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February 20th 2015
Credicorp Capital Research
Andean Daily Report
CREDICORP CAPITAL RESEARCH
Chile: +(562) 2450 1600
Colombia: +(571) 339 4400 Ext. 1505
Peru: +(511) 205 9190 Ext. 36070
V a lua tions
CHILE
 CCU and Postobon begin formation of executive team and design for
new plant in Colombia
COLOMBIA
 Imports increased by 11.2% y/y in Dec-14. Trade balance deficit stood
at USD 6.3 bn in 2014
P / E
EV / EBITDA
P / BV
2 0 14 E 2 0 15 E 2 0 14 E 2 0 15 E
LTM
Country
Chile
20.8x
17.4x
9.1x
8.5x
1.7x
Colombia
19.1x
22.4x
8.1x
8.4x
1.4x
Peru
14.8x
13.5x
7.8x
7.1x
1.3x
Index
Last
S&P MILA 40
S&P INDEX
Chile
Colombia
Peru
Mex ico
Brazil
Equities Latam
613
2,097
3,996
1,387
13,862
43,231
51,294
2,639
 Celsia: Disappointing 4Q14 results well below our estimates
Fx Rates
Last
 ISA was awarded a new transmission project in Colombia
CLP / US$
UF / CLP
Peru / US$
Colombia / US$
Brazil / US$
CLP / Euro
Euro / US$
620
24,537
3.09
2,445
2.87
704
1.14
Commodities
Last
Copper (US$/lb)
Gold (US$/oz)
Silv er (US$/oz)
Brent (US$/bbl)
Pulp (US$/MT)
WTI (US$/bbl)
262
1,208
16.4
59
900
51
 BanRep will held its monetary policy meeting today
 There is no consensus regarding the sustainability of natural gas in
Colombia
 The BoD of Celsia announced dividend proposal of COP 120. On the
other hand, Juan Guillermo Londoño announced his resignation as
CEO of the Company
 EEB announced the resignation of Claudia Castellanos to the BoD of
the company
 Nutresa closed the acquisition of El Corral
 BVC 4Q14 results; revenues and EBITDA in line with our estimates,
while net income disappointed
PERU
 In June, regional governments could be affected by canon’s reduction
 The commercial sector is expected to grow more in Peru than in Chile
and Brazil
 Lots for oil exploration expected to be awarded in 2015
D/D %
YTD%
Local USD
Local USD
-0.2% -0.2%
-3.7% -3.7%
-0.1% -0.1%
1.9%
1.9%
0.2%
0.6%
3.8%
1.7%
-0.8% -1.4%
-8.3% -10.8%
0.2%
0.1%
-6.3% -9.6%
0.4%
0.1%
0.2% -1.5%
0.0% -0.9%
2.6% -5.3%
-0.3% -0.3%
-3.3% -3.3%
D/D %
YTD%
0.0%
0.0%
0.0%
0.6%
1.0%
-0.3%
-0.3%
2.1%
-0.4%
3.6%
2.9%
8.3%
-3.9%
-6.0%
D/D %
Local USD
0.2%
0.6%
0.7%
1.4%
-0.3%
-1.9%
Local
YTD%
USD
-7.4%
1.9%
5.0%
6.4%
-3.4%
-4.0%
Credicorp Capital may do or seek to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest
that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on
page 9 to 11. Analyst Certification on Page 9. Additional disclosures on page 11.
Chile
Company News
CCU and Postobon begin formation of executive team and design for new plant in
Colombia
(CCU: UNDERPERFORM; T.P.: CLP 6,530)
CCU and Postobon have begun the process of formation of the executive team for their new joint
venture, Central Cervecera de Colombia (CCC). This new team is formed by Colombian
executives, as well as executives from CCU and Heineken. The presidency of CCC was assumed
by Mauricio Medina Yepes, former executive of Colcafe. Alberto Schiappacasse Dasati, former
engineering executive in CCU, was assigned to the area of project development. Vicente
Rosselot, who was the former executive for Planning and Finance in Eccusa (nonalcoholic drinks
subsidiary of CCU) was assigned to CFO. Finally, Philippe Saintigny assumed the new
commercial executive position, coming from Heineken International. Also, the association began
the design and planning of the new beer plant, advised by Heineken. The new plant will be built in
Sesquile, north of Bogota, and will have a capacity of 3mn HL (operational by 2H17). The
construction will provide between 1,000 and 1,800 new jobs. CCU stated that the basic
engineering for the project is already defined and while will develop the budget for the new
equipment, before putting on a tender for the construction of the new plant.
Colombia
Economics and Politics
Imports increased by 11.2% y/y in Dec-14. Trade balance deficit stood at USD 6.3 bn in
2014
According to DANE, Colombia’s external purchases grew by 11.2% y/y during Dec-14 (from USD
4.9 bn in Dec-13 to USD 5.4 bn). This behavior was mainly explained by an expansion of the
purchases of manufacturing goods (7.8% y/y), “fuels and extractive industries” (37.7%) and
“agricultural products, food and beverages” (9.1%). Thus, during 2014, overall exports grew by
7.8% y/y (from USD 59.3 bn to USD 64 bn).
