2014 CORPORATE PRESENTATION Reviewed 4Q14
6
th
5,5
43.400
Billions
12.371
IN 2014
2,9
168
13,7%
17
50Millions
35%
100
60,6%
1,1 Billions
1
8 40 72
14
10%
5
4
th
MILLION 12.800
Corporate structure
3
Malaysia
Chile
2013
2014 Colombia
2012
Colombia
Costa Rica
Panama
2011
Malaysia
2010
Dominican Republic
Colombia
2009
USA
Mexico
Colombia Costa Rica
2008 Panama
Panama & Nicaragua
2007
Colombia
2006
Peru
2005
USD 1,7 billion invested in 19 succesful acquisitions
Costa Rica
Colombia
Puerto Rico
2004
Biscuits Nestlé Chocolates Nestlé
Panama
2002
Costa Rica
2000
Colombia
Colombia
Colombia
Significant expansion since 2000
Acquisitions (19)
Mergers (5)
New businesses (6)
4
Sales by region 7.0% USA 3.7% Mexico
1.4% Dominican Rep. & Caribbean
7.4% Central America
2.5% Venezuela
65.1% Colombia 1.1% Ecuador 2.0% Peru
2.1% Other countries 7.9% Chile
34.9% International sales
5
Pro-forma 2014 Sales by business unit
USDmillion|COP/USD2.378,56
Pasta Ice cream 3% 6% Retail food 8%
TMLUC 11%
Pasta Ice cream 3% 7% Cold cuts 25%
$2.888 Biscuits 18% Chocolates 16%
Retail food 10% TMLUC 10%
$2.717*
Coffees 11%
International sales by business unit
EBITDA by business unit
Coffees 15%
Retail food 5%
Cold cuts 10%
Cold cuts 23%
$394
TMLUC 34%
$363*
13,7% $13,4%*
Chocolates 14%
Biscuits 18%
USD1.115
33%
Biscuits 24%
$1.115*
35%* Coffees 12%
Chocolates 15%
This information includes El Corral pro-forma sales and EBITDA for 2014 The Retail Food business unit consolidates the result of Grupo El Corral and the ice cream shops in Central America and Dominican Republic. The results of the ice cream shops were included in the Ice Cream business units in the previous reports.
* Official2014 results-COLGAAP
6
GRUPO EL CORRAL ACQUISITION: OWN BRANDS- 93% OF SALES
Final price: COP743.401 mm (USD 313mm) Financing:
Bank loans: COP685.000 mm Cash: COP58.401(USD25mm)
(USD288mm)
MAIN PRO-FORMA FIGURES 2014:
Combined sales: COP407.600 mm Ebitda: COP73.500 mm (USD31mm) Margin: 18% Stores (Colombia): 345 Stores (Abroad): 17 - franchised Employees: 4.500+
(USD171mm)
GLOBAL BRANDS - 7% OF SALES
7
Main strategic goal
* Through organic growth
8
8
Key differentiators of our business model
9
Business Risks
10
Corporate governance
Board of directors
11
Business model: People
12
Business model: Brands
BRAND MANAGEMENT MODEL
• Portfolio of 168 brands • 17 brands selling over $50 MM
• 24 brands with #1 market share in key markets • 45 brands with over 20 years of existence • 29 brands present in more than one market
13
Market share Colombia + TMLUC Market share Colombia: 60.6% (+0,6%) Cold cuts
Biscuits
73,3%
55,1%
+0,6%
+0,9%
Chocolates
Chocolate confectionary 66,6% (A) +0,1%
Coffee
Roast and ground coffee (A)
55,8% -0,2%
Hot chocolate 63,2% (B) +0,7% Soluble coffee (B)
Milk modifiers 25,4% (C) -2,3%
41,6%
(A) #2 Colombina 7,6% (B) #2 Casa Lúker 25,3% (C) #1 Nestlé 68,9% (D) Frito Lay 25,7%
*ICB= Instant Cold Beverages Source: Nielsen twelve month as of november 2014. (% share as in value and change vs. same period last year)
52,3% +1,6%
TMLUC
ICB* 63,2% (A)/-0,2% Pastas 28,8% (B)/-1% Coffee 16,6% (C)/-0,2% Potato Chips 13,5% (D)/+2,8%
+1,9% (D)
#2 Nestlé 12,0% #3 Mondelez 10,7%
ICE CREAM ND
Pasta
+0.3%
Nuts 49,3%
#2 Private labels 7,3% #3 Friko 0,6%
Ice cream
México ICB* 30,8% (E)/+0,7% (A) #2 Águila Roja 23,5% (B) #1 Nestlé 44,4%
#2 La Muñeca 30,1% (A) #2 Carozzi 35,3%
(B) #1 Carozzi 45,0% (C) #1 Nestlé 71,4% (D) #1 Mondelez 51.2%
14
Business model: Distribution
15
International expansion model
16
Internationalization phases
17
M&A Strategy STRATEGIC REGION WHAT ARE OUR TARGETS: • Current or new categories with a promising strategic fit • Acquisition processes respectful of existing culture and people • We prefer control • Excellent management teams • Leader brands • High value added and differentiated products • Solid and sustainable business models – No turnarounds. • Way to market/ distribution • Highly innovative companies • Preference for businesses with a sound strategy towards healthy and nutritional products Interested + Interested Not interested Not interested – not in our region
Southeast Asia
HEALTH AND NUTRITION Support the growth of our healthy and nutritional products portafolio with acquisitions: • "Good for you" products, dairy, veggies, supplements, natural juices and nectars, nuts, oats, soy products, dried fruits, aromatics, sugar free, fat free reduced sugar/fats/salt , cereals & grains, enriched or functional products, healthy claim products.
18
Corporate Philosophy and Performance
19
Sustainable growth
El Reconocimiento Emisores – IR otorgado por la Bolsa de Valores de Colombia S.A. no es una certificación sobre la bondad de los valores inscritos ni sobre la solvencia del emisor
20
Increasing value generation Sales
7.000 International
5.000
2.258
Colombia
1.116 3.000
2.026
1.511
1.561
4.000
2.000 1.000
18,7% TACC
1.226
1.496
871 629 454
407 1.740
2.243
1.843
2.578
2.893
3.233
3.092
3.872
3.795
3.496
4.204
9,2% TACC
0
Growth • 2/3 organic (1/3 price & 2/3 volume) • 1/3 inorganic
COP MILES DE MILLONES
COP MILES DE MILLONES
6.000
last 10 yr: 11,6% CAGR
1.000
800
15,0%
600
15,3%
14,2%
13,3% EBITDA Margin
EBITDA
20%
14,2% 12,0%
12,1%
11,2%
400 200
323
326
383
2004
2005
2006
529
570
551
538
568
2007
2008
2009
2010
2011
12,6%
671
14,1%
13,4%
833
864
15% 10% 5%
0
0% 2012
last 10 yr: 10,3%CAGR
2013
2014
21
Shareholder base / adjusted multiple
22
Multiples (dic-14)
EV/EBITDA EV/EBITDA Alimentos - food23,8
25 20
20,3 17,0
18,1 14,7
15 5
10,0
18,5
18,0
12,9
2011
16,5
17,3
12,0
12,1
12,5
2012
2013
2014
13,1 16,7
14,2
10
EV/EBITDA Total
10,2
10,1
2007
2008
12,6
0 2005
2006
2009
2010
23
Consolidated net debt
Billion pesos
2.000 1.800 1.600 1.400
1.581
1.637
mar./14
1.780
1.807
1.749
jun./14
sep./14
dic./14
1.200
1.000 800
978
600 400
486
200
399
0
Ratio Net debt / EBITDA EBITDA / Interest Interest / Sales
dic./10
dic./11
dic./12
dic./13
dic-10 1.82 8.60 1.40%
dic-11 0.86 8.85 1.27%
dic-12 0.59 12.74 0.99%
dic-13 1.90 10.38 1.36%
mar-14 1.88 8.62 1.62%
jun-14 2.04 7.11 1.96%
sep-14 2.01 6.64 2.10%
dic-14 2.02 6.36 2.10%
Note: Sales, EBITDA and interest of the last 12 months
24
Debt profile
Deuda por Moneda C OP C LP PEN USD MXN ARS VEF
Deuda por Tasa IPC DTF IBR TAB Nominal Tasa Fija > 1 Año LIBOR TIIE México Tasa Fija < 1 Año
(6) Actual
(6)
78,4% 12,8% 4,5% 3,0% 1,2% 0,1% 0,1%
Actual 36,9% 27,5% 13,9% 12,6% 4,8% 2,7% 1,2% 0,3%
Tasa de Endeudamiento Monto Total Bilateral C OP $ 1.174.378.000.000 Bonos Fideicomiso GN $ 401.459.000.000 Bilateral otras monedas$ (4) 199.163.516.386 C artas de C rédito $ 163.094.824.996 Bonos Perú $ 94.834.233.846 Finagros $ 81.288.000.000 Leasing $ 2.114.459.820 Impuestos $0 Repos $0
Tasa Promedio (5) 6,95% 8,81% 5,22% 3,19% 8,84% 4,20% 6,98% 0,00% 0,00%
Tasa promedio sin Impuestos
6,80%
Deuda por Plazo (3) (POR VENCIMIENTO) Largo plazo >5 años. 41,3% Mediano plazo (1-5 años.) 37,5% C orto plazo
