Apresentação do PowerPointir.marfrig.com.br/EN/Documentos/3593_Institutional... · 1T13 2T13 3T13...
Transcript of Apresentação do PowerPointir.marfrig.com.br/EN/Documentos/3593_Institutional... · 1T13 2T13 3T13...
1Focus to Win
INSTITUTIONAL
PRESENTATION 4Q13 Results
FOCUS TO WIN
2Focus to Win
STRATEGIC
OVERVIEW
3Focus to Win
Who we are | Marfrig at a Glance
Focus
Marfrig is one of the largest and most diversified
global food companies
In n
um
be
rs... Presence in
16 countries
4 continents
110
Products in
more than
countries.
Strong brand
recognition
More than
employees
78With
CustomerProfitable
Growth
Positive
Free Cash
Flow
Innovation
45,000 Commercial
production and
distribution units
4Focus to Win
2013 breakdownby business
2013 breakdownby currency
2013 breakdownby product
Who we are | Marfrig at a glance
• International food company with strong focus on the food service channel
• Presence in both emerging markets (especially Asia) and more mature economies (USA and Europe)
• Highly diversified product portfolio (poultry, fish, lamb and beef)
• Food service revenue of R$1.5bn in Brazil alone, one of the country’s largest players and one of the world’s largest suppliers to McD
• 78 processing plants, sales offices and DCs around the world
• Despite the importance of our beef cuts business, processed meats account for approximately 50% of our portfolio
Revenue of R$18.8bn and operations well diversified across products and regions
1
2
3
1
2
3
46%
29%
25%
MARFRIG BEEFKEYSTONEMOY PARK
43%
22%
22%
13%
USDEURO/POUNDREALOTHER
50%
40%
10%
FURTHER PROCESSEDFRESHOTHER
16.5
18.8
2012 2013E
+ 14%
Net Revenue(R$ bn)
2012 2013
5Focus to Win
Who we are | Focus and Positioning
One of the world’s
largest providers of
processed food to
major restaurant
chains
FoodService
4.9 5.4
2012 2013
+10%
One of the largest
poultry-based
processed products
suppliers in the UK
and Europe
Retail and Food Service
World’s 3rd largest
beef producer and
one of South
America’s largest
lamb suppliers
Diversified
7.6
2012 2013
+14%
DiversifiedAnimal
Protein Player
Strong focuson Food Service
Positive growth outlook across all
business units
High Probability
Marfrig Group
16.5 18.8
2012 2013
+14%
4.0 4.7
2012 2013
+18%
Revenues
(R$ billion)
Growth
Outlook
Potential
Margin
Expansion
Main Sales
Channels
Business
Description
5
8.7
6Focus to Win
Non-financial Highlights
Corporate Governance: conclusion of
the transition process to separate the
roles of Chief Executive Officer and
Chairman of the Board of Directors.
Animal Welfare: Marfrig was recently
elected one the world’s best companies
in animal welfare (source: Business
Benchmark on Farm Animal Welfare,
2013), which reflects our firm
commitment to sustainability in our
business chain.
