corporate presentation 4q20 corporate presentation - sigma … · 2021. 3. 10. · corporate...
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CORPORATE PRESENTATIONCorporate Presentation 4Q20
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Sigma as part of ALFA
8 out of 10 Mexican
Corporates use Axtel’s IT
and Telecom services
#1 in the production of PTA,
PET and EPS in the Americas
11 Sigma brands sell more
than US $100 Million a year
each
Petrochemicals Food Products IT + Telecom
1 out every 4 new cars sold
in the world contains at least
one Nemak product
Aluminum Autoparts
1
51% of Total Revenues ¹
41% Total EBITDA ¹
(1) LTM in USD; ALFA and Subs with Nemak as Discontinued Operations
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Investment Highlights
• Global food company with leading positions across markets.
• Diverse portfolio of leading brands across categories and consumer segments.
• Consumer driven innovation supported by proprietary R&D platform.
• Extensive supply chain and distribution network with scalable operations and go-to-market capabilities.
• Track record of profitable growth with significant upside opportunities.
• Disciplined M&A strategy with proven integration capabilities.
• Experienced management team
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Sales distribution by region
LTM 4Q20
Europe
37%
LatAm
7%
Net Sales LTM 4Q20
US $6.3 bn.
EBITDA LTM 4T20
US $684 mn.
USA
15%USA
18%
Operation in 18 countries
México
38%
A leading global company
CORPORATE PRESENTATIONCORPORATE PRESENTATION
We bring communities everywherefavorite foods to love
+645,000 Points of Sale
+43,000 Employees
70 Manufacturing Facilities
210 Distribution Centers
Cooked Meats60% of Net Sales
Other Categories5% of Net Sales
Dairy19% of Net Sales
Dry Meats16% of Net Sales
CORPORATE PRESENTATIONCORPORATE PRESENTATION
By category
Net sales breakdown
By geography
A unique story of transformationNet sales(US$ M)
EBITDA(US$ M)
Facilities EmployeesCountries
$6,347 $684
$882 $125 8 ~12,500
70 ~43,00018
Europe Mexico
US LatAm
4
National leadership
2000
202038%
37%
18%
7%
$2,618 $288 34 ~29,0009
International expansion
2010 76%
15%9%
Global player
74%
25%
60%16%
19%
5%
63%
32%
5%
Cooked Meats Dairy
Dry Meats Other categoriesWe have increased Net Sales 7.2x and EBITDA 5.5x since 2000
98%
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Portfolio of leading brands across categories and different segments
Yogurt OtherCheesePackaged meats
Our broad portfolio help us capture demand and top line growth across different economic cycles
High
Middle
Value
Low-end
Premium
Market segment
~7% of our revenues are from licensed brands(1)
(1) Includes the distribution of recognized third party brands such as Yoplait®, Oscar Mayer®, Grill Mates®, among others
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Leading positions across marketsLocal favorites everywhere
Brands with net sales over US$100 mm
Packaged meats
Dry ham
Dry ham
Packaged meats
Dry sausages
Packaged meats
Dairy
Packaged meats
Yogurt
Packaged meats3
Franks
Hispanic packaged
meats
Heritage products
Note: Yoplait® is licensed by third party
Packaged meats
Mexico & LatamEurope United States
Dairy
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Extensive supply chain and distribution network
• Broad and efficient global sourcing, manufacturing and distribution footprint serving +645,000 points of sale
• International safety and quality standards throughout the entire supply chain
• Data analytics driven decisions
• Formulation expertise to optimize the effects in raw materials changes, maintaining consumer preference
Europe US Mexico Latin AmericaTotal
2518+62,000
614+145,000
26139+343,000
1339+95,000
70210+645,000
Production Sites Distribution Centers and Warehouse Points of sales
CORPORATE PRESENTATIONCORPORATE PRESENTATION
M&A Track Record
• 30 successful M&A transactions since 1997
• Experienced, dedicated team with strong
track record
• Significant value creation through synergies
and post-merger integration process
• Financial discipline and accelerated
deleveraging capacity
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Consumer driven innovation supported by proprietary R&D platform
Consumer research process• +260,000 contacts per year• Proprietary mathematical
models
Research & Development• Specialized Facilities (2 research
centers, 6 pilot plants, etc.)
• +200 Specialists and +40 patents• R&D alliances with educational and
governmental institutions
Sigma Innovation system• Iterative innovation process
based on Design Thinking
Product Design
Creating a culture ofinnovation
New products represented ~9% of L36M as of 4Q20
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Growth avenues
Snacking
Business unit working across geographies
Higher demand of protein-based snacks
3% of 2020 Net Sales
Alternative Proteins
New sources of protein to cover current flexitarian trends
+60 existing products across geographies
+10 new products in the global innovation pipeline
CORPORATE PRESENTATIONCORPORATE PRESENTATION
35%
30%
21%
10%
4% CONVENIENCE
INDULGENCE
HEALTH & NUTRITION
HERITAGE
TRUST &
SUSTAINABILITY
57%32%
7%4%
Innovation
By Category By Innovation platform
By OU
EUROPEMEXICO U.S. LATAM
GLOBAL
= 25%12% 9% 54%1,2982018: 256
2019: 519
2020: 523
PROCESSED MEATS
YOGURT, CHEESE,
CREAMS &
SPREADABLES
PREPARED MEALS
& BEVERAGES
ALTERNATIVE
PROTEINS
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Experienced Management Team
Roberto OlivaresCFOMBA Duke
Gregorio de HaeneCTOMBA ITESM
Ernesto GómezCHROExecutive Programs
Central functions
Business units
Years in the company
Proven top management with an average of 24 years of experience across business areas
Eugenio CaballeroCEO MexicoMBA Harvard
Ricardo DoehnerCEO EuropeMBA Michigan
Warren PanicoCEO USAMBA Columbia Pacific University
Sergio RamosCEO Latin AmericaMBA University of Texas at Austin
Armando de la PeñaCEO FoodserviceExecutive Programs
Alejandro SuárezCIOMaster in Operations George Washington
CEO
Rodrigo FernándezPresident & CEOMBA Wharton
22 19 24 23 33 19
13 38 20 29
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Strategy
Explore the future
Grow and defend our current sources of profitability
High potentialopportunities
Snacking andplant-based
proteins
New business models
Develop enablers to accelerate the organization’s potential
Leverage global capabilities as One Single Company
Face opportunities and challenges by OU
Protect thecore
New sources
of revenue
Marginexpansion
Strengthenthe
organization
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Sustainability
Our 2025 Sustainability Goals are aligned with the UN SustainableDevelopment Goals (SDGs) and confirm our commitment with ourstakeholders.
• Sustainable innovation•Nutritional information• Food waste• Food safety
Environment
• Climate actions• Clean energy•Water• Sustainable packaging
Health and Nutrition
•Health and safety• Inclusion• Professional development• Volunteering
Wellbeing
• Food donations• Responsible supply• Relationship with interest
groups
Shared Value
Sustainability Report 2019
CORPORATE PRESENTATION
4Q20 Financial Results
CORPORATE PRESENTATIONCORPORATE PRESENTATION
525
639 716
663 676 684 703 684
2013 2014 2015 2016 2017 2018 2019 LTM4Q20
Financial Results
Net Sales EBITDA
3,820
5,3595,901 5,698
6,0546,336 6,463 6,347
2013 2014 2015 2016 2017 2018 2019 LTM4Q20
876 Non-recurring gains
US $ millions
CORPORATE PRESENTATIONCORPORATE PRESENTATION
-2.5%
Financial Results
Net Sales EBITDA
4Q19 4Q20
4Q20 Highlights
1,6621,706
39%42%
38%37%
16%14%
7%7%
4Q19 4Q20
178176
50%50%
24%24%
19%19%
7%7%
10.3% 10.7%EBITDA Margin
US $ millions
+1%• Revenue 2% higher y-o-y, on a currency neutral
basis and excluding Foodservice results.
• Positive trend in Foodservice, improving to -35% y-o-y in 4Q20 from a decrease of -70% y-o-y in April 2020
• EBITDA grew 1% y-o-y despite decrease in Foodservice; increased 7% in local currency and excluding Foodservice.
• Cash totaled US $820 million at year-end, increasing 39% on a sequential basis.
• Net Debt decreased 12% and 9% below 4Q19 and 3Q20 levels, respectively.
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Sources:
Americas – USDA PM Ham, 23-27# Trmd Sel Ham, FOB Plant (Urner Barry)
Europe – Average of Bone In Ham Spain prices (Mercolleida and Barcelona Cuts Market), France prices (MPB and
Rungis) & Germany (AIM and Hamburg Cuts Market)
Key raw materials – Pork Ham Price
Pork Ham Price – USA Pork Ham Price – Europe
EUR / Kg
0.6
1.0
1.4
1.8
2.2
2.6
3.0
3.4
J F M A M J J A S O N D
2018 2019 2020
0
0.2
0.4
0.6
0.8
1
J F M A M J J A S O N D
2018 2019 2020
USD/ lb
CORPORATE PRESENTATIONCORPORATE PRESENTATION
Debt Profile
220 734
175
1,000
500
20 21 22 23 24 25 26 27 28
Gross debt: 2,409 M USDAverage life: 5.1 yearsAverage rate: 4.36 % (Including CCS) Debt Mix
EUR31%
MX16%
USD53%
MXN USD EUR
(Including CCS)
CORPORATE PRESENTATIONCORPORATE PRESENTATION
www.sigma-alimentos.com