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2015 ANNUAL REPORT / INTEGRATED REPORT
Chairman’s letter to Stakeholders 6
Enaex at a Glance 10
Mission and Vision 11The Company 12Consolidated Financial Summary 14
Company History 16
Corporate Governance 20
Board of Directors and Management 21Ownership Structure 22Corporate Governance Practices 23Corporate Values 24Policy on Sustainability, Diversity and Inclusiveness 26Stakeholders 27
CHAPTER 1 / COMPANY INFORMATION
p. 5
CHAPTER 3 / BUSINESS AREAS
Business Model 30
Products and Services 32Blasting Services and Technical Support 34Clients 35Production Plants 36Service Plants 36Key Partners 37
Innovation and Development 38
Trademarks, Patents and Licenses 41
Opportunities and Risk Factors 42
Financial Policy 45
CHAPTER 2 / STRATEGY
p. 29Corporate Development Plans 48Britanite 50Davey Bickford 51Mining Industry 52Explosives Market 53
p. 47
Emissions Management and Carbon Credits 64Energy Efficiency 66Regulatory Compliance 67
CHAPTER 3 / BUSINESS AREAS
CHAPTER 5 / ENVIRONMENTAL PERFORMANCE
CHAPTER 4 / SOCIAL PERFORMANCE
Human Resource Management 56HSEC Risk Management 59Community Involvement 60
p. 55 p. 63
CHAPTER 6 / GENERAL INFORMATION
CHAPTER 7 / CONSOLIDATED FINANCIAL STATEMENTS
Shareholder Information 70Investments in Other Companies 72Board Compensation 75
p. 69
Signing of the Annual Report 220
p. 83
CHAPTER 1 / COMPANY INFORMATION
Chairman’s letter to Stakeholders
62015 ANNUAL REPORT / INTEGRATED REPORT
Dear Shareholders:
It is my pleasure to present, on behalf of the Board of Directors of Enaex S.A., the 2015 Annual Report and Financial
Statements. This was a very challenging year for the Company as we undertook an important growth process and
solidified our position as an international leader in comprehensive mining services.
This Annual Report goes beyond last year's financial results to include significant facets of our operations in all areas.
It is written in accordance with the Integrated Reporting Committee (IIRC) framework, a model which aims to provide
a more thorough, precise and comprehensive representation of how the Company's resources are creating value.
This is part of ongoing efforts by the Company and the Board to disclose information beyond economic performance
in order to encompass all factors that predict a sustainable future. We believe that this is essential to the Company's
development, given the increasing demands and competition inside and outside our line of business.
In 2015, the Company sought to create value in all areas through several initiatives related to a client-focused
approach, innovation, safety, training, emissions control and energy efficiency.
In the last 12 months, Enaex achieved two important international milestones that demonstrate its leadership as a
global mining supplier. In May 2015, the Company purchased a 66.7% interest in Britanite, making it the sole
shareholder of Brazil's largest explosives company. Then, in July 2015, Enaex acquired 91% of France's Davey Bickford
group, one of the world's leading manufacturers and distributors of detonators for the explosives industry.
Expanding to provide cutting-edge initiation systems increased the Company's value offering and strengthened its
position as a comprehensive supplier of rock fragmentation products and services. Both deals were part of the
strategic plan to maximize international development and capitalize on strengths in the region by offering innovative
products that meet client needs and improve mining site efficiency ratios.
Despite economic slowdown and the mining industry's poor performance last year, Enaex posted favorable results
thanks to the aforementioned acquisitions and the Company's strong performance in foreign markets. These results
are a testament to the Company's progress within its line of business. As of December 2015, the Company recorded
US$761.8 million in revenue and US$104.6 million in profit, representing 18% and 5% growth, respectively, relative to
the prior year.
7COMPANY INFORMATION
Regarding investments in Chile, the multimatrix plant located in the Prillex complex in Mejillones opened in
September. Its 250,000 ton annual production capacity will enable Enaex to manufacture emulsions for different
applications and, thus, offer client-specific solutions. Furthermore, in Calama's Río Loa complex, a new packaged
emulsions plant began operations in order to increase production capacity and meet the constant demand for this
type of product.
Enaex exported 219,000 tons to international markets, primarily: Peru, Mexico, Argentina and Bolivia. Meanwhile, high
explosive exports reached 1,490 tons.
In rock fragmentation and blasting services, subsidiary Enaex Servicios S.A. began new operations in the Collahuasi
and Cerro Colorado mines—owned by Glencore, AngloAmerican and BHP Billiton, respectively—a testament to the
confidence that major, world-class mining operators place in our services.
Enaex's innovation process has been a cornerstone of its growth. A company priority, innovation is one of our
strategic pillars and is systematically practiced within the organization. It is a fundamental tool for contributing to our
clients' productivity and generating value in their operations. Once merely desirable, we believe that innovation is
now essential as the industry faces problems that require timely solutions and non-traditional insights. Joint
innovation efforts involving mining companies and their suppliers have become fundamental to the industry's
sustainability.
This year, as in years past, new and important steps were taken in developing custom products and services to meet
clients' everyday needs. Highlights in innovation include additions to the product line within the last two years,
including: Energex®, a high-energy, high-power explosive product that increases rock fragmentation; Pirex®, a
blasting agent designed especially for rock minerals with high pyrite content; and Hidrex®, an explosive specially
designed to control slopes and buffer blasts. ESE Business School at Universidad de los Andes recognized our
continuous development of industry solutions and our highly efficient processes, awarding Enaex the leading
position on the Most Innovative Companies Chile 2015 ranking.
In this Annual Report, we further integrate financial, social and environmental results. Regarding the environment,
the Company continues to work on the 2006 Clean Development Mechanism (CDM) projects to reduce nitrous oxide
emissions at the Prillex complex in Mejillones. On June 26, the United Nations renewed accreditation for the project,
82015 ANNUAL REPORT / INTEGRATED REPORT
Juan Eduardo Errázuriz O.
CHAIRMAN
9
which began in 2006, for a second, seven-year period. The Company's energy efficiency projects also continue,
translating into significant energy savings. Today, the Company has the capacity to cogenerate nearly 50% of its
electric power consumption, reducing CO2 equivalent emissions by approximately 30,000 tons annually. The
international organization Carbon Disclosure Project (CDP) recognized Enaex as one of the eight best companies in
Latin America and the best in Chile in terms of climate change management.
We are optimistic about our future and see much potential for growth. We will continue to work in close coordination
and alignment with our suppliers and clients, to whom we are thankful for their confidence and support of our
operations.
I would like to thank our employees, clients, suppliers, team of banks and bond holders who have accompanied us
throughout the years and all challenges and goals we have set for ourselves. To our new employees from Britanite
and Davey Bickford, I offer a warm welcome and an invitation to join our continued efforts to expand in local and
international markets while we strengthen our leadership in manufacturing, quality, sustainability and innovation.
Likewise, I am grateful to the shareholders who have placed their trust in us and to the directors who have taken part
in this endeavor.
COMPANY INFORMATION
THE COMPANY AT A GLANCE
102015 ANNUAL REPORT / INTEGRATED REPORT
11
MissionTo grow along with clients, supplying
high-quality Ammonium Nitrate,
related chemicals and mining services.
To provide world-class safety standards,
reliability and innovative services. To
establish a global presence and
leadership in Latin America. To
generate value for shareholders and
employees. To be recognized as a
company that is respectful of the
community and the environment.
VisionTo be the mining industry's most prestigious company, delivering �rst-rate blasting solutions in the most important regions of the world.
COMPANY INFORMATION
The CompanyEnaex S.A., a subsidiary of the Sigdo Koppers Group, has more than
95 years'
experience in the explosives market. Over the years, the Company has become the world's third largest producer of low-density Ammonium Nitrate. In 2015, it established a significant global presence, consolidating its position as the leading provider of comprehensive rock fragmentation services for the mining industry in Chile and Latin America.
122015 ANNUAL REPORT / INTEGRATED REPORT
Enaex thinks big.
The Company earned several recognitions and
certifications in 2015. Phibrand named Enaex the
Best Domestic Supplier 2015 on its ranking of mining
service suppliers, while Universidad de los Andes
awarded the Company first place on its Most
Innovative Companies Chile 2015 ranking for the
mining services sector. Finally, the international
organization Carbon Disclosure Project (CDP) recognized
Enaex as a leader in Chile and Latin America in its
Annual Climate Change Management Report.
The Company is known for its innovation, sustainability,
exceptional quality, safety and passion for service.
These values are crucial to satisfying client needs and
providing on-site solutions.
Enaex owns the world's largest Ammonium Nitrate
production complex: Prillex América. The plant has a
nominal capacity of 850 thousand tons/year and
produced a total of 782 thousand tons of Ammonium
Nitrate in 2015.
