Investor Presentation

Transcription

1 Investor Presentation

2 COMPANY OVERVIEW

3 GRUMA IS THE WORLD S LARGEST CORN FLOUR AND TORTILLA PRODUCER, WITH OPERATIONS IN THE UNITED STATES, MEXICO, CENTRAL AMERICA, EUROPE, ASIA AND OCEANIA Family: 52% Float: 48% Subsidiaries GRUMA USA Products Corn flour Tortillas, other % Sales % EBITDA GIMSA 85% OWNED Corn flour GRUMA, S.A.B. de C.V. BMV: GRUMAB GRUMA EUROPE Corn flour, grits Tortillas, other LTM MAR 17 1 Sales: US$3.7 billion EBITDA 2 : US$595 million GRUMA CENTROAMÉRICA Corn flour, other Market Cap: US$5.7 billion 3 GRUMA ASIA-OCEANÍA MISSION MEXICO TECHNOLOGY AND SERVICES ELIMINATIONS 1 Convenience translation at an exchange rate of Ps /dollar. Tortillas, other EBITDA = Operating income + depreciation, amortization and impairment of long lived assets +(-) expenses (income) unrelated to core business operations. 3 As of May 26, 2017

4 GRUMA S LEADING BRANDS SHOW STRONG AWARENESS AND CONSUMER LOYALTY REGION BRANDS PRODUCTS POSITION UNITED STATES CORN FLOUR TORTILLAS TORTILLAS FIRST FIRST SECOND MEXICO CORN FLOUR FIRST CENTRAL AMERICA CORN FLOUR TORTILLAS TORTILLAS FIRST FIRST SECOND EUROPE TORTILLAS THIRD ASIA & OCEANIA TORTILLAS FIRST 4

5 GRUMA IS LEADING IMPORTANT PRODUCT INNOVATION TO SATISFY THE GROWING MARKET OF HEALTH-ORIENTED CONSUMERS Consumers replacing breads with wraps Increased popularity of healthier snack options, such as gluten-free organic corn chips To satisfy these megatrends, GRUMA offers a line of healthier alternatives, such as: Organic Gluten-free Carb-balance Whole-wheat Multi-grain Fat-free Chia and quinoa wraps Baked tostadas As a result, our healthier product lines are generating low double-digit growth 5

6 GRUMA HAS ACHIEVED CONSISTENT GROWTH IN NET SALES DRIVEN MAINLY BY THE U.S. OPERATIONS GRUMA Net Sales (millions of pesos) CAGR: 14 LTM MAR 17: 16% GRUMA Volume (thousand metric tons) CAGR: 14 LTM MAR 17: 4% 58,279 68,206 70,053 3,674 3,831 3,959 3,985 49, LTM MAR' LTM MAR'17 6

7 EBITDA GENERATION HAS INCREASED AT A HIGHER RATE THAN NET SALES BASED ON MARGIN IMPROVEMENTS, ALSO LARGELY DRIVEN BY THE U.S. OPERATIONS 7,493 GRUMA EBITDA (millions of pesos) CAGR: 14 LTM MAR 17: 19% 9,139 10,964 11, LTM MAR'17 EBITDA Mg (%)

8 AS EBITDA GENERATION CONTINUES TO GROW AND DEBT REMAINS STABLE, GRUMA S FINANCIAL STRUCTURE IS FURTHER ENHANCED GRUMA Debt (millions of US$) GRUMA Net Debt/EBITDA (times) DEC'14 DEC'15 DEC'16 MAR'17 DEC'14 DEC'15 DEC'16 MAR'17 8

9 GRUMA ENJOYS A COMFORTABLE DEBT MATURITY PROFILE GRUMA Pro-Forma Debt 1 Maturity Profile with New Syndicated Facility As of March 31, 2017 (millions of US$) Weighted average interest rate as of March 31, 2017 is 4.1%.

10 THIS HEALTHY FINANCIAL STRUCTURE HAS ENABLED GRUMA TO BECOME A DIVIDEND-PAYING COMPANY GRUMA Dividend Payments (millions of pesos) 1.7 % 1.0 % 0.8 % 0.8 % 1, Total Dividend Payment ($) Dividend Yield 10

11 MAIN SUBSIDIARIES

12 GRUMA USA

13 GRUMA USA IS THE LARGEST SUBSIDIARY, AND THE LEADING CORN FLOUR AND TORTILLA PRODUCER IN THE UNITED STATES Net Sales LTM Mar 17: US$2 billion Fife, WA GRUMA USA New Brighton, MN McMinnville, OR Mountain Top, PA Hayward, CA Omaha, NE Madera, CA Evansville, IN Fresno, CA Pueblo, CO Panorama City, CA Goldsboro, NC Olympic, CA Henderson, KY Rancho Cucamonga, CA Albuquerque, NM Amarillo, TX Jefferson, GA Tempe, AZ Dallas, TX Lawrenceville, GA Plainview, TX San Antonio, TX Corn flour mills (6) Tortilla plants (20) Edinburg, TX Houston, TX Lakeland, FL Tortilla Operations 80% 20 Plants in the U.S. Installed Capacity: 960,000 Metric tons/year Corn flour tortillas Wheat flour tortillas Corn chips Other related products Corn Flour Operations 20% 6 Mills in the U.S. Installed Capacity: 800,000 Metric tons/year Tortilla corn flour Chip corn flour 13

