Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Q4 2015 Earnings Presentation
27 slides from Ferreycorp Saa's earnings presentation, February 2016
Slide 1: Corporate Presentation
Corporate Presentation February 2016 (Fourth 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 10’s International 00’s Complementary expansion: CAT and businesses (economic other brands 90’s Organizational sectors, business development to take lines) opportunities arising from large mining 2016 80’s Redefining business: focus on 2010 capital goods 70’s Move operations to 10’
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. 2015 2015 2015 Revenue: US$ 1,308 MM (78%) Revenue: US$ 163 MM (10%) Revenue: US$ 202 MM (
Slide 8: Sustainable Business Model
Sustainable Business Model Sales by line of business 2,000 US$1.9Bn In functional currency sales US$1.72BnUS$1.67Bn 1,800 grew by 9.3% 1,600 2014 (S/. 4.9 Bn) vs 1,400 2015 (S/. 5.3 Bn) US$ Millon 1,200 1,000 800 600 400 Product Support sales 200 10 Year CAGR – 15% - (2005-2015) 2007 2008 2009 2010
Slide 9: Diverse Customer Base
Diverse Customer Base 51% of deliveries from non-mining customers Sales by economic sectors 1% 1% 2% 2% 3% 3% 3% 3% 3% 3% 3% 2% 10% 27% 11% 36% 12% 4% 3% 3% 49% 2% 1% 2% 18% 26% 14% 24% 29% 2010 2014 2015 Open pit mining Underground mining Construction Government Transport Industry, commerce and ser
Slide 10: Capabilities
-Ferreycorp Capabilities ib oad ~ re See
Slide 11: Nationwide Coverage in Peru and 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 2015 Total number of employees Technicians 2,703 Administratives & sales 3,786 6,633 6,665 Executives 176 6,237 6,518 Total employees 6,665 5,358 4,737 2,806 2,703 2,847 2,929 2,631 2,386 Programs to retain and develop best talents: Leadership pr
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 3% JCB Kubota 2% HollandOtros Sany Atlas 1% 1% 3% 2% 2% 2% 5% Copco Hitachi New Holland Others Volvo 6% 7% 1% 4% 3% Bob Cat P&H John Deere 3% 9% Hamm 7% Doosan Cater
Slide 16: Financial Performance
-Ferreycorp Financial Perfomance
Slide 17: Track Record of Consistent Financial Performance
Track Record of Consistent Financial Performance Gross Margin Net Margin 26% 8% 25% 24.2% 24% 6% 5.0% 4.7% 22.9% 23% 4% 3.0% 22% 21.1% 21.2% 20.7% 1.9% 1.9% 21% 2% 20% 19% 0% 18% 2011 2012 2013 2014 2015 17% Avg. Exch rate 2.753 2.635 2.722 2.84 3.187 2011 2012 2013 2014 2015 Gain (loss) to exchange
Slide 18: Investment in Assets: Accounts Receivables
Investment in Assets 1) Accounts Receivables Accounts Receivable evolution by term Factoring US$ MM 150 140 US$ MM 350 130 14 120 300 11 10 14 33 110 250 36 100 200 90 13 150 292 305 298 281 80 245 150 100 205 70 159 60 50 115 50 0 2009 2010 2011 2012 2013 2014 2015 40 Short term Long term 30 20 10
Slide 19: 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 46 49 35 12 16 29 20 38 13 26 3 602 584 21 13 523 5 10 454 7 28 405 5 16 17 16 10 338 8 9 6 206 -2 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 Infrastructure Rental
Slide 20: Cash Cycle
Cash Cycle -42 days of accounts payable Cash Cycle of 149 days 56 days of accounts receivable 135 days of Inventory (2.67x)
Slide 21: Access to Diversified Sources of Financing
Access to Diversified Sources of Financing Diversified funding base (US$mm) Debt by currency Banks Caterpillar Bonds 14% 2% 2015 201 93 295 US$ 589 MM 3% Soles Quetzales 2014 222 123 295 US$ 640 MM Pesos Chilenos Dólares 81% 2013 236 170 325 US$ 731MM Debt by group of companies 2012 388 264 75 US$ 7
Slide 22: 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% 4.65% 4.4% 4.4% 350 4.2% 303 4.0% 300 250 3.0% 2009 2010 2011 2012 2013 2014 2015 200 168 150 Financial expenses (as% of total sales) 100 71 5.0% 50 27 15 4.1% 4.0% - 2016 2017 20
Slide 23: 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 2.59 3.62 3.50 3.53 3.52 2.37 2.38 2.46 3.33 3.38 3.27 3.22 3.28 3.21 3.48 2.85 3.06 2.67 2009 2010 2011 2012 2013 2014 2015 * Adjusted debt: total debt excluding short term debt related to inve
Slide 24: Profitability Ratios
Profitability Ratios 16% 14% 14.1% 14.1% 13.1% 12.1% 12% 11.3% 11.5% 9.9% 10.6% 10% 10.2% 9.8% 8.1% 8.4% 7.7% 8% 6.7% 8.4% 7.3% 7.4% 7.0% 5.8% 6% 6.4% 6.3% 5.9% 5.5% 5.3% 4.6% 4% 4.2% 4.0% 2% 0% 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 ROE ROA ROIC • ROIC: EBITLTM / In
Slide 25: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market Capital S/. 1’014,326,324 Shareholders composition as of December 2015 Nº of stocks 1’014,326,324 Dividend Yield 4.6% EV/EBITDA 12m 6.0x Local Pension Foreign funds Main shareholders as of December 2015 investors 22% 36% Titular % La Positiva Vida Seguros y Reaseguro
Slide 26: 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 27: Contacts
Contacts Administration and Finance Manager: Patricia Gastelumendi Treasury Manager: Liliana Montalvo Investor Relations: Elizabeth Tamayo