Becle, S.a.b. De C.v. · BMV:CUERVO
Becle, S.a.b. De C.v — Investor Presentation (August 2022)
23 slides from Becle, S.a.b. De C.v's investor presentation, August 2022
Slide 1: Investor Presentation
Investor Presentation Becle, S.A.B de C.V. August 2022
Slide 2: Becle: A Leading Global Spirits Company and Undisputed Leader in Tequila Worldwide
Becle: A Leading Global Spirits Company and Undisputed Leader in Tequila Worldwide Becle Today Diversified Product Portfolio with Over 30 Brands 2021 Key Figures • Undisputed leader in tequila globally, ~29% Exposure to the Right … With the Right High-Growth 25.5MM market share(1) Geographies… Categ
Slide 3: Becle's Outstanding Performance Makes it Today a Stronger Credit than in 2015
Becle's Outstanding Performance Makes it Today a Stronger Credit than in 2015 2015 2021 Becle’s last bond issuance 18.2MM 1.4X 25.5MM of 9 Liter Cases of 9 Liter Cases NSV/Case (1) US$51 NSV/Case (1) US$75 933 MM 2.1X 1,915 MM Net Sales (US$) (2) Net Sales (US$) (2) Focus on brand premiumization Net
Slide 4: Our Company
Our Company 1 Undisputed Global Leader in Tequila and #3 in Irish Whiskey 2 Dominant Position in the Hottest Spirits Category… 3 …And a Privileged Competitive Position… …In High-Growth Spirits Categories Through an Extensive Product 4 Portfolio with Focus on Premiumization Proven Agility and Innovat
Slide 5: Undisputed Global Leader in Tequila and #3 in Irish Whiskey
1 Undisputed Global Leader in Tequila and #3 in Irish Whiskey Global Leader in Tequila… ... In Every Region As of 2021 Volume – Total Market Size 41.2MM 9L Cases As % of volume - 2021 United States (62% of 2021 Global Volume) 28.5% 1ST 25.4% 12.3% Owner of 3 of Top 6 Rest of the World Leading Tequil
Slide 6: Dominant Position in the Hottest Spirits Category…
2 Dominant Position in the Hottest Spirits Category… Since Last Issuance, Tequila has… A …Been the Fastest Growing Major Spirits Category in the US and Second Fastest in the World B …Significantly Increased its Market Share (2016 - 2021 9L cases volume CAGR) (In terms of 9L cases volume) Tequila ove
Slide 7: …And a Privileged Competitive Position…
3 …And a Privileged Competitive Position… High Barriers of Entry Provided by Becle’s Vertical Integration and Own Distribution Agriculture Production Distribution Competitive Advantage Resulting from Appellation of Flagship Distilleries and Bottling Facilities Support Own Distribution Platform to Co
Slide 8: … In the Right Categories & Markets…
4 … In the Right Categories & Markets… Exposure to Dynamic Regions and Categories Spirits Growth | 2016-2021 9L cases Volume CAGR (1) (2) 68% of Becle’s Sales are in Tequila & Irish Whiskey 65% of Becle’s Sales are in the U.S. & Canada 11.6% 9.3% 9.6% 7.2% 3.4% (2.5%) (3) Tequila Irish Whiskey Total
Slide 9: … Through an Extensive Product Portfolio with Focus on Premiumization
4 … Through an Extensive Product Portfolio with Focus on Premiumization Diversified Brand Portfolio Net Sales by Category Jose Cuervo Family 1800 Other By value as of 2021 Tequila Prestige Super Premium Super Premium/ Premium Super Premium Ultra Premium Ultra Premium Irish Whiskey U.S. Whiskey Whisk
Slide 10: Proven Agility and Innovation Driving a Resilient Business Model
5 Proven Agility and Innovation Driving a Resilient Business Model with High Operating Cash Generation Capacity Becle’s Agile & Innovative Business Model is a Key Driver of its Outperformance Net Sales Y-o-Y | (%) 32.1% Becle’s resiliency proven in 2021 results 20.6% 17.9% 12.5% 9.7% 8.5% ∆ 4.3% 6.4
Slide 11: Best-in-Class Capital Structure & Prudent Financial Policy
6 Best-in-Class Capital Structure & Prudent Financial Policy Whilst Delivering Consistent Growth Best-In-Class Credit Metrics Total Debt / Market Cap (1) Total Debt / 2021 EBITDA 71.3% 4.8x 3.3x 3.4x 2.3x 2.6x 25.2% 2.1x 15.5% 8.6% 11.3% 6.2% Diageo Brown-Forman Pernod Constellation Heineken Brown-F
Slide 12: Renowned Family Heritage and Strong Corporate Governance