With this result, in addition to the exports’ drop in Dec-14 (-28.5% y/y), 2014’s trade balance’s
deficit stood at USD 6.2 bn. This was Colombia’s first trade deficit since 2008. This large deficit
was mostly explained by the Cartagena’s refinery expansion process, which caused a relevant
deterioration of the refined oil products component.
2
BanRep will held its monetary policy meeting today
The market expectation (and ours) is for the repo rate to remain unaltered at 4.50%, amid
increased uncertainty over the local economic activity but an upward trend in inflation. In the last
meeting’s minutes, a member of the board stated its expectation of the economic activity to grow
between 3.0% and 3.5% during 2015, well below market and government’s expectations (3.74%
and 4.2%, respectively).
There is no consensus regarding the sustainability of natural gas in Colombia
According to The Colombian Petroleum Association (ACP) the natural gas sector could face a
shortages if Colombia does not develop the necessary E&P investments in the sector. On the
other hand, according to the Natural Gas Colombian Association (Naturgas), the natural gas
supply in Colombia is guaranteed for coming years.
According to Naturgas, the country has been stressed by the increase in natural gas demand
from thermal power generators due to the drought experienced by the country last year, and the
expectation for the arrival of El Niño phenomenon. However, according to the association, this
should be a temporal disruption and the sector would be prepared to meet the demand in the
short term.
On the other hand, the ACP argues more structural supply-demand problems and alerts that
Colombia could lose its self-sustainability in 2018, leading to imports of LNG. According to
Francisco Lloreda, director of the ACP, the imports of natural gas in Colombia could increase the
cost of the natural gas as the current local production price is ~USD 3-5 MMBTU, while the price
of LNG imports in South America is ~USD 11 MMBTU.
Company News
The BoD of Celsia announced dividend proposal of COP 120. On the other hand, Juan
Guillermo Londoño announced his resignation as CEO of the Company
(CELSIA: HOLD; T.P.: COP 7,020)
The BoD of Celsia proposed to the Shareholders’ Meeting that will take place on March 24th,
2015, a dividend distribution of COP 120/share, equivalent to a dividend yield of 2.3% at current
prices, which is entirely in line with our dividend estimate for 2015.
On the other hand, Juan Guillermo Londoño announced his resignation as CEO of Celsia, after 9
years leading the company, due to retirement. Londoño will remain in office until the arrival of his
relief, which is expected for Jun 2015.
EEB announced the resignation of Claudia Castellanos to the BoD of the company
(EEB: BUY; T.P.: COP 1,930)
EEB announced the resignation of Claudia Castellanos, current VP of supply and marketing of
Ecopetrol, to the BoD of EEB. This is not surprising considering that Ecopetrol is currently
advancing on the sale process of its stake in EEB (6.9% stake; USD 450 mn at the sale price
defined by Ecopetrol of COP 1,740/share).
3
Celsia: Disappointing 4Q14 results well below our estimates
(CELSIA: HOLD; T.P.: COP 7,020)
Celsia
Y/Y
A/E
(%)
(%)
4Q14A
4Q13A
4Q14E
Rev enues
660,548
626,923
782,788
5.4%
EBITDA
151,966
213,280
276,308
-28.7%
-758
168,285
155,396 -100.5% -100.5% P/BV
-1
234
EBITDA Mg.
23.0%
34.0%
35.3%
Net Mg.
-0.1%
26.8%
19.9%
(COP mn)
Net income
EPS
Celsia
LTM
2014E
21.7x
16.2x
-45.0% EV/EBITDA 9.2x
9.4x
-15.6% P/E
216 -100.5% -100.5% Div . Yield
1.1x
1.0x
2.2%
2.3%
Celsia posted 4Q14 financial results with disappointing figures in all lines of the income
statement. We expected higher figures boosted by: 1) a good power generation (4Q14 Celsia's
power generation of 1,711 GWh in line with our estimates), 2) still high spot prices (4Q14 average
spot price of COP 183 kWh), and 3) the beginning of the consolidation of acquired assets in
Central America. However, Celsia was below our estimates in wholesaler power sales (-23.6%)
and retail power sales (-4.6%).
On the other hand, Celsia posted the lower quarterly margin EBITDA of its recent history; EBITDA
margin stood at 23% compared with 34% in 3Q13 and our estimate of 35.3%. The cost of sales
during grew 17.7% y/y, while administrative expenses grew 11.0% y/y.
Finally, a higher financial expense explained by the higher indebtedness to acquire the Central
American assets, along with high taxes (effective tax rate of 57% in 4Q14) led net income to
negative ground.
We are waiting for more information to be provided in the 4Q14 financial results conference that
will take place today at 7:30 am (Bogotá time).