7Focus to Win
MOY PARK
STRATEGY AND
OBJECTIVES
8Focus to Win
LegendSlaughter
Processed food
Other
Moy Park | Business Unit Overview
25% of Marfrig Group sales
One of Europe’s leading poultry companies
Top 20 UK food business and leader in
convenience products
Northern Ireland’s largest company
15 production sites in Northern Ireland,
England, France and Holland
70 years of history
Employer of 12,000 people
HighlightsFootprint
Diversified protein based food company with
presence in poultry, turkey, beef and pork
9Focus to Win
Moy Park | Business Unit Overview
Production Structure
Products
• Poultry, savory, bakery,
pork, agriculture, turkey
and sliced corned beef
40%51%
9%
FreshProcessed Poultry/ BeefOthers (Agri + Meat Free)
Brand Positioning
Premium
Mainstream
Daily
Use
Sales Channels
• Vertical poultry
integration
11 further processing
plants
4 slaughter plants
3 feed plants
7 hatcheries
750 farms
• 235 million chicken heads
per year
• 1.5 million turkey heads
per year
• 0.25 million tons of
processed food per year
2013(%)
• Strong presence in retail
and food service:
2012
61%28%
11%
Retail
Fast food / Food Service
Other
2013(%)
10Focus to Win
Continue expansion of
multi protein retail sales
in markets across UK,
Ireland and
Continental Europe
2
Boost presence in
the food service
distribution channel
in the UK, Ireland
and Continental
Europe
3
Moy Park | Key Strategic Goals
1
Grow core UK &
Ireland retail fresh
poultry and
convenience food
sales ahead of the
market
4Become Marfrig
global distribution
platform in Europe
11Focus to Win
Moy Park | Financial Projections
%
CAGR %
2012-18Revenue
Growth(2)
EBITDA
Margin
8.5 10.0
7.5 8.5
2018 Target Range
17.9(2013/2012)
6.5(3)
2013(1)
Note:
(1) Growth and margin for full year 2013
(2) Revenues stated in R$, FX rate considered of R$/£=3.80 in 2014 and flat onwards, no projected inflation
(3) Does not consider non-recurring items
12Focus to Win
KEYSTONE
STRATEGY AND
OBJECTIVES
13Focus to Win
Highlights
29% of Marfrig Group sales
One of the world’s leading suppliers
for the food service industry, QSR players
Presence in the US, Asia and Oceania
Leading protein supplier to McDonalds
(60% of Keystone sales in 2013 )
Employer of over 11,500 people
Keystone | Business Unit Overview
Footprint
Diversified food company, focused on processed meat
products and food service with footprint in US and APMEA
Legend
Slaughter
Processed food
Other
14Focus to Win
Keystone | Business Unit Overview
Geographic Presence
24%
76%
APMEA
US
Geographic Coverage
Production Infrastructure
Sales ChannelsProductsProduction Structure
ProductsSales
Channels
• 13 further processing
plants
• 3 poultry vertical
integration complexes
• 1 primary processing
plant + 1 grain operation
• 1 research &
development facility
• 19 pullet farms + 61
breeder farms + 296
broiler farms
• Focused on food
service channel and
developing retail
channels
• Leading supplier to
McDonald´s
USA: #1 beef, #2
poultry and #2 fish
APMEA: #2 protein
supplier in China, sole
protein supplier to
Malaysia, Thailand
and Korea; #2 in
Australia
• Poultry, beef and fish
processed products
76%
22%2%
Poultry
Beef
Fish
2013(%)
2013(%)
15Focus to Win
Poultry is the main
focus for growth1Key Accounts
growth2
Geographic
expansion to secure
additional processing
capabilities
3
Grow and diversify
beef business4
Keystone | Key Strategic Goals
16Focus to Win
Keystone|Financial Projections
CAGR %
2012-18Revenue
Growth(2)
EBITDA
Margin
7.5 9.0
8.0 9.0
2018 Target range
10.0(2013/2012)
6.4(3)
2013(1)
%
Note:
(1) Growth and margin for full year 2013
(2) Revenues stated in R$, FX rate considered of R$/U$=2.40 in 2014 and flat onwards, no projected inflation
