Grupo Bimbo Sab De Cv Class A · BMV:BIMBO/A
Grupo Bimbo Sab De Cv Class A — Q2 2016 Earnings Presentation
28 slides from Grupo Bimbo Sab De Cv Class A's earnings presentation, July 2016
Slide 1: Investor Presentation Second Quarter 2016
Investor Presentation Second Quarter 2016
Slide 2: Control Group, Float and Market Cap Overview
Control Group: 76% Market Cap: US$14.1 bn(1) Float: 24% LTM 2Q’16 Revenues(2) Countries Plants Routes Sales Centers POS Associates Brands Products US$13.6 Bn 22 163 ≈53,000 ≈1,600 ≈2.6 million ≈128,000 ≈100 ≈10,000 5 YR CAGR: 4.2% North America Mexico Latin America Europe Asia U.S. Canada __________
Slide 3: Where do we stand?
Where do we stand? • A Global Consumer Products Company and the leader in the baking industry space • Remarkable growth story with financial stability • Investments on manufacturing and logistics capabilities targeted to foster productivity • Unyielding discipline on a conservative financial policy
Slide 4: Successful growth story
Successful growth story Frozen Argentina Long term view and a strict reinvestment policy 2016 Innovation and execution continue to drive organic growth 2015 Acquisitions have been a key component to gain global reach 2014 Leadership position in both, mature and high growth markets 2011 Acc
Slide 5: Our Vision
In2020.— we transform =" | the baking industry and. expand.our — global leadership to better serve more consumers.
Slide 6: Key Capabilities
KEY CAPABILITIES DELICIOUS AND NUTRITIOUS BAKED GOODS AND SNACKS IN THE HANDS OF ALL. OUR ASSOCIATES’ ENGAGEMENT AND COMMITMENT TO OUR VISION ENDURING MEANINGFUL BRANDS UNIVERSAL PRESENCE WITH SUPERIOR EXECUTION WINNING INNOVATION IN PRODUCTS AND PROCESSES OUR CULTURE OF CONTINUOUS | "IMPROVEMENT
Slide 7: Seasoned management team and sound governance
Seasoned management team and sound governance Management Daniel Servitje Chairman of the Board • Positioned the Company as market leader in the products and countries where present • Proven track record of stability and sustainable growth Audit Committee and Results and Evaluation Finance & Planning
Slide 8: Strong Power Brands
Strong Power Brands 4 Billion 3 >$500 million dollar brands dollar brands Source: IRI & Nielsen; Retail Sales Price 8 8
Slide 9: 9
9 9
Slide 10: We are developing products and categories that lead new megatrends
We are developing products and categories that lead new megatrends 10 10
Slide 11: A Well Balanced Business
A Well Balanced Business… Revenue and Adj. EBITDA Breakdown(1) North America • Sales: 54% • EBITDA: 45% China(2) Europe Mexico • Sales: 3% • Sales: 33% • EBITDA: -1% • EBITDA: 54% Latin America • Sales: 10% • EBITDA: 2% _______________ 1. June 30, LTM Revenues and EBITDA converted to US$ with the av
Slide 12: Strong leadership position in each market
…with a strong leadership position in each market North America U.S. Canada • Leader nationwide • #1 in buns & rolls • #1 in premium brands • #1 in breakfast China(1) • #1 in English muffins • #2 in bread • Pioneer in developing • Strong regional brands packaged baked goods in Beijing and Tianjing M
Slide 13: Exceptional manufacturing capabilities
Exceptional manufacturing capabilities 60+ Focus in low-cost State-of-the-art facilities million pieces are manufacturing and produced daily in all of our markets efficiency 13 13
Slide 14: World class distribution
World class distribution 79+ Guarantees quality Exceptionally serves all of Commitment to Trips around the Earth and freshness its distribution channels local execution daily 14 14
Slide 15: Strong financial performance
