CORPORATE PRESENTATION Presentation - October 2013.pdfKALLPA SECURITIES SAB KALLPA SECURITIES S.A.B....

October 2013

T R A D I N G – C O R P O R A T E F I N A N C E – E Q U I T Y R E S E A R C H - A S S E T M A N A G E M E N T

CORPORATE PRESENTATION

This document has been prepared exclusively to be accompanied by an oral presentation and does not hold any publication and/or communication rights. This document is strictly confidential. The person receiving this document agrees that neither they nor their representatives, directors, agents or employees may copy, reproduce or distribute to third parties this document, either in whole or in part, without prior written consent of KALLPA Securities Sociedad Agente de Bolsa S.A.

KALLPA SECURITIES SAB

KALLPA SECURITIES S.A.B. is an investment boutique :

o Equity and Fixed Income Sales &Trading

o Equity Research

o Capital Markets

o Corporate Finance

o Portfolio Management

Inception Beginning of operations •Over 2,974 clients, • 26 employees, •Peruvian, US and Canadian trading platforms

Board of Directors KALLPA SECURITIES S.A.B:

o Alberto Arispe : MBA with 8 years experience in investment banking in New York.

o Enrique Hernández : Former CEO, director and business manager of several SABs in Peru.

o Ricardo Carrión : Outstanding professional, emphasis on capital markets and corporate finance.

o Elizabeth Cueva : 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.

o Andrés Robles : MBA with 16 years of investment banking experience in Peru and USA.

3

Av. La Encalada 1388 Of. 802 – Surco Phone: (511) 630-7500 Fax: (511) 638-5136

Web Site: www.kallpasab.com Email: [email protected]

June 2008

October 2008 TODAY

BUSINESS UNITS

KALLPA Securities S.A.B has three business units:

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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.

Sales & Trading Corporate Finance and Capital Markets

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 on M&A.

Financial Consulting.

Focus on Investment Banking activities and

Corporate Finance.

Standard Advisory

Enterprise Analysis Portfolio Manager Letters Technical Analysis Model Portfolios

Premium Advisory

Intra Day Technical Analysis Stock Carpet Analysis through Video Monthly Conference Calls Financial Planning:

Applicative sheets

Institutional Advisory

Advice on the portfolio managers election

Review and evaluation of current portfolios

Presence in Committee and Board of Directors

Asset Management

Discretionary Portfolios Global Portfolios Detailed monthly reports Training (loyalty)

Wealth Management

Integral Financial Planning Investments Advisory in real

and financial sectors Advice on the portfolio

managers election Trust Management for

private persons Family Office

Institutional Asset Mgmt

Discretionary investments Portfolio Structure Trust Management Detailed monthly reports for

the Manager Training in investments Presence in Committee and

Board of Directors

Web Page Personal Finance

Sta

nd

ard

Se

rvic

e P

rem

ium

Se

rvic

e

Institutional Portfolio



BUSINESS UNITS

Also, KALLPA SAB has its Asset Management business.

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VOLUME TRADED IN LSE (PEN)

January 1 to October 31, 2013 Market share (%)

