Corporate Presentation. March, 2018

Transcription

1 Corporate Presentation March, 208 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 Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 2

4 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 3

5 Fino 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 5% 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 portfolio 2 Strategic fit with Alicorp Edible oils Lard >40% >50% ADM Bolivia Bolivia Margarine Laundry soap x% Market share >60% >25% Bolivia Portfolio expansion Access to new segments in the consumer market Brand extensions and products development B2B penetration Alicorp has the track-record and scale to significantly grow the CPG business in Bolivia Source: Company Information not audited management figures Based on values calendarized to December and average of historical figures for the last 5 years 2 Doesn t include laundry detergents nor Alicorp s distribution products. 3

6 Process Update and Next Steps Process Update 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 M T W T F S S 0/5 0/6 0/7 0/8 0/9 0/20 0/2 0/22 0/23 0/24 0/25 0/26 0/27 0/28 0/29 0/30 0/3 02/0 02/02 02/03 02/04 Independent Committee s role The Ad Hoc Independent Committee s constitution purpose is to represent Alicorp s shareholders by: 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 02/05 02/06 02/07 02/08 02/09 02/0 02/ 02/2 02/3 02/4 02/5 02/6 02/7 02/8 02/9 02/20 02/2 02/22 Hiring external consultants for assistance to accomplish their duties January 5: Announcement of the potential acquisition of Fino and ADM Bolivia January 5 22: Roadshow meetings with investors and research analysts January 24: Call to a General Extraordinary Shareholders Meeting for February 22 February 4: Release of the transaction update presentation and Q47 and full-year 207 results February 9: Full-year 207 Earnings Call February 22: Extraordinary General Shareholders Meeting 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 5

7 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 6

8 2 Alicorp is a leading consumer branded products company in Peru and South America Business overview Business Consumer Goods B2B 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 Ecuador Peru Ecuador Chile Peru Ownership structure Strong growth track record Other; 0.8% (PEN million) Revenue CAGR : 5.% Inv. & mutual funds; 7.3% Romero Group; 45.8% 5,88 Revenue EBITDA EBITDA Margin 7,0 6,283 6,580 6, % 7.7%.0% 2.% 2.7% Pension funds; 26.% Source: Cavali as of February 2, EBITDA and EBITDA Margin for 203 accounted S/ million and.8% respectively, ex extraordinary benefits from REFIS 2 EBITDA and EBITDA Margin for 204 accounted S/ million and.0% respectively, ex extraordinary losses of S/ million 7

9 Competitive Advantages Strategic Initiatives 2 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 207 B2B Branded Products 22% Aquaculture 25% Consumer goods Peru 37% Revenues: S/ 7,0 million Consumer goods International 6% Diversified EBITDA base 207 B2B 8% Aquaculture 28% EBITDA: S/ 90 million Consumer Goods Peru 54%.Consumer Goods International 0.5% By jointly leveraging through its competitive advantages and strategic initiatives Go-to-market strategy 250K POS for traditional channel POS for modern channel 3 Health & wellness products Brand management 05 brands in 3 countries & exports to 9 countries Product development 33 new products launched & revamped in new products launched & revamped in 207 Plant consolidation & automation Strategic M&A 6 acquisitions since 202 Continuous costs saving Commodity purchasing Economies of scale and centralized platform program EBITDA calculation per business ex unassigned corporate expenses. 2 Information provided by the Consumer Goods Peru division. 3 Includes Supermarkets and Cash & Carrier 8

10 2 both organic and inorganic Growth focused on core and next-to-core platforms Successful new product launch strategy, with 246 launches since 200 (# of products) Selected products launched in FY 207 Consumer Goods Peru Consumer Goods International B2B Aquaculture Growth through Mergers & Acquisitions Domestic Acquisitions International Acquisitions Domestic 9

11 2 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 2 % of EBITDA 3 Competitors Laundry Detergents # 8.0% 9.3% Edible Oils # 7.8% 9.5% Pasta # 5.4% 6.0% Cookies & Crackers # 3.6% 0.4% Mayonnaise & other Sauces Source: Kantar World Panel # 2.9% 7.3% Laundry Soap #.9% 4.2% Cereals #.3%.7% Margarines #.% 2.3% Household Flour #.0% 2.3% Dessert # 0.9% 2.2% 37.4% % 5 Alicorp has +50% of the market share. 2 Based on consolidated Revenue FY FY 207. Calculation per business ex unassigned corporate expenses 4 Total CGP/ Consolidated Revenue 5 Total CGP/ Consolidated EBITDA 0

12 Value Mainstream Premium 2 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

13 MODERN TRADITIONAL CHANNEL 2 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 2.3 Alicorp Competitor A L I C O R P 48% 25% 0% 7% Exclusive distributors Wholesalers Non-Exclusive distributors Average Sales ticket S/ 50 Average Sales ticket S/ 0,000 Average Sales ticket S/ 7,250 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 Data: All from Dec' 7, except for Margarines (Nov 7), Juice powders (Nov 7), Mayonnaise (Oct 7), Laundry Soap (Aug 7) and Jelly (Oct 7). 3 As measured by market penetration in each category against Alicorp s closest competitor 2