ISA was awarded a new transmission project in Colombia
(ISA: UNDERPERFORM; T.P.: COP 8,910)
The Mining and Energy Planning Unit (UPME) awarded to ISA the project to design, acquire
supplies, build, operate and carry out maintenance of the 500-kV Ituango and Medellin
substations, and associated transmission lines with an approximate length of 530 km. The project,
which should be in operation by August 31st, 2018, will allow the connection of the Ituango
generation project with the SIN.
The project will generate annual revenues to ISA of USD 42.42 million (December 2014 dollars),
which represents near to 3% of the total revenues of the company. The news is positive for the
company as ISA continues increasing its project portfolio in the Colombian power transmission
system.
4
Nutresa closed the acquisition of El Corral
(NUTRESA: BUY; T.P.: COP 32,000)
Nutresa announced yesterday that it has closed the acquisition of El Corral. The total amount
paid for the equity value was COP 743 bn and the operation will be funded with COP 58.4bn in
cash and a credit line of COP 685bn, in line with our expectations. The enterprise value of the
transaction was COP 830bn and due to the equity payment, El Corral keeps its debt of COP 86.5
bn. We see this announcement as positive as there were no major delays on the process. On the
other hand, the numbers of El Corral are not public yet so we expect the company to provide
further information in the 4Q14 conference call results that will be hosted next week.
BVC 4Q14 results; revenues and EBITDA in line with our estimates, while net income
disappointed
(BVC: HOLD; T.P.: COP 24.2)
BVC
4Q14A
4Q13A
4Q14E
Y/Y (%) A/E (%)
BVC
2015E
Rev enues
21,230
23,818
20,137
-10.9%
5.4%
P/E
13.4x
EBITDA
7,559
6,693
7,474
12.9%
1.1%
EV/EBITDA
8.3x
Net Income
4,715
5,879
6,815
-19.8%
-30.8%
P/BV
3.2x
Div . Yield
4.8%
EBITDA Mg.
35.6%
28.1%
37.1%
Net Mg.
22.2%
24.7%
33.8%
(COP mn)
Bolsa de Valores de Colombia (the local stock exchange) reported financials for 4Q14 and full
year 2014. Revenues and EBITDA for 4Q14 were in line with our estimates as we did not expect
any major surprises in the operating front. Meanwhile, net income was 30% below our estimate;
here, we will provide more information once the company releases the full financial statements
and conducts its quarterly conference call.
Although operating revenues for full year 2014 grew 2% y/y, we highlight that revenues from
trading fell 9% y/y, led by equities, which decreased 14%, compared to 2013. As we mentioned in
previous reports trading volumes continue to disappoint and so far in 2015 this has not improved.
On the positive side, BVC was able to achieve a 40% EBITDA margin during 2014 relative to 37%
in 2013.
Overall, we consider the results as neutral but we will provide further insight once we obtain the
full financial statements. Finally, we continue to fear that the main growth drivers for the company
(volumes and equity offerings) do not provide neither clear visibility nor major upside for 2015
which is worrisome, in our view.
5
Peru
Economics and Politics
In June, regional governments could be affected by canon’s reduction
According to Eduardo Ballón, technical secretary of the regional government assembly, local and
regional governments that have already started their projects could be affected by a reduction in
the canon, a situation that will limit the available resources needed for their continuity. The initial
national budget considers the following assumptions: a GDP growth of 6%, an oil price of USD99
per barrel and an exchange rate of PEN 2.9. Besides this, regions and municipalities have
already used part of their canon resources for the implementation of public investment projects;
however, transfers to these entities will take place in June.
The commercial sector is expected to grow more in Peru than in Chile and Brazil
According to Cesar Peñaranda, Executive Director of the Lima Commerce Chamber, the
commercial sector is expected to grow 4.9% and 5.5% in 2015 and 2016, respectively, and
should outpace the growth in Brazil, Mexico, and Chile. This growth should be driven by a
recovery in private consumption. Mr. Peñaranda also noted that the country reached a total of 90
shopping centers by end of 2015.
Lots for oil exploration expected to be awarded in 2015
Oscar Miro Quesada, Marketing Manager of Perupetro, ruled out the suspension of the bidding
process for the first package of 7 lots in Peru’s rainforest due to the fall in oil prices. Mr. Miro also
noted that there are fifteen companies interested in participating, but it is expected that these will
submit their official intent letters. The deadline expires in May and the award is scheduled for
August.
6
Trading Information
Traded Volume
Country
Vol. (USDmn)
Best sector
Worst Sector
Chile
67.1
Commodities / +0.34%
Industrial / -0.19%
Colombia
25.0
-
-
Peru
7.8
Agribusiness / +4.65%
Industrial / -1.10%
Volume Leaders
Chile
USD Th.
Colombia
Clp. %
USD Th.
Peru
Cop. %
USD Th.
