Corporate Presentation. August, 2018

Transcription

1 Corporate Presentation August, 08 0

2 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.

3 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ]

4 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ] 3

5 Product portfolio brand management Acquisition of Fino & SAO: Key Highlights Acquisition of Fino and SAO will provide a strong platform for Alicorp to replicate it s successful Peruvian consumer & BB model on the back of customized commercial strategies and market segmentation practices OPPORTUNITY TO REPLICATE ALICORP S STRATEGY IN CPG AND BB IN A HIGH-GROWTH MARKET POTENTIAL PORTAFOLIO EXPANSION Edible oil >40% Margarine >60% Lard >50% L. Soap >5% Detergent >8% Revenue EBITDA EBITDA Margin FINANCIAL HIGHLIGHTS Consumer Business US$ 8mm US$ mm % Crushing Business ~ US$ 360mm ~ US$ 35mm 6% TRANSACTION UPDATE Alicorp acquired FINO for US$ 93mm on May 7 th and SAO for US$ 5mm on July 4 th for a Total Equity Value of US$ 408mm. Consolidated Enterprise Value reached US$ 368mm, where LTM EBITDA multiples by business were 9.4x for CPG and 4.x for Crushing, the latter on a cycle adjusted basis During 07, both companies generated ~ US$ 450mm in consolidated Revenues. CPG & Distribution EBITDA was US$ mm while cycle - adjusted Crushing EBITDA was US$ 35mm Alicorp financed the acquisition via cash and debt on balance sheet and utilization of available credit lines Figures as of FY07. Cycle-adjusted basis considers taverage of historical figures for 0 to 07 of Fino and SAO. x% Category market share 4

6 Alicorp, Fino and SAO pro-forma metrics Fino and SAO take a relevant share and complement our current international operations. Albeit Consumer Goods Peru remains the largest business by Revenue and EBITDA ESTIMATED PRO-FORMA SALES 08E By country By segment Ecuador 6.4% Bolivia 0.7% Others 0.7% Peru 60.3% Bolivia 7.4% Others 8.9% Peru 50.% BB.5% Consumer Products 50.6% BB 7.9% Consumer Products 48.4% Argentina 6.4% Brazil 5.6% Alicorp Pre Bolivia's Transaction Sales 8E ~ US$,300mm Ecuador 3.6% Argentina 5.3% Brazil 4.7% Pro-forma Sales 8E ~ US$,780mm Aquaculture 8.0% Alicorp Pre Bolivia's Transaction Sales 8E ~ US$,300mm Aquaculture 3.% Crushing 0.4% Pro-forma Sales 8E ~ US$,780mm ILLUSTRATIVE PRO-FORMA EBITDA 08E By country By segment Ecuador.8% Bolivia 0.8% Others 4.8% Peru 7.9% Bolivia.0% Others 4.0% Peru 64.0% Consumer BB BB Products 4.6% 6.5% Consumer 55.5% Products 56.% Argentina (0.4%) Brazil.% Alicorp Pre Bolivia's Transaction EBITDA 8E Ecuador 9.0% Argentina 0.0% Brazil.0% Pro-forma EBITDA 8E Aquaculture 8.0% Alicorp Pre Bolivia's Transaction EBITDA 8E ~ US$ 30mm ~ US$ 30mm ~ US$ 345mm Proforma figures includes FY 07 and 08E financial figures of Fino and SAO. Crushing business profitability is highly associated to the cyclicity of commodities prices. Source: Company management Unaudited managerial figures, Alicorp s 08 estimates based on Brokers estimates median. Note: Sales and EBITDA are calendarized to December. Aquaculture 4.8% Crushing 4.5% Pro-forma EBITDA 8E ~ US$ 345mm 5

7 Consolidated CPG business performance shows growing volumes and solid profitability improvements CONSUMER AND DISTRIBUTION (US$ MM) Calendar Year 0A CAGR 4-7 : 6% 03A 04A 05A 06A 07A Brand portfolio and market share in Bolivia Fino Volume (000 TM) Edible oil >40% Lard >50% CAGR -7 : -0.7% Revenue Margarine >60% Laundry Soap >5% CAGR -7 : 0.5% EBITDA Exports Detergents >8% Personal Care >3% Fino EBITDA Margin 4 Consolidated EBITDA Margin.5% 3.8% 8.3% 6.8% 9.% 6.9% 7.0% 0.% 3.4% 3.% 4.7%.0% 4 Pastas >5% Consolidated business (Fino + SAO) Fino SAO XX% Market Share Volumes have grown at 6% solid pace, specially coming from Fino Revenues are affected by changes in commodity prices Fino surpassed 5% EBITDA margin since 03, reaching almost 0% in 04 and 06. On the other hand, SAO s margins tend to reach 5-8%. In 07, aggressive competition (including Fino) resulted in almost breakeven margins for SAO Source: Unaudited managerial figures. Commodity Markets Outlook, WB. Figures expressed as of December of each year Annualized estimated share of Fino and SAO CPG local edible Oils. CPG and Distribution estimated consolidated volumes. 3 EBITDA figures for 0, 03 and 07 of SAO are estimated, according to historical business performance. 4 Margins estimated considering interbusiness transferences 5 Includes ony Fino s volumes 6

8 while Crushing business cyclicality is aligned to Bolivia s commodities availability and price dynamics CRUSHING (US$ mm) Calendar Year Revenue 0A 03A 04A 05A 06A 07A ~ US$ 360m avg rev CRUSHING PROCESS DIAGRAM Local Farmers Local Demand EBITDA US$ 35m avg EBITDA %.7% 5.8% -0.8% 5.4% -.7% Exports ~6% avg EBITDA mg Crude oil Meals Soybean and Sunflower beans The Bolivian market structure requires vertical integration to control quality and ensure access to grains supply. This results in a natural hedge of raw materials for the CPG business Crushing cyclicality is clearly reflected over Revenue and EBITDA fluctuations. As international prices increase, FINO and SAO s maneuverability over the farmer's soybean price widens, allowing to share profit, guaranteeing supply and securing high profitability. However, when prices are low, farmer's soybean price cannot be reduced as much, without losing volume share It s important that as Crushing provides raw materials for CPG, any underperformance is offset by CPG profitability Consolidated business (Fino + SAO) Fino SAO xx Source: Unaudited managerial figures. Commodity Markets Outlook, WB. Figures expressed as of December of each year Consolidated EBITDA Margin xxx CBOT soybean price (US$/MT) EBITDA figures for 0, 03 and 07 of SAO are estimated, according to historical business performance. Margin estimated considering interbusiness transferences. Interbusiness transference were estimated according to managerial figures. 7

9 Valuation breakdown analysis of the Consumer and Crushing businesses of Fino & SAO Total Enterprise and Equity Value paid for both business amounted to US$ 368mm and US$ 408mm respectively, in line with initial price guidance between US$ 390mm and US$ 40mm. ENTERPRISE VALUE (EV) AND MULTIPLE ANALYSIS CONSOLIDATED CONSUMER FINO CONSUMER EV US$ million LTM EV / EBITDA 9.x LTM EBITDA US$3 million EV US$30 million EV US$ million LTM EV / EBITDA 9.x LTM EBITDA US$3 million CONSOL. EV US$368 million EV US$90 million 3 CRUSHING CYCLE ADJ EV / EBITDA 4.x AVERAGE EBITDA US$ million CONSOLIDATED CRUSHING SAO CRUSHING EV US$56 million 3 CYCLE ADJ EV / EBITDA 4.4x AVERAGE EBITDA US$35 million EV US$66 Million 3 4 EV US$66 million 3 CYCLE ADJ EV / EBITDA 5.3x AVERAGE EBITDA US$3 million Source: Company management LTM EBITDA as of May 08. Cycle adjusted EBITDA comprises results from 0A to 07A, on a calendarized level (January December of each year). 3 Considers inventory of grains and equivalents as cash, given the operational need of financing during the summer and winter soy campaigns for Crushing Business. 4 SAO EV allocation only assigned to Crushing business, considering that profitability of Consumer and Distribution was almost breakeven over the LTM May 08. 8

10 Peru Global Fino and SAO s acquisition financing still leaves a healthy Balance Sheet, reflected on our stable credit ratings A Fino s acquisition was financed through a Club Deal on Q8. In addition, in July 08, Alicorp disbursed USD_5MM to acquire SAO (PEN Million),05,00.0x 4.4%.37x NET DEBT-TO-EBITDA RATIO Net Debt LTM EBITDA All-in Cost of Debt,436,08 SAO FINO.8x SAO.05x SAO Q 8' Q 8' Jul 8' Jul 8' B C,436,7 FINO 3 D,93,7 FINO 4.8% 4.8% 4.7% 3 B C D Net debt: Includes SAO s net cash and Club Deal financing (S/ 354 million) Consumer LTM EBITDA + Cycle adj.crushing EBITDA 5 : Fino: S/ 4 million SAO: S/ 40 million Net Debt: Includes (B) and (C) adjustments, but excludes inventory financing (S/ 43 million) 4.% 8.5% DEBT BREAKDOWN July 08: Total Debt: S/ 3,48 million Fino took short-term debt of USD 43.7MM during Q 8 to finance its inventory purchase. This debt represents 4.% of total financial debt and 33.7% of Fino s Debt 38.%.6% 5.9% 3.6% Internacional Bond Local Bonds ST Bank Debt Fino's Working Capital LT Bank Debt Club Deal A MATURITY PROFILE 4 : DURATION AS OF JULY 08 WAS.7 YEARS July 08: Total Debt: S/ 3,48 million 98 Cash [Jul. 8 ] Club Deal SAO Club Deal Fino Fino s Working Capital 94 6 Duration: % 5% 6% % 6% 5% 86 Firm CREDIT RATING Outlook All credit rating agencies have a positive outlook on Fino and SAO s acquisition due to: i) increased presence in Bolivia, strengthening leadership in consumer goods and BB and ii) is aligned with Alicorp s strategy about adding new top brands and product categories. Alicorp s Bonds and Commercial Paper programs is filed for up to S/,500 million, which is a source to refinance our debt Includes SAO s cash (USD 7MM) and Club Deal for SAO s acquisition (USD 5MM). 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. 3 Net Debt to-ebitda ratio with normalized LTM EBITDA. 4 Debt before hedging operations, at amortized cost. 5 Includes consumer LTM EBITDA and crushing cycle adj EBITDA 9

