Presentación de PowerPoint

Grupo LALA, S.A.B. de C.V.
NON-DEAL ROADSHOW
PRESENTATION
June, 2016
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1949
1980
1990
2000
2010
2015
ABOUT US
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WHO WE ARE
LALA is a Mexican Company focused in the
healthy and nutritious food industry with over
65 years of experience in the production,
innovation and marketing of milk and dairy
products under the highest quality standards.
LALA operates 22 production plants and 166
distribution centers in Mexico and Central
America, and is supported by more than
33,000 employees. LALA operates one of the
largest chilled distribution networks in the
region, with 6,500+ delivery routes. Our
product portfolio includes over 600 SKUs under
30+ brands, which are available at more than
550,000 points-of-sale.
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MISSION
“Nourishing your life is our
passion”
VISION
“To be the favorite dairy
company in the Americas”
OUR FOOTPRINT
Mexico
United States
Guatemala
Honduras
El Salvador
Nicaragua
Costa Rica
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OUR PRODUCTS
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MILK
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Milk: Pasteurized, UHT and functional milks, pasteurized and UHT dairy-based beverages, and powdered milk.
OTHER DAIRY PRODUCTS
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Other Dairy Products: Cream, butter, cream-based spreads, yoghurt, cheese, ice cream and desserts.
BEVERAGES AND OTHERS
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Beverages and Others: Beverages, juices, cold cuts and other income.
COMSUMPTION & DAIRY OUTLOOK
“Investing today to capture Mexico´s
future growth opportunities”
CONSUMER OUTLOOK
Today’s market trends and consumption are moving
towards foods and beverages categories that have
functional benefits.
More than half the consumers across all
generations are willing to pay a premium for
products that provide health benefits.
The reinvention of dairy as a completely natural food
plays an important role in this consumer trend.
Creating new products that appeal to the health trend
is not enough—marketing, processing technology and
convenience are important factors to be consider.
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AMERICAS DAIRY MARKET
TOTAL AMERICAS DAIRY
MARKET VALUE IS ~US$160 BILLION
24%
Brazil
46%
World Dairy Market value is
~US$550 billion.
The U.S., Mexico and Central
America represents 58.0% of total
Americas Dairy Market.
Americas Dairy Market it´s projected
to grow by ~US$16 billion in next 5
years.
9%
USA
México
8%
3% Central America
2% Others
1% Peru
3% Colombia
2% Chile
Brazil
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Canada
2% Argentina
México
(1) Central America includes: Costa Rica, Dominican Republic, Guatemala, Nicaragua and other Central America / Caribean countries.
(2) Others includes: Ecuador, Bolivia, Uruguay, Venezuela and other South America Countries.
Source: Euromonitor, Company information.
LALA 2016 STRATEGIC PRIORITIES
“Sustainable Growth Strategy”
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ACCELERATING ORGANIC
GROWTH IN MEXICO
On-trend products and
packing innovation
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New marketing
campaign
World-Class go-to
market execution
ON-TREND PRODUCTS AND
PACKING INNOVATION
LALA 100
• Aseptic
• Non-lactose
• More protein and calcium
• PET material packing
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ON-TREND PRODUCTS AND
PACKING INNOVATION
CHEESE
• New resealable technology
• Shredded and slice presentation
• Non-lactose
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ON-TREND PRODUCTS AND
PACKING INNOVATION
LALA SEMILLAS
• Super food seeds
• Low sugar and fat content
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ON-TREND PRODUCTS AND PACKING
INNOVATION
NUTRI LECHE
• Top-five consumer brand in Mexico
• Annual sales above US$1 billion
• Nutri umbrella brand to increase product
offer among low-incomes classes
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MEXICO TOP FIVE
CONSUMER BRANDS
PLACE
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BRAND
PENETRATION
FREQUENCY
99%
85
98%
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99%
37
75%
27
89%
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Source: Kantar Worldpanel 2015
1. Penetration based on number of households that purchase a brand;
2. Frecuency of purchase (# of times per year)
The Largest Healthy Food
Company in Mexico
Classified among Mexico´s
top five consumer brands.
NEW MARKETING CAMPAIGN
NATIONAL TV
ADVERTISING
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DEVOLOPING INTERNAL CAPABILITIES
STRATEGIC PROCUREMENT
ARIBA Software implementation
SALES & OPERATIONAL PLANNING
Improve Customer Service
SHARED SERVICE STRUCTURE
Structure and location
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EXPAND & CONSOLIDATE
CENTRAL AMERICA OPERATIONS
Production Plant
San Benito, Nicaragua
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M&A AND ALLIANCES
LALA OPERATES IN 7 COUNTRIES
OPPORTUNITIES
REGION
The Americas
MARKET
Dairy & Dairy
alternatives
ADDING
Infrastructure, brands,
value- added categories
and talent.
