Slide 1: Corporate Presentation
-Ferreycorp Corporate Presentation
Slide 2: Ferreycorp: a successful story
Ferreycorp: a successful story 30s 40s 50s 60s 70s 80s 90s 00s 1997: IPO 1940: Opens its 1996: 2010: 1962: Registry in first branch in 1988: First International Lima Stock Arequipa USS$ 100MM securitization expansion Exchange Revenue 1994: Established First bond issuance 1922 2012 2010: USS$ 1942: 2
Slide 3: Company overview
Company overview Sales by Commercial Line • High growth rates, tripled business revenue 1,400 over past 6 year period. 1,200 • Coverage: key markets of the economy. • Diversified portfolio of products. 1,000 • Business model: focus on aftermarket US$ Million 800 sales. • Record in sales: US$ 1.4 bil
Slide 4: Sales approach to main economic sectors
Sales approach to main economic sectors Revenue Distribution by Economic Sectors 1,400,000 1,200,000 8% 3% Mining 1,000,000 5% US$ Million Construction 800,000 7% Agriculture 600,000 44% Fishing 3% 400,000 Trasport 4% 200,000 Industry Hydrocarbons 0 27% Others 2007 2008 2009 2010 2011 2Q2012 Mining
Slide 5: Overview of Ferreycorp Strategy
Overview of Ferreycorp Strategy Strategy aligned with Caterpillar business model Strategy basis Leadership Achieve results Positive Impact World Class Capabilities
Slide 6: Capabilities: Team of seasoned executives
Capabilities Team of seasoned executives Business Control and Systems Central Management Hugo Sommerkamp (27) Administration and Finance Central Management Patricia Gastelumendi (25) Human Resources Central Management Andrés Gagliardi (26) Central Bussines Management Gonzalo Díaz (8) Mining Division
Slide 7: Capabilities: Customer-oriented matrix organization
Capabilities Customer-oriented matrix organization Rental Fleet business 80,000 500 400 IRevenues US$MM 60,000 Units 300 40,000 200 20,000 100 - 0 200 8 200 9 201 0 201 1 1Q2 012 • Rental fleet composed of approximately 400 Caterpillar units. • 14 000 m2 location dedicated to rental and sale of used
Slide 8: Capabilities: Lean logistics and infrastructure
Capabilities Lean logistics and infrastructure • Efficient handling: 100,000 SKU (Sales Key Unit). • $90MM inventory on average (parts and components) • Day 1: 83% of requests, Day 2: 95% • 365 d, 24x7 operation, including expedited process for urgent requests • Direct B2B interfaces with key custom
Slide 9: Capabilities: Product support infrastructure
Capabilities Product support infrastructure Location Shops Component Rebuild Center Lima 8 (CRC) achieved “World Class” certification Arequipa 3 Cajamarca 2 5-star in contamination control Piura 1 ISO 9001 certified Lambayeque 1 Top marks on contamination control Trujillo 1 Chimbote 1 Huaraz 1
Slide 10: Good corporate governance and capital market
Capabilities Good corporate governance and capital market Stock Market recognizes Ferreyros among the ten companies with best Corporate Governance practices in Peru ( since 2008) - Is part of the Peruvian Good Corporate Governance Index. - Self validation. High degree of compliance with the good
Slide 11: Geographical Diversification
Geographical Diversification Ferreyros Branches Projects Branches International establishment expansion “in situ” expansion expansion Local International Andoas Tumbes Iquitos Talara Bagua Piura Lambayeque Cajamarca Tarapoto Trujillo Tingo Huaraz Maria HuánucoPucallpa Chimbote Cerro de Pasco La Merc
Slide 12: Organizational Structure
Organizational Structure Guatemala El Salvador Belice
Slide 13: Strong financial performance
Strong financial performance Revenue growth with stable gross margin ROA - ROE 28% 25% 22.41% 20% 24% 17.74% 16.28% 17.55% 14.76% 15% 20% 10% 5.81% 5% 5.25% 4.66% 3.97% 16% 3.67% 0% 12% 2008 2009 2010 2011 2Q 2012* 2007 2008 2009 2010 2011 2Q2012 ROA ROE EBITDA Net Profit 14% 160 70 140 60 12% 120 5
Slide 14: Investment in assets
Investment in assets Assets Main Assets Accounts 1,600,000 1,400,000 1,400,000 1,200,000 1,200,000 1,000,000 US$ Thousand US$ Thousand 1,000,000 800,000 800,000 600,000 600,000 400,000 400,000 200,000 200,000 0 0 2007 2008 2009 2010 2011 2Q2012* 2007 2008 2009 2010 2011 2Q2012* Assets Sales Inventor
Slide 15: Diversified borrowing base
Diversified borrowing base Financial Liabilities Financial Covenants 800 6.00 700 5.50 600 5.00 US$ Million 500 4.50 400 4.00 300 3.50 200 3.00 100 2.50 0 2.00 2007 2008 2009 2010 2011 2Q 2012 1.50 Local Banks Foreign Banks Commercial Papers 2008 2009 2010 2011 2Q2012 Finance Lease Bonds Caterpillar
Slide 16: Ferreyros in the Capital Market
Ferreyros in the Capital Market Cost of Debt - Bonds Corporate Bonds and Commercial Papers 45 8% 40 7.50% 7.31% 35 6.25% 5.75% 30 US$ Million 5.50% 25 4.69% 5.56% 4.63% 4.56% 4% 20 3.50% 15 sep-07 dic-08 feb-09 nov-09 may-10 jun-10 ago-10 may-11 oct-11 10 3 year 8% 7.31% 4.63% 4.69% 4% 4 year 6.25%
Slide 17: Contact
Contact: Patricia Gastelumendi: patricia.gastelumendi@ferreyros.com.pe Liliana Montalvo: liliana.montalvo@ferreyros.com.pe Elizabeth Tamayo: elizabeth.tamayo@ferreyros.com.pe
Slide 18: Growth model
Growth model I) CAT: Growth strategies and Perspectives IV) International II) Ferreyros: Sustained Expansion organic growth III) Subsidiaries: New markets and brands
Slide 19: Investment in mining and infrastructure
Investment in mining and infrastructure Investment in mining 8,000 7,000 6,000 PREPARATION 5,000 OTHER US$ Million INFRASTRUCTURE 4,000 EXTRACTION 3,000 EXPORATION 2,000 MINING EQUIPMENT PLANT EQUIPMENT 1,000 0 2007 2008 2009 2010 2011 Ene-Apr Ene-Apr '11 '12 Peruvian infrastructure gap 9,000 8,000
Slide 20: Ferreycorp in the capital market
Ferreycorp in the capital market Shareholders Share price Market Price Brokers Pension Local funds 35% 37% Comparables (PER) Retail Foreign Last years 9% 19% 0.00 1.00 2.00 3.00 4.00 5.00 S/. Per share Historical stock price evolution Average monthly traded volume S/. 5,000,000 4,000,000 3,000,000 2
Slide 21: 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 50% of freely available profits. The remainder will be cap