DISCLAIMER
GENERAL INFORMATIONThe following material is submitted by way of general information regarding ControladoraMabe, S.A. de C.V., “Mabe”, as it stands to date. Said information is presented in asummarized fashion and is not intended to be comprehensive. Nor does it constitute arecommendation for potential investors. This presentation is strictly confidential and shallnot be divulged to any other person.
No representation or guarantee, either expressed or implied, is intentional, and itsexactness, precision or comprehensive information herein presented shall not beemphasized. This presentation may contain declarations that express the expectations ofmanagement regarding future events or results in lieu of historic events. These forward-looking declarations imply risk and uncertainty that may cause the real results to differmaterially from those forecast, and Mabe cannot ensure that said declarations will prove tobe correct. These risks and uncertainties include factors related to all the economies wherewe operate, which in turn may show volatility and may be adversely affected by factorspertaining to other countries, related to the business of retail sales, that by its very nature iscyclical and linked to the highly competitive industry of which Mabe is a part and in which itoperates.
COMMENTS ON FINANCIAL INFORMATIONThis presentation contains our unaudited financial information. EBITDA is not a measure offinancial performance under IFRS and should not be considered as an alternative to netincome or operating income as a measure of operating performance or to cash flows fromoperating activities as a measure of liquidity.
IFRS 16 became effective January 1st, 2019, this new standard affects the way leasing assetsand liabilities are reported in the Balance Sheet and Profit & Loss Statement.In the P&L leases expenses no longer be an operating expense and is recognized asdepreciation and interest expense separately, which has a positive impact on EBITDA andincrease in depreciation and financial costs.
All financial information, including its calculations and data, are deemed to be accurate, butaccuracy is not guaranteed, therefore, they are not guaranteed by Mabe or its affiliates andsubsidiaries. Past performance is not an indicator whatsoever of future results.
On October 23, 2020 the International Swaps and Derivatives Association (ISDA) published inits 2006 ISDA Definitions the revised definition of LIBOR, as well as a modification to thedefinition of other IBOR rates, and a new Protocol was issued.
The effective date of the Protocol is January 25, 2021. ISDA definition states that, in view of theeffective cessation of USD LIBOR in the United States, the substitute rate will be SOFR plus anadditional rate to offset the historical difference between LIBOR and SOFR.
On January 22, 2021, Mabe voluntarily adhered to ISDA 2020 IBOR Fallbacks Protocol, with theobjective that new transactions and/or those entered into prior to adhering be subject to theamended definition of LIBOR (or other IBORs), with respect to the counterparties also adhering tothe Protocol. Therefore, from that date onwards, all transactions conducted by Mabe will besubject to the new definitions as amended by the Supplement.
In order to mitigate the possible impact of the change in LIBOR rate, Mabe’s treasury is managingthe plan for transition from LIBOR to another reference rate and is in the process of defining thetransition to alternative reference rates, as well as significant assumptions and estimates forapplying the amendment.
INDUSTRY & MARKET DATACertain data is based on our estimates, which are derived from our review of internal surveys, aswell as independent sources.
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These terms and conditions and this Site are governed by the federal laws of Mexico applicabletherein, excluding any conflict of laws which would lead to the application of any other laws. Youhereby irrevocably submitted to the federal courts located in Mexico City for any disputes ormatters arising from, connected with, or relating to this information or any related matters.
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HIGHLIGHTS
• Volume and sales in 2Q21 increased 62% and 66%respectively Vs. 2Q20, driven by strong performances in allour markets
• Significantly increased EBITDA of 91% 2Q21/2Q20
• Strong improvement in EBITDA margin of 11% in 2Q21 (146bps better than 2Q20)
• Reduced Net Debt by US$200 MM from US$598 MM toUS$398 MM
• Best ever covenant ratios in 2Q21: Net leverage - 0.90x& Net interest coverage - 10.89x
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34%
7%
27%
32%
Cooking Others
Laundry Refrigeration100
53%
2%
19%
26%
North America International
Latin America Mexico
TOTAL SALES
2Q21 BY SEGMENT
TOTAL SALES 2Q21
Figures in US$MM, unless otherwise noted
TOTAL SALES
2Q21 BY REGION
TOTAL NORTH AMERICA MEXICO LATIN AMERICA INTERNATIONAL
Sales Change vs 2Q20 66% 40% 94% 159% 29%
SALES BY SEGMENT TOTAL NORTH AMERICA MEXICO LATIN AMERICA INTERNATIONAL
Cooking 34% 37% 28% 31% 44%
Refrigeration 32% 29% 30% 44% 33%
Laundry 27% 32% 24% 17% 15%
Others 7% 2% 18% 8% 8%
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3,069 3,284 3,273
621
1,030
-
FY´18 FY´19 FY´20 2Q20 2Q21
11,176 11,393 11,390
2,159
3,487
FY´18 FY´19 FY´20 2Q20 2Q21
VOLUME AND SALES 2Q
Figures in US$MM, unless otherwise noted
VOLUME (UNITS) SALES
61.5% 65.8%
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258
296
353
60
114
8.4%
9.0%
10.8%
9.6%
11.0%
FY´18 FY´19 FY´20 2Q20 2Q21
EBITDA 2Q
For purposes of this slide, EBITDA does not consider IFRS16, which affects the way leasing assets and liabilities arereported in the Balance Sheet.
Figures in US$MM, unless otherwise noted | 6 |
EBITDA % Margin
90.9%
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RESULTS OVERVIEW 2Q
Figures in US$MM, unless otherwise noted
* Covenants do not consider IFRS16
CONCEPT 2Q21 2Q20 D VS 2020
Sales 1,030 621 66%
% SG&A 11.6% 12.9% (1%)
EBITDAR 121 66 83%
EBITDAR Margin 11.7% 10.6%
CapEx 28 24 16%
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RESULTS OVERVIEW YTD
Figures in US$MM, unless otherwise noted
* Covenants do not consider IFRS16
CONCEPT YTD21 YTD20 D VS 2020
Sales 1,886 1,299 45%
% SG&A 11.9% 13.6% (2%)
EBITDAR 215 126 71%
EBITDAR Margin 11.4% 9.7%
CapEx 57 57 (0%)
Net Debt 398 598 (34%)
Net Leverage * 0.90x 2.05x
Net Interest Coverage * 10.89x 6.42x
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370
175
15 30 22
4 9 9
2
2021 2022 2023 2024 2026 2028398
467
373
514
598
637
478
241
181
313
203
290
290
247
2Q21
1Q21
4Q20
3Q20
2Q20
1Q20
4Q19
Net Debt Cash
DEBT PROFILE
DEBT Average life of debt: 6.6 years
Figures in US$MM, unless otherwise noted
41 1 1
Notes 2028 Private Placement Club Deal ST Debt LT Peru CAD Loan
Gross Debt
927
888
717
686
639
725
Net Debt Cash
648
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FINAL REMARKS
• We expect continued high-volume demand in the third quarter in most ofour markets. In the fourth quarter, demand will stabilize.
• During the second quarter and early third quarter, prices and promotionswere adjusted to offset inflation in materials and freight costs.
• Mabe continues on the process to increase the capacity of its plants to meetstrong customer demand.
• Ongoing focus on improving the company's financial profile
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Florencia de la FuenteCorporate Treasury & Investor Relations ManagerPhone: +52 55 1100 3730 E-mail: [email protected]
Laura AlvizoTreasury & Investor Relations Jr. ManagerPhone: +52 55 9178 8268E-mail: [email protected]
Av. Paseo de las Palmas 100,Lomas de Chapultepec I Sección,C.P. 11000, Ciudad de México, México.
CONTACT