Corporate Presentation November 2017

Company Overview

Established in Peru in 1922

90+ years of business, 70+ years of alliance with CAT currently operating 17 companies within 10 countries employing a workforce of +6,000 employees

Key facts 60% Caterpillar Market Share Market cap (Sep-2017) ~$790MM Shareholders +2,500

HIGHLIGHTS

SHAREHOLDER

STRUCTURE

Local pension funds 27%

Peruvian investors

33%

Foreign investors

40%

CONSISTET FINANCIAL

PERFORMANCE

5,225 4,878

5,333 4,856 4,742

588 522 667 583 566

11.3% 10.7%

12.5% 12.0% 11.9%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

2013 2014 2015 2016 Sep 17 LTM

Sales EBITDA EBITDA Margin

(S/. Million)

HISTORY OF THE CORPORATION

40’s

Caterpillar

1920 1930 1940

1950

1970

1980

1990

2000

2017

2010

1960

1922

Ferreycorp foundation

(former Ferreyros

S.A.A.)

50’s Geographical

expansion:

establishment of

branches in Peru

60’s Development of

complementary

businesses

70’s Move

operations to Av

Industrial

facilities

80’s Redefining

business: focus on

capital goods

90’s Organizational

development to take

opportunities arising

from large mining

00’s Complementary

businesses (economic

sectors, business

lines)

10’s International

expansion: CAT and

other brands

60’s

Registry in Lima

Stock Exchange

90’s

Debt Issuance:

corporate bonds

and securitization

of commercial

papers

00’s

Establishment of

policies and

procedures

regarding

corporate

governance

10’s

Shares issuance

Bonds issuance in the

international market

Reorganization: Ferreycorp

Caterpillar dealers and allied

brands in Peru

Guatemala

El Salvador

Belice

Caterpillar dealers and other businesses

in Central America

El Salvador, Honduras

Nicaragua

Chile, Colombia , Ecuador, Perú

Other subsidiaries in Peru and

abroad

CORPORATE STRUCTURE BVL: FERREYC1

Caterpillar dealers and

allied brands in Peru

Caterpillar dealers and other

businesses in Central America

Other subsidiaries in

Peru and abroad

FERREYCORP AT A GLANCE

Sales

% of Total Sales

EBITDA

% of Total EBITDA

EBITDA Margin

# of Employees

As of Sep 2017

(S/. Million)

2,711 332 594

75% 9% 16%

348 32 18

87% 8% 5%

13% 10% 3%

4,208 835 1,162

(*) Third group of companies increasing their share in total sales: 2013 (10%), 2014 (11%), 2015

(12%), 2016 (15%) – as a result of diversification strategy through complementary businesses

STRATEGY COMPLETE VALUE PROPOSITION

Machinery

Agriculture business

Automotive business

Consumables

Services

Key Capabilities

KEY CAPABILITIES

Long term strategic partnerships

Market coverage

Unmatched supply chain and logistics

capabilities

Financial strength and funding sources

In-depth market knowledge

Innovation and Technology

Ethics and compliance, Corporate

Governance and Sustainability

PRESENCE IN SOUTH AND CENTRAL AMERICA REPRESENTING LEADER BRANDS

Tumbes

Piura

Lambayeque Cajamarca

Bagua

Iquitos

Trujillo

Huaraz Chimbote

Lima

Ica

Puno

Puerto Maldonado

Ayacucho

Cusco

Pucallpa

Tarapoto

Arequipa

Huancayo

Cerro de Pasco

Talara

Tacna

Huánuco

Ferreyros: 6 locations in Lima, 17 branches and

offices

Unimaq: main location in Lima and 8 branches in

Piura, Cajamarca, Lambayeque, Trujillo,

Huancayo, Arequipa, Cusco e Ilo. 3 Offices in

Cerro de Pasco, Andahuaylas and Ayacucho

Orvisa: main office in Iquitos and 2 branches in

Pucallpa and Tarapoto. 4 Offices in Huánuco,

Bagua, Jaén and Madre de Dios

Motored: 2 locations in Lima and 3 branches in

Arequipa, Trujillo and Cajamarca

Soltrak: main location in Lima and 7 branches in

Talara, Trujillo, Arequipa, Huancayo, Huánuco,

Pucallpa and Loreto

MINING, CONSTRUCTION AND ENERGY PROJECTS

Ilo

Trompeteros

Yauli

Jaén

MARKET COVERAGE

UNMATCHED LOGISTICS CAPABILITIES

• 50+ warehouses, several located in remote locations (eg:

mines)

