Seale & Associates Creative Solutions. Trusted Advice. SNACKS INDUSTRY 2021 SEALE & ASSOCIATES’ SECTOR-RELEVANT EXPERIENCE ARCA CONTINENTAL Target: Wise Foods, Inc. Transaction Type: Acquisition advisory Industries: Branded Consumer Products, Food & Beverage has acquired Geography: Northeastern USA Situation Seale & Associates was retained by Arca Continental (BMV:AC) with the mandate to help grow their snacks business portfolio by “We are very pleased to have successfully acquired Wise acquiring a platform business in the U.S. market to maximize growth Foods as part of our strategy to opportunities. grow our snack foods business in the United States, Mexico Seale & Associates’ Approach and throughout Latin America. Seale completed a thorough screening of the potential universe of Seale was instrumental and snack food companies that would align with Arca Continental’s offered invaluable guidance strategy. Seale pre-qualified each potential target and initiated and support throughout the transaction discussions with the targets that best fit Arca entire process to ensure we Continental’s strategy and investment criteria. completed this strategic acquisition in a very short timeline. We look forward to Outcome working with them again in the future as part of our team.” The process resulted in the acquisition of Wise Foods, which was Arca Continental’s first and largest snack foods acquisition in the Francisco Garza Egloff, Chief United States. The acquisition provided Arca Continental with a Executive Officer, Arca platform possessing sufficient size and scale to execute an Continental aggressive acquisition led growth strategy in the snack category. Snacks Industry Seale & Associates 2021 Creative Solutions. Trusted Advice. SEALE & ASSOCIATES’ SECTOR-RELEVANT EXPERIENCE ARCA CONTINENTAL Target: Deep River Snacks Transaction Type: Acquisition advisory Industries: Branded Consumer Products, Food & Beverage has acquired Geography: USA Situation Seale & Associates acted as exclusive financial advisor to Arca Continental (BMV:AC) with the mandate to capture both the “This acquisition broadens the process of diversification and conventional and growing better-for-you segment within the snack complementarity of the snacks category. portfolio for the U.S. consumer with innovative products and in Seale & Associates’ Approach differentiated segments, allowing us to better serve our Seale completed a thorough screening of the potential universe of customers and enhance the snack food companies that would align with Arca Continental’s development of our brands.” strategy. Seale pre-qualified each potential target and initiated transaction discussions with the targets that best fit Arca Francisco Garza Egloff, Chief Continental’s strategy and investment criteria. Executive Officer, Arca Continental Outcome The process resulted in the acquisition of Deep River Snacks, a leading authentic brand of premium, better-for-you snacks products distributed throughout the United States. Through this acquisition, Arca Continental became a more significant player in the salty snacks industry. Snacks Industry Seale & Associates 2021 Creative Solutions. Trusted Advice. SEALE & ASSOCIATES’ SECTOR-RELEVANT EXPERIENCE ARCA CONTINENTAL Target: Carolina Country Snacks Transaction Type: Acquisition advisory Industries: Branded Consumer Products, Food & Beverage has acquired Geography: USA Situation Seale & Associates acted as exclusive financial advisor to Arca Continental (BMV:AC) on the acquisition of Carolina Country Snacks, a manufacturer and distributor or pork rinds and salty snack products. Seale & Associates’ Approach Seale completed a thorough screening of the potential universe of snack food companies that would align with Arca Continental’s strategy. Seale pre-qualified each potential target and initiated transaction discussions with the targets that best fit Arca Continental’s strategy and investment criteria. Outcome The process resulted in the acquisition of Carolina Country Snacks, allowing Arca Continental to strengthen its US snack offering and leadership by adding a staple pork rinds brand to its product lines, while strengthening its distribution presence in Northeastern USA. Snacks Industry Seale & Associates 2021 Creative Solutions. Trusted Advice. GLOBAL INDUSTRY OUTLOOK The global snacks industry recorded an estimated US$215.9 billion in revenue in 2020. It is expected to reach US$264.8 billion by 2023 While North America remains the largest market, Latin America, Asia-Pacific and Eastern Europe have become the fastest-growing regions, due to increasing income levels and rapid urbanization Global concerns for obesity and health disorders have pushed consumers to seek healthier snack options, including low- calorie, low-fat, vitamin-fortified, organic, and