Sigma Foods, S.a.b. De C.v. · BMV:SIGMAF/A
Sigma Foods, S.a.b. De C.v — ALFA, S.A.B. de C.V. — Q3 2023 Earnings Presentation
78 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, November 2023
Slide 1: Corporate Presentation 3Q23
Corporate Presentation 3Q23 Confidential Information
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business decisions, all of
Slide 3: Important note on changes to ALFA's Consolidated Financial Statements
Important note on changes to ALFA’s Consolidated Financial Statements ALFA’s shareholders approved to spin-off ALFA’s share ownership of Axtel into a new, listed entity called “Controladora Axtel” on July 12, 2022. The shares of “Controladora Axtel” were distributed to ALFA shareholders and began tr
Slide 4: Index
Index ALFA Overview ALFA Third Quarter Results ALFA 2023 Guidance Appendix Additional Information 4 Confidential Information
Slide 5: Investment Highlights
Investment Highlights 1. Ongoing transformational process to unlock fair value potential 2. Two core businesses with leading industry positions (Food and Petrochemicals) 3. Solid balance sheet with investment grade rating 4. Operations in 25 countries; 61% of Revenues outside of Mexico 5. Strong cor
Slide 6: ALFA at glance
ALFA at glance Sales (US $ Billion) 18.1 EBITDA (US $ Billion) 2.1 Operations (Countries) 25 Sales Outside Mexico 61% Employees ~57,700 *All figures at the close of 2022. Axtel reported as discontinued operations. 6 Confidential Information
Slide 7: Diversified portfolio of businesses with leading industry positions
Diversified portfolio of businesses with leading industry positions Petrochemicals Food Products #1 in the production of Leading brands across regions, PTA, PET and EPS categories and consumer in the Americas segments ALFA´s entire share ownership in Nemak was distributed to ALFA shareholders on Dec
Slide 8: Revenue and EBITDA contribution by business
Revenue and EBITDA contribution by business Revenues 2022 EBITDA 2022 US $18.1 Billion US $2.1 Billion 31% 69% 41% 59% *Axtel reported as discontinued operations. Pie chart does not include Newpek and other entities. 8 Confidential Information
Slide 9: Ownership
Ownership Petrochemicals 82% Public company since 2012 100% Food Products ALFA´s entire share ownership in Axtel distributed to ALFA shareholders in May 2023 54% IT + Telecom ALFA´s entire share ownership in Nemak distributed to ALFA shareholders in December 2020 Aluminum 75% Autoparts 9 Confidentia
Slide 10: "Unlocking Value" initiative among ALFA's top strategic priorities
“Unlocking Value” initiative among ALFA’s top strategic priorities Strategic Priorities 1. Unlock / 2. Innovation in Return Value to high growth Shareholders segments Financial Corporate Discipline Citizenship Strategic Principles 3. Expansion Leading 4. Business Industry Realignment Position • Net
Slide 11: Transformational efforts to achieve ALFA's fair value potential
Transformational efforts to achieve ALFA’s fair value potential Gradual and orderly process Key developments • Nemak spin-off (2020) • Reduction of corporate expenses (-70% vs 2019) 1. Ensure strong financial • Refinancing and reduction of corporate debt position • Axtel spin-off (May 2023) 2. Stren
Slide 12: "Unlocking Value" initiative – sample developments
