Conference Call Third Quarter 2016 Financial Results. Presentation3

Transcription

1 Conference Call Third Quarter 206 Financial Results Presentation3 November 3 rd, 206

2 Disclaimer 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 today, are considered valid. Financial and business projections are estimates and does 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 Agenda

4 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 4

5 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 5

6 Revenue Growth and ROIC are key drivers for Value Creation Alicorp has outperformed the industry (Global and LatAm) in both revenue growth and ROIC Sales Growth (USD CAGR) 2,3 ROIC 205 % 2, Industry Average / ROIC includes goodwill 2/ CAGR 2-5 in USD 3/ Source: Company filings 4/ Includes data from companies not presented in the graph. 6

7 With Market Momentum and M&A as Key Levers for growth Alicorp has a strong track record of generating growth through innovation (+00 new launches in the past 5 years) and M&A (7 acquisitions since 20) Breakdown Top-line Growth del Crecimiento Breakdowm Top-line Crecimiento Revenue Growth de Ventas (PEN), (Moneda CARG %, Local PEN), 205 %, Alicorp Consumer Goods,3 (Developed countries) Consumer Goods 2,3 (Emerging countries) Revenue Growth Portfolio Momentum 8.4 (50%) 4.6 (75%) 9.8 (72%) Growth Levers Execution M&A 2.5 (2%) 6. (38%) 0.5 (8%).0 (6%) 2.0 (5%).8 (3%) 4 Exchange Rate / Contains the average growth breakdown of 42 Consumer Goods companies in developed countries. 2/ Contains the average growth breakdown of Consumer Goods companies in emerging countries. 3/ Local Currency 4/ Contribution to the consolidated growth (% Weight) 7

8 Nevertheless ROIC is heavily concentrated in CGP and Aquaculture with the International Division lagging Presentation3 ROIC by Business Unit (Inc. goodwill) %, 205 [2.0% - 4.0%] CGP % Invested Capital % Sales [2.0% - 4.0%] CGI B2B Aquaculture 39% 25% 20% 7% 37% 9% 22% 2% 46% 8% 22% 23% % [.0% - 3.0%] EBITDA 205 [8.0% %] ROIC 0.8% 2 WACC 9.6% 3 With a ROIC (incl. goodwill) at least 3x as big as the consolidated figure, Edible Oils, Sauces, Laundry Care, and Shrimp Feed are the main contributors to value creation and the categories that we need to protect An adverse macro environment, coupled with inability to transfer our capabilities, has resulted in lower ROIC figures for our international division Note : Column [ area C L I E represents N T N A M the E ] contribution to the consolidated ROIC. / Excludes non-recurrent items: Raw material hedging losses, extraordinary tax income in Brazil, Quinoa write-off, among others. 2/ ROIC calculated as EBIT*( - taxes) /(WK + Net Fixed Assest + goodwill). 3/ Weighted WACC by BU: CGP 8.5%, CGI 0.7%, B2B 8.5%, and Vitapro.5%. 8

9 In light of a challenging LatAm scenario, key trends emerge I II III Diminishing growth rates: Low growth is expected in the coming years, with Bolivia and Peru growing above the LATAM average Area II & III In Brazil represent an attractive opportunities for growth: Consumption in Area II and III is higher than Peru, Ecuador and Bolivia together The traditional trade remains the predominant channel in LatAm: Bolivia and Peru have the most fragmented markets Per cápita consumption 205 (in thousand USD) Population 205 (in million) Relevance of Traditional Channel as a % of total consumption % CAGR % 2.4% % 2.7% Área II & III Perú Ecuador Bolivia Consumption 205 (in USD billion) % % Área II & III Perú Ecuador Bolivia 90.2 / [Area II] includes Minas Gerais, Espírito Santo and Rio de Janeiro suburbs and [Area III] Metropolitan region of Rio de Janeiro. 9

10 Redefining our Mission, Vision, and Strategic Pillars Based on the current Latin American context, Alicorp has redesigned its Strategy to focus on value creation with an emphasis in ROIC Mission & Vision Mission We transform markets through leading brands, generating extraordinary experiences among our consumers. We innovate constantly to generate value and welfare for our society Vision Be leaders in the markets where we compete Strategic Pillars Growth Efficiencies People 0

