2024

Special Award for
TPM Achievement
Sigma Alimentos Plant Eugenia (Butters and Margarines)

SIGMA ALIMENTOS, EUGENIA PLANT
1/22/2024

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SPECIAL AWARD FOR TPM ACHIEVEMENTSPECIAL AWARD FOR TPM ACHIEVEMENTCOMPANY: SIGMA ALIMENTOS PLANT EUGENIA

PLACE: EL SALTO, JALISCO, MÉXICODATE: JANUARY 2024

SIGMA ALIMENTOS, PLANT EUGENIA
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SPECIAL AWARD FOR TPM ACHIEVEMENT

1. - PERFIL DE LA EMPRESA
Alfa is a globally recognized company that manages a diverse portfolio of businesses:
Alpek and Sigma.

Petrochemicals

Food Products#1 in the production of PTA, PET, rPET andA leading global food company that produces,markets and distributes refrigerated meats,cured meats, cheeses, yoghurts and otherrefrigerated, frozen and plant-based foods
through recognized brands in Mexico, Europe,
the USA and Latin America.

EPS in the Americas, and of polypropylene inMexico. It operates companies in two businesssegments: Polyester, Plastics and Chemicals,in the Americas, Europe and the Middle East.

It has 103 plants in 25 countries in the Americas, Asia, Europe and more than 57,700employees.

SIGMA ALIMENTOS, PLANT EUGENIA
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SPECIAL AWARD FOR TPM ACHIEVEMENT

In 1980 the ALFA group entered the food market by acquiring a group of companies andformed Sigma Alimentos.
59.9% of the ALFA Group's total EBITDA is contributed by Sigma, a leader recognized
for the quality of its products worldwide.
Revenues 2023

EBITDA 2023

US $12,504 Billion

US $1,109 Billion

51%

40.1%

49%

59.9%

Sigma Alimentos has the firm conviction to expand its portfolio of meat, dairy andprepared food products to offer the favorite foods to every community, not only throughorganic growth but also through a series of mergers and acquisitions that have allowed itsince 1997 to incorporate recognized and successful brands to its product portfolio.

SIGMA ALIMENTOS, PLANT EUGENIA
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SPECIAL AWARD FOR TPM ACHIEVEMENT

Sigma Alimentos has 64 plants and 179 distribution centers in 17 countries. It has thelargest refrigerated distribution network in Latin America, serving 680K+ points of sale,with a solid portfolio of leading brands, some of them with more than 80 years of tradition.

Sigma Eugenia Plant
Planta Eugenia was founded in 1938 as a family business, from that moment on, thebrand began to position itself in the market, achieving consumer preference. In 1994,operations began in the current facilities located in El Salto, Jalisco, in western Mexico,
and in 2005 we joined Sigma Alimentos, during the process of acquiring the brands of theNew Zealand Milk Mexico group.

Eugenia Plant

SIGMA ALIMENTOS, PLANT EUGENIA
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5SPECIAL AWARD FOR TPM ACHIEVEMENTThe Eugenia Plant is strategic because it is the only plant that manufactures margarinesand butters for Sigma in Mexico. Currently, total production is distributed nationally withan average monthly volume of 1,568 tons, of which 78% corresponds to margarines and22% to butters.

28 SKU

17 SKU

The work force of the Eugenia Plant is made up of 152 employees distributed in 3 shifts
operating 6 days a week.

SIGMA ALIMENTOS, PLANT EUGENIA
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6SPECIAL AWARD FOR TPM ACHIEVEMENT

2.-MILESTONE ON THE JOURNEY OF MANUFACTURING EXCELLENCE
Eugenia Plant started the implementation of the TPM methodology in 2011 under theguidance and advice of the JMAC consultancy and currently with the JES consultancy.
On 14 May 2012, a Kickoff event was held for the start-up of TPM activities, starting with
5 pilot autonomous maintenance teams and with the participation of management andkey personnel, to understand the methodology through their own experience.
After 5 years of learning the methodology, in 2017 we obtained the Excellence Award
category A, and later in 2019 we renewed our commitment to maintaining and improving
our results, thus obtaining the Consistency Award for Excellence TPM category A withthe collaboration and enthusiasm of all the staff working in Eugenia Plant.