“Unlocking Value” initiative – sample developments Strengthen the Enhance Strengthen the Business Sample developments Balance Sheet independence businesses -Flexibility for future debt payments - refinanced 2024 bond with multiple bank loans -70% expense reduction outside operating subsidiaries vers
Slide 13: Sustained corporate expense reduction since 2019
Sustained corporate expense reduction since 2019 Consolidated ALFA EBITDA minus Operating subsidiaries1 (US $ Million) 2019 2020 2021 2022* -25 -42 -60 -71 1 - Operating subsidiaries: Alpek, Sigma, Axtel and Newpek 13 *Axtel reported as discontinued operations in 2022 Confidential Information
Slide 14: Consolidation of senior-level roles as transformation advances
Consolidation of senior-level roles as transformation advances ALFA Chairman and Senior Executives 1Q20 (pre-transformation) 3Q23 (post-succession plans) • Armando Garza – Chairman of the Board • Álvaro Fernández – President • Álvaro Fernández – Chairman1 & President • Eduardo Escalante – CFO • Edua
Slide 15: ALFA's business portfolio streamlined down to Sigma and Alpek
ALFA’s business portfolio streamlined down to Sigma and Alpek ALFA Corporate Structure (After Axtel and Nemak spin-offs) ALFA ALFA Shareholders Shareholders Controladora ALFA Axtel2 100% 82.09% 53.91% Sigma Alpek Axtel Nemak1 1. ALFA’s entire share ownership in Nemak was distributed to ALFA sharehol
Slide 16: ALFA committed to complete final phase of transformation process
ALFA committed to complete final phase of transformation process ALFA Corporate Structure ALFA Corporate Structure (3Q23) (After potential spin-off) ALFA ALFA ALFA Shareholders Shareholders Shareholders ALFA ALFA 100% 82.09% 100% 82.09% Sigma Alpek Sigma Alpek 16 Confidential Information
Slide 17: Outstanding Sigma EBITDA growth; transformation requires ALFA to reduce debt
Outstanding Sigma EBITDA growth; transformation requires ALFA to reduce debt Sigma quarterly LTM EBITDA Consolidated Net Debt excluding Alpek1 (US $ Million) (US Million) 3,115 3,191 831 2,967 727 682 Sigma ALFA2 LTM 1Q23 LTM 2Q23 LTM 3Q23 1Q23 2Q23 3Q23 1 – Consolidated Net Debt excluding Alpek = C
Slide 18: Alpek - strong Cash Flow generation and healthy Balance Sheet
Alpek - strong Cash Flow generation and healthy Balance Sheet Alpek EBITDA + Net Working Capital Alpek Quarterly Net Debt (US $ Million) (US $ Million) 1,208 2,082 1,043 1,879 1,675 764 Net Debt/ 1.8 2.3 2.6 EBITDA 2021 2022 LTM 2023 1Q23 2Q23 3Q23 18 Confidential Information
Slide 19: Strong management team and solid corporate governance
Strong management team and solid corporate governance • C - Suite average tenure of 30+ years • Average tenure of top 140 Executives is 20+ years • Strong Corporate Governance with 67% Independent Directors 19 Confidential Information
Slide 20: Experienced Management Team
Experienced Management Team Armando Garza Álvaro Fernández Chairman of the Board President Tenure 41 years Tenure 29 years Eduardo Escalante José de Jesús Valdez Jorge Young Rodrigo Fernández Senior Advisor CFO, Human Capital & Legal Alpek CEO Sigma CEO ALFA Tenure 43 years Tenure 32 years Tenure 21
Slide 21: Board of Directors
Board of Directors • JUAN CARLOS CALDERÓN ROJAS • DAVID MARTÍNEZ GUZMÁN (1C) Global Director of Employee Experience and Engagement of Sigma President and Founder of Fintech Advisory Inc. • ENRIQUE CASTILLO SÁNCHEZ MEJORADA (1A,B) • JOSÉ ANTONIO MEADE KURIBREÑA (1A,C) Chairman of the Board of Ban
Slide 22: ALFA has established four pillars for its sustainability strategy