11 Pillar # Growth (/2) : Maximize our competitive advantages in Peru to secure long term growth Presentation3 Strong and unrivaled set of competitive advantages in Peru I Go-to-Market Strategy: Strong distribution network composed of 250K and 284 POS in the Traditional and Modern channel, respectively II Brand Management: Wide experience in market segmentation and product positioning as a lever to capture value (more than 00 brands distributed in 5 categories) III Consumer Insights Know-how of market trends and customer needs increases the likelihood of successful innovations Volume share delta vs. main competitor (in p.p.) Gross Margin delta of main Brands vs. rest of portfolio 2 (in p.p.) Modern Trade Tradicional Trade 20.0 Home Care CGP 4.0 Biscuits Pasta B2B 28.0 Edible Oils / Points of Sale 2/ Rest of portfolio includes other brands in CGP goods Peru and B2B

12 Pillar # Growth (2/2): While aiming to replicate our competitive advantages across selected geographies Presentation3 Focus on markets with similar business dynamics as the Peruvian model; lever our distribution & scale within Area II in Brazil; focus on shrimp feed with emphasis in higher value-added products Markets Consumer Goods International Aquaculture Focus on markets resembling Peru, where we can replicate our competitive advantages Prioritize Shrimp Feed and value - added products New Highly profitable markets with predominance of traditional channel Already strong foothold with export-only operation CA Expand Shrimp Feed footprint in Central America (facility in Honduras under construction) Area II and Area III 2 remain a priority in Brazil Continue to diversify client base; focus on R&D as competitive advantage Existing Lever our distribution, scale, and consumer insights in Area II Optimize Home & Personal Care portfolio on the back of increasing macro environment Develop ad-hoc new products and diets to expand client base / Central America 2/ [Area II ]includes Minas Gerais, Espírito Santo and Rio de Janeiro suburbs and [Area III] Metropolitan region of Rio de Janeiro. 2

13 Pillar #2 Efficiencies: Implementing an efficiency driven culture across the organization Presentation3 Efficiency roadmap is already on track to achieve between 3.0 to 5.0 p.p. savings in costs & expenses, translating in additional +2.0 p.p in EBITDA Margin by 209 I Supply Chain Reduce internal procedures to eliminate as many steps as possible in order to optimize processes and generate efficiencies II III Organization & Infrastructure Go-To-Market Strategy Develop and optimize current organizational design to assure a sustainable optimal structure Sale non-core assets and reevaluate the actual sizing of our team Reevaluate our Go-to-Market Strategy in order to maximize our reach while minimizing costs IV V Portfolio, Pricing & Innovation Culture Review branding strategies and product positioning in order to maximize revenues and profits through an adequate pricing Use of role modeling, communication, incentives, and training to spread an Efficiency Culture towards every single employee 3

14 Pillar #3 People: Develop talent while boosting interconnectivity Presentation3 We believe in our people and care about developing skills, capabilities and accountability. Likewise, we aim to create the best working environment to keep our employees as motivated as possible I One Alicorp Mindset We promote a One Alicorp mindset to: Boost transfer of knowledge among different business units Built competitive advantages outside Peru backed on the know-how and expertise of our people II Talent Management We capture, retain, and develop the most talented individuals to let them help us grow & strengthen our business, achieve our goals and achieve succession High Potential Individuals Committed Leadership Long-Term Growth 4

15 Efficiencies People Growth Presentation3 Roadmap for Value Creation Our Roadmap includes targeted strategies for each BU, with a dual mandate to seek growth while maximizing efficiencies Pillar / BU CGP B2B CGI Aquaculture Edible Oils & Laundry Care Pastas & Sauces Food Service Andean Region + Brazil (Area II & III) Shrimp Feed Grow & protect market leadership Continue expansion outside Lima region Increase product offering to broaden client base Area II and III in Brazil Andean Region New markets (Central America) Higher value-added products Cookies & Crackers Industrial Flours Argentina Salmon Feed Redesign pricing strategy Optimize Gross-to-Net revenue ratio (discount and rebates) Procurement and manufacturing efficiencies Portfolio optimization (design-to-value, SKU rationalization) Redesign Go-to-market strategy SG&A efficiencies 5

