Genomma Lab Internacional SAB de CV Class B · BMV:LAB/B
Genomma Lab Internacional SAB de CV Class B — Investor Presentation (January 2023)
62 slides from Genomma Lab Internacional SAB de CV Class B's investor presentation, January 2023
Slide 1: Genomma Lab Internacional
Genomma Lab.°® Internacional
Slide 2: Investor Relations Corporate Presentation
INVESTOR RELATIONS CORPORATE PRESENTATION
Slide 3: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation may contain certain forward-looking statements and information relating to the Company that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements
Slide 4: Content
1 Who We Are: Our Footprint 2 4-year Profit & Growth Strategy Content 3 Unleashing Shareholder Value 4 Financial Review January 2023 4
Slide 5: New High-Growth Strategy
* New High-Growth Strategy • “The ideal Partner for • Leading Latin America and the Pharmaceutical U.S. Hispanic Market” and Personal • Europe : United Pharmaceuticals Care Company • U.S. : Edgewell • Japan : Rohto • Israel : Oramed • Assessing selected high-ROIC • Consistent base growth potential p
Slide 6: Footprint: Latin America
Footprint : Latin America CHALLENGES OPPORTUNITIES • General economy • Population + 663 million (2x USA) stagnation • GDP per capita 0.2 x USA • Political inestability • Total GDP = 0.4x USA • Employment & MAPA • Median Age : 31 years Livelihood crisis • Inequality translates into ENMEDIO different
Slide 7: Genomma's Solid Base Business
Genomma’s Solid Base Business Double Digit Mid-to-High Single Growth Digit Growth 50% of all Categories rowth 5 out of 14 categories despite the COVID-19 Pandemic and other macro headwinds low-to-mid single digit Cough and Cold category impacted by Pandemia
Slide 8: Genomma Lab Internacional: Base Business
Genomma Lab Internacional : Base Business • Genomma develops, manufactures and markets a broad range of premium branded products, many of which are leaders in their categories SEGMENT MEGA-BRANDS GEOGRAPHY US PC OTC 8% Mexico 41% 59% LatAm 50% 42% January 2023 8
Slide 9: Over The Counter Products: 59.0% of Total Sales
Over The Counter Products (OTC): 59.0% Of Total Sales* Pain Relief Cough & Cold Gastro & Anti- Hemorrhoids Anti-mycotics & Isotonic beverages Anti-Flu Sexual Health *As of September, 2021 January 2023 9
Slide 10: Personal Care Products: 41.0% of Total Sales
Personal Care Products (PC): 41.0% Of Total Sales* Specialized Hair Care Skin Care Beauty Care *As of September, 2021 Shampoo Anti-Acne & Cosmetics January 2023 10
Slide 11: New Categories
New Categories: Antibacterial Male Care & Grooming Infant Nutrition J a n u a r y 2 0 2 3 11
Slide 12: Proven International Business Model
Proven International Business Model US dollar: Guatemala 9.7% Honduras El Salvador Other currencies: USA Belize Costa Rica INTERNATIONAL 23.2 48.6% Panama Nicaragua 1. Brazilian Real MEXICO 58.2 2. 3. Colombian Peso Chilean Peso CARICAM 4. Peruvian Sol 5. Argentine Peso Colombia MEXICO 6. 7. Uruguay
Slide 13: Relied On Experienced Management Team
Relied On Experienced Management Team IGO HERRERA JORGE BRAKE ANTONIO ZAMORA MARCO SPARVIERI Chairman CEO CFO COO Experience: Prior Experience: Prior Experience: Prior Experience: ounding Partner • Senior Vice President • CCO Cydsa • EVP Sales P&G + years of at Laureate • CFO Grupo LALA • 20+ years
Slide 14: Seasoned Board of Directors
Seasoned Board of Directors Majority of Board Members are Independent RODRIGO HERRERA Chairman Ricardo Gutiérrez Carlos Vara Francisco Forastieri Javier Vale CEO CP Latina CEO Vace Partners Senior Partner Law CEO Havas Vale Industrials Investment Banking Former Secretary of Media Expert Oil & Gas St
Slide 15: Genomma Lab Internacional in Summary
Genomma Lab Internacional in Summary Power Mexico 42% Brands 18 of net sales “Strong Points of Sale performance LatAm 48% 400,000+ across all of net sales regions” 2,000+ USA 10% of employees net sales Asepxia, Cicatricure, Suerox, Tio Nacho, Tafirol, Novamil, Groomen, Goicoechea, XL-3, Alliviax, Ni
