sigma as part of alfa · 1q20 corporate presentation sigma as part of alfa 8 out of 10 mexican...
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1Q20 Corporate Presentation
1Q20 CORPORATE PRESENTATION
Sigma as part of ALFA
8 out of 10Mexican Corporates use Axtel’s IT and Telecom
services
#1 in the production ofPTA, PET and EPSin the Americas
1 out every 4 new carssold in the world contains
at least one Nemak product
11 Sigma brandssell more than
US $100 Million a year each
706 production wellsoperated by Newpek
in U.S. and Mexico
Petrochemicals Food ProductsAluminum Autoparts IT + Telecom Oil & Gas
38% of Total Revenues 1
30% Total EBITDA 1
(1) LTM in USD2
1Q20 CORPORATE PRESENTATION
A leading global company
Sales distribution by region
Europe
35%
LatAm
7%
Net Sales LTM 1Q20
US $6.6 Billion
EBITDA LTM 1Q20
US $706 Million
USA
15%USA
16%
Operations in 18 countries
Mexico
42%
1Q20 CORPORATE PRESENTATION
We bring communities everywherefavorite foods to love
+640,000 Points of Sale
+45,000 Employees
70 Manufacturing Facilities
210 Distribution Centers
Cooked Meats60% of Net Sales
Other Categories5% of Net Sales
Dairy19% of Net Sales
Dry Meats16% of Net Sales
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1Q20 CORPORATE PRESENTATION
By category
Net sales breakdown
By geography
A unique story of transformationNet sales(US$ M)
EBITDA(US$ M)
Facilities EmployeesCountries
$6,463 $703
$882 $125 8 ~12,500
70 ~45,00018
Europe Mexico
US LatAm
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National leadership
2000
201941%
36%
16%
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 7.3x and EBITDA 5.6x since 2000
98%
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1Q20 CORPORATE PRESENTATION
Diverse portfolio of leading brands across categories
11 brands with net sales > US $100 M in 2019
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Packaged Meats Dairy
Other Categories Third Party
1Q20 CORPORATE PRESENTATION
Research and Development
Consumer research
+260,000 contacts per year
Proprietary mathematical models
R + D
2 research centers
6 pilot plants
+200 specialists
+40 patents
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1Q20 CORPORATE PRESENTATION
Sigma Innovation System
Iterative innovation process based onDesign Thinking
Fail early, often and cheap, while limiting failure
+100 new products launched in 1Q20
+600 projects in the innovation pipeline
11% of 2019 accumulated sales come from innovation
products
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Innovation Process
1Q20 CORPORATE PRESENTATION
Innovation platforms
HeritageConvenienceIndulgenceTrust &
SustainabilityHealth & Nutrition
These are some of the innovations we launched in 1Q20:
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1Q20 CORPORATE PRESENTATION
Innovation growth avenues
Snacking
New business unit working across geographies
Higher demand of protein-based snacks
3% of 2019 Net Sales
Alternative Proteins
New sources of protein to cover current flexitarian trends
+40 existing products across geographies
+25 new products in the global innovation pipeline
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1Q20 CORPORATE PRESENTATION
Sustainability
11
Technology+90,000 tons
of CO2 avoided
75 work sites operating withcleaner energy
+3,000 tons of food donated through
food banks
10% of water consumption
decreasedin the US
FReSH Projectmember
+480 products with improved
nutritional profiles
Sustainability Report 2018
1Q20 CORPORATE PRESENTATION
Roberto OlivaresCFOMBA Duke
Gregorio de HaeneCTOMBA ITESM
Luis IturraldeCHROMBA ITESM
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
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Experienced management team
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18 23 22 32 18
12 37 26 28
1Q20 Financial Results
1Q20 CORPORATE PRESENTATION
525
639 716
663 676 684 703 705
2013 2014 2015 2016 2017 2018 2019 LTM1Q20
Financial Results
Net Sales EBITDA
3,820
5,359
5,9015,698
6,0546,336 6,463 6,585
2013 2014 2015 2016 2017 2018 2019 LTM1Q20
876Non-recurring gains
14
US $M
1Q20 CORPORATE PRESENTATION
+8%
Financial Results
Net Sales EBITDA
1Q19 1Q20
1Q20 Highlights
• Higher sales volume in all regions
• Solid sales and EBITDA in the US drivenby all business segments
• Pork prices started to decrease whencompared to 4Q19 but were still abovelast year prices
• Restaurants and hotels closures to avoidCOVID-19 spread impacted Foodservicechannel, mainly in Mexico and LatAm
• Europe’s result impacted by higher porkprices versus last year due to ASF
1,6371,516
42%43%
35%33%
16%16%
7%8%
1Q19 1Q20
169166
54%55%
15%17%
25%21%
6%7%
11.0% 10.3%EBITDA Margin
15
US $M
+1%