Presentación de PowerPoint - Grupo Herdez · The information contained herein (the...
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I N V E S T O R S
P R E S E N T A T I O N
O C T O B E R 2 0 1 9
The information contained herein (the “Information”) has been
prepared by Grupo Herdez, S.A.B. de C.V., its subsidiaries and/or
affiliated companies (“Grupo Herdez”), and may contain forward-
looking statements that reflect Grupo Herdez’s current
expectations and views, which may vary materially due to various
factors, risks and uncertainties.
Therefore, Grupo Herdez and/or its officers, employees or
agents, assume no responsibility or liability for any such variations in
the Information. In particular, and notwithstanding the foregoing,
no guarantee is given as to possible future variations of the
Information.
The Information has been provided solely for informational
purposes. The issuance of this Information shall not be taken as any
form of commitment of Grupo Herdez to proceed with any
transaction.
F O R W A R D - L O O K I N G S T A T E M E N T
All the information contained in this document is prepared in
accordance with International Financial Reporting Standards (IFRS)
as of September 30, 2019, unless otherwise stated.
I N V E S T M E N T
C A S E
0 3
+100
Y E A R S OF E X P E R I E N C E
B R A N D E D F O O DL E A D E R
D I V E R S I F I E DP O R T F O L I O
P R O F I T A B L EG R O W T H
S T R A T E G Y
S O U N D
F I N A N C I A LS T R U C T U R E
S O L I D C O R P O R A T EG O V E R N A N C E
C O M M I T T E D T OS U S T A I N A B I L I T Y
S T R A T E G Y
0 4
M A I N T A I N A N D F O R M S O C I E T I E S
T H R O U G H T H E D E V E L O P M E N T O F
I N T E L L I G E N C E
I M P L E M E N T T E C H N O L O G I E S
T H A T A C C E L E R A T E P R O C E S S E S
P R O M O T E S U S T A I N A B L E
M A N A G E M E N T P R I O R I T I Z I N G
W A T E R C A R E A N D E F F I C I E N T U S E O F
E N E R G Y
S U P P O R T A N D G E N E R A T E G R O W T H
T H R O U G H T H E D E V E L O P M E N T O F
T A L E N T A N D I N V E S T M E N T I N
I N F R A S T R U C T U R E
E X E R C I S E A R E S P O N S I B L E C O R P O R A T E C I T I Z E N S H I P
0 5
C O R P O R A T E S T R U C T U R E
Grupo Herdez consolidates 100 percent of its
Frozen division, Herdez Del Fuerte - Mexico, Barilla
México and McCormick de México in its financial
statements.
The proportional stake of Herdez Del Fuerte in
MegaMex is registered in “Equity Investment in
Associated Companies“.
50%McCormick de
México since 1947
50%Barilla
México
since 2002
50%Herdez Del Fuerte
since 2008
50%MegaMex
since 2009
100%Frozen division
Nutrisa 2013
Helados Nestlé
2015
L E A D I N G B R A N D S
0 6
O U R B R A N D S I N M E X I C O
O U R B R A N D S I N T H E U S
D I S T R I B U T I O N AG R E E M E N T S I N M E X I C O
0 7
I N F R A S T R U C T U R E
15