Enaex S.A., has contracts with a large portfolio of
important clients, including the region's main open-pit
and underground mines. In Chile, Enaex supplies the
world's most prestigious mining companies with rock
fragmentation and blasting services. The Company has an
extensive network of service plants to meet client needs
and requirements. Located at the main mining sites
throughout Chile, each plant provides a variety of services
for the mining industry, such as: shot blasting, loading
blasting agents, shallow mooring, plugging blast holes,
checking blasting holes, and magazine management.
In the rest of South America, Enaex stands out for its
continuous growth. In Argentina, the Company's subsidiary
Enaex Argentina SARL has a bulk emulsions plant in
operation since 2014. In Peru, Enaex acquired a 80%
interest in Chemtrade, which holds an Ammonium
Nitrate supply contract for Minera Antamina, Peru's
largest and one of the world's most important open-pit
mines. In May 2015, Enaex strengthened its presence in
Brazil, acquiring a 100% interest in the country's largest
manufacturer and seller of civil explosives and initiation
systems, IBQ Industrias Químicas (Britanite). The acquisition
solidified Enaex's position as the region's leading mining
services provider.
In June 2015, Enaex began to expand beyond Latin
America, acquiring a 91% interest in Davey Bickford, a
world leader in manufacturing electronic detonators. The
French-based company has offices in Australia, Chile and
the United States.
The Company's growth is aligned with the needs of the
community and the environment. It is underpinned by a
variety of sustainability initiatives, the most noteworthy of
which is the Carbon Credit project under the Kyoto
protocol and the United Nations. The project has resulted
in annual CO2-equivalent reductions of nearly 1 million
tons, making the initiative the most important of its kind
in Chile.
13COMPANY INFORMATION
(in thousands of US$)
Summary of Consolidated Financial Results
EBITDA
2008
2009
2010
20112013
66,548
110,153
92,461
142,341150,476
2012
152,348
2014
2015
154,170
180,657
14
2008 2009 2010 2011 2012 2013 2014 2015
Sales 321,119 311,717 409,468 575,149 641,429 648,482 645,950 761,766
Net Operating Income 52,024 80,685 91,980 108,192 126,211 122,505 130,341 148,629
Sales Margin 16% 26% 22% 19% 20% 19% 20% 20%
EBITDA 66,548 92,461 110,153 142,341 152,348 150,476 154,170 180,657
EBITDA Margin 21% 30% 27% 25% 24% 23% 24% 24%
Profit for the year (Net Profit) 56,956 69,755 77,196 79,045 90,907 93,914 99,148 104,581
Assets 608,671 621,499 683,193 746,161 816,351 788,259 835,547 1,097,355
*EBITDA calculations do not include other income (losses) for 2009, 2010 and 2011.
Key Figures for Enaex 2008 2009 2010 2011 2012 2013 2014 2015
Average Price of Ammonia (US$/ton) 593 272 406 577 605 547 549 449
Ammonium Nitrate Production (thousands of tons/year)
466 472 642 738 811 773 782 782
Number of Employees 1,219 1,221 1,311 1,392 1,558 1,703 1,970 3,533
Number of Production Plants 4 4 4 4 4 5 7 13
Number of Service Plants 20 20 22 23 25 25 25 24
Number of Mobile Manufacturing Units 70 69 70 71 86 100 106 124
2015 ANNUAL REPORT / INTEGRATED REPORT
2 0 0 8
2 0 0 9
2 0 1 0
2 0 11
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5
504
543
671
834
853
838
867
937
Explosives Volume(Thousands of Tons)**Explosives, Ammonium Nitrate and Chemicals
2 0 0 8
2 0 0 9
2 0 1 0
2 0 11
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5
321
312
409
575
641
648
646
762
Enaex Sales Revenue(in mill ions of US$)
15COMPANY INFORMATION
16
COMPANYHISTORY
2015 ANNUAL REPORT / INTEGRATED REPORT
17COMPANY INFORMATION
1923Explosive manufacturing began at the Río Loa plant. The corporate name was changed to Compañía Sudamericana de Explosivos.
1983Production of nitric acid and Ammonium Nitrate began at the plant in Mejillones (Prillex América), allowing the Company to independently supply itself with the main raw material in its explosives.
1987The Company was privatized through acquisition by Chilean investors, FAMAE, and U.S.-based Austin Powder Company.
1972Through the Chilean Economic Development Agency (CORFO), the Chilean government took full control of the Company, changing its name to Empresa Nacional de Explosivos.
1990Sigdo Koppers acquired a 33% interest in Enaex S.A.
1999Production of Ammonium Nitrate began at the new plant in Mejillones.
2000The Company acquired 56.55% of Samex (Peru), boosting Samex's growth and Enaex's international expansion.
2001Enaex earned the National Quality Award (Premio Nacional a la Calidad) in the large corporation category.
2003Enaex and Dyno Nobel ASA merged their subsidiaries in Peru to create a new company, Dyno Nobel Samex S.A., which provides comprehensive blasting services in the Peruvian market.
1991Enaex was formed as a publicly held corporation.
1992Construction of a new Ammonium Nitrate plant began on the Company's property in Mejillones.
1997The Ammonium Nitrate project began with an investment of approximately US$130 million in a new plant with production capacity of 350,000 tons/year, bringing the Company's total capacity to
450,000 tons annually.
1994Enaex S.A. and Austin Powder Co. created Enexsa S.A. in Peru, which subsequently changed its name to Samex S.A.
1989The Company's corporate name was changed to ENAEX S.A.
1993Sigdo Koppers increased its ownership interest in Enaex to 50.01%. Production capacity at the nitric acid and Ammonium Nitrate plant increased.
2006The Company carried out a successful capital increase of US$68 million and secured two loans totaling US$125 million in order to finance the new Ammonium Nitrate plant in Mejillones. The Company decided to implement a carbon credit project in Mejillones.
18
Compañía de Explosivos de Chile was founded on November 9.
1920
2015 ANNUAL REPORT / INTEGRATED REPORT
2010The new Ammonium Nitrate plant (Panna 4) opened, bringing total annual production to
850,000
tonsand making Enaex S.A. the owner of the largest explosive-grade Ammonium Nitrate production complex.
2011The Prillex complex reached its maximum, nominal capacity, at 850,000 tons of Ammonium Nitrate per year. UNFCC approved the Panna 4 carbon credit project. Enaex solidified its position as the national leader in CO2 reduction and emission of carbon credits (Certified Emission Reduction, CERs).
2012Enaex acquires a one-third stake in IBQ Industrias Quinimas (Britanite). In late 2012, Enaex launched a new project called "The New Enaex Cycle", updating its image and headquarters, aligning them with new growth and productivity challenges.
2013Contracts were renewed with major mining clients in Chile and new contracts were signed for sites owned by Antofagasta Minerals and Anglo American. Enaex was awarded 90% of the tons put out for bid in 2013. Sales of high explosives exceeded 2012 figures by 26%. This year was key in defining Enaex's focus on a model based on continuous innovation.
2014In Peru, the Company acquired a majority interest in Chemtrade, a company through which Enaex was awarded the Ammonium Nitrate supply contract for Minera Antamina. In Chile, new contracts were signed with the Collahuasi mines, increasing Enaex's domestic market share.
In the first half of 2015, Enaex became the
sole shareholder of IBQ Industrias
Químicas (Britanite). In the second half of
the year, it acquired 91% of the Davey
Bickford Group, a world leader in
manufacturing electronic initiation systems
for the mining industry. Phibrand, a
Chilean company, named Enaex the Best
Domestic Supplier for the mining industry.
The Company also earned first place on the
Most Innovative Companies Chile ranking
by Universidad de los Andes. Finally, in
October 2015, Enaex conducted its first
bond issuance on the local market, for a
total of UF 2.5 million.
2015
2008The carbon credit project's certified emissions reduction initiative was launched. Subsidiary Enaex Servicios S.A. was created and the Company was split into manufacturing and service divisions. Enaex sold its share of Peruvian affiliate Dyno Nobel Samex to Orica.
2009The carbon credits project was approved under the Kyoto Protocol and the United Nations officially issued the first emissions reduction certificates, allowing Enaex to sell its carbon credits to Mitsubishi Corporation in Japan.
2007Subsidiary Enaex Argentina SRL was created to serve the growing Argentine market. The carbon credit project and construction of a new Ammonium Nitrate plant began.