In 2020, faced with the threat of the global pandemic caused by COVID-19, it was thanks
to the strong and systematic organization achieved with TPM that we were able to avoid
health risks for our employees and continue to supply our products to supermarkets,
ensuring food availability in those difficult times. With the preventive approach and thesystematic reduction of losses, we prevented price increases and shortages of some raw
materials from affecting the continuity of our operations. And now, in 2022 we are again
eligible for the JIPM Special Category Award.

SIGMA ALIMENTOS, PLANT EUGENIA
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SPECIAL AWARD FOR TPM ACHIEVEMENT

3.-BENEFITS ACHIEVED
Through the knowledge and experience of TPM applied over the years, we have beenable to capitalize on benefits we never thought possible. The change in culture isnoticeable and this has allowed us to get out of our comfort zone and challenge ourselvesto change our work, training, and asset management schemes in our plant.
Staff training in the different pillars of TPM has helped us develop skills to detect
anomalies in equipment and processes, be more analytical, make better decisions andmigrate from a corrective to a preventive system, being aware of the impact of losses in
the processes. All this has helped us to reduce losses, be more productive, improve thework environment and implement improvement projects to achieve operationalexcellence.
We increased our productivity by 33.7%.

We extend the useful life of our equipment, we currently have 4 machines in ourprocess that are already depreciated, fully renovated, and produce without
increasing the cost of our products.

30 devices have been developed to automate and facilitate the operation of theequipment, which translates into savings of more than USD $202,025.00.

4. - KEY OF OUR MANUFACTURING EXCELLENCE
A key factor was the alignment of efforts across the corporate strategic direction and ourplant's competitive strategy, cascading objectives to define priority actions throughout ourorganization in order to maximize results. We are focused on activities that lead us to bea special plant, generating greater profitability from our products and listening to the voiceof the consumer to develop new products and/or improve current ones based on theneeds of our customers, consumers and buyers.
We expanded our reach both internally and externally by involving suppliers to ourconsumers, now the adoption of the TPM philosophy not only permeates within our plant,
but we are also ambassadors of improvement by taking the system throughout the supply
chain, thus generating a competitive advantage to achieve the greatest utility and benefit
for our consumers.

SIGMA ALIMENTOS, PLANT EUGENIAConfidential Information

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5.- ACHIEVEMENT RECORD
2023 TPM Award -Achievement Sheet
SIGMA ALIMENTOS LACTEOS SA DE CV, EUGENIA
PLANT

Company & Plant Name

Category

Index(Calculation Formula)BM
TPM Started (orlast timeawarded)

Actual Status

Target

2019

2023

2023

Cases/ year

13

10

Cases/ year36

90UnitEnter the year →SS

Number of work-related
accidents requiring days offwork
Number of work-related
accidents not requiring days offwork

P

Productivity for main products

Parts/Operatorhours

54,49272,85372,500POEE(or Overall Plant Efficiency)

%

88.2

89.75

91

P

Performance Rate%

96.8

98.71

98.5

P

Quality Products Rate%

99.77

99.972

99.96

P

Number of Breakdowns

Breakdowns/year

320PMTBF

Hour

58

623.7624

P

MTTR

Hour

1.8

0.3

0

Q

Number of Customer
Complaints

Number/year

100

Q

In-line defect rate (scrap)

%

0.02

0.01

0.01

Q

In-line defect rate (Rework)

%

0.64

0.26

0.4

C

Cost Index

Cost/Unit
Cost/Kilogram

4.55

4.5

4.5

DProduction Lead timeDays

54.5

30.3

30.3

DDelivery Performance%99.29

99.8

99.8

S

Safety Index

Accidents per
1,000,000
operator hours

029.138

0M

Number of Employee
Suggestions

Number/year

3,032

6,057

6,218

SIGMA ALIMENTOS, PLANT EUGENIA
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