Slide 1: Corporate Presentation
Corporate Presentation May 2020
Slide 2: Ferreycorp and Strategy
ATTTELLLLL Ferreycorp and Strategy Ferreycorp
Slide 3: Highlights Ferreycorp
HIGHLIGHTS FERREYCORP • Established in Peru in 1922. • 98 years of business, 78 years of alliance with CAT. Currently operating thru 17 companies within 10 countries employing a workforce of +6,000. • Key facts: • 60% Caterpillar Market Share • Market cap (Feb-2020) ~ $600MM • Shareholders +2,500 SH
Slide 4: Corporate Structure
CORPORATE STRUCTURE BVL: FERREYC1 Caterpillar dealers and allied Caterpillar dealers and other businesses in Other subsidiaries in Peru and abroad brands in Peru Central America Guatemala Chile, Colombia , Ecuador, Perú El Salvador Belice Nicaragua El Salvador, Honduras 4
Slide 5: Diversification Strategy
DIVERSIFICATION STRATEGY As of March 2020 Caterpillar dealers and allied Caterpillar dealers and other Other subsidiaries in Peru and (S/. Million) brands in Peru businesses in Central America abroad Sales 859 115 206 % of Total Sales 73% 10% 17% EBITDA 92 17 14 % of Total EBITDA 75% 14% 11% EBITDA
Slide 6: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business 6
Slide 7: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS 7
Slide 8: Key Capabilities Creating Value
KEY CAPABILITIES CREATING VALUE Long term strategic partnerships Market coverage Unmatched supply chain and logistics capabilities Financial strength and funding sources In-depth market knowledge Innovation and technology Ethics and compliance, Corporate Governance and Sustainability 8
Slide 9: Fundamental of the Business
ULL Fundamental of the Business ‘Ferreycorp
Slide 10: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL Sales by Business Lines • Resilient business model. US$ MM US$ • Spare parts and services support business. 1.9Bn US$ US$ 2,000 US$ 1.7Bn 1.6Bn US$ 1.8 Bn • Diversification strategy through business lines, US$ US$ 1.5Bn 1,500 1.4Bn 1.4Bn presence in different economic sect
Slide 11: Sales by Group of Companies
SALES BY GROUP OF COMPANIES (In S/ mm) Sales by group of companies CAT dealers and other businesses in CA + 9% - 3% 15% 14% 18% 17% 17% 8% 6% 7% 9% 10% 140. 0% 120. 0% 100. 0% 80.0% 77% 79% 75% 74% 73% 60.0% 40.0% 20.0% 25.0% 25.0% 25.0% 25.0% 25.0% 0.0% Q2'19 Q3'19 Q4'19 Q1'19 Q1'20 Q2'19 Q3'19 Q4'
Slide 12: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Open pit mining Heavy construction XCMG DOOSAN OTROS EPIROCLETORNEAUSANDVIK 3% SEM 1% BOMAG 1% HITACHI 5% 1% 1% 1% 2% 1% HYUNDAI JOHN DEERE 2% 7% VOLVO KOMATSU 10% 34% CATERPILLAR CATERPILLAR 58% 54% KOMATSU In units 19% Rolling 12 mo, Mar 2020 US$ FOB Rolling 12 mo,
Slide 13: Mining Investment: Mining Machinery, Spare Parts and Services
MINING INVESTMENT MINING MACHINERY, SPARE PARTS AND SERVICES Mining Invest. US$ Million US$ Bn 800 10 9 700 8 600 150 7 87 500 343 119 6 179 160 314 400 136 5 205 4 300 137 500 528 3 200 407 325 325 361 354 2 229 268 100 198 1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales of spare part
Slide 14: Mining Investment Evolution: Caterpillar Equipment for Mining
