Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Alicorp — Q4 2021 Earnings Presentation
42 slides from Alicorp Saa's earnings presentation, Feb 17, 2022
Slide 1: Earnings Call Fourth Quarter 2021
EARNINGS CALL FOURTH QUARTER 2021 February 17th, 2022
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 Q4 ’21 AND FY 2021 HIGHLIGHTS 1 Q4 ’21 AND FY 2021 CONSOLIDATED OPERATING RESULTS 2 Q4 ’21 AND FY 2021 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2022 5 APPENDIX 6
Slide 4: Q4 '21 Highlights
Q4 ’21 AND FY 2021 HIGHLIGHTS
Slide 5: Pressure on margins we experienced from inflationary pressures
Q4 ’21 AND FY 2021 HIGHLIGHTS Relevant indicators for our business PRESSURE ON MARGINS Agricultural Commodities1 & Oil2 Monthly Average Prices COVID-19 Vaccination status in Peru by age ranges3 WE EXPERIENCED FROM Index 100= Jan 2020 180 INFLATIONARY PRESSURES 160 THROUGHOUT 2021 9% 4% 3% 4% 10% 140
Slide 6: Positive external tailwinds supported macroeconomic recovery
Q4 ’21 AND FY 2021 HIGHLIGHTS Partial recovery of macroeconomic growth not translated to disposable income of households GDP Growth (YoY%) POSITIVE EXTERNAL 13.3 PERUAVIAN EMPLOYMENT TAILWINDS SUPPORTED CONTEXT MACROECONOMIC 6.0 3.0 4.0 4.0 2.8 RECOVERY, BUT HIGHER ▪ Although the number of jobs has
Slide 7: Strategic pillars and FY 2021 results
FY 2021 RESULTS Key Indicators Sales Growth (PEN MM) EBITDA (PEN MM) CAGR 16-21: 13% +24%1 CAGR 16-21: 10% +3%1 ENABLERS 12,228 1,277 1,315 9,872 9,348 1,022 1,119 6,949 8,289 802 903 6,629 DIGITAL & GROWTH 2016 2017 2018 2019 2020* 2021* 2016 2017 2018 2019 2020* 2021* ANALYTICS STRATEGIC PILLARS S
Slide 8: On track with the multi-annual efficiencies program
Q4 ’21 STRATEGIC HIGHLIGHTS Efficiency Efforts G&A Reduction COGS WE ARE CURRENTLY ON PEN 100M SG&A run rate reduction, already executed (partially reflected in ▪ Design to value TRACK WITH THE MULTI ▪ SKU rationalization 2021), mainly overhead and third-party services ▪ Lean manufacturing initiativ
Slide 9: Transactions aligned with our prioritization
M&A Activity Sale of Brazilian and Argentinian subsidiaries in Q4 2021 TRANSACTIONS Non-cash impacts on Q4 net income from sale transactions attributed to discontinued operations ALIGNED WITH OUR Alicorp Argentina SA PRIORITIZATION TVBC SCA Sulfargen SA EFFORTS AND PEN 220 MM loss from STRATEGIC GOA
Slide 10: Q4 '21 Consolidated Operating Results
Q4 ’21 AND FY 2021 CONSOLIDATED OPERATING RESULTS
Slide 11: Strong revenue growth explained by crushing, aquafeed and B2B
Q4’21 AND FY 2021 CONSOLIDATED OPERATING RESULTS Consolidated Revenue – Q4 '21 vs. Q4 '20 STRONG REVENUE GROWTH EXPLAINED Q4 PERFORMANCE SUMMARY – REVENUE in million PEN BY THE SOLID +30.8% PERFORMANCE OF OUR 12,228 CRUSHING, AQUAFEED AND B2B UNITS THE EVOLUTION 9,348 REFLECTS HIGHER +37.6% VOLUME A
Slide 12: Consolidated EBITDA grew YoY explained by crushing and B2B
Q4’21 AND FY 2021 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q4 '21 vs. Q4 '20 CONSOLIDATED EBITDA GREW YoY EXPLAINED Q4 PERFORMANCE SUMMARY – EBITDA in million PEN BY CRUSHING AND B2B UNITS DESPITE THE +17.5% 1,315 PERFORMANCE OF CONSUMER GOODS PERU, MITIGATING THE IMPACT OF +13.4% 1,119
Slide 13: Decrease in net income explained by sale of Brazilian and Argentinian operations
Q4’21 AND FY 2021 CONSOLIDATED OPERATING RESULTS Consolidated Net Income – Q4 '21 vs. Q4 '20 -359 Q4 PERFORMANCE SUMMARY – NET INCOME in million PEN +11.2% 403 362 -386 DECREASE IN NET +6.8% 331 INCOME IS EXPLAINED 78 2 76 5 81 389 EXCLUSIVELY BY THE 3.0% 2.9% 2.3% 3.5% 3.9% 3.3% SALE OF OUR BRAZILI
Slide 14: Q4 '21 Operating Results by Business
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS
Slide 15: Market share of modern channel recovers or remains flat
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics Core brands recover market share in main categories Positive market signs at year-end MARKET SHARE OF Share of Share of MODERN CHANNEL Core/Value Volume split (%) Jul-21 Average Sep/Oct-21 Dec-21 Market S
Slide 16: Consumer Goods Peru: revenue decline driven by lower volume
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q4 Performance REVENUE DECLINE REVENUE & GROSS MARGIN (PEN million) DRIVEN BY LOWER +4.9% VOLUME, PARTIALLY 3,549 3,722 OFFSET BY PRICE ACTIONS EXECUTED -1.3% ALONG 2021 32.8% 26.5% 954 942 EBITDA MARGIN 31.1% 20.3% 4Q20 4Q21 FY20
Slide 17: Consumer Goods International: higher costs impacted margins
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics HIGHER COSTS ▪ Home Care segment (+27% vs 2019), reflecting new hygiene habits NEGATIVELY ▪ Lower disposable income of households leads to higher preference for more IMPACTED MARGINS affordable products, e
Slide 18: Bolivia sum of the parts: remarkable results
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Bolivia sum of the parts VOLUME SOLD REVENUE REMARKABLE RESULTS (Thousands of MT) (USD million) DRIVEN BY THE +16.6% +42.3% OUTSTANDING 1,389 988 PERFORMANCE OF OUR 1,191 301 +16% 195 +52% 1,015 260 694 CRUSHING UNIT, DUE TO 176 566 83 128 A BETTER HA
Slide 19: Consumer Goods Ecuador: Q4 performance
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q4 Performance REVENUE & GROSS MARGIN (PEN million) +10.2% REVENUE GROWTH EXPLAINED BY MARKET 183 166 SHARE GAINS IN ALL +7.4% 36.2% CATEGORIES YoY 31.2% 46 50 36.5% 25.1% 4Q20 4Q21 FY20 FY21 EBITDA & EBITDA MARGIN (PEN million
Slide 20: B2B: food service industry growing
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics Restaurant GDP Active Clients Evolution Index 100=2019 (in thousands) 95 97 88 +10.0 FOOD SERVICE 76 INDUSTRY GROWING 74 73 67 DESPITE THE 69 25.0 64 63 61 60 19.0 19.9 20.0 18.5 CHALLENGING 50 10.0 CONTEXT, OPERATING NE
Slide 21: B2B: recovery of platform continues
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS B2B: Q4 Performance RECOVERY OF B2B REVENUE & GROSS MARGIN (PEN million) PLATFORM +42.9% CONTINUES DRIVEN 2,169 BY AN INCREASE IN 1,518 SALES VOLUME +51.1% 612 405 16.8% 16.1% PRICING STRATEGIES 15.1% 15.4% AND DECOMPLEXITY 4Q20 4Q21 FY20 FY21 INITIAT
Slide 22: Aquafeed: update on market dynamics
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth SHRIMP SALMON SHRIMP: GROWTH IN EXPORT VOLUME AND Shrimp Exports in Ecuador (MT K and US$ MM) +73% Salmon Exports in Chile (MT K and US$ MM) VALUE DRIVEN BY +79% 33% 1,607 -10% 11% +22% 1,351 -14% 1,394
Slide 23: Aquafeed: solid revenue growth YoY
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Aquafeed: Q4 Performance REVENUE & GROSS MARGIN SOLID REVENUE (USD million) +31.3% GROWTH YoY DUE TO 719 HIGHER SALES 548 VOLUME IN OUR +55.1% SHRIMP AND SALMON 204 FEED BUSINESS UNITS 132 13.6% 19.2% 15.4% 16.3% AND PRICE ACTIONS 4Q20 4Q21 FY20 FY21
Slide 24: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 25: Slight improvement in net debt-to-EBITDA
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating INDEBTEDNESS EVOLUTION CREDIT RATING AS OF Q4 ‘21 SLIGHT IMPROVEMENT IN Net Debt / EBITDA1,2,6 Global OUR NET DEBT-TO- (Excluding Crushing Business Raw Material Inventory) EBITDA DUE TO THE INFLOW RECEIVED FROM THE SALE OF = = = BBB
Slide 26: Liquidity and working capital performance
SOLID LIQUIDITY AND STRONG BALANCE SHEET Liquidity and working capital performance LIQUIDITY WORKING CAPITAL3 ,4 TOTAL CASH (Days) S/ 905 million Accounts Receivable Inventories Accounts Payable DEBT COVERAGE 1 119 125 123 124 124 2.44x2 over next 12 months 0.80x2 over next 24 months 107 107 Access
