Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Alicorp — Q4 2020 Earnings Presentation
46 slides from Alicorp Saa's earnings presentation, Feb 16, 2021
Slide 1: Earnings Call Fourth Quarter 2020
EARNINGS CALL FOURTH QUARTER 2020 February 16th, 2021
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 Q4 ’20 AND FY 2020 CONSOLIDATED OPERATING RESULTS 1 Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS 2 SOLID LIQUIDITY AND STRONG BALANCE SHEET 3 OUR VIEW FOR 2021 4 APPENDIX 5
Slide 4: Consolidated Operating Results
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS
Slide 5: Consolidated Operating Results: Key Indicators
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Key Indicators SALES GROWTH (PEN MM) EBITDA (PEN MM) ENABLERS 9,872 10,132 1,277 1,134 DIGITAL & ANALYTICS 6,629 6,949 8,289 903 1,022 802 4% GROWTH 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 STRATEGIC PILLARS B2C & B2B E-COMMERCE SG&A/SALES 1
Slide 6: 2020 Was a Challenging Year for the Global Economy
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS 2020 Economic Situation in Latin America Region GDP CURRENCY FX GROWTH (YoY%) DEVALUATION (YoY%) 2.7 -0.2 3.32 -9.0 3.61 -11.6 2020 WAS A PERU CHALLENGING YEAR FOR 3.2 THE GLOBAL ECONOMY -8 DUE TO THE COVID-19 BOLIVIA PANDEMIC -7.1 0.3 STRICT LOCKDOW
Slide 7: Consolidated Revenue Grew 8% YoY in Q4
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Consolidated Revenue – Q4 ’20 vs. Q4 ‘19 CONSOLIDATED REVENUE GREW 8% YOY IN Q4, DUE Q4 PERFORMANCE SUMMARY – REVENUE GROWTH (YoY %) AND GROSS MARGIN TO STRONG RESULTS OF +7.6% OUR CG PERU, BOLIVIA 2,788 AND ECUADOR AND 2,592 239 -1.4% 469 2,353 CRUS
Slide 8: Consolidated Revenue Grew 3% in 2020
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Consolidated Revenue – FY 2020 vs. FY 2019 CONSOLIDATED REVENUE FY 2020 PERFORMANCE SUMMARY – REVENUE GROWTH (YoY %) GREW 3% IN 2020, ON THE BACK OF SOLID +2.6% GROWTH IN THE 9,872 -0.1% 10,132 CONSUMER GOODS 1,021 8,851 221 129 152 256 8,839 1,293 B
Slide 9: Consolidated EBITDA Decreased 21% YoY in the Quarter
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q4 ’20 vs. Q4 ’19 CONSOLIDATED Q4 PERFORMANCE SUMMARY – EBITDA GROWTH (YoY %) AND EBITDA MARGIN Q4 2020 IMPACTS EBITDA DECREASED -21.2% 21% YOY IN THE 358 -27.7% QUARTER, DUE TO 25 333 3 • Initial impact of 42 increase in raw TH
Slide 10: Consolidated EBITDA for FY 2020 Decreased 11% YoY
Q4 ‘20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – FY 2020 vs. FY 2019 CONSOLIDATED FY 2020 PERFORMANCE SUMMARY – EBITDA GROWTH (YoY %) -11.2% COVID-RELATED COGS AND EBITDA FOR FY 2020 EXPENSES -16.7% DECREASED 11% YOY 1,277 18 1,259 36 (PEN million) WHILE EBITDA 138 14 1,134 S/
Slide 11: Net Income Decreased 36% YoY in the Quarter
Q4 ’20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Consolidated Net Income – Q4 ‘20 vs. Q4 ’19 and FY 2020 vs. FY 2019 Q4 PERFORMANCE SUMMARY – NET INCOME GROWTH FY PERFORMANCE SUMMARY – NET INCOME GROWTH (YoY %) AND NET MARGIN (YoY %) AND NET MARGIN NET INCOME -36.1% -31.3% DECREASED 36% YOY 123 481
Slide 12: Alicorp's Corporate Strategy
