C O R P O R A T E P R E S E N T A T I O N J U L Y 2020
F O R W A R D - L O O K I N G S T A T E M E N T The information contained herein (the “Information”) has been prepared by Grupo Herdez, S.A.B. de C.V., its subsidiaries and/or affiliated companies (“ Grupo Herdez ”), and may contain forward- looking statements that reflect Grupo Herdez’s current expectations and views, which may vary materially due to various factors, risks and uncertainties. Therefore, Grupo Herdez and/or its officers, employees or agents, assume no responsibility or liability for any such variations in the Information. In particular, and notwithstanding the foregoing, no guarantee is given as to possible future variations of the Information. The Information has been provided solely for informational purposes. The issuance of this Information shall not be taken as any form of commitment of Grupo Herdez to proceed with any transaction. All the information contained in this document is prepared in accordance with International Financial Reporting Standards (IFRS) as of June 30, 2020, unless otherwise stated.
I N V E S T M E N T C A S E +25 +100 Brands P R O F I T A B L E D I V E R S I F I E D Y E A R S O F L E A D E R S I N T H E 0 3 G R O W T H P O R T F O L I O E X P E R I E N C E M A R K E T S T R A T E G Y S O U N D S O L I D C O R P O R A T E C O M M I T T E D T O F I N A N C I A L G O V E R N A N C E S U S T A I N A B I L I T Y S T R U C T U R E
S T R A T E G Y 0 4 P R O M O T E S U P P O R T A N D S U S T A I N A B L E M A I N T A I N A N D G E N E R A T E I M P L E M E N T M A N A G E M E N T G R O W T H F O R M R E S P O N S I B L E T E C H N O L O G I E S P R I O R I T I Z I N G P A R T N E R S H I P S T H R O U G H T H E C O R P O R A T E T H A T A C C E L E R A T E W A T E R T H R O U G H T H E D E V E L O P M E N T O F C I T I Z E N S H I P P R O C E S S E S C O N S E R V A T I O N D E V E L O P M E N T O F T A L E N T A N D A N D E F F I C I E N T I N T E L L I G E N C E I N V E S T M E N T I N U S E O F E N E R G Y I N F R A S T R U C T U R E
C O R P O R A T E S T R U C T U R E 0 5 50% 50% 50% 100% McCormick México Barilla México Herdez Del Fuerte Frozen division since1947 since 2002 since 2008 Nutrisa 2013 Helados Nestlé 2015 Cielito Querido Café 2019 Grupo Herdez consolidates 100 percent of its Frozen Moyo 2019 division, Herdez Del Fuerte - Mexico, Barilla México and McCormick de México in its financial statements . 50% The proportional stake of Herdez Del Fuerte in MegaMex since 2009 MegaMex is registered in “Equity Investment in Associated Companies. “
L E A D I N G B R A N D S O U R B R A N D S I N M E X I C O 0 6 O U R B R A N D S I N T H E U S D I S T R I B U T I O N A GR E E M E N T S I N M E X I C O
I N F R A S T R U C T U R E 14 M O R E T H A N 1 0 , 0 0 0 P L A N T S E M P L O Y E E S 0 7 25 DISTRIBUTION + 6 7 , 0 0 0 P O S H E L A D O S N E S T L É CENTERS 6 0 0 + C I E L I T O , L A V A Z Z A , + 6 7 , 0 0 0 P D V M O Y O A N D H E L A D O S N E S T L É N U T R I S A S T O R E S P O S : P O I NT S O F S A L E
C O V I D - 1 9 I M P A C T Main objective of Grupo Herdez : To gu arant ee t he w e l l -be ing of it s • e m pl oye e s . Maint ain t he cont inu it y of it s ope rat ions . • Strategy : Cre at ion of Com m it t ees w it h s t aff at al l • l e v e ls (from s t rat egic t o ope rat ional ) Crisis event w he re s t rat egie s are de s igne d and im pl em ent ed . Actions Taken 0 8 GH central committee +600 stores closed since Strict additional security Home Office for April 1st with openings measures in DC and Corporate employees according to the Plants. since March 24th. authorities. Committee of affected units Minimal disruption to our NO reduction of salaries Negotiation of commercial supply chain. and layoffs. rents. Trading of Commodity Distribution agreements Respond to over- Contracts to minimize the with customers to demand with strict health impact of FX volatility. maintain high inventory standards for our coverage. employees .
C O V I D - 1 9 I M P A C T CONSOLIDATED Growth vs Previous Year 6,091 6,200 5,977 30.0% 6,000 5,752 25.0% 5,662 5,800 NET SALES 5,569 5,600 20.0% 5,400 15.0% 5,211 10.4% 5,200 7.6% 10.0% 10.8% 5,000 8.5% 7.0% 2.2% 5.0% 4,800 4,600 0.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 0 9 EBITDA Margin 1,200 35.0% 1,078 1,051 978 934 936 30.0% 1,000 827 EBITDA 25.0% 800 20.0% 600 18.3% 18.0% 17.6% 16.5% 15.0% 15.9% 15.4% 400 10.0% 200 5.0% 0 0.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 FIGURES IN MILLIONS OF MEXICAN PESOS
C O V I D - 1 9 I M P A C T PRESERVES Growth vs Previous Year 4,858 4,789 4,653 NET SALES 12.2% 12.1% 4,293 4,266 11.6% 4,145 9.3% 6.0% 1.1% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1 0 EBITDA Margin 964 938 890 EBITDA 790 702 686 20.2% 19.8% 18.5% 18.6% 16.9% 16.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 FIGURES IN MILLIONS OF MEXICAN PESOS
C O V I D - 1 9 I M P A C T FROZEN Growth vs Previous Year 1,350 983 865 720 721 684 660 12.6% 850 0.0% 7.6% 6.8% 350 NET SALES 5.0% -150 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 -650 -1,150 -1,650 -2,150 -2,650 (30.5%) -3,150 1 1 EBITDA Margin 212 21.5% 16.5% EBITDA 12.6% 142 9.4% 7.5% 91 62 54 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 (11.3%) (77) FIGURES IN MILLIONS OF MEXICAN PESOS
N E T S A L E S S E G M E N T M I X 23,391 22,420 1,896 20,971 15,953 1,630 20,065 2,929 1,531 3,229 18,181 1,230 2,985 2,882 1,158 18,565 13% 8% 79% 17,562 2,592 16,455 Frozen Exports 15,953 Preserves 14,431 1 2 CAGR 5 YEARS = 7.4% Preserves 7.2% 2016 2017 2018 2019 12M2Q20 Frozen 6.5% P R E S E R V E S F R O Z E N E X P O R T S Exports 11.9% C O N SOLIDAT ED F I GUR ES I N M I L LIONS O F M E XICAN P E S O S C A G R= C O M POUND A N NUA L G R O WT H R A T E
S E G M E N T E B I T & E B I T D A M I X 30.0 4,000 28.0 3,121 103% (10%) 7% 3,500 26.0 2,997 2,990 2,790 Preserves Frozen Exports 3,222 3,000 2,363 24.0 2,791 22.0 2,718 2,500 2,614 2,378 20.0 CAGR 5 YEARS = 4.7% 2,000 EBIT 18.0 1,500 Preserves 5.8% 16.0 14.3 13.9 13.3 13.3 1,000 13.0 14.0 Frozen NA 500 12.0 10.0 0 Exports 32.7% 2016 2017 2018 2019 12M2Q20 E X P O R T S M A R G I N ( % ) P R E S E R V E S F R O Z E N 1 3 4,044 30.0 3,818 4,000 282 3,517 28.0 169 3,295 88% 5% 7% 3,500 169 2,816 506 3,581 26.0 130 332 Preserves Frozen Exports 277 79 3,000 3,142 24.0 3,016 EBITDA 103 2,888 22.0 2,500 2,634 20.0 2,000 CAGR 5 YEARS = 7.0% 17.3 17.0 16.8 18.0 16.4 1,500 15.5 16.0 Preserves 6.1% 1,000 14.0 Frozen 5.9% 500 12.0 10.0 0 Exports 27.6% 2016 2017 2018 2019 12M2Q20 P R E S E R V E S F R O Z E N E X P O R T S M A R G I N ( % ) C O N SOLIDAT ED F I GUR ES I N M I L LIONS O F M E XICAN P E S O S C A G R= C O M POUND A N NUA L G R O WT H R A T E
C O M M E R C I A L L E A D E R S H I P Market Position Market Share W e r e a c h 9 9 % o f h o u s e h o l d s i n • 83% MOLE M e x i c o . 72% O u r p r o d u c t s a r e p u r c h a s e d 1 8 • MAYONNAISE t i m e s a y e a r p e r h o u s e h o l d . 70% TOMATO PURÉE S t r o n g m a r k e t s h a r e i n P r e s e r v e s • i n t h e d i f f e r e n t d i s t r i b u t i o n c h a n n e l s , 4 0 % i n w h o l e s a l e a n d 46% JAMS 2 9 % i n s u p e r m a r k e t s . 1 4 43% SALSA A r o u n d 6 0 % o f o u r b r a n d s i n t h e • c a t e g o r i e s w h e r e w e p a r t i c i p a t e a r e i n t h e T o p 3 o f B r a n d P o we r . 33% PASTA 31% TEA 26% VEGETABLES 18% FROZEN T H I RD -PAR TY I NFORMATION I NC LUI DING M O DERN T R A DE A N D WH O L E SA L E. F I G UR ES A S O F JUN E 3 0 , 2 0 2 0
C O M M E R C I A L L E A D E R S H I P C O N S O L I D A T E D C O N S O L I D A T E D S A L E S M I X S A L E S M I X B Y C H A N N E L B Y C A T E G O R Y* Mayonnaise Frozen SuperMarket 10% 4% 3% Tomato purée 1% 4% Wholesalers 2% 4% Pasta 3% 31% Club stores 2% 4% Vegetables 34% 3% Exports Canned tuna 1 5 8% 3% Mole Stores * Salsa 4% Food service Jams 9% Convenience 5% Ketchup DSD (traditional) Tea 5% 13% Tuna Others 30% 8% Mustard 8% Others C O N S O L I D A T E D F I G U R E S A S O F J U N E 3 0 , 2 0 2 0 * S T O R ES : I NC LUDING C Q C , L A VA Z ZA, M OY O A N D N UT R I SA * N O T I N CL UDING E X P ORT S
I N N O V A T I O N NEW PRODUCTS 2019 +1,500 Ideas 138 Prototypes FROZEN NEW IMAGE 1 6 tested with consumers 29 ideas with high potential to generate volume in 11 categories . “POR UN MUNDO MÁS VIVO” PRESERVES
P R E S E R V E S S N A P S H O T P R E S E R V E S G R O W T H S A L E S M I X D R I V E R S B Y C A T E G O R Y * 15% H O U S E H O L D Mayonnaise P E N E T R A T I O N Tomato purée & P R E M I U M R E D U C T I O N O F V E R S I O N S Pasta 3% 36% D I S T R I B U T I O N Tuna 4% G A P S Vegetables 1 7 4% Mole 5% Salsa Jams 6% Tea C O N S U M E R H O L I S T I C I N S I G H T - Others C O M M U N I C A T I O N B A S E D 10% 9% I N N O V A T I O N 9% C O N S O L I D A T E D F I G U R E S A S O F J U N E 3 0 , 2 0 2 0 , I N C L U D I N G S A L E S I N M E X I C O
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