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. — Q2 2024 Earnings Presentation
76 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, Aug 1, 2024
Slide 1: Corporate Presentation 2Q24
Corporate Presentation 2Q24
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 Second 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: Two core businesses with leading industry positions
Two core 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 (2Q24) (After potential spin-off) ALFA ALFA ALFA Shareholders Shareholders Shareholders ALFA ALFA 100% 82.09% 100% 82.09% Sigma Alpek Sigma Alpek 13
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) 2Q24 (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 15 *Axtel reported as discontinued operations in 2022 and 2023
Slide 16: Outstanding Sigma EBITDA growth supportive for final phase; debt reduction is key
Outstanding Sigma EBITDA growth is supportive for final phase of transformation; debt reduction is key Sigma EBITDA Consolidated Net Debt excluding Alpek1 (US $ Million) (US $ Billion) 3.287 3.251 3.115 3.191 3.190 1,000 893 Indicative target ALFA2 US $2.5 B 652 Sigma 2022 2023 2024G 2Q23 3Q23 4Q23
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 69% Independent Directors Represents management team at the close of 2023 17
Slide 18: Experienced Management Team
Experienced Management Team Álvaro Fernández Rodrigo Fernández Jorge Young Eduardo Escalante Chairman & CEO Sigma CEO Alpek CEO CFO and Senior VP of Tenure 32 years Tenure 25 years Tenure 33 years Human Capital Tenure 36 years 18
Slide 19: Board of Directors
Board of Directors • JUAN CARLOS CALDERÓN ROJAS (2) • DAVID MARTÍNEZ GUZMÁN (1C) Global Director of Employee Experience and Engagement of Sigma Founder and Managing Director of Fintech Advisory Inc. • ENRIQUE CASTILLO SÁNCHEZ MEJORADA (1A,B) • JOSÉ ANTONIO MEADE KURIBREÑA (1C) CEO of Tejocotes 1
Slide 20: ALFA sustainability model with four fundamental pillars
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 ENVIRONMENT SOCIAL GOVERNANCE TOTAL CLIMATE CHANGE WATER 2020 2021 2022 2023 INDUSTRY 2020 2021 2022 2023 2020 2021 2022 2023 PERCENTILE PERCENTILE PERCENTILE PERCENTILE AVERA
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 •28% and 15% reduction of Scope 1 and 2 emissions vs their SBTi target and 2022, by 2030 (2019 baseline). respectively. •Developed strategic plan to achieve carbon neutrality by 2050, th
Slide 24: Financial Highlights
Financial Highlights Revenues EBITDA Capex & Acquisitions Capex (US $ Million) (US $ Million) (US $ Million) 18,085 2,082 1,111 16,388 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 24
Slide 25: Financial Highlights: Net Debt/EBITDA and 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. 26
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% 27
Slide 28: Index
Index ALFA Overview ALFA Second Quarter Results ALFA 2024 Guidance Appendix Additional Information 31
Slide 29: 2Q24 Highlights - ALFA
2Q24 Highlights - ALFA Better-than-expected performance in 2Q24 and 1H24 driven mainly by Sigma - Sigma: raised 2024 EBITDA Guidance to historic milestone of US $1.0 billion - Alpek: YTD Comparable EBITDA of US $312 million, on track to reach full-year guidance - ALFA: raised EBITDA Guidance to inco
Slide 30: Revenue growth driven by Sigma
