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Investor Presentation First Quarter 2020 Control Group: 75% Grupo - PowerPoint PPT Presentation

Investor Presentation First Quarter 2020 Control Group: 75% Grupo Bimbo Today Float: 25% Argentina US $6.8 Bn 33 Brazil Canada MARKET CAP 1 COUNTRIES Chile China 197 Colombia US $15.3 Bn Costa Rica PLANTS Ecuador NET SALES 2


  1. Investor Presentation First Quarter 2020

  2. Control Group: 75% Grupo Bimbo Today Float: 25% Argentina US $6.8 Bn 33 Brazil Canada MARKET CAP 1 COUNTRIES Chile China 197 Colombia US $15.3 Bn Costa Rica PLANTS Ecuador NET SALES 2 El Salvador +57,000 France Guatemala ROUTES US $1.99 Bn Honduras India ADJ. EBITDA 3 +2.9 MILLION Italy Kazakhstan POINTS OF SALE Mexico Morroco Nicaragua +1,700 Panama “We strive to be a SALES CENTER Paraguay Peru sustainable, highly Portugal +134,000 Russia productive, and deeply South Africa ASSOCIATES South Korea Spain humane company.” +100 Switzerland Turkey BRANDS Ukranie United Kingdom +13,000 United States Uruguay PRODUCTS Venezuela ______________ (1) As of March 31 th , 2019 . Expressed in US$ at the FX of $23.67 Ps./US. (2) Net sales and Adjusted EBITDA were Ps. $296,806 million and Ps. $38,782 million, respectively. Converted to US dollars using an average FX rate of the period of Ps. 19.42/US$. (3) Adj. EBITDA: Earnings before interests, taxes, depreciation, amortization, Multiemployer Pension Plans (MEPPs) and rent 2

  3. Leading Brands Across our Markets NORTH AMERICA MEXICO LATIN AMERICA EAA U.S. CANADA 3

  4. Global Leader in the Baking Industry Top 3 market share EAA (3) North America (1) within 6 categories Sales: 9% Market share Sales: 50% in most countries (4) • 12K associates leader within • 26K associates 49 plants • 6 categories • 78 plants Canada Sliced bread USA Bagels Breakfast Snack cakes Premium bread Tortillas Market share Mexico Leader within Sales: 32% 7 categories • 76.5K associates • 38 plants Sliced bread Buns & rolls Latin America (2) Sweet baked goods Market share leader Sales: 9% Snack cakes Tostadas in sliced bread and • 20K associates Toasted bread Bars buns & rolls • 32 plants ____________ Figures for the last twelve months ended as of March 31, 2020. Market share information from Nielsen, IRi and Company Information for the countries and categories where Grupo Bimbo participates. (1) Includes operations in the U.S. and Canada. (2) Includes operations in Central and South America. (3) Includes operations in Europe, Asia and Africa. (4) Buns and rolls category excludes U.K and India. Cakes excludes China, Morocco and U.K., Bagels only in the UK market. and Confectionery by a distributor 4

  5. Global Undisputed Baking Industry Leader represents 4.4% of the US$449 Bn Global Baking Industry 1 Over 1.2x second player, Mondelez & 3.6x third player, Campbells’ Soup 1 Artisanal and Private labels representing 46% of industry sales 1 Industry Fundamentals 2 Industry Performance - Resilience to economic downturns - Highly fragmented industry - Europe & North America: largest contributors Average Growth Average Growth to industry revenue in 2019 2014-2019 2019-2024 - North Asia: rising income levels and changing 1 2 diets to bread 4.2% 4.8% Industry Structure Industry Outlook 4 3 Expected Growth from BRIC 3 Countries - - Mature Life Cycle - US market: organic and gluten-free baked - Increasing Regulation Level - High Competition Level goods - Medium Technology Change - Western Europe: whole grain and high-fiber - Low Revenue Volatility breads - Consumers becoming more health-conscious - Low Barriers to Entry and busy looking for snacks Increase in demand for packaged single-serve 100-calorie portions, that can High Growth Momentum in Snacks: easily be consumed while on the move ____________ (1) GlobalData as of 2018, includes Bread and Rolls, Sweet Biscuits (cookies), Savory Biscuits (crackers), Morning Goods, Cakes and Pastries. (2) Industry Fundamentals, Performance, Structure & Outlook: IBISWorld, Global Bakery Goods Manufacturing, January 2020 edition (3) Brazil, Russia, India and China 5

