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INVESTOR RELATIONS CORPORATE PRESENTATION May 2021

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Page 1: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

INVESTOR RELATIONSC O R P O R A T E P R E S E N T A T I O N

May 2021

Page 2: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

This presentation may contain certain forward-looking statements and information relating to the Company that reflect the current views and/or

expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include,

without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words

like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similar meaning. Such statements are subject to

a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially

from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers

of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Risks

and uncertainties include, but are not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the

outbreak, government actions and restrictive measures implemented in response, material delays, supply chain disruptions and other impacts to the

business, or on the Company’s ability to execute business continuity plans as a result of the COVID-19 pandemic, economic factors, such as

interest rate and currency exchange rate fluctuations; competition, including technological advances, new products attained by competitors;

challenges inherent in new product development; the ability of the Company to successfully execute strategic plans; the impact of business

combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; significant adverse litigation or government

action, including related to product liability claims; changes to applicable laws and regulations, including tax laws; changes in behavior and spending

patterns of purchasers of products and services; financial instability of international economies and legal systems and sovereign risk. A further list

and descriptions of these risks, uncertainties and other factors can be found within the Company’s related filings with the Bolsa Mexicana de

Valores. Any forward-looking statement made in this release speaks only as of the date of this release. The Company undertakes no obligation to

update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SAFE HARBOR DISCLOSURE

M a y 2 0 2 1 2

Page 3: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

WHO WE ARE

Genomma Lab Internacional, S.A.B. de C.V., is one of the leading

pharmaceutical (OTC) and Personal Care products companies in Mexico with an

increasing international presence that develops, sells and markets a broad range

of premium branded products, many of which are leaders in their categories.

Page 4: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

4

Countries 18

OUR FOOTPRINT

LatAm 47.6%of net sales

Points of Sale

400,000+

1,300+employees

Industrial Cluster 1

Brands 50+

“Innovation is part

of our DNA”

Mexico 42.9%of net sales

USA 9.5%of net sales

A s o f M a r c h , 2 0 2 1 M a y 2 0 2 1

Page 5: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

5

Pain Relief Cough & Cold

Anti-mycotics & Sexual Health Infant FormulaAntibacterial

Gastro & Anti-Hemorrhoids

Isotonic Beverages

OVER THE COUNTER PRODUCTS (OTC):49.9% OF TOTAL SALES

M a y 2 0 2 1New categories

Anti-Flu

Page 6: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Beauty Creams

6

Shampoo Hair Care

Skin Care & Micellar water RazorsAnti-Acne & Cosmetics

M a y 2 0 2 1New categories

PERSONAL CARE PRODUCTS (PC):50.1% OF TOTAL SALES

Page 7: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

76.8

42.9

23.2

57.1

Mexico

WELL DIVERSIFIED BY REGION & CURRENCIES

2010 1Q-2021100%

100%

countries15

countries18

US Dollar: 9.5%

Other currencies:

47.6%

1. Argentine Peso

2. Brazilian Real

3. Colombian Peso

4. Chilean Peso

5. Peruvian Sol

6. Uruguayan Peso

7. Paraguayan Guarani

Mexican Peso:

42.9%

7

International

M a y 2 0 2 1

Page 8: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

42nd.PLACE

position

0.5%

OTC MARKET SHARE BY COUNTRY

MEXICO8.8%

3rd.PLACE

position

ARGENTINA

15.4%

1st.PLACE

position

BRAZIL

Top Two Countries Highly Fragmented

As a percentage of sales By category penetration

position

CHILE

4.3%

7th.

ECUADOR

position

4.5%

4th.position

PERU

4.7%

6th.position

COLOMBIA

3.9%

7th.position

5.5%

4th.

CAM (1)

Source: IMS Health. Ranking for the Latin American OTC market as of the end of 2019

(1) Central America: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.. 8

EUA

1stPLACE

46.8%position

Total OTC

Hispano OTC

M a y 2 0 2 1

Page 9: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

JORGE LUIS

BRAKE

Prior Experience:

• Senior Vice President

at Laureate Education

Inc.

