I N V E S T O R PRESENTATION. Second Quarter 2018

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Transcription:

I N V E S T O R PRESENTATION Second Quarter 2018

Grupo Bimbo Today Control Group: 75% Float: 25% Market cap (1) Sales (2) Adj. EBITDA (2) Countries Plants Routes Points of sale Associates Products US$10 Bn US$14.7 Bn US $1.4 Bn 32 202 59,000 3.1 mm 141,000 13,000 North America Mexico Latin America EAA U.S. Canada (1) As of July 6 th, 2018. Expressed in US$ at the FX of $18.98 Ps./US. (2) Net sales and Adjusted EBITDA for the last twelve months ended June 30, 2018 were Ps. 275,887 million and Ps. 26,390 million, respectively. Converted to US dollars using an average FX rate of the period of Ps. 19.37/US$. Adj. EBITDA: earnings before interests, taxes, depreciation, amortization and other non-cash items. 2

Globally Present, Locally Committed North America (1) Sales: 51% Adj. EBITDA: 43% Mexico Sales: 30% Adj. EBITDA: 56% Latin America (2) Sales: 10% Adj. EBITDA: 2% 83 34 EAA (3) Sales: 9% Adj. EBITDA: -1% 47 Emerging Markets 43% Grupo Bimbo Sales Split (4) Developed Markets 57% 38 Figures as of June 30, 2018 Note: Adjusted EBITDA excludes the one-time charges for the VSP. (1) Includes operations in the U.S. and Canada. (2) Includes operations in Central and South America. (3) Includes operations in Europe, Asia and Africa. (4) Grupo Bimbo sales split, last twelve months as of June 2018. Developed markets include U.S., Canada and Europe. 3

Our Company: 2015 vs. 2018 (1) Our Framework to Grow GLOBAL MARKET SHARE > 4.4% 4.7% (2) REVENUE US$13.8B > US$14.7B ADJ. EBITDA US$1.5B > US$1.4B (1) Figures for the last twelve months ended June 30, 2018 (2) Source : Global Data as of 2018 4

CATEGORIES CHANNELS Strong Category and Channel Diversification Sliced Bread Buns & Rolls Bagels English Muffins Cookies Cakes Pastries Tortillas Salty Snacks Strong leadership position across markets North America Mexico Latin America (1) EAA (1) Confectionery GB market share not within top 3 in ranking Source: Euromonitor, IRi and Company Information (1) Market share position for the countries where GB participates in each category. (2)Excludes U.K and India. (3) Excludes China, Morocco and U.K. (4) Excludes Spain (2) (4) (3) 1 2 3 4 Modern Channel Supermarkets, convenience stores, among others Traditional Mom & pops Foodservice QSR, schools, hospitals, restaurants, among others Others Vending machines, wholesale, among others 5

Brands Brands Brands Brands Global Brands with Top of Mind Awareness 2 + US $500 M I L L I O N 10 + US $100 MILLION 5 +US $1 BILLION 4 + US $250 MILLION 19* 13* 11* 14* 20* *Brands in more than 10 countries Source: Internal information on estimated retail sales by brand considering the last twelve months as of June 30, 2018 6

World Class Production and Distribution Capabilities with Superior Execution at the Point of Sale 62 million packages produced everyday 202 facilities with access to state-of-the-art technology Focused on low cost production Investing in robotic process automation Benefit from Scale and Efficient Production Capabilities To serve our customers, our distribution team travels every day, the equivalent of 98 laps around Quality and freshness guaranteed More than 3.1 million points of sale served One of the largest fleets in America 7

Our Innovation Platform First Half Success Stories Disruptive product innovation In-store bakery E-commerce Distribution capabilities Investment in promising start ups Leveraging disruptive techology TECHNOLOGY Electric vehicles Big Data: increasing our information processing and storage capabilities Artificial intelligence Packaging and zero waste Water treatment in plants Residual energy recovery in ovens 8

Steering Committee The Management Team has Positioned Grupo Bimbo as a Global Market Leader Top Management Track record of stability and sustainable growth D A N I E L S E R V I T J E Chairman of the Board Successfully developed and consolidated market leadership Focus on effective and rapid response to the constantly changing consumer demands and competitive environment Audit Committee and Corporate Practices (5 independent members) Results and Evaluation Committee (5 members, 1 independent) Finance & Planning Committee (6 members, 1 independent) Outstanding Corporate Governance Corporate Governance aligned with shareholders interests 35% of board members are independent 3 corporate committees JAVIER A. GONZÁLEZ Executive VP D A N I E L S E R V I T J E CEO PABLO ELIZONDO Executive VP GABINO GÓMEZ Executive VP Focused on Social Responsibility Named One of the most ethical companies in the world in 2018 by the Ethisphere Institute Ranked among the most respected companies in the world (1) DIEGO GAXIOLA CFO ALFRED PENNY BBU President RAÚL OBREGÓN Chief Global Transformation MIGUEL ÁNGEL ESPINOZA Bimbo President RAÚL ARGÜELLES Chief HR and Corporate Affairs RICARDO PADILLA Barcel President Recognized as The company with the best corporate reputation in Mexico in 2017 by Merco. Its reputation has been built on a strong corporate identity and brand image The most committed company in Mexico to the use of renewable energies and sustainability - MIREC Social Responsibility Program as a key component of corporate identity RAFAEL PAMIAS Executive VP Complies with the global strategy of the World Health Organization on diet, physical activity and health (1) According to Reputation Institute, RepTrak Pulse as of 2016. 9

Building a Sustainable, Highly Productive and Deeply Humane Company We care for our environment and act consequently We work on innovations that prove a sustainable mindset We value the person and respect human rights We work to create and promote sustainable communities This is how we reach our Vision, fulfill our Mission and meet our Purpose 10

