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. — Q1 2024 Earnings Presentation
79 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, May 2024
Slide 1: Corporate Presentation 1Q24
Corporate Presentation 1Q24
Slide 2: Disclaimer
Disclaimer 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 First Quarter Results ALFA 2024 Guidance Appendix Additional Information 4
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 24 countries; 60% of Revenues outside of Mexico 5. Strong cor
Slide 6: ALFA at glance
ALFA at glance Sales (US $ Billion) 16.4 EBITDA (US $ Billion) 1.4 Operations (Countries) 24 Sales Outside Mexico 60% Employees ~53,500 *All figures at the close of 2023. 6
Slide 7: Diversified portfolio of businesses with leading industry positions
Diversified portfolio of businesses with leading industry positions ALFA´s entire share ownership in Nemak was distributed to ALFA shareholders on December 2020. 7 ALFA´s entire share ownership in Axtel was distributed to ALFA shareholders on May 2023.
Slide 8: Revenue and EBITDA contribution by business
Revenue and EBITDA contribution by business Revenues 2023 EBITDA 2023 US $16.4 Billion US $1.4 Billion 48% 52% 37% 63% *Chart does not include Newpek and other entities. 8
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
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 (-80% vs 2019) 1.Ensure strong financial • Refinancing and reduction of corporate debt position • Axtel spin-off (May 2023) 2.Strengt
Slide 12: 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 Axtel3 Nemak1 1. ALFA’s entire share ownership in Nemak was distributed to ALFA shareho
Slide 13: ALFA committed to complete final phase of transformation process
ALFA committed to complete final phase of transformation process ALFA Corporate Structure ALFA Corporate Structure (1Q24) (After potential spin-off) ALFA ALFA ALFA Shareholders Shareholders Shareholders ALFA ALFA 100% 82.09% 100% 82.09% Sigma Alpek Sigma Alpek 14
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) 1Q24 (post-succession plans) Armando Garza – Chairman of the Board Álvaro Fernández – President • Álvaro Fernández – Chairman1 & President Eduardo Escalante – CFO • Eduardo Es
Slide 15: Sustained corporate expense reduction since 2019
Sustained corporate expense reduction since 2019 Consolidated ALFA EBITDA minus Operating subsidiaries1 (US $ Million) 2019 2020 2021 2022* 2023* -14 -25 -42 -60 -71 -42% -80% 1 - Operating subsidiaries: Alpek, Sigma, Axtel and Newpek 16 *Axtel reported as discontinued operations in 2022 and 2023
Slide 16: Outstanding Sigma EBITDA growth supportive for final phase of transformation
Outstanding Sigma EBITDA growth is supportive for final phase of transformation; debt reduction is key Sigma quarterly LTM EBITDA Consolidated Net Debt excluding Alpek1 (US $ Million) (US $ Million) 965 3,287 3,191 3,190 3,115 893 2,967 831 727 682 Sigma ALFA2 LTM LTM LTM 2023 LTM 1Q23 2Q23 3Q23 4Q2
Slide 17: 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 18
Slide 18: Experienced Management Team
Experienced Management Team Álvaro Fernández Rodrigo Fernández Jorge Young Eduardo Escalante Chairman & President Sigma CEO Alpek CEO CFO, Human Capital & Legal Tenure 32 years Tenure 25 years Tenure 33 years ALFA Tenure 36 years 19
Slide 19: Board of Directors
Board of Directors • JUAN CARLOS CALDERÓN ROJAS (3) • 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
Slide 20: ALFA established a model with four fundamental pillars for sustainability
ALFA established a model with four fundamental pillars that serve as the foundation for the guidelines, initiatives, and progress monitoring of its sustainability strategy INTERNAL WELL-BEING To provide health, safety, and integral development opportunities for team members ENVIRONMENT OUR COMMUNITY
