Gruma Sab De Cv Class B · BMV:GRUMA/B
Gruma Sab De Cv Class B — Investor Presentation (July 2022)
28 slides from Gruma Sab De Cv Class B's investor presentation, July 2022
Slide 1: Investor Presentation
Investor Presentation
Slide 2: GRUMA is the World's Largest Corn Flour and Tortilla Producer
GRUMA is the World´s Largest Corn Flour and Tortilla Producer with a Global Reach Sales US$4.6 Bn Plants 73 Mkt Cap2 US$4.6 Bn 2021 Approximately EBITDA1 US$736 mm Employees Float 49% 23,500 Gruma Gruma Asia Gruma USA GIMSA Gruma Europe Footprint Centroamérica & Oceania ▪ Tortilla ▪ Corn flour ▪ Tor
Slide 3: Strong Brand Awareness and Consumer Loyalty
Strong Brand Awareness and Consumer Loyalty Division Brands Products Mkt Position Tortilla 1 Gruma USA Tortilla Corn flour Corn flour GIMSA Tortilla Gruma Europe Tortilla 2 Corn flour 1 Gruma Centroamérica Tortilla 1 Tortilla 2 Gruma Asia & Oceania Tortilla 3
Slide 4: Driving Growth and Innovation in Health-Oriented Consumer Segments
Driving Growth and Innovation in Health–Oriented Consumer Segments Health – Oriented Consumer Trend ▪ Consumer awareness for healthier food has increased ▪ Consumers replacing breads with wraps popularity for alternatives in typical dishes and snacks ▪ Increased popularity of healthier snack options
Slide 5: New Launches, Dynamic Merchandizing Enhance Sales of Value-Added Higher Margin Products
New Launches, Dynamic Merchandizing Enhance Sales of Value-Added Higher Margin Products WW Chia & WW sprouted WW Pita quinoa wrap wrap WW carb Organic corn balance street Flatbread tortilla chips tacos Low-calorie corn tortillas 5
Slide 6: Consistent Growth in Net Sales and Profitability
Consistent Growth in Net Sales and Profitability Driven by Continuous Innovation, Global Reach… Volume (thousands of metric tons) 4,116 4,232 4,206 4,255 Volume 19’- LTM JUN’22 CAGR 1% 2019 2020 2021 LTM Jun'22 Net Sales and EBITDA (millions of US$) 5,019 4,624 Net Sales 19- LTM JUN‘22 CAGR 4,015 4,
Slide 7: Healthy Capital Structure Reflects a Disciplined Approach to Debt
…While a Healthy Capital Structure Reflects a Disciplined Approach to Debt Debt (Millions of US$) 1,713 1,420 1,486 1,511 365 266 335 319 1,154 1,151 1,192 1,348 1,030 1,097 775 2016 2017 2018 2019 2020 2021 Jun'22 Debt Leases Net Debt / EBITDA (times) 1.9x 2.0x 1.7x 1.6x 15.9% 2019 2020 2021 Jun'22
Slide 8: Healthy Debt Maturity Profile, Dollar-Denominated Debt
The Company Enjoys a Healthy Debt Maturity Profile, Where 64% of Debt is Dollar-Denominated, Backed by its U.S. Operations Debt Outstanding Maturity Schedule 1 (US$ mm) Debt by Currency Composition (As of June 30, 2022) 5% Others MXN USD 31% 64% Debt Maturity Schedule (US$ mm) 411.2 259.4 206.9 209.
Slide 9: Increased Dividend Payment Over Time and Share Buybacks
Improvement in Results, Higher-Cash Generation and a Healthy Financial Structure, Has Enabled GRUMA to Increase its Dividend Payment Overtime... Stockholder Ownership Dividend Payment Detail (millions of pesos) 2,500 2,280 3.0% Primary Shareholder Group 2,047 2,022 1,951 2.5% Float 2,000 1,848 1,852
Slide 10: ESG Efforts at GRUMA
ESG Efforts at GRUMA 1 2 3 4 Pillars of Social Renewable Energy Projects Supply Chain Residue Water Treatment Responsibility and Energy Efficiency Governance ✓Installation of solar ✓Residue water treatment ✓Organic product ✓Business Ethics panels in Malaysia, plants in the process of certificate in
Slide 11: Corporate Governance
Corporate Governance Juan Antonio González Moreno Chairman & CEO Executive Board Members Independent Board Members Laura Dinora Homero Huerta Moreno Carlos Hank González Martínez Salinas Chief Administrative Vice Chairman of Law Sector Officer the Board Committees 1 Javier Martínez- Jesús Oswaldo Ga
Slide 12: United States
BETTER Choices MADE Easy $Y United States
Slide 13: Gruma USA is the Largest Subsidiary and Leading Corn Flour and Tortilla Producer
Gruma USA is the Largest Subsidiary and the Leading Corn Flour and Tortilla Producer in the United States… Plant Distribution Map Business Description Summary 2021FY Net Sales Fife, WA US$2.6 Bn McMinnville, OR New Brighton, MN Hayward, CA Madera, CA Omaha, NE Fresno, CA Evansville, IN Panorama City
Slide 14: Clear and Solid Drivers of Growth in Both Main Markets in the United States