14 2 Likewise, in B2B we are also market leaders Ranked # in main categories Category Brands Position % of sales 2 % of EBITDA 3 Competitors Industrial Baking Flour # 8.0% 3.0% Industrial Oil # 6.4% 7.4% Shortenings # 2.2% 3.3% Source: Kantar World Panel 22.0 % 4 8.3% 5 Alicorp has +50% of the market share. 2 Based on consolidated Revenue FY FY 207. Calculation per business ex unassigned corporate expenses 4 Total B2B/ Consolidated Revenue 5 Total B2B/ Consolidated EBITDA 3

15 2 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 2 Competitors Brazil Pasta # 4.4% Argentina Hair Care #2 2.4% Laundry Detergents #3.7% Skin Care #2.3% Ecuador Pasta #3 0.5% Cereals #3 0.% Bolivia Laundry Detergents #3 0.2% Laundry Soap #3 0.2% Source: Nielsen NRI 6.% 3 Alicorp has ~35% of market share in pastas (Area II in Brazil) and [5% -25%] of Market Share in Personal Care (Argentina). 2 Based on consolidated Revenue FY Total CGI/ Consolidated Revenue 4

16 2 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 2 Competitors Shrimp Ecuador # 3.3% Peru #2 0.9% Nicaragua #2 0.5% Honduras #3 0.4% Panamá #3 0.2% Costa Rica # 0.% Fish Chile #4 8.0% Peru # 0.7% Source: Internal Estimates 22.0% 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 2 Based on consolidate FY Total Aquaculture/ Consolidated Revenue 5

17 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 6

18 STRATEGIC PILLARS 3 Alicorp s Strategy focuses on three Pillars: Growth, Efficiencies and People Smart Growth PERU ANDEAN & BRAZIL AQUACULTURE 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 Core Categories Innovation Shrimp Feed Special Diets Efficiencies Implementing an efficiency-driven culture across the organization Significant impact in 207 on Revenue, COGS and Net Income (PEN Million) Gross to Net Manufacturing Procurement Distribution CCC Others FY 207 REVENUE GROSS PROFIT NET INCOME Savings One Alicorp Mindset Transfer knowledge across the organization Leverage corporate capabilities People Share best practices among business and geographies Area II of Brazil: Minas Gerais, Espirito Santo and Rio de Janeiro suburbs 2 Related to the reduction of Working Capital needs 3 Excludes one shots expenses related to the implementation of those initiatives 7

19 B2B CGP 3 Our 207 Business Accomplishments aligned with our Growth Pillar (/2) Innovation / R&D New Categories Go To Market FY Results Products Launches & Revamped Canned Tuna Creation of the new Channel Value Revenue Growth +6.2% Growth Stain Remover Revenue Growth +4.4% Gross Margin +.9 p.p Baby & Kids Gross Margin +.8 p.p EBITDA Margin +.4 p.p Innovation / R&D Region Expansion FY Results 207 Efficiency Alpesa Salad Dressing Alacena Mustard Food Service Categories Growth outside Lima Industrial Sauces Pasta ~4.0% ~8.0% Revenue Growth Gross Margin +3.2% +0.6 p.p People Blanca Nieve Industrial Flour Bulk Oil ~3.0% EBITDA Margin -0.5 p.p Gross Margin: (Revenue COGS) / Revenue Mega Brands 8

20 Aquaculture Brazil Andean 3 Our 207 Business Accomplishments aligned with our Growth Pillar (2/2) Potential Inorganic Expansion into Bolivia Edible Oil > 40% Lard > 50% Margarine > 60% Laundry Detergent > 25% Growth Bolivia XX% Market share Portfolio Optimization Revamped Value Segment FY Results 207 Market Share +.3 p.p Santa Amalia Semolina based Pasta Revenue Growth Gross Margin -0.9% +6.5 p.p Efficiency Numeric Distribution -.8 p.p EBITDA Margin +2.8 p.p Value-added Products New Markets FY Results 207 People Nicovita Finalis Special Diets +50 TMk of production capacity Revenue Growth Gross Margin EBITDA Margin +2.6% +3.5 p.p +2. p.p 9

21 NET INCOME (NI) SG&A COGS REVENUE 3 Our 207 Accomplishments aligned with our Efficiency Plan Key Initiatives Implementation Phase Target Date Pricing Strategy: Focus on maximizing marginal Revenue Gross-to-Net: Reduction of sales discounts without sacrificing volume Q4 208 Q4 208 Growth Procurement: Generate savings via efficient sourcing program Q Goals Lean Manufacturing: Optimize and standardize our industrial processes Logistics: Effective internal distribution of raw materials and finished product Q4 208/9 Q3 208 Organic Top line growth of 6.5% (CAGR 7-9 ) Org. Structure: Right sizing for growth Go-to-Market Strategy: Reduction of commissions and sales expenses Q4 209 Q2 209 EBITDA Margin 3.5% to 4.5% Efficiency 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 Q2 209 Q4 209 Q2 208 NI Margin 5.5% to 6.5% ROIC 3.0% to 3.5% Liability Management: Optimize capital structure while reducing financial expenses Q2 208 People Hedging Strategy: Minimize FX losses Q

