Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Ferreycorp — Investor Presentation (June 2018)
29 slides from Ferreycorp Saa's investor presentation, June 2018
Slide 1: Corporate Presentation
Corporate Presentation June 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 (May-2018) ~ $790MM • 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 1Q’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 909 109 213 % of Total Sales 74% 9% 17% EBITDA 113 9 10 % of Total EBITDA 86% 7% 7% EBITDA Margin 12%
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$120M 365 DÍAS TO SERVE OUR CUSTOMERS POINTS OF CONTACT INVENTORY OF PARTS 24x7 OPERATIONS • 50+ warehouses, several located in remote locat
Slide 13: Innovation and Technology
INNOVATION AND TECHNOLOGY Value creation The journey: from peripherals to “mission critical” TBA Market specialist Challenge: To make the most out of the Integrated information different emerging technologies and apply it to value creation. Integrated services RFID, Big data, data mining, machine le
Slide 14: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS Standard Environmental Management System based Ferreycorp Program for Professional Development - on the ISO 14001 standard Ferreycorp Association Comprehensive Policy on Health, Safety and the Community Heavy Machinery Operators Club Environment Environment Thin
Slide 15: Corporate Standards: Strong Corporate Governance
CORPORATE STANDARDS STRONG CORPORATE GOVERNANCE • Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962. • Ferreycorp is included in the Corporate Governance Index of the Lima Stock Exchange since its inception in 2008. Board of Directors: • The last General Annual Meeting agreed to
Slide 16: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Heavy Construction Open pit mining BOMAG JCB Otros SANDVIK HITACHI 1% LIUGONG 2% 2% 4% 5% 1% DOOSAN ATLAS COPCO 2% 4% HAMM 4% P&H 7% HYUNDAI 5% JOHN DEERE 6% KOMATSU 18% CATERPILLAR CATERPILLAR 64% VOLVO 52% 8% In units Rolling 12 meses, KOMATSU Mar 2018 15% US$ 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$1.4Bn • Resilient business model 1,400 1,200 • Stable product suppo
Slide 19: Operational Results
OPERATIONAL RESULTS Million de soles (S/ mm) 3,125 -5.49% 3000 2,752 1400 514 2,558 2500 466 2,166 1200 +11.1% 568 515 2,047 2000 359 1000 667 438 587 800 1500 1,088 564 MACHINERY 614 600 443 492 1000 1,045 1,074 704 400 134 642 104 500 955 149 164 574 539 200 382 353 167 168 0 26 0 23 2013 2014 201
Slide 20: Sales by Group of Companies
SALES BY GROUP OF COMPANIES MillIion soles (S/ mm) CAT dealers and other businesses in CA • CAT dealers and allied brands in Peru (74% of sales): +16% - spare parts and services: +23% (63% of sales of this group) - rent: +45% - north reconstruction 140.0% - used: +25% - sales of used trucks 120.0% 1
Slide 21: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Million soles (S/ mm) SALES AND GROSS MARGIN SALES AND ADM EXPENSES 5,333 90.0% 100.0% 4,856 4,843 80.0% 90.0% 80.0% 70.0% 70.0% 60.0% 60.0% +12.0% +7.9% 50.0% 820 50.0% 797 808 40.0% 40.0% 1,099 1,231 199 30.0% 30.0% N 185 20.0% 20.0% 24.2% 24.3% 24.1% 24.0% 23.5% 10.
Slide 22: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) UTILIDAD NETA 1T’17 VS 1T’18 UTILIDAD NETA Y MARGEN NETO +4.4%% 90.0 10.00% 80.0 9.00% 6.3 65.1 70.0 62.4 15.0 8.00% 40.00% 11.6 0.9 266 0.3 0.8 7.00% 35.00% 60.0 230 5.70% 5.3% 6.00% 30.00% 50.0 5.00% 161 N +4.4% 25.00% 40.0 4.00% 20.00% 30.0 3.00% 15.00% 62
Slide 23: Investment in Assets
INVESTMENT IN ASSETS Million soles (S/ mm) ACCOUNTS RECEIVABLES EVOLUTION INVENTORY EVOLUTION +7.3% +21% 1,194 1,200 1,125 1,109 1,112 32 1,600 1,472 1,379 1,393 1,005 45 80 41 1,400 87 1,000 70 1,233 92 1,217 48 1,200 104 389 106 459 800 1,000 444 382 421 600 1,162 800 1,080 1,029 1,071 957 600 400
Slide 24: Fixed Assets and Cash Cycle
FIXED ASSETS AND CASH CYCLE Million dollars (US$ mm) CAPEX CASH CYCLE 148 152 145 145 144 39 30 -75% 6 29 3 -5 12 127 128 126 129 128 19 5 3 28 27 3 9 17 3 4 6 2 -1 -1 -3 70 77 70 71 -11 73 11 -27 53 54 51 54 55 -10 21 31 2015 2016 2017 1Q'17 1Q'18 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Infrastructure Equipm
Slide 25: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) DEBT BY CURRENCY 5.9% 1.2% DIVERSIFIED FUNDING BASE 0.1% Soles Quetzales Pesos Chilenos 2.67 2.86 2.73 2.79 800 Dolares 700 589 0.00 92.8% 600 521 502 527 93 500 53 75 71 -5.00 400 161 100 100 295 -10.00 300 DEBT BY RATE 200 307 327 356 -15.00 100
Slide 26: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) AVG COST OF DEBT 4.65% 4.12% DEBT MATURITY 3.35% 297 3.11% 2015 2016 2017 1Q'18 137 FINANCIAL EXPENSES Million soles (S/ mm) 8.0% 140 130 125 41 120 106 7.0% 29 23 110 6.0% 1 100 90 85 5.0% 80 2018 2019 2020 2021 2022 2023 70 60 4.0% 3.0% 50 20 40
Slide 27: Ferreycorp in the Capital Market
FERREYCORP IN THE CAPITAL MARKET SHAREHOLDERS COMPOSITION AS OF MAR 2018 Capital S/. 975,683,029 Local pension Nº of shares 975,683,029 Foreign investors funds Dividend Yield (div 0.1354654234) 5.4% 33% 35% Peruvian investors 32% MAIN SHAREHOLDERS > 4% AS OF MAR 18 STOCK PERFORMANCE 2017-2018 (S/) H
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