Becle, S.a.b. De C.v. · BMV:CUERVO
Becle, S.a.b. De C.v — Investor Presentation (May 2022)
23 slides from Becle, S.a.b. De C.v's investor presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation Becle, S.A.B de C.V. May 2022
Slide 2: Becle: A Leading Global Spirits Company and Undisputed Leader in Tequila Worldwide
Becle: A Leading Global Spirits Company and Undisputed Leader in Tequila Worldwide Becle Today Diversified Product Portfolio with Over 30 Brands 2021 Key Figures • Undisputed leader in tequila globally, ~29% Exposure to the Right … With the Right High-Growth 25.5MM market share(1) Geographies… Categ
Slide 3: Becle's Outstanding Performance Makes it Today a Stronger Credit than in 2015
Becle's Outstanding Performance Makes it Today a Stronger Credit than in 2015 2015 2021 Becle’s last bond issuance 18.2MM 1.4X 25.5MM of 9 Liter Cases of 9 Liter Cases NSV/Case (1) US$51 NSV/Case (1) US$75 933 MM 2.1X 1,915 MM Net Sales (US$) (2) Net Sales (US$) (2) Focus on brand premiumization Net
Slide 4: Our Company
Our Company 1 Undisputed Global Leader in Tequila and #3 in Irish Whiskey 2 Dominant Position in the Hottest Spirits Category… 3 …And a Privileged Competitive Position… …In High-Growth Spirits Categories Through an Extensive Product 4 Portfolio with Focus on Premiumization Proven Agility and Innovat
Slide 5: Undisputed Global Leader in Tequila and #3 in Irish Whiskey
1 Undisputed Global Leader in Tequila and #3 in Irish Whiskey Global Leader in Tequila… ... In Every Region As of 2020 Volume – Total Market Size 35.5MM 9L Cases As % of volume - 2021 United States (62% of 2021 Global Volume) 29.3% 1ST 25.4% 10.3% Owner of 3 of Top 7 Rest of the World Leading Tequil
Slide 6: Dominant Position in the Hottest Spirits Category
2 Dominant Position in the Hottest Spirits Category… Since Last Issuance, Tequila has… A …Been the Fastest Growing Major Spirits Category in the US and Second Fastest in the World B …Significantly Increased its Market Share (2015 - 2020 9L cases volume CAGR) (In terms of 9L cases volume) In 2020 Teq
Slide 7: And a Privileged Competitive Position
3 …And a Privileged Competitive Position… High Barriers of Entry Provided by Becle’s Vertical Integration and Own Distribution Agriculture Production Distribution Competitive Advantage Resulting from Appellation of Flagship Distilleries and Bottling Facilities Support Own Distribution Platform to Co
Slide 8: In the Right Categories & Markets
4 … In the Right Categories & Markets… Exposure to Dynamic Regions and Categories Spirits Growth | 2015-2020 9L cases Volume CAGR (1) 67% of Becle’s Sales in Tequila & Irish Whiskey 70% of Becle’s Sales in the U.S. & Canada 9.7% 9.5% 7.7% 4.8% 3.3% (2.9%) (2) Tequila Irish Whiskey Total Spirits Tequ
Slide 9: Through an Extensive Product Portfolio with Focus on Premiumization
4 … Through an Extensive Product Portfolio with Focus on Premiumization Diversified Brand Portfolio Net Sales by Category Jose Cuervo Family 1800 Other By value as of 2021 Tequila Prestige Super Premium Super Premium/ Premium Super Premium Ultra Premium Ultra Premium Irish Whiskey U.S. Whiskey Whisk
Slide 10: Proven Agility and Innovation Driving a Resilient Business Model
5 Proven Agility and Innovation Driving a Resilient Business Model with High Operating Cash Generation Capacity Becle’s Agile & Innovative Business Model is a Key Driver of its Outperformance Net Sales Y-o-Y | (%) 32.1% Becle’s resiliency proven in 2021 results 20.6% 17.9% 12.5% 9.7% 8.5% ∆ 4.3% 6.4
Slide 11: Best-in-Class Capital Structure & Prudent Financial Policy
6 Best-in-Class Capital Structure & Prudent Financial Policy Whilst Delivering Consistent Growth Best-In-Class Credit Metrics Total Debt / Market Cap (1) Total Debt / 2021 EBITDA 71.3% 4.8x 3.3x 3.4x 2.3x 2.6x 25.2% 2.1x 15.5% 8.6% 11.3% 6.2% Diageo Brown-Forman Pernod Constellation Heineken Brown-F
Slide 12: Renowned Family Heritage and Strong Corporate Governance
7 Renowned Family Heritage and Strong Corporate Governance Becle is a Global Spirits Company with a Profound Family Heritage Ownership • Founded in 1758, Becle is today an 11th generation managed spirits company Public Float 13% • Public company since 2017 and part of the S&P/BMV IPC and MSCI indexe
Slide 13: Strong Social and Sustainability Driven Culture
8 Strong Social and Sustainability Driven Culture We Care About our People, our Customers & the Environment Awards & Recognitions Responsible Community Consumption Engagement We promote responsible and moderate consumption of spirits We work closely with the aiming to safeguard our communities where
Slide 14: Becle's Environmental Initiatives Aligned to UN Sustainable Development Targets
8 Becle’s Environmental Initiatives are Fully Aligned to the UN Sustainable Development Targets US$60+ MM Invested Since 2010 in Sustainable Projects # Number of Projects 15 5 4 Climate Change Preserve Water Circular Economy SDG Alignment • New factories with Energy efficient design to • Wastewater
Slide 15: New Issue Concurrent with Liability Management Exercise
New Issue Concurrent with Liability Management Exercise to Increase Debt Maturity Profile and Maintain Strong Liquidity Transaction Rationale Debt Maturity Profile As of 2Q21 | US$ MM (1) • Refinance upcoming maturities and extend debt maturity profile – Weighted average life from (4) 800 3.1yrs to
Slide 16: Contemplated Transaction is Essentially Leverage Neutral
From a Net Debt Perspective, Contemplated Transaction is Essentially Leverage Neutral Sources and Uses As of 2Q21 | US$ MM (1) Sources Uses New Sr. Notes 800 (2) Bank Loan Repayment 150 Repurchase of 2025 Sr. Notes (3) 350 Tender Premium Paid on 2025 Sr. Notes (4) 34 General Corporate Purposes 266 T
Slide 17: Financial Statements
Financial Statements 16
Slide 18: Income Statement
Income Statement Twelve months ended December 31st (1) (1) Fourth quarter ended December 31st (1) 2020 % of net sales 2021 % of net sales 2021 (USD)(2) 2020 % of net sales 2021 % of net sales 2022 (USD)(2) (Ps&MM) Net sales 35,036 39,419 1,915 10,729 13,128 638 Cost of goods sold 16,790 47.9 18,145
Slide 19: Balance Sheet
Balance Sheet As of December 31st (1) (Ps$ MM) 2020 2021 2021 (USD) (8) Cash and cash equivalents 7,646 12,791 621 Trade receivables 9,214 10,284 500 Inventories (2) 11,486 13,027 633 Other assets (3) 3,281 2,057 100 Total current assets 31,627 38,159 1,854 Inventories (2) 10,855 12,455 605 Property
Slide 20: Cash Flow Statement
Cash Flow Statement As of December 31st (1) (2) (Ps$ MM) 2020 (1) 2021 2021 (USD) (1) Operating activities: Income before income taxes 6,854 6,908 336 Adjustment from items not implying cash flows: Depreciation and amortization 714 817 40 Loss on sale of property, plant and equipment 55 8 - Non-cash
Slide 21: Full Year 2022 Guidance
9 Full Year 2022 Guidance As of February 18th, 2022 • Items provided below are based on the Company's current estimates and are not a guarantee of future performance. • There could be significant risks and uncertainties that could cause actual results to differ materially, including the risk factors
Slide 22: Consolidated Statement of Comprehensive Income - Summary
Consolidated Statement of Comprehensive Income - Summary (1) (1) First Quarter ended First Quarter ended Year over Year March 31,2022 March 31,2021 Variance (Figures in millions) (Pesos) % of Net Sales (Pesos) % of Net Sales % Volume 5,370 ** 4,821 ** 11.4 Net sales 9,068 100.0 7,168 100.0 26.5 Gros
Slide 23: Consolidated Statement of Financial Position & Cash Flow - Summary
Consolidated Statement of Financial Position & Cash Flow - Summary (1) (1) First Quarter ended First Quarter ended Year over Year March 31,2022 March 31,2021 Variance (Figures in millions) (Pesos) (Pesos) % Cash & cash equivalents 10,327 10,953 (5.7) Total financial debt 18,223 13,476 35.2 Net debt/
Becle, S.A.B. de C.V. — Investor Presentation (May 2022) on 6ix