Slide 21: ESG Index and Ratings performance
ESG Index and Ratings performance 46 44 43 B B 42 39 B- B- BBB 37 29 37 36 35 35 35 34 C C C C BB BB BB 32 32 32 29 28 28 27 ENVIROMENT SOCIAL GOVERNANCE TOTAL CLIMATE CHANGE WATER 2020 2021 2022 2023 INDUSTRY 2020 2021 2022 2023 2020 2021 2022 2023 PERCENTILE PERCENTILE PERCENTILE PERCENTILE AVERAG
Slide 22: Sigma's Goals
Sigma’s Goals 2025 GOAL SUMMARY 2023 PROGRESS •17.5% reduction in its Scope 1 and 2 emissions per ton of food produced, 2015 •Reduce carbon footprint in the operation by 20%. baseline. •Reduce 20% of Scope 1 and 2 emissions, and 9.8% of Scope 3 emissions by 2027 •Obtained approval of its short-term
Slide 23: Alpek's Goals
Alpek’s Goals GOAL SUMMARY 2023 PROGRESS •Reduce 27.5% of Scope 1 and 2 emissions, and 13.5% of Scope 3 emissions •27% reduction of Scope 1 and 2 emissions vs 2022. by 2030 (2019 baseline). •Developed strategic plan to achieve carbon neutrality by 2050, this preliminary analysis •Carbon neutrality b
Slide 24: Financial Highlights
Financial Highlights Revenues EBITDA Capex & Acquisitions Capex (US $ Million) (US $ Million) (US $ Million) 18,085 2,082 1,111 16388 1,841 14,626 13,521 1,656 12,325 1,536 1,391 572 569 399 449 19 20 21 22 23 19 20 21 22 23 19 20 21 22 23 Includes Nemak and Axtel as discontinued operations 25
Slide 25: Financial Highlights: Net Debt, Leverage, Interest Coverage
Financial Highlights Net Debt Net Debt/EBITDA Net Debt/EBITDA Interest Coverage Interest Coverage (US $ Million) (Times) (Times) 3.5 5,070 6.4 4,919 3.1 4,677 4,751 4,699 2.7 5.4 5.2 2.3 2.3 4.4 3.5 19 1 20 1 21 221 23 19 202 21 22 2 23 19 20 3 21 223 23 1. Net Debt adjusted for Discontinued Operati
Slide 26: 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 48 10 11 12 13* 14* 15 16 17 18 19 20 21 22 23 24 * The 2014 dividend was paid early in 2013. The graph shows the approved amounts for each corresponding year. 27
Slide 27: 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 24 % of Cancellations 4% 4% 3% 3% 2% 28
Slide 28: Index
Index ALFA Overview ALFA First Quarter Results ALFA 2024 Guidance Appendix Additional Information 31
Slide 29: 1Q24 Highlights
1Q24 Highlights Annual Shareholders’ Meeting held on March 6th - Álvaro Fernández appointed Chairman of the Board, in addition to his position as CEO - Alejandra Palacios appointed independent member of the Board, beginning on May 15, 2024 - Paid US $48 million cash dividend 1Q24 represents a better
Slide 30: Revenue growth driven by Sigma year-on-year, and by Alpek quarter-on-quarter
Revenue growth driven by Sigma year-on-year, and by Alpek quarter-on-quarter ALFA & Subs* Revenues Revenues 1Q24 vs 1Q23 Revenues 1Q24 vs 4Q23 (US $ Million) (US $ Million) (US $ Million) 4,221 4,198 4,106 4,085 3,885 1Q23 2Q23 3Q23 4Q23 1Q24 *Axtel reported as discontinued operations from 1Q23 to 2
Slide 31: Higher Reported and Comparable EBITDA in 1Q24
Higher Reported and Comparable EBITDA in 1Q24 ALFA & Subs* EBITDA Extraordinary items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 1Q24 vs 1Q23: 13% 1Q24 vs 1Q23: 4% EBITDA Margin 1Q24 vs 4Q23: 51% EBITDA Margin 1Q24 vs 4Q23: 4% 425 1Q23 2Q23 3Q23 4Q23 1Q24 376 373 360 425 396 407
Slide 32: Net Debt/EBITDA of 3.5x at the close of 1Q24
Net Debt/EBITDA of 3.5x at the close of 1Q24; higher cash balance following Sigma’s successful placement of local notes ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 3.5 3.5 3.4 1,529 5,049 4,994 5,094 3.3 4,866 4,919 2.7 1,163 1,167 1,188 1,055 1
Slide 33: ALFA's Net Debt increased US $175 million
