Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Ferreycorp — Investor Presentation (September 2018)
29 slides from Ferreycorp Saa's investor presentation, September 2018
Slide 1: Corporate Presentation
Corporate Presentation September 2018
Slide 2: Company Overview
Company Overview
Slide 3: Highlights Ferreycorp
HIGHLIGHTS FERREYCORP • Established in Peru in 1922. • 95 years of business, 75 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 (Ago-2018) ~ $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: Ferreycorp at a Glance
FERREYCORP AT A GLANCE As of 2Q’18 Caterpillar dealers and allied Caterpillar dealers and other Other subsidiaries in Peru (S/. Millon) brands in Peru businesses in Central America and abroad Sales 1,865 206 432 % of Total Sales 75% 8% 17% EBITDA 246 17 19 % of Total EBITDA 87% 6% 7% EBITDA Margin 1
Slide 7: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business
Slide 8: Key Capabilities
ULL Key Capabilities ‘Ferreycorp
Slide 9: 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 10: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS
Slide 11: 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 12: 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$120M 365 DÍAS TO SERVE OUR CUSTOMERS POINTS OF CONTACT INVENTORY OF PARTS 24x7 OPERATIONS • 50+ warehouses, several located in remote locat
Slide 13: Innovation and Technology
INNOVATION AND TECHNOLOGY Value creation The journey: from peripherals to “mission critical” TBA Market specialist Challenge: To make the most out of the Integrated information different emerging technologies and apply it to value creation. Integrated services RFID, Big data, data mining, machine le
Slide 14: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS Standard Environmental Management System based Ferreycorp Program for Professional Development - on the ISO 14001 standard Ferreycorp Association Comprehensive Policy on Health, Safety and the Community Heavy Machinery Operators Club Environment Environment Thin
Slide 15: Corporate Standards: Strong Corporate Governance
CORPORATE STANDARDS STRONG CORPORATE GOVERNANCE • Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962. • Ferreycorp is included in the Corporate Governance Index of the Lima Stock Exchange since its inception in 2008. Board of Directors: • The last General Annual Meeting agreed to
Slide 16: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Heavy Construction Open pit mining JCB BOMAG LIUGONG Otros EPIROC HITACHI 2% 1% 1% 4% 2% 2% DOOSAN P&H 2% HAMM ATLAS COPCO 6% 4% 6% HYUNDAI 4% JOHN DEERE 6% CATERPILLAR 48% KOMATSU VOLVO CATERPILLAR 9% 25% 59% KOMATSU In units Rolling 12 months, 19% June 2018 US$ FOB
Slide 17: Financial Performance
ULLAL Financial Performance ‘Ferreycorp
Slide 18: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL VENTAS SALES POR BY LINE LÍNEA OFDE BUSINESS NEGOCIO • In a context of poor momentum in mining US$ MM investment and delayed infrastructure US$1.9Bn 2,000 projects 1,800 US$1.7Bn US$1.6Bn 1,600 US$1.4Bn US$1.4Bn • Resilient business model 1,400 1,200 • Stable product suppo
Slide 19: Operational Results
OPERATIONAL RESULTS Million de soles (S/ mm) -2.8% 3,125 -5.49% 3000 2,752 1400 514 2,558 2500 466 2,166 1200 568 515 2,047 -13.6% 1,021 992 2000 359 1000 667 438 203 587 800 234 1500 1,088 564 579 614 492 500 325 MACHINERY 1000 1,045 600 99 333 1,074 704 400 134 100 642 177 500 955 164 178 332 200
Slide 20: Sales by Group of Companies
SALES BY GROUP OF COMPANIES Million Soles (S/ mm) CAT dealers and other businesses in CA • CAT dealers and allied brands in Peru (75% of sales): -3% - spare parts and services: +15% (65% of sales of this group) - Cat mining equipment: -61% - delivery of mining equipment for US$40 140.00% million in
Slide 21: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Million soles (S/ mm) SALES AND GROSS MARGIN SALES AND ADM EXPENSES 5,333 90.0% 100.0% 4,856 4,843 80.0% 90.0% 80.0% +4.2% 70.0% 70.0% 60.0% +5.5% 60.0% 2,401 2,503 50.0% 50.0% 820 797 808 40.0% 406 40.0% 385 30.0% 30.0% N 20.0% 20.0% 24.2% 24.3% 24.1% 23.9% 24.0% 10.0
Slide 22: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) NET INCOME AND NET MARGIN NET INCOME YTD’18 200.0 180.0 -13.2% 160.0 7 140.0 40.00% 3 266 28 2 35.00% 120.0 1 2 230 N -13.2% 30.00% 100.0 25.00% 80.0 161 137 119 137 20.00% 60.0 119 15.00% 40.0 10.00% 20.0 5.00% 0.0 3.0% 4.7% 5.5% 5.7% 4.8% 0.00% YTD'17 Δ EBIT
Slide 23: Investment in Assets
INVESTMENT IN ASSETS Million soles (S/ mm) ACCOUNTS RECEIVABLES EVOLUTION INVENTORY EVOLUTION -3.1% +24% 1,173 1,136 1,567 1,200 1,125 1,109 1,600 70 34 1,379 1,393 89 1,005 45 80 1,400 1,000 70 1,233 92 1,261 48 1,200 104 112 471 800 389 444 1,000 382 431 600 800 1,080 1,029 1,103 1,102 957 600 400
Slide 24: Fixed Assets and Cash Cycle
FIXED ASSETS AND CASH CYCLE Million dollars (US$ mm) CAPEX CASH CYCLE 148 152 148 145 145 144 39 30 6 29 3 -5 136 -0.8 127 128 126 129 128 19 5 -3.3 6 28 27 9 17 14 14 70 77 70 71 -1 -1 73 71 -5 -11 59 -11 -20 -12 53 54 51 54 55 -27 -10 -21 -31 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2015 2016 2017 YTD'
Slide 25: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) DEBT BY CURRENCY 5.7% 1.0% DIVERSIFIED FUNDING BASE 0.1% Soles Quetzales Pesos Chilenos 2.67 2.86 2.73 3.00 800 Dolares 700 589 0.00 93.2% 600 521 502 539 93 500 53 63 -5.00 75 400 100 161 100 295 -10.00 300 DEBT BY RATE 200 327 376 -15.00 307 100
Slide 26: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) AVG COST OF DEBT 4.65% 4.12% DEBT MATURITY 283 3.35% 3.17% 2015 2016 2017 YTD'18 147 FINANCIAL EXPENSES 51 Million soles (S/ mm) 34 140 125 8.0% 23 130 7.0% 1 120 110 106 6.0% 100 85 2018 2019 2020 2021 2022 2023 90 5.0% 80 70 40 4.0% 60 32 • Refi
Slide 27: Ferreycorp in the Capital Market
FERREYCORP IN THE CAPITAL MARKET SHAREHOLDERS COMPOSITION AS OF JUNE 2018 Capital S/. 975,683,029 Foreign Nº of shares 975,683,029 investors Local pension funds Dividend Yield (div 0.1354654234) 5.4% 31% 35% Local investors 34% MAIN SHAREHOLDERS > 4% AS OF JUN 18 STOCK PERFORMANCE 2017-2018 (S/) Hol
Slide 28: 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 29: Ferreycorp
-Ferreycorp