non deal roadshow rs 25jul13

8/22/2019 Non Deal Roadshow RS 25JUL13

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Municipalidad Metropolitana de LimaJuly 2013


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Disclaimer

1

The material that follows is a presentation of general background information about the Municipalidad Metropolitana de Lima o r the Company as of the date of this

presentation. This material has been prepared solely for informational purposes and it is not to be construed as a solicitation or an offer to buy or sell any securities

and should not be treated as giving investment advice to potential investors. It is not targeted to the specific investment objectives, financial situation or particularneeds of any recipient. It is not intended to provide the basis for any third party evaluation of any securities or any offering of them and should not be considered as a

recommendation that any investor should subscribe for or purchase any securities. The information contained herein is in summary form and does not purport to be

complete. Certain information has been obtained from public sources. The information contained in this material has not been independently verified by the initial

purchasers or any of their respective affiliates. No representation or warranty, either express or implied, by the Company, the initial purchasers or any of their

respective affiliates is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this

presentation.

This presentation contains forward-looking statements, as that term is defined in Section 27A of the U.S. Securities Act of 1933, as amended (the Securities Act)

and Section 21E of the U.S. Securities and Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of

future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and

factors relating to the operations and business environment of the Company that may cause the actual results of the Company to be materially different from any futureresults expressed or implied in such forward-looking statements. No person has any responsibility to update any such information.

Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. This presentation is being

made only to investors that, by means of their attendance at this presentation, represent to the initial purchasers that they are Qualified Institutional Buyers as that

term is defined in the Securities Act. Any offering of securities to be made in the United States will be made by means of an offering memorandum that will be sent to

you at the address you provided today. Such offering memorandum will contain, or incorporate by reference, detailed information about the Company and its business

and financial results, as well as its financial statements. Investment decisions should be solely made on the basis of the offering memorandum and not on the basis of

this presentation.

This communication does not constitute an offer to the public in the United Kingdom and consequently this material is for distribution only to persons who (i) are

outside the United Kingdom, or (ii) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Servicesand Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the Order), or (iii) are high net worth entities and other persons to whom it may lawfully be

communicated, falling under Article 49(2)(a) to (d) of the Order, all such persons together being referred to as relevant pe rsons. This material is directed only at

relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is

available only to relevant persons and will be engaged in only with relevant persons.

This presentation is strictly confidential and is being submitted to selected recipients only. This presentation may not be reproduced (in whole or in part), distributed or

transmitted to any other person without the Companys or the initial purchasers prior written consent. This presentation is not intended for distribution to, or use by any

person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

This presentation does not constitute an offer, or invitation, or solicitation or an offer, to subscribe for or purchase any securities. Neither this presentation nor anything

contained herein shall form the basis of any contract or commitment.


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Presenters

2

Presenter Background

Jose Miguel CastroCEO

Mr Castro holds a Master Degree in Business Administration and a MasterDegree in Public Affairs and International Relations from the University ofPittsburgh, USA and he is also an Economist from the UniversidadCatolica del Peru

Chairman of the Caja Metropolitana de Lima

Ample experience in banking as Corporate Bank and Leasing Manager atInterbank (2007 2010) and Manager of Financing and Development ofSMEs at COFIDE (2004 2005)

Martn SanabriaCFO

Mr. Sanabria holds a Master Degree in Finance and a Diplomat inCorporate Finance from Universidad del Pacifico. He earned a BachelorsDegree in Industrial Engineering from the Universidad de Lima

Director of SERPAR OPD and EMMSA Municipal Corporation

Experience at the Municipality of Lima as Treasurer and at COFIDE asanalyst in the Corporate and Institutional Administration department. Hewas also a senior analyst at the Trust Structure and Operations group in

COFIDE
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Key Investment Highlights

3

6. High Commitment to Improve the Quality Life in the City

5. Low Dependency from Central Government Transfers

1. Capital of the Fastest Growing Country in the Region

4. Strong Revenue Growth in the Last Years

3. Infrastructure Development Supported by Private Investors

2. Diversified Economy

7. Attractive Debt Profile

8. Sound Debt Track Record


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Section 1

Economy of Lima


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Favorable Macroeconomic Fundamentals

5

Peru has been the fastest growing economy in Latin America in recent years, with solid economic metrics andimproving social indicators.