11 Strong synergies to be unlocked within Fino and SAO in the short-term; Alicorp to lever on Fino s platform to unlock brand management and GM strategies Integration of Fino & SAO to generate incremental run-rate EBITDA of ~ US$.0mm with a NPV of ~ US$ 90mm SYNERGIES RATIONALE EBITDA RUN RATE Operations Transportation cost reductions from the logistical optimization of production locations Purchases and supply-chain optimization resulting from inputs standardization Higher efficiency in the allocation of capex among processing plants ~5% Consumer products Admin & financial Production geography optimization for selected volumes of bottle soy oil, washing soap and powder detergent Development of the BB market in Bolivia: Growth potential within the BB and Gastronomy segment as the market develops Room to participate in new CPG categories and/or categories with low penetration Detergents, Softeners and Stain Removers; Sweet biscuits; Cereals; Sauces Potential for Fino s products to increase its market reach through SAO s network Business functions optimization and lower administration cost per capita Lower financing costs from access to better financing conditions under Alicorp s operations and through working capital optimization ~ US$.0mm ~ US$ 5.0mm ~45% ~5% Crushing Investment optimization resulting from Fino and SAO s combined capacity and footprint Rent savings from the utilization of SAO s unused silos for grain storage Reduced transportation costs by leveraging on the combined transportation and production footprint ~ US$ 3.0mm ~ US$.0mm ~5% Source: Company management Note: Estimation by Integration Management Office 0

12 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ]

13 STRATEGIC PILLARS Alicorp s achievements for Q 8 CONSUMER GOODS PERU BB AQUACULTURE Core Categories Innovation / R&D Value Channel Innovation / R&D Market Expansion Pasta Sauces Canned Tuna Pre-mixes Multipurpose Detergent Pasta Wavy potatoes CA Growth Laundry Care Edible Oils Cereals Baby segment +7.% MS% 5 of 9 categories Edible Oils +4.8% Cookies & Crackers Pizza flour Dough Improver R&D +5.7% +.3% Special Diets Efficiencies Implementing an efficiency-driven culture across the organization Savings of S/ 80M since we started the efficiency program 3 Savings for S/ 5.3M during Q 8 mainly due to efficiencies in COGS Manufacturing Procurement Distribution Others Q 8' Savings GROSS PROFIT 4 5 One Alicorp Mindset Transfer knowledge across the organization Leverage corporate capabilities Share best practices among business and geographies VP of Consumer Goods International VP of Bolivia People Revenue growth Q 8 vs Q 7. Categories in which we gained or maintained market share. Estimates based on volume share. 3 Savings do not include gross-to-net of 07 and Q 08. In the Q 08, Alicorp generated S/6M in gross-to-net savings. 4 SG&A normalized saving partially offsett with incorporation of new corporate capacities 5 Excludes one-off expenses related to the implementation of efficiency initiatives.

14 SG&A COGS Our Efficiency Plan is showing improvements at Gross Margin and EBITDA margins levels Our efficiency plan execution has impacted our non-raw material COGS and SG&A. Both improvements were partially offset by the increase of commodity prices and non recurrent expenses Alicorp s organic Gross Profit margin decreased by 0.7 p.p. as a result of higher commodity inflation, but was partially offset by savings in manufacturing and procurement costs % of Revenue (PEN Million),498,0 67.%, % % % %, %,94 Q 7' Q 8' Q 8' 70.6% 4.3% 56.3% Raw material costs increased 3.5 p.p. YoY as percentage of Revenue due to increasing commodity prices, mainly wheat However, other COGS as packaging, manufacturing, logistics, labor, energy, among others costs, decreased, overall,.0 p.p. as percentage of Revenue + Raw Materials Others Total SG&A, as percentage of revenue, decreased in 0. p.p.. Excluding non recurrent expenses would have decreased in 0.3 p.p. % of Revenue (PEN Million) 7 5.% % 30 4.% 8 0.4% 9 0.5% 9 0.4% % % 9 3.8% Q 7' Q 8' Q 8' + Efficiency initiatives implemented in SG&A allowed to reduce our expenses in 0.3 p.p. Non-recurrent expenses are i) restructuring expenses, ii) expenses related to the transaction in Bolivia, iii) impairments, or iv) gain or loss from sales of non-core assets. During Q 8 these expenses amounted to S/ 9. million SG&A Non recurrent expenses 3

15 NET INCOME SG&A COGS REVENUE while we closely monitor all of our Efficiency initiatives to unlock our full potential KEY INITIATIVES PHASE TARGET Q 8 RESULTS Pricing Strategy: Focus on maximizing marginal Revenue Gross-to-Net: Reduction of sales discounts without sacrificing Volume Q4 08 Q4 08 Gross-to-Net discounts improved from 3.% to.% Growth Procurement: Generate savings via efficient sourcing program Q4 08 Procurement: Corporate Sourcing efficiencies for PEN 3M Lean Manufacturing: Optimize and standardize our industrial processes Q4 08/9 Lean Manufacturing: 5.8% cost / ton reduction Logistics: Effective internal distribution of raw materials and finished product Q3 08 Logistics: 7.7% cost / ton reduction Efficiencies 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 Q4 09 Q 09 Q 09 Q4 09 Org. Structure: Design complete and Implementation start Go-to-market: Design phase in Brazil ERP: Design phase through all levels People Working Capital: Improvement in Cash Conversion Cycle Liability Management: Optimize capital structure while reducing financial expenses Hedging Strategy: Minimize FX losses Q 08 Q 08 Q 08 Continuous improvement of our payment terms allow us to partially offset a temporary increase in the inventory Reduction of our all-in cost of debt to 4.8% without decreasing its average life 4

