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. — Q3 2022 Earnings Presentation
24 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, Oct 20, 2022
Slide 1: 3Q22 Earnings Presentation
3Q22 Earnings Presentation October 20, 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: 3Q22 Highlights
3Q22 Highlights • EBITDA of US $454 million (+3% yoy) with Axtel as Discontinued Operations • EBITDA includes impact of US -$118 million from extraordinary items at Alpek • Alpek posted solid 3Q22 growth in Volume, Sales and EBITDA • Sigma 3Q22 Volume and Sales up 4% and 9%, respectively; EBITDA dow
Slide 4: Revenue growth driven by Alpek and Sigma
Revenue growth driven by Alpek and Sigma ALFA & Subs* Revenues Revenues 3Q22 vs 3Q21 Revenues 3Q22 vs 2Q22 (US $ Million) (US $ Million) (US $ Million) 4,709 4,856 3,952 4,069 3,839 3Q21 4Q21 1Q22 2Q22 3Q22 Others Others *Axtel reported as discontinued operations in all quarters. 4 Restricted Intern
Slide 5: 3Q22 EBITDA includes impact of US -$118 million from extraordinary items at Alpek
3Q22 EBITDA includes impact of US -$118 million from extraordinary items at Alpek; Comparable EBITDA of US $572 million is a record third quarter figure ALFA & Subs* Reported EBITDA Extraordinary Items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 3Q22 vs 3Q21: +3% 3Q22 vs 3Q21: +44
Slide 6: Reported and Comparable EBITDA
Reported and Comparable EBITDA Reported EBITDA* (US $ Million) 672 610 482 492 467 454 421 409 415 438 419 441 441 344 263 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Comparable EBITDA* (US $ Million) 534 572 496 487 439 451 372 362 365 364 371 393 396 344 334 1Q19 2Q1
Slide 7: Net Debt/EBITDA of 2.2 times at the close of 3Q22 supported by strong EBITDA
Net Debt/EBITDA of 2.2 times at the close of 3Q22 supported by strong EBITDA ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 1,507 5,406 2.5 1,392 4,906 4,830 1,345 4,875 2.3 2.3 2.3 1,292 1,272 4,677 2.2 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22
Slide 8: ALFA Net Debt decreased US $576 million during 3Q22
ALFA Net Debt decreased US $576 million during 3Q22 primarily driven by the reclassification of Net Debt from discontinued operations (Axtel) ALFA & Subs* Change in Net Debt Change in Net Debt 3Q22 vs 2Q22 (US $ Million) (US $ Million) 3Q22 EBITDA 454 Net Working Capital (100) Capital Expenditures &
Slide 9: Expense reduction outside of operating subsidiaries
Expense reduction outside of operating subsidiaries Consolidated ALFA EBITDA minus Operating subsidiaries1 (US $ Million) 3Q21 3Q22* 2019 2020 2021 YTD ‘21 YTD ’22* -19 -5 -37 -42 -60 -71 -13 -64% -48% 1 - Operating subsidiaries: Alpek, Sigma, Axtel and Newpek 9 Restricted Internal Use *Axtel report
Slide 10: Axtel to become second independent ALFA subsidiary
Axtel to become second independent ALFA subsidiary Before spin-off After spin-off ALFA ALFA ALFA Shareholders Shareholders Shareholders Controladora ALFA ALFA Axtel2 100% 82% 53.9% 100% 82% 53.9% Sigma Alpek Axtel Nemak1 Sigma Alpek Axtel Nemak1 1. ALFA´s entire share ownership in Nemak was distribu
Slide 11: Important Dates – Axtel spin-off
Important Dates – Axtel spin-off June 27 July 12 TBD TBD TBD Call to Extraordinary Extraordinary ALFA Share Distribution Controladora Axtel 1st Trading Day ALFA Shareholder Shareholder Meeting Notice to ALFA Share Distribution Meeting Shareholders Date (Spin-off approval) (Subject to CNBV approval/r
Slide 12: Foreign ownership was 52.2% of total ALFA shares at the close of 3Q22
