Corporate Presentation. Presentation3

Transcription

1 Corporate Presentation Presentation3 April, 2014

2 Presentation3 Disclaimer (Forward looking statements) This presentation may contain forward-looking statements concerning recent acquisitions, its financial and business impact, management s beliefs and objectives with respect thereto, and management s current expectations for future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words anticipates, may, can, plans, believes, estimates, expects, projects, intends, likely, will, should, to be, and any similar expressions or other words of similar meaning are intended to identify those assertions as forwardlooking statements. It is uncertain whether the events anticipated will transpire, or if they do occur what impact they will have on the results of operations and financial condition of Alicorp or of the consolidated company. Alicorp does not undertake any obligation to update the forward-looking statements included in this presentation to reflect subsequent events or circumstances. 1

3 Business Overview 2

4 Presentation3 Business Overview Leading consumer branded products company in Peru and South America Exposure to highly attractive markets with solid macro and industry fundamentals Best-in-class product portfolio with significant brand recognition and strong market share penetration Extensive and unique distribution network throughout Peru Diversified product portfolio participating across all relevant consumer segments and socioeconomic levels Successful track record of organic and inorganic growth allowing consistent cash flow generation and profitability 3

5 1 Alicorp is a leading consumer branded products company in Peru and South America Presentation3 Business overview Strong growth track record Overview Consumer goods Food, home & personal care products B2B branded products Industrial flour for bakeries, and foodbased products for restaurants Animal nutrition Shrimp and fish feed (PEN million) Revenue EBITDA EBITDA margin 5,822 Revenue CAGR : 12.9% EBITDA CAGR : 15.9% 4,256 4,474 3,666 3,703 3,752 Main brands # of Brands 131 Brands 33 Brands 2 Brands Presence Ownership structure Peru Brazil Ecuador Peru Colombia Ecuador Chile Peru Argentina Chile Colombia Guatemala Panama CR 2, % 14.4% 13.0% 12.5% 13.2% 11.3% 9.8% Diversified revenue and EBITDA base 2013 Inv. & mutual funds 12.9% Pension funds 29.1% Source: Cavali as of September 30, 2013 Other 12.7% Grupo Romero 45.4% B2B Branded Products 25% Animal nutrition 15% Consumer goods 60% Revenues: S/. 5,822.0mm B2B branded products 24% Animal nutrition 12% EBITDA: S/ mm Consumer goods 64% 4

6 Presentation3 1 and a well-defined strategy that allows sustainable growth rates Alicorp s unique strategic focus Be the leading local branded consumer packaged goods company in Latin America Consolidate both our leadership in core platforms and solid portfolio through our organic growth and strategic acquisitions Core Platforms Pasta Bakery Edible oils Sauces Home Care Culinary Personal Care Cookies / Crackers Commodity purchases Lever our brand s leading position and solid profitability through our competitive advantages Go-to-market strategy Brand management Product development Opportunistic M&A 5

7 Presentation3 2 coupled with a large-scope geographic platform Alicorp has focused its strategy on becoming a leading regional and diversified consumer goods player Geographic diversification Revenues breakdown Belize Haiti Guatemala Honduras Nicaragua Costa Rica Panama DR Colombia Peru 100% Peru 64% Argentina 10% Brazil 9% Ecuador 7% Others 10% Ecuador Peru 2006 Revenues S/. 2,110.1mm 2013 Revenues S/. 5,822.0mm EBITDA breakdown Key: Headquarters Direct presence Exports Chile Argentina Bolivia Peru 100% Peru 70% Brazil 14% Ecuador 9% Argentina 3% Others 4% 2006 EBITDA S/ mm 2013 EBITDA S/ mm 6

