117.117.117 fourth quarter 2017 · our 2017 accomplishments aligned with our efficiency plan ... we...

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Earnings Call

Fourth Quarter 2017

February 19th, 2018

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https://dealworks.ny.jpmorgan.com/dw/drl/objectId/0b0096158b606bc4

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.

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Topics

Review FY 2017 [ 1 ]

Q4 2017 Highlights [ 2 ]

Guidance FY 2018 [ 3 ]

Transaction Update [ 4 ]

Q&A [ 5 ]

Appendix [ 6 ]

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Q&A [ 5 ]

Appendix [ 6 ]

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1 Median of the research estimates as of December 2017 2 Against previous estimate as of September 2017 3 Source: Chicago Board of Trade – Index based on closing future prices

LATAM FY2017 & 2018E COMMODITIES EVOLUTION INDEX3

1.4%

2.8%

2.4%

3.1%

2.6%

3.8%

2.0%

1.5%

0.8%

2.9%

2.5%

4.0%

2017 2018

1.7%

2.8%

4.0%

2.5%

3.7%

0.4%

2.1%

3.1%

2.5%

3.5%

2017 2018

GDP GROWTH RATES1 INFLATION RATES COUNTRY Δ2

23.7%

16.7%

WH

EA

T

SO

YB

EA

N O

IL

SO

YB

EA

N

ME

AL

1 Market Review 2017

Argentina Peru Brazil Aquaculture Ecuador Bolivia

Core

Categories

Markets -1.1%

Pasta

Edible Oil

Pasta Market

Area II +1.9%

Consumer Goods

Markets

Personal

Care

Market

~0.0%

Home

Care

Market

+1.8%

Pasta

Market +11.3%

Consumer

Goods

Market +2%

Sauces

Shrimp

Feed +22%

Salmon

Feed +21%

Uncertain political environment in LatAm pushed consumer goods market downwards, causing changes in the consumer´s behavior

Aquaculture

Despite market contraction of the core categories, Alicorp continues to increase market share and market penetration. In the

international front, we see that markets are just beginning to recover

436

[480-490]

FY 2017 2018E

33 [33.5-34-5]

FY 2017 2018E

316

[320-330]

FY 2017 2018E

(Cent/Bu)

(Cent/Pound)

(Dollar/Short Ton)

Evolution FY 2017

60

80

100

120

140

60

80

100

120

140

Evolution FY 2017

60

80

100

120

140

Evolution FY 2017

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1 Area II of Brazil: Minas Gerais, Espirito Santo and Rio de Janeiro suburbs 2 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

Diets 1

Efficiencies

“Implementing an

efficiency-driven

culture across the

organization”

Significant impact in 2017 on

Revenue, COGS and Net

Income

64 22

127 11

20

-10

Gross to Net Manufacturing Procurement Distribution CCC Others FY 2017Savings

Growth

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

Effiencies and People

233 (PEN Million)

REVENUE GROSS PROFIT NET INCOME

3

2

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1 Our 2017 Business Accomplishments aligned with our

Growth Pillar (1/2)

Efficiency

People

CG

P

Innovation / R&D

B2B

Innovation / R&D

New Categories

Canned

Tuna

Region Expansion

Go To Market

FY Results 2017

FY Results 2017

Launches &

Revamped

25 Products

Stain

Remover

Baby &

Kids

Creation of the new

Channel Value

Revenue

Growth +14.4%

Gross

Margin +1.8 p.p

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

~14.0%

~8.0%

~3.0%

EBITDA

Margin +1.4 p.p

Growth

1 Gross Margin: (Revenue – COGS) / Revenue

1

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Efficiency

People

Potential Inorganic Expansion into Bolivia

An

de

an

B

razil

A

qu

ac

ult

ure

Portfolio Optimization

Value-added Products New Markets

Bolivia

Value Segment

FY Results 2017

-0.9% Revenue

Growth

+6.5 p.p Gross

Margin

+2.8 p.p EBITDA

Margin

XX% Market share

+21.6% Revenue

Growth

+3.5 p.p Gross

Margin

+2.1 p.p EBITDA

Margin

FY Results 2017

Nicovita

Finalis

Special

Diets

1 Our 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”

Pasta

“Santa

Amalia”