Q4 ’20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Alicorp’s Corporate Strategy ENABLERS Create and strengthen new businesses and platforms through innovation as well as continuous exploration of inorganic opportunities GROWTH STRATEGIC PILLARS Instill a culture of Efficiency allowing us to continuou
Slide 13: Update on Fino and Sao's Integration
Q4 ’20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Update on Fino and Sao’s integration • Consumer Goods: Results have outperformed our business case. Accelerated commercial and distribution initiatives, portfolio diversification and effective execution contributed to market share increases in key ca
Slide 14: Update on Intradevco's Integration
Q4 ’20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Update on Intradevco’s1 integration Results have outperformed our business case • Consumer Goods Peru: Horizontal growth strategy in order to consolidate our Household Care and Personal Care platforms through commercial and distribution initiatives t
Slide 15: Migration to SAP S4Hana
Q4 ’20 AND FY 2020 CONSOLIDATED OPERATING RESULTS Our migration to SAP S4Hanna IN 2018, WE S4H GO LIVE ROADMAP (Capex+Opex) / Sales (%) HIGHLIGHTS EMBARKED ON A • Mostly-remote migration in Peru from SAP R3 to S4H MULTIANNUAL ERP 2017 Business 2018 Warehouse 2019 Transportation 2020 Demand 2021 Go l
Slide 16: Operating Results by Business
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS
Slide 17: Consumer Goods Peru: Update on Market Dynamics
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics ALICORP OUTPERFORMED PRIVATE CONSUMPTION WE CONTINUE OUR PATH TO RECOVER MARKET SHARE IN MOST WE CONTINUE TO CATEGORIES RECOVER MARKET 12.5 12.0 10.7 Shares Of Market - Volume (% change) 6.6 -1.7 -2.0 SHA
Slide 18: Consumer Goods Peru: Q4 and FY 2020 Performance
Q4 ’20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q4 and FY 2020 Performance REVENUE & GROSS MARGIN (PEN Million) 55 +6.6% SOLID GROWTH IN 2020 DESPITE PRODUCTION 3,549 50 3,328 +10.7% 954 45 DISRUPTIONS DURING 862 40 Q2. 34.1% 32.8% 35 31.6% EBITDA MARGIN 31.1% 30 Q4 ’19 Q4 ’20
Slide 19: B2B: Update on Market Dynamics
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics THE B2B INDUSTRY IS RECOVERING ALICORP OUTPERFORMED MARKET GROWTH Restaurant GDP and Food Service Revenue B2B CUSTOMERS RECOVERING Number of active clients (thousands) FROM THE IMPACTS OF THE growth (%) PANDEMIC, WITH AL
Slide 20: B2B: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS B2B: Q4 and FY 2020 Performance REVENUE & GROSS MARGIN (PEN Million) 1,800 -7.8% 80 1,647 1,600 1,518 60 -7.0% PROFITABILITY STILL IMPACTED BY 435 405 40 400 22.1% 21.5% 200 15.1% 16.8% 20 RESTRICTIONS ON FOOD SERVICE AND A 0 Q4 ’19 Q4 ’20 FY 2019 FY
Slide 21: Consumer Goods International: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q4 and FY 2020 Performance ANOTHER SOLID REVENUE & GROSS MARGIN (PEN Million) +8.9% 140 2,000 1,858 QUARTER CLOSES A 120 1,800 +3.9% 1,706 100 POSITIVE 2020 467 485 80 FUELED BY MARKET 400 60 SHARE GAINS ON ALL 200 25.3%
