Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Ferreycorp — FY2020 Earnings Presentation
20 slides from Ferreycorp Saa's earnings presentation, March 2021
Slide 1: Corporate Presentation
Corporate Presentation March 2021
Slide 2: Ferreycorp Strategy and Capabilities
Ferreycorp Strategy and Capabilities
Slide 3: Overview of the Company
Overview of the Company • Ferreycorp was established in 1922 with focus in the commercialization of consumption products. • In 1942 , the company assumes the representation and strategic alliance with Caterpillar Tractor (almost 80 years ago) in Peru and entered in the capital goods field. • In the
Slide 4: Complete Value Proposition
Complete Value Proposition Machinery Agriculture Services business Automotive Consumables business 4
Slide 5: Portfolio Diversification
Portfolio Diversification Thanks to the experience and knowledge acquired with Caterpillar, the corporation and its subsidiaries have established strong long-term relationships with a number of global brands. Ferreycorp has consolidated as a prestigious portfolio of represented brands, becoming the
Slide 6: Corporate Structure
Corporate Structure BVL: FERREYC1 Caterpillar dealers and allied Caterpillar dealers and other businesses Other subsidiaries in Peru and abroad brands in Peru in Central America Guatemala Chile, Colombia , Ecuador, Perú El Salvador Belice Nicaragua El Salvador, Honduras
Slide 7: Allows achieve diversification
Allows achieve diversification 2020 Caterpillar dealers and Caterpillar dealers and other Other subsidiaries in Peru (S/. Million) allied brands in Peru businesses in Central America and abroad Sales 3,544 436 877 % of Total Sales 73% 9% 18% EBITDA 445 51 108 % of Total EBITDA 74% 8% 18% EBITDA Marg
Slide 8: With a strong market share taking all the market opportunities
With a strong market share taking all the market opportunities Open pit mining Heavy construction ATLAS COPCO P&H DOOSAN HAMM OTROS LIEBHERR 5% 3% 2% 9% 2% 3% BOMAG EPIROC 2% 9% HYUNDAI 4% HITACHI 2% JOHN DEERE CATERPILLAR CATERPILLAR 8% 50% KOMATSU 21% 58% VOLVO In units KOMATSU 8% Rolling 12 mo, D
Slide 9: And also supported by current Mining customers: 50% of sales
And also supported by current Mining customers: 50% of sales Cerro Corona Iscaycruz La Zanja Shahuindo El Porvenir (UG) Raura (UG) Yanacocha Atacocha (UG) Islay (UG) San Cristobal (UG) Animon (UG) Uchucchacua Carahuacra (UG) Antamina Morococha Iscaycruz Toromocho Yauliyacu Andaychagua (UG) Las Bamba
Slide 10: Key Capabilities developed over the years
Key Capabilities developed over the years Long-term strategic alliances. Access to best practices, Xcellence programs. Market coverage Unmatched supply chain and logistics capabilities Excellence in after market with experienced technicians and accumulated data Financial strength and funding sources
Slide 11: Year 2020: Quarantine impact, management and results
Year 2020: Quarantine impact, managament and results
Slide 12: Quarantine management in Ferreycorp
Quarantine management in Ferreycorp Continuous communication: from the corporation, managers, health specialists through emails, webinars, intranet Monitoring staff health: surveys, communication with leaders. Focus on the following areas: Staff health Access to financial Factory availability Custom
Slide 13: Capacity Evolution: mining and construction
Mining and Construction Capacity Evolution: mining and construction Customers machines connected 730 units Open pit mining equipment 90% (Units) 75% 70% 50% 46% Monthly sales – Full year 2020 37% (Million S/) 615 544 494 445 424 430 414 374 376 Febrero 15-Mar Marzo Mayo Junio Dic Enero Abril Sept 30
Slide 14: Strong financial results
Strong financial results Million soles (S/ mm) Margins Sales 24.1% 24.1% 24.8% -17% 23.5% 5,859 5,211 4,843 4,857 11.7% 11.9% 11.6% 12.4% 8.9% 7.8% 8.4% 8.7% 2017 2018 2019 2020 2017 2018 2019 2020 Gross margin Operating Margin Ebitda Margin Operating Profit Target 2020: SG&A EBITDA reduction in S/
Slide 15: Net Profit impacted by FX Loss
Net Profit impacted by FX Loss Net Profit, Margin and FX impact (In million S/) • FX loss as of Dec’20: S/ 106 million 300 • Recovered through: 40.00% 267 245 250 225 i) Inventory reserve as of December - S/ 26 million soles 35.00% ii) Recovery through gross margin – S/ 77 million soles 30.00% 200 2
Slide 16: Liquidity and working capital trends
Liquidity and working capital trends 252 Cash Balance Debt Maturity (In million US$) (In million US$) 220 199 120 105 104 Non- 74 Current Current 45% 55% 77 77 March'20 April'20 May'20 June'20 Sept''20 Dec'20 44 19 18 18 Debt (In million US$) 2021 2022 2023 2024 2025 2026 2027 Local banks Foreign ba
Slide 17: Financial expenses and controlled average cost of debt
Financial expenses and controlled average cost of debt Financial Expenses Average cost of debt (In million S/) 140 8.0 0% 130 0% 7.0 0% 120 110 100 95 95 6.0 0% 90 85 5.0 0% 80 73 70 4.0 0% 60 4.12% 3.0 0% 50 3.67% 3.67% 40 3.53% 30 2.0 0% 3.43% 20 1.8% 1.6% 2.0% 1.0 0% 10 1.4% 0 0.0 0% 2017 2018 20
Slide 18: Controlling main assets and CAPEX
Controlling main assets and CAPEX Account Receivables Budget 2021: (In million S/) US$ 30mm (fixed assets) - 10% Capex US$ 2mm (intangibles) 1,221 1,147 (In million US$) 1,111 26 32 1,036 80 43 61 29 4 4 1,195 1,115 39 1,031 975 12 3 25 34 6 12 15 3 2 5 17 10 2017 2018 2019 2020 8 28 5 Short Term Lo
Slide 19: Important Investment in Assets Mainly cash and inventory
Important Investment in Assets Mainly cash and inventory Total Assets Cash Cycle (In million S/) (Days) - 2% 210 198 193 6,000 5,731 260 90 5,635 200 1 109 185 163 163 161 165 169 5,000 187 193 180 150 4,000 155 159 149 149 150 3,000 100 76 67 63 64 62 64 69 2,000 56 50 1,000 53 55 52 52 58 55 48 47
Slide 20: Thanks
-Ferreycorp Thanks