Presentación de PowerPoint · (*) Company Data, in Mexican Pesos (´‘000 000). EBITDA=Earnings...
Transcript of Presentación de PowerPoint · (*) Company Data, in Mexican Pesos (´‘000 000). EBITDA=Earnings...
DISCLAIMER
This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to beconstrued as a solicitation or an offer to buy or sell any securities. Any offering of securities will be made solely by means of an offeringmemorandum, which will contain detailed information about the Company and its business and financial results, as well as its financialstatements.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S.Securities Act of 1933, as amended.
This presentation includes forward-looking statements or statements about events or circumstances which have not yet occurred. Wehave based these forward-looking statements largely on our current beliefs and expectations about future events and financial trendsaffecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties andassumptions, including, among other things, general economic, political and business conditions, both in Mexico and in Latin Americaas a whole. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words areintended to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statementsbecause of new information, future events or other factors.
In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur.Therefore, our actual results could differ substantially from those anticipated in our forward-looking statements.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of theinformation contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. We andour affiliates, agents, directors, employees and advisors accept no liability whatsoever for any loss or damage of any kind arising out ofthe use of all or any part of this material.
This material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory,tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment,hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon anyinformation in this material.
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NET SALES CONTINUE GROWING QUARTER BY QUARTER
14,354 14,799 14,967 15,022
15,403
2,348
4Q-16 1Q-17 2Q-17 3Q-17 4Q-17
(*) Company Data, in Mexican Pesos. (´000 000).(1) Comparable means, with respect to a year-over-year comparison, the change in a given measure excluding the effects of (i) acquisition of Brazil in Q4 2017, (ii) one-off effects derived from the Brazil integration
YoY Growth % 14.6% 18.3%
SALES EVOLUTION
16.0% 9.6%
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23.7%
17,7512 months
Brazil
WITH THE ACQUISITION OF BRAZIL, OUR VALUE ADDED DAIRY SEGMENT INCREASED FROM 32% TO 40% OF SALES
(*) Company Data, in Mexican Pesos. (´‘000 000).
YEAR-ON-YEAR GROWTH3M ended December 31st
Milk
53.9%
Other Dairy Products
40.3%
5.7%
SALES BY SEGMENT(including Brazil portfolio)
Milk: Includes Fresh, UHT, Milk FormulaOther Dairy Products: Includes: Yoghurt, Cream, Cheese, Ice Cream, Desserts, Butter, MargarineBeverages and Others: Includes Juices, Beverages, Cold Cuts and Others (packaging and milk by-products)
Beverages and Others
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Milk
61.4%
Other Dairy Products
32.4%
6.2%
SALES BY SEGMENT(without Brazil portfolio)
Beverages and Others
(*) Company Data, in Mexican Pesos (´‘000 000).EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.
(1) Comparable means, with respect to a year-over-year comparison, the change in a given measure excluding the effects of (i) acquisition of Brazil in Q4 2017, (ii) one-off effects derived from the Brazil integration
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QUARTERLY COMPARABLE EBITDA INCREASED 23.7% VS Q4 2016
1,601 1,725
2,096
1,864 1,981
4Q-16 1Q-17 2Q-17 3Q-17 4Q-17
COMPARABLE(1) EBITDA MARGIN EVOLUTION(EXCLUDING BRAZIL)
Margin % Sales 12.4%11.2% 11.7% 14.0% 12.9%
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QUARTERLY REPORTED EBITDA IMPACTED POSITIVELY BY BRAZIL EBITDA & ONE-OFFS
EBITDA COMPOSITION
Margin % Sales 13.3%12.9%11.2%
(*) Company Data, in Mexican Pesos (´‘000 000).EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.
