Slide 1: Corporate Presentation
Corporate Presentation November 2015 (Third quarter 2015 results)
Slide 2: 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 3: Business highlights
-Ferreycorp Business highlights
Slide 4: 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 5: Ferreycorp at a glance
Ferreycorp at a glance Distribution of capital goods and provide related services. Focus in the after-market Unique Caterpillar distributor in Peru, Guatemala, El Salvador and Belize. Presence in Nicaragua, Chile, Colombia and Ecuador representing allied brands. More than 70 years of strategic allia
Slide 6: Corporate History
Corporate History 2013 International Bond Issuance US$300mm 1997 Re-IPO: 2012 US$22mm Reorganization Equity Follow on 1994 US$ 62mm 2015 First bond issuance 2015 Transpesa 2010 2000 2014 TREX 1962 Registry in 1990 1942 2012 Lima Stock 1922 Caterpillar Bucyrus Exchange Ferreycorp 1980 foundation (for
Slide 7: Corporate Structure
Corporate Structure Caterpillar dealers Caterpillar dealers and Other Subsidiaries in Perú businesses abroad Caterpillar Dealers in Central America Guatemala El Salvador Belize Transportes Pesados S.A. de C.V. As of 3Q 2015 As of 3Q 2015 As of 3Q 2015 Revenue: US$ 1,021 MM (79%) Revenue: US$ 123 MM
Slide 8: Sustainable Business Model
Sustainable Business Model Sales by line of business In functional currency sales US$1.9Bn 2,000 US$1.7Bn grew by 10.4% 1,800 1,600 As of 3Q14 (S/. 3.7 Bn) vs US$1.3 US$1.2 1,400 Bn Bn As of 3Q15 (S/. 4.0 Bn) US$ Millon 1,200 1,000 800 600 Product Support sales 400 10 Year CAGR – 14% 200 (2004-2014)
Slide 9: Diverse Customer Base
Diverse Customer Base 50% of deliveries from non-mining customers Sales by economic sectors 2% 2% 3% 3% 1% 2% 3% 3% 3% 3% 3% 2% 9% 26% 12% 11% 36% 3% 49% 5% 3% 2% 1% 1% 19% 24% 26% 14% 29% 2010 As of Sept As of Sept 2014 2015 Open pit mining Underground mining Construction Government Transport Indus
Slide 10: Capabilities
-Ferreycorp Capabilities ib oad ~ re See
Slide 11: Nationwide Coverage in Peru Internationalization
Nationwide Coverage in Peru Internationalization Ferreyros establishment Branches Projects “in situ” Branches expansion International expansion Local International BELICE GUATEMALA EL SALVADOR NICARAGUA COLOMBIA ECUADOR PERÚ CHILE Ferreyros branches On-site projects Orvisa, Unimaq and Gentrac Guatem
Slide 12: Lean and Efficient Logistics
Lean and Efficient Logistics 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) and 2)Warehouses and terminals (Fargoline) Efficient handling: 100,000 SKU (Sale
Slide 13: Qualified and Talented Workforce
Qualified and Talented Workforce Ferreycorp employees September 2015 Total number of employees Technicians 2,704 Administratives & sales 3,630 6,633 Executives 170 6,237 6,518 6,548 Total employees 6,504 5,358 4,737 2,847 2,806 2,704 2,929 2,631 2,386 Programs to retain and develop best talents: Lea
Slide 14: Strong Corporate Governance
Strong Corporate Governance • Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962. Board • Ferreycorp is included in the Corporate Governance Index Dependent Directors Independent Directors of the Lima Stock Exchange since its inception in 2008. Oscar Espinosa Eduardo Montero Board
Slide 15: Caterpillar Market Share
Caterpillar Market Share Perú Central America Open pit mining Heavy and General construction Guatemala Hitachi KomatsuNew Liugong Case Kubota 2% HollandOtros Sandvik 3% JCB Sany 1% 2% Atlas Hitachi New Holland 1% 4% 2% 2% 2% 5% Others Volvo Copco 7% 1% 3% 5% John Deere 3% Bob Cat Hamm 5% 3% Doosan D
Slide 16: Financial Performance
