Grupo Nutresa S.A. · BVC:NUTRESA
Grupo Nutresa — Q4 2020 Earnings Presentation
44 slides from Grupo Nutresa's earnings presentation, March 2021
Slide 1: Grupo Nutresa Corporate Presentation
Grupo NUTRESA GRUPO Nutresa Corporate Presentation1
Slide 2: 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 they can dif
Slide 3: We are inspired by a Future Together
collaborating, empowering, creating and building WE ARE INSPIRED BY A Future Together 3
Slide 4: Core Strengths and Business Model
Scale One of the largest food Our Core Strengths Business Model 2020 Sales companies in Latin America 11,1 MARKET CAP OF COP trillion 11 ~ 3,2 People 45,8K 12,3K ~ 3,0 USD billion COP trillion USD billion Employees Outside Colombia 39,9% 2020 EBITDA Margin 13,0% 19 53,8% OF SALES Brands Brands sell
Slide 5: Grupo Nutresa in Numbers
GRUPO NUTRESA IN NUMBERS 11.1 (USD 3,2 Bn) Total sales (COP Trillion) 1.5 MM clients served 13,0% EBITDA Margin 19,6% #1 8 Innovation sales/ Total Sales market share position category-focused business units 26 brands in #1 market and #2 53,8% share position 14 market share countries with direct pres
Slide 6: Corporate Structure
BISCUITS COLD TMLUC RETAIL ICE CREAM PASTA CHOCOLATES COFFEE CUTS FOOD Corporate Structure Food Service International sales and distribution network 6
Slide 7: Expansion and Market Development
Biscuits Nestlé EXPANSION AND MARKET DEVELOPMENT Chocolates Nestlé 1,9 USD BILLION Invested in 23 successful acquisitions in 11 countries since Year 2000 7
Slide 8: Geographical Footprint
United States GEOGRAPHICAL FOOTPRINT SALES BY REGION 2020 11,8% Dominican Republic 39,9% and the Caribbean International Mexico 1,7% 2,8% 60,1% Central America Colombia 10,2% Venezuela 47 Production Facilities Colombia Peru 14 60,1% Malaysia 2,2% Production Total number of countries Facility:1 with
Slide 9: Value generation for stakeholders
PURSUING A LONG-TERM VALUE MODEL THROUGH A CLEAR, SOLID STRATEGY Sustainability Digital Strategy Health & Wellness Investment in leading Effective innovation and Investment in high-growth brands and portfolio new business models to Efficiency and productivity tackle consumer trends channels evolutio
Slide 10: Market Share
MARKET SHARE Consolidated market share in Colombia: 53,8% Biscuits Cold Cuts Chocolates Coffee TMLUC Ice Cream Pasta Retail Food 58,2% Chocolate ICB* (A) Ice cream #1 51,4% confectionery (A) Roast and ground 52,1% coffee (A) 59,9% #1 in Hamburgers and 71,4% 49,1% Steakhouses categories in Colombia P
Slide 11: Our Core Strengths and Business Model
OUR CORE STRENGTHS BUSINESS MODEL We promote participative environments, the development of skills focused on both being OUR OUR and doing, the acknowledgment DISTRIBUTION BRANDS of achievements, the Our brands are leaders in construction of a leading brand, NETWORKS the markets where we and a balan
Slide 12: Our People
OUR PEOPLE Grupo Nutresa fosters participative environments that enable prioritizing the development of capabilities, the acknowledgment of achievements and a balanced lifestyle. Top 2 company in terms of talent attraction and retention in Colombia. Organizational climate at a level of excellence: 8
Slide 13: Solid Portfolio of Leading Brands
