Gruma Sab De Cv Class B · BMV:GRUMA/B
Gruma Sab De Cv Class B — Investor Presentation (September 2016)
23 slides from Gruma Sab De Cv Class B's investor presentation, Sep 1, 2016
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Company Overview
COMPANY OVERVIEW ~ Va mission’ mission
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 • CORN FLOUR GRUMA USA • TORTILLAS, OTHER FAMILY: 53% FLOAT: 47% GIMSA • CORN FLOUR 85% OWNED 60 63 • CORN FLO
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 TORTILLAS FIRST AMERICA 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 began a process to enhance value creation
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 PRESENTATIONS, RESULTING IN STRONG RATIONALIZATION OF SKUs • BETTER CONTROL OF ALLOWANCE PROGRAMS
Slide 7: Since 2013, Gruma has benefited from these initiatives
SINCE THE BEGINNING OF 2013, GRUMA HAS BENEFITED FROM THESE INITIATIVES GRUMA, S.A.B. DE C.V. GRUMA, S.A.B. DE C.V. NET SALES EBITDA (MILLIONS OF PESOS) (MILLIONS OF PESOS) CAGR: CAGR: ’12 – LTM JUN’16: 7% ’12 – LTM JUN’16: 28% 62,655 10,019 58,279 9,139 49,271 49,036 49,935 7,493 6,254 4,174 2012 2
Slide 8: Higher cash flow and wheat flour sale proceeds reduced debt
HIGHER CASH FLOW GENERATION, COUPLED WITH PROCEEDS FROM THE SALE OF THE WHEAT FLOUR OPERATIONS, ENABLED GRUMA TO CONTINUE REDUCING ITS DEBT IMPORTANTLY IN 2014… GRUMA GRUMA CONSOLIDATED CONSOLIDATED DEBT GROSS DEBT/EBITDA (MILLIONS OF US$) (TIMES) 1,550 1,272 4.8 737 769 704 2.6 1.4 1.4 1.3 DEC'12 D
Slide 9: …and achieving a healthy maturity profile
…AND ACHIEVING A HEALTHY MATURITY PROFILE DEBT 1 MATURITY PROFILE AS OF JUNE 30, 2016 (MILLIONS OF US$) 400 174 89 37 3 0.8 0.4 2016 2017 2018 2019 2020 2021 2024 1 WEIGHTED AVERAGE INTEREST RATE AS OF JUNE 30, 2016 IS 3.7%. 9
Slide 10: Main Subsidiaries
MAIN SUBSIDIARIES
Slide 11: Gruma USA
LISTAS PARA EL COMAL Ate reread
Slide 12: Gruma USA is the largest subsidiary and leading producer in the U.S.
GRUMA USA IS THE LARGEST SUBSIDIARY, AND THE LEADING CORN FLOUR AND TORTILLA PRODUCER IN THE UNITED STATES NET SALES LTM JUN’16: US$2 BILLION Fife, WA GRUMA USA New Brighton, MN McMinnville, OR Mountain Top, PA Hayward, CA Omaha, NE Madera, CA Evansville, IN Fresno, CA Pueblo, CO Panorama City, CA G
Slide 13: Growth potential for the U.S. tortilla and corn flour industries
THERE IS GROWTH POTENTIAL FOR THE U.S. TORTILLA AND CORN FLOUR INDUSTRIES GROWTH DRIVERS • HISPANIC POPULATION1 – 16% OF TOTAL U.S. POPULATION ESTIMATED U.S. MARKETS – HISPANIC POPULATION INCREASED 43% BETWEEN 2000 AND 2010, ACCOUNTING FOR MORE THAN 50% OF TOTAL U.S. POPULATION GROWTH • POPULARITY O
Slide 14: Gruma USA's results reflect efforts to enhance value creation
GRUMA USA’S RESULTS ARE REFLECTING THE COMPANY’S EFFORTS TO ENHANCE VALUE CREATION GRUMA USA GRUMA USA NET SALES EBITDA (MILLIONS OF US$) (MILLIONS OF US$) CAGR: CAGR: ’12 – LTM JUN’16: 3% ’12 – LTM JUN’16: 20% 334 1,989 1,986 311 1,882 1,915 273 1,789 233 178 2012 2013 2014 2015 LTM 2012 2013 2014
Slide 15: GIMSA
GIMSA
Slide 16: GIMSA is the second largest subsidiary and leader in Mexico
GIMSA IS GRUMA’S SECOND LARGEST SUBSIDIARY AND THE LEADER OF THE CORN FLOUR INDUSTRY IN MEXICO Mexicali GIMSA Chihuahua Obregón • NET SALES LTM JUN’16: US$878 MILLION1 Río Bravo • 18 PLANTS, WITH TOTAL ANNUAL CAPACITY OF Culiacán 2.7 MILLION METRIC TONS OF CORN FLOUR Nuevo León La Paz • GIMSA’S MARK
Slide 17: Corn flour is used for 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 – LTM JUN’16: -1% ’12 – LTM JUN’16: 10% 16,948 16,596 15,944 2,828 2,942 2,946 15,871 2,769 15,074 2,095
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 LTM JUN’16: US$275 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 •
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 TORTILLAS / TORTILLA CHIPS • POPULARITY OF MEXICAN FOOD US$1.2 BIL
Slide 22: All subsidiaries are 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
Slide 23: IR Contacts
IR CONTACTS: ROGELIO SÁNCHEZ LILIA GÓMEZ TEL: (52 81) 8399-3312 TEL: (52 81) 8399-3324 rsanchezm@gruma.com lgomez@gruma.com TEL: (52 81) 8399-3349 ir@gruma.com
Gruma, S.A.B. de C.V. — Investor Presentation (September 2016) on 6ix