November 2011
2
Largest Latin American IT Services providerand an undisputed leader in systems integration, support and IT Outsourcing
Independent service provider with world-class credentials and quality certifications
Business model is based on developing long term relationships, closeness and contact with customers, through its more than 8,000 IT professionals
Company Overview
3
Highly diversified customer base by geography and industry
Positive financial results as a consequence of a increase in high value-added revenues strength of recurring revenues and a successful regional expansion
Investment plan for US$ 500 million intended to continue consolidating SONDA regional leading position in Latin America
Company Overview
4
A genuine regional player
Mexico
Ecuador
Peru
ChileArgentina
Uruguay
Brazil
Colombia
Costa RicaFounded in
Chile in 1974, SONDA has
more than 37 years of experience
Present in 9 countries in the region, with +1,000 cities under coverage
Over 10,000 employees in the
region out of which more than 5,000
are based in Brazil
5
What we do for our customers
Planning Solution Design
Provisioning Integration Operation
IT Adoption Lifecycle
Comprehensive IT offeringsWe are a comprehensive provider of IT solutions with a vast experience in offering services for resolving from the simplest needs through to the most complex, with a business focus aligned to our clients’ strategies.
Continuous Improvement
Business and IT Strategy
IT Solution Design
Infraestructure Provisioning
Systems Integration
Maintenance and Operation
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APPLICATIONSIT SERVICES PLATFORMS
Solving business problems and needs through solutions based on Information Technology
Comprehensive offering ranging from the delivery of infrastructure and support services to large-scale and complex systems integration projects and full IT outsourcing
Comprehensive Offering
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RetailFinance TelecomOur customers are leading companies in their industries
Manufacturing Finance Telecom Retail
More than 5,000 throughout Latin America
Strong Customer Base
Public SectorEnergy Services & Utilities Health Energy
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9001:2008Quality management system based on processes and focused on continuous improvement and customer satisfaction
ISO
IT Infrastructure LibraryBest practices for managing IT services
ITIL
Project Management OfficeQuality methodology in managing projects
PMO
Capability Maturity Model IntegratedBest practices for the development of application systems.
CMMI
Alliances with World Class Vendors
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IT Industry In Latin America
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Latin America is the world’s second fastest region in IT Investment growth
Source: IDC, World Bank, International Data Base IDB
IT Spending as a percentage of GDP
There is a significant gap in IT Investment as a percentage of GDP between developed economies and Latin American countries
Latin America, still behind in IT adoption
IT Spending (CAGR 2009-2014)
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7.4% CAGR (2009-2014) LATIN AMERICA
9.7%
BRAZIL
CAGR
2009-2014
6.7%
MEXICO
CAGR
2009-2014
7.1%
CHILE
CAGR
2009-2014
9.2%
COLOMBIA
CAGR
2009-2014
8.2% CAGR (2009-2014) IN STRATEGIC MARKETS
10.9% CAGR (2009-2014) IT SERVICES IN LATAM
Favorable Outlook for IT Industry in Latin America
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Source: IDC
Projected CAGR % (2009-2014)
Favorable Outlook for IT Industry in Latin America
13
Projected Annual Investment in IT (US$ millions) Breakdown by country
Source: IDC
Favorable Outlook for IT Industry in Latin America
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Solid FinancialPerformanceBalanced growth and consistent cash-flow generation
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EBITDA Margin
EBITDA
Revenues
2007* 2008* 2009
799.4
539.5
CAGR (2006-2010)=28.3%951.9
2010
(*) Financial statements prepared under Chilean GAAP
2006*
(US$ Millions)
671.3
2009
164.5
2010
18.3%17,3%
2008*
115.3
17.2%
98.3
146.3
2008*
671.3
1H10
CAGR (2006-2010)=27.9%
2007*
132.9
LTM
1H11
350.8
61.4
1H111H10
17.5%
18.2%
• Revenues and EBITDA growing at a 28% Compounded Annual Growth Rate the last four years
• Since the 2006 IPO, revenues and EBITDA have grown 2.7 times
• Revenues ex-Chile moved from representing 34% of total revenues in FY06 to 60% in 1H11
Recent Financial Performance
2006*
427.1
553.3
29.6%
26.7%
90.4
71.3
16.3%16,7%
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Revenues and EBITDA Evolution 2007-2011(1H)
2007 1H11
Revenues
EBITDA
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Revenue Breakdown by Industry
2007 1H11
ManufacturingCommerceGovernment
FinancialHealthOthers
TelecommunicationsNatural Resources
1H11 – 2Q11 Consolidated Results
(in US$ Millions) 1H10 1H11 Var% 2Q10 2Q11 Var%
Revenues 427.1 553.3 29.6% 238.2 281.9 18.4%
EBIT 51.7 68.9 33.2% 28.7 33.9 18.0%Operating Margin 12.1% 12.5% 2.8% 12.1% 12.0% -0.3%EBITDA 71.3 90.4 26.7% 38.7 45.1 16.4%EBITDA Margin 16.7% 16.3% -2.2% 16.3% 16.0% -1.7%
• Extensive background in the development of complex IT projects for the modernization of both public institutions and private sector
• Prestige earned for decades, characterized by a deep service culture
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Market leader with US $426
million in revenues for
2010
CHILE
(in US$ Millions) 1H10 1H11 Var% 2Q10 2Q11 Var%
Revenues 200.1 220.1 10.0% 105.1 111.1 5.7%
EBIT 30.9 40.7 31.6% 14.5 18.6 28.1%Operating Margin 15.5% 18.5% 19.7% 13.8% 16.7% 21.2%EBITDA 45.6 54.5 19.5% 21.8 25.5 16.8%EBITDA Margin 22.8% 24.7% 8.6% 20.8% 22.9% 10.5%
• Major player in Brazil with deep market knowledge • Broad portfolio of blue-chip clients • Extensive service network with national coverage• Revenues above US$ 351 million in 2010
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Operations in Brazil generated 37% of SONDA’s
consolidated revenues in 2010
BRAZIL
(in US$ Millions) 1H10 1H11 Var% 2Q10 2Q11 Var%
Revenues 158.8 213.5 34.5% 92.8 113.0 21.8%
EBIT 15.8 20.0 26.5% 10.4 10.9 5.2%Operating Margin 10.0% 9.4% -6.0% 11.2% 9.7% -13.6%EBITDA 18.6 23.8 28.3% 11.9 13.0 9.0%EBITDA Margin 11.7% 11.1% -4.6% 12.8% 11.5% -10.5%
• Among the Top 10 IT systems integrators in the country• More than 100 customers from various industries• Revenue grew by 90.5% in 2010 totaling $ 81.1 million
2121
Annualized revenues of US$
150 million in Mexico
MEXICO
(in US$ Millions) 1H10 1H11 Var% 2Q10 2Q11 Var%
Revenues 23.5 66.0 180.6% 13.5 30.9 128.7%
EBIT 2.5 5.7 129.6% 1.6 2.8 80.0%Operating Margin 10.5% 8.6% -18.2% 11.5% 9.1% -21.3%EBITDA 2.8 7.3 160.8% 1.7 3.6 109.8%EBITDA Margin 11.9% 11.0% -7.1% 12.8% 11.8% -8.3%
• SONDA’s services cover other six Latin American countries: Argentina, Colombia, Costa Rica, Ecuador, Peru and Uruguay
• In this region, IT industry grows more than Latin America in average
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OPLA
New deals reached more than US$100 million in 2010
(in US$ Millions) 1H10 1H11 Var% 2Q10 2Q11 Var%
Revenues 44.7 53.6 20.1% 26.8 26.9 0.5%
EBIT 2.5 2.6 1.2% 2.3 1.6 -30.2%Operating Margin 5.7% 4.8% -15.7% 8.5% 5.9% -30.5%EBITDA 4.4 4.8 10.4% 3.2 2.9 -9.0%EBITDA Margin 9.8% 9.0% -8.1% 12.1% 10.9% -9.5%
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2009
668.5+9.4%
611.3
2007
31%
61%
439.3
8%
+39.1%
2010
Chile OPLAMexico
2009
668.5+9.4%
11%
7%
611.3
33%
2007
439.3
35%
+39.1%
11%49%
Brazil
11%
6%
31%
52%
54%
2010
6,6%
9,8%
30%
+55.3%
11%
44%
31%
7%
6%
6,6%
9,8%
11%
11%
2009
668.5+9.4%
611.3
2007
439.3
+39.1%
2010
1,038.3
+55.3%
61%61%
8%
8%
61%
30%
29%
53%
18%
31%
53%
14%
55%
13%
31%
20082008
1,038.3
(US$ millions)
Plataforms ApplicacionsIT Services
New Contracts supporting a solid Revenue Base
(US$ millions)
Financial Statements
Solid financial position with adequate cash availability Low debt level with a financial leverage of 0.34 times EBITDA-to-financial-expenses ratio of 8.53 times Return on equity: 14.4%
Dec-10 Jun-11 Var.%
AssetsCurrent AssetsIntangibles and GoodwillOther non current assets
(US$ Millions)
LiabilitiesCurrent LiabilitiesNon current liabilitiesTotal Liabilities and Equity
1.168,5550,7342,3275,5
1.121,3576,0327,0218,3
497,7281,7216,0
1.168,5
491,4283,4208,0
1.121,3
1,3%-0,6%3,9%4,3%
4,2%-4,4%4,7%
26,2%
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The 2010-2012 Investment Plan
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• Investment for +US$ 200 million• Five new companies acquired • New headquarters in Brazil• New datacenters construction• Enterprise Cloud Computing• Panama’s Implementation Project
Total investment for US$500 million to finance:
Implementation of new systems integration projects in Latin America
Strengthening the positioning in Brazil, expanding territorial coverage and taking advantage of the new cycle of economic expansion
New acquisitions in Brazil, Mexico, Colombia and other countries with potential
Developing high value-added business lines throughout the region
Investment Plan 2010-2012
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TELSINC
SOFTEAM
KAIZEN
US$ 92 million invested in acquisitions during 2010
Acquired companies had US$ 165 million in yearly revenues before being acquired
New companies strengthen SONDA’S regional offering at the same time expanding its regional coverage
NEXTIRAONE
CEITECH
2010 acquisitions strengthen SONDA’s competitive position in Brazil, Mexico and Argentina
New infrastructure in Brazil
New building of 17.000 m² in total surface
Alphaville - SP
New headquarters in Brasil
• Two new datacenters in Brazil and Chile, adding 2,200 squared meters in capacity
• Both projects will have ANSI/TIA-942 TIER III certifications, guaranteeing high levels of security
• New datacenters to be operating in the second quarter of 2011 in Brazil and in the first quarter of 2012 in Chile
New datacenter infrastructure
Latest technology
Innovative solutions
Cloud Computing Initiative
•Q
umulos, the first E
nterprise Cloud in Latin
Am
erica focused on medium
to large sized com
panies
•R
egional coverage•
First vBlock in Latin A
merica, am
ong the first in the world
•C
urrently operating in Chile, soon in B
razil, Mexico by 4Q
11
•Local C
loud Infrastructure in all the 9 countries where
SO
ND
A has direct presence, to become the m
ost geographically com
prehensive provider throughout the region.
•W
orld class infrastructure : vBlock, from
V
mw
are, Cisco y E
MC
. Strong regional
partnership with vendors
•First in the w
orld to implem
ent Vm
ware’s
Cloud P
ortal for Service P
roviders, vCloud
Director, on top of a vB
lock.
• First and only Latin A
merican com
pany on V
MW
are’s “World’s Top 30” C
loud Providers
Steering C
omm
ittee.
IDC Projections:The cloud market is expected to grow 5 times faster than the traditional IT market
In 2010 total investment in cloud technology reached USD 29 billion. In 2014, USD 55 billion are expected
Outlook 2011-2012
1 Favorable outlook for the IT industry in Latin America
2 Execution of the $500 million investment plan
3 New acquisitions create synergy and margin improvement opportunities
4 Extended customer base fosters cross-selling opportunities
5 Pipeline of new business opportunities allow to maintain growth rates in the future
6 Strong positioning in the IT Services market in Brazil
7 Increase in new business with regional accounts
8 Main focus in comprehensive solutions based on IT Outsourcing
9 Consolidation as the IT Services leader provider in Latin America
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Tel (56-2) 657 50 00
Teatinos 500
Santiago, CHILE
www.SONDA.com