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
Business model is based on developing long term
relationships, closeness and contact with customers, through its more than 8,000 IT professionals
2
Company Overview
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
3
A genuine regional player
Founded in
Chile in 1974,
SONDA has
more than
37 years of
experience
Costa Rica
Colombia
Mexico
Present in
Ecuador
9 countries in
the region, with
+1,000 cities
under coverage
Peru
Brazil
Uruguay
Chile
Argentina
Over 10,000
employees in the
region out of which
more than 5,000
are based in Brazil
4
What we do for our customers
Comprehensive IT offerings
We 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.
IT Adoption Lifecycle
Continuous Improvement
Planning
Business and
IT Strategy
Solution
ITDesign
Solution
Design
Provisioning
Infraestructure
Provisioning
Integration
Systems
Integration
Operation
Maintenance
and Operation
5
Comprehensive Offering
IT SERVICES
APPLICATIONS
PLATFORMS
Solving business problems and needs through solutions based on Information Technology
Comprehensive offering ranging from the delivery of infrastructure and support services to largescale and complex systems integration projects and full IT outsourcing
6
Strong Customer Base
Manufacturing
Finance
Finance
Health
Energy
Energy
Telecom
Telecom
Services & Utilities
Retail
Retail
Our
customers
are leading
companies in
their
industries
Public Sector
More than
5,000
throughout
Latin America
7
Alliances with World Class Vendors
ISO
9001:2008
Quality management system based on
processes and focused on continuous
improvement and customer satisfaction
ITIL
IT Infrastructure Library
Best practices for managing IT
services
PMO
Project Management Office
Quality methodology in managing
projects
CMMI Capability Maturity Model Integrated
Best practices for the development of
application systems.
8
IT Industry
In Latin America
9
Latin America, still behind in IT adoption
There is a significant gap in IT Investment as a percentage of GDP between developed economies
and Latin American countries
Latin America is the world’s second
fastest region in IT Investment growth
IT Spending as a percentage of GDP
IT Spending (CAGR 2009-2014)
Source: IDC, World Bank, International Data Base IDB
10
Favorable Outlook for IT Industry in Latin America
7.4
8.2
%
CAGR (2009-2014)
IN STRATEGIC
MARKETS
% CAGR (2009-2014)
LATIN AMERICA
9.7
6.7
7.1
9.2
BRAZIL
MEXICO
CHILE
COLOMBIA
CAGR
CAGR
CAGR
CAGR
2009-2014
2009-2014
2009-2014
2009-2014
%
10.9
%
% CAGR (2009-2014)
%
%
IT SERVICES IN LATAM
11
Favorable Outlook for IT Industry in Latin America
Projected CAGR % (2009-2014)
Source: IDC
12
Favorable Outlook for IT Industry in Latin America
Projected Annual Investment in IT (US$ millions)
Breakdown by country
Source: IDC
13
Solid Financial
Performance
Balanced growth and
consistent cash-flow
generation
14
Recent Financial Performance
Revenues
(US$ Millions)
951.9
CAGR (2006-2010)=28.3%
799.4
29.6%
671.3
553.3
132.9
427.1
539.5
• Revenues and EBITDA growing
350.8
at a 28% Compounded Annual
Growth Rate the last four years
2006*
2008*
2007*
2009
2010
1H10
1H11
• Since the 2006 IPO, revenues
and EBITDA have grown 2.7 times
• Revenues ex-Chile moved from
EBITDA
representing 34% of total revenues
164.5
CAGR (2006-2010)=27.9%
146.3
in FY06 to 60% in 1H11
26.7%
90.4
115.3
71.3
98.3
61.4
18.3%
18.2%
17.5%
2006*
17,3%
17.2%
2007*
2008*
16,7%
2009
LTM
2010
1H10
16.3%
1H11
EBITDA Margin
(*) Financial statements prepared under Chilean GAAP
15
Revenues and EBITDA Evolution 2007-2011(1H)
2007
1H11
Revenues
EBITDA
16
Revenue Breakdown by Industry
2007
1H11
Manufacturing
Commerce
Government
Financial
Health
Others
Telecommunications
Natural Resources
17
1H11 – 2Q11
Consolidated Results
(in US$ Millions)
1H10 1H11
Revenues
427.1 553.3 29.6% 238.2 281.9
EBIT
51.7
68.9
33.2%
28.7
33.9
18.0%
12.1%
12.5%
2.8%
12.1%
12.0%
-0.3%
71.3
90.4
26.7%
38.7
45.1
16.4%
16.7%
16.3%
-2.2%
16.3%
16.0%
-1.7%
Operating Margin
EBITDA
EBITDA Margin
Var%
2Q10 2Q11
Var%
18.4%
CHILE
• 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
(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%
15.5%
18.5%
19.7%
13.8%
16.7%
21.2%
