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. — Q3 2023 Earnings Presentation
22 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, October 2023
Slide 1: 3Q23 Earnings Presentation
3Q23 Earnings Presentation October 2023 Confidential Information
Slide 2: Safe Harbor
Safe Harbor 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: 3Q23 Highlights
3Q23 Highlights • Initiated succession plans for its Chairman of the Board position; pending final Shareholder approval • Armando Garza Sada stepping down in 1Q24 and will remain in the Board • Álvaro Fernández Garza appointed to become Chairman and will maintain current President position • ALFA’s
Slide 5: Initiated succession plans for its Chairman of the Board position
Initiated succession plans for its Chairman of the Board position • Plan approved by Board of Directors on Sept. 26, 2023 • To be presented for final Shareholder approval in 1Q24 • Armando will step down from current Chairman position • Will remain on the Board • Álvaro appointed Chairman • Will ret
Slide 6: 3Q23 Revenues were lower year-on-year as growth in Sigma was offset by a decrease at Alpek
3Q23 Revenues were lower year-on-year as growth in Sigma was offset by a decrease at Alpek ALFA & Subs* Revenues Revenues 3Q23 vs 3Q22 Revenues 3Q23 vs 2Q23 (US $ Million) (US $ Million) (US $ Million) 4,856 4,452 4,221 4,198 4,085 3Q22 4Q22 1Q23 2Q23 3Q23 *Axtel reported as discontinued operations
Slide 7: 3Q23 EBITDA includes a negative impact of US $34 million from extraordinary items at Alpek
3Q23 EBITDA includes a negative impact of US $34 million from extraordinary items at Alpek; Comparable EBITDA down 29% year-on-year ALFA & Subs* Reported EBITDA Extraordinary Items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) EBITDA Margin 3Q23 vs 2Q22: -18% EBITDA Margin 3Q23 vs 3
Slide 8: Reported and Comparable EBITDA
Reported and Comparable EBITDA Reported EBITDA* (US $ Million) 672 610 441 467 454 346 376 360 373 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Comparable EBITDA* (US $ Million) 572 534 496 487 396 430 396 425 407 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 *Axtel reported as discontinued operation
Slide 9: Net Debt/EBITDA of 3.4x at the close of 3Q23
Net Debt/EBITDA of 3.4x at the close of 3Q23. Leverage impacted by lower EBITDA; stable Net debt ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 1,272 3.4 4,830 5,049 4,994 3.3 1,155 1,163 1,167 4,751 4,866 1,055 2.7 2.2 2.3 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 10: ALFA's Net Debt decreased US $127 million or 3% q-o-q
ALFA’s Net Debt decreased US $127 million or 3% q-o-q, driven by a significant recovery of Net Working Capital at Alpek ALFA Consolidated Change in Net Debt Change in Net Debt 2Q23 vs 3Q23 (US $ Million) (US $ Million) -3% 3Q23 EBITDA 373 Net Working Capital (NWC) 112 Capital Expenditures & Acq. (Ca
Slide 11: Succession process for Senior Counsel position
Succession process for Senior Counsel position • Succession process at Legal, Audit and Institutional Relations Department, headed by Carlos Jiménez • Carlos will leave his current Senior Management position • Distinguished 45-year career at ALFA • Valuable counsel and guidance in key corporate proc
Slide 12: Consolidation of senior-level roles as transformation process advances
Consolidation of senior-level roles as transformation process advances ALFA Chairman and Senior Executives 1Q20 (pre-transformation) 3Q23 (post-succession plans) • Armando Garza – Chairman of the Board • Álvaro Fernández – President • Álvaro Fernández – Chairman1 & President • Eduardo Escalante – CF
Slide 13: Foreign ownership was 51.7% of total ALFA shares at the close of 3Q23
Foreign ownership was 51.7% of total ALFA shares at the close of 3Q23 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 3Q23 Maximum Nafinsa Trust Threshold (75%) 2,516 2,515 2,538 2,499 2,472 52.2% 52.7% 51.9% 51.3% 51.7% 3Q22 4Q22 1Q23 2Q23 3Q23 13 Confidential Information
Slide 14: Sigma 3Q23 Highlights
Sigma 3Q23 Highlights • Record quarterly consolidated Volume and Revenues. Tenth consecutive quarter of year-on-year Revenue growth • Record quarterly EBITDA, up 68% year-on-year, boosted by double-digit growth in all regions • Sustained improvement of Net Debt to EBITDA Ratio; 2.5 times at the clos
Slide 15: Record quarterly Revenues, up 18% YoY, supported by increase in Volume
Record quarterly Revenues, up 18% YoY, supported by increase in Volume Revenues Revenues 3Q23 vs 3Q22 Revenues 3Q23 vs 2Q23 (US $ Million) (US $ Million) (US $ Million) 2,209 2,143 1,964 1,991 1,879 3Q22 4Q22 1Q23 2Q23 3Q23 15 Confidential Information
Slide 16: 3Q23 EBITDA, up 68% year-on-year, boosted by high growth in all regions
3Q23 EBITDA, up 68% year-on-year, boosted by high growth in all regions EBITDA EBITDA 3Q23 vs 3Q22 EBITDA 3Q23 vs 2Q23 (US $ Million) (US $ Million) (US $ Million) 255 217 192 167 151 3Q22 4Q22 1Q23 2Q23 3Q23 16 Confidential Information
Slide 17: Consistent improvement in EBITDA Margin since 3Q22
Consistent improvement in EBITDA Margin since 3Q22 EBITDA Margin (%) EBITDA Margin By Region (%) 20.0 17.4 18.0 16.0 11.2 11.4 11.5 14.0 10.7 10.2 10.1 9.4 9.2 9.6 12.0 11.0 8.1 8.5 10.0 8.5 8.0 6.0 4.0 2.2 2.0 0.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 18: Net leverage ratio of 2.5 times, a significant decrease quarter-on-quarter
Net leverage ratio of 2.5 times, a significant decrease quarter-on-quarter Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,045 2,012 2.8 1,782 1,840 2.7 2.7 1,708 2.5 2.5 699 683 628 610 552 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 19: 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 $/lb €/kg 2021 2021 2022 2022 2023 4.0 2023 1.2 3.5 1.0 3.0 0.8 2.5 2.0 0.6 1.5 0.4 1.0 0.2 0.5 0.0 0.0 Feb. Apr. Jun. Aug. Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. 19 Confidential Information
Slide 20: 3Q23 Recent Developments
3Q23 Recent Developments Key Highlights Optimization of Sigma´s footprint in Europe • Divested all operations in line with comprehensive plan to improve results by focusing in core European markets ESG –NextGenerationEU granted funds to Sigma • EUR €3 million granted to Sigma’s operations in Portuga
Slide 21: Alpek's 3Q23 results impacted by persistent industry headwinds
Alpek’s 3Q23 results impacted by persistent industry headwinds 3Q23 Highlights Paraxylene (North America vs Asia) North America Asia • 3Q23 Revenues and Comparable EBITDA down 34% and 62% year- (US$/Ton) 1,837 on-year, respectively 1,505 1,462 • Asian reference PET margins decreased 18% q-o-q, and r
Slide 22: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx Confidential Information