Grupo Herdez Sab De Cv · BMV:HERDEZ
Grupo Herdez Sab De Cv — Investor Presentation (September 2021)
35 slides from Grupo Herdez Sab De Cv's investor presentation, September 2021
Slide 1: Corporate Presentation September 2021
CORPORAT E PRESENTATION SEPTEMBER 2021
Slide 2: Forward-Looking Statement
FORWARD-LOOKIN G STATEMENT The information contained herein (the “Information”) has been prepared by Grupo Herdez, S.A.B. de C.V., its subsidiaries and/or affiliated companies (“Grupo Herdez”), and may contain forward- looking statements that reflect Grupo Herdez’s current expectations and views, wh
Slide 3: Investment Case and Strategy
INVESTMENT CASE STRATEGY +100 Years of Experience + 25 Brands MAINTAIN AND FORM IMPLEMENT PARTNERSHIPS THROUGH TECHNOLOGIES Market Leaders THE DEVELOPMENT OF THAT ACCELERATE INTELLIGENCE PROCESSES Diversified Portfolio 03 Solid Corporate Governance Committed with PROMOTE SUSTAINABLE MANAGEMENT SUPPO
Slide 4: Corporate Structure
Corporate Structure 04 50% 50% 50% 100% McCormick México Barilla México Herdez Del Fuerte Impulse Division Grupo Herdez consolidates 100 since 1947 since 2002 since 2008 Nutrisa 2013 percent of its Impulse division, Herdez Helados Nestlé 2015 Cielito Querido Café 2019 Del Fuerte - Mexico, Barilla Mé
Slide 5: Leading Brands
Leading Brands Our Brands in Mexico 05 Our Brands in the U.S. Distribution Agreements in Mexico
Slide 6: Consolidated
Consolidated 06 Preserves Impulse Exports
Slide 7: Consolidated Current Situation
Current Situation CONSOLIDATED Growth vs Previous Year 6,767 6,375 6,091 6,020 NET SALES 5,817 5,849 16.3% 7.6% 6.7% 4.5% 1.7% (1.2%) 07 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 EBITDA Margin 1,338 936 872 871 886 EBITDA 767 21.0% 15.4% 15.0% 14.9% 12.7% 13.1% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 FIGURES IN MILLIONS
Slide 8: Net Sales
Net Sales 15, 953 Segment Mix 25,011 24,036 22,420 1,864 2,005 20,971 2,981 20,065 1,630 1,230 1,531 3,229 2,608 20,165 81% 12% 7% 2,985 19,423 Preserves Impulse Exports 2,882 08 17,562 15,953 16,455 CAGR 5 YEARS = 6.6% Preserves 6.9% Impulse 2.8% 2017 2018 2019 2020 12M3Q21 PRESERVES IMPULSE EXPORT
Slide 9: EBIT & EBITDA
EBIT & EBITDA 3,255 2,940 Segment Mix 3,689 2,997 2,990 3,454 2,790 2,614 2,718 2,791 117% (23%) 6% Preserves Impulse Exports EBIT 13.9 14.3 CAGR 5 YEARS = 4.5% 13.3 13.5 11.8 Preserves 7.8% 2017 2018 2019 2020 12M3Q21 Impulse NA 09 PRESERVES IMPULSE EXPORTS MARGIN (%) Exports 28.3% 4,197 3,818 358
Slide 10: Our Segments
Our Segments 10 Preserves Impulse Exports
Slide 11: Preserves Current Situation
Current Situation PRESERVES Growth vs Previous Year 5,351 5,351 4,789 4,630 4,779 4,684 NET SALES 15.6% 11.6% 10.2% 8.5% 2.7% (2.2%) 11 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 EBITDA Margin 1,338 25.0% 890 878 897 855 EBITDA 18.6% 19.0% 18.8% 716 15.3% 16.0% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 C I F R A S INE N FIG
Slide 12: Preserves Innovation
