Grupo Nutresa S.A. · BVC:NUTRESA
Grupo Nutresa — Investor Presentation (April 2016)
44 slides from Grupo Nutresa's investor presentation, Apr 29, 2016
Slide 1: Grupo Nutresa S.A. Corporate Presentation
Grupo Nutresa S. A. Corporate Presentation A future together 29 April 2016
Slide 2: Scale, business model pillars
SCALE BUSINESS MODEL PILLARS ONE OF THE PEOPLE 4Q15 Includes Grupo El Corral LARGEST FOOD COMPANIES IN 45K 12,6K 38 % OF SALES AMERICA MARKET CAP OF EMPLOYEES OUTSIDE COLOMBIA OUTSIDE BRANDS COLOMBIA 11,5 ~ 3,6 1,1 USD billion COP trillion 2015 EBITDA MARGIN USD billion 12,3% 17 BRANDS SELL 61 % CON
Slide 3: Corporate Structure
Corporate Structure Retail Cold Cuts Biscuits Chocolates TMLUC* Coffee Ice Cream Pasta Food * TMLUC = Tresmontes Lucchetti International sales and distribution network 3
Slide 4: Significant Expansion
Significant Expansion 1,7 USD BILLION Since 2000 INVESTED IN 19 SUCCESSFUL ACQUISITIONS Colombia Colombia Costa Rica Puerto Rico Costa Rica Panama & Nicaragua Colombia Colombia Colombia Colombia Colombia Malaysia Panama Mexico Chile 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 5: Sales by Region, March 2016
Sales by Region, March 2016 USA 9,3% MEXICO DOMINICAN REP. 3,3% & CARIBBEAN 1,6% CENTRAL AMERICA VENEZUELA 10,1% 3,3% 59,5% ECUADOR 1,3% COLOMBIA 40,5% COLOMBIAN 59,5% INTERNATIONAL SALES SALES PERU 1,6% OTHER COUNTRIES CHILE 1,3% 8,6% 5
Slide 6: Market share Colombia + TMLUC
Market share Colombia + TMLUC Consolidated market share in Colombia: 61,2% +0,4% Cold Cuts Biscuits Chocolates Coffee TMLUC Ice Cream Pasta Retail Food 73,7% 56,1% Chocolate confectionery Roast and ground coffee (A) ICB* 62,5% (A) ICE CREAM ND 51,9% # 1 in Hamburguers +0.6% +0.7% 67,5% (A) 53,9% -0,
Slide 7: Business Model: Distribution
Business Model: Distribution +11.700 Sales by channel Grupo Nutresa VENDORS 4% Institutional 52% Traditional (Mom-and-pop Stores) 5% / Independent Industrial Retail Stores 6% Retail food 24% 9% Supermarket Chains Alternative +1,2MM POINTS OF SALE 7
Slide 8: 2015 sales by business units
2015 sales by business units TOTAL SALES BY 3% BUSINESS UNIT 6% 24% 7% COLD CUTS $7.945 11% $6.462 BISCUITS 20% CHOCOLATES 11% 16% TMLUC** 3% EBITDA BY BUSINESS UNIT 6% 23% COFFEE 10% 12,3% 10% $976 RETAIL FOOD $12,9% $836 19% ICE CREAM 13% 16% PASTA 6% INTERNATIONAL SALES 30% 11% BY BUSINESS UNIT U
Slide 9: M&A Strategy
M&A Strategy STRATEGIC REGION OUR TARGET STRATEGY • Current or new categories with a promising strategic fit • Acquisition processes respectful of existing culture and people • We prefer control • Excellent management teams • Leader brands • High value added and differentiated products • Solid and s
Slide 10: Main Strategic Goal
Main Strategic Goal STRATEGY FOR OUR FIRST CENTURY 1920-2020 “sales Our Centennial strategy aims to double our 2013 by 2020; with sustained profitability between 12% and 14% of the EBITDA margin. To achieve this, we offer our consumers foods and experiences of recognized and beloved brands, that nou
Slide 11: Business Risk
Business Risk Commercial Risk Financial and Operating Risks Reputation Risk Aggressive Moderate None PRINCIPAL RISKS MITIGATING FACTORS Volatility in prices of raw • Hedging policies, with levels of risk clearly defined and administered by a materials specialized committee • A highly trained team de
