Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Ferreycorp — Investor Presentation (November 2017)
29 slides from Ferreycorp Saa's investor presentation, November 2017
Slide 1: Corporate Presentation
Corporate Presentation November 2017
Slide 2: Company Overview
Company Overview
Slide 3: Highlights
HIGHLIGHTS Established in Peru in 1922 90+ years of business, 70+ years of alliance with CAT currently operating 17 companies within 10 countries employing a workforce of +6,000 employees Key facts 60% Caterpillar Market Share Market cap (Sep-2017) ~$790MM Shareholders +2,500 SHAREHOLDER
Slide 4: History of the Corporation
HISTORY OF THE CORPORATION 00’s Complementary 10’s International businesses (economic expansion: CAT and sectors, business other brands 90’s Organizational lines) development to take opportunities arising from large mining 80’s Redefining 2017 business: focus on capital goods 2010 70’s Move operatio
Slide 5: Corporate Structure
CORPORATE STRUCTURE BVL: FERREYC1 Caterpillar dealers and allied Caterpillar dealers and other businesses Other subsidiaries in Peru and brands in Peru in Central America abroad Guatemala Chile, Colombia , Ecuador, Perú El Salvador Belice Nicaragua El Salvador, Honduras
Slide 6: Ferreycorp at a Glance
FERREYCORP AT A GLANCE As of Sep 2017 Caterpillar dealers and Caterpillar dealers and other Other subsidiaries in (S/. Million) allied brands in Peru businesses in Central America Peru and abroad Sales 2,711 332 594 % of Total Sales 75% 9% 16% EBITDA 348 32 18 % of Total EBITDA 87% 8% 5% EBITDA Marg
Slide 7: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business
Slide 8: Key Capabilities
ULLAL Key Capabilities ‘Ferreycorp
Slide 9: Key Capabilities
KEY CAPABILITIES Long term strategic partnerships Market coverage Unmatched supply chain and logistics capabilities Financial strength and funding sources In-depth market knowledge Innovation and Technology Ethics and compliance, Corporate Governance and Sustainability
Slide 10: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS
Slide 11: Market Coverage
MARKET COVERAGE Ferreyros: 6 locations in Lima, 17 branches and Tumbes offices Trompeteros Iquitos Talara Jaén Unimaq: main location in Lima and 8 branches in Piura, Cajamarca, Lambayeque, Trujillo, Piura Bagua Huancayo, Arequipa, Cusco e Ilo. 3 Offices in Lambayeque Cajamarca Tarapoto Cerro de Pasc
Slide 12: Unmatched Logistics Capabilities
UNMATCHED LOGISTICS CAPABILITIES 890,000 m2 170+ US$120M 365 DAYS TO SERVE OUR CUSTOMERS POINTS OF CONTACT INVENTORY OF PARTS 24x7 OPERATIONS • 50+ warehouses, several located in remote locations (eg: • ISO9002 certification mines) • ISO 14000 certification • 7,000 yearly trips to reach our customer
Slide 13: Innovation and Technology
INNOVATION AND TECHNOLOGY Innovative customer solutions E-commerce Performance solutions: condition monitoring CRM: follow business opportunities and increase customer coverage Processes and systems: SAP platform Design Thinking
Slide 14: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS Ferreycorp Association Environmental management system based on ISO “Operadores de equipo pesado Ferreyros” Club 14001 Think Big Program Environmental Management Programs: planning, Community Environment “Jóvenes con Futuro” Program training and awareness, ope
Slide 15: Corporate Standards: Strong Corporate Governance
CORPORATE STANDARDS STRONG CORPORATE GOVERNANCE • Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962. • Ferreycorp is included in the Corporate Governance Index of the Lima Stock Exchange since its inception in 2008. Board of Directors: • The last General Annual Meeting agreed to
Slide 16: Financial Performance
ULL Financial Performance Ferreycorp
