Presentación de PowerPoint - ferreycorp.com.pe · Bagua Iquitos Trujillo Huaraz Chimbote Lima Ica Puno Puerto Maldonado Ayacucho Cusco Pucallpa Tarapoto Arequipa Huancayo Cerro de

Corporate PresentationJune 2018

Company Overview

• Established in Peru in 1922.• 95 years of business, 75 years of alliance with CAT.

Currently operating 17 companies within 10 countriesemploying a workforce of +6,000 employees.

• Key facts:• 60% Caterpillar Market Share• Market cap (May-2018) ~ $790MM• Shareholders +2,500

SHAREHOLDER

STRUCTURE

CONSISTENT FINANCIAL

PERFORMANCE

5,2254,878

5,3334,856 4,843 4,976

588 522 667 583 567 578

11.3%10.7%

12.5% 12.0% 11.7% 11.70%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

2013 2014 2015 2016 2017 2018 LTM

Ventas EBITDA Margen EBITDA

(S/. Millones)

HIGHLIGHTSFERREYCORP

Fondos de pensión locales

35%

Inversionistas locales

32%

Inversionistas extranjeros

33%

HISTORY OF THE CORPORATION

1922

Ferreycorp

foundation (former

Ferreyros S.A.A.)

40’s

Caterpillar

90’s

Debt Issuance:

corporate bonds

and securitization

of comercial

papers.

1920 1930 1940

1950

1970

1980

1990

2000

2018

2010

50’s Geographical

expansión:

establishment of

branches in Peru.

90’s Organizational

development to take

opportunities arising from

large mining.

00’s Complementary

businesses (economic

sectors, business lines)

1960

00’s Establishment

of policies and

procedures

regarding

corporate

governance.

10’s

Shares issuance

Bonds issuance in the

international market.

Reorganization: Ferreycorp

70’s Move

operations to Av

Industrial

facilities.

80’s Redefining

business: focus on

capital goods.

10’s International

expansión: CAT and

other brands.

60’s Development of

complementary

businesses.

60’s

Registry in Lima

Stock Exchange

Caterpillar dealers and allied

brands in Peru

Guatemala

El Salvador

Belice

Caterpillar dealers and other businesses in

Central America

El Salvador, Honduras

Nicaragua

Chile, Colombia , Ecuador, Perú

Other subsidiaries in Peru and

abroad

CORPORATE STRUCTUREBVL: FERREYC1

Caterpillar dealers and allied

brands in Peru

Caterpillar dealers and other

businesses in Central America

Other subsidiaries in Peru

and abroad

FERREYCORP AT A GLANCE

Sales

% of Total Sales

EBITDA

% of Total EBITDA

EBITDA Margin

# of Employees

As of 1Q’18

(S/. Millon)

909 109 213

74% 9% 17%

113 9 10

86% 7% 7%

12% 8% 5%

4,386 810 1,160

(*) Third group of companies increasing their share in total sales: 2013(10%), 2014 (11%), 2015

(12%), 2016 (15%), 2017 (16%) – as a result of diversification strategy through complementary

businesses.

STRATEGYCOMPLETE VALUE PROPOSITION

Machinery

Agriculturebusiness

Automotivebusiness

Consumables

Services

Key Capabilities

KEYCAPABILITIES

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

PRESENCE IN SOUTH AND CENTRAL AMERICAREPRESENTING LEADER BRANDS

Tumbes

Piura

Lambayeque Cajamarca

Bagua

Iquitos

Trujillo

HuarazChimbote

Lima

Ica

Puno

Puerto Maldonado

Ayacucho

Cusco

Pucallpa

Tarapoto

Arequipa

Huancayo

Cerro de Pasco

Talara

Tacna

Huánuco

MINING, CONSTRUCTION AND ENERGY PROJECTS.

Ilo

Trompeteros

Yauli

Jaén

MARKET COVERAGE

Ferreyros: 6 locations in Lima, 17 branches and

offices.

