Sonda S.a. · BCS:SONDA
Sonda — 9th Annual Itau BBA CEO Conference 2014
37 slides from Sonda's conference presentation, May 2014
Slide 1: 9th Annual Itau BBA CEO Conference 2014
9th Annual Itau BBA CEO Conference 2014 _SONDA. 40 afios > 4 Ita BBA MAY 1474-157 2014
Slide 2: SONDA, The Projects You Imagine
> SONDA, THE PROJECTS YOU IMAGINE <2 IT Industry in Latam <3 Company Highlights <4 Recent Acquisition <5 Financial Review <6 Appendix
Slide 3: Overview
< 1.1 OVERVIEW — SONDA is the leading Latin American-owned IT services provider — Founded in 1974 and headquartered in Santiago, Chile — Presence in 10 countries in the region with main operations in Chile, Brazil and Mexico * — 13,000~ employees regionally and over 5,500 in Brazil ° — Ability to de
Slide 4: Successful Growth History
SONDA. < 1.2 SUCCESSFUL GROWTH HISTORY a Foundation (1974) Applications for health insurance providers Joint Venture with Digital Equipment Corp. Banking industry applications (1 974- 1983) First full outsourcing services contract First large systems integration project Applications for pension fund
Slide 5: IT Services, Applications, Platforms
IT SERVICES APPLICATIONS PLATFORMS 1T Outsourcing Infrastructure Support Professional Services Business Outsourcing Cloud Computing Systems Integration Datacenter Managed Device Services ross Market Solutions Industry Specific Applications Banking and Finance Application Outsourcing Application Mana
Slide 6: SONDA, The Projects You Imagine
> SONDA, THE PROJECTS YOU IMAGINE <1 Overview <3 Company Highlights <4 Recent Acquisition <5 Financial Review <6 Appendix
Slide 7: Latin America, one of the fastest growing regions
SONDA. < 2.1 LATIN AMERICA, ONE OF THE FASTEST GROWING REGIONS IN THEWORLD— — InLatin America, IT spending as a percentage of GDP is between 1.5% and 2.4% —> Indeveloped economies, IT spending as a percentage of GDP is over 3% and can reach to 6% —> The gap between the two markets has been reduced i
Slide 8: Latin America, one of the fastest growing regions
SONDA. < 2.1 LATIN AMERICA, ONE OF THE FASTEST GROWING REGIONS IN THEWORLD— IT spending in LatAm is expected to grow at twice the rate than of the world between 2012-2015 Distribution of IT Investment - 2013 IT Spending CAGR ‘12-15 OPLA Brazil 29% 47% 14.3% uss 9.9% Pe es = =— Ar ... Chile a 3.1% K
Slide 9: Favorable Outlook for IT Industry in Latin America
SONDA. <2.2 FAVORABLE OUTLOOK FORITINDUSTRY IN LATINAMERICA 9 ° 9, CAGR (2012-2015) IT INDUSTRY IN LATAM 10. DA ce 10.7. 12.2: 10.1 7.1% (2012-2015) IN BRAZIL CHILE MEXICO COLOMBIA STRATEGIC MARKETS CAGR CAGR CAGR CAGR 2012-2015 2012-2015 2012-2015 2012-2015 SS fe Ft 1 1 e — CAGR (2012-2015) IT SERV
Slide 10: Favorable Outlook for IT Industry in Latin America
SONDA. <2.2 FAVORABLE OUTLOOK FORITINDUSTRY IN LATINAMERICA. = Projected CAGR % (2012-2015) 14.4% 12.5% , 11.3% 11.1% 11.3% 11.5% 11.9% 9.6% 9.4% 10.0% 9.9% 9.8% 9,59 - 5.1% LatAm Chile Brazil Mexico Colombia wlTServices mPlatforms Applications Source: IDC LA IT Spending Patterns: The Latin America
Slide 11: SONDA, The Projects You Imagine
> SONDA, THE PROJECTS YOU IMAGINE <1 Overview <2 a, IT Industry in Latam =, enane = ms Acquisiti ———s — ecent Acquisition —— a? <5 —_ i W Financial Review — es <6 Es s = & bid Appendix : 4 a \ @ . =
Slide 12: Company Highlights
SONDA. <3 COMPANY HIGHLIGHTS Se ine ‘wi DY» »YDYD»YD PDD Leading Presence ina Diversified Integrated Opportunity to Solid track record Experienced Latin-American growing and blue-chip one-stop shop continue growing _ of financial management IT services underpenetrated customer base —_ business model
Slide 13: Leading Latin-American IT Services Company