7 Renowned Family Heritage and Strong Corporate Governance Becle is a Global Spirits Company with a Profound Family Heritage Ownership • Founded in 1758, Becle is today an 11th generation managed spirits company Public Float 13% • Public company since 2017 and part of the S&P/BMV IPC index ─ Market
Slide 13: Strong Social and Sustainability Driven Culture
8 Strong Social and Sustainability Driven Culture We Care About our People, our Customers & the Environment Awards & Recognitions Responsible Community Consumption Engagement We promote responsible and moderate consumption of spirits We work closely with the aiming to safeguard our communities where
Slide 14: Becle's Environmental Initiatives are Fully Aligned to the UN Sustainable Development Targets
8 Becle’s Environmental Initiatives are Fully Aligned to the UN Sustainable Development Targets US$60+ MM Invested Since 2010 in Sustainable Projects # Number of Projects 15 5 4 Climate Change Preserve Water Circular Economy SDG Alignment • New factories with Energy efficient design to • Wastewater
Slide 15: New Issue Concurrent with Liability Management Exercise to Increase Debt Maturity Profile
New Issue Concurrent with Liability Management Exercise to Increase Debt Maturity Profile and Maintain Strong Liquidity Transaction Rationale Debt Maturity Profile As of 2Q21 | US$ MM (1) • Refinance upcoming maturities and extend debt maturity profile – Weighted average life from (4) 800 3.1yrs to
Slide 16: From a Net Debt Perspective, Contemplated Transaction is Essentially Leverage Neutral
From a Net Debt Perspective, Contemplated Transaction is Essentially Leverage Neutral Sources and Uses As of 2Q21 | US$ MM (1) Sources Uses New Sr. Notes 800 (2) Bank Loan Repayment 150 Repurchase of 2025 Sr. Notes (3) 350 Tender Premium Paid on 2025 Sr. Notes (4) 34 General Corporate Purposes 266 T
Slide 17: Financial Statements
Financial Statements 16
Slide 18: Income Statement
Income Statement Six months ended June 30th (1) Second quarter ended June 30th (1) 2021 % of net sales 2022 % of net sales 2022 (USD) (1) 2021 % of net sales 2022 % of net sales 2022 (USD) (1) (Ps&MM) Net sales 16,699 20,402 1,021 9,531 11,334 567 Cost of goods sold 7,785 46.6 9,487 46.5 475 4,460 4
Slide 19: Balance Sheet
Balance Sheet As of June 30th (Ps$ MM) 2021 2022 2022 (USD) (7) Cash and cash equivalents 7,046 9,143 458 Trade receivables 7,161 8,372 419 Inventories (1) 13,696 15,256 763 (2) Other assets 3,197 2,916 146 Total current assets 31,100 35,687 1,786 Inventories (1) 10,724 13,026 652 Property, plant an
Slide 20: Cash Flow Statement
Cash Flow Statement (1) Six months ended June 30th (1) (Ps$ MM) 2021 2022 2022 (USD) (1) Operating activities: Income before income taxes 2,874 3,894 195 Adjustment from items not implying cash flows: Depreciation and amortization 397 423 21 Loss on sale of property, plant and equipment 6 45 2 Non-c
Slide 21: Full Year 2022 Guidance
9 Full Year 2022 Guidance As of August 5th, 2022 • Items provided below are based on the Company's current estimates and are not a guarantee of future performance. • There could be significant risks and uncertainties that could cause actual results to differ materially, including the risk factors di
Slide 22: Consolidated Statement of Comprehensive Income - Summary
Consolidated Statement of Comprehensive Income - Summary (1) (1) Second Quarter ended Second Quarter ended Year over Year Variance June 30th, 2022 June 30th, 2021 (Figures in millions) (Pesos) % of Net Sales (Pesos) % of Net Sales % Volume 7,087 ** 6,364 ** 11.4 Net sales 11,334 100 9,531 100 18.9 G
Slide 23: Consolidated Statement of Financial Position & Cash Flow - Summary
Consolidated Statement of Financial Position & Cash Flow - Summary (1) (1) Second Quarter ended Second Quarter ended Year over Year Variance June 30th, 2022 June 30th, 2021 (Figures in millions) (Pesos) (Pesos) % Cash & cash equivalents 9,143 7,046 29.8 Total financial debt 18,114 12,862 40.8 Net de
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