4Q19 Corporate Presentation Sigma as part of ALFA Petrochemicals - - PowerPoint PPT Presentation

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4q19 corporate presentation sigma as part of alfa
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4Q19 Corporate Presentation Sigma as part of ALFA Petrochemicals - - PowerPoint PPT Presentation

Mar 13, 2023 143 likes •299 views

4Q19 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

4Q19 Corporate Presentation

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SLIDE 2

4Q19 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 37% of Total Revenues 1 31% Total EBITDA 1

(1) FY 2019 in USD

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SLIDE 3

4Q19 CORPORATE PRESENTATION

A leading global company

Sales distribution by region

Europe

35%

LatAm

7% Net Sales 2019

US $6.5 Billion

EBITDA 2019

US $703 Million

USA

15%

USA

16%

Operations in 18 countries Mexico

42%

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SLIDE 4

4Q19 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

4Q19 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

4Q19 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

4Q19 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

4Q19 CORPORATE PRESENTATION

Sigma Innovation System

Iterative innovation process based on Design Thinking

Fail early, often and cheap, while limiting failure

+270 new products launched this year +740 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

4Q19 CORPORATE PRESENTATION

Innovation platforms

Heritage Convenience Indulgence Trust & Sustainability Health & Nutrition

These are some of the innovations we launched in 4Q19:

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SLIDE 10

4Q19 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

4Q19 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

4Q19 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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17 23 22 31 18 12 37 26 28

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SLIDE 13

4Q19 Financial Results

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4Q19 CORPORATE PRESENTATION

525 639 716 663 676 684 703

2013 2014 2015 2016 2017 2018 2019

Financial Results

Net Sales EBITDA

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

2013 2014 2015 2016 2017 2018 2019

876

Non-recurring gains 14

US $M

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SLIDE 15

4Q19 CORPORATE PRESENTATION +7%

Financial Results

Net Sales EBITDA

4Q18 4Q19

4Q19 Highlights

  • Solid results in Mexico and the US due to

higher average prices

  • Europe continued to be impacted by

higher raw material costs associated to ASF

  • Pork prices increased 50% year-on-year

in both the Americas and Europe

  • Sigma launched Tastech, its first global

acceleration program

1,706 1,596

42% 41% 37% 37% 14% 14% 7% 8% 4Q18 4Q19

176 174

50% 48% 24% 29% 19% 15% 7% 8% 10.9% 10.3% EBITDA Margin 15

US $M

+1%