Grupo Bimbo SAB de CV Class A · BMV:BIMBO/A
Grupo Bimbo SAB de CV Class A — Q4 2013 Earnings Presentation
30 slides from Grupo Bimbo SAB de CV Class A's earnings presentation, February 2014
Slide 1: Investor Presentation 4Q13
AX Grupo ws BIMBO Investor Presentation 4Q13
Slide 2: Grupo Bimbo
Grupo Bimbo Global leader in baking and one of the largest packaged food players 2013 Sales: USD $13.8 Bn1 2013 EBITDA: USD $1.4 Bn1 Presence in 19 countries +10,000 products and +100 brands Categories: packaged bread, salted snacks, confectionary, tortillas and packaged food Market Cap of USD $12.7
Slide 3: Broad Asset Base
Broad Asset Base Control Group Float 125,000 associates 76% 24% 144 plants Central & Mexico USA Iberia Asia1 +2.2 MM South America POS +52,000 routes 3 1. Asia’s results are included in Mexico
Slide 4: Globally Present, Locally Committed
Globally Present, Locally Committed 2013 Revenue Breakdown (US$13.8 Bn)2 Iberia Portugal & Spain LatAm 3% United States 12% #1 in packaged baked Leader nationwide goods #1 in premium brands Mexico Leading brands in sweet #1 in English muffins 39% baked goods and snack #1 portfolio of His
Slide 5: Accelerated International Expansion
Successful Growth Case Strict 2011 Reinvestment Strategic Focus Accelerated International Expansion 2009 Sustainable Growth 00s Solid 90s Balance … 80s Sheet 70s Successful growth story through a combination 60s of organic growth, strategic acquisitions 50s combined with a conservative financial pol
Slide 6: Key Success Drivers
Key Success Drivers Long Run Player Innovation Dedication in a Very & to Bakery Attractive and Brand Equity Deep Consumer Industry Non-Cyclical Understanding Industry Over the last decade GB shifted from a strong local player to a leader in the Americas Experienced Socially & Responsible Management
Slide 7: Leading Player in an Attractive Non-Cyclical Industry
Leading Player in an Attractive Non- Cyclical Industry 1 LTM Revenues in US$MM Attractive High Non- 13,786 industry Resilient consumption discretionary 11,672 Industry frequency products Fundamentals 7,878 3,751 1,812 2 Key success Innovation & Strong Distribution, Packaged Bread Penetration product
Slide 8: Strong Brand Equity and Deep Consumer Understanding
Strong Brand Equity and Deep Consumer Understanding Taking innovative products Broad portfolio around the world Every meal, every occasion, every Extraordinary Deep consumer group Brand consumer Awareness understanding BIMBO: one of the most valuable 4 R&D brands in Latin 1 Products that America Lea
Slide 9: Exceptional Distribution Network and Manufacturing Facilities
Exceptional Distribution Network and Manufacturing Facilities +52,000 Unique expertise in moving routes high volume products On of the largest fleets Attuned distribution Access to in the model for Low cost unmatched Americas each channel increase technological manufacturing equipment CAPEX 9 9
Slide 10: Seasoned Management Team, Sound Governance & Strong Corporate Identity
Seasoned Management Team, Sound Governance & Strong Corporate Identity Daniel Servitje Positioned the company as the market leader Chairman of the Board Proven track record of stability and growth Seasoned Successfully integrated more than 30 Audit Committee Compensation & Finance & Planning Managem
Slide 11: Strong Financial Performance
Strong Financial Performance Revenue Growth1 EBITDA Growth1 (US$ in millions) (US$ in millions) EBITDA Margin 13,786 13,164 1,357 10,733 1,224 1,183 1,173 0 0 1,070 8,619 9,273 7,375 881 0 -6 -16 2008 2009 2010 2011* 2012* 2013* 2008 2009 2010 2011* 2012* 2013* Iberia Latin America U.S. Mexico GB 11
Slide 12: Financial Stability
Financial Stability EBIT % EBITDA % Gross % Commodities Commodities/ Integration 56.2 56.7 54.8 53.3 53.1 53.7 53.3 53.0 54.0 53.4 52.8 52.8 52.8 52.3 51.2 51.1 51.0 50.7 48.6 47.9 13 13.5 13.8 13.7 14.1 13.6 12.8 12.2 12.0 13.6 13.2 12.3 11.9 10.7 10.3 11.1 11.0 9.5 9.8 8.1 9.7 9.7 9.9 10.3 9.7 10.