Revenue growth driven by Sigma year-on-year, and quarter-on-quarter ALFA & Subs* Revenues Revenues 2Q24 vs 2Q23 Revenues 2Q24 vs 1Q24 (US $ Million) (US $ Million) (US $ Million) 4,221 4,198 4,106 4,197 3,885 2Q23 3Q23 4Q23 1Q24 2Q24 *Axtel reported as discontinued operations in 2Q23 No figures pres
Slide 31: Higher Reported and Comparable EBITDA in 2Q24
Higher Reported and Comparable EBITDA in 2Q24 ALFA & Subs* EBITDA Extraordinary items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 2Q24 vs 2Q23: 23% 2Q24 vs 1Q24: 5% 2Q24 vs 2Q23: 2% EBITDA Margin EBITDA Margin 2Q24 vs 1Q24: 5% 445 425 2Q23 3Q23 4Q23 1Q24 2Q24 360 373 425 433 407 3
Slide 32: Net Debt/EBITDA of 3.3x at the close of 2Q24
Net Debt/EBITDA of 3.3x at the close of 2Q24 ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 3.5 3.5 3.4 3.3 1,529 4,994 5,094 4,977 3.3 4,866 4,919 1,163 1,167 1,188 1,203 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 *
Slide 33: ALFA's Net Debt decreased US $117 million in 2Q24
ALFA’s Net Debt decreased US $117 million in 2Q24 ALFA Consolidated Change in Net Debt Change in Net Debt 1Q24 vs 2Q24 (US $ Million) (US $ Million) -2% 2Q24 EBITDA 445 Net Working Capital (NWC) 30 -3% -5% Capital Expenditures & Acq. (Capex) (67) Net Financial Expenses (123) Taxes (152) Dividends (2
Slide 34: Foreign ownership was 51.3% of total ALFA shares
Foreign ownership was 51.3% of total ALFA shares at the close of 2Q24 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 2Q24 Maximum Nafinsa Trust Threshold (75%) 2,472 2,490 2,470 2,486 2,470 51.3% 51.7% 51.3% 51.6% 51.3% 2Q23 3Q23 4Q23 1Q24 2Q24 34
Slide 35: 2Q24 Highlights - Sigma
2Q24 Highlights - Sigma Outstanding consolidated results in 2Q24 - Record quarterly Volume - Year-on-year Revenue growth for the thirteenth consecutive quarter - All-time high quarterly EBITDA of US $279 million supported by solid growth in all regions - 2024 EBITDA guidance revised up 9% to histori
Slide 36: Thirteenth consecutive quarter of year-on-year Revenue growth
Thirteenth consecutive quarter of year-on-year Revenue growth supported by record quarterly Volume Revenues Revenues 2Q24 vs 2Q23 Revenues 2Q24 vs 1Q24 (US $ Million) (US $ Million) (US $ Million) 2,209 2,246 2,143 2,161 2,170 2Q23 3Q23 4Q23 1Q24 2Q24 36
Slide 37: All-time high quarterly consolidated EBITDA of US $279 million
All-time high quarterly consolidated EBITDA of US $279 million, supported by solid growth in all regions EBITDA EBITDA 2Q24 vs 2Q23 EBITDA 2Q24 vs 1Q24 (US $ Million) (US $ Million) (US $ Million) 279 264 255 229 217 2Q23 3Q23 4Q23 1Q24 2Q24 37
Slide 38: Higher Consolidated EBITDA Margin for 2Q24
Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 2Q24 EBITDA Margin (%) EBITDA Margin By Region (%) 17.1 16.3 15.5 14.7 13.0 12.4 12.4 11.6 12.2 10.5 10.5 11.5 10.1 10.6 9.5 9.6 8.9 8.7 9.2 8.1 8.5 3.3 2.1 2.5 1.6 2022 2023 1Q24 2Q24 2Q24 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 39: Sustained improvement of Net Debt to EBITDA Ratio
Sustained improvement of Net Debt to EBITDA Ratio; 2.0x represents lowest level in nearly 11 years Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,084 2,019 2,012 2,045 2,025 2.8 1,134 2.5 2.3 2.2 2.0 724 610 626 552 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q2
Slide 40: Lower Net Debt supported by EBITDA growth
