Leaders in Services to the Mining Industry EDITION No. 6 JANUARY 2021 www.agunsa.comEDI TO R IA L AGUNSA CEO Fernando Rodríguez fernando.rodriguez@agunsa.com General Editor Sebastián Santa Cruz sebastian.santacruz@agunsa.com Editorial Coordinator Jessica Restrepos jessica.restrepos@agunsa.com Marketing and Corporate Image Carolina Herrera carolina.herrera@agunsa.com Digitalization and Design Canal Cero www.canalcero.com Collaborators Alesandro Bacigalupo (Argentina) Guillermo Cruzado (Argentina) Alan Straume (Central America) Luis Meléndez (Central America) Alejandra Zamora (Chile) Camilo Fernández (Chile) Daniel Purcell (Chile) Diego Urenda (Chile) Felipe San Martín (Chile) Fernando Lagos (Chile) Iván Frías (Chile) Javier González (Chile) Tomás Valenzuela (Chile) Juan Marcelo Oyarzún (Chile) Marcelo Garjardo (Chile) Marcial Navea (Chile) Ricardo Barrenechea (Chile) Rita Olea (Chile) Rodrigo Jiménez (Chile) Victoria Prieto (Colombia/Ecuador) Edilberto Martínez (Peru) Jaime Urenda (USA) Janette Perdomo (USA) Mariana Portillo (Mexico) Rodrigo Pérez (Mexico) Reserved Rights The reproduction, total or partial, by any means, without previous authorization of the Editor is prohibited. www.agunsa.comCEO MESSAGE FROM THE Fernando Rodríguez CEO Sincerely,vt Dear collaborators and customers, Please receive our kindest regards and best wishes for this new year. 2020 was, without a doubt, a year that we will hardly forget. It was a year in which life, business and standards were threate- ned by a pandemic that used to be only in books and fiction movies. In AGUNSA, we again thank our staff that faced these challenges in the best way, from protecting the integrity of the employees to giving their best to ensure our customers operatio- nal continuity, even in the hardest times. As a company, despite the scenario, we kept our commitment with the strategic objectives and we moved forward in each of them. Innovation, we created an accelerator of business to attract start-ups that will add new technologies to offer our customers, besides new systems implemented in our products. Network, we strengthened our guidelines, both of organizational culture and business creation, and we implemented improve- ments in data processing to optimize management. Growth, despite having less activity in our traditional areas, we bought a parcel company in Spain, we developed new lines of business and we managed to grow in strategic sectors such as the mining industry, where we received the award to the most outstanding company regarding safety. AGUNSA starts 2021 with more strengths and better tools to face a year full of challenges, but that also brings great opportu- nities to continue growing and improving. I hereby invite you to read this informative bulletin with the most relevant events from the last quarterWHAT IS We standout due to our good service MAR PACIFICO Adding aerial representations of the Network Argentina Colombia In November, we were appointed by Jan De Nul Group to attend their new dredger Alfonso de Albuquerque, which began operations in Argentinas Waterway. It should be mentioned that this is the third vessel appointed by Jan de Nul (besides dredgers Capitán de Nuñez and Henry Pilot), which confirms the high level of service delivered by AGUNSA and its team. In October, customer Abuljadyel assigned us an export of over 300 containers of must, which consolidate us as logistics leaders in this important productive sector. The integral service considers land transportation from Mendoza, border crossing, customs and maritime service. We are proud to announce that, since October, we are the sales representative of Spirit in Bogota city, from where we will offer the best travelling experience to our passengers. HAPPENING? Services for the Spanish Training Ship Commercial Alliance ENAEX Chile In October, Training Ship Juan Sebastiano De Elcano moored at Prat pier in Punta Arenas. She was present in the celebration of the V Centenary of the discovery of the Strait of Magellan, a maritime path where the Pacific and Atlantic Oceans unite, in the extreme south of Chile. AGUNSA offered its port agency services and pilotage launches to said Spanish ship, among other services arising from the ships stay. AGUNSA and ProChile agreed a commercial alliance to offer Chilean exporters an integral logistics and quality service. In this regard, exclusive benefits will be made available to ProChiles associates, from infrastructure and origin and destination services, to consultancy and training. In December, AGUNSA was awarded the contract for the Transportation of Chemical Products in Bags (National) with the recognized customer from the mining industry. The service will start in January, when 700 trips of distribution of ammonium nitrate, nitric acid and fertilizers will be executed for a 1-year period.PHILIPS WHAT IS Chile New Strategic Customer: SQM IGNOUS an AGUNSA company Video Ignous, a leader company in the CCTV and inspection industry with drones, was purchased in October. It has over 35,000 flight hours and is one of the main agents of the national industry of drone services, providing services to a variety of industries, such as mining, electric, forestry, public security and private, among others. AGUNSA continues expanding its reach and adding innovation in new services, in order to give our customers a 360° service. An agreement with SQM was accomplished in September to provide a national transport service to one of its divisions. This service allowed us to enter this major account, with whom we are already working in different proposals in port and logistic areas.. AGUNSA renewed the cargo storage contract with Philips in Iquique, which meant the relocation of their operations to a new storage facility with 1,000 m2 assigned to the customer. https://player.vimeo.com/video/503053937 HAPPENING? Generating customer loyalty Integral Sales Copper and Metals We were awarded the renewal of the Storage and Distribution contract with PANTOS LOGISTICS, for a 2-year period in which, additionally, we will operate maquila services: labelling, kit assembling, thermolamination. The contract is for a 1-year period and considers the preparation of 500,000 orders that will be shipped from the AGUNSA Distribution Centre in Lampa. The operation started in October. We welcome Comercializadora Los Robles, distributors of the Thomas and Siegen brand in Chile. In November, we started with the storage service in AEXSA, our storage depot outside the port, in San Antonio, and the land transportation for the central zone. In December, we were awarded the maritime service for the transportation of their copper concentrate. The operation considers a monthly transportation of 300 containers bound for Asia, which consolidates our forwarding division in the north of the country. Rodrigo Jiménez Corporate Manager of Projects and Digital Transformation ECOMMERCE Hello everyone, the Latin American market of Fulfillment services is still young and undeveloped. In Chile, in mid-2019, internet sales did not reach 4% of the total sales, but after the closing of stores due to the social crisis in October 2019 and then the pandemic, this percentage rose to 15% and once the tourism online sales recover, which are now very low, online sales could exceed 25% and stay at that level. For consumers, this sales channel has changed from comfortable to necessary, and it will stay and continue growing. In June 2019, AGUNSAs corporate management of projects and digital transformation created a team of professionals to study the scope of the Fulfillment service, to identify their actors, customers, suppliers, technological developers, its entire eco-system, with the aim to enter this market, starting in January in our Distribution Center in Lampa with 3 customers and 100 monthly orders. Today, after one year of activity, it exceeds 6,000 monthly orders with 12 customers. Currently, we can identify and demonstrate to customers the main advantages of hiring our services. In parallel, we developed and implemented a new OMS (Order Management System) to integrate the platforms of online sales customers with the one from courier companies and our WMS-SIL with the aim of managing the receipt, storage, picking, packing operations in order to offer and accomplish a high quality business. 2021 will continue being a period to consolidate, grow in other countries, invest in technology, automation, alliances with last mile companies and other challenges, which demonstrates that Fulfillment services are a growth tool for the entire electronic commerce market and an essential complement to AGUNSAs Logistics and Distribution. EVOLUTIONNext >