Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Investor Presentation (May 2022)
57 slides from Alicorp Saa's investor presentation, May 2022
Slide 1: Corporate Presentation May 2022
CORPORATE PRESENTATION May 2022
Slide 2: Disclaimer
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 Compa
Slide 3: Topics
TOPICS KEY INVESTMENT HIGHLIGHTS 1 ALICORP AT A GLANCE 2 CORPORATE STRATEGY 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 APPENDIX 5
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS
Slide 5: Key Investment Highlights
Key Investment Highlights 1 Leading regional player with a successful business model diversified across product categories and countries 2 Portfolio of top-of-mind and leading brands with a proven track record of successful new product offerings 3 Unique manufacturing and distribution platform to se
Slide 6: Leading regional player with a successful business model
KEY INVESTMENT HIGHLIGHTS 1. Leading regional player with a successful business model diversified across product categories and countries UNMATCHED PORTFOLIO OF HIGHLY SUCCESSFUL LEADING BRANDS ACROSS DIFFERENT SECTORS AND COUNTRIES Brands with leading position and market share in market and custome
Slide 7: Portfolio of top-of-mind and leading brands
KEY INVESTMENT HIGHLIGHTS 2. Portfolio of top-of-mind and leading brands with a proven track record of successful new product offerings SUCCESSFUL NEW PRODUCT LAUNCH STRATEGY WITH 508 LAUNCHES1 SINCE 2011 REACHING OVER 100 LEADING BRANDS ACROSS DIFFERENT TIERS AND CATEGORIES CONSUMER GOODS TIERS EDI
Slide 8: Unique manufacturing and distribution platform
KEY INVESTMENT HIGHLIGHTS 3. Unique manufacturing and distribution platform to serve Consumer Goods, B2B and Aquafeed clients OUR MANUFACTURING AND DISTRIBUTION NETWORK EFFICIENTLY INTEGRATES LOCAL AND REGIONAL OPERATIONS Distribution Capabilities Honduras For Consumer Goods and B2B, Exclusive stron
Slide 9: Inorganic growth through successful M&A strategy
KEY INVESTMENT HIGHLIGHTS 4. Inorganic growth through successful M&A strategy driven by best-in-class framework of integration practices RECENT ACQUISITIONS IN PERU AND BOLIVIA ▪ Intradevco, a leading Home & Personal Care player in Peru ▪ Fino & Sao, a leading CPG and B2B company in Bolivia and a le
Slide 10: Solid financial performance and efficiency program
KEY INVESTMENT HIGHLIGHTS 5. Solid financial performance driven by our comprehensive efficiency program and shareholder value creation mindset SALES EVOLUTION (US$ MM) CAGR +7.2% 3,329 3,134 2,956 2,518 2,669 2,152 2,214 2,066 2,131 1,964 1,545 1,696 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 11: Highly experienced management and shareholder group
KEY INVESTMENT HIGHLIGHTS 6. Highly experienced management supported by a leading and innovative shareholder group in Peru OUTSTANDING MANAGEMENT TEAM COMBINES PROVEN TRACK RECORD OF ORGANIC AND INORGANIC GROWTH STRATEGIES AND VAST SECTOR EXPERIENCE ▪ Support from a regional conglomerate champion su
Slide 12: Alicorp at a Glance
ALICORP AT A GLANCE
Slide 13: Leading consumer goods company in Peru
ALICORP AT A GLANCE Alicorp is the leading company of consumer goods in Peru and one of the biggest in Latin America ALICORP IN THE REGION DIVISION BY BUSINESS1 BRANDED FOODS, HOME & PERSONAL CARE REVENUES CONSUMER 38% of total revenues Honduras 2022 LTM GOODS 77% 15% 4% OTROS 4 % Nicaragua Costa Ri
Slide 14: Main shareholder is a leading economic group in Peru