Lower Net Debt supported by EBITDA growth; taxes include the 2023 end-of-period payment Change in Net Debt 2Q24 vs 1Q24 (US $ Million) Net Debt decreased by US $65 million when compared to 1Q24 “Others” include a positive foreign exchange conversion effect resulting primarily from the depreciation o
Slide 41: Sigma 2024 Guidance revised up
Sigma 2024 Guidance revised up Sigma Revenues Sigma EBITDA (US $ Million) (US $ Million) 8,650 8,850 1,000 920 Previous New Previous New Revised exchange rate for 2H24 to $18.5 MXN/USD vs. previous $18.7 MXN/USD 2024 Capex Guidance remains unchanged at US $250 million
Slide 42: 2Q24 Recent developments - Sigma
2Q24 Recent developments - Sigma Sigma Europe CEO Succession • Appointed Juan Ignacio Amat as CEO of Sigma Europe (June 1st) • 20+ years in large consumer goods companies across Europe • Successfully implemented transformational plans in various roles Mexican Local Bond Issuance (May 2024) • Success
Slide 43: Alpek's 2Q24 EBITDA supported by resilient volume
Alpek’s 2Q24 EBITDA supported by resilient volume 2Q24 Highlights Paraxylene (North America vs Asia) North America (US$/Ton) Asia • Polyester segment volume was up 2% y-o-y driven by resilient 1,837 regional demand 1,505 1,462 1,389 1,345 1,352 • Accumulated Comparable EBITDA of US $312 million is o
Slide 44: Index
Index ALFA Overview ALFA Second Quarter Results ALFA 2024 Guidance Appendix Additional Information 46
Slide 45: ALFA raises 2024 Guidance to reflect upward revision from Sigma
ALFA raises 2024 Guidance to reflect upward revision from Sigma (US $ Millions) New Previous Ch. % (US $ Millions) New Previous Ch. % ALFA 16,775 16,575 1 ALFA 1,590 1,510 5 Revenues Sigma 8,850 8,650 2 EBITDA Sigma 1,000 920 9 Alpek 7,800 7,800 - Alpek 600 600 - Revised exchange rate for 2H24 to $1
Slide 46: ALFA Original Guidance 2024 - Key Assumptions
ALFA Original 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 GD
Slide 47: ALFA Original Guidance 2024 - Selected Consolidated Items
ALFA Original 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 *Figures revised in 2Q24. See
Slide 48: ALFA Original Guidance 2024 – Breakdown by Subsidiary
ALFA Original 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
Slide 49: Index
Index ALFA Overview ALFA Second Quarter Results ALFA 2024 Guidance Appendix Additional Information 46
Slide 50: ALFA's heritage goes back to 1890
ALFA's heritage goes back to 1890 2004 Sigma expands 2008 2021 into cheese Sigma invests Alpek acquires 1996 category in Peru 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
Slide 51: 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 52: ALFA's materiality matrix
ALFA’s materiality matrix CORPORATE Immediate attention High priority 100% 1 ESG Strategy & risk management 1 3 Transparency, ESG Strategy & Corporate governance with a reliability & 90% 3 risk management investor relations 6 2 RELEVANCE FOR STAKEHOLDERS sustainable approach 80% 4 9 2 Transparency,
Slide 53: 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 53
Slide 54: 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. 54
Slide 55: 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% 55
Slide 56: ALFA gained flexibility for future debt payments with 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 2Q24: US $1,272 Million Bank Loan 17% Senior Notes Senior Notes due 2024 due 2044 4
Slide 57: Outstanding bonds - ALFA