(3) Does not consider non-recurring items
17Focus to Win
MARFRIG BEEF
STRATEGY AND
OBJECTIVES
18Focus to Win
Marfrig Beef | Business Unit Overview
Highlights
46% of Marfrig Group sales
(c.35% in Brazil)
Focus on beef and lamb
Products sold in the local and
international markets
31 production sites in Brazil, Argentina,
Uruguay and Chile
2nd largest beef operation in Brazil
Leader in Uruguay slaughter
#1 Chilean meat importer
+21,000 employees
Legend:
Slaughter
Processed food
Other
19Focus to Win
Marfrig Beef| Business Unit Overview
Beef and lamb, fresh and
processed
Sale of potatoes,
vegetables, fish and other
imported foods
Uruguay: 55% export, 45%
domestic
Argentina: 22% export, 78%
domestic
Chile: biggest supplier of
local catering companies
39%
38%
23%
20 plants in Brazil
(16 slaughtering,
4 processing)
3 plants in Argentina
(3 slaughtering)
5 plants in Uruguay
(slaughtering and
processing)
2 plants in Chile
(slaughtering)
Production Structure
ProductsBrand
PositioningSales
Channels
Super
Premium
Premium
Daily
Use
Processed
Beef
Export
Domestic Market
Food Service
In Natura
Processed
Lamb, leather and other
65%17%
18%
2013(% Brazil)
2013(%)
20Focus to Win
Improve cash
conversion – drive
efficiencies and asset
optimization
1Top line profitable
growth – focus on
strategic distribution
channels
2
Leverage our beef
sourcing potential in
South America to
increase sales to US,
Europe and Asia
3
Marfrig Beef|Key Strategic Goals
Grow in the
value added
product segment4
21Focus to Win
Marfrig Beef |Financial Projections
%
CAGR %
2012-18
Revenue
Growth(2)
EBITDA
Margin
7.0 9.0
8.0 10.0
Faixa Alvo 2018
X.X%(2013E/2012A)
X.X
2013E
13.5(2013/2012)
9.2(3)
2013(1)
7.0 9.0
8.0 10.0
2018 Target Range
Note:
(1) Growth and margin for full year 2013
(2) Revenues stated in R$, FX rate considered of R$/U$=2.40 in 2014 and flat onwards, no projected inflation
(3) Does not consider gains from asset sales (Zenda) and non-recurring items
22Focus to Win
4Q13
FINANCIAL
PERFORMANCE
23Focus to Win
4,3754,455
4,944 4,978
1Q13 2Q13 3Q13 4Q13
Keystone: - 6.2%
Moy Park: + 9.1%
Marfrig Beef: + 0.7%
4Q13 breakdownby business
4Q13 breakdownby currency
4Q13 breakdownby product
Net Revenue(R$ million)
Financial Performance|Consolidated
+ 1%
Growth vs. 3Q13:
45%
28%
27%
MARFRIG BEEF
KEYSTONE
MOY PARK
44%
23%
21%
12%
USDEURO/POUNDREALOTHER
49%
42%
9%
FURTHER PROCESSEDFRESHOTHER
24Focus to Win
571
493
586
660
13.1%11.1% 11.9% 13.3%
1Q13 2Q13 3Q13 4Q13
Financial Performance | Consolidated
Breakdown by Business(%)
Gross Profit & Gross Margin(R$ million and %)
3Q13 4Q13
Gross Profit growth at Marfrig Beef of 12.8% in relation to 3Q13, driven by higher sales and prices in
the food service segment, growth in Brazilian exports of 10% and significant improvement in the
results of the Uruguay operations.
Gross Profit growth at Keystone of 3.4%, which benefitted from lower feed (grain) prices in the
vertically integrated poultry operations and from the lower cost of boneless chicken (breast).
Gross Profit growth at Moy Park of 19.0%, explained by higher turkey sales, a better product mix,
stronger sales and lower production costs.
+ 13%
16%
21%
63%
15%
22%
63%
KEYSTONE
MOY PARK
MARFRIG BEEF
25Focus to Win
SG&A expenses as a ratio of net revenue increased 60 bps from 3Q13.
Marfrig Beef increased 110 bps due to higher expenses with logistics, exports and marketing.
Keystone increased its G&A expenses by 30 bps due to the high concentration of travel andseasonal events (e.g., regional meetings) in the period.
Moy Park reduced its G&A expenses by 30 bps due to the higher dilution of expenses
resulting from its stronger sales in the period.
Breakdown by Business(%)
SG&A & SG&A/Net Revenue(R$ million and %)
3Q13 4Q13
12%
28%
60%13%
29%
58%
KEYSTONE
MOY PARK
MARFRIG BEEF
Financial Performance | Consolidated
322 331 342373
7.4% 7.4%
6.9%
7.5%
1Q13 2Q13 3Q13 4Q13
+ 9%
26Focus to Win
Breakdown by Business(%)
Adjusted EBITDA & Margin(R$ million and %)
3Q13 4Q13
Expansion of 90 bps in Adjusted EBITDA Margin from 3Q13:
100 bps increase at Marfrig Beef to10.0%
50 bps increase at Keystone to 6.9%
120 bps increase at Moy Park to 7.6%
+ 13%25%
21%
54%22%
24%
54%
KEYSTONE
MOY PARK
MARFRIG BEEF
Financial Performance | Consolidated
369
280
375422
8.4%
6.3%
7.6%8.5%
1Q13 2Q13 3Q13 4Q13
27Focus to Win
(60)
(479)
(194)(83)
1T13 2T13 3T13 4T13
Net Income(R$ million)
-57%
Financial Results(R$ million)
Income/Loss before Taxes
Income Tax & Social
Contribution
Net Income (Loss)
1Q13 (53) (7) (60)
2Q13 (714) 235 (479)
3Q13 (253) 59 (194)
4Q13 (158) 74 (83)
Financial Performance | Consolidated
1Q13 2Q13 3Q13 4Q13
28Focus to Win
Liquidity & Debt|Consolidated
Debt(R$ million)
(*) Current Liquidity = Current Assets / Current Liabilities
Indicators 3Q13 4Q13
Gross Debt/ EBITDA LTM 3.84x 3.77x
Net Debt/ EBITDA LTM 2.8x 3.0 x
Net Debt/ EBITDA Aj.
Annualized 4.40x 4.22x
Net Debt/ Total Assets 0.4x 0.4x
Cash and Eq. / Short Term
Debt1.60x 1.61x
Current Liquidity (*) 2.0 2.0
Duration (months) 51 54
Average Cost(p.y) 7.8% 8.0%
Short Term (%) 16,4% 12.6%
Long Term (%) 83.6% 87.4%
BRL (%) 7.0% 4.5%
Other Currencies(%) 93.0% 95.5%
3,6412,169 1,492 1,123
7,127
9,357
8,9287,635 7,817
1,813
12,998
11,097
9,127 8,940
Gross Debt1Q13
Gross Debt2Q13
Gross Debt3Q13
Gross Debt4Q13
Cash andEquivalents
Net Debt4Q13
Long Term
Short Term
29Focus to Win
1,813
503
125 155340
685 582
1,578
2,473
9
1.597
893
Caixa 1T14 2T14 3T14 4T14 2015 2016 2017 2018 2019 2020 2021
Liquidity & Debt|Consolidated
Maturity Schedule – 4Q13(R$ million)
Short Term: R$ 1.1 bn
Maturity Schedule – 3Q13(R$ million)
Cash 1Q14 2Q14 3Q14 4Q14 2015 2016 2017 2018 2019 2020 2021
2,470
1,052
304 45 92 370 524 457
1,503
2,409
8
1.516
847
Caixa 4T13 1T14 2T14 3T14 4T14 2015 2016 2017 2018 2019 2020 2021Cash 4Q13 1Q14 2Q14 3Q14 4Q14 2015 2016 2017 2018 2019 2020 2021
Short Term: R$ 1.5 bn
30Focus to Win
Positive Operating Cash Flow (before Capex and Interest) of R$368 million in 4Q13,
compared to R$236 million in 3Q13.