19COMPANY INFORMATION
CORPORATEGOVERNANCE
202015 ANNUAL REPORT / INTEGRATED REPORT
Chief Executive Officer (CEO)Juan Andrés Errázuriz Domínguez / 9.350.009-1Civil Engineer
Chief Financial Officer (CFO)Pablo Busquet Errázuriz / 11.472.210-3Business Administration
Chief Executive Officer, Enaex Servicios S.A.Edmundo Jiménez Gallardo / 12.622.945-3Civil Engineer
Vice President, Supply Chain Pablo Wallach Beovic / 12.585.165-7Civil Engineer
Vice President, Human ResourcesPatricia Valenzuela Urra / 8.267.412-8Psychologist
Vice President, ProductionClaudio Yévenes Constanzo / 9.383.155-1Civil Engineer
Planning, Development and Control ManagerFrancisco Baudrand Biggs / 8.922.866-2Civil Engineer
Regional Sales ManagerMiguel Ángel Peña Duarte / 10.279.473-7Civil Engineer
Operations Support Manager Jorge Rioja Ovando / 6.553.741-9Civil Engineer
Production ManagerAlejandro Castillo Hamati / 9.152.917-3Civil Engineer
HSEC ManagerLeonel Cataldo Morales / 8.054.812-5Civil Engineer
Major Companies Manager Erick Muñoz del Pino / 7.719.693-5Civil Engineer
Operations Manager Luciano López Cordero / 12.227.163-3Civil Engineer
Project ManagerJuan Suban Padilla / 8.691.388-0Civil Engineer
Corporate ControllerFernando Moreno Pérez / 10.742.624-8Accountant
Board of Directors
21COMPANY INFORMATION
Company Management
*Member of the directors' committee, created in accordance with art 50 bis of the Corporations Law.
VICE CHAIRMAN*Jorge Carey Tagle4.103.027-5Attorney
Kenneeth Pickering Ewen12.087.835-2Mining Engineer
Norman Hansen Fernández6.062.403-8Sociologist
Sergio Undurraga Saavedra*4.280.259-KBusiness Administration
Naoshi Matsumoto Takahashi*3.805.153-9Business Administration
Alejandro Gil Gómez5.054.638-1Businessman
Horacio Pavez García3.899.021-7Civil Construction
Juan Pablo Aboitiz Dominguez7.510.347-6Civil Engineer
CHAIRMANJuan Eduardo Errázuriz Ossa4.108.103-1Civil Engineer
As of December 31, 2015
Ownership Structure
12.59%Grupo Karlezi
Solari
14.42%Pension Fund Administrators
(AFPs), Investment Funds and Other Minority Shareholders
60.72%Sigdo Koppers S.A.
12.27%Inversiones Austin Powder Chile Ltda.
In late 1990, the Sigdo Koppers S.A. Group acquired an
interest in Enaex. Later, in 1993, the group became the
Company's controlling shareholder. This prominent group
has investments in: the service sector, through Ingeniería y
Construcción Sigdo Koppers, Puerto Ventanas S.A. and its
subsidiary Fepasa; the industrial sector, through Enaex,
Magotteaux and Compañía de Hidrógeno Bío Bío; the
automotive sector, through SKBergé S.A.; and importation,
sales and leasing of heavy machinery, farm equipment
and transportation for construction and inputs, through
SK Comercial S.A.
As of December 31, 2015, Enaex S.A.'s share capital was distributed as follows:
Shareholder No. of Shares O wnership Interest (%)
Sigdo Koppers S .A. 74,687,564 60.72%
Invers iones Aust in Powder Chi le Ltda. (1) 15,096,100 12.27%
Lucec Tres S .A. (2) 5 ,300,000 4 .31%
Moneda S.A. - Pionero Fondo de Invers ión 5 ,252,000 4 .27%
Invers iones S anta Fi lomena L imitada (2) 4 ,912,668 3 .99%
Invers iones y Valores Harabuquen Ltda. 4 ,359,373 3 .54%
Invers iones Auguri Ltda. (2) 2 ,850,000 2 .32%
Agrícola Cechi Ltda. (2) 2 ,425,000 1 .97%
Eight y Three LLC 1 ,575,000 1 .28%
Moneda Corredora de B olsa Ltda. 757,382 0 .62%
Invers iones S chwember y Cia Ltda. 738,000 0 .60%
Compass Smal l Cap Chi le 452,491 0 .37%
(1) Non-controlling shareholder with more than 10% interest. Tax ID No.: 96.935.940-5
(2) New non-controlling group with more than 10% interest.
As of December 31, 2015, Enaex S.A.'s share capital was divided into 123,000,000 shares. The Company's 12 main shareholders were:
222015 ANNUAL REPORT / INTEGRATED REPORT
Corporate Governance Practices
23COMPANY INFORMATION
Enaex has a Corporate Governance Code and formal
policies on issues including: proposal for candidates
for director, induction of new directors, hiring
independent consultants, self-assessment by the board
of directors, board confidentiality, use of insider
information, and succession of key executives.
Risk ManagementEnaex's Corporate Risk Management Model includes a
Risk Committee as well as formal risk management
policies and procedures designed to provide reasonable
certainty that objectives will be achieved and the
Company's value will be maximized.
The Internal Control Area is responsible for coordinating
updates to the corporate risk map, monitoring
mitigation plans, auditing the main business risks and
eliciting commitments to improve.
Communication and Independent Reporting on Control AreasDirect, ongoing communication is maintained through
quarterly board meetings. Once a year, the Chief
Executive Officer is excused from the meeting while the
Board analyzes performance in conjunction with:
a. Independent Auditors: The external audit program
and its results, deviations and potential conflicts of
interest related to the audit company or its personnel,
among other issues.
b. The Chairman of the Risk Committee: Proper
functioning of the risk management process, methodology,
risk map, residual risk levels, recommendations for
improvement, action and contingency plans, among
other issues.
c. Internal Controller: The Internal Audit program
and its results, process risks, detected weaknesses,
recommendations for improvement, follow-up on
action plans, strengthening the control environment
and the effectiveness of the crime prevention model.
d. Human Resources Division and Sustainable Development Unit: Effectiveness of diversity and
inclusiveness policies; organizational, social and cultural
barriers that could inhibit natural diversity; as well as
the usefulness of and reaction to sustainability reports
distributed to relevant stakeholders.
Ethical Behavior and Self-RegulationThe Enaex Code of Conduct establishes an ethical-
behavioral framework for directors, employees and/or
consultants. Knowledge and application of the
provisions are mandatory.
The Enaex Corporate Ethics Committee is responsible
for promoting values and ethical conduct within
the organization, addressing and resolving complaints
and conflicts of interest in a timely matter and
enforcing the Code of Ethics.
Complaint ChannelEnaex has a formal procedure for processing reports
of possible irregularities or illegal activities so that
each is duly addressed. The procedure—which takes
complaints from employees, shareholders, clients,
suppliers or third parties—guarantees whistle blowers
anonymity and freedom from retaliation.
Crime Prevention Model (Law 20,393)Law No. 20,393 establishes criminal liability of legal
entities for the crimes of money laundering, terrorism
financing and bribery of a public national or foreign
official. To uphold the law with a preventative
approach and maximum diligence, Enable has a
long-standing Crime Prevention Model. The model
is has been certified by an external company,
BH Compliance, and is periodically audited to
confirm validity.
24
Listening to others, providing effective solutions and making a difference in the life of others.
2Passion for Service:
Being ever-alert to risk situations, respecting safety and occupational health regulations, being environmentally responsible and protecting individual integrity.
1Employee Wellness:
Corporate Values:Enaex Spirit
2015 ANNUAL REPORT / INTEGRATED REPORT
Keeping our word, fulfilling our promises in a timely manner and assuming responsibility for decisions, actions and results.
3We Ful�ll Our Commitments:
Striving for the highest quality standards, performing tasks with excellence and team work, and valuing honesty and trust.
4We Strive for Excellence:
25COMPANY INFORMATION
• To promote ethical behavior and
collaboration between all the organization's
members.
• To always seek long-term profitability for
shareholders and investors, meeting high
transparency and quality standards.
• To promote close, transparent dialog with the
communities where the Company operates,
actively participating in the generation of
social capital, especially through education
and environmental protection.
• To endeavor to support local suppliers and
socially responsible behavior, fostering
collaborative relationships.
• To build cordial relationships with the relevant
authorities through timely compliance with
applicable legal standards.
• To maintain and promote fair competition
based on ethical business practices.
1Consideration and Collaboration with Stakeholders
• To promote environmental responsibility in all
business areas seeking, first and foremost, to
comply with all current rules and regulations.
• To progressively increase the efficiency with
which the Company uses and manages natural
resources.
• To maintain its leadership position in climate
change management, maintaining low-carbon
Ammonium Nitrate production and promoting
energy efficiency initiatives.
• To encourage implementation of management
systems that ensure ongoing process
improvement as well as identification and
control of environmental aspects.
2Environmental Protection
• Conscious of the value of accepting differences,
Enaex seeks to eliminate discrimination and
exclusion based on ethnicity, gender or other
aspects that could affect individual dignity.
3Inclusiveness and Diversity
• Enaex considers innovation a key element in
creating long-term value. Thus, the Company's
long-term strategy includes innovation in processes,
products and services in areas like safety,
sustainability and infrastructure.
