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 J A N U A R Y 2 0 1 9

All the information contained in this document is prepared in accordance with International Financial Reporting Standards (IFRS) as of September 31, 2018, unless otherwise stated. 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 herein contained (“Information”) has been prepared by Grupo Herdez, S.A.B. de C.V., its associates, subsidiaries and/or companies (“Grupo Herdez”) and may contain forward-looking affiliated statements that reflect Grupo Herdez current expectations and views which could differ materially due to different 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 generality of the foregoing, no warranty is given as to the accuracy of the statements or the future variation of the Information or any other written or oral Information issued by Grupo Herdez. The Information has been delivered for informative purposes only. The issuance of this information shall not be taken as any form of commitment on the part of Grupo Herdez to proceed with any transaction.

OUR H I S T O R Y 1914 We started exporting products and 1910 1980 2000 2002 changed our name to Herdez Compañía Comercial We created Barilla México and Herdez is established started producing and selling pasta in the Mexican market 2006 We entered the apiculture We signed the distribution business with the acquisition of agreement with Ocean Spray miel Carlota 2008 1987 Herdez del Fuerte is created 1947 1940 We created Fundación Herdez to We created McCormik México, contribute and disseminate new 2009 entering the mayonnaise food possibilities in Mexico MegaMex, a subsidiary of Herdez del category Fuerte, begins operations in USA 1989 0 3 We signed a distribution 2010 2010 agreement with Kikkoman We signed the distribution agreement with Reynold’s 1960 1962 1990 We created our own line of 1991 MegaMex strengthens its portfolio products under the Herdez brand We made the IPO of Grupo Herdez with the acquisition of Don Miguel and in the preserves segment in the Mexican Stock Exchange Fresherized Foods in 2010 and 2011, respectively 1970 The slogan “Con toda confianza… We acquired Grupo Búfalo and 2011 es Herdez” is born Pescados de Chiapas, entering We partner with Aires de Campo, the the canned tuna category leading Company in organic food in Mexico With the acquisition of Mole Doña María, we became the first 1993 We created the Frozen segment with the Company to produce mole on an We entered the coffee category acquisition of Nutrisa in 2013 and Helados industrial scale Nestlé in and 2015 2017 We started the distribution of Frank’s and French’s

C O R P O R A T E S T R U C T U R E Grupo Herdez consolidates 100% of the Frozen divi- sion, Herdez Del Fuerte, Barilla México y McCormick de México. 0 4 50% 50% 50% 100% The proportional part of Herdez Del Fuerte in Mega- McCormick México Barilla México Herdez Del Fuerte Frozen division since 1947 since 2002 since 2008 Mex is registered in “Equity Investment in Associates“. Nutrisa 2013 Helados Nestlé 2015 50% MegaMex since 2009

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 5 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 6 O R G A N I C D E V E L O P M E N T / O P E R A T I O N A L I N T E R N A T I O N A L I N N O V A T I O N G R O W T H A C Q U I S I T I O N O F E F F I C I E N C Y G R O W T H I N F R A S T R U C T U R E S U S T A I N A B L E D E V E L O P M E N T

I N F R A S T R U C T U R E 15 M O R E T H A N 9 , 3 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 4 7 9 N U T R I S A 5 3 , 0 0 0 + H E L A D O S S T O R E S N E S T L É P O S

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 8 O U R B R A N D S I N U N I T E D S T A T E 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

B R A N D P R E S E N C E 0 9 P R E S E N C E I N 2 5 C O U N T R I E S Mexico, United States , Bolivia, Canada, Chile, Costa Rica, Cuba, Czech Republic, Dominican Republic, Dubai, Ecuador, Germany, Guatemala, Haiti, Honduras, Jamaica, New Zealand, Nicaragua, Portugal, Russia, Salvador, South Korea, Spain, Switzerland, and Uruguay.

S E G M E N T S P R E S E R V E S F R OZ E N E X P O R T S O F N E T S A L E S O F N E T S A L E S O F N E T S A L E S 79% 14% 7% 1 0 C A T E G O R I E S C A T E G O R I E S C A T E G O R I E S Canned tuna Soft drinks Mexican food Mayonnaise Healthy snacks Mayonnaise Mole Frozen yogurt Tea Tomato purée Popsicles Pasta Food supplements Vegetables MegaMex is registered in “Equity Investment in Associates” and includes categories like guacamole, salsas and vegetables.