ALICORP AT A GLANCE Continuous interaction with key stakeholders OUR MAIN OWNERSHIP STRUCTURE1 SHAREHOLDER IS A CORPORATE LEADING ECONOMIC GOVERNANCE GOOD CORPORATE GROUP IN PERU. GOVERNANCE- 2019 7.2% 9.9% WE ARE COMMITTED TO CREATE VALUE FOR KEY AND CURRENT 48.2% OUR SHAREHOLDERS, SHAREHOLDERS MAI
Slide 15: Aligned with UN Sustainable Development Goals
ALICORP AT A GLANCE Corporate Purpose: We feed a better tomorrow Anemia Limited Resources Diabetes Promote circular Virgin materials economy Healthy nutrition Adaptation ALIGNED WITH THE UNITED Use of eco-friendly Veracity NATIONS SUSTAINABLE packaging Products and Nutritional information Global War
Slide 16: Wellness, Sustainable Value Chain, Environmental Care
ALICORP AT A GLANCE Corporate Purpose: We feed a better tomorrow Wellness Sustainable Value Chain Environmental Care Helping families build their Supporting our stakeholders to Generating efficiencies to protect wellbeing achive sustainability the enviroment ▪ Products and Nutrition ▪ Responsible So
Slide 17: Well-defined strategy for sustainable growth
ALICORP AT A GLANCE Well-defined strategy that provides sustainable growth rates LEVERAGED IN COMPETITIVE ADVANTAGES CONSUMER GOODS – PERU STRATEGIC PILLARS ENABLERS DELIVERING HEALTHY GROWTH GO-TO-MARKET STRATEGY RATES +110k POS 3,533 POS Traditional channel1 Modern channel2 +12% GROWTH PRODUCT BRA
Slide 18: Alicorp is the undisputed leader in its core markets
ALICORP AT A GLANCE Alicorp is the undisputed leader in its core markets RANKED #1 FOR MAIN CATEGORIES Business Category Brands Rank % of sales1 Competitors Laundry Detergents #1 6.9% Edible Oils #1 6.1% 2 Consumer Goods Peru Pasta #1 3.4% Cookies & Crackers #1 2.1% Industrial Baking Flour #1 6.1% B
Slide 19: Consumer Goods Peru
ALICORP AT A GLANCE Consumer Goods Peru REVENUE AND GROSS MARGIN OUR CGP BUSINESS MAIN CATEGORIES BREAKDOWN % of CGP Sales in 2022 1 (PEN million) HIGHLIGHTS UNIT OFFERS FOODS, CAGR 2017-2022: 5.6% Production facilities HOME AND PERSONAL 3,895 3,549 3,722 3,797 2,892 3,188 CARE PRODUCTS 39.0% Main c
Slide 20: Leveraging our distribution model
ALICORP AT A GLANCE Leveraging our distribution model CONSUMER GOODS PERU: GO-TO-MARKET MODEL1 STRONG PRESENCE OF ALICORP’S PRODUCTS IN PERUVIAN HOUSEHOLDS4,5,6 (As % of household presence) 28% TRADITIONAL CHANNEL Exclusive Laundry Detergents 84 distributors 30 10% Pasta 78 Wholesalers 37 SHOPPER 35
Slide 21: Consumer Goods International
ALICORP AT A GLANCE Consumer Goods International REVENUE AND GROSS MARGIN GEOGRAPHICAL PRESENCE (PEN million) HIGHLIGHTS CAGR 2017-2022: +0.1% Production facilities OUR CGI BUSINESS 1,706 PRODUCES AND Main exports 1,289 1,145 1,074 1,132 1,149 DISTRIBUTES FOODS, 26.9% HOME AND PERSONAL 30.1% 24.8% 2
Slide 22: B2B
ALICORP AT A GLANCE B2B HOW B2B ADDS VALUE REVENUE AND GROSS MARGIN OUR B2B BUSINESS HIGHLIGHTS (PEN million) GO-TO-MARKET CAGR 2017-2022: +9.4% Production facilities HAS THREE MAIN ✓ Ample coverage 2,360 PLATFORMS: FOOD ✓ Efficient client segmentation 2,169 ✓ Exclusive distributors 1,504 1,586 1,64
Slide 23: Aquafeed
ALICORP AT A GLANCE Aquafeed REVENUE AND GROSS MARGIN OUR AQUAFEED GEOGRAPHICAL PRESENCE (USD million) BUSINESS PRODUCES CAGR 2017-2022: +8.1% SHRIMP FEED IN 797 719 635 650 CHILE, ECUADOR, 539 548 HIGHLIGHTS PERU AND HONDURAS; 21.9% 21.9% 21.2% 19.2% 15.4% 14.8% Production facilities AND SALMON FEE
Slide 24: Crushing