• CEO of P&G’s Latin

America división

• 30+ years of

experience in

consumer goods

9

Prior Experience:

• CCO Cydsa

• CFO Grupo LALA

• Strategic &

Financial Planning

PEPSICO

• McKinsey & Co

ANTONIO

ZAMORA

CFO

DECEMBER 2015

CEO

Prior Experience:

• EVP Sales P&G

• 20+ years of

experience in

consumer goods

MARCO

SPARVIERI

COO

APRIL 2014SEPTEMBER 2018

MANAGEMENT TEAM

M a y 2 0 2 1

Page 10: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

NEW GROWTH STRATEGY

1

M a y 2 0 2 1 10

Product Innovation & Portfolio

Optimization

Best-in-class

Go-to-Market

World-class

Manufacturing &

Supply Chain

Corporate

Culture

2 4

3

Page 11: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Cost and Expense Control

Strong balance position

OrganizationCommitment

New Categoriesand ProductInnovation

Optimal level of Operations

E-commerceInitiatives

11

NET SALES(1)

1Q: +6.4%1Q21’LTM: +9.1%

SOLID RESULTS 2021

EBITDA(1)

1Q: +6.8%1Q21’LTM: +17.6%

NET INCOME(1)

1Q: (14.5%)

1Q21’LTM: +59.9%

(1) Percentaje of growth as compared with the same period of previous year.

COVID-19 RESPONSE

M a y 2 0 2 1

Page 12: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

12

COVID-19 SOCIAL REPONSIBILITY ACTIONS 2021

M a y 2 0 2 1

• +50,000 products donated to DIF Oaxaca

• +4,000 products donated to medical staff

• 15th anniversary of ESR Distinction

Page 13: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

13

1) PRODUCT INNOVATION

M a y 2 0 2 1

Product Development

Kills 99.99% of germs

Charcoal Detox line

Clean Boost of Vitamin c

Page 14: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

14

1) PRODUCT INNOVATION

M a y 2 0 2 1

Brand Improvements

No sweeteners

100% organic

Qualified Herbalistmedication

Page 15: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

15

1) PRODUCT INNOVATION

M a y 2 0 2 1

Mom & Pops expansion

Sachet presentation

90 ml (0.02 gal)

presentation

97% less irritation

Page 16: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

16

NEW CATEGORY: GROOMEN®

M a y 2 0 2 1

New category withgrowth potential for

Mexico & LatAm

Manufactured by Edgewell PC

(Exclusivity agreement)

Market Value opportunity of >100mm USD

Page 17: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

17

NEW CATEGORY: NOVAMIL®

M a y 2 0 2 1

Manufactured by UP International

(Exclusivity agreement)

Market Value opportunity of >80mm USD

Exclusivity in LatAmex. Brazil

Page 18: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

18

2) BEST-IN-CLASS GO-TO-MARKET

M a y 2 0 2 1

In-store Media & Visibility at POS Traditional Channel• +400,000 POS reached

• +2,000 person sales team

• Brazil new commercial agreements

• Traditional Channel presence in Central

America and Andean Region

Page 19: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

19

2) BEST-IN-CLASS GO-TO-MARKET

M a y 2 0 2 1

GEN ORDER• Supporting strong relationships

with salesforce and local businesses

• Platform development 2020 (App)

• Official launch in 2021.

E-COMMERCE• Reinforce presence in Amazon

• Strong Positioning in Mercado Libre

• Marketing & Brand Visibility.

Page 20: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

20

3) WORLD-CLASS MANUFACTURING AND SUPPLY CHAIN

M a y 2 0 2 1

• 2 out of 3 components started operations (PC & Warehouse)

• Successful relocation of the Finished Products Warehouse

• Isotonic Beverage Line started operations.

1 2 3

Page 21: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Manufacturing Plant(May 2021)

MANUFACTURING FACILITY UPDATE

NEW Manufacturing

Facility video

21M a y 2 0 2 1

Page 22: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

22M a y 2 0 2 1

PC MANUFACTURING FACILITY UPDATE

Q1-2021 PC Plant Execution

• 2.4mm bottles of Suerox® (for sale)

• 14 k bottles of shampoo (testing)

• +2,800 hours of operation

• 36% capacity utilization of the isotonic beverage line.

Page 23: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

25M a y 2 0 2 1

CENTRAL WAREHOUSE UPDATE

New Warehouse

• Increased Warehouse capacity

• Speed & Accuracy in case picking

• Ensures product rotation.

