Grupo Bimbo Sab De Cv Class A · BMV:BIMBO/A
Grupo Bimbo Sab De Cv Class A — Q2 2020 Earnings Presentation
24 slides from Grupo Bimbo Sab De Cv Class A's earnings presentation, 2020
Slide 1: Investor Presentation Second Quarter 2020
Investor Presentation Second Quarter 2020
Slide 2: Grupo Bimbo Today
Control Group: 76% Grupo Bimbo Today Float: 24% Argentina US $7.8 Bn 33 Brazil Canada MARKET CAP 1 COUNTRIES Chile China 197 Colombia US $15.2 Bn PLANTS Costa Rica Ecuador NET SALES 2 El Salvador +55,000 France Guatemala ROUTES Honduras US $2.0 Bn India ADJ. EBITDA3 +2.8 M Italy Kazakhstan POINTS OF
Slide 3: Leading Brands Across our Markets
Leading Brands Across our Markets NORTH AMERICA MEXICO LATIN AMERICA EAA U.S. CANADA 3
Slide 4: Global Leader in the Baking Industry
Global Leader in the Baking Industry Top 3 market share Market share North America(1) EAA(3) within 7 categories in leader within 26K Associates 12K Associates most countries(4) 8 categories 49 plants 78 plants Canada USA Sliced bread Sliced bread Bagels Breakfast Snack cakes Premium bread Tortillas
Slide 5: Global Undisputed Baking Industry Leader
Global Undisputed Baking Industry Leader represents 4.2% of the US$473 Bn Global Baking Industry1 Over 1.2x second player, Mondelez & 3.5x third player, Campbells’ Soup1 Artisanal and Private labels representing 46% of industry sales1 Industry Fundamentals2 Industry Performance - Highly fragmented i
Slide 6: Our Strong Presence and Diversification
Our Strong Presence and Diversification By Geography By Categories & Products By Channel Sales by Geographic Region 10+ Different Categories Retail North Supermarkets, convenience stores, America among others 52% Sliced Buns & English Salty Bagels Bread Rolls Snacks Muffin Traditional “Mom & pops” C
Slide 7: Our Top Brands
Our Top Brands 7 1 +US $1 +US $500 billion million 5 68 +US $250 +US +US $100 $100 million million million ____________ Source: Internal information on estimated retail sales by brand considering the last twelve months as of June 30 th, 2020 77
Slide 8: Extensive Markets Knowledge Drives Global Expansion
Extensive Markets Knowledge Drives Global Expansion Success Drivers Scale and global diversification From Mexico From Mexico From U.S. to 19 countries to 16 countries to 6 countries Distribution efficiencies Strong brand equity From Mexico From Mexico From U.S. Innovation capabilities to 11 countrie
Slide 9: Our Recipe for Growth and Transformation
Our Recipe for Growth and Transformation Scale-up our Go-to- Market Strategy Serve our consumers with Great Products Streamline our Supply Expand our Brand Chain Costs Penetration Capture Large and SG&A Reduction Nourish a Better Actionable Growth World Opportunities 9
Slide 10: Successfully Navigating New Challenges
Successfully Navigating New Challenges COVID-19 INITIATIVES Social distancing Daily hygene steps ASSOCIATES Labor flexibility and remote work: Teams and Zoom Close communication with our main suppliers of MANUFACTURING raw materials Prioritizing high volume, fast moving SKUs Reopened Hazelton Bakery
Slide 11: Continuously Adapting to New Consumption Trends
Continuously Adapting to New Consumption Trends Shift to “at-home” consumption National road trips substituting air travel 32% of consumers plan to cook Consumers are more cautious, opt at home more after the COVID-19 for staycations, RV’s are becoming outbreak more popular Ensure execution and Prio
Slide 12: Innovation: Our Key to Success
Innovation: Our Key to Success A brand of ancient Continued expansion of clean Snacks expansion ingredients label & compostable packaging Little Bites Launch in Easter Canada Entenmann’s Natural and simple Pre-packaged Pie ABO Clean Label Launch Shipper ingredients Organic bread No preservatives and