ALICORP AT A GLANCE Crushing REVENUE 1 1 VOLUME SOLD (USD million) (Thousands of MT) OUR CRUSHING +17.1% 879 BUSINESS PRODUCES 804 HIGHLIGHTS 325 207 195 Production facilities SUNFLOWER SEED 277 61 71 +17% 389 496 128 OILS AND SOYBEAN 83 672 Main exports 609 306 368 OILS AND MEAL FOR 216 254 +17% 20
Slide 25: Corporate Strategy
si alicorp CORPORATE STRATEGY
Slide 26: Strategy enablers to secure our leadership
CORPORATE STRATEGY In order to secure our leadership, we incorporated enablers to our strategy that lead us to i) achieve our long-term objectives and ii) face the changing business dynamics STRATEGIC PILLARS OBJECTIVES STRATEGIES ENABLERS ▪ Maximize the value of our core categories Focus on opportu
Slide 27: Growth Pillar: Update on Fino and Sao's integration
CORPORATE STRATEGY Growth Pillar: Update on Fino and Sao’s integration • Consumer Goods: Results have outperformed our business case. Accelerated commercial and distribution initiatives, portfolio diversification and effective execution contributed to market share increases in key categories, such a
Slide 28: Growth Pillar: Update on Intradevco's integration
CORPORATE STRATEGY Growth Pillar: Update on Intradevco’s1 integration Results have outperformed our business case • Consumer Goods Peru: Horizontal growth strategy in order to consolidate our Household Care and Personal Care platforms through commercial and distribution initiatives to gain market sh
Slide 29: Efficiency Pillar: Highest efficiency standards
CORPORATE STRATEGY Efficiency Pillar: We promote the highest efficiency standards 20.3 16.1 15.5 14.7 15.0 SG&A / 12.4 11.5 Revenue ALICORP (%) 0 2016 2017 2018 2019 2020 3 2021 3 2022 4 ▪Highly experienced corporate CONTINUOUSLY SEEKS team entirely dedicated to the IMPROVEMENT monitoring and manage
Slide 30: Digital & Analytics: Our digital transformation journey
CORPORATE STRATEGY Digital & Analytics: Our digital transformation journey OUR DIGITAL Accelerate the efficiency of our TRANSFORMATION business • Migration to SAP S4HANA AGENDA SEEKS TO to improve processes and functionalities CREATE VALUE • Upgrade IT infrastructure to improve performance THROUGH T
Slide 31: The Fenix Program, migration to SAP S4Hana
CORPORATE STRATEGY Digital & Analytics: The Fenix Program, our migration to SAP S4Hanna IN 2018, WE S4H GO LIVE ROADMAP (Capex+Opex) / Sales (%) HIGHLIGHTS EMBARKED ON A ▪ Mostly-remote migration in Peru from SAP R3 to S4H MULTIANNUAL ERP 2017 Business 2018 Warehouse 2019 Transportation 2020 Demand
Slide 32: The purpose of our digital transformation
CORPORATE STRATEGY Digital & Analytics: The purpose of our digital transformation We ask ourselves three questions about We are developing capabilities in order to Alicorp’s core answer these questions DIGITAL TRANSFORMATION IS AN ENABLER THAT How do we increase Alicorp’s sales today? SEEKS TO ANSWE
Slide 33: Leveraging our new digital capabilities
CORPORATE STRATEGY Digital & Analytics: It’s time to leverage our new digital capabilities Some of our most emblematic digital initiatives include… SO FAR, WE HAVE ACCOMPLISHED GREAT ~50 initiatives PROGRESS AND launched MICROSEGMENTATION DIGITAL TOOLS FOR B2B MARKETPLACE GENERATED OF OUR CLIENTS AN
Slide 34: Digital ecosystems for our clients in Peru
Q2 ’21 STRATEGIC HIGHLIGHTS Digital Initiatives BUILDING DIGITAL ECOSYSTEMS FOR OUR CLIENTS IN PERU TO STRENGTHEN OUR GO TO MARKET Digital ecosystem to better serve our B2B FIRST RESULTS clients ➢ 90%+ higher average ✓ Comprehensive product portfolio (including fresh tickets compared to DEX RESTAURA
Slide 35: Digital tools to reach our clients using Big Data
CORPORATE STRATEGY Digital & Analytics: Digital tools to reach our clients using Big Data SOLUTIONS FOR RETAIL CLIENTS SOLUTIONS FOR WHOLESALE CLIENTS Sales force Self-service Self-service STORES THAT USED Nitro 2 AliMarket Web Clientes (deployed) (pilot) (deployed) “PEDIDO SUGERIDO” HAD A 10% HIGHE
Slide 36: Alisoluciones ecosystem for B2B clients
CORPORATE STRATEGY Digital & Analytics: Alisoluciones is an ecosystem of comprehensive solutions that transforms us into strategic partners for our B2B clients ADOPTION KPIS IN 2021 OUR ALISOLUCIONES ECOSYSTEM INCLUDES ~7k ~26% A COMPLETE SET OF Visitors to the Penetration of digital sales AliSoluci
Slide 37: IoT and analytics ecosystem for Vitapro's clients
Q2 ’21 STRATEGIC HIGHLIGHTS Digital Initiatives INTERNET OF THINGS AND ANALYTICS ECOSYSTEM TO IMPROVE PRODUCTIVITY IN VITAPRO’S CLIENTS Our solution introduces Internet of Things, data and analytics infrastructure to shrimp pool OUR PURPOSE IS TO management to improve efficiency FIRST RESULTS TRANSF
Slide 38: Analytics solution for salmon farmers
CORPORATE STRATEGY Digital & Analytics: In our Aquafeed unit, we developed an innovative and distinctive analytics solution to help salmon farmers improve productivity by 5-10% ENVIRONMENT PRODUCTION FACTORS ANALYTICS SOLUTIONS Growth + + = Daily feeding • Raw variables: Temperature, oxygen, • Feedi
Slide 39: Machine learning model projects salmon weight
CORPORATE STRATEGY Digital & Analytics: Once all exogenous variables were included, the projection was very close to the real performance Inputs Average weight projection per cycle New Model Weight SEVERAL VARIABLES Average weight 7 Static AND PREDICTIONS Equation From 2-3 variables FEED OUR MACHINE
Slide 40: Daily feeding recommendations for salmon
CORPORATE STRATEGY Digital & Analytics: The model also provided daily recommendation on the feeding processes that optimize feeding costs and farmer productivity Inputs Daily recommendation curve Benefits IN ADDITION TO Average weight Daily feeding PREDICTING SALMON recommendation tailored for each
Slide 41: Innovating how we innovate
CORPORATE STRATEGY Innovation: Creating an innovation culture across the organization INNOVATING HOW WE INNOVATE We are seeking to innovate not only in our products, but also in our services and business models, in the way in which we interact with our clients and customers Continue to innovate in 1
Slide 42: Innovation: design thinking to explore consumer needs
Q2 ’21 STRATEGIC HIGHLIGHTS Innovation INNOVATING HOW WE INNOVATE – DESIGN THINKING TO EXPLORE CONSUMER NEEDS ✓ Agility in decision making ▪ #BUENOYBUENAZO BETTER FOR YOU, SNACKS THAT ✓ Iterative strategy ▪ Help millennials snack better, encouraging COMBINE 44% CACAO WITH ✓ 1.5-year consumer focused
Slide 43: Strategic initiatives since 2016
CORPORATE STRATEGY Since Alicorp’s strategy relaunched in 2016, we have implemented multiple strategic initiatives to grow and create value STRATEGIC INITIATIVES 2017 2018 2019 2020 2021 SMART GROWTH ANDEAN PLAYER ACQUISITION OF INTRADEVCO CONTROL OF THE IMPACTS OF EFFICIENCY PROGRAM ▪ Core categori
Slide 44: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 45: Conservative debt management with investment grade ratings
