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

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 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 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. 2

Investmen estment t Cas ase +100 Years of Branded food Diversified Profitable growth experience leader portfolio strategy Sound financial Solid corporate Committed to structure governance sustainability 3

Strate Strategy gy 4

Inf nfrastru rastructure cture 7 471 15 tuna Nutrisa plants vessels stores 56,000 22 More than Helados distribution 9,500 Nestlé centers employees POS 5

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 “. 6

Corp rporat rate e Go Gover ernan nance ce Héctor Hernández-Pons Torres Chairman • HERDEZ* single series Enrique Hernández-Pons Torres PROPIETARY Vicepresident • Robust governance structure from Flora Hernández de Merino subisidiaries Board member • 67% independent members Carlos Autrey Maza • Assignment of individual Enrique Castillo Sánchez Mejorada responsibilities on corporate governance, labor and José Roberto Danel Diaz INDEPENDENT environmental practices Eduarto Ortíz Tirado Serrano 67% Luis Rebollar Corona José Manuel Rincón Gallardo 7

Sustainab stainabili ility y Mod odel el A w a r d s & C e r t i f i c a t i o n s 8

Le Lead ading ing Bra rands ds Our brands in Mexico Our brands in United States Distribution agreements in Mexico 9

Comme mmercia rcial l Le Leade dership rship Sales mix by channel Sales mix by category Mushrooms, 1% Food Packaging, 1% DSD Others Convenience Juice, 1% (traditional) 7% 4% Thea, 2% 5% Catsup, 2% Foodservice 6% Jams, 2% Presence in Retail Mayonnaise Salsa, 3% Nutrisa stores ALL 35% 34% Canned 7% vegetables 4% Club stores the sales channels in Mole 8% 4% Mexico Canned tuna 4% Tomato puree 8% Wholesalers Frozen Pasta 35% 16% 8% Consolidated figures in million pesos 10

Seg egmen ents ts Preserves Frozen Exports 79% of net 16% of net sales 6% of net sales sales 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 puree • Popsicles • Pasta • Food supplements • Vegetables • MegaMex is registered in “ Equity Investment in Associates ” and includes categories like guacamole, salsas and vegetables. 11

Mar arket et Sha hare re in in Mexi xico co 29% 10% Canned tuna Pasta We are #1 or #2 71% Mayonnaise Tomato purée in categories that 73% represents 39% Jams Salsa the 82% of 42% our sales 84% 27% Mole Vegetables 12

Seg egmen ents ts Pre reser erves es Gro rowt wth Dri Driver ers More Regional consumption penetration occasions Health & Integrated Wellness communication 13

Fro roze zen n Gro rowth wth Dri river ers s Club stores 1% Sales mix Increase store Others Retail 2% 8% optimization traffic & freezer Convenience 13% Nutrisa stores SALES MIX 46% by channel Strenghening SG&A of new sales DSD (traditional) management 30% channels Consolidated figures in million pesos 14

Meg egaM aMex Gro rowt wth Dri Driver ers Accelerate Expansion of Increase sales 2020 Goals brand growth sales channels by innovation USD $1B Net sales 14-16% EBITDA margin Improve gross Reduce general Reduce margins through expenses as a production efficient portfolio proportion of costs management net sales 15

Net et Sales ales CAGR 5years Preerves 6.6% 20,065 19,956 Frozen 25.7% 1,230 18,181 1,288 Exports 7.8% Exports 6% 16,357 1,158 2,882 2,908 Frozen 1,079 2,592 14,318 15% 15,953 15,760 2,139 955 SEGMENT 14,431 1,166 13,139 MIX 12,197 Preserves 79% 2014 2015 2016 2017 12M1Q18 Preserves Frozen Exports Consolidated figures in million pesos 16

EBITD TDA CAGR 5years Preserves 6.6% Frozen 28.7% Exports 19.4% 3,268 Exports 3,295 4% Frozen 130 134 2,887 2,816 10% 277 321 83 79 136 2,888 103 2,415 2,813 2,668 2,634 SEGMENT 66 117 MIX 2,232 17.7 16.9 Preserves 16.4 16.4 86% 15.5 2014 2015 2016 2017 12M1Q18 Conservas Congelados Exportación Margen UAFIDA Consolidated figures in million pesos 17

Pr Profitab fitabili ility 41.4 39.9 39.3 39.1 39.0 17.7 16.9 16.4 16.4 15.5 14.8 13.9 13.8 13.0 12.4 10.8 10.6 10.5 8.8 7.9 5.4 5.2 5.0 2.4 3.9 2014 2015 2016 2017 12M1Q18 Gross Margin EBIT EBITDA Net Income Majority Net Income 18

Ret eturns rns 13.7% 13.1% 12.2% 11.9% 10.9% 10.2% 2016 2017 12M1Q18 ROE ROIC 19 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)

Sto Stock ck Per erforma rmance ce 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 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 432 EPS 49% million MXN 2.32 float outstanding march2018 shares 20

De Debt bt Stru Structure cture Flotante 20% MIX RATES Fija 80% 2,000 2,000 Financial Debt 6,530 Average Cost 8.5% 930 1,000 200 Net DEBT/EBITDA 1.5 200 200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Net Debt/ BBVA CP Herdez 14 HSBC LC Herdez 17-2 Herdez 13 Herdez 17 Shareholders Equity 0.29 Consolidated figures in million pesos 21 The debt mix considers hedge derivates

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 22