…With Clear and Solid Drivers of Growth in Both of our Main Markets of Focus in the United States Estimated Markets for Strong Growth of the Hispanic Population Tortilla and Flour in the U.S. ▪ 18% of total U.S. population, out of which 63% are Mexican Strong Growth of the Hispanic Population ▪ Hisp
Slide 15: Strong Consumer Demand and Richer Product Mix Improved Volumes and Profitability
Over the Past Few Years, Strong Consumer Demand, in Addition to a Richer Product Mix, Has Resulted in Improved Volumes and Profitability Volume (thousands of metric tons) 1,441 1,507 1,522 1,558 Volume 19’- LTM JUN’22 CAGR 2% 2019 2020 2021 LTM JUN'22 Net Sales and EBITDA (millions of US$) 2,597 2,8
Slide 16: Gruma USA Expects Continued Margin Improvement
Gruma USA Expects Continued Margin Improvement Based Principally on: ▪ Healthier alternatives Change in the sales mix towards higher- margin SKUs ▪ More value-added products ▪ smaller product count per package Efficiencies arising from new plants and capacity expansions ▪ Continuation with our polic
Slide 17: GIMSA
GIMSA
Slide 18: GIMSA is GRUMA's Second Largest Subsidiary and Leader of Corn Flour Industry in Mexico
GIMSA is GRUMA’s Second Largest Subsidiary and the Leader of the Corn Flour Industry in Mexico Plant Distribution Map Business Description Summary 2021FY Net Sales Mexicali US$1.2 Bn(1) Chihuahua Obregón Culiacán Nuevo León GIMSA Río Bravo La Paz Acaponeta Bajío Tampico Mérida Jalisco * México Verac
Slide 19: GIMSA's Commercial Strategies Have Protected Profitability
GIMSA’s Commercial Strategies Have Successfully Protected Profitability Despite Volumes Remaining at Stable Levels Volume (thousands of metric tons) 2,099 2,047 Volume 19’- LTM JUN’22 CAGR 2,042 2,040 0% 2019 2020 2021 LTM JUN'22 Net Sales and EBITDA (millions of US$) 1,249 1,353 1,159 Net Sales 19-
Slide 20: Expectations of GIMSA's Results are Based on...
Expectations of GIMSA´s Results are Based on... Transition from the traditional method to the nixtamalized corn flour method of making tortillas and other corn-based products, as the primary opportunity for increased nixtamalized corn flour sales, particularly in Mexico Stability of its operations a
Slide 21: Europe
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Slide 22: Gruma Europe is the Company's Third Largest Subsidiary
Gruma Europe is the Company’s Third Largest Subsidiary, Focused Mainly on the Tortilla Business Plant Distribution Map Business Description Summary 2021FY Net Sales US$335 mm Mission Foods Azteca Milling 74% of Revenues 26% of Revenues 6 Plants in Europe 3 Mills in Europe ▪ England (2) ▪ Italy ▪ Rus
Slide 23: Growth Potential for European Tortilla Market Supported by Three Consumer Trends
Growth Potential for European Tortilla Market Supported by Three Main Consumer Trends Strong Growth of the Hispanic Population GROWTH DRIVERS Estimated Markets for Tortilla and Corn Flour in Europe Substitution of Sandwiches for Wraps Tortilla / tortilla chips ▪ US$1.2 mm Popularity of Mexican Food
Slide 24: Growth in Gruma Europe's Retail Tortilla Business Improved EBITDA Margins
Growth in Gruma Europe’s Retail Tortilla Business Has Improved its EBITDA Margins, a Trend That is Expected to Continue Volume (thousands of metric tons) 395 404 389 418 Volume 19’- LTM JUN’22 CAGR 2% 2019 2020 2021 LTM JUN'22 Net Sales and EBITDA (millions of $US) 383 335 Net Sales 19- LTM JUN‘22 C
Slide 25: Improved Profitability in Gruma Europe will Result from:
Improved Profitability in Gruma Europe will Result from: 1 A better sales mix favoring the retail tortilla business, particularly with branded products, supported by enhanced marketing and distribution efforts 3 2 Potential M&A of tortilla Production efficiencies at tortilla companies to increase fo
Slide 26: Additional Opportunities
Additional Opportunities Additional Opportunities
Slide 27: Exciting Opportunities for Tortilla Penetration in Other Growing Markets
Along with its Three Main Subsidiaries, GRUMA Sees Exciting Opportunities for Tortilla Penetration in Other Growing Markets Asia & Oceania Mexico ▪ In Mexico, packaged tortilla business represents ▪ Presence in Asia and Oceania with three a huge potential market, where GRUMA has tortilla production
Slide 28: Contact Information
Contact Information Rogelio Sánchez Norma Morales Adolfo Werner Fritz Corporate Finance VP Investor Relations - Associate Head of Investor Relations rsanchezm@gruma.com nmorales@gruma.com afritz@gruma.com Tel: +52.81.8399.3311 Tel: +52.81.8399.3349 Tel: +52.81.8399.3324