Historia Gruma

7/25/2019 Historia Gruma

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I . COMPANY OVERVIEW

I. COMPANY OVERVIEW


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(7)

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(13)

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1 CONVENIENCE TRANSLATION AT AN EXCHANGE RATE OF Ps.15.5676/DOLLAR.2 EBITDA = OPERATING INCOME + DEPRECIATION, AMORTIZATION AND IMPAIRMENT OF LONG LIVED ASSETS +(-) EXPENSES

(INCOME) UNRELATED TO CORE BUSINESS OPERATIONS.

GRUMA IS THE WORLDS LARGEST CORN FLOUR AND TORTILLA PRODUCER, WITHOPERATIONS IN THE UNITED STATES, MEXICO, CENTRAL AMERICA,

EUROPE, ASIA AND OCEANIA

CENTROAMRICAASIA-OCEANAPRODISATECHNOLOGYACCOUNTING

ELIMINATIONS

LTM JUN151

SALES: US$3.4 BILLION

EBITDA2: US$524 MILLION

DEBT: US$736 MILLION

MKT CAP: US$5.6 BILLION

CENTROAMRICAASIA-OCEANAPRODISATECNOLOGAELIMINACIONESCONTABLES

GRUMA,S.A.B. DE C.V.

S U BS I D I AR I E S P R O D U CT S

CORN FLOUR TORTILLAS CORN CHIPS OTHER PRODUCTS

OTHER

SUBSIDIARIESGRUMA CENTROAMRICAGRUMA ASIA & OCEANAPRODISATECHNOLOGY AND SERVICESELIMINATIONS

GIMSAGIMSA (85% OWNED)

% SALES % EBITDA

GRUMA CORPORATION(USA, EUROPE)

AZTECAMISSION

BMV: GRUMAB

NYSE: GMK

CORN FLOUR

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CORN FLOUR TORTILLAS CORN CHIPS OTHER PRODUCTS

FAMILY: 54%

FLOAT: 46%


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TOWARD YEAR END 2012, GRUMAS BOARD AND MANAGEMENT BEGAN A PROCESSTO ENHANCE VALUE CREATION, LEVERAGING THE GROWTH IN RECENT YEARS, BY

FOCUSING ON:

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EFFECTIVENESS AND BETTER CONTROL OF:

ALLOWANCE PROGRAMS AND TARGETED PRODUCTS

RATIONALIZATION OF SKUs AND DISTRIBUTION ROUTES

SELECTIVENESS OF CATEGORY EXPANSION

EFFECTIVENESS AND RATIONALIZATION OF MARKETING EXPENSES, ESPECIALLYADVERTISING

RATIONALIZATION OF ADMINISTRATIVE EXPENSES AT CORPORATE ANDOPERATIONAL LEVELS

REDUCTION IN CAPITAL EXPENDITURES BASED ON:

LEVERAGING AVAILABLE INSTALLED CAPACITY IN REGIONS WHERE WE HAVE PRESENCE

STRICTER PROFITABILITY CRITERIA FOR EACH INVESTMENT


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GRUMA, S.A.B. DE C.V.EBITDA

(MILLIONS OF PESOS)

CAGR:12 LTM JUN15: 31%

4,174

6,254

7,4938,152

2012 2013 2014 LTMJUN'15

SINCE THE BEGINNING OF 2013, GRUMA HAS BENEFITED FROM THE INITIATIVES TOIMPROVE PROFITABILITY

EBITDAMG (%)

8.5 12.8 15.0 15.3

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GRUMACONSOLIDATED

DEBT/EBITDA(TIMES)

HIGHER CASH FLOW GENERATION, COUPLED WITH PROCEEDS FROM THE SALE OF THEWHEAT FLOUR OPERATIONS, ENABLED GRUMA TO CONTINUE REDUCING ITS DEBT

IMPORTANTLY IN 2014

4.8

2.6

1.4 1.4

DEC'12 DEC'13 DEC'14 JUN'15

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GRUMACONSOLIDATED

DEBT(MILLIONS OF US$)

1,550

1,272

737 736

DEC'12 DEC'13 DEC'14 JUN'15


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DEBT 1 MATURITY PROFILEAS OF JUNE 30, 2015

(MILLIONS OF US$)

AT YEAR END 2014, GRUMA SUCCESSFULLY ISSUED US$400 MILLION 10-YEAR SENIORNOTES, PRIMARILY TO REDEEM A PERPETUAL BOND, WHICH HAS HELPED GRUMA REDUCE

ITS INTEREST EXPENSE

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1 WEIGHTED AVERAGE INTEREST RATE AS OF JUNE 30, 2015 IS 3.66%.

86.3 90.634.5

122

0.8 0.7

401.5

2015 2016 2017 2018 2019 2020 2024


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WITH ITS STRONGER FINANCIAL PROFILE AND CASH GENERATION, GRUMA IS WELL-POSITIONED TO TAKE ADVANTAGE OF GROWTH OPPORTUNITIES, THUS CAPEX FOR

2015 IS EXPECTED TO INCREASE TO US$250 MILLION

CAPITAL EXPENDITURES FOR 2015

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CAPACITY EXPANSIONS AT EXISTING PLANTS MAINLY IN THE U.S., MEXICO AND EUROPE

NEW PLANTS IN RUSSIA, MALAYSIA AND MEXICO

ACQUISITIONS, PARTICULARLY IN EUROPE

TECHNICAL UPGRADES AND MAINTENANCE


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II. MAIN SUBSIDIARIESII. MAIN SUBSIDIARIES


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GRUMA CORPORATIONGRUMA CORPORATION


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6 MILLS IN THE U.S.

3 MILLS IN EUROPE ITALY UKRAINE TURKEY

INSTALLED CAPACITY:1.2 MILLION METRICTONS/YEAR

TORTILLA CORN FLOUR CHIP CORN FLOUR GRITS

22 PLANTS IN THE U.S.

7 PLANTS IN EUROPE ENGLAND (2) THE NETHERLANDS (2) RUSSIA SPAIN (2)

INSTALLED CAPACITY:1.3 MILLION METRIC TONS/YEAR

CORN FLOUR TORTILLAS WHEAT FLOUR TORTILLAS CORN CHIPS FLATBREADS OTHER RELATED PRODUCTS

CORN MILLINGOPERATIONS

TORTILLAOPERATIONS

NET SALES LTM JUN15: US$2.2 BILLION

GRUMACORPORATION

47% VOLUME 53% VOLUME

GRUMA CORPORATION IS THE LARGEST SUBSIDIARY, RESPONSIBLE FOR OPERATIONS INTHE UNITED STATES AND EUROPE

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Fife, WA

McMinnville, OR

Rancho Cucamonga, CA

Dallas, TX

TORTILLA PLANTS (22)

CORN FLOUR MILLS (6)

Houston, TXSan Antonio, TX

Fresno, CA

Pueblo, CO Evansville, IN

Henderson, KY Goldsboro, NC

Jefferson, GAAmarillo, TX

Plainview, TX

Edinburg, TX

Tempe, AZ

Olympic, CA

Mountain Top, PA

New Brighton, MN

Hayward, CA

Madera, CA

Panorama City, CA

Lawrenceville, GA

Albuquerque, NM

Omaha, NE

Charlotte, NC

* TEMPORARILY CLOSED

Forth Worth, TX*

Lakeland, FL

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GRUMA CORPORATION HAS A BROAD PRESENCE IN THE UNITED STATES THROUGHSTRATEGICALLY LOCATED PLANTS


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HISPANIC POPULATION1

16% OF TOTAL U.S. POPULATION

HISPANIC POPULATION INCREASED 43%BETWEEN 2000 AND 2010, ACCOUNTING FORMORE THAN 50% OF TOTAL U.S. POPULATION

GROWTH

POPULARITY OF MEXICAN FOOD

NON-HISPANICS ACCOUNT FOR THE MAJORITYOF MEXICAN FOODSERVICE PURCHASES

THE NUMBER OF MEXICAN FOODRESTAURANTS CONTINUES TO GROW

MORE RESTAURANTS ARE INCLUDING ITEMS

WITH TORTILLAS AND CHIPS IN THEIR MENUS

CONSUMPTION OF TORTILLAS INNON-MEXICAN DISHES (WRAPS)

