Slide 1: Corporate Presentation
Corporate Presentation August 2015 (Second quarter 2015 results)
Slide 2: “Company”) and is not intended for general distribution. It may only be used for
This presentation has been prepared by Ferreycorp S.A.A. (together with its subsidiaries, the “Company”) and is not intended for general distribution. It may only be used for informational purposes. This presentation may contain proprietary, trade-secret, confidential and commercially sensitive info
Slide 3: Business highlights
-Ferreycorp Business highlights
Slide 4: Mission, Vision and Corporate Values
Mission, Vision and Corporate Values + MISSION + OUR To provide the solutions that each customer needs, by supplying the capital goods and services that they STRATEGY require to create value in the markets where they operate + VISION Strengthen our leadership by being recognized by our customers as
Slide 5: Ferreycorp at a glance
Ferreycorp at a glance Distribution of capital goods and provide related services. Focus in the after-market Unique Caterpillar distributor in Peru, Guatemala, El Salvador and Belize. Presence in Nicaragua, Chile, Colombia and Ecuador representing allied brands. More than 70 years of strategic allia
Slide 6: Corporate History
Corporate History 2013 International Bond Issuance US$300mm 1997 Re-IPO: 2012 US$22mm Reorganization Equity Follow on 1994 US$ 62mm 2015 First bond issuance 2015 Transpesa 2010 2000 2014 TREX 1962 Registry in 1990 1942 2012 Lima Stock 1922 Caterpillar Bucyrus Exchange Ferreycorp 1980 foundation (for
Slide 7: Corporate Structure
Corporate Structure Caterpillar dealers Caterpillar dealers and Other Subsidiaries in Perú businesses abroad Caterpillar Dealers in Central America Guatemala El Salvador Belize Transportes Pesados S.A. de C.V. 1S 2015 1S 2015 1S 2015 Revenue: US$ 676 MM (79%) Revenue: US$ 89 MM (10%) Revenue: US$ 93
Slide 8: Sustainable Business Model
Sustainable Business Model Sales by line of business In functional currency US$1.9Bn 2,000 US$1.7Bn sales grew by 6.5% 1,800 1,600 1S14 (S/. 2.5 Bn) vs 1,400 1S15 (S/. 2.6 Bn) US$ Millon 1,200 US$892 US$858 1,000 mm mm 800 600 Product Support sales 400 10 Year CAGR – 14% 200 (2004-2014) - 2007 2008
Slide 9: Diverse Customer Base
Diverse Customer Base 49% of deliveries from non-mining customers Sales by economic sectors 2% 1% 1% 2% 3% 3% 3% 2% 3% 2% 3% 2% 9% 26% 11% 12% 38% 3% 5% 1% 3% 49% 2% 2% 19% 27% 24% 29% 13% 2010 1S 2014 1S 2015 Open pit mining Underground mining Construction Government Transport Industry, commerce an
Slide 10: Capabilities
-Ferreycorp Capabilities ib oad ~ re See
Slide 11: Nationwide Coverage in Peru Internationalization
Nationwide Coverage in Peru Internationalization Ferreyros establishment Branches Projects “in situ” Branches expansion International expansion Local International BELICE GUATEMALA EL SALVADOR NICARAGUA COLOMBIA ECUADOR PERÚ CHILE Ferreyros branches On-site projects Orvisa, Unimaq and Gentrac Guatem
Slide 12: Lean and Efficient Logistics
Lean and Efficient Logistics Ferreycorp integrates and administrates all the key elements in the logistic chain as a value proposition Vertical integration through complementary businesses : 1)Freight Forwarder (FORBIS) y 2)Warehouses and terminals (Fargoline) Efficient handling: 100,000 SKU (Sales
Slide 13: Qualified and Talented Workforce
Qualified and Talented Workforce Ferreycorp employees June 2015 Total number of employees Technicians 2,709 Administratives & sales 3,669 6,633 Executives 170 6,237 6,518 6,548 Total employees 6,548 5,358 4,737 2,847 2,806 2,709 2,929 2,631 2,386 Programs to retain and develop best talents: Leadersh
Slide 14: Strong Corporate Governance
