Slide 1: Corporate Presentation
Corporate Presentation January 2019
Slide 2: Ferreycorp and Strategy
ATTTELLLLL Ferreycorp and Strategy Ferreycorp
Slide 3: Highlights Ferreycorp
HIGHLIGHTS FERREYCORP • Established in Peru in 1922. • 96 years of business, 76 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 (Jan-2019) ~ $700MM • Shareholders +2,5
Slide 4: History of the Corporation
HISTORY OF THE CORPORATION 10’s International 00’s Complementary expansión: CAT and businesses (economic other brands. 90’s Organizational sectors, business lines) development to take opportunities arising from large mining. 80’s Redefining 2018 business: focus on 2010 capital goods. 70’s Move opera
Slide 5: Corporate Structure
CORPORATE STRUCTURE BVL: FERREYC1 Caterpillar dealers and allied Caterpillar dealers and other businesses in Other subsidiaries in Peru and brands in Peru Central America abroad Guatemala Chile, Colombia , Ecuador, Perú El Salvador Belice Nicaragua El Salvador, Honduras
Slide 6: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business
Slide 7: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS
Slide 8: Key Capabilities
KEY CAPABILITIES Long term strategic partnerships Market coverage Unmatched supply chain and logistics capabilities Financial strength and funding sources In-depth market knowledge Innovation and technology Ethics and compliance, Corporate Governance and Sustainability
Slide 9: Ferreycorp at a Glance
FERREYCORP AT A GLANCE As of 3Q’18 Caterpillar dealers and allied Caterpillar dealers and other Other subsidiaries in Peru (S/. Million) brands in Peru businesses in Central America and abroad Sales 2,829 308 634 %of Total Sales 75% 8% 17% EBITDA 377 23 27 % of Total EBITDA 88% 6% 6% EBITDA Margin 1
Slide 10: Key Capabilities
ULL Key Capabilities ‘Ferreycorp
Slide 11: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL SALES BY LINE OF BUSINESS • Resilient business model. US$ MM US$ 2,000 1.9Bn US$ 1,800 1.7Bn US$ • Spare parts and services support business. 1.6Bn US$ 1,600 US$ 1.4Bn 1.4Bn 1,400 US$ • Diversification strategy through business US$ 1,200 1.11Bn 1.15Bn lines, presence in di
Slide 12: Operational Results
OPERATIONAL RESULTS -5.9% Million soles (S/ mm) 3,125 -5.49% 1600 1,553 3000 2,752 1,461 514 2,558 1400 307 2500 466 2,166 355 568 515 2,047 1200 -12.0% 2000 667 359 438 1000 472 587 444 1500 1,088 564 800 MACHINERY 614 533 500 1000 1,045 600 469 1,074 704 104 480 642 400 100 121 555 500 955 147 178
Slide 13: Sales by Group of Companies
SALES BY GROUP OF COMPANIES Million Soles (S/ mm) CAT dealers and other businesses in CA • Caterpillar dealers and allied brands in Peru (76%) -7.2% +20% Sales in spare parts and services (66% sales of this group) +33% Sales in machinery and equipment no GM: sale 332 140.0% contractors medium region
Slide 14: 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, Huancayo, Piura Arequipa, Cusco e Ilo. 3 offices in Cerro de Pasco, Bagua Andahuaylas and Ayacucho.
Slide 15: 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 890,000 m2 170+ US$120M 365 DÍAS TO SERVE OUR CUSTOMERS POINTS OF CONTACT INVENTORY OF PARTS 24x7 OPERATIONS • 50+ warehouses, several located in remote locat
Slide 16: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Heavy construction Open pit mining LIUGONG WIRTGEN CASE BOMAG JCB SEM EPIROC HITACHI 2% DOOSAN 1% 1% 0% 2% 0% 4% 2% HAMM 2% OTROS 2% 2% P&H HYUNDAI ATLAS COPCO5% 4% 4% JOHN DEERE 6% CATERPILLAR 49% CATERPILLAR VOLVO KOMATSU 54% 11% 31% In units KOMATSU Rolling 12 mon
Slide 17: Mining Investment Evolution
MINING INVESTMENT EVOLUTION CATERPILLAR EQUIPMENT FOR MINING Mining Investment US$ Billion $10 617 Units 592 600 563 515 $8 482 500 416 $6 376 400 360 323 281 300 249 $4 234 215 192 165 166 173 200 131 $2 98 100 57 7 16 16 $0 0 2000 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 18: Mining Investment
MINING INVESTMENT MINING INVESTMENT FORECAST (US$ billion) PROJECTS PORTFOLIO 10,0 INVESTMENT START PROJECT LOCATION (US$ MM) CONSTRUCTION 9,0 8,0 7,0 Amp. Toromocho Junín 1,300 2T2018 (Chinalco) 6,0 Quellaveco 5,0 Moquegua 5,300 3T2018 (Anglo American y Mitsubishi) 4,0 Mina Justa Ica 1,600 3T2018 (
Slide 19: Mining Projects Portfolio US$59 Billion
MINING PROJECTS PORTFOLIO US$ 59 BILLION Pre feasibility (46.5%) Feasibility (29.3%) Detail Engineering (19.7%) Construction (4.6%) US$27 BILLION US$17 BILLION US$12 BILLION US$3 BILLION • Anubia • Pachapaqui expansion • Ariana • Toquepala expansion • Trapiche • Toromocho expansion • Corani • Marcon