Q1-2021 Execution

• +31,000 active storage positions

• 6.2mm moved cases (+19% vs. 2020)

• Shipping +55 trucks per day

Page 24: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

NEW WAREHOUSE LOCATION IN BRAZIL

Extrema-MG

Region

7 days

6 days

9 days

8 days

Extrema - Minas Gerais

• One of the main logistics hubs

in Brazil

• Improved level of costumer

service

• Logistics cost reduction

• + 6,000 pallets positions

• +50% increase of capacity.

• Reduced transit time in +5 days

25M a y 2 0 2 1

Page 25: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Carlos

Quezada

Prior Experience:

• P&G Manufacture

AD

• +30 years of

experience

25

Personal Care Director

OCTOBER 2020

M a y 2 0 2 1

Carlos

Amador

Prior Experience:

• Gelpharma-Vitae

Laboratories

• +18 years of

experience

OTC Director

OCTOBER 2020

Felipe

Trujillo

Prior Experience:

• Novartis, Merck &

Pfizer

• +30 years of

experience

Quality Director

OCTOBER 2020

REINFORCEMENT IN KEY POSITIONS

Page 26: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

26M a y 2 0 2 1

4) CORPORATE CULTURE

New Corporate Philosophy

Page 27: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

27M a y 2 0 2 1

4) CORPORATE CULTURE

Social Responsibility Breaking Down Barriers

Equal opportunity

Page 28: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

28

SUSTANTIBILITY AGENDA 2025

M a y 2 0 2 1

Page 29: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

29

OUR PRODUCTS

By 2025, all our packages will be 100% recyclable, reusable

or compostable.

OUR VALUE CHAIN

By 2022, 100% of our global supply chain will be

reviewed in sustainability terms.

OUR WASTE MANAGEMENT

By 2022, we will prevent that waste generated in our operational sites reach

landfills, through recycling and reusepractices.

SUSTANTIBILITY AGENDA 2025

M a y 2 0 2 1

Page 30: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

30

OUR LOGISTICS OUR CONTRIBUTION TO SOCIETYOUR TEAM

By 2023, we will reduce 20% of CO2 emissionsrelated to our logistics operation in Mexico, compared to 2019.

By 2022, 50% of our global team will be

represented by women.

By 2025, 500,000 people will be benefited by

businessinitiatives aligned to

social and environmentalcauses.

SUSTANTIBILITY AGENDA 2025

M a y 2 0 2 1

Page 31: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

INDUSTRIAL CLUSTER RATIONALE

31N o v e m b e r 2 0 2 0

Page 32: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

INVESTMENT RATIONALE

Enhanced Value Equation

Higher Gross Margin

Superior Product Quality

Reliable Product Supply

32M a y 2 0 2 1

Page 33: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

LONG-TERM FINANCING AND RATINGS

Long-term financing provided by:

Short-Term:

F1+(mex)

Short-Term:

HR+1

Rating Agencies

Long-Term:

AA(mex)

Outlook:

Stable

Long-Term:

HR AA

Outlook:

Positive

~100MM USD

Loan Term: 8 years

33M a y 2 0 2 1

Page 34: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

(1) Genomma Lab estimation.

INVESTMENT PROFILE

Benefit from economies of scale and

efficient production capabilities

EBITDA

Synergies

~ 700 bps(1)

Market Expansion:

Genomma Lab will

reinvest between

350 - 300 bps for growth

34M a y 2 0 2 1

Page 35: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

35

Strategically Located

Manufacturing Plant

(79 Acres)

“Puerta México”

(Most important train port in

Mexico)

Distance between Plant &

Puerta México: 1.5 mi

IMPROVING EFFICENCY IN EXPORT LOGISTICS

M a y 2 0 2 1

Page 36: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

36M a y 2 0 2 1Isotonic Beverage Manufacturing Product Line

PC MANUFACTURING FACILITY UPDATE

Page 37: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

PC MANUFACTURING FACILITY UPDATE

37M a y 2 0 2 1Isotonic Beverage Manufacturing Product Line

Page 38: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

38

PC MANUFACTURING FACILITY UPDATE

M a y 2 0 2 1First test batch of Suerox® at PC Plant

Page 39: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

39M a y 2 0 2 1

Shampoo Manufacturing Product Line

PC MANUFACTURING FACILITY UPDATE

Page 40: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Shampoo Manufacturing Product Line 25M a y 2 0 2 1

