Slide 1: Earnings Call Second Quarter 2023
EARNINGS CALL SECOND QUARTER 2023 August 1st, 2023
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 Q2 ‘23 HIGHLIGHTS 1 Q2 ‘23 CONSOLIDATED OPERATING RESULTS 2 Q2 ‘23 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2023 5 APPENDIX 6
Slide 4: Q2 '23 Highlights
Q2 '23 HIGHLIGHTS
Slide 5: Highlights: Relevant events
Q2 ‘23 HIGHLIGHTS Relevant events INVERSIONES PIURANAS LAUNCHED A TENDER OFFER TO BUY 9.5% OF OUTSTANDING VOTING SHARES PERU’S ANNUAL GENERAL INFLATION REACHED 6.7%, AND 12.9% FOR THE FOOD AND BEVERAGE COMPONENT1 LOWER HOUSEHOLD DISPOSABLE INCOME LED TO MARKET CONTRACTIONS IN KEY CATEGORIES 1 Source
Slide 6: Key performance indicators: focus on core tier products
Q2 ‘23 HIGHLIGHTS Key performance indicators We are on track to recover historical GROSS PROFIT PER MT1 PEN levels of profitability through +5% strategic initiatives: DESPITE THIS 1,011 995 995 1,042 839 CHALLENGING CONTEXT, Focus on core tier products OUR STRATEGY OF FOCUSING ON CORE TIER Reevaluat
Slide 7: Related party transaction: Refinería del Espino
Q2 ‘23 HIGHLIGHTS Related Party Transaction Refinería del Espino manufactures and distributes a Leading position in eastern Peru wide range of consumer products such as: EDIBLE OILS SHORTENINGS ALIGNED WITH OUR The potential transaction mainly includes the EFFICIENT CAPITAL consumer goods business A
Slide 8: Q2 '23 Consolidated Operating Results
Q2 '23 CONSOLIDATED OPERATING RESULTS
Slide 9: Consolidated revenue Q2 '23 vs Q2 '22
Q2 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated REVENUE – Q2 '23 vs. Q2 '22 Q2 PERFORMANCE SUMMARY – REVENUE PEN million -8% 7,247 CONSOLIDATED REVENUE 6,695 DECREASED YoY 3,904 -14% EXPLAINED BY LOWER VOLUME SOLD 874 3,372 -6% 3,030 -133 519 DESPITE THIS, OUR 5 -90 41 2,853 REVENUE PER METRIC TO
Slide 10: Consolidated gross profit Q2 '23 vs Q2 '22
Q2 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated GROSS PROFIT – Q2’ 23 vs. Q2’ 22 Q2 PERFORMANCE SUMMARY – GROSS PROFIT CONSOLIDATED GROSS PEN million -16% PROFIT DECREASE 1,350 EXPLAINED BY THE PERFORMANCE OF OUR 1,141 CRUSHING BUSINESS, WHILE OUR CGP, B2B AND -11% AQUAFEED UNITS 698 +2% RECOVERE
Slide 11: Consolidated EBITDA Q2 '23 vs Q2 '22
Q2 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q2 '23 vs. Q2 '22 Q2 PERFORMANCE SUMMARY – EBITDA PEN million -37% 840 YoY DECREASE IN CONSOLIDATED EBITDA IS 533 MAINLY EXPLAINED BY -30% 422 THE PERFORMANCE OF 94 -9% OUR CRUSHING 328 -9 -20 -3 4 -3 297 297 0 BUSINESS AND SG&A ONE-OFF IMP
Slide 12: Consolidated net income Q2 '23 vs Q2 '22
Q2 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated NET INCOME – Q2 '23 vs. Q2 '22 Q2 PERFORMANCE SUMMARY – NET INCOME PEN million -69% -38% 302 142 -119 - Crushing: -93 NET INCOME DECREASE - Other businesses: -26 MAINLY EXPLAINED BY 2 -3 95 8 LOWER OPERATING 77 89 PROFIT IN OUR CRUSHING BUSINESS PAR
Slide 13: Q2 '23 Operating Results by Business
Q2 '23 OPERATING RESULTS BY BUSINESS
Slide 14: Consumer Goods Peru: Update on Market Dynamics
Q2 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics REVENUE PER MT, GDP AND PRIVATE CONSUMPTION MARKETS & SHARE OF VOLUME YoY growth, in% 24.8 KWP KWP 24.5 Market total core 21.5 growth2 WE CONTINUE TO 19.9 segments3 segments3 17.3 14.8 OUTPERFORM GDP AND Mayonnaise -
Slide 15: Consumer Goods Peru: Q2 Performance
Q2 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q2 Performance REVENUE EBITDA1 & EBITDA MARGIN PEN million PEN million -4% -8% Q2 ‘23 REVENUE 2,062 1,974 270 249 DECREASED DUE TO -12% -6% LOWER VOLUME AS A 1,093 143 134 960 RESULT OF MARKET CONTRACTIONS 13.1% 14.0% 13.1% 12.6% Q2 ’22 Q2 ’2
Slide 16: Consumer Goods International: Market Dynamics
Q2 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics MARKETS & SHARE OF VALUE – MA’23 vs MA’22 Market Value Volume WE CONTINUE GROWING ▪ We are now market leaders in the detergents category growth and volume continues to growth in our home care Bleaches -13.2% +5.0 p.p.