Slide 13: Responsible Financial Policies
Responsible Financial Policies Flexible Capital Structure Leverage Total Debt/EBITDA 1 #REF! Net Debt/ EBITDA 3.3 3.1 3.0 Rapid deleveraging: target <2x 2.4 2.9 2.3 2.2 2.7 2.2 2.0 1.9 1.2 1.1 0.9 0.6 0.7 Investment grade ratings: 0.4 0.2 0.4 Baa2/BBB/BBB 2005 2006 2007 2008 2009 2010 2011* 2012* 20
Slide 14: Responsible Financial Management
Responsible Financial Management Amortization Schedule1 Average Life: 5.0 years Total Debt: US$2,945 mm Av. Financing Cost: 4.6% Jan 2012: US$800mm of 145 53 800 800 4.5% due 2022 under Reg-S Rule 382 382 382 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Current undrawn committed facilities Feb
Slide 15: Building a Sustainable Future
Building a Sustainable Future We understand there is no conflict in doing good and doing well Wind farm in Mexico 10K families WHO and SSA Energy consumption supported by guidelines down 11m kWh +127K associates in “Fundar” 19 countries Trans fats removed Water consumption 65K indigenous from 99.5%
Slide 16: Looking Ahead
Looking Ahead 16
Slide 17: Time to Improve Profitability
Time to Improve Profitability Synergistic Transaction Long Term Vision- Do It Right One time costs are necessary to IT Efficient operation with value capture synergies (US$200mm) Leadership Manufacturing creation to consumers Growth 1. Cost Distribution Strong CF generation S&A EFICIENCY Industry Tr
Slide 18: Time to Invest
Time to Invest Our Strong Cash Flow Generation Backs our Investment Plan Investments are clearly focused on productivity US synergies- reconfigure manufacturing print Streamline manufacturing capabilities Low- Cost LatAm- Build scale and market penetration Producer Next couple of years…CAPEX around
Slide 19: Time to Deleverage
Time to Deleverage Total Debt/ EBITDA 3.3x1 3.1x 2.5x 2.2x 3.0x 1.9x 1.5x 2.3x 2.3x 1.1x 1.2x 0.9x 1.1x 0.7x 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012* 2013* Weston West Weston East Sara Lee 1.Pro forma figures with Weston Foods acquisition 19 * 2011, 2012 and 2013 in IFRS
Slide 20: Why Grupo Bimbo?
5 year return in USD1 Why Grupo Bimbo? 22% +144% +301% 1 Long-term value creation +139% 2 Strongly positioned in local & International indexes 3 Focused on our core business 4 Cash flow stability 5 Successful deleveraging and solid investment grade ratings 6 Strong & continuous reinvestment 7 Respon
Slide 21: Annex: Financial Results by Region & Recent Acquisitions
Annex: Financial Results by Region & Recent Acquisitions 21
Slide 22: Grupo Bimbo - Quarterly Results
Grupo Bimbo - Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 1.7% 9.9% 10.8% 10.7% 9.8% 7.8% 176,040 173,139 7.7% 8.6% 9.0% 8.1% 7.1% 17,326 2.7% 14,076 3.0% 46,480 -0.1% 45,278 4,840 4,980 44,836 4,281 4,058 1.0% 3,355 3,756 43,318 43,274 43,515 2,908 3,224 41,449 41,
Slide 23: Mexico - Quarterly Results
Mexico- Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 20.6% 3.8% 9,00 73,178 8,00 16.4% 15.8% 14.2% 18.3% 4.2% 70,491 7,00 5.2% 11.7% 14.6% 13.8% 1.7% 6,00 4.1% 18,966 11,560 18,698 5,00 9,735 17,740 17,775 17,769 18,209 11.3% 3,912 17,435 4,00 10.9% 17,078 3,058 3,32
Slide 24: United States - Quarterly Results
United States- Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 1.1% 6,00 8.2% 8.1% 79,767 7.0% 7.3% 78,927 7.0% 5,00 7.2% -3.5% 2.4% 3.5% 6.4% 6.4% 4,00 6.1% 5,854 2.0% 21,165 20,706 19,986 19,91320,400 20,447 5,027 4.7% 3,00 18,216 17,861 2,00 1,4831,636 1,648 1,278 1,
Slide 25: Latin America - Quarterly Results
Latin America- Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 4.4% -3.8% 3.2% 2.8% 0.7% 73 5 -1.9% 22,676 21,822 -1.2% 0.5% -1.1% -1.1% -1.8% 53 5 -7.6% -5.3% -3.5% -4.6% 33 5 242 6,043 5,933 172 151 5,493 5,544 5,596 149 5,203 5,347 5,338 13 5 27 -65 -61 -61 -114 -265
Slide 26: Iberia - Quarterly Results
Iberia - Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 2.7% -2.0% -3.6% -3.8% 73 5 -6.2% -3.9% 5,323 53 5 5,182 -8.2% -6.8% -10.2% -8.7% -9.3% 13.7% -6.9% 33 5 -3.5% 10.8% 13 5 1,399 1,543 1,264 1,269 1,230 1,436 1,219 1,145 -65 -28 -104 -75 -106 -49 -84 -158 -52 -265
Slide 27: Recent Acquisitions
Recent Acquisitions Sara Lee North American Fresh Bakery - Earthgrains Acquired for an all-cash purchase price of US$709 million, which includes US$34 million in assumed liabilities Attractive acquisition, which will add scale, diversify the brand portfolio and complement the geographic footprin
Slide 28: Upcoming Acquisition – Canada Bread
Upcoming Acquisition – Canada Bread Purchase price: CAD$1,830 million Implied transaction multiples Canada – 16 Bakeries Annual Revenues: CAD$1,439 million 1 FV2 /LTM Revenues 1 : 1.2x FV2 /LTM EBITDA1 : 9.3x Annual EBITDA: CAD$185 million 1 (12.9% margin) Canada Bread is one of the lead
Slide 29: Thank you
Thank you 29
Slide 30: Disclaimer
The i nformation contained herein has been prepared by Grupo Bimbo, S.A.B. de C.V. (the “Company") solely for use at i nvestors´ presentations. The i nformation herein is only a s ummary a nd does not purport to be complete. Thi s material has been prepared s olely for i nformational purposes and sh