Grupo Bimbo Sab De Cv Class A · BMV:BIMBO/A
Grupo Bimbo Sab De Cv Class A — Q2 2014 Earnings Presentation
29 slides from Grupo Bimbo Sab De Cv Class A's earnings presentation, July 2014
Slide 1: To nourish, delight and serve our world
To nourish, delight and serve our world. Alimentar, deleitar y servir a nuestro mundo. Alimentar, deliciar e servir a nosso mundo Nourrir, réjouir et servir notre monde INVESTOR PRESENTATION 哺育, 愉悦和服务我们的世界 Second Quarter 2014
Slide 2: Market cap and key figures
Market Cap Control Group: 77% US$ 14.9 bn1 Float: 23% Distribution Revenues2 EBITDA2 Countries Plants Routes POS Associates Brands Products Centers US$13.7Bn US$1.3Bn 22 171 ≈ 53,000 ≈ 1,600 ≈ 2.3 mm ≈ 130,000 ≈100 ≈10,000 Central and US & Canada Mexico Europe Asia South America _______________ 1. A
Slide 3: Where do we stand?
Where do we stand? A Global Consumer Products Company and the leader in the baking industry space Remarkable growth story with financial stability Investments on manufacturing and logistics capabilities targeted to foster productivity Unyielding discipline on a conservative financial policy
Slide 4: A true multinational company with a well balanced business
A true multinational company with a well balanced business… Revenue Breakdown2 Europe Canada Mexico 3% #1 in Buns & Rolls Portugal, Spain & UK 38% United States #1 in Breakfast #1 in packaged baked goods Leading brands in sweet baked US$13.7 Leader nationwide #2 in Bread goods and snack catego
Slide 5: Successful Growth Case
Successful Growth Case Long term view and a strict reinvestment policy Strict and execution continue to drive organic growth Innovation Reinvestment Acquisitions have been a key component to gain global reach 2014 Leadership position in both, mature and high growth markets 2011 2009 Accele
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, stable industry
Leading player in an attractive, stable industry Attractive industry fundamentals Key success drivers for large scale players Resilience to major economic downturns Scale and diversification Non-discretionary consumer products Strong franchise and brand equity High-frequency consumption
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 Brand consumer group 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 +53,000 Unique routes expertise in moving high volume products On of the largest fleets Attuned in the distribution Access to Americas model for Low cost unmatched 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 Management Daniel Servitje Positioned the Company as market leader in the products and Chairman of the Board countries where present Proven track record of stability and sustainable growth Audit Committee and Compensation & F
Slide 11: Strong Financial Performance
Strong Financial Performance Revenue Growth1 EBITDA Growth1 (US$ in millions) (US$ in millions) EBITDA Margin 13,786 13,719 13,164 1,357 1,340 10,733 1,173 1,224 1,183 1,070 8,619 9,273 2009 2010 2011* 2012* 2013* LTM 2Q'14* 2009 2010 2011* 2012* 2013* LTM 2Q'14* Europe Latin America U.S. & Canada M
Slide 12: Financial Stability
Financial Stability EBIT % EBITDA % Gross % 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 53.0 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 Integration efforts 12.3 11.9 10.7 10.3 11.1 11.0 9.8 9.5 9.8 8.1 9.7 9.7 9.9 10.3 9.7 10.4 9.7 9.
Slide 13: Responsible Financial Policies
Responsible Financial Policies Flexible Capital Structure Leverage Total Debt/EBITDA 1 3.1 3.4 Net Debt/ EBITDA #REF! 3.3 3.0 3.12 2.4 2.3 Rapid deleveraging: target <2x 2.2 2.9 2.7 1.1 2.0 2.2 1.2 1.9 0.9 0.6 0.7 0.4 0.4 0.2 Investment grade ratings: Baa2/BBB/BBB 2005 2006 2007 2008 2009 2010 2011*
Slide 14: Responsible Financial Management
Responsible Financial Management Amortization Schedule1 Debt Structure1 (US$ in millions) By coupon Float 13% Fixed 87% 800 800 800 564 500 384 384 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ... 2044 Local Bonds RCF International Bonds New Bonds Denomination CAD 30% Total Debt1 US $4,2
Slide 15: Building a Sustainable Future
Building a Sustainable Future We understand there is no conflict in doing good and doing well +300K credits to Our wind farm in WHO and SSA family owned +130K associates in Mexico represents guidelines business 22 countries 23% of total energy Trans fats removed consumption 68K students Solid ethics
Slide 16: Looking Ahead
Looking Ahead 16
Slide 17: Time to Improve Profitability
Time to Improve Profitability Synergistic Transaction Long Term Vision- Do It Right One time costs are necessary to IT Efficient operation with value capture synergies Leadership Manufacturing creation to consumers Growth 1. Cost Distribution Strong CF generation S&A EFICIENCY Industry Transformatio
Slide 18: Time to Invest
Time to Invest Our Strong Cash Flow Generation Backs our Investment Plan Investments are clearly focused on productivity US synergies- reconfigure manufacturing print Streamline manufacturing capabilities Low- Cost LatAm- Build scale and market penetration Producer Next couple of years…CAPEX around
Slide 19: Time to Deleverage
Time to Deleverage Total Debt/ EBITDA 3.3x1 3.1x 3.1x2 3.0x 2.5x 2.3x 1.9x 2.3x 1.5x 2.2x 1.1x 1.2x 1.1x 0.9x 0.7x 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012* 2013* LTM 2Q'14* Weston West Weston East Sara Lee Canada Bread 1.Pro forma figures with Weston Foods acquisition 2. Ta
Slide 20: Why Grupo Bimbo?