ALFA’s Net Debt increased US $175 million mainly driven by investment in Net Working Capital at Alpek and Sigma ALFA Consolidated Change in Net Debt Change in Net Debt 4Q23 vs 1Q24 (US $ Million) (US $ Million) +4% 1Q24 EBITDA 425 Net Working Capital (NWC) (276) +3% +5% Capital Expenditures & Acq. (
Slide 34: Foreign ownership was 51.6% of total ALFA shares at the close of 1Q24
Foreign ownership was 51.6% of total ALFA shares at the close of 1Q24 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 1Q24 Maximum Nafinsa Trust Threshold (75%) 2,499 2,472 2,490 2,470 2,486 51.9% 51.3% 51.7% 51.3% 51.6% 1Q23 2Q23 3Q23 4Q23 1Q24 35
Slide 35: 1Q24 Highlights: Sigma
1Q24 Highlights Sigma Consolidated Results - Twelfth consecutive quarter of year-on-year sales growth - Record first quarter volume of 449 ktons, up 5% versus 1Q23 - All-time high quarterly EBITDA of US $264 million, up 38% year-on-year - Sustained improvement in Net Debt to EBITDA ratio (2.2x); low
Slide 36: Twelfth consecutive quarter of year-on-year Revenue growth
Twelfth consecutive quarter of year-on-year Revenue growth supported by record first quarter Volume Revenues Revenues 1Q24 vs 1Q23 Revenues 1Q24 vs 4Q23 (US $ Million) (US $ Million) (US $ Million) 2,209 2,161 2,170 2,143 1,991 1Q23 2Q23 3Q23 4Q23 1Q24 37
Slide 37: 1Q24 EBITDA up 38%, led by Europe, the U.S., and Mexico
1Q24 EBITDA up 38%, led by Europe, the U.S., and Mexico EBITDA EBITDA 1Q24 vs 1Q23 EBITDA 1Q24 vs 4Q23 (US $ Million) (US $ Million) (US $ Million) 255 264 229 217 192 1Q23 2Q23 3Q23 4Q23 1Q24 38
Slide 38: Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin
Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 1Q24 EBITDA Margin (%) EBITDA Margin By Region (%) 16.3 15.7 15.5 14.6 14.7 12.4 13.8 11.6 12.2 10.8 10.5 10.5 11.5 10.1 10.6 9.2 9.4 9.6 8.9 8.7 9.2 10.0 8.1 8.5 6.5 5.6 2.1 2.5 1.6 2020 2021 2022 2023 1Q24 1Q22 2Q22 3Q22 4
Slide 39: Sustained improvement of Net Debt to EBITDA Ratio; 2.2x at close of 1Q24
Sustained improvement of Net Debt to EBITDA Ratio; 2.2x at the close of 1Q24 represents lowest level in 10 years Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,084 2,012 2,045 2,025 2.8 1,840 2.7 1,134 2.5 2.3 2.2 628 610 626 552 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23
Slide 40: The year-to-date increase in Net Debt mainly reflects investment in Net Working Capital
The year-to-date increase in Net Debt mainly reflects investment in Net Working Capital Change in Net Debt 1Q24 vs 4Q23 (US $ Million) Net Debt increased by US $59 million when compared to 4Q23 ~67% of 1Q24 Capex was maintenance- related For 1Q24, currency forward contracts totaled US $74 million wi
Slide 41: 1Q24 Recent developments
1Q24 Recent developments 2024 Euro bond refinancing • Sigma paid its Euro Senior Notes due 2024 (February 2024) • The total outstanding principal amount of €600 million was paid at maturity with funds from four bilateral, long-term bank loans Mexican local Bond program • Successful placement of Ps $
Slide 42: Alpek's 1Q24 EBITDA on track to reach full-year Guidance
Alpek’s 1Q24 EBITDA on track to reach full-year Guidance supported by volume growth 1Q24 Highlights Paraxylene (North America vs Asia) North America (US$/Ton) Asia • Álvaro Fernández appointed Chairman of the Board 1,837 • 1Q24 volume up 4% year-on-year and 9% higher quarter-on- 1,505 1,462 quarter,
Slide 43: Index
Index ALFA Overview ALFA First Quarter Results ALFA 2024 Guidance Appendix Additional Information 46
Slide 44: ALFA Guidance 2024 - Highlights
ALFA Guidance 2024 - Highlights Slower economic growth in the Americas - Slower GDP growth in Mexico and U.S. - Slight improvement in Europe Weaker Peso and stronger Euro vs the U.S. Dollar - 5% depreciation of the Mexican Peso (avg: $18.7 USD/MXN) - 2% appreciation of the Euro (avg: $1.10 EUR/USD)
Slide 45: ALFA Guidance 2024 - Key Assumptions