16 Our Goals and Guidelines Pillars Guidelines Goals Growth Efficiencies People Operational excellence Focus on the Supply Chain and SG&A Focus on Innovation, Portfolio mgmt. and Pricing Sale of non-core assets (real estate) Reinvest savings on competitive advantages Strong financial standing Hold Investment Grade status: Strong and Simple fully hedged balance sheet Maintain a Net-Debt-to-EBITDA ratio between 2.0x and 2.5x Keep a sustainable and predictable dividend policy Working Capital efficiencies Top line revenue growth of 6.5% (CAGR 6-9 ) EBITDA levels of 3.5% to 4.5% by 209 Net Income Margin of 5.5% to 6.5% by 209 ROIC of 2.5% to 3.5% by 209 6

17 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 7

18 2 Q3 206 Highlights Q3 results show that Alicorp remains growing despite macroeconomics headwinds on the back of higher sales in the shrimp feed operation, the Food Service platform and our operations in Brazil I Revenues & Growth Revenue amounted to S/,750.6 million in Q3 6 (+3.0% YoY). Volume reached 457.3k tons (+.5% YoY) Revenue for the Consumer Goods Peru division and the B2B Business increased by.3% YoY and 0.8% YoY, respectively. During this quarter, private consumption has been negatively affected by lower private investment. Nevertheless, the company s strategy resulted in a Revenue increase II Profitability Gross Margin reached 30.4% (+0.9 p.p. YoY) EBITDA amounted to S/ million, an increase of S/ 2.6 million YoY and EBITDA Margin was 2.9%. EBITDA, excluding extraordinary expenses related to the consolidation of productions lines, totaled S/ 23.5 million, and EBITDA Margin reached 3.2% (+0. p.p. YoY) III Net Income Net income reached S/ 90.5 million while Net Margin was 5.2%. Net Income, excluding extraordinary expenses related to the consolidation of production lines and the sale of Industria Textil Piura S.A. shares, was S/ 02.0 million, with a Net Margin of 5.8% (+.4 p.p. YoY) Consequently, EPS equated to S/ 0.06 from S/ in Q3 5 IV Net Debt reduced to S/,62.8 million as of September 206 Leverage We continue to decrease our Net Debt-to-EBITDA ratio to 2.08x as of September 206 from 2.7x as of December 205 Net Debt is Financial Debt minus cash and cash equivalents as of Q3 6 8

19 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 9

20 3 Revenues and Gross Margin (%) Evolution Highlights Total Revenues increased 3.0% YoY mainly due to: i) a 23.6% YoY increase in Revenue in the shrimp feed operation as a result of a higher volume, and a change in the revenue mix towards value added products, ii) a 24.0% YoY increase in Brazil, mainly due to higher prices and the appreciation of the Brazilian Real against the Peruvian Sol, and iii) a 7.8% YoY increase in the Food Service platform In addition, Gross Profit increased by 6.5% YoY and Gross Margin gained 0.9 p.p., explained by efficiencies in procurement and manufacturing coupled with lower prices of raw materials Revenues & Gross Margin (PEN Million) (PEN Million),699,734,438,629,75 6,283 6,580 6, % 28.4% 30.4% 30.2% 30.4%,644,699, % 29.5% 30.4% 27.2% 28.4% 29.8% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM LTM as of September

21 3 EBITDA and EBITDA Margin (%) Evolution Highlights EBITDA increased S/ 2.6 million YoY and EBITDA Margin was 2.9%. Excluding extraordinary expenses related to the consolidation of production lines, EBITDA totaled S/ 23.5 million and the EBITDA Margin was 3.2% (+0. p.p. YoY) Overall gains in Gross Profit were partially offset by higher SG&A expenses, explained by an increase in the administrative and marketing expenses EBITDA & EBITDA Margin (PEN Million) (PEN Million) %.%.4%.9% 2.9% % 3.% 2.9% 7.7%.0%.8% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM 2 EBITDA Margin for FY204 accounted for.0%, excluding extraordinary losses from hedging operations of Q4 4 2 LTM as of September 206 2

