Gruma Sab De Cv Class B · BMV:GRUMA/B
Gruma Sab De Cv Class B — Investor Presentation (March 2018)
26 slides from Gruma Sab De Cv Class B's investor presentation, March 2018
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Company Overview
COMPANY OVERVIEW oe MISSION @ ‘NET WT10502 5)
Slide 3: Gruma is the world's largest corn flour and tortilla producer
GRUMA IS THE WORLD’S LARGEST CORN FLOUR AND TORTILLA PRODUCER, WITH OPERATIONS IN THE UNITED STATES, MEXICO, CENTRAL AMERICA, EUROPE, ASIA AND OCEANIA Subsidiaries Products % Sales % EBITDA Family: 52% GRUMA USA • Corn flour • Tortillas, other Float: 48% GIMSA • Corn flour 57 61 GRUMA, S.A.B. de C.V
Slide 4: Gruma's leading brands show strong awareness and consumer loyalty
GRUMA’S LEADING BRANDS SHOW STRONG AWARENESS AND CONSUMER LOYALTY REGION BRANDS PRODUCTS POSITION CORN FLOUR FIRST UNITED STATES TORTILLAS FIRST TORTILLAS SECOND MEXICO CORN FLOUR FIRST CORN FLOUR FIRST CENTRAL AMERICA TORTILLAS FIRST TORTILLAS SECOND EUROPE TORTILLAS THIRD ASIA & OCEANIA TORTILLAS
Slide 5: Gruma is leading important product innovation for health-oriented consumers
GRUMA IS LEADING IMPORTANT PRODUCT INNOVATION TO SATISFY THE GROWING MARKET OF HEALTH-ORIENTED CONSUMERS • Consumers replacing breads with wraps • Increased popularity of healthier snack options, such as gluten-free organic corn chips To satisfy these megatrends, GRUMA offers a line of healthier alt
Slide 6: New product launchings and colorful in-store displays enhance sales
NEW PRODUCT LAUNCHINGS AND COLORFUL IN-STORE DISPLAYS ENHANCE SALES OF VALUE-ADDED AND HIGHER-MARGIN PRODUCTS 6
Slide 7: Consistent growth in net sales driven mainly by U.S. operations
GRUMA HAS ACHIEVED CONSISTENT GROWTH IN NET SALES DRIVEN MAINLY BY THE U.S. OPERATIONS GRUMA GRUMA Net Sales Volume (millions of pesos) (thousand metric tons) CAGR: CAGR: ’14 – ’17: 12% ’14 – ’17: 3% 70,581 68,206 3,959 4,009 3,831 58,279 3,674 49,935 2014 2015 2016 2017 2014 2015 2016 2017 7
Slide 8: EBITDA generation has increased at a higher rate than net sales
EBITDA GENERATION HAS INCREASED AT A HIGHER RATE THAN NET SALES BASED ON MARGIN IMPROVEMENTS, ALSO LARGELY DRIVEN BY THE U.S. OPERATIONS GRUMA EBITDA (millions of pesos) CAGR: ’14 – ’17: 15% 11,344 10,964 9,139 7,493 2014 2015 2016 2017 EBITDA Mg 15.0 15.7 16.1 16.1 (% ) 8
Slide 9: Better EBITDA generation contributed to solid financial position
BETTER EBITDA GENERATION HAS CONTRIBUTED TO GRUMA’S SOLID FINANCIAL POSITION GRUMA GRUMA Debt Net Debt/EBITDA (millions of US$) (times) 1,030 737 769 775 1.5 1.2 1.1 1.0 DEC'14 DEC'15 DEC'16 DEC'17 DEC'14 DEC'15 DEC'16 DEC'17 9
Slide 10: Comfortable debt maturity profile
GRUMA ENJOYS A COMFORTABLE DEBT MATURITY PROFILE GRUMA Debt1 Maturity Profile As of December 31, 2017 (millions of US$) 402.0 334.7 146.8 91.4 23.9 28.7 2.0 2018 2019 2020 2021 2022 2023 2024 1 Weighted average interest rate as of December 31, 2017 is 3.96%. 10
Slide 11: Healthy financial structure enabled Gruma to become dividend-paying
THIS HEALTHY FINANCIAL STRUCTURE HAS ENABLED GRUMA TO BECOME A DIVIDEND-PAYING COMPANY GRUMA Dividend Payments (millions of pesos) 1.7 % 1.0 % 0.8 % 0.8 % 1,848 865 649 692 2014 2015 2016 2017 Total Dividend Payment ($) Dividend Yield 11
Slide 12: Main Subsidiaries
MAIN SUBSIDIARIES
Slide 13: Gruma USA
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Slide 14: Gruma USA is the largest subsidiary and leading producer
GRUMA USA IS THE LARGEST SUBSIDIARY, AND THE LEADING CORN FLOUR AND TORTILLA PRODUCER IN THE UNITED STATES Net Sales 2017: US$2.1 billion GRUMA USA Fife, WA New Brighton, MN McMinnville, OR * Mountain Top, PA Hayward, CA Omaha, NE Corn Flour Evansville, IN Tortilla Madera, CA Fresno, CA Pueblo, CO O