22 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 2

23 STRATEGIC PILLARS 4 What to expect for 208? PERU INTERNATIONAL AQUACULTURE CGP B2B Argentina Brazil Shrimp Salmon Growth Product Innovation Brand Extension New Categories Client Base Increase Penetration New Categories Capture M.Share (%) Valuable brands Portfolio Redesign Revenue Management R&D / Value added Hondura s Full implementation Special Diets Innovation Center Profitability Improvement [PEN 80M 00M] [PEN 75M 95M] Procurement 30% Lean Manufacturing 35% Logistics 5% 60% Fit-For-Growth 55% Go-To-Market (Brazil / 5% Peru) Efficiencies Marketing ROI Procurement Manufacturing SG&A People One Alicorp Mindset Transfer knowledge across the organization Leverage corporate capabilities Share best practices among business and geographies 22

24 4 Consolidated Guidance for FY 208 under IAS 8 and 39 We expect a consolidated top line growth during 208 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 206 FY 207 CONSOLIDATED GUIDANCE 208 KEY CONCERNS REVENUE GROWTH (PEN) (%) 0.7% 7.% 5.0% - 7.0% The execution of Peruvian Government CAPEX S/ 23.8 MM S/ 83.9 MM S/ MM stimulus package and Multiannual Macroeconomic EBITDA MARGIN (%) 2.% 2.7% 3.0% - 3.5% Framework International growth NET DEBT/EBITDA (x).66x.00x 0.60x x drivers, especially for Brazil, and Argentine NET MARGIN (%) 4.6% 6.4% 6.5% - 7.0% restructuring FX and commodities EPS behaviors Raw material prices ROIC (%) 0.8% 3.6% 2 3.5% - 4.0% volatility Excludes time deposits with maturity between 90 days and 360 days and mutual funds 2 Excludes excess cash above industry prudent practices standards for operational cash 23

25 PERU 4 Guidance FY 208 by Business GDP growth in Peru should gain steam for 208. 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 208. Finally, shrimp and fish feed s markets are expected to stabilize in terms of growth GDP GROWTH FX FX Revenue Growth 6 CGP 3.0% - 5.0% B2B 2.6% % - 5.5% TOTAL 3.0% - 5.0% CGI 8 ARGENTINA BRAZIL 2.9% 0.8% % - 8.0% -2.0% % 7 AQUACULTURE 4.5% % - 4.0% Exchange Rate as of December 207 (against USD) 2 FX Rates for 208 (end of period) Company estimates (against USD) 3 USD/ARS FX expected Exchange Rate. ARS/PEN implied depreciation for 208 (5.0%) 4 USD/BRL FX expected Exchange Rate. BRL/PEN implied depreciation for 208 (3.6%) 5 USD/PEN FX expected Exchange Rate 6 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 24

26 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 25

27 5 Q4 207 Key Highlights During Q4 7 we continued growing and improving in terms of profitability, although smoother than the past quarters of 207. We expect this trend to steep back during 208 based on: i) our strategic initiatives and efficiencies program and ii) the macroeconomic recovery expectation in both Peru and LatAm HIGHLIGHTS REVENUE & GROSS MARGIN Total Revenue increased 2.7% YoY (PEN Million) 6,580 6,629 7,0 Gross Profit increased 0.8% 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 2.% (remaining stable),734,8, % 30.% 32.5% 28.4% 30.3% 32.% Net income increased 56.9% YoY (+ S/ 45.7 million) while Net Margin reached 6.8% (+ 2.3 p.p.) Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 EBITDA & EBITDA MARGIN NET INCOME & NET MARGIN (PEN Million) (PEN Million) % 2.% 2.%.0% 2.% 2.7% 3.2% % % 2.4% 4.6% 6.4% Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY

28 PROFITALIBITY 5 Q4 207 Operational Highlights Moderate revenue growth in Q4 7 explained by our Aquaculture business (+4.6%) and CGP (+2.2%), and higher profit margins backed on lower commodity prices and our efficiencies initiatives I REVENUE GROWTH Consolidated Revenue grew 2.7% YoY backed on: i) a 4.6% 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 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 II GROSS PROFIT 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 EBITDA EBITDA margin reached 2.% (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 27

29 5 Q4 207 Financial Highlights Net income increased 56.9% YoY, boosted by better operational results coupled with lower Net Financial Expenses I FINANCIAL LEVERAGE Net Debt-to-EBITDA ratio decreased to.00x as of December 207 from.66x as of December 206 Net Debt decreased to S/ million as of December 207, from S/,332.9 million as of December 206 (a S/ 434. million decrease) All-in cost of debt was 5.2% during Q4 7' II WORKING CAPITAL Cash Conversion Cycle, measured in LTM basis, improved to 7.4 days (as of December 207) from 37.4 days (as of December 206), mainly due to better commercial conditions with suppliers III NET INCOME Net income reached S/ 25.9 million (+ 56.9% YoY), while Net Margin was 6.8% (+ 2.3 p.p. YoY) Lower financial expenses of S/ 28.7 million (- 84.% YoY) and lower FX losses of S/ 5.8 million (- 29.% YoY) EPS increased to S/ 0.49 as of Q4 7 from S/ as of Q4 6 IV 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+ / EQL+ ratings, respectively, for short-term instruments. Recently, the international agency, S&P, affirmed BBB- rating for bonds Net Debt is Financial Debt minus cash and cash equivalents as of Q

30 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 29

31 6 Consumer Goods Peru HIGHLIGHTS Q4 207 INSIGHTS INNOVATION & POSITIONING Revenue and Volume increased by 2.2% YoY and.0% YoY respectively, on the back of the growth in our core categories and innovations Gross Margin increased by.3 p.p. YoY mainly explained by revenue management and our efficiencies initiatives EBITDA reached S/ 20.6 million (+2.4% YoY) and EBITDA Margin remain stable in 7.4% mainly explained by the increase in Gross Margin, partially offset by higher SG&A Panettone Cookies & Crackers Category Rank Edible Oils # Laundry Detergents # Pasta # Mayonnaise # Cereals # Jelly # REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) 2,424 2,500 2,655 (PEN Million) % 38.% 39.4% 35.6% 38.% 40.0% % 7.4% 7.4% 6.2% 7.4% 8.8% Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 Market share (Δ% YoY) > p.p p.p. <Market share (Δ% YoY) < p.p. Market share (Δ% YoY) < -.0 p.p. 30

32 6 B2B HIGHLIGHTS Q4 207 INSIGHTS Revenue and Volume decreased by.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 (+.7% YoY) and EBITDA Margin reached.8% (+0.4 p.p. YoY) PRODUCT INNOVATION Industrial Wheat Subproduct REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) (PEN Million),459,52, % 25.7% 27.9% 2.9% 25.3% 26.0% 2 3.2% %.8% 7.3%.% 0.6% Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 3

33 6 Consumer Goods International HIGHLIGHTS Q4 207 INSIGHTS PRODUCT INNOVATION Revenue decreased by 7.5% YoY and volume increased by.9% YoY, respectively. Revenue in Argentina and Brazil amounted S/ 9. million (+ 5.6% YoY) and S/ 4.7 million (- 2.8% YoY), respectively Gross Margin increased by. p.p. YoY, mainly explained by Argentina s Gross Margin increase (+2.0 p.p. YoY) Laundry Soap Huancaina Sauce REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) (PEN Million),280,85, % 33.6% 34.6% 32.3% 32.3% 34.8% 3 7.8% 4.3% 0.0% 5.8% 3.4% 4 0.4% Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY

34 6 Consumer Goods International - Argentina HIGHLIGHTS Revenue and Volume in Argentine Pesos increased in 25.3% YoY and 5.6% YoY, respectively. Explained by a slight recovery in consumption coupled with a more aggressive marketing strategy EBITDA decreased in ARS 6.6 millions, while EBITDA margin decreased 0. p.p. YoY to 2.3% YoY REVENUE & EBITDA MARGIN (ARS Million) (ARS Million),785 2,50 2, % -0.5% -8.8% -5.3% -2.3% % -2.2% -2.3% -0.% -.4% -.6% Q4 6' Q 7' Q2 7' Q3 7' Q4 7' Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 FX USD/ARS FX USD/ARS FX USD/PEN FX USD/PEN FX PEN/ARS FX PEN/ARS Average FX rates for the period. 33

35 6 Consumer Goods International - Brazil HIGHLIGHTS Volume increased.3% YoY and Revenue in Brazilian Reals decreased 0.0% 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 6.5 million in Q4 6, while EBITDA Margin decreased 7.5 p.p YoY to 5.5% REVENUE & EBITDA MARGIN (BRL Million) (BRL Million) % 7.0% 8.8% 5.3% 5.5% % 3.5% 6.7% 7.% 2.9% 5.5% Q4 6' Q 7' Q2 7' Q3 7' Q4 7' Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 FX USD/BRL FX USD/BRL FX USD/PEN FX USD/PEN FX PEN/BRL FX PEN/BRL Average FX rates for the period 34

36 6 Aquaculture HIGHLIGHTS Q4 207 INSIGHTS Revenue and Volume increased by 4.6% and 28.3% YoY, respectively. Revenue amounted S/ million and the Volume reached 39.6 thousand tons Gross Margin increased by 6. p.p. YoY to 25.%, due to lower raw material prices EBITDA reached S/ 65.4 million (+ 3.5% YoY) and EBITDA Margin reached 3.3% (+.7 p.p.) REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN (PEN Million) (PEN Million), ,48, % 9.0% 25.% 9.2% 20.2% 23.7% %.6% 3.3% 3.5% 2.7% 4.8% Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY 207 Q4 5' Q4 6' Q4 7' FY 205 FY 206 FY

37 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 36

38 Mar-7 Apr-7 May-7 Jun-7 Jul-7 Aug-7 Sep-7 Oct-7 Nov-7 Dec-7 Jan-8 Feb-8 Mar-8 7 Sell-Side Research Estimates on ALICORC Current Stock Price Consensus vs. Previous ALICORC, EPU and BVL Benchmark Mar 2 th LTM Stock price Mar :.25 Feb. 8 Feb. 8 Feb. 8 Feb. 8 Feb. 8 Jan. 8 Jan. 8 Dec. 7 Sept Current Previous Upside 4.9% -7.6% 28.9% 4.3%.% 7.6% 0.2% 4.7% -7.8% ALICORC EPU IGBVL Stock performance LTM: ALICORC: EPU IGBVL +53.% +30.5% +35.% Stock performance YTD: (Jan. Mar. 2, 208) ALICORC: +6.% EPU +3.% IGBVL +4.5% Previous median: Current median: Potential upside: 0.2% Research Recommendation Recent Awards Previous Current Dec Mar Buy 70% Buy 78% Hold 30% Hold 22% Top 0 Most Admired Companies in Peru Latin America Executive Team Rankings 4 Potential stock price appreciation against price market as of March 2 (PEN.25). 2 As of December 3, As of March 2, 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. 37

39 Topics Transaction Update [ ] About Alicorp [ 2 ] Our Strategy to Create Value [ 3 ] Guidance 208 [ 4 ] Q4 207 Highlights [ 5 ] Q4 207 Business & Operating Review [ 6 ] Stock Performance [ 7 ] Financial Metrics [ 8 ] 38

40 Corporate Strategy

41 8 Gap between the Market and the Fundamental Value of the Firm Alicorp s Market Value Alicorp s Fundamental Value 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 (T4 ) in Peru Canned tuna, Laundry Care Food Service in B2B Personal Care in Brazil 2 Efficiencies Alicorp s Fundamental Value post internal initiatives Growth Value Creation: TSR People 3 4 Inorganic Growth Andean Region Area II and III in Brazil Peru: Core Categories 2 Alicorp s Fundamental Value post inorganic initiatives Tier 4. 2 Edible Oils, Detergents, Pastas and Sauces. 5 Alicorp s post Optimal Capital Structure Capital Optimization Focus on ROIC and Profitability Divestiture (Real state, non operating assets and non strategic assets) 40

42 Total Shareholder Return Returning Value Debt reduction Inv. Cap. ROIC NOPAT / INVESTED CAPITAL NOPAT 8 Roadmap to Value Creation EBIT 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 Growth Revenue Management Initiatives Pricing strategy revision Branding strategy optimization 209 Goals Taxes 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 Weighted Effective Tax Rate Organic Top line growth of 6.5% (CAGR 7-9 ) EBITDA Margin 3.5% to 4.5% Efficiency WK Net Fixed Assets CCC Q4 6 : 37.4 days CCC Q4 7 : 7.4 days NFA turnover increased from 3.x in 203 to 3.4x in 206 Sale of non-core real-estate-related assets (S/ million) Net Debt-to-EBITDA ratio reduced from 2.7x as of December 205 to.00x as of December 207 NI Margin 5.5% to 6.5% ROIC 3.0% to 3.5% S/ 434. million in Net Debt reduction since 206 People Strong commitment to return value to shareholders Dividend payout ratio for FY206 reached 39.6% of Net Income. Amount distributed reached S/ 20 million or S/ 0.4 per share (+ S/ 0.09 more than in 205) Achieved In process 4

43 FY 207 Performance by Business

44 Highlights by Business 8 Our business plan execution FY 207 (/2) 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 Revenue Growth Market Share Profitability CGI Peru CGP B2B Argentina +6.2% Branding Strategy & Continuous Innovation +3.2% -3.9% Soles Revenue Growth Organic expansion: - Food Service - Industrial Clients Revenue Growth Revenue Growth ~20% FX Depreciation 7 of 2 Categories Gross Margin EBITDA Margin Profitability Gross Margin +0.6 p.p EBITDA Margin - Turnaround Phase - One Shots Profitability Profitability +.9 p.p +.4 p.p -0.5 p.p Brazil -0.9% Soles Volume Contraction: - Tiering down - Revenue mix Gross Margin +6.5 p.p EBITDA Margin +2.8 p.p 43

45 Highlights by Business Aquaculture 8 Our business plan execution FY 207 (2/2) 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 Revenue Growth Profitability Salmon feed +5.5% Soles - No Algae bloom - Comercial Conditions Gross Margin +.8 p.p EBITDA Margin +.7 p.p Revenue Growth Profitability Shrimp feed +25.6% Soles - Capture of Market Share - Revenue Mix Gross Margin +4.0 p.p EBITDA Margin +2.0 p.p 44

46 Performance by Business

47 8 Q4 207 Milestones RESEARCH & DEVELOPMENT 2 products were launched as part of our innovation strategy, being the most remarkable: Orange flavored panettone under the mega brand Blanca Flor Integrackers new cookie flavors New mini cookies presentation Hot chocolate bar under the mega brand Blanca Flor KEY MILESTONES CONTINUOUS EFFICIENCIES IN WORKING CAPITAL Wereduced our Cash Conversion Cycle ( CCC ) to 7.4 days, from 37.4 days in Q4 6 We reduced our Days Sales Outstanding to 48.8 days (-.5 days YoY) and Days Inventory Outstanding to 63. days (- 9.0 days YoY) LOWER INDEBTNESS Alicorp continued reducing its Leverage, Net Debt-to-EBITDA ratio decreased from.66x as of December 206 to.00x as of December 207. Likewise, Net Debt was reduced by S/ 434. million in the same period REPUTATION AWARDS & RECOGNITION Merco: st 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: st place - The Best Company to Work For in the Consumer Goods Sector the top 0 of Most Attractive Companies to Work For 46

48 EBITDA Margin (%) Revenue (PEN Million) 8 Q4 207 Performance by Business Unit & Regions CONSUMER GOODS B2B AQUACULTURE % % % % +4.6% Q4 6' Q4 7' Peru International Q4 6' Q4 7' Q4 6' Q4 7' Q4 6 Q4 7 Var. Q4 6 Q4 7 Var. Q4 6 Q4 7 Var. 3.3% 2.4% 4.3% 7.4% 0.0% 7.4% -0.9 p.p..4%.8% 0.4 p.p p.p p.p..6% 3.3% +.7p.p. Revenue Mix Peru Ecuador Chile Argentina Brazil Others (%) 60.% 6.9% 7.8% 6.4% 6.2% 2.6% Financial figures of B2B and Aquaculture are consolidated. 47

