Slide 1: Earnings Call Fourth Quarter 2022
EARNINGS CALL FOURTH QUARTER 2022 February 16th, 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 Q4 '22 HIGHLIGHTS 1 Q4 '22 CONSOLIDATED OPERATING RESULTS 2 Q4 '22 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2023 5 APPENDIX 6
Slide 4: Q4 '22 Highlights
Q4 ’22 HIGHLIGHTS
Slide 5: Relevant Events
Q4 '22 HIGHLIGHTS Relevant Events DINA BOLUARTE TOOK OFFICE AS NEW CONSTITUTIONAL PRESIDENT OF PERU AFTER PEDRO CASTILLO’S FAILED ATTEMPT TO DISSOLVE THE CONGRESS SEVERAL PROTESTS TOOK PLACE OVER THE LAST WEEKS, DEMANDING THE RESIGNATION OF PRESIDENT BOLUARTE AND EARLY GENERAL ELECTIONS ROADS HAVE B
Slide 6: Continuous pressure on margins and cost structure during 2022
Q4 '22 HIGHLIGHTS Continuous pressure on our margins and cost structure during 2022 COGS PER MT - Ex. Crushing GROSS PROFIT PER MT - Ex. Crushing In PEN In PEN COGS PER METRIC TON +20% +22% EX. THE CRUSHING 3,626 3,788 4,151 4,387 954 808 852 830 918 978 920 BUSINESS CONTINUES 3,421 3,655 757 2,827
Slide 7: FY 2022 Results: Key Indicators
FY 2022 RESULTS Key Indicators We continue to develop our Revenue (PEN MM) EBITDA (PEN MM) innovation and digital +56% +27% initiatives: ALICORP DELIVERS 2017-2022 CAGR 15,406 2017-2022 CAGR 1,622 REMARKABLE RESULTS 17% 12,216 12% 1,277 1,317 → Amarás Almost 10% share of volume 1,119 DESPITE THE 6,9
Slide 8: Macroeconomic growth still faces important challenges
HIGHLIGHTS Macroeconomic growth still faces important challenges1 GDP Growth (YoY%) Private Consumption (YoY%) WE STILL SEE A 13.6 11.7 10.2 CHALLENGING OUTLOOK IN OUR 6.1 5.3 THREE MAIN 4.2 4.0 4.2 4.2 3.4 3.3 3.4 2.8 3.1 2.8 2.5 2.8 2.2 GEOGRAPHIES AS HIGH INFLATION RATES AND Peru Bolivia Ecuador
Slide 9: Q4 '22 Consolidated Operating Results
Q4 ’22 CONSOLIDATED OPERATING RESULTS
Slide 10: Consolidated Revenue Q4 '22 vs Q4 '21
Q4 '22 CONSOLIDATED OPERATING RESULTS Consolidated REVENUE – Q4 '22 vs. Q4 '21 Q4 PERFORMANCE SUMMARY – REVENUE PEN million +26.1% STRONG REVENUE GROWTH MAINLY 15,406 EXPLAINED BY THE SOLID PERFORMANCE OF OUR AQUAFEED AND +16.4% 12,216 CONSUMER GOODS PERU 211 10 72 315 21 4,164 3,577 UNITS GROSS PRO
Slide 11: Consolidated EBITDA Q4 '22 vs Q4 '21
Q4 '22 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q4 '22 vs. Q4 ‘21 Q4 PERFORMANCE SUMMARY – EBITDA PEN million +23.1% CONSOLIDATED EBITDA GREW YoY EXPLAINED 1,622 BY OUR AQUAFEED AND CONSUMER GOODS PERU UNITS +13.0% 1,317 RESULTS REFLECT 51 22 10 49 53 26 352 311 HIGHER GROSS PROFIT AND A
Slide 12: Consolidated Net Income Q4 '22 vs Q4 '21
Q4 '22 CONSOLIDATED OPERATING RESULTS Consolidated NET INCOME – Q4 '22 vs. Q4 '21 Q4 PERFORMANCE SUMMARY – NET INCOME NET INCOME FROM PEN million CONTINUING OPERATIONS +562MM INCREASE 19.4% YoY IN +36.0% Q4 ’22 DRIVEN BY HIGHER 554 OPERATING PROFIT 533 INCREASE IN +408MM CONSOLIDATED NET +19.4% 407
Slide 13: Q4 '22 Operating Results by Business
Q4 ‘22 OPERATING RESULTS BY BUSINESS
Slide 14: Consumer Goods Peru: Update on Market Dynamics
Q4 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics ALICORP’S REVENUE CONTINUES ITS RECOVERY CHANNEL MIX: Traditional channel gains share vs FY ‘21 In % 23.5 22.4 Q4 ‘21 Q4 ‘22 FY ‘21 FY ‘22 CONSUMER GOODS 16.3 Traditional 75% 75% 74% 77% PERU MAINTAINS 11.8 Total 8.3
Slide 15: Amarás, unique as your hair and Peru
Q4 ’22 STRATEGIC HIGHLIGHTS 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 ha