Slide 13: Our Innovation Platform
Our Innovation Platform Investment in promising start ups o Streamline and digitize our Mexico & LATAM USA supply chain o Transforming our distribution models o Engaging in disruptive product innovation o Identifying and leveraging new technologies for business improvement Europe & ROW 13
Slide 14: Our Environmental & Sustainability Approach
Our Environmental & Sustainability Approach Environmental Strategy Sustainability 2025 Goals Renewable Energy 100% o 85% in Mexico, 100% in U.S RENEWABLE ELECTRIC POWER o In Chile, we have the largest solar roof in South America o Piedra Larga Windfarm, supplies 70% +4,000 Carbon Water of the electr
Slide 15: Leading Company in Corporate Responsibility & Governance
Leading Company in Corporate Responsibility & Governance COMMITTIES Steering Committee Audit and Corporate BOARD OF DIRECTORS Finance and Planning • 38% are independent Name Role • 83% men,17% women Daniel Servitje CEO Evaluation and Results Diego Gaxiola CFO TOP MANGEMENT Javier González Executive
Slide 16: 2Q20 Results
2Q20 Results Highlights • Posted record second quarter net sales of Ps. 86,411 million, a 19.9% increase, due to outstanding volume growth in North America and an FX rate benefit • Reported record adjusted EBITDA1 , which grew 29.2% and the margin expanded 100 basis points • Net Majority Income more
Slide 17: Well Positioned to Succeed in the New Normal
Well Positioned to Succeed in the New Normal Increase 1reduce expenses Implement cost initiatives to 4 profitability & return on capital Invest in strategic projects Grow with moderate 2 Cash flow generation and preservation 5 leverage “Cash is King” Maintain a conservative Improve 3 working capital
Slide 18: Sustained Growth in Sales and Profitability
Sustained Growth in Sales and Profitability 1 Includes effect NET SALES Bn. Mexican pesos ADJ. EBITDA of IFRS16 41.4 CAGR: 6.6% 37.9 291.9 311.1 289.3 31.7 252.1 268.5 29.3 219.2 27.3 23.4 2015 2016 2017 2018 2019 LTM 2Q20 2015 2016 2017 2018 2019 2Q20 LTM 86.4 QUARTER GB 2015 10.7% 2016 11.6% 2017
Slide 19: Proven Ability to Grow with Prudent Leverage
Proven Ability to Grow with Prudent Leverage (1) Net Debt / Adj. EBITDA 3.1 (3) 3.0 (4) 2.9 (2) 2.8 2.7 2.7 2.7 2.6 2.6 2.5 2.4 2.2 2.0 1.9 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20 US$ 2.4 Bn US$ 709 mm CAD$ 1.8 Bn US$ 650 mm ____________ (1) Adj. EBITDA w/o IFRS16: Earn
Slide 20: Debt Profile
Debt Profile Total Debt: US $4,492 mm (1) Debt Split by Currency (2) Avg. Tenor: 13.1 yrs. 2% 6% USD Avg. Cost: 5.6% Fixed: 93%, Variable:7% MXN Ratings: BBB/Baa2/BBB 33% CAD 59% S&P/Moody’s/Fitch US$1.7 Bn EUR in undrawn Committed Revolver Facility 1.7 Bn 798 800 650 596 419 500 302 335 2020 2021 2
Slide 21: Looking Forward
Looking Forward New Guidance 2020 Top line growth Low double-digit Adj. EBITDA growth Mid-to-high teens Tax Rate High 30’s – Low 40´s Capex US $650 – 750 mm 21
Slide 22: In the Face of New Challenges, We Are Stronger
In the Face of New Challenges, We Are Stronger Leading position in a resilient industry and geographic diversification in our channels and categories Well-established portfolio of brands and responsiveness of our entire value chain Strong commitment and determination of our teams on the frontlines E
Slide 23: Thank you!
Thank you! GRUPO ® NOURISHING A BETTER WORLD
Slide 24: Disclaimer
Disclaimer The information contained here in has been prepared by Grupo Bimbo, S.A.B. de C.V. (the “Company") solely for use at this presentation. This presentation does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securit