Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Debt Investor Presentation (November 2013)
35 slides from Ferreycorp Saa's debt investor presentation, November 2013
Slide 1: Corporate Presentation
Corporate Presentation November 2013
Slide 2: Ferreycorp
-Ferreycorp
Slide 3: Disclaimer
This presentation has been prepared by Ferreycorp S.A.A. (together with its subsidiaries, the “Company”) and is not intended for general distribution. It may only be used for informational purposes. This presentation may contain proprietary, trade-secret, confidential and commercially sensitive info
Slide 4: Agenda
Agenda 2. Financial highlights
Slide 5: Mission, vision and corporate values
Mission, vision and corporate values + MISSION + OUR To provide the solutions that each customer needs, by supplying the capital goods and services that they STRATEGY require to create value in the markets where they operate + VISION Strengthen our leadership by being recognized by our customers as
Slide 6: Corporate history
Corporate history 2013: International bond 2010: 2012: issuance: US$ 300mm Revenue US$ 1,044mm Equity Follow-on 2012: Acquisition of 1997: Bucyrus representation 2000: Re-IPO First underground equipment 1991/1992: Chevrolet Representation 1994: 2012: First bond Reorganization to Ferreycorp and 1965:
Slide 7: Organization Structure
Organization Structure Caterpillar Dealers Caterpillar Dealers Other subsidiaries in Perú in Central America Guatemala El Salvador Belize As of 3Q 2013 As of 3Q 2013 As of 3Q 2013 Revenues: US$ 1,190MM (80%) Revenues: US$ 134MM (9%) Revenues: US$ 164MM (11%) Ebitda: 149MM (87%) Ebitda: US$ 14MM (8%)
Slide 8: Sales and Ebitda distribution as of 3Q 2013
Sales and Ebitda distribution as of 3Q 2013 Sales EBITDA Other Other subsidiaries subsidiaries 5% 11% Cat Dealers abroad Cat Dealers 8% abroad 9% Cat Dealers Cat Dealers in Perú in Perú 87% 80% Total: US$ 1,488mm Total: US$ 171mm
Slide 9: Key success factors
Key success factors Able to take market opportunities in an attractive economy Grow client base with presence in fast-growing sectors Seed from established and growing fleet of equipment, increase share of wallet Strategic alliance with Caterpillar and continuous alignment Product portfolio and valu
Slide 10: Nationwide coverage
Nationwide coverage Ferreyros establishment Branches Projects “in situ” Branches expansion International expansion Local International BELIZE EL GUATEMALA SALVADOR NICARAGUA PERÚ Ferreyros branches On-site projects Orvisa, Unimaq and Gentrac Guatemala branches
Slide 11: Customer-oriented matrix organization
Customer-oriented matrix organization Business platform to target different sectors in the Peruvian economy including: Mining division – open pit mining Construction and mining General Construction & industrial – subsidiary Unimaq Power, marine and hydrocarbons Government Market Large open –pit Heav
Slide 12: Lean logistics
Lean logistics Lean and efficient logistics and infrastructure Logistics footprint Ferreycorp integrates and administrates all the key elements in the logistic chain as a value proposition Vertical integration through complementary businesses : 1)Freight Forwarder (FORBIS) y 2)Warehouses and termina
Slide 13: Seasoned management team
Seasoned management team Business Control and Systems Central Management Hugo Sommerkamp (28) Administration and Finance Central Management Patricia Gastelumendi (26) Human Resources Central Management Andrés Gagliardi (27) Central Bussines Management Gonzalo Díaz (9) Central Marketing Management Mi
Slide 14: Qualified and talented workforce
Qualified and talented workforce Strong commitment to have the most qualified workforce As of September 2013, Ferreycorp had a total of 6,528 employees Staff evolution 3,015 technicians 7,000 3,360 administratives and sales 6,000 153 executives 5,000 3,015 The company’s employee population has been
Slide 15: Strong corporate governance and social responsibility
Strong corporate governance and social responsibility High degree of compliance with the good corporate governance principles: Win/Win situation with all stakeholders International recognition: World Finance Award 2011 and 2012; Latin America Investor Relations Awards Social Responsibility Programs
Slide 16: Ferreycorp at a glance and financial capabilities
Xx -Ferreycorp 1 a 2 | Ferreycorp at Financial a glance and highlights capabilities
Slide 17: Financial highlights
Financial highlights Sales by commercial line Imports and distributes capital goods and spare parts and is the leading provider of 1,800 rental services. #1 importer of capital goods 1,600 in Peru 1,400 Unique Caterpillar distributor in Peru, 1,200 US$ Million Guatemala, El Salvador and Belize 1,000
Slide 18: Financial highlights
Financial highlights Key Financials Sales by economic sectors – 3Q 2013 USD MM 2010 2011 2012 1Q2013 2Q2013 3Q 2013 Fishing and marine Revenues 1,043 1,389 1,831 486 1,049 1,488 2% Hydrocarbons and Ebitda 115 152 181 45 113 171 Agriculture and energy forest 9% Net debt/ Ebitda 3.54 3.43 3.62 3.38 3.
