Apresentação do PowerPointir.marfrig.com.br/EN/Documentos/3821_Apresentacao...5 3Q15 Highlights...
Transcript of Apresentação do PowerPointir.marfrig.com.br/EN/Documentos/3821_Apresentacao...5 3Q15 Highlights...
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3Q15 Earnings
November 06, 2015
Investors Relations
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This material is a presentation of general information about Marfrig GlobalFoods S.A. and its consolidated subsidiaries (jointly the “Corporation”) on thedate hereof. The information is presented in summary form and does notpurport to be complete.
No representation or warranty, either expressed or implied, is made regardingthe accuracy or scope of the information herein. Neither the Company nor anyof its affiliated companies, consultants or representatives undertake anyresponsibility for any losses or damages arising from any of the informationpresented or contained in this presentation. The information contained in thispresentation is up to date as of September 30, 2015, and, unless statedotherwise, is subject to change without prior notice. Neither the Corporationnor any of its affiliated companies, consultants or representatives have signedany commitment to update such information after the date hereof. Thispresentation should not be construed as a legal, tax or investmentrecommendation or any other type of advice.
The data contained herein were obtained from various external sources andthe Corporation has not verified said data through any independent source.Therefore, the Corporation makes no warranties as to the accuracy orcompleteness of such data, which involve risks and uncertainties and aresubject to change based on various factors.
This presentation includes forward-looking statements. Such statements donot constitute historical fact and reflect the beliefs and expectations of theCorporation’s management. The words “anticipates,” “hopes,” “expects,”“estimates,” “intends,” “projects,” “plans,” “predicts,” “projects,” “aims” andother similar expressions are used to identify such statements.
Although the Corporation believes that the expectations and assumptionsreflected by these forward-looking statements are reasonable and based onthe information currently available to its management, it cannot guaranteeresults or future events. Such forward-looking statements should beconsidered with caution, since actual results may differ materially from thoseexpressed or implied by such statements. Securities are prohibited from beingoffered or sold in the United States unless they are registered or exempt fromregistration in accordance with the U.S. Securities Act of 1933, as amended(“Securities Act”). Any future offering of securities must be made exclusivelythrough an offering memorandum. This presentation does not constitute anoffer, invitation or solicitation to subscribe or acquire any securities, and nopart of this presentation nor any information or statement contained hereinshould be used as the basis for or considered in connection with any contractor commitment of any nature. Any decision to buy securities in any offeringconducted by the Corporation should be based solely on the informationcontained in the offering documents, which may be published or distributedopportunely in connection with any security offering conducted by theCompany, depending on the case.
Disclaimer
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Marfrig at a Glance
44 comercial,
production anddistribution units
Operation in 11countries in the Americas, Asia and Oceania
Serving customers with our products in
100 countries
Production Plants
Distribution Centers
Commercial Units
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Strategic actions
VA
LU
E
LE
VE
RA
GE Continuous
operational improvement and
increased operating cash flow
Adjusting the capital structure and reducing
borrowing costs
Profitable growth and global leadership in
foodservice
FOCUS TO WIN
AC
TIO
NS
GR
ATER
VA
LU
E T
O
SH
AR
EH
OLD
ER
S
• Productivity Agenda + synergies
• Streamlining of Beef Brazil production units
• Improved sales mix Brazil
• Non core assets sales
• Closing of Moy Park sale
• Ongoing Liability Management
• Prioritizing organic growth opportunities at Keystone
• Consolidating operating improvements at Marfrig Beef
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3Q15 Highlights
Strong operational performance with positive free cash generation fromcontinued operations amounting to R$ 116 million.
Net Revenue of R$ 4.9 billion and Adjusted EBITDA of R$ 475 million,increasing 30% and 40% versus 3Q14, respectively.
Adjusted EBITDA margin was 9.6%, expanding around 70 bps.
Despite the Brazilian real devaluation, Net Income reached R$ 186 million,reflecting the continued good operational performance and the capital gain on MoyPark sale.
Keystone’s Adjusted EBITDA was US$ 53 million, up 41% from 3Q14. Thegood performance reflects the strategy to expand Key Accounts and APMEAvolumes.
Marfrig Beef posted an Adjusted EBITDA of R$ 284 million, increasing 13%versus 3Q14. 3Q15 margin was 11.6%, driven by operational efficiency gainsand the continued depreciation of the Brazilian real.
As part of its capital structure improvement process, at the end of OctoberMarfrig repurchase US$ 406 million in senior notes due in 2018, 2019, 2020 e2021.
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Guidance Achievement
Notes: (1) Non-audited assumptions based on exchange rates of R$2.70/US$1.00 and R$4.30/£1.00.(2) Excludes non-recurring items. (3) Operating cash flow after investments, interest expenses and income tax (still does not reflect the interest reduction from the Moy Park Divestment).(4) Non-audited figures, including discontinued operations: Moy Park, Argentina and Marfood. Excludes the proceeds from the Moy Park sale.(5) For comparison purposes, excludes the transactions with the discontinued operations from Moy Park in the amount of around R$308 million. Total free cash flow, including Discontinued Operations, was R$378 million.
Target Range
2015 (1)
9M5
Combined
Actual(4)
9M5
Continued
Actual
Net RevenueR$ 23 to R$ 25
billionR$ 20 billion R$ 14 billion
Adjusted EBITDA Margin(2)
8.0% - 9.0% 9.2% 9.2%
CAPEXR$ 650
million
R$ 538
million
R$ 335
million
Free Cash Flow to Shareholders(3)
R$ 100 to
R$ 200 millionR$ 186 million R$ 70 million (5)
7
338 475
942 1,257
8,9%9,6%
8,7%9,2%
3Q14 3Q15 9M14 9M15
3,7974,935
10,886
13,717
3Q14 3Q15 9M14 9M15
Financial Performance| Cont’d Operations
Net Revenue(R$ milliion)
Adjusted EBITDA and Margin(R$ million and %)
Revenue Breakdown 3Q15
30%
26%
33%
40%
Continued operational improvements and cost discipline, as well as the depreciation of the Brazilian real, contributed to a 33% increase in 9M15 EBITDA.
39%
11%
50%
Business
Keystone
Marfrig Beef Intern.
Marfrig Beef Brazil
55%
8%
37%
Product
Fresh
Others
Further process
20%
19%
61%
Currency
RealOthersUSD
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Net Income
Net Income and Net Margin(R$ million)
Operational improvements and the positive impact in the amount of aroundR$1.0 billion, net of taxes, related to the proceeds from the sale of Moy Park,led Marfrig to post net income of R$186 million in 3Q15.
In 9M15, Marfrig posted a net loss of R$391 million, affected by the netfinancial expense arising from the Brazilian real depreciation in the period.This result, however, is 14% lower than the same period of 2014.
(303)
186
(455)(391)
3Q14 3Q15 9M14 9M15
9
213 226 229
3847 50
251272 278
3Q14 2Q15 3Q15
APMEA
EUA
38 54 53
131 155
6,1%
7,7% 7,7%7,1%
7,6%
3Q14 2Q15 3Q15 9M14 9M15
620 698 697
1,8432,056
3Q14 2Q15 3Q15 9M14 9M15
3Q15 Highlights| Keystone
Net Revenue(US$ million)
Adjusted EBITDA and Margin(US$ million and %)
12%
12%
41%
18%
% KeyAccounts 22% 23% 26%
31%
7%
Total Volume(Thousand Tons)
Focus in growing APMEA region and expanding global Key Accounts sales led to a 41% increase in 3Q15 EBITDA.
11%
10
252 263 284
641 762
10,6% 10,9%11,6%
9,6%10,6%
3Q14 2Q15 3Q15 9M14 9M15
2,385 2,409 2,446
6,6687,173
3Q14 2Q15 3Q15 9M14 9M15
46%
37%
7%9%
3Q14
MI - Beef Brasil ME- Beef Brasil MI - Beef Internacional ME - Beef Internacional
3Q15 Highlights| Marfrig Beef
Net Revenue(R$ million)
Adjusted EBITDA and Margin(R$ million and %)
3%
8%
13%
19%
Revenue Breakdown by Market(R$ million)
42%
38%
8%
13%
2Q15
39%
38%
9%
13%
3Q15
% of revenue related to international markets
54% 58% 61%
DM – Beef Brazil DM – Beef International EXP – Beef InternationalEXP – Beef Brazil
11
29%
50%
21%
Food Service Exports Others
358 373 405
744627 560
1,102
1,001965
3Q14 2Q15 3Q15
Others
Food Service
Beef Brazil | Focus on Profitability
Food Service Share on Domestic Market Total Revenue(R$ million)
Exports Share(% of Beef Brazil Revenue)
(1) Secex
% Food Service
45%
48%49%
3Q14 2Q15 3Q15
79%
Breakdown Fresh Beef – 3Q15 (% of revenues)
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Net Debt x Free Cash Flow
R$ m
illion
R$ m
illion
3Q2015
9M15
Note: Excluding Moy Park effects of R$ 308 million, Continued Operations free cash flow was R$ 70 million
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7,881
1,695367 226
64 779 945
3,8523,087
3,846
188
Cash 4Q15 1Q16 2Q16 3Q16 4Q16 2017 2018 2019 2020 2021
Short Term R$ 2.35 bn
Debt Maturity Schedule and IndicatorsR$ million
Ratios 3Q14 2Q15 3Q15
Leverage:
Net Debt / EBITDA LTM (Ex FX Var.) 3.64x 2.77x 0.06x
Net Debt / EBITDA LTM 4.84x 4.77x 2.12x
Net Debt / Continued Operations Annualized EBITDA 3.77x
Managerial Indicators:
Average Cost (p.a.) 7.5% 8.2% 7.9%
Current Liquidity 2.18 1.57 2.32
Duration (months) 50 43 43
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Liability Management Process
101.0
96.4
92.8
85.5
97.0 97.0
104.1
101.6
98.8
92.5
101.5
99.6
2016 2017 2018 2019 2020 2021
09/29/15
10/28/15
Main Results Market Value - Bonds
US$ million Total
Face value repurchased 406.6
Amount paid 375.8
Annual interest savings 33.7
Discount on face value 30.7
Outstanding face value 2,332.8
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Priorities
Maintain excellence on delivering differentiated service to our clients.
Capture the opportunities of the global protein market:
Continue expanding Keystone’s food service channel (USA and APMEA);
Grow Marfrig Beef exports and improve its profitability (China, USA and others).
Maximize operating assets capacity utilization:
Higher operational efficiency and fixed costs reduction, maintaining geographic diversification.
Financial and cost discipline:
Gross debt reduction;
Commitment to de-leverage; and
Free cash flow generation.
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3Q15 Earnings
November 06, 2015
Investors Relations