Slide 1: Building one of the World's Largest Food Companies
Marfrig Building one of the World’s Largest Food Companies 4Q12 and 2012 Earnings Conference Call
Slide 2: Highlights
Highlights Continuous NOR grows 21.0% (4Q12 vs. 4Q11) to R$6.71 billion and 12.9% (2012 vs. 2011) to Growth R$23.73 billion. Consolidated EBITDA growth of 20.3% to R$2.13 billion (margin of 9.0%) Profitability from 2011. Equity R$1.05 billion raised through Public Share Offering. Position Net Net lo
Slide 3: Recent Operating Highlights
Recent Operating Highlights
Slide 4: Highlights: Governance and Capital Structure
Highlights GOVERNANCE 1. Stronger management team with hiring of new Keystone CEO (Feb/13) 2. Creation of executive committee to improve management 3. Strengthening of financial area with centralization of management 4. Greater transparency in communication process 5. Transition between Group´s CEO
Slide 5: Highlights: Operational
Highlights OPERATIONAL 1. Integration of new plants, brands and DCs from the asset swap transaction (TCD-CADE), strengthening Seara’s presence in Brazil 2. Focus on improving logistics, with a target of achieving an Order Fill Rate of at least 75% by end-2Q13 3. Development of operational action pla
Slide 6: Financial and Operating Highlights 4Q12 / 2012
Financial and Operating Highlights 4Q12 / 2012
Slide 7: Consolidated Financial Highlights
Consolidated Financial Highlights INCOME STATEMENT - CONSOLIDATED 4Q12 4Q11 4Q12 / 4Q11 2012 2011 2012 / 2011 (R$ million) NET OPERATING REVENUE 6,713.6 5,548.4 21.0% 23,726.4 21,014.1 12.9% Cost of Goods Sold (5,737.5) (4,707.1) 21.9% (20,167.2) (18,032.3) 11.8% GROSS INCOME 976.1 841.3 16.0% 3,559
Slide 8: Consolidated Financial Highlights
Consolidated Financial Highlights Gross Income (R$ million) and Gross Margin (%) SG&A and % of Net Revenue Marfrig Beef Marfrig Beef Seara Foods Seara Foods Gross Margin SG&A / NOR 15.2% 15.0% 10.8% 10.3% 10.6% 14.5% 9.5% 14.2% 3,559 2.521 2.170 976 2,982 726 841 893 1,679 529 779 465 1,334 232 361
Slide 9: Cash Flow and Working Capital
Cash Flow and Working Capital Changes in Cash Flow (R$ million) 1,801 112 -224 -477 -1,053 -943 -990 -1,261 -2,204 Net Income Change in WC Other Equity Items not Oper. CF before CAPEX Operating CF Financ. Inc/Exp Free CF Changes affecting cash investments Changes in Working Capital (R$ million) 350
Slide 10: CAPEX
CAPEX CAPEX (R$ million) + 11% 1,053 947 Marfrig Beef 270 377 Moy Park 134 294 Keystone 245 64 Seara Brasil 319 297 2011 2012 TOTAL TOTAL Investments 4Q12 3Q12 2Q12 1Q12 2012 2011 Investments in fixed assets 292.2 297.4 241.3 190.4 1,022.2 912.8 Fixed assets 201.3 208.3 140.1 104.4 654.7 632.5 Breed
Slide 11: Changes in Debt
Changes in Debt Bridge: Net Debt 2011 2012 (R$ million) 715 1,461 1,053 -1,017 -128 70 -674 9,204 7,900 -112 Net Debt Commercial Capex MB BRF Prov. Interest FX Capitalization Other Net Debt 12/31/11 CF & Leasing Reductions in 12/31/12 Liabilities Cash and Debt Profile Net Debt / EBITDA (R$ million)
Slide 12: Debt Profile
Debt Profile Debt Profile (R$ million) Short-Term Debt: Revolving Line Keystone 2014: (in renewal) - 70% Export Facilities, ACCs and ACEs • US$600 MM - 30% Other Nonconvertible Debentures: • R$200 MM 3,178 3,703 3,091 1,709 1,611 1,502 1,189 722 752 617 174 983 30 0 1Q13 2Q13 3Q13 4Q13 Equivalents 2
Slide 13: Seara Foods Segment
) MARFRIG -GROUP a, 4 Seara Foods Segment
Slide 14: Seara Foods Highlights
Seara Foods Highlights The integration of the new production units, brands and distribution centers arising from the asset swap transaction was begun in the second half of the year Number of clients grows from 36,000 in January 2012 to approximately 70,000 by year-end, with a focus on more profitabl
Slide 15: Seara Foods Financial Highlights
Seara Foods Financial Highlights Gross Income (R$ million) and Gross Margin (%) SG&A and % of Net Revenue Gross Income SG&A Gross Margin SG&A / NOR 13.1% 12.3% 10.9% 11.8% 11.2% 10.4% 10.2% 9.1% 1,880 481 511 1,648 1,628 1,391 495 334 4Q11 4Q12 2011 2012 4Q11 4Q12 2011 2012 EBITDA (R$ million) and E
Slide 16: Marfrig Beef Segment
) MARFRIG -GROUP nae 4 Marfrig Beef Segment
Slide 17: Marfrig Beef Highlights
Marfrig Beef Highlights Better management of sales channels, with a 65.5% increase in exports from Brazil in 4Q12 compared to 4Q11 Optimization of industrial facilities to adjust slaughter capacity to the better phase of the cattle cycle in Brazil, with capacity utilization ending the year at 70% Re
Slide 18: Marfrig Beef Financial Highlights
Marfrig Beef Financial Highlights Gross Income (R$ million) and Gross Margin (%) SG&A and % of Net Revenue Gross Income SG&A 21.5% Gross Margin 21.7% 10.7% SG&A / NOR 10.3% 11.5% 19.1% 10.2% 17.4% 1,679 465 1,334 893 232 779 361 195 4Q11 4Q12 2011 2012 4Q11 4Q12 2011 2012 EBITDA (R$ million) and EBI
Slide 19: 2013 Outlook
2013 Outlook Continuous Growth Seara Brasil expected to improve its cash generation as from 2Q13; Cash Consistent cash generation remains a key priority of Marfrig’s Generation management team; Profitability Margins under pressure at Marfrig Beef in early 2013 (1Q13) and gradual recovery at Seara Fo
Slide 20: Disclaimer
Disclaimer This material is a presentation of general information on Marfrig Alimentos S.A. and its subsidiaries (jointly the “Corporation”) prepared as of the date of the presentation. This presentation was summarized and does not purport to be complete and should not be construed as an investment
Slide 21: IR Contacts
IR Contacts Avenida Chedid Jafet, 222 - Bloco A - 1º andar Vila Olímpia - São Paulo/SP - CEP: 04551-065 Tel: +55 (11) 3792-8650/8600 E-mail: ir@marfrig.com.br / Website: www.marfrig.com.br/ir