Slide 19: Financial highlights
Financial highlights Caterpillar mining trucks population 550 500 450 400 350 300 Units 250 200 430 150 332 246 100 186 205 50 78 0 11 1994 1998 2001 2004 2007 2010 2013
Slide 20: Track record of consistent financial performance
Track record of consistent financial performance Sales (US$mm) Gross Margin 25% Prime Parts and services Used and Rental Others 24% 23% 22% 21.1% 21.1% 1,831 20.7% 20.7% 21% 20.3% 160 20% 1,419 135 1,488 19% 108 113 18% 1,050 104 557 126 17% 16% 107 464 462 2009 2010 2011 2012 3Q2013 766 86 77 53 37
Slide 21: Track record of consistent financial performance
Track record of consistent financial performance EBITDA (US$mm) and EBITDA margin (%) ROE - ROA ROE ROA EBITDA EBITDA margin % 18.3% 14.9% 15.4% 11.8% 11.0% 10.9% 11.5% 9.9% 14.0% 9.10% 181 171 5.81% 155 5.25% 5.40% 115 4.66% 90 2.90% 2009 2010 2011 2012 3Q2013 2009 2010 2011 2012 3T 2013
Slide 22: Investment in assets
Investment in assets Inventory evolution (US$mm) Large mining inventory as and turnover ratio of 3Q13: US$ 66mm US$ MM 1.9 70 2.3 3.03 2.78 2.72 6.4 2.46 60 San Martin 2.19 3.6 Madisa 50 11.4 SMCV 602 592 552 454 Xstrata 338 40 11.4 Hudbay 206 Toromocho 30 2009 2010 2011 2012 3Q13 2013 (P) 14.1 Sout
Slide 23: Capex
Capex CAPEX evolution (US$mm) Components fleet as of 3Q 2013 18 16 16 14 73 12 25 55 10 Million US$ 49 12 39 31 8 7 20 38 14 21 7 13 16 6 5 16 8 9 11 8 4 4 2009 2010 2011 2012 2Q 2013 4 3 3 Infrastructure Rental fleet Equipment and components 2 - Final drive Motor hydraulic Transmission Wheel Other
Slide 24: Accounts receivables
Accounts receivables Accounts Receivable evolution by term 10 main customers ($77mm) US$ MM 90 San Martín Contratistas 80 Antamina 400 70 350 15 Servicios Mineros 14 Gloria 300 60 Minera Chinalco 250 33 US$ MM 36 50 200 Stracon 13 335 356 150 245 40 Xstrata Tintaya 100 205 159 50 SMCV 30 0 2009 2010
Slide 25: Access to diversified sources of financing
Access to diversified sources of financing Financial expenses Liabilities structure 500 5.0% 50 4.1% 400 4.0% US$ Million 3.0% 300 2.4% 318 2.1% 2.0% 1.9% 2.0% 200 220 1.0% 100 9 0.0% 50 108 0 2009 2010 2011 2012 3Q13 Current Non-Current Hannover Re CFS Bonds Banks
Slide 26: Access to diversified sources of financing
Access to diversified sources of financing Diversified funding base (US$mm) Bancos CAT Leasing Chile y Hanover Bonos Interest Net Debt/ 3T2013 273 158 328 US$ 759MM coverage EBITDA ratio 3T 2013 4.23% 3.22x 2012 388 264 75 US$ 728MM 2012 4.07% 3.62x 2011 4.88% 3.43x 2011 359 100 99 US$ 558MM 2010 4.
Slide 27: Financial ratios
Financial ratios Net debt to EBITDA ratio Adjusted debt to EBITDA ratio 4.39 2.93 4.08 2.68 3.62 2.37 2.38 2.47 3.33 3.38 3.22 3.07 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 2009 2010 2011 2012 3Q13
Slide 28: Financial ratios
Financial ratios FCO assuming a $30MM reduction in inventory 226 US$ MM Operating cash flow as of sept’13 US$ MM 43 47 226 25 (4) 2009 2010 2011 2012 2013E 43 47 (4) (4) FCO assuming $40MM reduction in inventory 226 US$ MM 2009 2010 2011 2012 2013 YTD 43 47 35 (4) 2009 2010 2011 2012 2013E
Slide 29: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market Capital S/. 945’227,102.00 Shareholders composition Nº of stocks 945’227,102.00 Pension Nominal value S/. 1.00 Local Funds, companies, 20.33% 32.10% Main shareholders as of september 2013 Titular % Retail, La Positiva Vida Seguros y Reaseguros S.A 8.35% 11.07% Equino
Slide 30: Growth model
Growth model I. CATERPILLAR and allied brands growth strategies II. IV. Peruvian organic International growth due to economic growth, expansion and increase market growth of the coverage, new portfolio abroad segments III. New represented brands
Slide 31: Contribution of new business and lines
Contribution of new business and lines 1550 1500 9 1 11 1450 22 36 1400 Tecseg and lubricants 1350 134 1488 1300 1250 Bucyrus Line 1274 1200 1150 Al 30-09-2012 Nuevas Lineas Nuevos negocios Dist CAT Perú Unidad III Dist CAT Exterior Other Al 30-09-2013 Ferreyros, Motored, Mega, Gentrac, Cogesa Unima
Slide 32: Contacts
Contacts Administration and Finance Manager: Patricia Gastelumendi Treasury Manager: Liliana Montalvo Investor Relations: Elizabeth Tamayo
Slide 33: Ferreycorp
Xx -Ferreycorp
Slide 34: Market share
Market share Perú Central America Open pit mining Heavy construction Guatemala Otros SEM 2% 13% Otros 6% JCB 2% JCB 1% SDLG 2% John Deere Komatsu Bomag 12% 46% 3% Caterpilla Caterpillar Liugong r 47% New Holland 54% 2%John 9% Deere 3% Doosan Hyundai 8% Caterpillar 43% 4% Hyundai 5% Komatsu 1% Volvo
Slide 35: Dividend policy – annual compliance
Dividend policy – annual compliance In 1997, the company´s shareholders approved the dividend policy. A modification was approved to assign minimum and maximum ranges. Cash dividends will amount to 5% of the capital or a ceiling equal to 50% of freely available profits. The remainder will be cap
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