Betterware De Mexico, S.a.p.i. De C.v. · NYSE:BWMX
Betterware De Mexico, S.a.p.i. De C.v — Betterware de Mexico — FY2021 Earnings Presentation
26 slides from Betterware De Mexico, S.a.p.i. De C.v's earnings presentation, February 2022
Slide 1: 4Q2021 and FY2021 Earnings Release
4Q2021 and FY2021 Earnings Release February 2022 Be Better 2025
Slide 2: Forward-looking statements
The information presented here may include statements regarding future events and / or projected The information presented herefinancial results. may include The results statements obtained regarding may future differ events andfrom / or those projected projected financialinresults. this presentatio
Slide 3: Revolutionizing How Consumers Shop For Household Products
Revolutionizing How Consumers Shop For Household Products 3
Slide 4: Conference Call Agenda
Conference Call Agenda ➢ Long-term consistent growth ➢ 2020 • Seizing abnormal growth during the pandemic ➢ 2021 • The New Normal • External Headwinds ➢ 2022 • Strengthened network of associates and distributors • Commercial and Operational initiatives • Guidance ➢ 4Q 2021 and FY 2021 Financial Resu
Slide 5: Long-term Consistent Growth
Long-term Consistent Growth Over 20 years of consistent growth: CAGR surpassing 20% in Net Revenue, EBITDA and Sales Network. 2014 - 2019 accelerated growth derived from three business pillars: 1. Product Innovation 2. Technology 3. Business Intelligence Proving the strength of the model and setting
Slide 6: 2020: Seizing abnormal growth during the pandemic
2020 Seizing abnormal growth during the pandemic 6
Slide 7: 2020: Seizing abnormal growth during the Pandemic
2020: Seizing abnormal growth during the Pandemic In 2020 our business benefited from several tailwinds: • Increased demand for our products: Total estimated market size for our products grew from Ps. 99 billion per year in 2019 to Ps. 156 billion per year in 2020 • Expanded need of additional sourc
Slide 8: 2021: The New Normal and External Headwinds
2021 The New Normal and External Headwinds 8
Slide 9: 2021: The New Normal
2021: The New Normal Net Revenue YoY Growth 205% 81% 4% (11%) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Multiple indicators Growth continued but After the summer, it Softer consumption, prompted that growth started to slow down was clear that strong coupled with supply trends for 2020 would demand would not l
Slide 10: 2021: The New Normal
2021: The New Normal During 2H 2021 people returned to normality and rejoined the Economically Active Population massively Unemployment (Not Seasonally Adjusted) Economically Active Population 6% 60 57.3 58.3 5.4% 5% 55 4.0% 4% 3.6% 50 47.0 3% 45 2% 40 12/18 04/19 08/19 12/19 04/20 08/20 12/20 04/21
Slide 11: 2021: External Headwinds
2021: External Headwinds During 2H 2021, our business was negatively impacted by external shocks, namely: • Consumption softened compared to 1H2021 • Worldwide supply chain disruptions continued during Q4 21, affecting our business as follows: • Consumers re-directed their spending 1. Shortage of se
Slide 12: 2022: Network, initiatives and guidance
2022 Strengthened network of associates and distributors Commercial and Operational initiatives Guidance 12
Slide 13: 2022: Strengthened network of associates and distributors
2022: Stregthened network of associates and distributors Consolidation of network of associates and distributors: we have managed to keep a larger active base: • When Economically Active Population (EAP) declined 18%, our sales force accelerated its growth • The EAP recovered and surpassed its pre-p
Slide 14: 2022: Strengthened network of associates and distributors
2022: Stregthened network of associates and distributors Our strengthened network of associates and distributors shows: • Relevant growth in network of people with longer tenure Associates: Tenure >1 year (Thousands) Distributors: Tenure >1 year (Thousands) 446 32 224 16 98 154 7 11 68 5 2017 2018 2
Slide 15: 2022: Strengthened network of associates and distributors
2022: Stregthened network of associates and distributors Our strengthened network of associates and distributors shows: • Higher-than-average weekly activity rates Associates: Average Weekly Activity Distributors: Average Weekly Activity 34.7% 81.8% 34.3% 80.6% 80.1% 78.5% 32.9% 31.7% 73.8% 31.1% 20
Slide 16: 2022: Commercial and Operational Initiatives
2022: Commercial and Operational Initiatives Refocused strategy in response to external headwinds, currently under way: Commercial Actions Catalogue Product Incentives Pricing Actions Price Mix Hybrid Model Frequency Innovation Program Increasing share of Increased focus on Increasing the Increased
Slide 17: 2022: Guidance
2022: Guidance We remain confident in our ability to navigate well during the year ahead, given our strategic advantages and initiatives in place that position our Company to diversify our supply chain, broaden our categories and product offering, as well as retain and grow distributors and associat
Slide 18: 4Q 2021 and FY 2021 Financial Results
➢ 4Q 2021 and FY 2021 Financial Results 18
Slide 19: 2021: Financial Results - Fourth Quarter 2021
2021: Financial Results Fourth Quarter 2021 Net Revenue Gross Margin EBITDA Net Income +176% (353 bps) +85% +131% (11%) (43%) +322% (220 bps) $2,441 $744 $2,182 $214 57.2% 55.9% 53.7% $421 $93 $791 $228 $51 Q4 19 Q4 20* Q4 21 Q4 19 Q4 20 Q4 21 Q4 19 Q4 20* Q4 21 Q4 19 Q4 20* Q4 21 During 4Q our busi
Slide 20: 2021: Financial Results - Fiscal Year 2021
2021: Financial Results Fiscal Year 2021 Net Revenue Gross Margin EBITDA Net Income +225% +229% +287% (230 bps) +41% +33% +440% +151 bps 2,799 $1,827 $10,040 58.5% 54.7% 56.2% $2,101 $7,100 $3,085 $851 $472 $338 2019 2020* 2021 2019 2020 2021 2019 2020* 2021 2019 2020* 2021 After a full year of cons
Slide 21: 2021: Financial Results - Strong Balance Sheet
2021: Financial Results Strong Balance Sheet • Conservative Net Debt to EBITDA ratio • Low Total Debt to Total Assets and • Negative cash conversion cycle stemming from differentiated Business Model Net Debt to EBITDA Total Debt to Total Assets Cash Conversion Cylce (days) 0.5x 0.4x 5 1.1x 0.4x 0.8x
Slide 22: JAFRA Acquisition
JAFRA Acquisition 22
Slide 23: JAFRA Transformational Deal
JAFRA Transformational Deal • Attractive acquisition price (US$255mm) and entry On January 18, 2022, Betterware multiple (5.5x 2022E EBITDA pre-synergies) announced the acquisition of JAFRA´s operations in Mexico and • Accretive since the first year, before identified the United States: synergies it
Slide 24: JAFRA – Transformational Deal
JAFRA – Transformational Deal Clear strategy to be executed: Commercial: Replicating Betterware´s Three Strategic Pillars Product Innovation Technology Business Intelligence • Leverage on Betterware´s digital • Strengthening JAFRA´s Skin Care platforms • Leverage on our big data category capabilitie
Slide 25: Q&A Investor Relations
Q&A INVESTOR RELATIONS ir@better.com.mx +52 (33) 3836-0500 investors.betterware.com.mx 25
Slide 26: Betterware
———~ Betterware: