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Corporate
Presentation
March, 2018
1
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 Company, based
on assumptions that, as of today, are considered valid. Financial and business projections are
estimates and do not constitute any declaration of historical facts. Words such as “anticipates”,
“could”, “may”, “can”, “plans”, “believes”, “estimates”, “expects”, “projects”, “pretends”, “probable”,
“will”, “should”, and any other similar expression or word with a similar meaning pretend to identify
such expressions as projections. It is uncertain if the anticipated events will happen and in case they
happen, the impact they may have in Alicorp’s or The Consolidated Company’s operating and financial
results. Alicorp does not assume any obligation to update any financial or business projections
included in this presentation to reflect events or circumstances that may happen.
2
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
3
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
3
1Fino and ADM Bolivia are the leading vertically - integrated
CPG and B2B platform in Bolivia
ADM
Bolivia
Top producer and marketer of oils and fats in Bolivia
Market share leader across products, with significant presence in B2B industrial fats
and historically average 15%1 EBITDA margins
Largest distribution network in Bolivia, reaching ~25k POS, which represents ~60% of
the market
Leading crushing player in Bolivia, with strong logistic capacity for the purchase, store and
crushing of grains
Consolidated annual sales ~ US$440mm
Product portfolio2
Edible oils
Lard
Margarine
Laundry soap
Strategic fit with Alicorp
Portfolio expansion
Access to new segments in the consumer
market
Brand extensions and products development
B2B penetration
>40%
>50%
>60%
>25%
x% Market share
Bolivia
Bolivia
ADM
Bolivia
Source: Company Information – not audited management figures1 Based on values calendarized to December and average of historical figures for the last 5 years2 Doesn´t include laundry detergents nor Alicorp´s distribution products.
Alicorp has the track-record and scale to significantly grow the CPG business in Bolivia
5
Process Update Independent Committee´s role
In final stages of due diligence (accounting, tax, legal
and business) on Fino and ADM Bolivia
Continuous monitoring of Fino and ADM Bolivia’s
recent performance
On-going discussions on transaction terms and
conditions with the counterparty
Recent Events
January 15: Announcement of the potential
acquisition of Fino and ADM Bolivia
January 15 – 22: Roadshow meetings with investors and
research analysts
January 24: Call to a General Extraordinary Shareholders’
Meeting for February 22
February 14: Release of the transaction update
presentation and Q417 and full-year 2017 results
February 19: Full-year 2017 Earnings Call
February 22: Extraordinary General Shareholders´ Meeting
Evaluating and analyzing the potential transaction´s
terms & conditions, including fair value, seeking for
i) Alicorp´s interests, ii) compliance with the applicable
law, and iii) a positive impact on the company
Verifying Alicorp management's proposals regarding
the potential transaction, and requiring the necessary
information to the company for its evaluation and
analysis
Hiring external consultants for assistance to
accomplish their duties
The Ad Hoc Independent Committee’s constitution purpose
is to represent Alicorp´s shareholders by:
M T W T F S S
01/15 01/16 01/17 01/18 01/19 01/20 01/21
01/22 01/23 01/24 01/25 01/26 01/27 01/28
01/29 01/30 01/31 02/01 02/02 02/03 02/04
02/05 02/06 02/07 02/08 02/09 02/10 02/11
02/12 02/13 02/14 02/15 02/16 02/17 02/18
02/19 02/20 02/21 02/22
1 Process Update and Next Steps
Power delegation was approved by Alicorp´s
Extraordinary General Shareholders´ Meeting, and
depending on the evaluation and analysis carried out
with its advisors, the Ad Hoc Independent Committee
may or may not approve the potential transaction
6
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
7
Romero Group; 45.8%
Pension funds; 26.1%
Inv. & mutual funds; 17.3%
Other; 10.8%
5,818 6,283 6,580 6,629
7,101
741 481 722 802 901
12.7% 7.7%
11.0% 12.1% 12.7%
2013 2014 2015 2016 2017
Revenue EBITDA EBITDA Margin
Ownership structure
Business overview
Strong growth track record
(PEN million)
1 EBITDA and EBITDA Margin for 2013 accounted S/ 683.8 million and 11.8% respectively, ex extraordinary benefits from REFIS
2 EBITDA and EBITDA Margin for 2014 accounted S/ 688.4 million and 11.0% respectively, ex extraordinary losses of S/ 207.5 million
Source: Cavali as of February 12, 2017
Revenue CAGR 2013-2017: 5.1%
2Alicorp is a leading consumer branded products
company in Peru and South America…
1 2
Consumer Goods
Food, home & personal care products
Peru Argentina EcuadorBrazil
Edible Oils
Sauces
Laundry Care
Cookies & Crackers
Pasta
Personal Care
58
Fish Feed
Aquaculture
Shrimp and fish feed
Shrimp Feed
Ecuador PeruChile
2
B2B
Bakeries, industrial products and food
service
Peru
Industrial Sauces
Ind. Baking Flour
Ind. Margarines
Shortenings
45
Business
Platforms
Key
Categories
# of Brands
Direct
Presence
8
Consumer Goods Peru
54%
.Consumer Goods
International 0.5%
Aquaculture28%
B2B18%
Consumer goods Peru
37%
Consumer goods
International16%
Aquaculture25%
B2B Branded Products
22%
Commodity purchasing
Go-to-market strategy
Brand management
Strategic M&A
Product development
105 brands in 13 countries & exports to 9 countries
33 new products launched & revamped in 2016
42 new products launched & revamped in 2017
Economies of scale and centralized platform
…By jointly leveraging through its competitive advantages and strategic initiatives
250K POS for traditional channel2
366 POS for modern channel3
6 acquisitions since 2012
Health & wellness products
Plant consolidation &
automation
Continuous costs saving
program
Co
mp
eti
tive
Ad
va
nta
ge
s
Str
ate
gic
In
itia
tive
s
Diversified revenue base – 2017
Revenues: S/ 7,101 million EBITDA: S/ 901 million
Diversified EBITDA base – 20171
Alicorp carries a diversified portfolio and maintains leadership in all of its business units…
1 EBITDA calculation per business ex unassigned corporate expenses.2Information provided by the Consumer Goods Peru division.
3Includes Supermarkets and Cash & Carrier
2…with a well-defined strategy that provides sustainable
growth rates…
9
2012
25 28
43 43
33
42
2010 2011 2012 2013 2014 2015 2016 2017
Selected products launched in FY 2017
Successful new product launch strategy, with 246 launches since 2010
Growth focused on core and next-to-core platforms
(# of products)
Growth through Mergers & Acquisitions
International AcquisitionsDomestic Acquisitions
20122004 2005 2006 2007 2008 2010 2011 2013 2014
Domestic
Consumer Goods Peru Consumer Goods
InternationalB2B
Aquaculture
2 …both organic and inorganic
ACTUALIZADO
10
Alicorp is the leading consumer goods company, competing with global and local players, such as
Procter & Gamble, Unilever, Mondelez, Nestle, Carozzi, among others
Ranked #1 in over 10 product categories1
1 Alicorp has +50% of the market share.2 Based on consolidated Revenue FY 2017.3 FY 2017. Calculation per business ex unassigned corporate expenses4 Total CGP/ Consolidated Revenue5 Total CGP/ Consolidated EBITDA
37.4% 4 55.4% 5
2In Consumer Goods Peru (CGP), we are market leaders in
almost every category in which we participate
ACTUALIZADO
Source: Kantar World Panel
Category Brands Position % of sales2 % of EBITDA3 Competitors
Laundry Detergents #1 8.0% 19.3%
Edible Oils #1 7.8% 9.5%
Pasta #1 5.4% 6.0%
Cookies & Crackers #1 3.6% 0.4%
Mayonnaise & other
Sauces#1 2.9% 7.3%
Laundry Soap #1 1.9% 4.2%
Cereals #1 1.3% 1.7%
Margarines #1 1.1% 2.3%
Household Flour #1 1.0% 2.3%
Dessert #1 0.9% 2.2%
111Includes Detergents and Laundry Soap
Pre
miu
mM
ain
str
ea
mV
alu
e
Market and customer segmentation allows a more efficient pricing process and pass-through of
commodities price increases
Product classification
Edible Oils Pasta Laundry Care1 Cookies & CrackersFlour
2…thanks to a strategy that focuses on effective market
and customer segmentation…
12
Consumer Goods Peru: Go-to-Market model1
1 Data as of February 201721Data: All from Dec' 17, except for Margarines (Nov´17), Juice powders (Nov´17), Mayonnaise (Oct´17), Laundry Soap (Aug´17) and Jelly (Oct´17).3 As measured by market penetration in each category against Alicorp’s closest competitor
TR
AD
ITIO
NA
L C
HA
NN
EL
A
L
I
C
O
R
P
Average
Sales ticket
S/ 7,250
Average
Sales ticket
S/ 10,000
Non-Exclusive
distributors
Wholesalers
Direct distribution
Indirect distribution
S
H
O
P
P
E
R
25%
10%
17%
MO
DE
RN
Supermarkets
366 Stores
Average
Sales ticket
S/ 150
Exclusive
distributors
48%
Superior availability of Alicorp’s products in the
marketplace2.3
2…and to our unique model of distribution that reaches all
channels
Alicorp Competitor
63.0
55.7
58.4
39.0
0.5
88.0
88.7
63.7
85.9
82.5
Pasta
Edible Oils
JuicePowders
Margarines
Mayonnaise
39.0
90.4
83.1
0.6
52.0
94.3
93.7
99.5
Jelly
Cookies &Crackers
LaundryDetergents
LaundrySoap
13
1 Alicorp has +50% of the market share.2 Based on consolidated Revenue FY 2017.3 FY 2017. Calculation per business ex unassigned corporate expenses4 Total B2B/ Consolidated Revenue5 Total B2B/ Consolidated EBITDA
Category Brands Position % of sales2 % of EBITDA3 Competitors
Industrial Baking Flour #1 8.0% 3.0%
Industrial Oil #1 6.4% 7.4%
Shortenings #1 2.2% 3.3%
Ranked #1 in main categories1
22.0 %4 18.3% 5Source: Kantar World Panel
2 Likewise, in B2B we are also market leaders…
ACTUALIZADO
14
Category Brands Position1 % of sales2 Competitors
Brazil
Pasta #1 4.4%
Argentina
Hair Care #2 2.4%
Laundry Detergents #3 1.7%
Skin Care #2 1.3%
Ecuador
Pasta #3 0.5%
Cereals #3 0.1%
Bolivia
Laundry Detergents #3 0.2%
Laundry Soap #3 0.2%
2Meanwhile, in Consumer Goods International (CGI), we
continue to grow in relevance and brand recognition
Alicorp’s business model has proven to be successfully replicable in other countries
1 Alicorp has ~35% of market share in pastas (Area II in Brazil) and [15% -25%] of Market Share in Personal Care (Argentina). 2 Based on consolidated Revenue FY 2017.3 Total CGI/ Consolidated Revenue
ACTUALIZADO
One of the largest consumer goods companies in Latin America
16.1%3Source: Nielsen NRI
15
2Finally, in Aquaculture, we differentiate among our
competitors thanks to constant innovation and quality
Category Brands Position % of sales2 Competitors
Shrimp
Ecuador #1 13.3%
Peru #2 0.9%
Nicaragua #2 0.5%
Honduras #3 0.4%
Panamá #3 0.2%
Costa Rica #1 0.1%
Fish
Chile #4 8.0%
Peru #1 0.7%
One of the largest aquaculture companies in Latin America1
1 In shrimp feed more than 50% of market share in Peru and Costa Rica, while more than 30% in Ecuador. In fish feed we have +10% of market share in Chile 2 Based on consolidate FY 2017.3 Total Aquaculture/ Consolidated Revenue
Source: Internal Estimates
We are leaders in the Shrimp Feed market in Ecuador and Peru and the 4th largest competitor in
the Fish Feed Market in Chile (Salmon)
22.0%3
ACTUALIZADO
16
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
171 Area II of Brazil: Minas Gerais, Espirito Santo and Rio de Janeiro suburbs2 Related to the reduction of Working Capital needs
3 Excludes one shots expenses related to the implementation of those initiatives
ST
RA
TE
GIC
PIL
LA
RS
“Smart Growth”
• Focus on Core Categories
Edible Oils, Detergents,
Pastas and Sauces
• Continuous innovation to:
i) sustain leadership in key
categories
ii) entry in new markets
People
PERU ANDEAN & BRAZIL1 AQUACULTURE
Shrimp
Feed
Core
Categories
Innovation
“One Alicorp” Mindset• Transfer knowledge across the organization
• Leverage corporate capabilities
• Share best practices among business and geographies
Special
Diets1
Efficiencies
“Implementing an
efficiency-driven
culture across the
organization”
Significant impact in 2017 on
Revenue, COGS and Net
Income
6422
12711
20
-10
Gross to Net Manufacturing Procurement Distribution CCC Others FY 2017Savings
Growth
3Alicorp’s Strategy focuses on three Pillars: Growth,
Efficiencies and People
233(PEN Million)
REVENUE GROSS PROFIT NET INCOME
3
2
ACTUALIZADO
18
3Our 2017 Business Accomplishments aligned with our
Growth Pillar (1/2)
Efficiency
People
CG
P
Innovation / R&D
B2
B
Innovation / R&D
New Categories
Canned
Tuna
Region Expansion
Go To Market
FY Results 2017
FY Results 2017
Stain
Remover
Baby &
Kids
Creation of the new
Channel Value
Revenue
Growth
Gross
Margin
Revenue
Growth
Gross
Margin+1.9 p.p
+6.2%
Mega Brands
Revenue
Growth
Gross
Margin
EBITDA
Margin-0.5 p.p
+0.6 p.p
+3.2%
“Alpesa”
Salad
Dressing
“Alacena”
Mustard
“Blanca
Nieve”
Industrial
Flour
Food Service Categories
Growth outside Lima
Industrial
Sauces
Pasta
Bulk
Oil
EBITDA
Margin+1.4 p.p
Growth
1 Gross Margin: (Revenue – COGS) / Revenue
1
ACTUALIZADO
Launches &
Revamped
25 Products
+14.4%
+1.8 p.p
~14.0%
~8.0%
~3.0%
19
Efficiency
People
Potential Inorganic Expansion into Bolivia
An
de
an
Bra
zil
Aq
ua
cu
ltu
re
Portfolio Optimization
Value-added Products New Markets
Bolivia
FY Results 2017
-0.9%Revenue
Growth
+6.5 p.pGross
Margin
+2.8 p.pEBITDA
Margin
XX% Market share
+21.6%Revenue
Growth
+3.5 p.pGross
Margin
+2.1 p.pEBITDA
Margin
FY Results 2017
Nicovita
Finalis
Special
Diets
3Our 2017 Business Accomplishments aligned with our
Growth Pillar (2/2)
Lard >50%Edible Oil >40% Margarine >60%Laundry
Detergent>25%
Revamped Value Segment
“Santa Amalia”
Semolina based Pasta
+50 TMk of
production
capacity
Market
Share
Numeric
Distribution
Growth
ACTUALIZADO
+1.3 p.p
-1.8 p.p
20
3Our 2017 Accomplishments aligned with our Efficiency
Plan
2019 Goals
Organic Top line
growth of 6.5%
(CAGR 17’-19’)
EBITDA Margin
13.5% to 14.5%
NI Margin
5.5% to 6.5%
ROIC
13.0% to 13.5%
Efficiency
People
Growth
Key InitiativesImplementation
Phase
NE
T I
NC
OM
E (
NI)
RE
VE
NU
EC
OG
SS
G&
A
▪ Pricing Strategy: Focus on maximizing marginal
Revenue
▪ Gross-to-Net: Reduction of sales discounts without
sacrificing volume
▪ Procurement: Generate savings via efficient sourcing
program
▪ Lean Manufacturing: Optimize and standardize our
industrial processes
▪ Logistics: Effective internal distribution of raw
materials and finished product
▪ Org. Structure: Right sizing for growth
▪ Go-to-Market Strategy: Reduction of commissions
and sales expenses
▪ Marketing ROI guidelines: Increase marketing
effectiveness without additional spending
▪ ERP and Data Analytics: Real-time analytics for key
decisions
▪ Working Capital: Improvement in Cash Conversion
Cycle
▪ Liability Management: Optimize capital structure
while reducing financial expenses
▪ Hedging Strategy: Minimize FX losses
Target
Date
Q4 2018
Q4 2018
Q4 2018
Q4 2018/19
Q3 2018
Q4 2019
Q2 2019
Q2 2019
Q4 2019
Q2 2018
Q2 2018
Q2 2018
ACTUALIZADO
21
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
22
ST
RA
TE
GIC
PIL
LA
RS
People
“One Alicorp” Mindset• Transfer knowledge across the organization
• Leverage corporate capabilities
• Share best practices among business and geographies
Efficiencies Procurement Manufacturing SG&A
Growth
4 What to expect for 2018?
60%
35%
5%
55%
30%
15%
PERU AQUACULTUREINTERNATIONAL
CGP
✓ Product Innovation
✓ Brand Extension
✓ New Categories
B2B
✓ Client Base
✓ Increase Penetration
✓ New Categories
Argentina
✓ Capture M.Share (%)
✓ Valuable brands
Brazil
✓ Portfolio Redesign
✓ Revenue Management
Shrimp
✓ R&D / Value added
✓ Hondura’s Full
implementation
✓ Special Diets
✓ Innovation Center
Salmon
“Profitability
Improvement”
• Procurement
• Lean Manufacturing
• Logistics
• Fit-For-Growth
• Go-To-Market (Brazil /
Peru)
• Marketing ROI
[PEN 80M – 100M] [PEN 75M – 95M]
20192018
23
We expect a consolidated top line growth during 2018 in order to remain in between 5.0% and 7.0%, on the back of:
i) sound performance of our businesses in Peru, ii) solid profitability improvement in the Aquaculture business, and
iii) higher expectations of our international operations
FY 2017
7.1%
12.7%
S/ 83.9 MM1
1.00x
6.4%
0.53
13.6%2
NET DEBT/EBITDA (x)
NET MARGIN (%)
REVENUE
GROWTH (PEN) (%)
EBITDA MARGIN (%)
CAPEX
EPS
ROIC (%)
CONSOLIDATED
GUIDANCE 2018
5.0% - 7.0%
13.0% - 13.5%
S/ 200 - 250 MM
0.60x - 0.80x
6.5% - 7.0%
0.55 – 0.60
13.5% - 14.0%
FY 2016
0.7%
12.1%
S/ 123.8 MM
1.66x
4.6%
0.35
10.8%
KEY CONCERNS
• The execution of
Peruvian Government
stimulus package and
Multiannual
Macroeconomic
Framework
• International growth
drivers, especially for
Brazil, and Argentine
restructuring
• FX and commodities
behaviors
• Raw material prices
volatility
4 Consolidated Guidance for FY 2018 under IAS 18 and 39
1 Excludes time deposits with maturity between 90 days and 360 days and mutual funds2 Excludes excess cash above industry prudent practices standards for operational cash
24
GDP growth in Peru should gain steam for 2018. However, we remain cautious and do not foresee a strong pick-up. In
the international front, Argentina has begun to grow again after several dismal years while Brazil’s recovery is seen
gaining speed for 2018. Finally, shrimp and fish feed’s markets are expected to stabilize in terms of growth
1 Exchange Rate as of December 2017 (against USD)2 FX Rates for 2018 (end of period) – Company estimates (against USD)3
USD/ARS FX expected Exchange Rate. ARS/PEN implied depreciation for 2018 (15.0%)4
USD/BRL FX expected Exchange Rate. BRL/PEN implied depreciation for 2018 (3.6%)5
USD/PEN FX expected Exchange Rate6 Range of revenue growth in PEN. 7 Considerate BRL/PEN depreciation of 3.6%8
Includes other international countries revenue growth 9
Aggregated forecast growth rate for Aquaculture markets considers the following expected growth rates: 8.9% for shrimp feed in Ecuador, 7.6% in Central America, and 3.8%
for Peru. Expected non-growth for salmon feed in Chile
CGP
3.5% - 5.5%
PE
RU
3.0% - 5.0%
B2B
-2.0% - -4.0%7
6.0% - 8.0%ARGENTINA
CG
I8
BRAZIL
AQUACULTURE
2.6%
2.9%
0.8%
Revenue Growth6GDP GROWTH FX - 20171
3.265
16.6
4.5%9 3.265 12.0% - 14.0%
3.19
FX - 20182
3.245
19.43
3.245
3.294
TOTAL 3.0% - 5.0%
4 Guidance FY 2018 by Business
25
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
26
193 219 225
722 802
901
11.1% 12.1% 12.1% 11.0% 12.1% 12.7%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
56 80 126
157
302
453
3.2%4.4%
6.8% 2.4% 4.6% 6.4%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY 2017
1,734 1,811 1,860
6,580 6,629 7,101
28.4% 30.1% 32.5% 28.4% 30.3% 32.1%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
▪ Total Revenue increased 2.7% YoY
▪ Gross Profit increased 10.8% YoY (+ S/ 58.8 million) while
Gross Margin reached 32.5% (+2.4 p.p.)
▪ EBITDA increased 3.0% YoY (+ S/ 6.6 million) while
EBITDA Margin reached 12.1% (remaining stable)
▪ Net income increased 56.9% YoY (+ S/ 45.7 million) while
Net Margin reached 6.8% (+ 2.3 p.p.)
REVENUE & GROSS MARGIN HIGHLIGHTS
NET INCOME & NET MARGIN EBITDA & EBITDA MARGIN
During Q4’17 we continued growing and improving in terms of profitability, although smoother than the past quarters of
2017. We expect this trend to steep back during 2018 based on: i) our strategic initiatives and efficiencies program and
ii) the macroeconomic recovery expectation in both Peru and LatAm
5 Q4 2017 Key Highlights
ACTUALIZADO
(PEN Million)
(PEN Million)
(PEN Million)
27
Moderate revenue growth in Q4 17’ explained by our Aquaculture business (+14.6%) and CGP (+2.2%), and higher profit
margins backed on lower commodity prices and our efficiencies initiatives
REVENUE
GROWTH
PR
OF
ITA
LIB
ITY
• Consolidated Revenue grew 2.7% YoY backed on: i) a 14.6% YoY increase in the Aquaculture
business mainly as a result of capturing market share in the Ecuador’s shrimp feed market, coupled
with an expansion within the market, and ii) a 2.2% YoY increase in the Consumer Goods Peru
business due to the core categories growth mainly in the economic segment
• Gross Margin reached 32.5% (+ 2.4 p.p. YoY) mainly explained by: i) lower raw material prices in
the Aquaculture business, ii) revenue management, design-to-value initiatives and lower raw material
prices in the Consumer Goods Peru Business, iii) a higher operating contribution from Food Service
Platform, and iv) savings in procurement and manufacturing, as a result of our efficiencies program
GROSS
PROFIT
EBITDA
• EBITDA margin reached 12.1% (stable) on the back of higher Gross Margin contribution from the
Aquaculture and Consumer Goods Peru businesses, partially offset by non-recurring expenses
associated to our efficiencies program
I
II
CONTINUOUS
INNOVATION
• Consumer Goods Peru (“CGP”): We launched/revamped 8 products, among these, the following
can be highlighted: i) the new orange flavored panettone under the “Blanca Flor” megabrand, in
order to strengthen the brand and wide its portfolio and ii) the “Chocobum Pop”, “Mini Glacitas”,
and “Margarita Mini” were launched in order to increase the category platform and gain market share
5 Q4 2017 Operational Highlights
ACTUALIZADO
28
Net income increased 56.9% YoY, boosted by better operational results coupled with lower Net Financial Expenses
WORKING
CAPITAL
• Cash Conversion Cycle, measured in LTM basis, improved to 7.4 days (as of December 2017)
from 37.4 days (as of December 2016), mainly due to better commercial conditions with suppliers
II
NET INCOME
• Net income reached S/ 125.9 million (+ 56.9% YoY), while Net Margin was 6.8% (+ 2.3 p.p. YoY)
• Lower financial expenses of S/ 28.7 million (- 84.1% YoY) and lower FX losses of S/ 5.8 million
(- 129.1% YoY)
• EPS increased to S/ 0.149 as of Q4 17’ from S/ 0.095 as of Q4 16’
CREDIT
RATING
• All credit ratings agencies have reaffirmed the investment grade with a "stable" outlook
• Local agencies, Apoyo & Asociados and Equilibrium, affirmed “AAA” rating for bonds and “CP+1” /
“EQL+1” ratings, respectively, for short-term instruments. Recently, the international agency, S&P,
affirmed “BBB-” rating for bonds
IV
• Net Debt-to-EBITDA ratio decreased to 1.00x as of December 2017 from 1.66x as of December
2016
• Net Debt1 decreased to S/ 898.8 million as of December 2017, from S/ 1,332.9 million as of
December 2016 (a S/ 434.1 million decrease)
• All-in cost of debt was 5.2% during Q4 17'
FINANCIAL
LEVERAGE
I
5 Q4 2017 Financial Highlights
III
1 Net Debt is Financial Debt minus cash and cash equivalents as of Q4 17’.
ACTUALIZADO
29
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
30
▪ Revenue and Volume increased by 2.2% YoY and 1.0% YoY
respectively, on the back of the growth in our core categories and
innovations
▪ Gross Margin increased by 1.3 p.p. YoY mainly explained by revenue
management and our efficiencies initiatives
▪ EBITDA reached S/ 120.6 million (+2.4% YoY) and EBITDA Margin
remain stable in 17.4% mainly explained by the increase in Gross Margin,
partially offset by higher SG&A
108 118 121
393
434
499
16.5% 17.4% 17.4%16.2% 17.4% 18.8%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
HIGHLIGHTS
REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN
Q4 2017 INSIGHTS
654 678 693
2,424 2,500 2,655
35.6% 38.1% 39.4%35.6% 38.1% 40.0%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
INNOVATION & POSITIONING
Category Rank1
Edible Oils #1
#1
Pasta #1
#1
Cereals #1
Jelly #1
Laundry
Detergents
MayonnaiseCookies &
Crackers
Panettone
6 Consumer Goods Peru
(PEN Million) (PEN Million)
Market share (Δ% YoY) > - 0.5 p.p. - 0.6 p.p. <Market share (Δ% YoY) < - 0.9 p.p. Market share (Δ% YoY) < -1.0 p.p.
1
31
▪ Revenue and Volume decreased by 1.4% and 3.7% YoY, respectively,
mainly explained by a price decrease of flours and nutritional inputs
categories
▪ Gross Margin increased by 2.3 p.p. YoY due to lower raw material prices
▪ EBITDA reached S/ 46.6 million (+1.7% YoY) and EBITDA Margin
reached 11.8% (+0.4 p.p. YoY)
HIGHLIGHTS
EBITDA & EBITDA MARGIN
PRODUCT INNOVATIONQ4 2017 INSIGHTS
376 403 397
1,459 1,512 1,561
20.6% 25.7% 27.9% 21.9% 25.3% 26.0%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
REVENUE & GROSS MARGIN
12
46 47
106
168 165
3.2%
11.4% 11.8% 7.3%11.1% 10.6%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
Industrial Wheat Subproduct
6 B2B
(PEN Million) (PEN Million)
32
▪ Revenue decreased by 7.5% YoY and volume increased by 1.9% YoY,
respectively. Revenue in Argentina and Brazil amounted S/ 119.1 million (+
5.6% YoY) and S/ 114.7 million (- 12.8% YoY), respectively
▪ Gross Margin increased by 1.1 p.p. YoY, mainly explained by Argentina´s
Gross Margin increase (+2.0 p.p. YoY)
HIGHLIGHTS
EBITDA & EBITDA MARGIN
PRODUCT INNOVATIONQ4 2017 INSIGHTS
317 302 280
1,280 1,185 1,146
32.3% 33.6% 34.6%32.3% 32.3% 34.8%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
25
13
75
40
4 7.8% 4.3% 0.0%5.8%
0.4%
3.4%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
REVENUE & GROSS MARGIN
Laundry
Soap
Huancaina
Sauce
6 Consumer Goods International
(PEN Million) (PEN Million)
33
459 513 644
1,785
2,150
2,389
0.78%-12.2%
-12.3%
-0.1% -1.4%-11.6%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
(ARS Million) (ARS Million)
FX USD/ARS1
FX USD/PEN1
15.46
3.40
15.67
3.29
FX PEN/ARS1 4.55 4.76
15.73
3.26
4.82
17.28
3.25
5.32
17.56
3.25
5.41
FX USD/ARS1
FX USD/PEN1
FX PEN/ARS1
17.56
3.25
5.41
15.46
3.40
4.55
9.26
3.19
2.91
14.76
3.38
4.37
10.17
3.32
3.06
16.56
3.26
5.08
▪ Revenue and Volume in Argentine Pesos increased in 25.3% YoY and 15.6% YoY, respectively. Explained by
a slight recovery in consumption coupled with a more aggressive marketing strategy
▪ EBITDA decreased in ARS 16.6 millions, while EBITDA margin decreased 0.1 p.p. YoY to – 12.3% YoY
1 Average FX rates for the period.
HIGHLIGHTS
REVENUE & EBITDA MARGIN
513
604 621
520
644
-12.2%
-10.5% -8.8%
-15.3%-12.3%
Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'
6 Consumer Goods International - Argentina
34
131 127 115
482 502 475
17.1% 12.9% 5.5%
11.8% 3.5% 6.7%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
(BRL Million) (BRL Million)
FX USD/BRL1
FX USD/PEN1
3.29
3.40
3.14
3.29
FX USD/BRL1
FX USD/PEN1
3.25
3.25
3.29
3.40
3.84
3.32
FX PEN/BRL1 0.97 0.96 FX PEN/BRL1 1.000.97
3.30
3.19
1.041.16
3.22
3.26
1.02
3.16
3.25
0.97
3.25
3.25
1.00
3.19
3.26
0.98
3.49
3.38
1.03
▪ Volume increased 1.3% YoY and Revenue in Brazilian Reals decreased 10.0% YoY. Driven by an aggressive
competition in the pasta market, coupled with consumption trends towards economic products
▪ EBITDA was BRL 6.3 million compared to BRL 16.5 million in Q4 16’, while EBITDA Margin decreased
7.5 p.p YoY to 5.5%
1 Average FX rates for the period
127 119 122 120 115
12.9% 7.0% 8.8% 5.3% 5.5%
Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'
HIGHLIGHTS
REVENUE & EBITDA MARGIN
6 Consumer Goods International - Brazil
35
▪ Revenue and Volume increased by 14.6% and 28.3% YoY, respectively. Revenue amounted S/ 490.2 million
and the Volume reached 139.6 thousand tons
▪ Gross Margin increased by 6.1 p.p. YoY to 25.1%, due to lower raw material prices
▪ EBITDA reached S/ 65.4 million (+ 31.5% YoY) and EBITDA Margin reached 13.3% (+ 1.7 p.p.)
HIGHLIGHTS
Q4 2017 INSIGHTS
387 428 490
1,418 1,430
1,740
20.3%19.0%
25.1% 19.2% 20.2% 23.7%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
51 50 65
191 181
257
13.2% 11.6% 13.3% 13.5% 12.7% 14.8%
Q4 15' Q4 16' Q4 17' FY2015
FY2016
FY2017
EBITDA & EBITDA MARGINREVENUE & GROSS MARGIN
6 Aquaculture
(PEN Million) (PEN Million)
36
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
37
Buy 78%
Hold 22%
Research Recommendation Recent Awards
Current Stock Price Consensus vs. Previous ALICORC1, EPU and BVL Benchmark – Mar 12th LTM
1Potential stock price appreciation against price market as of March 12 (PEN 11.25).
2 As of December 31, 2017.
3 As of March 12, 2018.
4 Ranked within the top-three companies within the categories of i) “Best CEO”, ii) “Best
CFO”, iii) “Best IRO” and iv) “Best IR Team”, for Mid Cap Food & Beverages Sector.
7 Sell-Side Research Estimates on ALICORC1
“Top 10 – Most
Admired Companies
in Peru”
“Latin America
Executive Team
Rankings”4
Stock price Mar. 12 2018: 11.25
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
-7.6%
28.9%
14.3%
11.1%
-17.8%
7.6%
10.2%
14.7%
Current Previous Upside 1
Previous median: 10.672 Current median: 12.43
Potential upside: 10.2%
4.9%
Sept. 17’
Feb. 18’
Jan. 18’
Feb. 18’
Jan. 18’
Feb. 18’
Feb. 18’
Feb. 18’
Dec. 17’
40
60
80
100
120
140
160
Ma
r-1
7
Apr-
17
Ma
y-1
7
Jun-1
7
Jul-1
7
Aug-1
7
Sep-1
7
Oct-
17
No
v-1
7
De
c-1
7
Jan-1
8
Feb
-18
Ma
r-1
8
ALICORC1 EPU IGBVL
Stock performance LTM: Stock performance YTD:
(Jan. – Mar. 12, 2018)ALICORC1:
EPU
IGBVL
+53.1%
+30.5%
+35.1%
+6.1%
+3.1%
+4.5%
ALICORC1:
EPU
IGBVL
Buy 70%
Hold 30%
CurrentPreviousDec. 29 2017 Mar. 12 2018
38
Topics
Transaction Update [ 1 ]
About Alicorp [ 2 ]
Our Strategy to Create Value [ 3 ]
Guidance 2018 [ 4 ]
Q4 2017 Highlights [ 5 ]
Q4 2017 Business & Operating Review [ 6 ]
Stock Performance [ 7 ]
Financial Metrics [ 8 ]
Corporate Strategy
40
Value
Creation:
TSR
1
2
3 4
5
Growth
Efficiencies People
Alicorp´s Market Value
Alicorp´s
Fundamental
Value
Alicorp´s post
Optimal
Capital
Structure
Increase our margins
leveraging through our
Competitive Advantages
✓ Brand Management
✓ Go-To-Market strategy
✓ Supply Chain
✓ Product development
✓ Revenue Management
✓Working Capital and
Financial / tax efficiencies
Organic Growth
✓ Focus on the economic
Segment (T41) in Peru
✓ Canned tuna, Laundry Care
✓ Food Service in B2B
✓ Personal Care in Brazil
Alicorp´s
Fundamental
Value post
internal
initiatives
Alicorp´s
Fundamental
Value post
inorganic
initiatives
Inorganic Growth
✓ Andean Region
✓ Area II and III in Brazil
✓ Peru: Core Categories2
Capital Optimization
✓ Focus on ROIC and
Profitability
✓ Divestiture (Real
state, non operating
assets and non
strategic assets)
1 Tier 4. 2 Edible Oils, Detergents, Pastas and Sauces.
8Gap between the Market and the Fundamental Value of the
Firm
ACTUALIZADO
41
8 Roadmap to Value Creation
NO
PA
T / IN
VE
ST
ED
CA
PIT
AL
NO
PA
TIn
v.
Cap
.
EBIT
Taxes
WK
Net
Fixed
Assets
Growth Strategy:
∆ Focus in Peru (Edible Oils, Detergents, Pasta, and Sauces), the
Andean region (Ecuador and Bolivia) and the Area II and III of
Brazil
✓Constant innovation to gain market share in core categories
Revenue Management Initiatives
✓Pricing strategy revision
✓Branding strategy optimization
COGS Initiatives
∆ Production lines and shifts consolidation in Argentina and Brazil
∆ Production process standardization in Brazil
∆ Warehouses optimization capacity in Peru
SG&A Initiatives
∆ Distribution and Go-to-Market strategy optimization in Peru
∆ Organizational restructure
✓CCC Q4 16’: 37.4 days CCC Q4 17’ : 7.4 days
• Weighted Effective Tax Rate
2019 Goals
Organic Top line
growth of 6.5%
(CAGR 17’-19’)
EBITDA Margin
13.5% to 14.5%
NI Margin
5.5% to 6.5%
ROIC
13.0% to 13.5%
RO
IC
Efficiency
People
Growth
✓ Achieved
∆ In process
To
tal
Sh
are
ho
lde
r R
etu
rn
Deb
t
red
ucti
on
Re
turn
ing
Va
lue
✓Net Debt-to-EBITDA ratio reduced from 2.71x as of December 2015 to
1.00x as of December 2017
✓S/ 434.1 million in Net Debt reduction since 2016
✓Strong commitment to return value to shareholders
✓Dividend payout ratio for FY2016 reached 39.6% of Net Income. Amount
distributed reached S/ 120 million or S/ 0.14 per share (+ S/ 0.09 more than
in 2015)
✓NFA turnover increased from 3.1x in 2013 to 3.4x in 2016
∆ Sale of non-core real-estate-related assets (S/ 349.6 million)
FY 2017 Performance by
Business
43
In Peru, the improvement was result of innovation and strong leadership in all the categories where we have presence. In
the international front, Argentina was impacted by all the structural initiatives implementation, while Brazil was affected by the by an ongoing consumption´s trend shifting towards value products
Hig
hlig
hts
by B
us
ine
ss
CG
I P
eru
CGP
Revenue Growth
+6.2%
Branding Strategy &
Continuous Innovation
Market Share
17 of 21
Categories
Profitability
Gross Margin
EBITDA Margin
+1.9 p.p
+1.4 p.p
B2B
Revenue Growth
+3.2%Organic expansion:
- Food Service
- Industrial Clients
Profitability
Gross
Margin+0.6 p.p
EBITDA
Margin-0.5 p.p
Brazil
Revenue Growth
-0.9% Soles
Volume Contraction:
- Tiering down
- Revenue mix
Profitability
Gross
Margin+6.5 p.p
EBITDA
Margin+2.8 p.p
Argentina
Revenue Growth
-3.9% Soles
~20% FX Depreciation
Profitability
- Turnaround
Phase
- One Shots
8 Our business plan execution FY 2017 (1/2)
44
In Aquaculture, top line and profitability growth was result of the non-occurrence of "El Niño" phenomenon and Algae
bloom. Also, the "Tier up" of our revenue mix was key to improve our value proposition
Hig
hlig
hts
by B
us
ine
ss
Aq
uac
ult
ure
Salmon feed
Shrimp feed
Profitability
Gross
Margin+1.8 p.p
EBITDA
Margin+1.7 p.p
Profitability
Gross
Margin+4.0 p.p
EBITDA
Margin+2.0 p.p
Revenue Growth
+15.5%- No Algae bloom
- Comercial Conditions
Soles
Revenue Growth
+25.6%- Capture of Market Share
- Revenue Mix
Soles
8 Our business plan execution FY 2017 (2/2)
Performance by Business
46
KEY
MILESTONES
AWARDS &
RECOGNITION
• Merco: 1st place - Best Reputated Company in the Food Sector
• América Economía: “MultilatinaTrajectory” distinction.
• Lima Chamber of Commerce: Top 5 - “National Brand with the Highest Remembrance in the XVII Annual Survey of
Executives”.
• Arellano Marketing: 1st place - “The Best Company to Work For” in the Consumer Goods Sector the top 10 of “Most
Attractive Companies to Work For”
REPUTATION
12 products were launched as part of our innovation strategy, being the most remarkable:
RESEARCH & DEVELOPMENT
CONTINUOUS EFFICIENCIES IN WORKING CAPITAL
LOWER INDEBTNESS
We reduced our Cash Conversion Cycle (“CCC”) to 7.4 days, from 37.4 days in Q4 16’
We reduced our Days Sales Outstanding to 48.8 days (- 1.5 days YoY) and Days Inventory Outstanding to 63.1 days
(- 9.0 days YoY)
Alicorp continued reducing its Leverage, Net Debt-to-EBITDA ratio decreased from 1.66x as of December 2016 to
1.00x as of December 2017. Likewise, Net Debt was reduced by S/ 434.1 million in the same period
Hot chocolate bar under
the mega brand “Blanca
Flor”
Orange flavored
panettone under the mega
brand “Blanca Flor”
“Integrackers” – new
cookie flavors
New mini cookies
presentation
8 Q4 2017 Milestones
47
678 693
303 280
981 973
Q4 16' Q4 17'
Peru International
4.3%
17.4%
0.0%
17.4%
11.4% 11.8%
CONSUMER GOODS B2B1 AQUACULTURE1
403 397
Q4 16' Q4 17'
13.3% 12.4%
EB
ITD
A M
arg
in (
%)
Reve
nu
e (
PE
N M
illi
on
)
-4.3 p.p.
