Slide 1: Earnings Call Second Quarter 2021
EARNINGS CALL SECOND QUARTER 2021 August 3rd, 2021
Slide 2: Disclaimer
DISCLAIMER This presentation may contain financial or business projections regarding recent acquisitions, their financial or business impact, management expectations and objectives regarding such acquisitions and current management expectations on the operating and financial performance of The Compa
Slide 3: Topics
TOPICS Q2 ’21 HIGHLIGHTS 1 Q2 ’21 CONSOLIDATED OPERATING RESULTS 2 Q2 ’21 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2021 5 APPENDIX 6
Slide 4: Q2 '21 Highlights
Q2 ’21 HIGHLIGHTS
Slide 5: Relevant Events
Q2 ’21 HIGHLIGHTS Relevant Events Alicorp´s dividend policy: Shareholder Commodity prices remained at multi- meeting approved an extraordinary year high during the 2Q21, while PEN dividend of 0.585 PEN per share continues depreciating Soybean oil price +104.7% YoY Wheat price +42.7% YoY1 PEN - 9.7%
Slide 6: Peru's New Government
Q2 ’21 STRATEGIC HIGHLIGHTS Peru´s New Government THE ELECTION OF PEDRO • In his first speech as President Mr. Castillo promised a responsible change in the CASTILLO AS PRESIDENT economy, as well as an increase in health care and education spending. OF PERU REPRESENTS A TURN TO THE LEFT IN • While G
Slide 7: Strategic Pillars
Q2 ’21 STRATEGIC HIGHLIGHTS Strategic Framework ALICORP’S CORPORATE STRATEGY ENABLERS Create and strengthen new businesses and platforms through innovation as well as continuous exploration of inorganic opportunities GROWTH STRATEGIC PILLARS Instill a culture of Efficiency allowing us to continuousl
Slide 8: Building digital ecosystems for our clients in Peru
Q2 ’21 STRATEGIC HIGHLIGHTS Digital Initiatives BUILDING DIGITAL ECOSYSTEMS FOR OUR CLIENTS IN PERU TO STRENGTHEN OUR GO TO MARKET Digital ecosystem to better serve our B2B FIRST RESULTS clients ➢ 90%+ higher average ✓ Comprehensive product portfolio (including fresh tickets compared to DEX RESTAURA
Slide 9: Internet of Things and analytics ecosystem for Vitapro's clients
Q2 ’21 STRATEGIC HIGHLIGHTS Digital Initiatives INTERNET OF THINGS AND ANALYTICS ECOSYSTEM TO IMPROVE PRODUCTIVITY IN VITAPRO’S CLIENTS Our solution introduces Internet of Things, data and analytics infrastructure to shrimp pool OUR PURPOSE IS TO management to improve efficiency FIRST RESULTS TRANSF
Slide 10: Innovating how we innovate
Q2 ’21 STRATEGIC HIGHLIGHTS Innovation INNOVATING HOW WE INNOVATE – DESIGN THINKING TO EXPLORE CONSUMER NEEDS ✓ Agility in decision making ▪ #BUENOYBUENAZO BETTER FOR YOU, SNACKS THAT ✓ Iterative strategy ▪ Help millennials snack better, encouraging COMBINE 44% CACAO WITH ✓ 1.5-year consumer focused
Slide 11: Q2 '21 Consolidated Operating Results
Q2 ’21 CONSOLIDATED OPERATING RESULTS
Slide 12: Consolidated Revenue – Q2 '21 vs. Q2 '20
Q2 ‘21 CONSOLIDATED OPERATING RESULTS Consolidated Revenue – Q2 ’21 vs. Q2 ‘20 STRONG REVENUE Q2 PERFORMANCE SUMMARY – REVENUE GROWTH (YoY %) AND GROSS MARGIN +21.2% GROWTH EXPLAINED BY 6,000 2,000 THE SOLID 5,725 5,500 PERFORMANCE OF OUR 5,000 CRUSHING UNIT AND 4,722 1,500 4,500 THE IMPORTANT 4,000
Slide 13: Consolidated EBITDA – Q2 '21 vs. Q2 '20
Q2 ‘21 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q2 ’21 vs. Q2 ‘20 WHILE OUR CG UNITS Q2 PERFORMANCE SUMMARY – EBITDA GROWTH (YoY %) AND EBITDA MARGIN WERE IMPACTED BY +30.8% CHALLENGING 950 ECONOMIC 639 900 CONDITIONS AND 850 COST PRESSURE, B2B800 AND AQUAFEED SHOW450 +2.1% 488 AN ENCOUR
Slide 14: Consolidated Net Income – Q2 '21 vs. Q2 '20
Q2 ‘21 CONSOLIDATED OPERATING RESULTS Consolidated Net Income – Q2 ‘21 vs. Q2 ‘20 Q2 PERFORMANCE SUMMARY – NET INCOME GROWTH (YoY %) AND NET MARGIN THE DECLINE IN NET +91.0% INCOME IS 179 EXPLAINED BY LOWER OPERATING PROFIT IN ADDITION TO HIGHER NET FINANCIAL EXPENSES, FX & 84 -47.4% 94 HEDGING LOSS
Slide 15: Operating Results by Business
Q2 ‘21 OPERATING RESULTS BY BUSINESS
Slide 16: Consumer Goods Peru: Update on Market Dynamics
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics ALICORP OUTPERFORMS PRIVATE CONSUMPTION WE RECOVER MARKET SHARE IN MOST CATEGORIES MARKET SHARE Shares Of Market - Volume (p.p.change) RECOVERY IN MOST 37.0 12.0 CATEGORIES AFTER 12.5 10.7 7.3 -8.7 25.9 -1.7 24.9 -2.
