E a r n i n g s C o n f e r e n c e C a l l February 28th, 2019 - - PowerPoint PPT Presentation

Fourth Quarter and Full Year 2018 E a r n i n g s C o n f e r e n c e C a l l

February 28th, 2019

Forward-Looking Statement

The information contained herein (the “Information”) has been prepared by Grupo Herdez, S.A.B. de C.V., its associates, subsidiaries and/or affiliated companies (“Grupo Herdez”), and may contain forward-looking statements that reflect Grupo Herdez’s current expectations and views, which may differ materially due to various factors, risks and uncertainties. Therefore, Grupo Herdez and/or its respective officers, employees or agents, assume no responsibility or liability for any discrepancy in the Information. In particular, but without prejudice to the foregoing, no warranty is given as to the accuracy of the statements or future variations of the Information, or any other written or oral Information issued by Grupo Herdez. The Information has been provided solely for informational

• purposes. The issuance of this Information shall not be taken as any form of commitment on the part
• f Grupo Herdez to proceed with any transaction.

Net Sales Performance

15,953 16,455 2,882 2,985 1,230 1,531

• 5,000

2017 2018

Título del gráfico

Exports Frozen Preserves

growth

+4.5%

Figures in million MXN

20,065 20,971

Preserves segment outperformers

DRIVERS CATEGORIES

Tea Jams

Frozen annual performance

Net sales

+3.6%

Take-home and multi-packs

• utperformed

Average ticket drive SSS 226 million popsicles

Profitability improvement

14.3%

EBIT

margin

16.8%

EBITDA

margin

11.6%

Consolidated Net margin

+40bp +50bp +80bp growth

MegaMex drivers

L e v e r a g e o n t h e a d o p t i o n

• f

g r e e n s a l s a a n d s t r e e t i n s p i r e d f o o d I n c r e a s e h o u s e h o l d p e n e t r a t i o n

IFRS 16

F i n a n c i a l s t a t e m e n t s w i l l c a p i t a l i z e l e a s e s f o r p r e s e n t a t i o n p u r p o s e s . T h i s c h a n g e d o e s n o t a f f e c t c a s h f l o w B y t h e e n d o f 2 0 1 9 , w e h a ve e s t i m a t e d t h e f o l l o w i n g a d j u s t m e n t s : + 5 4 m i l l i o n i n t h e E B I T + 3 3 3 m i l l i o n i n t h e E B I T D A

• 2 3 m i l l i o n i n t h e c o n s o l i d a t e d n e t i n c o m e

+ 8 4 m i l l i o n i n i n t e r e s t p a i d

2019 Guidance

Net sales 7-9% growth

Grupo Herdez financial outloook includes Nutrisa and Helados Nestlé.

Stable margins Optimizing working capital CAPEX MXN 1 billion Selective pricing

Q&A