Sustained Growth with Controlled Inflation

Controlled Fiscal Balance

Fast Growing Economy

Solid Currency

6.5%

4.0% 3.8%

1.7%

3.2%

5.8%

4.8% 4.6%3.7% 3.6%

Peru Chile Colombia Mexico Brazil

'08-'12 '13E-'17E

5 Year Average Real GDP Growth (%)

$4,481 $4,484

$5,241

$6,064

6.7%

3.0% 2.1%4.7%

2008 2009 2010 2011

GDP per Capi ta In flat ion

GDP per Capita (US$) & Inflation (%)

70

90

110

130

150

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

Peru Chile Colombia Mex Brazil

Historic FX Evolution (LC:US$)

1.1%

2.1%

(1.1%)(1.5%)

(2.5%)

0.9%1.9%

(0.5%)(1.1%)

(2.3%)

Peru Chile Colombia Mexico Brazil

' 07-' 11 ' 12E-' 16E

5 Year Average Fiscal Balance / GDP (%)

Source: EIU Report and INEI.
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The City of Lima

6

Lima, the capital of Peru, is the political, financial, economic and cultural center of the country, representingapproximately 48.4% of the total GDP of Peru in 2011.

Key Highlights

Current Mayorof theMunicipality:

Ms. Susana Villarn de laPuente, which her term ends onDecember 31, 2014

Area: 2,812 square kilometers

Districts: 43 districtsNominal GDP: S/. 108.6 MM (2011)

GDP PerCapita:

S/ . 21.6 thousand (2011)

Population: 7,605,742 inhabitants(Census 2007)

The Lima Department is comprised of 10 provinces and the Constitutional Province of Callao (or Callao), which is adjacent to Lima and contains

Perus principal port Lima is the largest city in Peru in terms of GDP and population, and the 6th largest city in Latin America

The City of Lima was founded byconquistador Francisco Pizarro

1535

2012 Projections:

9.3 millioninhabitants, or 31%

of Perus total

population

Source: INEI.

Census 1993:4.4 millioninhabitants, or19% of Perus

total population

Census 2007:7.6 million

inhabitants, or27% of Perus

total population


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Economy of the City

7

The sustainable economic growth is due to increased private and public savings and investment, successfulnational macro-economic policies and the concentration of the services, commercial and construction industries.

GDP per Capita Diversified Economy (2012)Restaurants and

Hotels4.9% Construction

5.1%

Commerce19.1%

Communicationsand Transportation

10.9%

Manufacturing17.4%

GovernmentServices

5.0%

Agriculture3.0%

Others(1)34.4%

91.0 91.4

100.4

108.610.9%

0.5%

9.8%

8.2%

2008 2009 2010 2011

Lima (S/.bn) Real GDP Growth (%)

Source: INEI.(1)Others include: Electricity & Water (2.0%), Fishing (0.2%), Mining (0.8%) and Other Services (28.1%).

GDP Evolution Construction Sector Growth

(S/. thousands)

17.1 17.819.6

21.6

13.1 13.514.8

16.7

2008 2009 2010 2011

Lima Peru

CAGR Peru 08 11: 8.4%

CAGR Lima 08 11: 8.1%

211

304330

423

5%6%

5%6%

2009 2010 2011 2012

Alcaba la (S/. MM) Construction Sector - Lima (%)


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Strategic Goals

8

Enlarge capacities and ensure social and cultural rights Promote competitive development of sustainable economic activities

Human Development

Improve living conditions and public safetyCoexistence & Security

Manage the recovery and safe occupationUrban Development & Public

Space

Improve conditions for safe and eff icient transportationUrban Mobility

Lead environmental management in Lima Prepare the city for climate change adaptation

Environment

Manage the Lima Metropolitan Government based on the principles of good governanceManagement & Good

Government

Main Goals

Municipalidad Metropolitana de Lima (MML) Principal Values

Excellence

Planning

Authority

Agreement

Transparency


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Infrastructure Development through PPPs

9

The current administration has been working on developing infrastructure projects through public-privatepartnerships (PPPs).

