Sonda S.a. · BCS:SONDA
Sonda — FY2006 Earnings Presentation
32 slides from Sonda's earnings presentation, January 2007
Slide 1: January 2007
JANUARY, 2007
Slide 2: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 2
Slide 3: SONDA Overview
SONDA Overview •IT Services leader in Latin America •Add value to customers by providing high quality IT services and solutions •Headquarters in Chile and direct presence in 9 countries. 3
Slide 4: Service Offering
SONDA Service Offering •Full-range IT Offering •Proven track record in business •Industry best practices 4
Slide 5: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 5
Slide 6: Latin America, the fastest growing IT market
The IT Industry Latin America, the fastest growing IT market •Low penetration rate of IT spending in the region •Considerable room for growth in Latin America IT Spending Penetration - 2005 IT Spending Growth - CAGR 2005-2010 Source: IDC, World Bank Source: IDC 6
Slide 7: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 7
Slide 8: Highlights 2006: Yearly Results
Highlights 2006 Yearly Results Net Profit 2003-2006 (in ThUS$) CAGR=50.7% •Growth with improved margins Net Profit Margin •Growth on higher value added businesses EBITDA 2003-2006 (in ThUS$) •Margin improvement pattern CAGR=14.6% EBITDA Margin 8
Slide 9: Highlights 2006: IPO
Highlights 2006 IPO •Becoming the largest Latin American IT Services public company •Funds available to finance the investment plan •Stock price evolution 9
Slide 10: Highlights 2006: Transantiago
Highlights 2006 Transantiago The Administrador Financiero del Transantiago Project 10
Slide 11: Highlights 2006: Regional Businesses
Highlights 2006 Regional Businesses •Progress in the Acquisition Process •Subscription of contract with Petrobrás •Taking total control of subsidiaries in Brazil, Mexico, and Colombia 11
Slide 12: Highlights 2006: Regional Business
Highlights 2006 Regional Business •World class credentials •Good perspectives for 2007 12
Slide 13: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 13
Slide 14: Consolidated Results 2006
Consolidated Results 2006 • Same level of revenues with higher income • New deals signed in 2006 14
Slide 15: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 15
Slide 16: Results by Country: Chile
Results by Country Chile in THUS 2005 2006 Var% 4705 47 06 Var% Platforms 87.285 84.064 “2,0 kh 22.824 24.181 5,95 FT Services 135.567 127.578 “5,94 40.662 31.119 23,56 Applications 74188 17.406 -28,0% 9.869 2.562 74,15 Costs of Sales “194.274 =1FE.623 8,1% 55,544 44 A “20,12. Gress Margin 5276h 51.
Slide 17: Results by Country: Chile
Results by Country Chile • New deals • Leadership in Chile in the IT Services market • Opportunities arising in the Healthcare and Pension Fund Industries • Benefit from trend to outsource IT functions • New opportunities in Nigeria 17
Slide 18: Results by Country: Brasil
Results by Country Brasil in THUSS 2005 2006 Varé 4T05 4T 06 Varé Platfoms 689 823 19,5% 73 1% 167,22 IT Services 47575 47,708 0,38 40.584 11.94 12,52 Applications 1.636 5.730 250,22 243 aq2 102.82 Costs af Sales 42.484 45, 147 6,38 “10.08 “10.493 558 Gross Margin F.A6 114 22,95 fh] 2.098 162.2% Adm
Slide 19: Results by Country: Brasil
Results by Country Brasil • Sales increased by 8.7% in 2006 • EBITDA and operating income growth by 37.2% and 189.2%, respectively • 4Q06 Operating and EBITDA margins reached 5.2% and 11.9%, respectively • New IT Services contracts. Petrobrás, BankBoston, Embraer, and La Selva, among others. • Stron
