Grupo LALA, S.A.B. de C.V. 1 st. Quarter, 2016 Earnings Conference - - PowerPoint PPT Presentation

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Grupo LALA, S.A.B. de C.V. 1 st. Quarter, 2016 Earnings Conference - - PowerPoint PPT Presentation

Grupo LALA, S.A.B. de C.V. 1 st. Quarter, 2016 Earnings Conference Call April 26, 2016 2 DISCLAIMER This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to be construed


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  • 1st. Quarter, 2016

Earnings Conference Call

Grupo LALA, S.A.B. de C.V.

April 26, 2016

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SLIDE 2

Grupo LALA 1Q Earnings Conference Call

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

  • f 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.

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Grupo LALA 1Q Earnings Conference Call

MACRO ECONOMIC REVIEW 1Q-2016

POSITIVE VARIABLES:

  • Nominal Wage = +4.5% (March)
  • Mexican Inflation = 2.6% (March)
  • Remittances = +40.0% (Jan-Feb, in MXN terms)

NEGATIVE VARIABLES:

  • Consumer Confidence = -1.8% (February)
  • FX (Peso/Dollar) = -20.9% (1Q-15 vs. 1Q-16)

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0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MEXICO CPI INFLATION (YoY)

Source: BANXICO, INEGI .

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Grupo LALA 1Q Earnings Conference Call

FINANCIAL RESULTS-DELIVERING GROWTH

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Income Statement(1) 1Q-15 % 1Q-16 % Growth Net Sales $ 11,630 100.0% $12,509 100.0% 7.6% 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% Net Income 944 8.1% 1,111 8.9% 17.8%

  • 1. Company Data, in Mexican Pesos.
  • 2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.

3 MONTHS ENDED MARCH 31, 2016 Segment 1Q-15 1Q-16 Growth Milk $ 7,705 $ 8,143 5.7% Other Dairy Products 3,261 3,581 9.8% Beverages and Others 664 785 18.2%

Other Dairy Products 28.6% Beverages & Others 6.3% Milk 65.1%

CONTRIBUTION TOTAL SALES

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Grupo LALA 1Q Earnings Conference Call

DEVOLOPING INTERNAL CAPABILITIES

Structure and location

SALES & OPERATIONAL PLANNING

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ARIBA Software implementation

STRATEGIC PROCUREMENT SHARED SERVICE STRUCTURE

Improve Customer Service

Grupo LALA 1Q Earnings Conference Call

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Grupo LALA 1Q Earnings Conference Call

MXN $564mm in CAPEX investment for the 3 months ended march 31, 2016

Increased production capacity in Mexico and Central America.

CAPEX 1Q-2016 6

CAPEX MIX 3M-2016

Maintenance 40.0% Others 60.0%

Grupo LALA 1Q Earnings Conference Call *Irapuato Production Cluster

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Grupo LALA 1Q Earnings Conference Call Company Data, in Mexican Pesos. Source: Company Information.

Financial Position 2015 2016 Total Assets $31,412 $35,809 Cash 8,097 9,083 Total Liabilities 8,429 10,366 Shareholder Equity 22,983 25,443 AS OF MARCH 31, Capital Structure 2015 2016 Net Debt/EBITDA (1.4)x (1.4)x EBITDA/Interest Paid 774.2x 377.5x

STRONG FINANCIAL POSITION 7

Grupo LALA 1Q Earnings Conference Call

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Grupo LALA 1Q Earnings Conference Call

Company Data, in Mexican Pesos. Source: Company Information.

SOLID CASH FLOW 8

0.135 pesos per share

May 25th, 2016

  • 2nd. Installment of the cash dividend

1,000 2,000 3,000 4,000 5,000 6,000 7,000

1Q-15 1Q-16 CASH FLOW FROM OPERATIONS (LTM)

MXN$mm

3,145 5,514

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“LALA CARES FOR YOU”

Grupo LALA 1Q Earnings Conference Call

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Grupo LALA 1Q Earnings Conference Call

“Nourishing your life is our passion”

LALA MISSION & VISION 10

MISSION

“To be the favorite dairy company in the Americas”

VISION

Products launched in 2015 Grupo LALA 1Q Earnings Conference Call

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Grupo LALA 1Q Earnings Conference Call

NEW MARKETING CAMPAIGN 11

Grupo LALA 1Q Earnings Conference Call

New product image 2016

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Grupo LALA 1Q Earnings Conference Call

On-trend products and packaging innovation

ACCELERATING ORGANIC GROWTH IN MEXICO

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Grupo LALA 1Q Earnings Conference Call

World-Class go-to market execution

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Grupo LALA 1Q Earnings Conference Call

Develop Internal Capabilities

STRATEGIC PRIORITIES 2016 13

2nd 3rd 4th

Grupo LALA 1Q Earnings Conference Call

Expand & Consolidate Central America Operation M&A and Alliances

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CONTACT INFORMATION

Investor Relations Enrique González +52 (55) 9177 5900

investor.relations@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. For more information: www.grupolala.com

Stock Information Grupo LALA has been traded under the ticker ‘LALA B’

  • n the Bolsa Mexicana de Valores (BMV) since

October 16, 2013.