Corporate Presentation · PDF file1 This presentation may contain financial or business projections regarding recent acquisitions, their financial or business impact, management expectations

0

Corporate

Presentation

March, 2018

1

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.

2

Topics

Transaction Update [ 1 ]

About Alicorp [ 2 ]

Our Strategy to Create Value [ 3 ]

Guidance 2018 [ 4 ]

Q4 2017 Highlights [ 5 ]

Q4 2017 Business & Operating Review [ 6 ]

Stock Performance [ 7 ]

Financial Metrics [ 8 ]

3

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





3

1Fino 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 15%1 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 portfolio2

Edible oils

Lard

Margarine

Laundry soap

Strategic fit with Alicorp

Portfolio expansion

Access to new segments in the consumer

market

Brand extensions and products development

B2B penetration

>40%

>50%

>60%

>25%

x% Market share

Bolivia

Bolivia

ADM

Bolivia

Source: Company Information – not audited management figures1 Based on values calendarized to December and average of historical figures for the last 5 years2 Doesn´t include laundry detergents nor Alicorp´s distribution products.

Alicorp has the track-record and scale to significantly grow the CPG business in Bolivia

5

Process Update Independent Committee´s role

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

January 15: Announcement of the potential

acquisition of Fino and ADM Bolivia

January 15 – 22: Roadshow meetings with investors and

research analysts

January 24: Call to a General Extraordinary Shareholders’

Meeting for February 22

February 14: Release of the transaction update

presentation and Q417 and full-year 2017 results

February 19: Full-year 2017 Earnings Call

February 22: Extraordinary General Shareholders´ Meeting

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

Hiring external consultants for assistance to

accomplish their duties

The Ad Hoc Independent Committee’s constitution purpose

is to represent Alicorp´s shareholders by:

M T W T F S S

01/15 01/16 01/17 01/18 01/19 01/20 01/21

01/22 01/23 01/24 01/25 01/26 01/27 01/28

01/29 01/30 01/31 02/01 02/02 02/03 02/04

02/05 02/06 02/07 02/08 02/09 02/10 02/11

02/12 02/13 02/14 02/15 02/16 02/17 02/18

02/19 02/20 02/21 02/22

1 Process Update and Next Steps

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

6

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





7

Romero Group; 45.8%

Pension funds; 26.1%

Inv. & mutual funds; 17.3%

Other; 10.8%

5,818 6,283 6,580 6,629

7,101

741 481 722 802 901

12.7% 7.7%

11.0% 12.1% 12.7%

2013 2014 2015 2016 2017

Revenue EBITDA EBITDA Margin

Ownership structure

Business overview

Strong growth track record

(PEN million)

1 EBITDA and EBITDA Margin for 2013 accounted S/ 683.8 million and 11.8% respectively, ex extraordinary benefits from REFIS

2 EBITDA and EBITDA Margin for 2014 accounted S/ 688.4 million and 11.0% respectively, ex extraordinary losses of S/ 207.5 million

Source: Cavali as of February 12, 2017

Revenue CAGR 2013-2017: 5.1%

2Alicorp is a leading consumer branded products

company in Peru and South America…

1 2

Consumer Goods

Food, home & personal care products

Peru Argentina EcuadorBrazil

Edible Oils

Sauces

Laundry Care

Cookies & Crackers

Pasta

Personal Care

58

Fish Feed

Aquaculture

Shrimp and fish feed

Shrimp Feed

Ecuador PeruChile

2

B2B

Bakeries, industrial products and food

service

Peru

Industrial Sauces

Ind. Baking Flour

Ind. Margarines

Shortenings

45

Business

Platforms

Key

Categories

# of Brands

Direct

Presence

8

Consumer Goods Peru

54%

.Consumer Goods

International 0.5%

Aquaculture28%

B2B18%

Consumer goods Peru

37%

Consumer goods

International16%

Aquaculture25%

B2B Branded Products

22%

Commodity purchasing

Go-to-market strategy

Brand management

Strategic M&A

Product development

105 brands in 13 countries & exports to 9 countries

33 new products launched & revamped in 2016

42 new products launched & revamped in 2017

Economies of scale and centralized platform

…By jointly leveraging through its competitive advantages and strategic initiatives

250K POS for traditional channel2

366 POS for modern channel3

6 acquisitions since 2012

Health & wellness products

Plant consolidation &

automation

Continuous costs saving

program

Co

mp

eti

tive

Ad

va

nta

ge

s

Str

ate

gic

In

itia

tive

s

Diversified revenue base – 2017

Revenues: S/ 7,101 million EBITDA: S/ 901 million

Diversified EBITDA base – 20171

Alicorp carries a diversified portfolio and maintains leadership in all of its business units…

1 EBITDA calculation per business ex unassigned corporate expenses.2Information provided by the Consumer Goods Peru division.

3Includes Supermarkets and Cash & Carrier

2…with a well-defined strategy that provides sustainable

growth rates…

9

2012

25 28

43 43

33

42

2010 2011 2012 2013 2014 2015 2016 2017

Selected products launched in FY 2017

Successful new product launch strategy, with 246 launches since 2010

Growth focused on core and next-to-core platforms

(# of products)

Growth through Mergers & Acquisitions

International AcquisitionsDomestic Acquisitions

20122004 2005 2006 2007 2008 2010 2011 2013 2014

Domestic

Consumer Goods Peru Consumer Goods

InternationalB2B

Aquaculture

2 …both organic and inorganic

ACTUALIZADO

10

Alicorp is the leading consumer goods company, competing with global and local players, such as

Procter & Gamble, Unilever, Mondelez, Nestle, Carozzi, among others

Ranked #1 in over 10 product categories1

1 Alicorp has +50% of the market share.2 Based on consolidated Revenue FY 2017.3 FY 2017. Calculation per business ex unassigned corporate expenses4 Total CGP/ Consolidated Revenue5 Total CGP/ Consolidated EBITDA

37.4% 4 55.4% 5

2In Consumer Goods Peru (CGP), we are market leaders in

almost every category in which we participate

ACTUALIZADO

Source: Kantar World Panel

Category Brands Position % of sales2 % of EBITDA3 Competitors

Laundry Detergents #1 8.0% 19.3%

Edible Oils #1 7.8% 9.5%

Pasta #1 5.4% 6.0%

Cookies & Crackers #1 3.6% 0.4%

Mayonnaise & other

Sauces#1 2.9% 7.3%

Laundry Soap #1 1.9% 4.2%

Cereals #1 1.3% 1.7%

Margarines #1 1.1% 2.3%

Household Flour #1 1.0% 2.3%

Dessert #1 0.9% 2.2%

111Includes Detergents and Laundry Soap

Pre

miu

mM

ain

str

ea

mV

alu

e

Market and customer segmentation allows a more efficient pricing process and pass-through of

commodities price increases

Product classification

Edible Oils Pasta Laundry Care1 Cookies & CrackersFlour

2…thanks to a strategy that focuses on effective market

and customer segmentation…

12

Consumer Goods Peru: Go-to-Market model1

1 Data as of February 201721Data: All from Dec' 17, except for Margarines (Nov´17), Juice powders (Nov´17), Mayonnaise (Oct´17), Laundry Soap (Aug´17) and Jelly (Oct´17).3 As measured by market penetration in each category against Alicorp’s closest competitor

TR

AD

ITIO

NA

L C

HA

NN

EL

A

L

I

C

O

R

P

Average

Sales ticket

S/ 7,250

Average

Sales ticket

S/ 10,000

Non-Exclusive

distributors

Wholesalers

Direct distribution

Indirect distribution

S

H

O

P

P

E

R

25%

10%

17%

MO

DE

RN

Supermarkets

366 Stores

Average

Sales ticket

S/ 150

Exclusive

distributors

48%

Superior availability of Alicorp’s products in the

marketplace2.3

2…and to our unique model of distribution that reaches all

channels

Alicorp Competitor

63.0

55.7

58.4

39.0

0.5

88.0

88.7

63.7

85.9

82.5

Pasta

Edible Oils

JuicePowders

Margarines

Mayonnaise

39.0

90.4

83.1

0.6

52.0

94.3

93.7

99.5

Jelly

Cookies &Crackers

LaundryDetergents

LaundrySoap

13

1 Alicorp has +50% of the market share.2 Based on consolidated Revenue FY 2017.3 FY 2017. Calculation per business ex unassigned corporate expenses4 Total B2B/ Consolidated Revenue5 Total B2B/ Consolidated EBITDA

Category Brands Position % of sales2 % of EBITDA3 Competitors

Industrial Baking Flour #1 8.0% 3.0%

Industrial Oil #1 6.4% 7.4%

Shortenings #1 2.2% 3.3%

Ranked #1 in main categories1

22.0 %4 18.3% 5Source: Kantar World Panel

2 Likewise, in B2B we are also market leaders…

ACTUALIZADO

14

Category Brands Position1 % of sales2 Competitors

Brazil

Pasta #1 4.4%

Argentina

Hair Care #2 2.4%

Laundry Detergents #3 1.7%

Skin Care #2 1.3%

Ecuador

Pasta #3 0.5%

Cereals #3 0.1%

Bolivia

Laundry Detergents #3 0.2%

Laundry Soap #3 0.2%

2Meanwhile, 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

1 Alicorp has ~35% of market share in pastas (Area II in Brazil) and [15% -25%] of Market Share in Personal Care (Argentina). 2 Based on consolidated Revenue FY 2017.3 Total CGI/ Consolidated Revenue

ACTUALIZADO

One of the largest consumer goods companies in Latin America

16.1%3Source: Nielsen NRI

15

2Finally, in Aquaculture, we differentiate among our

competitors thanks to constant innovation and quality

Category Brands Position % of sales2 Competitors

Shrimp

Ecuador #1 13.3%

Peru #2 0.9%

Nicaragua #2 0.5%

Honduras #3 0.4%

Panamá #3 0.2%

Costa Rica #1 0.1%

Fish

Chile #4 8.0%

Peru #1 0.7%

One of the largest aquaculture companies in Latin America1

1 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 +10% of market share in Chile 2 Based on consolidate FY 2017.3 Total Aquaculture/ Consolidated Revenue

Source: Internal Estimates

We are leaders in the Shrimp Feed market in Ecuador and Peru and the 4th largest competitor in

the Fish Feed Market in Chile (Salmon)

22.0%3

ACTUALIZADO

16

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





171 Area II of Brazil: Minas Gerais, Espirito Santo and Rio de Janeiro suburbs2 Related to the reduction of Working Capital needs

3 Excludes one shots expenses related to the implementation of those initiatives

ST

RA

TE

GIC

PIL

LA

RS

“Smart 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

People

PERU ANDEAN & BRAZIL1 AQUACULTURE

Shrimp

Feed

Core

Categories

Innovation

“One Alicorp” Mindset• Transfer knowledge across the organization

• Leverage corporate capabilities

• Share best practices among business and geographies

Special

Diets1

Efficiencies

“Implementing an

efficiency-driven

culture across the

organization”

Significant impact in 2017 on

Revenue, COGS and Net

Income

6422

12711

20

-10

Gross to Net Manufacturing Procurement Distribution CCC Others FY 2017Savings

Growth

3Alicorp’s Strategy focuses on three Pillars: Growth,

Efficiencies and People

233(PEN Million)

REVENUE GROSS PROFIT NET INCOME

3

2

ACTUALIZADO

18

3Our 2017 Business Accomplishments aligned with our

Growth Pillar (1/2)

Efficiency

People

CG

P

Innovation / R&D

B2

B

Innovation / R&D

New Categories

Canned

Tuna

Region Expansion

Go To Market

FY Results 2017

FY Results 2017

Stain

Remover

Baby &

Kids

Creation of the new

Channel Value

Revenue

Growth

Gross

Margin

Revenue

Growth

Gross

Margin+1.9 p.p

+6.2%

Mega Brands

Revenue

Growth

Gross

Margin

EBITDA

Margin-0.5 p.p

+0.6 p.p

+3.2%

“Alpesa”

Salad

Dressing

“Alacena”

Mustard

“Blanca

Nieve”

Industrial

Flour

Food Service Categories

Growth outside Lima

Industrial

Sauces

Pasta

Bulk

Oil

EBITDA

Margin+1.4 p.p

Growth

1 Gross Margin: (Revenue – COGS) / Revenue

1

ACTUALIZADO

Launches &

Revamped

25 Products

+14.4%

+1.8 p.p

~14.0%

~8.0%

~3.0%

19

Efficiency

People

Potential Inorganic Expansion into Bolivia

An

de

an

Bra

zil

Aq

ua

cu

ltu

re

Portfolio Optimization

Value-added Products New Markets

Bolivia

FY Results 2017

-0.9%Revenue

Growth

+6.5 p.pGross

Margin

+2.8 p.pEBITDA

Margin

XX% Market share

+21.6%Revenue

Growth

+3.5 p.pGross

Margin

+2.1 p.pEBITDA

Margin

FY Results 2017

Nicovita

Finalis

Special

Diets

3Our 2017 Business Accomplishments aligned with our

Growth Pillar (2/2)

Lard >50%Edible Oil >40% Margarine >60%Laundry

Detergent>25%

Revamped Value Segment

“Santa Amalia”

Semolina based Pasta

+50 TMk of

production

capacity

Market

Share

Numeric

Distribution

Growth

ACTUALIZADO

+1.3 p.p

-1.8 p.p

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiW-9jjh9HYAhVvdt8KHbqOAH4QjRwIBw&url=http://www.psdgraphics.com/psd-icons/psd-gold-world-award-icon-golden-medal/&psig=AOvVaw1AVoZFyts_V2z2I1AZnGF6&ust=1515799606162042




20

3Our 2017 Accomplishments aligned with our Efficiency

Plan

2019 Goals

Organic Top line

growth of 6.5%

(CAGR 17’-19’)

EBITDA Margin

13.5% to 14.5%

NI Margin

5.5% to 6.5%

ROIC

13.0% to 13.5%

Efficiency

People

Growth

Key InitiativesImplementation

Phase

NE

T I

NC

OM

E (

NI)

RE

VE

NU

EC

OG

SS

G&

A

▪ Pricing Strategy: Focus on maximizing marginal

Revenue

▪ Gross-to-Net: Reduction of sales discounts without

sacrificing volume

▪ Procurement: Generate savings via efficient sourcing

program

▪ Lean Manufacturing: Optimize and standardize our

industrial processes

▪ Logistics: Effective internal distribution of raw

materials and finished product

▪ Org. Structure: Right sizing for growth

▪ Go-to-Market Strategy: Reduction of commissions

and sales expenses

▪ 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

▪ Liability Management: Optimize capital structure

while reducing financial expenses

▪ Hedging Strategy: Minimize FX losses

Target

Date

Q4 2018

Q4 2018

Q4 2018

Q4 2018/19

Q3 2018

Q4 2019

Q2 2019

Q2 2019

Q4 2019

Q2 2018

Q2 2018

Q2 2018

ACTUALIZADO

21

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





22

ST

RA

TE

GIC

PIL

LA

RS

People

“One Alicorp” Mindset• Transfer knowledge across the organization

• Leverage corporate capabilities

• Share best practices among business and geographies

Efficiencies Procurement Manufacturing SG&A

Growth

4 What to expect for 2018?

60%

35%

5%

55%

30%

15%

PERU AQUACULTUREINTERNATIONAL

CGP

✓ Product Innovation

✓ Brand Extension

✓ New Categories

B2B

✓ Client Base

✓ Increase Penetration

✓ New Categories

Argentina

✓ Capture M.Share (%)

✓ Valuable brands

Brazil

✓ Portfolio Redesign

✓ Revenue Management

Shrimp

✓ R&D / Value added

✓ Hondura’s Full

implementation

✓ Special Diets

✓ Innovation Center

Salmon

“Profitability

Improvement”

• Procurement

• Lean Manufacturing

• Logistics

• Fit-For-Growth

• Go-To-Market (Brazil /

Peru)

• Marketing ROI

[PEN 80M – 100M] [PEN 75M – 95M]

20192018

23

We expect a consolidated top line growth during 2018 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 2017

7.1%

12.7%

S/ 83.9 MM1

1.00x

6.4%

0.53

13.6%2

NET DEBT/EBITDA (x)

NET MARGIN (%)

REVENUE

GROWTH (PEN) (%)

EBITDA MARGIN (%)

CAPEX

EPS

ROIC (%)

CONSOLIDATED

GUIDANCE 2018

5.0% - 7.0%

13.0% - 13.5%

S/ 200 - 250 MM

0.60x - 0.80x

6.5% - 7.0%

0.55 – 0.60

13.5% - 14.0%

FY 2016

0.7%

12.1%

S/ 123.8 MM

1.66x

4.6%

0.35

10.8%

KEY CONCERNS

• The execution of

Peruvian Government

stimulus package and

Multiannual

Macroeconomic

Framework

• International growth

drivers, especially for

Brazil, and Argentine

restructuring

• FX and commodities

behaviors

• Raw material prices

volatility

4 Consolidated Guidance for FY 2018 under IAS 18 and 39

1 Excludes time deposits with maturity between 90 days and 360 days and mutual funds2 Excludes excess cash above industry prudent practices standards for operational cash

24

GDP growth in Peru should gain steam for 2018. 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 2018. Finally, shrimp and fish feed’s markets are expected to stabilize in terms of growth

1 Exchange Rate as of December 2017 (against USD)2 FX Rates for 2018 (end of period) – Company estimates (against USD)3

USD/ARS FX expected Exchange Rate. ARS/PEN implied depreciation for 2018 (15.0%)4

USD/BRL FX expected Exchange Rate. BRL/PEN implied depreciation for 2018 (3.6%)5

USD/PEN FX expected Exchange Rate6 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

CGP

3.5% - 5.5%

PE

RU

3.0% - 5.0%

B2B

-2.0% - -4.0%7

6.0% - 8.0%ARGENTINA

CG

I8

BRAZIL

AQUACULTURE

2.6%

2.9%

0.8%

Revenue Growth6GDP GROWTH FX - 20171

3.265

16.6

4.5%9 3.265 12.0% - 14.0%

3.19

FX - 20182

3.245

19.43

3.245

3.294

TOTAL 3.0% - 5.0%

4 Guidance FY 2018 by Business

25

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





26

193 219 225

722 802

901

11.1% 12.1% 12.1% 11.0% 12.1% 12.7%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

56 80 126

157

302

453

3.2%4.4%

6.8% 2.4% 4.6% 6.4%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY 2017

1,734 1,811 1,860

6,580 6,629 7,101

28.4% 30.1% 32.5% 28.4% 30.3% 32.1%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

▪ Total Revenue increased 2.7% YoY

▪ Gross Profit increased 10.8% 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 12.1% (remaining stable)

▪ Net income increased 56.9% YoY (+ S/ 45.7 million) while

Net Margin reached 6.8% (+ 2.3 p.p.)

REVENUE & GROSS MARGIN HIGHLIGHTS

NET INCOME & NET MARGIN EBITDA & EBITDA MARGIN

During Q4’17 we continued growing and improving in terms of profitability, although smoother than the past quarters of

2017. We expect this trend to steep back during 2018 based on: i) our strategic initiatives and efficiencies program and

ii) the macroeconomic recovery expectation in both Peru and LatAm

5 Q4 2017 Key Highlights

ACTUALIZADO

(PEN Million)

(PEN Million)

(PEN Million)

27

Moderate revenue growth in Q4 17’ explained by our Aquaculture business (+14.6%) and CGP (+2.2%), and higher profit

margins backed on lower commodity prices and our efficiencies initiatives

REVENUE

GROWTH

PR

OF

ITA

LIB

ITY

• Consolidated Revenue grew 2.7% YoY backed on: i) a 14.6% 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

• 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

GROSS

PROFIT

EBITDA

• EBITDA margin reached 12.1% (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

I

II

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

5 Q4 2017 Operational Highlights

ACTUALIZADO

28

Net income increased 56.9% YoY, boosted by better operational results coupled with lower Net Financial Expenses

WORKING

CAPITAL

• Cash Conversion Cycle, measured in LTM basis, improved to 7.4 days (as of December 2017)

from 37.4 days (as of December 2016), mainly due to better commercial conditions with suppliers

II

NET INCOME

• Net income reached S/ 125.9 million (+ 56.9% YoY), while Net Margin was 6.8% (+ 2.3 p.p. YoY)

• Lower financial expenses of S/ 28.7 million (- 84.1% YoY) and lower FX losses of S/ 5.8 million

(- 129.1% YoY)

• EPS increased to S/ 0.149 as of Q4 17’ from S/ 0.095 as of Q4 16’

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+1” /

“EQL+1” ratings, respectively, for short-term instruments. Recently, the international agency, S&P,

affirmed “BBB-” rating for bonds

IV

• Net Debt-to-EBITDA ratio decreased to 1.00x as of December 2017 from 1.66x as of December

2016

• Net Debt1 decreased to S/ 898.8 million as of December 2017, from S/ 1,332.9 million as of

December 2016 (a S/ 434.1 million decrease)

• All-in cost of debt was 5.2% during Q4 17'

