Genomma Lab Internacional SAB de CV Class B · BMV:LAB/B
Genomma Lab Internacional SAB de CV Class B — Investor Presentation (June 2016)
22 slides from Genomma Lab Internacional SAB de CV Class B's investor presentation, June 2016
Slide 1: Genomma Lab Internacional
GENOMMA LAB INTERNACIONAL June, 2016
Slide 2: Company Overview
Genomma Lab‘ Internacional
Slide 3: The Evolution of Genomma Lab
THE EVOLUTION OF GENOMMA LAB Continue to implement Turnaround process 2016 Sale of majority stake in Grupo Marzam 2015 Beginning of Entrance to IPC Sustainability 2014 Turnaround process Index and MSCI Index 2013 2012 Appointment of Máximo Business Realignment Juda as CEO and 2011 Antonio Zamora as
Slide 4: Successful Business Model
SUCCESSFUL BUSINESS MODEL Our business model is focused on adapting quickly to marketing dynamics. Best formulation and Performance presentation Analysis (Product Selection) MANUFACTURING DEVELOPMENT INNOVATION & MARKETING & DISTRIBUTION OUTSOURCED POS COMMERCIAL ASSURANCE BRANDING QUALITY SALES STR
Slide 5: Organic Growth Through Innovation and Development
ORGANIC GROWTH THROUGH INNOVATION AND DEVELOPMENT • Our product launch strategy is based on Innovation and Development of new brands and products, as well as on the launch of Line Extensions to strengthen our existing brands. INTERNALLY LINE EXTENSIONS DEVELOPED BRANDS Nasal Hygiene For adults For c
Slide 6: Marketing and Branding Results Oriented Metrics
MARKETING AND BRANDING RESULTS ORIENTED METRICS Demand for our products is mainly generated through advertising. We have a directed advertising strategy, based on metric analyses of our clients and the market. We monitor such information weekly, which allows us to have a quick response to changes in
Slide 7: Commercial Strategy - Update
COMMERCIAL STRATEGY - UPDATE POS EXECUTION 1 71% STORES in Mexico executed in line with IN-STORE VISION CHANNEL AND CUSTOMER EXPANSION 2 +58 New Customers / +27,600 Stores (Mexico and International) GO TO MARKET 3 (-)3 to 5 pts trade terms improvement and PAY FOR PERFORMANCE (Mexico and Internationa
Slide 8: Core Competences
CORE COMPETENCES BEFORE AFTER Demand Generation Demand Generation Win Online Talent Talent POS Execution Flawless POS Execution Mexico: Sell-in Genomma Lab: International: Sell-out, Sell-out, EBITDA, FCF EBITDA, FCF Brand Sustainability Growth Core Brands 8
Slide 9: Diversified Distribution Platform
DIVERSIFIED DISTRIBUTION PLATFORM Genomma’s balanced and broad distribution platform is unique. Through a combination of mass merchandisers, pharmacy chains, and wholesalers, Genomma’s products reach over 50,000 points of sale in Mexico and more than 150,000 in the international operations. SALES DI
Slide 10: Turnaround Process
Genomma Lab‘ Internacional TURNAROUND PROCESS
Slide 11: Turnaround Process
TURNAROUND PROCESS • Shareholder value creation • Sustainable business model and stronger brands STRATEGIC • International expansion IMPERATIVES • Less dependence on Mexico TURNAROUND PROCESS • Brands: Focus on core • Strengthening of brands corporate policies • Mexico: Destocking of STRONGER PILLAR
Slide 12: Turnaround Process – Pillars of New Strategy: Focus on Core Brands
TURNAROUND PROCESS – PILLARS OF NEW STRATEGY 1 FOCUS ON CORE BRANDS, REINFORCE BRAND EQUITY AND SUSTAINABILITY Genomma's core asset is its portfolio of market leading brands. As of March 2016, the Company has a total of 95 brands. The following table shows the Company’s top 25 brands for the last tw
