Post on 31-Aug-2019
• 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
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
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%