(1) Comparable means, with respect to a year-over-year comparison, the change in a given measure excluding the effects of (i) acquisition of Brazil in Q4 2017, (ii) one-off effects derived from the Brazil integration
(1)
RESULTS IN 4Q17
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Fourth Quarter Comparable(1)
P&L 2016 2017 Var. % Var. %
Net Sales $14,354 $17,751 23.7% 7.3%
COGS 9,125 11,278 23.6% 5.8%
Gross Profit 5,230 6,474 23.8% 9.9%
% of net sales 36.4% 36.5%
Operating Expenses 4,211 5,187 23.2% 2.3%
Operating Income 1,099 1,859 69.2% 38.8%
% of net sales 7.7% 10.5%
EBITDA(2)1,601 2,360 47.4% 23.7%
% of net sales 11.2% 13.3%
Net Income(3)1,228 479 -61.0% -45.7%
% of net sales 8.6% 2.7%
As Reported
(*) Company Information, in Mexican Pesos (‘000 000).(1) Comparable means, with respect to a year-over-year comparison, the change in a given measure excluding the effects of (i) acquisition of Brazil in Q4 2017, (ii) one-off effects derived from the Brazil integration(2) EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.(3) Net Income refers to consolidated Net Income..
YEAR ON YEAR COMPARISON 3M ended December 31st
FINANCIAL COSTS AND TAXES IMPACTED NEGATIVELYTHE REPORTED NET INCOME IN 4Q 2017
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(*) Company Information, in Mexican Pesos (‘000 000).
YEAR ON YEAR COMPARISON 3M ended December 31st
Fourth Quarter
2016 2017 Var. %
Operating income $1,099 $1,859 69.2%
Financial Expenses -104 461 -541.9%
Net Income before Taxes 1,203 1,399 16.3%
% of net sales 8.4% 7.9%
Taxes -25 920 -3742.0%
Net Income 1,228 479 -61.0%
% of net sales 8.6% 2.7%
As Reported
FULL YEAR 2017 NET SALES AND EBITDA BY REGION
9(*) Company Information, in Mexican Pesos (‘000 000).(1) Figures include 5 months of consolidated results in 2016(2) Figures include 2 months of consolidated results in 2017
REPORTED FIGURES12M ended December 31st
MXN$ in million 2016 2017 Var. %
Net Sales 53,468 62,540 17.0%
EBITDA 6,861 8,045 17.3%
EBITDA Margin % 12.8% 12.9%
Net Sales 52,080 56,938 9.3%
EBITDA 7,087 7,910 11.6%
EBITDA Margin % 13.6% 13.9%
Net Sales 1,388 3,254 134.4%
EBITDA -226 -244 NA
EBITDA Margin % -16.3% -7.5%
Net Sales NA $2,348 NA
EBITDA NA $379 NA
EBITDA Margin % 16.1%
Brazil(2)
U.S.(1)
Mexico and CAM
Total Grupo LALA
GRUPO LALA TOTAL DEBT CLOSED AT $30.9 BILLION PESOS
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Debt December 31st, 2017
Bridge Loan
Conditions/ Actions Amount(MXN$ in million)
- Variable cost- Short term
$25,229
Pre-payment of the Bridge Loan
($3,706)
Total Mexico debt $24,433
- Variable rate $6,538
Banking Debt $2,910
Vigor debt December 31st, 2017
Conditions Amount(MXN$ in million)
Key Metrics(1) 2016 2017
Net Debt / EBITDA (0.4)x 2.7x
EBITDA / Interest Paid 274.1x 13.0x
(*) Figures in Mexican Pesos (´000 000).(1) Last 12 Months ratios calculated in local currency
GRUPO LALA FINANCIAL POSITION
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Key Metrics(1) 2016 2017
Earnings Per Share $1.67 $1.31
Financial Position 2016 2017
Total Assets $ 40,832 $ 77,890
Cash 5,283 6,740
Non-Current Assets 24,275 53,375
Total Liabilities 11,845 47,550
Total Debt 2,375 30,971
Shareholder Equity 28,987 30,341
(*) Figures in Mexican Pesos (´000 000).(1) Last 12 Months ratios calculated in local currency
BALANCE SHEETAS OF DECEMBER 31st
OUR VISION: TO BECOME THE PREFERRED DAIRY COMPANY IN THE AMERICAS
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2013(1) 2017
Countries 3 7
Potential Consumers(2) 144 million
696 million
Production facilities 17 32
Net Sales (MXN$ mm) 43,156 62,540
EBITDA (MXN$ mm) 5,279 8,045
(1) Grupo LALA’s Initial Public Offering on 2013
(2) Source: Statistical Yearbook in Latin America and the Caribean
Mexico
United Stated
El Salvador
Guatemala
Brazil
Nicaragua
Costa Rica
OPERATIONS IN:
Production facilities
THE LALA WAY TO BECOMING THE PREFERRED DAIRY COMPANY IN THE AMERICAS
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THE LALA WAY BEGINS WITH SUSTAINABLE SOURCING
14(1) Synthesize the hormone bovine somatotropin using recombinant DNA technology to create recombinant bovine somatotropin (rBST), recombinant bovine growth hormone (rBGH), or artificial growth hormone..