Pasta

+50 TMk of

production

capacity

Market

Share

Numeric

Distribution

+1.3 p.p

-1.8 p.p

Growth

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




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1 Our 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 Initiatives Implementation

Phase

NE

T I

NC

OM

E (

NI)

R

EV

EN

UE

C

OG

S

SG

&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

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Q&A [ 5 ]

Appendix [ 6 ]

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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

2 Q4 2017 Key Highlights

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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

2 Q4 2017 Operational Highlights

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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

2 Q4 2017 Financial Highlights

III

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

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Topics





Q&A [ 5 ]

Appendix [ 6 ]

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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

3 What to expect for 2018?

60%

35%

5%

55%

30%

15%

PERU AQUACULTURE INTERNATIONAL

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]

2019 2018

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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

3 Consolidated Guidance for FY 2018 under IAS 18 and 39

1 Excludes time deposits with maturity between 90 days and 360 days and mutual funds 2 Excludes excess cash above industry prudent practices standards for operational cash

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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 Rate 6 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 Growth6 GDP 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%

3 Guidance FY 2018 by Business

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Q&A [ 5 ]

Appendix [ 6 ]

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Bolivia is one of the fastest-growing economies in Latin America and the

Andean region

Create a leading integrated Consumer and B2B player in Bolivia

Vertical integration into the oilseeds crushing business is required in the

Bolivian market

Alicorp has the track-record and scale to significantly grow the Consumer

business in Bolivia

Potential sizeable synergy creation opportunity from the integration of Alicorp,

Fino and ADM Bolivia

ADM

Bolivia

1

2

3

4

5

4 Transaction Update – Potential Acquisition in Bolivia (1/3)

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Independent Committee members Transaction approval process

Raimundo

Morales

(special

advisor)

The BoD constituted an ad-hoc Independent Committee to

ensure transparency in the process given the related-party

nature of the potential transaction

The purpose of the Independent Committee is to represent

Alicorp’s shareholders by:

Assessing the terms and conditions of a potential deal

Opining on the proposal

Approving the transaction

The review and approval process proposed by management

has been defined as follows:

1. BoD approval to further advance in the evaluation of the

potential transaction (communicated to the market on

January 15th, 2018)

– Continue due diligence of targets and negotiation of

economic and contractual terms of the transaction

2. BoD to call a General Extraordinary Shareholders’

Meeting for February 22nd (communicated to the market

on January 24th, 2018)

– Presentation of proposed transaction and vote to

approve the delegation of powers to the ad-hoc

Independent Committee for the potential approval of

the transaction

3. Finalization of due diligence process and agreement on

terms and conditions

4. BoD approval of the transaction through the Independent

Committee

Director at Alicorp since March 2008

Vice President in Credicorp’s management team. Acted as CEO of Banco de Crédito – BCP until March 2008

Member of management in firms across various industries MBA from Wharton Business School

Independent Committee members have no economic

or family relationship with members of management

or shareholders of Alicorp

Director of Alicorp since April 2016

Managing Partner at law firm CMS Grau and

professor in Business at Universidad ESAN

Law degree from Universidad Católica del Perú and

Masters in Law from Connecticut School of Law

Juan

Carlos

Escudero

Carlos

Heeren

Aristides

de

Macedo

Director of Alicorp since November 2016

CEO of Universidad de Ingeniería y Tecnología and

director of various firms in the commercial and services

sectors

Bachelor’s degree in Economics from Universidad del

Pacifico and Masters from University of Texas at Austin

Independent Committee external advisors

Director of Alicorp since March 2010

Former President of Kraft Andina until 2009. Prior to

this role, acted as President of Kraft Brazil

Bachelor’s degree in Business Management from

Escuela de Administracion de Sao Paulo


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Process update Due diligence update

Extraordinary General

Shareholders’ Meeting

Ad-hoc Independent

Committee to vote for

the potential approval

of the Transaction

February 22nd, 2018

March 2018

Key upcoming dates

The due diligence process that Alicorp and its advisors are

conducting includes the review and analysis of accounting,

tax, legal and business documentation provided by Fino

Accounting and tax due diligence is led by

PricewaterhouseCoppers (Peru and Bolivia)

Legal due diligence is led by Garrigues (Peru) and

Guevara y Gutiérrez (Bolivia)

Business due diligence is led by McKinsey & Co.

A Virtual Data Room was established and managed by

Fino for Alicorp and its advisors to access documentation

and support information on the company

Alicorp and its advisors have had access to Fino’s

management through a series of live meetings, conference

calls and Questions and Answers’ sessions

Alicorp’s management and the ad-hoc Independent

Committee conducted site visits to Fino’s operations in

Santa Cruz and Cochabamba, and attended a

Management Presentation by Fino’s management

Due diligence process is currently in its final stages

Regarding ADM Bolivia, the Due diligence is still on going,

according to the transaction structure

Currently discussing transaction terms with counterparty

Upon completion of negotiations of transaction terms, the

financial advisors retained by Alicorp and the Independent

Committee are expected to deliver Fairness Opinions


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Q&A [ 5 ]

Appendix [ 6 ]

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Q&A [ 5 ]

Appendix [ 6 ]

Q4 2017 Business &

Operating Review

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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

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.

INNOVATION & POSITIONING

Category Rank1

Edible Oils #1

#1

Pasta #1

#1

Cereals #1

Jelly #1

Laundry

Detergents

Mayonnaise Cookies &

Crackers

Panettone

6 Consumer Goods Peru

1

(PEN Million) (PEN Million)

26

214.25.41

119.16.28

75.23.22

58.58.58

117.117.117

198.198.198

110.174.85

229.149.64


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 INNOVATION Q4 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


27

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198.198.198

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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 INNOVATION Q4 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


28

214.25.41

119.16.28

75.23.22

58.58.58

117.117.117

198.198.198

110.174.85

229.149.64


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

29

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75.23.22

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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 1.00 0.97

3.30

3.19

1.04 1.16

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

30

214.25.41

119.16.28

75.23.22

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117.117.117

198.198.198

110.174.85

229.149.64


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 MARGIN REVENUE & GROSS MARGIN

6 Aquaculture


FY 2017 Performance by

Business

32

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117.117.117

198.198.198

110.174.85

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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

usin

es

s

CG

I

Pe

ru

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

6 Our business plan execution

33

214.25.41

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198.198.198

110.174.85

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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

usin

es

s

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 Algue bloom

- Comercial Conditions

Soles

Revenue Growth

+25.6% - Capture of Market Share

- Revenue Mix

Soles

6 Our business plan execution

Corporate Strategy

35

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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.

6 Gap between the Market and the Fundamental Value of the

Firm

36

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6 Roadmap to Value Creation

NO

PA

T / IN

VE

ST

ED

CA

PIT

AL

NO

PA

T

Inv.

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

uc

tio

n

Retu

rnin

g

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)

Stock Performance

38

214.25.41

119.16.28

75.23.22

58.58.58

117.117.117

198.198.198

110.174.85

229.149.64


0.0 3.0 6.0 9.0 12.0 15.0

40

60

80

100

120

140

160

Jan

-17

Fe

b-1

7

Ma

r-1

7

Ap

r-17

Ma

y-1

7

Jun

-17

Jul-

17

Au

g-1

7

Se

p-1

7

Oct-

17

Nov-1

7

Dec-1

7

Jan

-18

ALICORC1 BVL EPU

Buy 78%

Hold 22%

Current3 Previous2

Research Recommendation Recent Awards

Current Stock Price Consensus vs. Previous ALICORC1, EPU and BVL Benchmark – Feb 15th LTM

Current median: 12.43 Stock price Feb 15th : 11.0 Previous Median: 10.42

16.9%

10.0%

7.3%

31.8%

-5.5%

17.3%

13.6%

12.7%

Current Previous Upside 1

Potential Upside : 2.5% Potential upside : 12.7%

-15.9%

Stock Performance LTM:

ALICORC1: +51.4%

EPU: +26.1%

BVL: +31.4%

Stock Performance. YTD:

(Jan – Feb 15th 2018)

ALICORC1: +4.7%

EPU: +3.5%

BVL: +4.0%

Buy 67%

Hold 33%

1 Potential stock price appreciation against price market as of Feb, 15 (PEN 11.0).

2 As of October 31th 2017.

3 As of February 15th 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.

6 Sell-Side Research Estimates on ALICORC1

“Top 10 – Most

Admired Companies

in Peru”

“Latin America

Executive Team

Rankings”4

Performance by Business

40

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119.16.28

75.23.22

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117.117.117

198.198.198

110.174.85

229.149.64


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

6 Q4 2017 Milestones

41

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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.

6 Q4 2017 Performance by Business Unit & Regions

42

214.25.41

119.16.28

75.23.22

58.58.58

117.117.117

198.198.198

110.174.85

229.149.64


PE

RU

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

Consumer Goods Peru 2015 2016 2017 Variation

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 2017 Variation

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 2017 Variation

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

D

6 Performance by Business Unit & Regions (1)

43

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110.174.85

229.149.64


B2B


Bakery 2015 2016 2017 Variation

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 2017 Variation

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%


Industries 2015 2016 2017 Variation

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%

44

214.25.41

119.16.28

75.23.22

58.58.58

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198.198.198

110.174.85

229.149.64


INT

ER

NA

TIO

NA

L

Consumer Goods Int. 2015 2016 2017 Variation

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 2017 Variation

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 2017 Variation

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%



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AQ

UA

CU

LT

UR

E

Aquaculture 2015 2016 2017 Variation

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

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1 Gross Profit not including industrial depreciation.


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%

6 EBITDA Main Drivers (YoY)

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6 Net Income & Net Margin (%) Evolution

80.2

125.9

15.9

28.7 5.9 5.8 3.7 4.9

Net Income

Q4 16'

Operating Profit Net Financial

Expenses

FX and Rates

Hedging Expenses

FX Exchange

Losses

Other Income Tax Net Income

Q4 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

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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

921 1,333 1,111

872 802 825

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 = = =

6 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% 5.0%

89.5%

5.1% 0.4%

USD PEN BRL ARS

TOTAL

DEBT2

By C

urr

en

cy

3

By S

ou

rce

S/ 1,606 MM S/ 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%

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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: 2.95 December 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

6 ...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

C 603

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

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6 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 EVOLUTION A B

1 Working Capital is defined as the last twelve month (LTM) average of accounts receivable plus average inventory minus average accounts payable

2 Days sales outstanding

3 Average days as a mean of the LTM balance sheet accounts. 4 Cash Conversion Cycle

(Days)

CCC4 28.6 37.4 17.8 7.4

(PEN Million)

WORKING CAPITAL EVOLUTION1

DAYS OF WORKING CAPITAL3 A

36

79

304

751

404

Q4 16' Accounts Receivable Inventories Accounts Payable Q4 17'

Mill

ares

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

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6 Cash Flow Build Up as of Q4 2017

273

1,043

1,082 39

345

165

35 184

102

127

5

184

Net Cash on

Q4 16'

Cash generated

fromoperations

Taxes Other expenses

fromoperations

Investment

Activities

Debt Interest

Payment

Divident

Payment

Other financial

activities

Net Cash on

Q4 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 activities

3 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

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6 OCF & FCF Evolution

1,081 929 882 934

826

2015 2016 2017

Operating Cash Flow Free Cash Flow

2 184

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

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