ALFA Guidance 2024 - Key Assumptions 2023 2024 G Mexico % 3.4 2.0 GDP United States % 2.5 1.5 Eurozone % 0.5 0.8 Energy Brent Oil Avg. USD/bbl 83 85 Peso USD/MXN 17.8 18.7 Foreign Exchange Rate (Avg.) Euro EUR/USD 1.08 1.10 U.S. GPD source: Bureau of Economic Analysis; México and Europe GDP estimate
Slide 46: ALFA Guidance 2024 - Selected Consolidated Items
ALFA Guidance 2024 - Selected Consolidated Items (US $ Millions) 2023 2024 G Ch% Revenues 16,388 16,575 1 EBITDA 1,391A 1,510 9 Comparable EBITDA 1,623 1,510 (7) Capex 570 450 (21) 2023 EBITDA includes a net impact of US -$233 million from extraordinary items 47
Slide 47: ALFA Guidance 2024 – Breakdown by Subsidiary
ALFA Guidance 2024 – Breakdown by Subsidiary EBITDA Comparable EBITDA (US $ Millions) 2023 2024 G Ch% 2023 2024 G Ch% ALFA 1,391A 1,510 9 ALFA 1,623 1,510 (7) Sigma 893A 920 3 Sigma 905 920 2 Alpek 514A 600 17 Alpek 734 600 (18) Revenues Capex 2023 2024 G Ch% 2023 2024 G Ch% ALFA 16,388 16,575 1 ALF
Slide 48: ALFA Guidance 2024 – EBITDA and Comparable EBITDA
ALFA Guidance 2024 – EBITDA and Comparable EBITDA EBITDA (US $ Millions) +9% -7% Business 2024 Highlights 233 1,623 15 (134) 6 1,510 Sustained improvement in Europe and solid 1,391 performance in the Americas Continued pressure on polyester, polypropylene (PP) and expandable polystyrene (EPS) refere
Slide 49: ALFA Guidance 2024 – Revenues & CAPEX
ALFA Guidance 2024 – Revenues & CAPEX Revenues CAPEX (US $ Millions) (US $ Millions) +1% -21% 16,388 145 41 1 16,575 570 (43) (77) 450 Revenues Sigma Alpek Others Revenues CAPEX Sigma Alpek CAPEX 2023 2024 G 2023A 2024 G 2023 Capex includes acquisitions totaling US $101 million; Sigma US $73 million
Slide 50: Index
Index ALFA Overview ALFA First Quarter Results ALFA 2024 Guidance Appendix Additional Information 46
Slide 51: ALFA's heritage goes back to 1890
ALFA's heritage goes back to 1890 2004 2008 2021 Sigma expands Sigma invest Alpek acquires 1996 in cheese in Perú NOVA Chemicals Alestra is and CarbonLITE founded 2013 2010 Sigma 2018 1975 (Telecom) Alpek acquires 2020 Sigma acquires First investment PQS (Brazil) Nemak 2023 2001 acquires Campofrio i
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 Teksid & Hydro Columbia site Campofrio Petroquímica rPET Plant PET Sheet Americas Casting assets Eastman Chemical Food Group Suape and Citepe Plants NOVA Chemicals OCTAL Wilto
Slide 53: ALFA's materiality matrix
ALFA’s materiality matrix CORPORATE Immediate attention High priority 100% 1 ESG Strategy & risk management 1 3 Transparency, ESG Strategy & 90% Corporate governance with a reliability & 3 risk management investor relations 6 2 RELEVANCE FOR STAKEHOLDERS sustainable approach 80% 4 9 2 Transparency,
Slide 54: 2023 ESG Index and Ratings performance
2023 ESG Index and Ratings performance ESG INDEXES AND ALFA SIGMA ALPEK QUESTIONNAIRES S&P / BMV Constituent - Constituent S&P CSA 37 42 59 CDP B/B B/B B/B- Climate Change / Water MSCI BB - BB FTSE4Good Constituent - Constituent 55
Slide 55: ROIC 2017 - 2023
ROIC 2017 - 2023 14 14 12 7 7 6 4 2017 2018 2019 2020 2021 2022 2023 ROIC = NOPAT / Invested Capital | NOPAT = EBIT – Taxes | Invested Capital = Stockholder’s Equity + Debt Nemak and Axtel accounted as Discontinued Operations. 56
Slide 56: Breakdown by Region
Breakdown by Region Revenues 2023 US $16.4 Billion Asia & Ohers 6% South & Central America 12% Mexico 40% Europe 17% U.S. & Canada 25% 57
Slide 57: ALFA gained flexibility for future debt payments through 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 1Q24: US $1,247 Million Bank Loan 17% Senior Notes due 2024 Senior Notes 41% due 20
Slide 58: Outstanding bonds - ALFA
