October 2007 1
Alicorp: A History of Growth: Organic and through Acquisitions Merger Acquisition Merger Merger Acquisition Merger Acquisition 1993 Feb 95 Mar 95 Jun 95 Oct 95 Dic 96 Jan 01 Feb 04 Nov 05 Dic 05 Nov 06 May 07 $80MM $900MM Calixto Romero CODISA CIPPSA Consorcio de Alimentos Fabril Pacífico OLPISA Nicolini Lamborgini Opal Marsella Eskimo Ice cream COPSA Molinera del Perú Industrias Pacocha Detergents Plant Molinera Inca Santa Rosa La Fabril SIDSUR Asa Alimentos 2
Alicorp: Long Term Strategic Plan Growth Strengthen category / brand portfolio Launch new products International expansion Acquisitions Low cost operations Adequate capital structure 3
Alicorp: Today Largest consumer goods company in a growing country Strongest distribution network in Perú Focused on developing new, high value-added products and internationalizing the business Consistent growth and operating improvement Solid financial position 4
Alicorp: Business Units Revenues 2007E US$900 MM Consumer Products Industrial Products Animal Nutrition Ice Cream International Edible Oils Margarine Mayonnaise, sauces Laundy soap Cookies & Crackers Pasta Pet Food Detergents Powdered drinks Jello Personal care Industrial Flour Baking Flour Shortenings Pre-mixes Omega 3 Stearic Acid Glicerine Shrimp Feed Trout Feed Ice cream Mayonnaise, sauces Laundry Soap Cookies & Crackers Pasta Pet Food Powdered drinks Jello Personal care Ice cream 5 US$ 510 (58%) US$ 259 (30%) US$ 65 (7%) US$ 8 (1%) US$ 36 (4%)
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Alicorp: Undisputed Leader in Consumer Products Category Key Brands Market Share Position Edible oils Primor, Primor Premium, Capri 55% #1 Pasta Don Vittorio, Lavaggi, Nicolini 47% #1 Laundry soap Bolivar Vida, Marsella, Jumbo 86% #1 Mayonnaise Alacena 94% #1 Margarine Sello de Oro, Manty 43% #1 Cookies Casino, Tentación, Glacitas, Chomp 32% #1 Flour Nicolini, Blanca Nieve, Inca 59% #1 Detergents Bolivar, Opal 27% #2 Pet food Mimaskot, Nutrican 42% #1 Ice cream Lamborgini 14% #2 Competitor Molinos (ARG) Molitalia (CHI) Locals Unilever Unilever Kraft Locals P&G Nestle Nestle Powdered drinks Yaps, Negrita, Kiribá, Kanú 67% #1 Kraft 7
Peru: Gross Domestic Product (% Change) 8% 7% 6% 5% 4% 3% 2% 1% 0% 2000 2001 2002 2003 2004 2005 2006 2007e 2008f 2009f e: estimate, f: forecast. Source: BCRP, MEF. 8
Gross Domestic Product Country US$ Billion Real % change 2006 2007e 2008f Brazil 1,068 4.4 4.2 Mexico 840 3.4 3.5 Argentina 213 7.5 5.5 Venezuela 182 6.2 2.0 Chile 145 5.2 5.1 Colombia 135 5.5 4.5 Peru 93 7.7 7.4 LATAM TOP 7 2,676 4.8 4.2 Germany 2,897 1.8 1.9 Euro Zone 14,527 2.3 2.3 US 13,245 2.2 2.8 e: estimate, f: forecast. Source: IMF. 9
Peru: Industrial GDP (% Change) 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0-2.0-4.0 2000 2001 2002 2003 2004 2005 2006 2007* Manufacturing Non-primary manufacturing Industrial GDP S growth rate above GDP growth rate. *June 2007. Source: BCRP. The food and beverage industry represents 4.3% of global GDP. The growth of this sub-sector was 9.3% in 2006 and 9.4% in the first semester of 2007. 10
Peru: Annual household expenditure Economic region 2006 (US$ MM) 2004-2006 % chg. Lima Metrop. 17,421 19.6 Central coast 2,533 19.1 North coast 4,643 13.2 South coast 825 17.9 Jungle 3,193 9.5 South highlands 3,806 12.5 Central highlands 2,890 5.5 North highlands 1,384 13.2 Peru 36,697 15.6 Source: INEI. 11
Peru: Imports (US$ million) 21,000 18,000 Capital goods Raw materials and intermediate goods Consumer goods 15,000 12,000 9,000 6,000 3,000 0 2000 2001 2002 2003 2004 2005 2006 2007e 2008f e: estimate, f: forecast. Source: BCRP, Macroconsult. 12
Peru: Country Risk Bps. 1,600 1,400 1,200 1,000 800 600 400 EMBI+ Peru spread EMBI+ LatAm spread Country Risk 15-Aug-07 EMBI Peru 167 EMBI Argentina 469 EMBI Brazil 200 EMBI Venezuela 420 EMBI Colombia 186 EMBI Ecuador 696 EMBI Mexico 127 200 0 2000 2001 2002 2003 2004 2005 2006 2007 Source: JP Morgan. 13
Peru: Inflation Rates 5.0 4.0 3.0 May-07 YoY Argentina 9.2 Colombia 4.9 Mexico 3.7 Brazil 3.6 Chile 2.9 Peru 1.3 3 2.0 1.0 0.0-1.0 CPI Core CPI -2.0 2000 2001 2002 2003 2004 2005 2006 2007 2 1 Target Source: BCRP. 14
Peru: Interest Rates 7.0 6.0 FED LIBOR 3 months BCRP 5.0 4.0 3.0 2.0 1.0 0.0 2001 2002 2003 2004 2005 2006 2007 Source: BCRP, FED. 15
Peru: Financial system credit and dedollarization 24.0 21.0 18.0 US$ Billion 15.0 12.0 9.0 6.0 3.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 Nuevos Soles US$ 2007 till may. Source: BCRP. 16
Peru: Business Enviroment Indicator Peru Colombia Argentina Brazil Ecuador Ease of doing business ranking 65 79 101 121 123 Procedures to start a business Investor protection index Import costs (US$ /container) 10 13 15 17 14 6.7 6 4.7 5.3 4 820 1,773 1,750 1,145 1,090 Source: Doing Business Report 2007. According to the Doing Business Report 2007, Peru is one of the top ten countries which had applied the most important investment- friendly reforms. 17
Peru: Poverty and children malnutrition reduction Year Poverty Extreme Poverty 2001 54.3% 24.1% 2002 53.8% 24.2% 2003 52.2% 21.9% 2004 51.6% 19.2% 2005 48.7% 17.4% 2006 44.5% 16.1% 2011 30.0% nd Malnutrition 1996 2000 2005 2011 Urban 16% 13% 10% nd Rural 40% 40% 39% nd National 26% 25% 24% 16% Source: INEI, ENDES. 18
Alicorp: Revenues 1000 39% 900 800 600 466 Growth: 5.6% average per year 509 522 542 571 572 646 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 E 19
Alicorp: EBITDA 120 106 100 80 +US$ 51 MM 81 77 60 55 53 63 58 64 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 E 20
Alicorp: Financial Debt 350 300 - US$ 126 MM 250 200 150 Financing Growth 100 50 325 296 273 242 226 214 195 161 142 176 199 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 E 21
Peru Macroeconomic and political stability. Sustainable GDP, and GDP per capita growth, with strong economic fundamentals. Close to achieving Investment Grade. Key growing economic activities: mining, turism and agriculture products, oriented to foreign markets. Adequate business environment for investments. Improvement and descentralization of increasing public investment. Welfare programs in place with ambitious poverty-reducing goals. Future perspectives: large mining projects, FTA with USA, Canada, China and others. 22
Alicorp: Creating Shareholder Value Share Price in S/. 3.30 2.80 2.30 1.80 CAGR: 33.6% 1.83 2.5 2.6 1.30 1.44 0.80 0.30 0.44 0.4 0.4 0.55-0.20 Dic '00 Dic '01 Dic '02 Dic '03 Dic '04 Dic '05 Dic '06 Set '07 23
THANK YOU 24