MINING INVESTMENT EVOLUTION CATERPILLAR EQUIPMENT FOR MINING Mining Investment US$ Billion Units $10 700 651 617 627 592 563 600 $8 515 482 500 416 $6 376 400 360 323 281 300 $4 249 234 215 192 165 166 173 200 131 $2 98 100 57 7 16 16 $0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 15: Mining Projects Portfolio US$ 59 Billion
MINING PROJECTS PORTFOLIO US$ 59 BILLION Pre Feasibility Feasibility Engineering Construction US$31 BILLION US$13 BILLION US$5 BILLION US$10 BILLION • Yanacocha Sulfuros • Amp Pachapaqui • Amp Santa María • Amp Toquepala • Anubia • Integración Coroccohuayco • Optimización Lagunas Norte • Quecher Mai
Slide 16: Mining Projects Construction Stage – Next Years
MINING PROJECTS CONSTRUCTION STAGE – NEXT YEARS 2019 2020 2021 2022 US$ 9,000mm US$ 3,959mm US$ 3,357mm US$ 5,140mm INVESTMENT INVESTMENT INVESTMENT PROJECT PROJECT INVESTMENT (US$ MM) (US$ MM) PROJECT PROJECT (US$ MM) (US$ MM) Relaves B2 San Rafael 200 Optimiz Inmaculada (UG) 136 Magistral 480 Pamp
Slide 17: Presence in Large Open Pit, Medium Size and Underground Mining
PRESENCE IN LARGE OPEN PIT, MEDIUM SIZE AND UNDERGROUND MINING 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 Bam
Slide 18: Heavy Construction Industry Evolution
HEAVY CONSTRUCTION INDUSTRY EVOLUTION Units 18
Slide 19: Infrastructure Gap in Peru US$ 160 Billion
INFRASTRUCTURE GAP IN PERU US$ 160 BILLION Investment by sector Hydraulic Water and US$ Billion 2016-2025 Education 5% sanitation 3% 8% Water and sanitation 12.5 Telecom 27.0 Health 12% Telecom Transport 57.5 17% Energy 30.7 Health 18.9 Energy Education 4.6 19% Hydraulic 8.5 Transport Total 159.7 36
Slide 20: Main Infrastructure Projects Under Construction
MAIN INFRASTRUCTURE PROJECTS UNDER CONSTRUCTION INFRASTRUCTURE PROJECTS UNDER CONSTRUCTION ✓ Projects for more tan US$ 3billion already awarded but TOTAL INVESTMENT 2019 2020 pending to be executed (Public-Private partnerships) PROJECT (US$ mm) (US$mm) (US$mm) Delays in land expropriation Project re
Slide 21: National Plan for Competitiveness and Productivity
NATIONAL PLAN FOR COMPETITIVENESS AND PRODUCTIVITY • National Infrastructure Plan: Projects for US$30 billion to reduce the gap of basic services in 30% and will be developed in the next 10 years. Investment Investment Project Sector Stage Project Sector Stage (S/mm) (S/mm) Línea 2 y Ramal Av. Fauce
Slide 22: GDP, Private and Public Investment
GDP, PRIVATE AND PUBLIC INVESTMENT GDP (Var.%) Public and Private Investment (Var.%) 6% 8% 6.8% 4.0% 4.0% 4% 3.0% 4.2% 2.0% 2.7% -0.2% 0.2% 3% 2.5% 0% -1.5% 2.2% 0.0% -2.3% -4% -5.4% -8% 0% 2016 2017 2018 2019E 2020E 2016 2017 2018 2019E 2020E Public Investment Private Investment Total Investment by
Slide 23: Main Projects
MAIN PROJECTS Investment Flow of main projects Public Works Exectution 2019 2020E 2019 2020E PROJECT PROJECT (US$mm) (US$mm) (US$mm) (US$mm) Quellaveco 1,300 1,500 Reconstruction of North Part 950 1,130 Toromocho expansion 500 550 Talara Refinery 900 650 Mina Justa 900 500 Panamerican Games 230 0 Li
Slide 24: Financial Performance
ULLAL Financial Performance ‘Ferreycorp