Value 100 105 110 85 90 95 80 28/4/2023 12/5/2023 26/5/2023 9/6/2023 23/6/2023 7/7/2023 21/7/2023 4/8/2023 18/8/2023 1/9/2023 15/9/2023 29/9/2023 13/10/2023 Outstanding bonds - ALFA 27/10/2023 10/11/2023 24/11/2023 8/12/2023 22/12/2023 5/1/2024 19/1/2024 2/2/2024 16/2/2024 1/3/2024 15/3/2024 29/3/20
Slide 59: Outstanding bonds - ALFA Subsidiaries
Value 100 105 70 75 80 85 90 95 28/4/2023 12/5/2023 26/5/2023 9/6/2023 23/6/2023 7/7/2023 21/7/2023 4/8/2023 18/8/2023 1/9/2023 15/9/2023 29/9/2023 13/10/2023 27/10/2023 Alpek 10/11/2023 24/11/2023 8/12/2023 22/12/2023 5/1/2024 19/1/2024 2/2/2024 16/2/2024 1/3/2024 15/3/2024 29/3/2024 12/4/2024 26/4
Slide 60: ALFA & Subsidiaries Outstanding Bonds
ALFA & Subsidiaries Outstanding Bonds Amount YTM Ratings Company Rate Maturity (M US$) (April/30/2024) S&P Fitch Moody’s BBB- ; SO ALFA 500 6.875% 6.885% March 25, 2044 BBB- ; SO Baa3 ; SO (issue level BB+) Alpek 500 4.250% 6.231% September 18, 2029 BBB- ; SO BBB- ; SO Baa3 ; SO Alpek 600 3.250% 6.3
Slide 61: Stock Highlights (BMV: ALFAA)
Stock Highlights (BMV: ALFAA) Daily Stock Price (MXN) Daily Average Traded Shares & Value (M Shares) (US$ M) 30 25 25 (M Shares) (US$ M) 25 20 20 20 15 15 15 10 10 10 5 5 5 0 0 0 E M M J S N E M M J S N E M M J S N E M M J S N 2020 2021 2022 2023 2020 2021 2022 2023 Market Cap.* 3,035 3,412 3,391 3,
Slide 62: Brent Crude Oil
Brent Crude Oil US $ / Barrell 140 120 99 $/bbl Guidance 100 2024 81 85 71 $/bbl $/bbl $/bbl 80 60 40 43 $/bbl 20 0 2020 2021 2022 2023 63
Slide 63: Paraxylene prices
Paraxylene prices Px Contract Price (US $ / Ton) 64
Slide 64: Integrated PET Margin (Asia)
Integrated PET Margin (Asia) PET Integrated Margins | Px / MEG to PET (US $ / Ton) 65
Slide 65: North America EPS reference margins
North America EPS reference margins North America EPS margin | EPS to Styrene (US cpp) 66
Slide 66: 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 67
Slide 67: Slide 67
Slide 68: Sigma at a glance
EQ alfa sioma ata stance LTM 1024 US $965M 68
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 Innovation – Design Thinking 1,950+ New Product Launches in the last 3 years 10% of Revenue comes from innovations Research & Development 2 Centros de Investigación (México & España) 260+ Especialistas 35+ Patentes & Propiedad Intelec
Slide 71: Growth BU | Initiatives
Daifa Growth BU | Initiatives Global Categories New Business Models GRILLHOUSE & ASAMOS oy HISTORIA ») netpor t. (AER eR or Sigma Stages: (2) ideation (2) Pilot (3) Launching (4 } Escalation 71
Slide 72: Growth BU | 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
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) 8% Meat and Dairy Raw 7% 2% Materials 6% Dry Ingredients 21% 9% Direct Labor Selling Trade Products Administrative 56% 8% Packaging General Energy (Fuel, electr
Slide 74: Debt profile
Debt profile Proforma Debt Maturity (US $Million) 1,134 Proforma Local Notes (Cebures) execution: 599 ** 599 Average Life: 4.6 years Average Rate: 7.7% (Includes CCS1) 695 91 501 508 ● Executed credit lines to refinance 2024 Bonds 402 ● Looking to equalize the debt proportion with 535 EBITDA generat
Slide 75: 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 2022 €/kg 2022 2023 2023 2024 2024 4.0 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. Dic. Feb. Apr. Jun. Aug. Oct. Dic. 76
Slide 76: 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 77: 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 2021 2022 2023 2024 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 76
Slide 78: Exchange rates
Exchange rates U.S. Dollar – MXN Peso U.S. Dollar – Euro 2022 2022 2023 2023 2024 2024 22.0 1.25 21.0 1.20 20.0 1.15 19.0 1.10 18.0 17.07 1.09 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 77
Slide 79: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx