Corporate PresentationMarch 2020
Ferreycorp and
Strategy
SHAREHOLDER STRUCTURE
HIGHLIGHTSFERREYCORP
• Established in Peru in 1922.• 98 years of business, 78 years of alliance with CAT. Currently
operating thru 17 companies within 10 countries employing aworkforce of +6,000.
• Key facts:• 60% Caterpillar Market Share• Market cap (Mar-2020) ~ $600MM• Shareholders +2,500
Pension funds36%
Local shareholders
36%
Foreign shareholders
28%
3
Guatemala
El Salvador
Belice
El Salvador, Honduras
Nicaragua
Chile, Colombia , Ecuador, Perú
BVL: FERREYC1
CORPORATE STRUCTURE
Caterpillar dealers and alliedbrands in Peru
Caterpillar dealers and other businesses in Central America
Other subsidiaries in Peru and abroad
4
DIVERSIFICATION STRATEGY
Sales
%of Total Sales
EBITDA
% of Total EBITDA
EBITDA Margin
#of employees
As of December 2019(S/. Million)
Caterpillar dealers and allied brands in Peru
Caterpillar dealers and other businesses in Central America
Other subsidiaries in Peru and abroad
(*) Third group of companies increasing their share in total sales: 2013(10%), 2014 (11%), 2015 (12%), 2016(15%), 2017 and 2018 (16%) – as a result of diversification strategy through complementary businesses.
4,481 436 948
76% 8% 16%
550 51 96
79% 7% 14%
12% 12% 10%
4,695 744 1,210
5
Machinery
Agriculture business
Automotive business
Consumables
Services
6
STRATEGYCOMPLETE VALUE PROPOSITION
http://www.carmix.com/index.htmlhttp://images.google.com/imgres?imgurl=http://www.dirtygirlmotorracing.com/sponsor-lincoln-logo.gif&imgrefurl=http://www.dirtygirlmotorracing.com/links.html&h=99&w=300&sz=7&hl=en&start=4&sig2=jWq9ZYoisSj2st2xqvCGgQ&um=1&usg=__m5mmvVNmKmOZa80vrDB0fn2AyMQ=&tbnid=c5HfR0YbMezaIM:&tbnh=38&tbnw=116&ei=frr7SNbJG5GweviW2CE&prev=/images?q=Lincoln+electric+logo&um=1&hl=en&safe=offhttp://www.3m.com/us
7
PRESENCE IN SOUTH AND CENTRAL AMERICAREPRESENTING LEADER BRANDS
http://www.carmix.com/index.htmlhttp://images.google.com/imgres?imgurl=http://mtzionmh.com/i/Genie-Logo.jpg&imgrefurl=http://mtzionmh.com/&h=379&w=1000&sz=138&hl=en&start=1&sig2=f0GMH1mF9IX40IcI0em2dg&um=1&usg=__PSqMUmkt4UsdYGPcCAzQnFji8dc=&tbnid=bat_jYyHiD0XnM:&tbnh=56&tbnw=149&ei=M7v7SO60LIeOeeDjpRg&prev=/images?q=Genie+logo&um=1&hl=en&safe=off&sa=Nhttp://images.google.com/imgres?imgurl=http://www.dirtygirlmotorracing.com/sponsor-lincoln-logo.gif&imgrefurl=http://www.dirtygirlmotorracing.com/links.html&h=99&w=300&sz=7&hl=en&start=4&sig2=jWq9ZYoisSj2st2xqvCGgQ&um=1&usg=__m5mmvVNmKmOZa80vrDB0fn2AyMQ=&tbnid=c5HfR0YbMezaIM:&tbnh=38&tbnw=116&ei=frr7SNbJG5GweviW2CE&prev=/images?q=Lincoln+electric+logo&um=1&hl=en&safe=offhttp://www.3m.com/us
KEY CAPABILITIESCREATING VALUE
Long term strategic partnerships
Market coverage
Unmatched supply chain and logisticscapabilities
Financial strength and funding sources
In-depth market knowledge
Innovation and technology
Ethics and compliance, Corporate Governanceand Sustainability
8
Fundamental
of the Business
SUSTAINABLE BUSINESS MODEL
• Resilient business model.
• Spare parts and services support business.
• Diversification strategy through business lines,presence in different economic sectors,different countries, various represented brandsand a diversified portfolio of products relatedto capital goods.
10
31%
52%
9%
8%
52%33%
6%9%
51%
31%
10%
8%
(*) Other lines include: logistic businesses, lubricants and consumables.
-
500
1,000
1,500
2,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-
34%
50%
9%7%
Machinery
Spare parts andservices
Rental and used
Others
US$1.9Bn US$
1.7BnUS$
1.6BnUS$
1.4BnUS$
1.4Bn
US$1.5Bn
US$ MM
US$1.8 Bn
Sales by Business Lines
SALES BY GROUP OF COMPANIES(In S/ mm)
Other subsidiaries in Perú and abroad
CAT dealers and other businesses in CA
CAT dealers and allied brands in Perú
Sales by group of companies
116 102 113
424 436
19.6%25.0% 25.0% 22.5% 25.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
Q4'18 Q3'19 Q4'19 2018 2019Gross margin
- 3%
+ 3%
1,122 1,267 1,164
3,952
24.5% 25.0% 22.0% 25.40% 24% 10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Q4'18 Q3'19 Q4'19 2018 2019
Gross margin
+13%
+4%
201 232274
836
18.0% 20.0% 18.0% 18.3% 19.0%0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Q4'18 Q3'19 Q4'19 2018 2019
Gross margin
+13%
+36%
11
78% 79% 75% 76% 78%
8% 6% 7% 8% 7%
14% 14% 18% 16% 15%
Q4'18 Q3'19 Q4'19 2018 2019Cat dealers and allied brands in Peru Cat dealers and other businesses in CAOther subsidiaries in Peru and abroad
4,481
948
In unitsRolling 12 mo, Dec 2019
US$ FOB Rolling 12 mo, Dec 2019
US$ FOB Rolling 12 mo, Dec 2019
US$ FOB Rolling 12 mo, Dec 2019
CATERPILLAR54%
JOHN DEERE13%
JCB2%
KOMATSU8%
VOLVO2%
CASE3%
BOBCAT4%
WACKER NEUSON
2%
HYUNDAI2%
MANITOU2%
DOOSAN1%
OTROS7%
General construction
Heavy construction
Underground mining
Open pit mining
12
CATERPILLARMARKET SHARE IN PERU
CATERPILLAR61%
KOMATSU25%
HITACHI3%
EPIROC9%
P&H2%
CATERPILLAR75%
SANDVIK14%
EPIROC10%
XWD1%
CATERPILLAR59%
KOMATSU18%
VOLVO7%
JOHN DEERE6%
HYUNDAI2%
BOMAG2%
XCMG1%
DOOSAN3% SEM
1%
OTROS1%
Source: Minem & Ferreyros
US$ MillionMining Invest.
US$ Bn
198 229268
325 325 361 354407
500 528137
205
314
343
136
179 160119
87
150
0
1
2
3
4
5
6
7
8
9
10
0
100
200
300
400
500
600
700
800
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales of spare parts and services (mining) Sale mining equipment Mining investment
MINING INVESTMENTMINING MACHINERY, SPARE PARTS AND SERVICES
13
Mining Investment
US$ Billion Units
*Considers mining trucks 785 onwards + electric and hydraulic shovels former Bucyrus
MINING INVESTMENT EVOLUTIONCATERPILLAR EQUIPMENT FOR MINING
7 16 16
57
98
131
165 166 173192
215234
249281
323
360376
416
482
515
563592
617 627651
$0
$2
$4
$6
$8
$10
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
0
100
200
300
400
500
600
700
Unidades entregadas camiones y palas Inversión MineraMining trucks and shovels population Mining investment
14
MINING PROJECTS PORTFOLIOUS$ 59 BILLION
• Yanacocha Sulfuros• Anubia• Los Chancas• Quicay II• San Gabriel• Haquira• Michiquillay• Antilla• AZOD• Bayovar 12• Cotabamba• Don Javier• El Galeno• Fosfato Mantaro• Hierro Apurimac• La Granja• Los Calatos• Macusani• Pukaqaqa• Racaycocha Sur• Rondoni• Trapiche
• Amp Pachapaqui• Integración Coroccohuayco• Zafranal• Fosfatos Pacífico• Magistral• Amp Bayóvar• Cañon Florida• Conga• Cañariaco• El Padrino e Hilarión• Ollachea• Quechua• Río Blanco• San Luis
• Amp Santa María• Optimización Lagunas Norte• Corani• Tia Maria• Pampa de Pongo
• Amp Toquepala• Quecher Main• Relaves B2 San Rafael• Amp Toromocho• Ariana• Mina Justa• Quellaveco
Pre Feasibility Feasibility Engineering ConstructionUS$31 BILLION US$13 BILLION US$5 BILLION US$10 BILLION
PROJECTINVESTMENT
(US$ MM)
Construction period
Relaves B2 San Rafael 200
Mina Justa 1,600
Quecher Main 300
Amp Toromocho 1,355
Ariana 125
Quellaveco 5,300
Amp Santa María 110
9,000
2018 2019 2020 2021 2022
PROJECTS IN CONSTRUCTION STAGE (2019)
Source: MINEM
15
MINING PROJECTSCONSTRUCTION STAGE – NEXT YEARS
2019 2020 2021 2022
US$ 9,000mm US$ 3,959mm US$ 3,357mm US$ 5,140mm
PROJECTINVESTMENT
(US$ MM)
Relaves B2 San Rafael 200
Mina Justa 1,600
Quecher Main 300
Amp Toromocho 1,355
Ariana 125
Quellaveco 5,300
Amp Santa María 110
9,000
PROJECTINVESTMENT
(US$ MM)
Optimiz Inmaculada (UG) 136Integración Coroccohuayco 590
Amp Pachapaqui (UG) 117
Corani 585
San Gabriel (UG) 431
Yanacocha Sulfuros 2,100
3,959
PROJECTINVESTMENT
(US$ MM)
Pampa de Pongo 2,200
Zafranal 1,157
3,357
PROJECTINVESTMENT
(US$ MM)
Magistral 480
Haquira 1,860
Los Chancas 2,800
5,140
Source: MINEM
16
17
Yanacocha
Las Bambas
Shougang
Constancia
Antapaccay
Cerro Verde Cuajone
Toquepala
Toromocho
Mina Justa
Quellaveco
Cerro Corona
Raura (UG)
Islay (UG)
Cerro Lindo (UG)
Marcona
Iscaycruz
El Porvenir (UG)
Atacocha (UG)
San Cristobal (UG)
Carahuacra (UG)
Andaychagua (UG)
San Rafael (UG)
Pucamarca
Animon (UG)
PRESENCE IN LARGE OPEN PIT,MEDIUM SIZE AND UNDERGROUND MINING
Shahuindo
Yauliyacu
Inmaculada (UG)
Pallancata (UG)
Morococha
Uchucchacua
La Zanja
Iscaycruz
17
Antamina
HEAVY CONSTRUCTIONINDUSTRY EVOLUTION
Units
18
14
55
14
52
13
90
12
67
12
09
11
45
10
47
97
09
32
84
07
99
77
68
00
82
07
71
78
9 82
68
42 9
09
98
7 10
30 10
99 1
19
3 12
64
12
85 13
45
13
79
14
29
15
57
16
02 1
68
51
70
5 18
00
18
29
18
50
18
56
18
96
19
07
19
42
19
62
19
85 20
48 21
06 21
74
21
73
22
08
21
53
21
70 22
34
22
15
22
29
22
20
21
48
21
18
20
80
20
51
19
89
19
34
19
36
19
43
18
62
18
32
17
85
17
81
17
43
17
39
16
41
15
99
15
69
15
70
15
14
13
87
13
74
13
50
12
30
11
86
11
70
10
94
10
51
10
19
96
09
41
94
59
65
96
29
06 94
59
53
93
79
25
91
78
73
87
68
26
78
77
60
71
87
20
68
16
20
56
25
41
52
15
07
51
95
21
53
85
57
54
15
27
52
8 56
95
94 62
76
39
64
16
49
64
56
66
66
56
77 7
34 76
47
50
77
17
70
79
18
08
78
87
96
79
48
17
82
8
0%
10%
20%
30%
40%
50%
60%
70%
0
500
1000
1500
2000
2500
No
v-0
8
Ene-
09
Mar
-09
May
-09
Jul-
09
Set-
09
No
v-0
9
Ene-
10
Mar
-10
May
-10
Jul-
10
Set-
10
No
v-1
0
Ene-
11
Mar
-11
May
-11
Jul-
11
Set-
11
No
v-1
1
Ene-
12
Mar
-12
May
-12
Jul-
12
Set-
12
No
v-1
2
Ene-
13
Mar
-13
May
-13
Jul-
13
Set-
13
No
v-1
3
Ene-
14
Mar
-14
May
-14
Jul-
14
Set-
14
No
v-1
4
Ene-
15
Mar
-15
May
-15
Jul-
15
Set-
15
No
v-1
5
Ene-
16
Mar
-16
May
-16
Jul-
16
Set-
16
No
v-1
6
Ene-
17
Mar
-17
May
-17
Jul-
17
Set-
17
No
v-1
7
Ene-
18
Mar
-18
May
-18
Jul-
18
Set-
18
No
v-1
8
Ene-
19
Mar
-19
May
-19
Jul-
19
Set-
19
No
v-1
9
INDUSTRIA PINS % PINS (Rolling 12)
INFRASTRUCTURE GAP IN PERUUS$ 160 BILLION
US$ Billion 2016-2025
Water and sanitation 12.5
Telecom 27.0
Transport 57.5
Energy 30.7
Health 18.9
Education 4.6
Hydraulic 8.5
Total 159.7
Source: AFIN
Water and sanitation
8%
Telecom17%
Transport36%
Energy19%
Health12%
Education3%
Hydraulic5%
Investment by sector
19
NATIONAL PLAN FORCOMPETITIVENESS AND PRODUCTIVITY
• National Infrastructure Plan: Projects for US$30 billion to reduce the gap of basic services in 30% and will be developed in the next10 years.
Agriculture6% Energy
5%Sanitation
6%
Transport and communications
83%
Investment by sector
ProjectInvestment
(S/mm)Sector Stage
Línea 2 y Ramal Av. Faucett-Av. Gambeta de la Red Básica del Metro de Lima y Callao
17,105 Transport Execution
Línea 3 Red básica del metro de Lima, provincia de Lima, departamento de Lima
12,373 Transport Filing
Longitudinal de la Sierra Tramo 4: Huancayo-Ayacucho-Andahuaylas - Pte.
Sahuinto y dv. pisco - Ayacucho9,862 Transport Structuring
Construcción del anillo vial periférico de la ciudad de Lima y Callao
6,772 Transport Structuring
Programa de infraestructura vial para la competitividad regional - Proregión
6,120 Transport Filing
Ampliación del Aeropuerto Internacional Jorge Chávez
4,950 Transport Execution
Chavimochic (Tercera Etapa) 3,149 Agriculture ExecutionAmpliación del Terminal Multipropósito Muelle Norte - Callao - APM Terminals
Callao3,000 Transport Execution
Obras de cabecera y conducción para el abastecimiento de agua potable para Lima
2,513 Sanitation Execution
Mejoramiento y ampliación del servicio aeroportuario en la región Cusco mediante
el nuevo aeropuerto internacional de Chinchero-Cusco
2,432 Transport Execution
ProjectInvestment
(S/mm)Sector Stage
Construcción y Mejoramiento de la Carretera Central, Tramo: Autopista puente los Ángeles - Ricardo Palma
2,321 Transport Feasibility
Mejoramiento y ampliación del servicio aeroportuario (Piura y Trujillo)
2,292 Transport Execution
Ampliación del Terminal de Contenedores Muelle Sur - Callao - DP World Callao
2,102 Transport Execution
Majes Siguas (Segunda Etapa) 2,019 Agriculture ExecutionMejoramiento y ampliación de los
servicios de agua potable y alcantarillado en las ciudades de Puno, Juliaca y Pucallpa
1,780 SanitationTechnical
record
Rehabilitación y mejoramiento de la carretera Ruta N PE-8, EMP. PE-1N (Ciudad
de Dios) y EMP. PE-3N Cajamarca1,599 Transport
Technicalrecord
Mejoramiento de la Carretera puente Ricardo Palma - La Oroya: Variante emp. PE-022 km. 101+379 (Rio Blanco) - emp.
ruta PE-3S km. 21+918 (Huari)
1,481 Transport Viability
Central Hidroeléctrica San Gabán III 1,445 Energy ExecutionAutopista del Sol: Trujillo - Sullana 1,333 Transport Execution
Tercer grupo de aeropuertos regionales 1,299 Transport PlanningMejoramiento de la Carretera Oyón –
Ambo1,248 Transport Execution
(*) Main projects: over S/ 1 Bn
Source: MEF
20
GDP,PRIVATE AND PUBLIC INVESTMENT
Source: Apoyo
Consultoría
4.0%
2.5%
4.0%
2.2%2.7%
0%
3%
6%
2016 2017 2018 2019E 2020E
GDP (Var.%)
2.60%
24.00%
3.40%
-4.30%
1.20%
-8.00%
1.50%
5%
Total Investment
Mining
Diversified investment
Infraest. for public use20192020
Total Investment by Type
-0.2%
-2.3%
6.8%
-1.5%
3.0%
-5.4%
0.2%4.2% 2.0%
0.0%
-8%
-4%
0%
4%
8%
2016 2017 2018 2019E 2020E
Public Investment Private Investment
Public and Private Investment (Var.%)
21
Total Investmentgrowing at low rate Investment Flow of main projects
PROJECT2019
(US$mm)2020E
(US$mm)
Quellaveco 1,300 1,500
Toromocho expansion 500 550
Mina Justa 900 500
Lima Metro – Line 2 350 400
Jorge Chavez Airport exp 0 150
San Martin Port 85 130
6 roads 10 10
3,145 3,240
Main Projects for 2020
MAIN PROJECTS
Source: Apoyo Consultoría
Investment Flow - Main projects
PROJECT2019
(US$mm)2020E
(US$mm)Quellaveco 1,300 1,500Toromocho expansion 500 550Mina Justa 900 500Lima Metro – Line 2 350 400Jorge Chavez Airport exp 0 150San Martin Port 85 1306 roads 10 10
3,145 3,240
22
Public Investment – Projects
PROJECT2019
(US$mm)2020E
(US$mm)Reconstruction of North Part 950 1,130Talara Refinery 900 650Panamerican Games 230 0Regular public projects 8,150 9,370
10,230 11,150
Financial
Performance
N
667583 567 621
618
62
12.5% 12.0% 11.7% 11.9% 11.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
100
200
300
400
500
600
700
800
900
1000
2015 2016 2017 2018 2019
EBITDA IFRS16 EBITDA MARGIN
FINANCIAL RESULTSMillion soles (S/ mm)
5,3334,856 4,843
5,211
5,865
24.2% 24.3% 24.1% 24.1% 21.6%10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2015 2016 2017 2018 2019
Sales Gross margin
820 797 808 856916
15.4% 16.4% 16.7% 16.4% 15.6%0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2015 2016 2017 2018 2019
Selling and administ expenses As a % of sales
+13%
+7%
490425 421
466 459
9.2%8.7% 8.7% 8.9% 7.8%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2015 2016 2017 2018 2019
-2%
Sales and Gross Margin SG & A Expenses
Operating Profit and Operating Margin
24
+10%
EBITDA and EBITDA Margin
680
N
FINANCIAL RESULTSMillion soles (S/ mm)
230
267
225245
4.7% 5.5% 4.3% 4.2%0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2016 2017 2018 2019
Net profit Net Margin
+9%
Net Profit 2019 Net Profit and Net Margin
25
+9%
Positive variations
Negative variations
225
5923
58 66
2 11
245
0
50
100
150
200
250
300
2018 Δ EBITDA Δ Financial expenses
Δ Gain (loss) to FX
Δ D&A Δ Share of profit of
associated
Δ Income tax 2019
INVESTMENT IN ASSETSMillion soles (S/ mm)
• Common practice, 30 días para la recolección una vez que seentregue la factura al cliente.
