Gruma Sab De Cv Class B · BMV:GRUMA/B
Gruma Sab De Cv Class B — Q2 2023 Earnings Presentation
27 slides from Gruma Sab De Cv Class B's earnings presentation, July 2023
Slide 1: Investor Presentation 2nd Quarter 2023
Investor Presentation 2nd Quarter 2023
Slide 2: GRUMA is the World's Largest Corn Flour and Tortilla Producer
GRUMA is the World´s Largest Corn Flour and Tortilla Producer with a Global Reach Sales US$5.6 Bn Plants 74 Mkt Cap2 US$6.4 Bn 2022 Approximately EBITDA1 US$809mm Employees Float 49% 25,700 Gruma Gruma Asia Gruma USA GIMSA Gruma Europe Footprint Centroamérica & Oceania ▪ Tortilla ▪ Corn flour ▪ Tort
Slide 3: Strong Brand Awareness and Consumer Loyalty
Strong Brand Awareness and Consumer Loyalty Division Brands Products Mkt Position Tortilla 1 Gruma USA Tortilla Corn flour GIMSA Corn flour MISSION Mx Tortilla Gruma Europe Tortilla 2 Corn flour 1 Gruma Centroamérica Tortilla 1 Tortilla 2 Gruma Asia & Oceania Tortilla 3
Slide 4: Driving Growth and Innovation in Health-Oriented Consumer Segments
Driving Growth and Innovation in Health–Oriented Consumer Segments Health – Oriented Consumer Trend ▪ Consumer awareness for healthier food has increased ▪ Consumers replacing breads with wraps popularity for alternatives in typical dishes and snacks ▪ Increased popularity of healthier snack options
Slide 5: New Launches, Dynamic Merchandizing Enhance Sales of Value-Added Products
New Launches, Dynamic Merchandizing Enhance Sales of Value-Added Higher Margin Products WW Chia & WW sprouted WW Pita quinoa wrap wrap WW carb Organic corn balance street Flatbread tortilla chips tacos Low-calorie corn tortillas 5
Slide 6: Consistent Growth in Net Sales and Profitability Driven by Innovation
Consistent Growth in Net Sales and Profitability Driven by Continuous Innovation with a Global Reach… Volume (thousands of metric tons) 4,116 4,232 4,206 4,329 4,389 Volume 19´- ´23 CAGR 2% 2019 2020 2021 2022 2023 LTM Net Sales and EBITDA (millions of US$) $6,238 Net Sales 19´ - ´23 CAGR 6,000 $5,5
Slide 7: Healthy Capital Structure Reflects Disciplined Debt Management
…While a Healthy Capital Structure Reflects a Disciplined Approach to Debt Management Debt (Millions of US$) 1,981 2,125 1,486 1,511 363 1,420 367 266 335 319 1,614 1,762 1,154 1,151 1,192 2019 2020 2021 2022 2023 Debt Leases Net Debt / EBITDA (times) 2.1x 2.0x 1.9x 1.7x 1.6x 2019 2020 2021 2022 202
Slide 8: Healthy Debt Maturity Profile, Dollar-Denominated Debt
The Company Enjoys a Healthy Debt Maturity Profile, Where 66% of Debt is Dollar-Denominated, Backed by its U.S. Operations Debt Outstanding Maturity Schedule 1 (US$ mm) Debt by Currency Composition (As of June 30, 2023) 2% Rate 2023 2024 2025 2026 2027 2028 2029 Total Senior Notes 2024 Fixed 4.875%
Slide 9: Higher Dividend Payment Over Time and Share Buybacks
Improvement in Results, Higher-Cash Generation and a Healthy Financial Structure, Has Enabled GRUMA to Increase its Dividend Payment Overtime... Stockholder Ownership Dividend Payment Detail (millions of pesos) Primary Shareholder Group 2,500 2,280 3.0% Float 2,047 2,022 1,999 1,951 2.5% 2,000 1,848
Slide 10: Corporate Governance
Corporate Governance ▪ Management has an average of 24 years at Juan Antonio González GRUMA Moreno Chairman & CEO Executive Board Members Independent Board Members Laura Dinora Homero Huerta Moreno Carlos Hank González Martínez Salinas Chief Administrative Vice Chairman of Law Sector Officer the Boa
Slide 11: United States
BETTER Choices MADE Easy $Y United States
Slide 12: Gruma USA is the Largest Subsidiary and Leading Producer in the US
Gruma USA is the Largest Subsidiary and the Leading Corn Flour and Tortilla Producer in the United States… Plant Distribution Map Business Description Summary 2022FY Net Sales Fife, WA US$3.2 Bn McMinnville, OR New Brighton, MN Hayward, CA Madera, CA Omaha, NE Fresno, CA Evansville, IN Panorama City
Slide 13: Clear and Solid Drivers of Growth in the United States
…With Clear and Solid Drivers of Growth in Both of our Main Markets of Focus in the United States Estimated Markets for Strong Growth of the Hispanic Population Tortilla and Flour in the U.S. ▪ 20.2% of total U.S. population, out of which 60% are Mexican1 Tortilla / tortilla chips Corn flour Strong