4Innovation
Policy on Sustainability, Diversity and Inclusiveness
Through its policy on sustainability, diversity and inclusiveness, Enaex seeks to establish measurable, long-term commitments related to four main themes:
262015 ANNUAL REPORT / INTEGRATED REPORT
To produce long-term profitability while upholding high standards of quality, sustainability and transparency.
2Investors and Shareholders
To provide comprehensive solutions, focusing on client needs and expectations, delivering excellent, innovative, competitive products and services in a timely manner.
3Clients
To maintain and promote fair competition based on ethical business practices.
7Competitors
To maintain a transparent relationship and actively fulfill applicable legal standards.
6Regulatory Authorities
To promote open, transparent and harmonious communication, contributing to the creation of shared value.
5Suppliers
To support the social, economic and environmental development of the communities in which we operate, actively helping to generate social capital.
4Community Our business success depends on harmonious, hand-in-hand work with all our
stakeholders. Thus, we must work to identify the challenges facing the Company and
areas for improvement.
Enaex maintains a holistic, strategic relationship with each of its primary stakeholders,
thereby enabling effective communication, in pursuit of mutual collaboration and
sustainable competition.
Enaex's primary stakeholders and the corresponding relationship management plan is
described below:
Stakeholders
To provide equality, opportunities for development, participation and team work while encouraging dialog and safety.
1Employees
27COMPANY INFORMATION
CAPÍTULO 2 / STRATEGY
30
BUSINESS MODEL
2015 ANNUAL REPORT / INTEGRATED REPORT
31STRATEGY
• Specialized sales team
• On-site technical support
• Work-site staff
• CRM system
• Client satisfaction survey
• Major mining companies with operations in Argentina, Australia, Brazil, Chile, Colombia and Peru
• Clients purchasing Prillex Ammonium Nitrate and specialty explosive products in more than 40 countries
• Civil works clients
• Comprehensive logistics for product and service distribution in Chile and around the world
• The world's largest Ammonium Nitrate production complex
• Packaged emulsions plants
• Bulk emulsions plant
• Detonator plant
• Service plants in mining work sites
• 124 Mobile Manufacturing Units
• Highly committed, competent employees
Specialized product manufacturing:
• Ammonium Nitrate
• Bulk explosives
• High explosives
• Initiation systems
• Accessories
• Customized blasting services
• Technological development
• Innovation
• Carbon credit project
• Energy efficiency
• Suppliers of inputs
• Suppliers of technology
• Innovation managers
• Firms specializing in research and development
• SK Group companies
• Legal advisors
• Audit firms
• National and international banks
• Bond holders
• Inputs
• Compensation
• Depreciation and amortization
• Maintenance
• Logistics
• Other costs
Value Proposal
CostsKey
PartnersKey
ActivitiesKey
Resources
Client Relationships Clients
Revenue Sources
Distribution Channels
• Sale of blasting services
• Sale of raw materials and bulk explosive products
• Sale of high explosives
• Sale of initiation systems and accessories
Products and Services
Enaex owns the world's largest Ammonium Nitrate production complex.
Ammonium Nitrate, Explosives and
Other ProductsThanks to our vast experience in Ammonium
Nitrate production, Enaex has become the
largest producer in Latin America and third in
the world. With 95 years in the industry, it has
established its leadership on the market for
blasting services for large-scale mining in Chile
and become a major player in the region's
explosives manufacturing market.
32
• Prillex: Low-Density Ammonium Nitrate
• Prillex LR: Low-Density Ammonium Nitrate
(Long Range)
• Prillex ULD: Ultra Low-Density Ammonium
Nitrate
• Prillex HPURE: Emulsion-Grade High Purity
Ammonium Nitrate
• Prillex FR: Ammonium Nitrate for Emulsions
• 84% Ammonium Nitrate Solution
• Emulsions
• Water Gels
• Bulk ANFO (Aluminized)
• Heavy ANFO (pourable and pumpable)
Raw Materials for Explosives
Blasting Agents
Product Family
• ANFO in sacks
• Packaged Emulsions
• Dynamite
• Coal Mine Permissible Dynamite
• Seismic Exploration
• Boosters
• Cone Boosters
• Landslide Control
• Non-electric Detonators
• Electric Detonators
• Electronic Detonators
• Detonating Cords
• Koolkap Self-Inflating Bags
• Power Deck Plugs (Taponex)
• Quikdraw Cannons
• Flame Retardant
• Expansion Cement
• Rock blasting accessories
• 60% Nitric Acid
High Explosives
Initiation Systems
Other Products
Other Chemical Products
Ammonium Nitrate is also sold as a raw material
used for on-site manufacturing of blasting agents
at various mining sites. Enaex provides client- and
site-specific solutions using Ammonium Nitrate
and other products. Today, the Ammonium Nitrate
produced by the Company is sold directly to
clients within Chile and abroad, including important
destinations like Peru, Argentina, Mexico, Japan
and Australia.
In its explosives product range, Enaex produces a
large amount of high explosives—including
various types of dynamite, boosters, cartridge
emulsions and detonators—at the Río Loa plant in
Calama. These products are used in blasting for
open-pit and underground mining as well as
small- and medium-scale mining operations.
2015 ANNUAL REPORT / INTEGRATED REPORT
33STRATEGY
2015 Sales Revenue by Product/Service
2%Chemical Products (Ammonia, Nitric
Acid)
12%Blasting
Accessories
1%Other
39%Bulk (ANFO, Matrix
Solution, and Ammonium Nitrate
in Mines)
11%Cartridged
(Dynamite, APD, Emulsions)
22%Direct Sales of
Ammonium Nitrate
13%Blasting Services
and Technical Support
21%Other
79%Chile
2015 Sales Revenue by Market
34
Blasting Services and Client Technical Support
Thanks to ongoing efforts to meet our clients' needs
and add value, Enaex has become the largest
explosives manufacturer and distributor in Chile and
South America. Likewise, with its sights set on offering
ever-more efficient products, Enaex is also Chile's
leading provider of comprehensive rock fragmentation
services.
The Company has an extensive network of service
plants to meet client needs and requirements. Located
at the main mining sites throughout Chile, each plant
provides a variety of services for the mining industry,
such as: shot blasting, loading blasting agents, shallow
mooring, plugging blast holes, checking blasting
holes, and magazine management.
The blasting designs on which Enaex's services
are based may be submitted by the client or proposed
by the Company's highly qualified, experienced
engineering team. These proposals enable Enaex to add
value to client operations by training, advising and
recommending the most appropriate techniques and
products for each situation.
Leveraging its vast experience in blasting impact
and knowledge of downstream crushing and grinding
operations, the Company has optimized the fragmentation
process and offers complete blasting engineering services,
from blast hole design to blasting design.
Enaex offers the entire value chain for comprehensive
rock fragmentation services. The quality of its products,
ongoing innovation, technological development, efficient
logistics and commitment to the client have made it a
leader in the region.
2015 ANNUAL REPORT / INTEGRATED REPORT
35STRATEGY
Clients YearCl ient Mine Sales Began
TECK Quebrada B lanca 2012
Minera Doña Inés Col lahuas i 2015de Col lahuas i
Grupo Vale Mines in Braz i l l 1995 R ío Tinto Mines in Austra l ia 2009 Other companies Cía . Explotadora de Minas S .C .M. 1998 Minera Mer id ian - El Peñón 2000 Cemento Polpaico 2000 Atacama Kozán 2002 Haldeam Mining Co. S .A. 2006 Construc tora Hocht ief Tecsa S .A. 2008 SQM Nit ratos 2008 Mirabela 2009 Cerre jón 2010 Construc tora Fe Grande - Impregi lo Angostura 2010 Minera Flor ida 2011 B elo Monte 2011 Newmont 2012 Or ica - Exsa - Maxam -
YearCl ient Mine Sales Began
Codelco Coldelco Nor thern Division (Chuquicamata, R adomiro Tomic, Minist ro Hales) 1922 El Teniente D iv is ion 1922 Codelco El Salvador D iv is ion 1959 Codelco Andina D iv is ion 1970
Anglo Amer ican Mantos B lancos 1986 Los Bronces 1995 Soldado 1996 Mantoverde 2007
BHP B i l l i ton Escondida 1989 Cerro Colorado 2015 Antamina (Peru) 2014
Antofagasta Michi l la 1990Minerals Los Pelambres 1995 Cent inela 2000 Antucoya 2014 Encuentro 2014
KGHM Sierra Gorda 2011 Franke 2011
Service Plants
Our service plants, which are located near clients' mineral
deposits and mining sites, feature all the equipment
necessary for safe, high-quality, productive operations.