Slide 20: Results by Country: Mexico
Results by Country Mexico In THUSS 2005 2006 var% 4705 4706 Ware Platforms 6.920 5.391 -22,1% 1.076 1273 18,38 IT Services 8.244 21.509 160,95 2.243 8.406 274,82 Appiiestions 22% 10T 50,8% 1.280 A 00.1% Costs of Sales 14.872 “EZ. 962 54,46 3.794 =f 528 984% Gross Margin 2.528 4,444 63,9% aoe 2.150 1
Slide 21: Results by Country: Mexico
Results by Country Mexico • Acquisition of Qualita’s Technical Support Division • Improved operating income and EBITDA for the year • 4Q06 Operational and EBITDA margins reached 14.7% and 16.7%, respectively • New deals signed in 2006 • Multinationals managing their regional operations from Mexico •
Slide 22: Results by Country: ROLA
Results by Country ROLA in THUS 2005 2006 Vars 4705 4T 06 Vars Platfonmns T7521 19.876 13,4% 5.268 5.91 13,78 iT Services 12.037 13.644 13,4% 2.421 3.413 41,0E Applications R52 5.960 778 1.760 1.07 27 5% Costs af Sales “2770 “ML 76 11,08 “7.14? “B.4B3 187% Gross Mangin FaF21 9.104 17% 1.60 2.527 403
Slide 23: Results by Country: ROLA
Results by Country ROLA • Sales growth driven by Ecuador (equipment and outsourcing) and Uruguay (systems integration projects). • Operating income and EBITDA also increased, driven by Costa Rica Colombia Colombia, Argentina and Peru Ecuador • New deals: Uruguay’s Judicial Power, Colombia’s e- Peru
Slide 24: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 24
Slide 25: SONDA: IT Services
SONDA: IT Services Growth with high operational margins IT Services Sales increased by 3,4% when compared to year 2005, and went from representing 58% of total sales in 2005 to 60% in 2006. Taking apart the effect produced by the divestiture of the BAC subsidiary, IT Services sales would have grown
Slide 26: SONDA: Platforms
SONDA: Platforms Attending each customer specific needs Platform Sales for 2006 were similar to those of 2005, totaling US$112.4 million, representing a decrease of 1.2%. Platforms 2003-2006 (in ThUS$) 26
Slide 27: SONDA: Applications
SONDA: Applications Recognized product expertise For 2006, Applications sales fell by 12.8%, mainly due to lower sales in general software development and maintenance services. Applications 2003-2006 (in ThUS$) 27
Slide 28: Agenda
SONDA Overview The IT Industry Highlights 2006 Consolidated Results Results by Country Results by Business Line Financial Summary 28
Slide 29: Financial Summary
Financial Summary Costs of Sales 273.0 2A “78 T6383 “70.908 0,08 Gres Margin may 7.689 4g 24.233 20.233 ATE Administrative and Selling Expenses 6255 35.483 218 7 6BF BAA 16.7% | Operatingincome ATF BOB 1BK SAT 14.110 -18,0% | Financial income 4.001 8.493 108, 1% 208 2.821 | 1253,7% Financial Expense
Slide 30: Financial Summary
Financial Summary Sales 2003-2006 Operating Operating Profit Profit 2003-2006 2003-2006 (in ThUS$) (in ThUS$) CAGR=6.7% CAGR=23.8% Operating Profit Margin Net Profit 2003-2006 EBITDA 2003-2006 (in ThUS$) (in ThUS$) CAGR=50.7% CAGR=14.6% Net Profit Margin EBITDA Margin 30
Slide 31: Operational Summary
Operational Summary vars 4705 £ : a s bg Sales M4i.432 350.795 oa 97.819 1.140 26,65 | g E a Costs of Sakes 770 TAG O7E 76.553 7.08 “74% Gros Margin 74H Fess 56% m2 73278-28505 Administrative and Selling Eepanses ass 345 21% 7.9 9.123 18,75 Operating Income M174 38.205 11.5% 13.545 14.410 -18,0% EBI
Slide 32: Thanks!
THANKS ! Phone: (56-2) 657 50 00 Fax: (56-2) 657 54 10 Teatinos 500 Santiago, CHILE www.sonda.com 32