Slide 17: Consumer Goods Bolivia: Q2 Performance
Q2 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q2 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million 5% -92% REVENUE INCREASED DUE 334 351 16 TO HIGHER HOME CARE 5% -83% VOLUME AND PRICE 174 182 9 INITIATIVES 19.7% 17.8% 20.0% 17.5% 2 1 HOME CARE CONTINUE
Slide 18: Consumer Goods Ecuador: Q2 Performance
Q2 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q2 Performance REVENUE EBITDA1 & EBITDA MARGIN PEN million PEN million 19% -17 108 -6 5 REVENUE GROWTH 11% 90 2 5.3% DRIVEN MAINLY BY PRICE 3.4% 51 56 -8.0% -11.2% ACTIONS AND OUR GO- TO-MARKET AND BRAND -4 -12 DEVELOPMENT Q2 ’22 Q2 ’23 YT
Slide 19: B2B: Update on Market Dynamics
Q2 ‘23 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics OUT-OF-HOME CONSUMERS1 RESTAURANT CONSUMERS BY SCENARIO1 Index 2019=100 YoY change in % 6.5 OUT-OF-HOME Index 2019=100 91 6.0 2023: 78 79 2024: [79 – 85] CONSUMPTION STILLS 75 76 72 73 70 69 59 4.0 BELOW PRE-PANDEMIC 44 42 49 LEVELS
Slide 20: B2B: Q2 Performance
Q2 ‘23 OPERATING RESULTS BY BUSINESS B2B: Q2 Performance REVENUE EBITDA & EBITDA MARGIN PEN million PEN million -10% WE STAY FOCUSED ON -3% 1,324 130 SUSTAINING STRONG 1,195 -4% 126 MARGINS PER METRIC -13% 77 74 701 TON DESPITE MARKET 611 CONTRACTIONS 11.0% 12.2% 9.8% 10.5% Q2 ’22 Q2 ’23 YTD ’22 YTD
Slide 21: Aquafeed: Update on Market Dynamics
Q2 ‘23 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics1 YoY % growth US$ MM MT K SHRIMP EXPORTS – ECUADOR SALMON EXPORTS – CHILE SHRIMP: PRICES AT ITS +81% +43% +29% -2% +3% -5% +35% +32% +29% +19% +7% LOWEST LEVEL SINCE 2,500 1,607 1,545 1,747 1,794 1,567 1,611 1,661 2,500 1,644 1
Slide 22: Aquafeed: Q2 Performance
Q2 ‘23 OPERATING RESULTS BY BUSINESS Aquafeed: Q2 Performance REVENUE EBITDA & EBITDA MARGIN USD million USD million +9% +5% 503 45 47 463 +6% REVENUE GROWTH +6% 29 27 EXPLAINED BY PRICE 253 268 ACTIONS IN BOTH 10.6% 9.8% 9.4% 10.6% SHRIMP AND SALMON BUSINESSES AND THE Q2 ’22 Q2 ’23 YTD ’22 YTD ’23
Slide 23: Crushing: Q2 Performance
Q2 ‘23 OPERATING RESULTS BY BUSINESS Crushing: Q2 Performance Internal Consumption Third Parties (reported) VOLUME SOLD REVENUE GROSS PROFIT Thousands of MT USD million DECREASED MAINLY -33% -16% 286 EXPLAINED BY LOWER 364 53 CRUSH MARGINS 69 307 193 78 +13% 53 -1% 233 WE WERE STILL FACING 295 229 -
Slide 24: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 25: Leverage
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage INDEBTEDNESS EVOLUTION1 WE INCREASED OUR LEVERAGE TO FINANCE 3.9 3.0 TOTAL CASH CURRENT WORKING 2.5 2.5 2.8 CAPITAL NEEDS FOR OUR 5,098 PEN 537 million 4,590 3,974 4,033 4,107 CRUSHING BUSINESS, AS A RESULT, LEVERAGE Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’2
Slide 26: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 27: Our View for 2023: Guidance
OUR VIEW FOR 2023 Guidance REVENUE EBITDA CAPEX LEVERAGE FLAT TO LOW APPROXIMATELY APPROXIMATELY 2.8x NET DEBT/EBITDA SINGLE DIGIT 15% YoY USD 76 MM DECREASE DECREASE EXCLUDING AQUAFEED USD 145 MM INCLUDING AQUAFEED 27
Slide 28: Earnings Call Second Quarter 2023
EARNINGS CALL SECOND QUARTER 2023 August 1st, 2023
Slide 29: Appendix
APPENDIX
Slide 30: Credit rating as of Q2'23
SOLID LIQUIDITY AND STRONG BALANCE SHEET Credit rating CREDIT RATING AS OF Q2’23 Global Local 1 BBB / Stable = AAA / CP1+ / Stable = AAA / ML1+ / Negative = BAA / Positive = Alicorp Alicorp Industrias de S.A.A. S.A.A. Aceite S.A. Baa3 / Negative = AA = Industrias de Aceite S.A. 1 PCR rates Alicorp B
Slide 31: Working capital – Cash conversion cycle
SOLID LIQUIDITY AND STRONG BALANCE SHEET Working capital – Cash conversion cycle (CCC) WORKING CAPITAL1,2 Days 139 130 133 124 127 Accounts Payable 3 WE PARTIALLY OFFSET THE INCREASE IN DAYS IN 112 116 INVENTORY AND 107 109 110 Inventories RECEIVABLES, BY PERFORMING SEVERAL WORKING CAPITAL 32 32 32
Slide 32: Total Debt Breakdown
APPENDIX Total Debt1 Breakdown DEC ‘22 MAR ‘23 JUN ‘23 S/ 4,973MM S/ 5,317MM S/ 5,635MM 7.2% 31.5% 6.3% 31.2% 5.6% International Bonds 32.9% By Source1 Local Bonds Working Capital Debt 32.7% 24.7% 26.5% LT Bank Debt 2.9% 16.0% Leases (IFRS 16) 20.5% 24.3% 19.7% 18.0% 22.0% 23.7% 22.6% By Currency2,3
Slide 33: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO PEN million 1,521 1,585 1,627 1,445 1,320 EBITDA LTM Alicorp’s financial guidelines aim at: 321 317 315 329 347 Net Financial Expense 1. Maintain investment grade rating 6.5 6.1% 6.1% 6.1% 6.0 5.7% 2. Control financial expenses 5
Slide 34: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX3 PEN million PEN million 300 7.0 % ▪ Inventory growth of S/ 357 million was mainly explained by the seasonality of our crushing business. 250 6.0 % ▪ Payables decrease of S/ 391 million was mainly explained by lower commodity price
Slide 35: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS OF CASH FLOW EVOLUTION PEN million 3,500 3,000 Cash Flow used in Operations Cash Flow used in Investing1 Cash Flow from Financing 2,500 S/ -699 S/ -149 S/ 445 2,000 1,500 340 868 1,000 178 500 940 245 121 782 600 479 537 537 238 241 0 149 Net Cash Cash used i
Slide 36: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,4 OPERATING & FREE CASH FLOW CONVERSION1,4 (PEN Million) 2021 2022 Q2 2023 2 140% 120% 106% 2 FY 2021 FY 2022 Q2 2023 100% 80% 65% 1,722 60% 40% 90% 1,460 40% 38% 23% 20% 0% 0% 861 Operating Cash Flow / EBITDA Free Cash Flow / EBITDA 522 507 3
Slide 37: Q2 '23 Milestones
APPENDIX Q2 ’23 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION AMARÁS Hair Care – Consumer Goods Peru Launch of “Magia Andina” the new line that intensively restores very damaged hair with a mix of super ingredients. BOLIVAR Detergents – Consumer Goods Peru Launch of “Bolivar Protecc
Slide 38: Slide 38