Pen %
Gasco
$ 8,047.9
1.74%
Ecopetrol
$ 9,217.1
-1.83%
Credicorp
$ 1,219
-1.13%
Colbun
$ 6,688.9
-0.19%
Bancolombia
$ 6,884.0
-0.08%
Ferrey corp
$ 1,182
0.00%
CMPC
$ 5,654.2
-0.79%
Pacific Rubiales
$ 1,725.7
-0.24%
Volcan-B
$ 1,090
8.06%
Top Winners & Losers
Chile
Colombia
Top Winners
CLP
Besalco
$ 359
2.00%
SQM-B
$ 16,309
Gasco
$ 5,850
Top Losers
CLP
Banmedica
$ 1,199.0
Concha y Toro
Forus
Clp.%
Peru
COP
Cop.%
Top Winners
EEB
$ 1,650
0.30%
Volcan-B
$ 0.67
8.06%
1.96%
Bogota
$ 63,100
0.13%
Aceros Arequipa
$ 0.43
7.50%
1.74%
-
Minera IRL
$ 0.06
7.41%
Clp.%
Top Winners
-
-
PEN / USD
%
Top Losers
COP
Cop.%
Top Losers
PEN / USD
%
-1.72%
BVC
$ 19
-3.11%
Alicorp
$ 6.40
-3.76%
$ 1,250.4
-1.59%
Celsia
$ 5,150
-2.09%
BVN
$ 10.56
-3.74%
$ 2,510.0
-1.57%
Ecopetrol
$ 2,150
-1.83%
U. Andina Cem.
$ 2.37
-3.27%
Sources: Bloomberg & Credicorp Capital
7
Economic Calendar
Chile
Date
5-Feb
6-Feb
12-Feb
Time
8:30
8:00
18:00
Indicator / Event
Economic Activity Index YoY
CPI MoM
Overnight Rate Target
Period
Dec-14
Jan-15
Feb-15
Consensus
2.0%
-0.3%
3.00%
Credicorp
Capital
2.1%
-0.3%
3.00%
Consensus
9.5%
-0.1%
4.50%
Credicorp
Capital
-
Consensus
3.25%
6.1%
0.5%
Credicorp
Capital
-
Actual
Previous
2.9%
0.1%
3.00%
1.3%
-0.4%
3.00%
Actual
Previous
9.6%
2.1%
-
8.4%
-0.9%
4.50%
Actual
Previous
3.25%
6.4%
0.5%
3.25%
5.6%
0.3%
Colombia
Date
17-Feb
17-Feb
20-Feb
Time
18:00
18:00
Indicator / Event
Retail Sales YoY
Industrial Production YoY
Overnight Lending Rate
Period
Dec-14
Dec-14
Feb-15
Peru
Date
12-Feb
16-Feb
16-Feb
Time
20:00
Indicator / Event
Reference Rate
Unemployment Rate
Economic Activity YoY
Period
Feb-15
Jan-15
Dec-14
Sources: Bloomberg & Credicorp Capital
8
Important Disclosures
This research report was prepared by CredicorpCapital Peru S.A and/or Credicorp Capital Colombia Sociedad Comisionista de
Bolsa and/or IM Trust S.A. Corredores de Bolsa, companies authorized to engage in securities activities in Peru, Colombia and
Chile, respectively and indirect subsidiaries of Credicorp Capital Ltd. (jointly referred to as “Credicorp Capital”). None of the
companies jointly referred to as Credicorp Capital are registered as broker-dealers in the United States and, therefore, they are not
subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report
is provided for distribution only to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments
based on the information provided in this research report can do so only through Credicorp Securities Inc., a registered brokerdealer in the United States. Under no circumstances may a U.S. recipient of this research report effect any transaction to buy or sell
securities or related financial instruments directly through Credicorp Capital.
Credicorp Securities Inc. accepts responsibility for the contents of this research report, subject to the terms set out below, to the
extent that it is delivered to a U.S. person other than a major U.S. institutional investor.
Any analyst whose name appears on this research report is not registered or qualified as a research analyst with the Financial
Industry Regulatory Authority (“FINRA”) and is not a registered representative of Credicorp Securities Inc. and, therefore, is not
subject to applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading
securities held by a research analyst account.
A.Analyst Disclosures
The functional job title of the person(s) responsible for the recommendations contained in this report is Equity Research Analyst
unless otherwise stated on the cover.
Regulation AC - Analyst Certification: Each Equity Research Analyst listed on the front-page of this report is principally
responsible for the preparation and content of all or any identified portion of this research report and hereby certifies thatwith
respect to each issuer or security or any identified portion of the report with respect to an issuer or security that the Equity Research
Analyst covers in this research report, all of the views expressed in this research report accurately reflect their personal views about
those issuer(s) or securities. Each Equity Research Analyst also certifies that no part of their compensation was, is, or will be,
directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that Equity Research Analyst in this research
report.
Each Equity Research Analyst certifies that he or she is acting independently and impartially from the referenced
company/shareholders, directors and is not affected by any current or potential conflict of interest that may arise from any of the
companies’ activities.