Slide 16: Content
1 Who We Are: Our Footprint 2 3-year Profit & Growth Strategy Content 3 Unleashing Shareholder Value 4 Financial Review January 2023 16
Slide 17: 3-year Profit & Growth Strategy
2 3-year Profit & Growth Strategy January 2023 17
Slide 18: Strategic Goals
Strategic Goals NET SALES PURPOSE: +1.0bn USD Empower people to have amazing health and wellness EBITDA 25% VISION: A leading company in the CCC categories in which we compete 50 days
Slide 19: Evolution of Growth Strategy
Evolution of Growth Strategy 4-year trend : consistent Sales and Profit growth MM PS Net Revenues 1000 EBITDA INITIATIVES TO FURTHER IMPROVE PROFITABILITY 900 • Manufacturing Plant and 800 Supply Chain synergies 700 • AI-based media investment optimization 600 • Cost optimization strategies 500 • St
Slide 20: Growth Strategic Framework → 2025
Growth Strategic Framework → 2025 Product Innovation Superior Best-In-Class Brand Value Go-To-Market & e-Commerce Our Sustainability Commitment Strategic World-Class Partnerships & Supply Chain Technology Winning Culture & Organization "Confidential"
Slide 21: Product Innovation
Product Innovation Recycled Royal Jelly Shampoo Healthy Hair, Healthy Planet Eco-friendly Recycled Conscious communication 100% 100% recycled sustainable and recyclable packaging PETE bottle Recycling meeting points High quality ingredients January 2023
Slide 22: Product Innovation
Product Innovation Masstige Affordable Luxury Hi-quality Performance January 2023 22
Slide 23: New High (Inorganic) Growth Strategy
New High (Inorganic) Growth Strategy M&A • Current environment : high valuations due to global apetite in OTC and PC brands, and low interest rates PARTNERSHIPS • Innovative products and services High ROIC -> • Extensive R&D capabilities Shareholder • Low capital investments value creation • Leverag
Slide 24: The ideal Partner for Latin America and the U.S. Hispanic Market
“The ideal Partner for Latin America and the U.S.Hispanic Market” Genomma Lab Internacional
Slide 25: Strategic Alliances
Strategic Alliances New category with growth potential for Mexico & LatAm Manufactured by Edgewell PC (Strategic Partnership) Market Value opportunity of >100mm USD January 2023
Slide 26: Strategic Alliances
Strategic Alliances Manufactured by UP International (Strategic Partnership) Exclusivity in Mexico and Latin America ex. Brazil Market Value opportunity of >80mm USD January 2023 26
Slide 27: Exploring expansion to other territories
Exploring expansion to other territories • Developing a franchise business to expand the presence of power brands in other territories, partnering with strong local players overseas • Low cost manufacturing, sustainable products • Full marketing/advertising and Point-of-Sale material • Cicatricure,
Slide 28: Superior Brand Communication
Superior Brand Communication SOCIAL RESPONSIBILITY Click on images to watch the latest product communication January 2023 31
Slide 29: Proprietary Process to Win the Consumer Experience
Always-on Analytics and Precision Marketing Proprietary Process to Win the Consumer Experience Always-on Analytics and Precision Marketing Understanding Online Market Design Experts Effective Research with Across all of Consumers in communication media Choices Thousands of E-Commerce vehicles platfo
Slide 30: The largest Content Studio in the world of CPGs and Pharma
The largest Content Studio (25 years) in the world of CPGs and Pharma Companies, now including Digital Content • 25 years developing the largest multi-media content in Latin America • > 2.1 PetaBytes of media content (Over 2,140,000,000 GB of photos, videos, animation & digital content produced in-h
Slide 31: Best in Class Go-to-Market
From the Bottom-of-the-Pyramid to the top Best in Cass Go-to-Market Multi- Channel Traditional Channel Superior POS visibility • +308,000 • Modern Trade Points of Sale • Pharma Wholesalers • Pharma Chain • E-Commerce (B2C) • Amazon & other e-Retailers • Direct Sales Distribution (DSD) • Independent