22 3 Consumer Goods Peru Highlights Revenues and Volume increased.3% YoY and.2% YoY, respectively. Growth was led by core categories such as: i) panettone (+28.2% YoY), ii) laundry detergents (+2.4% YoY), iii) sauces (+5.7% YoY), iv) laundry soaps (+7.9% YoY), v) edible oils (+.4% YoY), vi) cereals (+6.4% YoY), and vii) pasta (+.5% YoY) Gross Margin increased by 0.9 p.p. YoY explained by: i) cost reductions mainly due to higher efficiencies in the procurement of key input materials and ii) additional efficiencies in manufacturing and design-to-value initiatives EBITDA reached S/ 7.3 million (+0.2% YoY) while EBITDA margin decreased 0.2 p.p. YoY to 7.8% Additionally, we launched and revamped 8 products for the laundry care, cookies & crackers, sauces and chocolate categories Revenues and EBITDA Margin (PEN Million) (PEN Million) 2,298 2,424 2, % 6.5% 6.9% 7.3% 7.8% % 8.0% 7.8% 4.9% 6.2% 7.% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM LTM as of September

23 3 Consumer Goods International Highlights Revenues and Volume decreasing.6% YoY and 5.3% YoY, respectively Results in Argentina continue to be impacted by inflation and currency headwinds while Brasil is recovering after a challenging first semester EBITDA reached S/ 0.8 million, while EBITDA margin decreased.7 p.p. YoY to 3.5% Revenues in Argentina accounted to S/ 20.6 million, a 22.6% YoY decrease due to the Argentine Peso depreciation versus the Peruvian Sol Revenues in Brazil accounted to S/ 36.5 million, a 24.0% YoY increase, due to an increase in prices and the appreciation of the Brazilian Real versus the Peruvian Sol Revenues and EBITDA Margin (PEN Million) (PEN Million),264,280, % 7.8% 2.6% 3.0% 3.5% % 5.2% 3.5% 3.4% 5.8% 4.3% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM LTM as of September

24 3 B2B Branded Products Highlights Revenues increased 0.8% YoY and Volume increased 0.9% YoY. EBITDA increased S/ 3.2 million (+37.3% YoY) and EBITDA margin reached 2.2%, mainly explained by lower raw material prices and the generation of distribution efficiencies The Bakery platform Revenues decreased 2.6% YoY and Volume increased 0.3% YoY mainly due to the Company s strategy to strengthen the low-tier segment of the industrial flours category by consolidating the launch of Don Lucciano Revenues and Volume for the Food Service platform increased 7.8% YoY and 7.3% YoY, respectively. EBITDA was S/20.6 million (-.3% YoY), while EBITDA margin was 4.6%, a.3 p.p decreased from Q3 5 Revenues from the Industrial Inputs platform increased 0.8% YoY to S/ 56.7 million, while EBITDA Margin increased in 2.0 p.p to 6.2% (S/ 9.2 million) Revenues and EBITDA Margin (PEN Million) (PEN Million),47,459, % 0.3% 0.3% 2.2% X 3.2% % 9.0% 2.2% 0.9% 7.3% 9.0% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM LTM as of September

25 3 Aquaculture Highlights Revenue reached S/ 38.9 million (+3.2% YoY) while Volume reached 99.5 thousand tons (+8.3% YoY) In the shrimp feed platform, Revenue increased 23.6% YoY mainly explained by: i) a Volume increase of 7.3% YoY, and ii) an increase in the average price due to a change in the revenue mix towards more value added products In the fish feed platform, Volume increased 0.2% YoY driven by an increase in sales of medicated products, and an increase in the client portfolio. Revenues remained flat at S/ 49.0 million as a result of a decrease in the average price due to lower raw material costs EBITDA reached S/ 55. million and EBITDA margin increased 0.6 p.p. YoY to 4.4% Revenues and EBITDA Margin (PEN Million) (PEN Million),48,390, % 3.2% 0.7% 3.8% 4.4% % 4.4% 3.7% 3.5% 3.2%.2% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM LTM as of September

