Slide 1: Corporate Presentation 1Q 2019
Corporate Presentation 1Q 2019
Slide 2: Ferreycorp and Strategy
ATTTELLLLL Ferreycorp and Strategy Ferreycorp
Slide 3: 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
Slide 4: Diversification Strategy
DIVERSIFICATION STRATEGY As of March 2019 Caterpillar dealers and allied Caterpillar dealers and other Other subsidiaries in Peru and (S/. Million) brands in Peru businesses in Central America abroad Sales 990 118 233 %of Total Sales 74% 9% 17% EBITDA 142 16 25 % of Total EBITDA 77% 9% 14% EBITDA Ma
Slide 5: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business
Slide 6: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS
Slide 7: 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
Slide 8: Business Strengths
ULL Business Strengths ‘Ferreycorp
Slide 9: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL SALES BY LINE OF BUSINESS • Resilient business model. US$ MM US$ 2,000 1.9Bn US$ • Spare parts and services support business. US$ 1,800 1.7Bn 1.6Bn US$ US$ US$ 1.5Bn 1,600 1.4Bn 1.4Bn • Diversification strategy through business lines, 1,400 presence in different economic s
Slide 10: Operational Results
OPERATIONAL RESULTS Million soles (S/ mm) +3% 3000 2,752 2,558 1200 +9% 2500 466 2,166 515 2,047 2,101 1000 2000 667 359 587 438 467 800 639 1500 564 600 538 614 586 500 113 492 MACHINERY 1,045 469 105 1000 1,074 704 400 100 121 141 134 642 755 178 153 500 111 199 164 200 208 382 574 539 353 168 210
Slide 11: Sales by Group of Companies
SALES BY GROUP OF COMPANIES Million Soles (S/ mm) SALES BY GROUP OF COMPANIES CAT DEALERS AND OTHER BUSINESSES IN CA - 8% 17% 16% 14% 17% 17% 461 424 140.0% 8% 8% 8% 9% 9% 120.0% Other subsidiaries in Peru and abroad 100.0% + 8% 80.0% Cat dealers and other 75% 76% 78% 74% 74% businesses in CA 60.0%
Slide 12: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Heavy construction Minería tajo abierto LIUGONG BOMAG JCB 0% OTROS 1% 1% DOOSAN HAMM 3% 2% P&H 2% HYUNDAI 4% EPIROC 4% ATLAS COPCO 10% JOHN DEERE 2% 7% VOLVO KOMATSU 5% 17% CATERPILLAR CATERPILLAR 54% 67% KOMATSU 21% In units Rolling 12 months, Mar 2019 US$ FOB Rolli
Slide 13: Mining Investment: Mining Machinery, Spare Parts and Services
MINING INVESTMENT MINING MACHINERY, SPARE PARTS AND SERVICES US$ Million US$ Million 800 10,000 9,000 700 8,000 600 7,000 90 500 353 6,000 180 115 160 400 278 5,000 135 178 4,000 300 127 498 3,000 200 87 82 400 77 76 321 324 358 351 2,000 48 46 262 100 12 197 229 155 170 1,000 104 108 120 131 130 0
Slide 14: Mining Investment Evolution, Caterpillar Equipment for Mining
MINING INVESTMENT EVOLUTION CATERPILLAR EQUIPMENT FOR MINING Mining Investment US$ Billion Units $10 617 627 592 600 563 515 $8 482 500 416 $6 376 400 360 323 281 300 249 $4 234 215 192 165 166 173 200 131 $2 98 100 57 7 16 16 $0 0 2018 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200
Slide 15: Mining Projects Portfolio US$ 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: Heavy Construction Industry Evolution
Units 0 500 1000 1500 2000 2500 Nov-08 1455 1452 Ene-09 1390 1267 Mar-09 1209 1145 May-09 1047 970 Jul-09 932 840 Set-09 799 776 Nov-09 800 820 Ene-10 771 789 Mar-10 826 842 May-10 909 987 Jul-10 1030 1099 Set-10 1193 1264 Nov-10 1285 1345 Ene-11 1379 1429 Mar-11 1557 1602 May-11 1685 1705 Jul-11 18
