M. Dias Branco Sa Industria E Comercio De Alimentos · BMFBOVESPA:MDIA3
M. Dias Branco Sa Industria E Comercio De Alimentos — M. Dias Branco — FY2018 Earnings Presentation
28 slides from M. Dias Branco Sa Industria E Comercio De Alimentos's earnings presentation, Aug 19, 2019
Slide 1: Results Presentation 2018 and 4Q18
Results Presentation 2018 and 4Q18 1
Slide 2: Forward-looking statements disclaimer
The statements contained in this document related to the management's views on the business of M. Dias Branco are merely trends and, as such, are based exclusively on management's perspective on the continuity of past and present actions, based on facts that have already occurred. These trends do no
Slide 3: Acquisition of Piraquê and basis of presentation
On May 16, 2018, the Company concluded the acquisition of 100% of Indústria de Alimentos Piraquê S.A. (“Piraquê”). Piraquê’s results for the period between May 17 and September 30, 2018, can be found in the consolidated information of this document. This presentation includes some information exclud
Slide 4: Highlights of 2018
y Highlights of 2018 A
Slide 5: 2018 Releases
2018 Releases Innovation in Cracker Innovation in Cookies Synergy with Piraquê brand Product for export 5
Slide 6: Acquisition of Piraquê in May / 2018
Acquisition of Piraquê in May / 2018 • R$ 1.5 billion | 16.2x EV / EBITDA • Items of high added value • Leader in the state of Rio de Janeiro • + 7.3% of net revenue for M. Dias Branco • Seventh brand of the group with annual sales in excess of R$ 500 million • Integration in progress • Synergies Ma
Slide 7: Marketing investments consistent with strategy and short-term results
Marketing investments consistent with strategy and short- term results Buy one and get items for free Points of sale Digital Influencer | Digital marketing 7
Slide 8: Accelerated growth in exports
Accelerated growth in exports 2016 2017 2018 R$ 28 millions R$ 35 millions R$ 46 millions 19 countries 25 countries 37 countries 8
Slide 9: Sustainability
Sustainability 1st inventory of greenhouse gas emissions (GHG) Lower water consumption (m³ / ton SDG produced): -14.3% in 4Q18 vs. 4Q17 and -8.5% 2018 vs. 2017. 9
Slide 10: Culture, people and management
Culture, people and management Evolution of Organizational Climate ICO * of 71.3 points in 2018 +5.6% vs. 2013 10 * Organizational Climate Index
Slide 11: Results 4Q18 and 2018
Results 4Q18 and 2018 11
Slide 12: Net Revenue (with Piraquê) +11.3% 2018 vs. 2017
Net Revenue (with Piraquê) +11.3% 2018 vs. 2017 Variation of Net Revenue - 2018 vs. 2017 (R$ Million) | M.Dias + Piraquê Volume Effect Price Effect +5.3% +9.0% -8.2% -4.3% +1.9% +10.1% +0.9% +13.0% +2.0% +6.0% 8.000 7.000 6.000 5,415 154 103 75 14 2 292 10 123 7 8 6,025 5.000 4.000 3.000 2.000 1.000
Slide 13: Net Revenue (without Piraquê) +3.4% 2018 vs. 2017
Net Revenue (without Piraquê) +3.4% 2018 vs. 2017 Variation of Net Revenue - 2018 vs. 2017 (R$ Million) | M. Dias Volume Effect Price Effect -0.3% +2.5% -8.1% -4.4% +1.2% +4.4% 0.0% +13.0% +1.8% +5.7% 5,415 5,597 5.500 8 28 74 14 2 128 1 107 6 8 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000
Slide 14: Net Revenue (with Piraquê) +15.8% 4Q18 vs. 4Q17
Net Revenue (with Piraquê) +15.8% 4Q18 vs. 4Q17 Variation of Net Revenue - 4Q18 vs. 4Q17 (R$ Million) | M.Dias + Piraquê Volume Effect Price Effect +1.7% +10.0% -19.2% +1.9% -2.3% +16.2% +11.0% +32.4% +2.9% +3.4% 1,580 1,364 67 1 1.800 1.700 117 31 2 12 28 44 1 1.600 1.500 1.400 1.300 2 1.200 1.100
Slide 15: Net Revenue (without Piraquê) +3.5% 4Q18 vs. 4Q17
Net Revenue (without Piraquê) +3.5% 4Q18 vs. 4Q17 Variation of Net Revenue – 4Q18 vs. 4Q17 (R$ Million) | M.Dias Volume Effect Price Effect -6.7% +0.2% -19.0% +1.4% -4.5% +7.1% +9.7% +32.4% +2.6% +4.2% 1.800 1.700 1,364 1,412 2 1.600 1.500 49 0 44 1 51 28 59 1 1.400 1.300 1 1.200 1.100 1.000 Net rev
Slide 16: Expansion of market share in cookies, crackers and pastas
Expansion of market share in cookies and crackers and pastas M. Dias Branco + Piraquê Product Line 2018 vs. 2017 4Q18 vs. 4Q17 Share volume: Share volume: 34.0% (+1.5 p.p vs. 2017) 35.6% (+3.7 p.p vs. 4Q17) s Share Value: Share Valor: 28.2% (+3.8 p.p vs. 2017) 30.5% (+6.5 p.p vs. 4Q17) Share volume:
Slide 17: Production Capacity and Usage Level
Production Capacity (Thousand Ton) and Usage Level (%) 20 0% 18 0% 3.000 2.500 4.000 3.500 3,372 3,663 100% 95% 90% 16 0% 85% 3.000 2.000 80% 14 0% 79% 2.500 75% 933 1.500 12 0% 875 70% 72% 2.000 1.000 65% 10 0% 80 % 75% 67% 500 1.500 60% 55% 1.000 50% 60 % - 4Q17 4Q18 2017 2018 17
Slide 18: Verticalization of Wheat Flour and Vegetable Shortening
Verticalization of Wheat Flour and Vegetable Shortening Wheat Flour Vegetable Shortening 2017 2018 2017 2018 92.1% 85.0% 82.6% 98.7% 18
Slide 19: COGS (% Net Revenue) impacted by wheat cost and Real devaluation
COGS (% Net Revenue) impacted by the increase in the cost of wheat and the devaluation of the Real 66.5% 69.6% 62.4% 64.8% 9.0% 7.3% 8.5% 7.8% 9.1% 9.0% 9.3% 8.6% 23.1% 24.0% 23.5% 23.4% 24.6% 27.5% 23.0% 25.6% 4Q17 4Q18 2017 2018 Wheat Others Inputs Labor Indirect Costs and Packaking and Depreciati
Slide 20: Reduction of operating expenses, 2018 vs. 2017
Reduction of operating expenses (M. Dias Branco + Piraquê), even with negative impact of non-recurring items 2018 vs. 2017 Evolution Operating expenses (% Net Revenue) | M.Dias + Piraquê | 2018 vs. 2017 26.0% 1.6% 0.1% 0.8% 0.5% 0.2% 25.6% Operating Other expenses Freights Salaries and Non-recurring
Slide 21: Reduction of operating expenses, 4Q18 vs. 4Q17
Reduction of operating expenses (M. Dias Branco + Piraquê), even with negative impact of non-recurring items 4Q18 vs. 4Q17 Evolution Operating expenses (% Net Revenue) | M.Dias + Piraquê | 4Q18 vs. 4Q17 27.5% 2.1% 1.0% 0.9% 0.7% 26.6% Operating Other expenses Salaries and benefits Non-recurring Othe
Slide 22: EBITDA and EBITDA Margin
EBITDA (R$ Million) and EBITDA Margin (% Net Revenue) Reduction of expenses, contributing to the positive result 10 00,0 80 % 966.4 933.0 90 00, 70 % 80 00, 60 % 70 0,0 50 % 60 00, 50 00, 40 % -3.5% 40 00, 30 00, 30 % 17.8% 15.5% 2018 vs. 2017 20 % 20 00, 10 % 10 00, 0,0 0% 2017 2018 EBITDA EBITDA M
Slide 23: Net Income and Net Margin
Net Income (R$ Million) and Net Lucro Líquido Margin Margem Líquida (% Net Revenue) 60 % 844,3 90 0 50 % 723,5 80 0 70 0 40 % 60 0 50 0 30 % -14.3% 15.6% 40 0 20 % 12.0% 30 0 2018 vs. 2017 10 % 20 0 10 0 0% 0 2017 2018 80 % Net Profit Net Margin 50 0 45 0 70 % 40 0 60 % 209.7 234.3 35 0 201.9 50 % 3
Slide 24: Investments of R$ 301.1 million in 2018
Investments of R$ 301.1 million in 2018 2018 vs. 2017 -8.6% Ongoing construction of the new milling unit in Bento Gonçalves (RS); 50 % 45 % 329.5 301.1 35 0 30 0 Reuse of effluents in the Fats and Margarines 40 % 25 0 35 % 30 % 25 % 20 0 unit in Fortaleza (CE); 6,1% 15 0 20 % 5,0% 15 % 10 0 10 % Imp
Slide 25: Cash Flow and (%) Net Revenue
Cash Flow and (%) Net Revenue 12.9% of Net Revenue in 2018 779.9 300.0 401.8 132.4 23.8 1,306.4 925.9 113.7 451.0 7.7 Cash and Cash Net Cash from Payment of Financing Dividends Payment for Acquisition of Investment Cash and cash Cash and Cash Equivalents in operating property and activities (interes
Slide 26: Cash (Debt) Net and EBITDA
Cash (Debt) Net: R$ Million and EBITDA 60 00 50 , 00 , 596.6 15 00 ,% 0.6 40 00 , 10 00 ,% 30 00 , 20 00 , 10 00 , 50 ,0 % 0,0 -100 ,0 0,0% -0.6 -200 ,0 -300 ,0 -400 ,0 -50,0% -500 ,0 -600 ,0 -100 ,0 % -700 ,0 -763.5 -800 ,0 -900 ,0 -150 ,0 % 2017 2018 26
Slide 27: MDIA3 x IBOV x IGC
MDIA3 x IBOV x IGC Average Daily Volume: Profitability% 01/02/2018 a 03/08/2019 MDIA3 (R$ million) 40 40% 35 30% 30 20% 25 10% 20 0% 15 -10% 10 -20% 5 -30% 0 -40% jan-18 feb-18 mar-18 apr-18 may-18 jun-18 jul-18 aug-18 sep-18 oct-18 nov-18 dec-18 jan-19 feb-19 mar-19 Volume (Millions) MDIA3 IBOV IGC
Slide 28: Investor relations contacts
Geraldo Luciano Mattos Júnior Vice-President of Investments and Controllership Phone.: (85) 4005-5874 E-mail: geraldo@mdiasbranco.com.br Fabio Cefaly New Business and Investor Relations Director Phone.: (85) 4005-5730 E-mail: fabio.cefaly@mdiasbranco.com.br www.mdiasbranco.com.br/ri ri@mdiasbranco.c