Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Q1 2023 Earnings Presentation
37 slides from Alicorp Saa's earnings presentation, March 2023
Slide 1: Corporate Presentation
CORPORATE PRESENTATION March 2023
Slide 2: Disclaimer
DISCLAIMER This presentation may contain financial or business projections regarding recent acquisitions, their financial or business impact, management expectations and objectives regarding such acquisitions and current management expectations on the operating and financial performance of The Compa
Slide 3: Topics
TOPICS KEY INVESTMENT HIGHLIGHTS 1 ALICORP AT A GLANCE 2 CORPORATE STRATEGY 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 APPENDIX 5
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS
Slide 5: Key Investment Highlights
Key Investment Highlights 1 Leading regional player with a successful business model diversified across product categories and countries 2 Portfolio of top-of-mind and leading brands with a proven track record of successful new product offerings 3 Unique manufacturing and distribution platform to se
Slide 6: Leading regional player with a successful diversified business model
KEY INVESTMENT HIGHLIGHTS 1. Leading regional player with a successful business model diversified across product categories and countries UNMATCHED PORTFOLIO OF HIGHLY SUCCESSFUL LEADING BRANDS ACROSS DIFFERENT SECTORS AND COUNTRIES Brands with leading position and market share in market and custome
Slide 7: Top-of-mind portfolio and leading brands with proven new product track record
KEY INVESTMENT HIGHLIGHTS Top-of-mind portfolio and leading brands with a proven track record of successful new product offerings SUCCESSFUL NEW PRODUCT LAUNCH STRATEGY WITH MORE THAN 160 OWN BRANS ACROSS DIFFERENT TIERS AND CATEGORIES CONSUMER GOODS EDIBLE LAUNDRY PERSONAL TIERS PASTA SAUCES FLOUR
Slide 8: Unique manufacturing and distribution platform
KEY INVESTMENT HIGHLIGHTS 3. Unique manufacturing and distribution platform to serve Consumer Goods, B2B and Aquafeed clients OUR MANUFACTURING AND DISTRIBUTION NETWORK EFFICIENTLY INTEGRATES LOCAL AND REGIONAL OPERATIONS Distribution Capabilities1 For Consumer Goods and B2B, strong manufacturing an
Slide 9: Solid financial performance driven by efficiency program
KEY INVESTMENT HIGHLIGHTS Solid financial performance driven by our comprehensive efficiency program and shareholder value creation mindset SALES EVOLUTION EBITDA & EBITDA MARGIN In PEN million In PEN million CAGR CAGR +10% +13% 15,406 15,387 1,622 1,440 12,216 1,277 1,317 1,119 9,872 1,022 9,348 8,
Slide 10: Highly experienced management supported by leading shareholder group
KEY INVESTMENT HIGHLIGHTS Highly experienced management supported by a leading and innovative shareholder group in Peru OUTSTANDING MANAGEMENT TEAM COMBINES PROVEN TRACK RECORD OF ORGANIC AND INORGANIC GROWTH STRATEGIES AND VAST SECTOR EXPERIENCE ▪ Support from a regional conglomerate champion such
Slide 11: Alicorp at a Glance
ALICORP AT A GLANCE
Slide 12: Alicorp is the leading consumer goods company in Peru
ALICORP AT A GLANCE Alicorp is the leading company of consumer goods in Peru and one of the biggest in Latin America ALICORP IN THE REGION DIVISION BY BUSINESS UNIT BRANDED FOODS, HOME & PERSONAL CARE CONSUMER 36% of total revenue Honduras 2023 LTM1 GOODS REVENUES 78% 13% 4% OTHERS 4 % Nicaragua Cos
Slide 13: Our Journey Towards a More Sustainable Company
ALICORP AT A GLANCE We continue to progress in Our Journey Towards a More Sustainable Company STRATEGIC PILLARS IN 2021 WE STARTED A Our roadmap PROCESS OF REVISING, CLOSING GAPS TO THE ALIGNMENT WITH STRENGTHENING AND EXPECTATIONS OF KEY CORPORATE WELLBEING PRIORITIZING OUR STAKEHOLDERS STRATEGY SU
Slide 14: Consumer Goods Peru
ALICORP AT A GLANCE Consumer Goods Peru1 MAIN CATEGORIES BREAKDOWN REVENUE AND GROSS MARGIN HIGHLIGHTS % of Sales In PEN million CAGR 2018-2023: +6.5% Production facilities 4,328 4,373 OUR CONSUMER 3,188 3,895 3,549 3,716 Main categories and brands GOODS PERU 29% 27% BUSINESS UNIT 30.3% 29.1% 32.8%
Slide 15: Consumer Goods International
ALICORP AT A GLANCE Consumer Goods International1 GEOGRAPHICAL PRESENCE REVENUE AND GROSS MARGIN In PEN million HIGHLIGHTS CAGR 2018-2023: -1.1% Production facilities 1,706 OUR CGI BUSINESS 1,289 Main exports 1,222 1,074 1,127 1,198 PRODUCES AND DISTRIBUTES FOODS, 24.8% 26.9% 28.2% 21.4% 17.5% 16.7%
Slide 16: Consumer Goods Bolivia
ALICORP AT A GLANCE Consumer Goods Bolivia MAIN CATEGORIES BREAKDOWN1 REVENUE AND GROSS MARGIN1 % of Sales In PEN million MAIN CATEGORIES AND BRANDS CAGR 2018-2023: +16.0% 745 753 OUR CONSUMER 695 718 EDIBLE OILS 589 GOODS BOLIVIA UNIT 30% 27% 358 IS BACKWARDS 19.7% 28.1% 27.8% 18.8% 16.4% 16.1% VER
Slide 17: Consumer Goods Ecuador
ALICORP AT A GLANCE Consumer Goods Ecuador MAIN CATEGORIES BREAKDOWN1 REVENUE AND GROSS MARGIN1 % of Sales In PEN million MAIN CATEGORIES AND BRANDS CAGR 2018-2023: +31.8% 231 OUR CONSUMER 166 183 219 DETERGENTS GOODS ECUADOR 25% 140 UNIT IMPORTS FOOD, 38% 58 55.2% 35.5% 36.2% 31.3% 25.3% 22.4% HOME
Slide 18: B2B
ALICORP AT A GLANCE B2B HOW B2B ADDS VALUE REVENUE AND GROSS MARGIN1 In PEN million HIGHLIGHTS GO-TO-MARKET CAGR 2018-2023: +11.2% Production facilities OUR B2B BUSINESS 2,734 2,695 ▪ HAS THREE MAIN Ample coverage 2,169 ▪ Efficient client segmentation Main categories and brands 1,586 1,647 1,518 PLA
Slide 19: Aquafeed
ALICORP AT A GLANCE Aquafeed GEOGRAPHICAL PRESENCE REVENUE AND GROSS MARGIN1 In USD million OUR AQUAFEED CAGR 2018-2023: +10.4% 1,017 1,043 BUSINESS PRODUCES 719 635 650 SHRIMP FEED IN 548 HIGHLIGHTS CHILE, ECUADOR, 21.9% 21.2% 19.2% 15.4% 14.8% 14.3% Main categories and brands PERU AND HONDURAS; 20
Slide 20: Crushing
ALICORP AT A GLANCE Crushing2 VOLUME SOLD1 REVENUE1 In thousands of MT In USD million 1,081 1,045 OUR CRUSHING -3.0% 813 237 242 BUSINESS PRODUCES HIGHLIGHTS 204 1,362 1,322 496 Production facilities 1,293 SUNFLOWER SEED 308 304 304 -0.1% 128 368 609 844 803 Main exports OILS AND SOYBEAN 2020 2021 2
Slide 21: Corporate Strategy
si alicorp CORPORATE STRATEGY
Slide 22: Alicorp's updated strategic framework: winning aspiration
CORPORATE STRATEGY Alicorp’s updated strategic framework WINNING ASPIRATION We feed a better tomorrow with relevant value propositions for each of our consumers and clients in the Andean Region, transforming markets with our leading brands, ability to innovate, efficient management and the talent of
Slide 23: Capabilities, key initiatives and strategic projects
CORPORATE STRATEGY Alicorp’s updated strategic framework CAPABILITIES WE CAREFULLY Innovation Digital Our people Portfolio management Technology & processes Sustainability PRIORITIZE INITIATIVES AND MANAGE KEY INITIATIVES & STRATEGIC PROJECTS RESOURCES FOCUSING ON RETURN ON CG PERU CG INTERNATIONAL
Slide 24: Key Indicators
CORPORATE STRATEGY Key Indicators We continue to develop our Revenue (PEN MM) EBITDA (PEN MM) innovation and digital +65% +29% initiatives: ALICORP DELIVERS 15,406 15,387 1,622 REMARKABLE RESULTS 12,216 1,277 1,317 1,440 → Amarás Almost 10% share of volume 1,119 DESPITE THE 8,289 9,872 9,348 1,022 i
Slide 25: Innovation: Amarás, a new brand promise
CORPORATE STRATEGY Innovation: a new brand promise AMARÁS, UNIQUE AS YOUR HAIR AND PERU First remarkable results: ▪ Market share target for 2024 already met at 3.5%1 WHO: Young Peruvians who are tired of purchasing traditional supermarket brands ▪ Almost 10% of volume market share in the hair care c
Slide 26: Digital Initiatives: IoT and analytics for Vitapro's clients
CORPORATE STRATEGY Digital Initiatives INTERNET OF THINGS AND ANALYTICS ECOSYSTEM TO IMPROVE PRODUCTIVITY IN VITAPRO’S CLIENTS Our solution introduces Internet of Things, data and analytics infrastructure to shrimp pool management to improve efficiency OUR PURPOSE IS TO and effectiveness of shrimp f
Slide 27: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 28: Leverage and credit rating
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating MATURITY PROFILE AS OF MARCH 20231 PEN million CONSERVATIVE DEBT TOTAL CASH 1,210 1,202 1,133 MANAGEMENT WITH 825 855 854 492 PEN 1,210 million 860 148 143 448 INVESTMENT GRADE 506 655 663 609 158 234 256 216 RATINGS DEBT COVERAGE1,
Slide 29: Leverage
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage INDEBTEDNESS EVOLUTION Net Debt / EBITDA1 PEN million 8,000 4 7,000 3.0x 2.9x 2.6x 2.5x 2.5x 3 6,000 WE MANAGED TO 5,000 4,000 3,641 4,590 3,974 4,033 4,107 2 PARTIALLY OFFSET OUR 3,000 1 2,000 LOWER EBITDA 1,000 - GENERATION WITH - -1 Q1 '22 Q2 '22
Slide 30: Working capital – Cash conversion cycle
SOLID LIQUIDITY AND STRONG BALANCE SHEET Working capital – Cash conversion cycle (CCC) WORKING CAPITAL1,2 Days THE INCREASE IN DAYS OF 130 133 127 INVENTORY AND 124 124 Accounts Payable 3 RECEIVABLES WAS PARTIALLY OFSSET BY 107 107 109 110 112 Inventories SEVERAL WORKING CAPITAL INITIATIVES THAT MAI
Slide 31: Debt Breakdown
SOLID LIQUIDITY AND STRONG BALANCE SHEET Debt Breakdown TOTAL DEBT1 DEC ‘21 DEC ‘22 MAR ‘23 S/ 5,245MM S/ 4,973MM S/ 5,317MM 7.5% 32.9% 31.5% 7.2% International Bonds 6.3% By Source1 Local Bonds 34.3% 30.7% Working Capital Debt 2.9% 16.0% LT Bank Debt 26.5% 32.7% Leases (IFRS 16) 5.3% 24.3% 22.2% 19
Slide 32: Dividend Payment Evolution
SOLID LIQUIDITY AND STRONG BALANCE SHEET Dividend Payment Evolution 714 Dividend Paid (PEN million) Dividend per share (PEN) 214 214 209 205 205 0.84 0.28 162 145 0.24 0.24 0.25 0.25 120 110 0.19 103 103 0.17 0.13 0.14 0.12 0.12 46 0.05 2010 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 1 2022 2
Slide 33: Appendix
APPENDIX
Slide 34: Alicorp is the undisputed leader in its core markets
ALICORP AT A GLANCE Alicorp is the undisputed leader in its core markets RANKED #1 FOR MAIN CATEGORIES Business Category Brands Rank % of sales1 Competitors Laundry Detergents #1 6.7% Edible Oils #1 5.8% Consumer Goods Peru Pasta #1 3.6% Cookies & Crackers #1 2.3% Industrial Baking Flour #1 6.6% B2B
Slide 35: Leveraging our distribution model
ALICORP AT A GLANCE Leveraging our distribution model CONSUMER GOODS PERU: GO-TO-MARKET MODEL1 STRONG PRESENCE OF ALICORP’S PRODUCTS IN PERUVIAN HOUSEHOLDS4,5,6 (As % of household presence) 32% TRADITIONAL CHANNEL Exclusive Laundry Detergents 84 distributors 22 11% Pasta 77 Wholesalers 35 SHOPPER 34
Slide 36: Q1 '23 Milestones
APPENDIX Q1 ’23 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION PATITO AVAL launched of Baby launched new & Kids Detergent presentations in Peru and Softener Portfolio in Bolivia Javier Rota, our country manager in Through “Ollas Que Desarrollan” we joined the Bolivia, was recognized
Slide 37: Álvaro Rojas Miro Quesada
Álvaro Rojas Miro Quesada Investor Relations Officer InvestorRelations@alicorp.com.pe www.alicorp.com.pe This presentation and further detailed information can be found in the following link in our section “Investor Services”: https://inversionistas.alicorp.com.pe/alicorp-ir/public/investor-services