Ferreycorp Saa · BVL:FERREYC1
Ferreycorp Saa — Ferreycorp — Investor Presentation (February 2023)
29 slides from Ferreycorp Saa's investor presentation, February 2023
Slide 1: Corporate Presentation Ferreycorp
Corporate Presentation Ferreycorp February 2023 hacemos posible el años, desarrollo de los lugares en los que estamos.
Slide 2: Overview of the Company
Overview of the Company • Ferreycorp was established in 1922 focusing in 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 the capital goods field. • In the same deca
Slide 3: 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 4: Ferreycorp Strategy and Capabilities
Ferreycorp Strategy and Capabilities
Slide 5: Corporation´s strategy
Corporation´s strategy Business model Role of Parent Role of subsidiary Shared services center Company companies STRATEGIC COHERENCE STANDARDIZATION AND OPERATIONAL AUTONOMY EFFICIENCIES ❑ Business vision ❑ Customer proximity and ❑ Strategic planning ❑ Standardization of market coverage and definiti
Slide 6: Corporate Structure
Corporate Structure BVL: FERREYC1 Caterpillar Dealers and Allied Caterpillar Dealers and Other Other Subsidiaries in Peru and Brands in Peru Businesses in Central America Abroad Chile, Colombia , Ecuador, Perú Guatemala, Belice ... El Salvador El Salvador, Honduras
Slide 7: Results achieved by the organization
Results achieved by the organization (S/. Million) Caterpillar Dealers and Allied Caterpillar Dealers and other Other Subsidiaries in Peru brands in Peru businesses in Central America and Abroad Sales 5,102 677 814 % of Total Sales 77.4% 10.3% 12.3% EBITDA 748 91 80 % of Total EBITDA 81.4% 9.9% 8.7%
Slide 8: Sales by Group of Subsidiaries
Sales by Group of Subsidiaries Sales by Group of Subsidiaries ( Sales by Group of Subsidiaries 1,885 (S/ millons) 1,778 1,708 1,691 200 1,653 1,601 1,582 1,552 243 1,477 240 190 200 1,439 262 1,434 1,341 1,372 232 165 215 1,302 274 143 171 1,236 1,207 1,231 1,2721,269 201 102 1,220 130 1,243 237 209
Slide 9: Ferreycorp Strategy
Ferreycorp Strategy BUSINESS PILLARS Optimize Seeks to add efficiencies in the business model, the organization, the business use of assets, and the composition of products and services portfolio. Ensure business sustainability, expand it´s value offer, and provide Protect & comprehensive solutions
Slide 10: 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 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 EPIROC SANY 12% 3% 2% HYUNDAI 4% KOMATSU JOHN DEERE 26% 5% CATERPILLAR 49% VOLVO CATERPILLAR 11% 71% KOMATSU 17% In Units US$ FOB Rolling 12 mo, Dec 2022 Rolling 12 mo, Dec 2022 Undergro
Slide 12: Supported by current Mining customers: 50% of sales
Supported by current Mining customers: 50% of sales Large Open Pit Medium Size and Underground 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 Ya
Slide 13: Increasing Caterpillar mining trucks and shovels population over the years
Increasing Caterpillar mining trucks and shovels population over the years Mining Investment Caterpillar Mining Trucks and Shovels Population Units US$ Bn $12 762 800 746 725 702 $10 660 700 642 619 592 $8 600 543 517 $6 500 453 404 $4 366 400 323 $2 281 300 249 234 215 192 $0 165 166 173 200 131 98
Slide 14: Leverage our sales
Leverage our sales Open Pit Mining Sales Mining Investment US$ Million Machines, Spare parts and Services US$ Bn 800 12000 700 10000 139 600 150 161 87 8000 500 343 119 143 179 314 160 400 136 6000 205 300 572 137 528 4000 500 490 200 407 401 361 354 325 325 268 2000 229 100 198 0 0 2010 2011 2012 2
Slide 15: Resilient Business Model
Resilient Business Model Sales by Business Line • Spare parts and services support business. US$ MM US$ 2.000 US$ 1.9Bn US$ US$ US$ • Diversification strategy through business 1.2 Bn 1.7Bn US$ US$ 1.8 Bn US$ 1.7 Bn 1.6Bn US$ US$ US$ 1.6 Bn US$ 1.6 Bn lines, presence in different economic sectors, 1.
Slide 16: Reflected in strong financial results
Gross Margin Adj. 4Q2021 = 24.7%, 4Q 2022 = 25.1% Operating Margin Adj. 4Q 2021 = 11.1% ; 4Q 2022 = 9.5% Ebitda Margin Adj 4Q 2021 = 14.4% ; 4Q 2022 = 12.5% Reflected in strong financial results Million soles (S/ mm) Sales Margins 28,8% 26,9% +8% 25,6% 25,2% 25,7% 6.593 6.112 +10% 16,4% 16,5% 15,4%
Slide 17: NET INCOME
NET INCOME In Million Soles (S/ mm) NET INCOME 4Q2022 30 34 13 1 4 16 151 139 4Q'21 Δ Share of profit of Δ D&A Δ Gain(loss) to FX Δ EBITDA Δ Financial exp Δ Income tax 4Q'22 Positive variations associated Negative variations 17
Slide 18: Net Profit impacted by FX Loss
Net Profit impacted by FX Loss Net Profit, Margin and FX Loss (In million S/) 419 40,00 % 420 376 35,00 % 370 320 267 30,00 % 245 270 225 25,00 % 220 20,00 % 144 170 15,00 % 120 10,00 % 70 5,50% 6,15% 6,35% 4,30% 4,20% 2,96% 5,00% 20 25 34 -1 -30 -59 0,00% 2017 2018 2019 2020 -106 2021 -125 2022 201
Slide 19: Liquidity and working capital trends
Liquidity and working capital trends Cash Balance Target: 50% - 50% 252 199 (In million US$) Debt Maturity (In million US$) 291 Non- 120 Current Current 105 104 100 51% 49% 74 77 59 51 49 50 45 48 93 81 68 29 Mar'20 Apr'20 May'20 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Sep'21 Dic'21 Mar'22 Jun'22 Set'22
Slide 20: Financial expenses and controlled average cost of debt
Financial expenses and controlled average cost of debt Financial Expenses Average cost of debt (In million S/) 14 0 8,0% 0 13 0 7,0% 0 12 0 11 0 10 0 95 95 6,0% 0 90 3,67% 80 73 5,0% 0 3,43% 3,53% 70 4,00 % 60 52 3,13% 50 2,77% 3,0% 0 2,0% 50 40 1,4% 1,6% 2,0% 0 30 20 0,8% 0,8% 1,0% 0 10 0 0,0% 0 20
Slide 21: Controlling main assets and CAPEX
Controlling main assets and CAPEX Account Receivables (In million S/) +26% 1,221 1,330 Capex 1,147 1,036 1,055 38 (In million US$) 26 32 61 40 31 1.195 1.115 1.292 3 975 1.015 38 2 43 50 29 4 4 49 2018 2019 2020 2021 2022 12 25 12 6 34 Short Term Long Term 3 36 17 2 7 28 8 10 4 5 18 Inventories 8 11
Slide 22: Important Investment in Assets
Important Investment in Assets Total Assets Cash Cycle (In million S/) (Days) +4% 210 198 203 198 193 176 170 165 169 200 5.987 126 278 118 6.249 3 163 163 161 193 189 155 157 158 24 187 153 6.000 180 173 165 2,5 155 159 156 156 5.000 149 149 150 152 150 2 4.000 76 67 63 64 64 69 1,5 62 56 62 57 57
Slide 23: Sustainability Program
ULL Sustainability Program ‘Ferreycorp
Slide 24: SUSTAINABILITY
SUSTAINABILITY Positive Relations with all Stakeholders • Good Corporate Governance Principles • Ferreycorp Association. • Respect for the rights of shareholders • Ferreyros’ Heavy Equipment Operators Club • Transparent and timely delivery of information • Think Big Program • Effective representatio
Slide 25: Dow Jones Results 2017-2022 by Dimension
Dow Jones Results 2017-2022 by Dimension 80 72 70 70 68 61 60 56 57 56 54 49 51 50 46 44 44 41 40 38 36 30 30 20 10 7 0 Governance & Economic Enviromental Dimension Social Dimension Dimension 2017 2018 2019 2020 2021 2022
Slide 26: Ferreycorp
-Ferreycorp
Slide 27: Public Investment focused on small projects mainly managed by subnational goverments and G2G
Public Investment focused on small projects mainly managed by subnational goverments and G2G
Slide 28: Mining Sector Investments
Mining Sector Investments Peru’s social conflicts, regulatory risks and low business confidence are constraining investments in the country’s mining sector and reducing its growth MINING: NEW PROJECTS AND EXPANSIONS THAT ARE UNDER CONSTRUCTION INVESTMENT BEGGINING OF PRODUCTION USEFUL LIFE N° PROJEC
Slide 29: Mining Sector Investments
Mining Sector Investments MINING: PROJECT THAT WILL BEGIN CONSTRUCTION BY 2025 INVERSIÓN INICIO DE INICIO DE VIDA ÚTIL N° PROYECTO EMPRESA UBICACIÓN ESTADO ACTUAL METALES TIPO DE MINA (US$ MILLONES) CONSTRUCCIÓN PRODUCCIÓN (AÑOS) 4 Resposición Antamina Antamina Áncash 1604 Feasibility 2023 2029 Copp