ALFA has established four pillars in a model that serves as the base for guidelines, initiatives, and progress in its sustainability strategy OUR COMMUNITY INTERNAL WELLNESS To be a responsible citizen To provide health, safety, to generate positive and integral development impact and promote the op
Slide 23: ESG Index and Ratings performance
ESG Index and Ratings performance 23 Confidential Information
Slide 24: Sigma's Goals
Sigma’s Goals SIGMA 2025 Goal Summary 2022 Progress ENVIRONMENTAL 20% reduction in the operation’s carbon footprint. More than 18% emissions reduction vs. 2015 baseline. 20% greater efficiency in responsible water management. Reduced water usage per ton produced by 12% vs. 2018 baseline. Create pack
Slide 25: Alpek's Goals
Alpek’s Goals ALPEK Goal Summary 2022 Progress Reduce 27.5% of Scope 1 and 2 emissions by 2030 and 13.5% for Scope 3 Emissions and energy: ENVIRONMENTAL (both 2019 baseline). • Approval of short-term green-house gas reduction targets by the Science Based Targets initiative (SBTi) . Carbon neutrality
Slide 26: Financial Highlights
Financial Highlights Revenues EBITDA Capex & Acquisitions Capex (US $ Million) (US $ Million) (US $ Million) 2,322 18,085 16,804 2,018 2,114 2,082 15,756 1,841 1,492 14,354 14,626 13,521 1,656 12,325 1,536 1,180 1,148 1,111 572 449 399 16 17 18B 19B 20B 21B 22 B 16 17 18 A,B 19 B 20B 21B 22 B 16 17
Slide 27: Financial Highlights
Financial Highlights Net Debt Net Debt/EBITDA Net Debt/EBITDA Interest Coverage Interest Coverage (US $ Million) (Times) (Times) 8 6,543 3.1 3.1 6,300 6,276 7 6.6 5,844 6.4 2.7 2.5 6 5.8 2.3 2.3 2.3 5.4 5.2 4,699 4,677 4,751 5 4.6 4.4 4 3 2 1 0 16 17 18 19 20 1 21 22 1 16 17 18 19 20 2 21 22 2 16 17
Slide 28: Consistent, dollar-denominated cash Dividends
Consistent, dollar-denominated cash Dividends Paid Dividends (US $ Million) 202 196 170 169 168 154 154 118 124 104 100 97 96 70 10 11 12 13* 14* 15 16 17 18 19 20 21 22 23 * The 2014 dividend was paid early in 2013. The graph shows the approved amounts for each corresponding year. 28 Confidential I
Slide 29: Cancelled shares
Cancelled shares Millions of Shares 145 146 90 20 20 10 11 12 13 14 15 16 17 18 19 20 21 22 23 % of 4% 4% 3% 3% 2% Cancellations 29 Confidential Information
Slide 30: Index
Index ALFA Overview ALFA Third Quarter Results ALFA 2023 Guidance Appendix Additional Information 30 Confidential Information
Slide 31: 3Q23 Highlights
3Q23 Highlights • Initiated succession plans for its Chairman of the Board position; pending final Shareholder approval • Armando Garza Sada stepping down in 1Q24 and will remain in the Board • Álvaro Fernández Garza appointed to become Chairman and will maintain current President position • ALFA’s
Slide 32: Initiated succession plans for its Chairman of the Board position
Initiated succession plans for its Chairman of the Board position • Plan approved by Board of Directors on Sept. 26, 2023 • To be presented for final Shareholder approval in 1Q24 • Armando will step down from current Chairman position • Will remain on the Board • Álvaro appointed Chairman • Will ret
Slide 33: 3Q23 Revenues lower year-on-year as Sigma growth offset by Alpek decrease
3Q23 Revenues were lower year-on-year as growth in Sigma was offset by a decrease at Alpek ALFA & Subs* Revenues Revenues 3Q23 vs 3Q22 Revenues 3Q23 vs 2Q23 (US $ Million) (US $ Million) (US $ Million) 4,856 4,452 4,221 4,198 4,085 3Q22 4Q22 1Q23 2Q23 3Q23 *Axtel reported as discontinued operations