P L A N T SM O R E T H A N 1 0 , 0 0 0
E M P L O Y E E S
24 D I S T R I B U T I O N C E N T E R S
6 7 , 0 0 0 +
H E L A D O S N E S T L ÉP O S
6 T U N A V E S S E L S
4 8 0 +
N U T R I S A S T O R E S
13,139
14,431
15,95316,455
17,508
2,139
2,592
2,8822,985
3,182
1,079
1,158
1,2301,531
1,600
16,356
18,181
20,06520,971
22,291
2015 2016 2017 2018 12M3Q19
0 8
NET SALES
CAGR 5 YEARS = 9.3%
Preserves 7.5%
Frozen 22.2%
Exports 10.9%
P R E S E R V E S F R O Z E N E X P O R T S
15,953
79%Preserves
14%Frozen
7%Exports
S E G M E N T M I X
C O N S O L I D AT E D F I G UR E S I N
M I L L I O N P E S O S
2,668 2,634
2,8883,016
3,161
136 103
277332
466
83 79
130
169
169
17.7
15.5
16.416.8 17.0
2,887 2,8163,295
3,517
3,796
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
2015 2016 2017 2018 12M3Q19
0 9
P R E S E R V E S F R O Z E N E X P O R T S E B I T D A M A R G I N
CAGR 5 years = 9.5%
Preserves 7.2%
Frozen 31.8%
Exports 20.8%
12%Frozen
83%Preserves
5%Exports
E B I T D A
C O N S O L I D AT E D F I G UR E S I N
M I L L I O N P E S O S
S E G M E N T M I X
32%
17%
8%
7%
5%
5%
4%
3%
2%
2%
2%1%
1%1%
9%
Mayonnaise
Frozen
Pasta
Tomato purée
Vegetables
Canned Tuna
Mole
Salsa
Jams
Ketchup
Tea
Mustard
Food Packaging
Tuna
Others
31%
30%
8%
7%
7%
5%
5%
4%3%
Super Markets
Wholesalers
Club stores
Exports
Nutrisa stores
Foodservice
DSD (traditional)
Convenience
Others
C O M M E R C I A LL E A D E R S H I P
1 0
C O N S O L I D A T E D S A L E S M I X
B Y C H A N N E L
C O N S O L I D A T E D
S A L E S M I X
B Y C A T E G O R Y
C O N S O L I D ATED F I GURE S IN
M I LL I ON P ESOS
P R E S E R V E S S N A P S H O T
1 1
H O U S E H O L D
P E N E T R A T I O N
&
R E D U C T I O N O F
D I S T R I B U T I O N
G A P S
C O N S U M E R
I N S I G H T S ’
B A S E D
I N N O V A T I O N
C O N S O L I D A T E D F I G U R E S
I N M I L L I O N P E S O S ,
C O N S I D E R I N G S A L E S I N
M E X I C O
P R E S E R V E S
S A L E S M I X
B Y C A T E G O R Y
H O L I S T I C
C O M M U N I C A T I O N
P R E M I U M
V E R S I O N S
G R O W T H
D R I V E R S
40%
10%10%
6%
6%
5%
5%
3%
2%
15%Mayonnaise
Pasta
Tomato purée
Vegetables
Mole
Salsa
Tuna
Jams
Tea
Others
P R E S E R V E S
P E R F O R M A N C E
C O N S O L I D A T E D F I G U R E S
I N M I L L I O N P E S O S
EBITDA MARGIN
CAGR 5 YEARSNet sales: 7.5%EBITDA: 7.2%
1 2
NET SALES
12,197
13,139
14,431
15,95316,455
17,508
18.3%
20.3%
18.3% 18.1% 18.3% 18.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2014 2015 2016 2017 2018 12M3Q19
1 3
P R E S E R V E SM A R K E T L E A D E R S H I P
T E A
M A Y O N N A I S E
M O L E
VEGETABLES
T O M A T O P U R É E
H O M E – S T Y L E S A L S A
72%
29%
83%
30%
74%
44%
47%
T H I R D P AR T Y I N F O R M AT I O N
C O N S I D E R I N G M O D E R N T R AD E
AN D WH O L E S AL E R S
F I G UR E S AS O F S E P T E M B E R 3 0 , 2 0 1 9
We are #1 o #2
in categories
that represent 87%
