Grupo Bimbo Sab De Cv Class A · BMV:BIMBO/A
Grupo Bimbo Sab De Cv Class A — Investor Presentation (April 2011)
40 slides from Grupo Bimbo Sab De Cv Class A's investor presentation, April 2011
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 1Q 2011, April
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 103 production facilities across 17 countries 42,000+ 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$ 9.9 billion (2) Shares outstanding: 4,703.2 million, one class (A) Index component (Mexi
Slide 4: Company Overview (cont'd)
Company Overview (cont’d) Revenues LTM 1Q11 US $9,483 million(1) Operating Countries 12% United States 40% of Sales 48% 34 Plants 40% Beijing Mexico (2) United States Central & South America Mexico 48% of Sales EBITDA LTM 1Q11 US$1,213 million(1) 42 Plants China (2) 4% <1% of Sales 2 Plant 33% 63% C
Slide 5: Accelerated International Expansion
Grupo Bimbo’s Growth Path Key Milestones Successful growth story through a combination of organic growth, strategic acquisitions and a conservative financial policy 2010 Accelerated International Expansion Grupo Bimbo acquired Weston Foods, Inc., becoming the largest baked goods company in the Uni
Slide 6: Grupo Bimbo's Growth Path
Grupo Bimbo’s Growth Path Recent Growth Story Revenue Growth (1) (US$ in millions) 9,484 9,274 8,629 Top-line growth at least twice GDP 7,375 Aggressive new product launches to meet 6,615 5,835 consumer demand 5,151 Search for growth by category and regions in which we compete 2005 2006 2007 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: One of the 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 9,484 9,349 7,609 2,832 2,770 2,574 1,576 Grupo Bimbo is the #1 bakery company in the world, based on total revenues* Figures for LTM 1Q 2011 Bimbo LTM figures as of March 31, 2010 Kraft´s biscuit business represents approximately 19% of
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 1.8 million points of sale daily or every other day 1,000+ distribution centers 42,000+ routes 36,000+ fleet Relentless strengthening the reach and efficiency of our distribution network High distribution expertise for each channel se
Slide 16: Strong 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 17: Committed to your Health
Commited to your Health Aligned to the WHO(1) Global Strategy on Diet Physical Activity and Health NUTRITIONAL INFORMATION REFORMULATION & INNOVATION • Since 2009, all of our products have front labels with nutritional information • Since 2010, 100% of our products are trans fat free • 1,300 out of
Slide 18: Committed to the Environment
Commited to the Environment In 2009 • Electricity • -6.4% Mexico During 2009 • -4.5% US • -9.0% emissions • -5.0% OLA • Increased 5.4% the efficiency per mile of our vehicles • Thermal Energy • -9.1% Mexico • -5.8% US • In 2009 • Mexico • -9.0% of waste During 2009 • recycled the 84% of the • Reused
Slide 19: Financials
# \ Grupo ww, BIMBO Financials
Slide 20: Strong Financial Performance…
Strong Financial Performance… Revenue Growth (1) EBITDA Growth (1) (US$ in millions) (US$ in millions) EBITDA Margin 9,274 9,484 8,629 1,173 1,224 1,213 7,375 6,615 5,835 880 5,151 791 660 712 2005 2006 2007 2008 2009 2010 LTM 2005 2006 2007 2008 2009 2010 LTM Latin America U.S. Mexico 12.8% 12.2% 1
Slide 21: GB - Quarterly Highlights
GB - Quarterly Highlights Revenue Growth (GB) EBITDA Growth (GB) (MXN$ in millions) (MXN$ in millions) 117,163 3.5% 14.5% 30,431 13.2% 13.2% 12.6% 12.5% 29,562 29,312 28,781 11.0% 15,468 28,293 3,220 4,293 4,002 3,569 3,598 0 0 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 4Q 2010 EBITDA '10 EBITDA '11 Sales '10 Sales
Slide 22: Mexico - Quarterly Highlights
Mexico – Quarterly Highlights Revenue Growth (Mexico) EBITDA Growth (Mexico) (MXN$ in millions) (MXN$ in millions) 7.2% 19.6% 57,870 18.6% 15,331 16.6% 15,075 14,300 14,440 14.0% 14.0% 14,055 12.9% 9,628 1,972 2,687 2,957 2,009 1,974 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 4Q 2010 EBITDA '10 EBITDA '11 Sales '10
Slide 23: USA - Quarterly Highlights
USA - Quarterly Highlights Revenue Growth (USA) EBITDA Growth (USA) (MXN$ in millions) (MXN$ in millions) 11.8% 11.9% 47,875 11.4% 10.9% -3.6% 10.7% 8.4% 12,202 12,163 12,075 11,434 5,197 11,017 1,180 1,346 1,449 1,388 1,015 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 4Q 2010 Sales '10 Sales '11 EBITDA '10 EBITDA '11
Slide 24: OLA - Quarterly Highlights
OLA - Quarterly Highlights Revenue Growth (OLA) EBITDA Growth (OLA) (MXN$ in millions) (MXN$ in millions) 6.4% 6.3% 5.4% 4.6% 15.3% 14,207 1.7% 1.1% 3,999 3,690 3,656 3,199 3,258 660 204 229 65 176 45 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 4Q 2010 Sales '10 Sales '11 EBITDA '10 EBITDA '11 EBITDA margin '10 EBITD
