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We are experience
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All the information contained in this document is prepared in accordance with International FinancialReporting Standards (IFRS) as of September 30, 2017, unless otherwise stated.
Forward-Looking StatementThe information herein contained (“Information”) has been prepared by Grupo Herdez, S.A.B. de C.V.,its associates, subsidiaries and/or affiliated companies (“Grupo Herdez”) and may contain forward-looking statements that reflect Grupo Herdez current expectations and views which could differmaterially due to different factors, risks and uncertainties. Therefore, Grupo Herdez and/or itsrespective officers, employees or agents, assume no responsibility or liability for any discrepancy inthe Information. In particular, but without prejudice to the generality of the foregoing, no warranty isgiven as to the accuracy of the statements or the future variation of the Information or any otherwritten or oral Information issued by Grupo Herdez. The Information has been delivered forinformative purposes only. The issuance of this information shall not be taken as any form ofcommitment on the part of Grupo Herdez to proceed with any transaction.
[ 2 ]
Investment Case
Profitable growth strategy
+100years of
experience
Branded food leader
Sound financial structure
Leading brands
Committed to sustainability
Solid corporate
governance
[ 3 ]
HELADOS NESTLE
22distribution
centers
474Nutrisa®
stores
tuna
7vessels
Helados Nestlé
52,000POS
Grupo Herdez at a Glance
16plants
18countries
presence in
employees
9,000More than
[ 4 ]
Corporate Structure
Grupo Herdez consolidates in its financial statements 100% of the Frozen Divison, Herdez Del Fuerte, Barilla Mexico and McCormick Mexico. While itsproportional stake in MegaMex is registered in the Equity Investment in Associates.
100% 50% 50% 50%
50%
MEGAMEXSince 2009
FROZEN DIVISIONNutrisa since 2013
Helados Nestlé since 2015
HERDEZ DEL FUERTESince 2008
BARILLA MÉXICOSince 2002
MCCORMICK MÉXICOSince 1947
[ 5 ]
Leading Brands
Our Brands in the United States
Our Distribution Agreements in Mexico
Our Brands in Mexico
Organic FoodPastaSauce
Hot salsaOlives
HoneySyrup Tomato Purée
MoleSauce
Canned VegetablesSalsaTuna
Ice-creamPopsicles
MayonnaiseDressingsJamTea
Frozen YogurtHealthy foods and beverages
Pasta Pasta
Soy Sauce Food Packaging Cranberry Juice
DipsPeppersSalsasTortillas
PeppersCanned vegetables
Mole
PeppersSalsaTortillas
PeppersSalsa
Frozen DishesBurritos
Guacamole
[ 6 ]
Retail36%
Wholesalers34%
Club stores8%
Nutrisa stores7%
Foodservice6%
DSD5%
Convenience4%
Commercial Leadership in Mexico
Sales mix by channel
Sales mix by category
ALLPresence in
the sales channels in Mexico
[ 7 ]Consolidated figures
Mayonnaise35%
Frozen16%
Tomato puree8%
Pasta8%
Canned tuna5%
Mole4%
Canned vegetables4%
Salsa, 3%
Catsup, 2%
Jams, 2%Thea, 2%
Juice, 1%Mushrooms, 1%
Food Packaging, 1%
Others7%
Market Share in Mexico
Market Share (Value)
462
376
266
149
98
56 50
Canned tuna Mayonnaise Pasta Ice cream Tomato purée Salsa Mole
Category Size (million USD)
73%10% 12%* 71% 41% 84%28%
[ 8 ]
Company data with third party information, size of the category considering information from retail and wholesalers*Helados Nestlé sales in retail
Preserves Growth Drivers
Health & wellness
Closercommunication
Broaderconsumption
occasions
Regional penetration
Shopping experience
[ 9 ]
Frozen Growth Drivers
• Promotion optimization
• SG&A management
• SKU productivity
• Beneficiate the openings through franchises
• Increase store traffic & freezerproductivity
• Brand building• Sales mix optimization• Strengthening of new sales
channels• Product innovation
TOP LINEDRIVERS
BOTTOM LINEDRIVERS
SALES MIXby channel
[ 10 ]
Nutrisa stores46%
DSD (Traditional)30%
Convenience13%
Retail8%
Others2%
Club stores1%
HELADOS NESTLE
MegaMex Growth Drivers
CULTURAL EVOLUTION
(United as ONE)
CREATING NEW EXPERIENCES
WINNING ACROSS
MARKETS
USD $1B 14-16%EBITDA margin
[ 11 ]
Net sales
2020 GOALS
Bring the
SPIRIT OF
MEXICO to every table
Embracing flavor together
11,55812,197
13,139
14,43115,376
7831,166
2,139
2,5922,812
839955
1,079
1,1581,190
2013 2014 2015 2016 12M3Q17
PRESERVES FROZEN EXPORTS
CAGR 5YPRESERVES 7.4%FROZEN 37.7%EXPORTS 9.1%
Preserves79%
Frozen15%
Exports6%
SEGMENTMIX
Net Sales Performance
[ 12 ]
13,18014,319
16,356
18,180 19,378
Consolidated figures in million pesos
1,876
2,232
2,668 2,634
2,830
111
117
136 103
211
63
66
83 79
114
15.6
16.9
17.7
15.5
16.3
2013 2014 2015 2016 12M3Q17
PRESERVES FROZEN EXPORTS EBITDA MARGIN
Preserves90%
Frozen7%
Exports3%
VENTAS
CAGR 5YPRESERVES 10.8%FROZEN 17.4%EXPORTS 16.0%
EBITDA Performance
SEGMENT MIX
Consolidated figures in million pesos[ 13 ]
2,050
2,415
2,887 2,816
3,155
Bank loans Bonds TOTAL DEBT
Fix82%
Float18%
MXN100%
RATE MIX
CURRENCY MIX
Consolidated figures in million pesos. Debt mix includes hedging instruments
5,9805,600
530
Debt Structure
[ 14 ]
Financial Debt 6,130
Average Cost 8.2%
Net Debt/EBITDA 1.6
Net Debt/Shareholders Equity 0.32
6.0%
10.2%
11.3%
9.9%
10.9%
12.0%
2015 2016 12M 3Q17
ROE ROIC
ROE = Majority Net Income / Average Majority Shareholders’ EquityAdjusted ROE = Shareholders Equity adjusted for the elimination of the reasonable value of Herdez Del Fuerte as a result of the application of IFRS10 and IFRS3ROIC = EBIT / Average (Consolidated Shareholders’ Equity + Total Debt)
Returns on Capital
[ 15 ]
Héctor Hernández Pons TorresCHAIRMAN, [M] 1991
Enrique Hernández-Pons TorresVICE-CHAIRMAN, [M] 1991
Flora Hernández-Pons de Merino [M] 2004
Carlos Autrey Maza [M] 1991
Enrique Castillo Sánchez Mejorada [M] 1991
José Roberto Danel Díaz [M] 1991
Eduardo Ortiz Tirado Serrano [M] 1991
Luis Rebollar Corona [M] 1991
José Manuel Rincón Gallardo [M] 1991
Solid Corporate Governance
PropietaryDirectors
IndependentDirectors
• HERDEZ* single series
• Robust governance structure fromsubsidiaries
• 67% independent members
• Assignment of individual responsabilitieson corporate governance, labor and environmental practice.
[ 16 ]
Ethics
&
Transparency
EnvironmentQuality of
Life
Sustainability Model
Awards & Certifications
[ 17 ]
PART OF THE INDEXES
• Comercial
• Consumo Frecuente
• IMC30
• IPC CompMX
• IPC SmallCap
• IPC Sustentable
• Transforma
49%float
Stock Information
432 millionoutstanding shares
September 2017
EPS MXN 1.89
[ 18 ]
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17
Δ% Herdez Δ% IPC Δ% Consumo Frecuente
www.grupoherdez.com.mx
For more information
Andrea AmozurrutiaTel.+52 (55) 5201 5636
Grecia DomínguezTel.+52 (55) 5201 5602
Fernando AcevedoTel.+52 (55) 5201 5655 ext. 1052
