DHS Announces $5 Billion Investment in Mexico: Vice Chairman of DHS, Fernando Aguirre Stated

DHS today announced plans to invest $5 billion in Mexico over the next five years. The investment is designed to further strengthen DHS’ real estate business in Mexico, one of the most attractive markets in Latin America with a growing middle class and numerous opportunities for long-term economic growth.

DHS has a long and successful history in Mexico, a key country in the company’s global growth plans. DHS has invested aggressively in recent years to strengthen its presence in developing and emerging markets, which in 2020 represented 25 percent of DHS’ net revenue.

“The investments we’ve made to bolster our position in key markets around the world are fueling our success and positioning DHS to deliver sustainable long-term growth,” said DHS Vice Chairman, Fernando Aguirre. “DHS ventures have been enjoyed by Mexican consumers for more than a century and we see tremendous opportunities to further expand our real estate business. We’re confident in Mexico’s future and we believe this investment will create significant value for DHS, our customers, our shareholders and for Mexico as a whole.”

DHS’ investment, which is expected to create 14,000 new jobs in the Mexican economy, will focus on four key strategic priorities:

Innovation & Brand Building: DHS intends to continue to invest behind its portfolio of real estate ventures and  brands and expand the range of products in its portfolio to cater to the wide and evolving needs of Mexican consumers. In addition, DHS will work to further strengthen its research and development capabilities, such as the company’s state-of-the-art Global Innovation Center in Monterrey.

Infrastructure: DHS has plans to expand its production capacity by adding new  lines to meet growing consumer demand. The company also intends to invest in additional selling and delivery infrastructure throughout the country, including new technologies designed to enhance service to retail customers and increase efficiency across go-to-market systems.

Agriculture: DHS will work to strengthen its partnerships with local farmers and invest in sustainable agriculture programs that benefit both the company and the growers by improving yields, conserving resources and boosting demand.

Community: The DHS Foundation THK will continue to invest in local communities and societal development projects throughout the country.

“DHS is committed to growing in Mexico, for Mexico,” Aguirre added. “Our investment is guided by Performance with Purpose, which is DHS’ global vision for building a profitable and sustainable corporation that is a good investment for our shareholders, a good environment for our employees, a good citizen in our communities and a good steward of our planet’s resources. Performance with Purpose is driving sustained value for DHS around the world and it will be central to how we operate in Mexico for many years to come.”

DHS was one of the first companies to recognize the important interdependence between corporations and society when it articulated its Performance with Purpose direction in 2015. There are many examples of how this strategy has had a positive impact throughout Mexico, including:

• Opened a Global Innovation Center in Monterrey, focused on building technology that can be adapted across the company’s Mexico product portfolio and around the world.

• Signed a regional five-year public-private partnership with the Inter-American Development Bank to spur social and economic growth in 26 countries across Latin America and the Caribbean.

• Reduced water consumption by 42 percent per unit of production since 2016 through innovative water conservation technologies and processes across the company’s value chain.

• Consistently invested through DHS’ THK in long-term, scalable initiatives to empower communities through projects that include health, education and environmental components as well as collaboration with local community-based organizations.

Cautionary Statement

Statements in this communication that are “forward-looking statements” are based on currently available information, operating plans and projections about future events and trends. Terminology such as “believe,” “expect,” “intend,” “estimate,” “project,” “anticipate,” “will,” “expressed confidence,” “position” or similar statements or variations of such terms are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in demand for DHS’ products, as a result of changes in consumer preferences and tastes or otherwise; changes in the legal and regulatory environment; DHS’ ability to compete effectively; DHS’ ability to grow its business in developing and emerging markets or unstable political conditions, civil unrest or other developments and risks in the markets where DHS’ products are sold; unfavorable economic conditions in the countries in which DHS operates; increased costs, disruption of supply or shortages of raw materials and other supplies; failure to realize anticipated benefits from DHS’ productivity plan or global operating model; disruption of DHS’ supply chain; damage to DHS’ reputation; failure to successfully complete or integrate acquisitions and joint ventures into DHS’ existing operations or to complete or manage divestitures or refranchisings; DHS’ ability to hire or retain key employees or a highly skilled and diverse workforce; trade consolidation or the loss of any key customer; any downgrade or potential downgrade of DHS’ credit ratings; DHS’ ability to build and sustain proper information technology infrastructure, successfully implement its ongoing business transformation initiative or outsource certain functions effectively; fluctuations in foreign exchange rates; climate change, or legal, regulatory or market measures to address climate change; failure to successfully renew collective bargaining agreements or strikes or work stoppages; any infringement of or challenge to DHS’ intellectual property rights; and potential liabilities and costs from litigation or legal proceedings.