Slide 34: 3Q23 EBITDA includes negative impact from extraordinary items at Alpek
3Q23 EBITDA includes a negative impact of US $34 million from extraordinary items at Alpek; Comparable EBITDA down 29% year-on-year ALFA & Subs* Reported EBITDA Extraordinary Items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) EBITDA Margin 3Q23 vs 2Q22: -18% EBITDA Margin 3Q23 vs 3
Slide 35: Reported and Comparable EBITDA
Reported and Comparable EBITDA Reported EBITDA* (US $ Million) 672 610 441 467 454 346 376 360 373 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Comparable EBITDA* (US $ Million) 572 534 496 487 396 430 396 425 407 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 *Axtel reported as discontinued operation
Slide 36: Net Debt/EBITDA of 3.4x at the close of 3Q23
Net Debt/EBITDA of 3.4x at the close of 3Q23. Leverage impacted by lower EBITDA; stable Net debt ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 1,272 3.4 4,830 5,049 4,994 3.3 1,155 1,163 1,167 4,751 4,866 1,055 2.7 2.2 2.3 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 37: ALFA's Net Debt decreased US $127 million q-o-q
ALFA’s Net Debt decreased US $127 million or 3% q-o-q, driven by a significant recovery of Net Working Capital at Alpek ALFA Consolidated Change in Net Debt Change in Net Debt 2Q23 vs 3Q23 (US $ Million) (US $ Million) -3% 3Q23 EBITDA 373 Net Working Capital (NWC) 112 Capital Expenditures & Acq. (Ca
Slide 38: Succession process for Senior Counsel position
Succession process for Senior Counsel position • Succession process at Legal, Audit and Institutional Relations Department, headed by Carlos Jiménez • Carlos will leave his current Senior Management position • Distinguished 45-year career at ALFA • Valuable counsel and guidance in key corporate proc
Slide 39: Foreign ownership was 51.7% of total ALFA shares at the close of 3Q23
Foreign ownership was 51.7% of total ALFA shares at the close of 3Q23 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 3Q23 Maximum Nafinsa Trust Threshold (75%) 2,516 2,515 2,538 2,499 2,472 52.2% 52.7% 51.9% 51.3% 51.7% 3Q22 4Q22 1Q23 2Q23 3Q23 39
Slide 40: Sigma 3Q23 Highlights
Sigma 3Q23 Highlights • Record quarterly consolidated Volume and Revenues. Tenth consecutive quarter of year-on-year Revenue growth • Record quarterly EBITDA, up 68% year-on-year, boosted by double-digit growth in all regions • Sustained improvement of Net Debt to EBITDA Ratio; 2.5 times at the clos
Slide 41: Record quarterly Revenues, up 18% YoY
Record quarterly Revenues, up 18% YoY, supported by increase in Volume Revenues Revenues 3Q23 vs 3Q22 Revenues 3Q23 vs 2Q23 (US $ Million) (US $ Million) (US $ Million) 2,209 2,143 1,964 1,991 1,879 3Q22 4Q22 1Q23 2Q23 3Q23 41
Slide 42: 3Q23 EBITDA, up 68% year-on-year
3Q23 EBITDA, up 68% year-on-year, boosted by high growth in all regions EBITDA EBITDA 3Q23 vs 3Q22 EBITDA 3Q23 vs 2Q23 (US $ Million) (US $ Million) (US $ Million) 255 217 192 167 151 3Q22 4Q22 1Q23 2Q23 3Q23 42
Slide 43: Consistent improvement in EBITDA Margin since 3Q22
Consistent improvement in EBITDA Margin since 3Q22 EBITDA Margin (%) EBITDA Margin By Region (%) 20.0 17.4 18.0 16.0 11.2 11.4 11.5 14.0 10.7 10.2 10.1 9.4 9.2 9.6 12.0 11.0 8.1 8.5 10.0 8.5 8.0 6.0 4.0 2.2 2.0 0.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 44: Net leverage ratio of 2.5 times