Slide 22: Growth-Focused Andean Operations
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q4 and FY 2020 Performance OUR GROWTH- GROWTH-FOCUSED ANDEAN OPERATIONS Revenue & Gross Margin (PEN Million) FOCUSED ANDEAN BOLIVIA ECUADOR +17.7% +18.5% OPERATIONS 695 200 166 500 CONTINUE TO DELIVER 700 +19.9% 200 150 1
Slide 23: Aquafeed: Update on Market Dynamics
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics SHRIMP SALMON Shrimp Exports in Ecuador (MT K and US$ MM) Salmon Exports in Chile (MT K and US$ MM) THE AQUACULTURE +12% +5% -2% -15% INDUSTRY HAS BEEN 957 1,001 -17% 1,586 -8% -14% 935 944 908 925 1,351 -22% 813 1,
Slide 24: Aquafeed: Q4 and FY 2020 Performance
Q4 ’20 AND FY 2020 OPERATING RESULTS BY BUSINESS Aquafeed: Q4 and FY 2020 Performance REVENUE & GROSS MARGIN SHRIMP FEED TIERING DOWN (USD Million) -15.7% Breakdown of volume by tier 650 THE IMPACT OF 100 COVID-19 ON 600 6% -24.8% 80 16% 548 550 SHRIMP AND 150 175 132 60 71% SALMON PRICES 100 22.2%
Slide 25: Shrimp Industry with Strong Fundamentals
Q4 ’20 AND FY 2020 OPERATING RESULTS BY BUSINESS Aquaculture: Shrimp industry with strong fundamentals THE ECUADORIAN SHRIMP INDUSTRY OUR STRATEGY IN RESPONSE TO NEW MARKET SOLID SHRIMP MARKET SHOWS SOLID FUNDAMENTALS CONDITIONS AND PRODUCTION TRENDS GROWTH PERSPECTIVE Innovating with ad-hoc solutio
Slide 26: Crushing: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Crushing: Q4 and FY 2020 Performance VOLUME SOLD REVENUE (Thousands of MT) (USD million) +40.2% +76.6% VOLUME AND 301 160 REVENUE GROWING 30 ON THE BACK OF 54 +31% +52% 215 90 41 INCREASING SALES 19 246 130 173 +42% +83% 71 Q4 ’19 Q4 ’20 Q4 ’19 Q4 ’20
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 INDEBTEDNESS EVOLUTION CREDIT RATING AS OF Q4 ‘20 Net Debt / EBITDA1,2 Global AMIDST (Excluding Crushing Business Raw Material Inventory) CHALLENGING CONDITIONS IN THE CONTEXT OF THE BBB- / Stable = BBB / Stable = Baa3 / Stable = CO
Slide 29: Liquidity and Working Capital Evolution
SOLID LIQUIDITY AND STRONG BALANCE SHEET Liquidity and working capital evolution LIQUIDITY WORKING CAPITAL2 (Days) TOTAL CASH 3 Accounts Receivable Inventories Accounts Payable S/ 571 million 112.0 114.0 107.0 DEBT COVERAGE 1 101.0 96.3 1.24x over next 12 months 0.94x over next 24 months 91.0 Access
Slide 30: Our View for 2021
alicorp R VIEW FOR 2021
Slide 31: Key Trends for 2021
OUR VIEW FOR 2021 Key Trends for 2021 • COVID still impacting our business • Governments continue to balance opening the economies COVID-related impacts with restrictions to protect public health • We have learned how to operate in this context and are in a much better position to tackle any further
Slide 32: Appendix
APPENDIX
Slide 33: CGI: Q4 2020 and FY 2020 Performance by Geography
APPENDIX CGI: Q4 2020 AND FY 2020 PERFORMANCE BY GEOGRAPHY
Slide 34: Consumer Goods Bolivia: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q4 and FY 2020 Performance REVENUE & GROSS MARGIN (PEN Million) +17.7% REMARKABLE TOP 695 700 225 200 LINE GROWTH DUE 650 600 +19.9% 590 175 TO MARKET SHARE 200 194 150 125 GAINS IN 150 162 100 DETERGENTS, PASTA 75 100 25.9% 27
