Mbrf Global Foods Company S.a. · BMFBOVESPA:MBRF3

Mbrf Global Foods — Marfrig Global Foods — Q4 2013 Earnings Presentation

27 slides from Mbrf Global Foods's earnings presentation, 2014

  1. Slide 1: 4Q13 & 2013 Earnings

    FOCUS TO WIN 4Q13 & 2013 Earnings 1 Focus to Win

  2. Slide 2: Financial Targets | Marfrig Group Consolidated

    Financial Targets | Marfrig Group Consolidated % MARFRIG DAY FY2013 Achieved 2013 Revenues 18,500 18,752 101.4% (R$ million) EBITDA Margin(1) 7.5 7.7 102.7% (%) Note: (1) Excludes gains from the divestment of assets (Seara and Zenda) and nonrecurring items. 2 Focus to Win

  3. Slide 3: Financial Targets | Business Units

    Financial Targets | Business Units MARFRIG DAY % FY2013 Achieved 2013 Keystone Moy Park Revenue Growth 17.9 119.3% 15.0 (%) EBITDA Margin (1) 6.2 6.5 104.8% (%) Revenue 10.0 100% 10.0 Growth (%) EBITDA Margin (1) 6.3 6.4 101.6% (%) Revenue 12.0 13.5 112.5% Marfrig Growth Beef (%) EBITDA Margin (1) 8

  4. Slide 4: Analysts' Estimates | 4Q13

    Analysts' Estimates | 4Q13 Adjusted Net Adjusted EBITDA Revenues EBITDA (R$ million) (R$ million) Margin (R$ million) Bloomberg 5,050 373 7.4% Consensus Marfrig 4Q13 4,978 422 8.5% Change -1.4% +13.1% 110 bps 4 Focus to Win

  5. Slide 5: Bond Performance | Since 3Q13

    Bond Performance | Since 3Q13 105 MRFG 2017 + 4% 105 MRFG 2018 104 Peers + 3% 104 Peers 103 103 102 102 101 101 100 100 99 - 0.2% 99 - 0.1% 98 98 97 97 96 96 95 95 nov-13 NOV13 dez-13 DEC13 jan-14 JAN14 fev-14 FEB14 NOV13 nov-13 DEC13 dez-13 JAN14 jan-14 FEB14 fev-14 105 MRFG 2020 + 5% 105 MRFG 2021

  6. Slide 6: 4Q13 Highlights: Cash Flow and Debt

    4Q13 Highlights Cash Flow and Debt  Operating Cash Flow before Interest and Capex increased 50% to R$368 million, from R$236 million in 3Q13, further corroborating the guidance given for 2014 of positive cash flow in the period.  Improvement in operating working capital by optimizing inventory lev

  7. Slide 7: 4Q13 Highlights: Performance of Business Units

    4Q13 Highlights Performance of Business Units  EBITDA margin expansion compared to 3Q13 at all business units:  Moy Park recorded the highest EBITDA margin in the year, driven by growth in turkey sales in the festive season, the better sales mix in the food service segment and lower production cos

  8. Slide 8: 4Q13 Highlights: Non-financial Highlights

    4Q13 Highlights 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: Busi

  9. Slide 9: Financial Performance | Consolidated: Net Revenue

    Financial Performance | Consolidated Net Revenue (R$ million) + 1% 4,978 Growth vs. 3Q13: 4,944  Keystone:  - 6.2% 4,455 4,375  Moy Park:  + 9.1%  Marfrig Beef:  + 0.7% 1Q13 2Q13 3Q13 4Q13 9 Focus to Win

  10. Slide 10: Financial Performance | Gross Profit & Gross Margin

    Financial Performance | Consolidated Gross Profit & Gross Margin Breakdown by Business (R$ million and %) (%) 13.1% 13.3% 3Q13 4Q13 11.1% 11.9% 16% 15% + 13% 660 63% 63% 571 586 21% 22% 493 KEYSTONE MOY PARK MARFRIG BEEF 1Q13 2Q13 3Q13 4Q13  Gross Profit growth at Marfrig Beef of 12.8% in relation

  11. Slide 11: Financial Performance | SG&A

    Financial Performance | Consolidated SG&A & SG&A/Net Revenue Breakdown by Business (R$ million and %) (%) 7.4% 7.5% 7.4% 3Q13 4Q13 6.9% 13% 12% + 9% 60% 58% 373 28% 342 29% 322 331 KEYSTONE MOY PARK MARFRIG BEEF 1Q13 2Q13 3Q13 4Q13  SG&A expenses as a ratio of net revenue increased 60 bps from 3Q13

  12. Slide 12: Financial Performance | Adjusted EBITDA & Margin

    Financial Performance | Consolidated Adjusted EBITDA & Margin Breakdown by Business (R$ million and %) (%) 8.4% 7.6% 8.5% 3Q13 4Q13 6.3% 25% 22% + 13% 54% 54% 422 369 375 21% 24% KEYSTONE 280 MOY PARK MARFRIG BEEF 1Q13 2Q13 3Q13 4Q13  Expansion of 90 bps in Adjusted EBITDA Margin from 3Q13:  100 b

  13. Slide 13: Financial Performance | Net Income

    Financial Performance | Consolidated Net Income (R$ million) 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13 (60) (83) (194) -57% (479) Income/Loss Income Tax Net Income Financial Results before & Social (Loss) (R$ million) Taxes Contribution 1Q13 (53) (7) (60) 2Q13 (714) 235 (479) 3Q13 (253) 59 (194) 4Q13

  14. Slide 14: Financial Performance | 4Q13 vs. 4Q12

    Financial Performance | Consolidated 4Q13 vs. 4Q12 Net Revenue Gross Profit & Gross Margin (R$ million) (R$ million and %) + 10% 14.5% 13.3% 4,978 660 658 4,533 4Q12 4T12 4Q13 4T13 4Q12 4T12 4Q13 4T13 SG&A & SG&A/Net Revenue Adjusted EBITDA & Margin (R$ million and %) (R$ million and %) 7.9% 7.5% 9.

