Slide 1: Corporate Presentation
Corporate Presentation April 2019
Slide 2: Ferreycorp and Strategy
ATTTELLLLL Ferreycorp and Strategy Ferreycorp
Slide 3: Corporate Structure
CORPORATE STRUCTURE BVL: FERREYC1 Caterpillar dealers and allied Caterpillar dealers and other businesses in Other subsidiaries in Peru and abroad brands in Peru Central America Guatemala Chile, Colombia , Ecuador, Perú El Salvador Belice Nicaragua El Salvador, Honduras
Slide 4: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business
Slide 5: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS
Slide 6: Key Capabilities Creating Value
KEY CAPABILITIES CREATING VALUE 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 7: Diversification Strategy
DIVERSIFICATION STRATEGY 2018 Caterpillar dealers and allied Caterpillar dealers and other Other subsidiaries in Peru and (S/. Million) brands in Peru businesses in Central America abroad Sales 3,952 424 836 %of Total Sales 76% 8% 16% EBITDA 527 21 26 % of Total EBITDA 92% 4% 4% EBITDA Margin 13% 5%
Slide 8: Business Strengths
ULL Business Strengths ‘Ferreycorp
Slide 9: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL SALES BY LINE OF BUSINESS • Resilient business model. US$ MM US$ 2,000 1.9Bn US$ • Spare parts and services support business. US$ 1,800 1.7Bn US$ 1.6Bn US$ US$ 1.5Bn 1,600 1.4Bn • Diversification strategy through business lines, 1.4Bn 1,400 presence in different economic s
Slide 10: Operational Results
OPERATIONAL RESULTS Million soles (S/ mm) +3% 3000 2,752 2,558 1200 +30% 2500 466 2,166 515 2,047 2,101 1000 2000 667 359 587 438 467 800 639 1500 564 600 614 586 492 500 492 113 MACHINERY 1,045 469 1000 1,074 704 400 134 100 121 131 141 642 755 164 178 111 141 199 500 200 382 574 539 353 168 168 21
Slide 11: Sales by Group of Companies
SALES BY GROUP OF COMPANIES Million Soles (S/ mm) SALES BY GROUP OF COMPANIES CAT DEALERS AND OTHER BUSINESSES IN CA -8% 16% 16% 14% 16% 16% 461 424 140.0% 10% 8% 8% 10% 8% Other subsidiaries in Peru and 120.0% abroad -10% 100.0% Cat dealers and other businesses in CA 80.0% 76% 78% 76% Cat dealers a
Slide 12: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Heavy construction Minería tajo abierto LIUGONG BOMAG JCB 1% OTROS EPIROC HITACHI DOOSAN HAMM1% 1% 3% 8% 1% 2% 2% P&H HYUNDAI ATLAS COPCO 4% 5% 3% JOHN DEERE 7% CATERPILLAR KOMATSU 49% VOLVO 22% CATERPILLAR 8% 62% In units KOMATSU Rolling 12 months, Dec 2018 21% US$
Slide 13: Mining Investment: Machinery, Spare Parts and Services
MINING INVESTMENT MINING MACHINERY, SPARE PARTS AND SERVICES US$ Million US$ Million 800 10,000 9,000 700 8,000 600 7,000 90 500 353 6,000 180 115 160 400 278 5,000 135 178 4,000 300 127 498 3,000 200 87 82 400 77 76 321 324 358 351 2,000 48 46 262 100 12 197 229 155 170 1,000 104 108 120 131 130 0
Slide 14: Mining Investment Evolution, Caterpillar Equipment for Mining
MINING INVESTMENT EVOLUTION CATERPILLAR EQUIPMENT FOR MINING Mining Investment US$ Billion Units $10 617 627 592 600 563 515 $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 $0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200
Slide 15: Mining Investment: Annual Mining Equipment Sales
MINING INVESTMENT ANNUAL MINING EQUIPMENT SALES Mining Investment Billion US$ Units $10 100 $8 80 66 $6 60 48 41 41 42 40 $4 37 40 33 34 33 32 29 25 23 19 19 $2 15 16 20 9 10 7 7 0 1 $0 0 2008 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 16: Mining Investment Projects in Construction Phase
MINING INVESTMENT PROJECTS IN CONSTRUCTION PHASE Investment Start Project Company (US$ MM) production Relaves B2 Minsur 230 2019 Quecher Main Newmont y BVN 300 2019 MINING INVESTMENT (US$ Billion) Mina Justa Minsur 1,600 2020 Amp Toromocho Chinalco 1,300 2020 Quellaveco Anglo American 5,300 2022 8,7
Slide 17: Mining Projects Portfolio US$ 59 Billion
MINING PROJECTS PORTFOLIO US$ 59 BILLION Pre Feasibility Feasibility Engineering Construction US$31 BILLION US$13 BILLION US$5 BILLION US$10 BILLION • Yanacocha Sulfuros • Amp Pachapaqui • Amp Santa María • Amp Toquepala • Anubia • Integración Coroccohuayco • Optimización Lagunas Norte • Quecher Mai
Slide 18: Heavy Construction Industry Evolution
Units 0 500 1,000 1,500 2,500 2,000 Nov-08 1455 1452 Ene-09 1390 1267 Mar-09 1209 1145 May-09 1047 970 Jul-09 932 840 Set-09 799 776 Nov-09 800 820 Ene-10 771 789 Mar-10 826 842 May-10 909 987 Jul-10 1030 1099 Set-10 1193 1264 Nov-10 1285 1345 Ene-11 1379 1429 Mar-11 1557 1602 May-11 1685 1705 Jul-1
