Ingredion Incorporated · NYSE:INGR
Ingredion — Corn Products International — Q4 2003 Earnings Presentation
21 slides from Ingredion's earnings presentation, Feb 10, 2004
Slide 1: Fourth Quarter 2003 Earnings Presentation
Fourth Quarter 2003 Earnings Presentation Samuel C. Scott Chairman, President and Chief Executive Officer James W. Ripley Vice President, Chief Financial Officer Richard M. Vandervoort Vice President, Strategic Business Development and Investor Relations January 29, 2004
Slide 2: Forward-looking Statement
Corn Products International, Inc. Forward-looking Statement This presentation contains or may contain forward-looking statements concerning the Company's financial position, business and future earnings and prospects, in addition to other statements using words such as "anticipate," "believe," "plan
Slide 3: Financial Results For the Quarter and Year Ended December 31, 2003
Financial Results For the Quarter and Year Ended December 31, 2003
Slide 4: Summary Income Statement Quarter Ended December
Summary Income Statement Quarter Ended December 31 ($ millions)
Slide 5: Summary Income Statement
Summary Income Statement Year Ended December 31 ($ millions)
Slide 6: Net Sales by Geographic Segment
Net Sales by Geographic Segment Year Ended December 31 ($ millions)
Slide 7: Net Sales Variance Analysis
Net Sales Variance Analysis Year Ended December 31, 2003 (percents %)
Slide 8: Operating Income by Geographic Segment
Operating Income by Geographic Segment Year Ended December 31 ($ millions)
Slide 9: Estimated Source of Diluted Earnings Per Share
Estimated Source of Diluted Earnings Per Share Year Ended December 31 (cents per share)
Slide 10: Cash Flow
Cash Flow For the Year Ended December 31 ($ millions)
Slide 11: Key Ratios
Key Ratios Year Ended December 31 ($ millions)
Slide 12: Business Review For the Quarter and Year Ended December 31, 2003
Business Review For the Quarter and Year Ended December 31, 2003
Slide 13: Currency Update
Currency Update* *Source: Bloomberg; mid-range rates - dates and averages
Slide 14: Q4 2003 - In Aggregate
Q4 2003 - In Aggregate Pro forma EPS up >67 percent Sales, operating and net income Outstanding recovery in South America Excellent progress in United States and Mexico Cash generation Net debt down $68 million from $548 million in Q3 2003 Working capital progress continued Increased dividend by 20
Slide 15: 2003 - In Aggregate
2003 - In Aggregate Pro forma EPS up 30%* $2.1B sales up 12%* Volume up despite Mexico tax on HFCS use* Cash generation Operating cash flow up 15% > $6.50/share* Free cash flow up 20% > $4.20/share* EBITDA up 7% $7.60/share Excellent progress toward goal To return and exceed our cost of capital GAAP
Slide 16: North America - 2003
North America - 2003 Mexico Unlike 2002, HFCS-sweetened soft drinks taxed full year Balance of business performed well Operating income increased Bilateral trade discussions continue - no news yet United States Solid performance in slow HFCS 55 market Op. income ramping toward acceptable returns Imp
Slide 17: South America
South America Macro environment Argentina, Brazil currencies firmed through 2003 Economies healing Our business - excellent recovery and growth Sales up 23 percent Volume up 7 percent Price/product mix double-digits Andean region Good volume growth Difficult economic/political environment continues
Slide 18: Asia/Africa
Asia/Africa Sales up 11 percent Volume up 7 percent Thai plant - Q4 "flex point" - operating income turn Korea Slow economy Strong year, slightly under 2002 Pakistan Macro environment - positive Strongest yearly operating income in history - again Construction for new plant Operating income up ~$800
Slide 19: Outlook
Outlook Global Corn, energy costs higher By-product credits higher North America Earnings improvement expected to continue United States Improvement pace projected to lessen Product pricing still underway Mexico Bilateral trade negotiations continue Resolution not assumed in outlook 2004 EPS: expect
Slide 20: Outlook (cont'd.)
Outlook (cont'd.) South America Project another good year, but... Don't expect 42 percent operating income gains Q1 and Q2 against easier 2003 comps Asia/Africa Expecting better operating income growth in 2004 Thai business anticipated to deliver earnings growth Pakistan Base business to continue st
Slide 21: Q&A
Q&A
Corn Products International — Q4 2003 Earnings Presentation on 6ix