Slide 13: Pillars of New Strategy: Mexico Destocking of Channel Inventory
TURNAROUND PROCESS – PILLARS OF NEW STRATEGY 2 MEXICO DESTOCKING OF CHANNEL INVENTORY SELL-IN SELL-OUT 40% 12% 30% 10% 20% 8% 10% 6% 12% 1Q15 2Q15 3Q15 4Q15 0% 2% 4% -10% 2% -26% 2% 3% 1Q16* -35% -20% 0% -30% -59% -2% 2Q15 3Q15 4Q15 -40% -4% -8% -50% -6% -60% -8% INVENTORIES Objective 2Q15 2Q15 3Q15
Slide 14: Pillars of New Strategy: Geographical Presence – International
TURNAROUND PROCESS – PILLARS OF NEW STRATEGY GEOGRAPHICAL PRESENCE – INTERNATIONAL 3 GROWTH & MARGIN U.S.A. 13% MEXICO 35% LATAM 52% TOP Mexico INTERNATIONAL 45% COUNTRIES 1. Argentina 55% 2. U.S.A. 3. Brazil 4. Chile Pharma PC 5. Colombia Pharma – Over the Counter (OTC) and Generics 6. Peru PC – Pe
Slide 15: Pillars of New Strategy: Geographical Presence Diversification
TURNAROUND PROCESS – PILLARS OF NEW STRATEGY 3 GEOGRAPHICAL PRESENCE: DIVERSIFICATION • Presence in 20 countries U.S.A. • More than 200,000 POS BRANDS: 21 • A population over 600 million POS: 41,000 • As of March 2016 LTM, 65% of MEXICO our Total Sales came from our BRANDS: 72 International Operatio
Slide 16: Pillars of New Strategy: Efficiency SGM&A Leverage
TURNAROUND PROCESS – PILLARS OF NEW STRATEGY 4 EFFICIENCY: SGM&A LEVERAGE • To increase efficiency and improve margins, we have made a significant reduction in headcount in the past months. • Inventories in our warehouse have also been reduced significantly to improve cash conversion cycle and free
Slide 17: Pillars of New Strategy: Efficiency SG&A Leverage
TURNAROUND PROCESS – PILLARS OF NEW STRATEGY 4 EFFICIENCY: SG&A LEVERAGE • We have made significant efforts to achieve SGM&A efficiencies in order to improve margins, which have started to show results in our operations. 5 NEW MANAGEMENT TEAM TO EXECUTE THE NEW STRATEGY AND DRIVE VALUE CREATION IN T
Slide 18: Financial Performance
Genomma Lab‘ Internacional FINANCIAL PERFORMANCE
Slide 19: Net Sales
NET SALES (MILLION PESOS) CAGR 23% $11,541 $11,361 $11,042 $9,800 $8,056 $6,264 $4,425 $2,629 $2,769 $2,851 2008 2009 2010 2011 2012 2013 2014 2015 1Q15 1Q16 1Q16 1Q15 Pharma* PC Total 1Q16 Pharma* PC Total 1Q15 %Var Mexico 580.1 417.6 997.7 491.8 490.2 982.1 1.6% International 695.9 1,157.0 1,852.9
Slide 20: EBITDA
EBITDA (MILLION PESOS) 6,000 100.0% CAGR 90.0% 5,000 15% 80.0% 70.0% 4,000 26.4% 60.0% 3,000 26.1% 3,001 22.0% 50.0% 25.8% 2,558 2,543 27.0% 2,083 16.3% 40.0% 25.8% 2,000 26.3% 1,144 1,694 1,798 30.0% 19.7% 16.2% 20.0% 1,000 691 449 563 10.0% - 0.0% 1Q15* 1Q16* 2015* 2013 2009 2010 2012 2014 2008 20
Slide 21: Net Income
NET INCOME (MILLION PESOS) 15.9% 16.4% 13.1% 17.5% 1,811 70.0% 1,700 17.5% 1,606 1,507 1,406 50.0% 1,200 19.5% 17.2% 1,093 15.0% 513 760 30.0% 700 5.3% 426 -9.2% 146 10.0% 200 -1,013 -10.0% -300 -30.0% -800 1Q15 1Q16 2008 2009 2010 2012 2013 2014 2015 2011 -1,300 -50.0% -1,800 -70.0% NET INCOME AS %
Slide 22: Investor Relations Contact
INVESTOR RELATIONS CONTACT: ANA MARÍA YBARRA – Investor Relations Officer inversion@genommalab.com Tel. +52 (55) 5081-0000 ext. 4016 BARBARA CANO – MBS Value Partners barbara.cano@mbsvalue.com Tel. +1 (646) 452-2334 www.genommalab.com/inversionistas
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