49 PERU CONSOLIDATED 8 Performance by Business Unit & Regions () Variation Consolidated Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue,509,639,699,734 6,580,438,629,75,8 6,629,590,827,824,860 7,0 2.7% 2.0% Gross Profit , , , % -0.3% SG&A , , , % 2.4% EBITDA % -9.% Gross Margin 27.5% 28.0% 29.5% 28.4% 28.4% 30.4% 30.2% 30.4% 30.% 30.3% 30.9% 3.6% 33.2% 32.5% 32.% 2.4% -0.7% SG&A(% of Revenue) 9.2% 9.3% 9.3% 20.% 9.5% 2.4% 20.6% 20.0% 9.5% 20.3% 2.8% 20.0% 20.9% 2.0% 20.9%.5% 0.% EBITDA Margin 9.9% 9.6% 3.%.%.0%.4%.9% 2.9% 2.% 2.%.7% 3.2% 3.6% 2.% 2.7% 0.0% -.5% Consumer Goods Peru Variation Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue , , , % -2.3% Gross Profit , % -5.6% SG&A % -0.% EBITDA % -3.9% Gross Margin 34.2% 35.2% 37.% 35.6% 35.6% 38.0% 38.2% 38.0% 38.% 38.% 39.6% 40.% 40.8% 39.4% 40.0%.3% -.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.% 23.8%.2% 0.5% EBITDA Margin 4.7% 5.3% 8.0% 6.5% 6.2% 6.9% 7.3% 7.8% 7.4% 7.4% 8.3% 9.8% 9.7% 7.4% 8.8% 0.0% -2.3% Variation B2B Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue , , ,56 -.4% -5.6% Gross Profit % -3.9% SG&A % -3.0% EBITDA % -0.6% Gross Margin 23.% 2.6% 22.5% 20.6% 2.9% 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) 6.6% 5.9% 6.0% 9.0% 6.9% 6.6% 6.0% 5.3% 5.4% 5.8% 7.2% 6.9% 6.4% 6.8% 6.8%.4% 0.5% EBITDA Margin 8.8% 8.3% 9.0% 3.2% 7.3% 0.3% 0.3% 2.2%.4%.% 9.3% 8.5% 2.4%.8% 0.6% 0.4% -0.7% SG&A doesn t include other expenses and raw material hedging expenses. 48

50 B2B 8 Performance by Business Unit & Regions (2) Variation Food Service Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue % -3.% Gross Profit % -0.3% SG&A % -3.0% EBITDA % 0.3% Gross Margin 26.6% 28.8% 30.4% 29.8% 29.0% 30.0% 29.% 28.3% 27.9% 28.8% 27.% 29.0% 3.5% 32.4% 30.% 4.6% 0.9% SG&A(% of Revenue) 6.7% 6.0% 6.5% 9.2% 7.2% 6.% 6.3% 5.6% 5.6% 5.9% 6.9% 7.3% 6.8% 6.8% 6.9%.2% 0.0% EBITDA Margin.9% 5.3% 6.0% 2.4% 3.9% 6.0% 5.0% 4.6% 4.0% 4.9% 2.4% 3.5% 6.3% 6.9% 4.9% 2.9% 0.6% Bakery Variation Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue % -9.3% Gross Profit % -8.0% SG&A % -4.7% EBITDA % -25.2% Gross Margin 23.2% 2.5% 25.2% 25.6% 23.9% 26.0% 24.3% 25.5% 25.3% 25.2% 24.0% 22.% 26.9% 28.0% 25.% 2.0% 0.4% SG&A(% of Revenue) 7.5% 6.8% 6.6% 9.6% 7.6% 8.2% 6.6% 7.4% 8.2% 7.6% 20.3% 8.% 7.6% 8.5% 8.5% 0.3% 0.9% EBITDA Margin 8.3% 7.7%.4% 8.5% 9.0% 8.9% 9.4% 0.0% 7.9% 9.% 6.0% 5.3% 0.6% 8.7% 7.7% 0.8% -.8% Industries Variation PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue % 0.4% Gross Profit %.% SG&A % 5.8% EBITDA % -2.6% Gross Margin 20.2% 2.0% 22.2% 23.4% 2.8% 2.8% 20.3% 2.5% 2.9% 2.4% 8.4% 8.2% 9.3% 9.5% 8.9% -2.4% 0.% SG&A(% of Revenue).% 0.7% 9.9% 2.0% 0.9% 9.3% 8.5% 6.8% 6.7% 7.7% 9.5% 2.2%.4% 2.0%.3% 5.3% 0.6% EBITDA Margin 0.8%.9% 4.2% 2.9% 2.6% 4.4% 3.3% 6.2% 6.3% 5.2%.% 7.5% 9.0% 8.7% 9.0% -7.6% -0.3% Q4 7 SG&A doesn t include other expenses and raw material hedging expenses. 49

