CORPORATE PRESENTATION TRADING CORPORATE FINANCE EQU I TY RESEARCH ASSET MANAGEMENT March 2012
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KALLPA SECURITIES SAB June October 2008 2008 2008 TODAY Inception Beginning gof operations Over 2,200 clients, 29 employees, Peruvian, US and Canadian trading platforms KALLPA SECURITIES S.A.B is an investment boutique : o o o o Equityand Fixed Income Sl Sales &Trading Capital Markets Investment Banking Portfolio Management Partners of KALLPA SECURITIES S.A.B: o Alberto Arispe: o Enrique Hernández: o Ricardo Carrión: o Elizabeth Cueva: MBA with 8 years experience in investment banking in New York. Former CEO, director and business manager of several SABs in Peru. Outstanding professional, emphasis on capital markets and corporate finance. MBA with 16 years of operational experience in SABs in Peru. o Pablo Berckholtz: Lawyer, company director, partner in Echecopar s Law Firm, an expert in finance. 3
KALLPA SECURITIES SAB Mission To contribute actively to the development of Peruvian capital markets, providing diverse financial services, including securities brokerage, portfolio management, financial advisory, corporate finance and other services related to investment banking Vision To become leader in all financial services provided by the company, always achieving customer s satisfaction and supporting them to reach an optimum asset allocation 4
BUSINESS UNITS KALLPA Securities S.A.B has three business units: Sales & Trading Corporate Finance and Capital Markets Investment Analysis Equity Research. Portfolio Management. Purchase / Sales of securities to institutional investors in Peru and abroad. Purchase / Sales of securities to retail investors in Peru and abroad. Placement of equities / bonds in primary markets. Repurchase of equities in the secondary market. Arranger of Capital Markets products (commercial papers, bonds and equity instruments). Consulting and advisory in Capital Markets (Listing in stock exchanges, stocks buyouts). Business Analysis and Enterprise Valuation. Advising dii on M&A. Financial Consulting. Focus on Investment Banking activities iii and Corporate Finance. 5
BUSINESS UNITS Also, KALLPA SAB has recently launched its Asset Management business. Wb Web Page Personal Finance Institutional Portfolio Standard Serv vice Standard Advisory Enterprise Analysis Portfolio Manager Letters Technical Analysis Model Portfolios Asset Management Discretionary Portfolios Global Portfolios Detailed monthly reports Training (loyalty) Institutional Advisory Advice on the portfolio managers election Review and evaluation of current portfolios Presence in Committee and Board of Directors Premium Advisory Wealth Management Institutional Asset Mgmt Prem mium Service Intra Day Technical Analysis Stock Carpet Analysis through Video Monthly Conference Calls Financial Planning: Applicative sheets Integral Financial Planning Investments Advisory in real and financial sectors Advice on the portfolio managers election Trust Management for private persons Family Office Discretionary investments Portfolio Structure Trust Management Detailed monthly reports for the Manager Training in investments Presence in Committee and Board of Directors 6