The most noteworthy include: storage silos for
Ammonium Nitrate and emulsions, magazines for storing
high explosives and initiation systems, equipment for
transporting raw materials, support offices and mobile
manufacturing units. The latter are specially designed
to transport raw materials (Ammonium Nitrate and oil) to
be mixed on-site where they will be used. Mobile
manufacturing units are custom designed and equipped
for each mine, in accordance with the most stringent
safety standards.
As of December 2015, Enaex had a fleet of 124 factory
trucks for open-pit mining operations and 12 trucks for
underground mining operations.
Production Plants
36
Mobile Manufacturing UnitsOperational Support Chile
Type of Mobile Equipment and/or Vehicle TOTAL
Mobile Manufacturing Units* 124
Mobile Loading Equipment for Underground Mining 12
Plugs 44
Cranes 12
Grinders 4
Mobile magazines 34
Pick-up trucks 168
Matrix solution (emulsions) transport trucks 60
Bulk Ammonium Nitrate transport trucks 47
Nasol transport trucks 4
Totales 509
Chile
Ammonium Nitrate Plant (Prillex América) Located in Mejillones. Production of Ammonium Nitrate.Current production capacity: 850 thousand tons/year.
Multimatrix Plant (Prillex América)Located in Mejillones. Production of bulk emulsions.Current production capacity: 250 thousand tons/year.
Dynamite and Explosives Plant (Río Loa)Located in Calama. Production of cartridge explosives (dynamite, pentolite, PETN), ANFO in sacks and bulk emulsions.
Initiation Systems Plant (Río Loa)Located in Calama. Production of non-electric detonators, non-electric dual detonators, non-electric trunk line detonator.
Argentina
Emulsions Plant and Distribution Center (Campanario)Located in the Province of San Juan. Production of bulk emulsions.
France
Electronic Detonators and Other Accessories PlantLocated in the city of Héry. Production of electronic detonators and other accessories.
Brazil
Emulsions and Boosters PlantLocated in Quatro Barras. Production of emulsions, packaged emulsions, boosters and other.
*23 are high tonnage Milodón trucks.
2015 ANNUAL REPORT / INTEGRATED REPORT
Key Partners
DomesticBBVABanco BiceBanco Crédito e InversionesBanco de ChileBanco EstadoBanco ItaúBanco SantanderBanco SecurityCorpbancaHSBCScotiabank
Main Banks
InternationalBNP ParibasCorpbanca ColombiaCorpbanca New York Citibank N.A.HSBC New YorkScotiabankEDCBank of Tokyo-Mitsubishi Bank of America Merrill LynchJ.P Morgan
• Physical damage, which covers physical assets under company ownership or responsibility, including loss due to business interruption resulting from
an accident.
• Corporate third-party civil liability (third-party damages and operations in Mejillones port terminal).
• International transport for import/export goods.
• Vehicles and mobile equipment.
• Transportation and cabotage for all goods transported between the plants or distribution centers within Chilean territory.
• Personal accident coverage for all executives.
• Insurance policies on local sale and export loans.
The main insurance policies are detailed as follows:
For supply of ammonia, the main raw material in the production of Ammonium Nitrate, Enaex holds a long-term supply contract with Transammonia, a major player on the international ammonia market.
Enaex is constantly developing supplier relationships in order to obtain the best supply conditions. It establishes strategic supply relationships, especially for the raw materials, packaging and products that constitute approximately 80% of its purchases.
By reinforcing corporate management structures, Enaex has achieved interesting synergies, which are further enhanced by our ongoing search, beyond ocean borders, for global supply opportunities.
To ensure sustainability, Enaex also balances its suppliers to include both Chilean and international suppliers capable of making and faithfully fulfilling commitments.
The Company's main suppliers of raw materials and services include: Transammonia Inc., Compañía de Petróleos de Chile and Pst Industries, among others.
Suppliers
Deloitte Auditores y Consultores Ltda.
Auditors
37STRATEGY
Legal Advisors
Villaroel y Compañía Limitada.
INNOVATIONAND DEVELOPMENT
382015 ANNUAL REPORT / INTEGRATED REPORT
Enaex has been working on systematizing the innovation
management process in order to make innovation
sustainable over time. A significant part of these efforts
has focused on developing specialized products and
services to meet our clients' specific and significant
everyday needs. Innovation focus points were established
in order to harness factors affecting competitiveness and
their respective solutions as guides on our search for new,
positive, high-impact projects.
In 2015, the culture of innovation was strengthened.
The first step in the process was inviting the entire
organization to be part of this cultural change. Then,
a plan was elaborated to spread innovation throughout
all the company's divisions. The processes and
methodologies for successful innovation set forth in the
plan demand a high level of discipline and alignment
with the Company's strategic objectives.
The Innovation Intensity Index, which measures value contribution to results, reached
13.9%Nearly 60 projects in the innovation portfolio.
The wide collaboration networks and international
strategic alliances created as part of innovation
management also marked an important milestone
in 2015.
Finally, it is important to highlight that as a result of
great effort by each of the persons who has worked to
boost innovation in the Company, Enaex earned first
place in the Mining Services Category of Universidad
de los Andes' Most Innovative Companies 2015 ranking.
39STRATEGY
Factors Affecting Competitiveness and Enaex Solutions
Our solutions seek to solve the problem inherent to mines. As copper concentrations decrease, greater depths must be reached to located it, making efficiency and proper slope control essential.
1Copper Mineral Law:
Solution for slope control and perimeter blasting
Hidrex® and Panfex®
Explosives specially designed to control slopes and blasts.
Since the blasting process has an important effect on the energy consumed during crushing and grinding, we seek to harness chemical energy and thereby optimize high-cost electric energy.
2Energy:
High Fragmentation
Energex®
A high-energy, high-power explosive product that improves rock fragmentation.
Solutions that aim to slow the reaction of rock minerals with high pyrite content.
3Reactive Rocks:
Pirex® This blasting agent is specially designed to retard the reaction of Ammonium Nitrate and the pyrite in the rock.
402015 ANNUAL REPORT / INTEGRATED REPORT
Solutions that seek social innovation in the blasting process in order to achieve sustainable development and community protection.
5Sustainability:
Explosives Carbon FootprintApproximately 800,000 tons of CO2 equivalent are reduced annually. The Annual Climate Change Management Report published by the international organization Carbon Disclosure Project (CDP) recognized Enaex as one of Chile and Latin America's best companies on this item.
Blast Site Watch®
A system that measures and controls the vibrations from blasts located near communities.
Solutions that seek to increase productivity of the blasting processes.
4Productivity and Logistics:
Scaled Solutions
Milodón® Truck
With its 30-ton storage capacity, this is the world's largest MMU for manufacturing surface blasting explosives.
UBT Truck Designed to manufacture and load emulsions in underground mines, this autonomously powered truck can operate for more than 12 hours.
EVS®Enaex Value Simulator is a technological tool developed to quantify the value generated by the products for operational mining processes
The Company's assets include several trademarks. Given their
track record and use, some of the brands, including Amongelatina®,
Iniciador APD®, Softrón® and Enaline®, have become market
bellwethers. Milodón® is another of the Company's noteworthy
trademarks. In terms of products, the following stood out in
2015: Pirex®, Hidrex®, Energex®, Vertrex® and Panfex®. In special
technological developments, the InfoBlast® and IntelliDrill®
trademarks were registered.
The Company recently began registering trademarks like Enaex®
and Prillex® for use in some of the countries where the Company
plans to conduct business, including but not limited to: Australia,
New Zealand, Indonesia and Japan. Furthermore, it owns
the rights to emulsions manufacturing technology as well as QED
Plus—Austin Powder Co.'s design, evaluation and blasting
simulation software.
Trademarks, Patents and Licenses
41STRATEGY
OPPORTUNITIES AND RISK FACTORS
422015 ANNUAL REPORT / INTEGRATED REPORT
Innovation and Development:Enaex has developed a technology portfolio including
products and processes through in-house development,
licensing agreements and technology exchange with
industry leaders. This culture of innovation has enabled
Enaex to win several bidding processes with new
clients and report increasingly better results. With the
acquisition of Davey Bickford, Enaex solidified its
international leadership in mining innovation.
Training to Improve Productivity:All Enaex employees have access to training and
development programs which aim to help the
Company meet high quality standards and maintain
long-term relationships with all clients and suppliers.
Multicultural Communication:As an organization with a newly established global
presence, communication between the group's
subsidiaries is essential to objective alignment, innovation
culture, efficient processes and across-the-board
service quality.
Opportunities
Developing Synergies:With the acquisition of new subsidiaries in 2015, Enaex
covers the entire rock fragmentation value chain and
boasts important synergies to be leveraged in the short-
and medium-term.
On one hand, the incorporation of Britanite expands the
civil works knowledge base and offers direct access to
iron and aluminum markets in Brazil, where a respective
7% and 12.5% of the world's reserves are located.
On the other hand, the addition of Davey Bickford—with
its leadership in initiation systems and presence on
almost all continents—grants the Company access to an
international distribution network.
