Slide 1: Corporate Presentation
Corporate Presentation February 2018
Slide 2: Company Overview
Company Overview
Slide 3: Highlights
HIGHLIGHTS Established in Peru in 1922 95 years of business, 75 years of alliance with CAT currently operating 17 companies within 10 countries employing a workforce of +6,000 employees Key facts 60% Caterpillar Market Share Market cap (Feb-2018) ~$770MM Shareholders +2,500 SHAREHOLDER C
Slide 4: History of the Corporation
HISTORY OF THE CORPORATION 00’s Complementary 10’s International businesses (economic expansion: CAT and sectors, business other brands 90’s Organizational lines) development to take opportunities arising from large mining 80’s Redefining 2018 business: focus on capital goods 2010 70’s Move operatio
Slide 5: Corporate Structure
CORPORATE STRUCTURE BVL: FERREYC1 Caterpillar dealers and allied Caterpillar dealers and other businesses Other subsidiaries in Peru and brands in Peru in Central America abroad Guatemala Chile, Colombia , Ecuador, Perú El Salvador Belice Nicaragua El Salvador, Honduras
Slide 6: Ferreycorp at a Glance
FERREYCORP AT A GLANCE As of Dec 2017 Caterpillar dealers and Caterpillar dealers and other Other subsidiaries in (S/. Million) allied brands in Peru businesses in Central America Peru and abroad Sales 3,598 461 785 % of Total Sales 74% 10% 16% EBITDA 475 40 8 % of Total EBITDA 91% 7.6% 1.5% EBITDA
Slide 7: Strategy: Complete Value Proposition
STRATEGY COMPLETE VALUE PROPOSITION Machinery Agriculture Services business Automotive Consumables business
Slide 8: Key Capabilities
ULL Key Capabilities ‘Ferreycorp
Slide 9: Key Capabilities
KEY CAPABILITIES 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 10: Presence in South and Central America Representing Leader Brands
PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS
Slide 11: Market Coverage
MARKET COVERAGE Ferreyros: 6 locations in Lima, 17 branches and Tumbes offices Trompeteros Iquitos Talara Jaén Unimaq: main location in Lima and 8 branches in Piura, Cajamarca, Lambayeque, Trujillo, Piura Bagua Huancayo, Arequipa, Cusco e Ilo. 3 Offices in Lambayeque Cajamarca Tarapoto Cerro de Pasc
Slide 12: Unmatched Logistics Capabilities
UNMATCHED LOGISTICS CAPABILITIES 890,000 m2 170+ US$120M 365 DAYS TO SERVE OUR CUSTOMERS POINTS OF CONTACT INVENTORY OF PARTS 24x7 OPERATIONS • 50+ warehouses, several located in remote locations (eg: • ISO9002 certification mines) • ISO 14000 certification • 7,000 yearly trips to reach our customer
Slide 13: Innovation and Technology
INNOVATION AND TECHNOLOGY The journey: from peripherals to “mission critical” TBA Market specialist Integrated information Value creation Integrated services Challenge: To make the Software solution provider most out of the different emerging technologies and apply it to value creation Technology in
Slide 14: Innovation and Technology
INNOVATION AND TECHNOLOGY Construction Surface mining by Underground mining Transportation
Slide 15: Sustainability Stakeholders
SUSTAINABILITY STAKEHOLDERS Standard Environmental Management System based Ferreycorp Program for Professional Development - on the ISO 14001 standard Ferreycorp Association Comprehensive Policy on Health, Safety and the Heavy Machinery Operators Club Community Environment Environment Thin
Slide 16: Corporate Standards: Strong Corporate Governance
CORPORATE STANDARDS STRONG CORPORATE GOVERNANCE • Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962. • Ferreycorp is included in the Corporate Governance Index of the Lima Stock Exchange since its inception in 2008. Board of Directors: • The last General Annual Meeting agreed to
Slide 17: Caterpillar Market Share in Peru
CATERPILLAR MARKET SHARE IN PERU Heavy Construction Open pit mining Hyundai Bomag Sandvik 3% 1% Atlas Copco 6% SEM Haam 9% 1% Otros 4% Case 5% 0% P&H Doosan 6% 3% Volvo 6% Komatsu 9% Caterpillar Komatsu Caterpillar 70% 14% 56% John Deere US$ FOB Values In units Rolling 12 mo, Dic‘17 7% Rolling 12 mo
Slide 18: Financial Performance
ULLAL Financial Performance ‘Ferreycorp
Slide 19: Sustainable Business Model
SUSTAINABLE BUSINESS MODEL SALES BY LINE OF BUSINESS • In a context of poor momentum in mining investment and delayed infrastructure US$1.9Bn 2,000 US$1.7Bn projects 1,800 US$1.6Bn 1,600 US$1.4Bn US$1.4Bn • Resilient business model 1,400 US$ Millones 1,200 • Stable product support business 1,000 800
Slide 20: Operational Results
OPERATIONAL RESULTS -5.49% Million Soles (S/ mm) 3,125 2000 359 3000 2,752 438 514 2,558 1800 2500 466 1600 568 515 2,166 564 18.8% 1400 2000 667 359 1200 614 587 1500 1,088 564 1000 704 MACHINERY 1000 1,045 800 642 1,074 704 600 500 400 98 131 955 539 144 142 382 574 539 200 353 161 0 134 59 0 39 2
Slide 21: Sales by Group of Companies
SALES BY GROUP OF COMPANIES Million Soles (S/ mm) CAT dealers and other businesses in CA • Caterpillar dealers in Peru (74% of total sales): +6.6% driven by spare parts and services (62% of total revenues) and Ferreyros 1.3% mining equipment (+52%) 140.0% 455 461 120.0% -1.3% • The companies that ca
Slide 22: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS Million Soles (S/ mm) SALES AND GROSS MARGIN 5,333 50.0% HIGHLIGHTS 5,225 45.0% -0.3% 40.0% 35.0% • Resilient business model 4,878 4,856 30.0% 4,843 • Successful execution of operational priorities 25.0% • Consistent EBITDA generation and margin 22.9% 24.2% 24.3% 24.1%
Slide 23: Investment in Assets
INVESTMENT IN ASSETS Million Soles (S/ mm) ACCOUNTS RECEIVABLES EVOLUTION INVENTORY EVOLUTION -1.4% +13% 1,109 1,580 1,561 1,200 1,125 1,600 49 58 1,379 1,393 1,005 45 80 920 1,400 1,233 1,000 862 48 371 402 70 92 31 1,200 104 800 36 389 444 1,000 382 600 800 1,080 1,029 889 957 600 1,160 400 826 1,
Slide 24: Investment in Assets
INVESTMENT IN ASSETS Million Dollars (US$ mm) CAPEX EVOLUTION CASH CYCLE 44 152 148 148 152 45 145 145 9 30 35 23 6 -5 3 25 19 128 128 129 5 126 127 126 15 15 28 27 5 16 11 17 -3 -1 77 -5 -11 67 72 73 70 70 -15 -27 -10 53 54 51 54 -25 46 47 -35 2013 2014 2015 2016 2017 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
Slide 25: Cash Flow
CASH FLOW Million Soles (S/ mm) FREE CASH FLOW 95 40 82 398 181 Operating cash flow Capex Intangible assets Financial expenses Free cash flow 2017 Positive variations Negative variations 25
Slide 26: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million Dollars(S/ mm) DEBT BY CURRENCY 2% 9% 0% DIVERSIFIED FUNDING BASE Soles Quetzales 3.28 3.50 2.67 2.86 2.73 Pesos Chilenos 800 731 Dolares 700 640 589 0.00 89% 600 170 123 521 502 93 53 • 500 -5.00 75 Natural hedge: revenue-debt 400 325 295 161 100 295 -10.00 300 D
Slide 27: Consolidated Financial Debt
CONSOLIDATED FINANCIAL DEBT Million Dollars(S/ mm) AVG COST OF DEBT 4.65% 4.40% 4.36% 4.12% DEBT MATURITY 3.35% 268 2013 2014 2015 2016 2017 137 FINANCIAL EXPENSES Million Soles S/ mm) 8.0% 140 130 125 42 120 103 106 7.0% 29 23 110 97 6.0% 1 100 90 85 5.0% 80 4.0% 2018 2019 2020 2021 2022 2023 70 60
Slide 28: Profitability Ratios
PROFITABILITY RATIOS 16.0% 14.3% 14.6% 13.2% 13.5% 13.2% 13.3% 12.2% 12.8% 11.8% 11.9% 11.6% 11.6% 11.9% 11.5% 10.8% 8.1% 7.7% 7.1% 6.3% 6.1% 6.2% 6.2% 5.5% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 ROE ROA ROIC • ROIC: EBITLTM / Invested Capital (total equity + financial net debt): affected b
Slide 29: Ferreycorp in the Capital Market
FERREYCORP IN THE CAPITAL MARKET SHAREHOLDERS COMPOSITION AS OF DEC 2017 Capital S/. 975,683,029 Nº of shares 975,683,029 Local pension Foreign funds Dividend Yield 2016 (div 0.128457) 7.6% investors 32% 35% Peruvian investors 33% MAIN SHAREHOLDERS AS OF DEC 17 Holder % 2.8 STOCK PERFORMANCE 2016-20
Slide 30: 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 amount to be
Slide 31: Ferreycorp
-Ferreycorp