Slide 16: Consumer Goods Peru: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q4 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million Q4 ‘22 REVENUE 18% 17% INCREASED DUE TO 3,716 4,372 466 545 PRICING ACTIONS IN ADDITION TO 22% +2.0x DESIGN-TO-VALUE 940 1,151 23.2% 26.6% 24.7% 50 101 12.6%
Slide 17: Consumer Goods International: Market Dynamics
Q4 '22 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics BOLIVIA: WE Share of volume Share of value SO ’22 vs SO ’21 SO ’22 vs SO ’21 CONTINUE GROWING ▪ Persistent growth in Home Care due to volume increases (+26% OUR HOME CARE YoY) and pricing initiatives driving share gai
Slide 18: Consumer Goods Bolivia: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q4 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN REVENUE INCREASED PEN million +4% PEN million -46% DUE TO HIGHER HOME 718 745 Bolivia ex. Edible Oils Edible Oils Bolivia 39 CARE VOLUME, AND 21 -71% PRICING INITIATIVES +0.1% 10
Slide 19: Consumer Goods Ecuador: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q4 Performance REVENUE & GROSS MARGIN PEN million +20% 219 183 REVENUE GROWTH +33% DRIVEN MAINLY BY 66 VOLUME SOLD GROWTH 31.3% 25.3% 50 21.3% ON A QUARTER AND FY 25.2% BASIS Q4 ’21 Q4 ’22 FY ’21 FY ’22 EBITDA & EBITDA MARGIN PEN million E
Slide 20: B2B: Update on Market Dynamics
Q4 '22 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics OUT-OF-HOME CONSUMERS ACTIVE CLIENTS EVOLUTION Index 100=2019 In thousands Number of consumers1 28 91 26 24 WE MANAGE TO DEFEND 75 70 69 76 19 20 22 OUR MARKET SHARE 59 49 44 42 BACKED ON OUR 18 DISTRIBUTION 4 7 FOOTPRINT, I II III
Slide 21: B2B: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS B2B: Q4 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million +24% +16% 2,690 235 2,169 202 GROSS PROFIT +12% -15% INCREASED DRIVEN BY 685 64 54 612 EFFICIENCY 16.1% 14.8% 14.4% 9.3% 8.7% 15.4% 53* PROGRAMS Q4 ’21 Q4 ’22 FY ’21 FY ’22
Slide 22: Aquafeed: Update on Market Dynamics
Q4 '22 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth SHRIMP SALMON SHRIMP: LESS EXPORT SHRIMP EXPORTS – ECUADOR SALMON EXPORTS – CHILE VOLUME IN Q4 ’22 AS +81% +43% +29% -2% +37% +35% +32% +29% CONSECUENCE OF 2,500 1,747 1,794 2,500 2,000 1,607 1,567 1,644 1,545 1,54
Slide 23: Aquafeed: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS Aquafeed: Q4 Performance REVENUE & GROSS MARGIN USD million +41% 1,017 SOLID REVENUE 719 GROWTH YoY DUE TO +43% INCREASE IN VOLUME 204 292 14.8% IN BOTH SHRIMP AND 15.4% 13.6% 14.5% SALMON BUSINESSES Q4 ’21 Q4 ’22 FY ’21 FY ’22 GROSS PROFIT PER TON EBITDA & EBITD
Slide 24: Crushing: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS Crushing: Q4 Performance VOLUME SOLD VOLUME SOLD Thousands of MT REVENUE USD million DECREASED YoY DUE TO -1% -15% LOGISTIC DISRUPTIONS 431 275 271 THAT AFFECTED OUR 84 369 59 -31% 60 55 -8% DISTRIBUTION CHANNELS, DESPITE THAT, 347 310 -11% 215 216 +1% REVENUE RE
Slide 25: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 26: Leverage and credit rating
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating MATURITY PROFILE AS OF DECEMBER 20223 PEN million 1,165 TOTAL CASH 940 877 WE PROACTIVELY 756 814 857 143 498 S/ 940 million 151 151 504 233 MANAGED OUR 443 606 656 625 161 433 266 248 LIABILITIES AND DEBT COVERAGE1,2 Total Cash 1 y
Slide 27: Leverage
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage INDEBTEDNESS EVOLUTION Net Debt / EBITDA1,2 PEN million 8,000 3.3x 2 4 7,000 3.0x 2.6x 2.5x 2.5x 3 6,000 DUE TO OUR SOLID 5,000 4,000 4,340 3,641 4,590 3,974 4,033 2 EBITDA PERFORMANCE, 3,000 1 2,000 ALONG WITH OUR CASH 1,000 - GENERATION, AND - -1 Q