Slide 15: Growth potential for U.S. tortilla and corn flour industries
THERE IS GROWTH POTENTIAL FOR THE U.S. TORTILLA AND CORN FLOUR INDUSTRIES Growth Drivers Estimated U.S. Markets • Hispanic Population 1 –18% of total U.S. population, out of which 63% are Mexican –Hispanic population increased 63% between 2000 and 2016, accounting for half of total U.S. Tortillas/To
Slide 16: Gruma USA's results reflect efforts to enhance value creation
GRUMA USA’S RESULTS ARE REFLECTING THE COMPANY’S EFFORTS TO ENHANCE VALUE CREATION GRUMA USA GRUMA USA Net Sales EBITDA (millions of US$) (millions of US$) CAGR: CAGR: ’14 – ’17: 2% ’14 – ’17: 9% 345 352 1,989 2,024 2,051 1,915 311 273 2014 2015 2016 2017 2014 2015 2016 2017 EBITDA 14.2 15.6 17.1 17
Slide 17: GIMSA
GIMSA
Slide 18: GIMSA is second largest subsidiary and corn flour leader in Mexico
GIMSA IS GRUMA’S SECOND LARGEST SUBSIDIARY AND THE LEADER OF THE CORN FLOUR INDUSTRY IN MEXICO Mexicali GIMSA Chihuahua • Net Sales 2017: US$1 billion1 Obregón • 18 plants, with total annual capacity of 2.4 Río Bravo million metric tons of corn flour Culiacán Nuevo León • GIMSA’s market share within
Slide 19: Corn flour used for only 34% of tortillas in Mexico
CORN FLOUR IS ONLY USED TO PRODUCE 34% OF THE TORTILLAS IN MEXICO, THUS THERE IS A GREAT POTENTIAL FOR LONG-TERM GROWTH Potential Corn Flour Market in Mexico 7.3 Million Metric Tons of Corn Flour 1 US$4.1 billion 2 Corn Flour Market in Mexico 2.5 Million Metric Tons of Corn Flour 1 US$1.4 billion2 G
Slide 20: GIMSA's sales growth reflects commercial initiatives
GIMSA’S SALES GROWTH MAINLY REFLECTS COMMERCIAL INITIATIVES AIMED AT STRENGTHENING CUSTOMER SERVICE GIMSA GIMSA Net Sales EBITDA (millions of pesos) (millions of pesos) CAGR: CAGR: ’14 – ’17: 9% ’14 – ’17: 3% 19,508 2,964 3,084 2,828 2,942 17,866 15,074 15,871 2014 2015 2016 2017 2014 2015 2016 2017
Slide 21: Gruma Europe
GRUMA EUROPE
Slide 22: Gruma Europe is third largest subsidiary, focused on tortillas
GRUMA EUROPE IS THE COMPANY’S THIRD LARGEST SUBSIDIARY, FOCUSED MAINLY ON THE TORTILLA BUSINESS Net Sales 2017: US$285 million1 GRUMA Europe Tortilla Corn Milling Operations Operations 70% 30% • 6 Plants in Europe • 3 Mills in Europe • England (2) • Italy • The Netherlands • Ukraine • Russia • Turke
Slide 23: Growth potential for the tortilla market in Europe
THERE IS GROWTH POTENTIAL FOR THE TORTILLA MARKET IN EUROPE Growth Drivers Estimated European Markets • Adoption of tortillas in non-Mexican dishes (wraps) • Wraps, burritos, tacos, quesadillas, nachos, etc. becoming mainstream foods • Popularity of Mexican food –The number of Mexican food restauran
Slide 24: Gruma Europe improving sales mix via retail channel
GRUMA EUROPE IS WORKING TO IMPROVE ITS SALES MIX BY STRENGTHENING ITS PRESENCE IN THE RETAIL CHANNEL, THEREBY TEMPORARILY IMPACTING MARGINS DUE TO HIGHER SG&A EXPENSES GRUMA EUROPE GRUMA EUROPE Net Sales EBITDA (millions of EUR$) (millions of EUR$) CAGR: CAGR: ’14 – ’17: 4% ’14 – ’17: 6% 254 240 240
Slide 25: All subsidiaries implementing initiatives to enhance value creation
ALL OF GRUMA’S SUBSIDIARIES HAVE BEEN IMPLEMENTING INITIATIVES TO ENHANCE VALUE CREATION. WE HAVE SEEN, AND CONTINUE TO EXPECT, STRONGER EBITDA GENERATION ACROSS THE COMPANY
Slide 26: Contact Information
Contact Information Rogelio Sánchez Lilia Gómez +52 (81) 8399 3312 +52 (81) 8399 3324 rsanchezm@gruma.com lgomez@gruma.com Investor Relations +52 (81) 8399 3349 ir@gruma.com www.gruma.com