Enaex continues to boost its regional presence through
its subsidiaries in Argentina, Peru and Colombia as it
becomes the region's leading provider of complete,
comprehensive rock fragmentation service.
In order to create multicultural unity, the Company implemented an integration program for all employees that is promoted in several languages.
43STRATEGY
Risk Factors
Market Risk:The Company is highly exposed to the region's
mining industry, from which approximately 90% of
revenues originate, directly or indirectly. This year's
acquisitions have increased the Company's presence
in other markets in the region and around the world.
Credit Risk:The Company maintains medium- and long-term
relationships with regional clients renowned for their
experience and solvency. On the other hand, insurance
policies have been purchased to cover certain clients
with a different risk profile.
Accident Risk:The Company holds insurance policies to cover
physical loss to its property, losses due to resulting
business interruptions, as well as civil liability.
44
It is important to note that Enaex maintains a sound �nancial position, as re�ected in Feller Rate's maintenance of its risk rating (AA-, Stable outlook) and Fitch Ratings (AA-, Stable outlook) in 2015.
Input and Production Factor Risk:The Company is impacted by variations in international
ammonia prices, which are sensitive to oil and natural gas
prices. To mitigate the risk of fluctuation in this input,
client contracts stipulate periodic rate adjustments based
on indexation formulas that account for this product.
Risks in fluctuations in the cost of other relevant
production inputs, like oil or electricity, are also covered
using indexation formulas.
Financial Risks:The Company manages currency, interest rate and
working capital financing risk. Hedging mechanisms
are in place to mitigate the impact of exchange rate
fluctuations on operating and non-operating results.
In terms of interest rate risk, the Company has decided to
hedge its entire long-term debt in US dollars. It maintains
interest and currency rate swaps with a fixed weighted
average indebtedness rate at maturity of approximately
3.01% annually.
Instrument Fitch Ratings Feller Rate
Stock Level 3 Fi rst c lass, Level 3
B ond L ine AA-(Stable) AA-(Stable)
2015 ANNUAL REPORT / INTEGRATED REPORT
Enaex's Main Consolidated Financial Ratios 2008 2009 2010 2011 2012 2013 2014 2015
Financial D ebt/EBITDA 2 .4x 1 .8x 1 .8x 1 .5x 1 .3x 1 .1x 1 .2x 2.0x
L iabi l i t ies/Equit y 0 .9x 0 .7x 0 .7x 0 .7x 0 .7x 0 .54x 0 .57x 0.98x
EBITDA/Financial Expenses 19.4x 45.1x 31.3x 31.0x 31.6x 32.9x 37.5x 18.8x
45STRATEGY
Enaex's conservative financial policy has resulted in a sound financial position.
For major investment projects, Enaex policy allows for a mixed financing structure, including external sources (local and international banks), publicly tendered bonds, company-generated funds and capital contributions. The Company aims to maintain a conservative medium-term debt structure and comfortable covenant cushion.
The Company's smaller investments aim to sustain growth and ensure normal replacement of operating assets, upgrades and new equipment to expand and improve production capacity, which were generally funded with the Company's operating cash flows.
Financial PolicyShort-term bank debt is generally used to cover working capital needs, which are primarily related to the purchase of ammonia. It is worth noting that levels of short-term bank debt can vary throughout the year as a result of fluctuations in the international price of ammonia and the efficiency of production processes.
Given the importance Enaex places on efficiently managing financial resources and implementing strategies to face exchange market volatility, the Company maintains strict control of its investments, cash flows and working capital while focusing on maintaining its stock and credit ratings.
CAPÍTULO 3 / BUSINESS AREAS
In 2015, important progress was made toward consolidating Enaex as a global company capable of effectively operating in a multinational environment and positioning itself as the world's most prestigious company in the field.
In Enaex's assessment of the 2015-2020 strategic
development plan, this year's acquisitions helped the
Company successfully achieve some of its first goals,
like regional leadership and increased global presence.
The Company also earned recognition for its strong
innovation and development, which has focused on
continuously improving process productivity with an
emphasis on meeting client needs. Thanks to this
effort, the Company won bids with new clients and is
able to offer unique products. The Company's strong
performance was also thanks to our employees, who
have kept the highest quality standards and have
embraced a global culture.
Enaex Argentina SRLEnaex Argentina has been servicing open-pit and
underground mines since 2007. It owns the High
Explosives Plant in Olavarría and, as of 2014, the
Campanario Emulsions Plant (PEC) in the province of
San Juan, which has an annual production capacity of
approximately 65,000 tons. This project secures supply
for local clients, minimizing risks associated with import
substitution policies, increasing competitiveness and
increasing the probability of being awarded future
contracts. The company also performs underground
loading operations with the Underground Bulk
System—the first of its kind in Argentina—using UBS
equipment and emulsions produced at the Campanario
Emulsions Plant.
In late 2015, Argentina's new government took power,
announcing guidelines for a new macroeconomic
framework and economic reforms like elimination of
exchange market and international trade restrictions.
.
Enaex Colombia S.A.SEnaex has been operating in Colombia since 2010, when
it built and opened a high-tech packaged emulsions
plant through a partnership contract with the defense
industry.
The mining energy sector is the bedrock of the
Colombian national economy. Colombia is home to
large-scale, open-pit coal mining operations as well as
gold, nickel, copper, limestone and iron ore operations,
which are becoming important alternatives for the
country's mining development. Likewise, Colombian
roadway and port infrastructure development is in full
swing. Given the topography of the country, these
infrastructure concessions will necessarily include tunnel
construction, meaning significant growth in the demand
for explosives in coming years and important opportunities
for blasting services and technical support.
Chemtrade S.A.C.In 2014, Enaex re-entered the Peruvian market, acquiring
an 80% interest in Chemtrade, an explosives manufacturing
and blasting accessories company. The Company's
Peruvian operations also manufacture pyrotechnic
detonators and ANFO in sacks, which are distributed
primarily to the local market. Products like Ammonium
Nitrate, boosters, dynamite and cartridge emulsions will
be imported, primarily from Chile. In 2015, the four-year
Ammonium Nitrate supply contract with Peru's largest
copper mine, Antamina (BHP) became effective.
Corporate Development Plans
482015 ANNUAL REPORT / INTEGRATED REPORT
49BUSINESS AREAS
Davey Bickford Smith
Davey Bickford AustraliaEnaex Argentina
Chemtrade PeruBritanite
Enaex Colombia
Enaex Chile
Davey Bickford Chile
Davey Bickford USA
Founded in 1961, Britanite is an explosives and rock
fragmentation services company. With more than 50
years of experience, it has strong market share in
recent major infrastructure projects in Brazil.
Britanite's history is marked by entrepreneurial spirit,
determination and the strength of its team. Today,
the company leads its segment in Brazil and operates
in South and Central America. Its main products are
detonating chord, pumpable and cartridged emulsions
and electric and non-electric initiation systems. They
primarily supply the heavy civil construction, mining
E-Blasting®The world's �rst e-portal for explosives sales.
975 employees
Britaniteand quarrying industries as well as a wide network
of distributors. The company differentiates itself by
providing technical support and distribution to these
industries. Headquartered in the city of Quatro Barras,
Britanite operates throughout Brazil and has a small office
in Panama.
In 2015, Britanite developed the world's first e-portal for
explosives sales, called E-Blasting®, which allows users to
purchase products and have them delivered in just a few
steps. The widely used portal was very well-received
by clients.
502015 ANNUAL REPORT / INTEGRATED REPORT
51BUSINESS AREAS
Davey Bickford
French company, Davey Bickford, leads the world in
design, manufacturing and distribution of electronic
detonators, which are known for producing more
precise results in the rock fragmentation process.
Founded in Héry, France in 1831, the company has
nearly 200 years of innovation experience in
detonator chords, electric, non-electric and electronic
detonators. Operating on almost every continent,
Davey Bickford primarily serves the markets of blasting,
excavation and seismic exploration for mining.
With its history of ongoing innovation, growing
10% annually in the last five years, the incorporation
of Davey Bickford broadens Enaex's ability to
innovate and develop new blasting solutions. Davey
Bickford also focuses on safety, from design to
implementation, for all its products. The company
also complements its products with services proven
to increase productivity and save clients time.
These services seek to avoid any uncontrolled
interruptions, such as those caused by radio
frequencies, pulses, electromagnetic, electrostatic
discharge and leakage current.
World leader in electronic detonators and initiation systems.
Nearly
200 years of experience
600employees
52
In 2015, many developed economies recorded higher
growth than in the prior year. This was especially true
in the United States where the GDP grew nearly 2.4%.
Meanwhile, the euro zone expanded nearly 1.5%, up
from the 2014 figure of 0.9%. On the other hand,
Chinese economic growth was about 6.9%, down
from the 7.3% recorded in 2014.
