INVESTOR RELATIONS C O R P O R A T E P R E S E N T A T I O N May 2019
SAFE HARBOR DISCLOSURE This presentation may contain certain forward-looking statements and information relating to the Company that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2 M a y 2 0 1 9
WHO WE ARE Genomma Lab Internacional, S.A.B. de C.V., one of the leading pharmaceutical and personal care products companies in Mexico with an increasing international presence, develops, sells and markets a broad range of premium branded products, many of which are leaders in their categories. 3 M a y 2 0 1 9
A LEADING OTC & PERSONAL CARE COMPANY Develop, sell and market a broad range of leading OTC and personal care brands throughout Mexico & LatAm • Diversified portfolio of trusted brands- many of which are category leaders • Growing international presence and revenue base • • Success based on: Effective new product development process • Marketing and Sales “Execution Machine” • Broad retail distribution network • Low-cost , highly flexible operating model. • 4 M a y 2 0 1 9
POWER BRANDS IN MULTIPLE CATEGORIES Anti-mycotics 5 M a y 2 0 1 9
OUR FOOTPRINT “ Innovation is part LatAm 45.9% Points of Sale of our DNA” 290,000+ of net sales Mexico 42.9% Countries 19 of net sales USA 11.2% Production facilities 1 of net sales 982 Brands 40+ employees 6 *As of March 2019 LTM. M a y 2 0 1 9
BUSINESS ON TRACK FOR SUSTAINED PROFITABLE GROWTH Strong trend of strengthened consolidated earnings , cost reduction and EBITDA expansion • Sustainable business model • Mexico manufacturing facility : improves value, margins, product quality and fill-rate • Positive impact from the vertical integration of manufacturing activity to begin during the • second half of 2019. 7 M a y 2 0 1 9
GROWTH ACHIEVED IN OTC AND PC Sales by Category (Million MXN) 11,921 CAGR +8.1% Personal 51% Care 6,264 45% PC 49% OTC 50% Over the Counter Generics 5% 2010 1Q-2019 LTM 8 M a y 2 0 1 9
20+ YEARS OF EXPERIENCE Genomma was 1996 Private Equity Fund founded investment for 30% 2004 equity Initial Public 2008 Offering - BMV Began operations in 2010 Brazil & United States Added to the Stock Indexes and first Local 2013 New management team, Bond Issuance strengthened policies 2015 and processes Top-line growth and Own production 2019 EBITDA margin 2017 facility* expansion *Estimated to be opening by 1H-2019. 9 M a y 2 0 1 9
GROWTH COMPLEMENTED BY ACQUISITIONS “M&A represents 27.4% of Genomma’s consolidated sales 1 ” 2014 - 2019 2008 2012 2013 2017 2018 1996 2007 2009 2010 2011 (manufacturing Turnaround Consolidation capabilities) Process (1) Consolidated Sales as of December 2018 FY. 10 M a y 2 0 1 9
WELL DIVERSIFIED BY REGION & CURRENCIES 100% 100% US US Dollar (11.2%) %) Other currencies (45.9%) %) 23.2% 1. Argentine Peso 57.1% 2. Real 3. Colombian Peso International 4. Chilean Peso 5. Sol 6. Uruguay Peso 76.8% 7. Guarani Mexico 42.9% Mexican Peso Peso (42.9%) %) 2010 1Q-2019 FY LTM 15 19 countries countries *Consolidated Net Sales as of March 2019 LTM. 11 M a y 2 0 1 9
OTC MARKET SHARE BY COUNTRY Top Two Countries Highly Fragmented By category penetration As a percentage of sales Hispanic OTC 46.1% position 3rd. position 1st. PLACE Total OTC MEXICO PLACE 8.8% USA 0.5% 14.9% position position 42nd. 1st. PLACE ARGENTINA PLACE BRAZIL CAM 1 PERU COLOMBIA CHILE ECUADOR 6.7% 4.9% 5.7% 2.9% 3.7% position position position position position 9th. 3rd. 5th. 6th. 4th. (1) Central America: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Puerto Rico, Dominican Republic and Trinidad y Tobago. 12 M a y 2 0 1 9
CORPORATE PLATFORM EFFICIENTLY SUPPORTS GROWTH 13 M a y 2 0 1 9
