presentación de powerpoint - grupo herdez · the information contained herein (the...

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


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


M I LL I ON P ESOS


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


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 postgraduate 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

[email protected]

mailto:[email protected]

presentación de powerpoint - grupo herdez · the information contained herein (the...

Documents