SOLID PORTFOLIO OF LEADING BRANDS 19 brands with sales over USD 50 million In Colombia, 70,5% of sales derive from 19 mega-brands. 26 brands ranked #1 or #2 in terms of market share (key markets). 13
Slide 14: Go to Market Capabilities
GO TO MARKET CAPABILITIES DISTRIBUTION Industrial 4,6% • #1 Roast and Ground and liquid coffee exporter from Colombia Supermarket Chains • Leader in Premium and Certified Coffees from Colombia 26,3% • Leading collaborative models with retailers Institutional – Food Service all across the region 4,8%
Slide 15: Investing in High-Growth Channels
GO TO MARKET CAPABILITIES INVESTING IN HIGH-GROWTH CHANNELS NOVAVENTA FOOD SERVICE RESTAURANTS • Direct sales channel with +242.000 mom • Leading food service company in Colombia • 822 restaurants and ice cream shops in 5 entrepreneurs • Includes La Recetta and Atlantic Food countries. • Reaching +4
Slide 16: Effective Innovation
EFFECTIVE INNOVATION Addressing consumer trends INNOVATION-BASED GROWTH 19.6%* Innovation-driven sales/ 2020 total sales * Sales derived from innovations launched over the past three years 16
Slide 17: Digital Transformation
Exploration New capabilities Talent and of new Go-to market under development culture- technologies capabilities relatedcapabiliti es PROCESOS NEGOCIOS DIGITAL TRANSFORMATION Digital transformation is a fundamental part of an assertive, proactive and innovative corporate model focused on offering be
Slide 18: Risk Management Model
RISK MANAGEMENT MODEL Aggressive Moderate None Commercial Risk Financial and Operating Risks Reputation Risk MAIN RISKS Regulations in nutrition and health Involvement of business due to a Volatility in prices of matters in the countries where highly competitive environment commodities Grupo Nutresa
Slide 19: Doubling Our Revenues 2020 to 2030
EVENTOS 2030 STRATEGIC DE INTERÉS OBJECTIVES Our strategy aims to double our 2020 revenues by 2030, while obtaining returns higher than the cost of capital employed. 2030 OBJECTIVE To achieve this goal, we offer to our consumers From 2020 to 2030 foods and experiences from recognized and beloved bra
Slide 20: 2030 Strategic Objectives
2030 STRATEGIC OBJECTIVES 100% execution Greater ROIC of the geography than the cost of development the capital plan 100% Revenue increase 20% of the revenues through DEVELOPMENT OF digital channels 50% from GEOGRAPHIES COMPETITIVENESS for consumers and leading brands clients CATEGORIES, BRANDS, NET
Slide 21: 2030 Strategic Objectives: Corporate Philosophy
2030 STRATEGIC OBJECTIVES CORPORATE PHILOSPHY AND PERFORMANCE Autonomy with strategic Good Corporate Responsible corporate Productivity and Effective coherence Governance citizenship competitiveness innovation Development of Integrity Reliable food and Collaborative Respect our talent healthy lifest
Slide 22: Corporate Governance - Board of Directors
CORPORATE GOVERNANCE - BOARD OF DIRECTORS 1 2 3 4 1 Mauricio Reina Echeverri 2 Jaime Alberto Palacio Botero 3 Antonio Mario Celia Aparicio 4 Valeria Arango Vélez 5 6 7 8 5 Gonzalo Alberto Pérez Rojas 6 Jorge Mario Velásquez Jaramillo 7 Juana Francisca Llano Cadavid 8 Ricardo Jaramillo Mejía Finance,
Slide 23: Shareholder Base
SHAREHOLDER BASE 35,3% 27,1% 8,1% Other Foreign Investors 11,0 K Shareholders 9,8% 19,7% Sustainable Local Funds 460.123.458 Development Ordinary shares listed in Colombia | ADR level 1 Ticker BVC: NUTRESA ADR: GCHOY 23
Slide 24: Our Strategic Priorities in Sustainability
OUR STRATEGIC PRIORITIES IN SUSTAINABILITY In connection with 24
Slide 25: Sustainability Awards and Recognitions
SUSTAINABILITY AWARDS AND RECOGNITIONS WE ARE THE MOST SUSTAINABLE Gold Category FOOD COMPANY IN THE WORLD #1 in 2020 2021 We participate in three of these indices: Bronze Category Silver Category 2012 & 2014 2015 - 2020 World Emerging markets Latin American Integrated Index index Market Index (MILA
Slide 26: Our Efforts in ESG Are Broadly Recognized
OUR EFFORTS IN ESG ARE BROADLY RECOGNIZED # 2 company with the best # 2 company in the fields of responsibility # 2 Company to attract and retain talent in corporate reputation in in Colombia and corporate governance in Colombia. Colombia Certification from the Colombian Stock Certification as a pri
Slide 27: Health and Nutrition
HEALTH AND NUTRITION 100.0% The Organization achieved the 2020 objective of adjusting the portfolio’s nutritional profile (3,216 SKUs) early and exceeded it. 74 reformulations completed in 2019, including reductions in the contents of sodium, nitrites, saturated fats and sugar; along with preservati
Slide 28: Financial Results
FINANCIAL RESULTS 28
Slide 29: Colombia & International Sales 4Q2020
COLOMBIA & INTERNATIONAL SALES 4Q2020 Colombia sales + 5,8% Q: + 1,1% SALES PER COP 1.831,7 + 6,4% 531,5 BUSINESS UNIT P: + 6,0% * Billion COP - 1,6% + 3,2% 269,1 - 1,8% Percentage variation in volume (Q) and prices 256,4 - 2,1% + 6,5% 170,3 + 9,0% (P) Organic 153,6 134,8 Billion COP 97,1 % chg. YoY
Slide 30: Sales Total 4Q2020
SALES TOTAL 4Q2020 Sales total SALES PER BUSINESS COP 2.949,3 + 6,9% UNIT Billion COP + 6,9% Organic - 0,5% 590,1 COP 2.883,5 + 6,2% 544,4 + 4,7% Billion COP 483,3 + 11,7% 398,0 + 0,8% Billion COP 249,0 - 2,3% 217,5 + 6,5% 134,8 + 9,0% 98,0 Biscuits Cold cuts Chocolates Coffee TMLUC Retail Food Ice
Slide 31: Colombia & International Sales Accumulated 2020
COLOMBIA & INTERNATIONAL SALES ACCUMULATED 2020 Colombia sales Q: + 4,4% SALES PER COP 6.691,2 + 7,9% + 11,2% 1.928,5 P: + 6,2% * BUSINESS UNIT Billion COP + 4,7% + 3,7% - 0,1% Percentage variation in volume (Q) and prices 1.025,7 1.047,9 - 22,5% + 1,5% (P) 659,8 + 17,7% Organic 436,6 482,5 % chg. Y
Slide 32: Sales Total Accumulated 2020
SALES TOTAL ACCUMULATED 2020 Sales total SALES PER BUSINESS COP 11.127,5 + 11,7% UNIT Billion COP + 9,6% + 12,2% 2.223,7 2.145,3 Organic + 3,6% COP 10.620,1 + 8,1% + 31,5% Billion COP 1.737,2 1.591,1 + 7,2% 1.117,3 Billion COP - 18,9% 660,4 + 1,5% + 17,9% 482,5 404,6 Biscuits Cold cuts Chocolates Co
Slide 33: Sales by Region 2020
SALES BY REGION 2020 United States Dominican Republic and the Carribbean 11,8% 1,7% Mexico Venezuela 2,8% 60,1% Colombia Central America 10,2% Peru 39,9% 2,2% International Colombia Chile 60,1% 7,2% Ecuador 1,4% Other 2,6% Convention Production Distribution Services 33
Slide 34: Market Share Colombia + TMLUC