PC MANUFACTURING FACILITY UPDATE

Page 41: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Shampoo Manufacturing Product Line 25M a y 2 0 2 1

PC MANUFACTURING FACILITY UPDATE

Page 42: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

42

OTC MANUFACTURING FACILITY UPDATE

M a y 2 0 2 1State-of-the-art equipment

Page 43: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

43

OTC MANUFACTURING FACILITY UPDATE

M a y 2 0 2 1

OTC Plant Manufacturing

Equipment

Page 44: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

44

Blister machine for OTC pills

OTC MANUFACTURING FACILITY UPDATE

M a y 2 0 2 1

State-of-the-art equipment

Page 45: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

45

OTC MANUFACTURING FACILITY UPDATE

M a y 2 0 2 1

Tube filling equipment for

semi-solid production line

Water chiller system for OTC Plant

Tanks system for liquid OTC

production

Page 46: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

46

OTC MANUFACTURING FACILITY UPDATE

M a y 2 0 2 1

State-of-the-art

equipment

Semi-solid production line

Page 47: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

ECONOMIES OF SCALE AND SCOPE DRIVING HIGHER GROSS MARGINS

Process

Raw

Materials and

Packaging

Labor Cost

Opportunity

areasOutsourcing Producing

Buying finished

products

Fragmented raw

material procurement

Direct control in all

COGS components

Economies of scale

Low scale, labor

intensive processes

State-of-the-art fully

automated lines

Vertically integrated

Supply Chain

Network

Un-synchronized

Supply Chain

Network

Highly efficient and

flexible processesHigh setup times for

changeovers

47M a y 2 0 2 1

Page 48: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

ECONOMIES OF SCALE AND SCOPE DRIVING HIGHER GROSS MARGINS

Opportunity

areasOutsourcing Producing

Higher COGS due to

co-packers profit

margin

Eliminate co-packers

profit margin

Inefficient inbound

and outbound truck-

based logistics

Leverage freight

consolidation and low-

cost train logistics for

exports

Integration of

suppliers to

industrial park

Suppliers scattered

throughout the

country

Suppliers

Logistics

Inventories

Lower safety stocks

required for raw

materials and finished

products

Higher inventories

due to multiple

warehouse network

48M a y 2 0 2 1

Page 49: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

49

Filling PE

bottles with

shampoo

TOLUCA CURRENT INBOUND LOGISTICS

195 km

4:17 hrs

ADDITIONAL EXPENSES

Shipping and Handling

Storing Cleaning

EXAMPLE OF REMOVING INEFFICIENCIES

Blowing PE

bottles

PUEBLA

M a y 2 0 2 1

Page 50: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Acquired in 2012 from Sidus

Source: Cid Latina – N02B + M01A..

Portfolio of products

19.7

38.2

20.8

12.1

‘14 ‘16 ‘17 ’18‘15‘13

‘13 ‘15 ‘16 ’17

1014

2125

34

51

‘14 ’18

Market Share in units (%)

Net Sales in USD million

Competitor

50

PROFITABILITY THROUGH COGS REDUCTION

M a y 2 0 2 1

Page 51: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

FINANCIAL HIGHLIGHTS

Page 52: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Income Statement 1Q-2021 % 1Q-2020 % Var %

Net Sales $3,547.7 100.0% $3,334.5 100.0% +6.4%

Gross Profit $2,180.5 61.5% $ 2,061.6 61.8% +5.8%

Operating Income $686.8 19.4% $640.6 19.2% +7.2%

EBITDA(1) $724.7 20.4% $678.4 20.3% +6.8%

Net Income $319.4 9.0% $373.6 11.2% (14.5%)

52

Mexico 43%of net sales

for Q1-2021

USA 9%of net sales

for Q1-2021

LatAm 48%of net sales

for Q1-2021

Ps. million

(1) EBITDA defined as operating income before D&A

FINANCIAL RESULTS

M a y 2 0 2 1

Page 53: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Financial Position 2021 2020 2020