  6. Our Strong Presence and Diversification By Geography By Categories & Products By Channel 10+ Different Categories Sales by Geographic Region Modern North America 50% Supermarkets, convenience Sliced Buns & English Salty Bagels stores, among others Bread Rolls Muffin Snacks Traditional Cookies Cakes Pastries Tortillas Confectionery “Mom & pops” EAA Over 100 Brands 9% QSR Mexico 32% Quick Service Restaurants Latin America 9% Others We have one of the world’s largest DSD Foodservice, vending machines, networks wholesale, among others +1.5 mm daily store visits • • Our distribution fleet travels every day the equivalent of 110 laps around the world ____________ Figures for the last twelve months ended as of March 31 th , 2020. 6

  7. Top Brands >US $250 mm >US $1 billion >US $500 mm >US $100 mm ____________ 7 Source: Internal information on estimated retail sales by brand considering the last twelve months as of March 31 th , 2020

  8. Extensive Markets Knowledge Drives Global Expansion SuccessDrivers Scale and global diversification From U.S. From Mexico From Mexico to 6 countries to 19 countries to 16 countries Distribution efficiencies Strong brand equity From U.S. From Mexico From Mexico Innovation capabilities to 6 countries to 11 countries to 17 countries Product quality From Colombia to 20 countries ____________ 8 Last updated: April 2020

  9. Innovation: Our Key to Success No Added Nonsense (Simple ingredients) A brand of ancient ingredients Snacks expansion Clean Label & compostable packaging Made with five 100% natural ingredients No sugar added No preservatives and artificial colorants added Organic bread 100% natural 9 9

  10. Our Innovation Platform Investment in promising start ups o Streamline and digitize our Mexico & LATAM U S A supply chain o Transforming our distribution models o Engaging in disruptive product innovation o Identifying and leveraging new for business technologies improvement Europe & ROW 10

  11. Our Environmental & Sustaintability Approach 2025 Goals Environmental Strategy Sustaintability Renewable Energy 100% 85% in Mexico, 100% in U.S o RENEWABLE ELECTRIC POWER In Chile, we have the largest solar roof o in all of South America +4,000 o Piedra Larga Windfarm, supplies 70% of the electric power used in Mexico, ELECTRIC VEHICLES Carbon Water preventing the emission of 180,000 tons Footprint Footprint of CO 2 per year Reduction Reduction Electric Vehicles 100 % ) and around o 657 electric vehicles RECYCLABLE, 2,000 that use alternate fuels Waste Natural Capital BIODEGRADABLE, OR Development of electric units by o COMPOSTABLE PACKAGING Management (Supply Chain) Moldex , a Grupo Bimbo affiliate -50% Compostable Packaging Vital Bread is the first compostable FOOD WASTE IN OPERATIONS o package in Latin America 100% Reduced +446,000 kg , a total of 3.3 o CERTIFIED AND SUSTAINABLE SOURCES OF million kgs in the last 10 years PAPER AND BOARD 11

  12. Leading Company in Responsibility & Corporate Governance 1 Top Management | TOP MANAGEMENT Effective response to the constantly changing consumer • demands and competitive environment Name Role Track record of stability and sustainable growth • Successfully developed and consolidated market leadership • Daniel Servitje CEO Diego Gaxiola CFO Corporate Governance Executive VP, Grupo Board of Directors: • Javier González Bimbo 38% are independent o Executive VP, Grupo Rafael Pamias Bimbo 83% men,17% women o Gabino Gómez Executive VP, EAA Committees Chief Information & Raúl Obregón Transformation Officer Audit & Corporate Juan Muldoon Chief People Officer Evaluation & Results Finance & Planning Practices Miguel Ángel President, Bimbo Mexico For the fourth consecutive year, Grupo Bimbo was • Espinoza recognized as one of the “World’s Most Ethical Alfred Penny President, BBU Companies” by The Ethisphere Institute ______________ (1) In Merco's Responsibility and Corporate Governance ranking, Grupo Bimbo was awarded first place for the sixth consecutive year 12

  13. 1Q20 Highlights COVID-19 Initiatives 1Q20 Highlights • Labor flexibility • Net sales grew 7% on the back of strong volumes within every region, notably North America and Mexico • Additional daily hygiene steps with a margin • EBITDA 1 Adjusted grew 11.4%, • Prioritizing high volume SKUs to optimize production expansion of 50 basis points capacity • Reopened our Hazelton Bakery in the U.S. given the high • and the margin Net majority income declined, demand contracted 190 basis points due to a non-cash charge related to the MEPPs liability adjustment • $200 million pesos in global donations: • Free cash flow for the period totaled MXN $2.7 billion Product donations to food banks and foundations o for the construction of a o Economic resources temporary hospital unit in Mexico for medical personnel from public o Box lunches hospitals and face masks to small merchants Mexico ______________ (1) Earnings before interests, taxes, depreciation, amortization, MEPPs and rent 13

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