8 3 Best-in-class diversified product portfolio with unmatched brand leadership in Peru Presentation3 Alicorp is the leading consumer goods company, competing with global and local players, such as Procter & Gamble, Unilever, Kraft, Nestle, Carozzi, among others Ranked #1 in over 10 product categories 1 Category Brands Market share Position % of sales 2 % of EBITDA 2 Competitors Industrial Baking Flour 3 59% #1 11.5% 8.2% Edible Oils 54% = #1 8.0% 7.4% Who? Traditional Cooking SEL housewife enthusiast Go Getter Urban Mom Price hunter Healthy physical AB Enjoys cooking & emotional lifestlye for her Laundry Detergents for others, Achieving 57% #1 6.7% 8.6% and her family C as expert Prioritizes Focused on while taking care (15%) savings. Goes the children's health of family extra mile to and well being & (30%) save. Likes Pasta D being a good feeling a smart 49% = #1 6.5% 8.4% wife E. Sure bet / never. Fit w/ healthy. Price & Drivers of. Nutrition. Expertise fails lifestyle promotions Cookies & Crackers 44% = #1 5.2% 4.0% preference. Healthy (20%) experimenting, being recognized. Enhancement of economic independence. Speed / ease of (15%). Up-to-date trends shopper (20%) Shortenings 3 ingredients flavor use / premiumness. Trusted brands 58% #1 2.5% 3.8% Mayonnaise 96% = #1 2.4% 5.5% Laundry Soap 77% #1 1.9% 1.2% Margarines 59% #1 1.6% 3.2% Juice Powders 67% #1 1.2% 1.8% Gr. Salomón Source: Kantar World Panel ¹ Market share as of ND 13 2 Based on consolidated LTM Sales and EBITDA as of December 31, Market Share as of September 30, % 52% 7

9 Value Mainstream Premium 3 through a strategy that focuses on effective market and customer segmentation reaching all socioeconomic levels Presentation3 Market and customer segmentation allows a more efficient pricing process and passthrough of commodities price increases Product classification Edible oils Pasta Flour 1 Home care 2 Cookies & crackers Source: IPSOS Apoyo 1 Includes industrial baking flour and household flour 2 Includes laundry detergents and laundry soap 8

10 Brand Equity 3 achieving extraordinary customer recognition and market share penetration Presentation3 Sustained market dominance across all socioeconomic segments 220 Edible Oils Pastas Laundry Detergents Ariel Industrial Baking Flour Consumer food products % market share Edible Oils 55% 53% 57% Pasta 51% 55% 54% 44% 46% 45% 46% 45% 49% Ace Personal home & care products Cristalino Metro Ideal Sao Deleite Bell s Don Maximo Anita Marco Polo GN Cogorno Magia Blanca Sapolio Ña Pancha Patito Invicto Cogorno Don Angelo Anita Molitalia Las Mercedes Alicorp s brands enjoy superior equity value on every price Tier % market share Laundry Soap Laundry Detergent 88% 79% 81% 75% 76% 77% 34% 40% 47% 53% 55% 57% B2B branded products % market share Industrial Baking Flour Shortenings 59% 55% 55% 54% 55% 54% 54% 54% 58% 51% 50% 53% Source: Kantar World Panel (December 2012) Note: Logos correspond to Alicorp s brands in each category 9

11 3 with increasing relevance and brand recognition in the rest of the countries Presentation3 Alicorp s business model has proven to be successfully replicable in other countries One of the largest consumer goods products companies in Latin America 1 C a t e g o r y B r a n d s M a r k e t s h a r e P o s it io n % o f s a le s 2 C o m p e tito r s B r a z il P a s t a 56% = # % A r g e n t in a H a ir C a r e 4 27% = #2 3.0 % L a u n d r y D e t e r g e n t s 4 6% = #3 2.6 % P e r s o n a l C a r e S o a p 4 18% #2 1.9 % E c u a d o r P a s t a 11% = #4 0.5 % M a y o n n a is e 5 % = #3 0.1 % Source: Kantar World Panel ¹ Market share as of ND 13 2 Based on consolidated Sales as of December 31, Market share position includes only Minas Gerais 4 Market share as of December % 10

12 4 Extensive and hard to replicate distribution network in Peru coupled with a growing platform in South America Presentation3 Supply chain footprint Extensive distribution platform in Peru Ecuador Distribution network in key regions through local distributors Strong wholesaler and retailer distribution Animal Nutrition plant Brazil Minas Gerais region-wide distribution network 65% client coverage Strong retailer and supermarket distribution Industrial plant and 11 warehouses Piura Chiclayo Trujillo Tarapoto Iquitos National distribution coverage 32 exclusive distributors 100% of wholesalers & supermarkets 12 warehouses 25 sales offices Logistics in 4 of the most important ports in the country 30 industrial plants Argentina Distribution network in key regions Strong presence in rural areas 9 industrial plants in Buenos Aires Chile Direct sales to final client with specialized sales force 1 industrial plant in the Chiloe Island Huaraz Exclusive Distributors Sales Offices Huacho Lima Chincha Huanuco Pucallpa Tarma Ica Huancayo Ayacucho Cusco Arequipa Juliaca Tacna Warehouses 11

13 TRADITIONAL CHANNEL Presentation3 4 with a unique model reaching all distribution channels in Peru CPG Peru: Go to Market model Barriers Sales derived of entry mainly from traditional distribution Alicorp revenues by distribution channel A L I C O R P Wholesalers Exclusive distributors Non-Exclusive distributors 130,000 Sales ticket: LOW 80,000 Sales ticket: HIGH 50,000 Sales ticket: MEDIUM Supermarkets 170 Stores 44.7% 31.8% 12.0% 11.5% S H O P P E R 7% 31% 22% 12% 28% Superior availability of Alicorp s products in the marketplace 1 Mayonnaise Margarines Juice powders Edible oils Wholesalers Exclusive distributors Non exclusive distributors Source: Company information. Data as of December 31, % 83% 58% 75% 71% 96% 91% 60% Alicorp Competitor Laundry soap Laundry detergents Cookies & crackers B2B 40% Modern channel 65% 98% 94% 94% 97% 90% Direct attention Indirect attention 96% Pasta 69% Food products 46% Jelly 27% Other lines 1 As measured by market penetration (numeric distribution) in each category against Alicorp s closes competitor 12

14 Pasta Flour Shrimp Feed Detergents Edible oils Bulks Oils Sauces Cookies & crackers Shortenings Hair care 5 Diversified product portfolio participating in all relevant categories and tiers Presentation3 Well-diversified across 3 business lines 2013 revenue breakdown by business line 2013 EBITDA breakdown by business line Food products B2B branded products Animal nutrition 26% 15% 59% Consumer product goods Home & personal care products International 31% 37% 69% Consumer product goods 63% Peru B2B branded products 65% 65% Animal nutrition 10% 27% 63% Consumer product goods Home & personal care products 26% International 31% 74% Food products Consumer product goods 69% Peru Increase in product diversification Product mix breakdown by revenue EBITDA diversification Ranking by contribution to 2013 EBITDA 6% 9% 31% 54% 11% 15% 21% 18% 30% 25% 38% 42% 15% 11% 10% 8% 7% 7% 6% 4% 4% 3% Consumer food products Home & personal care products B2B branded products Animal nutrition 13

15 6 Alicorp has a strong and successful track record of organic and inorganic expansion Presentation3 Growth focused on core and next-to-core platforms Successful new product launch strategy, with over 25% of 2013 revenues generated from products launched since 2006 (# of products) Selected products launched in 2013 Food products & personal and home care B2B branded products Growth through Mergers & Acquisitions Who? SEL Traditional Cooking housewife enthusiast Go Getter Urban Mom Price hunter AB C D E Healthy physical Enjoys cooking & emotional lifestlye for her for others, Achieving and her family experimenting, economic (15%) being recognized independence as expert Prioritizes Focused on while taking care (15%) savings. Goes the children's health of family extra mile to and well being & (30%) save. Likes being a good wife feeling a smart (20%) shopper (20%). Sure bet / never. Fit w/ healthy. Price & Drivers of. Nutrition. Expertise fails lifestyle promotions preference. Healthy. Enhancement of. Speed / ease of. Up-to-date trends ingredients flavor use / premiumness. Trusted brands Domestic Acquisitions International Acquisitions Since 2006, Alicorp s growth comes 25% from acquisitions, 75% from organic growth 14

16 6 allowing for consistent top line growth, cash generation and profitability Presentation3 Revenues (PEN million) EBITDA & EBITDA margin (PEN million) 13.2% 14.5% 13.0% 12.5% 13.2% 5, % ,256 4, % 14.5% 12.4% 12.5% 14.0% 3,666 3,703 3,752 7% 11% 25% % 6% 7% 35% 30% ,805 6% 31% 28% 30% 17.1% 17.0% 14.2% 12.6% 11.5% 31% % 63% 64% 66% 63% 58% 59% % 11.3% 10.9% 7.6% 7.2% Consumer product goods B2B branded products Animal nutrition Consolidated 1 Consumer product goods B2B branded products Animal nutrition Note: IFRS figures for 2010, 2011, 2012; 2007, 2008 and 2009 based on Internal reclassification 1 Includes EBITDA of other business 15

17 Business Segments 16

18 Presentation3 Business Segments 9 Consumer product goods 10 B2B branded products 11 Animal nutrition 17

19 Pasta Laundry detergents Edible oils Cookies & crackers Hair care Sauces Laundry soap Beauty soap Margarines Presentation3 9 Consumer Product Goods Revenues EBITDA and EBITDA margin (PEN millions) (PEN millions) 12.3% 11.2% % 13.4% 12.2% % % % 155 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Consumer product goods ranked by 2013 revenues 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Consumer product goods revenues mix (% of line revenues) 24% 16% 13% 11% Food products 70% 6% 5% 4% 3% 3% Home & personal care products 30% Source: Company information. Data as of December 31,

20 Presentation3 10 B2B branded products Revenues (PEN millions) EBITDA and EBITDA margin (PEN millions) % % % 13.2% % 10.7% % 12.4% Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 B2B branded products ranked by 2013 revenues B2B branded products revenues mix (% of line revenues) 45% Bakery 54% 25% Industries 15% 10% 6% 4% 2% Industrial baking flour Bulk Oils Shortenings Nutritional inputs Food service sauces Margarines Food Service 31% Source: Company information. Data as of December 31,

21 Presentation3 11 Animal Nutrition Revenues (PEN Millions) EBITDA and EBITDA margin (PEN Millions) % 15.8% 8.7% 7.2% 6.8% 10.2% 9.6% 15.2% Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Animal nutrition products ranked by 2013 revenues Animal nutrition revenue mix 55.0% 45.0% Shrimp Feed 55% Salmon Feed 45% Shrimp Feed Salmon Feed Source: Company information. Data as of December 31,

22 Finance Overview 21

23 Presentation3 Finance Overview 12 Historical performance 13 Risk diversification 14 Trading performance 22

24 Presentation3 12 Historical performance indicators (cont d) Gross debt Gross debt / EBITDA (PEN million) Short Term Long Term - Current Portion Long Term 1, x 2.30x 2.59x 1, , EBITDA / Interest expenses 1.10x 1.00x 0.90x Debt Service Coverage 18.7x 10.0x 6.5x 4.8x 4.7x 7.3x Q12 4Q12 1Q13 2Q13 3Q13 4Q13 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Note: Information under Peruvian GAAP Standards and after under IFRS 23

25 Presentation3 12 Historical performance indicators (cont d) Net Debt Debt Breakdown by currency 1 (PEN Million) 5% 4Q13 3Q13 Var. % 18% 32% USD PEN Current Debt % BRL Non-Current Debt 1, , % 45% ARS Total Indebtedness 1, , % (-) Cash % Debt Structure as of December 2013 Others 3% Net Debt 1, , % Bank Loans 34% International Bonds 63% 1 Debt after swap. 24

26 Presentation3 12 Historical performance indicators (cont d) SG&A / Marketing (As % of total revenues) Marketing Administrative expenses Selling expenses Earnings per share (PEN) % 8.6% 9.1% 9.8% 9.9% 5.4% 5.6% 6.1% 4.4% 4.6% 10.9% 5.0% % 2.5% 1.8% 2.4% 2.4% 2.8% 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 ROIC 1 & ROE Dividends per share & dividend yield ROE ROIC (PEN) % 17.6% 14.3% 16.4% 13.4% 13.2% 15.1% 16.0% 12.8% 12.5% 17.2% 16.9% % % 2.8% 2.3% % Q13 2Q13 3Q13 4Q Defined as Operating Profit Sharing and Current Income Tax expense divided by working Capital plus Net Fixed Assets plus Other Net Operating asset. Where: -Working capital excludes debt, other accounts (without financial costs), and Current Assets available for sale. -Net fixed assets exclude non operating fixed assets -Other net operating assets include software and brands. 25

27 Presentation3 12 Historical performance indicators (cont d) Working capital (Days) Commercial accounts receivables Inventory Commercial accounts payable Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 CAPEX (PEN Million) PP&E Acquisitions Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 26

28 Presentation3 12 Historical performance indicators (cont d) Main Drivers of Cash Flow Evolution (PEN Million) Net Cash on Dec-12 Cash generated from operations Taxes Other expenses from operations Investment 1 activities Debt Dividend payment Interest payment Other financial activities Net Cash on Dec-13 1 Includes PP&E, acquisitions, software and other investment activities 27

29 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Presentation3 13 Risk diversification Foreign exchange hedging strategy and exchange rate performance (In US$ MM) US$ Exposure Total Hedging Exchange Rate % YoY -3.8% YoY -4.8% YoY -2.9% YoY -6.3% YoY -5.4% YoY -3.0% YoY % YoY 7.1% YoY 9.6% YoY Hedging 38% 42% 44% 31% 16% 18% 0% 0% 0% 0% 0% 834% 6% 27% 10% 6% 25% 21% 24% 3% 0% 0% 27% 32% 41% 20% 53% 21% 33% 46% Commodity exposure (US$ x MT) Soy Bean CFR Wheat CFR 1,230 1, % YoY -5.7% YoY GM 1Q12: 26.8% GM 2Q12: 27.5% 3.0% YoY 2.2% YoY GM 3Q12: 27.5% GM 4Q12: 27.2% -5.9% YoY -16.8% YoY GM 1Q13: 25.4% GM 2Q13: 27.6% -21.8% YoY GM 3Q13: 27.5% 3.3% YoY 7.9% YoY 14.3% YoY 20.2% YoY 44.3% YoY 26.1% YoY -22.2% YoY -23.0% YoY GM 4Q13: 28.7% -23.3% YoY

30 Presentation3 14 Trading performance Stock price Valuation (PEN) ALICORC ALICORI J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Common shares Outs. (MM) Stock Price 1 Investment Shares Out. (MM) Stock Price 1 Market Capitalization Net Deb 2 (MM) Firm Value 847 S/ S/ S/. 1,893 S/. 6,807 S/. 8,700 Coverage Firm Country Target Price (PEN) Recommendation Date Scotia Capital Peru Outperform Feb. 14 HSBC Peru Overweight Feb. 14 Credicorp Capital Peru 9.50 Maintain Feb. 14 Inteligo SAB Peru 9.70 Neutral Feb. 14 Kallpa SAB Peru 9.90 Buy Feb. 14 Larrain Vial Peru 8.40 Maintain Dec. 13 BBVA Peru 9.45 Neutral Nov. 13 BTG Pactual USA 9.70 Neutral Oct. 13 Performance 4Q13 4Q12 ALICORC1 2.25% 18.75% IGBVL -1.04% -4.82% Industrial Sector IGBVL -2.27% -3.93% Food and Beverage -3.85% 22.19% Average Trading Volume (PEN Millions) Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1 As of March 24, As of December 31,