Slide 17: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL SALES BY LINE OF BUSINESS • In a context of poor momentum in mining investment and delayed infrastructure US$1.9Bn 2,000 projects 1,800 US$1.7Bn US$1.6Bn 1,600 US$1.4Bn • Resilient business model 1,400 US$ Million US$1.1Bn US$1.1Bn 1,200 • Stable product support business 1
Slide 18: Operational Results
OPERATIONAL RESULTS -11.2% Million Soles (S/ mm) 3,125 2,000 3000 2,752 1,749 514 2,558 1,800 2500 466 1,600 261 1,553 568 515 2,166 1,400 307 -4.9% 2000 667 359 419 1,200 587 1500 1,088 564 1,000 472 MACHINERY 1000 1,045 800 569 561 533 1,074 704 600 480 91 104 500 400 156 147 955 500 382 574 539 2
Slide 19: Sales by Group of Companies
SALES BY GROUP OF COMPANIES Million Soles (S/ mm) CAT dealers and other businesses in CA • Caterpillar dealers in Peru (76% of total sales): +1.5% driven by spare parts and services (56% of total revenues) and Ferreyros mining equipment (+12%) -2.3%% 140.0% 120.0% -15.6% 340 332 • The companies that
Slide 20: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Million Soles (S/ mm) SALES AND GROSS MARGIN 50.0% HIGHLIGHTS 5,225 5,333 -3.0% 4,878 4,856 45.0% 40.0% 3,751 3,637 35.0% • Resilient business model 30.0% • Successful execution of operational priorities 25.0% • Consistent EBITDA generation and margin 22.9% 24.2% 24.3%
Slide 21: Investment in Assets
INVESTMENT IN ASSETS Million Soles (S/ mm) ACCOUNTS RECEIVABLES EVOLUTION INVENTORY EVOLUTION +0.3% +0.2% 1,188 1,192 1,580 1,561 1,200 1,125 1,600 36 93 49 58 1,379 1,005 45 1,258 920 1,400 1,233 1,260 1,000 862 48 371 402 70 31 1,200 104 89 92 800 36 389 1,000 375 382 415 600 1,152 800 1,080 1,099
Slide 22: Investment in Assets
INVESTMENT IN ASSETS Million Dollars (US$ mm) CAPEX EVOLUTION CASH CYCLE 152 148 148 152 145 44 45 9 30 126 128 127 128 126 35 23 3 -11 13 ~ S/ 44mm 25 19 15 5 5 77 15 28 67 70 16 17 17 72 73 5 11 -3 -1 53 54 51 -5 2013 2014 2015 2016 -9 YTD'17 46 47 -15 -33 -25 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 -35 Inf
Slide 23: Cash Flow Breakdown
CASH FLOW BREAKDOWN Million Soles (S/ mm) FREE CASH FLOW Operating Cash Flow S/ 313 Cash used in Investing activities S/ -99 Cash flow from financing activities S/ -174 85 86 86 31 18 6 31 56 313 56 398 124 139 3 171 Operating cash Capex Intangible assets Financial Free cash flow 129 flow expenses Y
Slide 24: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million Dollars(S/ mm) DEBT BY CURRENCY 9% 2% DIVERSIFIED FUNDING BASE 0% Soles Quetzales 3.28 3.50 2.67 2.86 2.76 2.83 Pesos Chilenos 800 731 Dolares 700 640 0.00 89% 600 170 589 539 542 123 521 93 500 53 104 83 -5.00 • Natural hedge: revenue-debt 400 325 295 161 161 295
Slide 25: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million Dollars(S/ mm) AVG COST OF DEBT 4.65% 4.40% 4.36% 4.12% DEBT MATURITY 3.50% 211 197 2013 2014 2015 2016 YTD'17 104 FINANCIAL EXPENSES Million Soles S/ mm) 30 140 130 125 8.0% 7 64 120 106 7.0% 110 103 97 6.0% 100 90 2017 2018 2019 2020 2021 2022 90 5.0% 80 70 58 4
Slide 26: Profitability Ratios
PROFITABILITY RATIOS 16.0% 14.3% 14.6% 13.2% 13.5% 13.2% 12.2% 12.8% 11.8% 11.9% 11.6% 11.9% 11.5% 10.8% 8.1% 7.7% 7.1% 6.3% 6.1% 6.2% 5.5% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 ROE ROA ROIC • ROIC: EBITLTM / Invested Capital (total equity + financial net debt): affected by sales that decreased
Slide 27: Ferreycorp in the Capital Market
FERREYCORP IN THE CAPITAL MARKET SHAREHOLDERS COMPOSITION AS OF SEPT 2017 Capital S/. 1’014,326,324 Local pension Nº of shares 1’014,326,324 funds Dividend Yield 2016 (div 0.128457) 7.6% Foreign 27% investors Repurchased shares as of June 2017 43’145,669 40% Peruvian investors 33% MAIN SHAREHOLDERS
Slide 28: Dividend Policy Annual Compliance
DIVIDEND POLICY ANNUAL COMPLIANCE In 1997, the company´s Shareholders meeting 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 amount to be
Slide 29: -Ferreycorp
-Ferreycorp