Grupo Bimbo SAB de CV Class A · BMV:BIMBO/A
Grupo Bimbo SAB de CV Class A — Investor Presentation (February 2017)
28 slides from Grupo Bimbo SAB de CV Class A's investor presentation, February 2017
Slide 1: Investor Presentation 2016
GRUPO BIMBO#me. Investor Presentation 2016 N
Slide 2: Control Group, Float and Market Cap key figures
Control Group: 76% Market Cap: US$11.4 bn(1) Float: 24% 2016 Revenues(2) Countries Plants Routes Sales Centers POS Associates Brands Products US$13.5 Bn 22 171 ≈55,000 ≈1,700 ≈2.7 million ≈130,000 ≈100 ≈10,000 5 YR CAGR: 4.7% 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 >$500 million dollar brands dollar brands Source: IRI & Nielsen; Retail Sales Price 8 8
Slide 9: 9
9 9
Slide 10: We are developing products and categories that lead new megatrends
We are developing products and categories that lead new megatrends 10 10
Slide 11: A Well Balanced Business
A Well Balanced Business… Revenue and Adj. EBITDA Breakdown(1) North America • Sales: 53% • EBITDA: 44% China(2) Europe Mexico • Sales: 4% • Sales: 32% • EBITDA: 1% • EBITDA: 54% Latin America • Sales: 11% • EBITDA: 1% _______________ 1. 2016 Revenues and Adj. EBITDA converted to US$ with the averag
Slide 12: …with a 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 40+ 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 13,786 14,064 13,818 13,514 1,570 13,164 1,467 1,351 1,370 10,732 1,183 1,070 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Stock Performance(2) GB 11.0% 8.1% 9.8% 9.8% 10.2% 11.6% YTD return
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 54.0 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$2 billion multi-currency revolving Extraordinary Dividends credit facility, maturing on March 2019 1,646(2) • Reinvestment as the pillar
Slide 18: Conservative Approach Towards Leverage
Conservative Approach Towards Leverage Debt Amortization Profile(1) Currency Mix US$ millions % Total Debt: US$3,858 mm Avg. Tenor: 8.3 yrs. Avg. Cost: 4.5% 10% 4% 162 23% 63% 800 800 800 500 387 242 167 2017 2018 2019 2020 2021 2022 2023 2024 2026 ... 2044 Local Bonds Bank Loans Foreign Bonds CAD E
Slide 19: Conservative Approach Towards Leverage
Conservative Approach Towards Leverage Track Record of Deleveraging Total Debt/ Adj. EBITDA BBB Rating 3.3x(1) 3.2x(2) 3.1x 3.0x 2.9x 2.9x 2.5x 2.3x 1.9x 2.3x 2.2x 1.5x 1.1x 1.2x 1.1x 0.9x 0.7x 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012 2013 2014 2015 2016 ____________ 1. Pro
Slide 20: 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 21: Annex: Financial Results by Region
Annex: Financial Results by Region 21
Slide 22: Grupo Bimbo
Grupo Bimbo Revenue Growth(1) Higher sales in all regions MXN millions Solid organic growth in 4Q16 4Q15 % Change Net Sales 2016 2015 % Change Mexico 68,862 59,519 15.7 Grupo Bimbo 252,141 219,186 15.0 FX benefit Donuts Iberia acquisition Adj. EBITDA Lower raw material costs in MXN million
Slide 23: Mexico
Mexico Revenue Growth(1) MXN millions 4Q16 4Q15 % Change Net Sales 2016 2015 % Change Healthy performance across all channels and almost all 21,670 19,692 10.0 Mexico 82,386 76,295 8.0 categories Sweet baked goods category continued its positive trend Adj. EBITDA Salty snacks business’ sales M
Slide 24: North America
North America Revenue Growth(1) MXN millions FX benefit 4Q16 4Q15 % Change Net Sales 2016 2015 % Change Growth in strategic brands 36,965 32,796 12.7 North America 135,219 116,399 16.2 Pressure in non-branded Challenging competitive market environment Adj. EBITDA MXN millions Lower raw materia
Slide 25: Latin America
Latin America Revenue Growth(1) MXN millions Notable performance in 4Q16 4Q15 % Change Net Sales 2016 2015 % Change Chile, Peru and Latin Centro Division 8,020 6,406 25.2 Latin America 29,100 24,272 19.9 Challenging economic conditions and currency volatility in some markets Adj. EBITDA MXN millio
Slide 26: Europe
Europe Revenue Growth(1) MXN millions 4Q16 4Q15 % Change Net Sales 2016 2015 % Change Donuts Iberia acquisition 3,884 1,926 >100 Europe 11,676 7,560 54.4 FX rate benefit Improved volume trends Adj. EBITDA MXN millions 4Q16 4Q15 % Change Adj. EBITDA 2016 2015 % Change Lower raw material costs
Slide 27: Thank You! ¡Gracias!
THANK YOU! ¡GRACIAS! #ConElCariñoDeSiempre www.grupobimbo.com/ir [email protected] 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