Unimaq: Main location in Lima and 8 branches in

Piura, Cajamarca, Lambayeque, Trujillo, Huancayo,

Arequipa, Cusco e Ilo. 3 offices in Cerro de Pasco,

Andahuaylas and Ayacucho.

Orvisa: Main office in Iquitos and 2 branches in

Pucallpa and Tarapoto. 4 Offices in Huánuco, Bagua,

Jaén and Madre de Dios.

Motored: 2 locations in Lima and 3 branches in

Arequipa, Trujillo and Cajamarca.

Soltrak: Main location in Lima and 7 branches in

Talara, Trujillo, Arequipa, Huancayo, Huánuco,

Pucallpa and Loreto.

UNMATCHED LOGISTICS CAPABILITIES

• 50+ warehouses, several located in remote locations (eg:

mines)

• 7,000 yearly trips to reach our customers.

• Importing 530,000 ft3 per month.

• Highest standards in operations and transportation

partners.

• ISO9002 certification

• ISO 14000 certification

• 5-star contamination control

365 DAYS24x7 OPERATIONS

890,000 m2TO SERVE OUR CUSTOMERS

170+POINTS OF CONTACT

US$120MINVENTORY OF PARTS

365 DÍAS24x7 OPERATIONS

890,000 m2TO SERVE OUR CUSTOMERS

170+POINTS OF CONTACT

US$120MINVENTORY OF PARTS

INNOVATION AND TECHNOLOGY

Value creation

2013 2014 2015 2016 2017 …

Trimble provider / distribution channel

Technology integrator

Software solution provider

Integrated services

Integrated information

Market specialist

TBA

The journey:from peripherals to “mission critical”

Challenge: To make the most out of the

different emerging technologies and

apply it to value creation.

RFID, Big data, data mining, machine

learning, autonomous operations,

business intelligence, internet of things,

etc.

SUSTAINABILITYSTAKEHOLDERS

Ferreycorp Program for Professional Development -

Ferreycorp Association

Heavy Machinery Operators Club

Think Big Program

Works for taxes

Corporate volunteering

Mutually beneficial and long-term relationships.

Wide range of products and services with the highest

added value for customers

Excellence in after sales service

Proactive monitoring of the customers experiences

Complaints management

Ferreycorp is a member of the United Nations Global

Compact Network

Every year, the Corporation published a Progress

Report about actions implemented consistently with

ubjects included in the ten principles of the UN

Compact Network

Hiring policy: transparency and fair treatment

Select suppliers based on: quality of product or service,

price, delivery terms, human resources policies and

practices, occupational health and safety programs.

Formalization and development of local suppliers

Community

Customers

Government

and Society

Suppliers

Environment

Employees

Shareholders

Standard Environmental Management System based

on the ISO 14001 standard

Comprehensive Policy on Health, Safety and the

Environment

Environmental Management Programs: planning,

training and awareness, operational control and

verification.

Health, safety and working conditions

Professional development

Diversity and inclusion

Compliance with labor norms

Personal and family development

Principles of Good Corporate Governance

Respect of Shareholders’ rights

Transparent and timely reporting

Efficient representation with our Board of Directors

CORPORATE STANDARDSSTRONG 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 reduce the board

members from 10 to 9 members.

• The Board of Directors of Ferreycorp is complemented by three

committees: LEAD BY INDEPENDENT DIRECTORS

Nominations, Remuneration, Corporate Governance and

Sustainability Committee

Audit and Risk Committee

Innovation and Systems Committee

Composition of the Board:

Independent Directors Dependent Directors

Jorge Ganoza Oscar Espinosa

Humberto Nadal Carlos Ferreyros

Gustavo Noriega Juan Manuel Peña

Javier Otero Andreas von Wedemeyer

Manuel Bustamante

Recognitions

• Key of the Lima Stock Exchange: 2008, 2011, 2012, 2013 and 2017.