+0.0 p.p.
-0.9 p.p. 0.4 p.p.
Q4 16’ Q4 17’ Var. Q4 16’ Q4 17’ Var.
-7.5%
+2.2%
-0.8%
-1.4% +14.6%
Revenue Mix Peru Ecuador Chile Argentina Brazil Others
(%) 60.1% 16.9% 7.8% 6.4% 6.2% 2.6%
428 490
Q4 16' Q4 17'
11.6% 13.3% +1.7p.p.
Q4 16’ Q4 17’ Var.
1 Financial figures of B2B and Aquaculture are consolidated.
8 Q4 2017 Performance by Business Unit & Regions
48
PE
RU
1 SG&A doesn’t include other expenses and raw material hedging expenses.
Consumer Goods Peru 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 528 592 650 654 2,424 548 616 658 678 2,500 585 667 710 693 2,655 2.2% -2.3%
Gross Profit 180 208 241 233 863 208 235 250 259 952 232 267 289 273 1,062 5.7% -5.6%
SG&A 121 136 145 148 551 134 149 151 155 589 144 153 168 167 632 7.8% -0.1%
EBITDA 78 91 117 108 393 93 106 117 118 434 107 132 140 121 499 2.4% -13.9%
Gross Margin 34.2% 35.2% 37.1% 35.6% 35.6% 38.0% 38.2% 38.0% 38.1% 38.1% 39.6% 40.1% 40.8% 39.4% 40.0% 1.3% -1.4%
SG&A(% of Revenue) 23.0% 22.9% 22.4% 22.6% 22.7% 24.4% 24.2% 23.0% 22.9% 23.6% 24.6% 23.0% 23.6% 24.1% 23.8% 1.2% 0.5%
EBITDA Margin 14.7% 15.3% 18.0% 16.5% 16.2% 16.9% 17.3% 17.8% 17.4% 17.4% 18.3% 19.8% 19.7% 17.4% 18.8% 0.0% -2.3%
B2B 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 331 357 394 376 1,459 338 374 398 403 1,512 353 390 420 397 1,561 -1.4% -5.6%
Gross Profit 76 77 89 77 320 87 91 102 103 383 86 94 115 111 405 7.2% -3.9%
SG&A 55 57 63 72 246 56 60 61 62 239 61 66 69 67 262 7.4% -3.0%
EBITDA 29 30 35 12 106 35 39 49 46 168 33 33 52 47 165 1.7% -10.6%
Gross Margin 23.1% 21.6% 22.5% 20.6% 21.9% 25.6% 24.4% 25.7% 25.7% 25.3% 24.3% 24.0% 27.4% 27.9% 26.0% 2.3% 0.5%
SG&A(% of Revenue) 16.6% 15.9% 16.0% 19.0% 16.9% 16.6% 16.0% 15.3% 15.4% 15.8% 17.2% 16.9% 16.4% 16.8% 16.8% 1.4% 0.5%
EBITDA Margin 8.8% 8.3% 9.0% 3.2% 7.3% 10.3% 10.3% 12.2% 11.4% 11.1% 9.3% 8.5% 12.4% 11.8% 10.6% 0.4% -0.7%
Consolidated 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 1,509 1,639 1,699 1,734 6,580 1,438 1,629 1,751 1,811 6,629 1,590 1,827 1,824 1,860 7,101 2.7% 2.0%
Gross Profit 416 459 500 492 1,867 438 492 533 545 2,008 492 577 605 604 2,278 10.8% -0.3%
SG&A 290 317 329 348 1,284 308 336 349 353 1,347 347 366 381 390 1,484 10.5% 2.4%
EBITDA 149 157 223 193 722 163 194 226 219 802 186 242 248 225 901 3.0% -9.1%
Gross Margin 27.5% 28.0% 29.5% 28.4% 28.4% 30.4% 30.2% 30.4% 30.1% 30.3% 30.9% 31.6% 33.2% 32.5% 32.1% 2.4% -0.7%
SG&A(% of Revenue) 19.2% 19.3% 19.3% 20.1% 19.5% 21.4% 20.6% 20.0% 19.5% 20.3% 21.8% 20.0% 20.9% 21.0% 20.9% 1.5% 0.1%
EBITDA Margin 9.9% 9.6% 13.1% 11.1% 11.0% 11.4% 11.9% 12.9% 12.1% 12.1% 11.7% 13.2% 13.6% 12.1% 12.7% 0.0% -1.5%
CO
NS
OL
IDA
TE
D8 Performance by Business Unit & Regions (1)
49
B2B
1 SG&A doesn’t include other expenses and raw material hedging expenses.
Bakery 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 171 188 205 186 750 166 192 200 188 746 158 192 205 185 742 -1.1% -9.3%
Gross Profit 40 40 52 48 179 43 47 51 48 188 38 42 55 51 186 6.8% -8.0%
SG&A 30 32 34 36 132 30 32 35 34 131 32 35 36 34 137 0.7% -4.7%
EBITDA 14 14 23 16 68 15 18 20 15 68 9 10 22 18 58 8.8% -25.2%
Gross Margin 23.2% 21.5% 25.2% 25.6% 23.9% 26.0% 24.3% 25.5% 25.3% 25.2% 24.0% 22.1% 26.9% 28.0% 25.1% 2.0% 0.4%
SG&A(% of Revenue) 17.5% 16.8% 16.6% 19.6% 17.6% 18.2% 16.6% 17.4% 18.2% 17.6% 20.3% 18.1% 17.6% 18.5% 18.5% 0.3% 0.9%
EBITDA Margin 8.3% 7.7% 11.4% 8.5% 9.0% 8.9% 9.4% 10.0% 7.9% 9.1% 6.0% 5.3% 10.6% 8.7% 7.7% 0.8% -1.8%
Food Service 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 116 122 131 134 503 126 128 141 148 543 138 140 151 147 576 -0.8% -3.1%
Gross Profit 31 35 40 40 146 38 37 40 41 156 37 41 48 48 173 15.4% -0.3%
SG&A 19 20 22 26 86 20 21 22 23 86 23 24 25 25 98 6.7% -3.0%
EBITDA 14 19 21 17 70 20 19 21 21 81 17 19 25 25 86 19.4% 0.3%
Gross Margin 26.6% 28.8% 30.4% 29.8% 29.0% 30.0% 29.1% 28.3% 27.9% 28.8% 27.1% 29.0% 31.5% 32.4% 30.1% 4.6% 0.9%
SG&A(% of Revenue) 16.7% 16.0% 16.5% 19.2% 17.2% 16.1% 16.3% 15.6% 15.6% 15.9% 16.9% 17.3% 16.8% 16.8% 16.9% 1.2% 0.0%
EBITDA Margin 11.9% 15.3% 16.0% 12.4% 13.9% 16.0% 15.0% 14.6% 14.0% 14.9% 12.4% 13.5% 16.3% 16.9% 14.9% 2.9% 0.6%
8 Performance by Business Unit & Regions (2)
Industries 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 40 44 56 54 195 43 52 57 66 218 57 58 64 64 243 -3.6% 0.4%
Gross Profit 8 9 12 13 42 9 10 12 15 47 10 11 12 12 46 -14.2% 1.1%
SG&A 4 5 6 6 21 4 4 4 4 17 5 7 7 8 27 72.2% 5.8%
EBITDA 4 5 8 7 25 6 7 9 11 33 6 4 6 6 22 -48.4% -2.6%
Gross Margin 20.2% 21.0% 22.2% 23.4% 21.8% 21.8% 20.3% 21.5% 21.9% 21.4% 18.4% 18.2% 19.3% 19.5% 18.9% -2.4% 0.1%
SG&A(% of Revenue) 11.1% 10.7% 9.9% 12.0% 10.9% 9.3% 8.5% 6.8% 6.7% 7.7% 9.5% 12.2% 11.4% 12.0% 11.3% 5.3% 0.6%
EBITDA Margin 10.8% 11.9% 14.2% 12.9% 12.6% 14.4% 13.3% 16.2% 16.3% 15.2% 11.1% 7.5% 9.0% 8.7% 9.0% -7.6% -0.3%
50
INT
ER
NA
TIO
NA
L
Consumer Goods Int. 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 312 333 317 317 1,280 257 313 312 302 1,185 297 304 266 280 1,146 -7.5% 5.2%
Gross Profit 98 107 105 102 413 83 97 101 101 383 99 109 94 97 398 -4.6% 3.1%
SG&A 90 96 94 94 375 83 97 105 99 384 105 106 103 104 418 5.3% 1.2%