Analyst Compensation: The research analyst(s) primarily responsible for the preparation of the content of this research report
attest(s) that no part of his or her compensation was, is or will be, directly or indirectly, related to the specific recommendations that
he or she expressed in the research report.
Registration of non-US Analysts: Unless otherwise noted, the non-US analysts listed on the front of this report are employees of
one of the companies jointly referred as Credicorp Capital, which are non-US affiliates of Credicorp Securities Inc., a SEC registered
and FINRA member broker-dealer. Equity Research Analysts employed by the companies jointly referred as Credicorp Capital, are
not registered/ qualified as research analysts under FINRA/NYSE rules, are not registered representatives of CredicorpSecurities
Inc. and may not be subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public
appearances, and trading securities held by a research analyst account. Please refer to www.credicorpcapital.com for further
information relating to research and conflict of interest management.
9
B.Ownership and Material Conflicts of Interest
Neither Credicorp Securities Inc. or its affiliates ‘beneficially own’, as determined in accordance with Section 13(d) of the Exchange
Act, 1% or more of the equity securities of any of the companies referenced in this report.
Credicorp Securities Inc., its affiliates and/or their respective officers, directors or employees may have interests, or long or short
positions, and may at any time make purchases or sales as a principal or agent of the securities referred to herein.
C.Compensation and Investment Banking Activities
Credicorp Securities Inc. or any of its affiliates have managed or co-managed a public offering of securities for one or more of the
companies referenced in this report in the past 12 months. Within the last 12 months, Credicorp Securities Inc. or its affiliates have
received compensation for investment banking services from: Celsia and EEB. Neither Credicorp Securities Inc. nor its affiliates
expect to receive or intend to seek compensation for investment banking services from any of the subject companies in the next 3
months
D. Rating System
Stock ratings are based on the analyst’s expectation of the stock’s total return during the twelve to eighteen months following
assignment of the rating. This view is based on the target price, set as described below, and on the analyst’s opinion, general market
conditions and economic developments.
Buy: Expected returns of 5 percentage points or more in excess over the expected return of the local index, over the next 12-18
months.
Hold: Expected returns of +/- 5% in excess/below the expected return of the local index over the next 12-18 months.
Underperform: Expected to underperform the local index by 5 percentage points or more over the next 12-18 months.
Under Review / Restricted: Company coverage is under review or restricted.
The IPSA, COLCAP and IGBVL indexes are the selective equity indexes calculated by the Bolsa de Comercio de Santiago, the
Bolsa de Valores de Colombia, and the Bolsa de Valores de Lima, respectively.
In making a recommendation, the analyst compares the target price with the actual share price, and compares the resulting
expected return for the IPSA, the COLCAP, and/or the IGBVL indexes, as estimated by IM Trust Corredores de Bolsa S.A.,
Credicorp Capital Colombia Sociedad Comisionista de Bolsa, and/or CredicorpCapital Peru S.A, and then makes a recommendation
derived from the difference in upside potential between the shares and the respective index.
E. Distribution of Ratings
Rating
N° of Companies covered with this Companies covered with this rating
rating
(% )
Buy
35
42%
Hold
37
45%
Underperform
9
11%
Under Review /
Restricted
2
2%
Total
83
100%
10
F.Price Target
Unless otherwise stated in the text of this report, target prices in this report are based on either a discounted cash flow valuation or
comparison of valuation ratios with companies seen by the analyst as comparable or a combination of the two methods. The result of
this fundamental valuation is adjusted to reflect the analyst’s views on the likely course of investor sentiment. Whichever valuation
method is used there is a significant risk that the target price will not be achieved within the expected timeframe. Risk factors include
unforeseen changes in competitive pressures or in the level of demand for the company’s products. Such demand variations may
result from changes in technology, in the overall level of economic activity or, in some cases, in fashion. Valuations may also be
affected by changes in taxation, in exchange rates and, in certain industries, in regulations. Investment in overseas markets and
instruments such as ADRs can result in increased risk from factors such as exchange rates, exchange controls, taxation, and
political and social conditions. This discussion of valuation methods and risk factors is not comprehensive – further information is
available upon request.
II.ADDITIONAL DISCLOSURES
This product is not for retail clients or private individuals.
The information contained in this publication was obtained from various publicly available sources believed to be reliable, but has not
been independently verified by the companies jointly referred as Credicorp Capital, therefore they do not warrant the completeness
or accuracy of such information and does not accept any liability with respect to the accuracy or completeness of such information,
except to the extent required by applicable law.
This publication is a brief summary and does not purport to contain all available information on the subjects covered. Further
information may be available on request. This report may not be reproduced for further publication unless the source is quoted. This
publication is for information purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or
sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of any securities, or for
engaging in any other transaction. This publication is not for private individuals.