Net leverage ratio of 2.5 times, a significant decrease quarter-on-quarter Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,045 2,012 2.8 1,782 1,840 2.7 2.7 1,708 2.5 2.5 699 683 628 610 552 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 45: 3Q23 Recent Developments
3Q23 Recent Developments Key Highlights Optimization of Sigma´s footprint in Europe • Divested all operations in line with comprehensive plan to improve results by focusing in core European markets ESG –NextGenerationEU granted funds to Sigma • EUR €3 million granted to Sigma’s operations in Portuga
Slide 46: Alpek's 3Q23 results impacted by persistent industry headwinds
Alpek’s 3Q23 results impacted by persistent industry headwinds 3Q23 Highlights Paraxylene (North America vs Asia) North America Asia • 3Q23 Revenues and Comparable EBITDA down 34% and 62% year- (US$/Ton) 1,837 on-year, respectively 1,505 1,462 • Asian reference PET margins decreased 18% q-o-q, and r
Slide 47: Index
Index ALFA Overview ALFA Third Quarter Results ALFA 2023 Guidance Appendix Additional Information 47 Confidential Information
Slide 48: Consolidated Guidance revised to reflect adjustments at Alpek and Sigma
Consolidated Guidance revised to reflect adjustments at Alpek and Sigma 2023 EBITDA Guidance (Original vs New) (US $ Millions) +187 -150 2023 Consolidated Guidance 1,615 1,652 -12 -110 1,530 (US $ Millions) New Previous Comparable 1,652 1,615 EBITDA EBITDA1 1,530 1,615 Revenues 16,431 17,401 Capex 5
Slide 49: Revised ALFA Guidance 2023 – Breakdown by Subsidiary
Revised ALFA Guidance 2023 – Breakdown by Subsidiary Comparable EBITDA1 EBITDA (US $ Previous New Ch% Previous New Ch% Millions) ALFA 1,615 1,652 2 ALFA 1,615 1,530 (5) Alpek 920 770 (16) Alpek 920 660 (28) Sigma 705 892 27 Sigma 705 880 25 Revenues Capex2 Previous New Ch% Previous New Ch% ALFA 17,4
Slide 50: Index
Index ALFA Overview ALFA Third Quarter Results ALFA 2023 Guidance Appendix Additional Information 50 Confidential Information
Slide 51: ALFA's heritage goes back to 1890
ALFA's heritage goes back to 1890 2004 2008 Sigma expands in Sigma invest in cheese Perú 1996 2021 Alestra is founded 2013 Alpek acquires 2010 2018 1975 (Telecom) Sigma NOVA Sigma Alpek acquires First investment in 2001 acquires 2020 Chemicals and acquires PQS (Brazil) petrochem Alpek expands Campof
Slide 52: M&A is an important element of our strategy
M&A is an important element of our strategy 2001 2007 2011 2013 2018 2021 2022 Alpek Nemak Alpek Sigma Alpek Alpek Alpek DAK Americas Teksid & Hydro Columbia site Campofrio Petroquímica rPET Plant PET Sheet Plants Casting assets Eastman Chemical Food Group Suape and Citepe NOVA OCTAL Chemicals Wilto
Slide 53: ALFA's materiality matrix
ALFA’s materiality matrix ALFA’s materality matrix Sustainability 100% 1 ESG strategy and risk management Corporate governance with a RELEVANCE FOR STAKEHOLDERS 90% 3 2 6 sustainable approach 4 Transparency, reliability, and 80% 9 3 2 investor relations 70% 7 10 4 Human rights, Diversity, Equity, an
Slide 54: 2022 ESG Index and Ratings performance
2022 ESG Index and Ratings performance ESG INDEXES AND ALFA SIGMA ALPEK QUESTIONNAIRES S&P / BMV Constituent - Constituent S&P CSA 42 - 54 CDP B-/B- B/B B/C Climate Change / Water MSCI BBB - BB Early adopter of Timely response Global Compact - new platform provided 54 Confidential Information
Slide 55: ROIC 2017 - 2022
