Mbrf Global Foods Company S.a. · BMFBOVESPA:MBRF3
Mbrf Global Foods — Marfrig Global Foods — Merger or Acquisition (August 2018)
10 slides from Mbrf Global Foods's merger presentation, Aug 20, 2018
Slide 1: Keystone Transaction Conference Call
Keystone Transaction Conference Call August 20, 2018
Slide 2: Disclaimer
Disclaimer This material is a presentation of general information about Marfrig Global Foods S.A. and its consolidated subsidiaries (jointly the “Corporation”) on the date hereof. The information is presented in summary form and does not purport to be complete. No representation or warranty, either
Slide 3: The Transaction
The Transaction Sale of Keystone Foods to Tyson Foods ("Transaction"), except the beef patty facility in North Baltimore, Ohio, USA The retention of operations of the North Baltimore facility facility is in line with Marfrig’s strategy ▪ One of the largest U.S. plants with an annual capacity of 91,0
Slide 4: The Transaction: Rationale
The Transaction Rationale A simpler, more focused company with a capital structure appropriate to the sector ▪ Strengthens Marfrig's capital structure by reducing debt and improving cash generation ▪ The retention of the North Baltimore, Ohio facility is in line with Marfrig’s renewed strategy focus
Slide 5: Keystone: Track record of success
Keystone Track record of success US$ million +127 % ▪ Value of the company Beef patty increased by ~ 2.3x plant during Marfrig’s management ▪ Improving profitability with Tyson Transaction value generation ▪ Retention of the U.S. beef patty plant which Sale of the European assets to Moy Park represe
Slide 6: Debt and Leverage
Debt and Leverage (Basis 2Q18) after Transaction - 51% 16.3 7.0 4.2x 5.0x LTM EBITDA and Leverage 6.0 4.0x 5.0 2.6x 3.0x 3.9 NET DEBT (R$ billion and “x”) (R$ billion) 4.0 2.0x 7.9 3.0 3.0 1.0x (8.4) 2.0 0.0x 1.0 -1.0x US$ billion 4.2 (2.2) 2.1 0.0 -2.0x ** Net Debt 2Q18 Keystone Sale* Nebt Debt Aft
Slide 7: Marfrig after strategic projects
Marfrig after strategic projects R$ 3.7 billion R$ 40 billion EBITDA Adj* EV/EBITDA(a): 5.5x Net Revenue* EV : 20.2 R$ billion Debt after transaction: 7.9 (-) Minorities(b): 3.2 (-) R$ 9.0 billion MARKET CAP theoretical (=) * Annualized 2Q18 data (b) Based on the historical average transaction multi
Slide 8: Perspectives
Perspectives 2nd half 2018 Expectation of Marfrig's results is in line with its annual guidance: 2H18 Revenue (R$ billion) 20 to 21 Adj EBITDA Margin (%) 9 to 10% Leverage 2018: 2.2 to 2.5x The Brazilian company in the sector with the lowest leverage ratio Note: Assumes completion of Keystone's tran
Slide 9: Final Comments
Final Comments The Transaction represents another milestone in the execution of Marfrig's strategy, which is expected to increase shareholder value Consolidated production footprint in the Americas, with access to key consumer markets worldwide The outlook for the global animal protein industry rema
Slide 10: Q&A session
Q&A session Investor Relations www.marfrig.com.br/ir
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