Slide 1: MARFRIG 3Q12 Earnings Release
MARFRIG 3Q12 Earnings Release
Slide 2: 3Q12 Highlights
3Q12 Highlights Financial Highlights Record quarterly revenue of R$6.30 billion, up 14.1% from 3Q11; Gross Margin expansion of 100 bps from 3Q11, to 15.7%; EBITDA of R$549.8 million with EBITDA margin of 8.7%; Net Income of R$10.4 million, reversing the net loss in 3Q11; Operating cash generation of
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue by Product + 14.0% (R$ million) 6.301 Processed 5.524 + 39.0% Fresh meat 2.876 10,0% Other 2.068 3.806 883 45,6% 2.405 3Q12 670 2.730 44,4% 1.524 2.797 2.521 245 1.531 1.131 402 727 628 147 203 3Q08 3Q09 3Q10 3Q11 3Q12 Revenue by Segment (R$ million) 6.301 S
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights EBITDA and EBITDA Margin Adjusted EBITDA and Adjusted EBITDA Margin (R$ million) (R$ million) 13,2% 11,5% 767,6 8,7% 8,2% 7,8% 7,9% 637,5 549,8 513,8 430,9 460,8 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 EBITDA EBITDA Margin Adjusted EBITDA Adjusted EBITDA Margin Net Income of
Slide 5: Capital Structure Management
Capital Structure Management Focus on managing the capital structure and debt profile Debt Maturity Profile (R$ million) Short Term 26.6% R$ 3.2 billion ST debt: 2.811 • 70% ACC/NCE / PPE Long Term 73.4% • 30% Other 1.610 1.485 1.081 1.170 1.007 814 655 684 658 165 1 4Q12 1Q13 2Q13 3Q13 2013 2014 20
Slide 6: Cash Flow and Operational Cash Generation
Cash Flow and Operational Cash Generation Simplified Cash Flow (R$ million) 3Q12 2Q12 1Q12 Operating Activities Net Income for the period 10,415 15,451 34,476 Noncash Items 496,717 393,582 389,110 Working capital changes – operating accounts 1 (354,643) 15,998 (374,997) Accounts Receivable (270,043)
Slide 7: CAPEX: Focus on Optimizing Operational Structure and Generating Results
CAPEX: Focus on Optimizing Operational Structure and Generating Results Focus on managing the capital structure and debt profile Investments (R$ million) 3Q12 2Q12 1Q12 Investments in Fixed Assets 202.3 232.8 189.5 Fixed 113.2 131.6 103.5 Breeding stocks 89.1 101.2 86.0 Investment in Intangible Asse
Slide 8: Performance by Segment: Marfrig Beef
PERFORMANCE BY SEGMENT MARFRIG BEEF
Slide 9: Marfrig Beef Highlights
Marfrig Beef Highlights Financial Highlights Gross Income grew 22.3% on 3Q11 to reach R$432.2 million, with Gross Margin expanding 420 bps to 22.1%; Adjusted EBITDA of R$236.8 million, up 28.0% on 3Q11, with Adjusted EBITDA Margin expanding 270 bps to 12.1%. Operating Highlights The Brazilian operat
Slide 10: Marfrig Beef - Revenue Breakdown
Marfrig Beef - Revenue Breakdown 3Q12 - R$1.96 billion 3Q11 - R$1.86 billion 2Q12 - R$1.90 billion Brazil Op. - DM 19,4% Revenue by 21,6% 38,6% 20,1% 31,2% Brazil Op. - EM 40,9% Operation 14,4% 10,8% 15,8% Int. Op. - DM 13,4% Int. Op. - EM 11,2% 14,2% 15,6% 14,3% 18,6% Other 3Q12 3Q11 2Q12 18,3% 19,
Slide 11: Marfrig Beef - Brazil
