Res esil ilien ience ce & Foc ocus Investors Presentation - - PowerPoint PPT Presentation

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Res esil ilien ience ce & Foc ocus Investors Presentation May 2018 All the information contained in this document is prepared in accordance with International Financial Reporting Standards (IFRS) as of March 31, 2018, unless otherwise

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Res esil ilien ience ce & Foc

  • cus

Investors Presentation May 2018

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All the information contained in this document is prepared in accordance with International Financial Reporting Standards (IFRS) as of March 31, 2018, unless otherwise stated. Forward-Looking Statement The information herein contained (“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 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

  • ral 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.

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Investmen estment t Cas ase

Years of experience Branded food leader Diversified portfolio Profitable growth strategy Sound financial structure Solid corporate governance Committed to sustainability

+100

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Strate Strategy gy

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Inf nfrastru rastructure cture

15 plants 471 Nutrisa stores 7 tuna vessels 22 distribution centers More than 9,500 employees 56,000 Helados Nestlé POS

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Corp rpora rate te Structure Structure

Grupo Herdez consolidates 100% of the Frozen division, Herdez Del Fuerte, Barilla México y McCormick de México. The proportional part of Herdez Del Fuerte in MegaMex is registered in “Equity Investment in Associates“.

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  • HERDEZ* single series
  • Robust governance structure from

subisidiaries

  • 67% independent members
  • Assignment of individual

responsibilities on corporate governance, labor and environmental practices

Corp rporat rate e Go Gover ernan nance ce

Héctor Hernández-Pons Torres Chairman Enrique Hernández-Pons Torres Vicepresident Flora Hernández de Merino Board member

PROPIETARY INDEPENDENT 67%

Carlos Autrey Maza Enrique Castillo Sánchez Mejorada José Roberto Danel Diaz Eduarto Ortíz Tirado Serrano Luis Rebollar Corona José Manuel Rincón Gallardo

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Sustainab stainabili ility y Mod

  • del

el

A w a r d s & C e r t i f i c a t i o n s

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Le Lead ading ing Bra rands ds

Our brands in Mexico Our brands in United States Distribution agreements in Mexico

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Comme mmercia rcial l Le Leade dership rship

Retail 35% Wholesalers 35% Club stores 8% Nutrisa stores 7% Foodservice 6% DSD (traditional) 5% Convenience 4%

Sales mix by channel

Consolidated figures in million pesos

ALL

Presence in the sales channels in Mexico

Sales mix by category

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Mayonnaise 34% Frozen 16% Pasta 8% Tomato puree 8% Canned tuna 4% Mole 4% Canned vegetables 4% Salsa, 3% Jams, 2% Catsup, 2% Thea, 2% Juice, 1% Food Packaging, 1% Mushrooms, 1% Others 7%

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Seg egmen ents ts

Preserves

79% of net sales C A T E G O R I E S

  • Canned tuna
  • Mayonnaise
  • Mole
  • Tomato puree
  • Pasta
  • Vegetables

C A T E G O R I E S

  • Soft drinks
  • Healthy snacks
  • Frozen yogurt
  • Popsicles
  • Food supplements

C A T E G O R I E S

  • Mexican food
  • Mayonnaise
  • Tea

MegaMex is registered in “Equity Investment in Associates” and includes categories like guacamole, salsas and vegetables.

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Frozen

16% of net sales

Exports

6% of net sales

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Mar arket et Sha hare re in in Mexi xico co

We are #1 or #2 in categories that represents the 82% of

  • ur sales

Canned tuna Mayonnaise Jams Mole Pasta Tomato purée Salsa Vegetables 73% 71% 29% 10% 84% 27% 39% 42%

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Seg egmen ents ts

Integrated communication More consumption

  • ccasions

Regional penetration Health & Wellness

Pre reser erves es Gro rowt wth Dri Driver ers

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Fro roze zen n Gro rowth wth Dri river ers s

Nutrisa stores 46% DSD (traditional) 30% Convenience 13% Retail 8% Others 2% Club stores 1%

Strenghening

  • f new sales

channels Increase store traffic & freezer Sales mix

  • ptimization

SG&A management

SALES MIX by channel

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Consolidated figures in million pesos

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2020 Goals

USD $1B Net sales 14-16% EBITDA margin

Reduce general expenses as a proportion of net sales

Meg egaM aMex Gro rowt wth Dri Driver ers

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Improve gross margins through efficient portfolio management Reduce production costs Increase sales by innovation Accelerate brand growth Expansion of sales channels

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Net et Sales ales

12,197 13,139 14,431 15,953 15,760 1,166 2,139 2,592 2,882 2,908 955 1,079 1,158 1,230 1,288

2014 2015 2016 2017 12M1Q18 Preserves Frozen Exports

Preserves 79% Frozen 15% Exports 6%

CAGR 5years

Preerves 6.6% Frozen 25.7% Exports 7.8%

14,318 16,357 18,181 20,065 19,956 SEGMENT MIX

Consolidated figures in million pesos

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2,232 2,668 2,634 2,888 2,813

117 136

103

277 321

66 83 79 130 134 16.9 17.7 15.5 16.4 16.4

2014 2015 2016 2017 12M1Q18 Conservas Congelados Exportación Margen UAFIDA

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EBITD TDA

Preserves 86% Frozen 10% Exports 4%

SEGMENT MIX CAGR 5years

Preserves 6.6% Frozen 28.7% Exports 19.4%

2,415 2,887 2,816 3,295 3,268

Consolidated figures in million pesos

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Pr Profitab fitabili ility

39.0 41.4 39.9 39.3 39.1 14.8 12.4 13.0 13.9 13.8 16.9 17.7 15.5 16.4 16.4 10.5 7.9 8.8 10.8 10.6 5.4 2.4 3.9 5.2 5.0

2014 2015 2016 2017 12M1Q18

Gross Margin EBIT EBITDA Net Income Majority Net Income

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ROE (Return over Equity) = Majority Net Income / Annual Average Majority Shareholder´s Equity ROIC (Return over Invested Capital) = EBIT / (Consolidated Shareholder´s Equity + Total Debt) (annual average from last two years)

Ret eturns rns

10.2% 13.7% 13.1% 10.9% 12.2% 11.9%

2016 2017 12M1Q18 ROE ROIC

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Sto Stock ck Per erforma rmance ce

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Δ% Herdez Δ% IPC Δ% Consumo Frecuente PA RT O F T H E I N D E X E S

  • Comercial
  • Consumo Frecuente
  • IMC30
  • IPC CompMX
  • IPC SmallCap
  • IPC Sustentable
  • Transforma

march2018

EPS

MXN 2.32

49%

float

432

million

  • utstanding

shares

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De Debt bt Stru Structure cture

Financial Debt 6,530 Average Cost 8.5% Net DEBT/EBITDA 1.5 Net Debt/ Shareholders Equity 0.29

Fija 80% Flotante 20%

MIX RATES

Consolidated figures in million pesos The debt mix considers hedge derivates 200 200 200 930 1,000 2,000 2,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

BBVA CP Herdez 14 HSBC LC Herdez 17-2 Herdez 13 Herdez 17

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For more information:

Andrea Amozurrutia Tel.+52 (55) 5201 5636 aac@herdez.com Grecia Domínguez Tel.+52 (55) 5201 5602 gdominguezl@herdez.com Fernando Acevedo Tel.+52 (55) 5201 5655 ext. 1052 lfacevedom@herdez.com invrel@herdez.com

www.grupoherdez.com.mx