Slide 25: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) Sales and Gross Margin SG & A Expenses +13% 5,211 5,865 90.0% 100.0% 4,843 80.0% 90.0% 80.0% 70.0% +7% 70.0% 60.0% 60.0% - 12% 50.0% 856 916 50.0% 808 +1% 40.0% 40.0% 1,341 1,179 30.0% 30.0% N 216 219 20.0% 20.0% 10.0% 24.1% 24.1% 23.5% 25.2% 21.6% 16.7% 16.4%
Slide 26: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) Net Profit 1Q’20 Net Profit and Net Margin 120 100 300 40.00% 267 80 245 35.00% 250 60 55 N 225 30.00% 40 92 200 - 123% 1 25.00% 20 150 20.00% 0 -104 -21 92 100 15.00% -20 10.00% -40 42 50 5.5% 6.9% 4.3% 4.2% -60 -1 5.00% 4 -21 0 -80 0.00% Q1'19 Δ EBITDA Δ Fin
Slide 27: EBITDA
EBITDA Million soles (S/ mm) EBITDA 1Q’20 250 18.00% - 30% 13.60% 200 13.00% N 10.8% 150 3 3 4 1 8.00% 100 162 183 118 128 3.00% 50 0 -2.00% 1Q'19 Δ Sales Δ COGS Δ SG&A Δ Other income Δ D&A Δ Financial 1Q'20 (expenses) income Positive Variations Negative Variations 27
Slide 28: Investment in Assets
INVESTMENT IN ASSETS Million soles (S/ mm) Accounts Receivables Inventory +6% - 15% 1,934 1,972 1,221 1,772 1,852 1,155 85 74 1,111 1,126 83 26 1,393 87 27 28 962 80 754 761 30 92 788 794 548 1,195 1,128 1,098 1,031 932 1095 975 1137 753 897 2017 2018 2019 1Q'19 1Q'20 2017 2018 2019 1Q'19 1Q'20 Shor
Slide 29: Fixed Assets and Cash Cycle
FIXED ASSETS AND CASH CYCLE Million dollars (US$ mm) CAPEX Cash cycle 169 148 156 160 163 163 161 165 155 159 43 149 149 150 29 143 145 136 4 4 25 12 71 71 34 68 67 63 64 6 3 62 7 56 17 8 0.5 59 28 57 53 53 55 52 4 12 48 47 8 11 2 3 -7 -10 -14 -21 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 Cash
Slide 30: Financial Debt
FINANCIAL DEBT Million dollars (US$ mm) Diversified funding base Debt by currency Debt Maturity 0.2% 366 2.73 3.20 3.31 3.43 3.5% 0.2% 800 703 730 700 38 34 607 45 55 0.00 600 502 100 500 -5.00 100 60 400 75 152 641 -10.00 300 620 447 96.1% 85 200 327 -15.00 59 100 34 0 -20.00 USD PEN GFQ CLP 1 2017
Slide 31: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market
Slide 32: Ferreycorp in the Capital Market
FERREYCORP IN THE CAPITAL MARKET Shareholder Structure as of March 2020 Main Shareholders as of March 2020 Shareholder Share Foreign RI-Fondo 2 (Prima AFP) 7.00% Pension funds shareholders 36% Onyx Latin America Equity Fund LP 6.68% 26% IN-Fondo 3 (AFP Integra) 5.39% IN-Fondo 2 (AFP Integra) 5.25% P
Slide 33: 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 2013 Sharehol
Slide 34: Corporate Governance and Sustainability
Corporate Governance and Sustainability
Slide 35: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS ✓ Ferreycorp Program for Professional Development - ✓ Standard Environmental Management System based on Ferreycorp Association the ISO 14001 standard ✓ Heavy Equipment Operators Club ✓ Comprehensive Policy on Health, Safety and the Community Environment ✓ Think Big Progra
Slide 36: 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 launch in 2008. Board of Directors: • The last General Shareholders Annual Meeting
Slide 37: Contact information
Contact information: Patricia Gastelumendi: patricia.gastelumendi@ferreycorp.com.pe Elizabeth Tamayo: elizabeth.tamayo@ferreycorp.com.pe