Sustained Growth with Potential to Increase Profitability Net Sales (1) Adj. EBITDA (1) 176.0 187.1 219.2 252.1 267.5 275.9 17.3 18.4 23.4 29.3 28.6 27.3 2013 2014 2015 2016 2017 LTM 2Q18 2013 2014 2015 2016 2017 LTM 2Q18 GB 9.8% 9.9% 10.7% 11.6% 10.2% 10.4% Mexico 15.8% 16.7% 17.6% 18.7% 17.7% 18.0% North America 7.3% 6.2% 8.3% 9.4% 9.2% 8.8% (1) Figures in billions of Mexican pesos and using a 4.5 year period. Latin America EAA 0.7% -3.8% 3.9% -0.9% 2.1% -4.4% 1.0% 2.7% 1.9% -8.4% 4.8% -7.0% 11

First Half 2018 Review: G r e a t n e w s Mexico is flying o Strong volume performance o Increased client penetration growth in every channel, category and brands Set a record of the number of clients reached, achieving more than 3.1 million points of sale Investing to enhance profitability Voluntary Separation Program in BBU o Reduce organizational complexity o Increase productivity Integration: Donuts Iberia Improving our financial profile Zero base budgeting savings Global procurement initiative Issued one hybrid bond o US $500 mm @5.95% Challenges Pressure from commodity and energy inflation in North America Complicated environment in some markets Investing for f u t u r e g r o w t h O n e t i m e h i t s Strategic acquisition: National truck strike in Brazil Mankattan in China Voluntary Separation Agreement with Invenergy. Grupo Program in the U.S $105 million dollars non-cash Bimbo will reach 75% renewable charge energy at a worldwide level Legal expenses in North Capex projects to improve America efficiency 12

L O O K I N G F O R W A R D B y 2 0 2 0, w e t r a n s f o r m t h e b a k i n g i n d u s t r y a n d e x p a n d o u r g l o b a l l e a d e r s h i p t o b e t t e r s e r v e m o r e c o n s u m e r s 13

Accelerating and Creating Venues of Growth Bimbo QSR World s most populated country 2 nd largest economy 6.7% average GDP growth Increased manufacturing footprint from 1 to 10 plants following the acquisition of Bimbo QSR & Mankattan INDIA New growth avenue for Grupo Bimbo We are present in 73% of the global QSR markets High growth industry CHINA 7% average GDP growth 2 nd most populated country #7 World economy Opportunity to expand nationwide Fastest growing economy in 2018 Bakery industry doubled in the last 5 years 14

Resulting in a Proven Track Record of Deleveraging Leverage Total debt/ Adj. EBITDA 3.3 (1) 3.1 3.0 3.2 (1) 2.9 2.8 3.3 (2) 3.2 (3) 2.3 2.1 2.3 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 2Q18 US$ 2.4 bn US$ 709 mm CAD$ 1.8 bn US$ 650 mm (1) Pro-forma leverage ratio with the acquisition of Weston Foods and Canada Bread, respectively. (2) Pro-forma leverage ratio with the acquisition of East Balt Bakeries, without the adjustment the ratio would have been 3.5x. (3) Pro-forma leverage ratio excluding the VSP charge and with pro forma Bimbo QSR, without the adjustment the ratio would have been 3.5x 15

Conservative Debt Profile and Ample Liquidity Total Debt: US$4,456mm Avg. Tenor: 11.1 yrs. Avg. Cost: 6.0% Figures in US$ mm as of 2Q 18 Currency Mix (2) % MXN 36% US$2.1bn in undrawn committed revolver facilities CAD 5% USD 59% 800 800 800 403 503 500 650 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2044 2047 Local Notes Note: Amortization profile does not include US$ 232mm debt at subsidiary level. (2) Considers derivatives. International Notes 16

Key Investment Highlights Global consumer food company, leader in the baking industry, with diversified portfolio of categories, channels and geographic presence Global brands with top of mind awareness Growth opportunity within a fragmented industry Proven sustained growth with history of margin expansion World class distribution, efficient production capabilities and a leading innovation platform Experienced management team and strong corporate governance Solid revenue base with higher exposure to developed markets Strong and consistent cash flow generation that results in proven track record of deleveraging Strong financial position with solid balance sheet and investment grade credit metrics 17

Thank you! #ConElCariñoDeSiempre www.grupobimbo.com ir@grupobimbo.com 18

Disclaimer The information contained here in has been prepared by Grupo Bimbo, S.A.B. de C.V. (the Company") solely for use at this presentation. This presentation does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securities and should not be relied upon to form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation or warranty, either express or implied, is made as to the accuracy, reliability or completeness of the information presented herein. This presentation has been prepared solely for informational purposes and should not be construed as containing any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. This presentation should not be regarded by recipients as a substitute for the exercise of their own judgment in connection with any investment activity. The merit and suitability of an investment in the Company should be independently evaluated and any person considering such an investment in the Company is advised to obtain independent advice as to the legal, tax, accounting, financial, credit and other related advice prior to making an investment. Any opinion expressed herein is subject to change without notice, and the Company is under no obligation to update or keep current the information herein. The Company accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this presentation. This presentation includes forward-looking statements. Such forward-looking statements are based on certain assumptions and current expectations and projections about future events and trends that may affect the Company s business 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 other unknown factors, including those relating to the operations and business of the Company. These and various other factors may adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. Forward-looking statements speak only as of the date on which they are made. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The Company s independent public auditors have neither examined nor compiled this presentation and, accordingly, do not provide any assurance with respect to any information included herein. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur and are not guarantees of future performance. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. The information included in this presentation may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person or published in whole or in part for any purpose or under any circumstances without the Company s prior written consent. 19