of our sales in
México
PASTA
JAMS49%
1 4
P R O D U C T I N N O V A T I O N & M A R K E T I N G C A M P A I G N S
P R O D U C TCO-CREATION
NEWCONSUMPTION OCCASIONS
PREMIUM VERSIONS
RESPONSIBLE CONSUMPTION
HABITS
39%
29%
17%
12%
1%
1%
1%
Nutrisa stores
DSD traditional
Convenience
Modern trade
Wholesalers
Club stores
Foodservice
1 5
F R O Z E N S N A P S H O T
F R O Z E N
S A L E S M I X
B Y C H A N N E L
C O N S O L I D ATED F I GURE S IN
M I LL I ON P ESOS
CONS I D ER I NG SAL ES I N
M EX I CO
P O R T F O L IO
S E G M E NT AT I ON B Y CH ANNE L
I NCR E AS E S T O R E
T R AF F I C &
F R E E Z E RP R O D U CT I V I TY
S G & ACO NT R O L
S T R E N G T H E N I N G
OF S AL E S
C H A N N E L S
G R O W T H
D R I V E R S
1,166
2,139
2,592
2,8822,985
3,182
10.0%
6.3%
4.0%
9.6%
11.1%
14.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2014 2015 2016 2017 2018 12M3Q19
1 6
F R O Z EN P E R F ORMANCE
C O N S O L I D ATED F I GURE S IN
M I LL I ON P ESOS
CAGR 5 YEARSNet sales: 22.2%EBITDA: 31.8%
Acquisition of Helados Nestlé
NET SALES EBITDA MARGIN
1 8
PRODUCT INNOVATION
LEVERAGE THROUGH THE POWER OF BRANDS
RENEWED IMAGE
NEW PRODUCTS
1 9
M E G A M E X S N A P S H O T
S A L S A S &
S A U C E S
D I S R U P T I O N
A V O C A D O
F O R A L L
F O O D A W A Y
F R O M H O M E
2020 Goals
USD $1B
Net sales
14-16% EBITDA
margin
G R O W M E G AM E X
S H AR E
I NCR E AS E
H O U S E H O L D
P E NE T R AT I O N
ACCE L E R AT E
P E NE T R AT I O N
To bring the spirit of Mexico to every table
7,689
8,876
10,840
12,168
13,258
14,273
13.7% 14.2%
16.3%15.0%
18.3%
13.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014 2015 2016 2017 2018 12M3Q19
2 0
M E G A M E X P E R F O R M A N C E
C O N S O L I D ATED F I GURE S
IN M I LL I ON P ESOS
CAGR 5 YEARSNet sales: 13.2%EBITDA: 13.1%
NET SALES EBITDA MARGIN
2 1
M E G A M E X
P O R T F O L I O
* T H I R D P AR T Y I N F O R M AT I O N
C O N S I D E R I N G M O D E R N T R AD E
L E V ERAGE O N T H E A D O PT ION O F
G R E EN S A LSA A N D
S T R EET I N S P IRED F O O D
M E G A M E X
S A L E S M I X
B Y C A T E G O R Y
T O R T I L L A SM O L E
H O M E - S T Y L E S A L S A
G U A C A M O L E
75%
13%38%
2%
I N C REASE H O U S EHOLD P E N ET RAT ION
5 1 % o f U . S . h o u s eho l dsb u y a v o c a d o s
M A R KE T S H A RE*
43%
27%
9%
4%
3%
2%2%
10% Salsas
Guacamole
Tortillas
Mole
Peppers
Tortilla Chips
Dips
Others
2 2
S U S T A I N A B I L I T Y M O D E L
17% of all the energyconsumed by our operationscomes from thecogeneration project.
More tan 90% of our agriculturalsuppliers comply with theAgrochemicals Management Program, thus reducing our impacton the environment.
Through the Saber Nutrir program, we fight malnutrition and foodinsecurity with training and theinstallation of productive projects.
We promote labor equality throughthe installation of nursing rooms, creating stronger bonds with ouremployees.