Slide 12: Corporate Governance
Corporate Governance BOARD OF DIRECTORS 1 Antonio Mario Celia Martínez – Aparicio 2 Mauricio Reina Echeverri 3 Jaime Alberto Palacio Botero 4 Cipriano López González 5 David Emilio Bojanini García 6 Gonzalo Alberto Pérez Rojas 7 María Clara Aristizábal Restrepo FINANCE, AUDIT AND CORPORATE GOVERNANC
Slide 13: Shareholder Base
Shareholder Base 35,5% 460.123.458 Ordinary shares 32,3% Other +14K listed in Colombia | ADR level 1 Ticker BVC: NUTRESA SHAREHOLDERS ADR: GCHOY 9,8% $3.442 COP mm Last 12 months ADTV 15,5% Other funds 6,8% Foreign Investors 13
Slide 14: Annexes
ag) Annexes Grupo nutresa
Slide 15: Differentiating Aspects of our Business Model
Differentiating Aspects of our Business Model Our People Our Brands Our Distribution Network Human talent is one of our most Our brands are leaders in the An extensive network valuable assets. Our corporate markets in which we do supported by exclusive culture thrives on promoting a business. They a
Slide 16: Business Model: People
Business Model: People Our people Human talent is one of our most valuable assets. Our cultural platform is supported by promoting participation environments, developing skills of being and doing, awarding the people and building a brand of leadership, as well as a balanced life for the people. Orga
Slide 17: Business Model: Brands
Business Model: Brands Cold cuts Biscuits Chocolates TMLUC Coffee Retail Food Ice Cream Pasta 17
Slide 18: Business Model: Brands
Business Model: Brands Portfolio of 157 brands 17 brands selling over USD$50 MM 22 brands with #1 market share in key markets 44 brands with over 20years of existence 28 present in more brands than one market 18
Slide 19: International Expansion Model
International Expansion Model Vision • Market expansion in the strategic Internationalization strategies region – diversification of • Our own international distribution destinations • Creation of the brand • Long–term objectives • Acquisitions–productive platforms • Autonomy and strategic coherence
Slide 20: International Phases
International Phases Our Own Productive Exports Partnership Distribution Platform Definion of the strategic Acquisitions in Exportable region based on the strategic region surpluses First steps “competitiveness” Creation of Cordialsas Free – trade agreements Sales by Knowledge distributors of new ma
Slide 21: Corporate Philosophy and Performance
Corporate Philosophy and Performance 21
Slide 22: Sustainable Growth
Sustainable Growth El Reconocimiento Emisores – IR otorgado por la Bolsa de Valores de Colombia S.A. no es una certificación sobre la bondad de los valores inscritos ni sobre la solvencia del emisor 22
Slide 23: Increasing Value Generation
Increasing Value Generation LAST 10 YR Total Sales evolution 9.000 13,2% MILLION PESOS 8.000 CAGR 7.000 3.030 International 6.000 5.000 2.026 2.258 20,9% 1.511 CAGR 4.000 1.561 1.496 1.226 1.116 Local Market (Colombia) 3.000 871 629 4.916 2.000 454 3.092 3.233 3.496 3.795 3.872 4.204 10,3% 2.578 2.8
Slide 24: Adjusted Multiple
Adjusted Multiple TRM dic-31/2015 $ 3.149,47 Share price (US$) $ 7,18 Precio (COP$) $ 22.620 Shares outstanding (MM) 460 Acciones en circulación (MM) 460 Market cap (US billions) $ 3,30 Capitalización de mercado (COP Billones) $ 10,41 3 Mo. ADTV (US millions) $ 1,35 3 Meses volumen promedio transado
Slide 25: Multiples as of December 31, 2015
Multiples as of December 31, 2015 Closing price 22.620 Dividend yield (2) 2,0% Closing price 12 months prior 28.600 Price change (2) -20,9% Max. 52 Weeks 28.600 Total return (2) -19,5% Min. 52 Weeks 18.800 Change in COLCAP (2) -23,7% Market cap. (COPMM) 10.407.993 Return on assets (1) 8,4% Book valu
Slide 26: Consolidated net debt
Consolidated net debt 3.500 3.000 COP Billion 2.863 2.872 2.923 2.500 2.714 2.808 2.000 1.500 1.749 1.581 1.000 978 500 486 399 0 dic/10 dic/11 dic/12 dic/13 dic/14 mar/15 jun/15 sep/15 dic/15 mar/16 RATIO dic-10 dic-11 dic-12 dic-13 dic-14 mar-15 jun-15 sep-15 dic-15 mar-16 Net debt / EBITDA 1,82 0
Slide 27: Debt Profile as 1Q16
Debt Profile as 1Q16 FINANCIAL OBLIGATIONS - MARCH 2016 Debt by Currency (5) Current Debt by Interest Rate (5) Current C OP 82,0% IBR 34,8% C LP 12,4% DTF 26,4% PEN 3,4% IPC 19,2% USD 1,8% Tasa Fija < 1 Año 8,3% MXN 0,3% TAB Nominal 5,7% VEF 0,1% Tasa Fija > 1 Año 5,2% LIBOR 0,4% Currency Risk (6) C
Slide 28: Raw materials
Raw materials GRUPO NUTRESA COMMODITIES INDEX COGS BREAKDOWN (1Q16) GNCI 4,0% Sugar Poultry 1,9% 165 3,4% Oils & fats Milk 1,9% 150 4,1% Beef 144 135 5,1% Cocoa 44,1% 120 7,1% Wheat Other 107 105 112 6,8% Pork 113 86 87 8,3% Coffee 90 92 95 13,3% 79 Packaging mat. 75 2008 2009 2010 2011 2012 2013 20
Slide 29: Highlights DJSI 2015
Highlights DJSI 2015 World’s Highest Scores in Food industry in: Economic dimension: • Risk and crisis management 5 X • Codes of conduct Environmental dimension: • Hydric resources management • Packaging material Social dimension: • Labor practices and human rights • Corporate citizenship • Social r
Slide 30: Dow Jones Sustainability Indices
Bow Jones ow Janes Sow Jones Sustainability Indices Sustainability Indices Sustainability Indices Dow Jones, Included on the Dyst Included on the DjSt Included on the Djst CO) seh dee forthe tarde Torthe Fourth time forthe ffth time Included on the Emerging Included on the Emerging —_—includedon the
Slide 31: Contact Details
Contact Details Alejandro Jiménez Moreno Investor Relations Director Tel: (+574) 3258731 email: [email protected] www.gruponutresa.com This presentation and further detailed information can be found in the following link in our section "Grupo Nutresa Valuation Kit": http://www.gruponutresa.c
Slide 32: Disclaimer
Disclaimer This document can contain forward looking statements related to Grupo Nutresa S.A. and its subordinated companies, under assumptions and estimations made by company management. For better illustration and decision making purposes Grupo Nutresa’s figures are consolidated; for this reason t
Slide 33: 1Q16 Results
1Q16 RESULTS Grupo nutresa
Slide 34: 1Q16 Sales Colombia and international
1Q16 Sales Colombia and international +7,6% Colombia sales 450 SALES PER COP BILLION 400 393,0 COP 1.252,9 mm +15,6% Q: -0,5 BUSINESS UNIT Cop billion 350 P: +10,0* Organic sales 300 250 +10,9% 189,6 +11,0% 201,9 1Q - 2016 COP 1.183,5 mm +9,2% 200 +6,1% +11,2% Cop billion 134,2 150 105,2 119,0 +7,6%
Slide 35: 1Q16 Total Sales
Total 1Q16 Sales TOTAL SALES COP 2.104,2 +21,9% Organic growth: +17,9% SALES PER 600 +17,2% BUSINESS UNIT 491,4 500 +23,2% 1Q - 2016 COP BILLION 414,5 400 +12,5% 311,2 +17,8% +19,0% 300 247,8 245,0 200 162,1 +11,2% 119,0 +7,1% 100 65,6 0 Cold cuts Retail Ice cream Pasta Biscuits Chocolates TMLUC* Co
Slide 36: EBITDA 1Q16
EBITDA 1Q16 14,9% +31,3% EBITDA 80 73,4 COP 281,0 +19,6% 70 13,0% 20,4% Billion pesos +10,5% +12,3% COP BILLION 60 53,7 MARGIN 13,4% 50,6 50 9,4% 10,7% 40 -3,8% 14,1% +15,9% 29,4 N/A 15,7% 30 26,3 +26,4% 22,9 18,6 7,5% 20 -34,9% 10 4,9 0 Retail Ice cream Cold cuts Biscuits Chocolates TMLUC* Coffee P
Slide 37: Consolidated Income statement 1Q16
Consolidated Income statement 1Q16 2015-1Q % Revenues 2016-1Q % Revenues % Var Operating revenue $ 1.726.220 100,0% $ 2.104.216 100,0% 21,9% Cost of goods sold -972.781 -56,4% -1.196.310 -56,9% 23,0% Gross profit $ 753.439 43,6% $ 907.906 43,1% 20,5% Administrative expenses -96.265 -5,6% -97.009 -4,
Slide 38: Balance sheet March 2016
Balance sheet March 2016 Decem ber Decem ber March 2016 % var March 2016 % var 2015 2015 ASSETS LIABILITIES Current assets Current liabilities Cash and cash equivalents $ 286.064 $ 291.761 2% Financial obligations 1.059.660 1.044.488 -1% Trade and other receivables 878.280 841.750 -4% Trade and othe
Slide 39: 4Q15 Results
4Q15 RESULTS Grupo nutresa
Slide 40: December 2015 sales Colombia and International
December 2015 sales Colombia and International +7,7% Colombia Sales 1.800 SALES PER 1.600 1.572,6 COP 4.915,8 +17,4% Q: +3,0 BUSINESS UNIT Billion pesos 1.400 P: +5,6 COP BILLION 1.200 Organic Sales 1.000 +11,5% 785,4 +10,0% 796,0 Dec - 2015 800 +5,8% +5,1% COP 4.552,7 +8,7% Billion pesos 600 531,2
Slide 41: December 2015 Total sales
December 2015 Total sales TOTAL SALES COP 7.945,4 +22,6% Sales organic growth: +17,0% +9,4% SALES PER 2.000 1.908,5 BUSINESS UNIT 1.800 +25,8% 1.566,8 1.600 +18,7% Dec - 2015 COP BILLION 1.400 1.268,2 1.200 +21,5% +15,4% 1.000 896,4 891,1 800 542,3 +5,1% 600 443,7 +8,7% 400 257,9 200 0 Retail Ice Cr
Slide 42: EBITDA December 2015
EBITDA December 2015 12,2% +10,0% EBITDA 250 232,2 11,9% COP 975,6 +16,7% +10,0% 17,4% Billion pesos COP BILLION 200 186,0 +6,0% 9,8% MARGIN 12,3% 155,4 +3,7% 150 17,2% 124,2 10,5% +14,6% N/A 94,1 93,5 13,8% 100 +6,6% 61,1 10,0% +15,9% 50 25,9 0 Cold cuts Biscuits Chocolates TMLUC* Coffee Retail Ice
Slide 43: Grupo El Corral Acquisition
GRUPO EL CORRAL Acquisition FINANCING Bank loans FINAL PRICE 685 COP billion Employees 743,4 COP billion (USD ~ 313 mm) (USD~288 mm) Cash 5.000 58,4 COP billion (USD~25 mm) MAIN PRO-FORMA FIGURES 2014 COMBINED EBITDA SALES EBITDA MARGIN STORES STORES ABROAD COP 407,600mm (USD~171 mm) COP 73,500 mm (
Slide 44: Channel Evolution: Colombia
Channel Evolution: Colombia Alternative Supermarkets Chains Industrial Food Service Traditional (Mom-and- pop stores)/ independent Retail Stores 66,0% 66,6% 64,8% 66,5% 66,2% 65,8% 67,3% 68,9% 68,3% 67,7% 66,0% 68,0% 67,3% 67,4% 65,1% 70,0% 68,7% 69,4% 67,5% 67,4% 6,2% 4,0% 4,4% 4,3% 4,2% 6,4% 7,1%