1 CONTINENTAL BOLSA S.A.B. 4,225,405,747.31 22.09

2 LARRAIN VIAL SAB S.A 3,488,907,864.13 18.24

3 CREDIBOLSA S.A.B. 3,097,860,076.72 16.19

4 INTELIGO S.A.B. 2,115,749,029.96 11.06

5 BTG PACTUAL PERU S.A. SAB 1,987,103,628.15 10.39

6 SCOTIA BOLSA S.A.B. 1,251,332,650.15 6.54

7 SEMINARIO y CIA. S.A.B. 941,228,584.58 4.92

8 KALLPA SAB S.A. 567,593,511.76 2.97

9 COMPASS GROUP SAB S.A. 204,830,670.29 1.07

10 GRUPO CORIL S.A.B. 185,034,182.17 0.97

11 NCF BOLSA SAB S.A. 162,873,163.50 0.85

12 ANDES SECURITIES SAB S.A.C. 141,104,075.91 0.74

13 PROM E INV. INVESTA S.A.B. 119,881,912.36 0.63

14 MGS y ASOCIADOS S.A.B. 113,008,888.55 0.59

15 CARTISA PERU S.A.B. 100,299,681.71 0.52

16 MAGOT S.A.B. S.A.C. 97,979,565.23 0.51

17 INVERSION y DESARROLLO S.A.B. 95,388,038.36 0.50

18 GPI VALORES SA SAB 63,202,192.35 0.33

19 PROVALOR S.A.B. 61,921,347.72 0.32

20 MBA Lazard SAB S.A. 59,509,707.42 0.31

21 CA PERU SAB SAC 23,415,963.02 0.12

22 BNB VALORES PERU SOLFIN SAB 14,621,861.89 0.08

23 TRADEK S.A. S.A.B. 12,501,534.85 0.07

19,130,753,878.09 100.00

RANKING SABs PERU 2013

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Source: SMV

KALLPA SAB – Sustained Growth 2008 – 2012

Source: SMV



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

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

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

Monto Negociado 2009 - (S/.)

20,409,840,919

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

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 SAB 3,857,487

Monto Negociado 2010 - (S/.)

28,299,861,240

Volume traded 2009 (S/.) Volume traded 2010 (S/.) Volume traded 2011 (S/.) Volume traded 2012 (S/.)

Volume traded in the BVL (PEN)

8

Million (S/.)

18% of our volume corresponds to institutional investors.

82% of our volume corresponds to retail investors.

Kallpa SAB grew of the position 14 of 18 SABs in 2008 to the position 8 of 25 SABs in volume traded in the BVL at the conclusion of 2012.

Volume traded in Lima Stock Exchange

KALLPA SAB´S GROWTH IN THE MARKET 2008-2013



Source: SMV

139

303

452

1,041

1,248

568*

0

200

400

600

800

1,000

1,200

1,400

2008 2009 2010 2011 2012 2013*

Volume Traded in LSE

117

736 850

1,501

2,065

1,197

0

500

1,000

1,500

2,000

2,500

2008 2009 2010 2011 2012 2013*

International

LSE

KALLPA SAB - Total Volume Traded

Trading abroad represents, in average, 27% of volume traded.

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Million S/.

(*) Value to 10-31-2013

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KALLPA SAB – Assets in our Custody

Client´s assets include equities, bonds and cash.

(*) Value to 10-31-2013

$ 4.04

$ 27.94

$ 146.70

$ 124.29

$ 250.80

$ 225.66

$0

$50

$100

$150

$200

$250

$300

2008 2009 2010 2011 2012 2013*

Millions (US$) Assets in our custody

RETURN ON EQUITY (ROE) 2012

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Source: SMV

-10% -5% 0% 5% 10% 15% 20% 25% 30% 35%

GPI VALORES S.A.B.

KALLPA SECURITIES S.A.B.

NCF BOLSA S.A.B.

CREDIBOLSA S.A.B.

GRUPO CORIL S.A.B.

CONTINENTAL BOLSA S.A.B.

SEMINARIO Y Cia. S.A.B.

SCOTIA S.A.B.

INTELIGO S.A.B.

COMPASS GROUP S.A.B.

LARRAIN VIAL S.A.B.

CELFIN CAPITAL S.A.B.

30.0%

21.6%

16.8%

14.1%

12.2%

11.6%

11.5%

8.4%

2.2%

1.5%

-4.9%

-7.3%

KALLPA SECURITIES S.A.B.

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Historical ROE

The equity of Kallpa SAB has grown significantly since its inception because 100% of the profits have been reinvested in the company.

Return on Equity - Kallpa SAB

RO

E (%

)

KALLPA SAB’s RETURNS (2008-2012)



Source: KALLPA

-3.0%

33.5%

63.1%

45.1%

21.6%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

2008 2009 2010 2011 2012

COMPETITIVE ADVANTAGES

Kallpa Securities SAB's success in recent years is due to:

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- It is one of the few brokerage whose shareholders are managers of the company.

- Independent brokerage house, untied to any business group.

- One of the few brokerage houses with an equity research department and only brokerage with Equity Research of junior mining companies.

- One of the few SABs with a division dedicated exclusively to capital market deals, specialized in valuation, and financial advisory.

- Kallpa Securities is sponsor of 14 out of 17 junior mining companies listed in the Venture Exchange of the Lima Stock Exchange.

KALLPA SAB - Equity Research Coverage

Kallpa´s Equity Research Team covers 18 companies that trade in the Lima Stock Exchange.