Our Strategy Follows
a Disciplined Process
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LALA U.S. OPERATION
“Building brands to grow the business”
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U.S. PRODUCTION FACILITIES
SINTON, COLORADO
FLORESVILLE, TEXAS
OMAHA, NEBRASKA
• ESL Milk
• Cultured
• ESL Milk
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• Drinkable Yoghurt
• Spoonble Yoghurt
• Sour Cream
U.S. BRANDED PORTFOLIO
Products reach fastest growing segment
– Millennials
• Convenience
• Portability
• Health Conscious
• Taste
Innovation
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U.S. BRANDED PORTFOLIO
Natural Milk
Higher Protein
Higher Calcium
Simple Ingredients
Richer, Creamier Texture
Jersey Cows less than 10% of milk supply
“Right Time for Promised Land National Expansion”
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U.S. BRANDED PORTFOLIO
Mainstream on-the-go “Smoothie in a
bottle” brand with healthy halo of
yoghurt
Established brand equity with
positioning that suggests yoghurt
blends of fruits and vegetables to
meet high health trends
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Rich, creamy taste and
superior texture
100% fat free
More protein and calcium
U.S. NATIONAL EXPANSIONS
ON TRACK
LALA DRINKABLE YOGHURT
Sept. 2015
ACV: 25.0%
Sept. 2016
ACV: 71.0%
PROMISED LAND
Sept. 2015
ACV: 23.0%
15,364 STORES
Presence in Big Retailers with Exposure National Wide
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Sept. 2016
ACV: 58.0%
12,551 STORES
360° MARKETING SUPPORT
Social Media
Digital
Television
Website
Public Relations
Mobile
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Sampling
Shopper Marketing
OPPORTUNITIES IN U.S. WITH HISPANIC
CONSUMERS
Hispanics Represent Majority of Future Population Growth
Over 55 million Hispanics in the U.S. today
Growth rate is 3X the U.S. rate
18% of U.S. population and over 50% of the growth by 2020
Hispanic Households Have Higher Spending Power
Larger family size = higher household spending
1 in every 6 individuals; 1 in every 4 children
10 years younger than general U.S. population entering prime
earning years
$1.3 Trillion in spending power in 2015
Substantial Opportunities
Opportunities to gain share of Hispanic sales by
partnering with key retailers focused on this segment
Brands and categories can grow via enhanced
alignment with Hispanic consumers
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Source: US Census Bureau, Pew Hispanic Center, Selig Center for Economic growth.
U.S. MANAGEMENT - TALENT
Jim Richard
Chief Commercial Officer
35+ Years
Toby Purdy
Chief Marketing Officer
25+ Years
George Lorenz
Vice President, Supply Chain
20+ Years
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TRANSACTION KEY DATA
SUMMARY CONSIDERATIONS
The U.S. branded business, manufactures and distributes
leading products in value-added categories with brands like
LALA and Frusion and premium milk with leading brands
like Promised Land and Skim Plus.
Grupo LALA has entered into an agreement to acquire from
Laguna Dairy S. de R.L. de C.V. certain assets related to
Laguna´s branded business in the U.S. as there are
significant compatibilities between both companies in
terms of products, profitability and R&D, which could help
the Company bring significant synergies in the mid-term.
The Branded Business would add sales of ~US$200mm to
Grupo LALA and would increase its geographic penetration
to more markets, in high growth categories.
Furthermore, based on current dynamics, there is
significant synergy potential to target the US Hispanic
market, one of LALA’s main objectives.
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TRANSACTION KEY DATA
Value Transaction:
US$246 Million
Estimated Sales 2016:
~US$200 Million
Value-Added Dairy
Companies Mean:
FV/Sales = 2.3.x
CAPEX INVESTMENTS 2016
A total investment of +3,000mm MXN
CHEESE PRODUCTION CAPACITY
Investment: +1,000mm MXN
Delivery: Q1-2017
Location: Complejo Laguna, Torreon, Mexico
Increasing cheese production
capacity and new packing
technology
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* All figures and dates are according to Company´s estimations.
WHITE BASE CAPACITY (YOGHURT)
Investment: +250mm MXN
Delivery: Q4-2016
Location: Complejo Irapuato, Irapuato, Mexico
Increase of production capacity and
new topping technology
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* All figures and dates are according to Company´s estimations.
WATER TREATMENT PLANT
Investment: +100mm MXN
Delivery: Q3-2016
Location: Complejo Laguna, Torreon,
Mexico
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New facility for water treatment
NEW PASTEURIZATION PLANT,
NORTH MEXICO
Investment: +300mm MXN
Delivery: Q2-2017
Location: Cd. Obregon, Mexico
Construction of a new state of
the art pasteurization facility
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* All figures and dates are according to Company´s estimations.