2 3
T A L EN T
D E V ELOPMENT
N U R S I N G R O O M S
V A R I A B L E
C O M P E N S A T I O N
B A S E D O N B U D G E T R E A C H
FLEXIBLE
WORKING T IME
H E A L T H Y E A T I N G &
P H Y S I C A L E X E R C I S E
P R O G R A M S
S T O C K P L A N F O R
E X E C U T I V E S
I N C L U S I O N O F
P E O P L E W I T H D I S A B I L I T I E S
2 4
D E B TS T R U C T U R E
C O N S O L I D ATED F I GUR ES IN M I LL I ON P ESOS
THE DEBT M IX C O N S I D E R S HEDGES
R A T E S
M I X
H E R D E Z 14
H E R D E Z 13 H E R D E Z 17
BANK LOAN H E R D E Z 18
H E R D E Z 17-2
Financial Debt100% in MXN
6,630
Average Cost 8.5%
Net Debt / EBITDA 1.2
Net Debt / Shareholders Equity
0.25
200
430
1,000
1,000
2,000 2,000
0
500
1,000
1,500
2,000
2,500
2019 2020 2021 2022 2023 2024 2025 2026 2027
75%
25%
Fixed Floated
9.9%10.9%
12.2% 12.3% 12.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2015 2016 2017 2018 12M3Q19
6.0%
10.2%
13.7%14.2%
13.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2015 2016 2017 2018 12M3Q19
2 5
R E T U R N S
ROE ROIC
ROE (RET UR N ON EQUI T Y ) = M AJ O R I T Y NET I NCOM E / AN N U A L AVER AGE M AJ O R I T Y S H AR E H O L D E R ´ S EQUI T Y
ROIC (RET UR N ON I N VE S T E D CAP I TAL) = EBI T / (C O N S O L I D ATED S H AR E H O L D E R ´ S EQUI T Y + TOTAL DEBT )
(AN N U A L AVER AGE FROM LAST TWO Y EAR S )
2 5
S H A R E H O L D E R S ‘
S T R U C T U R E
SOURCE: BLOOM BERG AS OF SEPTEM BER 30.
EXCLUDES HECHOS CON AM OR STAKE
2 5
D I V I D E N D
H I S T O R Y
CONSOLIDATED F IGURES IN M ILL ION PESOS
EPS*: ADJUSTED ANNUAL AVERAGE OUTSTANDING SHARES /
M AJORITY NET INCOM E
Dividends Paid Dividend Yield
2.4% 2.0% 2.4% 2.2% 2.4% 2.7%
Outstanding Shares 432 M
Shares in Treasury 26.1 M
EPS* 12M3Q19 vs 12MQT18 (2.7%)
Payout Ratio 40.1%
Dividend Yield +2.7%
367
384 389 387
426436
200
250
300
350
400
450
2014 2015 2016 2017 2018 12M3Q19
2 8
HERDEZ* single
series
67% independent
members
Assignment of individual
responsibilities on corporate
governance, labor and
environmental practices
I N D E P E N D E N T
6 7 %Héctor Hernández-PonsTorres
Chairman
Enrique Hernández-PonsTorres
Vicepresident
Flora Hernández de Merino
Board member
Enrique Castillo Sánchez Mejorada
José Roberto Danel Díaz
Corporate Practices and
Audit Committee Chairman
Eduardo Ortiz Tirado Serrano
Head of Labor Practices
Luis Rebollar Corona
Head of Environmental Practices
C O R P O R A T E G O V E R N A N C E
P R O P I E T A R Y
Michael Bernhard Jost*
Anasofía Sánchez Juárez Cardoze
* P rov is ional Board M em ber, pending on
approv al on the Annual General
Sharehol ders M eet ing.