• Inventories: components, factory delays in the supply of spareparts, mining equipment.
Accounts Receivables Inventory
26
1,080 1,0311,195 1,128
45 8026
27
2016 2017 2018 2019
Short term Long term
-5%
1,2211,125 1,111
1,155
+9%
1,2331,393
1,772
661 753897
1095
468548
788754
10492
8785
2016 2017 2018 2019
Machinery and others Parts and serv. in process Consumables
1,934
FIXED ASSETS AND CASH CYCLEMillion dollars (US$ mm)
• Intangibles: ERP SAP implementation2017: US$ 13mm2018: US$ 23mm2019: US$ 24mm
144 148156 160 163 163 161 164
71 71 71 68 67 63 64 62
55 59 57 53 53 55 52 47
128136
143 145149
155149 150
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19
Cash cycle Collection days Payable days Inventory days
CAPEX Cash cycle
27
1728
8 11
5
6
48
15
12
17
343
4
3
4
-1
-21-7
-14
2016 2017 2018 2019
Infrastructure Machinery and equipment
Rental Fleet Vehicles, furniture and equipment
Sale of fixed assets
39
29
25
43
106
125
8573
96
2.0%2.6%
1.8% 1.4% 1.6%0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
2015 2016 2017 2018 2019
Financial expenses As a % of sales
FINANCIAL DEBTMillion dollars (US$ mm)
Diversified funding base Debt by currency Debt Maturity
Average cost of debt Financial expenses
( S/ mm)
Adjusted Debt/ EBITDA
2.68 2.93
2.37 2.38 2.46
2.86 2.59
2.05 2.18
2.66
2.19
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
• Adjusted debt: exclude short term debt related to inventories• Covenant < 3.5x
28
4.40% 0.50%
95.10%
PEN Quetzales USD
307 327447
620161 100
10053 75
604538
2.86 2.73 3.20 3.31
-20.00
-15.00
-10.00
-5.00
0.00
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019
Banks Bonds Caterpillar IFRS16 Net debt/ EBITDA
521 502
607703
4.12%
3.67%3.43%
3.68%
2016 2017 2018 2019
+31%
390
114 78
56 26
2020 2021 2022 2023 2024
Ferreycorp in the
Capital Market
FERREYCORPIN THE CAPITAL MARKET
Shareholder Structure as of December 2019
Ferreycorp & SP/BVL PERU
Main Shareholders as of December 2019
Share Price 2017-2019 (S/)
Shareholder Share
RI-Fondo 2 (Prima AFP) 7.00%
Onyx Latin America Equity Fund LP 6.64%
IN-Fondo 3 (AFP Integra) 5.54%
IN-Fondo 2 (AFP Integra) 5.25%
PR-Fondo 2 (Profuturo AFP) 4.84%
RI-Fondo 3 (Prima AFP) 4.34%
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Pension funds36%
Local shareholders
36%
Foreign shareholders
28%
Div Yield: 9%
1.5
1.7
1.9
2.1
2.3
2.5
2.7
Ene-17 Jun-17 Nov-17 Abr-18 Set-18 Feb-19 Jul-19 Dic-1920
50
80
110
140
170
200
Ene-17 Jun-17 Nov-17 Abr-18 Set-18 Feb-19 Jul-19 Dic-19
FERREYC1 IGBVL
DIVIDEND POLICYANNUAL COMPLIANCE
✓ In 1997, the company´s Shareholders meeting approved the dividend policy.
✓A modification was approved to assign minimum and maximum ranges. Cash dividends will amount to 5% of the capital or a ceiling equal to 60% of freely available profits.
✓The 2013 Shareholders Meeting approved to increase the upper limit from 50% to 60% of freely available profits.
✓The 2018 Shareholders Meeting modified the policy: dividends in advance.
✓The 2019 Shareholders Meeting modified the policy: extraordinary dividends.