LEADERSHIP EVOLUTION RODRIGO MÁXIMO JORGE LUIS HERRERA JUDA BRAKE 1998 – 2015 2015 – 2018 As of Sept. 10, 2018 Experience: Experience: Experience: • Founder of Genomma • COO, Head of • Senior Vice President Lab Internacional International at Laureate Education • Chairman of the Board • Launched Genomma’s Inc. • CEO of P&G’s Latin of Directors Argentina, Brazil and • Main Shareholder US operations America division TOP-LINE GROWTH FOUNDER TURN-AROUND 14 M a y 2 0 1 9
MANAGEMENT TEAM ANTONIO MARCO SANTIAGO CÉSAR JARAMILLO ZAMORA SPARVIERI VÉLEZ VP Manufacturing EVP Marketing CFO COO and R&D JOINED FEB 2017 JOINED SEPT 2017 JOINED DEC 2015 JOINED APRIL 2014 Prior Experience: Prior Experience: Prior Experience: Prior Experience: • 25 year as: • 20-year career in • CCO Cydsa • EVP Sales P&G • CEO and Founder of • CFO Grupo LALA • 20+ years of marketing with P&G • Strategic & Quala in Venezuela, • Head of marketing experience in Dominican Republic at Grupo Televisa, Financial Planning consumer goods & Mexico S.A.B. PEPSICO • 7 years as CMO • McKinsey & Co Quala Colombia. 15 M a y 2 0 1 9
SUCESSFUL COST CONTAINMENT STRATEGY Warehouse Space (m 2 ) Corporate Office Space (m 2 ) 165,000 6,000 2,800 36,047 2014 2018 2014 2018 16 M a y 2 0 1 9
INCREASED EFFICIENCY WITH COST CONTAINMENT STRATEGY Employees 1,107 (40.6)% MEXICO 687 INTERNATIONAL 238 13.9% 295 Sep 2014 Dec 2018 17 M a y 2 0 1 9
CASH CONVERSION CYCLE 1 “New management 250 team has improved the 205 Cash Conversion 200 Cycle by 65 days 1 ” 158 155 144 150 114 90 93 90 93 91 97 91 100 86 71 74 82 82 78 50 0 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Prior Management New Management (1) Cash Conversion Cycle = Days of accounts receivable + days of inventories – days of trade payables 18 M a y 2 0 1 9
FINANCIAL POSITION Net DEBT profile 5,724 4,605 4,454 4,459 3,980 3,689 3,610 2,575 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q1'19 Net Debt / 1.8x 1.0x 1.2x 2.3x 2.5x 1.4x 1.4x 1.97x Adj. EBITDA Free Cash Flow 1,470 (2,795) (851) (1,324) 2,062 1,942 1,510 1,145 (LTM) • Adjusted EBITDA for 2015 and 2016. 19 • FCF adjusted by plant investments in 2017, 2018 and 2019. M a y 2 0 1 9
PILLARS OF THE NEW STRATEGY World-class manufacturing 1 Product innovation and 3 and supply chain Growth portfolio optimization capabilities and Industrial Integration Corporate culture focused Strategy Best in class 2 4 on consumers, employees go-to-market and internal talent 20 M a y 2 0 1 9
BUSINESS MODEL Management team Strengthens reinforcement advertising and online marketing Increase Value, Market Share & Ensure Sustainability Improve point of Develop manufacturing sale execution capabilities 21 M a y 2 0 1 9
NET SALES & EBITDA OUTLOOK Net Sales (in MXN$ mm, accumulated periods considering last twelve months LTM) $12,078 $11,898 $11,886 $11,900 $11,794 $11,921 $11,669 $11,741 $11,556 “Consolidated $11,287 $11,316 $11,043 $11,125 $10,988 Quarterly Earnings reflect trend of 2015 FY 2016-1Q 2016-2Q 2016-3Q 2016 FY 2017-1Q 2017-2Q 2017-3Q 2017 FY 2018-1Q 2018-2Q 2018-3Q 2018 FY 2019-1Q positive Adjusted (2) EBITDA (1) compounded growth” $3,000 50.0% $1,798 $1,851 $1,792 $1,986 $2,205 $2,337 $2,401 $2,503 $2,600 $2,573 $2,574 $2,411 $2,378 $2,336 $2,000 30.0% 19.6% 20.9% 20.2% 20.0% 20.4% 21.0% 21.5% 21.6% $1,000 21.6% 10.0% 19.5% 16.3% 16.3% 17.6% 16.6% $0 -10.0% 2015 FY 2016-1Q 2016-2Q 2016-3Q 2016 FY 2017-1Q 2017-2Q 2017-3Q 2017 FY 2018-1Q 2018-2Q 2018-3Q 2018 FY 2019-1Q (1) EBITDA is calculated by adding depreciation and amortization to the Operating Income. EBITDA Margin (2) Adjusted by adding restructuring non-recurring charges and one-time, non-cash charges in 2015 and 2016. 22 M a y 2 0 1 9
NEW PRODUCTION FACILITY 22 M a y 2 0 1 9
INVESTMENT RATIONALE Enhanced Value Equation Superior Higher Product Gross Quality Margin Reliable Product Supply 24 M a y 2 0 1 9
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