Gruma Sab De Cv Class B · BMV:GRUMA/B
Gruma Sab De Cv Class B — Investor Presentation (February 2017)
23 slides from Gruma Sab De Cv Class B's investor presentation, February 2017
Slide 1: Investor Presentation
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Slide 2: Company Overview
COMPANY OVERVIEW
Slide 3: Gruma is the world's largest corn flour and tortilla producer
GRUMA IS THE WORLD’S LARGEST CORN FLOUR AND TORTILLA PRODUCER, WITH OPERATIONS IN THE UNITED STATES, MEXICO, CENTRAL AMERICA, EUROPE, ASIA AND OCEANIA Subsidiaries Products % Sales % EBITDA Family: 53% GRUMA USA • Corn flour • Tortillas, other Float: 47% GIMSA • Corn flour 85% OWNED 61 65 GRUMA, S.A
Slide 4: Gruma's leading brands show strong awareness and consumer loyalty
GRUMA’S LEADING BRANDS SHOW STRONG AWARENESS AND CONSUMER LOYALTY REGION BRANDS PRODUCTS POSITION CORN FLOUR FIRST UNITED STATES TORTILLAS FIRST TORTILLAS SECOND MEXICO CORN FLOUR FIRST CORN FLOUR FIRST CENTRAL AMERICA TORTILLAS FIRST TORTILLAS SECOND EUROPE TORTILLAS SECOND ASIA & OCEANIA TORTILLAS
Slide 5: Gruma is leading product innovation for health-oriented consumers
GRUMA IS LEADING IMPORTANT PRODUCT INNOVATION TO SATISFY THE GROWING MARKET OF HEALTH-ORIENTED CONSUMERS • Consumers replacing breads with wraps • Increased popularity of healthier snack options, such as gluten-free organic corn chips To satisfy these megatrends, GRUMA offers a line of healthier alt
Slide 6: Board and management process to enhance value creation since 2012
TOWARD YEAR END 2012, GRUMA’S BOARD AND MANAGEMENT BEGAN A PROCESS TO ENHANCE VALUE CREATION, LEVERAGING THE GROWTH IN RECENT YEARS, THROUGH SEVERAL INITIATIVES: • Focus on most profitable products and presentation, resulting in strong rationalization of SKUs • Better control of allowance programs a
Slide 7: Since 2013, Gruma has benefited from these initiatives
SINCE THE BEGINNING OF 2013, GRUMA HAS BENEFITED FROM THESE INITIATIVES GRUMA GRUMA Net Sales EBITDA (millions of pesos) (millions of pesos) CAGR: CAGR: ’12 – ’16: 8% ’12 – ’16: 27% 10,964 68,206 9,139 58,279 7,493 49,271 49,036 49,935 6,254 4,174 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 EB
Slide 8: Higher cash flow generation has enabled Gruma to reduce its debt
HIGHER CASH FLOW GENERATION HAS ENABLED GRUMA TO REDUCE ITS DEBT IMPORTANTLY… GRUMA GRUMA Debt Net Debt/EBITDA (millions of US$) (times) 1,550 1,272 4.4 737 769 775 2.4 1.2 1.1 1.0 DEC'12 DEC'13 DEC'14 DEC'15 DEC'16 DEC'12 DEC'13 DEC'14 DEC'15 DEC'16 8
Slide 9: …and achieve a healthy maturity profile
…AND ACHIEVE A HEALTHY MATURITY PROFILE GRUMA Debt1 Maturity Profile As of December 31, 2016 (millions of US$) 400.0 180.3 190.3 2.7 1.5 0.4 0.1 2017 2018 2019 2020 2021 2022 2024 1 Weighted average interest rate as of December 31, 2016 is 4.17%. 9
Slide 10: Main Subsidiaries
MAIN SUBSIDIARIES
Slide 11: Gruma USA
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Slide 12: 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 Net Sales 2016: US$2 billion Fife, WA GRUMA USA New Brighton, MN McMinnville, OR Mountain Top, PA Hayward, CA Omaha, NE Madera, CA Evansville, IN Fresno, CA Pueblo, CO Goldsboro, NC Tortilla Co