A P P E N D I X
3 0
We entered the apiculture
business with the acquisition
of miel Carlota
1987
We created Fundación Herdez
to contribute and disseminate
new food possibilities in Mexico
With the acquisition of Mole
Doña María, we became the
first company to produce mole
on an industrial scale
O U R L E G A C Y
1910
1940
1960
1914
Compañía
Comercial Herdez
is established
1947
We created McCormick de
México, entering the
mayonnaise category
1962
We created our own line of
products under the Herdez
brand in the preserves
segment
1970 The slogan “Con toda
confianza… es Herdez” is born
1980
1990
We started exporting products
and changed our name to
Herdez
We acquired Grupo Búfalo
and Pescados de Chiapas,
entering the canned tuna
category
1991
We made the IPO of Grupo
Herdez in the Mexican Stock
Exchange
1993
We entered the coffee
category
2000
2008
Herdez Del Fuerte is created
2009
MegaMex, a subsidiary of Herdez Del
Fuerte, begins operations in the US
2006
We signed the distribution
agreement with Ocean Spray
2002
We created Barilla México and
started producing and selling
pasta in the Mexican market
2010
We created the Frozen segment with the
acquisition of Nutrisa in 2013 and
Helados Nestlé in 2015
2017
We started the distribution of Frank’s
and French’s
MegaMex strengthens its portfoliowith the acquisition of Don Miguel
and Fresherized Foods in 2010 and
2011, respectively
2011
We partnered with Aires de Campo,
the leading company in organic food
in Mexico
2010
We signed the distribution
agreement with Reynold’s
1989
We signed a distribution
agreement with Kikkoman
P R E S E N C E I N 2 1 C O U N T R I E S
Mexico, United States, Aruba, Canada, Costa Rica, Cuba, Czech Republic, Dominican Republic, Ecuador, Germany, Guatemala, Honduras, Jamaica, New
Zealand, Nicaragua, Portugal, Russia, Salvador, South Korea, Spain and Switzerland.
3 1
B R A N D P R E S E N C E
3 2
H É CTOR H E R N Á N DE Z -PO N S TORRES
P rop ie t a ry - Ch a i rman
E N R IQUE H E R N Á N DE Z -PO N S TORRES
P rop ie t a ry - V icep res iden t
FLORA H E R N Á NDEZ DE M E R INO
Prop ie t a ry - B oa rd M emb er
•Has a law degree from Universidad
Anahuac and an MBA from the National
University of San Diego
•Experience in the sector since 1978
•Named Chairman in 2004
•Has held several positions in industry groups
including BASC, CONCAMIN and CANAINCA
•Bachelor´s degree in Business Administration and
a post- graduate degree in Marketing and
Business Management
•Experience in the sector since 1971
•Chairman of Megamex
E N R IQUE C A S T I L LO S Á N C H EZ M E JO R A DA
I n d ependent
JOSÉ R O BERTO DANEL DIAZ
I n d ependent
E DUA R DO ORTIZ T IRADO S E R R ANO
I n d ependent
•Bachelor´s degree in Business Administration
•Former Chairman of Maxcom Telecomunicaciones,
Non-executive Chairman of Banco Nacional de
México and Vice-Chairman and President of the
Banking Association of Mexico
•Board member of Grupo Alfa, Southern Copper
Corporation and Médica Sur
•Bachelor´s degree in Accounting and postgraduate
degree in Business Administration, Business
Management and Corporate Governance
•Chairman of the Corporate Governance Best
Practices Committee, member of the Latin American
Corporate Governance Institute and board member of
public and private companies
•Held the highest positions in Finance in Grupo Vitro,
Grupo Desc and Industria Peñoles
•Director in Aerobal and Gridimex
•Held positions as Corporate Vice-President and
General Manager in SC Johnson for Mexico and
Central America
•Board member of ENACTUS, Un mañana para la
comunidad and member of Fundación Xochitla
•Former board member in CONAR, CEMEFI and
advisory council for Great Place to Work Mexico
LUIS R E B O LLA R CO R O NA
I n d ependent
•Bachelor´s degree in Chemical Engineer
•Board member in Grupo Gigante, Grupo Sánchez and
Corporación San Luis
•Held positions as Chairman in Satélites Mexicanos and
Sandvik de México
B O A R D O F D I R E C T O R S
ANASOFÍA SÁNCHEZ JUÁREZ CARDOZE
I n d ependent
•Bahelor´s degree in Marketing and a Master´s degree
in Communication, Advertising and New Media
•Held positions as Director of Business in Mexico and
Central America on Facebook, Brand Solutions
Manager for Google and Commercial Leader for
YouTube Mexico.
•She currently serves as the CEO of Waze Mexico, and
as a professor at the Higher Institute for Internet
Development (ISDI) in the Internet Business Master.
W W W . G R U P O H E R D E Z . C O M . M X
FOR MORE INFORM ATION