16 resulting in material improvements starting to notice in terms of profitability due to structural changes in Argentina PILLAR TOP LINE KEY INITIATIVES & INSIGHTS (TMk) Volume Pasta facility shutdown Downsizing our industrial footprint (e.g., closing of our pasta facility, adjust blue collar staffing) Refreshing our product portfolio (e.g., Zorro (HC) and (ARSM) Q 7' Q 7' Q3 7' Q4 7' Q 8' Q 8' Revenue Plusbelle (PC)) with ad campaigns Client segmentation and pricing strategy (e.g., from 47 to 7 pricing lists, margin by client type) Focus on reverting operating cash-flow to positive (e.g., no intercompany since February) Q 7' Q 7' Q3 7' Q4 7' Q 8' Q 8' Efficiencies PROFITABILITY (EBITDA) (ARSM) -0.5% -8.8% -4.9% -.3% -.4% -0.5% -8.8% -5.3% -.3% -9.% -3.5% -4.0% Manufacturing (US$ 3.mm) EFFICIENCY PLAN (FY Normalized Savings) US$.mm YTD Normalized Savings Lean Management Implementation Process in both of our footprints: San Justo and Garín 0% Blue collar Staffing reduction -9 Procurement (US$ 7.5mm) US$ 5.mm YTD Normalized Savings 78% due to better Raw Material Negotiation Prices and % due to Design to Value Projects Excl. corporate expenses EBITDA mg breakeven Q 7' Q 7' Q3 7' Q4 7' Q 8' Q 8' EBITDA Mg +4.% +5.4% EBITDA Mg Excluding one shots Org. Structure (US$.mm) Working Capital (US$.3mm) Right sizing for Growth US$ 0.6mm YTD Normalized Savings 5% Administrative Staffing reduction Improve in Account Payable Cycle Reduce Financial Expenses 5

17 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ] 6

18 3 Q 08 Key Highlights (/) Q 08 was a strong quarter in terms of growth, driven by our operations in Peru and Aquaculture business performance. Meanwhile, the international division was affected by several economic headwinds (Argentina) and political turbulence (Brazil) REVENUE & GROSS MARGIN HIGHLIGHTS (PEN Million) + 6,949 7,09 7,44 +,554,7,787,89,3 6.3% 7.6% 6.9% 6.% 4.3% 7.5% 7.6% 7.0% Total Revenue increased 8.8% YoY. Excluding Fino, Revenue increased 5.8% explained by the contribution of Consumer Goods Peru (+6.3% YoY), Aquaculture (+.3% YoY) and BB (+5.7% YoY) Gross Margin was 4.3% (-.6 p.p.) Excluding Fino, Gross Margin was 6.% (-0.7 p.p.) Q 7' Q 8' Q 7' Q 8' Q 8' FY 7' LTM Q 8' LTM Q 8' EBITDA & EBITDA MARGIN HIGHLIGHTS (PEN Million) %.3% 3.6% 3.3%.% 3.0% 3.0%.7% EBITDA reached S/ 59.3 million, while EBITDA Margin was.% (-.4 p.p.) Excluding Fino, EBITDA reached S/ 5. million, while EBITDA Margin was 3.3% (-0.3 p.p.) mainly explained by lower Gross Margin, partially offset for lower SG&A and other expenses Q 7' Q 8' Q 7' Q 8' Q 8' FY 7' LTM Q 8' LTM Q 8' Q 08 figures include Fino s financials. Excluding the acquisition of Fino, Alicorp increased 5.8% YoY in Revenue, 3.4% YoY in EBITDA and decreased.3% YoY in Net Income. 7

19 3 Q 08 Key Highlights (/) Regarding our bottom-line results, Fino s acquisition financing implied higher financial expenses NET INCOME & NET MARGIN HIGHLIGHTS (PEN Million) + Net Income decreased 3.4% YoY while Net Margin was 5.9% (-.4 p.p. YoY) % 6.% 7.3% 6.8% 5.9% 6.5% 6.6% 6.3% Q 7' Q 8' Q 7' Q 8' Q 8' FY 7' LTM Q 8' LTM Q 8' Financial expenses, hedging costs and currency exchange losses increased in 65% YoY (0.5 p.p.) mainly explained by the effect of the debt related to Fino s acquisition Excluding Fino, Net income decreased.3% YoY while Net Margin was 6.8% (-0.5 p.p. YoY) CONTINUOS INNOVATION We launched/revamped 8 products, among these, the following can be highlighted in the Consumer Goods Peru: i) In the Laundry Category the new Opal Sports specialized detergent, ii) in the Sauce category a new "Tartar" sauce was launched under the "Alacena" brand, and iii) in the Cookies & Crackers category the new "Casino Black" limited edition was launched. These launches were made in order to develop these platforms portfolios Q 08 figures include Fino s financials. Excluding the acquisition of Fino, Alicorp increased 5.8% YoY in Revenue, 3.4% YoY in EBITDA and decreased.3% YoY in Net Income. 8

20 3 Q 08 Financial Highlights Net income decreased 3.4% YoY, mainly due to higher financial expenses related to Fino s acquisition I FINANCIAL LEVERAGE Net Debt-to-EBITDA ratio increased to.03x as of June 08 from.00x as of December 07 Net Debt 3 increased to S/,08.0 million as of June 08, from S/ million as of December 07 (a S/,83. million increase) All-in cost of debt was 4.8% during Q 8, below 5.% as of December 07 II WORKING CAPITAL Cash Conversion Cycle, measured in LTM basis and excluding Fino, decreased to 8.6 days (as of June 08) from 0. days (as of December 07) III NET INCOME Net income reached S/ 5.3 million (- 3.4% YoY), while Net Margin was 5.9% (-.4 p.p. YoY) Higher financial expenses of S/.8 million (+55.5% YoY) and higher FX losses of S/ 5.8 million IV CREDIT RATING All credit ratings agencies have reaffirmed the investment grade with a "stable" outlook The local agencies Apoyo & Asociados and Equilibrium affirmed AAA rating of bonds, while the international agencies S&P, Fitch and Moody s affirmed BBB-, BBB and Baa3 ratings, respectively. Financial information under IFRS 9 & 5. Financial information including Fino in the last months. 3 Net Debt is Financial Debt minus cash and cash equivalents as of Q 8. 9

21 3 Consumer Goods Peru HIGHLIGHTS Q 08 INSIGHTS INNOVATION & POSITIONING Revenue and Volume increased by 6.3% YoY and 7.3% YoY respectively, on the back of our core categories growth such as Laundry Detergents, Edible Oils, Pasta, Cookies and Sauces Gross Margin increased by. p.p. YoY mainly explained by i) our revenue management strategy and ii) savings in procurement, transport, and production costs EBITDA reached S/ 30.5 million (-.7% YoY) and EBITDA Margin reached 9.3% (-.6 p.p.) explained by higher promotional and marketing activities Detergents Sauces Category Rank Edible Oils # Laundry Detergents # Pasta # Mayonnaise # Cereals # Jelly # REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million),544,650 (PEN Million) % 36.% 34.6% 35.8% 34.7% 35.4% % 9.5% 0.8% 9.3% 9.7% 9.3% Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' Market share (Δ% YoY) > p.p p.p. < Market share (Δ% YoY) < p.p. Market share (Δ% YoY) < -.0 p.p. 0

22 3 BB HIGHLIGHTS Q 08 INSIGHTS PRODUCT INNOVATION Revenue and Volume increased by 5.7% YoY and 3.7% YoY respectively, backed on the growth of Bulk Oils, Flours and Sauces across all platforms (Food Services, Bakery and Industrial Clients) Gross Margin increased by.5 p.p. YoY explained by lower commodity prices and revenue mix toward more profitable categories EBITDA reached S/ 43. million (+5.5% YoY) and EBITDA Margin reached 0.9% (+.7p.p. YoY) Dough Improver Pizza Flour REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) (PEN Million),503, % 9.5% 7.3% 8.9% 9.8% 0.4% % 9.0% 9.% 0.9%.%.3% Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8'

23 3 Consumer Goods International HIGHLIGHTS Q 08 INSIGHTS Revenue and Volume increased by 3.% YoY and 6.% YoY, respectively, explained by the contribution of Fino s consumer business. Meanwhile, Revenue decreased in Argentina and Brazil explained by: i) higher than expected inflation (+6% YTD) in Argentina and ii) lower price per ton in Brazil due the ongoing Tiering down trend Gross Margin decreased by.4 p.p. YoY, explained by the effects of Brazil and Argentina PRODUCT INNOVATION Argentina Brazil REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) (PEN Million) 5,45, % 4.7% % 0.5% % 30.% 3.% 8.8% 30.% 9.8% 0.% -.% -5 Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8'

24 3 Consumer Goods International - Argentina HIGHLIGHTS Q 08 INSIGHTS Revenue in ARS increased by 6.8% YoY while Volume increased by 3.% YoY. The Volume increase was mainly explained by the Home Care platform (+9.8% YoY); meanwhile, Revenue in ARS grew 6.8% due to pricing adjustments (+3.0% YoY) to pass-through inflation. Nevertheless, in Peruvian Soles, the currency depreciation (+5.4% YoY) affected the consolidated figures EBITDA increased in ARS 5.7 million, while EBITDA Margin improved in 4.8 p.p. PRODUCT INNOVATION Plusbelle brand Hair Care Bath Soap Deodorant REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (ARS Million) (ARS Million),389, % -9.% -8.8% -4.0% % -9.7% 0.4%.5% 4.3% 0.9%.4%.% Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' 3

25 3 Consumer Goods International - Brazil HIGHLIGHTS Q 08 INSIGHTS Revenue in BRL and Volume decreased by 9.0% YoY and.0% YoY, respectively. The Volume decline was driven by a trucker s strike. Revenue decreased due to the ongoing market dynamic, a Tiering down trend, that reduces the market price per ton and a regional Revenue mix that increases sales in regions with lower prices EBITDA was BRL.7 million compared to BRL 0.7 million in Q 7, while EBITDA Margin decreased 7. p.p YoY to.5% Hair Care PRODUCT INNOVATION Jelly REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (BRL Million) (BRL Million) % 33.0% 35.0% 3.3% 34.4% 33.5% Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' 8-7.0% -.0% 8.7%.5% 6.7% 4 3.0% Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' 4

26 3 Consumer Goods International - Bolivia BUSINESS INSIGHTS HIGHLIGHTS Edible oil ALICORP BOLIVIA S PORTFOLIO Fino >40% Lard >50% Exports Detergents > 8% Revenue amounted US$.0 millions. Excluding Fino s figures revenue reached to US$.4 millions Pastas > 5% EBITDA was US$ 3.0 millions, while EBITDA Margin reached to 4.% Margarine >60% Laundry Soap >5% Personal Care > 3% REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (US$ Million) + + (US$ Million) % 4.3% 38.7% 40.% 9.8% 4.% 4.7% 34.0% 0.5%5.3% 0 3.6% 4.% 0.3% 5.8% 4.8% 4.% Q 7'Q 8' Q 7'Q 8' Q 8' FY 7' LTM Q 8' LTM Q 8' Q 7'Q 8' Q 7'Q 8' Q 8' FY 7' LTM Q 8' LTM Q 8' xxx Market share 5

27 3 Crushing HIGHLIGHTS BUSINESS INSIGHTS Soybean is the main crop of Bolivia with ~.3M productive hectares located mainly in the Santa Cruz region Price trend along with the low yield in Bolivia have affected the current performance of the business The business added 93.7 thousand tons and S/ 57.6 million in the Q 8 consolidated figures For Q 8 Gross Margin was.% while EBITDA Margin was -.8%.8.7.8, ,008 SOYBEAN MARKET % 3% 3% 9% 8% 0% 7% 6% 9% 9% 0% CAGR -7 :.4% ,0,98,56,53,33, Soybean Area (ha) Soybean Yield (MT/ha) 7% 3% 4% 3% 3% Local Production Purchased by Fino Avg:,089 Local Production Purchased by SAO REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN CRUSHING PROCESS DIAGRAM (US$ Million) May & June (US$ Million) May & June Local Growers 48.3 Local Demand.% Q 8' % Exports Q 8' Crude oil Meals Soybean and Sunflower beans 6

28 3 Aquaculture HIGHLIGHTS Q 08 INSIGHTS Revenue and Volume increased by.3% and 3.% YoY, respectively. The main Revenue increase contributor was the shrimp feed platform (+3.9% YoY), while the fish feed platform grew 6.6% YoY Shrimp Feed Gross Margin decreased by 3.0 p.p. YoY to 8.5%, mainly due to higher raw material prices and a Tiering down trend in the shrimp feed platform EBITDA reached S/ 74.0 million (-3.3% YoY) and EBITDA Margin reached.8% (-3.4 p.p.) REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) (PEN Million), , %.0%.5% 8.5%.0%.3% % 3.0% 6.%.8% 4.7% 3.8% Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' Q 7' Q 8' Q 7' Q 8' FY 7' LTM Q 8' 7

29 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ] 8

30 4 Updated Guidance for FY 08 Q strong results are aligned with our organic guidance for Alicorp (ex Fino and SAO). Updated guidance includes the previous guidance for Alicorp coupled with Fino and SAO expectations FY YTD Results Previous Guidance Updated Guidance 4 New Guidance Proforma 08 with Bolivia 3 Full Year 08 5 REVENUE GROWTH (PEN) (%) 7.3% 7.% 5.0% - 7.0% 7.0% - 9.0% 6.0% - 8.0% EBITDA MARGIN (%) 3.0%.7% 3.0% - 3.5%.0% - 3.0%.0% - 3.0% NET MARGIN (%) 6.5% 6.0% 6.5% - 7.0% 5.0% - 6.0% 5.0% - 6.0% ROIC (%) 3.7%.% 3.5% - 4.0% Under Review Under Review NET DEBT/ EBITDA.00x.03x 0.60x x.0x-.50x.30x-.60x NET DEBT/ Norm. EBITDA.00x.03x 0.60x x.0x-.40x.0x -.50x ADJ. NET DEBT/ Norm. EBITDA.00x.03x 0.60x x.05x.35x.5x.45x EPS (PEN) CAPEX (PEN million) Key Considerations Healthy Nutrition Act FX and commodities volatility Previous estimate as of May 08. Excludes excess cash 3 New guidance includes financial figures of Fino and SAO since acquisition date and expected year-to-go figures 08 Raw material prices volatility Current political uncertainty 4 08E do not include EBITDA from synergies 5 Proforma guidance includes FY financial figures of Fino and SAO 9

31 4 Revenue Guidance FY 08 by Business We maintain a cautious guidance in Peru, Argentina, Brazil and Bolivia, while Aquaculture is expected to continue its growing trend. We will constantly review our guidance based in the performance of our business units FY YTD Results Previous Guidance New Guidance 08 with Bolivia Proforma Full Year 08 CONSUMER GOODS PERU 6.4% 8.9% 4.0% - 6.0% 7.0% - 9.0% BB 3.4% 4.5% 3.5% - 5.5% 5.0% - 7.0% CGI ARGENTINA (3.7%).% (8.%).9% (6.0%) - (4.0%) n.a (8.0%) - (6.0%) 30.0% % 30.0% % CGI BRAZIL (0.7%) (5.4%) (8.%) (.3%) (5.0%) - (3.0%) n.a (4.0%) - (.0%) (5.0%) - 0.0% (5.0%) - 0.0% CGI BOLIVIA 3.3% 7.% n.a n.a n.a n.a (8.0%) - (6.0%) (7.5%) - (5.5%) (8.0%) - (6.0%) (7.0%) - (5.0%) AQUACULTURE.8% 5.9% 7.8% 8.8%.0% - 4.0% n.a 9.0% -.0% 8.0% - 0.0% 9.0% -.0% CRUSHING n.a n.a n.a n.a n.a n.a 4.0% - 8.0% 4.5% - 6.5%.0% - 3.0%.5% - 3.5% Previous estimate as of May 08. Excludes Fino and SAO operations. Growth calculation includes FY financial figures of Fino and SAO. Guidance in PEN Guidance in local currency 30

32 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ] 3

33 Jul-7 Aug-7 Sep-7 Oct-7 Nov-7 Dec-7 Jan-8 Feb-8 Mar-8 Apr-8 May-8 Jun-8 5 Sell-Side Research Estimates on ALICORC Current Stock Price Consensus vs. Previous ALICORC, EPU and BVL Benchmark July 7 th LTM Stock price Jul. 7, 08:.80 Jul. 8 Jul. 8 Jul. 8 5.% 0.0%.5% ALICORC EPU IGBVL Jul. 8 Jun. 8 May % 6.9%.9% 0 00 Apr. 8 Apr. 8 Dec % -5.9% 9.3% Stock performance LTM: ALICORC: EPU IGBVL +4.% +5.9% +0.9% Stock performance YTD: (Jan. Jul. 7, 08) ALICORC: +.3% EPU -0.7% IGBVL +.0% Sept Previous Current Upside Previous median: 0.67 Current median:.45 3 Potential upside: 5.5% -.5% 40 Research Recommendation Important Awards Previous Current Dec Jul Buy 70% Buy 90% Institutional Investor Hold 30% Hold 0% Top 0 Most Admired Companies in Peru Latin America Executive Team Rankings 4 Good Corporate Index Lima Stock Exchange Potential stock price appreciation against price market as of July 7 (PEN.80). As of December 3, As of July 7, 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. 3

34 Topics Bolivia s M&A Transaction [ ] Corporate Strategy [ ] Q 08 Financial Results [ 3 ] Guidance 08 [ 4 ] Stock Performance [ 5 ] Appendix [ 6 ] 33

35 About Alicorp

36 6 Alicorp is a leading consumer branded products company in Peru and South America Business overview Business Consumer Goods BB Aquaculture Platforms Food, home & personal care products Edible Oils Laundry Care Pasta Bakeries, industrial products and food service Ind. Baking Flour Shortenings Shrimp and fish feed Shrimp Feed Key Categories Sauces Cookies & Crackers Personal Care Ind. Margarines Industrial Sauces Fish Feed # of Brands Direct Presence Peru Brazil Argentina Bolivia Ecuador Peru Ecuador Chile Peru Ownership structure Strong growth track record Other; 0.% (PEN million) Revenue CAGR 04-08: 4.8% 3 Inv. & mutual funds; 7.% Pension funds; 6.9% Source: Cavali as of June 08 Romero Group; 45.8% Revenue EBITDA EBITDA Margin 6,949 7,09 7,44 6,57 6,437 6,475.%.4% 3.0% 3.0%.7% 7.8% Q 8' Q 8' + EBITDA and EBITDA Margin for 04 accounted S/ million and.0% respectively, ex extraordinary losses of S/ 07.5 million. LTM. 3 Includes Fino s figures (May-Jun 8 ). 35

37 Competitive Advantages Strategic Initiatives 6 with a well-defined strategy that provides sustainable growth rates Alicorp carries a diversified portfolio and maintains leadership in all of its business units Diversified revenue base Q 8' LTM BB % CMP 37% BB % Crushing % CMP 36% Diversified EBITDA base Q 8 LTM BB 8% BB 8% Crushing -0.3% CMP 54% CMP 53% Aquaculture 8% CMI 4% Revenues: S/ 7,09 million Aquaculture 7% CMI 5% Revenues: S/ 7,44 million Aquaculture 9% CMI -0.4% Revenues: S/ 935 million Aquaculture 8% CMI 0.6% Revenues: S/ 94 million + + By jointly leveraging through its competitive advantages and strategic initiatives Go-to-market strategy 50K POS for traditional channel 366 POS for modern channel 3 Health & wellness products Brand management 05 brands in 3 countries & exports to 9 countries Product development 4 new products launched & revamped in new products launched & revamped in 08 4 Plant consolidation & automation Strategic M&A 8 acquisitions since 0 Continuous costs saving Commodity purchasing Economies of scale and centralized platform program EBITDA calculation per business ex unassigned corporate expenses. Information provided by the Consumer Goods Peru division. 3 Includes Supermarkets and Cash & Carrier. 4 YTD Jun

38 6 both organic and inorganic Growth focused on core and next-to-core platforms Successful new product launch strategy, with 63 launches since 0 (# of products) Selected products launched in Q 8' Consumer Goods Peru Consumer Goods International BB YTD Jun. 08 Aquaculture Growth through Mergers & Acquisitions International Acquisitions Domestic Acquisitions 37

39 6 In Consumer Goods Peru (CGP), we are market leaders in almost every category in which we participate Alicorp is the leading consumer goods company, competing with global and local players, such as Procter & Gamble, Unilever, Mondelez, Nestle, Carozzi, among others Ranked # in over 0 product categories Category Brands Position % of sales % of EBITDA 3 Competitors Laundry Detergents # 7.6% 8.3% Edible Oils # 7.3% 9.0% Pasta # 5.0% 5.9% Cookies & Crackers # 3.5%.% Mayonnaise & other Sauces #.8% 7.9% Laundry Soap #.8% 4.3% Cereals #.3%.5% Margarines #.%.4% Household Flour # 0.9%.% Dessert # 0.9%.% Source: Kantar World Panel 35.6% % 5 Alicorp has +50% of the market share. Based on consolidated Revenue Q 8' LTM. 3 Q 8' LTM. Calculation per business. 4 Total CGP/ Consolidated Revenue. 5 Total CGP/ Consolidated EBITDA. 38

40 Value Mainstream Premium 6 thanks to a strategy that focuses on effective market and customer segmentation Market and customer segmentation allows a more efficient pricing process and pass-through of commodities price increases Product classification Edible Oils Pasta Flour Laundry Care Cookies & Crackers Includes Detergents and Laundry Soap. 39

41 MODERN TRADITIONAL CHANNEL 6 and to our unique model of distribution that reaches all channels Consumer Goods Peru: Go-to-Market model Superior availability of Alicorp s products in the marketplace /3 Alicorp Competitor A L I C O R P 48% 5% 0% 7% Exclusive distributors Wholesalers Non-Exclusive distributors Average Sales ticket S/ 50 Average Sales ticket S/ 0,000 Average Sales ticket S/ 7,50 Supermarkets 366 Stores S H O P P E R Mayonnaise Margarines Juice Powders Edible Oils Pasta Laundry Soap Laundry Detergents Cookies & Crackers Jelly Direct distribution Indirect distribution Data as of February 08. Data: All from Jun 8, except for Margarines (Nov 7), Juice powders (Nov 7), Mayonnaise (Abr 8), Laundry Soap (Aug 7) and Jelly (Oct 7). 3 As measured by market penetration in each category against Alicorp s closest competitor. 40

42 6 Likewise, in BB we are also market leaders Ranked # in main categories Category Brands Position % of sales % of EBITDA 3 Competitors Industrial Baking Flour # 7.5%.% Industrial Oil # 6.0% 8.% Shortenings #.% 3.3% Sauces #.3%.7% Industrial Margarines # 0.8%.% Frozen Products # 0.7% 0.% Source: Kantar World Panel 0.6% 4 8.4% 5 Alicorp has +50% of the market share. Based on consolidated Revenue Q 8' LTM. 3 Q 8' LTM. Calculation per business. 4 Total BB/ Consolidated Revenue. 5 Total BB/ Consolidated EBITDA. 4

43 6 Meanwhile, 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 One of the largest consumer goods companies in Latin America Category Brands Position % of sales Competitors Brazil Pasta # 3.9% Argentina Hair Care #.0% Laundry Detergents #3.5% Skin Care #.% Ecuador Pasta #3 0.4% Sauces # 0.% Bolivia Laundry Detergents #3 0.% Laundry Soap #3 0.% Edible Oils 4 # 0.% Lard 4 # 0.% Margarine 4 # 0.% Pastas #4 0.% Source: Nielsen NRI 4.9% 3 Alicorp has ~35% of market share in pastas (Area II in Brazil) and [5% -5%] of Market Share in Personal Care (Argentina). Based on consolidated Revenue Q 8' LTM. 3 Total CGI/ Consolidated Revenue. 4 Q 8 / consolidated Revenue Q 8' LTM 4

44 6 Finally, in Aquaculture, we differentiate among our competitors thanks to constant innovation and quality We are leaders in the Shrimp Feed market in Ecuador and Peru and the 4 th largest competitor in the Fish Feed Market in Chile (Salmon) One of the largest aquaculture companies in Latin America Category Brands Position % of sales Competitors Shrimp Ecuador # 5.% Peru # 0.9% Nicaragua # 0.6% Honduras #3 0.5% Panamá #3 0.% Costa Rica # 0.05% Fish Chile #4 8.0% Peru # 0.9% Source: Internal Estimates 6.7 % 3 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 +0% of market share in Chile. Based on consolidate Q 8' LTM. 3 Total Aquaculture/ Consolidated Revenue. 43

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