANY Subsidiary:Ingeniería en Servicios de Informática S.A de C.V., 99.99 % Subsidiary: Servicios de Aplicación e Ingenieria Novis, S.A. de C.V. 60% CHAIRMAN OF THE BOARD Andrés Navarro Haeussler (Chairman of SONDA S.A.) DIRECTORS Raúl Vejar Olea (Chief Executive of SONDA S.A.) / Felipe Matta Navarro Rafael Osorio Peña (Executive of SONDA S.A.) / Alberto Merino Pohl (Executive of SONDA S.A.) CHIEF EXECUTIVE Guido Camacho García PROPORTION OF PARENT COMPANY’S ASSETS 3.36% PARENT COMPANY’S HOLDING IN THE COMPANY 9.99 % page 069 Annual Report SONDA 07 07 Annual Report SONDA 071 page The full Consolidated and Individual Financial Statements of SONDA and subsidiaries, along with the independent auditors’ report, are available to the public at the premises of the reporting entity and also at the Superintendencia de Valores y Seguros. 09. Financial Information CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2006 AND 2007 (Restated for general price-level changes and expressed in thousands of Chilean Pesos (ThCh$) as of December 31, 2007 ASSETS CURRENT ASSETS: Cash and banks Time deposits Marketable securities Trade accounts receivable, net Notes receivable, net Other receivables, net Notes and accounts receivables from related companies Inventories, net Recoverable taxes Prepaid expenses Deferred taxes Other current assets 2006 ThCh$ 5.023.872 940.264 81.611.542 43.279.416 5.164.286 576.218 1.645.301 7.757.735 2.983.037 408.415 1.327.339 59.585.960 Total current assets 210.303.385 2007 ThCh$ 8.146.237 25.616.621 26.833.818 58.252.441 7.555.888 4.035.779 18.160.407 8.196.075 7.405.412 220.240 2.523.753 7.518.725 174.465.396 PROPERTY, PLANT AND EQUIPMENT: Land Buildings and infrastructure Machinery and equipment Other property, plant and equipment Accumulated depreciation 2.959.121 8.648.428 39.018.147 47.078.578 (42.926.565) 3.228.976 8.351.581 61.637.991 29.617.745 (45.522.645) Net property, plant and equipment54.777.709 57.313.648 OTHER ASSETS: Investments in equity method investees Investments in other companies Goodwill Negative goodwill Long-term receivables Notes and accounts receivables from related companies Intangibles Less amortization Other 5.872.016 1.120.115 16.412.071 (864.523) 12.388.976 1.928.537 12.895.748 (7.184.713) 22.917.870 2.524.815 2.088.966 65.774.110 (815.560) 10.289.146 1.659.293 14.506.221 (9.298.966) 26.765.271 Total other assets 65.486.097 113.493.296 TOTAL ASSETS 330.567.191 345.272.340 1.525.832 16.648.302 40.110 19.006.436 661 2.081.364 45.622 7.606.271 2.961.817 2.903.516 2.378.786 26.623 3.984.492 16.113.649 36.636 28.434.865 2.038.009 5.781.406 10.363.952 5.249.857 1.527.384 5.395.730 58.824 Total current liabilities55.225.340 78.984.804 LONG-TERM LIABILITIES: Long-term liabilities with banks and financial institutions 36.772.141 20.913.887 Other payable 466.616 426.816 Notes and accounts payable to related companies 28.886 26.895 Provisions 2.163.295 2.354.313 Deferred taxes 827.188 1.185.471 Other long-term liabilities 172.854 507.775 Total long-term liabilities 40.430.980 25.415.157 MINORITY INTEREST SHAREHOLDERS' EQUITY: Paid-in capital Other reserves Retained earnings Net income for the year Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 2.984.095 215.547.276 (6.170.791) 835.713 21.714.578 231.926.776 330.567.191 3.295.683 215.618.039 (17.204.090) 16.078.376 23.084.371 237.576.696 345.272.340 07 2007 ThCh$ Annual Report SONDA 2006 ThCh$ 073 page LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Banks and financial institutions: Short - term Current portion of long-term debt Current portion of other long-term liabilities Accounts payable Notes payable Other payables Notes and accounts payable to related companies Provisions Withholdings Income tax Unearned income Other current liabilities CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2007 (Restated for general price-level changes and expressed in thousands of Chilean Pesos (ThCh$) as of December 31, 2007) 2006 ThCh$ 2007 ThCh$ SALES 200.581.519 268.093.308 COST OF SALES (158.447.230) (212.970.885) GROSS MARGIN 42.134.289 55.122.423 ADMINISTRATIVE AND SELLING EXPENSES (20.288.913) (24.365.596) OPERATING INCOME NON-OPERATING (EXPENSE) INCOME: Financial income Equity share in net income of related companies Other non-operating income Amortization of goodwill Financial expenses Other non-operating expenses Price-level restatement Foreign exchange difference 21.845.376 4.856.181 2.237.474 1.494.831 (1.061.186) (3.311.693) (2.810.647) 474.603 2.409.000 30.756.827 6.116.834 1.679.102 10.044.151 (2.407.621) (3.586.187) (8.495.528) (4.875.212) (283.061) Non - operating (expense) income, net 4.288.563 (1.807.522) INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND AMORTIZATION OF NEGATIVE GOODWILL 26.133.939 28.949.305 INCOME TAXES (4.529.334) (4.937.989) MINORITY INTEREST (771.389) (975.158) AMORTIZATION OF NEGATIVE GOODWILL 881.362 48.213 21.714.578 23.084.371 NET INCOME FOR THE YEAR CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2007 (Restated for general price-level changes and expressed in thousands of Chilean Pesos (ThCh$) as of December 31, 2007) 2006 ThCh$ 2007 ThCh$ CASH FLOWS FROM OPERATING ACTIVITIES: Net income for the year 21.714.578 (62.567) (Gain) on sale on property, plant and equipment - net (Gain) on sale of investments (177.254) Changes (credits) to income that do not represent cash flows: 23.084.371 (69.459) (5.891.963) 07 Depreciation for the year 9.403.891 11.481.110 Amortization of intangible assets 3.925.746 6.596.012 Write-offs and provisions 3.393.772 573.260 Equity share in net income of related companies (2.237.474) (1.679.102) Amortization of goodwill 1.061.186 2.407.621 Amortization of negative goodwill (881.362) Net price-level restatement Net foreign exchange difference (474.603) (2.409.000) 4.875.212 283.061 Other (credits) to income that do not represent cash flows (17.864) (298.616) Other charges to income that do not represent cash flows 14.815 Changes in assets affecting operating cash flows [(increase) decrease]: (48.213) - Trade accounts receivable (9.659.726) Inventories (1.864.752) (33.557.972) (88.874) Other assets 1.327.859 Changes in liabilities affecting operating cash flows [increase (decrease)]: (190.399) Accounts payable related to operating income (4.775.280) Income tax payable 2.265.520 513.474 Other accounts payable related to non-operating expense (3.149.466) (1.015.014) VAT and similar taxes payable (net) (1.704.921) (675.234) Minority interest in net income 13.164.609 781.275 975.158 NET CASH PROVIDED BY OPERATING ACTIVITIES 16.474.373 20.439.042 Annual Report SONDA 075 page CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2007 (Restated for general price-level changes and expressed in thousands of Chilean Pesos (ThCh$) as of December 31, 2007) 2006 ThCh$ CASH FLOWS FROM FINANCING ACTIVITIES: 2007 ThCh$ Proceeds from issuance of shares 122.033.936 - Loans obtained 33.535.929 5.136.148 Capital distributions (5.982.764) (6.471.915) Repayment of loans (22.610.267) (19.070.395) Payment of share issuance and placement costs (2.547.616) (132.140) Other disbursements for financing (923.818) Total net cash (used in) provided by financing activities 123.505.400 CASH FLOWS FROM INVESTING ACTIVITIES: (20.538.302) Proceeds from sale of property, plant and equipment 4.800.953 6.496.458 Proceeds from sale of permanent investments 647.303 11.305.961 Collection of other loans to related companies 266.366 102.476 Other investment income 1.059.786 2.153.954 Acquisition of property, plant and equipment (30.972.252) (16.389.383) Permanent investments (1.426.586) (59.923.387) Other investment disbursements (10.045.273) (18.002.450) Total net cash used in investing activities (35.669.703) (74.256.371) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS BEFORE THE EFFECT OF PRICE-LEVEL RESTATEMENT 104.310.070 (74.355.631) (392.995) (5.174.478) EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 103.917.075 15.263.630 (79.530.109) CASH AND CASH EQUIVALENTS AT END OF YEAR 119.180.705 EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENTS NET (DECREASE) INCREASE IN CASH AND CASH 119.180.706 39.650.597 page 077 Annual Report SONDA 07 Declaration of responsibility · The directors of SONDA S.A. and the chief executive officer, the signatories to this declaration, swear to being responsible for the accuracy of the information provided in this Annual Report, in accordance with the provisions of General Rule N°30 and complementary rules of the Superintendency of Securities and Insurance. Andrés Navarro Haeussler Chairman Tax Id: 5.078.702-8 Héctor Gómez Brain Director Tax Id: 6.426.176-2 Ignacio Fernández Doren Director Tax Id: 7.037.340-8 Luiz Carlos U. Felippe Director Tax Id: 10.188.505-2 Mario Pavón Robinson Director Tax Id: 5.386.757-k Pablo Navarro Haeussler Director Tax Id: 6.441.662-6 Raúl Rivera Andueza Director Tax Id: 6.460.793-6 Segismundo Schulin-Zeuthen Serrano Director Tax Id: 4.689.635-1 Raúl Véjar Olea Chief Executive Officer Tax Id: 6.580.740-8 Rodrigo Peña Aranda Investor Relations Officer Address Teatinos 500, 9th floor, Santiago Telephone: (56-2) 657 5302 (56-2) 657 5389 Fax: (56-2) 657 5183 (56-2) 6575115 Electronic mail [email protected] Web www.sonda.com 07 page Investor relations: 079 Annual Report SONDA Information for shareholders and investors