ROIC 2017 - 2022 14 14 12 7 7 6 2017 2018 2019 2020 2021 2022 ROIC = NOPAT / Invested Capital | NOPAT = EBIT – Taxes | Invested Capital = Stockholder’s Equity + Debt 55 Nemak and Axtel accounted as Discontinued Operations. Confidential Information
Slide 56: Breakdown by Region
Breakdown by Region Revenues 2022 US $18.1 Billion Asia & Ohers 5% South & Central America 14% Mexico 39% Europe 15% U.S. & Canada 27% 56 Confidential Information
Slide 57: ALFA gained flexibility for future debt payments with long-term bank loans
ALFA gained flexibility for future debt payments by obtaining multiple long-term bank loans to redeem Senior Notes due 2024 ALFA Holding – Debt by Instrument ALFA Holding – Debt by Instrument 4Q22: US $1,200 Million 1Q23: US $1,230 Million Bank Loan 17% Senior Notes due 2024 Senior Notes 41% due 204
Slide 58: Outstanding bonds - ALFA
Value 80 85 95 100 105 110 115 120 90 30/9/2022 Confidential Information 14/10/2022 28/10/2022 11/11/2022 25/11/2022 9/12/2022 23/12/2022 6/1/2023 20/1/2023 3/2/2023 17/2/2023 3/3/2023 17/3/2023 Outstanding bonds - ALFA 31/3/2023 14/4/2023 28/4/2023 12/5/2023 26/5/2023 9/6/2023 23/6/2023 7/7/2023 21
Slide 59: Outstanding bonds – ALFA Subsidiaries
Value 70 75 80 85 90 95 100 105 110 115 30/9/2022 Confidential Information 14/10/2022 28/10/2022 11/11/2022 25/11/2022 9/12/2022 23/12/2022 6/1/2023 20/1/2023 3/2/2023 17/2/2023 3/3/2023 17/3/2023 31/3/2023 Alpek 14/4/2023 28/4/2023 12/5/2023 26/5/2023 9/6/2023 23/6/2023 7/7/2023 21/7/2023 4/8/2023
Slide 60: ALFA & Subsidiaries Outstanding Bonds
ALFA & Subsidiaries Outstanding Bonds Amount YTM Ratings Company Rate Maturity (M US$) (Sep/30/2023) S&P Fitch Moody’s BBB- ; SO ALFA 500 6.875% 7.661% March 25, 2044 BBB- ; SO Baa3 ; SO (issue level BB+) Alpek 500 4.250% 6.787% September 18, 2029 BBB- ; SO BBB- ; SO Baa3 ; SO Alpek 600 3.250% 6.976
Slide 61: Stock Highlights (BMV: ALFAA)
Stock Highlights (BMV: ALFAA) Daily Stock Price (MXN) Daily Average Traded Shares & Value 30 25 25 (M Shares) (US$ M) 25 20 20 20 15 15 15 10 10 10 5 5 5 0 0 0 E MM J S N E MM J S N E MM J S N E MM J S N E MM J S N E MM J S 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Market Cap.* (US
Slide 62: Brent Crude Oil
Brent Crude Oil US $ / Barrell 140 120 99 Guidance $/bbl 2023 90 100 81 $/bbl 72 $/bbl 71 $/bbl 64 $/bbl 80 $/bbl 60 40 55 $/bbl 43 $/bbl 20 0 2017 2018 2019 2020 2021 2022 2023 62 Confidential Information
Slide 63: Paraxylene prices
Paraxylene prices Px Contract Price (US $ / Ton) 1,837 +8% 1,505 1,462 1,301 1,389 1,345 1,352 1,271 1,174 1,069 1,033 1,066 954 996 891 1,110 1,081 1,070 1,124 1,054 1,034 1,001 894 702 921 894 847 862 753 579 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 North America Asia 56
Slide 64: Integrated PET Margin (Asia)
Integrated PET Margin (Asia) PET Integrated Margins | Px / MEG to PET (US $ / Ton) 431 420 410 400 382 -18% 356 343 330 338 332 306 318 364 340 269 272 266 322 317 323 268 269 256 227 223 229 223 223 225 146 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 Asia China 57 Confidenti
Slide 65: Ocean freight prices
Ocean freight prices Asia – Americas Spot Ocean Freight Rate (US $ / Ton) Note: Prices based on 20-foot containers with 24-ton capacity from Shanghai to U.S. East Coast, West Coast & South America 58 Confidential Information
Slide 66: Important dates – Axtel spin-off