Preserves Innovation In 2020 we generated: Additionally… We renovated our image 12 We promote responsible 395 Ideas consumption habits Among which, 95 prototypes were tested with consumers that resulted in 29 ideas with high potential to generate And we created Premium volume across 12 categories. v
Slide 13: Preserves Performance
Preserves Performance CAGR 5 YEARS Net sales: 6.9% EBIT: 7.8% EBITDA: 7.6% 20,165 19,423 17,562 15,953 16,455 14,431 20.8% 18.3% 18.1% 18.3% 18.9% 17.9% 19.0% 13 16.5% 16.4% 16.5% 17.1% 15.9% 2016 2017 2018 2019 2020 12M3Q21 NET SALES EBIT MARGIN EBITDA MARGIN CONSOLIDATED FIGURES IN MILLIONS OF MEX
Slide 14: Preserves Snapshot
Preserves Snapshot Preserves Sales Mix By Growth Drivers Category Household penetration & Mayonnaise Reduction of distribution 17% Pasta gaps Tomato purée 14 Vegetables Premium Versions 3% 40% 3% Mole 3% Tea Consumer Insight-Based 5% Jams Innovation Salsa 6% Tuna 10% 10% Holistic Communication Other
Slide 15: Our Segments
Our Segments 15 Preserves Impulse Exports
Slide 16: Impulse Current Situation
Current Situation IMPULSE Growth vs Previous Year 36.2% 35.1% 931 898 684 665 NET SALES 613 539 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 (14.9%) (18.4%) (23.1%) 16 (30.5%) EBITDA Margin EBITDA 0.4% 4 (1.6%) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 (11.3%) (15.3%) (14.9%) (11.7%) (14) (77) (80) (72) (102) FIGURES IN MILLI
Slide 17: Impulse Innovation
Impulse Innovation Leverage Brand Power a 17 Renewed Image E-Commerce
Slide 18: Impulse Performance
Impulse Performance CAGR 5 YEARS Net sales: 2.8% EBIT: NA EBITDA: NA 3,228 2,985 2,981 2,882 2,592 2,608 15.7% 11.1% 9.6% 5.2% 4.0% 18 2.8% 2.8% 2016 2017 2018 2019 2020 12M3Q21 (2.3%) (5.4%) (7.9%) (22.7%) (28.2%) NET SALES EBIT MARGIN EBITDA MARGIN CONSOLIDATED FIGURES IN MILLIONS OF MEXICAN PESOS
Slide 19: Impulse Snapshot
Impulse Snapshot Growth Drivers Impulse Sales Mix By Channel Portfolio Segmentation by Stores* Channel 16% DSD traditional Increase Store Traffic & Modern trade Freezer Productivity 42% 19 Convenience SG&A Control 18% Club stores Food service Strengthening of Sales Channels 19% Wholesalers CONSOLIDA
Slide 20: MegaMex
MegaMex 20
Slide 21: Megamex Snapshot
Megamex Snapshot “Reimagining Mexican Flavor” Salsas and Sauces Innovation to grow MegaMex Market Share Avocado for all. 21 Increase household penetration. Food away fro home, accelerating penetration in this segment
Slide 22: Megamex Performance
Megamex Performance CAGR 5 YEARS Net sales: 5.7% 14,671 EBIT: 4.5% 14,284 13,793 EBITDA: 4.0% 13,258 12,168 10,840 18.3% 16.3% 15.0% 14.5% 15.1% 22 13.6% 15.6% 12.7% 11.9% 12.0% 12.0% 10.6% 2016 2017 2018 2019 2020 12M3Q21 NET SALES EBIT MARGIN EBITDA MARGIN CONSOLIDATED FIGURES IN MILLIONS OF MEXIC
Slide 23: Megamex Portfolio
Megamex Portfolio We have a market share of 79% in mole, 35% in guacamole, 14% in salsa Guacamole and 1% in tortillas 11% 4% Sauce 4% 39% 6% Tortillas & Chips 23 Peppers 70% of American households buy Avocado Mole 36% Others Leveraging Green Sauce and Street Food Adoption *T H I R D -PARTY I NFORM A
Slide 24: Our Business Model
Our Business Model GRUPO HERDEZ »
Slide 25: Commercial Leadership
Commercial Leadership We are #1 or #2 in categories that represent 86% of our sales in Mexico. 60% 99% 18 times 25 Of our brands are Of Mexican households Are bought our in the buy our products. products by each Top 3 household in Mexico. of Brand Power 44% 31% Of market share for Of market share fo
Slide 26: Commercial Leadership: Sales Mix
Commercial Leadership Consolidated Sales Mix Consolidated Sales Mix By Channel By Category* Mayonnaise SuperMarket 2% 3%2% 11% Impulse 5% Wholesalers Pasta 5% Club stores Tomato purée 33% 35% 26 3% Vegetables 7% Exports 3% Mole Food service 3% Tea 4% Jams 9% Stores* Salsa 5% Convenience Ketchup DSD
Slide 27: Technologic Investment
Technologic Investment Consumers Clients Use IA to improve Forecast daily Smart promotions in the supply chain product demand retail stores Loyalty Plans Identify costumer CQC and Nutrisa Improved Costumer needs Apps Service 27 Digital Transformation System Company Technology Ecosystem Reducing WC a
Slide 28: Sustainability Model
Sustainability Model Pillars: People 5 GENDER EQUALITY 6 CLEAN WATER AND SANITATION We are focused on promoting inclusion, diversity and equal opportunities, DECENT WORK RESPONSIBLE 8 12 generating quality jobs. AND CONSUMPTION ECONOMIC AND PRODUCTION GROWTH 28 Community 2 ZERO HUNGER 13 CLIMATE ACT
Slide 29: Main Achievements and Awards
Main Achievements Awards 82% of the waste we generate gets recycled 62% of our energy consumption comes from clean sources 2.8% of our consolidated net income is invested in social programs 12 years with the “Empresa Socialmente Responsable” mark Six plants of Grupo Herdez have the “Industria Limpia
Slide 30: Debt Structure
Debt Structure Rates Mix 2,500 2,000 2,000 32% 1,000 250 250 250 250 250 250 250 250 250 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 68% 30 HERDEZ 20-2 BANK LOAN HERDEZ 13 HERDEZ 17 HERDEZ 20 Debt Rating Fixed Floated Financial Debt 9,500 Agency: S&P Ratings Fitch Ratings Average Cost 7.46% Ra
Slide 31: Appendix
APPENDIX
Slide 32: Our Legacy
Our Legacy 1914 Compañía We started exporting products 1980 2000 2002 Comercial Herdez is and changed our name to We created Barilla México and established Herdez started producing and selling pasta in the Mexican market 2006 We entered the beekeeping We signed a distribution business with the acqui
Slide 33: Board of Directors
Board of Directors HÉCTOR HERNÁNDEZ-PONS TORRES ENRIQUE CASTILLO SÁNCHEZ MEJORADA LUIS REBOLLAR CORONA Owner – Chairman Independent Independent •Has a law degree from Universidad •Bachelor´s degree in Business Administration •Bachelor´s degree in Chemical Engineering Anahuac and an MBA from the Nati
Slide 34: Corporate Governance
Corporate Governance OWNING Héctor Hernández-Pons Torres Enrique Hernández-Pons Torres Chairman Vice president Flora Hernández de Merino Board Member INDEPENDENT 34 Anasofía Sánchez Juárez Cardoze Luis Rebollar Corona Head of Environmental Practices Eduardo Ortiz Tirado Serrano Enrique Castillo Sánc
Slide 35: For More Information
WWW.GRUPOHERDEZ.COM.MX FOR MORE INFORMATION: invrel@herdez.com
Grupo Herdez — Investor Presentation (September 2021) on 6ix