Strong financial performance Revenue Growth(1) Adj. EBITDA Growth(1) US$ millions US$ millions 1,467 1,505 13,786 14,064 13,818 13,466 1,351 1,370 13,164 1,183 10,732 1,070 2011 2012 2013 2014 2015 LTM 2Q16 2011 2012 2013 2014 2015 LTM 2Q16 Stock Performance(2) GB 11.0% 8.1% 9.8% 9.8% 10.2% 11.2% YT
Slide 16: Cash flow stability across time allows long term planning
Cash flow stability across time allows long term planning Margins Evolution, % EBIT Margin Adj. EBITDA Margin Gross Margin 56.2 56.7 53.3 54.8 53.7 53.3 54.0 53.4 53.3 53.8 53.1 53.0 52.8 52.8 52.8 52.3 53.0 51.2 51.1 51.0 50.7 48.6 47.9 Integration/transformation efforts & IFRS 13.0 13.5 13.8 13.7
Slide 17: Responsible financial policies
Responsible financial policies • Commitment to a strong Balance Sheet Dividend History MXN millions • Ongoing financial flexibility through a Ordinary Dividends US$2 billion multi-currency revolving Extraordinary Dividends credit facility, maturing on March 2019 1,646(2) • Reinvestment as the pillar
Slide 18: Conservative approach towards leverage
Conservative approach towards leverage Debt Amortization Profile(1) Track Record of Deleveraging US$ millions Total Debt/ Adj. EBITDA BBB Rating Total Debt: US$3,811 mm Avg. Tenor: 8.1 yrs. Avg. Cost: 3.9% 3.3x(2) 3.2x(3) 190 3.1x 3.0x 2.9x 2.8x 2.5x 2.3x 1.9x 2.3x 2.2x 800 800 800 1.5x 1.1x 1.2x 1.
Slide 19: Recent Acquisition
Recent Acquisition Producer of sweet baked goods and buns & rolls in Spain and Portugal • Revenue growth of ≈70% in Strong the region Brand • Synergies of €(40 – 50) Equity million(1) • Integration expenses: ≈€70 million • High single digit pro-forma EBITDA margin(1) (1) Expected to be achieved in 3
Slide 20: Recent Acquisition: Focus on Profitability
Recent Acquisition FOCUS ON PROFITABILITY + 20 20
Slide 21: Annex: Financial Results by Region
Annex: Financial Results by Region 21
Slide 22: Grupo Bimbo
Grupo Bimbo Revenue Growth(1) MXN millions Higher sales in all regions 2Q16 2Q15 % Change Net Sales 6M16 6M15 % Change Solid organic growth in Mexico 60,626 53,267 13.8 Grupo Bimbo 117,202 103,315 13.4 FX benefit Adj. EBITDA Lower raw material costs in MXN millions North America and Europe
Slide 23: Mexico
Mexico Revenue Growth(1) MXN millions Healthy performance across 2Q16 2Q15 % Change Net Sales 6M16 6M15 % Change all channels and almost all categories 19,962 18,631 7.1 Mexico 39,906 37,455 6.5 Sweet baked goods category reversed its past negative trend Adj. EBITDA Solid consumption MXN milli
Slide 24: North America
North America Revenue Growth(1) MXN millions FX benefit 2Q16 2Q15 % Change Net Sales 6M16 6M15 % Change Growth in strategic brands 33,613 28,307 18.7 North America 63,794 53,242 19.8 Pressure in non-branded Challenging competitive market environment Adj. EBITDA MXN millions Lower raw material
Slide 25: Latin America
Latin America Revenue Growth(1) MXN millions Notable performance in 2Q16 2Q15 % Change Net Sales 6M16 6M15 % Change Brazil, Peru and Latin Centro Division 6,449 5,864 10.0 Latin America 12,439 11,637 6.9 New product launches Challenging economic conditions and currency Adj. EBITDA volatility in
Slide 26: Europe
Europe Revenue Growth(1) MXN millions FX rate benefit 2Q16 2Q15 % Change Net Sales 6M16 6M15 % Change Pressure in the bread 2,116 1,858 13.9 Europe 4,139 3,643 13.6 category A more competitive environment Adj. EBITDA MXN millions Lower raw material costs 2Q16 2Q15 % Change Adj. EBITDA 6M16 6M15
Slide 27: Thank You! ¡Gracias!
THANK YOU! ¡GRACIAS! #ConElCariñoDeSiempre www.grupobimbo.com/ir ir@grupobimbo.com 27
Slide 28: Disclaimer
The information contained herein has been prepared by Grupo Bimbo, S.A.B. de C.V. (the “Company") solely for use at this presentation. This presentation does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securities and shou