Slide 32: Corporate Culture & Organization
Corporate Culture & Organization Genomma Way Breaking Down Barriers • GenBook, new corporate How are we doing it? philosophy • Upskilling • Competitive Compensation • Career Development • Connected Organization Equal opportunity J a n u a r y 2 0 2 2 35 J a n u a r y 2 0 2 2 35
Slide 33: 2025 Sustainability Strategy
2025 Sustainability Strategy Click here to read our 2025 Sustainability Strategy +10 Years Being Recognized As One Of The Leading Companies In ESG Practices. 36 January 2022
Slide 34: Capital Allocation, Ratings & Long-term Financing
Capital Allocation, Ratings & Long-term Financing • CASH DIVIDEND • SHARE BUY-BUCKS • OPTIMIZE FINANCIAL LEVERAGE • STRATEGIC PARTNERSHIPS / M&A Short-Term: Short-Term: F1+(mex) HR+1 Long-Term: Long-Term: AA(mex) HR AA+ Outlook: Outlook: Positive Stable January 2022 37
Slide 35: World-class Manufacturing & Supply Chain
World-class Manufacturing & Supply Chain Enhanced Value Equation Higher Gross Margin US$ 100 MM Superior Product Quality 8 years term Reliable Product Supply loan 1 2 3 January 2022 38
Slide 36: PC Manufacturing Facility Update
PC Manufacturing Facility Update Suerox® Manufacturing Line +7,800,000 bottles produced in Sep-22 39 January 2022
Slide 37: PC Manufacturing Facility Update
PC Manufacturing Facility Update Isotonic Beverage Line J a n u a r y 2 0 2 2 40
Slide 38: Central Warehouse, PC and OTC Manufacturing Facility
Central Warehouse, PC and OTC Manufacturing Facility January 2022 41
Slide 39: OTC Manufacturing Facility Update
OTC Manufacturing Facility Update Tube filling equipment for semi- Water chiller system for OTC Plant solid production line Tanks system for liquid OTC production Semi-solid production line State-of-the-art equipment January 2022 42
Slide 40: Content
1 Who We Are: Our Footprint 2 3-year Profit & Growth Strategy Content 3 Unleashing Shareholder Value 4 Financial Review January 2022 43
Slide 41: Unleashing Shareholder Value
3 Unleashing Shareholder Value January 2022 44
Slide 42: Argentina's Economic Situation
Argentina's Economic Situation Exchange rate disparity: Official vs Blue rate 350 340 250 July 03, 2022 150 Elected 150 50 01/17 07/17 01/18 07/18 01/19 07/19 01/20 07/20 01/21 07/21 01/22 07/22 -50 46 "Confidential"
Slide 43: Argentina's Economic Situation: Inflation
Argentina's Economic Situation Inflation Rate in Argentina increased to 83% in Sep-2022. Source: Instituto Nacional de Estadística y Censos (INDEC) 47 "Confidential"
Slide 44: LABB Stock Performance
LABB Stock Performance Top-Line Growth & Argentina Risk-off Margin stability 22 despite of COVID 20 18 16 14 12 10 dic-18 jun-19 dic-19 jun-20 dic-20 jun-21 dic-21 jun-22 48 "Confidential"
Slide 45: Median trading requirements to remain in the IPC index
¨Para mantenerse en el IPC se requieren medianas de 3 m y 6 m > 30 millones de pesos MEDIANA GCARSO SITES BOLSA GCC LABB 3 Meses 24.950 22,320 27,279 29,282 30,440 6 Meses 26,563 31,602 32,465 35,745 31,291 Sin cruces > 1.5 std dev Mayor 3 Meses 24,616 22,320 25,693 27,910 28,710 6 Meses 26,563 31,5
Slide 46: Index Funds Participation
Index Funds Participation Style Distribution of Institutional Holders INDEX FUNDS linked to the Mexican Bolsa IPC index had to sell in a short period of time INDEX funds that follow MSCI or other Indexes were not affected As of July 27, 2022
Slide 47: Buy and Hold Abnormal Returns
Buy and Hold Abnormal Returns % Research 5-year research on stock Price after deletions from S&P 500 • Losing a place in a major stock index has only short-term impact on share Price: 45 days • Value is ultimately determined by its cash flow potential, unrelated to membership in a major equity index
Slide 48: Evolution of Growth Strategy
Evolution of Growth Strategy 4-year trend : consistent Sales and Profit growth MM PS Net Revenues 1000 EBITDA INITIATIVES TO FURTHER IMPROVE PROFITABILITY 900 • Manufacturing Plant and 800 Supply Chain synergies 700 • AI-based media investment optimization 600 • Cost optimization strategies 500 • St