Period:Cash dividend
(*) Payout
(% Dividend / Net Profit)
Cash dividend per share
(%)
Dividend per share
(S/.)
2003 9.1 50% 4.46% 0.0446
2004 11.9 48% 5.50% 0.055
2005 13.3 49% 5.50% 0.055
2006 28.4 36% 11.00% 0.110
2007 40.2 35% 13.20% 0.132
2008 20.7 29% 5.50% 0.055
2009 28.0 31% 6.00% 0.066
2010 31.8 26% 6.00% 0.066
2011 41.9 29% 6.00% 0.060
2012 48.1 30% 6.00% 0.060
2013 55.7 60% 5.90% 0.059
2014 60.8 52% 6.00% 0.060
2015 87.3 60% 8.87% 0.0887
2016 124.4 60% 12.8457% 0.128457
2017 132.1 55% 13.5465% 0.135465
2018121.5 60% 12.4543% 0.124543
50.0 5.1246% 0.051246
50.0 5.1246% 0.051246
(*) In million
(**) Upper Limit: 60%
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Corporate
Governance and
Sustainability
SUSTAINABILITYSTAKEHOLDERS
✓ Ferreycorp Program for Professional Development -Ferreycorp Association
✓ Heavy Equipment Operators Club✓ Think Big Program✓ Works for taxes✓ Corporate volunteering
✓ Mutually beneficial and long-term relations.✓ Comprehensive solutions for their business.✓ Varied portfolio of high quality products and services.✓ Constant monitoring of customer satisfaction.✓ Respect for customers´privacy.✓ Training customers.
✓ Ferreycorp is a member of the United Nations GlobalCompact Network
✓ Every year, the Corporation published a Progress Reportabout actions implemented consistently with subjectsincluded in the ten principles of the UN Compact Network
✓ Hiring policy: transparency, equitable treatment.✓ Select suppliers based on: quality of product or service, price,
delivery terms, human resources policies and practices,occupational health and safety programs.
✓ Formalization and development of local suppliers
Community
Customers
Government and Society
Suppliers
Environment
Employees
Shareholders
✓ Standard Environmental Management System based onthe ISO 14001 standard
✓ Comprehensive Policy on Health, Safety and theEnvironment
✓ Environmental Management Programs: planning, trainingand awareness, operational control and verification.
✓ Health, safety and working conditions✓ Professional and personal development✓ Diversity and inclusion✓ Relations with the unions✓ Social activities
✓ Principles of Good Corporate Governance✓ Respect of Shareholders’ rights✓ Transparent and timely reporting✓ Highly qualified Board of Directors that represents all of
the shareholders
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CORPORATE STANDARDSSTRONG CORPORATE GOVERNANCE
• Ferreycorp (FERREYC1) is listed in the Lima Stock Exchange since 1962.• Ferreycorp is included in the Corporate Governance Index of the Lima
Stock Exchange since its launch in 2008.
Board of Directors:• The last General Shareholders Annual Meeting agreed to reduce the
board members from 10 to 9 members.
• The Board of Directors of Ferreycorp is complemented by threecommittees: LEAD BY INDEPENDENT DIRECTORS✓ Nominations, Remuneration, Corporate Governance and
Sustainability Committee✓ Audit and Risk Committee✓ Innovation and Systems Committee
Composition of the Board:Independent Directors Dependent Directors✓ Jorge Ganoza Oscar Espinosa✓ Humberto Nadal Carlos Ferreyros✓ Gustavo Noriega Juan Manuel Peña✓ Javier Otero Andreas von Wedemeyer
Manuel Bustamante
Recognitions• Key of the Lima Stock Exchange: 2008, 2011, 2012, 2013, 2017, 2018 and
2019.• Member of the Companies Circle of the Latin America launched by OECD
and IFC• International recognitions: World Finance Award 2011 and 2012; Latin
America Investor Relations Awards 2011 (LirA’11), Ethical BoardroomCorporate Governance Awards 2015: South America, Industrial servicessector, Dow Jones Sustainability Index (2018, 2019)
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Contact information:Patricia Gastelumendi: [email protected] Tamayo: [email protected]