Slide 13: Growth potential for the U.S. tortilla and corn flour industries
THERE IS GROWTH POTENTIAL FOR THE U.S. TORTILLA AND CORN FLOUR INDUSTRIES Growth Drivers Estimated U.S. Markets • Hispanic Population1 –16% of total U.S. population –Hispanic population increased 43% between 2000 and 2010, accounting for more tan 50% Tortillas/Tortilla chips of total U.S. population
Slide 14: Gruma USA's results reflect efforts to enhance value creation
GRUMA USA’S RESULTS ARE REFLECTING THE COMPANY’S EFFORTS TO ENHANCE VALUE CREATION GRUMA USA GRUMA USA Net Sales EBITDA (millions of US$) (millions of US$) CAGR: CAGR: ’12 – ’16: 3% ’12 – ’16: 18% 345 2,024 311 1,989 1,915 273 1,882 1,789 233 178 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 EBI
Slide 15: GIMSA
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Slide 16: GIMSA is Gruma's second largest subsidiary and leader of corn flour in Mexico
GIMSA IS GRUMA’S SECOND LARGEST SUBSIDIARY AND THE LEADER OF THE CORN FLOUR INDUSTRY IN MEXICO Mexicali GIMSA Chihuahua • Net Sales 2016: US$950 million1 Obregón • 18 plants, with total annual capacity of 2.7 Río Bravo million metric tons of corn flour Culiacán Nuevo León • GIMSA’s market share with
Slide 17: Corn flour used in only 34% of tortillas in Mexico
CORN FLOUR IS ONLY USED TO PRODUCE 34% OF THE TORTILLAS IN MEXICO, THUS THERE IS A GREAT POTENTIAL FOR LONG-TERM GROWTH Potential Corn Flour Market in Mexico 7.3 Million Metric Tons of Corn Flour1 US$3.5 billion Corn Flour Market in Mexico 2.5 Million Metric Tons of Corn Flour1 US$1.2 billion GIMSA
Slide 18: GIMSA has improved its margins through efficiencies
GIMSA HAS IMPROVED ITS MARGINS MAINLY THROUGH EFFICIENCIES IN MARKETING SPEND AND LOWER ADMINISTRATIVE EXPENSES GIMSA GIMSA Net Sales EBITDA (millions of pesos) (millions of pesos) CAGR: CAGR: ’12 – ’16: 1% ’12 – ’16: 9% 17,866 16,948 2,828 2,942 2,964 2,769 15,944 15,871 15,074 2,095 2012 2013 2014
Slide 19: Gruma Europe
GRUMA EUROPE
Slide 20: Gruma Europe is the third largest subsidiary, focused on tortillas
GRUMA EUROPE IS THE COMPANY’S THIRD LARGEST SUBSIDIARY, FOCUSED MAINLY ON THE TORTILLA BUSINESS Net Sales 2016: US$265 million GRUMA Europe Tortilla Corn Milling Operations Operations 70% 30% • 6 Plants in Europe • 3 Mills in Europe • England (2) • Italy • The Netherlands • Ukraine • Russia • Turkey
Slide 21: Growth potential for the tortilla market in Europe
THERE IS GROWTH POTENTIAL FOR THE TORTILLA MARKET IN EUROPE Growth Drivers Estimated European Markets • Adoption of tortillas in non-Mexican dishes (wraps) • Wraps, burritos, tacos, quesadillas, nachos, etc. becoming mainstream foods • Popularity of Mexican food –The number of Mexican food restauran
Slide 22: All subsidiaries implementing initiatives to enhance value creation
ALL OF GRUMA’S SUBSIDIARIES HAVE BEEN IMPLEMENTING INITIATIVES TO ENHANCE VALUE CREATION. WE HAVE SEEN, AND CONTINUE TO EXPECT, STRONGER EBITDA GENERATION ACROSS THE COMPANY 1
Slide 23: Contact Information
Contact Information Rogelio Sánchez Lilia Gómez +52 (81) 8399 3312 +52 (81) 8399 3324 rsanchezm@gruma.com lgomez@gruma.com Investor Relations +52 (81) 8399 3349 ir@gruma.com www.gruma.com
GRUMA, S.A.B. de C.V. — Investor Presentation (February 2017) on 6ix