I N V E S T O R S P R E S E N T A T I O N J U N E 2 0 1 9 F O R W - PowerPoint PPT Presentation

I N V E S T O R S P R E S E N T A T I O N J U N E 2 0 1 9

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 March 31, 2019, unless otherwise stated.

I N V E S T M E N T C A S E +100 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 OF B R A N D E D F O O D 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 L E A D E R 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 S U P P O R T A N D P R O M O T E M A I N T A I N A N D G E N E R A T E G R O W T H S U S T A I N A B L E E X E R C I S E A I M P L E M E N T F O R M S O C I E T I E S T H R O U G H T H E M A N A G E M E N T R E S P O N S I B L E T E C H N O L O G I E S T H R O U G H T H E D E V E L O P M E N T O F P R I O R I T I Z I N G C O R P O R A T E T H A T A C C E L E R A T E D E V E L O P M E N T O F T A L E N T A N D W A T E R C A R E A N D C I T I Z E N S H I P P R O C E S S E S I N T E L L I G E N C E I N V E S T M E N T I N E F F I C I E N T U S E O F I N F R A S T R U C T U R E E N E R G Y

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 de México Barilla México Herdez Del Fuerte Frozen division since 1947 since 2002 since 2008 Nutrisa 2013 Helados Nestlé 2015 Grupo Herdez consolidates 100 percent of its Frozen 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 AG R 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 15 M O R E T H A N 9 , 8 0 0 P L A N T S E M P L O Y E E S 0 7 24 D I S T R I B U T I O N 7 T U N A C E N T E R S V E S S E L S 6 3 , 0 0 0 + 4 8 6 N U T R I S A H E L A D O S N E S T L É S T O R E S P O S

N E T S A L E S S E G M E N T M I X 21,480 20,971 20,065 18,181 1,547 15,953 1,531 1,230 3,031 16,357 2,985 2,882 1,158 7% 79% 14% 2,592 16,903 1,079 16,455 Exports Preserves Frozen 15,953 2,139 14,431 13,139 0 8 CAGR 5 years 8.4% Preserves 6.7% 2015 2016 2017 2018 12M1Q19 Frozen 21.1% P R E S E R V E S F R O Z E N E X P O R T S Exports 10.1% CONSOLI DATED FI GURES IN MI LLI ON PESOS

E B I T D A S E G M E N T M I X 3,517 3,594 3,295 85% 10% 5% 2,887 167 169 2,816 130 357 332 Preserves Frozen Exports 277 83 3,069 79 3,016 136 2,888 103 2,668 2,634 0 9 17.7 16.8 16.7 16.4 15.5 CAGR 5 years = 8.3% Preserves 6.6% Frozen 25.0% 2015 2016 2017 2018 12M1Q19 E X P O R T S E B I T D A M A R G I N Exports 20.4% P R E S E R V E S F R O Z E N CON SOLI DATED FI GURES IN MI LLI ON PESOS

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 A T E G O R Y B Y C H A N N E L Mayonnaise Frozen Modern trade 4% 4% 11% Pasta 4% 1% Wholesalers 2% Tomato purée 5% 2% Exports 32% 33% Home-style salsa 2% 2% 6% Club stores Mole 2% 1 0 Canned tuna Nutrisa stores 4% Vegetables 7% Foodservice 4% Jams DSD traditional Tea 5% 7% Ketchup Others 5% Fresh tuna 14% Convenience 7% Food packaging 31% 8% Mustard Others CONSOLI DATED FI GURES IN MI LLI ON PESOS

P R E S E R V E S S N A P S H O T G R O W T H P R E S E R V E S D R I V E R S S A L E S M I X B Y C A T E G O R Y H O U S E H O L D P E N E T R A T I O N & P R E M I U M Mayonnaise R E D U C T I O N O F V E R S I O N S 19% Pasta D I S T R I B U T I O N G A P S Tomato purée 38% Home-style salsa 2% 1 1 Mole 2% Atún 4% Vegetales C O N S U M E R 5% Mermelada I N S I G H T S ’ H O L I S T I C B A S E D C O M M U N I C A T I O N Té 6% I N N O V A T I O N Otros 6% 9% 9% C O N S O L I D AT E D F I G U R E S I N M I L L I O N P E S O S , C O N S I D E R I N G S AL E S I N M E X I C O

P R E S E R V E S P E R F O R M A N C E CAGR 5 YEARS 16,903 Net sales: 6.7% 16,455 15,953 EBITDA: 6.6% 14,431 13,139 12,197 20.3% 18.3% 18.3% 18.3% 18.2% 18.1% 1 2 2014 2015 2016 2017 2018 12M1Q19 NET SALES EBITDA MARGIN C O N S O L I D AT E D F I G U R E S I N M I L L I O N P E S O S

P R E S E R V E S M A R K E T L E A D E R S H I P 30% P A S T A 45% H O M E – S T Y L E S A L S A 42% 1 3 33% J A M S T E A We are #1 or #2 in categories T O M A T O that represent 73% 73% M A Y O N N A I S E P U R É E 69% of our sales in Mexico 83% 27% M O L E V E G E T A B L E S THI RD PARTY I NFORMATI ON CONSI DERI NG MODERN TRADE AND WH OL ESAL ERS FI GURES AS OF FEB 28TH , 2019

P R O D U C T I N N O V A T I O N & M A R K E T I N G C A M P A I G N S P R O D U C T PREMIUM VERSIONS CO-CREATION 1 4 RESPONSIBLE CONSUMPTION NEW HABITS CONSUMPTION OCCASIONS

F R O Z E N S N A P S H O T F R O Z E N G R O W T H S A L E S M I X B Y C H A N N E L D R I V E R S 1% INCREASE STORE 1% 1% PORTFOLIO 9% TRAFFIC & SEGMENTATION FREEZER Nutrisa stores BY CHANNEL PRODUCTIVITY DSD traditional 13% 1 5 Convenience 45% Modern trade Wholesalers S T R E N G T H E N I N G SG&A OF SALES CONTROL Club stores C H A N N E L S 30% Foodservice CONSOLI DATED FI GURES IN MI LLI ON PESOS CONSI DERING SALES I N MEXI CO

FROZEN PERFORMANCE CAGR 5 YEARS Net sales: 21.1% EBITDA: 25.0% Acquisition of 3,031 2,985 Helados Nestlé 2,882 2,592 2,139 11.8% 11.1% 10.0% 9.6% 1 6 1,166 6.3% 4.0% 2014 2015 2016 2017 2018 12M1Q19 NET SALES EBITDA MARGIN CONSOLI DATED FI GURES IN MI LLI ON PESOS

N U T R I S A R E N O V A T I O N A F T E R 1 7 B E F O R E

P R O D U C T I N N O V A T I O N RENEWED IMAGE WITH CLEANER LABELS 1 8 LEVERAGING ON THE POWER BRANDS

M E G A M E X S N A P S H O T To bring the spirit of Mexico to every table F O O D A W A Y A V O C A D O S A L S A S & F R O M H O M E F O R A L L S A U C E S D I S R U P T I O N 2020 Goals 1 9 USD $1B Net sales I N C R E A S E A C C E L ER ATE G R O W M E G A M EX 14-16% EBITDA H O U S E HOLD P E N E T R A TION S H A R E PE N E T R A TION margin

M E G A M E X P E R F O R M A N C E CAGR 5 YEARS 13,436 Net sales: 12.5% 13,258 EBITDA: 34.5% 12,168 10,840 8,876 7,689 18.3% 17.8% 2 0 16.3% 15.0% 14.2% 13.7% 2014 2015 2016 2017 2018 12M1T19 NET SALES EBITDA MARGIN CONSOLI DATED FI GURES IN MI LLI ON PESOS

M E G A M E X LEVERAGE ON THE ADOPTION OF P O R T F O L I O GREEN SALSA AND STREET INSPIRED FOOD M E G A M E X S A L E S M I X B Y C A T E G O R Y Home-style salsa Guacamole 5% 2% 2%2% Tortillas 3% INCREASE HOUSEHOLD 4% Mexican food 34% PENETRATION 5% Taco sauce 2 1 71% of U.S. households Mole buy avocados 7% Peppers Tortilla chips 9% MARKET SHARE* Enchilada sauce 27% Cheese dip 13% H O M E - S T Y L E 39% G U A C A M O L E S A L S A Others 73% 2% M O L E T O R T I L L A S *THI RD PARTY I NFORMATI ON CONSI DERI NG MODERN TRADE

Through the Saber Nutrir program, S U S T A I N A B I L I T Y we fight malnutrition and food M O D E L insecurity with training and the installation of productive projects. We promote labor equality through the installation of nursing rooms, 17% of all the energy creating stronger bonds with our consumed by our operations employees. comes from the cogeneration project. 2 2 More tan 90% of our agricultural suppliers comply with the Agrochemicals Management Program, thus reducing our impact on the environment.

TALENT DEVELOPMENT V A R I A B L E I N C L U S I O N O F C O M P E N S A T I O N P E O P L E W I T H B A S E D O N B U D G E T D I S A B I L I T I E S R E A C H 2 3 FLEXIBLE S T O C K P L A N F O R WORKING E X E C U T I V E S TIME H E A L T H Y E A T I N G & N U R S I N G P H Y S I C A L E X E R C I S E R O O M S P R O G R A M S