Main Concessions Awarded

Concession awarded in January 2013 for the upgrade, expansion andoperation of the toll roads comprising the Panamericana highway withinMetropolitan Lima

It grants the concessionaire the right to operate the toll road and collect tollsfor 30 years in exchange for the requirement to make expansion andmaintenance expenditures of approximately US$500 million and to pay to theMML a fee of 4% of the tolls collected

Concession awarded in November 2009 for the upgrade, expansion andoperation of the toll road comprising the Evitamiento highway

It grants the concessionaire the right to operate the toll roads and collect tolls

for 40 years in exchange for the requirement to make expansion andmaintenance expenditures of approximately US$580 million and to pay to theMML a fee of 7% of the tolls collected
http://rutasdelima.pe/index.php


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MMLs Entities

10

Through its municipal entities, the MML administers their tax collection, several administrative functions andother important public services

Municipal entities are comprised of OPDs, which are decentralized agencies, and Municipal Corporations,

which are wholly-owned corporations controlled by the Municipality

Both the OPDs and Municipal Corporations are separate legal entities from the MML

MMLs Entities Organizational Chart

EMAPE

EMMSA

EMILIMA

CajaMetropolitana

MunicipalCorporations

SAT

INVERMET

ICL

IMP

OPDs(1)

SISOL

METROPOLITANCOUNCIL

PATPAL

A.P. COSTAVERDE

PROTRANSPORTE

PROHVILLA

SERPAR

Name Description

Administration and collection of all tax revenues and fines

for the MML

Infrastructure development fund that finances the

investment programs and urban works in Metropolitan

Lima

Responsible for the segregated bus corridors that are

used in connection with the Metropolitano mass transit

system, its infrastructure and other related activities

Toll road collection, highway and road maintenance and

construction

Management and operation of Parks

Provides and coordinates Municipal health care services

Promotes consumer savings and provides consumer

credit, granting loans to micro and small businesses and

providing home mortgage financing

Main MMLs Entities

(1) Organismos Pblicos Descentralizados(Public Decentralized Agencies or OPDs).


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Section 2

Financial Highlights


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876.3

1,031.21,116.1

1,179.41,384.0

2008 2009 2010 2011 2012

Local Tax Revenues Local Non-tax Revenues Transfers from Central Government Transfers from Others

Strong Revenue Growth

12

Transfer from Central Government &

Others Composition (2012)

Revenue Evolution(S/. millions)

Local Tax Revenue Composition (2012)Local Non-Tax Revenue

Composition (2012)

Alcabala Tax67.1%

Motor Vehicle Tax26.1%

Real Estate Tax5.6%

Other Local TaxRevenues

1.2%

Toll Revenues47.8%

Traffic and Other Fines24.7%

Lima District Cleaningand Safety Charges

11.1%

TUPA AdministrativeCharges

6.0%

Interest2.7%

Other Local Non-taxRevenues

7.6%

Transfers from Others1.5%

FONCOMUN56.4%

Slot Machines andCasinos25.7%

Other Current Transfers0.1%

Discretionary Transfers16.4%

% of Revenue: 45.6% % of Revenue: 41.4% % of Revenue: 13.0%


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Optimal Expenses

13

Capital Expenditures Composition (2012)

Expenditures Evolution(S/. millions)

Current Expenditures Composition (2012)

InfrastructureProjects

91%

Capital Goods5%

Other CapitalExpenditures

4%

% of Expenditures: 69.9% % of Expenditures: 30.1%

458.4 508.9 607.8636.2

890.6

373.3636.0

747.5

260.9

383.5

95%

111%

121%

76%

92%

2008 2009 2010 2011 2012Current Expenditures Capita l Expenditures % Revenues

Staff13%

ContractedPersonnel 10%

Transfersto Districts

21%Transfersto OPDs

andMunicipal

Corporations 13%Other Transfers

4%

Goods andServices 18%

Road and InfrastructureMaintenance

13%

InterestPayments 2%

PensionContributions

4%

Other CurrentExpenditures

2%


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Budget Process

14

The annual budget represents an estimate of revenues expected by the Municipality. It also constitutes anauthorization of, and a limit on, expenditures by the Municipality.

Programming Formulation Approval ExecutionAssessment

& Control

Budget Flow Steps

Budget Principles

1 2 3 4 5

Principle Description

Equilibrium Between revenues and expenses

Universality Total revenues and expenses

Unit All budgets from business units

Specification Detail of sources and expenses

Exclusivity Budget nature

Anuality Year validity

Continuity Results and perspectives

Sincerity Technical support

Publicity Diffusion


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2013 Budget

15

The draft budget was submitted to the Metropolitan Council on December 7, 2012. The 2013 budget wasapproved by the Metropolitan Council on December 27, 2012.

Main Assumptions2013 Budget

Revenues

Growth in the construction sector and an increase in carspurchases will back local tax revenues increase

Non-tax revenues will decrease as the MML transferred theright to collect tolls to private sector concessionaires

Expenses

The projected increase in the minimum wage for staff and anincrease in contracted personnel will boost personnel expenses

Transfers expenses will increase to the higher Alcabala taxcollections

Lower requirements for consulting services and researchstudies will drive goods and services expenses down

The transfer of the right to collect tolls to privateconcessionaires will reduce road and infrastructuremaintenance

PEN Million 2012 2013 BudgetIncrease/

Decrease

Revenues

Local Tax Revenues 630.5 696.6 10.5%

Local Non-tax Revenues 572.6 322.0 -43.8%

Transfers from Central Government 178.1 169.8 -4.7%

Transfers from Others 2.7 3.9 42.9%

Total Revenues 1,384.0 1,192.4 -13.8%

ExpendituresCurrent Expenditures

Personnel 200.2 211.6 5.7%

Transfers 340.1 350.3 3.0%

Goods and Services 162.5 158.3 -2.6%

Road and Infrastructure Maintenance 113.5 76.8 -32.3%

Interest Payments 12.9 5.4 -58.1%

Pensions and other Social Contributions 39.6 45.6 15.2%

Other Current Expenditures 21.8 22.6 3.7%

Capital ExpendituresInfrastructure Projects 350.4 461.9 31.8%

Capital Goods 17.2 15.1 -12.2%

Other Capital Expenditures 15.9 -

Total Expenditures 1,274.1 1,347.6 5.8%

Balance 109.9 -155.2

Beginning Cash Balance 645.5 666.9

Total Balance 755.4 511.7


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2013 2014 Development Plan

16

The MMLs current administration has set as its overall goal to improve the quality of life of Limas residents.

Type of Project GoalBudgeted Capital

Expenditures

Recreational, cultural and sport services Increase the availability and quality of parks and other public spaces S/.256.5 million

Road infrastructure Reduce the average commute time to work for its residents S/.182.9 million

Public administration projects Integrate and develop Metropolitan Limas poorest areas S/.300.0 million


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Section 3

Debt of the MML


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MMLs Debt

18

The MML has experienced a significant decrease in its debt burden in the last years. The District strictlymonitors the incurrence of indebtedness.

Solid Debt Credit Ratios

Debt Maturity Breakdown by Currency

Debt Evolution

Debt Breakdown by Creditor

420

486519

394 372 352

2008 2009 2010 2011 2012 Mar -13

Internal Debt External Debt

48% 47% 46%

33%27%

10% 11%

19%12%

10%

2008 2009 2010 2011 2012

Total Debt/Current Revenues Debt Service/Current Revenues

Debt with

Banks22%

Debt withConcession

Operator32%

IDB27%

IBRD19%

Debt inLocal

Currency54%

Debt inForeign

Currency46%

38%43%

42%

49% 44% 46%

62% 57% 58% 51% 56% 54%

(2012) (2012)

(S/. millions)


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MMLs Internal Debt Process

Metrics

Total debt / current revenues


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Key Investment Highlights

20

6. High Commitment to Improve the Quality Life in the City

5. Low Dependency from Central Government Transfers

1. Capital of the Fastest Growing Country in the Region

4. Strong Revenue Growth in the Last Years

3. Infrastructure Development Supported by Private Investors

2. Diversified Economy

7. Attractive Debt Profile

8. Sound Debt Track Record