FINANCIAL

LEVERAGE

I

5 Q4 2017 Financial Highlights

III

1 Net Debt is Financial Debt minus cash and cash equivalents as of Q4 17’.

ACTUALIZADO

29

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





30

▪ Revenue and Volume increased by 2.2% YoY and 1.0% YoY

respectively, on the back of the growth in our core categories and

innovations

▪ Gross Margin increased by 1.3 p.p. YoY mainly explained by revenue

management and our efficiencies initiatives

▪ EBITDA reached S/ 120.6 million (+2.4% YoY) and EBITDA Margin

remain stable in 17.4% mainly explained by the increase in Gross Margin,

partially offset by higher SG&A

108 118 121

393

434

499

16.5% 17.4% 17.4%16.2% 17.4% 18.8%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

HIGHLIGHTS

REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN

Q4 2017 INSIGHTS

654 678 693

2,424 2,500 2,655

35.6% 38.1% 39.4%35.6% 38.1% 40.0%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

INNOVATION & POSITIONING

Category Rank1

Edible Oils #1

#1

Pasta #1

#1

Cereals #1

Jelly #1

Laundry

Detergents

MayonnaiseCookies &

Crackers

Panettone

6 Consumer Goods Peru

(PEN Million) (PEN Million)

Market share (Δ% YoY) > - 0.5 p.p. - 0.6 p.p. <Market share (Δ% YoY) < - 0.9 p.p. Market share (Δ% YoY) < -1.0 p.p.

1

31

▪ Revenue and Volume decreased by 1.4% 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 (+1.7% YoY) and EBITDA Margin

reached 11.8% (+0.4 p.p. YoY)

HIGHLIGHTS

EBITDA & EBITDA MARGIN

PRODUCT INNOVATIONQ4 2017 INSIGHTS

376 403 397

1,459 1,512 1,561

20.6% 25.7% 27.9% 21.9% 25.3% 26.0%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

REVENUE & GROSS MARGIN

12

46 47

106

168 165

3.2%

11.4% 11.8% 7.3%11.1% 10.6%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

Industrial Wheat Subproduct

6 B2B


32

▪ Revenue decreased by 7.5% YoY and volume increased by 1.9% YoY,

respectively. Revenue in Argentina and Brazil amounted S/ 119.1 million (+

5.6% YoY) and S/ 114.7 million (- 12.8% YoY), respectively

▪ Gross Margin increased by 1.1 p.p. YoY, mainly explained by Argentina´s

Gross Margin increase (+2.0 p.p. YoY)

HIGHLIGHTS

EBITDA & EBITDA MARGIN

PRODUCT INNOVATIONQ4 2017 INSIGHTS

317 302 280

1,280 1,185 1,146

32.3% 33.6% 34.6%32.3% 32.3% 34.8%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

25

13

75

40

4 7.8% 4.3% 0.0%5.8%

0.4%

3.4%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

REVENUE & GROSS MARGIN

Laundry

Soap

Huancaina

Sauce

6 Consumer Goods International


33

459 513 644

1,785

2,150

2,389

0.78%-12.2%

-12.3%

-0.1% -1.4%-11.6%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

(ARS Million) (ARS Million)

FX USD/ARS1

FX USD/PEN1

15.46

3.40

15.67

3.29

FX PEN/ARS1 4.55 4.76

15.73

3.26

4.82

17.28

3.25

5.32

17.56

3.25

5.41

FX USD/ARS1

FX USD/PEN1

FX PEN/ARS1

17.56

3.25

5.41

15.46

3.40

4.55

9.26

3.19

2.91

14.76

3.38

4.37

10.17

3.32

3.06

16.56

3.26

5.08

▪ Revenue and Volume in Argentine Pesos increased in 25.3% YoY and 15.6% YoY, respectively. Explained by

a slight recovery in consumption coupled with a more aggressive marketing strategy

▪ EBITDA decreased in ARS 16.6 millions, while EBITDA margin decreased 0.1 p.p. YoY to – 12.3% YoY

1 Average FX rates for the period.

HIGHLIGHTS

REVENUE & EBITDA MARGIN

513

604 621

520

644

-12.2%

-10.5% -8.8%

-15.3%-12.3%

Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'

6 Consumer Goods International - Argentina

34

131 127 115

482 502 475

17.1% 12.9% 5.5%

11.8% 3.5% 6.7%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

(BRL Million) (BRL Million)

FX USD/BRL1

FX USD/PEN1

3.29

3.40

3.14

3.29

FX USD/BRL1

FX USD/PEN1

3.25

3.25

3.29

3.40

3.84

3.32

FX PEN/BRL1 0.97 0.96 FX PEN/BRL1 1.000.97

3.30

3.19

1.041.16

3.22

3.26

1.02

3.16

3.25

0.97

3.25

3.25

1.00

3.19

3.26

0.98

3.49

3.38

1.03

▪ Volume increased 1.3% YoY and Revenue in Brazilian Reals decreased 10.0% 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 16.5 million in Q4 16’, while EBITDA Margin decreased

7.5 p.p YoY to 5.5%

1 Average FX rates for the period

127 119 122 120 115

12.9% 7.0% 8.8% 5.3% 5.5%

Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'

HIGHLIGHTS

REVENUE & EBITDA MARGIN

6 Consumer Goods International - Brazil

35

▪ Revenue and Volume increased by 14.6% and 28.3% YoY, respectively. Revenue amounted S/ 490.2 million

and the Volume reached 139.6 thousand tons

▪ Gross Margin increased by 6.1 p.p. YoY to 25.1%, due to lower raw material prices

▪ EBITDA reached S/ 65.4 million (+ 31.5% YoY) and EBITDA Margin reached 13.3% (+ 1.7 p.p.)

HIGHLIGHTS

Q4 2017 INSIGHTS

387 428 490

1,418 1,430

1,740

20.3%19.0%

25.1% 19.2% 20.2% 23.7%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

51 50 65

191 181

257

13.2% 11.6% 13.3% 13.5% 12.7% 14.8%

Q4 15' Q4 16' Q4 17' FY2015

FY2016

FY2017

EBITDA & EBITDA MARGINREVENUE & GROSS MARGIN

6 Aquaculture


36

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





37

Buy 78%

Hold 22%

Research Recommendation Recent Awards

Current Stock Price Consensus vs. Previous ALICORC1, EPU and BVL Benchmark – Mar 12th LTM

1Potential stock price appreciation against price market as of March 12 (PEN 11.25).

2 As of December 31, 2017.

3 As of March 12, 2018.

4 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.

7 Sell-Side Research Estimates on ALICORC1

“Top 10 – Most

Admired Companies

in Peru”

“Latin America

Executive Team

Rankings”4

Stock price Mar. 12 2018: 11.25

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

-7.6%

28.9%

14.3%

11.1%

-17.8%

7.6%

10.2%

14.7%

Current Previous Upside 1

Previous median: 10.672 Current median: 12.43

Potential upside: 10.2%

4.9%

Sept. 17’

Feb. 18’

Jan. 18’

Feb. 18’

Jan. 18’

Feb. 18’

Feb. 18’

Feb. 18’

Dec. 17’

40

60

80

100

120

140

160

Ma

r-1

7

Apr-

17

Ma

y-1

7

Jun-1

7

Jul-1

7

Aug-1

7

Sep-1

7

Oct-

17

No

v-1

7

De

c-1

7

Jan-1

8

Feb

-18

Ma

r-1

8

ALICORC1 EPU IGBVL

Stock performance LTM: Stock performance YTD:

(Jan. – Mar. 12, 2018)ALICORC1:

EPU

IGBVL

+53.1%

+30.5%

+35.1%

+6.1%

+3.1%

+4.5%

ALICORC1:

EPU

IGBVL

Buy 70%

Hold 30%

CurrentPreviousDec. 29 2017 Mar. 12 2018

38

Topics


About Alicorp [ 2 ]


Guidance 2018 [ 4 ]





Corporate Strategy

40

Value

Creation:

TSR

1

2

3 4

5

Growth

Efficiencies People

Alicorp´s Market Value

Alicorp´s

Fundamental

Value

Alicorp´s post

Optimal

Capital

Structure

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 (T41) in Peru

✓ Canned tuna, Laundry Care

✓ Food Service in B2B

✓ Personal Care in Brazil

Alicorp´s

Fundamental

Value post

internal

initiatives

Alicorp´s

Fundamental

Value post

inorganic

initiatives

Inorganic Growth

✓ Andean Region

✓ Area II and III in Brazil

✓ Peru: Core Categories2

Capital Optimization

✓ Focus on ROIC and

Profitability

✓ Divestiture (Real

state, non operating

assets and non

strategic assets)

1 Tier 4. 2 Edible Oils, Detergents, Pastas and Sauces.

8Gap between the Market and the Fundamental Value of the

Firm

ACTUALIZADO

41

8 Roadmap to Value Creation

NO

PA

T / IN

VE

ST

ED

CA

PIT

AL

NO

PA

TIn

v.

Cap

.

EBIT

Taxes

WK

Net

Fixed

Assets

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

Revenue Management Initiatives

✓Pricing strategy revision

✓Branding strategy optimization

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

✓CCC Q4 16’: 37.4 days CCC Q4 17’ : 7.4 days

• Weighted Effective Tax Rate

2019 Goals

Organic Top line

growth of 6.5%

(CAGR 17’-19’)

EBITDA Margin

13.5% to 14.5%

NI Margin

5.5% to 6.5%

ROIC

13.0% to 13.5%

RO

IC

Efficiency

People

Growth

✓ Achieved

∆ In process

To

tal

Sh

are

ho

lde

r R

etu

rn

Deb

t

red

ucti

on

Re

turn

ing

Va

lue

✓Net Debt-to-EBITDA ratio reduced from 2.71x as of December 2015 to

1.00x as of December 2017

✓S/ 434.1 million in Net Debt reduction since 2016

✓Strong commitment to return value to shareholders

✓Dividend payout ratio for FY2016 reached 39.6% of Net Income. Amount

distributed reached S/ 120 million or S/ 0.14 per share (+ S/ 0.09 more than

in 2015)

✓NFA turnover increased from 3.1x in 2013 to 3.4x in 2016

∆ Sale of non-core real-estate-related assets (S/ 349.6 million)

FY 2017 Performance by

Business

43

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

Hig

hlig

hts

by B

us

ine

ss

CG

I P

eru

CGP

Revenue Growth

+6.2%

Branding Strategy &

Continuous Innovation

Market Share

17 of 21

Categories

Profitability

Gross Margin

EBITDA Margin

+1.9 p.p

+1.4 p.p

B2B

Revenue Growth

+3.2%Organic expansion:

- Food Service

- Industrial Clients

Profitability

Gross

Margin+0.6 p.p

EBITDA

Margin-0.5 p.p

Brazil

Revenue Growth

-0.9% Soles

Volume Contraction:

- Tiering down

- Revenue mix

Profitability

Gross

Margin+6.5 p.p

EBITDA

Margin+2.8 p.p

Argentina

Revenue Growth

-3.9% Soles

~20% FX Depreciation

Profitability

- Turnaround

Phase

- One Shots

8 Our business plan execution FY 2017 (1/2)

44

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

Hig

hlig

hts

by B

us

ine

ss

Aq

uac

ult

ure

Salmon feed

Shrimp feed

Profitability

Gross

Margin+1.8 p.p

EBITDA

Margin+1.7 p.p

Profitability

Gross

Margin+4.0 p.p

EBITDA

Margin+2.0 p.p

Revenue Growth

+15.5%- No Algae bloom

- Comercial Conditions

Soles

Revenue Growth

+25.6%- Capture of Market Share

- Revenue Mix

Soles

8 Our business plan execution FY 2017 (2/2)

Performance by Business

46

KEY

MILESTONES

AWARDS &

RECOGNITION

• Merco: 1st 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: 1st place - “The Best Company to Work For” in the Consumer Goods Sector the top 10 of “Most

Attractive Companies to Work For”

REPUTATION

12 products were launched as part of our innovation strategy, being the most remarkable:

RESEARCH & DEVELOPMENT

CONTINUOUS EFFICIENCIES IN WORKING CAPITAL

LOWER INDEBTNESS

We reduced our Cash Conversion Cycle (“CCC”) to 7.4 days, from 37.4 days in Q4 16’

We reduced our Days Sales Outstanding to 48.8 days (- 1.5 days YoY) and Days Inventory Outstanding to 63.1 days

(- 9.0 days YoY)

Alicorp continued reducing its Leverage, Net Debt-to-EBITDA ratio decreased from 1.66x as of December 2016 to

1.00x as of December 2017. Likewise, Net Debt was reduced by S/ 434.1 million in the same period

Hot chocolate bar under

the mega brand “Blanca

Flor”

Orange flavored

panettone under the mega

brand “Blanca Flor”

“Integrackers” – new

cookie flavors

New mini cookies

presentation

8 Q4 2017 Milestones

47

678 693

303 280

981 973

Q4 16' Q4 17'

Peru International

4.3%

17.4%

0.0%

17.4%

11.4% 11.8%

CONSUMER GOODS B2B1 AQUACULTURE1

403 397

Q4 16' Q4 17'

13.3% 12.4%

EB

ITD

A M

arg

in (

%)

Reve

nu

e (

PE

N M

illi

on

)

-4.3 p.p.

+0.0 p.p.

-0.9 p.p. 0.4 p.p.

Q4 16’ Q4 17’ Var. Q4 16’ Q4 17’ Var.

-7.5%

+2.2%

-0.8%

-1.4% +14.6%

Revenue Mix Peru Ecuador Chile Argentina Brazil Others

(%) 60.1% 16.9% 7.8% 6.4% 6.2% 2.6%

428 490

Q4 16' Q4 17'

11.6% 13.3% +1.7p.p.

Q4 16’ Q4 17’ Var.

1 Financial figures of B2B and Aquaculture are consolidated.

8 Q4 2017 Performance by Business Unit & Regions

48

PE

RU

1 SG&A doesn’t include other expenses and raw material hedging expenses.

Consumer Goods Peru 2015 2016 2017Variation

Q4 17

PENM Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY YoY QoQ

Revenue 528 592 650 654 2,424 548 616 658 678 2,500 585 667 710 693 2,655 2.2% -2.3%

Gross Profit 180 208 241 233 863 208 235 250 259 952 232 267 289 273 1,062 5.7% -5.6%

SG&A 121 136 145 148 551 134 149 151 155 589 144 153 168 167 632 7.8% -0.1%

EBITDA 78 91 117 108 393 93 106 117 118 434 107 132 140 121 499 2.4% -13.9%

Gross Margin 34.2% 35.2% 37.1% 35.6% 35.6% 38.0% 38.2% 38.0% 38.1% 38.1% 39.6% 40.1% 40.8% 39.4% 40.0% 1.3% -1.4%

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% 24.1% 23.8% 1.2% 0.5%

EBITDA Margin 14.7% 15.3% 18.0% 16.5% 16.2% 16.9% 17.3% 17.8% 17.4% 17.4% 18.3% 19.8% 19.7% 17.4% 18.8% 0.0% -2.3%

B2B 2015 2016 2017Variation

Q4 17


Revenue 331 357 394 376 1,459 338 374 398 403 1,512 353 390 420 397 1,561 -1.4% -5.6%

Gross Profit 76 77 89 77 320 87 91 102 103 383 86 94 115 111 405 7.2% -3.9%

SG&A 55 57 63 72 246 56 60 61 62 239 61 66 69 67 262 7.4% -3.0%

EBITDA 29 30 35 12 106 35 39 49 46 168 33 33 52 47 165 1.7% -10.6%

Gross Margin 23.1% 21.6% 22.5% 20.6% 21.9% 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) 16.6% 15.9% 16.0% 19.0% 16.9% 16.6% 16.0% 15.3% 15.4% 15.8% 17.2% 16.9% 16.4% 16.8% 16.8% 1.4% 0.5%

EBITDA Margin 8.8% 8.3% 9.0% 3.2% 7.3% 10.3% 10.3% 12.2% 11.4% 11.1% 9.3% 8.5% 12.4% 11.8% 10.6% 0.4% -0.7%

Consolidated 2015 2016 2017Variation

Q4 17


Revenue 1,509 1,639 1,699 1,734 6,580 1,438 1,629 1,751 1,811 6,629 1,590 1,827 1,824 1,860 7,101 2.7% 2.0%

Gross Profit 416 459 500 492 1,867 438 492 533 545 2,008 492 577 605 604 2,278 10.8% -0.3%

SG&A 290 317 329 348 1,284 308 336 349 353 1,347 347 366 381 390 1,484 10.5% 2.4%

EBITDA 149 157 223 193 722 163 194 226 219 802 186 242 248 225 901 3.0% -9.1%

Gross Margin 27.5% 28.0% 29.5% 28.4% 28.4% 30.4% 30.2% 30.4% 30.1% 30.3% 30.9% 31.6% 33.2% 32.5% 32.1% 2.4% -0.7%

SG&A(% of Revenue) 19.2% 19.3% 19.3% 20.1% 19.5% 21.4% 20.6% 20.0% 19.5% 20.3% 21.8% 20.0% 20.9% 21.0% 20.9% 1.5% 0.1%

EBITDA Margin 9.9% 9.6% 13.1% 11.1% 11.0% 11.4% 11.9% 12.9% 12.1% 12.1% 11.7% 13.2% 13.6% 12.1% 12.7% 0.0% -1.5%

CO

NS

OL

IDA

TE

D8 Performance by Business Unit & Regions (1)

49

B2B


Bakery 2015 2016 2017Variation

Q4 17


Revenue 171 188 205 186 750 166 192 200 188 746 158 192 205 185 742 -1.1% -9.3%

Gross Profit 40 40 52 48 179 43 47 51 48 188 38 42 55 51 186 6.8% -8.0%

SG&A 30 32 34 36 132 30 32 35 34 131 32 35 36 34 137 0.7% -4.7%

EBITDA 14 14 23 16 68 15 18 20 15 68 9 10 22 18 58 8.8% -25.2%

Gross Margin 23.2% 21.5% 25.2% 25.6% 23.9% 26.0% 24.3% 25.5% 25.3% 25.2% 24.0% 22.1% 26.9% 28.0% 25.1% 2.0% 0.4%

SG&A(% of Revenue) 17.5% 16.8% 16.6% 19.6% 17.6% 18.2% 16.6% 17.4% 18.2% 17.6% 20.3% 18.1% 17.6% 18.5% 18.5% 0.3% 0.9%

EBITDA Margin 8.3% 7.7% 11.4% 8.5% 9.0% 8.9% 9.4% 10.0% 7.9% 9.1% 6.0% 5.3% 10.6% 8.7% 7.7% 0.8% -1.8%

Food Service 2015 2016 2017Variation

Q4 17


Revenue 116 122 131 134 503 126 128 141 148 543 138 140 151 147 576 -0.8% -3.1%

Gross Profit 31 35 40 40 146 38 37 40 41 156 37 41 48 48 173 15.4% -0.3%

SG&A 19 20 22 26 86 20 21 22 23 86 23 24 25 25 98 6.7% -3.0%

EBITDA 14 19 21 17 70 20 19 21 21 81 17 19 25 25 86 19.4% 0.3%

Gross Margin 26.6% 28.8% 30.4% 29.8% 29.0% 30.0% 29.1% 28.3% 27.9% 28.8% 27.1% 29.0% 31.5% 32.4% 30.1% 4.6% 0.9%

SG&A(% of Revenue) 16.7% 16.0% 16.5% 19.2% 17.2% 16.1% 16.3% 15.6% 15.6% 15.9% 16.9% 17.3% 16.8% 16.8% 16.9% 1.2% 0.0%

EBITDA Margin 11.9% 15.3% 16.0% 12.4% 13.9% 16.0% 15.0% 14.6% 14.0% 14.9% 12.4% 13.5% 16.3% 16.9% 14.9% 2.9% 0.6%

8 Performance by Business Unit & Regions (2)

Industries 2015 2016 2017Variation

Q4 17


Revenue 40 44 56 54 195 43 52 57 66 218 57 58 64 64 243 -3.6% 0.4%

Gross Profit 8 9 12 13 42 9 10 12 15 47 10 11 12 12 46 -14.2% 1.1%

SG&A 4 5 6 6 21 4 4 4 4 17 5 7 7 8 27 72.2% 5.8%

EBITDA 4 5 8 7 25 6 7 9 11 33 6 4 6 6 22 -48.4% -2.6%

Gross Margin 20.2% 21.0% 22.2% 23.4% 21.8% 21.8% 20.3% 21.5% 21.9% 21.4% 18.4% 18.2% 19.3% 19.5% 18.9% -2.4% 0.1%

SG&A(% of Revenue) 11.1% 10.7% 9.9% 12.0% 10.9% 9.3% 8.5% 6.8% 6.7% 7.7% 9.5% 12.2% 11.4% 12.0% 11.3% 5.3% 0.6%

EBITDA Margin 10.8% 11.9% 14.2% 12.9% 12.6% 14.4% 13.3% 16.2% 16.3% 15.2% 11.1% 7.5% 9.0% 8.7% 9.0% -7.6% -0.3%

50

INT

ER

NA

TIO

NA

L

Consumer Goods Int. 2015 2016 2017Variation

Q4 17


Revenue 312 333 317 317 1,280 257 313 312 302 1,185 297 304 266 280 1,146 -7.5% 5.2%

Gross Profit 98 107 105 102 413 83 97 101 101 383 99 109 94 97 398 -4.6% 3.1%

SG&A 90 96 94 94 375 83 97 105 99 384 105 106 103 104 418 5.3% 1.2%

EBITDA 14 19 17 25 75 7 9 11 13 40 0 8 -4 0 4 -100.4% -98.7%

Gross Margin 31.4% 32.2% 33.2% 32.3% 32.3% 32.2% 31.0% 32.4% 33.6% 32.3% 33.4% 35.8% 35.3% 34.6% 34.8% 1.1% -0.7%

SG&A(% of Revenue) 28.8% 28.9% 29.8% 29.7% 29.3% 32.1% 31.0% 33.8% 32.7% 32.4% 35.3% 35.0% 38.7% 37.2% 36.5% 4.5% -1.5%

EBITDA Margin 4.6% 5.7% 5.2% 7.8% 5.8% 2.6% 3.0% 3.5% 4.3% 3.4% 0.1% 2.6% -1.4% 0.0% 0.4% -4.3% 1.4%

CGI Brazil 2015 2016 2017Variation

Q4 17


Revenue 123 119 110 113 464 97 125 137 131 490 125 124 123 115 486 -12.8% -6.5%

Gross Profit 46 42 41 36 166 29 36 49 54 168 50 51 50 46 198 -14.9% -6.9%

SG&A 37 36 31 33 138 33 42 50 43 167 46 44 47 45 182 5.7% -3.8%

EBITDA 13 9 12 19 53 -1 -3 6 17 19 9 11 7 6 32 -63.2% -3.8%

Gross Margin 37.8% 35.8% 36.9% 32.2% 35.7% 29.4% 28.7% 35.7% 41.4% 34.2% 40.3% 41.4% 40.5% 40.4% 40.7% -1.0% -0.2%

SG&A(% of Revenue) 29.8% 30.7% 28.6% 29.4% 29.7% 33.6% 33.8% 36.5% 32.4% 34.1% 37.2% 35.6% 38.1% 39.2% 37.5% 6.9% 1.1%

EBITDA Margin 10.2% 7.6% 11.1% 17.1% 11.5% -1.2% -2.4% 4.3% 13.0% 3.8% 7.0% 8.8% 5.3% 5.5% 6.7% -7.5% 0.2%

CGI Argentina 2015 2016 2017Variation

Q4 17


Revenue 148 160 156 149 614 119 139 121 113 492 127 129 98 119 473 5.6% 21.8%

Gross Profit 36 45 47 45 173 38 43 33 25 138 32 37 25 29 123 15.1% 15.4%

SG&A 43 46 48 47 184 37 41 39 43 160 45 49 41 46 180 7.1% 12.3%

EBITDA -5 3 0 -2 -5 3 5 0 -14 -6 -13 -11 -15 -15 -54 6.5% -2.0%

Gross Margin 24.2% 28.2% 30.1% 30.5% 28.2% 31.7% 30.7% 27.0% 22.4% 28.1% 25.0% 28.7% 25.7% 24.4% 26.0% 2.0% -1.3%

SG&A(% of Revenue) 28.9% 28.6% 30.9% 31.6% 30.0% 30.8% 29.7% 32.6% 37.8% 32.5% 35.5% 38.0% 41.6% 38.3% 38.1% 0.5% -3.3%

EBITDA Margin -3.3% 1.6% 0.0% -1.7% -0.8% 2.8% 3.5% -0.3% -12.2% -1.2% -10.5% -8.8% -15.3% -12.3% -11.5% -0.1% 3.0%



51

AQ

UA

CU

LT

UR

E

Aquaculture 2015 2016 2017Variation

Q4 17


Revenue 338 356 337 387 1,418 295 326 382 428 1,430 356 467 427 490 1,740 14.6% 14.7%

Gross Profit 61 67 66 78 273 60 69 79 81 289 75 108 107 123 413 51.1% 15.1%

SG&A 22 25 24 34 105 34 30 31 35 130 37 40 41 59 176 67.1% 44.2%

EBITDA 44 49 47 51 191 32 45 55 50 181 45 76 71 65 257 31.5% -7.6%

Gross Margin 18.0% 19.0% 19.6% 20.3% 19.2% 20.4% 21.1% 20.7% 19.0% 20.2% 21.2% 23.0% 25.0% 25.1% 23.7% 6.1% 0.1%

SG&A(% of Revenue) 6.5% 7.1% 7.1% 8.7% 7.4% 11.6% 9.3% 8.1% 8.2% 9.1% 10.3% 8.6% 9.5% 11.9% 10.1% 3.7% 2.4%

EBITDA Margin 13.1% 13.7% 13.8% 13.2% 13.5% 10.7% 13.8% 14.4% 11.6% 12.7% 12.6% 16.4% 16.6% 13.3% 14.8% 1.7% -3.2%


FX RATES1

Year 2015 2016 2017

Quarter Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY

USD/PEN 3.06 3.15 3.21 3.32 3.19 3.45 3.32 3.34 3.40 3.38 3.29 3.26 3.25 3.25 3.26

USD/ARS 8.69 8.95 9.25 10.17 9.27 14.49 14.23 14.96 15.46 14.78 15.67 15.73 17.28 17.56 16.56

USD/BRL 2.86 3.07 3.55 3.84 3.33 3.91 3.51 3.25 3.29 3.49 3.14 3.22 3.16 3.25 3.19

ARS/PEN 2.84 2.85 2.88 3.06 2.91 4.20 4.29 4.48 4.55 4.38 4.76 4.82 5.32 5.41 5.08

BRL/PEN 0.94 0.98 1.10 1.16 1.04 1.13 1.06 0.97 0.97 1.03 0.96 1.02 0.97 1.00 0.98

1 Average FX rates for the period.


EBITDA & Net Income Drivers

531

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.

6.6% 7.4% 6.6% 6.9% 6.8%

13.4% 14.4% 13.4% 14.0% 14.2%

Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'

General & Administrative Selling

▪ EBITDA growth was a result of a higher Gross

Profit (+S/ 48.41 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)

20.0%20.0% 20.9%21.8%

SG&A EXPENSES EVOLUTION2

21.0%

218.7 225.3

48.4

36.1 5.7

EBITDA Q4 16' Gross Profit SG&A Other Net OperatingExpenses

EBITDA Q4 17'

12.1% 12.1%

1 2 3

MAIN DRIVERS OF EBITDA (YoY)

+1.8% -1.4% -0.4%

8 EBITDA Main Drivers (YoY)

54

8 Net Income & Net Margin (%) Evolution

80.2

125.9

15.9

28.7 5.9 5.8 3.7 4.9

Net IncomeQ4 16'

Operating Profit Net FinancialExpenses

FX and RatesHedging Expenses

FX ExchangeLosses

Other Income Tax Net IncomeQ4 17'

1.9%

1.1%0.8% 1.0%

0.3%

0.2%

0.2%

0.1%0.1%

-0.1%

0.2%

0.5%

1.0%

0.5%

2.3%

1.3% 1.4%

2.1%

0.7%

Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'

Net Financial Expenses FX Gains/Losses FX and Rates Hedging Expenses

(As % of Total Revenue)

4.4% 0.6% 1.3%0.3% 6.8%

FINANCIAL EXPENSES EVOLUTION

MAIN DRIVERS OF NET INCOME (YoY)

▪ Net Income increased S/ 45.7 million, reaching S/

125.9 million in Q4 17’, driven by:

i) Less financial expenses and FX losses (S/ -22.8 million

YoY)

ii) Higher profitability during the quarter due to an increase

in gross margin.

1.6% 0.3% 0.2% 0.4%

Debt & Cash Management

56

5.0%

89.5%

5.1% 0.4%

USD PEN BRL ARS

8.4% 8.5% 8.2%7.1%

5.2%

i) All-in cost of debt decreased 3.2 p.p. YoY as of December 2017,

mainly due to lower Argentina and Brazil operation´s debt, whose

interest rates were the highest

ii) As of December 2017, 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 2018,

aiming to smooth its maturity profile

FINANCIAL STRATEGY

NET DEBT-TO-EBITDA RATIO

1 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.

1.66x

1.35x

1.06x 0.98x 1.00x

Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'

(PEN Million)

Net Debt EBITDA LTM All-in Cost of Debt1

2 Before swap debt. / 3After swap debt .4 Equilibrium publishes ratings for the company since October 2017. This local

agency, does not publish outlooks for rated instruments

9211,333 1,111

872802 825

877

894

Glo

bal

Peru

4 AAA / Negative

-

BBB- / Stable

BBB / Stable

Baa3 / Stable

AAA / CP1+ / Stable

AAA / EQL1+

+

BBB- / Stable

BBB / Stable

Baa3 / Stable===

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

CREDIT RATING

12.9%

52.6%

1.4% 33.1%

International Bond Local Bonds ST Bank Debt LT Bank Debt

10.3%

29.7%

11.6%

48.4%10.3%

44.4%

31.0%

14.3%

Dec-15 Dec-16 Dec-17

2.5%

96.5%

1.0%

11.6%

77.5%

7.1%3.8%

TOTAL

DEBT2

By C

urr

en

cy

3B

y S

ou

rce

S/ 1,606 MMS/ 2,070 MM S/ 1,942 MM

DEBT BREAKDOWN

Firm Dec-16 Dec-17

899

901

8.4% 8.5% 8.2%7.1%

5.2%

8

57

116 -

70 -

160

207

104

392

98

8

367

50 100 100 100 100 50

2017 2018 2019 2020 2023 2025 2026 2027 2028 2029 2030

Over 2016, Alicorp refinanced its short-term debt with two local bonds (S/ 70 and S/160 millions)

Alicorp reduced its Net Debt-to-EBITDA ratio to 1.00x as of December 2017 from 1.66x as of December 2016

Cash and cash equivalents cover the maturity of 2018 debt at 1.07x as of December 2017 (1.13x as of December 2016).

During Q4 17’, Alicorp took advantage of lower interest rates through short-term financing

Duration: 4.25

Duration: 2.95December 2017: Total Debt: S/ 1,942 million

MATURITY PROFILE1: DURATION AS OF DECEMBER 2017 WAS 2.95 YEARS VS. 4.25 YEARS AS OF DECEMBER 2016

December 2016: Total Debt: S/ 1,606 million

1Debt after hedging operations, at amortized cost.

242

15% 24% 6% 0.5% 23% 3% 6% 6% 6% 6% 3%

70

207

273

1,043

Cash

[Q4’ 16]

Cash

[Q4’ 17]

603

A

B

C

B

A

8 ...and improve its debt maturity profile

201

160

977

132 70

160

201 242 97

7

361

50 100 100 100 100 50

2017 2018 2019 2020 2023 2025 2026 2027 2028 2029 2030

Local Bonds International Bond Long-Term Bank Debt Shot-Term Bank Debt

C603

50% 5% 0.4% 19% 3% 5% 5% 5% 5% 3%

58

8 Working Capital and CAPEX Management for Q4 2017

50.3 48.9 48.4 48.9 48.8

72.1

66.6 63.5 62.1 63.1

84.9 87.0

94.2 99.2 104.5

Q4 16 Q1 17 Q2 17 Q3 17 Q4 17

Accounts Receivable Inventories Accounts Payable

KEY MILESTONES

• Alicorp successfully reduced its Cash Conversion Cycle from 11.8 days as of Q3 17’ to 7.4 days as of Q4 17’, 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/

304.1 million)

• DAdditionally, the Company was able to reduce its capital investment requirements without compromising growth

A

B

A

(PEN Million)

CAPEX EVOLUTIONA B

1 Working Capital is defined as the last twelve month (LTM) average of accounts receivable plus average inventory minus average accounts payable2 Days sales outstanding3 Average days as a mean of the LTM balance sheet accounts.4 Cash Conversion Cycle

(Days)

CCC428.637.4 17.8 7.4

(PEN Million)

WORKING CAPITAL EVOLUTION1

DAYS OF WORKING CAPITAL3A

36

79

304

751

404

Q4 16' Accounts Receivable Inventories Accounts Payable Q4 17'

Millares

23 19 15 31 19

1.25% 1.21% 0.82%1.68%

1.02%

Q4 16' Q1 17' Q2 17' Q3 17' Q4 17'

Mill

ares

Property, Plant & Equipment PP&E as % of Sales

11.8

A temporary increase in accounts

receivables of S/ 4.7 millions, make

a DSO2 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)

Market conditions allow us to access

commercial facilities with suppliers

59

8 Cash Flow Build Up as of Q4 2017

273

1,043

1,082 39

345

165

35 184

102

127

5

184

Net Cash onQ4 16'

Cash generatedfrom

operations

Taxes Other expensesfrom

operations

InvestmentActivities

Debt InterestPayment

DividentPayment

Other financialactivities

Net Cash onQ4 17'

2

(PEN Million)

MAIN DRIVERS FOR CASH FLOW EVOLUTION

HIGHLIGHTS

1

1 Investments: time deposits with maturity between 90 days and 360 days and mutual funds.2 Includes PP&E, acquisitions, software and other investment activities3 Includes FX Translation effect of S/ -5.7 million

Cash Flow from Operations S/ 882.3

Cash Flow from Financing S/ 110.6

Cash Flow from Investing S/ -223.012

▪ Cash Flow from Operations was S/ 882.3 million, S/ 47.1 million lower compared to Q4 16' 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 2016; while S/ 184.3 was hold for

investments1

▪ Cash Flow used in Financing Activities was S/ 110.6 million, compared to S/ -665.1 million as of Q4 16', mainly due to

an increase in short term loans

3

1

60

8 OCF & FCF Evolution

1,081929 882934

826

2015 2016 2017

Operating Cash Flow Free Cash Flow

2184

67%

86%

102%

77%97% 107%

0%

20%

40%

60%

80%

100%

120%

2015 2016 2017

EBITDA / Operating Cash Flow EBITDA / Free Cash Flow

1 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 184MM)

OPERATING & FREE CASH FLOW1

OPERATING & FREE CASH FLOW CONVERSION1

(PEN Million)

▪ Free Cash Flow for

2017 is stronger than

last year as a result

of:

i. An improvement

in EBITDA,

ii. A reduction of the

cash conversion

cycle,

iii. CAPEX

rationalization

▪ Along the continuous

increase in EBITDA,

more than 100% of it

has been converted

into cash flow

844

Documents

Corporate Presentation · PDF file1 This presentation may contain financial or business projections regarding recent acquisitions, their financial or business impact, management expectations