Foreign ownership was 52.2% of total ALFA shares at the close of 3Q22 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 3Q22 Maximum Nafinsa Trust Threshold (75%) 2,420 2,513 2,572 2,516 2,467 49.3% 51.2% 52.4% 51.9% 52.2% 3Q21 4Q21 1Q22 2Q22 3Q22 12 Restricted Internal Use
Slide 13: Earnings Presentation
Earnings Presentation Restricted Internal Use
Slide 14: 3Q22 Highlights
3Q22 Highlights • Record quarterly Revenue driven by double-digit growth in Mexico, the U.S. and Latam • 3Q22 EBITDA down 14% year-on-year due to inflationary cost pressures, mainly affecting operations in Europe • Net Debt to EBITDA Ratio in line with long-term target of 2.5 times 14 Restricted Int
Slide 15: 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 3Q22 vs 3Q21 Revenues 3Q22 vs 2Q22 (US $ Million) (US $ Million) (US $ Million) 1,870 1,879 1,729 1,768 1,711 3Q21 4Q21 1Q22 2Q22 3Q22 15 Restricted Internal Use
Slide 16: Lower EBITDA due to inflationary cost pressures, mainly in Europe
Lower EBITDA due to inflationary cost pressures, mainly in Europe EBITDA EBITDA 3Q22 vs 3Q21 EBITDA 3Q22 vs 2Q22 (US $ Million) (US $ Million) (US $ Million) 201 176 172 161 151 3Q21 4Q21 1Q22 2Q22 3Q22 16 Restricted Internal Use
Slide 17: EBITDA margin contraction due to inflationary cost pressures, mainly in Europe
EBITDA margin contraction due to inflationary cost pressures, mainly in Europe EBITDA Margin (%) EBITDA Margin By Region (%) 15.0 15.2 14.6 13.7 13.1 13.0 13.2 12.4 12.7 11.0 11.0 10.8 11.2 11.4 10.5 10.7 10.5 10.2 9.5 9.5 9.4 9.2 9.1 9.0 8.7 8.1 8.0 8.5 6.6 7.8 5.4 4.9 2.0 2.3 1.6 1Q21 2Q21 3Q21 4Q
Slide 18: Net leverage ratio of 2.5 times, in line with long-term target
Net leverage ratio of 2.5 times, in line with long-term target Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 1,795 1,772 831 1,692 1,691 1,708 2.5 2.5 2.5 820 2.4 2.3 698 676 699 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 18 Restrict
Slide 19: Net debt decreased during 3Q22 supported by a Net Working Capital recovery
Net debt decreased during 3Q22 supported by a Net Working Capital recovery Change in Net Debt 3Q22 vs 2Q22 (US $ Million) • Net Debt decreased by US $64 million when compared to 2Q22 • Net Working Capital recovery was US $11 million due to a recovery in Europe and Latam, that offset strategic invest
Slide 20: Pork Ham Price in U.S. and Europe
Pork Ham Price in U.S. and Europe Pork Ham Price in U.S. Pork Ham Price in Europe US $/lb 2020 €/kg 2020 2021 2021 2022 3.5 2022 1.2 3.0 1.0 2.5 0.8 2.0 0.6 1.5 0.4 1.0 0.2 0.5 0.0 0.0 Feb. Apr. Jun. Aug. Oct. Dec. Feb. Apr. Jun. Aug. Oct. Dec. 20 Restricted Internal Use
Slide 21: 3Q22 Recent Developments
3Q22 Recent Developments Key Highlights • Liability Management • Signed agreements to secure four committed credit lines that will be used to refinance the €600 million 2024 Bond • Growth BU • Better Balance® reached 1,000+ points of sale across Spain, Mexico, and the U.S. • Tastech by Sigma® select
Slide 22: Record Volume, Sales and Comparable EBITDA in 3Q22
Record Volume, Sales and Comparable EBITDA in 3Q22 Highlights Paraxylene vs Brent Crude Oil Price NA Px Contract Brent US$/Ton US$/Bbl Crude Oil (Brent) Px 1,837 2,000 140 1,800 1,505 1,600 120 1,301 1,400 100 996 1,066 1,069 1,200 • Solid year over year growth in 3Q22 Volume (+14%), 80 891 1,000 Sa
Slide 23: 3Q22 EBITDA of US $39 million, up 12% quarter on quarter
3Q22 EBITDA of US $39 million, up 12% quarter on quarter Highlights EBITDA EBITDA by Business Unit (US $ Million) (LTM: US $149 million) Service Infrastructure • Sequential improvement in 3Q22 Revenues (+7%) and EBITDA (+12%) driven by 46 growth in both business units 40 39 • Cloud and cybersecurity
Slide 24: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx Restricted Internal Use