• Member of the Companies Circle of the Latin America launched by

OECD and IFC

• International recognitions: World Finance Award 2011 and 2012;

Latin America Investor Relations Awards 2011 (LirA’11), Ethical

Boardroom Corporate Governance Awards 2015: South America,

Industrial services sector, Dow Jones Sustainability Index (2017)

CATERPILLAR64%

KOMATSU18%

P&H7%

ATLAS COPCO4%

SANDVIK5%

HITACHI2%

Open pit mining

CATERPILLAR81%

SANDVIK13%

ATLAS COPCO4%

JOY1%

SCHOPF1%

CATERPILLARMARKET SHARE IN PERU

Underground Mining

CATERPILLAR52%

KOMATSU15%

VOLVO8%

JOHN DEERE6%

HYUNDAI5%

HAMM4%

DOOSAN2%

JCB2%

BOMAG1% LIUGONG

1%

Otros4%

Heavy Construction

CATERPILLAR59%

JOHN DEERE

12%

KOMATSU5%

JCB5%

HYUNDAI3%

WACKER NEUSON

2%

CASE2%

DOOSAN2%

VOLVO2%

HITACHI1%

HIDROMEK1%

General Construction

In units Rolling 12 meses,

Mar 2018

US$ FOB Values

Rolling 12 meses, Mar 2018

US$ FOB Rolling 12 meses,

Mar 2018

US$ FOB Rolling 12 meses,

Mar 2018

Financial Performance

SUSTAINABLE BUSINESS MODEL

VENTAS POR LÍNEA DE NEGOCIO• In a context of poor momentum in mining

investment and delayed infrastructure

projects

• Resilient business model

• Stable product support business

• Diversification strategy through business

lines, presence in different economic

sectors, different countries, various

represented brands and a diversified

portfolio of products. -

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q'17 1Q'18

SALES BY LINE OF BUSINESS

-

29%

52%

11%

8%

US$1.9Bn

US$1.7BnUS$1.6Bn

US$1.4Bn US$1.4Bn

31%

50%

9%

10%Machines

Spare and services

Rental and used

Others

52%33%

6%9%

US$334MMUS$380MM

US$ MM

955382 574 539 353

1,088

1,0741,045

704642

568

587667

564614

514

515466

359438

0

500

1000

1500

2000

2500

3000

2013 2014 2015 2016 2017

CAT mining trucks and equipment Allied Equipment

CAT machines and engines for other sectors Rental and used

2,752

2,166

OPERATIONAL RESULTS

23 26167 168

149 164104 134

0

200

400

600

800

1000

1200

1400

1Q'17 1Q'18

1,7141,935

2,203 2,247 2,372

0

500

1000

1500

2000

2500

2013 2014 2015 2016 2017

552 634

0

200

400

600

800

1000

1200

1400

1Q'17 1Q'18

385 384 378 444 425

0

100

200

300

400

500

600

700

800

900

1000

2013 2014 2015 2016 2017

105 1030

100

200

300

400

500

600

700

800

900

1000

1Q'17 1Q'18

MACHINERY

SPARE PARTS

AND SERVICES

OTHER LINES

3,125

2,558

Million de soles (S/ mm)

+11.1%

-5.49%

+15.39%

+5.56%

-1.7%

-4.28%

2,047

443 492

SALES BY GROUP OF COMPANIESMillIion soles (S/ mm)

CAT dealers and allied brands in Peru

CAT dealers and other businesses in CA

Other subsidiaries in Peru and abroad

• CAT dealers and allied brands in Peru (74% of sales): +16%

- spare parts and services: +23% (63% of sales of this group)

- rent: +45% - north reconstruction

- used: +25% - sales of used trucks

• CAT dealers and other businesses in CA (9% of sales): -13.6%.

Affected by economical and political situation.

• Other subsidiaries in Peru and abroad (17% of sales): +12.3%.