51 INTERNATIONAL 8 Performance by Business Unit & Regions (3) Variation Consumer Goods Int Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue , , ,46-7.5% 5.2% Gross Profit % 3.% SG&A %.2% EBITDA % -98.7% Gross Margin 3.4% 32.2% 33.2% 32.3% 32.3% 32.2% 3.0% 32.4% 33.6% 32.3% 33.4% 35.8% 35.3% 34.6% 34.8%.% -0.7% SG&A(% of Revenue) 28.8% 28.9% 29.8% 29.7% 29.3% 32.% 3.0% 33.8% 32.7% 32.4% 35.3% 35.0% 38.7% 37.2% 36.5% 4.5% -.5% EBITDA Margin 4.6% 5.7% 5.2% 7.8% 5.8% 2.6% 3.0% 3.5% 4.3% 3.4% 0.% 2.6% -.4% 0.0% 0.4% -4.3%.4% Variation CGI Brazil Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue % -6.5% Gross Profit % -6.9% SG&A % -3.8% EBITDA % -3.8% Gross Margin 37.8% 35.8% 36.9% 32.2% 35.7% 29.4% 28.7% 35.7% 4.4% 34.2% 40.3% 4.4% 40.5% 40.4% 40.7% -.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.% 37.2% 35.6% 38.% 39.2% 37.5% 6.9%.% EBITDA Margin 0.2% 7.6%.% 7.%.5% -.2% -2.4% 4.3% 3.0% 3.8% 7.0% 8.8% 5.3% 5.5% 6.7% -7.5% 0.2% CGI Argentina Variation Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue % 2.8% Gross Profit % 5.4% SG&A % 2.3% EBITDA % -2.0% Gross Margin 24.2% 28.2% 30.% 30.5% 28.2% 3.7% 30.7% 27.0% 22.4% 28.% 25.0% 28.7% 25.7% 24.4% 26.0% 2.0% -.3% SG&A(% of Revenue) 28.9% 28.6% 30.9% 3.6% 30.0% 30.8% 29.7% 32.6% 37.8% 32.5% 35.5% 38.0% 4.6% 38.3% 38.% 0.5% -3.3% EBITDA Margin -3.3%.6% 0.0% -.7% -0.8% 2.8% 3.5% -0.3% -2.2% -.2% -0.5% -8.8% -5.3% -2.3% -.5% -0.% 3.0% SG&A doesn t include other expenses and raw material hedging expenses. 50

52 AQUACULTURE 8 Performance by Business Unit & Regions (4) Variation Aquaculture Q4 7 PENM Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY YoY QoQ Revenue , , , % 4.7% Gross Profit % 5.% SG&A % 44.2% EBITDA % -7.6% Gross Margin 8.0% 9.0% 9.6% 20.3% 9.2% 20.4% 2.% 20.7% 9.0% 20.2% 2.2% 23.0% 25.0% 25.% 23.7% 6.% 0.% SG&A(% of Revenue) 6.5% 7.% 7.% 8.7% 7.4%.6% 9.3% 8.% 8.2% 9.% 0.3% 8.6% 9.5%.9% 0.% 3.7% 2.4% EBITDA Margin 3.% 3.7% 3.8% 3.2% 3.5% 0.7% 3.8% 4.4%.6% 2.7% 2.6% 6.4% 6.6% 3.3% 4.8%.7% -3.2% FX RATES Year Quarter Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY Q Q2 Q3 Q4 FY USD/PEN USD/ARS USD/BRL ARS/PEN BRL/PEN Average FX rates for the period. 2 SG&A doesn t include other expenses and raw material hedging expenses. 5

53 EBITDA & Net Income Drivers

54 8 EBITDA Main Drivers (YoY) SG&A EXPENSES EVOLUTION 2 EBITDA growth was a result of a higher Gross Profit (+S/ 48.4 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) General & Administrative Selling 20.0% 2.8% 20.0% 20.9% 2.0% 3.4% 4.4% 3.4% 4.0% 4.2% 6.6% 7.4% 6.6% 6.9% 6.8% Q4 6' Q 7' Q2 7' Q3 7' Q4 7' MAIN DRIVERS OF EBITDA (YoY) 2.% +.8% -.4% -0.4% 2.% EBITDA Q4 6' Gross Profit SG&A Other Net Operating Expenses EBITDA Q4 7' 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. 53

55 8 Net Income & Net Margin (%) Evolution FINANCIAL EXPENSES EVOLUTION Net Income increased S/ 45.7 million, reaching S/ 25.9 million in Q4 7, driven by: i) Less financial expenses and FX losses (S/ million YoY) ii) Higher profitability during the quarter due to an increase in gross margin. (As % of Total Revenue) 2.3% 0.2% 2.% 0.2%.3%.4%.0% 0.2%.9% 0.5% 0.7% 0.% 0.%.% 0.8%.0% 0.5% 0.3% -0.% Q4 6' Q 7' Q2 7' Q3 7' Q4 7' Net Financial Expenses FX Gains/Losses FX and Rates Hedging Expenses MAIN DRIVERS OF NET INCOME (YoY) 4.4% 0.6%.6% 0.3%.3% 0.3% 0.2% 0.4% 6.8% Net Income Q4 6' Operating Profit Net Financial Expenses FX and Rates Hedging Expenses FX Exchange Losses Other Income Tax Net Income Q4 7' 54

