SUCCESSFUL CASE STUDY OF INVESTMENT IN THAILAND

SIGDO KOPPERS S.A.

One of the most dynamic and important business groups in Chile 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. THE GROUP

A leading global industrial company… THE GROUP

…in which Magotteaux has its own unique place THE GROUP

MAGOTTEAUX

grinding media, castings and their related services 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 THE GROUP

Our customers quarries recycling mining power stations cement dredging THE GROUP cement dredging

We produce on the 5 continents Proacer 100% Sabo 55% A GLOBAL LEADER For security of supply & quick delivery

Our sales teams are local… worldwide A GLOBAL LEADER For rapid customer response & care

2011 Results Turnover of € 485 million Production of 255,000 tons EBITDA of € 53.7 million With the support of 2,500 employees THE GROUP

2011 Results THE GROUP Net sales Split per market Net sales Split per area

Why are we in Thailand? 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 Chile Investment

Magotteaux Thailand History 1990 : 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) Magotteaux Thailand

Plant Location 100 km from Bangkok 150 km from Leam-chabung port Australia /New Zealand Japan/Korea/Taiwan/Hongkong Middle East Malaysia/Indonesia/ Philippine/Papua New Guinea Lampang / Tak MCL Plant: Magotteaux Co.,Ltd 14 M3 Suwannasorn rd. Bualoy Nongkae Saraburi 18230 Thailand 100 km from Bangkok 150 km from Leam-chabung port Domestic Customers : Ubonratchathani Magotteaux Thailand Bangkok Pattaya Nakornsridhamarat Phuket

Perspective site lay-out MCL line 1 Small ball (35,000 mt/year MCL 4 VRM (9,000 mt/year MCL line 2 For Big ball (45,000 mt/year Total area 121 rai  193,600 sqm.

MCL Grinding Ball Production Success Path Magotteaux Thailand

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 Magotteaux Thailand

Sigdo Koppers and Magotteaux future in Thailand 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 Chile Investment

A few suggestions for new investors in Thailand Start small, think big Learn the culture Find the right people and/or the right partner Be patient Respect the people and the community THE GROUP

THANKS FOR YOUR ATTENTION!