Presentación de PowerPoint

INVESTOR
RELATIONS
Grupo LALA, S.A.B. de C.V.
WHOLESOMELY
» LALA
June, 2015
Add a glass of LALA to your day
» Contents
3 Investment Highlights
23 Consumption and Dairy Outlook
36 Strong Financial Position
4 About Us
24 Growth Potential
37 LALA B Overview
5 Who We Are
26 Americas Dairy Market
38 Disclaimer
6 The largest Healthy Food
Company in Mexico
27 Megabrands
39 Apendix
29 Mexico Top Five Consumer Brands
40 Shareholders Structure
30 Sustainable Growth Strategy
41 Our Suppliers
31 Our Projects
42 Our Distribution Fleet
32 Key Financial Information
43 Our Production Facilities
33Financial Highlights
44 Our Team
34 Sustainable Growth
45 Our R&D Center
35 Key Financial Statistics
46 Contact Information
8 Our Presence
9 Our History
11 Our Products
19 LALA 2014
20 Capital Expenditures
21 Acquisitions
22 Innovation
2
INVESTMENT HIGHLIGHTS
» Scale and Leadership in Branded Healthy Foods
» Second Most Recognized Consumer Brand in Mexico
» Two Megabrands
» Refrigerated Distribution Network
» Innovation and Value Added Products
» Sustainable Growth Strategy
3
1 » ABOUT US
4
» WHO WE
ARE
LALA is the 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 18 production plants and 165 distribution
centers in Mexico and Central America, and is supported by more than
32,500 employees. LALA operates one of the largest chilled distribution
networks in the region, with a aproximately of 6,500 delivery routes. Our
product portfolio includes over 600 SKUs under 25 brands, which are
available at more than 500,000 points-of-sale.
Mission:
“Nourishing lifetimes”
Vision:
"Be a leading food company, considered as the best option
for consumers, customers, employees and shareholders"
5
» THE LARGEST HEALTHY FOOD COMPANY IN MEXICO
More than
Over
More than
600
25
32,500
SKU’s
brands
employees
SALES BY TRADE CHANNEL*
SALES BY SEGMENT*
Beverages & Others
5.5%
Other Dairy
Products 30.0%
Modern Trade
51.0 %
Traditional Trade
49.0%
*Last Twelve Months as of June 2015.
6
US$3,161mm(1)
Milk
64.5%
1. As of 2nd. Quarter 2015, assuming an
average FX rate of 15.31 MXN/USD
» THE LARGEST HEALTHY FOOD COMPANY IN MEXICO
18
Over
More than
500,000
6,500
Production Plants
Points of Sale
Delivery Routes
165
Distribution Centers
PRODUCTION AND DISTRIBUTION
LALA IN FIGURES LTM (JUNE, 2015)
LALA has the largest chillied distribution network in Mexico.
» US $3,161 MM Net Revenues1
» US $401 MM EBITDA1
» US $223 MM Net Income1
1. As of 2nd. Quarter 2015, assuming an average FX rate of 15.31 MXN/USD
7
» OUR PRESENCE
Presence in 6 countries
Mexico, Guatemala, Honduras,
El Salvador, Nicaragua and Costa Rica
18 Productions Plants
165 Distributions Centers
+ 500,000 Points of Sale
+ 32,500 Employees
+ 8,700 units for distribution
+ 6,500 Distribution Routes
The key factors that have kept us on a path of sustained growth for more than six
decades includes the proven experience, effort and commitment of our people as well
as the prestige and brand recognition that we have built over time, which has lead
consumers to trust in us and our products.
8
» OUR HISTORY
1949
1950
1960
1970
1980
Torreon Milk Producers’
Credit Union (Unión de
Crédito de Productores de
Leche de Torreón)
established.
Construction of our first
pasteurized milk plant, in La
Laguna, Torreón.
LALA switches
from glass to carton
containers. The Company
continues its expansion
throughout Mexico.
Construction of the carton
containers plant, adquisition
of the Acapulco Pasteurized
Facility and fusion with
Nazas Pasteurized Factory.
Expansion to other dairy
categories, also the
introduction of ultra-high
temperature (UHT) process
to produce products with an
extended shelf life.
9
» OUR HISTORY
1990
Corporate and identity
rebranding, including a
new logo, image,
advertising theme and
marketing strategy.
LALA also begins
manufacturing plastic
containers.
10
2000
Adquisition of
Nutrileche and other
regional brands.
Expansion into Central
America with also
introducing new
product caterories.
2010
2013
Continued of product
and brand portfolio
expansion,
consolidating our
leadership position in
the dairy market.
Grupo LALA
established its Center
for R&D
On October 16, 2013,
LALA raised 14,055
million pesos through
its Initial Public
Offering in the
Mexican Stock
Exchange. The IPO
offering price was
$27.50 pesos per
share.
2014
Eskimo Acquisition;
Company that
operates in the icecream and dairy
industry, with
presence in
Nicaragua, Honduras,
Costa Rica and El
Salvador.
2015
For over 65 years, in
Grupo LALA we have
overcome many
challenges and have
had to adapt to existing
market conditions..
LALA new company
logo.
2 » OUR PRODUCTS
11
» MILK
The images represents a few of the main products for each category.
12
» CHEESE
The images represents a few of the main products for each category.
13
» YOGHURTS
The images represents a few of the main products for each category.
14
» JUICE
AND FLAVORED BEVERAGES
The images represents a few of the main products for each category.
15
» DESSERTS
The images represents a few of the main products for each category.
16
» CREAM
& SPREADS
The images represents a few of the main products for each category.
17
» FROZEN
The images represents a few of the main products for each category.
18
3 » LALA 2014
Our Plant in Nicaragua
19
» CAPITAL EXPENDITURES
In 2014:
» 70% of total capex was used to fund growth
and profitability projects.
» More than 1.0 billion pesos spent on
reconfiguring production assets.
» 1.2 billion pesos invested in LALA’s
distribution network.
» A 20% increase in installed refrigeration
capacity at points-of-sale.
20
» ACQUISITIONS
» BRAND:
ESKIMO
» CATEGORIES:
ICE CREAM, MILK AND DAIRY
» FOOTPRINT:
NICARAGUA, HONDURAS, EL SALVADOR
AND COSTA RICA.
Eskimo, S.A. is a Nicaraguan food company with more
than 72 years in operation. Its main product categories
include: ice cream, milk, yogurt and beverages. In
Nicaragua, the Company’s primary market, the Eskimo
brand is synonymous with ice cream. It’s distribution
network reaches over 15,000 points-of-sale.
21
AVAILABLE IN
+15,000
POINTS-OF-SALE
» INNOVATION
We leverage our knowledge of consumer preferences to incorporate new products and
categories into our portfolio.
Some of the most important product launches in 2014 and 2015:
22
4 » COMSUMPTION & DAIRY OUTLOOK
23
» GROWTH POTENTIAL
GROWING MIDDLE CLASS1
ATTRACTIVE POPULATION PYRAMID…
MALE
5%
4%
3%
Population (%)
2%
1%
100+
95–99
90–94
85–89
80–84
75–79
70–74
65–69
60–64
55–59
50–54
45–49
40–44
35–39
30–34
25–29
20–24
15–19
10–14
5–9
0–4
0% 0%
Age group
FEMALE
Denotes middle class
D/E
Over 60% of total
population is below 30
years old
D+
C+
AB
8.0%
7.0%
14.0%
17.0%
Middle
class
17.0%
+69.0mm
people
30.0%
35.0%
25.0%
1%
2%
3%
4%
Population (%)
5%
26.0%
20.0%
2010
2025E
Source: EIU, INEGI, AMAI, CONEVAL, Banco de Mexico, Euromonitor, Economist, Bain Analysis, UN World population prospects;
1) Classes are defined by the following monthly family income: AB>MX$98,500,C+ MX$40,600-$98,499, C MX$13,500–40,599, D+ MX$7,880–$13,499,
D MX$3,130-$7,879 and E <MX$3,129
24
C
» GROWTH POTENTIAL
MILK CONSUMPTION (lts per capita)
273
257
CHEESE CONSUMPTION (kg per capita)
Latam avg. 129.0
198
194
139
138
125
23.7
121
Latam avg. 5.4
14.5
13.9
53
Western Europe
18.6
11.9
63.3
7.3
22.2
6.6
5.0
Source: BMI Food & Drink Report 2013;
Note: Milk consumption per capita avg. considers Argentina, Brazil, Chile, Colombia, Peru and Mexico; Yoghurt consumption Latam avg. considers Peru,
Chile , Mexico and Argentina; Cheese consumption Latam avg. considers Peru, Chile, Mexico and Brazil ; Fruit/vegetable juice consumption Latam avg.
considers Peru, Brazil and Mexico
25
2.2
0.7
FRUIT/VEGETABLE JUICE CONSUMPTION (lts per capita)
Latam avg. 10.6
19.0
4.7
Eastern Europe
YOGHURT CONSUMPTION (kg per capita)
26.9
12.3
Latam avg. 5.7
7.8
5.9
3.3
» AMERICAS DAIRY
MARKET
Total Americas Dairy Market Value
is ~US$160 billion
1%
2%
2%
» World Dairy Market value is
~US$550 billion, the Americas
represent 1/3rd of the value.
» The USA and Brazil represents
70% of total Americas Dairy
Market.
» Americas Dairy Market it´s
proyected to grow by
~US16 billion in next 5 years.
USA
2%
Brazil
3%
3%
Mexico
8%
Canada
46%
9%
Central America (1)
Colombia
Argentina
24%
Chile
Peru
(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.
26
Others(2)
5 » MEGABRANDS
27
» THE LARGEST HEALTHY FOOD COMPANY IN MEXICO
2 MEGA BRANDS
Classified among Mexico´s
top five consumer brands.
28
» MEXICO TOP FIVE CONSUMER
Source: Kantar Worldpanel 2015
1. Penetration based on number of households that purchase a brand;
2. Frecuency of purchase (# of times per year)
29
BRANDS
99%
85
98%
39
99%
37
75%
27
89%
20
6 » SUSTAINABLE GROWTH STRATEGY
30
» OUR PROJECTS
We believe that by adding some of these categories into our
business model, we achieve:
» Operation Leverage
» Economies of Scale
» Efficiencies & Strategies
» Higher Profitability
» Leadership
31
7 » KEY FINANCIAL INFORMATION
32
» FINANCIAL HIGHLIGHTS
Income Statement(1)
Growth
2014
%
Net Sales
Gross Profit
Operating Income
4.3%
4.9%
6.1%
$ 44,993
16,312
4,470
100.0%
36.3%
9.9%
EBITDA(2)
Net Income
3.6%
10.4%
5,471
3,116
12.2%
6.9%
Financial Position(1)
Growth
2014
Total Assets
Cash
Total Liabilities
Shareholders Equity
13.9%
(36.0)%
9.0%
15.3%
$ 29,983
7,184
6,677
23,306
1. Company Data, in Mexican Pesos.
2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization
33
(2014 Full Year)
2013
$26,333
8,463
6,128
20,204
2013
%
$ 43,156 100.0%
15,548 36.0%
4,213 9.8%
5,279
2,821
12.2%
6.5%
» SUSTAINABLE GROWTH
NET SALES
EBITDA
(MXNbn)
(MXNbn)
5.5
45.0
2.7
20.9
2005
2014
Source: Company Data
Note: Prior to 2011, financials are under Mexican FRS; By 2011 financials are under IFRS. This may affect comparability
34
2005
2014
» KEY FINANCIAL STATISTICS
100.0%
NET SALES
EBITDA
NET INCOME
(MXN$mm)
(MXN$mm)
(MXN$mm)
Margin
Margin
Margin
100.0%
100.0%
100.0%
11.8%
12.2%
12.2%
4,764
5,279
5,471
6,141
2012
2013
2014
LTM 2Q-15
48,400
40,345
2012
43,156
2013
44,993
2014
Margin
100.0%
100.0%
LTM 2Q-15
Margin
12.2%
11,847
1,339
14.1%
2,308
2012
6.5%
6.9%
7.1%
2,821
3,116
3,420
2013
2014
LTM 2Q-15
Margin
7.7%
8.4%
999
843
2Q-15
Source: Company Information
35
5.7%
1,672
10,973
2Q-14
12.7%
2Q-14
2Q-15
2Q-14
2Q-15
» STRONG FINANCIAL POSITION
$8,862
CAPITAL STRUCTURE
2Q-14
2Q-15
Net debt / EBITDA
(1.6)x
(1.3)x
EBITDA / Interest paid
59.4x
542.3x
2Q-14
2Q´15
$1.39
$1.37
$7,914
$96
$66
2Q-14
EARNINGS PER SHARE
2Q-15
STOCKHOLDERS EQUITY
Total Debt (MXN$mm)
Cash (MXN$mm)
Source: Company Information
Ratios are calculated in local currency
36
21,837 mdp 23,982 mdp
» LALA
B OVERVIEW
STOCK INFO JULY 17th, 2015
$35.86 Stock Price
AVERAGE DAILY LIQUIDITY 2015
US $3.7mm
2,474.4 mm Share Outstanding
21.4% Free Float
12.7x EV/EBITDA
30
36.00
35.00
34.00
33.00
32.00
31.00
30.00
29.00
28.00
27.00
26.00
EV/EBITDA
26.0x
23.2x
23.3x
25
20
Avg.
17.2x
15.7x
15
10
15-10-13
31-10-13
16-11-13
02-12-13
18-12-13
03-01-14
19-01-14
04-02-14
20-02-14
08-03-14
24-03-14
09-04-14
25-04-14
11-05-14
27-05-14
12-06-14
28-06-14
14-07-14
30-07-14
15-08-14
31-08-14
16-09-14
02-10-14
18-10-14
03-11-14
19-11-14
05-12-14
21-12-14
06-01-15
22-01-15
07-02-15
23-02-15
11-03-15
27-03-15
12-04-15
28-04-15
14-05-15
30-05-15
15-06-15
01-07-15
17-07-15
5
Source: Company Information, Bolsa Mexicana de Valores, Analyst Research.
37
0
12.3x
11.9x
8.0x
» DISCLAIMER
This material does not constitute an offering document. This material was prepared solely for informational purposes
and is not to be construed as a solicitation or an offer to buy or sell any securities. Any offering of securities will be
made solely by means of an offering memorandum, which will contain detailed information about the company and its
business and financial results, as well as its financial statements.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under
the U.S. Securities Act of 1933, as amended.
This presentation includes forward-looking statements or statements about events or circumstances which have not yet
occurred. We have based these forward-looking statements largely on our current beliefs and expectations about future
events and financial trends affecting our businesses 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. The words “believes”, “may”, “will”,
“estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are intended to identify forward-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 the information contained herein. It should not be regarded by recipients as a substitute for the exercise of
their own judgment. We and our affiliates, agents, directors, employees and advisors accept no liability whatsoever for
any loss or damage of any kind arising out of the use of all 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, hedging and trading decision based upon your own judgment and advice from such
advisers as you deem necessary and not upon any information in this material.
38
8 » APENDIX
39
» SHAREHOLDERS STRUCTURE
2,474,432,111 shares
Float
[21.4%]
Others [0.6%]
OWNERSHIP
STRUCTURE
Underwriting
[23.0%]
40
Control Trust
[55.0%]
» OUR SUPPLIERS
41
» OUR DISTRIBUTION
42
FLEET
» OUR PRODUCTION FACILITIES
43
» OUR TEAM
44
» OUR R&D CENTER
45
CONTACT INFORMATION
Investor Relations
Enrique González
+52 (55) 9177 5928
[email protected]
Stock Information
LALA B Series shares have been listed on the Bolsa
Mexicana de Valores (BMV) since October 16, 2013
under the ticker symbol “LALA B”.
46
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.
For more information: www.grupolala.com
http://www.grupolala.com/en1_Inversionistas?id=1