Slide 25: 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 Δ% 170% 69% 28% -22% -15% -6% -12% 19% -14% 27% 7% -12% 14% 32% 79% -31% -15% 59% 7% 60.0 Wheat prices 90 $US/bushel 4
Slide 26: … and Responsible Financial Management
… and Responsible Financial Management Highlights Leverage Total Debt/ EBITDA Achieve rapid deleveraging – a top priority - Net Debt/ EBITDA Prepaid US$ 400 million during the last 12 months 2.3x 2.2x 2.2x Refinanced US$ 800 million of 2012 obligations using proceeds of the recently concluded se
Slide 27: Responsible and Proactive Financial Management
Responsible and Proactive Financial Management (March 2010) Debt Structure and Maturity Profile (March 31, 2011) Average Life: 4.9 yrs 222 800 444 418 418 222 63 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Local Bonds Tranche B - 5yr International Bonds Financial flexibility is highly val
Slide 28: Financial Summary
Financial Summary (March 2010) Debt Structure (US$ millions) 800 888 2,586 898 898 898 Local 1 Bonds Long- Term 2 Debt 144-A 3 4 Total US$ Denominated Instrument Amount Currency Average Life 34% (US$ millions) Bank Facilities 888 MXN – USD 2 years 66% Bonds 1,698 MXN – USD 6.5 years MXN$ Denominated
Slide 29: Sara Lee North American Fresh Bakery Acquisition
Sara Lee North American Fresh Bakery Acquisition November 9, 2010 29
Slide 30: Transaction Overview
Transaction Overview Grupo Bimbo acquires: North American Fresh Bakery Division of Sara Lee Corporation (“Sara Lee NAFB”) Royalty-free perpetual license to the Sara Lee® brand in fresh bakery category and select geographies Purchase price: enterprise value of US$959 million Identified syne
Slide 31: Grupo Bimbo's Pro Forma Mix
Grupo Bimbo’s Pro Forma Mix Current Mix Pro Forma Mix LTM Q3 2010 Net Sales: US$9.1 billion LTM Q3 2010 Net Sales: US$11.1 billion LatAm LatAm +23% Growth 12% 10% Mexico Mexico 38% 47% U.S. 41% U.S. 52% LTM Q3 2010 EBITDA: US$1.3 billion LTM Q3 2010 EBITDA: US$1.4 billion LatAm LatAm +8% Growth 5% 5
Slide 32: Transaction Maintains Grupo Bimbo's Strength And Flexibility
While Generating Value To Shareholders, Transaction Maintains Grupo Bimbo’s Strength And Flexibility Grupo Bimbo Leverage Ratio Evolution (a) Total Debt/EBITDA 3.3x 2.6x 2.3x 2.2x 1.5x 1.2x 1.1x 0.7x (b) 2004 2005 2006 2007 2008 PF 2009 2010 2010 PF ____________________ a) Assuming the acquisition i
Slide 33: Sara Lee Fresh Bakery: An Attractive Acquisition
Sara Lee Fresh Bakery: An Attractive Acquisition Advances BBU’s Strategic Objectives Scale: a leading U.S. baked-goods player Complementary Brand Portfolio Complementary Geographic Footprint Combination provides nationwide manufacturing and distribution Significant cross-selling opportu
Slide 34: Bimbo Bakeries USA (BBU)
Bimbo Bakeries USA (BBU) Business Overview Brand Portfolio 34 Bakeries 8,500 routes 15,000 associates Net Revenues EBITDA (US$ in billions) (US$ in millions) EBITDA Margin $3.7 $3.8 $425 $436 $1.6 $47 2008 2009 LTM 2008 2009 LTM 2.9% 11.5% 11.6% Grupo Bimbo LTM as of Q310 Converted to US$ usin
Slide 35: Sara Lee NAFB
Sara Lee NAFB Business Overview Brand Portfolio 41 Bakeries 4,700 Routes 13,200 employees Net Revenues EBITDA (US$ in billions) (US$ in millions) EBITDA Margin $2.1 $132 $2.1 $2.0 $122 $108 FY2009 FY2010 LTM FY2009 FY2010 LTM 5.7% 6.4% 5.3% ____________________ Figures include the additional b
Slide 36: BBU / Sara Lee NAFB Combination
BBU / Sara Lee NAFB Combination Business Combination US$ Pro Forma LTM Net Revenues (US$ BN) $3.8bn $2.0bn $5.8bn LTM Adjusted EBITDA (US$ MM) $436 $108 $544 Margin (%) 11.6% 5.3% 9.4% Routes 8,500 4,700 13,200 Associates 15,000 13,200 28,200 36
Slide 37: Transaction Further Enhances BBU's Portfolio With Well-Recognized Brands
Transaction Further Enhances BBU’s Portfolio With Well-Recognized Brands Super Premium/ Variety Premium Sandwich/ White Regional/ Mass Specialty Ethnic Hispanic 37 37
Slide 38: Complementary Footprint Allowing For Value-Creation
Complementary Footprint Allowing For Value-Creation National Footprint Value Creation Opportunity Sales & Distribution - Depot and distribution optimization Manufacturing - Potential for plant restructuring Purchasing - Savings through scale Overhead Rationalization Sara Lee: 41 BBU: 34 38 3
Slide 39: Grupo Bimbo's And BBU's Focus Will Remain On Execution
Grupo Bimbo’s And BBU’s Focus Will Remain On Execution Orderly integration Technology systems to drive growth and productivity Volume growth Innovation - meet consumer demands Focus on Core products Fill in the white space Customer Alignment Investment to lower costs and drive effici
Slide 40: 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