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ESTRICTAMENTE PRIVADO & CONFIDENCIAL

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Corporate

Presentation

December, 2017

1 1

Disclaimer

This presentation may contain financial or business projections regarding recent acquisitions, their

financial or business impact, management expectations and objectives regarding such acquisitions and

current management expectations on the operating and financial performance of The 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.

Agenda

3 3

Agenda

Guidance for FY 2017

3

4

5 Q3 2017 Business & Operating Review

Q3 2017 Highlights

Macro Outlook 1

2 Strategy Update: Growth

4 4

Agenda


3

4


Q3 2017 Highlights

Macro Outlook 1


5

Macro Outlook (1/3): LatAm Landscape for 17´and 18´ 1

Economic recovery is expected for most economies in LatAm; albeit no sign of superior returns for any

particular region. In Peru, we believe the next 6 months will be key to unlock public investment in order to

spur private consumption

LATAM 2017E & 2018E

1 Median of the research estimates as of September 2017. 2 Versus previous estimate as of June 2017.

3 Implied depreciation based on end of period exchange rates. Median of the research &

company’s estimates as of September 2017. 5

1.9%

3.4%

4.1%

2.7%

4.5%

1.1%

4.1%

3.5%

2.5%

3.7%

2017 2018

0.9%

2.7%

2.2%

2.9%

3.9%

3.8%

0.6%

1.8%

0.6%

2.6%

2.5%

4.0%

2017 2018

Bolivia

Peru

Argentina

Brazil

Chile

Ecuador

INFLATION RATES GDP GROWTH RATES1 Δ2

+95% of our shrimp

feed business is

export-driven

22.2%

15.4%

Δ CURRENCIES3

1.8%

5.0%

1.2%

2.5%

2017 2018

-0.2%

-1.5%

N/A

13.4%

11.9%

N/A

Bolivia and

Peru should

continue to

outperform

the region

Brazil starting

show positive

trends.

Nevertheless,

we might have

to wait until

2019 to see a

full recovery

Argentina

expects a soft

rebound next

year on the

back of pro-

market &

business-

friendly

reforms

6

We are noticing a pick-up in various macro indicators that confirm a recovery in consumption; albeit

recovery is soft and still lagging against other components of GDP

FA

RIN

AC

EO

US

& O

LE

AG

INO

US

(P

ER

U)

SUPPLY VIEW

95

110

125

140

SOYBEAN OIL1

85

90

95

100

105

Oct 17’ YTD Evolution


WHEAT1

80

90

100

110


CRUDE PALM OIL1

1 Macro Outlook (2/3): Top-down drivers for Peru

6

DEMAND VIEW2

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

Q1 16' Q2 16' Q3 16' Q4 16' Q1 17' 2017E

Consumer Basket Food Basket

Private Investment GDP Construction

ECONOMIC INDICATORS EVOLUTION (%)2

1 Chicago Board of trade – Index based on closing future prices.

2 Source: Central Bank (BCRP) & INEI (National institute of statistics & Informatics).

3 For the period 2012 – Q3 17’(21 quarters). 4 According to Kantar World Panel.

Private

Investment

GDP

Construction

Urban

Employment

Exchange Rate

Consumer

Basket4

Food

Basket4

Edible Oils +

Pasta

0.5 0.6 0.7

0.5 0.6 0.5

0.6 0.7 0.7

-0.4 -0.4 -0.6

Correlation

coefficient3

▪ Slight increase in raw material prices for our farinaceous platform (wheat)

▪ Soybean oil price has been stabilizing the past months while crude palm oil price is declining

7

The global aquaculture industry outlook remains positive underpinned by solid S&D fundamentals. With the

"El Niño" phenomenon behind us, we expect steady growth in the upcoming quarters

1 Macro Outlook (3/3): Top-down drivers for Aquaculture

1 Chicago Board of Trade – Index based on closing future prices.

2 Fishmeal, Peru Fishmeal/pellets 65% protein, CIF. Source: World bank.

3 Internal information from official sources. 4 Source: Salmon Farming Industry Handbook 2017 – Marine Harvest & Kontali Analyse . 5 Source: Urner Barry Index.

Oct 17’

Oct 17’

Oct 17’

80

100

120

YTD Evolution

SOYBEAN MEAL1

90

105

120

135

WHEAT1

SUPPLY VIEW

YTD Evolution

FISH MEAL2

80

90

100

110

YTD Evolution

3.0

3.5

4.0

4.5

5.0

5.5

6.0

Price Salmon (USD /lb) Price Shrimp (USD /lb)

1,516 1,644 1,670 1,811

2013 2014 2015 2016

(Thousands of MT)

GLOBAL VIEW

Oct 17’

1,800 2,000 2,100 1,900

2013 2014 2015 2016

SH

RIM

P O

UT

PU

T3

S

AL

MO

N O

UT

PU

T4

7

SH

RIM

P A

ND

SA

LM

ON

2015 2016 2017

INTERNATIONAL PRICES5

CAGR 6.1%

CAGR 1.8%

8 8

Agenda


3

4


Q3 2017 Highlights

Macro Outlook 1


9

2

STRATEGIC PILLARS

1 Excludes commodity hedging and other operating expenses.

People

“One Alicorp” Mindset • Transfer knowledge across the organization

• Leverage corporate capabilities

• Share best practices among business and geographies

Efficiencies

Growth

Gross Profit SG&A1

Revenue Growth EBITDA Growth

6,580 6,629 7,052

2015 2016 2017 LTM

722 802

894

2015 2016 2017 LTM

(PENM)

1,867 2,008

1,069 605

2015 2016 1H17 3T17

28.4% 30.3% 31.3% 33.2%

(PENM)

1,284 1,347

713 381

2015 2016 1H17 3T17

19.5% 20.3% 20.9% 20.9%

(PENM) (PENM)

+1.0 p.p. +2.1 p.p. Savings +0.6 p.p. Savings

20.2% 19.7% Without non-recurring expenses

CAGR 15’-17’: 2.3% CAGR 15’-17’: 7.4%

Gross Margin SG&A / Revenue

We have continued to focus on our three pillars for value creation…

9

10

… allowing us to significantly reduce the gap between the Market and

the Fundamental Value of the Firm … 2

10

Value

Creation:

TSR

1

2

3 4

5

Growth

Efficiencies People

Alicorp

Market Value

Alicorp

Fundamental

Value

Alicorp 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

Fundamental

Value post

internal

initiatives

Alicorp

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.

11

2

11

Source: Bloomberg as of Oct 31. 1

LTM basis. 2

Companies with excess of cash over financial debt.

5,800

3,801

4,975

4,134

920

2,725

Market Cap Revenues1 EBITDA1 Net Debt/EBITDA (USDM)

3,730

3,104

1,703

2,923

1,017

2,102

1,389

593

847

383

319

357

166

263

2.73x

1.47x

5.78x

2.71x

1.61x

0.98x • Profitability

increase and

efficiencies in

working capital

increased Free

Cash Flow

generation and

ROIC levels

• Long-term

leverage should

remain between

2.0x to 2.5x Net

Debt/EBITDA, at

“Investment

Grade” levels

n.a2

n.a2

2.86x

11,013

11,086

10,219

13,953

…while reducing Alicorp’s leverage below that of its median LatAm

consumer player comp set …

12

… and enabling us to boost Total Shareholder Return (TSR) during

the past year 2

1 Source: Bloomberg as of Oct 31.

2 Stock appreciation from Jan-15’ to Oct-17’.

3 Annualized rate. 4 Difference between TSR and Capital appreciation.

5 TSR formula: (Ending Stock Price + Dividend per period – Beginning Stock Price) / Beginning Stock Price.

-

10,000

20,000

30,000

40,000

50,000

60,000

40

80

120

160

Jan

-15

Fe

b-1

5

Ma

r-1

5

Ap

r-15

Ma

y-1

5

Jun

-15

Jul-

15

Au

g-1

5

Se

p-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Fe

b-1

6

Ma

r-1

6

Ap

r-16

Ma

y-1

6

Jun

-16

Jul-

16

Au

g-1

6

Se

p-1

6

Oct-

16

Nov-1

6

Dec-1

6

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

Mill

are

s

ADTV ALICORC1 S&P BVL

ADTV

(PENk)

ALICORC1 vs. S&P BVL Performance1

Total Shareholder Return (TSR) Evolution1

ALICORC1 vs. S&P

BVL appreciation:

+1.56x2

YTD + = 48.4% 2.4% 50.8%

1 Year + = 29.7% 1.8% 31.4%

3 Year + = 9.3% 0.2% 9.5%

5 Year + = 6.6% 0.9% 7.5%

xx3 xx3 4 xx3 5 Cap. appreciation Div. Yield TSR

Alicorp seeks to maximize Shareholder

value by increasing ROIC to boost TSR

Available levers to increase TSR:

• Increase payout ratio

• Distribution of special dividend

• Monetization of non-core assets (BAP

shares, non-operating assets)

12

13

Increased M&A activity in LatAm underpinned by sound financial position of leading players.

There is an on-going regional consolidation, driven by the limited number of "potential targets"

2 Regarding inorganic growth, our M&A strategy takes place in a

dynamic scenario of consolidation in the region…

Multinationals

Mexican Players

Bolivia

Argentina

Chile

Ecuador

Honduras

Nicaragua

Peru

Panama

Colombia

Mexico

Inc. scale Areas II & III

Consolidate market

Increase footprint

Potential M&A workstreams

Guidelines for M&A transactions

Rigorous screening &

approval process – focus on

acquiring businesses that

allow us to replicate our

competitive advantages

(brand management,

distribution, procurement)

Payment of a “Fair Price”

(in terms of EV/ EBITDA) to

secure adequate risk /return

profiles

Ensure adequate integration

through the creation of an

Integration Management

Office (“IMO”)

13

LatAm Players

14

Consumer Goods Peru (CGP) Business to Business (B2B)

Regarding organic growth, we have gained market share in our Peru

Businesses increasing both Volume and Revenue…

Our competitive advantages in Peru allow us to growth even in a challenging environment

2

ALL CATEGORIES (in PEN)

2.1%

4.3%

2.6%

5.6%

Volume Revenue Volume Revenue

CAGR 2014 - 2016 2017 LTM vs. 2016

SHARE GAINING 2014 – 2017 YTD1/2

ALL CATEGORIES (in PEN)

1.9%

1.4%

3.5% 3.6%


CAGR 2014 - 2016 2017 LTM vs. 2016

SHARE GAINING 2014 – 2017 YTD1/3

Edible Oils

Detergents

Pasta

+3.7

+4.2

+4.1

+5.0

+10.6

Bulk Oils

Industrial

Flours

Industrial

Sauces

Canned Tuna

Stain Remover

-1.1

+11.3

+8.7

1 According to internal estimates based on public sources.

2 In terms of Value Share. According to Kantar World Panel & company estimates.

3 Implied Volume Share. Market according to Kantar World Panel & Company estimates.

Brand

Extensions

16’-17’

14

+ 2.4% 17YTD

15

1.8%

8.3%

-3.4% -2.1%


-3.4%

31.3%

-5.7%

8.2%


CONSUMER GOODS INTERNATIONAL AQUACULTURE

…while a good market momentum in Aquaculture is occurring

coupled with a mix performance in our International division

Our international division has been affected by the re-estructuring of our Argentine operation, while the

acquaculture business is in recovery mode after “El Niño” phenomenon during last year

2

HAIR CARE GROWTH (In ARS)1

PASTA GROWTH (In BRL)2

ARGENTINA

BRAZIL

Evolution 2014 - 2016 2017 LTM vs. 2016

SHRIMP (In USD)

Evolution 2014 - 2016 2017 LTM vs. 2016

1

SALMON (In USD)

0.5% 1.3%

18.0% 18.2%


CAGR 2014 - 2016 2017 LTM vs. 2016

-0.4%

2.4%

29.5%

20.1%


CAGR 2014 - 2016 2017 LTM vs. 2016

1 Hair Care represents +35% of the total Revenue from Argentina. 2 Pasta represents ~65% of the total Revenue from Brazil.

Despite this

contraction, we have

improved our

profitability

15

16 16

Agenda


3

4


Q3 2017 Highlights

Macro Outlook 1


17

3 Q3 2017 Key Highlights

74 90

116

157

302

407

4.4% 5.2% 6.4% 2.4% 4.6% 5.8%

Q3 15' Q3 16' Q3 17' FY2015

FY 2016

LTM

223 226 248

722 802

894

13.1% 12.9% 13.6% 11.0% 12.1% 12.7%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

1,699 1,751 1,824

6,580 6,629 7,052

29.5% 30.4% 33.2% 28.4% 30.3% 31.5%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

Total Revenue increased 4.2% YoY

Gross Profit increased 13.6% YoY (+ S/ 72.5 million) while

Gross Margin reached 33.2% (+2.8 p.p.)

EBITDA increased 9.6% YoY (+ S/ 21.8 million) while

EBITDA Margin reached 13.6% (+ 0.7 p.p.)

Net income increased 28.7% YoY (+ S/ 25.9 million) while

Net Margin reached 6.4% (+ 1.2 p.p.)

HIGHLIGHTS

(PEN Million)

REVENUE & GROSS MARGIN

EBITDA & EBITDA MARGIN NET INCOME & NET MARGIN

(PEN Million) (PEN Million)

We continue to grow and improve in margins, although smoother than past quarters. We expect this trend to continue

based on i) the macroeconomic recovery in Peru and ii) our strategic initiatives

39.6% 29.3%

xx Dividend Payout Ratio

17

18

Q3 2017 Operational Highlights 3

Our performance continues to experience steady growth and profitability improvement backed on i) our organic growth

strategy and ii) the results accomplished by our efficiencies initiatives implemented

REVENUE

GROWTH

PR

OF

ITA

LIB

ITY

• Consolidated Revenue grew 4.2% YoY backed on: i) sound results in Consumer Goods Peru due

to our brands strategy and innovation and ii) the good performance of the Aquaculture business

• Gross Margin reached 33.2% (+ 2.8 p.p. YoY) mainly 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 Food Service platform

GROSS

PROFIT

EBITDA

• EBITDA margin reached 13.6% (+ 0.7 p.p. YoY) on the back of a higher Gross Margin contribution

from Peru and the Aquaculture businesses, partially offset by non-recurring expenses associated to

our efficiencies program.

I

II

CONTINUOUS

INNOVATION

• Consumer Goods Peru (“CGP”): In order to maintain our leadership we launched/revamped 8

products, among these, the following can be highlighted: i) pancake premix under the “Blanca Flor”

Megabrand, launching a new line of ready-to-cook products, ii) under the Bolivar brand, we launched

a new laundry care line for Baby clothes “Baby & Kids”, and ii) “Opal Advance”, aiming to strengthen

the brand position in the stain remover detergent

18

19

Q3 2017 Financial Highlights 3

Net income increased 28.7% YoY, boosted by lower Net Financial Expenses

WORKING

CAPITAL

• Net Debt-to-EBITDA ratio decreased to 0.98x as of September 2017 from 1.66x as of December

2016

• Net Debt1 decreased to S/ 877.1 million as of September 2017 from S/ 1,332.9 million as of

December 2016 (a decrease of S/ 455.8 million)

• All-in cost of debt was 7.1% during Q3 17'

• Cash Conversion Cycle, measured in LTM basis, improved to 11.8 days (as of September

2017) from 37.4 days (as of December 2016), mainly due to better commercial conditions with

suppliers and a better inventory rotation

II

NET INCOME

III • Net income reached S/ 116.4 million (+ 28.7% YoY), while Net Margin was 6.4% (+ 1.2 p.p. YoY)

• Lower financial expenses of S/ 21.0 million (- 54.1% YoY), and lower FX exchange losses of S/ 1.8

million (- 45.7% YoY)

• EPS increased to S/ 0.138 as of Q3 17’ from S/ 0.106 as of Q3 16’

CREDIT

RATING

• All credit ratings agencies have reaffirmed the investment grade with a "stable" outlook, both

in Peru (“Apoyo & Asociados” and “PCR”) and internationally (“S&P”, “Fitch and Moody’s”)

• Additionally, on October 2017, Equilibrium – our recent local Credit Rating agency – published an

"AAA” credit rating

IV

FINANCIAL

LEVERAGE

I

1 Net Debt is Financial Debt minus cash and cash equivalents as of Q3 17’. 19

20 20

Agenda


3

4


Q3 2017 Highlights

Macro Outlook 1


21

Consolidated Guidance for FY 2017

FY 2016

0.7%

12.1%

S/123.8M

1.66x NET DEBT-TO-EBITDA

(x)

4.6% NET MARGIN (%)

REVENUE

GROWTH (PEN) (%)

EBITDA MARGIN (%)

CAPEX

4

Given our strong year-to-date performance, both in top and bottom line, we have adjusted upwards our

guidance for 2017 driven by: i) the growth and profitability improvement in Peru due to our efficiencies

initiatives and innovation, and ii) a strong recovery and market growth of the Aquaculture business