-Ferreycorp Financial Perfomance
Slide 17: Track Record of Consistent Financial Performance
Track Record of Consistent Financial Performance Sales (US$mm) Gross Margin Machinery Parts and services Others Used and Rental 25% 24% 23.4% 22.9% 22.8% 23% 22% 21.1% 21.1% 21.2% 20.7% 21% 20.3% 1,831 1,931 1,718 20% 190 135 19% 1,419 160 142 181 18% 135 1,309 1,292 104 17% 108 557 633 133 112 1,05
Slide 18: EBITDA and Profitability
EBITDA and Profitability EBITDA (US$mm) and EBITDA margin (%) Operating and Net margin 9% 8.7% 8.6% 8% 7.8% EBITDA EBITDA margin % 6.8% 7.5% 7% 7.1% 6.9% 13.0% 6.4% 7.0% 12.0% 6% 11.8% 12.0% 11.2% 10.7% 10.8% 5.0% 11.0% 10.9% 11.0% 4.7% 4.7% 10.0% 5% 9.9% 9.0% 4% 217 8.0% 181 184 7.0% 3% 155 141 155
Slide 19: Investment in Assets: Accounts Receivables
Investment in Assets 1) Accounts Receivables Accounts Receivable evolution by term Factoring US$ MM 120 US$ MM 110 400 100 350 13 14 90 300 11 10 11 250 33 80 36 200 70 13 350 150 292 305 298 287 60 245 117 100 205 159 50 100 50 40 0 2009 2010 2011 2012 2013 2014 As of As of 30 3Q14 3Q15 Short term
Slide 20: Investment in Assets: Inventory and Fixed Assets
Investment in Assets 2) Inventory and Fixed Assets Inventory evolution (US$mm) CAPEX evolution (US$mm) 73 25 55 49 44 12 31 27 19 23 18 602 584 20 21 38 2 523 523 13 9 15 19 454 428 7 5 16 25 338 8 16 9 11 11 12 206 -3 -4 -9 2009 2010 2011 2012 2013 2014 As of As of 3Q14 3Q15 2009 2010 2011 2012 201
Slide 21: Cash Cycle
Cash Cycle -43 days of accounts payable Cash Cycle of 150 days 60 days of accounts receivable 133 days of Inventory (2.71x)
Slide 22: Access to Diversified Sources of Financing
Access to Diversified Sources of Financing Diversified funding base (US$mm) Debt by currency 8.4% Bancos Caterpillar Bonos 2.0% 3.2% 3Q 2015 227 122 296 US$ 645 MM Soles Quetzales Pesos Chilenos 2014 222 123 295 US$ 640 MM Pesos Colombianos Dólares 86.4% 2013 236 170 325 US$ 731MM Debt by group of c
Slide 23: Access to Diversified Sources of Financing
Access to Diversified Sources of Financing Avg interest rate 6.0% 5.3% Maturity of financial debt (US$mm) 5.0% 5.0% 4.9% 4.4% 4.4% 4.39% 4.2% 350 4.0% 303 300 3.0% 250 2009 2010 2011 2012 2013 2014 3Q2015 200 150 130 Financial expenses (as% of total sales) 93 5.0% 100 73 4.0% 4.1% 50 31 14 3.0% 0 0
Slide 24: Leverage Ratio / Covenant
Leverage Ratio / Covenant Net debt to EBITDA ratio Adjusted debt to EBITDA ratio 4.39 2.93 4.08 2.68 2.86 2.72 3.62 3.50 3.533.523.48 2.37 2.38 2.46 3.33 3.383.27 3.22 3.28 2.85 3.06 3.21 1Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q15 2009 2010 2011 2012 2013 2014 3Q15 * Adjusted debt:
Slide 25: Profitability Ratios
Profitability Ratios 16% 14% 13.5% 13.1% 12.1% 12% 11.3% 11.5% 9.9% 10.6% 10% 10.2% 8.1% 8.4% 8% 8.4% 6.7% 7.2% 5.8% 6% 4.6% 4% 4.3% 4.0% 3.0% 2.9% 2.3% 2.5% 2% 1.6% 2.0% 1.4% 0% 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 ROE ROA ROIC • ROIC: EBITLTM / Invested Capital (total de
Slide 26: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market Capital S/. 1’014,326,324 Shareholders composition as of September 2015 Nº of stocks 1’014,326,324 Dividend Yield 4.4% EV/EBITDA 12m 6.0x Local Pension Foreign funds investors 23% Main shareholders as of September 2015 36% Titular % La Positiva Vida Seguros y Reasegu
Slide 27: 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 60% of freely available profits. The remainder will be cap
Slide 28: Contacts
Contacts Administration and Finance Manager: Patricia Gastelumendi Treasury Manager: Liliana Montalvo Investor Relations: Elizabeth Tamayo