R E S I L I E N C E & F O C U S I N V E S T O R S P R E S E N - PowerPoint PPT Presentation

R E S I L I E N C E & F O C U S I N V E S T O R S P R E S E N T A T I O N M A R C H 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 December 31, 2018, 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 , 4 0 0 P L A N T S E M P L O Y E E S 0 7 23 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 7 9 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 20,971 20,065 15,953 1,531 18,181 1,230 2,985 16,357 2,882 1,158 79% 14% 7% 2,592 14,318 1,079 Preserves Frozen Exports 16,455 15,953 2,139 955 14,431 1,166 13,139 12,197 0 8 CAGR 5 years 9.7% Preserves 7.3% 2014 2015 2016 2017 2018 Frozen 30.7% P R E S E R V E S F R O Z E N E X P O R T S Exports 12.8% CON SOLI 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 3,295 169 130 86% 9% 5% 2,887 332 2,816 277 83 Preserves Frozen Exports 79 3,016 136 2,888 103 2,415 2,668 66 2,634 117 2,232 0 9 17.7 16.9 16.8 16.4 15.5 CAGR 5 years = 11.4% Preserves 10.0% 2014 2015 2016 2017 2018 Frozen 24.5% E X P O R T S E B I T D A M A R G I N Exports 21.9% 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 1% Tomato purée 5% 2% Exports 32% 2% 33% Home-style salsa 2% 6% Club stores Mole 2% 1 0 Tuna 3% Nutrisa stores Vegetables 7% 4% Foodservice Tea DSD traditional 5% Jams 7% Ketchup Others 5% Fresh tuna Convenience 14% 7% Food packaging 31% 8% Juice Others CON SOLI 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 20% R E D U C T I O N O F V E R S I O N S Pasta D I S T R I B U T I O N G A P S Tomato purée Tuna 39% 2% Mole 1 1 3% Vegetables 3% Home-style salsa C O N S U M E R 4% Jams I N S I G H T S ’ H O L I S T I C B A S E D 5% C O M M U N I C A T I O N Tea I N N O V A T I O N Others 5% 10% 9% C O N S O L I D A T 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 A L 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 Net sales: 7.3% 16,455 15,953 EBITDA: 10.0% 14,431 13,139 12,197 11,558 20.3% 18.3% 18.3% 18.3% 18.1% 1 2 16.2% 2013 2014 2015 2016 2017 2018 NET SALES EBITDA MARGIN C O N S O L I D A T 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 72% 73% M A Y O N N A I S E that represent P U R É E 72% of our sales in Mexico 83% 27% M O L E V E G E T A B L E S TH I RD P A RTY I NFORMA TI ON CON SI DERI NG MODERN TRA DE A N D WH OLESA LERS

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% 2% PORTFOLIO TRAFFIC & 9% SEGMENTATION FREEZER Nutrisa stores BY CHANNEL PRODUCTIVITY DSD traditional 14% 1 5 Convenience 44% 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 Foodservice 30% CON SOLI DATED FI GURES IN MI LLI ON PESOS CONSI DERING SALES I N MEXI CO

FROZEN PERFORMANCE CAGR 5 YEARS Net sales: 30.7% EBITDA: 24.5% 2,985 Acquistion of Nutrisa Acquisition of Nestlé 2,882 2,592 14.2% 2,139 11.1% 1 6 10.0% 9.6% 1,166 783 6.3% 4.0% 2013 2014 2015 2016 2017 2018 NET SALES EBITDA MARGIN CON SOLI 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 E R A TE G R O W M E G A M E X 14-16% EBITDA H O U S E H O LD P E N E T R A T IO N S H A R E P E N E T R A T IO N margin

M E G A M E X P E R F O R M A N C E 13,258 CAGR 5 YEARS 12,168 Net sales: 12.5% EBITDA: 34.5% 10,840 8,876 18.3% 7,689 16.3% 7,341 15.0% 14.2% 13.7% 2 0 7.5% 2013 2014 2015 2016 2017 2018 NET SALES EBITDA MARGIN CON SOLI 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 Guacamole Home-style salsa 5% 2%2%2% Tortillas 2% 3% INCREASE HOUSEHOLD Mole 34% 4% PENETRATION Taco sauce 2 1 4% 71% of U.S. households Peppers buy avocados 9% RFG meals FRZ meals MARKET SHARE* Tortilla chips 33% Enchilada Sauce 13% H O M E - S T Y L E 37% 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 P A RTY I NFORMA TI ON CON SI DERI NG MODERN TRA DE