5 year return in USD1 Why Grupo Bimbo? -9% +70% +130% 1 Long-term value creation +103% 2 Strongly positioned in local & International indexes 3 Focused on our core business 4 Cash flow stability 5 Successful deleveraging and solid investment grade ratings 6 Strong & continuous reinvestment 7 Respons
Slide 21: Annex: Financial Results by Region & Recent Acquisitions
Annex: Financial Results by Region & Recent Acquisitions 21
Slide 22: Grupo Bimbo - Quarterly Results
Grupo Bimbo - Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 3.5% 10.3% 8.9% 87,654 7.8% 84,730 9.9% 8.7% 5.2% 7.1% 7,661 7,506 1.6% 45,540 4,281 4,684 43,275 3,225 2,977 42,115 41,449 1Q 2Q 6M 1Q 2Q 6M Sales '13 Sales '14 EBITDA '13 EBITDA '14 EBITDA margin '13 EBITDA
Slide 23: Mexico - Quarterly Results
Mexico- Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) -0.3% 9,0 00 8,0 00 15.7% 35,515 35,402 13.7% 7,0 00 -0.2% 11.7% -0.5% 6,0 00 14.2% 12.9%4,854 4,590 5,0 00 17,740 17,709 17,775 11.7% 17,692 4,0 00 3,0 00 2,519 2,782 2,071 2,071 2,0 00 1,0 00 0 1Q 2Q 6M 1Q 2Q 6M
Slide 24: US & Canada - Quarterly Results
US & Canada- Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 4.6% 8.2% 6,0 00 7.6% 7.8% 39,963 8.0% 38,203 5,0 00 6.3% 7.0% 2,914 1.1% 4,0 00 2,528 21,548 19,986 3,0 00 18,216 18,415 4.4% 2,0 00 1,636 1,727 1,278 1,0 00 801 0 1Q 2Q 6M 1Q 2Q 6M EBITDA '13 EBITDA '14 EBIT
Slide 25: Latin America - Quarterly Results
Latin America- Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 7.9% 2.7% 3.2% 2.9% 735 3.2% 1.1% 7.7% 11,387 -1.2% 8.1% 10,556 535 335 335 154 171 181 5,208 5,629 5,758 111 5,348 135 -65 -60 -265 -465 1Q 2Q 6M 1Q 2Q 6M Sales '13 Sales '14 EBITDA '13 EBITDA '14 EBITDA ma
Slide 26: Europe - Quarterly Results
Europe - Quarterly Results Revenue Growth EBITDA (MXN$ in millions) (MXN$ in millions) 24.1% -3.3% -0.5% -1.8% 735 3,088 19.0% 29.0% 2,488 535 -6.2% -3.9% -5.0% 335 1,451 1,637 135 1,219 1,269 -65 -47 -49 -9 -56 -265 -75 -124 -465 1Q 2Q 6M 1Q 2Q 6M Sales '13 Sales '14 EBITDA '13 EBITDA '14 EBITDA ma
Slide 27: Recent Acquisition Canada Bread
Recent Acquisition Canada Bread Purchase price: CAD$1,830 million Implied transaction multiples Canada – 16 Bakeries Annual Revenues: CAD$1,439 million1 FV2/LTM Revenues1: 1.2x FV2/LTM EBITDA1: 9.3x Annual EBITDA: CAD$185 million1 (12.9% margin) Canada Bread is one of the leading manufac
Slide 28: Thank you
Thank you 28
Slide 29: Disclaimer
The information contained herein has been prepared by Grupo Bimbo, S.A.B. de C.V. (the “Company") solely for use at investors´ presentations. The information herein is only a summary and does not purport to be complete. This material has been prepared solely for informational purposes and should not