fiber-rich food The Covid-19 pandemic has brought great business opportunities for the snacks industry, as consumers have been relying more on comfort foods While being at home, portability has not become a priority characteristic for consumers, moving towards the consumption of larger packages Snacks Industry Sources: Euromonitor International, Market Seale & Associates 2021 Research Reports, SNAC Creative Solutions. Trusted Advice. SNACKS INDUSTRY IN THE UNITED STATES The annual average per capita snack food consumption in the United States reached an approximate of 76.9 pounds in 2020 Sales of Savory Snacks by Category Pretzels, 3.8% Vegetable, Pulse and Bread Chips, Popcorn, 6.5% 2.0% Potato Chips, Puffed Snacks, 19.3% 10.2% Tortilla Chips, 17.7% Other, 13.2% Nuts, Seeds Savory Biscuits, and Trail Mixes, 13.6% 13.7% Snacks Industry Sources: Euromonitor International, Seale & Associates 2021 Fitch Solutions, Statista Creative Solutions. Trusted Advice. SNACKS INDUSTRY IN THE UNITED STATES The leading brands in the savory snacks market in the United States are: • Lay’s (7.9%) owned by Frito-Lay Co. • Doritos (7.3%) owned by Frito-Lay Co. • Cheetos (5.0%) owned by Frito-Lay Co. • Ruffles (3.5%) owned by Frito-Lay Co. • Jack Link’s (3.2%) owned by Link Snacks Inc. Savory Snacks Market – Company Shares 39.9% Other 28.4% 5.0% 4.6% 3.7% 3.2% 3.1% 2.6% 2.3% 2.0% 1.5% 1.3% 1.2% 1.2% Snacks Industry Sources: Euromonitor International, Seale & Associates 2021 Fitch Solutions Creative Solutions. Trusted Advice. SNACKS INDUSTRY IN THE UNITED STATES Snack food prices in the United States saw an average 3.0% increase during 2020 Sales of Sweet Snacks by Category Wafers, 2.1% Chocolate Coated Other, 1.5% Biscuits, 3.7% Fruit and Nut Bars, 4.2% Filled Biscuits, 20.8% Dried Fruit, 5.3% Processed Fruit Snacks, 6.5% Protein / Energy Bars, 17.7% Plain Biscuits, 10.9% Cereal Bars, 12.2% Cookies, 15.1% Snacks Industry Sources: Euromonitor International, Seale & Associates 2021 Fitch Solutions Creative Solutions. Trusted Advice. SNACKS INDUSTRY IN THE UNITED STATES The leading brands in the sweet snacks market in the United States are: • Oreo (8.5%) owned by Mondelez International Inc. • Chips Ahoy! (4.4%) owned by Mondelez International Inc. • Clif (4.4%) owned by Clif Bar & Co. • Nature Valley (4.1%) owned by General Mills Inc. • KIND (3.9%) owned by Kind LLC Sweet Snacks Market – Company Shares Other 38.5% 21.8% 7.5% 4.8% 3.9% 3.6% 3.5% 3.3% 3.3% 3.2% 3.0% 1.8% 1.8% Snacks Industry Sources: Euromonitor International, Seale & Associates 2021 Fitch Solutions Creative Solutions. Trusted Advice. SNACKS INDUSTRY IN THE UNITED STATES The savory snacks industry in the United States reached an estimated US$57.0 billion in revenue during 2020. Sales of Savory Snacks (USD million) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2018 2019 2020 2021 2022 2023 2024 2025 The sweet snacks industry in the United States reached an estimated US$23.0 billion in revenue during 2020. Sales of Sweet Snacks (USD million) $25,000 $20,000 $15,000 $10,000 $5,000 $0 2018 2019 2020 2021 2022 2023 2024 2025 Snacks Industry Sources: Euromonitor International, Seale & Associates 2021 Fitch Solutions Creative Solutions. Trusted Advice. GLOBAL INDUSTRY – COMPARABLE PUBLIC COMPANIES MID-CAP Annual Average Last Update Market Enterprise Revenue EBITDA EV/EBITDA May 3, 2021 Company Country Cap. Value US$MM Margin EV/ EV/ US$MM US$MM 2019 2020 EBITDA Revenue Alicorp S.A.A. PER $1,554 $2,429 $2,802 11.5% 11.4x 7.7x 7.5x 0.9x B&G Foods, Inc. USA $1,889 $4,206 $1,968 18.1% 10.3x 10.1x 11.3x 2.1x Calbee, Inc. JPN $3,202 $2,889 $2,568 14.3% 10.6x 10.0x 8.3x 1.2x Ezaki Glico Co., Ltd. JPN $2,423 $1,808 $3,334 9.6% 8.9x 8.3x 6.0x 0.6x Flowers Foods, Inc. USA $5,072 $6,088 $4,388 11.2% 12.1x 11.3x 10.4x 1.4x Glanbia plc IRL $4,279 $5,009 $4,670 6.2% 13.4x 10.2x 13.2x 1.1x Gruma, S.A.B. de C.V. MEX $4,294 $5,417 $4,488 16.2% 8.7x 8.4x 7.4x 1.2x Grupo Bimbo, S.A.B. de MEX $9,042 $14,538 $16,436 13.4% 7.4x 6.7x 5.8x 0.9x C.V. Grupo Nutresa S. A. COL $2,646 $3,596 $3,075 11.6% 12.5x 10.5x 9.4x 1.2x Hostess Brands, Inc. USA $2,006 $2,973 $1,017 21.6% 14.1x 14.0x 12.9x 2.9x J & J Snack Foods Corp. USA $3,133 $2,910 $964 5.3% 18.0x 17.7x NR 3.0x M. Dias Branco S.A. BRA $1,657 $1,762 $1,397 13.6% 15.9x 14.2x 9.5x 1.3x Morinaga & Co., Ltd. JPN $1,675 $1,506 $1,960 12.7% 8.6x 6.9x 6.4x 0.8x Nongshim Co., Ltd. KOR $1,458 $1,023 $2,426 9.9% 5.8x 6.2x 4.4x 0.4x ORION Corp. KOR $4,054 $3,953 $2,049 23.1% 10.1x 10.3x 8.6x 2.0x Premier Foods plc GBR $1,152 $1,708 $1,146 16.1% 13.3x 12.0x 8.4x 1.4x Premium Brands Holdings CAN $4,231 $5,016 $3,162 6.7% 16.2x 17.2x 20.4x 1.5x Corporation The Hain Celestial Group, USA $4,097 $4,439 $2,092 10.9% 16.5x 17.3x 18.0x 2.1x Inc.