14 THERE IS GROWTH POTENTIAL FOR THE U.S. TORTILLA AND CORN FLOUR INDUSTRIES Growth Drivers Hispanic Population 1 16% of total U.S. population Hispanic population increased 43% between 2000 and 2010, accounting for more tan 50% of total U.S. population growth Popularity of Mexican Food Non-hispanics account for the majority of Mexican food service purchases The number of Mexican food restaurants continues to grow More restaurants are incluiding Mexican dishes in their menus Estimated U.S. Markets Tortillas/Tortilla chips US$5 billion Corn Flour 2 US$1.3 billion Adoption of tortillas in non-mexican dishes (wraps) Wraps, burritos, tacos, quesadillas, nachos, etc. becoming mainstream foods 14 1 United States Census Bureau 2 Includes traditional method

15 GRUMA USA S RESULTS ARE REFLECTING THE COMPANY S EFFORTS TO ENHANCE VALUE CREATION GRUMA USA Net Sales (millions of US$) CAGR: 14 LTM MAR 17: 3% GRUMA USA EBITDA (millions of US$) CAGR: 14 LTM MAR 17: 11% 1,915 1,989 2,024 2, LTM MAR' LTM MAR'17 EBITDA Mg (%)

16 GIMSA

17 GIMSA IS GRUMA S SECOND LARGEST SUBSIDIARY AND THE LEADER OF THE CORN FLOUR INDUSTRY IN MEXICO Mexicali GIMSA Chihuahua Net Sales LTM Mar 17: US$981 million 1 Obregón Río Bravo 18 plants, with total annual capacity of 2.4 million metric tons of corn flour La Paz Culiacán Nuevo León Tampico Acaponeta Bajío * México Jalisco Celaya Veracruz Chalco Mérida GIMSA s market share within the corn flour industry is approximately 74% Chinameca Corn flour mills (18) * Temporarily closed Chiapas 17 1 Convenience translation at an exchange rate of Ps /dollar

18 CORN FLOUR IS ONLY USED TO PRODUCE 34% OF THE TORTILLAS IN MEXICO, THUS THERE IS A GREAT POTENTIAL FOR LONG-TERM GROWTH Potential Corn Flour Market in Mexico 7.3 Million Metric Tons of Corn Flour 1 US$3.5 billion Corn Flour Market in Mexico 2.5 Million Metric Tons of Corn Flour 1 US$1.2 billion GIMSA 25% HARIMASA 3% MINSA 20% MINSA 7% HARIMASA 1% OTHERS 2% CARGILL 1% GIMSA 74% CORN 66% OTHERS 1% 18 1 One corn flour metric ton = 1.8 tortilla metric tons

19 GIMSA S SALES GROWTH MAINLY REFLECTS COMMERCIAL INITIATIVES AIMED AT STRENGTHENING CUSTOMER SERVICE GIMSA Net Sales (millions of pesos) CAGR: 14 LTM MAR 17: 9% GIMSA EBITDA (millions of pesos) CAGR: 14 LTM MAR 17: 3% 15,074 15,871 17,866 18,455 2,828 2,942 2,964 3, LTM MAR' LTM MAR'17 EBITDA Mg (%)

20 GRUMA EUROPE

21 GRUMA EUROPE IS THE COMPANY S THIRD LARGEST SUBSIDIARY, FOCUSED MAINLY ON THE TORTILLA BUSINESS Net Sales LTM Mar 17: US$268 million GRUMA Europe Corn flour mills (3) Tortilla plants (6) Tortilla Operations 70% 6 Plants in Europe England (2) The Netherlands Russia Spain (2) Installed Capacity: 163,000 Metric tons/year Wheat flour tortillas Corn chips Flatbreads Other related products Corn Milling Operations 30% 3 Mills in Europe Italy Ukraine Turkey Installed Capacity: 345,000 Metric tons/year Tortilla corn flour Chip corn flour Grits 21

22 THERE IS GROWTH POTENTIAL FOR THE TORTILLA MARKET IN EUROPE Growth Drivers Estimated European Markets Adoption of tortillas in non-mexican dishes (wraps) Wraps, burritos, tacos, quesadillas, nachos, etc. becoming mainstream foods Popularity of Mexican food The number of Mexican food restaurants continues to grow More restaurants are including Mexican dishes in their menus Tortillas/Tortilla chips US$1.2 billion Corn Milling US$400 million 22

23 GRUMA EUROPE IS WORKING TO IMPROVE ITS SALES MIX BY STRENGTHENING ITS PRESENCE IN THE RETAIL CHANNEL, THEREBY TEMPORARILY IMPACTING MARGINS DUE TO HIGHER SG&A EXPENSES GRUMA EUROPE Net Sales (millions of EUR$) CAGR: 14 LTM MAR 17: 7% GRUMA EUROPE EBITDA (millions of EUR$) CAGR: 14 LTM MAR 17: 1% LTM MAR' LTM MAR'17 EBITDA Mg (%)

24 ALL OF GRUMA S SUBSIDIARIES HAVE BEEN IMPLEMENTING INITIATIVES TO ENHANCE VALUE CREATION. WE HAVE SEEN, AND CONTINUE TO EXPECT, STRONGER EBITDA GENERATION ACROSS THE COMPANY 1

25 Contact Information Rogelio Sánchez +52 (81) Lilia Gómez +52 (81) Investor Relations +52 (81)