C O M M E R C I A L L E A D E R S H I P 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 1% Frozen 1% 2% 2%1% 4% 5% Pasta 2% Retail 3% 6% Tomato purée 4% Wholesalers Others 35% 35% 7% 4% Mole Presence in Club stores Presence in 1 1 Canned tuna 4% ALL the major food Vegetables the sales channels Nutrisa stores 8% categories in Mexico Salsa 8% in Mexico Foodservice Marmalade Ketchup DSD traditional 8% Tea Thea 16% Convenience Food packaging 8% 35% Juice Mushrooms CON SOLI DATED FI GURES IN MI LLI ON PESOS CONSI DERING SALES I N MEXI CO

M A R K E T S H A R E I N M E X I C O 8 % 29% C A N N E D T U N A P A S T A T O M A T O 1 2 73% M A Y O N N A I S E 72% P U R É E We are #1 or #2 in categories that represents 41% 44% S A L S A J A M S 79% of our sales 84% 27% M O L E V E G E T A B L E S FI GURES A S OF A UG UST

P R E S E R V E S G R O W T H D R I V E R S R E G I O N A L I N T E G R A T E D P E N E T R A T I O N C O M M U N I C A T I O N 1 3 B R O A D E R H E A L T H & C O N S U M P T I O N W E L L N E S S O C C A S I O N S

P R O D U C T I N N O V A T I O N P R O D U C T PREMIUM VERSIONS CO-CREATION 1 4 RESPONSIBLE CONSUMPTION BROADER HABITS CONSUMPTION OCCASIONS

P O I N T O F S A L E I N I T I A T I V E S 1 5

F R O Z E N G R O W T H D R I V E R S S A L E S M I X B Y C H A N N E L 1% 2% 8% INCREASE STORE PORTFOLIO TRAFFIC & Nutrisa stores SEGMENTATION FREEZER BY CHANNEL PRODUCTIVITY DSD traditional 13% 46% Convenience 1 6 Retail THIGHT S T R E N G T H E N I N G Others SG&A OF SALES CONTROL C H A N N E L S 30% Club stores CON SOLI DATED FI GURES IN MI LLI ON PESOS CONSI DERING SALES I N MEXI CO

P R O D U C T I N N O V A T I O N RENEWED IMAGE WITH CLEANER LABELS 1 7 LEVERAGING IN THE POWER BRANDS

N U T R I S A R E N O V A T I O N A F T E R 1 8 B E F O R E

M E G A M E X G R O W T H D R I V E R S E X P A N S I O N A C C E L E R A T E I N C R E A S E O F S A L E S B R A N D SALES BY C H A N N E L S G R O W T H I N N O V A T I O N 2020 Goals 19 USD $1B Net sales I M P R O V E G R O S S R E D U C E R E D U C E G E N E R A L M A R G I N T H R O U G H E X P E N S E S AS A P R O D U C T ION 14-16% EBITDA E F F I C EN T P R O P O R T I O N C O S T S P O R T A F O LI O margin OF NET SALES M A N A G E M E N T

MEGAMEX LEVERAGE ON THE SALES MIX ADOPTION OF GREEN SALSA AND STREET INSPIRED FOOD Guacamole Salsa 4% 2%2% 2% Tortillas 2% 4% Mole 34% 4% Peppers 4% 2 0 Taco sauce 9% RFG meals FRZ meals INCREASE HOUSEHOLD Tortilla chips PENETRATION 33% Enchilada sauce 71% of U.S. households Others buy avocados CON SOLI DATED FI GURES IN MI LLI ON PESOS

MEGAMEX PERFORMANCE CAGR 5 YEARS 12,168 12,168 Net sales: 13.9% EBITDA: 24.3% 10,840 8,876 7,689 15.0% 15.0% 14.5% 14.2% 2 1 10.7% 2014 2015 2016 2017 12M3Q18 NET SALES EBITDA MARGIN CON SOLI DATED FI GURES IN MI LLI ON PESOS

N E T S A L E S S E G M E N T M I X 20,688 20,065 18,181 15,953 1,478 1,230 16,357 2,972 2,882 1,158 79% 14% 7% 14,318 2,592 1,079 Preserves Frozen Exports 16,238 15,953 2,139 955 14,431 1,166 13,139 12,197 2 2 CAGR 5years = 9.6% Preserves 7.4% Frozen 26.4% 2014 2015 2016 2017 12M3Q18 Exports 11.6% P R E S E R V E S F R O Z E N E X P O R T S 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 3,399 3,295 156 2,887 130 2,816 333 277 83 79 136 2,910 2,415 2,888 103 2,668 2,634 66 85% 10% 5% 117 2,232 Preserves Frozen Exports 17.7 2 3 16.9 16.4 16.4 15.5 2014 2015 2016 2017 12M3Q18 CAGR 5years = 8.9% E X P O R T S E B I T D A M A R G I N P R E S E R V E S F R O Z E N Preserves 6.9% Frozen 29.9% Exports 24.0% CON SOLI DATED FI GURES IN MI LLI ON PESOS