Slide 20: Heavy Construction Industry Evolution
500 1000 1500 2500 0 2000 Unidades Oct-12 2170 Nov-12 2234 Dic-12 2215 Ene-13 2229 Feb-13 2220 Mar-13 2148 Abr-13 2118 May-13 2080 Jun-13 2051 Jul-13 1989 Ago-13 1934 Set-13 1936 Oct-13 1943 Nov-13 1862 Dic-13 1832 Ene-14 1785 Feb-14 1781 Mar-14 1743 Abr-14 1739 May-14 1641 Jun-14 1599 Jul-14 1569 A
Slide 21: Infrastructure Public Investment
INFRASTRUCTURE Portafolio Principales Proyectos de Inv. Pública por licitar PUBLIC INVESTMENT Proyecto Región Inversión (S/ MM) Mejoramiento y ampliación servicios de salud Alto Inclan Arequipa 70 Construcción puente comuneros entre Av. Daniel Alcides Carrión y Ca. Max Hongler Junín 143 Public Inves
Slide 22: Main Projects Private Investment
MAIN PROJECTS PRIVATE INVESTMENT Investment ProInversión: Projects to be awarded Project Location Stage of Project (US$ MM) Hydrocarbons Investment Date to be Planta petroquímica 1,500 Ica EIA presentado Sector Project Location (US$ MM) awarded Plantas petroquímicas de nitrato de 1,100 Ica EIA aprob
Slide 23: Market Conditions
MARKET CONDITIONS 2019 Investment by component GDP (Var. %) 6% 5.70% Mainly driven by 5 agroindustry 4% 3.2% Diversified 2.60% 2.70% 2.30% 2.30% GDP Proy 2018: 4% Concessioned: +11% 2% Public investment: -8% GDP 2017: 2.5% -4.5 Affected by regional elections Infrastructure 0% 1Q'17 2Q'17 3Q'17 4Q'17
Slide 24: Financial Performance
ULLAL Financial Performance ‘Ferreycorp
Slide 25: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) SALES AND GROSS MARGIN SALES AND ADM EXPENSES 5,333 +3.7% 90.0% 100.0% 4,856 4,843 80.0% 90.0% 80.0% 3,637 3,772 70.0% +6.4% 70.0% 60.0% 60.0% 50.0% 820 622 50.0% 797 808 585 40.0% 40.0% 30.0% 30.0% N 20.0% 20.0% 24.2% 24.3% 24.1% 23.7% 24.4% 10.0% 15.4% 16.4%
Slide 26: Financial Results: Net Income and Net Margin
FINANCIAL RESULTS Millones de soles (S/ mm) NET INCOME AND NET MARGIN NET INCOME YTD’18 -19.1% 6.0 7.0 200 -19.1% 40.3 40.00% 266 0.4 2.2 1.6 35.00% 230 212 150 N 30.00% 171 25.00% 161 100 211.5 20.00% 171.2 15.00% 50 10.00% 5.00% 3.0% 4.7% 5.5% 5.8% 4.5% 0 0.00% YTD'17 Δ EBITDA Δ Gasto Δ Dif en Δ D
Slide 27: Investment in Assets
INVESTMENT IN ASSETS Million soles (S/ mm) ACCOUNTS RECEIVABLE EVOLUTION INVENTORY EVOLUTION -6.7% +36% 1,193 1,112 1,709 1,200 1,125 1,109 94 1,600 1,393 91 1,005 45 80 32 1,379 1,000 48 1,400 1,233 1,261 70 92 674 800 1,200 104 92 1,000 478 548 600 468 519 1,080 1,099 1,080 800 957 1,029 400 600 4
Slide 28: Fixed Assets and Cash Cycle
FIXED ASSETS AND CASH CYCLE Million dollars (US$ mm) CAPEX CASH CYCLE 152 156 148 145 145 144 148 39 30 6 143 29 3 -5 136 13 127 128 126 129 128 19 5 5 -1.4 28 27 9 17 17 16 70 77 70 71 -1 -1 -3 73 71 71 -11 -9 54 54 55 59 57 -11 -14 53 51 -27 -10 -21 -31 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 20
Slide 29: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) DEBT BY CURRENCY 6.5% 1.2% 0.1% DIVERSIFIED FUNDING BASE Soles Quetzales 3.20 Pesos Chilenos 2.67 2.86 2.73 800 Dolares 700 589 0.00 92.2% 600 521 502 559 93 65 500 53 75 -5.00 400 100 161 100 295 -10.00 300 DEBT BY RATE 200 394 307 327 -15.00 100
Slide 30: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) AVG COST OF DEBT 4.65% 4.12% DEBT MATURITY 3.67% 276 3.31% 2015 2016 2017 YTD'18 150 FINANCIAL EXPENSES 72 Million soles (S/ mm) 8.0% 37 140 130 125 24 120 106 -12% 7.0% 1 110 6.0% 100 90 85 5.0% 2018 2019 2020 2021 2022 2023 80 58 70 51 4.0% 60 5
Slide 31: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market
Slide 32: Ferreycorp in the Capital Market
1.5 1.7 2.1 2.3 2.5 2.7 1.9 2/01/2017 16/01/2017 30/01/2017 13/02/2017 27/02/2017 13/03/2017 27/03/2017 10/04/2017 24/04/2017 8/05/2017 22/05/2017 5/06/2017 19/06/2017 3/07/2017 17/07/2017 31/07/2017 32% 14/08/2017 28/08/2017 extranjeros 11/09/2017 Inversionsitas FERREYCORP 25/09/2017 9/10/2017 23/1
Slide 33: 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 34: Corporate Governance and Sustainability
Corporate Governance and Sustainability
Slide 35: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS Standard Environmental Management System based Ferreycorp Program for Professional Development - on the ISO 14001 standard Ferreycorp Association Comprehensive Policy on Health, Safety and the Community Heavy Equipment Operators Club Environment Environment Thin
Slide 36: 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 launch in 2008. Board of Directors: • The last General Shareholders Annual Meeting
Slide 37: -Ferreycorp
-Ferreycorp