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating MATURITY PROFILE AS OF MARCH 20222 (PEN Million) Leases (IFRS 16) Bonds Long Term Bank Debt Short Term Bank Debt TOTAL CASH 979 961 CONSERVATIVE DEBT S/ 1,039 million 839 764 689 494 128 MANAGEMENT WITH DEBT COVERAGE 1 448 214 526 2
Slide 46: Leverage and readily marketable inventory
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage Readily Marketable Inventory and ALTHOUGH OUR Advance Payments (MM PEN) 711 713 800.00 CRUSHING BUSINESS’ 1000 536 625 608 638 280 600.00 READILY 129 398 166 MARKETEABLE 363 355 326 400.00 500 929 INVENTORIES (RMI) IS 877 67 96 161 133 670 200.00 91
Slide 47: Refinancing 2023 and 2024 maturities
SOLID LIQUIDITY AND STRONG BALANCE SHEET Average cost of debt and Working capital 2023 – 2024 DEBT’S MATURITIES: AVERAGE COST OF DEBT 1 (PEN Million) WE EXPECT TO Debt maturing in 2023 was incurred several years ago; therefore, we expect to refinance these liabilities near the REFINANCE PART OF 7.95
Slide 48: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 20 Dec 21 Mar 22 DEBT1 S/ 3,961mm S/ 5,245mm S/ 4,680mm 7.5% 7.8% 5.1% 10.2% 8.1% International Bonds 30.7% 29.0% By Source1 Local Bonds Working Capital Debt 34.3% 34.5% LT Bank Debt 29.9% Leases (IFRS 16) 4.6% 46.7% 5.3% 22.2% 24.1% 15.8% 15.0% 11.8% 0.9% 0.2% 0.2%
Slide 49: Dividend Payment Evolution
SOLID LIQUIDITY AND STRONG BALANCE SHEET Dividend Payment Evolution 713 213 205 205 205 0.84 162 145 0.24 0.24 0.24 0.25 120 110 0.19 103 103 95 0.17 0.13 0.14 50 0.11 0.12 0.12 42 46 0.06 0.05 0.05 1 2005 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 2018 2019 2020 2021 Dividend Paid (PEN milli
Slide 50: Appendix
APPENDIX
Slide 51: Aquafeed Deep Dive
APPENDIX AQUAFEED DEEP DIVE
Slide 52: Aquaculture: industry with strong fundamentals
APPENDIX Aquaculture: Industry with strong fundamentals Vitapro’s presence in Latin America ECUADOR IS BEST POSITIONED TO CAPTURE MARKET SHARE IN THE GROWING SHRIMP MARKET SOLID MARKET GROWTH PERSPECTIVE Honduras Competitive Guatemala Favorable Efficient Nicaragua IN LINE WITH climate access to raw
Slide 53: Vitapro's strategy: bridge to digital transformation
APPENDIX Vitapro’s strategy: To become the bridge between our clients and the digital transformation ▪ Developing a set of digital solutions that transforms the industry CREATING VALUE ➢ IoT platform ➢ Predictive models based on machine learning ✓ Continuous product SHRIMP FEED • First model based o
Slide 54: Aquafeed: update on market dynamics
Q1 '22 OPERATING RESULTS BY BUSINESS % % YoY % growth Aquafeed: Update on Market Dynamics SHRIMP SALMON SHRIMP: GROWTH IN Shrimp Exports in Ecuador (MT K and US$ MM) Salmon Exports in Chile (MT K and US$ MM) EXPORT VOLUME AND 2,500 +74% +81% 2,500 2,000 +11% +33% +37% VALUE DRIVEN BY +79% -10% 1,607
Slide 55: Q1 '22 Milestones
APPENDIX Q1 ‘22 MILESTONES
Slide 56: 1Q '22 Milestones
APPENDIX 1Q ’22 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 13 products were launched / relaunched as part of our innovation strategy, being the most remarkable: Alicorp was recognized in the Merco Responsibility ESG Ranking 2021 as one of the 10 most responsible companies in Peru
Slide 57: Investor Relations contact
Gisele Remy Ferrero Investor Relations Officer (+51) 997515700 [email protected] www.alicorp.com.pe This presentation and further detailed information can be found in the following link in our section “Investor Services”: https://inversionistas.alicorp.com.pe/alicorp-ir/public/investo