Slide 17: Consumer Goods Peru: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q2 Performance REVENUE & GROSS MARGIN +16.1% (PEN Million) 2,000 1,862 55 1,603 50 1,500 HIGH RISE OF +25.9% 45 952 COMMODITY PRICES 40 756 33.7% AND EXCHANGE RATE 35 500 29.8% PRESSURE OUR GROSS 26.8% 30 33.8% 25 MARGINS VERSUS LAST 0 Q2 ’20
Slide 18: Consumer Goods International: Market Dynamics
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics HIGHER COSTS NEGATIVELY • Massive smuggling from Argentina pressure local domestic oil prices IMPACTED MARGINS ACROSS • Backwards vertical integration discourages competitors from price increases GEOGRAPHIES in the oi
Slide 19: Consumer Goods International: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q2 Performance REVENUE & GROSS MARGIN Q2 REVENUE IMPACTED 1,000 (PEN Million) 901 -3.2% 100 BY LOWER SALE VOLUME AND THE DEVALUATION OF 872 800 80 -2.4% SOME LOCAL 600 60 477 465 CURRENCIES, THAT 400 29.3% 18.6% 28.9% 20.2% 40 COULD
Slide 20: B2B: Update on Market Dynamics
Q2 ‘21 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics LAST YEAR CONTEXT IMPACTED HUGE ON GROWTH RATES ACTIVE CLIENTS EVOLUTION IMPROVE THROUGH OUT OF HOME 1.6k NEW CLIENTS PROSPECTING ON APR-MAY Restaurant GDP and Food Service* Revenue growth (Index 100=2019) Active clients number (‘00
Slide 21: B2B: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS B2B: Q2 Performance REVENUE & GROSS MARGIN +36.5% ENCOURAGING (PEN Million) 1,000 951 70 800 +72.5% 697 60 RECOVERY OF OUR B2B 50 600 531 40 UNIT WITH SALES AND 400 30 VOLUME ABOVE PRE- PANDEMIC LEVELS 308 18.1% 15.9% 20 200 14.6% 15.1% 10 0 Q2 ’20 Q2 ’21 YTD ’20
Slide 22: Aquafeed: Update on Market Dynamics
Q2 ‘21 OPERATING RESULTS BY BUSINESS % % YoY % growth Aquafeed: Update on Market Dynamics SHRIMP SALMON SHRIMP: GROWTH IN Shrimp Exports in Ecuador (MT K and US$ MM) +22% Salmon Exports in Chile (MT K and US$ MM) EXPORTS VALUE -17% -2% -6% 1,226 1,316 1,351 -22% -14% -10% 1,217 EXPLAINED BY HIGHER 9
Slide 23: Aquafeed: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Aquafeed: Q2 Performance REVENUE & GROSS MARGIN SOLID REVENUE (USD Million) 295 -1.4% 290 300 100 GROWTH YoY AND QoQ 250 DUE TO VOLUME 200 +15.7% 80 RECOVERY IN OUR 150 139 161 60 SHRIMP FEED 100 21.2% 21.1% 40 16.3% 16.6% BUSINESS AND PRICE 50 20 INITIATIVES 0 Q
Slide 24: Crushing: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Crushing: Q2 Performance REMARKABLE VOLUME SOLD (Thousands of MT) REVENUE (USD million) GROWTH ON THE BACK OF INCREASING +44.7% VOLUME AND SALES TO -5.8% 172 277 261 -39% 119 38 -14% THIRD PARTIES, AS 97 59 44 COMMODITY PRICES CONTINUE AT A HIGH 134 180 202 +12%
Slide 25: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 26: Leverage and Credit Rating
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating INDEBTEDNESS EVOLUTION CREDIT RATING AS OF Q2 ‘21 Net Debt / EBITDA1,2 Global (Excluding Crushing Business Raw Material Inventory) WE INCREASED OUR LEVERAGE TO FINANCE BBB- / Stable = BBB / Stable = Baa3 / Stable = THE RECOVERY IN O
Slide 27: Liquidity and Working Capital Performance
SOLID LIQUIDITY AND STRONG BALANCE SHEET Liquidity and working capital performance LIQUIDITY WORKING CAPITAL3 TOTAL CASH (Days) S/ 1,418 million Accounts Receivable Inventories Accounts Payable DEBT COVERAGE 1 113.0 116.0 121.0 120.0 1.10x2 over next 12 months 108.0 0.81x2 over next 24 months Access
Slide 28: Our View for 2021
alicorp R VIEW FOR 2021
Slide 29: 2021 Guidance
OUR VIEW FOR 2021 2021 Guidance DOUBLE DIGIT CONSOLIDATED REVENUE GROWTH ALL THE BUSINESSES´ REVENUES GROWING DOUBLE DIGIT WITH THE EXCEPTION OF CGI GROWING HIGH SINGLE DIGIT APPROXIMATELY 20% CONSOLIDATED EBITDA GROWTH DESPITE LOWER MARGINS DUE TO HIGHER COSTS, ALL THE BUSINESSES GROWING DOUBLE DIG