WRAPS, BURRITOS, QUESADILLAS, ETC.BECOMING MAINSTREAM FOODS

1 UNITED STATES CENSUS BUREAU.2 INCLUDES TRADITIONAL METHOD.

ESTIMATED U.S. TORTILLA ANDCORN FLOUR MARKETS

GROWTH DRIVERS

THERE IS GROWTH POTENTIAL FOR THE U.S. TORTILLA AND CORN FLOUR INDUSTRIES

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TORTILLAS /TORTILLA CHIPS

US$5 BILLION

CORN FLOUR2US$1.3 BILLION


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249293 310

2012 2013 2014 LTMJUN'15

GRUMA CORPORATIONEBITDA

(MILLIONS OF US$)

GRUMA CORPORATIONS RESULTS ARE REFLECTING THE COMPANYS EFFORTS TOENHANCE VALUE CREATION

CAGR:12 LTM JUN15: 24%

EBITDAMG (%)

8.9 11.5 13.3 13.9

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GIMSA


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CORN FLOUR MILLS (18)

Ro Bravo

Nuevo Len

Mrida

Chiapas

Tampico

Chihuahua

Mexicali

La Paz

Obregn

Jalisco

Culiacn

Veracruz

Acaponeta

Chinameca

Bajo

Mxico

Chalco*

Celaya*

1 CONVENIENCE TRANSLATION AT AN EXCHANGE RATE OF Ps.15.5676/DOLLAR.

GIMSA

NET SALES LTM JUN15: US$990 MILLION1

18 CORN FLOUR PRODUCTION PLANTS, WITHTOTAL ANNUAL CAPACITY OF 2.7 MILLIONMETRIC TONS

GIMSAS MARKET SHARE WITHIN THE CORNFLOUR INDUSTRY IS APPROXIMATELY 70%

GIMSA IS GRUMAS SECOND LARGEST SUBSIDIARY AND THE LEADER OF THE CORNFLOUR INDUSTRY IN MEXICO

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* TEMPORARILY CLOSED


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GIMSA25%

MINSA

8%

HARIMASA 1%

OTHERS 1%

CARGILL 1%

CORN64%

GIMSA70%

CARGILL 2%

OTHERS 1%

HARIMASA3%

MINSA24%

CORN FLOUR IS ONLY USED TO PRODUCE 36% OF THE TORTILLAS IN MEXICO, THUSTHERE IS A GREAT POTENTIAL FOR GROWTH

CORN FLOUR MARKET IN MEXICO1.7 MILLION METRIC TONS OF CORN FLOUR1

US$3 BILLION

1 ONE CORN FLOUR METRIC TON = 1.8 TORTILLA METRIC TONS.

TORTILLA MARKET IN MEXICO4.7 MILLION METRIC TONS OF CORN FLOUR1

US$7 BILLION

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GIMSAEBITDA

(MILLIONS OF PESOS)

2,095

2,769 2,828 2,859

2012 2013 2014 LTMJUN'15

GIMSA HAS IMPROVED ITS MARGINS BASED MAINLY ON RATIONALIZATION OF MARKETINGAND ADMINISTRATIVE EXPENSES

EBITDAMG (%)

12.4 17.4 18.8 18.5

CAGR12 LTM JUN15: 13%

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AS IN GRUMA CORPORATION AND GIMSA, ALL OF GRUMAS

SUBSIDIARIES HAVE BEEN IMPLEMENTING INITIATIVES TO

ENHANCE VALUE CREATION. WE HAVE SEEN, AND CONTINUE TO

EXPECT, STRONGER EBITDA GENERATION ACROSS THE COMPANY

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ROGELIO SNCHEZTEL: (52 81) 8399-3312

[email protected]

LILIA GMEZTEL: (52 81) [email protected]

TEL: (52 81) [email protected]

IR CONTACTS:

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