4Q14 Highlights
Revenue and Volume increased 5.7% and 1.3% YoY, respectively. Consumer Goods
revenues remained stable YoY, B2B Branded Products decreased 7.9% YoY and
Animal Nutrition revenues increased 50.5% maintaining
the
extraordinary
growth in previous quarters. Main contributors were: sauces, panettones,
cereals, fabric softeners, edible oils, industrial margarines, frozen products and
shrimp and fish feed
We launched and re-launched 14 new products for Consumer Goods and B2B products
Gross Profit increased 4.3%
explained by margin expansion in Consumer Goods Peru
and Animal
Nutrition
EBITDA and EBITDA margin were S/. 175.9 million and 10.4% respectively,
(the YoY decrease is explained by significant reduction in Operating Income in
Argentina and extraordinary Income from tax benefits in Brazil in 4Q13)
Net Income reached -S/. 168.6 million due to higher financial expenses related to
commodity hedging operations, higher financial expenses generated by Argentina
higher level of debt and higher interest rates, and higher exchange currency losses
Alicorp issued S/. 116.0 million (Dec-2014) and S/. 500.0 million (Jan-2015) in local
Peruvian bonds encompassed within Alicorp´s 3rd Peruvian Corporate Bonds
Programme of
S/.1.0 billion, aimed at refinancing short-term liabilities and
reducing exposure to USD debt
Alicorp was recognized within the Top 5 firms in Peru acknowledged for “Social
Responsibility and
Corporate Practices” by Merco and Gestión Magazine
[CLIENT NAME]
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3
FY 2014 Highlights
Revenue and Volume increased 8.0% and 5.6% YoY, respectively. Consumer Goods
revenues increased
2.4% YoY, B2B Branded Products remained stable (0.5% YoY) and Animal Nutrition
revenues increased
42.2% showing an outstanding growth in this year. Main drivers for growth were: pasta,
cereals, sauces,
detergent, panettones, industrial margarines and shrimp and fish feed
During 2014, Alicorp launched 43 and re-launched 21 products, pushing for organic
growth through continuous innovation to increase value to our costumers
Gross Profit increased 10.1% on the back of a margin expansion in consumer goods
Peru and Animal
Nutrition and a decrease in COGS despite operations in Argentina
EBITDA
and
EBITDA
margin
amounted
to
S/.
692.2
million
and
11.0%
respectively, due to significant reduction in Operating Income in
Argentina and extraordinary expenses through the year
Net Income decreased to S/. 18.9 million on the back of higher financial
expenses related to commodities hedging operations, higher financial expenses
generated by Argentina higher indebtedness, along with extraordinary effects for
2013 such as i) the REFIS Programme in Brazil and ii) sale of the Pet Business
[CLIENT NAME]
5
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3
2014 Key Milestones
Business Developments
Consumer Goods Peru: Alicorp acquired 100% stake in Global Alimentos, the
leading producer of branded ready-to-eat cereals in Peru under the “Angel” brand
Animal Nutrition: We created Vitapro, a 100% Alicorp-owned subsidiary that
encompasses our aqua businesses in Peru, Ecuador and Chile. In addition, we
began the expansion of the Inbalnor shrimp feed plant in Ecuador to increase
production capacity to 210 thousands tons per year
B2B Branded Products: We launched, Masterbread to focus on the production and
commercialization of frozen bakery products
Awards & Recognitions
Euromoney recognized Alicorp as one of the top 10 Best Managed Companies in
Latin America and among top 5 Best Managed Companies in Peru
For the 4th consecutive year, Alicorp was named one of the companies that are
recognized for Good Corporate Governance and was listed on this Index in the
Lima Stock Exchange. Alicorp was recognized for its good corporate practices,
transparency of information as well as professionalism standards
Alicorp was recognized by Merco as one of the 10 best employers in Peru and
as part of the
Great Corporate Governance Index 2014
G-Magazine and PwC acknowledged Alicorp as one of the 10 Most Admired
Companies in Peru for the third consecutive year
[CLIENT NAME]
6
Presentation3
Revenue and Gross Margin (%) Year-over-Year
(“YoY”)
4
Revenues & Gross Margin
Revenues & Gross Margin
(PEN Million)
(PEN Million)
1,59
8
1,56
3
1,644
1,688
6,285
5,81
8
4,474
28.6%
27.2%
27.7%
28.5%
28.2%
1,234
4Q13
3Q14
1Q14
4Q14
[CLIENT NAME]
2Q14
1,598
1,688
27.2%
27.9%
28.6%
28.2%
27.3%
27.4%
4Q12
2014
4Q13
4Q14
2012
2013
7
Presentation3
EBITDA and EBITDA Margin (%) Year-over-Year
(“YoY”)
4
EBITDA & EBITDA Margin
EBITDA & EBITDA Margin
(PEN Million)
(PEN Million)
75
3
697
3
243
20
2
16
4
15
0
56
0
3
17
6
1
10.8%
10.4%
10.5%
2
12.3%
15
4
12.5
%
4Q13
3Q14
1Q14
4Q14
[CLIENT NAME]
2Q14
4Q12
2014
24
3
15.2
%
4Q13
17
6
4
12.5%
12.9% 5
10.4
%
4Q14
2012
11.0%
2013
1
EBITDA and EBITDA margin without the tax benefits from REFIS program in Brazil would have been S/. 185.7 million and
11.6%
2
EBITDA and EBITDA margin for 4Q14 without extraordinary expenses would have been S/. 211.1 million and 12.5%
3Includes EBITDA from acquisitions for S/. 5.1 million
4
EBITDA and EBITDA margin for 2013 without extraordinary benefits from REFIS would have been S/. 695 million and
8
12.0%
5
EBITDA and EBITDA margin for 2014 without extraordinary expenses would have been S/. 726.5 million and 11.6%
Presentation3
4
2014 Performance by Business Unit & Regions
Alicorp seeks to continue its geographic diversifcation strategy
(PEN Million)
CONSUMER
PRODUCT GOODS
2014
- Revenues
PERU
- EBITDA
Margin
- Revenues
INTERNATIO
NAL
- EBITDA
Margin
- EBITDA
Margin
[ C L I E N T Mix
NAME]
Revenue
Var.
%
201
4
201
3
Var.
%
201
4
201
3
Var.
%
201
4
201
3
Var. %
2,297
.8
2,193
.7
4.7
%
1,471
.4
1,441
.6
2.1
%
112.
8
98.
9
14.1
%
3,883
.0
3,730
.5
4.1%
14.9
%1
15.4
%
10.9
%
11.5
%
12.7
%
16.2
%
1,266
.0
1,285
.9
0.
8
23.
0
1,135
.6
778.
8
3.7
%
11.8
%
6.9
%
9.0
%
13.7
%
10.2
%
3
3,563
.8
3,479
.6
10.9
%
14.1
%
Per
u
61.2%
1
ANIMAL NUTRITION
201
3
1.5
%
- Revenues
TOT
AL
B2B BRANDED
PRODUCTS
TOTAL
2.4
%
1,472
.2
10.9
%5
Ecuador
9.8
%
1,464
.6
11.5
%
Brazil
8.7
%
96.7
%
0.5
%
1,248
.4
877.
7
13.7
%
10.9
%
Argentina
8.7
%
12.6
%
45.8
%
2
2,402
.4
8.4
%4
42.2
%
Chil
e
8.5
%
13.8
%
2,087
.8
11.3
%
15.1%
7.9%
6,284
.4
5,821
.9
11.0
%
12.9
%
6
Others
3.1
%
Total EBITDA and EBITDA Margin ex extraordinary expenses resulted in S/. 352.7 million and 15.4% respectively
2
Total EBITDA of Peru includes Operating Losses from Other Businesses for S/. 26.6 million
Ex tax benefits from REFIS programme in Brazil, resulted in EBITDA margin of 7.4%
3
4
9Total EBITDA of other countries includes Operating Losses from Other Businesses for S/. 1.0 million
5
Ex adjustment in inventory costs, EBITDA and EBITDA margin resulted in S/. 42.7 million and 11.5% respectively
Ex tax benefits from REFIS programme in Brazil, resulted in EBITDA margin of 12.2%
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Presentation3
Consumer Goods Peru
4
Highlights
Revenues increased 6.0% YoY and Volume increased 2.7% YoY
Supported mainly by: sauces, panettones, cereals and edible oils
EBITDA reached S/. 99.0 million and EBITDA margin increased to 15.9% explained by lower COGS
We launched and re-launched 7 new products
Revenues & EBITDA Margin
(PEN Million)
(PEN Million)
2,194
587
50
0
17.0%
15.9%
4Q13
3Q14
1Q14
4Q14
[CLIENT NAME]
1,95
9
612
563
622
2Q14
2,298
518
622
587
14.9%
12.7%
4Q12
2014
4Q13
15.9%
4Q14
15.4%
14.9%
15.1%
2012
2013
10
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Consumer Goods International
4
Highlights
Revenues decreased 11.8% YoY and Volume decreased 11.8% YoY
Driven mainly by lower sales in Argentina (-22.1% YoY) explained by current recession in the
country
EBITDA reached S/. 3.2 million and EBITDA margin decreased to 1.0% explained by a
significant lower operating income in Argentina as a result of price controls
EBITDA and EBITDA Margin remained solid in Brazil
We launched and re-launched 6 new products
Ex REFIS extraordinary income EBITDA margin resulted in 6.5%
Ex tax benefits from REFIS programme in Brazil EBITDA Margin resulted in 7.4%
2
11
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4
B2B Branded Products (“B2B”)
Highlights
Revenues and volume decreased 7.9% and 11.0% YoY, respectively
Driven by a decrease in industrial flours and grain sales
EBITDA and EBITDA Margin reached S/. 32.3 million and 8.7% respectively explained by an
increase of COGS and higher SG&A expenses
Revenues & EBITDA Margin
(PEN Million)
(PEN Million)
405
32
6
12.4
%
395
377
373
10.7%
11.0%
1,465
1,471
12.6%
11.5%
1,30
5
13.0
%
341
405
12.4%
10.9%
373
8.7%
13.2
%
4Q13
3Q14
1Q14
4Q14
[CLIENT NAME]
2Q14
4Q12
2014
4Q13
4Q14
2012
2013
12
4
Animal Nutrition (“AN”)
Highlights
Revenue and Volume increased 50.5% and 40.4% YoY, due to an increase in sales of shrimp
feed in Ecuador and
higher sales of fish feed in Chile
EBITDA increased 34.1% YoY to S/. 50.5 million on the back of strong sales increase and stable
gross margins
EBITDA margin decreased 10.9% YoY, mainly due to an increase in SG&A expenses