Slide 49: Unleash Shareholder Value
Unleash Shareholder Value SUM OF THE PARTS DIVERSIFIED Category 3 Total Company < Category 1 + Category 2 + Category 3 = Category 2 PERSONAL PHARMA BEVERAGES Category 1 CARE Investors are getting greater value from pure-play companies rather than diversified businesses Source : US life sciences stra
Slide 50: Genomma's wealth of categories and Company-owned brands
Genomma´s wealth of categories and Company-owned powerful brands OTC PHARMA PERSONAL CARE • Analgesics • Specialized Hair Care • Anti-flu • Skin Care • Cough & Cold • Beauty Care • Gastro • Shampoo • Hemorrhoids • Anti-acné • Anti-micotics • Cosmetics • Condoms • Razors • Sexual Health • Isotonic be
Slide 51: Dynamism in M&A Pharma
Dynamism in M&A Pharma HALZEON © fesk VIATRIS
Slide 52: COGS savings Manufacturing Suerox at the Plant
COGS savings Manufacturing Suerox at the Plant COST PER UNIT (INDEX) Co-packer 1 Co-packer 2 Co-packer 3 Co-packer 4 Co-packer 5 Plant No longer used
Slide 53: Suerox Evolution – Unit Sales
Suerox Evolution – Unit Sales Growth is a function of Capacity 11.5 X Manufactured at the Genomma Plant Co-packer 1 Co-packer 2 2016 2017 2018 2019 2020 2021 2022
Slide 54: Quarterly Financial Results
Quarterly Financial Results Ps. million Income Statement Q3-2022 % Q3-2021 % Var % Net Sales $4,349.2 100.0% $3,983.9 100.0% +9.2% Gross Profit $2,685.7 61.8% $2,454.9 61.6% +9.4% Operating Income $859.4 19.8% $783.5 19.7% +9.7% EBITDA(1) $912.4 21.0% $819.0 20.6% +11.4% LatAm 49% Mexico 42% USA 9%
Slide 55: Anexes
Genomma Lab.° Internacional January 2022| 73
Slide 56: Economies Of Scale And Scope Driving Higher Gross Margins
Economies Of Scale And Scope Driving Higher Gross Margins Opportunity Outsourcing Producing areas Direct control in all Buying finished Raw Materials products COGS and components Fragmented raw Packaging material Economies of scale procurement Low scale, labor State-of-the-art fully Labor Cost inten
Slide 57: Economies Of Scale And Scope Driving Higher Gross Margins
Economies Of Scale And Scope Driving Higher Gross Margins Opportunity Outsourcing Producing areas Higher COGS due to Eliminate co- Suppliers co-packers profit packers profit margin margin Suppliers scattered Integration of throughout the suppliers to country industrial park Logistics Leverage freigh
Slide 58: OTC Market Share By Country
OTC Market Share By Country Top Two Countries Growth Potential Leadership CAM (1) ECUADOR position position position 4th. 4th. 3rd. MEXICO PLACE CHILE > 70% share PERÚ position in the Region position 5th. 6th. position ARGENTINA 1st. COLOMBIA PLACE position 7th. > 30% share Source: IMS Health. Ranki
Slide 59: Profitability Through COGs Reduction
Profitability Through COGs Reduction 38 39 Acquired in 2012 32 34 from Sidus Market 25.4 Share in 24.2 23. 21 21. units (%) 20.3 Competitor ‘13 ‘14 ‘15 ‘16 ‘17 ’18 51 33.91 25.39 Net Sales 20.69 in USD 9.87 13.67 million Portfolio of products ‘13 ‘14 ‘15 ‘16 ’17 ’18 Source: Cid Latina – N02B + M01A.
Slide 60: Industrial Complex– EDGE Certification
Industrial Complex– EDGE Certification GENOMMA LAB ACHIEVES WORLD BANK / IFC’s EDGE CERTIFICATION EDGE ISA GREEN BUILDINGSTANDARD AND A GLOBAL CERTIFICATION SYSTEM FIRST PHARMACEUTICAL PLANT IN THE WESTERN HEMISPHERE TO MEET STANDARDS 50
Slide 61: Industrial Complex– EDGE Certification
Industrial Complex– EDGE Certification Plant design enables: PERSONAL CARE PLANT SAVINGS: - 31% in energy - 52% in water - 41% in embodied energy - 87 tons of CO2 PHARMA PLANT SAVINGS: - 45% in energy - 37% in water - 42% in embodied energy - 33 tons of CO2 DISTRIBUTION CENTER SAVINGS: - 26% in ener
Slide 62: OTC Manufacturing Plant Permits Update
OTC Manufacturing Plant Permits Update Granted INTERNATIONAL GMPs Pending Approval Not submitted MEXICO GMP OPERATING LICENSE Solid Semi-Solid Oral Liquid Topical Liquid Coating
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