Any opinions, projections, forecasts or estimates in this report are those of the author only, who has acted with a high degree of
expertise. They reflect only the current views of the author at the date of this report and are subject to change without notice. The
companies jointly referred to as Credicorp Capital have no obligation to update, modify or amend this publication or to otherwise
notify a reader or recipient of this publication in the event that any matter, opinion, projection, forecast or estimate contained herein,
changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. The analysis, opinions,
projections, forecasts and estimates expressed in this report were in no way affected or influenced by the issuer. The author of this
publication benefits financially from the overall success of Credicorp Capital.
The investments referred to in this publication may not be suitable for all recipients. Recipients are urged to base their investment
decisions upon their own appropriate investigations that they deem necessary. Any loss or other consequence arising from the use
of the material contained in this publication shall be the sole and exclusive responsibility of the investor and Credicorp Capital
accepts no liability for any such loss or consequence. In the event of any doubt about any investment, recipients should contact their
own investment, legal and/or tax advisers to seek advice regarding the appropriateness of investing. Some of the investments
mentioned in this publication may not be readily liquid investments. Consequently it may be difficult to sell or realize such
investments. The past is not necessarily a guide to future performance of an investment. The value of investments and the income
derived from them may fall as well as rise and investors may not get back the amount invested. Some investments discussed in this
publication may have a high level of volatility. High volatility investments may experience sudden and large falls in their value which
may cause losses. International investing includes risks related to political and economic uncertainties of foreign countries, as well
as currency risk.
11
To the extent permitted by applicable law, no liability whatsoever is accepted for any direct or consequential loss, damages, costs or
prejudices whatsoever arising from the use of this publication or its contents.
Credicorp Capital (and its affiliates) has implemented written procedures designed to identify and manage potential conflicts of
interest that arise in connection with its research business, which are available upon request. The Credicorp Capital research
analysts and other staff involved in issuing and disseminating research reports operate independently of Credicorp Capital’s
Investment Banking business. Information barriers and procedures are in place between the research analysts and staff involved in
securities trading for the account of Credicorp Capital or clients to ensure that price sensitive information is handled according to
applicable laws and regulations.
Country and region disclosures
United Kingdom: This document is for persons who are Eligible Counterparties or Professional Clients only and is exempt from the
general restriction in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements
to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described
in Articles 19(5) (Investment professionals) and 49(2) (High net worth companies, unincorporated associations, etc.) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). It is not intended to be distributed or passed on,
directly or indirectly, to any other class of persons. Any investment to which this document relates is available only to such persons
and other classes of person should not rely on this document.
United States: This communication is only intended for, and will only be distributed to, persons residing in any jurisdictions where
such distribution or availability would not be contrary to local law or regulation. This communication must not be acted upon or relied
on by persons in any jurisdiction other than in accordance with local law or regulation and where such person is an investment
professional with the requisite sophistication to understand an investment in such securities of the type communicated and assume
the risks associated therewith.
This communication is confidential and is intended solely for the addressee. It is not to be forwarded to any other person or copied
without the permission of the sender. This communication is provided for information only. It is not a personal recommendation or an
offer to sell or a solicitation to buy the securities mentioned. Investors should obtain independent professional advice before making
an investment.
Notice to U.S. Investors: This material is not for distribution in the United States, except to “major US institutional investors” as
defined in SEC Rule 15a-6 ("Rule 15a-6") and related guidance. Credicorp Capital and its affiliates has entered into arrangements
with Credicorp Securities Inc., which enables this report to be furnished to certain U.S. recipients in reliance on Rule 15a-6 through
Credicorp Securities Inc., which is registered under the U.S. Securities Exchange Act of 1934, as amended.
Each U.S. recipient of this report represents and agrees, by virtue of its acceptance thereof, that it is a "major U.S. institutional
investor" (as such term is defined in Rule 15a-6) and that it understands the risks involved in executing transactions in such
securities. Any U.S. recipient of this report that wishes to discuss or receive additional information regarding any security or issuer
mentioned herein, or engages in any transaction to purchase or sell or solicit or offer the purchase or sale of such securities, should
contact a registered representative of the Credicorp Securities Inc. that provided the report.
Credicorp Securities Inc. is a broker-dealer registered with the SEC, a member of FINRA and SIPC. You can reach Credicorp
Securities Inc. At 121 Alhambra Plaza, suite 1200, Coral Gables, Miami 33134, phone (305) 4480971 Equity trading: 786 999 1633.
You may obtain information about SIPC, including the SIPC brochure, by contacting SIPC directly at 202-371-8300; website:
http://www.sipc.org
12
Credicorp Securities Inc., is a wholly owned subsidiary of Credicorp Capital Ltd.
Nothing herein excludes or restricts any duty or liability to a customer that Credicorp Securities Inc. have under applicable law.
Investment products provided by or through Credicorp Securities Inc. are not insured by the Federal Deposit Insurance Corporation
and are not deposits or other obligations of any insured depository institution, may lose value and are not guaranteed by the entity
that published the research as disclosed on the front page and are not guaranteed by Credicorp Securities Inc.