< 3.1 LEADING LATIN-AMERICAN IT SERVICES COMPANY — The one-stop shop for IT Services in Latin America * — Integrated solutions servicing clients at all stages of the IT adoption lifecycle — Long-standing presence in the region, focusing on long-term relationships with corporate clients — Presence in
Slide 14: Presence in a Growing and Underpenetrated Market
SONDA. < 3.2 PRESENCE IN A GROWING AND UNDERPENETRATED MARKET es SONDA Operates in a Region with Strong Growth and Low Risk GDP Growth (%) 2013 Government Net Debt (% of GDP) 2006-2013 +m 2014-2019e 22.2% _ 42.2% 4.3% 4.2% 4.2% - 3.6% 9 994 1 3.6% 2.8% 33.3% 7 9% - 1.4% 1.6% = 0.5% 5.9% T T T T = 1
Slide 15: Diversified Blue-Chip Customer Base
< 3.3 DIVERSIFIED BLUE-CHIP CUSTOMER BASE Basis for a Solid and Stable Revenue Stream — Glient focus on blue-chip companies Large and medium size companies Regional clients — Long term relationship with clients Multiple contracts with clients that average 3 years Significant cross-selling ~2/3 of re
Slide 16: Integrated One-Stop Shop Business Model
SONDA. < 3.4 INTEGRATED ONE-STOP SHOP BUSINESS MODEL ~ snee Wide Range of Products and Services offered with a World Class Category accenture e,, Sou TIVIT Grons GT —> Unparallel capacity to deliver IT services through all the Strategic Consulting region Wort —> Independent IT services provider with
Slide 17: Opportunity to Continue Growing
SONDA. < 3.5 OPPORTUNITY TO CONTINUE GROWING ~ Successful triennial investment plans executed in the past Since 2007, SONDA has invested over US$303 mm in Capex for organic growth and US$413 mm in acquisitions Sonda’s Triennial Investment Plans . Organic Organic growth Organic Growth 29% Growth 36%
Slide 18: Clear M&A Strategy, Backed by Solid Execution
SONDA. < 3.5 OPPORTUNITY TO CONTINUE GROWING we Clear M&A Strategy, Backed by Solid Execution —> (lear strategic rationale of increasing client base and enhancing IT offering — Wide knowledge of the IT market and successful experience in acquiring and integrating IT companies * 30+ companies or busi
Slide 19: 2013-2015 Triennial Investment Plan of US$700 million
SONDA. < 3.5 OPPORTUNITY TO CONTINUE GROWING we 2013 -2015 Triennial Investment Plan of US$ 700 million To continue developing SONDA’s strategy of profitable growth, while maintaining a solid and stable financial position and taking advantage of growth opportunities in the IT industry in the region
Slide 20: Solid Track Record of Financial Performance
_SONDA. < 3.6 SOLID TRACK RECORD OF FINANCIAL PERFORMANCE ~ Solid growth on the back of stable margins ... —> SONDA has been profitable every year since its foundation in 1974 — The Company has been able to maintain strong growth throughout the years Revenue (US$ million) EBITDA (USS million) $1,298
Slide 21: Profitability, Low Leverage and Steady Dividend Payout
SONDA. < 3.6 SOLID TRACK RECORD OF FINANCIAL PERFORMANCE ~ ...coupled with profitability, low leverage and steady dividend payout ratio Net Income (US$mm) Net Debt / EBITDA’ 1.0 127 0.8 87 0.4 77 oO = LJ . Ll - U if “4 a T T T T -0.7 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Capex (USSmm) Di
Slide 22: Experienced Management Team Backed by Strong Board
SONDA. < 3.7 EXPERIENCED MANAGEMENT TEAM BACKED BY A STRONG BOARD WITH” SOLID CORPORATE GOVERNANCE High Standards of Corporate Governance —>4 Independent Directors out of a board of 9 members — Entire board is elected every three years; cumulative voting is permitted for the election of directors tg
Slide 23: SONDA, The Projects You Imagine
> SONDA, THE PROJECTS YOU IMAGINE <1 Overview <2 IT Industry in Latam <3 Company Highlights <5 Financial Review <6 Appendix
Slide 24: $ → $ $ $ → $ $ $ → $ $ $0 →
$ 900 → $ 800 $ 700 $ 600 → $ 500 $ 400 $ 300 → $ 200 $ 100 $0 → → → → → → 24
Slide 25: CTIS