Slide 28: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 29: Our View for 2023: Guidance
OUR VIEW FOR 2023 Guidance REVENUE EBITDA CAPEX LEVERAGE MID SINGLE MAINLY STABLE, APPROXIMATELY 2.4X NET DEBT/EBITDA DIGIT GROWTH SLIGHTLY ABOVE USD 76 MM 2022 LEVELS EXCLUDING AQUAFEED USD 145 MM INCLUDING AQUAFEED 29
Slide 30: Earnings Call Fourth Quarter 2022
EARNINGS CALL FOURTH QUARTER 2022 February 16th, 2023
Slide 31: Appendix
APPENDIX
Slide 32: Bolivia sum of the parts
Q4 '22 OPERATING RESULTS BY BUSINESS Bolivia sum of the parts VOLUME SOLD REVENUE Thousands of MT USD million -13.7% -0.5% Q4 ’22 RESULTS ARE 460 84 398 329 60 326 55 -8% DRIVEN BY THE LOWER 59 -31% VOLUME SOLD OF OUR 347 -11% 215 216 +1% CRUSHING UNIT 310 EXPLAINED BY 29 29 -1.4% 54 55 +3% LOGISTIC
Slide 33: CG: Q4 '22 Performance
APPENDIX CG: Q4 '22 PERFORMANCE
Slide 34: Consumer Goods: Q4 Performance
Q4 '22 OPERATING RESULTS BY BUSINESS Consumer Goods: Q4 Performance REVENUE & GROSS MARGIN PEN million +15% 5,571 4,843 INCREASE IN REVENUE 17% DRIVEN BY PRICE 1,274 1,494 25.4% 23.2% ACTIONS ACROSS ALL 20.3% 20.8% GEOGRAPHIES Q4 ’21 Q4 ’22 FY ’21 FY ’22 EBITDA INCREASES EBITDA & EBITDA MARGIN PEN m
Slide 35: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 36: Working capital: Cash conversion cycle
SOLID LIQUIDITY AND STRONG BALANCE SHEET Working capital – Cash conversion cycle (CCC) WORKING CAPITAL1,2 Days WE WERE ABLE TO IMPROVE OUR CASH 124 124 124 127 130 CONVERSION CYCLE BY Accounts Payable 3 TWO DAYS COMPARED TO THE LAST QUARTER 107 107 107 109 110 Inventories AND FIVE DAYS OVER THE LAST
Slide 37: Debt Breakdown
APPENDIX Debt Breakdown TOTAL DEBT1 DEC ‘20 DEC ‘21 DEC ‘22 S/ 3,961MM S/ 5,245MM S/ 4,973MM 10.2% 30.7% 32.9% 5.1% 7.5% International Bonds 7.2% 8.1% By Source1 Local Bonds Working Capital Debt 46.7% 5.3% 2.9% LT Bank Debt 34.3% 32.7% Leases (IFRS 16) 29.9% 22.2% 24.3% 15.8% 15.0% 0.9% 22.0% 0.2% B
Slide 38: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO PEN million 1,317 1,381 1,518 1,581 1,622 Alicorp’s financial guidelines aim at: 305 321 321 318 317 1. Maintain investment grade rating 2. Control financial expenses 4.72x 4.97x 5.12x 4.32x 4.30x 3. Match the currency of our deb
Slide 39: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX2 PEN million PEN million 300 7.0 % ▪ Inventory growth of S/ 518 million was mainly explained by higher commodity prices overall 250 6.0 % ▪ Payables increase of S/ 972 million was principally explained by inflation over our inputs
Slide 40: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS OF CASH FLOW EVOLUTION PEN million Cash Flow from Operations Cash Flow used in Investing1 Cash Flow used in Financing S/ 1,722 S/ -262 S/ -1,425 3,500 2,099 3,000 2,500 223 154 262 2,000 260 1,500 353 2,781 2,627 2,365 1,000 2,105 1,752 812 500 905 905 940 94
Slide 41: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,5 OPERATING & FREE CASH FLOW CONVERSION1,5 PEN million 2 2020 2021 2022 140% 120% 106% 91% FY 2020 FY 2021 FY 2022 100% 80% 90% 1,722 60% 40% 1,460 40% 59% 20% 0% 0% 23% 1,072 4 4 718 Operating Cash Flow / EBITDA Free Cash Flow / EBITDA 522 30
Slide 42: Q4 '22 Milestones
APPENDIX Q4 '22 MILESTONES
Slide 43: Q4 '22 Milestones
APPENDIX Q4 ’22 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION BLANCA FLOR OPAL launched a new flour launched a new aimed at the traditional detergent Alfredo Pérez channel in Peru presentation in Gubbins, our CEO, Bolivia was considered among the Top 10 Thanks to the “Crecemos junto
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