Cash and Equivalents $1,824.3 $1,370.1 $2,103.9

Total Assets $22,654.2 $20,906.4 $22,132.6

Total Liabilities $12,793.4 $12,223.0 $12,498.4

Stockholders Equity $9,860.7 $8,683.5 $9,634.2

FINANCIAL POSITION

As of March 31, As of Dec 31,

53

Ps. million

M a y 2 0 2 1

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54

205

162 158 155145 144

103101101 99 102109

95 96

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q2

'19

Q3

'19

Q4

'19

Q1

'20

Q2

'20

Q3

'20

Q4

'20

Q1

'21

(…)

Prior Management New Management

CASH CONVERSION CYCLE (1)

(1) Cash Conversion Cycle = Days of accounts receivable + days of inventories – days of trade payables M a y 2 0 2 1

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Net Debt Profile

MXN (million)

2.1xNet Debt /

EBITDA2.3x 2.5x 1.4x 1.4x 1.8x1.2x 1.5x

55

1.5x

3,689

5,724

4,4543,980

3,610

4,459

5,112

4,320 4,506

2013 2014 2015* 2016* 2017 2018 2019 2020 1Q212013 2014 2015 2016* 2017* 2018 2019 2020 LTM’1Q21

FINANCIAL POSITION

*Adjusted EBITDA for 2015 and 2016 due to change in Genomma Lab’s financial policies

M a y 2 0 2 1

FCF** 8781,2971611338371,803

**Fre Cash Flow is defined as net cash provided by operating activities in a period minus payments for poperty and equipment in that period

1,0759181,830

Page 56: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

KEY VALUATION METRICS

Shares Outstanding

$1,048.0mm

Free Float

69.8%

EV / EBITDA

8.9x

Source: Company Information and LTM Bloomberg Consensus Estimates as of LTM ended October, 2020.

EV / EBITDA

8.9

x 18

.4x

14

.8x

15

.7x

26

.6x

10

.1x

17

.3x

11

.3x

0

10

20

30

40

Average

15.4x

P/E

16.1

x

26

.0x

15

.3x

15

.9x

64

.9x

17

.0x

21

.0x

21

.0x

0

20

40

60

Average

24.7x

P / E

16.1x

Historical data do not reflect potential upside from new manufacturing plant

56M a y 2 0 2 1

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KEY VALUATION METRICS

Genomma’s

ROIC excluding

Intangibles

30.4%

Source: Company Information. Standardized ROIC calculations made via Bloomberg as of LTM ended October 31, 2020.

Calculated ROIC Excluding Intangibles = Normalized Taxed EBIT / Average LTM Ex-Intangibles Operating Assets - Average LTM Operating Liabilties.

ROIC including Intangibles

16

.6%

16

.6%

17

.9%

5.7

%

22

.5%

(22

.8)%

15

.4%

-25%

-15%

-5%

5%

15%

25%

Average 13.1%

57M a y 2 0 2 1

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58

STOCK PERFORMANCE 2 YEARS

M a y 2 0 2 1

50

100

04/18 08/18 12/18 04/19 08/19 12/19 04/20 08/20 12/20 04/21

LAB vs. IPC

LABB 100 IPC 100

April, 2018$18.19

April, 2021$20.24

Market Cap: Ps. 21,212mm

Page 60: INVESTOR RELATIONS · November 2020 31. INVESTMENT RATIONALE Enhanced Value Equation Higher Gross Margin ... Puerta México: 1.5 mi IMPROVING EFFICENCY IN EXPORT LOGISTICS May 2021

Enrique González Head of Investor Relations

Barbara CanoInspIR Group - NY

[email protected]

+52 (55) 5081-0000

CONTACT:

STOCK INFORMATION:

Genomma Lab has been traded under the ticker ‘LAB B’ on

the Mexican Stock Exchange (BMV) since June 18, 2008.

www.genommalab.com/inversionistas

FOR MORE INFORMATION:

FORWARD-LOOKING STATEMENTS:This document contains certain assumptions, projections and forward-looking statements regarding the Company’s financial situation, operative resultsand information, Genomma Lab business and that of its subsidiaries as well as with regards to the Company’s related plans and objectives. Thisexecutive summery does not constitute a public securities offering on behalf of Genomma and is intended to be used for informational purposes only.