1Q20 Corporate Presentation Sigma as part of ALFA Petrochemicals - - PowerPoint PPT Presentation

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1q20 corporate presentation sigma as part of alfa
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1Q20 Corporate Presentation Sigma as part of ALFA Petrochemicals - - PowerPoint PPT Presentation

Feb 02, 2024 107 likes •271 views

1Q20 Corporate Presentation Sigma as part of ALFA Petrochemicals Aluminum Autoparts Food Products IT + Telecom Oil & Gas 8 out of 10 #1 in the production of 1 out every 4 new cars 11 Sigma brands 706 production wells Mexican

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SLIDE 1

1Q20 Corporate Presentation

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SLIDE 2

1Q20 CORPORATE PRESENTATION

Sigma as part of ALFA

8 out of 10 Mexican Corporates use Axtel’s IT and Telecom services #1 in the production of PTA, PET and EPS in the Americas 1 out every 4 new cars sold in the world contains at least one Nemak product 11 Sigma brands sell more than US $100 Million a year each 706 production wells

  • perated by Newpek

in U.S. and Mexico

Petrochemicals

Food Products

Aluminum Autoparts IT + Telecom Oil & Gas 38% of Total Revenues 1 30% Total EBITDA 1

(1) LTM in USD

2

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SLIDE 3

1Q20 CORPORATE PRESENTATION

A leading global company

Sales distribution by region

Europe

35%

LatAm

7% Net Sales LTM 1Q20

US $6.6 Billion

EBITDA LTM 1Q20

US $706 Million

USA

15%

USA

16%

Operations in 18 countries Mexico

42%

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SLIDE 4

1Q20 CORPORATE PRESENTATION

We bring communities everywhere favorite foods to love

+640,000 Points of Sale +45,000 Employees 70 Manufacturing Facilities 210 Distribution Centers

Cooked Meats

60% of Net Sales

Other Categories

5% of Net Sales

Dairy

19% of Net Sales

Dry Meats

16% of Net Sales

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SLIDE 5

1Q20 CORPORATE PRESENTATION

By category Net sales breakdown By geography

A unique story of transformation

Net sales (US$ M) EBITDA (US$ M) Facilities Employees Countries

$6,463 $703 $882 $125 8 ~12,500 70 ~45,000 18

Europe Mexico US LatAm

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National leadership

2000 2019

41% 36% 16% 7%

$2,618 $288 34 ~29,000 9

International expansion

2010

76% 15% 9%

Global player

74% 25% 60% 16% 19% 5% 63% 32% 5%

Cooked Meats Dairy Dry Meats Other categories

We have increased Net Sales 7.3x and EBITDA 5.6x since 2000

98%

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SLIDE 6

1Q20 CORPORATE PRESENTATION

Diverse portfolio of leading brands across categories

11 brands with net sales > US $100 M in 2019

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Packaged Meats Dairy Other Categories Third Party

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SLIDE 7

1Q20 CORPORATE PRESENTATION

Research and Development

Consumer research

+260,000 contacts per year Proprietary mathematical models

R + D

2 research centers 6 pilot plants +200 specialists +40 patents

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SLIDE 8

1Q20 CORPORATE PRESENTATION

Sigma Innovation System

Iterative innovation process based on Design Thinking

Fail early, often and cheap, while limiting failure

+100 new products launched in 1Q20 +600 projects in the innovation pipeline 11% of 2019 accumulated sales come from innovation

products

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Innovation Process

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SLIDE 9

1Q20 CORPORATE PRESENTATION

Innovation platforms

Heritage Convenience Indulgence Trust & Sustainability Health & Nutrition

These are some of the innovations we launched in 1Q20:

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SLIDE 10

1Q20 CORPORATE PRESENTATION

Innovation growth avenues

Snacking

New business unit working across geographies Higher demand of protein-based snacks 3% of 2019 Net Sales

Alternative Proteins

New sources of protein to cover current flexitarian trends +40 existing products across geographies +25 new products in the global innovation pipeline

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SLIDE 11

1Q20 CORPORATE PRESENTATION

Sustainability

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Technology +90,000 tons

  • f CO2

avoided 75 work sites

  • perating with

cleaner energy +3,000 tons of food donated through food banks 10% of water consumption decreased in the US FReSH Project member +480 products with improved nutritional profiles

Sustainability Report 2018

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SLIDE 12

1Q20 CORPORATE PRESENTATION Roberto Olivares

CFO MBA Duke

Gregorio de Haene

CTO MBA ITESM

Luis Iturralde

CHRO MBA ITESM

Central functions Business units

Years in the company

Proven top management with an average of 24 years of experience across business areas

Eugenio Caballero

CEO Mexico MBA Harvard

Ricardo Doehner

CEO Europe MBA Michigan

Warren Panico

CEO USA MBA Columbia Pacific University

Sergio Ramos

CEO Latin America MBA University of Texas at Austin

Armando de la Peña

CEO Foodservice Executive Programs

Alejandro Suárez

CIO Master in Operations George Washington

CEO

Rodrigo Fernández

President & CEO MBA Wharton

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Experienced management team

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18 23 22 32 18 12 37 26 28

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SLIDE 13

4Q19 Financial Results

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SLIDE 14

1Q20 CORPORATE PRESENTATION

525 639 716 663 676 684 703 705

2013 2014 2015 2016 2017 2018 2019 LTM 1Q20

Financial Results

Net Sales EBITDA

3,820 5,359 5,901 5,698 6,054 6,336 6,463 6,585

2013 2014 2015 2016 2017 2018 2019 LTM 1Q20

876

Non-recurring gains 14

US $M

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SLIDE 15

1Q20 CORPORATE PRESENTATION

+8%

Financial Results

Net Sales EBITDA

1Q19 1Q20

1Q20 Highlights

  • Restaurants and hotels closures to avoid

COVID-19 spread impacted Foodservice channel, mainly in Mexico and LatAm

  • Europe’s result impacted by higher pork

prices versus last year due to ASF

  • Solid sales and EBITDA in the US driven

by all business segments

  • Pork prices started to decrease when

compared to 4Q19 but were still above last year prices

1,637 1,516

42% 43% 35% 33% 16% 16% 7% 8% 1Q19 1Q20

169 166

54% 55% 15% 17% 25% 21% 6% 7% 11.0% 10.3% EBITDA Margin 15

US $M

+1%