Grupo Bimbo Sab De Cv Class A · BMV:BIMBO/A
Grupo Bimbo Sab De Cv Class A — Investor Presentation (September 2010)
29 slides from Grupo Bimbo Sab De Cv Class A's investor presentation, September 2010
Slide 1: To nourish, delight and serve our world
To nourish, delight and serve our world Alimentar, deleitar y servir a nuestro mundo Alimentar, deliciar e servir a nosso mundo TST, Tare Ss Bel Tey FR Empresa altamente productiva y plenamente humana September 2010
Slide 2: Company Overview
Company Overview Leading Bakery Company in the World Best-in-Class Asset Base Grupo Bimbo is a global manufacturer and Top-notch distribution and manufacturing capabilities: distributor of branded packaged food products 99 production facilities across 17 countries 40,000+ distribution routes #
Slide 3: Company Overview (cont'd)
Company Overview (cont’d) Company Structure Control Group (1) Float 72% 28% Central and Mexico United States Asia South America Listed in the Mexico Stock Exchange since 1980 Market capitalization of US$ 8.4 billion (2) Shares outstanding: 1,175.8 million, one class (A) Index component (Mexi
Slide 4: Company Overview (cont'd)
Company Overview (cont’d) Revenues LTM ´10 US $9,007 million(1) Operating Countries 12% United States 42% of Sales 46% 34 Plants 42% Beijing Mexico Mexico United States Central & South America 46% of Sales EBITDA LTM ´10 US$1,270million(1) 39 Plants China (2) <1% of Sales 5% 1 Plant 35% Central & So
Slide 5: Grupo Bimbo's Growth Path: Key Milestones
Grupo Bimbo’s Growth Path Key Milestones Successful growth story through a combination of organic growth, strategic acquisitions and a conservative financial policy 2010 Accelerated International Expansion Grupo Bimbo acquired Weston Foods, Inc., becoming the largest baked goods company in the Uni
Slide 6: Grupo Bimbo's Growth Path: Recent Growth Story
Grupo Bimbo’s Growth Path Recent Growth Story Revenue Growth (1) (US$ in millions) 9,007 8,629 Top-line growth at least twice GDP 7,375 6,615 Aggressive new product launches to meet 5,835 consumer demand 5,151 4,567 Search for growth by category and regions in which we compete 2004 2005 2006 2
Slide 7: Grupo Bimbo's Strategy
Grupo Bimbo’s Strategy Forward looking company with strong Innovation R&D & Deep Consumer Understanding Strict cash flow Responsible discipline Financial Ongoing Brands for every meal, Policy Brand every occasion and for Development every consumer group Strong execution on a local basis Grow
Slide 8: Investment Highlights
Investment Highlights Experienced Management Team and Strong Corporate Governance One of the Leading Baked Goods Company in the World and Leader in the Americas Very Attractive and Non-Cyclical Industry Deep Consumer Understanding Strong Brand Equity & Diverse Product Portfolio Exceptional Distribut
Slide 9: Experienced Management Team and Strong Corporate Governance
Experienced Management Team and Strong Corporate Governance Corporate Compensation Finance & Audit Corporate Governance Practices & Benefits Planning Committee Committee Committee Committee Corporate Governance aligned with stakeholders’ Board of interest Directors 35% of board members are indep
Slide 10: Leading Baking Goods Company in the World and Leader in the Americas
One of the Leading Baking Goods Company in the World and Leader in the Americas Leading presence in dynamic markets with strong growth potential Packaged baked goods market development driven by growing population and new consumer trends Additional consolidation Market share expansion through
Slide 11: Very Attractive and Non-Cyclical Industry
Very Attractive and Non-Cyclical Industry Resilience to economic downturns Attractive Industry Non-discretionary consumer products Fundamentals High consumption frequency Highly fragmented industry with many small scale producers Short shelf life of product makes industry local Competitive
Slide 12: Major Global Bakery Product Manufacturers
Major Global Bakery Product Manufacturers LTM Bakery Revenues 10,045 9,007 7,228 2,889 2,770 2,589 1,508 Grupo Bimbo is the #2 bakery company in the world, based on total revenues Figures for LTM 2Q 2010 Kraft´s biscuit business represents approximately 23% of total revenues, LTM figures as of June
Slide 13: Deep Consumer Understanding
Deep Consumer Understanding Strategies attuned to consumer taste and needs Strong R&D platform focusing on Deep Consumer Understanding Products for each social and economic strata Six innovation and nutrition institutes for new and better product development Mexico United States Brazil Mexic
Slide 14: Strong Brand Equity with Diverse Product Portfolio
Strong Brand Equity with Diverse Product Portfolio Extraordinary customer awareness of our brands Strong track record of creating, nurturing and managing successful brands Well balanced brand portfolio in a wide array of products Brands for every meal, every occasion and every consumer group
Slide 15: Exceptional Distribution Network