RANKING SABS PERU 2011 VOLUME TRADED IN LSE (S/.) January 2 to March 30, 2012 Market share 1 CREDIBOLSA S.A.B. 1,469,307,784 22.72 % 2 CONTINENTAL BOLSA S.A.B. 868,248,021 13.42 % 3 CELFIN CAPITALS S.A.B. 684,669,418669 418 10.59 % 4 S.A.B. SEMINARIO & CIA. 607,644,914 9.39 % 5 INTELIGO 475,708,084 7.35 % 6 LARRAIN VIAL S.A.B. 469,035,994 7.25 % 7 SCOTIA BOLSA S.A.B. 358,120,917, 5.54 % 8 KALLPA SECURITIES SAB 283,261,512 4.38 % 9 GRUPO CORIL S.A.B. 171,747,124 2.66 % 10 NCF SAB S.A. 171,209,774 2.65 % 11 INVESTA S.A.B. 128,505,054 1.99 % 12 INVERSION Y DESAR. S.A.B. 126,639,929 1.96 % 13 COMPASS GROUP S.A.B. 125,600,971 1.94 % 14 MGS & ASOC. S.A.B. 112,105,702 1.73 % 15 ANDES SECURITIES S.A.B. 97,389,409 1.51 % 16 SAB S.A.B. CARTISA PERU 95,413,821 148 1.48 % 17 MAGOT & ASOC. S.A.B. 80,650,135 1.25 % 18 GRUPO PRIVADO S.A.B. 56,234,118 0.87 % 19 PROVALOR S.A.B. 31,074,057 0.48 % 20 MBA LAZARD S.A.B. 28,252,225 0.44 % 21 LATINOAMERICANA S.A.B. 18,526,920 0.29 % 22 BNB VALORES PERU SOLFIN S.A.B. 4,437,533 0.07 % 23 TRADEK S.A. S.A.B. 4,107,791 0.06 % 24 INTERCAPITAL S.A.B. 182,733 0.00 % * Source: SMV 6,468,073,940 7
KALLPA SAB Sustained Growth 2008 2011 VolumenTraded in LSE (S/.) Monto Negociado 2008 (S/.) 1 CREDIBOLSA SAB 5,884,277,211,, 2 SCOTIA BOLSA SAB 5,293,950,346 3 CONTINENTAL BOLSA SAB 4,199,061,687 4 SAB SEMINARIO & CIA. 3,251,061,826 5 INVESTA SAB 1,001,733,993 6 MGS & ASOC. SAB 910,610,893 7 ANDES SECURITIES SAB 710,055,209 8 SAB CARTISA PERU 579,689,261 9 MAGOT & ASOC. SAB 522,289,241 10 INVERSION Y DESAR. SAB 513,307,899, 11 GRUPO CORIL SAB 300,654,998 12 PROVALOR SAB 138,802,316 13 LATINOAMERICANA SAB 84,744,203 14 KALLPA SECURITIES SAB 27,351,754 15 CITICORP PERU SAB 25,498,119 16 INTERCAPITAL SAB 15,250,755 17 COMPASS GROUP SAB 12,376,685 18 CELFIN CAPITAL SAB 67,928 23,470,784,324,, * Source: SMV Monto Negociado 2009 (S/.) 1 CREDIBOLSA SAB 5,881,045,853 2 CONTINENTAL BOLSA SAB 5,666,432,143 3 SAB SEMINARIO & CIA. 2,034,175,305 4 SCOTIA BOLSA SAB 1,838,393,638 5 INVESTA SAB 631,634,470 6 MGS & ASOC. SAB 610,428,250 250 7 MAGOT & ASOC. SAB 572,703,394 8 INVERSION Y DESAR. SAB 494,560,519 9 ANDES SECURITIES SAB 471,125,364 10 CELFIN CAPITAL SAB 460,599,596 11 SAB CARTISA PERU 331,674,199 12 COMPASS GROUP SAB 327,414,072 13 KALLPA SECURITIES SAB 303,109,118 14 GRUPO CORIL SAB 279,326,551 15 INTELIGO 244,750,795 795 16 PROVALOR SAB 102,428,479 17 LATINOAMERICANA SAB 101,592,135 18 CITICORP PERU SAB 31,305,194 19 GRUPO PRIVADO SAB 15,255,340 20 INTERCAPITAL SAB 11,886,504 20,409,840,919 Monto Negociado 2010 (S/.) 1 INTELIGO 5,334,644,761 2 CONTINENTAL BOLSA SAB 4,983,156,357 3 CREDIBOLSA SAB 4,471,840,303 4 SCOTIA BOLSA SAB 2,826,675,081 5 SAB SEMINARIO & CIA. 2,312,067,162 6 CELFIN CAPITAL SAB 2,013,645,009 009 7 CITICORP PERU SAB 1,366,329,626 8 MGS & ASOC. SAB 1,042,057,908 9 INVESTA SAB 556,992,295 10 COMPASS GROUP SAB 483,977,790 11 KALLPA SECURITIES SAB 452,072,231 12 ANDES SECURITIES SAB 399,516,208 13 INVERSION Y DESAR. SAB 361,001,164 14 GRUPO PRIVADO SAB 345,961,736 15 MAGOT & ASOC. SAB 341,635,925 16 PROVALOR SAB 306,721,436 17 SAB CARTISA PERU 296,596,319 18 GRUPO CORIL SAB 286,232,782 19 LATINOAMERICANA SAB 74,281,533 20 NCF SAB S.A. 24,141,344 21 TRADEK S.A. SAB 11,557,152 22 INTERCAPITAL SAB 4,899,631 23 BNB VALORES PERU SOLFIN 3,857,487 28,299,861,240 Monto Negociado 2011 Ene/Dic (S/.) 1 CREDIBOLSA SAB 9,794,664,061 2 INTELIGO 4,564,825,677 3 CELFIN CAPITAL SAB 3,434,310,641 4 CONTINENTAL BOLSA SAB 3,061,688,034 5 S.A.B. SEMINARIO & CIA. 2,782,669,422 6 SCOTIA BOLSA SAB 2,488,327,158 7 CITICORP PERU SAB 1,319,195,407 8 KALLPA SECURITIES SAB 1,041,778,183 9 INVESTA SAB 774,042,200 10 LARRAIN VIAL SAB 719,529,855 11 GRUPO CORIL SAB 702,455,653 12 INVERSION Y DESAR. SAB 615,532,955 13 MGS & ASOC. SAB 589,563,765 14 COMPASS GROUP SAB 576,711,984 15 ANDES SECURITIES SAB 555,933,593 16 SAB S.A.B. CARTISA PERU 427,004,812 17 MAGOT & ASOC. SAB 372,830,521 18 NCF SAB S.A. 197,279,322 19 GRUPO PRIVADO SAB 189,997,301 20 PROVALOR SAB 138,384,313 21 LATINOAMERICANA SAB 98,931,481931 22 BNB VALORES PERU SOLFIN 21,929,424 23 TRADEK S.A. SAB 12,036,824 24 INTERCAPITAL SAB 5,687,221 25 MBA LAZARD SAB 1,667,731 34,486,977,538