  15. Slide 15: Liquidity & Debt | Consolidated

    Liquidity & Debt | Consolidated Debt (R$ million) Indicators 3Q13 4Q13 Gross Debt/ EBITDA LTM 3.84x 3.77x Long Term Net Debt/ EBITDA LTM 2.8x 3.0 x 12,998 Short Term Net Debt/ Adj. EBITDA 11,097 4.40x 4.22x Annualized 9,127 8,940 Net Debt/ Total Assets 0.4x 0.4x 9,357 Cash and Eq. / Short Term 1,813

  16. Slide 16: Liquidity & Debt | Maturity Schedule

    Liquidity & Debt | Consolidated Maturity Schedule – 4Q13 2,473 (R$ million) 1,813 Short Term: R$ 1.1 bn 1,578 1,597 893 685 582 503 340 125 155 9 Cash Caixa 1Q14 1T14 2Q14 2T14 3Q14 3T14 4Q14 4T14 2015 2016 2016 2017 2018 2018 2019 2020 2020 2021 Maturity Schedule – 3Q13 (R$ million) 2,470 2,409 Sho

  17. Slide 17: Cash Flow | Consolidated

    Cash Flow | Consolidated Operational Cash Flow before CAPEX & Interest (R$ million) 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13 + 56% 368 236 (202) 0 0 0(427)  Positive Operating Cash Flow (before Capex and Interest) of R$368 million in 4Q13, compared to R$236 million in 3Q13. 17 Focus to Win

  18. Slide 18: Cash Flow Bridge – 4Q13

    Financial Performance | Consolidated Cash Flow Bridge – 4Q13 (R$ million) 264 32 368 400 (102) (42) (101) (83) Net Income/ Not affecting Trade account Inventories Trade account Other Taxes Op. Cash Flow Loss cash items receivables payables before Investiments  Improvement in working capital managem

  19. Slide 19: Moy Park 4Q13 Highlights

    Moy Park 4Q13 Highlights Net Revenue Adjusted EBITDA & Margin (R$ million) + 9% (R$ million and %) 120 7.6% 8,0% 1,332 110 6.4% 7,0% 100 5.9% 5.9% 1,222 101 6,0% 90 1,132 + 30% 5,0% 80 1,038 70 78 4,0% 3,0% 60 61 66 50 2,0% 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4

  20. Slide 20: Keystone 4Q13 Highlights

    Keystone 4Q13 Highlights Net Revenue Adjusted EBITDA & Margin (R$ million) (R$ million and %) - 6% 6.8% 6.4% 6.9% 5.3% 1,483 + 1% 1,390 1,286 1,213 95 96 82 68 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13  Net revenue down 6% from 3Q13, mainly due to the lower sal

  21. Slide 21: Marfrig Beef 4Q13 Highlights

    Marfrig Beef 4Q13 Highlights Net Revenue Adjusted EBITDA & Margin (R$ million) + 1% (R$ million and %) 10.6% 10.0% 9.0% 2,240 2,256 7.1% + 12% 2,124 2,038 225 226 202 145 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13 1Q13 1T13 2Q13 2T13 3Q13 3T13 4Q13 4T13  Modest net revenue growth, explained by the low

  22. Slide 22: Financial Targets | Marfrig Group Consolidated

    Financial Targets |Marfrig Group Consolidated 2014 2018 Target Range Target Range Revenues(1) 21.0 – 23.0 7.5 – 9.5 R$ billion (CAGR 2012-18) EBITDA Margin 7.5 – 8,5 8.5 – 9.5 % CAPEX 600 – R$ million Free Cash Breakeven 600 – 850 R$ million Flow to to 100 Shareholders (2) Notes: (1) Revenues stated

  23. Slide 23: Final Remarks | Marfrig Group

    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 s

  24. Slide 24: Final Remarks | Marfrig Group

    Final Remarks| Marfrig Group  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.  Our Asia operation is well positioned to capture significant growth in the near future. Strong and experienced loc

  25. Slide 25: Final Remarks | Marfrig Group

    Final Remarks| Marfrig Group  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 Eur

  26. Slide 26: Disclaimer

    Disclaimer This material is a presentation of general information about Marfrig This presentation includes forward-looking statements. Such Global Foods S.A. and its consolidated subsidiaries (jointly the statements do not constitute historical fact and reflect the beliefs “Corporation”) on the date

  27. Slide 27: IR Contacts

    IR Contacts Address Telephone E-mail Website +55 (11) @ Avenida Chedid Jafet, 3792-8650 222 - Bloco A – 3º andar 3792-8600 ri@marfrig.com.br www.marfrig.com.br/ri 27 Focus to Win

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