ENERGY, TELECOMMUNICATIONS, CONSTRUCTION

ENERGY, TELECOMMUNICATIONS, CONSTRUCTION

SCP =investing
Investing
the
future
Argentina
SCP:
inin
the
future
ofofArgentina
ENERGY | TELECOMMUNICATIONS | CONSTRUCTION |ENTERTAINMENT | AGROINDUSTRY | TRANSPORT | REAL ESTATE
ENERGY, TELECOMMUNICATIONS, CONSTRUCTION,
ENTERTAINMENT, AGROINDUSTRY, TRANSPORT AND
REAL ESTATE.
We are more than 7.000 shareholders that invest in the
future of Argentina.
Market Cap: $4.882 MM (closing of 11/12 = $3,59/acción).
Share capital: $1.360 MM.
Outstanding shares: $1.190 MM (pending debt-for-equity swap = 170 MM shares).
PRINCIPAL ASSETS
Oil equivalent reserves:
Upstream oil & gas.
Acquisition of UNITEC Energy.
Purchase of assets of Petrobras in Santa Cruz (26 areas),
triples its operation in terms of production and reserves of oil
and gas. Successful OPEX reduction plans.
New field discovery: Morena Sur (oil & gas, est. +20 MM BOE).
Participation in gas transportation industry through TGN , TGM
and Gas Andes.
110 MM BOE
Production:
From 11.000 to 25.000 of daily BOE:
EBITDA (estimated for 2015/2016):
2014: U$S 39 MM
2015: U$S 120 MM
2016: U$S 200 MM
Warehousing and logistics services for the oil industry
through the unique flammable dock in metropolitan area of
Bs.As.
Revenues YTD Sept. 2015:
$1.471 MM
Privileged position in Dock Sud. Storage capacity of 140,000
m3 in 75 tanks connected to its main customers.
+13% vs. 2014
One of the three owners of Dock Sud, together with YPF and
Shell.
EBITDA YTD Sept. 2015:
Industrial production of lubricants, greases and asphalt for
third parties.
$5 MM
Revenues YTD Sept. 2015:
Telecommunications services focused on the
corporate market segment.
Fiber optic network of 2.300 km., mainly in
metropolitan area of Bs.As.
Important asset for convergence scenario: IP
telephony + cable TV + Netflix + video surveillance
= increased demand for fiber optic.
$238 MM
+36% vs. 2014
EBITDA YTD Sept. 2015:
$71 MM
55%
SCP recently acquired 5 companies in the industry of construction
materials: Canteras Cerro Negro, Ladrillos Olavarria, Cormela,
Superglass and Arcillas Mediterráneas.
Production of bricks, extruded and pressed floors, tiles, porcelain tiles
HD, glazed tiles and glass.
Cerro Negro is the third producer of Ceramics in Argentina. All together,
this companies represent the biggest conglomerate in the industry.
Construction is aimed to grow in both scenarios of high or low inflation
(as inflation protection or with the resurgence of credit).
Estimated revenue of the
companies in 2015:
$1.500 MM
EBITDA (estimated):
2015: $ 80 MM
2017: $ 250 MM
Revenues YTD Sept. 2015:
Safe entertainment for the whole family: PDC,
Aquafan, Niní Marshall Theatre, Tigre Center,
Chinatown Tigre.
Aquafan increased by 150.000 visitors and $
40 MM the revenue of PDC. Potential
development in other areas of the country.
Chinatown: 70 tenants, 65.000 visitors first
weekend..
1 MILLION
Visitors per year
$168 MM
+41% vs. 2014
EBITDA YTD Sept. 2015:
$37 MM
Rail freight transport of crops from the “pampa
húmeda” to the ports of Bahía Blanca and RosarioSan Martín.
Transport of 4 million tons of grain per year.
Positive new railway law: concept of open access.
Necessary to regenerate the competitiveness of
business sector.
Revenues FY jun. 2015:
$682 MM
+38% vs. 2014
EBITDA FY jun. 2015:
$85 MM
50%
High value added industrial products from nontraditional crops, based on R&D.
Biofuel industries. Omegas 3, 6 and 9 for the food,
pharmaceutical and animal nutrition industries.
Experimental stage with prospects of launching
commercial operations in the short term.
Anual revenues of the Omega 3 industry
in the world:
U$S 11.000 MM
2014
500 hectares in the first section of Delta islands in Tigre
(Buenos Aires) for a potential real estate development.
Earnings: $1,5 MM
Project connection to the mainland.
Consolidated assets: $31,2 MM
Net Equity: $28,1 MM
RESULTS 2014
Profit: $262,5 MM (+128% vs. 2013).
Consolidated revenues: $1.387 MM (+63% vs. 2013).
Consolidated assets: $1.530 MM.
Consolidated liabilities: $461 MM.
Equity: $1.069 MM.
EVOLUTION OF CONSOLIDATED REVENUES (IN MILLIONS OF ARS PESOS)
1600
1400
1200
1000
800
600
400
200
0
2010
2011
2012
2013
2014
CONTRIBUTION BY SECTOR TO THE GROSS MARGIN OF SCP (SEPT. 2015)*
Entertainment
33%
Energy
25%
Telecommunications
42%
*Only assets that consolidate on SCP balance sheet (+50%) considered.
RESULTS 3T2015
Profit: $ 200,6 MM (+67% vs. 2014).
Consolidated revenues: $1.221 MM (+27% vs. 2014).
Consolidated assets: $2.009 MM.
Consolidated liabilities: $766 MM.
Equity: $1.243 MM.
PROSPECTS
STRATEGIC VISION: FOCUS ON THE SHAREHOLDER
“If the conglomerate form is used judiciously, it is an ideal structure for maximizing long-term capital growth”, W. Buffet.
IMPROVING
NET ASSET
VALUE
- Increased participation in
CGC (30%) and purchase of
PESA assets in Santa Cruz.
- RECENT ACQUISITIONS:
- Metrotel
- Omega Grains
- Cerro Negro, LOSA,
Superglass, Cormela
and Arcillas
Mediterráneas.
COST
CONTROL
- Administration costs of
the Holding represent
0,66% of SCP assets
(3T2015). Less than
target set at 1%.
- NO stock options, NO
management fee, NO
corporate cars, etc.
BALANCE
TRADABLE
SECTOR /
DOMESTIC
MARKET
- Balance between both
sectors of the economy.
- Possible devaluation: 67%
of gross margin 3T2015
come from sectors that
are dollar linked.
ALLOCATION
OF CAPITAL
- Control of operations.
- Cumulative losses =
$100 MM.
- Medium term:
predictable dividends
policy + reinvestments .
+ VALUE FOR
SHAREHOLDERS
- Results: predictability
/ growth.
- Multiples.
- BCBA: share buyback.
- SIX Swiss.
- Liquidity –
international
markets.