KALLPA SAB Total Volume Traded Trading Abroad represents, in average, 30% of Volume Traded. 9
KALLPA SAB Assets in our Custody Million (US$) $180 $160 $140 $120 $100 $80 $60 Assets in our Custody $ 160.77 $ 146.70 $ 124.29 Client s assets include equities, bonds and cash. $40 $ 27.94 $20 $ 4.04 $0 * Value to 20 04 2012 * 10
KALLPA SAB S S GROWTH IN THE MARKET 2008 20112011 Volume traded in Lima Stock Exchange Million (S/.) Kallpa SAB grew of the position 14 of 18 SABs in 2008 to the position 8 of S/. 1,000.00 S/. 900.00 25 SABs in Volume Negotiated in the BVL at S/. 800.00 the conclusion of 2011 S/. 700.00 S/. 1,041.78 S/. 600.00 18% of our volume S/. 500.00 corresponds to institutional investors S/. 400.00 82% of our volume correspondsto retail investors S/. 300.00 S/. 200.00 S/. 100.00 S/. 138.80 S/. 303.11 S/. 452.07 S/. ** Source: SMV 11
RETURN ON EQUITY (ROE) 2011 4.73% INVESTA S.A.B. 4.98% INTELIGO S.A.B. SAB 8.47% 9.77% 15.57% 15.94% 16.35% 19.51% CELFIN CAPIITAL S.A.B SCOTIA S.A.B. SEMINARIO Y CIA S.A.B. COMPASS GROUP S.A.B. INVERSION Y DESARROLLO CONTINENTAL BOLSA S.A.B 23.96% GRUPO CORIL S.A.B. 34.75% CREDIBOLSA S.A.B. 45.11% KALLPASECURITIES S.A.B. Source: SMV 12
KALLPA SAB RETURNS (2008 2011) 2011) Historical ROEs Kallpa SABs ROE grew from 3% in 2008 to 45% in 2011. 70.00% Return on Equity Kallpa SAB 63.05% 60.00% 50.00% 45.11% ROE (%) 40.00% 33.54% 30.00% 20.00% 10.00% 0.00% 10.00% 2.96% 2008 2009 2010 2011 13
COMPETITIVE ADVANTAGES Kallpa Securities SAB's success in recent years is due to: It is one of the few brokerage whose shareholders are managers of the company. Independent d brokerage house, untied toanybusinessgroup. One of the few brokerage houses with an equity research department and only brokerage withequity Research of junior mining companies. OneofthefewSABswithadivisiondedicated exclusively to capital market deals, specialized in valuation, and financial advisory. Kallpa Securities is sponsor of 9 out of 15 junior mining companies listed in the Venture Exchange of the Lima Stock Exchange. 14
KALLPA SAB Equity Research Coverage in 2011 Kallpa s Equity Research Team has initiated coverage of the following companies VOLCABC1 SCCO RIO RELAPAC1 CVERDEC1 BAP MIRL CREDITC1 ALICORC1 BROCALC1 BVN MPLE AIH PML Av. La Encalada 1388 Of. 802 Surco Phone: (511) 630 7500 Fax: (511) 628 9471 Web Site: www.kallpasab.com Email: contacto@kallpasab.com 15
KALLPA SAB Primary Offerings Kallpa Securities is the leader in equity primary private placements among junior mining companies in Peru. In 2010 2011 2011 Kallpa SAB placed US$ 70 mn among Peruvian investors. 16
KALLPA SAB Achievements Kallpa Securities SAB is sponsor /advisor of 12 mining companies that list in LSE. 17
ORGANIZATION CHART CEO Controller Managing Director Sales & Trading Managing Director Capital Markets COO Equity Portfolio Research Management Operations Trading Desk Miraflores Sales desk Chacarilla Sales desc Accounting IT Administration 18
TEAM Trading Sales Research and Investments Operations Enrique Hernández Daniel Berger Alberto Arispe Elizabeth Cueva Eduardo d Fernandini i José Avendaño Ricardo Carrión Alan Noa Javier Frisancho Jorge Rodriguez Hernando Pastor María Belén Vega Marco Contreras Armando Trujillo Mariano Bazán Alex Rodriguez 19
CORPORATE HEADQUARTERS Kallpa s offices are located in POLO HUNT 1 BUSINESS CENTER La Encalada Avenue 1388, office 802, Lima, Peru. 20
WEB SITE www.kallpasab.com Information about products and services are available at our website. People interested may find regular reports about market strategy and equity valuation reports. 21
LONG TERM VIEW June 2008 TODAY Long Term Brokerage Firm Brokerage House Brokerage House Investment tb Banking Asset Management Asset tm Management Pi Private Banking 22
MANAGEMENT Managing Director CEO Alberto Arispe Education MBA Stern School of Business from New York University. Bachelors degree in Economics from Pontificia Universidad Católica del Perú. Professional Experience Former Managing Director at Bolsa de Valores de Lima Former Vice President of Emerging Markets at Fox Pitt, Kelton Inc, based in New York (2000 2005). Former investment banking analyst at Macro Group (1995 1998). 1998) Others Professor of Capital Markets at Universidad de Lima s Business School. Offerings of equitiesin New York, Hong Kong, Jakarta and Tokyo. Deals: Ping Insurance Company, China life Insurance, Shinsei Bank, BRI Bank of Indonesia and Bank of Mandiri. Active participant of many valuations: Cementos Lima, Cementos Norte Pacasmayo, Luz del Sur, Edelnor, Ceper, Indeco, Banco República, Credicorp, Banorte, Kookmin Bank, BRI Bank of Idonesia. 23
MANAGEMENT Managing Director Capital Market & Corporate Finance Ricardo Carrion Education Bachelors degree in Business Administration from Universidad de Lima with specialization in Finance and Capital Markets. Professional Experience Former Senior Analyst of Banco de Credito in the areas of Corporate Banking, Corporate Finance and Capital Markets. Member of the team in charge of several Capital Market s deals, acquiring experience in almost all kind of debt/equity products, including commercial papers, financial notes, Corporate Bonds, Subordinated bonds, Mortgage Bonds, Leasing Bonds, Asset Backed Bonds, IPOs. Former advisor of Lima s Stock Exchange in terms of Capital Markets. Relevant Experience prior to KALLPA: Oil & Natural Gas (Upstream phase for Camisea Project): Structuring a US$150 MM Bond program with an ABS scheme for Hunt Oil Company of Peru LLC. Power Transmission Industry: Structuring of Red de Energía del Perú s Second Bond Program up to US$150 000,000. Power Generation Industry: Structuring of public IPO up to US$ 60 MM in the Power Generation Industry for ENERSUR (first public IPO in Peruvian market ktafter 7 years). Issue awarded dd as"latin America Oil & Gas Deal of the Year 2004" by the British magazine Project Finance Magazine (March 2005 edition). Oil & Natural Gas (Transportation phase for Camisea Project): Structuring TGP s Corporate Bond Program up to US$350 000,000 (milestone in Peruvian Capital Market: Largest issuance and longest tenor ever placed in Peru). Power Transmission Industry: Structuring of Red de Energía del Perú s First Bond Program up to US$100 000,000. Financial Institutions: Structuring of Banco de Credito s debt instruments (Corporate Bonds up to US$100 MM, Mortgage Bonds up to US$50 MM, Leasing Bonds up to US$100 MM, Subordinated Bonds up to US$50 MM). Structuring of several Commercial Paper Programs for different industries: Nissan Maquinarias, Creditex, Palmas del Espino, Quimpac, Ransa, Solución Financiera de Credito,. 24
MANAGEMENT Managing Director Trading & Brokerage Enrique Hernandez Education Economist from Pontificia Universidad Católica del Perú Profesional Experience Former CFO at Centura SAB Former financial advisor at Citibank Peru. Former CEO at Sudamericano Bolsa SAB. Former member of the board of directors of Bolsa de Valores de Lima Former board member of Lima s Commodities Exchange. Former Head trader of Macrovalores group. Former Head trader of Peruvian Central Bank. Former equity trader at Argos SAB. Others Direct participationin many equity operations like IPO from Austral, bids of government s stakes in Edegel and Luz del Sur, D onofrio s bond issues, first asks from the government for programs of social assistance. 25
GERENCIA Managing Director Operations Elizabeth Cueva Estudios MBA with emphasis in Strategic Management of Business CENTRUM the Pontificia Universidad Catolica del Peru. Certified Public Accountant, Universidad San Martin de Porres. Experiencia Profesional Stock Consultant (2009 2010) Head of Securities Mining Company AtacochaSA(2005 2009) Compliance Officer System of Money Laundering Prevention Brokerage Company Sudamericano Bolsa SA (2003 2005) Managing Director of Operations Brokerage Company Sudamericano Bolsa SA (2000 2005) Counter Chief Operating Brokerage Company Macrovalores Sudamericano SA (1994 2000) Otros External Teacher at the Center for the Study of the Lima Stock Exchange BURSEN. 26
ANALYST TEAM Analyst María Belen Vega Bachelor of Economics from Universidad del Pacifico. Developed pre professional training in the Structuring and Risk Department of Titulizadora Peruana; in the Treasury and FOREX Department at Banco de Crédito del Perú, analysis of transfer pricing at KPMG and provided support to the Unit Investment Risk of AFP Profuturo. She currently serves as an Investment Analyst and Corporate Finance at KALLPA Securities S.A.B. Analyst Marco Contreras Bachelors degree in economics from Universidad del Pacifico. Previously worked as intern in the Equity Research department at Scotia Sociedad Agente de Bolsa (brokerage house) and prior to that in the Investments department at Fondo Mivivienda (state fund manager). Currently working as Investments and Capital Markets Analyst. Analyst Alex Rodriguez Graduate in economy for the National University of Trujillo. It took part in the extension program of Advanced Finance organized by the Central Bank of Reservation of Peru. It developed pre professional practices in the Direction of Secondary Markets of the Superintendence of Stock market (SMV), analysis in the area of Investigation of Bad Practices of the SMV, and before in the area of Kallpa Securities's operations SAB. Nowadays it gets out of a jam itself as Investment analyst and Capital market. 27
KALLPA SECURITIES SAB Contact Information Alberto Arispe CEO aarispe@kallpasab.com p@ p (511) 630 7500 (51) 9 9346 5244 Enrique Hernández e Managing Director Trading ehernandez@kallpasab.com (511) 630 7515 (51) 9 9647 2318 Ricardo Carrión Managing Director Corporate Finance rcarrion@kallpasab.comcom (511) 630 7526 (51) 9 9347 9320 Av. La Encalada 1388 Oficina 802 Edificio Centro Empresarial Polo Hunt I 28
TRADING CORPORATE FINANCE EQUITY RESEARCH ASSET MANAGEMENT The content of this documents is only informative and referential