Greatest incomes Motored and Trex

20

940887

783

909

24.8% 26.0% 25.3% 24.9%10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

3Q'17 4Q'17 1Q'17 1Q'18

Gross margin

+16%

97129 126

109

25.6% 23.8% 24.4% 23.4%0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

3Q'17 4Q'17 1Q'17 1Q'18Gross margin

-13.6%

198 191 190213

15.8% 16.3% 18.2% 17.2%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

3Q'17 4Q'17 1Q'17 1Q'18

Gross margin

+12.3%

N

SALES AND GROSS MARGIN

NET PROFIT AND NET MARGIN EBITDA AND EBITDA MARGIN

CONSOLIDATED FINANCIAL RESULTS

5,3334,856 4,843

1,099 1,231

24.2% 24.3% 24.1% 24.0% 23.5%10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

2015 2016 2017 1Q'17 1Q'18

Sales Gross Margin

161230

266

62 65

3.0% 4.7% 5.5% 5.7% 5.3%0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2015 2016 2017 1Q'17 1Q'18

667 583 567

120 132

12.50% 12% 11.70% 11% 10.70%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2015 2016 2017 1Q'17 1Q'18

Million soles (S/ mm)

+12.0%

+4.4%+9.7%

SALES AND ADM EXPENSES

820 797 808

185 199

15.4% 16.4% 16.7% 16.8% 16.2%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2015 2016 2017 1Q'17 1Q'18

Sales and adm expenses % of sales

+7.9%

N

UTILIDAD NETA Y MARGEN NETO

FINANCIAL RESULTS

161

230

266

62 65

3.0% 4.7% 5.5% 5.7% 5.3%0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2015 2016 2017 1Q'17 1Q'18

Million soles (S/ mm)

+4.4%

UTILIDAD NETA 1T’17 VS 1T’18

Positive variations

Negative variations

62.411.6

6.315.0

0.30.9

0.8

65.1

5.70%5.3%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Q1'17 Δ EBITDA Δ Financial exp

Δ Gain(loss) to FX

Δ D&A Δ Share of profit of

associated

Δ Income tax

1Q'18

+4.4%%

Gasto

financ.

Dif en

cambio

Part en

asociad

Imp a la

renta

INVESTMENT IN ASSETS

• Common practice, 30 days for collection once invoice is delivered

to customer.

• Accounts receivables affected by mining equipment invoicing to

mining customers.

ACCOUNTS RECEIVABLES EVOLUTION

9571,080 1,029 1,071

1,162

48

45 80 4132

0

200

400

600

800

1,000

1,200

2015 2016 2017 1Q'17 1Q'18

Short Term Long Term

+7.3%

1,194

920747 857

690926

389

382444

421

459

70

104

92

106

87

0

200

400

600

800

1,000

1,200

1,400

1,600

2015 2016 2017 1Q'17 1Q'18

Machinery and others Spare Parts Consumables

1,379

1,233

1,393

1,217

1,472

Million soles (S/ mm)

1,0051,125 1,109 1,112

+21%

INVENTORY EVOLUTION

• Machinery and others are already closed and will be delivered in

the following months.

CAPEX

• 2017 CAPEX: Infrastructure and equipment executed in the new

CRC in Arequipa.

• Intangible assets during the 1Q’18: US$ 3.3mm for ERP SAP

implementation.

FIXED ASSETS AND CASH CYCLEMillion dollars (US$ mm)

CASH CYCLE

Targets:

Inventory Payable Receivable

120 days 45 days 45-60 days

3.0x

2817

27

6 2

3

5

-11

3 4

-1

-27 -10

3

-3

-31

-21

-11

-1

9

19

29

39

2015 2016 2017 1Q'17 1Q'18

Infrastructure Equipment and components Rental fleet

12

30

-5

6

3

148 145152

145 144

7370 77 70 71

53 54 51 54 55

127 128 126 129 128

1Q'17 2Q'17 3Q'17 4Q'17 1Q'18

Ciclo de caja Días de cobro Días de pago Día de inventario

-75%

201307 327 356

295161 100 100

9353

75 71

2.67 2.86 2.73 2.79

-20.00

-15.00

-10.00

-5.00

0.00

0

100

200

300

400

500

600

700

800

2015 2016 2017 1Q'18

Banks Bonds Caterpillar Net Debt / EBITDA

589521 502

CONSOLIDATED FINANCIAL DEBTMillion dollars (US$ mm)

DIVERSIFIED FUNDING BASE

DEBT BY CURRENCY

1%

99%

Variable rate

Fixed rate

DEBT BY RATE

Variable rate

Fixed rate

5.9% 1.2%

0.1%

92.8%

Soles

Quetzales

Pesos Chilenos

Dolares

527

DEBT MATURITY

FINANCIAL EXPENSES

AVG COST OF DEBT

Strategy of financing: short term, flexible without penalties and low

interest rate. Availability of credit lines.