Marfrig Beef - Brazil Cattle Slaughter - Brazil¹ Market Share in Beef Exports - Brazil² 5.672 5.574 5.770 18,9% 5.503 16,4% 13,5% 251 13,2% 11,5% 11,4% 11,6% 221 197 8,8% 122 3Q09 3Q10 3Q11 3Q12 3Q09 3Q10 3Q11 3Q12 Total Slaughter (thousand heads) Market Share - Marfrig Marfrig Exports (USD Million)
Slide 12: Marfrig Beef - Financial Highlights
Marfrig Beef - Financial Highlights EBITDA and EBITDA Margin Adjusted EBITDA and Adjusted EBITDA Margin (R$ million) (R$ million) 17,3% 12,1% 11,7% 12,7% 327,5 236,8 9,4% 221,8 247,7 9,4% 185,0 184,6 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 EBITDA EBITDA Margin Adjusted EBITDA Adjusted EBITDA Margin Margin exp
Slide 13: Performance by Segment: Seara Foods
PERFORMANCE BY SEGMENT SEARA FOODS
Slide 14: Seara Foods Highlights
Seara Foods Highlights Financial Highlights Revenue of R$4.34 billion, increasing 22.3% from 3Q11; Adjusted EBITDA of R$277.3 million, up 12.7% on 3Q11; Gross Margin expansion of 150 bps from 3Q11. Operating Highlights Share of higher-value processed products grows to 58.0% in 3Q12, from 51.5% in 3Q
Slide 15: Seara Foods - Revenue Breakdown
Seara Foods - Revenue Breakdown 3Q12 - R$4.34 billion 3Q11 - R$3.55 billion 2Q12 - R$3.92 billion 4,7% 9,7% 13,6% 3,2%14,2% Brazil Op. - DM 5,9% 20,6% 6,2% 5,4% Revenue by Brazil Op. - EM Int. Op. - DM Operation 45,5% 23,3% 27,8% 25,5% 43,5% 50,9% Int. Op. - EM Other 3Q12 3Q11 2Q12 4,7% 9,7% 3,2% Pr
Slide 16: Seara Foods - Market Share
Seara Foods - Market Share Frozen Meat Products¹ Processed Meat Products² 15.5 + 6.5 p.p. + 3.3 p.p. 11.0 9,7 9.00 7,7 7,5 Seara Seara Seara + New Brands TCD Seara Seara Seara + New Brands TCD (Feb-Mar/12) (Apr-May/12) (Jun-Jul/12) (Mar-Apr/12) (May-Jun/12) (Jul-Aug/12) ¹ Ready-to-eat meals, Hamburg
Slide 17: Seara Foods - Financial Highlights
Seara Foods - Financial Highlights EBITDA and EBITDA Margin Adjusted EBITDA and Adjusted EBITDA Margin (R$ million) (R$ million) 12,8% 11,2% 7,0% 452,9 440,2 6,9% 6,4% 6,1% 302,1 277,3 246,0 239,0 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 EBITDA EBITDA Margin Adjusted EBITDA EBITDA Margin Satisfactory operation
Slide 18: Closing Remarks and Priorities for 2012
Closing Remarks and Priorities for 2012 Scale gains at Marfrig Beef driven by a gradual increase in production capacity; Increasing the share of prepared and processed products by increasing production at the Seara Brasil assets; Growing markets in Brazil and China; Lowering financial leverage by re
Slide 19: Disclaimer
Disclaimer This presentation may include statements representing expectations about future events or results according to the Brazilian and international securities regulation. These statements are based on certain assumptions and analyses made by the Corporation according to its experience and the
Slide 20: Contacts – Investor Relations Department
Contacts – Investor Relations Department Ricardo Florence CFO and IRO Remi Kaiber Junior www.marfrig.com.br/ri IR Director ri@marfrig.com.br Marfrig Alimentos S/A Av. Chedid Jafet, 222 Bloco A 1º andar CEP: 04551-065 – Vila Olímpia Tel: +55 (11) 3792-8600/8650