AUTOMATED INDUSTRIAL
WAREHOUSE
Investment: +200mm MXN
Delivery: Q3-2016
Location: Complejo Irapuato,
Irapuato, Mexico
New automated industrial warehouse
to increase storage capacity
100% Refrigerated capacity
Up to 23,000 storage positions
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* All figures and dates are according to Company´s estimations.
NANO FILTRATION - LALA 100 MILK
Investment: +200mm MXN
Delivery: Q3-2016
Location: Aguascalientes, Mexico
Production capacity using NanoFiltration Technology
The first production line with
PET packing material in Mexico
and Central America
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* All figures and dates are according to Company´s estimations.
NEW TETRA PAK EQUIPMENT OF
1.5L UHT PRODUCTS
Investment: +100mm MXN
Delivery: Q4-2016
Location: Aguascalientes, Mexico
New equipment and
technology for Tetra Pak
packing of 1.5L for UHT
products
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* All figures and dates are according to Company´s estimations.
OTHER INVESTMENTS
Investment: +300mm MXN
New UHT Multi-Packing
Complejo Laguna - Torreon, Mexico
Increase of production capacity
Guadalajara, Mexico
Increase cooler space at point of sale
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* All figures and dates are according to Company´s estimations.
KEY FINANCIAL INFORMATION
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FINANCIAL RESULTS (P&L)
3 MONTHS ENDED MARCH 31, 2016
Income Statement(1)
1Q-15
Net Sales
$ 11,630
100.0%
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%
944
8.1%
1,111
8.9%
17.8%
Net Income
%
1Q-16
$12,509 100.0%
SALES BY TRADE CHANNELS 2015
51.0%
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1. Company Data, in Mexican Pesos. (´000)
2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.
%
49.0%
Growth
7.6%
SALES BY SEGMENT
Segment
1Q-16
% Variation
$ 7,705
$8,143
5.7%
Other Dairy Products
3,261
3,581
9.8%
Beverages and Other
664
758
18.2%
Milk
65.1%
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1Q-15
1. Company Data, in Mexican Pesos. (´000)
28.6%
6.3%
STRONG FINANCIAL POSITION
$9,083
$8,097
Key Metrics
1Q-15
1Q-16
(1.4)x
(1.3)x
EBITDA / Interest Paid
774.2x
377.5x
EARNINGS PER SHARE
$1.30
$1.65
Net Debt / EBITDA
AS OF MARCH 31,
$73
$87
1Q-15
1Q-16
Financial Position
2015
Total Assets
$31,412
$35,809
Total Debt (MXN$mm)
Cash
8,097
9,083
Cash (MXN$mm)
Total Liabilities
8,429
10,366
22,983
25,443
Shareholder Equity
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2016
Source: Company Information
Ratios are calculated in local currency
Figures in Mexican Pesos (´000)
LALA B OVERVIEW
SHARE PRICE GROWTH YTD
AVERAGE DAILY LIQUIDITY 2016
13.00%
US$6.0mm
SHAREHOLDERS STRUCTURE
2,475,932,111 shares
May 25th, 2016 (LALA B)
47.50
45.50
$45.27
43.50
21.4%
Free Float
41.50
39.50
1.1%
Others
37.50
35.50
33.50
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Source: Company Information, Bolsa Mexicana de Valores, Analyst Research.
24-05-16
28-04-16
02-04-16
07-03-16
10-02-16
15-01-16
20-12-15
24-11-15
29-10-15
03-10-15
07-09-15
12-08-15
17-07-15
21-06-15
26-05-15
31.50
22.5%
Underwriting
Trust
OWNERSHIP
STRUCTURE
55.0%
Control Trust
LALA 2016 STRATEGIC PRIORITIES
Accelerating Organic Growth in Mexico
Developing Internal Capabilities
Expand & Consolidate Central America
Operations
M&A and Alliances
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CONTACT INFORMATION
Investor Relations
Enrique González
+52 (55) 9177 5900
[email protected]
Stock Information
Grupo LALA has been traded under the ticker ‘LALA B’
on the Bolsa Mexicana de Valores (BMV) since
October 16, 2013.
For more information: www.grupolala.com
Forward-looking statements
This document contains certain assumptions, projections and
forward-looking statements regarding the Company’s financial
situation, operative results and information, Grupo LALA’s
business and that of its subsidiaries as well as with regards to
the Company’s related plans and objectives. This executive
summery does not constitute a public securities offering on
behalf of LALA and is intended to be used for informational
purposes only.
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http://www.grupolala.com/en1_Inversionistas?id=1