26 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 26

27 4 Guidance Update for FY 206 as of Q3 206 Despite the slowdown of our Aquaculture Business during H 206 and the macroeconomic headwinds, we remain confident on achieving our target for profitability, bottom line and indebtedness on the basis of our business strategy and the recovery of our shrimp feed operations FY 205 Initial Guidance FY 206 Guidance for Q2 6 Updated Guidance 2 Revenue growth (PEN) 4.7% 5.0% - 7.0% 3.0% - 5.0%.5% - 2.5% CAPEX S/ 75.9 MM S/ MM S/ MM S/ MM EBITDA Margin.0%.0% - 2.0%.0% - 2.0%.0% - 2.0% Net Debt / EBITDA 2.7x 2.20x -2.40x 2.0x -2.30x 2.00x -2.20x Net Margin 2.4% 4.0% - 5.0% 4.0% - 5.0% 4.0% - 5.0% Initial Guidance for FY 206 was provided during the Q4 5 at 7-Feb 6 and later confirmed during Q 6 at 29-Apr 6 2 Guidance was updated in Q3 6 27

28 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 28

29 Q&A

30 Agenda 2 Update on Strategic Review process Q3 206 Highlights 3 Q3 206 Business & Operating Review Guidance Update for FY 206 as of Q3 206 Q&A Appendix 30

31 6 Q3 206 Milestones; Awards & Recognitions Product R&D We launched and revamped 4 products as part of our R&D and innovation strategy. Key launches include: Alacena mustard Poder Total under Opal megabrand Bolvar Plus softeners under Bolivar megabrand A Semolina based pasta under Don Vittorio megabrand Key Milestones Continuous Efficiencies in Working Capital We reduced our Cash Conversion Cycle ( CCC ) to 29.3 days, down from 42.9 days in Q4 5 and from 48.7 days in Q3 5 We reduced our Account Receivables (in 8.2 days YoY) and Inventories (in 7.7 days YoY) Lower Indebtedness Alicorp continued reducing its Leverage, reaching a Net-Debt to EBITDA ratio of 2.08x as of September 206, in line with our long term target range (2.0x-2.5x) Awards & Recognitions Prestige and Reputation Ranked as the fourth most admired company within the Peruvian corporate community according to the Most admired companies in 206 survey Recognition date was September 2, 206 3

32 6 Net Income & Net Margin (%) Evolution Net Income increased S/ 6.2 million, reaching S/ 90.5 million in Q3 6, explained by: i) a higher operating contribution from the B2B business and the aquaculture business, ii) a decrease in losses from currency and interest rate hedging (-S/ 20.8 million) associated with the liability management of the International Bond, and iii) lower Financial Expenses (-S/ 8.2 million), mainly due to capital injections in Argentina and lower Financial Debt Net Income, excluding extraordinary expenses related to the consolidation of production lines and the sale of Industria Textil Piura S.A. shares, was S/ 02.0 million, with a Net Margin of 5.8% (+.4 p.p. YoY). Financial Expenses Evolution (As % of Total Revenue) 4.9% 3.2% 2.0% 3.% 2.4% 0.% 2.3%.0% 0.% 0.8% 0.5% 0.3% 0.2% 0.8% 2.8%.8% 2.0% 2.2%.3% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Net Financial Expenses FX Gains/Losses FX and Rates Hedging Expenses Main Drivers of Net Income (YoY) 4.4% 0.2% 0.6%.2%.3% 0.% 0.% 0.8% 5.2% Net Income Q3 5' Operating Profit Net Financial Expenses FX and Rates Hedging Expenses FX Exchange Losses Other Income Tax Net Income Q3 6' In September 205 we executed a capital injection of US$25 million to our subsidiary in Argentina which was used exclusively to reduce debt 32

33 6 Cash Flow Build Up as of Q3 206 Highlights Cash Flow from Operations was S/ 59.3 million, S/ 46.3 million lower compared to September 205 mainly explained by a non-current cash inflow of S/ 87. million, as of September 205, associated with commodity hedging activities Cash Flow used in Investing Activities was S/ 84.5 million. A total amount of S/ 0.3 million were used for CAPEX, compared to S/ 7. million during the same period of 205 Cash Flow used in Financing Activities was S/ 46.7 million, compared to S/ million as of Q3 5, mainly due to lower debt amortization and lower interest expenses, partly offset by dividends payment during the year Main Drivers of Cash Flow Evolution (PEN Million) Cash Flow from Operations S/ 59.3 Cash Flow from Investing S/ Cash Flow from Financing S/ Net Cash on Dec-5 Cash generated from operations Taxes Other expenses from operations Investment Activities Debt Interest Payment Dividend Payment Other financial 2 activities Net Cash on Sep-6 Includes PP&E, acquisitions, software and other investment activities 2 Includes FX Translation effect of S/ 0. million 33

