grupo lala, s.a.b. de c.v....grupo lala 1q earnings conference call company data, in mexican pesos....

1st. Quarter, 2016 Earnings Conference Call

Grupo LALA, S.A.B. de C.V.

April 26, 2016

Grupo LALA 1Q Earnings Conference Call

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 Actof 1933, as amended.

This presentation includes forward-looking statements or statements about events or circumstances which have not yet occurred. We havebased these forward-looking statements largely on our current beliefs and expectations about future events and financial trends affecting ourbusinesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and assumptions,including, among other things, general economic, political and business conditions, both in Mexico and in Latin America as a whole. Thewords “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are intended to identifyforward-looking statements. We undertake no obligations to update or revise any forward-looking statements because 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 and ouraffiliates, agents, directors, employees and advisors accept no liability whatsoever for any loss or damage of any kind arising out of the use ofall 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, hedgingand trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information inthis material.

2


MACRO ECONOMIC REVIEW 1Q-2016

POSITIVE VARIABLES:• Nominal Wage = +4.5% (March)• Mexican Inflation = 2.6% (March)• Remittances = +40.0% (Jan-Feb, in MXN terms)

NEGATIVE VARIABLES:• Consumer Confidence = -1.8% (February)• FX (Peso/Dollar) = -20.9% (1Q-15 vs. 1Q-16)

3

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

MEXICO CPI INFLATION (YoY)

Source: BANXICO, INEGI .


FINANCIAL RESULTS-DELIVERING GROWTH4

Income Statement(1) 1Q-15 % 1Q-16 % Growth

Net Sales $ 11,630 100.0% $12,509 100.0% 7.6%

Gross Profit 4,532 39.0% 4,960 39.7% 9.5%

Operating Income 1,366 11.7% 1,557 12.4% 14.0%

EBITDA(2) 1,641 14.1% 1,889 15.1% 15.1%

Net Income 944 8.1% 1,111 8.9% 17.8%1. Company Data, in Mexican Pesos.2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.

3 MONTHS ENDED MARCH 31, 2016

Segment 1Q-15 1Q-16 Growth

Milk $ 7,705 $ 8,143 5.7%

Other Dairy Products 3,261 3,581 9.8%

Beverages and Others 664 785 18.2% Other DairyProducts

28.6%

Beverages & Others6.3%

Milk65.1%

CONTRIBUTION TOTAL SALES


DEVOLOPING INTERNAL CAPABILITIES

Structure and location

SALES & OPERATIONAL PLANNING

5

ARIBA Software implementation

STRATEGIC PROCUREMENT

SHARED SERVICE STRUCTURE

Improve Customer Service



MXN $564mm in CAPEX investment for the 3 months ended march 31, 2016

Increased production capacity in Mexico and Central America.

CAPEX 1Q-20166

CAPEX MIX 3M-2016

Maintenance40.0%

Others60.0%

Grupo LALA 1Q Earnings Conference Call*Irapuato Production Cluster


Company Data, in Mexican Pesos.Source: Company Information.

Financial Position 2015 2016

Total Assets $31,412 $35,809

Cash 8,097 9,083

Total Liabilities 8,429 10,366

Shareholder Equity 22,983 25,443

AS OF MARCH 31,

Capital Structure 2015 2016

Net Debt/EBITDA (1.4)x (1.4)x

EBITDA/Interest Paid 774.2x 377.5x

STRONG FINANCIAL POSITION7



Company Data, in Mexican Pesos.Source: Company Information.

SOLID CASH FLOW8

0.135 pesos per share

May 25th, 2016

2nd. Installment of the cash dividend

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q-15 1Q-16

CASH FLOW FROM OPERATIONS (LTM)

MXN$m

m

3,145

5,514

“LALA CARES FOR YOU”



“Nourishing your life is our passion”

LALA MISSION & VISION10

MISSION

“To be the favorite dairy company in the Americas”

VISION

Products launched in 2015



NEW MARKETING CAMPAIGN11

Grupo LALA 1Q Earnings Conference CallNew product image 2016


On-trend products and packaging innovation

ACCELERATING ORGANIC GROWTH IN MEXICO12


World-Class go-to market execution


Develop Internal Capabilities

STRATEGIC PRIORITIES 201613

2nd

3rd

4th


Expand & Consolidate Central America

Operation

M&A and Alliances

CONTACT INFORMATION

Investor RelationsEnrique González+52 (55) 9177 [email protected]

Forward-looking statementsThis document contains certain assumptions, projections andforward-looking statements regarding the Company’s financialsituation, operative results and information, Grupo LALA’sbusiness and that of its subsidiaries as well as with regards tothe Company’s related plans and objectives. This executivesummery does not constitute a public securities offering onbehalf of LALA and is intended to be used for informationalpurposes only.

For more information: www.grupolala.com

Stock InformationGrupo LALA has been traded under the ticker ‘LALA B’ on the Bolsa Mexicana de Valores (BMV) since October 16, 2013.

mailto:[email protected]

http://www.grupolala.com/

grupo lala, s.a.b. de c.v....grupo lala 1q earnings conference call company data, in mexican pesos....

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