Sigma Foods, S.a.b. De C.v. · BMV:SIGMAF/A
Sigma Foods, S.a.b. De C.v — ALFA, S.A.B. de C.V. — Q1 2022 Earnings Presentation
24 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, Apr 25, 2022
Slide 1: 1Q22 Earnings Presentation
1Q22 Earnings Presentation April 25, 2022 Restricted Internal Use
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business decisions, all of
Slide 3: 1Q22 Highlights
1Q22 Highlights • 2022 EBITDA Guidance revised up 17% to US $2.283 billion • Record first quarter EBITDA of US $644 million • US $196 million dividend paid in 1Q22; 5% dividend yield • Consistent progress on 3 key directives of ALFA’s Unlocking Value process: 1. Reduce Leverage: Sustained improvemen
Slide 4: Year-over-year Revenue growth driven by Alpek and Sigma
Year-over-year Revenue growth driven by Alpek and Sigma ALFA & Subs Revenues Revenues 1Q22 vs 1Q21 Revenues 1Q22 vs 4Q21 (US $ Million) (US $ Million) (US $ Million) 4,086 4,191 3,976 3,731 3,388 1Q21 2Q21 3Q21 4Q21 1Q22 Axtel & Axtel & Others Others 4 Restricted Internal Use
Slide 5: Record first quarter Reported and Comparable ALFA EBITDA
Record first quarter Reported and Comparable ALFA EBITDA ALFA & Subs Reported EBITDA Extraordinary Items Comparable EBITDA1 (US $ Million) (US $ Million) (US $ Million) 1Q22 vs 1Q21: 20% 1Q22 vs 1Q21: 26% 1Q22 vs 4Q21: 27% 1Q22 vs 4Q21: -3% EBITDA Margin EBITDA Margin 1Q21 2Q21 3Q21 4Q21 1Q22 644 AL
Slide 6: Reported and Comparable EBITDA
Reported and Comparable EBITDA Reported EBITDA (US $ Million) 644 535 496 505 482 438 486 421 409 415 419 344 263 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Comparable EBITDA1 (US $ Million) 534 520 439 451 414 449 440 372 362 344 334 365 364 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 7: Sustained improvement in financial ratios
Sustained improvement in financial ratios ALFA & Subs ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 1,478 1,507 1,396 1,345 4,906 1,292 4,864 4,811 4,875 4,677 2.9 2.6 2.5 2.3 2.3 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 7 Res
Slide 8: ALFA Net Debt increased US $229 million versus year-end 2021
ALFA Net Debt increased US $229 million versus year-end 2021, mainly due to higher investment in Net Working Capital at Sigma and Alpek Change in Net Debt Change in Net Debt 4Q21 vs 1Q22 (US $ Million) (US $ Million) 1Q22 EBITDA 644 Net Working Capital (305) Capital Expenditures & Acquisitions (92)
Slide 9: Expense reduction outside of operating subsidiaries
Expense reduction outside of operating subsidiaries Consolidated ALFA EBITDA minus operating subsidiaries (US $ Million) 1Q21 1Q22 2019 2020 2021 2022 G -20 -42 -8 -60 -12 -71 -36% -52% Operating subsidiaries: Alpek, Sigma, Axtel and Newpek. 9 Restricted Internal Use
Slide 10: 2022 EBITDA Guidance revised up 17% to US $2.283 billion driven by Alpek
2022 EBITDA Guidance revised up 17% to US $2.283 billion driven by Alpek 2022 EBITDA Guidance 2022 EBITDA Guidance (Breakdown by Subsidiary) (Original vs Revised 1Q22) (US $ Millions) 115 2,283 219 1,949 (US $ Millions) Revised 1Q22 Original 2022 ALFA1 2,283 1,949 Alpek2 1,365 1,031 EBITDA Sigma 760
Slide 11: Foreign ownership was 52.4% of total ALFA shares at the close of 1Q22
Foreign ownership was 52.4% of total ALFA shares at the close of 1Q22 ALFA Foreign Ownership (Millions of shares) 4,905 Total ALFA Shares 1Q22 Maximum Nafinsa Trust Threshold (75%) 2,467 2,513 2,572 2,420 50.3% 49.3% 51.2% 52.4% 2Q21 3Q21 4Q21 1Q22 11 Restricted Internal Use
Slide 12: Earnings Presentation
Earnings Presentation Restricted Internal Use
Slide 13: 1Q22 Highlights
1Q22 Highlights • Highest consolidated 1Q revenues driven by Mexico, U.S., and Latam • EBITDA impacted by higher-than-expected energy and raw material costs in Europe • 2022 Guidance maintained • Formation of new Advisory Board comprised of 13 members; 62% independent • Foodservice Channel Revenue a