34 6 Working Capital and CAPEX Management for 206 Key Milestones A Alicorp successfully reduced its Cash Conversion Cycle from 48.7 days as of Q3 5 to 29.3 days as of Q3 6, as a consequence of a reduction of the inventory in 6.9% YoY (S/ 88.7 million), and an increase in its collections by 2.4% YoY (S/25.4 million) B A Additionally, the Company was able to reduce its capital investment requirements without compromising growth Working Capital Evolution (PEN Million) We increased our collections in S/ 25.5 million, reducing our DSO 2 (46.4) Proactive management of our fishmeal inventory (S/ 44.4 million) coupled with the reduction of the quinoa inventory (S/ 60.7 million) Lower inventory purchases along with lower debt levels allowed to increase supplier prepayments to boost profitability 663 Q3 5' Accounts Receivable Inventory Accounts Payable Q3 6' A (Days) CCC 4 Days of Working Capital 3 Accounts Receivable Inventory Accounts Payable Q3 5' Q4 5' Q 6' Q2 6' Q3 6' B CAPEX Evolution (PEN Million) Property, Plant and Equipment PP&E as % of Sales 2.2% 3.4% 2.4%.4% 2.5% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Working Capital is defined as average Accounts Receivable plus average Inventory minus average Accounts Payable 2 Days Sales Outstanding 3 Average days 4 Cash Conversion Cycle 34

35 6 Alicorp s Debt Metrics & Maturity Profile Key Milestones A Alicorp successfully reduced its Net Debt / EBITDA ratio for the seventh consecutive quarter, reaching 2.08x as of Q3 6, on the back of i) a recovery of its EBITDA, ii) strong cash flow generation, iii) improvements in working capital and iv) lower CAPEX B Alicorp reduced its USD exposure from.6% as of Q4 5 to 8.9% as of Q3 6. Additionally, its short term debt decreased from.6% in Q4 5 to 3.8% in Q3 6 A Net Debt / EBITDA (PEN Million) Net Debt EBITDA LTM 2,37 504, , , , x 2.7x 2.65x 2.43x 2.08x Q3 5' Q4 5' Q 6' Q2 6' Q3 6' B Increase duration to 4.06 years as of September 206 vs 3.67 years as of December 205 (PEN Million) September 206: Total Debt: S/.8 billion Dec-5 Sep % Debt Breakdown by Currency 2 7.% 3.8%.6% % 7% 22% 7% 0.4% 20% 3% 5% 5% 5% 5% 3% ST Loans LT Loans Local Bonds International Bond 82.0% 3.0% 6.% 8.9% 50 USD PEN BRL ARS Credit rating Global Domestic Sep-6 BBB- Stable BBB Stable Baa3 Stable Sep-6 AAA Negative AAA Stable Net Debt / EBITDA for Q3 5 was 3.25x excluding losses from hedging operations of Q4 4 2 Debt after Swap 3 Only 0.7% of Total Financial Debt has exposure to USD volatility 35

36 6 EBITDA Main Drivers (YoY) EBITDA growth was a result of a higher Gross Profit by S/ 33.2 million driven by lower prices of raw materials coupled with the generation of production and procurement efficiencies SG&A increased as a result of: i) higher marketing & administrative expenses and ii) non-recurring expenses related to the consolidation of productions lines SG&A / Marketing Expenses Evolution (As % of Total Revenue) Marketing Administrative Expenses Selling Expenses 9.4% 20.0% 2.4% 20.7% 20.0%.0%.4% 2.%.3% 0.9% 5.3% 5.9% 6.4% 6.0% 5.9% 3.% 2.7% 2.9% 3.4% 3.2% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Main Drivers of EBITDA (YoY) 3.%.0%.5% 0.3% 2.9% EBITDA Q3 5' Gross Profit SG&A Other Net Operating Expenses EBITDA Q3 6' Gross Profit not including industrial depreciation 2 SG&A expenses not including depreciation & amortization 36

37 EBITDA Margin (%) Revenues (PEN Million) Presentation3 6 Q3 206 Performance by Business Unit & Regions CONSUMER GOODS B2B AQUACULTURE % % +.3% % +3.2% Q3 5' Q3 6' Peru International Q3 5' Q3 6' Q3 5' Q3 6' Q3 5 Q3 6 Var. Q3 5 Q3 6 Var. Q3 5 Q3 6 Var. 3.8% 3.2% 5.2% 8.0% 3.5% 7.8% -0.6p.p. -.7p.p. -0.2p.p. 9.0% 2.2% +3.2p.p. 3.8% 4.4% +0.6p.p. Revenue Mix Peru Ecuador Chile Brazil Argentina Others (%) 6.4% 2.7% 8.0% 7.8% 6.9% 3.2% Financial figures of B2B and Aquaculture are consolidated 37

38 6 Q3 and Q2 206 Performance by Business Unit & Regions Revenues Var. 206 vs 205 Q2 Q3 Var. QoQ Q2 Q3 Var. QoQ Q2 YoY Q3 YoY Consolidated,638,773,699, %,629,277,750, % -0.6% 3.0% CGP 592, ,03 9.7% 65, , % 3.9%.3% B2B 357, , % 373, , % 4.5% 0.8% Aquaculture 355,52 337,373-5.% 326,067 38,878 7.% -8.3% 3.2% CGI 333,290 37, % 32,950 32,79-0.2% -6.% -.6% Volume Var. 206 vs 205 Q2 Q3 Var. QoQ Q2 Q3 Var. QoQ Q2 YoY Q3 YoY Consolidated 436,29 450, % 439, ,339 4.% 0.7%.5% CGP 24,276 32, % 25,38 34,06 6.9% 0.8%.2% B2B 38,092 54,24.7% 50,330 55, % 8.9% 0.9% Aquaculture 99,033 9, % 88,982 99,5.8% -0.% 8.3% CGI 74,728 7, % 74,72 68, % 0.0% -5.3% 38

39 6 Consumer Goods International - Argentina Highlights Revenues in Argentine Pesos increased 20.4% YoY and Volume decreased 9.6% YoY mainly explained by i) a price increase, ii) a decrease in the consumer purchasing power due to high inflation, and iii) aggressive competition EBITDA decreased in ARS 2. million to ARS -.9 million, while EBITDA margin decreased 0.3 p.p. YoY to -0.3% In addition, we launched and revamped 4 products for the cookies & crackers, laundry and skin care categories Revenues and EBITDA Margin (ARS Million) (ARS Million),556,785 2, % 3.5% 0.8% 0.0% -0.3% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' % 0.0% -8.8% -0.%.8% -0.9% Q3 4' Q3 5' Q3 6' FY204 FY205 LTM 2 FX USD/ARS FX USD/ARS FX USD/PEN FX USD/PEN FX PEN/ARS FX PEN/ARS Average FX rates for the period 2 LTM as of September

40 6 Consumer Goods International - Brazil Highlights Revenues in Brazilian Reals increased 9.7% YoY and Volume decreased 5.2% YoY, mainly explained by i) an increase in prices, and ii) higher competition EBITDA was BRL 5.7 million compared to BRL 3.4 million in Q3 5, while EBITDA margin decreased 6.7 p.p YoY to 4.3% Lower profitability was mainly due to higher prices of raw materials and higher marketing expenses associated with the launch of the Hair Care platform under the Plusbelle brand during Q2 6 In addition, we launched a new product in the pre-mix category Revenues and EBITDA Margin (BRL Million) (BRL Million) % 7.6% -.3% -2.6% 4.3% %.0% 4.3%.6%.8% 4.7% Q3 5' Q4 5' Q 6' Q2 6' Q3 6' Q3 4' Q3 5' Q3 6' FY204 FY205 LTM FX USD/BRL FX USD/BRL FX USD/PEN FX USD/PEN FX PEN/BRL FX PEN/BRL Average FX rates for the period 2 LTM as of September