INNOVATING THE INDUSTRY TO MANAGE MARKET CHANGE. MEXICO Antonio - PowerPoint PPT Presentation

Industry Status and Updates INNOVATING THE INDUSTRY TO MANAGE MARKET CHANGE. MEXICO Antonio Guerra Autrey Chief Executive Officer, GRUPOMAR, Mexico

Tuna industry contributes to economic development in Mexico. FLEE • 51 vessels T ECONOMIC IMPACT (20% of OPO) • Average catch: 128,000 t / yr. • + 49,000 m3 of carrying capacity. (23% of OPO) • Domestic market value: US $ 700 M • Value of exports: US $ 90 M JOB CREATION NUTRITION AND • +12,000 direct jobs ALIMENTARY SECURITY • +60,000 indirect jobs • Domestic consumption of 180,000 t. per year • + 4 milion cans packed daily • 9 cans / per capita / year 1 – v.10.05.18

The Mexican fleet Composition of the Mexican fleet by carrying capacity ( t.) 1 5* 12 9 COMPANIES 33 51 VESSELS CARRYING + 49,000 CAPACITY (t.) Number of vessels. 2 – v.10.05.18

The Mexican fleet …. Carrying capacity by company ( thousands of tons ) Total: 49,063 t. 3 – v.10.05.18

Mexican catch Catch by Species Total Catch by Year ( Average 2013-2017) ( Thousand metric tons (t) ) 160 139 139 136 140 128 81% 115 [VALOR]* 120 3% 100 13% 80 60 Skypjack Bluefin Other Yellowfin 40 Aleta Amarilla Barrilete Aleta Azul Otros AVG 2013 2014 2015 2016 2017 PROM Source: IATTC , * Estimated fU 4 – v.10.05.18

Tuna fishing in Mexico is a sustainable industry. The Pacific Alliance for Sustainable Tuna , comprised by 4 principal players representing more than 90% of the yellowfin/skipjack fishing effort in Mexico, is certified by the Marine Stewarship Council as a sustainable fishery. GRUPOMAR RECEIVES ITS MSC CERTIFICATION fU 5 – v.10.05.18

Mexican consumer preferences Top 3 attributes consumers look for when choosing a brand 95% of the 1. Flavor households that buys 2. Quality tuna: 3. Price The most common dish 86% consume it prepared with tuna : 35% consume it at home at lunch immediately time Salads + 65% consume it 70% prepares it Mayonnaise afterwards as main dish + Vegetables 8 – v.10.05.18

A growing demand for tuna … Total Population of Mexico by Age Group Projected Growth of the Tuna Market in Mexico 1950-2050 ( X1000 ) 2010-2050 ( Million of cases x48 cans) 35 31 30 30 25 23 25 21 20 2010 2020 2030 2040 2050 *Based on estimated current per capita consumption in Mexico of 9 cans/yr. *Source. Data form te United Nations. World Population Prospect-2012, New York. 6 – v.10.05.18

At Grupomar, we face market changes and challenges with innovation!!  Products.  Fishing Fleet  Processing  Administrative Processes.  Marketing  Etc. 9 – v.10.05.18

Consumption of canned tuna in Mexico (2017) … TOTAL GRUPOMAR 14.1 -3 16.6 11.2% 5.4 -8.0 13.6 -1.1 14.6 -3% -4.4 RY17 RY18 S ales units (kg ‘000) S ales value ( MXP ‘000) S ales units (kg ‘000) Source: Nielsen, Total Mexico Controlled labels Varieties In water In oil 7 – v.10.05.18

The domestic market has been evolving due to changes in the lifestyle of the population and new consumption trends that are changing preferences.  Higher awareness about nutrition and health  Changes in lifestyle  Demand for more convenient packaging and portioning  More specialized market niches 10 – v.10.05.18

Salads and pouch packing Salads The development of tuna, salmon, chicken salads was an important step in the diversification of our products. Pouch Tuna packed in pouches provides a convenient option to have a healthy meal for people with busy lifes. 11 – v.10.05.18

Specialities and Tuny to Go Specialities Following changes in the tastes of our clients, Tuny developed speciality products like tuna, salmon, squid, chicken and octopus in different sauces and flavors. Tuny to Go Pouch Easy to carry and consume, the Tuny to Go line is focused on school children and people in general that have to eat in a hurry. 12 – v.10.05.18

Frozen and gourmet Frozen Tuna medallions and tuna burgers are part of Following changes in the our frozen Line taste of our clients, Tuny developed speciality products like tuna, salmon, squid, chicken Gourmet and octopus in different sauces and tastes. Pouch For the gourmet market, Tuny offers tuna loins and sardines in high- end presentations 13 – v.10.05.18

Food service In cans and pouch presentation, Tuny provides its institutional clients with high quality tuna in large portions and convenient packing. 14 – v.10.05.18

The Tuny brand is present in several foreign markets Grupomar is the only Mexican tuna company that holds, among others, two very important certifications : CANADA It certifies that Grupomar’s products comply with Muslim markets requirements. U.S.A. PUERTO RICO GUATEMALA BRC Global Standard for Food Safety is internationally recognized quality certification. EL SALVADOR HONDURAS NICARAGUA COSTA RICA PANAMA 15 – v.10.05.18

Our company  Grupomar is a company where sustainable fishing and constant innovation are core values applied to its business models and strategies.  Grupomar grows inside Mexico and beyond its borders developing a Antonio Suárez Gutierrez greater regional influence President of Grupomar and positioning its products and brands in other markets. 16 – v.10.05.18

Thank you very much for your attention ! Antonio Guerra Autrey C.E.O. of Grupo Marítimo Industrial 17 – v.010.05.18