Slide 30: Appendix
APPENDIX
Slide 31: CGI: Q4 2020 and FY 2020 Performance by Geography
APPENDIX CGI: Q4 2020 AND FY 2020 PERFORMANCE BY GEOGRAPHY
Slide 32: Consumer Goods Bolivia: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q2 Performance REVENUE & GROSS MARGIN (PEN Million) -5.2% PRICING AND INCREASED 350 325 308 160 LEVELS OF SMUGGLING 140 300 120 HAVE IMPACTED SALES IN 250 200 174 -7.4% 100 THE SHORT TERM. 150 161 80 MARGINS REDUCED BY 60 100 28.7% 18.7% 2
Slide 33: Consumer Goods Ecuador: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q2 Performance REVENUE & GROSS MARGIN (PEN Million) 100 +11.2% 160 82 140 80 74 120 SOLID REVENUE 60 +26.4% 100 GROWTH EXPLAINED 80 BY MARKET SHARE 44 40 35 60 20 40 GAINS, SPECIALLY IN 35.8% 32.7% 35.7% 35.6% 20 DETERGENTS 0 Q2 ’20 Q2 ’21
Slide 34: Consumer Goods Brazil: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Brazil: Q2 Performance REVENUE & GROSS MARGIN NET REVENUE (PEN Million) 200 -1.6% 160 165 162 140 GROWTH FUELED BY 150 120 +12.5% 100 PRICING ACTIONS TO 100 83 93 80 COMPESATE FOR 50 30.2% 30.5% 60 40 COMMODITY COST 19.7% 20.3% 20 IN SPITE OF 0 Q2
Slide 35: Consumer Goods Argentina: Q2 Performance
Q2 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Argentina: Q2 Performance REVENUE & GROSS MARGIN (PEN Million) -7.3% 250 234 120 217 200 100 THE CONTRACTION 150 -9.9% 80 OF LOCAL CONSUMPTION, 126 113 60 100 30.1% 29.1% 40 PRICE CONTROLS 50 11.6% 12.5% 20 AND THE 0 Q2 ’20 Q2 ’21 YTD ’20 YTD ’21 0
Slide 36: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 37: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 19 Dic 20 Jun 21 DEBT1 S/ 4,191mm S/ 3,961mm S/ 5,683mm 8.5% 10.2% 6.2% 6.8% 11.7% 5.1% International Bonds 8.1% By Source1 Local Bonds 12.4% Working Capital Debt LT Bank Debt 33.5% 32.9% Leases (IFRS 16) 29.9% 23.8% 43.6% 46.7% 20.6% 16.1% 15.8% 21.1% 0.7% 0.9% 0.4
Slide 38: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO (PEN Million) 1,329 1,314 1,295 1,182 1,282 1,286 Alicorp’s financial guidelines aim to: 238 236 239 240 243 249 1. Maintain investment grade rating 5.59x 5.56x 5.41x 5.27x 5.16x 4.92x 2. Reduce financial expenses 3. Shift our de
Slide 39: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX3 (PEN Million) (PEN Million) • The growth in inventories for S/ 658 million is mainly explained by the temporary increase in our inventory in the crushing business. 300 PP&E Intangibles PP&E+Intagibles/Sales • The increase in payab
Slide 40: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS FOR CASH FLOW EVOLUTION (PEN Million) Cash Flow used in Operations Cash Flow used in Investing Cash Flow from Financing S/ -137 S/ -2522 S/ 1,236 2,400 3 1,900 1,592 480 15(1) 1,400 146 4 210 18(1) 900 1,592 1,445 135 1,418 400 915 571 571 482 434 182 252 182
Slide 41: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1 OPERATING & FREE CASH FLOW CONVERSION1 (PEN Million) 2019 4 2020 Q2 2021 3 140% 120% 100% 85% 91% 3 FY 2019 FY 2020 Q2 2021 80% 29% 60% 40% 67% 59% 20% 0% 0% -20% -8% 1,087 1,072 2 870 2 6 6 718 Operating Cash Flow / EBITDA Free Cash Flow / EB
Slide 42: Q2 2021 Milestones
APPENDIX Q2 2001 MILESTONES
Slide 43: 2Q 2021 Milestones
APPENDIX 2Q 2021 Milestones RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 23 products were launched as part of our innovation strategy, being the most remarkable: “Puro”, new line of healthy snacks “Ají Power” and “Rocoto y Pimiento (Peru) Power” by Alacena (PERU) Alicorp was awarded with two bronze E
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