45.6
54.5
19.5%
21.8
25.5
16.8%
22.8%
24.7%
8.6%
20.8%
22.9%
10.5%
Operating Margin
EBITDA
EBITDA Margin
Market leader
with US $426
million in
revenues for
2010
19
BRAZIL
• Major player in Brazil with deep market knowledge
• Broad portfolio of blue-chip clients
• Extensive service network with national coverage
• Revenues above US$ 351 million in 2010
(in US$ Millions)
1H10 1H11
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%
10.0%
9.4%
-6.0%
11.2%
9.7%
-13.6%
18.6
23.8
28.3%
11.9
13.0
9.0%
11.7%
11.1%
-4.6%
12.8%
11.5%
-10.5%
Operating Margin
EBITDA
EBITDA Margin
2Q10 2Q11
Var%
Operations in
Brazil generated
37% of SONDA’s
consolidated
revenues in 2010
20
MEXICO
• 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
(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%
10.5%
8.6%
-18.2%
11.5%
9.1%
-21.3%
2.8
7.3
160.8%
1.7
3.6
109.8%
11.9%
11.0%
-7.1%
12.8%
11.8%
-8.3%
Operating Margin
EBITDA
EBITDA Margin
Annualized
revenues of US$
150 million in
Mexico
21
21
OPLA
• 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
(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%
5.7%
4.8%
-15.7%
8.5%
5.9%
-30.5%
4.4
4.8
10.4%
3.2
2.9
-9.0%
9.8%
9.0%
-8.1%
12.1%
10.9%
-9.5%
Operating Margin
EBITDA
EBITDA Margin
New deals
reached more
than US$100
million in 2010
22
New Contracts supporting a solid Revenue Base
1,038.3
1,038.3
+55.3%
+55.3%
31%
+9.4%
611.3
+39.1%
668.5
+9.4%
611.3
30%
29%
+39.1%
55%
439.3
439.3
53%
31%
31%
8%
31%
53%
11%
11%
6%
6%
13%
30%
14%
35%
8%
8%
2008
Plataforms
(US$ millions)
2009
2009
IT Services
2010
2010
Applicacions
54%
49%
11%
44%
18%
6,6%
52%
11%
61%
2007
2007
11%
11%
7%
7%
668.5
9,8%
9,8%
2007
33%
31%
2008
2009
Chile
(US$ millions)
Brazil
Mexico
2010
OPLA
23
Financial Statements
(US$ Millions)
Dec-10
Jun-11
Var.%
Assets
Current Assets
Intangibles and Goodwill
Other non current assets
1.121,3
576,0
327,0
218,3
1.168,5
550,7
342,3
275,5
4,2%
-4,4%
4,7%
26,2%
Liabilities
Current Liabilities
Non current liabilities
Total Liabilities and Equity
491,4
283,4
208,0
1.121,3
497,7
281,7
216,0
1.168,5
1,3%
-0,6%
3,9%
4,3%
 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%
The 2010-2012
Investment Plan
25
Investment Plan
2010-2012
Total investment for US$500
million to finance:
 Implementation of new systems integration projects in
Latin America
 Strengthening the positioning in Brazil, expanding
territorial coverage and taking advantage of the new
cycle of economic expansion
 New acquisitions in Brazil, Mexico, Colombia and
other countries with potential
 Developing high value-added business lines
throughout the region
• Investment for +US$ 200 million
• Five new companies acquired
• New headquarters in Brazil
• New datacenters construction
• Enterprise Cloud Computing
• Panama’s Implementation Project
26
2010 acquisitions strengthen SONDA’s competitive position
in Brazil, Mexico and Argentina
NEXTIRAONE
TELSINC
SOFTEAM
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
KAIZEN
CEITECH
27
New infrastructure in Brazil
New headquarters in Brasil
Alphaville - SP
New
building of
17.000 m² in
total surface
New datacenter infrastructure
Latest technology
• 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
Innovative solutions
Cloud Computing Initiative
IDC Projections:
• Qumulos, the first Enterprise Cloud in Latin
America focused on medium to large sized
companies
The cloud market is expected to grow 5 times
faster than the traditional IT market
• Regional coverage
• First vBlock in Latin America, among the first in the world
• Currently operating in Chile, soon in Brazil, Mexico by 4Q11
• Local Cloud Infrastructure in all the 9 countries where
SONDA has direct presence, to become the most
geographically comprehensive provider throughout the
region.
• World class infrastructure : vBlock, from
Vmware, Cisco y EMC. Strong regional
partnership with vendors
• First in the world to implement Vmware’s
Cloud Portal for Service Providers, vCloud
Director, on top of a vBlock.
• First and only Latin American company on
VMWare’s “World’s Top 30” Cloud Providers
Steering Committee.
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
31
Tel (56-2) 657 50 00
Teatinos 500
Santiago, CHILE
www.SONDA.com