• 7,000 yearly trips to reach our customers

• Importing 530,000 ft3 per month

• Highest standards in operations and transportation partners

• ISO9002 certification

• ISO 14000 certification

• 5-star contamination control

365 DAYS 24x7 OPERATIONS

890,000 m2 TO SERVE OUR CUSTOMERS

170+ POINTS OF CONTACT

US$120M INVENTORY OF PARTS

INNOVATION AND TECHNOLOGY

Innovative customer solutions

E-commerce

Performance solutions: condition monitoring

CRM: follow business opportunities and increase customer coverage

Processes and systems: SAP platform

Design Thinking

SUSTAINABILITY STAKEHOLDERS

Ferreycorp Association

“Operadores de equipo pesado Ferreyros” Club

Think Big Program

“Jóvenes con Futuro” Program

Tax works

Corporate volunteering

Long-term relations with mutual benefit

Products and services of high quality, specialized

attention by sectors

Continuous monitoring of Customer’s Satisfaction and

Complaint Management

Marketing and trade policy

Sustainability Report

Global Compact Progress Report

Socially Responsible Company

Recruitment policy: transparency and equal treatment

Preference for suppliers based on: quality of product

or service, price, delivery terms, treatment of staff,

implementation of security programs.

ABE diffusion between suppliers

Drivers' committee that shares good practices

Community

Customers

Government

and society

Suppliers

Environment

Collaborators

Shareholders

Environmental management system based on ISO

14001

Environmental Management Programs: planning,

training and awareness, operational control and

verification.

Measuring Carbon Footprint

Health care, safety and working conditions

Training and professional development

Appreciation and respect for diversity

Labor Inclusion Program

Personal and family development

Principles of Good Corporate Governance

Respect of Shareholders’ rights

Transparent and timely reporting

Efficient representation with our Board of Directors

CORPORATE STANDARDS STRONG 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 inception in 2008.

Board of Directors:

• The last General Annual Meeting agreed to reduce the board

members from 10 to 9 members.

• The Board of Directors of Ferreycorp is complemented by three

committees: 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 and 2017.

• 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

Boardroom Corporate Governance Awards 2015: South America,

Industrial services sector

Financial

Performance

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD'16 YTD'17

US

$ M

illio

n

SUSTAINABLE BUSINESS MODEL

SALES BY LINE OF BUSINESS

-

34%

48%

9%

9%

49%

33%

6%

11%

US$1.9Bn

US$1.7Bn US$1.6Bn

US$1.4Bn

US$1.1Bn US$1.1Bn

40%

44%

7%

9% Machinery

Spare parts and services

Rental and used

Others

• In a context of poor momentum in mining

investment and delayed infrastructure

projects

• Resilient business model

• Stable product support business

• Diversification strategy through business

lines, presence in different economic

sectors, different countries, various

represented brands and a diversified

portfolio of products.

955 382 574 539

1,088

1,074 1,045

704

568

587 667

564

514

515 466

359

0

500

1000

1500

2000

2500

3000

2013 2014 2015 2016

CAT Mining trucks and equipment CAT machines and engines for other sectors

Allied Equipment Rental and used

2,752

2,166

OPERATIONAL RESULTS

500 294

119 134

569

480

195 148

419

472

156 147

261

307

91 104

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

YTD'16 YTD'17 Q3'16 Q3'17

1,749

1,553

561 533

1,714 1,935

2,203 2,247

0

500

1000

1500

2000

2500

2013 2014 2015 2016

1,659 1,756

564 592

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

YTD'16 YTD'17 Q3'16 Q3'17

385 384 378 444

0

100

200

300

400

500

600

700

800

900

1000

2013 2014 2015 2016

340 326

117 111 0

100

200

300

400

500

600

700

800

900

1000

YTD'16 YTD'17 Q3'16 Q3'17

MACHINERY

SPARE PARTS

AND SERVICES

OTHER LINES

3,125

2,558

Million Soles (S/ mm)

-4.9%

-11.2%

+4.9%

+5.9%

-5.5%

-4.0%

SALES BY GROUP OF COMPANIES

926 940

2,867 2,710

24.3% 24.8% 24.6% 24.8%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Q3'16 Q3'17 YTD'16 YTD'17

Gross Margin

115 97

340 332

24.5% 25.6% 25.8% 25.2% 0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

Q3'16 Q3'17 YTD'16 YTD'17

Gross Margin

-15.6%

202 198

543 594

16.5% 15.8% 18.9% 18.0% 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Q3'16 Q3'17 YTD'16 YTD'17

Gross Margin

Million Soles (S/ mm)

+1.5% -1.9%

CAT dealers and allied brands in Peru

CAT dealers and other businesses in CA

Other subsidiaries in Peru and abroad

• Caterpillar dealers in Peru (76% of total sales): +1.5% driven by

spare parts and services (56% of total revenues) and Ferreyros

mining equipment (+12%)

• The companies that carry Caterpillar business and other allied lines

in Central America (8% of total sales): -15.6% affected by less

activity in economic sectors driven by political issues

• The local subsidiaries and businesses abroad that complement the

Caterpillar’s business (16% of total revenues): -1.9%

-5.5%%

-2.3%%

+9.3%

19

SALES AND GROSS MARGIN

NET PROFIT AND NET MARGIN EBITDA AND EBITDA MARGIN

CONSOLIDATED FINANCIAL RESULTS

5,225 4,878

5,333 4,856

3,751 3,637

21.2% 22.9% 24.2% 24.3% 23.9% 23.7%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2013 2014 2015 2016 YTD'16 YTD'17

100 92

161

230

164

211

1.9% 1.9% 3.0%

4.7% 4.4% 5.8%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

2013 2014 2015 2016 YTD'16 YTD'17

588 522

667

583

450 433

11.20% 10.70% 12.50% 12% 12.00% 12%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

100

200

300

400

500

600

700

800

2013 2014 2015 2016 YTD'16 YTD'17

HIGHLIGHTS

Million Soles (S/ mm)

-3.0%

+28.6% -3.7%

• Resilient business model

• Successful execution of operational priorities

• Consistent EBITDA generation and margin

• Strong free cash flow generation

INVESTMENT IN ASSETS

• Common practice, 30days for collection once invoice is delivered

to customer.

• Accounts receivables affected by mining equipment invoicing

during the second quarter.

ACCOUNTS RECEIVABLES EVOLUTION

826 889 957 1,080 1,152 1,099

36 31

48

45 36 93

0

200

400

600

800

1,000

1,200

2013 2014 2015 2016 YTD'16 YTD'17

+0.3%

1,188 1,192

1,160 1,101 920

747 794 753

371 402

389

382 375 415

49 58

70

104 89 92

0

200

400

600

800

1,000

1,200

1,400

1,600

2013 2014 2015 2016 YTD'16 YTD'17

1,580 1,561

1,379

1,233 1,258 1,260

Million Soles (S/ mm)

862 920

1,005 1,125

+0.2%

INVENTORY EVOLUTION

CAPEX EVOLUTION

• YTD’17 CAPEX: infrastructure and equipment executed in the

new CRC in Arequipa. Offset by the sale and lease back of

Motored facility

• 2016 CAPEX results negative due to the reduction of the rental

fleet. Infrastructure includes mainly the purchase of a piece of

land in La Joya (Arequipa) by Ferreyros and works that are being

executed in some subsidiaries.

16 11

28 17 17

19 15

3

5 5

9

-3 -1

-33

-9

-35

-25

-15

-5

5

15

25

35

45

2013 2014 2015 2016 YTD'17

Infrastructure Equipment and components Rental fleet

~ S/ 44mm

INVESTMENT IN ASSETS Million Dollars (US$ mm)

44

23 30

-11 13

CASH CYCLE

Targets:

Inventory Payable Receivables

120 days 45 days 45-60 days

3.0x

152 148 148 145 152

72 67

73 70 77

46 47 53 54 51

126 128 127 128 126

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

Cash cycle Collection days Payable days Inventory days

CASH FLOW BREAKDOWN

313

86

31

56

139

Operating cashflow

Capex Intangible assets Financialexpenses

Free cash flowYTD'17

23

Million Soles (S/ mm)