Value 105 110 100 80 85 90 95 6/30/2023 7/14/2023 7/28/2023 8/11/2023 8/25/2023 9/8/2023 9/22/2023 10/6/2023 10/20/2023 11/3/2023 11/17/2023 12/1/2023 12/15/2023 12/29/2023 Outstanding bonds - ALFA 1/12/2024 1/26/2024 2/9/2024 2/23/2024 3/8/2024 3/22/2024 4/5/2024 4/19/2024 5/3/2024 5/17/2024 5/31/2
Slide 58: Outstanding bonds – ALFA Subsidiaries
Value 100 105 70 75 80 85 90 95 6/30/2023 7/14/2023 7/28/2023 8/11/2023 8/25/2023 9/8/2023 9/22/2023 10/6/2023 10/20/2023 11/3/2023 11/17/2023 12/1/2023 12/15/2023 12/29/2023 1/12/2024 Alpek 1/26/2024 2/9/2024 2/23/2024 3/8/2024 3/22/2024 4/5/2024 4/19/2024 5/3/2024 5/17/2024 5/31/2024 6/14/2024 6/2
Slide 59: ALFA & Subsidiaries Outstanding Bonds
ALFA & Subsidiaries Outstanding Bonds Amount YTM Ratings Company Rate Maturity (M US$) (Jul/31/2024) S&P Fitch Moody’s BBB- ; SO ALFA 500 6.875% 6.650% March 25, 2044 BBB- ; SO Baa3 ; SO (issue level BB+) Alpek 500 4.250% 6.083% September 18, 2029 BBB- ; SO BBB- ; SO Baa3 ; SO Alpek 600 3.250% 6.199
Slide 60: 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 2021 2022 2023 2024 2020 2021 2022 2023 2024 Market Cap.* (US$ Billion) 3,412
Slide 61: Brent Crude Oil
Brent Crude Oil US $ / Barrell 140 Guidance 2024 120 99 85 $/bbl $/bbl 100 71 81 $/bbl $/bbl 80 60 40 43 $/bbl 20 0 2020 2021 2022 2023 YTD 2024 61
Slide 62: Paraxylene prices
Paraxylene prices Px Contract Price (US $ / Ton) 62
Slide 63: Integrated PET Margin (Asia)
Integrated PET Margin (Asia) PET Integrated Margins | Px / MEG to PET (US $ / Ton) 63
Slide 64: North America EPS reference margins
North America EPS reference margins North America EPS margin | EPS to Styrene (US cpp) 64
Slide 65: 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 65
Slide 66: Slide 66
Slide 67: Sigma at a glance
EQ alfa sioma ata stance Europe 26% LTM 2Q24 US $8.8B EBITDA LTM 2Q24 US $1,026M 68
Slide 68: Diversified Portfolio with Leading Brands in Different Categories
Diversified Portfolio with Leading Brands in Different Categories and Market Segments Extensive portfolio allowing to capture growth in the demand of the different market segments 14 Brands with Net Sales over US $100M 13% of our revenues come from licensed brands1 1. Yoplait® Third party license Yo
Slide 69: 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 70: 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 71: 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 5% 2% Materials 5% Dry Ingredients 22% 9% Direct Labor Selling Trade Products Administrative 8% 56% Packaging General Energy (Fuel, electr
Slide 72: Debt profile
Debt profile Pending 2027 refinancing**: Debt Maturity Average Life: 5.7 years (US $Million) Average Rate: ~8.2% (Includes CCS1) ● Executed additional Local Notes (Cebures) & a new long-term bilateral facility ‒ Completed Full Redemption of US $1 B 2026 Notes ‒ ~ US $220 M pending to be applied towa
Slide 73: 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 2021 €/kg 2021 2022 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. Source: USA – USDA PM Ham, 23-27# Trmd Se
Slide 74: Poultry raw materials in U.S.
Poultry raw materials in U.S. Chicken (MSC) Turkey (MST) US $/lb 2021 US $/lb 2021 0.7 2022 0.9 2022 0.8 0.6 2023 2023 0.7 0.5 0.6 2024 2024 0.4 0.5 0.3 0.4 0.3 0.2 0.2 0.1 0.1 0.0 0 J F Feb. M A Apr. M JJun. J AAug. S O Oct. N Dic.D J Feb. F M AApr.M J Jun. J A Aug. S O Oct. N D Dic. Turkey Breast
Slide 75: 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 76: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx