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November 2011

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November 2011. Company Overview. Largest Latin American IT Services provider and an undisputed leader in systems integration, support and IT Outsourcing. Independent service provider with world-class credentials and quality certifications. - PowerPoint PPT Presentation
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November 2011
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Page 1: November 2011

November 2011

Page 2: 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

Page 3: November 2011

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

Page 4: November 2011

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

Page 5: November 2011

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

Page 6: November 2011

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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

Page 7: November 2011

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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

Page 8: November 2011

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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

Page 9: November 2011

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IT Industry In Latin America

Page 10: November 2011

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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)

Page 11: November 2011

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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

Page 12: November 2011

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Source: IDC

Projected CAGR % (2009-2014)

Favorable Outlook for IT Industry in Latin America

Page 13: November 2011

13

Projected Annual Investment in IT (US$ millions) Breakdown by country

Source: IDC

Favorable Outlook for IT Industry in Latin America

Page 14: November 2011

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Solid FinancialPerformanceBalanced growth and consistent cash-flow generation

Page 15: November 2011

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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%

Page 16: November 2011

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Revenues and EBITDA Evolution 2007-2011(1H)

2007 1H11

Revenues

EBITDA

Page 17: November 2011

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Revenue Breakdown by Industry

2007 1H11

ManufacturingCommerceGovernment

FinancialHealthOthers

TelecommunicationsNatural Resources

Page 18: November 2011

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%

Page 19: November 2011

• 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

19

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%

Page 20: November 2011

• 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

20

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%

Page 21: November 2011

• 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%

Page 22: November 2011

• 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

22

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%

Page 23: November 2011

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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)

Page 24: November 2011

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%

Page 25: November 2011

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The 2010-2012 Investment Plan

Page 26: November 2011

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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

Page 27: November 2011

27

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

Page 28: November 2011

New infrastructure in Brazil

New building of 17.000 m² in total surface

Alphaville - SP

New headquarters in Brasil

Page 29: November 2011

• 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

Page 30: November 2011

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

Page 31: November 2011

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

31

Page 32: November 2011

Tel (56-2) 657 50 00

Teatinos 500

Santiago, CHILE

www.SONDA.com


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