EBITDA 14 19 17 25 75 7 9 11 13 40 0 8 -4 0 4 -100.4% -98.7%
Gross Margin 31.4% 32.2% 33.2% 32.3% 32.3% 32.2% 31.0% 32.4% 33.6% 32.3% 33.4% 35.8% 35.3% 34.6% 34.8% 1.1% -0.7%
SG&A(% of Revenue) 28.8% 28.9% 29.8% 29.7% 29.3% 32.1% 31.0% 33.8% 32.7% 32.4% 35.3% 35.0% 38.7% 37.2% 36.5% 4.5% -1.5%
EBITDA Margin 4.6% 5.7% 5.2% 7.8% 5.8% 2.6% 3.0% 3.5% 4.3% 3.4% 0.1% 2.6% -1.4% 0.0% 0.4% -4.3% 1.4%
CGI Brazil 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 123 119 110 113 464 97 125 137 131 490 125 124 123 115 486 -12.8% -6.5%
Gross Profit 46 42 41 36 166 29 36 49 54 168 50 51 50 46 198 -14.9% -6.9%
SG&A 37 36 31 33 138 33 42 50 43 167 46 44 47 45 182 5.7% -3.8%
EBITDA 13 9 12 19 53 -1 -3 6 17 19 9 11 7 6 32 -63.2% -3.8%
Gross Margin 37.8% 35.8% 36.9% 32.2% 35.7% 29.4% 28.7% 35.7% 41.4% 34.2% 40.3% 41.4% 40.5% 40.4% 40.7% -1.0% -0.2%
SG&A(% of Revenue) 29.8% 30.7% 28.6% 29.4% 29.7% 33.6% 33.8% 36.5% 32.4% 34.1% 37.2% 35.6% 38.1% 39.2% 37.5% 6.9% 1.1%
EBITDA Margin 10.2% 7.6% 11.1% 17.1% 11.5% -1.2% -2.4% 4.3% 13.0% 3.8% 7.0% 8.8% 5.3% 5.5% 6.7% -7.5% 0.2%
CGI Argentina 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 148 160 156 149 614 119 139 121 113 492 127 129 98 119 473 5.6% 21.8%
Gross Profit 36 45 47 45 173 38 43 33 25 138 32 37 25 29 123 15.1% 15.4%
SG&A 43 46 48 47 184 37 41 39 43 160 45 49 41 46 180 7.1% 12.3%
EBITDA -5 3 0 -2 -5 3 5 0 -14 -6 -13 -11 -15 -15 -54 6.5% -2.0%
Gross Margin 24.2% 28.2% 30.1% 30.5% 28.2% 31.7% 30.7% 27.0% 22.4% 28.1% 25.0% 28.7% 25.7% 24.4% 26.0% 2.0% -1.3%
SG&A(% of Revenue) 28.9% 28.6% 30.9% 31.6% 30.0% 30.8% 29.7% 32.6% 37.8% 32.5% 35.5% 38.0% 41.6% 38.3% 38.1% 0.5% -3.3%
EBITDA Margin -3.3% 1.6% 0.0% -1.7% -0.8% 2.8% 3.5% -0.3% -12.2% -1.2% -10.5% -8.8% -15.3% -12.3% -11.5% -0.1% 3.0%
8 Performance by Business Unit & Regions (3)
1 SG&A doesn’t include other expenses and raw material hedging expenses.
51
AQ
UA
CU
LT
UR
E
Aquaculture 2015 2016 2017Variation
Q4 17
PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ
Revenue 338 356 337 387 1,418 295 326 382 428 1,430 356 467 427 490 1,740 14.6% 14.7%
Gross Profit 61 67 66 78 273 60 69 79 81 289 75 108 107 123 413 51.1% 15.1%
SG&A 22 25 24 34 105 34 30 31 35 130 37 40 41 59 176 67.1% 44.2%
EBITDA 44 49 47 51 191 32 45 55 50 181 45 76 71 65 257 31.5% -7.6%
Gross Margin 18.0% 19.0% 19.6% 20.3% 19.2% 20.4% 21.1% 20.7% 19.0% 20.2% 21.2% 23.0% 25.0% 25.1% 23.7% 6.1% 0.1%
SG&A(% of Revenue) 6.5% 7.1% 7.1% 8.7% 7.4% 11.6% 9.3% 8.1% 8.2% 9.1% 10.3% 8.6% 9.5% 11.9% 10.1% 3.7% 2.4%
EBITDA Margin 13.1% 13.7% 13.8% 13.2% 13.5% 10.7% 13.8% 14.4% 11.6% 12.7% 12.6% 16.4% 16.6% 13.3% 14.8% 1.7% -3.2%
8 Performance by Business Unit & Regions (4)
FX RATES1
Year 2015 2016 2017
Quarter Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
USD/PEN 3.06 3.15 3.21 3.32 3.19 3.45 3.32 3.34 3.40 3.38 3.29 3.26 3.25 3.25 3.26
USD/ARS 8.69 8.95 9.25 10.17 9.27 14.49 14.23 14.96 15.46 14.78 15.67 15.73 17.28 17.56 16.56
USD/BRL 2.86 3.07 3.55 3.84 3.33 3.91 3.51 3.25 3.29 3.49 3.14 3.22 3.16 3.25 3.19
ARS/PEN 2.84 2.85 2.88 3.06 2.91 4.20 4.29 4.48 4.55 4.38 4.76 4.82 5.32 5.41 5.08
BRL/PEN 0.94 0.98 1.10 1.16 1.04 1.13 1.06 0.97 0.97 1.03 0.96 1.02 0.97 1.00 0.98
1 Average FX rates for the period.
2 SG&A doesn’t include other expenses and raw material hedging expenses.
EBITDA & Net Income Drivers
531
Gross Profit not including industrial depreciation. 2
SG&A doesn’t include other expenses and raw material hedging expenses. 3
SG&A not including depreciation & amortization.
6.6% 7.4% 6.6% 6.9% 6.8%
13.4% 14.4% 13.4% 14.0% 14.2%
Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'
General & Administrative Selling
▪ EBITDA growth was a result of a higher Gross
Profit (+S/ 48.41 million YoY) explained by
i) Revenue Management and design-to-value
initiatives in the Consumer Goods Peru Business, ii)
savings in procurement and manufacturing as a result
of our efficiencies program, iii) lower raw material
prices in the Aquaculture business, and iv) higher
operative contribution from the Aquaculture business
(As % of Consolidated Revenue)
20.0%20.0% 20.9%21.8%
SG&A EXPENSES EVOLUTION2
21.0%
218.7 225.3
48.4
36.1 5.7
EBITDA Q4 16' Gross Profit SG&A Other Net OperatingExpenses
EBITDA Q4 17'
12.1% 12.1%
1 2 3
MAIN DRIVERS OF EBITDA (YoY)
+1.8% -1.4% -0.4%
8 EBITDA Main Drivers (YoY)
54
8 Net Income & Net Margin (%) Evolution
80.2
125.9
15.9
28.7 5.9 5.8 3.7 4.9
Net IncomeQ4 16'
Operating Profit Net FinancialExpenses
FX and RatesHedging Expenses
FX ExchangeLosses
Other Income Tax Net IncomeQ4 17'
1.9%
1.1%0.8% 1.0%
0.3%
0.2%
0.2%
0.1%0.1%
-0.1%
0.2%
0.5%
1.0%
0.5%
2.3%
1.3% 1.4%
2.1%
0.7%
Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'
Net Financial Expenses FX Gains/Losses FX and Rates Hedging Expenses
(As % of Total Revenue)
4.4% 0.6% 1.3%0.3% 6.8%
FINANCIAL EXPENSES EVOLUTION
MAIN DRIVERS OF NET INCOME (YoY)
▪ Net Income increased S/ 45.7 million, reaching S/
125.9 million in Q4 17’, driven by:
i) Less financial expenses and FX losses (S/ -22.8 million
YoY)
ii) Higher profitability during the quarter due to an increase
in gross margin.
