Corporate Presentation 4Q20 CORPORATE PRESENTATION - Sigma … · 2021. 3. 10. · CORPORATE...

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


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


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


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


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%


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


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


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


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


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


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


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


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


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


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


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


-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.


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


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)


www.sigma-alimentos.com

Corporate Presentation 4Q20 CORPORATE PRESENTATION - Sigma … · 2021. 3. 10. · CORPORATE...

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