Slide 27: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 28: Guidance 2022
OUR VIEW FOR 2022 Guidance 2022 REVENUE EBITDA CAPEX LEVERAGE DOUBLE DIGIT HIGH SINGLE APPROXIMATELY 2.7X NET DEBT/EBITDA1 GROWTH DIGIT GROWTH USD 70 MM EXCLUDING AQUAFEED USD 125 MM INCLUDING AQUAFEED 1 Excluding raw material in our Crushing business
Slide 29: Appendix
APPENDIX
Slide 30: Crushing: Q4 performance
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Crushing: Q4 Performance OUTSTANDING VOLUME SOLD REVENUE REVENUE GROWTH (Thousands of MT) (USD million) DUE TO HIGHER +42.8% +71.0% 430 273 VOLUME, BETTER 83 58 HARVEST AND THE 300 +52% 54 160 30 CONTINUOUS 246 347 +41% 215 130 INCREASE IN COMMODITIES
Slide 31: CGI: Q4 '21 Performance by Geography
APPENDIX CGI: Q4 ‘21 AND FY 2021 PERFORMANCE BY GEOGRAPHY
Slide 32: Consumer Goods International: Q4 performance
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q4 Performance REVENUE & GROSS MARGIN (PEN million) +5.4% INCREASE IN REVENUE 1,074 1,132 DRIVEN BY BOLIVIA AND ECUADOR +12.6% EXPLAINED BY SHARE 298 335 28.2% 21.3% GAINS AND PRICE ACTIONS TO OFFSET 27.9% 19.5% 4Q20 4Q21
Slide 33: Consumer Goods Bolivia: Q4 performance
Q4 ‘21 AND FY 2021 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q4 Performance HIGHER REVENUE REVENUE & GROSS MARGIN EXPLAINED BY HIGHER HOME AND PERSONAL (PEN million) +3.5% 695 719 CARE VOLUME, ADDED TO HIGHER PRICES TO +11.3% OFFSET HIGHER COSTS 194 216 27.8% 18.7% 27.7% 17.8% 4Q20 4Q21
Slide 34: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 35: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 19 Dic 20 Dic 21 DEBT1 S/ 4,191mm S/ 3,961mm S/ 5,245mm 8.5% 10.2% 7.5% 11.7% 5.1% International Bonds 8.1% 30.7% By Source1 Local Bonds 12.4% Working Capital Debt LT Bank Debt 34.3% Leases (IFRS 16) 29.9% 23.8% 43.6% 5.3% 46.7% 22.2% 16.1% 15.8% 15.0% 0.7% 0.9% 0.2
Slide 36: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO4 (PEN Million) 1,295 1,182 1,282 1,286 1,288 1,315 Alicorp’s financial guidelines aim to: 239 240 243 249 283 307 1. Maintain investment grade rating 5.41x 5.27x 5.16x 4.92x 2. Reduce financial expenses 4.56x 4.28x 3. Shift our d
Slide 37: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 ,2 CAPEX4 (PEN Million) (PEN Million) • The growth in inventories for S/ 1,042 million is mainly explained by higher inventory in our crushing business due to a combination of a 300 PP&E Intangibles PP&E+Intagibles/Sales 8.0 % better har
Slide 38: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS FOR CASH FLOW EVOLUTION (PEN Million) Cash Flow from Operations Cash Flow used in Investing Cash Flow from Financing S/ 522 S/ -2201 S/ 32 2,400 2 1,050 1,900 1,102 1,400 332 262 900 318 1,411 220 1,591 686 3 1,094 400 873 873 906 905 571 571 -100 -600 Net Ca
Slide 39: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,7 OPERATING & FREE CASH FLOW CONVERSION1,7 (PEN Million) 2019 4 2020 2021 3 140% 120% 100% 85% 91% 3 FY 2019 FY 2020 FY2021 80% 60% 40% 40% 67% 59% 0% 20% 0% 23% 1,087 1,072 2 870 2 6 6 718 Operating Cash Flow / EBITDA Free Cash Flow / EBITDA
Slide 40: Q4 '21 Milestones
APPENDIX Q4 ‘21 MILESTONES
Slide 41: 4Q '21 Milestones
APPENDIX 4Q ‘21 Milestones RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 15 products were launched / relaunched as part of our innovation strategy, being the most remarkable: In Peru, Alicorp was recognized in the Merco Ranking as one of the companies with the best corporate reputation “Sapolio” three
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