Slide 19: Main Investment Projects in Construction
MAIN INVESTMENT PROJECTS IN CONSTRUCTION Source: Apoyo Consultoría
Slide 20: Infrastructure Public Investment
INFRASTRUCTURE Portfolio Main Public Investment Projects to be Awarded PUBLIC INVESTMENT Project Region Investment (S/ MM) Mejoramiento y ampliación servicios de salud Alto Inclan Arequipa 70 Construcción puente comuneros entre Av. Daniel Alcides Carrión y Ca. Max Hongler Junín 143 Public Investment
Slide 21: Main Projects Private Investment
MAIN PROJECTS PRIVATE INVESTMENT Investment ProInversión: Projects to be awarded Project Location Stage (US$ MM) Hydrocarbons Investment Date to be Planta petroquímica 1,500 Ica EIA presentado Sector Project Location (US$ MM) awarded Plantas petroquímicas de nitrato de Ancash, Arequipa, 1,100 Ica EI
Slide 22: Market Conditions
MARKET CONDITIONS 2019 Investment by component GDP (Var. %) 6% Mainly driven 4.00% 4.0% by 3.70% 6.6 agroindustry 4% 3.30% 2.50% Diversified 2.40% Public investment: -7% APP: -4% 2% Affected by change of local authorities -6.6 Delays in land expropiation Public Infrastructure 0% 2014 2015 2016 2017
Slide 23: Financial Performance
ULLAL Financial Performance ‘Ferreycorp
Slide 24: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) SALES AND GROSS MARGIN SALES AND ADM EXPENSES +8% 5,211 90.0% 100.0% 4,856 4,843 80.0% 90.0% 80.0% 70.0% +6% 70.0% 60.0% +5% 60.0% +19% 50.0% 797 808 856 50.0% 40.0% 40.0% 1,439 234 30.0% 1,207 223 30.0% N 20.0% 20.0% 10.0% 24.3% 24.1% 24.1% 25.1% 23.2% 16.4%
Slide 25: Financial Results: Net Income and Net Margin
FINANCIAL RESULTS Million soles (S/ mm) NET INCOME AND NET MARGIN NET INCOME 2018 -16% -16% 12 40.00% 267 52 84 225 35.00% 230 6 7 N 30.00% 10 25.00% 161 20.00% 267 225 15.00% 10.00% 4.7% 5.5% 4.3% 3.0% 5.00% 0.00% 2017 Δ EBITDA Δ Financial Δ Gain(loss) Δ D&A Δ Share of Δ Income tax 2018 2015 2016 2
Slide 26: Investment in Assets
INVESTMENT IN ASSETS Million soles (S/ mm) ACCOUNTS RECEIVABLE EVOLUTION INVENTORY EVOLUTION +9% +27% 1,217 1,772 1,125 1,111 1,800 1,200 1,005 25 87 45 1,600 1,379 1,393 80 1,000 48 1,400 1,233 70 92 767 800 1,200 104 1,000 478 548 600 1,192 468 1,080 800 957 1,031 400 600 400 831 918 661 753 200 2
Slide 27: Fixed Assets and Cash Cycle
FIXED ASSETS AND CASH CYCLE Million dollars (US$ mm) CAPEX CASH CYCLE 148 152 148 156 160 29 145 145 144 4 39 143 145 3 12 136 25 127 128 126 129 128 15 6 3 5 17 28 70 77 70 71 4 73 71 71 17 68 8 54 54 55 59 57 53 51 53 -1 -7 -21 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Cash cycle Receivable
Slide 28: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) DEBT BY CURRENCY 4.7% 1.3% 0.3% DIVERSIFIED FUNDING BASE PEN Quetzal CLP 2.67 2.86 2.73 3.20 800 USD 700 93.7% 589 607 0.00 600 521 502 60 93 500 53 100 -5.00 75 400 161 100 295 -10.00 DEBT BY RATE 300 200 447 307 327 -15.00 100 201 1% 0 -20.00 20
Slide 29: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) AVG COST OF DEBT 4.65% 4.12% DEBT MATURITY 3.67% 3.43% 249 197 2015 2016 2017 2018 83 FINANCIAL EXPENSES 48 Million soles (S/ mm) 29 140 125 -14% 8.0% 1 130 7.0% 120 110 106 2019 2020 2021 2022 2023 2024 6.0% 100 85 73 90 80 -18% 5.0% 70 4.0% 60 3
Slide 30: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market
Slide 31: Ferreycorp in the Capital Market
1.50 1.60 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.70 1.70 2.60 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 14/08/2017 28/08/2017 11/09/2017 25/09/2017 9/10/2017 23/10/201
Slide 32: 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 2013 Sharehol
Slide 33: Corporate Governance and Sustainability
Corporate Governance and Sustainability
Slide 34: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS ✓ Ferreycorp Program for Professional Development - ✓ Standard Environmental Management System based on Ferreycorp Association the ISO 14001 standard ✓ Heavy Equipment Operators Club ✓ Comprehensive Policy on Health, Safety and the Community Environment ✓ Think Big Progra
Slide 35: 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 36: Contact information
Contact information: Patricia Gastelumendi: patricia.gastelumendi@ferreycorp.com.pe Elizabeth Tamayo: Elizabeth.Tamayo@ferreycorp.com.pe