Investor Presentaiton
Financial Overview (Cont'd)
DD3
ACQUISITION CORP.
Betterware
Strong Balance Sheet and Cash Generation
Capex requirements are low and approximately 50% of annual capex is deployed toward technology
infrastructure. In 2019, the company expects to invest ~US$20mm in the construction of its new campus
Minimal working capital needs with suppliers fully financing the inventory and receivables cycle
Betterware has a solid balance sheet with a healthy net leverage ratio of 0.8x as of June 2019.
Excess cash after growth initiatives can be distributed to shareholders as dividends with a cap of ~50% of Net
Income
(US$ in millions)
Adjusted Levered Free Cash Flow
Working Capital¹ & Cash Conversion
(US$ in millions)
O Days of Cash Conversion Cycle
63
10
-8
-23
1
1
1
61.8% 63.4%
65.9%
58.8%
54.0%
51.4%
12.1%
3.9%
-3.5%
0.6%
2.3%
1.7%
1.3% 1.0%
45.0%
44.5%
$47.0
$5.9
$0.8
$39.4
$2.2
$3.7
$3.4
$3.1
$2.6
$32.3
$21.9
$5.1
-$2.7
$12.1
$14.2
$7.2
2
2015
2016
2017
2018 2019P
2020P
2021P
2022P
2015
2016
2017
2018² 2019P
2020P
2021P
2022P
Adj. Levered Free Cash Flow
FCF as % of EBITDA
WoCa
-WoCa as % of net revenue
Source: Management
1. Current assets excluding cash minus current liabilities excluding debt; 2. Balance and days
affected by a 3-week overstock to eliminate possible operation disruptions because of an early
Chinese new year; Notes: i) Financial information under Mexican GAAP basis
18
ii) Avg MXN/USD FX Rates: 2015-15.87, 2016 - 18.68, 2017 - 18.92, 2018 - 19.23, 2019P - 20.0,
2020P-20.0, 2021P - 20.0, 2022P-20.0, 1H2018-19.23, 1H2019-20.0View entire presentation