MARKET SHARE Colombia + TMLUC Consolidated market share in Colombia: 53,8% Biscuits Cold Cuts Chocolates Coffee TMLUC Ice Cream Pasta Retail Food 51,4% 58,2% Chocolate Roast and ICB* (A) Ice cream #1 confectionery ground 52,1% 59,9% #1 in Hamburgers and (A) coffee (A) Steakhouses 71,4% 49,1% Pasta (
Slide 35: Raw Materials
RAW MATERIALS Grupo Nutresa Cogs Breakdown Commodities Index (GNCI) 2020 185 1,2% Poultry 165 2,3% Beef 2,5% Milk 145 144 3,7% Oils & Fats 125 4,4% Sugar Other 40,2% 113 6,0% Cocoa 105 112 107 6,5% Wheat 85 95 81 87 87 78 7,4% Pork Pack. Mat. 14,0% 86 86 82 65 11,8% Coffee 2009 2010 2011 2012 2013 2
Slide 36: EBITDA 4Q2020
EBITDA 4Q2020 EBITDA EBITDA PER COP 326,7 - 7,9% 11,1% 11,1% BUSINESS UNIT Billion COP - 18,4% - 4,2% 65,7 10,5% Margin 60,3 21,8% 11,1% + 2,3% - 15,0% 50,8 47,4 7,8% - 13,5% 10,3% - 10,7% 15,2% 31,0 Billion COP 25,8 + 10,7% 12,8% 20,5 - 8,2% 12,6 Biscuits Cold cuts Chocolates Coffee TMLUC Retail Fo
Slide 37: EBITDA Accumulated 2020
EBITDA ACCUMULATED 2020 EBITDA EBITDA PER COP 1.443,6 + 7,2% BUSINESS UNIT Billion COP 13,5% 13,2% + 8,9% Margin + 19,6% 301,2 13,4% 13,0% 284,1 13,7% + 0,2% + 53,9% 232,4 217,6 13,0% + 2,4% 12,5% Billion COP 144,9 16,1% - 55,1% 15,5% + 14,9% 82,7 + 44,7% 77,8 62,6 Biscuits Cold cuts Chocolates Coff
Slide 38: Income Statement 4Q2020
INCOME STATEMENT 4Q2020 2020 4Q % Revenues 2019 4Q % Revenues % Var. Continuing operations Operating revenue 2.949.271 2.758.815 6,9% Cost of goods sold -1.722.629 -58,4% -1.555.832 -56,4% 10,7% Gross profit 1.226.642 41,6% 1.202.983 43,6% 2,0% Administrative expenses -125.259 -4,2% -142.506 -5,2% -
Slide 39: Income Statement Accumulated 2020
INCOME STATEMENT ACCUMULATED 2020 2020 % Revenues 2019 % Revenues % Var. Continuing operations Operating revenue 11.127.541 9.958.851 11,7% Cost of goods sold -6.465.128 -58,1% -5.565.589 -55,9% 16,2% Gross profit 4.662.413 41,9% 4.393.262 44,1% 6,1% Administrative expenses -483.735 -4,3% -467.332 -
Slide 40: Consolidated Net Debt
CONSOLIDATED NET DEBT 3.500 2.808 2.906 2.709 Billion COP 3.000 2.596 2.441 2.419 2.500 2.000 1.752 1.581 1.500 1.000 500 0 Dec-13 Dec-14* Dec-15* Dec-16* Dec-17* Dec-18* Dec-19* Dec-20* Net debt 1.581 1.752 2.808 2.906 2.596 2.441 2.709 2.419 Net debt / EBITDA 1,90 2,10 2,88 2,82 2,49 2,17 2,20 1,8
Slide 41: Annex
ANNEX 41
Slide 42: 2020 Highlights
2020 HIGHLIGHTS Sustained growth & ESG integration as a global competitive advantage Improvement Risk Substantial Best-in Class of return on management Top Line ESG Global invested during the Growth Practices capital pandemic Consolidated growth of ROIC 9,6% 11,7% in 2020 #1 Caring for people's live
Slide 43: Highlights - Trends in Consumer Behaviour
HIGHLIGHTS–TRENDS IN CONSUMER BEHAVIOUR At-home consumption - Preference for affordable local Channel disruption – Digital convenience and flexibility brands engagement and e-commerce Preference for easy-to-cook Heightened importance of Digital platforms make and prepared products being good local p
Slide 44: Highlights - Trends in Consumer Behaviour
HIGHLIGHTS–TRENDS IN CONSUMER BEHAVIOUR Food that promotes health, Stronger support for Purpose-Driven nutrition and wellness brands Accelerated adoption of healthy A more conscious consumer seeking to habits support environmentally-driven brands Preference for nourishing foods and Greater awareness