Grupo Nutresa S. A. Quarterly Report Q2 2017 Highlights According - PowerPoint PPT Presentation

Grupo Nutresa S. A. Quarterly Report – Q2 2017

Highlights According to Monitor Empresarial de Reputación Corporativa – MERCO – in its edition MERCO Talent 2017, for the second year in a row , Grupo Nutresa is the second best company to attract and retain talent in Colombia and the most attractive in the food sector. 2

Innovation Bénet, is Grupo Nutresa´s new nutritional-expert brand in the form of a powdered-beverage that offers all the necessary nutrients for balanced, energized, and wholesome being. The two new product launches under the Tosh brand, baked snacks and cold infusions, are made with wholesome, natural ingredients that are free of additives and artificial flavors. Perfectly healthy snacking alternatives that offer convenience and nutrition to our consumers. 3

2Q17 Sales Colombia and international Colombia sales -1,4% SALES PER 450 396,1 COP 1.335,4 mm +2,9% BUSINESS UNIT 400 Q: -4,1 Cop billion 350 P: +7,0* 2Q - 2017 COP BILLION +5,2% 300 +4,5% 228,0 250 210,3 +6,1% 200 +6,5% 147,6 +2,3% -0,5% 150 Percentage variation in 117,1 106,7 volume (Q) and prices (P) 100 72,9 % chg. YoY Billion pesos 50 0 Retail Cold cuts Coffee Pasta Biscuits Chocolates Ice cream Food * Variation doesn’t include Q:-4,8 Q: -6,2 Q:-1,8 Q:+6,1 Q:-9,3 Q:-0,9 Retail Food P:+3,5 P:+11,4 P:+7,1 P: 0,0 P: +0,4 P:+12,8 +6,0% 90 International Sales 88,8 +5,9% 80 73,2 Ex-Venezuela 2Q 2016 USD MILLION 70 USD 267,9 mm +7,4% 60 COP 781,8 +4,7% +24,3% -0,8% 50 Cop billion 36,6 39,5 40 +0,5% 30 +36,3%* 17,6 % chg. YoY Million dollars 20 12,1 Including Venezuela 2Q 2016 10 USD -0,3% 0 COP -2,7% (Since October 2016, investments in Retail Venezuela are accounted as financial Cold Cuts Biscuits Chocolates TMLUC* Coffee Food 4 instruments) Ex-Venezuela 2Q 2016 •

Total 2Q17 Sales TOTAL SALES Ex-Venezuela 2Q 2016 COP 2.117,2 +3,6% Billion pesos Including Venezuela 2Q 2016: +0,8% SALES PER +0,7%* 500 BUSINESS UNIT +3,9% 431,3 450 2Q - 2017 423,9 400 +2,2% 343,4 COP BILLION 350 +11,9% 300 +3,3% 254,4 259,1 250 +3,8% 200 168,4 +2,3% 150 -0,5% 106,7 100 73,0 50 0 Ice cream Pasta Cold cuts Retail Biscuits Chocolates TMLUC* Coffee Food % chg. YoY Billion pesos • Ex-Venezuela 2Q 2016 5

1H Sales Colombia and international Colombia sales +0,5% SALES PER 450 798,6 COP 2.650,1 mm +3,9% BUSINESS UNIT 400 Q: -3,6 Cop billion 350 P: +7,6* 1H - 2017 COP BILLION +8,4% 300 +6,2% 453,6 250 +7,7% 415,0 200 +6,6% 294,5 -7,2% +3,3% Percentage variation in 150 229,3 207,3 volume (Q) and prices (P) 100 143,2 % chg. YoY Billion pesos 50 0 Retail Cold cuts Coffee Pasta Biscuits Chocolates Ice cream Food * Variation doesn’t include Q:-2,1 Q: -6,4 Q:-0,5 Q:+7,9 Q:-14,7 Q:+0,9 Retail Food P:+2,6 P:+13,4 P:+8,9 P: -0,1 P: +2,3 P: +8,8 +5,9% 90 International Sales 168,6 +2,3% 80 141,3 Ex-Venezuela 1H 2016 USD MILLION 70 USD 516,6 mm +5,5% 60 COP 1.509,0 -1,3% +12,8% +1,5% 50 Cop billion 72,5 74,4 40 +1,2% 30 +35,6%* 35,3 % chg. YoY Million dollars 20 24,2 Including Venezuela 1H 2016 10 USD -2,6% 0 COP -8,8% (Since October 2016, investments in Retail Venezuela are accounted as financial Cold Cuts Biscuits Chocolates TMLUC* Coffee Food 6 instruments) Ex-Venezuela 1H 2016 •

Total 1H17 Sales TOTAL SALES Ex-Venezuela 1Q 2016 COP 4.159,1 +2,0% Billion pesos Including Venezuela 1H 2016: -1,1% SALES PER +2,2%* 500 BUSINESS UNIT +0,6% 869,4 450 1H - 2017 827,8 400 +3,7% 671,0 COP BILLION 350 +6,5% 300 -0,7% 506,0 492,3 250 +2,5% 200 332,5 -7,2% 150 +3,2% 207,3 100 143,4 50 0 Ice cream Pasta Cold cuts Retail Biscuits Chocolates TMLUC* Coffee Food % chg. YoY Billion pesos • Ex-Venezuela 1H 2016 7

Sales by region 1Q17 USA 8,1% MEXICO DOMINICAN REP. & CARIBBEAN 3,6% 1,8% CENTRAL AMERICA VENEZUELA 9,3% 0% 36,3% 63,7% ECUADOR COLOMBIA 1,4% 63,7% COLOMBIA INTERNATIONAL PERU 1,8% CHILE 8,4% OTHER COUNTRIES 1,6% 8

Market share Colombia + TMLUC Consolidated market share in Colombia: 60.1% -1.6%** Cold Cuts Biscuits Chocolates Coffee TMLUC Ice Cream Pasta Retail Food 72,6% 53,9% 51,2% Chocolate ICE CREAM ICB* # 1 in Roast and ground Hamburguers confectionery 63,8% (A) ND coffee (A) and -1,6% -2,4% -0,9% 68,6% (A ) +0,0% 52,4% Steakhouses -0,1% categories in -1,7% Pastas Colombia 27,5% (B) Hot chocolate +0,2% 63,7% (B) +1,1% Coffee Soluble coffee (B) 17,9% (C) 40,5% +1,5% Milk modifiers -1,3% 24,1% (C) # 1 in Ice Potato Chips -0,6% 15,0% (D) cream shops – Rep. Dom. & +1,7% CR Nuts México ICB* 55,5% 31,1% (E) -0,6% (D) -0,7% #2 Private labels 7,5% #2 Nestlé 11,7% (A) #2 Ferrero 8,7% (A) #2 Águila Roja 26,1% (A) #2 Carozzi 34,2% #2 La Muñeca 31,5% #3 Mondelez 10,5% (B) #2 Casa Lúker 25,4% (B) #1 Nestlé 44,1% (B) #1 Carozzi 41,7% (C) #1 Nestlé 69,4% (C) #1 Nestlé 70,6% (D) Frito Lay 25,8% (D) #1 Frito Lay 58,8% (D) #1 Mondelez 56.3% *ICB= Instant Cold Beverages Source: Nielsen twelve month as of May 2017. ** Nielsen market share measurement methodology was updated, thus numbers for previous year can be different from those 9 reported as of 2Q 2016 (% share as in value and change vs. same period last year)

Raw materials GRUPO NUTRESA COGS BREAKDOWN COMMODITIES INDEX (1H17) 2,0% 164 3,8% Oils & fats Milk 1,8% 149 4,8% Poultry Sugar 144 4,9% 134 Beef 38,5% 6,1% Cocoa 119 107 113 112 Other 6,9% 104 Pork 88 95 87 7,4% 89 92 Wheat 87 86 14,3% 74 9,5% Packaging mat. Coffee 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The basket of raw materials included in the GNCI was updated as o f January 1st, 2017. The technical specifications of the GNCI may be obtained at : http://www.gruponutresa.com/inversionistas/resultados-y- publicaciones/resultados-trimestrales/?lang=en#2017-2 10

EBITDA 2Q17 12,0% -18,8%* 12,0% EBITDA 12,9% 60 51,8 +9,2% +65,9% 50,7 44,4 Ex-Venezuela 2Q 2016 50 13,7% COP 262,7 +8,4% COP BILLION 14,1% -10,1% 40 34,8 Billion pesos +37,9% 36,6 MARGIN 12,4% 12,8% 30 -1,8% 21,5 10,3% 11,4% 20 Including Venezuela 2Q +2,3% +35,2% 2016: +3,7% 11,0 8,3 10 0 Retail Ice cream Pasta Cold cuts Biscuits Chocolates TMLUC Coffee Food Ex-Venezuela 2Q 2016 • Convention: 11

EBITDA 1H17 12,3% -15,9%* 12,3% EBITDA 14,1% 107,3 60 +1,5% +68,4% 101,6 Ex-Venezuela 1H 2016 94,6 50 14,0% COP 527,2 +2,7% COP MILES DE MILLONES -20,4% 13,8% 40 71,0 Billion pesos +28,5% 67,9 MARGIN 12,7% 13,0% 30 -3,6% 43,2 9,7% 12,3% 20 Including Venezuela 1H +35,4% -25,0% 2016: -1,3% 20,1 17,6 10 0 Retail Ice cream Pasta Cold cuts Biscuits Chocolates TMLUC Coffee Food Ex-Venezuela 1H 2016 • Convention: 12

Comprehensive Income statement 2Q17 2017 - 2Q% Revenues 2016 - 2Q% Revenues % Var. Continuing operations Operating revenue 2.117.243 2.101.067 0,8% Cost of goods sold (1.182.469) -55,8% (1.202.985) -57,3% -1,7% Gross profit 934.774 44,2% 898.082 42,7% 4,1% Administrative expenses (95.340) -4,5% (96.978) -4,6% -1,7% Sales expenses (624.951) -29,5% (580.720) -27,6% 7,6% Production expenses (33.440) -1,6% (34.612) -1,6% -3,4% Exchange differences on operating assets and liabilities (1.953) -0,1% 11.938 0,6% -116,4% Other operating expenses, net 14.508 0,7% 7.387 0,4% 96,4% Operating profit 193.598 9,1% 205.097 9,8% -5,6% Financial income 4.392 0,2% 2.482 0,1% 77,0% Financial expenses (85.584) -4,0% (82.107) -3,9% 4,2% Portfolio dividends 86 0,0% 41 0,0% 109,8% Exchange differences on non-operating assets and liabilities (1.691) -0,1% (2.615) -0,1% -35,3% Loss on net monetary position - 0,0% (7.486) -0,4% -100,0% Share of profit of associates and joint ventures 2.816 0,1% 619 0,0% N/A Other income (expenses), net 3.313 0,2% - 0,0% - Income before tax and non-controlling interest 116.930 5,5% 116.031 5,5% 0,8% Current income tax (29.714) -1,4% (42.183) -2,0% -29,6% Deferred income tax 10.599 0,5% 6.703 0,3% 58,1% Profit after taxes from continuous operations 97.815 4,6% 80.551 3,8% 21,4% Discontinued operations, after income tax (142) 0,0% (83) 0,0% 71,1% Net profit for the period 97.673 4,6% 80.468 3,8% 21,4% Non-controlling interest 1.144 0,1% 1.056 0,1% 8,3% Profit for the period attributable to controlling interest 96.529 4,6% 79.412 3,8% 21,6% EBITDA 262.661 12,4% 253.208 12,1% 3,7% For further details please check the notes of the financial statements on the following link: 13 https://www.gruponutresa.com/en/inversionistas/resultados-y-publicaciones/resultados-trimestrales/#2017-2