_SONDA. 40 afios > < CIS Sustained growth and high recurring revenue base 20% average growth in the last four years Total backlog by R$2,769 million Revenues (R$ million) Backlog (R$ million) -20.1% p@R: 20:7" $837 $712 863 703 $483 9537 ~ 391 189 || 30 29 — 2014 2015 2016 2017 2018 2019 2020 1006-2
Slide 26: CTIS + SONDA: Business Combination in Brazil
_SONDA. 40 afios > < CTIS + SONDA Business Combination In Brazil — SONDA has become the fourth largest IT company in Brazil and the first of Latin American origin. — SONDA and CTIS are highly complementary in Brazil generating synergies from: * — Cross selling of products and services to customers f
Slide 27: CTIS + SONDA: Business Combination in Latin America
_SONDA. 40 afios > < CTIS + SONDA Business Combination in Latin America — SONDA asthe fourth largest IT services company in LatAm, immediately behind IBM, HP / EDS and Accenture — Brazil's operation to be the most important in Latin America, representing about 47% of total revenue ™ N _SONDA. cus +
Slide 28: CTIS Investment Highlights
SONDA. < CTIS = Investment highlights —> Prestigious leadership and a solid business model based on long-term contracts , with a high rate of recurring revenue and world-class certifications. —> Portfolio of blue-chip customers, complementary offering, increasing business presence in states with hig
Slide 29: SONDA, The Projects You Imagine
> SONDA, THE PROJECTS YOU IMAGINE <1 Overview <2 IT Industry in Latam <3 Company Highlights <4 Recent Acquisition <6 Appendix
Slide 30: Revenue and EBITDA
SONDA. 40 afios > < REVENUE AND EBITDA Consolidated revenue has grown 16% from 2009 to 2013, which has been accompanied by a growth of 14% in EBITDA Consolidated Revenues (US$ millions) Consolidated EBITDA (US$ millions) por: 16% $1,298 $1,282 $1,130 $849 $73 ] ; if 286 vy 302 2009 2010 2011 2012 20
Slide 31: Revenue and EBITDA: Chile
< REVENUE AND EBITDA Ex-Chile operations annual revenue growth rates over 18% with increasing EBITDA margins which drives consolidated growth and stabilization of margins... @& Chile (US$ millions) 3 chen: 13% 3009-201 71 e e e e e 448 ol ae a ie te fe 7 i | 2009 2010 2011 2012 2013 1013 1014 2009 2
Slide 32: Revenue and EBITDA: Brazil, Mexico, OPLA
_SONDA. 40 afios > < REVENUE AND EBITDA S Brazil (US$ millions) Mexico (USS millions) $ 4 OPLA (USS millions) S GR: 36% 0) 2013 cn eR: 22 Yo 1009 2909-2013 (a $131 $130 5161 $172 48 $97 $96 37 2 e e O e e e e by © e e e © Bor ° 20,69 | fo fe om ie fsx 10.59] 919i ie st 2009 2010 «2011 «2012s 2013's
Slide 33: SONDA, The Projects You Imagine
> SONDA, THE PROJECTS YOU IMAGINE <1 Overview <2 IT Industry in Latam <3 Company Highlights <4 Recent Acquisition <5 Financial Review : y ate Tt a | = heat N @ . Shes
Slide 34: Summary Income Statement
SONDA. < 5.1 SUMMARY INCOME STATEMENT 0a LTM Ei - Fiscal Year Ended December 31, a 20105 March 30, CAGR (US$ millions) 2010 2011 2012 2013 2014 Total Revenues 808.2 1,075.5 1,235.9 1,219.7 1,235.7 11.2% Growth (%) 33.1% 14.9% -1.3% 1.3% Gross Profit 188.4 225.2 265.9 257.8 253.6 7.7% Margin (%) 23.3
Slide 35: Summary Balance Sheet
SONDA. < 5.2 SUMMARY BALANCE SHEET a Fiscal Year Ended December 31, March 30, (US$ millions) 2010 2011 2012 2013 2014 Cash and Equivalents 45.3 59.8 111.2 310 329.1 Short-term Investments 111.9 25 8.2 12.8 22.9 Current Accounts Receivable 222.9 322.7 314.5 263.6 259.8 PP&E 107.3 139.6 161.7 165.5 16
Slide 36: Summary Cash Flow Statement
< 5.3 SUMMARY CASH FLOW STATEMENT Fiscal Year Ended December 31, March 30, (US$ millions) 2010 2011 2012 2013 2014 Net Cash Flows from (Used in) Operating Activities 106.40 60.68 162.66 170.04 43.51 Capex -118.08 -102.96 -175.2 -46.86 -21.53 Other ~85.66 72.39 14 65.3 7.3 Net Cash Flows from (Used i
Slide 37: Phone (56-2) 2 657 50 00 Teatinos 500, Santiago, CHILE
Phone (56-2) 2 657 50 00 Teatinos 500, Santiago, CHILE www.SONDA.com 37