Becle, S.a.b. De C.v. · BMV:CUERVO
Becle, S.a.b. De C.v — Debt Investor Presentation (November 2021)
22 slides from Becle, S.a.b. De C.v's debt investor presentation, Nov 24, 2021
Slide 1: Investor Presentation
Investor Presentation Becle, S.A.B de C.V. November 2021
Slide 2: Becle: A Leading Global Spirits Company and Undisputed Leader in Tequila Worldwide
Becle: A Leading Global Spirits Company and Undisputed Leader in Tequila Worldwide Becle Today Diversified Product Portfolio with Over 30 Brands 2020 Key Figures • Undisputed leader in tequila globally, ~29% Exposure to the Right … With the Right High-Growth 23.7MM 1.3x market share(1) Geographies…
Slide 3: Becle's Outstanding Performance Makes it Today a Stronger Credit than in 2015
Becle's Outstanding Performance Makes it Today a Stronger Credit than in 2015 2015 2020 Becle’s last bond issuance 18.2MM 1.3X 23.7MM of 9 Liter Cases of 9 Liter Cases NSV/Case (1) US$51 NSV/Case (1) US$75 933 MM 1.9X 1,769 MM Net Sales (US$) (2) Net Sales (US$) (2) Focus on brand premiumization Net
Slide 4: Our Company
Our Company 1 Undisputed Global Leader in Tequila and #3 in Irish Whiskey 2 Dominant Position in the Hottest Spirits Category… 3 …And a Privileged Competitive Position… …In High-Growth Spirits Categories Through an Extensive Product 4 Portfolio with Focus on Premiumization Proven Agility and Innovat
Slide 5: Undisputed Global Leader in Tequila and #3 in Irish Whiskey
1 Undisputed Global Leader in Tequila and #3 in Irish Whiskey Global Leader in Tequila… ... In Every Region As of 2020 Volume – Total Market Size 35.5MM 9L Cases As % of volume - 2020 United States (67% of 2020 Global Volume) 29.3% 1ST 25.4% 10.3% Owner of 3 of Top 7 Rest of the World Leading Tequil
Slide 6: Dominant Position in the Hottest Spirits Category…
2 Dominant Position in the Hottest Spirits Category… Since Last Issuance, Tequila has… A …Been the Fastest Growing Major Spirits Category in the US and Second Fastest in the World B …Significantly Increased its Market Share (2015 - 2020 9L cases volume CAGR) (In terms of 9L cases volume) In 2020 Teq
Slide 7: …And a Privileged Competitive Position…
3 …And a Privileged Competitive Position… High Barriers of Entry Provided by Becle’s Vertical Integration and Own Distribution Agriculture Production Distribution Competitive Advantage Resulting from Appellation of Flagship Distilleries and Bottling Facilities Support Own Distribution Platform to Co
Slide 8: … In the Right Categories & Markets…
4 … In the Right Categories & Markets… Exposure to Dynamic Regions and Categories Spirits Growth | 2015-2020 9L cases Volume CAGR (1) 67% of Becle’s Sales in Tequila & Irish Whiskey 70% of Becle’s Sales in the U.S. & Canada 9.7% 9.5% 7.7% 4.8% 3.3% (2.9%) (2) Tequila Irish Whiskey Total Spirits Tequ
Slide 9: …Through an Extensive Product Portfolio with Focus on Premiumization
4 … Through an Extensive Product Portfolio with Focus on Premiumization Diversified Brand Portfolio Net Sales by Category Jose Cuervo Family 1800 Other By value as of 2020 Tequila Prestige Super Premium Super Premium/ Premium Super Premium Ultra Premium Ultra Premium Irish Whiskey U.S. Whiskey Whisk
Slide 10: Proven Agility and Innovation Driving a Resilient Business Model with High Operating Cash Generation Capacity
5 Proven Agility and Innovation Driving a Resilient Business Model with High Operating Cash Generation Capacity Becle’s Agile & Innovative Business Model is a Key Driver of its Outperformance Net Sales Y-o-Y | (%) Becle’s resiliency proven in 2020 results 32.1% 20.6% 17.9% 6.4% 8.5% 1.4% 5.5% ∆ 24.0
Slide 11: Best-in-Class Capital Structure & Prudent Financial Policy Whilst Delivering Consistent Growth
6 Best-in-Class Capital Structure & Prudent Financial Policy Whilst Delivering Consistent Growth Best-In-Class Credit Metrics (1) Total Debt / Market Cap (2) Total Debt / 2020 EBITDA 5.8x 35.0% 5.1x 25.6% 3.9x 3.3x 19.1% 19.9% 2.5x 2.1x 7.8% 7.8% 1.6x Pernod Constellation Constellation Pernod Brown-
Slide 12: Renowned Family Heritage and Strong Corporate Governance
7 Renowned Family Heritage and Strong Corporate Governance Becle is a Global Spirits Company with a Profound Family Heritage Ownership • Founded in 1758, Becle is today an 11th generation managed spirits company Public Float 13% • Public company since 2017 and part of the S&P/BMV IPC and MSCI indexe
Slide 13: Strong Social and Sustainability Driven Culture
8 Strong Social and Sustainability Driven Culture We Care About our People, our Customers & the Environment Awards & Recognitions Responsible Community Consumption Engagement We promote responsible and moderate consumption of spirits We work closely with the aiming to safeguard our communities where
Slide 14: Becle's Environmental Initiatives are Fully Aligned to the UN Sustainable Development Targets
8 Becle’s Environmental Initiatives are Fully Aligned to the UN Sustainable Development Targets US$60+ MM Invested Since 2010 in Sustainable Projects # Number of Projects 15 5 4 Climate Change Preserve Water Circular Economy SDG Alignment • New factories with Energy efficient design to • Wastewater
Slide 15: New Issue Concurrent with Liability Management Exercise to Increase Debt Maturity Profile and Maintain Strong Liquidity
New Issue Concurrent with Liability Management Exercise to Increase Debt Maturity Profile and Maintain Strong Liquidity Transaction Rationale Debt Maturity Profile As of 2Q21 | US$ MM (1) • Refinance upcoming maturities and extend debt maturity profile – Weighted average life from (4) 800 3.1yrs to
Slide 16: From a Net Debt Perspective, Contemplated Transaction is Essentially Leverage Neutral
From a Net Debt Perspective, Contemplated Transaction is Essentially Leverage Neutral Sources and Uses As of 2Q21 | US$ MM (1) Sources Uses New Sr. Notes 800 (2) Bank Loan Repayment 150 Repurchase of 2025 Sr. Notes (3) 350 Tender Premium Paid on 2025 Sr. Notes (4) 34 General Corporate Purposes 266 T
Slide 17: Financial Statements
Financial Statements 16
Slide 18: Income Statement
Income Statement As of December 31 As of June 30 (1) (1) (Ps$ MM) 2019 2020 2020 (USD) 2020 2021 2021 (USD) Net sales 29,705 35,036 1,769 13,894 16,699 843 Cost of goods sold (14,039) (16,790) (848) (6,588) (7,785) (393) Gross Profit 15,666 18,246 921 7,306 8,914 450 Advertising, marketing and promo
Slide 19: Balance Sheet
Balance Sheet As of December 31 As of June 30 (Ps$ MM) 2019 2020 2020 (USD) (7) 2021 2021 (USD) (7) Cash and cash equivalents 9,628 7,646 386 7,046 356 Trade receivables 9,295 9,214 465 7,161 362 (1) Inventories 10,353 11,486 580 13,696 692 Other assets (2) 2,374 3,281 166 3,317 168 Total current as
Slide 20: Cash Flow Statement
Cash Flow Statement As of December 31 As of June 30 (Ps$ MM) 2019 2020 2020 (USD) (1) 2020 2021 2021 (USD) (1) Operating activities: Income before income taxes 5,147 6,854 346 2,904 2,874 145 Adjustment from non-cash items: Depreciation and amortization 685 714 36 354 397 20 Loss on sale of property
Slide 21: Consolidated Statement of Comprehensive Income- Summary
Consolidated Statement of Comprehensive Income- Summary (1) (1) Third Quarter ended Third Quarter ended Year over Year September 30,2021 September 30,2020 Variance (Figures in millions) (Pesos) % of Net Sales (Pesos) % of Net Sales % Volume 6,484 ** 6,614 ** -1.97 Net Sales 9,592 100.0 10,413 100.0
Slide 22: Consolidated Statement of Financial Position & Cash Flow - Summary
Consolidated Statement of Financial Position & Cash Flow - Summary (1) (1) Third Quarter ended Third Quarter ended Year over Year September 30,2021 September 30,2020 Variance (Figures in millions) (Pesos) (Pesos) % Cash & Cash Equivalents 6,968 7,646 -8.87 Total Financial Debt 13,288 11,309 17.50 Ne
Becle, S.A.B. de C.V. — Debt Investor Presentation (November 2021) on 6ix