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SUCCESSFUL CASE STUDY OF INVESTMENT IN

THAILAND

SIGDO KOPPERS S.A.

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• Founded in 1960

• One of the most dynamic and important business groups in Chile

• Operations on 5 continents

• 3 business areas.

Business services cluster construction and industrial assembly, logistics companies in the rock fragmentation Industrial Area

Production and marketing of grinding media and wear parts for mining and industry, plastic films high technology and petrochemical sector

Commercial and automotive companies of representation, distribution and rental of machinery, and marketing of cars.

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A leading global industrial company…

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…in which Magotteaux has its own unique place

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MAGOTTEAUX

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We are

Developers, producers and suppliers of grinding media, castings and their related services

to power plants and cement, mining, quarry, recycling, dredging industries

Experts in production processes with regards to wear, comminution and valuable minerals recovery

to optimize the operating costs of our customers’

A group of foundries, global leader in its field;

with our local teams we are home… worldwide

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cement

mining

power stations

dredging

Our customersquarriesrecycling

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Proacer 100%

Sabo 55%

For security of supply & quick delivery

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We produce on the 5 continents

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Our sales teams are local… worldwide

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• Turnover of € 485 million

• Production of 255,000 tons

• EBITDA of € 53.7 million

• With the support of 2,500 employees

2011 Results

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Net salesSplit per market

Net salesSplit per area

2011 Results

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• The right partner when we started, Siam

Cement

• Government support: BOI privilege

• Excellent infrastructure

• Excellent engineers

• Well disciplined and educated work force

• Central location in Asia

• Access to credit through local banks

Why are we in Thailand?

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Magotteaux Thailand History1990 : Founded by Joint venture between

Magotteaux and Siam Cement Group 1992 : Start Production with Capacity 8,000 T/Yr

for Cement Industry in South East Asia

1997 : ASIA crisis, we start supplying to mines

1999 : Owned by Magotteaux Group 100%

2002 : Increase capacity by Disamatic Mk4+

2004 : Increase capacity by Pouring Furnace

: Start HT2 Plant total capacity 40,000 T/Yr

2006 : Owned by IK and Magotteaux

2008 : Start MCL 2

: Total plant capacity 80,000 T/Yr

2011 : Owned by SIGDO (Chilean Company)

2012 : Start MCL Line 4 (VRM Plant)

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Plant Location

MCL Plant:

Magotteaux Co.,Ltd

14 M3 Suwannasorn rd.

Bualoy Nongkae Saraburi 18230 Thailand

100 km from Bangkok150 km from Leam-chabung port

Domestic Customers :

Phuket

Bangkok

Pattaya

Lampang / Tak

Ubonratchathani

Nakornsridhamarat Australia /New Zealand

Japan/Korea/Taiwan/Hongkong

Middle East

Malaysia/Indonesia/Philippine/Papua New Guinea

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Perspective site lay-out

MCL line 1 Small ball(35,000 mt/year

MCL line 2 For

Big ball

(45,000

mt/year

Total area 121 rai 193,600 sqm.

MCL 4 VRM

(9,000

mt/year

MCL Grinding Ball Production Success Path

MCL AS CAST BALLS 1993-2012 (MT)

4,2006,475

9,580 10,735 10,0358,165 9,525

11,42512,790

14,62016,750

20,830

27,710

32,730

36,555

53,52055,440

62,440

70,025

79,820

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10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Update : 20 January 2011Max Capacity 80,000 MT/Yr

Asia Financial Crisis

US Financial Crisis

+14%

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Main customers in Thailand

• TPI Polene Public Company Limited

• Siam Cement Public Company Limited

• Siam City Cement Public Company Limited

• Jalaprathan Cement Public Company Limited

• Asia Cement Public Company Limited

• Electricity Generating Authority of Thailand

• Akara Gold mine

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Magotteaux facilities in Thailand are already the largest in terms of production but it does not mean we intend to stop investing.

Sigdo Koppers Board approved the building of our fourth plant in Thailand, manufacturing 60 thousand tons with new state of the art technology, the first plant of its kind in Magotteaux Group and even in the World.

We will start in 2014

Sigdo Koppers and Magotteaux future in Thailand

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• Start small, think big

• Learn the culture

• Find the right people and/or the right partner

• Be patient

• Respect the people and the community

A few suggestions for new investors in Thailand

21THANKS FOR YOUR ATTENTION!