Happy Cows
Sustainable Dairy Farming
We promote animal welfare best practices through our dairy farmerpartners. No rBST(1) hormones and no antibiotics in Mexico.
Testing Biomass renewable energy and Organic Farming in 2018.
Clean Factories
Our goal is to have 100% of Lala Mexico factories certified as IndustriaLimpia by 2019.
Clean Energy
Goal: 65% clean energy by 2020 across Grupo Lala
Promised Land®
Greek Yogurt Vigor®
A new standard of indulgence.“It’s like drinking melted ice cream”
Result: 16,430 new stores in 2017 and 2018(2)
Vigor defined the Greek style yoghurtcategory in Brazil.
Result: Greek Yogurt category leaders inBrazil(1)
Lala 100®
Combining state of the arttechnology with nostalgic appeal ofclear milk bottles
Result: Since its introduction in Julyof 2016, the Fresh Milk categoryhas grown 15.8% in value in theSelf Service Stores channel inMexico, with 49% of the growthcoming from LALA 100.(1)
para impulsar el crecimiento de la categoría con productos que los consumidores aman
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USING INNOVATION TO DRIVE CATEGORY GROWTH WITH PRODUCTS CONSUMERS LOVE
(1) Source: AC Nielsen Mexico and Brazil(2) Internal information from Lala US
MANUFACTURINGONE OF THE LARGEST CHILLED
DISTRIBUTION NETWORK IN LATAM
More than 30 plants with the latest technology
Production efficiency
Flexibility in packaging
The highest quality standards
Direct distribution model, adapted accordingto the particular needs of each channel,customer and consumer
176 distribution centers strategically located
+1.5 million weekly visits to customers inMexico
Optimization of more than 700 distributionroutes in Mexico
+628,000 points of sale
EXCELLENCE IN EXECUTION
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FOCUS ON IMPROVING ROIC BY LEVERAGING RECENT INVESTMENTS
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22.3%24.6%
18.9%
7.6%
2014 2015 2016 2017
Acquisitions
28.7% 23.6%
Mexico
ROIC(1) %
CapEx
$400 mm(2) $5,730 mm(3) $20,370 mm
$3,100 mm
(1) ROIC - Return on Invested Capital = (Operation Income of the last 12 months*(1- effective tax rate)) / (Total Assets – Cash) - (Total liabilities – Total Debt)(2) Average FX of 13.28 USD/MXN(3) Average FX of 18.67 USD/MXN(4) Comparable figure, with respect to a year-over-year comparison, the change in a given measure excluding the effects of (i) acquisition of Brazil in Q4 2017, (ii) one-off
effects derived from the Brazil integration
$2,400 mm $2,900 mm $3,700 mm(4)
HUMAN TALENT
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Highly multicultural experienced management team with a solid record of growth and return to its shareholders
Agility, Quality, Integrity, Austerity,
Teamwork, Results
VALUES
Education:• 55 % bachelors degree• 45% masters
TOP 100 executives
Background:• Business Administration• Accounting• Industrial engineering• Chemistry
Languages:Spanish, English and Portuguese speakers70% English as 2nd language
Diversity:
• 26% Millennials
• 55% X generation
• 19% Baby boomers
Experience:1 out of 2 have experience in the consumer sector
CONTACT INFORMATION
Investor RelationsMariana RojoEstefania Vazquez+52 (55) 9177 [email protected]
Forward-looking statementsThis document contains certain assumptions, projectionsand forward-looking statements regarding the Company’sfinancial situation, operative results and information, GrupoLALA’s business and that of its subsidiaries as well as withregards to the Company’s related plans and objectives.This executive summery does not constitute a publicsecurities offering on behalf of LALA and is intended to beused for informational purposes only.
Stock InformationGrupo LALA has been traded under the ticker ‘LALA’ on the Bolsa Mexicana de Valores (BMV) since October 16th, 2013.
For more information: www.lala.com.mx
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