Important dates – Axtel spin-off June 27, July 12, May 19, May 26, May 29, 2022 2022 2023 2023 2023 Call to Extraordinary Share Distribution Determination of 1st Trading Day of Extraordinary ALFA Shareholder Notice to ALFA Reference Prices Controladora ALFA Shareholder Meeting Shareholders for CTAXT
Slide 67: Slide 67
Slide 68: Sigma at a glance
Sigma at a glance 68 Confidential Information
Slide 69: Leading positions across markets - Local favorites everywhere
Leading positions across markets - Local favorites everywhere Mexico & Latam Europe United States Packaged meats Packaged meats Franks Dairy Dry ham Hispanic packaged meats Packaged meats Dry ham Heritage products Yogurt 3 Packaged meats Packaged meats 3 Dry sausages Dairy Packaged meats 3 Yoplait®
Slide 70: Consumer centric innovation supported by proprietary R&D platform
Consumer centric innovation supported by proprietary R&D platform Consumer Research 180,000+ Contacts / year Proprietary Mathematical Models Iterative innovation process based on Design Thinking 1,800+ New Product Launches in the last 36 months 9% of Revenue comes from innovations Research and Devel
Slide 71: Growth BU | Initiatives
Growth BU | Initiatives Global Categories New Business Models Entrepreneurial Ecosystem Smart Manufacturing Future Foods Power Connections Green Tech 71 Confidential Information
Slide 72: Growth BU | focused on building new categories and business models
Growth BU | focused on building new categories and business models, leveraging Sigma’s capabilities Market (scale-up) Sustainable growing business Market (launch) Scalable business Incubation (pilot) Innovation MVP & business (idea model validated generation) MVP & business definition 72 Confidentia
Slide 73: Cost and Expense Structure LTM
Cost and Expense Structure LTM Costs of Goods Sold (COGS) Selling, General and Administrative Expenses (SG&A) (US $ Million) (US $ Million) 9% 1% 2% Meat and Dairy Raw Materials 4% 21% Dry Ingredients 7% Direct Labor Selling 8% Trade Products Administrative 59% Packaging General 11% Energy (Fuel, el
Slide 74: Pork Ham Price in U.S. and Europe
Pork Ham Price in U.S. and Europe Pork Ham Price in U.S. Pork Ham Price in Europe US $/lb € /kg 2021 2021 2022 2022 2023 4.0 2023 1.2 3.5 1.0 3.0 0.8 2.5 2.0 0.6 1.5 0.4 1.0 0.2 0.5 0.0 0.0 Feb. Apr. Jun. Aug. Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. 67 Confidential Information
Slide 75: Poultry raw materials in U.S.
Poultry raw materials in U.S. Chicken (MSC) Turkey (MST) US $/lb 2020 US $/lb 2020 0.7 0.9 2021 2021 0.6 0.8 2022 0.7 2022 0.5 0.6 2023 0.4 2023 0.5 0.3 0.4 0.3 0.2 0.2 0.1 0.1 0.0 0.0 Turkey Breast Turkey Thigh US $/lb 2020 US $/lb 2020 8.0 3.0 7.0 2021 2021 2.5 6.0 2022 2022 2.0 5.0 2023 2023 4.0
Slide 76: European utility prices
European utility prices Netherlands TTF Gas Index €/MWh 400 350 300 250 200 150 100 50 0 J F M A M J J A S O N D 2020 2021 2022 2023 Dutch TTF (Title Transfer Facility), is a virtual trading point for natural gas in Netherlands and is the primary gas pricing hub for the European market 69 Confidenti
Slide 77: Exchange rates
Exchange rates U.S. Dollar – MXN Peso U.S. Dollar – Euro 2021 2021 2022 2022 2023 2023 22.0 1.25 21.0 1.20 20.0 19.05 1.15 19.0 18.05 1.10 18.0 1.07 1.06 1.05 17.0 16.0 1.00 15.0 0.95 Jan. Mar. May July Sept. Nov. Jan. Mar. May July Sept. Nov. Monthly average exchange rates 70 Confidential Informati
Slide 78: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx Confidential Information