Slide 14: Y-o-Y revenue growth driven by Mexico, U.S., and Latam
Y-o-Y revenue growth driven by Mexico, U.S., and Latam Revenues Revenues 1Q22 vs 1Q21 Revenues 1Q22 vs 4Q21 (US $ Million) (US $ Million) (US $ Million) 1,707 1,729 1,768 1,711 1,613 1Q21 2Q21 3Q21 4Q21 1Q22 14 Restricted Internal Use
Slide 15: EBITDA impacted by higher-than-expected energy and raw material costs in Europe
EBITDA impacted by higher-than-expected energy and raw material costs in Europe EBITDA EBITDA 1Q22 vs 1Q21 EBITDA 1Q22 vs 4Q21 (US $ Million) (US $ Million) (US $ Million) 201 181 182 176 161 1Q21 2Q21 3Q21 4Q21 1Q22 15 Restricted Internal Use
Slide 16: EBITDA margin contraction in Europe; inflationary cost pressures partially mitigated
EBITDA margin contraction in Europe; inflationary cost pressures partially mitigated in other regions EBITDA Margin (%) EBITDA Margin By Region (%) 15.0 15.2 14.6 13.7 13.1 13.0 12.7 11.0 11.0 11.2 11.4 10.8 10.7 10.5 10.2 9.5 9.5 9.4 9.1 9.0 8.5 6.6 5.4 4.9 2.0 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q
Slide 17: Net leverage ratio of 2.5 times, down versus 1Q21
Net leverage ratio of 2.5 times, down versus 1Q21 Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 1,781 1,795 2.6 831 1,728 1,692 1,691 2.5 814 820 2.4 2.4 749 2.3 698 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 17 Restricted Internal U
Slide 18: Net debt up quarter-on-quarter due to seasonal investment in Net Working Capital
Net debt up quarter-on-quarter due to seasonal investment in Net Working Capital at higher prices Change in Net Debt 4Q21 vs 1Q22 (US $ Million) • Net Debt up US $103 vs 4Q21 mainly due to investment in Net Working Capital • Net Working Capital reflects seasonal inventory purchases at higher prices
Slide 19: Pork Ham Price in Europe and U.S.
Pork Ham Price in Europe and U.S. Pork Ham Price in U.S. Pork Ham Price in Europe US $/lb 2020 €/kg 2020 2021 2021 1.2 2022 3.5 2022 1.0 3.0 2.5 0.8 2.0 0.6 1.5 0.4 1.0 0.2 0.5 0.0 0.0 Feb. Apr. Jun. Aug. Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. 19 Restricted Internal Use
Slide 20: 1Q22 Recent Developments
1Q22 Recent Developments Key Highlights Foodservice Revenues - Continued Recovery (Base 100) • Growth BU • Official presentation of Better Balance® in Spain • Launched the third edition of Tastech by Sigma® • Reached 3 exclusive agreements to distribute Mexican snacks to consumers in six U.S. cities
Slide 21: Strong performance driven by better-than-expected reference margins in polyester, polypropylene and EPS
Strong performance driven mainly by better-than-expected reference margins in polyester, polypropylene and EPS Highlights Paraxylene vs Brent Crude Oil Price NA Px Contract Brent US$/Ton • Volume increased to 1.22 million tons (+4% QoQ); on track with US$/Bbl Crude Oil (Brent) Px Guidance estimates
Slide 22: OCTAL Acquisition
OCTAL Acquisition Highlights & Rationale Octal Footprint • Signed agreement to acquire OCTAL, expected closing in 2Q22 • Purchase price: US $620 million (4.6x EV/EBITDA multiple1) • Major producer of PET sheet globally Cincinnati, USA • 33 KTA Recycling Riyadh, Saudi • PET sheet with strong growth p
Slide 23: 1Q22 Revenues and EBITDA down 11% and 22%, respectively
1Q22 Revenues and EBITDA down 11% and 22%, respectively Highlights EBITDA EBITDA by Business Unit (US $ Million) (LTM: US $177 million) • Results negatively impacted by Service Infrastructure semiconductor shortage, Gov segment sales, and lower revenue from large wholesale customer 57 • Digital Tran
Slide 24: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx Restricted Internal Use