FREE CASH FLOW

86

47 51 9

29

44

Capex Motoredfacilities op

lease

Net transfersmach andrental fleet

Dep of sales Otherdeductions

Capex

FCF CAPEX DETAIL

Positive variations Negative variations

129

398

85

86

31 18 6

56

124

3

171

Startingcash

balanceQ4'16

Operatingcash flow

Taxes CAPEX Intangibleacquisition

Sharesbuyback

Debt Interestspayed

Dividendspayed

Otherfinancingactivities

(*)

Endingcash

balanceQ2'17

Operating Cash Flow

S/ 313

Cash used in Investing

activities S/ -99 Cash flow from financing

activities S/ -174

236 222 201 307 274 298

325 295 295 161

161 161

170 123

93 53 104 83

3.28 3.50 2.67 2.86 2.76 2.83

-20.00

-15.00

-10.00

-5.00

0.00

0

100

200

300

400

500

600

700

800

2013 2014 2015 2016 YTD'16 YTD'17

Banks Bonds Caterpillar Net Debt/ Ebitda

731

640 589

521 539 542

CONSOLIDATED FINANCIAL DEBT Million Dollars(S/ mm)

DIVERSIFIED FUNDING BASE

DEBT BY CURRENCY

1%

99%

Variable rate

Fixed rate

DEBT BY RATE

9% 2%

0%

89%

Soles

Quetzales

Pesos Chilenos

Dolares

• Natural hedge: revenue-debt

DEBT MATURITY

FINANCIAL EXPENSES

AVG COST OF DEBT

• Strategy of financing: short term, flexible without penalties and

low interest rate. Availability of credit lines

4.40% 4.36%

4.65%

4.12%

3.50%

2013 2014 2015 2016 YTD'17

103 97

106

125

90

58

2.0% 1.9% 2.0% 2.60% 2.40%

1.60% 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

2013 2014 2015 2016 YTD'16 YTD'17

Financial expenses Financial expenses (as % of total sales)

• 2016: Financial expenses increased due to S/ 14 million

premium payed for the International BondTender Offer

CONSOLIDATED FINANCIAL DEBT Million Dollars(S/ mm)

Million Soles S/ mm)

211

104

30

197

7 64

2017 2018 2019 2020 2021 2022

PROFITABILITY RATIOS

• ROIC: EBITLTM / Invested Capital (total equity + financial net debt): affected by sales

that decreased by 4.2% and SG&A by 2%

13.2% 13.5%

11.8% 12.2%

11.9%

12.8%

14.6%

8.1% 7.7%

7.1% 6.3%

5.5% 6.1% 6.2%

16.0%

14.3%

13.2%

11.9% 10.8%

11.5% 11.6%

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

ROE ROA ROIC

SHAREHOLDERS COMPOSITION AS OF SEPT 2017

STOCK PERFORMANCE 2016-2017 (S/.)

FERREYCORP IN THE CAPITAL MARKET

Nº of shares

Capital

1’014,326,324

S/. 1’014,326,324

MAIN SHAREHOLDERS AS OF SEPT 17

Dividend Yield 2016 (div 0.128457) 7.6%

Repurchased shares as of June 2017 43’145,669

Holder %

Onyx Latin America Equity Fund LP 7.92%

RI-Fondo 2 (Prima AFP) 7.34%

La Positiva Vida Seguros y Reaseguros S.A 7.03%

Equinox Partners LP 5.60%

IN-Fondo 2 (AFP Integra) 5.05%

RI-Fondo 3 (Prima AFP) 4.30%

Kuroto Fund 4.28%

Local pension funds 27%

Peruvian investors

33%

Foreign investors

40%

1

1.3

1.6

1.9

2.2

2.5

2.8

15

/01

/20

15

12

/02

/20

15

12

/03

/20

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09

/04

/20

15

07

/05

/20

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04

/06

/20

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02

/07

/20

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30

/07

/20

15

27

/08

/20

15

24

/09

/20

15

22

/10

/20

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19

/11

/20

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17

/12

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14

/01

/20

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/02

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/10

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17

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/10

/20

17

DIVIDEND POLICY ANNUAL 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 amount to be distributed every year is approved in the Annual Shareholders Meeting.

The 2013 Shareholders Meeting approved to increase the upper limit from 50% to 60% of freely available profits.

Period Cash dividend (*)

%

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 (*) In million (**) Upper Limit: 60%