56 Debt & Cash Management

57 Global By Source 8 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 i) All-in cost of debt decreased 3.2 p.p. YoY as of December 207, mainly due to lower Argentina and Brazil operation s debt, whose interest rates were the highest ii) FINANCIAL STRATEGY As of December 207, 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 208, aiming to smooth its maturity profile TOTAL DEBT 2 By Currency % Dec-5 Dec-6 Dec-7 7.% 3.8%.6% DEBT BREAKDOWN S/ 2,070 MM S/,606 MM S/,942 MM 5.% 0.4% 5.0% 89.5% USD PEN BRL ARS 96.5%.0% 2.5% NET DEBT-TO-EBITDA RATIO (PEN Million) Net Debt EBITDA LTM All-in Cost of Debt,333, x.35x.06x 0.98x.00x 8.4% 8.5% 8.2% 8.4% 8.5% 7.% 8.2% 7.% 5.2% 5.2% Q4 6' Q 7' Q2 7' Q3 7' Q4 7' Peru 4.6% 48.4% 29.7% 0.3%.4% 33.% 52.6% CREDIT RATING BBB- / Stable BBB / Stable Baa3 / Stable AAA / Negative - 2.9% International Bond Local Bonds ST Bank Debt LT Bank Debt = = = + 3.0% 44.4% Firm Dec-6 Dec-7 4.3% 0.3% BBB- / Stable BBB / Stable Baa3 / Stable AAA / CP+ / Stable AAA / EQL+ 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. 2 Before swap debt. / 3 After swap debt. 4 Equilibrium publishes ratings for the company since October 207. This local agency, does not publish outlooks for rated instruments 56

58 8...and improve its debt maturity profile A B C Over 206, Alicorp refinanced its short-term debt with two local bonds (S/ 70 and S/60 millions) Alicorp reduced its Net Debt-to-EBITDA ratio to.00x as of December 207 from.66x as of December 206 Cash and cash equivalents cover the maturity of 208 debt at.07x as of December 207 (.3x as of December 206). During Q4 7, Alicorp took advantage of lower interest rates through short-term financing A MATURITY PROFILE : DURATION AS OF DECEMBER 207 WAS 2.95 YEARS VS YEARS AS OF DECEMBER 206 December 206: Total Debt: S/,606 million Duration: Cash [Q4 6] % 24% 6% 0.5% 23% 3% 6% 6% 6% 6% 3% B December 207: Total Debt: S/,942 million Duration: 2.95, C 36 Cash [Q4 7] % 5% 0.4% 9% 3% 5% 5% 5% 5% 3% Debt after hedging operations, at amortized cost. Local Bonds International Bond Long-Term Bank Debt Shot-Term Bank Debt 57

59 8 Working Capital and CAPEX Management for Q4 207 KEY MILESTONES A Alicorp successfully reduced its Cash Conversion Cycle from.8 days as of Q3 7 to 7.4 days as of Q4 7, 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. million) BDAdditionally, the Company was able to reduce its capital investment requirements without compromising growth A WORKING CAPITAL EVOLUTION (PEN Million) A temporary increase in accounts receivables of S/ 4.7 millions, make a DSO 2 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) 304 Market conditions allow us to access commercial facilities with suppliers 404 Q4 6' Accounts Receivable Inventories Accounts Payable Q4 7' A DAYS OF WORKING CAPITAL 3 B CAPEX EVOLUTION (Days) Accounts Receivable Inventories Accounts Payable (PEN Million) Property, Plant & Equipment.25%.2% 0.82% PP&E as % of Sales.68%.02% Q4 6 Q 7 Q2 7 Q3 7 Q4 7 CCC Q4 6' Q 7' Q2 7' Q3 7' Q4 7' Working Capital is defined as the last twelve month (LTM) average of accounts receivable plus average inventory minus average accounts payable 2 Days sales outstanding 3 Average days as a mean of the LTM balance sheet accounts. 4 Cash Conversion Cycle 58

60 8 Cash Flow Build Up as of Q4 207 HIGHLIGHTS Cash Flow from Operations was S/ million, S/ 47. million lower compared to Q4 6' 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 206; while S/ 84.3 was hold for investments Cash Flow used in Financing Activities was S/ 0.6 million, compared to S/ million as of Q4 6', mainly due to an increase in short term loans MAIN DRIVERS FOR CASH FLOW EVOLUTION (PEN Million) Cash Flow from Operations S/ Cash Flow from Investing S/ Cash Flow from Financing S/ , , Net Cash on Q4 6' Cash generated from operations Taxes Other expenses from operations Investment Activities 2 Debt Interest Payment Divident Payment Other financial activities 3 Net Cash on Q4 7' Investments: time deposits with maturity between 90 days and 360 days and mutual funds. 2 Includes PP&E, acquisitions, software and other investment activities 3 Includes FX Translation effect of S/ -5.7 million 59

61 20% 00% 80% 60% 40% 20% 0% 8 OCF & FCF Evolution (PEN Million) OPERATING & FREE CASH FLOW, Free Cash Flow for 207 is stronger than last year as a result of: i. An improvement in EBITDA, Operating Cash Flow Free Cash Flow ii. A reduction of the cash conversion cycle, OPERATING & FREE CASH FLOW CONVERSION iii. CAPEX rationalization 67% 77% 02% 86% 97% 07% Along the continuous increase in EBITDA, more than 00% of it has been converted into cash flow EBITDA / Operating Cash Flow EBITDA / Free Cash Flow 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 84MM) 60

62