Strong Corporate Governance • Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962. Board • Ferreycorp is included in the Corporate Governance Index of the Lima Stock Exchange since its inception in 2008. Dependent Directors Independent Directors Oscar Espinosa Eduardo Montero Board
Slide 15: Caterpillar Market Share
Caterpillar Market Share Perú Central America Open pit mining Heavy and General construction Guatemala Bomag Case Vogele KomatsuNew JCB 2% 1% 1% Kubota 2% HollandOtros Sany New Holland 4% Atlas 2% 2% 2% 5% 1% Others Volvo Copco John Deere 3% 3% Bob Cat P&H 9% Hamm 6% Doosan 13% 1% 3% Bobcat 3% Doosa
Slide 16: Financial Performance
-Ferreycorp Financial Perfomance
Slide 17: Track Record of Consistent Financial Performance
Track Record of Consistent Financial Performance Sales (US$mm) Gross Margin Machinery Parts and services Others Used and Rental 25% 24% 22.9% 23.2% 23% 22.4% 22% 21.1% 21.1% 21.2% 20.7% 21% 20.3% 1,831 1,931 1,718 20% 190 135 19% 1,419 160 142 181 18% 135 104 17% 1,050 108 557 633 892 858 16% 766 86
Slide 18: EBITDA and Profitability
EBITDA and Profitability EBITDA (US$mm) and EBITDA margin (%) Operating and Net margin 9% 8.6% 8.4% 8% 7.8% EBITDA EBITDA margin % 6.8% 7.5% 7% 7.1% 6.9% 7.3% 13.0% 6.4% 11.8% 11.6% 12.0% 6% 11.2% 10.7% 10.9% 5.0% 11.0% 10.9% 11.0% 4.7% 4.7% 10.0% 5% 9.9% 9.0% 4% 3.8% 217 8.0% 181 184 7.0% 3% 155 11
Slide 19: Investment in Assets - Accounts Receivables
Investment in Assets - Accounts Receivables Accounts Receivable evolution by term Factoring US$ MM 90 US$ MM 80 350 14 13 300 11 10 12 70 250 33 36 60 200 13 316 50 150 292 305 298 303 245 100 205 40 85 159 76 50 30 0 2009 2010 2011 2012 2013 2014 1S 14 1S 15 20 Short term Long term 10 • 2Q 15 recei
Slide 20: Investment in Current and Fixed Assets
Investment in Current and Fixed Assets Inventory evolution (US$mm) CAPEX evolution (US$mm) 73 25 55 49 44 12 31 32 19 23 15 602 584 20 21 38 11 6 523 486 13 9 15 454 449 7 15 338 5 16 16 21 8 9 11 11 6 206 -3 2009 2010 2011 2012 2013 2014 1S 14 -12 1S 15 2009 2010 2011 2012 2013 2014 1S 14 1S 15 * 2
Slide 21: Cash Cycle
Cash Cycle -38 days of accounts payable Cash Cycle of 152 days 59 days of accounts receivable 130 days of Inventory (2.76x)
Slide 22: Access to Diversified Sources of Financing
Access to Diversified Sources of Financing Diversified funding base (US$mm) Debt by currency Bancos Caterpillar Bonos 3% 7% Soles 2Q 2015 244 121 295 US$ 660 MM Dollars Others 2014 222 123 295 US$ 640 MM *Others: Quetzales, 90% Chilean pesos. 2013 236 170 325 US$ 731MM Debt by group of companies 201
Slide 23: Access to Diversified Sources of Financing
Access to Diversified Sources of Financing Avg interest rate 6.0% 5.3% Maturity of financial debt (US$mm) 5.0% 5.0% 4.9% 4.4% 4.4% 350 4.2% 4.25% 299 4.0% 300 250 3.0% US$ Million 182 2009 2010 2011 2012 2013 2014 2Q 15 200 150 100 Financial expenses (as% of total sales) 73 62 5.0% 50 29 13 4.0% 4.1
Slide 24: Leverage Ratio / Covenant
Leverage Ratio / Covenant Net debt to EBITDA ratio Adjusted debt to EBITDA ratio 4.39 2.93 4.08 2.68 2.86 2.60 3.62 3.50 3.53 3.52 2.37 2.38 2.46 3.33 3.38 3.27 3.22 3.28 2.85 3.06 3.21 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q14 2Q15 2009 2010 2011 2012 2013 2014 2Q15 * Adjuste
Slide 25: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market Capital S/. 1’014,326,324 Shareholders composition as of July 2015 Nº of stocks 1’014,326,324 Dividend Yield 4.4% EV/EBITDA 12m 6.0x Local Pension Foreign funds investors 23% Main shareholders as of July 2015 37% Titular % La Positiva Vida Seguros y Reaseguros S.A< 8
Slide 26: Dividend Policy – Annual Compliance
Dividend Policy – Annual Compliance In 1997, the company´s shareholders 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 remainder will be cap
Slide 27: Contacts
Contacts Administration and Finance Manager: Patricia Gastelumendi Treasury Manager: Liliana Montalvo Investor Relations: Elizabeth Tamayo