(202)
(427)
236368
1T13 2T13 3T13 4T13
Cash Flow | Consolidated
Operational Cash Flow before CAPEX & Interest
(R$ million)
1Q13 2Q13 3Q13 4Q13
+ 56%
31Focus to Win
(83)
400
(101)
264
(102) (42)
32 368
Net Income/Loss
Not affectingcash items
Trade accountreceivables
Inventories Trade accountpayables
Other Taxes Op. Cash Flowbefore
Investiments
Financial Performance | Consolidated
Cash Flow Bridge – 4Q13 (R$ million)
Improvement in working capital management due to lower inventories, triggering a R$62
million reduction in working capital needs in 4Q13.
Monetization of R$32 million in tax payments in the quarter.
Improvement from prior quarters in the quality of adjusted EBITDA due to better
management of taxes and the cash conversion cycle.
32Focus to Win
1,038
1,132
1,222
1,332
1T13 2T13 3T13 4T13
61 66
78
1015.9% 5.9%
6.4%
7.6%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
50
60
70
80
90
100
110
120
1T13 2T13 3T13 4T13
Sales revenue growth driven by higher turkey sales in the United Kingdom, Ireland and
Continental Europe, explained by festive season sales, the better product mix in both the
domestic and export markets and stronger sales in both the retail and food service
channels.
Improvement of 30% in Adjusted EBITDA and 120 bps in margin in relation to 3Q13.
Reduction in SG&A expenses due to the higher dilution of expenses resulting from the
stronger sales in the period.
+ 9%
+ 30%
Moy Park 4Q13 Highlights
Net Revenue(R$ million)
Adjusted EBITDA & Margin (R$ million and %)
1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13
33Focus to Win
82
68
95 96
6.8%5.3%
6.4% 6.9%
1T13 2T13 3T13 4T13
1,2131,286
1,4831,390
1T13 2T13 3T13 4T13
Net revenue down 6% from 3Q13, mainly due to the lower sales price of chicken breast in the
United States.
In Asia, Keystone benefited from promotions for the festive season and school holidays, the
gradual recovery in China and higher exports.
Gross Margin benefitted from lower feed (grain) prices in the vertically integrated poultry
operations and from the lower cost of boneless chicken (breast) in the United States.
Adjusted EBITDA in 4Q13 grew to R$95.5 million, from R$95.4 million in 3Q13, with margin of 6.9%,
50 bps higher than in 3Q13.
- 6%
+ 1%
Keystone 4Q13 Highlights
Net Revenue(R$ million)
Adjusted EBITDA & Margin (R$ million and %)
1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13
34Focus to Win
2,1242,038
2,240 2,256
1T13 2T13 3T13 4T13
Modest net revenue growth, explained by the lower production and sales in Argentina,
which were partially offset by higher exports from Brazil and Uruguay and by the good
performance of Brazil's domestic market, with higher prices and growth in food service
sales.
Improvement in the Uruguay business, demonstrating a reversal in the adverse scenario of
the first half of 2013.
Adjusted EBITDA growth of 12% with margin expansion of 100 bps from 3Q13.
+ 1%
225
145
202226
10.6%
7.1%
9.0%10.0%
1T13 2T13 3T13 4T13
+ 12%
Marfrig Beef 4Q13 Highlights
Net Revenue(R$ million)
Adjusted EBITDA & Margin (R$ million and %)
1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13
35Focus to Win
CONSOLIDATED
GUIDANCE
36Focus to Win
EBITDA
Margin
Note:
(1) Revenues stated in R$, FX rate considered of R$/U$=2.40 and R$/₤=3.80 in 2014 and flat onwards, no projected inflation
(2) Operating cash flow after capex, working capital changes, interest expenses and income tax
Revenues(1) 21.0 – 23.0
2014Target Range
7.5 – 9.5(CAGR% 2012-18)
7.5 – 8.5 8.5 – 9.5
2018Target Range
Free Cash
Flow to
Shareholders (2)
600 –
%
R$ billion
R$ millionCAPEX
Breakeven
to 100600 – 850 R$ million
Consolidated Financial Projections
37Focus to Win
FINAL REMARKS
38Focus to Win
Final Remarks| Marfrig group
We are pleased to end 2013 on a strong quarter, which is the product of a simpler
and more focused Marfrig.
We remain fully committed to creating value for our shareholders. Part of this
value must be performance-based and part must come from our continued
focus on strengthening our capital structure.
Improving performance coupled with possible further debt/interest expense
reduction, should trigger, over time, a significant revaluation on the equity side.
All businesses continue to perform strongly. We will continue to pay undivided
attention to deliver steady performance.
Beef demand internationally should not abate. China might represent a
significant force in terms of beef and lamb demand in the years to come.
Not inconceivable to see the US opening to Brazil´s beef in the coming years,
adding additional possibilities to our existing platform in South America.
39Focus to Win
Final Remarks| Marfrig group
Our Asia operation is well positioned to capture significant growth in the near
future. Strong and experienced local management– a clear distinction from most
multinationals operating in the region.
If we are able to deliver the upper range of the 2014 guidance, both in terms of
revenue and margin, our leverage could drop to mid 3´s coupled with free cash
flow, potentially unleashing robust value to the equity side already in 2014.
We believe we are a value story, with management team aligned in creating
value to our shareholders.
Last, but not least, we are exploring the possibility of taking our subsidiaries
abroad public with the following objectives:
Maintaining a comfortable majority control at both companies;
Injecting additional capital to support more rapid organic growth in both
Europe and Asia; and
Further reducing the group's leverage.
Important to mention we are still in an exploratory phase.
40Focus to Win
Disclaimer
This material is a presentation of general information about MarfrigGlobal Foods S.A. and its consolidated subsidiaries (jointly the“Corporation”) on the date hereof. The information is presented insummary form and does not purport to be complete.
No representation or warranty, either expressed or implied, ismade regarding the accuracy or scope of the information herein.Neither the Corporation nor any of its affiliated companies,consultants or representatives undertake any responsibility for anylosses or damages arising from any of the information presented orcontained in this presentation. The information contained in thispresentation is up to date as of December 31, 2013, and, unlessstated otherwise, is subject to change without prior notice. Neitherthe Corporation nor any of its affiliated companies, consultants orrepresentatives have signed any commitment to update suchinformation after the date hereof. This presentation should not beconstrued as a legal, tax or investment recommendation or anyother type of advice.
Some data contained herein were obtained from various externalsources and the Corporation has not verified said data throughany independent source. Therefore, the Corporation makes nowarranties as to the accuracy or completeness of such data,which involve risks and uncertainties and are subject to changebased on various factors.
This presentation includes forward-looking statements. Suchstatements do not constitute historical fact and reflect the beliefsand expectations of the Corporation’s management. The words“anticipates,” “hopes,” “expects,” “estimates,” “intends,”“projects,” “plans,” “predicts,” “projects,” “aims” and other similarexpressions are used to identify such statements.
Although the Corporation believes that the expectations andassumptions reflected by these forward-looking statements arereasonable and based on the information currently available to itsmanagement, it cannot guarantee results or future events. Suchforward-looking statements should be considered with caution,since actual results may differ materially from those expressed orimplied by such statements. Securities are prohibited from beingoffered or sold in the United States unless they are registered orexempt from registration in accordance with the U.S. SecuritiesAct of 1933, as amended (“Securities Act”). Any future offering ofsecurities must be made exclusively through an offeringmemorandum. This presentation does not constitute an offer,invitation or solicitation to subscribe or acquire any securities, andno part of this presentation nor any information or statementcontained herein should be used as the basis for or considered inconnection with any contract or commitment of any nature. Anydecision to buy securities in any offering conducted by theCorporation should be based solely on the information containedin the offering documents, which may be published or distributedopportunely in connection with any security offering conductedby the Corporation, depending on the case.
41Focus to Win
IR Contacts
Website
www.marfrig.com.br/ri
Address
Avenida
Chedid Jafet,
222 - Bloco A – 3º
andar
+55 (11)
3792-8650
3792-8600
Telephone
@