4.65%

4.12%

3.35%

3.11%

2015 2016 2017 1Q'18

106

125

85

2014

2.0%2.60%

1.80% 1.90%1.10% 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

2015 2016 2017 1Q'17 1Q'18

Financial expenses Financial expenses (% of sales)

2017: gasto financiero afectado por Premium de S/ 4.9 mm por pre

pago parcial en noviembre 2017

CONSOLIDATED FINANCIAL DEBTMillion dollars (US$ mm)

Million soles (S/ mm)

297

41

137

29 23 1

2018 2019 2020 2021 2022 2023

SHAREHOLDERS COMPOSITION AS OF MAR 2018

STOCK PERFORMANCE 2017-2018 (S/)

FERREYCORPIN THE CAPITAL MARKET

Nº of shares

Capital

975,683,029

S/. 975,683,029

MAIN SHAREHOLDERS > 4% AS OF MAR 18

Dividend Yield (div 0.1354654234) 5.4%

Holder %

Onyx Latin America Equity Fund LP 6.00%

RI-Fondo 2 (Prima AFP) 7.00%

RI-Fondo 3 4.25%

IN-Fondo 2 (AFP Integra) 5.70%

IN-Fondo 3 (AFP Integra) 5.09%

PR-Fondo2 4.84%

PR-Fondo3 4.25%

Local pension funds35%

Peruvian investors

32%

Foreign investors

33%

1.5

1.7

1.9

2.1

2.3

2.5

2.7

1/0

1/2

017

16/0

1/2

017

31/0

1/2

017

15/0

2/2

017

2/0

3/2

017

17/0

3/2

017

1/0

4/2

017

16/0

4/2

017

1/0

5/2

017

16/0

5/2

017

31/0

5/2

017

15/0

6/2

017

30/0

6/2

017

15/0

7/2

017

30/0

7/2

017

14/0

8/2

017

29/0

8/2

017

13/0

9/2

017

28/0

9/2

017

13/1

0/2

017

28/1

0/2

017

12/1

1/2

017

27/1

1/2

017

12/1

2/2

017

27/1

2/2

017

11/0

1/2

018

26/0

1/2

018

10/0

2/2

018

25/0

2/2

018

12/0

3/2

018

27/0

3/2

018

11/0

4/2

018

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 distributed every year is approved in the Annual Shareholders Meeting.

The 2013 Shareholders Meeting approved to increase the upper limit from 50% to 60% of freely available profits.

The 2018 Shareholders Meeting modified the policy of distributing interim dividends.

PeriodCash dividend

(*)

%

Dividend / Net

Profit

Cash dividend per share

(%)

Dividend per share

(S/.)

2003 9.1 50% 4.46% 0.0446

2004 11.9 48% 5.50% 0.055

2005 13.3 49% 5.50% 0.055

2006 28.4 36% 11.00% 0.110

2007 40.2 35% 13.20% 0.132

2008 20.7 29% 5.50% 0.055

2009 28.0 31% 6.00% 0.066

2010 31.8 26% 6.00% 0.066

2011 41.9 29% 6.00% 0.060

2012 48.1 30% 6.00% 0.060

2013 55.7 60% 5.90% 0.059

2014 60.8 52% 6.00% 0.060

2015 87.3 60% 8.87% 0.0887

2016 124.4 60% 12.8457% 0.128457

2017 132.1 55% 13.5465% 0.135465

(*) In million(**) Upper Limit: 60%