Investing in non-U.S. Securities may entail certain risks. The securities referred to in this report and non-U.S. issuers may not be
registered under the U.S. Securities Act of 1933, as amended, and the issuer of such securities may not be subject to U.S. reporting
and/or other requirements. Rule 144A securities may be offered or sold only to persons in the U.S. who are Qualified Institutional
Buyers within the meaning of Rule 144A under the Securities Act. The information available about non-U.S. companies may be
limited, and non-U.S. companies are generally not subject to the same uniform auditing and reporting standards as U.S. companies.
Securities of some non-U.S. companies may not be as liquid as securities of comparable U.S. companies. Securities discussed
herein may be rated below investment grade and should therefore only be considered for inclusion in accounts qualified for
speculative investment.
Analysts employed by one of the companies jointly referred to as Credicorp Capital, all of which are non-U.S. broker-dealers, are not
required to take the FINRA analyst exam. The information contained in this report is intended solely for certain "major U.S.
institutional investors" and may not be used or relied upon by any other person for any purpose. Such information is provided for
informational purposes only and does not constitute a solicitation to buy or an offer to sell any securities under the Securities Act of
1933, as amended, or under any other U.S. federal or state securities laws, rules or regulations. The investment opportunities
discussed in this report may be unsuitable for certain investors depending on their specific investment objectives, risk tolerance and
financial position.
In jurisdictions where Credicorp Securities Inc. is not registered or licensed to trade in securities, or other financial products,
transactions may be executed only in accordance with applicable law and legislation, which may vary from jurisdiction to jurisdiction
and which may require that a transaction be made in accordance with applicable exemptions from registration or licensing
requirements.
The information in this publication is based on sources believed to be reliable, but Credicorp Securities Inc. does not make any
representation with respect to its completeness or accuracy. All opinions expressed herein reflect the author's judgment at the
original time of publication, without regard to the date on which you may receive such information, and are subject to change without
notice.
Credicorp Securities Inc. or its affiliates may have issued other reports that are inconsistent with, and reach different conclusions
from, the information presented in this report. These publications reflect the different assumptions, views and analytical methods of
the analysts who prepared them. Past performance should not be taken as an indication or guarantee of future performance, and no
representation or warranty, express or implied, is provided in relation to future performance.
Credicorp Securities Inc. and any company affiliated with it may, with respect to any securities discussed herein: (a) take a long or
short position and buy or sell such securities; (b) act as investment and/or commercial bankers for issuers of such securities; (c) act
as market makers for such securities; (d) serve on the board of any issuer of such securities; and (e) act as paid consultant or
advisor to any issuer. The information contained herein may include forward-looking statements within the meaning of U.S. federal
securities laws that are subject to risks and uncertainties. Factors that could cause a company's actual results and financial condition
to differ from expectations include, without limitation: political uncertainty, changes in general economic conditions that adversely
affect the level of demand for the company's products or services, changes in foreign exchange markets, changes in international
and domestic financial markets and in the competitive environment, and other factors relating to the foregoing. All forward-looking
statements contained in this report are qualified in their entirety by this cautionary statement.
Other countries: Laws and regulations of other countries may also restrict the distribution of this report. Persons in possession of
this document should inform themselves about possible legal restrictions and observe them accordingly.
13
CONTACT LIST
ANDEAN RESEARCH TEAM
SALES & TRADING
Heinrich Lessau
Hugo Horta
Director of Research
hlessau@credicorpcapital.com
Director of Sales & Trading
hhorta@credicorpcapital.com
EQUITY RESEARCH
EQUITY SALES & TRADING
CHILE
COLOMBIA
PERU
Hernán Arellano
Francisca Manuschevich
César Cuervo
Héctor Collantes
Head of Equities
harellano@credicorpcapital.com
Head of Equity Research
fmanuschevich@credicorpcapital.com
# (562) 2446 1798
Head of North Andean Equity Research
ccuervo@credicorpcapital.com
# (571) 339 4400 Ext 1012
Head of Equity Research
hcollantes@credicorpcapital.com
# (511) 205 9190 Ext 33052
Javier Günther
Marilyn Macdonald
Cristián Castillo
Christopher DiSalvatore
Jaime Pedroza
Fernando Pereda
Associate: Retail & Financials
cdisalvatore@credicorpcapital.com
# (562) 2446 1724
Senior Analyst: Utilities
jpedroza@credicorpcapital.com
# (571) 339 4400 Ext 1025
Senior Analyst: Cement & Utilities
fpereda@credicorpcapital.com
# (511) 205 9190 Ext 37856
International Equity Sales
jgunther@credicorpcapital.com
# (562) 2450 1695
International Equity Sales
mar_macdonald@btconnect.com
# (4477) 7151 5855
International Sales Trader
ccastillo@credicorpcapital.com
# (786) 999 1633
CHILE
PERU
COLOMBIA
Arturo Prado
Juan C. Domínguez
Iván Bogarín
René Ossa
Rodrigo Zavala
Juan A. Jiménez
Senior Analyst: Natural Resources
aprado@credicorpcapital.com
# (562) 2450 1688
Senior Analyst: Banks
jcdominguez@credicorpcapital.com
# (571) 339 4400 Ext 1026
Senior Analyst: Retail & Others
ibogarin@credicorpcapital.com
# (511) 416 3333 Ext 33055
International Equity Sales
reneossa@credicorpcapital.com
# (562) 2651 9324
Head of Equity - Peru
rzavala@credicorpcapital.com
# (511) 313 2918 Ext 36044
Head of International Equity Sales
jjimenez@credicorpcapital.com
# (571) 339 4400 Ext 1701
Andrés Ossa
Sebastián Gallego
Tamara Vasquez
Christian Munchmeyer
Ursula Mitterhofer
Santiago Castro
Analyst: Utilities, Telecom & I.T.
aossa@credicorpcapital.com
# (562) 2651 9332
Analyst: Oil & Gas
sgallego@credicorpcapital.com
# (571) 339 4400 Ext 1594
Research Assistant
tamaravasqueza@credicorpcapital.com
# (511) 416 3333 Ext 37946
International Sales & Trading
cmunchmeyer@credicorpcapital.com
# (562) 2450 1613
Sales & Trading
umitterhofer@credicorpcapital.com
# (511) 313 2918 Ext 32922
International Sales & Trading
scastro@credicorpcapital.com
# (571) 339 4400 Ext 1344
Tomás Sanhueza
Carlos E. Rodriguez
Analyst: Food & Beverages, Healthcare
tsanhueza@credicorpcapital.com
# (562) 2446 1751
Analyst: GEA & infrastructure
cerodriguez@credicorpcapital.com
# (571) 339 4400 Ext 1365
Pilar González
FIXED INCOME SALES & TRADING
Analyst: Transport
mpgonzalez@credicorpcapital.com
# (562) 2446 1768
Felipe García
Lourdes Alamos
Head of Fixed Income
fgarcia@credicorpcapital.com
Research Coordinator & Holdings Analyst
lalamos@credicorpcapital.com
# (562) 2450 1609
FIXED INCOME & ECONOMICS RESEARCH
CHILE
COLOMBIA
PERU
Gonzalo Covarrubias
Carlos Sanchez
Alfredo Bejar
Head of Capital Markets
gcovarrubias@credicorpcapital.com
Head of Fixed Income
csanchez@credicorpcapital.com
Head of Fixed Income / FX Trading
alfredobejarg@credicorpcapital.com
CHILE
COLOMBIA
PERU
# (562) 2450 1635
# (571) 323 9154
# (511) 205 9190 Ext 36148
Paulina Yazigi
Daniel Velandia
Irvin León
Guido Riquelme
Christian Jarrin
Vallerie Yong
Head of Research & Chief Economist
pyazigi@credicorpcapital.com
# (562) 2450 1637
Head of Research & Chief Economist
dvelandia@credicorpcapital.com
# (571) 339 4400 Ext 1505
Senior Fixed Income Analyst
ileon@credicorpcapital.com
# (511) 416 3333 Ext 37854
Head of Sales
griquelme@credicorpcapital.com
# (562) 2446 1712
RM Fixed Income Offshore
cjarrin@credicorpcapital.com
# (571) 340 2591
Local FI Senior Trader
vyong@credicorpcapital.com
# (511) 313 2902 - # (511) 313 2908
Felipe Lubiano
Sergio Ferro
Alberto Zapata
Belén Larraín
Andrés Valderrama
Evangeline Arapoglou
Senior Fixed Income Analyst
flubiano@credicorpcapital.com
# (562) 2651 9308
Fixed Income Analyst
sferro@credicorpcapita.com
# (571) 339 4400 Ext 1609
Fixed Income Analyst
azapatag@credicorpcapital.com
# (511) 205 9190 Ext 36018
Head of International FI Sales
blarrain@credicorpcapital.com
# (562) 2446 1720
Fixed Income Trader
jvalderramma@credicorpcapital.com
# (571) 323 9163
Senior International FI Trader
earapoglou@credicorpcapital.com
# (511) 313 2902 - # (511) 313 2908
Paulina Valdivieso
Camilo A. Durán
Paz Stepke
José Andrés Riveros
Lizeth Espíritu
Fixed Income Analyst
pvaldivieso@credicorpcapital.com
# (562) 2651 9337
Macro Analyst
caduran@credicorpcapital.com
# (5511) 339 4400 Ext. 1383
International Fixed Income Sales
pstepke@credicorpcapital.com
# (562) 2651 9336
Fixed Income Trader
jriveros@credicorpcapital.com
# (571) 339 4400 Ext 1180
Fixed Income Trader
lespiritu@credicorpcapital.com
# (511) 313 2902 - # (511) 313 2908
Andrés Osorio
Benjamín Diaz
Economist
aosorio@credicorpcapital.com
# (562) 2446 1760
Local Fixed Income Sales
bdiaz@credicorpcapital.com
# (562) 2446 1738
14