Slide 17: Main Investment Projects in Construction
MAIN INVESTMENT PROJECTS IN CONSTRUCTION Source: Apoyo Consultoría
Slide 18: Financial Performance
ULLAL Financial Performance ‘Ferreycorp
Slide 19: Financial Results
FINANCIAL RESULTS Million soles (S/ mm) SALES AND GROSS MARGIN SALES AND ADM EXPENSES +8% 5,211 90.0% 100.0% 4,856 4,843 80.0% 90.0% 80.0% 70.0% +6% 70.0% 60.0% +8% 60.0% +9% 50.0% 797 808 856 50.0% 40.0% 40.0% 1,231 1,341 216 30.0% 199 30.0% N 20.0% 20.0% 10.0% 24.3% 24.1% 24.1% 23.5% 25.2% 16.4% 1
Slide 20: Financial Results: Net Income and Net Margin
FINANCIAL RESULTS Million soles (S/ mm) NET INCOME AND NET MARGIN NET INCOME Q1’19 +42%% 140.0 10.00% 9.00% -16% 120.0 17 19 8.00% 9 40.00% 3 6.9% 267 100.0 10 7.00% 35.00% 230 51 6.00% N 225 30.00% 80.0 5.30% +42% 5.00% 25.00% 60.0 20.00% 4.00% 92 92 65 15.00% 40.0 3.00% 65 6.9% 10.00% 2.00% 4.7% 5
Slide 21: EBITDA
EBITDA Million soles (S/ mm) EBITDA Q1’19 +39% 250.0 30.00% 61 25.00% 200.0 183 110 0.1 16 19 0.4 20.00% 150.0 N 132 IFRS 16: S/ 13mm 13.6% 15.00% 100.0 10.70% 10.00% 50.0 5.00% 0.0 0.00% Q1'18 Δ Sales Δ COGS Δ SG&A Δ Other income Δ D&A Δ Financial 1Q'19 Positive variations (expenses) income Negativ
Slide 22: Investment in Assets
INVESTMENT IN ASSETS Million soles (S/ mm) ACCOUNTS RECEIVABLE EVOLUTION INVENTORY EVOLUTION -6% +26% 1,217 1,194 1,772 1,852 1,125 1,126 1,800 83 1,200 1,111 25 32 87 45 28 1,600 1,393 1,472 80 1,000 1,400 87 1,233 92 794 767 1,200 104 800 459 1,000 548 600 1,192 1,162 468 1,080 1,098 800 1,031 400
Slide 23: Fixed Assets and Cash Cycle
FIXED ASSETS AND CASH CYCLE Million dollars (US$ mm) CAPEX CASH CYCLE 152 148 156 160 163 145 145 144 29 145 149 143 4 136 39 128 126 129 128 3 12 25 15 6 3 77 71 71 71 17 9 70 70 68 67 5 59 54 54 55 57 53 53 28 51 5 17 4 1 4 8 2 -1 3 -7 -6 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 -21 Cash cy
Slide 24: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) DEBT BY CURRENCY 5.9% 1.2% 0.1% DIVERSIFIED FUNDING BASE Soles Quetzales Pesos Chilenos 2.86 2.73 3.20 2.73 Dolares 800 700 607 0.00 92.8% 584 600 521 60 502 42 500 53 100 53 -5.00 75 100 400 161 100 300 -10.00 DEBT BY RATE 200 447 389 307 327 -15
Slide 25: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million dollars (US$ mm) AVG COST OF DEBT 4.12% 4.20% DEBT MATURITY 3.67% 196 3.43% 190 2016 2017 2018 1Q'19 81 48 FINANCIAL EXPENSES 27 Million soles (S/ mm) 140 8.00% 130 125 7.00% 120 2019 2020 2021 2022 2023 110 6.00% 100 90 85 +66% 5.00% 80 73 70 4.00% 60 3.00% 50 40
Slide 26: Ferreycorp in the Capital Market
Ferreycorp in the Capital Market
Slide 27: Ferreycorp in the Capital Market
1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70 2/01/2017 16/01/2017 30/01/2017 13/02/2017 27/02/2017 13/03/2017 27/03/2017 10/04/2017 24/04/2017 8/05/2017 22/05/2017 5/06/2017 19/06/2017 3/07/2017 17/07/2017 31/07/2017 14/08/2017 28/08/2017 11/09/2017 25/09/2017 9/10/2017 23/10/201
Slide 28: 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 29: Corporate Governance and Sustainability
Corporate Governance and Sustainability
Slide 30: 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 31: 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 32: Contact information
Contact information: Patricia Gastelumendi: patricia.gastelumendi@ferreycorp.com.pe Elizabeth Tamayo: Elizabeth.Tamayo@ferreycorp.com.pe