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GRAMONC1 VOLCABC1 FERREYC1

PML BROCALC1

TV

ALICORC1

CVERDEC1

BAP

SUE

RIO SCCO

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Watchlist’s performance 2010 – 2013 126.33%

INCA’s performance 2010 – 2013 10.35%

Source: Bloomberg, Kallpa SAB Closing prices as of 10-31-2013 Exchange rate: 2.7752

Kallpa Securities SAB recommends to invest in equity considering a fundamental analysis. The Watchlist is a portfolio with eight equity stocks that our Research team likes the most.

Perf. 2010 2011 2012 2013

Watchlist 130.56% -1.35% 27.78% -21.82%

INCA 56.67% -21.23% 6.60% -16.11% -50%

0%

50%

100%

150%

200%

250%

ene-

10

abr-

10

jul-

10

oct

-10

ene-

11

abr-

11

jul-

11

oct

-11

ene-

12

abr-

12

jul-

12

oct

-12

ene-

13

abr-

13

jul-

13

oct

-13

Watchlist vs. INCA 2010 - 2013

%C. Base

% INCA

Accumulated Watchlist: 126.3% Accumulated INCA: 10.4%

Stock # Shares Buy

price Initial

weight Initial Portfolio

- USD Closing

price Final Portfolio -

USD % YTD

RIO 7,468 5.04 12.5% 37,641 1.67 12,472 -66.9%

BAP 262 143.61 12.5% 37,641 137.80 36,118 -4.0%

BVN 1,070 35.17 12.5% 37,641 14.50 15,519 -58.8%

PML 60,712 0.62 12.5% 37,641 0.39 23,678 -37.1%

TV 35,849 1.05 12.5% 37,641 0.93 33,339 -11.4%

GRAMONC1 10,036 9.57 12.5% 37,641 12.05 43,575 15.8%

ALICORC1 11,712 8.20 12.5% 37,641 8.65 36,506 -3.0%

FERREYC1 52,482 1.83 12.5% 37,641 1.81 34,229 -9.1%

Total 100.00% 301,130 235,437



Watchlist: Kallpa SAB’s recommended portfolio – 10/31/2013

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KALLPA SAB: Number 1 in mining industry juniors in Peru

Leading SAB in primary placements in the Peruvian junior mining market.

Leading SAB listing junior mining companies in the Lima Stock Exchange.

Leading SAB sponsoring junior mining companies in the Lima Stock Exchange.

Leading SAB in arbitrage operations in the Peruvian market.

Leading SAB promoting the junior mining industry in Peru.

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KALLPA SAB – Primary Offerings

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- Kallpa Securities is the leader in equity primary private placements among junior mining companies in Peru.

- In 2010-2013 Kallpa SAB placed US$ 100 mn among Peruvian investors.

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Kallpa Securities SAB is sponsor of 14 junior mining companies and advisor of 5 companies that list in LSE mainboard.

KALLPA SAB – Achievements

ORGANIZATION CHART

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CEO

Managing Director-Sales & Trading

Trading Desk

Chacarilla Sales Desk

South Region Sales Desk (Arequipa & Tacna)

Managing Director-Capital Markets

Managing Director-Corporate Finance

Equity Research Portfolio

Management

COO

Operations

Accounting

IT

Administration

Controller Compliance Officer

TEAM

Trading

Research and Investments

Operations

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• Enrique Hernández

• Eduardo Fernandini

• Javier Frisancho

• Jorge Rodriguez

• Alberto Arispe

• Ricardo Carrión

• Marco Contreras

• Edder Castro

• Humberto León

• Ramiro Misari

• Mariano Bazán

• Diego García

Sales

Internal Control

• Elizabeth Cueva

• Daniel Berger

• Hernando Pastor

• Jesús Molina Contreras

• Gerson Del Pozo

Customer Service

• Flavia Reyes

LONG TERM VIEW

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Brokerage Firm

Investment Banking

Asset Management

Private Banking

Long Term

Brokerage House

TODAY

Asset Management

Brokerage House

June 2008

KALLPA SECURITIES SAB

Av. La Encalada 1388 – Oficina 802 – Edificio Centro Empresarial Polo Hunt I

Contact Information

Managing Director – Trading [email protected] (511) 630 7515 (51) 9 9647 2318

Enrique Hernández

Managing Director – Corporate Finance [email protected] (511) 630 7526 (51) 9 9347 9320

Ricardo Carrión

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mailto:[email protected]

mailto:[email protected]

The content of this documents is only informative and referential

T R A D I N G – C O R P O R A T E F I N A N C E – E Q U I T Y R E S E A R C H - A S S E T M A N A G E M E N T

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