Exceptional Distribution Network Grupo Bimbo services 1.3 million points of sale daily or every other day 1,000+ distribution centers 40,000+ routes 36,000+ fleet Relentless strengthening the reach and efficiency of our distribution network High distribution expertise for each channel se
Slide 16: Strong Financial Performance
Strong Financial Performance… Revenue Growth EBITDA Growth (US$ in millions) (US$ in millions) EBITDA Margin 9,007 8,629 1,270 7,375 1,173 6,615 5,835 880 5,151 791 4,567 712 660 509 2004 2005 2006 2007 2008 2009 LTM 2004 2005 2006 2007 2008 2009 LTM Mexico U.S. Latin America 11.1% 12.8% 12.2% 12.0%
Slide 17: GB - Quarterly Highlights
GB - Quarterly Highlights Revenue Growth (GB) EBITDA Growth (GB) (MXN$ in millions) (MXN$ in millions) 0.3% 29,959 -0.2% 29,352 16.7% 12.6% 12.5% 28,686 14.4% 28,357 12.4% 10.7% 5,014 28,781 3,569 3,598 28,293 4,226 3,559 3,039 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales '09 Sales '10 EBITDA '09 EBITDA '10 EBITDA
Slide 18: Mexico – Quarterly Highlights
Mexico – Quarterly Highlights Revenue Growth (Mexico) EBITDA Growth (Mexico) (MXN$ in millions) (MXN$ in millions) 3.2% 4.8% 23.1% 14,311 17.5% 13,854 13,818 14.0% 14.0% 13,405 13.5% 11.8% 14,300 3,300 14,055 2,009 1,974 2,422 1,631 1,815 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales '09 Sales '10 EBITDA '09 EBITDA
Slide 19: USA - Quarterly Highlights
USA - Quarterly Highlights Revenue Growth (USA) EBITDA Growth (USA) (MXN$ in millions) (MXN$ in millions) -3.9% 11.9% 12.5% 11.8% 11.3% 12,694 12,717 11.9% -4.7% 12,445 10.1% 1,595 1,514 11,995 1,449 1,407 1,346 12,202 1,211 11,434 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales '09 Sales '10 EBITDA '09 EBITDA '10 EB
Slide 20: OLA - Quarterly Highlights
OLA - Quarterly Highlights Revenue Growth (OLA) EBITDA Growth (OLA) (MXN$ in millions) (MXN$ in millions) 3,842 8.0% 3,419 7.1% 6.9% 3,214 6.1% 3,131 6.4% 5.4% 258 3,199 3,258 235 236 222 204 176 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales '09 Sales '10 EBITDA '09 EBITDA '10 EBITDA Margin '09 EBITDA Margin '10
Slide 21: Strong Performance in a Very Attractive and Non-Cyclical Industry
Strong Performance in a Very Attractive and Non-Cyclical Industry Best-in-Class Execution + Resilient Industry = Financial Stability Over Time EBIT Margin EBITDA Margin Gross Margin 40.0 56.7 60 56.2 54.8 54.0 53.7 35.0 53.3 53.1 53.3 53.0 53.4 52.8 52.8 53.2 55 51.2 51.1 48.6 30.0 47.9 50 25.0 45 2
Slide 22: Responsible Financial Management
… and Responsible Financial Management Highlights Leverage Achieve rapid deleveraging – a top priority - Total Debt / EBITDA Prepaid US$ 500 million during the last 12 Net Debt / EBITDA months Target Debt/EBITDA < 2x 2.8x 2.3x 1.5x Strict management of working capital and disciplined 1.2x 1.1x 1
Slide 23: Responsible and Proactive Financial Management (June 2010)
Responsible and Proactive Financial Management (June 2010) Debt Structure and Maturity Profile (June 30, 2010) Average Life: 4.5 yrs 1,073 800 609 428 395 200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Financial flexibility is highly valued Aligned debt structure and maturity profile t
Slide 24: Responsible and Proactive Financial Management (Pro-forma June 2010)
Responsible and Proactive Financial Management (Pro-forma June 2010) Debt Structure and Maturity Profile (Pro-forma June 2010) Average Life: 5.6 yrs 800 609 428 395 273 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Financial flexibility is highly valued Aligned debt structure and maturity
Slide 25: Financial Summary (June 2010)
Financial Summary (June 2010) Debt Structure (US$ millions) 1,650 3,505 1,855 1855 Bank Facilities Bonds Total Debt US$ Denominated Instrument Amount Currency Average Life (US$ millions) 50% 50% Bank Facilities 1,855 MXN – USD 2.0 years MXN Bonds 1,650 MXN 7.3 years MXN$ Denominated ________________
Slide 26: Financial Summary (Pro-forma June 2010)
Financial Summary (Pro-forma June 2010) Debt Structure (US$ millions) 1,650 2,505 855 855 Bank Facilities Bonds Total Debt US$ Denominated 43% Instrument Amount Currency Average Life (US$ millions) 57% Bank Facilities 855 MXN – USD 2.8 years $MXN Bonds 1,650 MXN 7.3 years Denominated _______________
Slide 27: Strong Corporate Identity
Strong Corporate Identity Grupo Bimbo ranks among the 20 most respected companies in the world (1) Its reputation is built on a strong corporate identity and brand equity Key component of Grupo Bimbo’s corporate identity is its company-wide Social Responsibility Program Corporate Social Respon
Slide 28: Investment Highlights
Investment Highlights Experienced Management Team and Strong Corporate Governance One of the Leading Baked Goods Company in the World and Leader in the Americas Very Attractive and Non-Cyclical Industry Deep Consumer Understanding Strong Brand Equity & Diverse Product Portfolio Exceptional Distribut
Slide 29: Forward-looking statements
During this presentation, we have made statements about the Company’s future plans and prospects that constitute forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors and undue reliance should not be p