Slide 14: Strong Consumer Demand and Richer Product Mix Improve Volumes and Profitability
Over the Past Few Years, Strong Consumer Demand, in Addition to a Richer Product Mix, Has Resulted in Improved Volumes and Profitability Volume (thousands of metric tons) 1,441 1,507 1,522 1,605 1,616 Volume 19’- ’23 CAGR 3% 2019 2020 2021 2022 2023 LTM Net Sales and EBITDA (millions of US$) 4,000 4
Slide 15: Gruma USA Expects Continued Margin Improvement
Gruma USA Expects Continued Margin Improvement Based Principally on: ▪ Healthier alternatives Change in the sales mix towards higher- margin SKUs ▪ More value-added products ▪ Smaller product count per package Efficiencies arising from new plants and capacity expansions ▪ Continuation with our polic
Slide 16: GIMSA
GIMSA
Slide 17: 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 Plant Distribution Map Business Description Summary 2022FY Net Sales Mexicali US$1.7 Bn(1) Chihuahua Obregón Culiacán Nuevo León GIMSA Río Bravo La Paz Acaponeta Bajío Tampico Mérida Jalisco * México Verac
Slide 18: GIMSA's Commercial Strategies Give a Strong Foundation
GIMSA’s Commercial Strategies Have Given GRUMA a Strong Foundation for its Global Operation Volume (thousands of metric tons) Volume 19’- ´23 CAGR 2,042 2,099 2,047 2,076 2,130 1% 2019 2020 2021 2022 2023 LTM Net Sales and EBITDA 1 (millions of US$) 95.8 $1,726 $1,892 400 1,800 Net Sales 19- ‘23 CAG
Slide 19: Expectations of GIMSA's Results are Based on...
Expectations of GIMSA´s Results are Based on... Transition from the traditional method to the nixtamalized corn flour method of making tortillas and other corn-based products, as the primary opportunity for increased nixtamalized corn flour sales, particularly in Mexico Stability of its operations a
Slide 20: Europe
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Slide 21: Gruma Europe is Third Largest Subsidiary, Focused on Tortillas
Gruma Europe is the Company’s Third Largest Subsidiary, Focused Mainly on the Tortilla Business Plant Distribution Map Business Description Summary 2022FY Net Sales US$421mm Mission Foods Azteca Milling 74% of Revenues 26% of Revenues 6 Plants in Europe 3 Mills in Europe ▪ England (2) ▪ Italy ▪ Russ
Slide 22: Growth Potential for European Tortilla Market
Growth Potential for European Tortilla Market Supported by Three Main Consumer Trends Strong Growth of the Hispanic GROWTH Population DRIVERS Estimated Markets for Tortilla and Corn Flour in Europe Substitution of Sandwiches for Wraps Tortilla / tortilla chips ▪ US$1.2 mm Popularity of Mexican Food
Slide 23: Cost Growth in Europe Impacted Profitability Temporarily
Cost Growth in Europe has Impacted Profitability Temporarily; Pricing Implementation Strategies will Revert this Trend Back to Normal Levels Volume (thousands of metric tons) Volume 19’- ’23 CAGR 395 404 389 410 410 1% 2019 2020 2021 2022 2023 LTM Net Sales and EBITDA (millions of $US) 500 80 Net Sa
Slide 24: Improved Profitability in Gruma Europe will Result from:
Improved Profitability in Gruma Europe will Result from: 1 A better sales mix favoring the retail tortilla business, particularly with branded products, supported by enhanced marketing and distribution efforts 3 2 Potential M&A of tortilla Production efficiencies at tortilla companies to increase fo
Slide 25: Additional Opportunities
Additional Opportunities Additional Opportunities
Slide 26: Opportunities for Tortilla Penetration in Other Growing Markets
Along with its Three Main Subsidiaries, GRUMA Sees Exciting Opportunities for Tortilla Penetration in Other Growing Markets Asia & Oceania Mexico ▪ In Mexico, packaged tortilla business represents ▪ Presence in Asia and Oceania with three a huge potential market, where GRUMA has tortilla production
Slide 27: Contact Information
Contact Information Rogelio Sánchez Adolfo Werner Fritz Corporate Finance VP Head of Investor Relations rsanchezm@gruma.com afritz@gruma.com Tel: +52.81.8399.3311 Tel: +52.81.8399.3324