Mining Industry
The economy was dominated by the expected 2015 increase in the US
monetary policy rate, which was raised 25 base points in December
2015. The slowdown in China this year and the increase in copper
production inventories in Chile drove the average price of the red
metal down from US$3.11/lb in 2014 to $2.49/lb in 2015.
In 2016, based on increased demand from China, the United States
and India, copper prices are expected to average $2.15/lb.
These price projections could drive global copper demand upwards
by 2.3% in 2016 and 2.6% in 2017, according to studies by the Chilean
Copper Corporation (Cochilco). Cochilco also cites another reason for
the lower price projected for 2016: global copper supply is expected
to increase 4.6% as a result of expanded capacity and new projects in
Peru, a country expected to become the world's second largest
copper producer.
Copper Prices
Global Economic Performance
Emerging economies grew 4% in 2015, with India
standing out at 7.3%. Chilean economic growth was
similar to the prior year; at nearly 2.0%, its was above the
Latin American average.
In 2016, growth numbers are expected to rise for
developed economies. However, growth projections
place Chinese figures at nearly 6.3%, a decrease compared
to the 2015 figure of 6.9%.
2015 ANNUAL REPORT / INTEGRATED REPORT
Chilean mining operations produced nearly 5.76 million tons in
2015. The 0.25% increase leaves production practically unchanged
in relation to 2014.
In 2016, copper production levels are expected to remain steady,
increasing just 0.1%. According to Cochilco, growth is expected to
resume in 2017 at a rate of 3.1% for a total of 5.95 million tons.
As of year end 2015, the potential project portfolio and existing
investment for 2024 total nearly US$77 billion. If the entire project
portfolio comes to fruition, Chile can be expected to produce nearly
7.84 million tons in 2024.
Molybdenum, the most important sub product in copper production,
reached production levels of nearly 52,700 tons, a 7.8% change
relative to the year prior.
Copper Production
53BUSINESS AREAS
In 2015, the majority of commodities related to the
explosives market experienced price decreases; even
so, total production of these commodities remained
steady relative to the prior year.
On the other hand, these decreases have been offset
by the demand for explosives due to maturation of
mining sites. Reduced mineral grade and increase in
the overburden-ore ratio drive up consumption of
explosives. In other words, more blasting material is
required to keep production constant.
Despite falling commodity prices, the regional market
also remained in line with 2014. New projects and the
drop in mineral grade from mining sites kept the
demand for explosives steady.
Finally, at the local and regional levels, the explosives
market is expected to expand in the short- and
medium- term, primarily due to the project portfolio
in the region's main markets.
Explosives Market
CAPÍTULO 4 / SOCIAL PERFORMANCE
In 2015, following the acquisition of the
subsidiaries Britanite in Brazil and Davey
Brickford in France, Enaex's strategic challenge
is "to become a global company able to
operate in a multinational environment and to
be the industry's most prestigious company in
the world." Consequently, this year marked the
beginning of the second cycle of a cultural
transformation process that promotes
leadership and globalization, while we
continue to strive to become a
high-performance company.
The following section highlights the main
initiatives implemented in 2015.
Recognition ProgramIn 2015, the Company continued its recognition
campaign, which is designed to foster a culture that
encourages positive employee attitudes. This year, the
number of awards rose approximately 40%. Each year, the
program culminates with the Company's highest honor:
the Enaex Spirit (Espíritu Enaex) award.
Organizational ClimateAs it does every year, Enaex measured its workplace
climate. Results indicated high satisfaction as employees
highlighted aspects like pride in the Company's brand,
benefits and leadership
Flexible Benefit ProgramThe flexible benefit program allows employees to select
benefits according to their individual needs. This year's
enhanced program included additional alternatives within
the established categories. Launched in 2014, this year
the participation rate reached 92%.
Human Resource ManagementOrganizational Culture
562015 ANNUAL REPORT / INTEGRATED REPORT
57SOCIAL PERFORMANCE
Recruitment and SelectionThis year our employer brand was optimized by
updating the image of our recruitment platform,
cultivating relationships with universities and developing
new selection formats.
Internal MobilityIn 2015, 60% of vacancies were filled from within the
Company. Additionally, we began to offer intragroup
mobility as new subsidiaries were incorporated.
Young Professionals ProgramAt Enaex, young professionals are a differentiated
segment that receives special attention. The Company
aims to carefully develop their careers and separately
measures their perceptions of the work environment.
Talent Development and Succession PlansThe Company uses a performance-potential matrix to
continuously map and monitor its teams of professionals.
Executives meet periodically to identify critical positions,
succession plans and other relevant facets.
People at the Right TimeKnowledge ManagementGiven the highly specialized and growing nature of the
Company, the Human Resources Division began designing
a knowledge management model this year. The
long-term project ensures the Company's ability to
protect data and facilitate transfer of the knowledge that
gives it a competitive advantage and is inherent to the
business. The program leads to a certificate, for which
Enaex will apply in 2016.
CommunicationThis year's focus extends beyond current channels to
make the Company's leadership the main source of
communication.
As part of the process of integrating recently acquired
companies, a new newsletter is distributed to all Grupo
Enaex employees.
By Role
Senior Management 14
Management 99
Supervisory 381
Middle-Management 86
General 1,265
Subsidiaries 1,688
Employee Data
By Company
Enaex Servicios 1,401
Enaex S.A. 444
Britanite 975
Davey Bickford 600
Other Subsidiaries 113
As of December 31, 2015, the Company had
3,533 employees.
58
In 2015, Enaex provided more than 25,000 hours
of training to more than 1,500 people, making sure
to cover technical specialization, certifications and
re-training of critical positions.
The year's main programs are:
Maintenance Training, Prillex Plant:Training was provided on more than 30 topics, primarily technical and specific to the area of production.
Re-training, Prillex Plant:This program seeks to meet OSHA standards for operator training.
Training, Río Loa Detonator Plant: Initial training using interactive iBooks as a method of instruction. This pilot project will continue in 2016 in the explosives area and will be expanded to the plant's acid area.
Sales Model Program in Service Plants:This program for managers, supervisors, heads of plant and service KAMs seeks to teach concrete, client-focused tools for sales and key positions within the company.
Service Plant Certification:More than 350 employees were certified through a driver-certification plan for mobile manufacturing units instituted at all service plants.
English Program:Special efforts were made in the area of English-language training, including employees from all the regions where the Company operates.
Training Scholarship ProgramIn 2015, 51 employees had their studies funded by the
scholarship program. The program gives preference
to programs leading to technical and professional
degrees over post-graduate degrees.
Leadership ProgramEnaex is concerned with developing leaders and providing
the tools necessary for excellent performance. In
2015, special attention was paid to the concept of
natural leadership teams, which work with an expert
consultant to identify opportunities for improvement.
Leaders from the human resources area also joined
the effort in order to adopt the leadership technique
as part of corporate culture.
Training Labor Relations
Enaex conducted six successful collective bargaining
processes: four with unions (unions 1 and 2 as well as the
intercompany union at the Río Loa plant and union 4
from Radomiro Tomic) and two with negotiating groups
(Sierra Gorda and Mantoverde plants). Union leadership
gathered for its annual day of objective alignment and
training on new trends.
Organizational Diversity
2015 ANNUAL REPORT / INTEGRATED REPORT
Board of Directors Management Organization
Men 9 15 2,927
Women - 1 606
By Gender
Board of Directors Management Organization
Chilean 8 14 1,872
Brazilian - 1 954
French - 1 460
Other 1 - 247
By Nationality
Board of Directors Management Organization
Under 30 - - 848
Between 30 and 40 - 2 1,343
Between 41 and 50 . 6 777
Between 51 and 60 2 6 494
Between 61 and 70 2 2 70
Over 70 5 - 1
By Age
Board of Directors Management Organization
Between 0 and 3 1 2 1,378
Between 3 and 6 2 7 954
Between 7 and 8 - 1 212
Between 9 and 12 - 2 247
More than 12 6 4 742
By Years of Seniority
*At Enaex, the salary gap between men and women is close to 2.7%.
Driver fatigue and drowsiness are latent risk at
Enaex given the routes and distances driven. In
response, a Fatigue Control Program was implemented
at the Prillex plant in 2015. The project uses an
ocular control device (FIT 2000) into which an
individual's normal parameters are programmed.
When parameters are out of this range, the device
sends an alert. The early alert provided by the
device obliges drivers to rest, impeding their
departure until they pass the ocular control test.
The new fatigue control protocols drove the number
of serious transportation-related accidents down to
zero in 2015.
Fatigue and Drowsiness Detection Program
For the second straight year, Enaex has awarded
scholarships for training on Emergency Management
involving Hazardous Materials (HAZMAT) in the
United States.
In 2015, the scholarships were awarded to two
emergency response team members at the Prillex
and Río Loa plants and firemen in the Mejillones
and Antofagasta brigades.
