Slide 1: Corporate Presentation October 2020
Corporate Presentation October 2020
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 to focus on 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 sa
Slide 4: Vision
Vision To be recognized as a leading economic group in Peru, with presence in the Latin American region and an excellent supplier of capital goods and related services, that contributes to increase the productivity and profitability in the economic sectors in which we participate and promotes the de
Slide 5: Mission
Mission Operate through our subsidiaries with focus and a high degree of specialization, capital goods, supply distribution businesses and services and support, for prestigious global brands with high standards, efficiency and profitability, achieving in turn the development of our collaboratrs and
Slide 6: Our Culture is based on…
Our Culture is based on… Cultural Principles Values
Slide 7: 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 8: Allows achieve diversification
Allows achieve diversification YTD2020 Caterpillar dealers and Caterpillar dealers and other Other subsidiaries in Peru (S/. Million) allied brands in Peru businesses in Central America and abroad Sales 2,283 306 615 % of Total Sales 71% 9% 20% EBITDA 237 39 86 % of Total EBITDA 65% 11% 24% EBITDA M
Slide 9: Complete Value Proposition
Complete Value Proposition Machinery Agriculture Services business Automotive Consumables business 9
Slide 10: 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 11: With a strong market share in order to take all the market opportunities
With a strong market share in order to take all the market opportunities Open pit mining Heavy construction OTROS ATLAS COPCO P&H OTROS 10% LIEBHERR 3% 1% 1% BOMAG 3% EPIROC 3% HYUNDAI 7% 3% HITACHI 1% JOHN DEERE 8% CATERPILLAR KOMATSU CATERPILLAR 52% VOLVO 26% 58% 9% KOMATSU 15% In units Rolling 12
Slide 12: 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 13: 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 14: Quarantine Impact, Management and Results
Quarantine Impact, Managament and Results
Slide 15: Quarantine management in Ferreycorp
Quarantine management in Ferreycorp Peru imposed one of the earliest and strictest lockdowns in Latin America to stop the spread of coronavirus (M16th - J26th) Immediate actions: Prepare the return to labor: Recover profitability: Ensure connectivity with all Sanity Protocols Efficient market covera
Slide 16: Liquidity and working capital trends under Covid
Liquidity and working capital trends under Covid Cash Balance 252 (In million US$) 199 Debt Maturity 120 (In million US$) 105 104 200 Short term Medium 40% term March'20 April'20 May'20 June'20 Sept''20 60% 81 80 Debt (In million US$) 46 36 Local banks Foreign banks 896 899 19 18 18 CAT Capital Mkt
Slide 17: Impact on financial expenses, but controlled average cost of debt
Impact on financial expenses, but controlled average cost of debt Financial Expenses Average cost of debt (In million S/) 140 8.0 0% 130 +31% 7.0 0% 120 110 +2% 100 96 6.0 0% 90 85 5.0 0% 80 73 72 74 70 4.0 0% 60 4.12% 3.0 0% 50 3.67% 3.68% 3.51% 40 30 2.0 0% 3.43% 2.3% 1.8% 20 1.0 0% 10 1.4% 1.6% 1
Slide 18: Controlling main assets and CAPEX
Controlling main assets and CAPEX Account Receivables (In million S/) - 21% 1,221 1,309 Capex 1,111 1,155 26 (In million US$) 26 1,037 27 43 80 29 29 4 4 1,195 1,281 39 1,031 1,128 12 1,008 3 25 34 15 6 3 2 5 17 2 2017 2018 2019 YTD'19 YTD'20 28 8 4 6 Short Term Long Term 17 3 8 11 6 -1 -7 Inventori
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) +3% 298 270 105 5,988 6,000 5,788 18 49 210 198 5,000 200 163 163 161 164 169 187 193 4,000 150 155 159 3,000 149 149 150 2,000 100 76 67 63 64 62 64 56 1,000 50 - 53 55 52 52 58 47 47 Total Asset
Slide 20: Mining and Construction machines connected and monitored
Mining and Construction Customers machines connected and monitored Open pit mining equipment Heavy construction machines (Units) (Monthly hours) Sample: 750 units 730 units 122,000 monthly hours 75% 70% 55% 50% 40% 46% 37% 23% 17% Mayo Marzo Junio Julio Ago Febrero Enero Abril Sept Junio 15-Mar Marz
Slide 21: Fundamental of the Business
ULL Fundamental of the Business ‘Ferreycorp
Slide 22: Resilient Business Model
Resilient Business Model Sales by Business Line US$ MM • Spare parts and services support business. US$ 1.9Bn US$ 2,000 US$ US$ 1.7Bn 1.6Bn US$ 1.8 Bn • Diversification strategy through business US$ US$ 1.4Bn 1.4Bn 1.5Bn US$ lines, presence in different economic sectors, 1,500 1.3 Bn US$ different c
Slide 23: Reflected in strong financial results
Reflected in strong financial results Million soles (S/ mm) Sales Margins 25.2% 25.5% 25.2% -26% 24.1% 22.1% 4,313 -24% 3,204 13.1% 12.8% 10.9% 11.3% 1,601 9.2% 9.2% 9.0% 1,220 805 6.9% 7.7% 4.0% Q3'19 Q2'20 Q3'20 YTD'19 YTD'20 Q3'19 Q2'20 Q3'20 YTD'19 YTD'20 Gross margin Operating Margin Ebitda Mar
Slide 24: Net Profit impacted by FX Loss
Net Profit impacted by FX Loss Net Profit and Net Margin (In million S/) 300 40.00% 267 245 35.00% 250 225 206 30.00% 200 25.00% • FX loss as of Sept’20: S/ 105 million • Recovered through: 150 20.00% 15.00% i) Inventory reserve as of September - S/ 64 million soles 100 Ii) Recovery through gross ma
Slide 25: Sustainability and Social Responsibility
Sustainability and Social Responsibility
Slide 26: Positive Impact with Stakeholders
Positive Impact with Stakeholders ✓ Ferreycorp Program for Professional Development - ✓ ISO 14001 in Fargoline and Trex Ferreycorp Association ✓ Environmental Management Programs: planning, training Community ✓ Heavy Equipment Operators Club Environment and awareness, operational control and verific
Slide 27: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market Shareholder Structure Main Shareholders Shareholder Share Onyx Latin America Equity Fund LP 6.68% Foreign Legal Person Pension Funds 35% RI-Fondo 2 (Prima AFP) 6.50% 24% IN-Fondo 3 (AFP Integra) 5.40% IN-Fondo 2 (AFP Integra) 5.25% PR-Fondo 2 (Profuturo AFP) 4.68% Lo
Slide 28: Corporate Governance
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 launch in 2008. Board of Directors: • Conformed by 9 members Composition of the Board: • The Board of Director
Slide 29: That allows us to pay dividends
That allows us to pay dividends ✓ 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 2013 Shareholde
Slide 30: Thanks
-Ferreycorp Thanks