Gruma Sab De Cv Class B · BMV:GRUMA/B
Gruma Sab De Cv Class B — Investor Presentation (2024)
27 slides from Gruma Sab De Cv Class B's investor presentation, 2024
Slide 1: Investor Presentation 1st Quarter 2024
Investor Presentation 1st Quarter 2024
Slide 2: GRUMA is the World's Largest Corn Flour and Tortilla Producer with a Global Reach
GRUMA is the World´s Largest Corn Flour and Tortilla Producer with a Global Reach Sales US$6.6 Bn Plants 74 Mkt Cap2 US$6.8 Bn 2023 Approximately EBITDA1 US$1,006 mm Employees Float 49% 24,100 Gruma Gruma Asia Gruma USA GIMSA Gruma Europe Footprint Centroamérica & Oceania ▪ Tortilla ▪ Corn flour ▪ T
Slide 3: Strong Brand Awareness and Consumer Loyalty
Strong Brand Awareness and Consumer Loyalty Division Brands Products Mkt Position Tortilla 1 Gruma USA Tortilla Corn flour GIMSA Corn flour MISSION Mx Tortilla Gruma Europe Tortilla 2 Corn flour 1 Gruma Centroamérica Tortilla 1 Tortilla 2 Gruma Asia & Oceania Tortilla 3
Slide 4: Driving Growth and Innovation in Health–Oriented Consumer Segments
Driving Growth and Innovation in Health–Oriented Consumer Segments Health – Oriented Consumer Trend ▪ Consumer awareness for healthier food has increased ▪ Consumers replacing breads with wraps popularity for alternatives in typical dishes and snacks ▪ Increased popularity of healthier snack options
Slide 5: New Launches, Dynamic Merchandizing Enhance Sales of Value-Added Higher Margin Products
New Launches, Dynamic Merchandizing Enhance Sales of Value-Added Higher Margin Products WW Chia & WW sprouted WW Pita quinoa wrap wrap WW carb Organic corn balance street Flatbread tortilla chips tacos Low-calorie corn tortillas 5
Slide 6: Consistent Growth in Net Sales and Profitability Driven by Continuous Innovation
Consistent Growth in Net Sales and Profitability Driven by Continuous Innovation with a Global Reach… Volume (thousands of metric tons) Volume 20´- ´24 CAGR 1% Net Sales and EBITDA (millions of US$) Net Sales 20´ - ´24 CAGR 243.3 230.2 11% 186.8 195.2 175.0 168.0 EBITDA 20´- ’24 CAGR 10% Net Sales E
Slide 7: A Healthy Capital Structure Reflects a Disciplined Approach to Debt Management
…While a Healthy Capital Structure Reflects a Disciplined Approach to Debt Management Debt (Millions of US$) 1,981 1,897 1,902 1,486 1,511 Leases Debt Net Debt / EBITDA (times) 7
Slide 8: Healthy Debt Maturity Profile, Dollar-Denominated, Backed by U.S. Operations
The Company Enjoys a Healthy Debt Maturity Profile, Where 73% of Debt is Dollar-Denominated, Backed by its U.S. Operations Debt Outstanding Maturity Schedule 1 (US$ mm) Debt by Currency Composition (As of March 31, 2024) Rate 2024 2025 2026 2027 2028 2029 Total Senior Notes 2024 Fixed 4.875% 400.0 4
Slide 9: GRUMA Keeps Improving its Results, with Higher-Cash Generation
GRUMA Keeps Improving its Results, with Higher-Cash Generation …. 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 1,852 2.0% 1,500 1.5% 1,000 865 49% 51% 692 1.0% 500 0.5% 0 0.0% 2015 2016 201
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 the Leading Corn Flour and Tortilla Producer
Gruma USA is the Largest Subsidiary and the Leading Corn Flour and Tortilla Producer in the United States… Plant Distribution Map Business Description Summary 2023FY Net Sales Fife, WA US$3.6 Bn McMinnville, OR New Brighton, MN Hayward, CA Madera, CA Omaha, NE Fresno, CA Evansville, IN Panorama City
Slide 13: Clear and Solid Drivers of Growth in Both of our Main Markets in the United States
…With Clear and Solid Drivers of Growth in Both of our Main Markets of Focus in the United States Estimated Markets for Strong Growth of the Hispanic Population Tortilla and Flour in the U.S. ▪ 20.5% of total U.S. population, out of which 60% are Mexican1 Tortilla / tortilla chips Corn flour Strong
Slide 14: Greater Brand Awareness and Richer Product Mix Improved Volumes and Profitability
Greater Brand Awareness, in Addition to a Richer Product Mix, Has Resulted in Improved Volumes and Profitability Volume (thousands of metric tons) Volume 20’- ’24 CAGR 1% Net Sales and EBITDA (millions of US$) 428.2 Net Sales 20´- ‘24 CAGR 460.1 445.2 353.0 10% 317.3 310.6 EBITDA 20´- ’24 CAGR 11% N
Slide 15: Gruma USA Expects Continued Margin Improvement Based Principally on:
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 GRUMA's Second Largest Subsidiary and the Leader of the Corn Flour Industry 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 2023FY Net Sales Mexicali US$2.0 Bn(1) Chihuahua Obregón Culiacán Nuevo León GIMSA Río Bravo La Paz Acaponeta Bajío Tampico Mérida Jalisco * México Verac
Slide 18: GIMSA's Stable Volume Generation Has Given GRUMA a Strong Foundation
GIMSA’s Stable Volume Generation Has Given GRUMA a Strong Foundation for Its Global Operation Volume (thousands of metric tons) Volume 20’- ´24 CAGR 0% Net Sales and EBITDA 1 (millions of US$) Net Sales 20- ‘24 CAGR 104.0 102.3 102.0 9% 88.0 77.2 EBITDA 20´- ’24 CAGR (3)% Net Sales EBITDA EBITDA/ton
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 the Company's Third Largest Subsidiary, Focused Mainly on Tortilla Business
Gruma Europe is the Company’s Third Largest Subsidiary, Focused Mainly on the Tortilla Business Plant Distribution Map Business Description Summary 2023FY Net Sales US$435mm Mission Foods Azteca Milling 75% of Revenues 25% of Revenues 6 Plants in Europe 3 Mills in Europe ▪ England (2) ▪ Italy ▪ Russ
Slide 22: Growth Potential for European Tortilla Market Supported by Three Main Consumer Trends
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 1 Popularity of Mexican Foo
Slide 23: Strong Brand Awareness and Product Quality Have Supported Volumes and Profitability
Incrementally Strong Brand Awareness and GRUMA´s Product Quality Have Supported Volumes and Profitability Volume (thousands of metric tons) Volume 20’- ’24 CAGR 1% Net Sales and EBITDA (millions of $US) Net Sales 20’-‘24 CAGR 105.7 97.9 11% 87.1 91.0 54.8 EBITDA 20´- ’24 CAGR 60.9 4% Net Sales EBITD
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 Desiree Gómez Investor Relations Senior Analyst desireeg561@gruma.com Tel: +52.81.8399.3349