1.6% 0.3% 0.2% 0.4%
Debt & Cash Management
56
5.0%
89.5%
5.1% 0.4%
USD PEN BRL ARS
8.4% 8.5% 8.2%7.1%
5.2%
i) All-in cost of debt decreased 3.2 p.p. YoY as of December 2017,
mainly due to lower Argentina and Brazil operation´s debt, whose
interest rates were the highest
ii) As of December 2017, only the 0.03% of Total Financial Debt has
real FX exposure to the UDS PEN exchange range volatility.
iii) Alicorp is evaluating issuances in the local capital market for 2018,
aiming to smooth its maturity profile
FINANCIAL STRATEGY
NET DEBT-TO-EBITDA RATIO
1 All-in cost of debt is defined as the accumulated LTM of the Interest expense, plus hedging
cost, plus difference in exchange rate, divided between monthly average of the LTM Gross
Debt.
1.66x
1.35x
1.06x 0.98x 1.00x
Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'
(PEN Million)
Net Debt EBITDA LTM All-in Cost of Debt1
2 Before swap debt. / 3After swap debt .4 Equilibrium publishes ratings for the company since October 2017. This local
agency, does not publish outlooks for rated instruments
9211,333 1,111
872802 825
877
894
Glo
bal
Peru
4 AAA / Negative
-
BBB- / Stable
BBB / Stable
Baa3 / Stable
AAA / CP1+ / Stable
AAA / EQL1+
+
BBB- / Stable
BBB / Stable
Baa3 / Stable===
Alicorp’s debt financing strategy has allowed the
Company to generate significant financial savings…
Alicorp's financial guidelines are: i) reduce financial expenses (All-in cost of debt), ii) shift our debt towards Soles to reduce FX
losses, iii) smooth the maturity profile, and iv) expand funding sources, both in banks and in capital markets
CREDIT RATING
12.9%
52.6%
1.4% 33.1%
International Bond Local Bonds ST Bank Debt LT Bank Debt
10.3%
29.7%
11.6%
48.4%10.3%
44.4%
31.0%
14.3%
Dec-15 Dec-16 Dec-17
2.5%
96.5%
1.0%
11.6%
77.5%
7.1%3.8%
TOTAL
DEBT2
By C
urr
en
cy
3B
y S
ou
rce
S/ 1,606 MMS/ 2,070 MM S/ 1,942 MM
DEBT BREAKDOWN
Firm Dec-16 Dec-17
899
901
8.4% 8.5% 8.2%7.1%
5.2%
8
57
116 -
70 -
160
207
104
392
98
8
367
50 100 100 100 100 50
2017 2018 2019 2020 2023 2025 2026 2027 2028 2029 2030
Over 2016, Alicorp refinanced its short-term debt with two local bonds (S/ 70 and S/160 millions)
Alicorp reduced its Net Debt-to-EBITDA ratio to 1.00x as of December 2017 from 1.66x as of December 2016
Cash and cash equivalents cover the maturity of 2018 debt at 1.07x as of December 2017 (1.13x as of December 2016).
During Q4 17’, Alicorp took advantage of lower interest rates through short-term financing
Duration: 4.25
Duration: 2.95December 2017: Total Debt: S/ 1,942 million
MATURITY PROFILE1: DURATION AS OF DECEMBER 2017 WAS 2.95 YEARS VS. 4.25 YEARS AS OF DECEMBER 2016
December 2016: Total Debt: S/ 1,606 million
1Debt after hedging operations, at amortized cost.
242
15% 24% 6% 0.5% 23% 3% 6% 6% 6% 6% 3%
70
207
273
1,043
Cash
[Q4’ 16]
Cash
[Q4’ 17]
603
A
B
C
B
A
8 ...and improve its debt maturity profile
201
160
977
132 70
160
201 242 97
7
361
50 100 100 100 100 50
2017 2018 2019 2020 2023 2025 2026 2027 2028 2029 2030
Local Bonds International Bond Long-Term Bank Debt Shot-Term Bank Debt
C603
50% 5% 0.4% 19% 3% 5% 5% 5% 5% 3%
58
8 Working Capital and CAPEX Management for Q4 2017
50.3 48.9 48.4 48.9 48.8
72.1
66.6 63.5 62.1 63.1
84.9 87.0
94.2 99.2 104.5
Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
Accounts Receivable Inventories Accounts Payable
KEY MILESTONES
• Alicorp successfully reduced its Cash Conversion Cycle from 11.8 days as of Q3 17’ to 7.4 days as of Q4 17’, as a
consequence of a reduction of the inventory in 8.7% YoY (S/ 78.2 million) and an increase in its accounts payables by 28.4% YoY (S/
304.1 million)
• DAdditionally, the Company was able to reduce its capital investment requirements without compromising growth
A
B
A
(PEN Million)
CAPEX EVOLUTIONA B
1 Working Capital is defined as the last twelve month (LTM) average of accounts receivable plus average inventory minus average accounts payable2 Days sales outstanding3 Average days as a mean of the LTM balance sheet accounts.4 Cash Conversion Cycle
(Days)
CCC428.637.4 17.8 7.4
(PEN Million)
WORKING CAPITAL EVOLUTION1
DAYS OF WORKING CAPITAL3A
36
79
304
751
404
Q4 16' Accounts Receivable Inventories Accounts Payable Q4 17'
Millares
23 19 15 31 19
1.25% 1.21% 0.82%1.68%
1.02%
Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'
Mill
ares
Property, Plant & Equipment PP&E as % of Sales
11.8
A temporary increase in accounts
receivables of S/ 4.7 millions, make
a DSO2 of 48.8 days
Proactive management of our
inventories of finished products
(S/ 42.7 millions), along with more
efficiencies of our fishmeal and
wheat stock (S/ 30 million)
Market conditions allow us to access
commercial facilities with suppliers
59
8 Cash Flow Build Up as of Q4 2017
273
1,043
1,082 39
345
165
35 184
102
127
5
184
Net Cash onQ4 16'
Cash generatedfrom
operations
Taxes Other expensesfrom
operations
InvestmentActivities
Debt InterestPayment
DividentPayment
Other financialactivities
Net Cash onQ4 17'
2
(PEN Million)
MAIN DRIVERS FOR CASH FLOW EVOLUTION
HIGHLIGHTS
1
1 Investments: time deposits with maturity between 90 days and 360 days and mutual funds.2 Includes PP&E, acquisitions, software and other investment activities3 Includes FX Translation effect of S/ -5.7 million
Cash Flow from Operations S/ 882.3
Cash Flow from Financing S/ 110.6
Cash Flow from Investing S/ -223.012
▪ Cash Flow from Operations was S/ 882.3 million, S/ 47.1 million lower compared to Q4 16' mainly explained by the
implementation of our efficiency program
▪ Cash Flow used in Investing Activities was S/ 223 million. A total amount of S/ 83.9 million were used for CAPEX,
which was S/ 39.9 million lower than the amount used during the same period of 2016; while S/ 184.3 was hold for
investments1
▪ Cash Flow used in Financing Activities was S/ 110.6 million, compared to S/ -665.1 million as of Q4 16', mainly due to
an increase in short term loans
3
1
60
8 OCF & FCF Evolution
1,081929 882934
826
2015 2016 2017
Operating Cash Flow Free Cash Flow
2184
67%
86%
102%
77%97% 107%
0%
20%
40%
60%
80%
100%
120%
2015 2016 2017
EBITDA / Operating Cash Flow EBITDA / Free Cash Flow
1 Operating Cash Flow: EBITDA – Taxes – Changes in Working Capital
Free Cash Flow: Operating Cash Flow – CAPEX (organic) 2 Time deposits with maturity between 90 and 360 days and mutual funds (PEN 184MM)
OPERATING & FREE CASH FLOW1
OPERATING & FREE CASH FLOW CONVERSION1
(PEN Million)
▪ Free Cash Flow for
2017 is stronger than
last year as a result
of:
i. An improvement
in EBITDA,
ii. A reduction of the
cash conversion
cycle,
iii. CAPEX
rationalization
▪ Along the continuous
increase in EBITDA,
more than 100% of it
has been converted
into cash flow
844