• The execution of

Peruvian Government

stimulus package and

Multiannual

Macroeconomic

Framework

• Healthy Nutrition Act

in Peru

• International growth

drivers, especially for

Brazil, and Argentine

restructuring

• FX and commodities

behaviors

Watchouts

21

Previous

Guidance1

5.0% - 7.0%

12.0% - 12.5%

S/150 – 200M

1.00x - 1.20x

5.5% - 5.8%

Q3 Guidance

2017

6.0% - 8.0%

12.25% - 12.75%

S/100 - 150M

0.90x - 1.00x

5.8% - 6.0%

2017

YTD Results

8.8%

12.9%

S/ 64.9M

0.98x

6.2%

1 Previous guidance of Q2 17’.

22 22

Agenda


3

4


Q3 2017 Highlights

Macro Outlook 1


23

Consumer Goods Peru

23

Revenue and Volume increased by 7.8% YoY and 4.5% YoY

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

innovations

Gross Margin increased by 2.7 p.p. YoY explained mainly by Revenue

management, and our efficiencies initiatives

EBITDA reached S/ 140.1 million (+ 19.4% YoY) and EBITDA Margin

increase 1.9 p.p. YoY to 19.7% mainly explained by the increase in Gross

Margin, partially offset by a higher SG&A


117 117 140

393

434

496

18.0% 17.8% 19.7% 16.2% 17.4% 18.8%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

HIGHLIGHTS


5

EBITDA & EBITDA MARGIN

Q3 2017 INSIGHTS

650 658 710

2,424 2,500 2,640

37.1% 38.0% 40.8% 35.6% 38.1% 39.7%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

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 Colors following the next criteria:

INNOVATION & POSITIONING

Laundry

Premixes

Category Rank1

Edible Oils #1

#1

Pasta #1

#1

Cereals #1

Jelly #1

Laundry

Detergents

Mayonnaise

24

B2B

24

Revenue and Volume increased by 5.7% and 4.5% YoY, respectively,

mainly due to the growth of our Food Service platform

Gross Margin increased by 1.7 p.p. YoY due to lower raw material prices

EBITDA reached S/ 52.2 million (+7.3% YoY) and EBITDA Margin

reached 12.4% (+0.2 p.p. YoY)


HIGHLIGHTS

5


PRODUCT INNOVATION Q3 2017 INSIGHTS

394 398 420

1,459 1,512

1,567

22.5% 25.7% 27.4% 21.9% 25.3% 25.4%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

Industrial Sauces


35

49 52

106

168 164

9.0% 12.2% 12.4% 7.3%

11.1% 10.5%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

25

Consumer Goods International

25

Revenue and Volume decreased by 14.8% YoY and 12.5% YoY,

respectively. Revenue in Argentina and Brazil amounted to S/ 97.8 million

(- 19.0% YoY) and S/ 122.7 million (- 10.2% YoY), respectively

Gross Margin increased by 2.9 p.p. YoY, mainly explained by Brazil’s

Gross Margin increase (+ 4.9 p.p. YoY)

EBITDA was S/ - 3.8 million and EBITDA Margin was - 1.4% (- 4.9 p.p.)


HIGHLIGHTS

5


PRODUCT INNOVATION Q3 2017 INSIGHTS

317 312 266

1,280 1,185 1,169

33.2% 32.4% 35.3% 32.3% 32.3% 34.5%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

17 11 -4

75

40

17

5.2% 3.5% -1.4% 5.8% 3.4% 1.5%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM


Tomato Sauce1 Powder

Detergent1

1 Both innovations launched in the Andean Region: A new presentation of the Don Vittorio Tomato Sauce and a new Bolivar formula revamped.

26

Aquaculture

26

Revenue and Volume increased by 11.9% and 21.6% YoY, respectively. Revenue amounted to S/ 427.2

million and Volume reached 121.0 thousand tons.

Gross Margin increased by 4.3p.p. YoY to 25.0%, mainly due to lower raw material prices

EBITDA reached S/ 70.8 million (+ 28.4% YoY) and EBITDA Margin reached 16.6% (+ 2.1 p.p.), mainly

explained by a higher Gross Margin


HIGHLIGHTS

5


Q3 2017 INSIGHTS

337 382 427

1,418 1,430

1,677

19.6% 20.7%

25.0% 19.2% 20.2% 22.1%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM

47 55

71

191 181

242

13.8% 14.4% 16.6% 13.5% 12.7% 14.4%

Q3 15' Q3 16' Q3 17' FY2015

FY2016

LTM


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