Slide 35: Consumer Goods Ecuador: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q4 and FY 2020 Performance SOLID REVENUE & GROSS MARGIN (PEN Million) +18.5% 180 160 166 140 PERFORMANCE 160 120 SUPPORTED BY STRONG RESULTS IN +23.2% 140 140 100 80 OUR PASTA, SAUCES, 46 38 40 60 20 40 COOKIES & 35.8% 36.5% 35
Slide 36: Consumer Goods Argentina: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods Argentina: Q4 and FY 2020 Performance PRICE CONTROLS REVENUE & GROSS MARGIN +14.3% (PEN Million) 160 450 RESULTED IN AN 18% 439 140 400 -18.3% 384 120 DECLINE IN SALES, 122 100 DUE TO DEVALUATION 80 OF THE PESO. 99 100 60 50 19.1% 17.7%
Slide 37: Consumer Goods Brazil: Q4 and FY 2020 Performance
Q4 ‘20 AND FY 2020 OPERATING RESULTS BY BUSINESS Consumer Goods Brazil: Q4 and FY 2020 Performance REVENUE & GROSS MARGIN (PEN Million) 400 -12.5% 160 379 140 350 332 120 BRAZIL CONTINUES -13.4% 100 100 97 84 80 TO BE IMPACTED BY 60 HIGH LEVELS OF 29.4% DEVALUATION. IN BRL 50 24.9% 27.6% 40 20 0 29.
Slide 38: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 39: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 19 Sep 20 Dic 20 DEBT1 S/ 4,191mm S/ 4,255mm S/ 3,961mm 8.5% 9.7% 10.2% 11.7% 6.5% 5.1% International Bonds 12.3% 8.1% By Source1 Local Bonds 12.4% Working Capital Debt LT Bank Debt Leases (IFRS 16) 29.9% 43.6% 28.1% 43.4% 23.8% 46.7% 16.1% 13.6% 15.8% 0.7% 1.0% 0.9
Slide 40: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO (PEN Million) 1,130 1,113 1,180 1,329 1,329 1,314 1,295 1,182 Alicorp’s financial guidelines aim to: 88 126 147 219 238 236 239 240 12.89x 1. Maintain investment grade rating 2. Reduce financial expenses 8.83x 8.03x 6.06x 3. Shif
Slide 41: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX3 (PEN Million) (PEN Million) PP&E Intangibles PP&E+Intagibles/Sales • The increase in payables for S/ 468 million is mainly explained by pre- 200 7.0 % export contracts in our crushing business. 5.9% 180 6.0 % 160 5.0 % 243 468 3.9
Slide 42: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS FOR CASH FLOW EVOLUTION (PEN Million) Cash Flow from Operations Cash Flow used in Investing Cash Flow used in Financing S/ 1,072 S/ -3722 S/ -969 2,400 1,461 1,900 271 118 1,400 372 3 9(1) 2,030 1,912 3 900 496 1,540 18(1) 1,044 296 400 840 840 4 748 177 571
Slide 43: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1 OPERATING & FREE CASH FLOW CONVERSION1 (PEN Million) 140% 120% 91% 100% 85% FY 2019 FY 2020 80% 60% 40% 67% 59% 20% 0% 3 1,087 1,072 2019 2020 2 870 5 5 718 2 Operating Cash Flow / EBITDA Free Cash Flow / EBITDA 2 OPERATING & FREE CASH FLOW YI
Slide 44: Q4 2020 Milestones
APPENDIX Q4 2020 MILESTONES
Slide 45: Q4 2020 Milestones
APPENDIX Q4 2020 Milestones RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 22 products were launched as part of our innovation strategy, being the most remarkable: ALICORP WAS RECOGNIZED AS THE DON VITTORIO LASAGNA ALACENA SAUCES INTRODUCED TO COMPANY WITH THE BEST THE AMERICAN MARKET CORPORATE REPUTAT
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