The five-day course, aimed at Spanish speaking
emergency response personnel, took place at the
University of Texas. Participants earned a technical
degree in responding to emergencies involving
hazardous materials.
Scholarship for HAZMAT Training in the United States
In terms of comprehensive management of risks
related to operating processes and resource protection,
Enaex focused its efforts on enhancing worker
occupational safety and health to maintain the highest
possible level of physical, mental and social wellbeing
among its people.
The most common HSEC risk management activities
include pre-employment and on-the-job health screenings,
qualitative and quantitative assessments of risk agents,
epidemiological surveillance and programs that specifically
aim to control the risk of occupational disease.
In accordance with one of Enaex's main values, "Employee
Wellness", the Company has made special efforts to
promote a healthy lifestyle and self-care in order to
reduce cardio metabolic risks related to chronic
diseases like obesity, high cholesterol, diabetes, and thus
improve its employees' quality of life and job safety.
HSEC Risk Management
59SOCIAL PERFORMANCE
The following are highlights from the 2015 efforts to improve employee occupational health and wellbeing:
Safety Statistics
January - December 2015
Enaex S.A. Enaex S er vicios S.A
Frequenc y R ate* 0.0 1.01
Accident R ate** 0.0 0.21
Total Hours Worked 953,826 2,970,267
Average No. of Employees 438 1,404
* Number injured x 1,000,000/ Number of man hours worked
** Number injured x 100 / Number of workers
60
Community Involvement
The open door program seeks to increase community
awareness of the Company's operations by inviting
the community into its plants for monthly visits and
through Enaex employee visits to the community. In
2015, there were a total of 18 visits. The Company also
donated emergency evacuation vehicles to the
Integra day care center, supplies to the Julia Herrera
Varas school, personal protection equipment to
differently-abled youth at the Juan José Latorre
Benavente technical school, potable water to the
fishing village of Michilla and the funds collected
during the corporate matching campaign to the 2015
telethon. The Dual Education program incorporated
10 students into plant operations. Each worked under
the supervision of a mentor, then applied the knowledge
gleaned to specific projects.
The Prillex plant in Mejillones
continued its
Open Door and Dual Education programs.
At Green Day Mejillones, the entire community, including
families and the Company, came together around caring
for the environment by recycling. The mayor thanked
Enaex for organizing this important event which
demonstrates the Company's commitment to the
environmental wellbeing of Mejillones and its residents.
Enaex organized the �fth annual
Green Day Mejillones
Enaex also participated in the �fth annual
Expomejillones,
The event’s central theme was Sustainability. The Prillex plant's
energy efficiency and greenhouse gas reduction initiatives were
presented, along with the Company's community involvement
through planting trees in plazas and cleaning up the coastline.
Additionally, more than 500 plants from the Prillex plant
greenhouse, one of the symbols of Enaex's sustainability in the
community, were donated.
2015 ANNUAL REPORT / INTEGRATED REPORT
61SOCIAL PERFORMANCE
Like Prillex, the Río Loa plant has engaged with the
community on several social responsibility issues. This
year, Enaex partnered with the zone's farming community
to participate in the 2nd Agriculture Expo 2015—an
initiative by ProLoa. The Company also made a donation
to support the PRODEMU foundation's celebration of
Chile's national holidays. On the other hand, after last
September's earthquake in Chile's region IV, Enaex and its
service providers conducted an important aid campaign,
collecting cleaning supplies and nonperishable food
items for the families whose homes were damaged in the
town of Canela.
As part of our continued efforts to improve education for
children and young people, Enaex invited students
seeking technical-professional internships at the Job Fair
hosted by Minero B-10 school to visit the operations
conducted at the Río Loa plant where they can develop
their talent. Enaex's Human Resource Division also helped
the community by seeking to improve the employability
of people in poverty through an external training
program on general machine maintenance. The program
funds the studies of 15 individuals in the city of
Talcahuano. Participants may then apply for a position
at Enaex or continue their studies in the Risk
Prevention Program at the SK Group's Center for
Technical Training in Talcahuano.
In 2015, activities involving the Calama
community and the environment were also
redoubled. Thanks to installation of
containers for separating household waste,
Enaex and Calama Recicla collected a total of
1,962 Kg of plastic, paper, cardboard, glass and cans.
Furthermore, on November 10th, a Punto
Limpio recycling center was launched so that
service providers may separate their
household waste, thus comply with the
recommendations in Environmental
Assessments.
Finally, the Calama Decontamination Plan was
updated. Between October 21st and
November 30th, Enaex actively participated in
the call from Antofagasta's Regional
Ministerial Secretary of the Environment to
draft the first and second reports: "Updated
emissions information for breathable
particulate matter and its precursors in the
city of Calama."
CAPÍTULO 5 / ENVIRONMENTAL PERFORMANCE
64
Emissions Management and Carbon Credits
Carbon CreditsIn 2006, the Company implemented a Clean
Development Mechanism (CDM) project to reduce
nitrous oxide emissions from the nitric acid plant.
Thanks to this project, CO2 equivalent emissions at
the Prillex América complex in Mejillones are down
98%. On June 26, 2015, the United Nations approved
this project's accreditation for a second, seven-year
period.
Furthermore, the CDM project at the acid plant in Río
Loa, reduced emissions by approximately 50%.
Nitrous Oxide (N2O) Reduction in CDM Projects
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5 *
1,528
1,561
1,539
1,597
177 978 373
211 522 828
656207 676
642405 550
(in thousands of tons of CO2 equivalent)Potential Emissions without projects
Real Emissions Certified Emissions Reductions Un-certified Emissions Reductions
In 2015, the United Nations issued the company CERs (Certi�cates of Emissions Reductions) for nearly
550thousand tons of CO2 equivalent.
*Most recent measurement, March 2015.
2015 ANNUAL REPORT / INTEGRATED REPORT
2015 Carbon FootprintIn 2012, Enaex began to assess the environmental impact of its
operations, using GreenHouse Gas protocol methodology to
calculate its carbon footprint. Calculations are made in order to
seek continuous improvement, make performance information
more transparent and strive to be a low-carbon emissions
company.
The initiative revealed the strengths of greenhouse gas
emissions management, as well as the opportunities for
improving process efficiency. In 2015, emissions were
approximately 1.5 million tons of C02 equivalent—65% of which
were indirect emissions generated by third parties and related
companies, mainly attributable to purchases of inputs.
The 2015 Carbon Footprint, broken down by production plant
was: 95% Prillex América plant, 4% Río Loa plant and 1% Punta
Teatinos and offices.
Carbon Disclosure Project
In 2015, Enaex participated for the second time in the annual
climate change questionnaire, which the Carbon Disclosure
Project's (CDP) conducts of more than 4,500 companies around
the world. The survey is performed at the request of 822
investment firms that, in addition to assessing the financial
soundness and management of the companies where they
invest, also value commitment to climate change. The 2015 CDP
report recognized Enaex as one of the best companies in Chile
and Latin America in this area, earning 96% for transparency
(22% higher than 2013) and a B-rating for managing initiatives
that successfully reduce greenhouse gases. These results earned
the Company a place among the eight best companies in Latin
America and tied it with Colbún S.A. for the best in Chile.
65ENVIRONMENTAL PERFORMANCE
66
Since 2010, Enaex has developed energy efficiency
projects that have significantly reduced operating
costs while indirectly reducing CO2 equivalent emissions.
Energy Ef f iciency
In 2015, the Prillex complex in Mejillones used steam to self-generate
30% of total potential consumption. In terms of greenhouse gas emissions,
16,700
tons of CO2 equivalent were not released into the atmosphere.
Recycling Plastics
In 2015, Enaex and partner Greendot recovered
182,073 Kg in recyclable plastic waste—the equivalent of approximately 290 tons of CO2 equivalent.
2015 ANNUAL REPORT / INTEGRATED REPORT
67ENVIRONMENTAL PERFORMANCE
Regulatory Compliance Plan
As part of the Company's sustainable development, Enaex has established procedures to
identify and manage its regulatory obligations and thus mitigate the risk of sanctions and
losses resulting from breaches thereof.
There were three main milestones in 2015
2. Work continued on the Regulatory
Compliance Matrix, which is meant to
serve as a preventative control for
compliance with applicable legal
standards and regulations. In 2015,
progress was made on aligning these
matrices with those on operational
compliance at each production plant.
3. In order to encourage internal
compliance with the regulatory matrices,
like the protocols related to public
employees and entities, a training plan
was instituted for all Enaex workers. The
first phase included training at the
Santiago office and the La Serena and Río
Loa plants.
1. For the first time, internal criteria for
distinguishing the Company's legal
documents were established. A formal
database makes it possible to quickly
and easily identify applicable legal
documentation for all the Company's
everyday paperwork, processes and
procedures.