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

Mbrf Global Foods — Marfrig Global Foods — Q3 2013 Earnings Presentation

23 slides from Mbrf Global Foods's earnings presentation, November 2013

  1. Slide 1: 3Q13 Earnings

    FOCUS TO WIN 3Q13 Earnings 1 Focus to Win

  2. Slide 2: Consistency between Message/Delivery

    Consistency between Message/Delivery WHAT WE SAID WHAT WE’VE DONE WE’D DO IN 2013 AS OF 3Q13  Improve profitability in the  Return Marfrig Beef margins to Beef business over the coming the high single digits quarters  Adopt a strong commitment  Hold Marfrig Day event with to improving transparen

  3. Slide 3: 3Q13 Highlights

    3Q13 Highlights  Positive Operating Cash Flow (before Capex and Interest) of R$236 million, reversing the consumption of R$427 million in 2Q13  Net Revenue growth of 11% from 2Q13:  15% increase at Keystone driven by growth in Key Accounts in the Food Service segment in the United States and Asia

  4. Slide 4: Financial Performance | Consolidated: Net Revenue

    Financial Performance|Consolidated Net Revenue (R$ million) + 11% 4,944 Growth vs. 2Q13: 4,455  Keystone:  + 15% 4,375  Moy Park:  + 8%  Marfrig Beef:  + 10% 1Q13 1T13 2Q13 2T13 3Q13 3T13 4 Focus to Win

  5. Slide 5: Revenue by Business, Currency, Product and Protein

    Financial Performance|Consolidated Revenue by Business – 3Q13 Revenue by Currency – 3Q13 (%) (%) 25% 45% 13% 44% MARFRIG BEEF USD 21% EURO/POUND KEYSTONE REAL MOY PARK OTHER 30% 22% Revenue by Product – 3Q13 Revenue by Protein – 3Q13 (%) (%) 9% 51% 8% 50% FURTHER 39% PROCESSED BEEF FRESH POULTRY OTH

  6. Slide 6: Gross Profit & Gross Margin Breakdown by Business

    Financial Performance|Consolidated Gross Profit & Gross Margin Breakdown by Business (R$ million, %) (%) 2Q13 3Q13 22% 62% 21% 63% + 19% 16% 16% KEYSTONE MOY PARK MARFRIG BEEF 1Q13 2Q13 3Q13  Gross Profit growth of 19% at Marfrig Beef from 2Q13 driven by the 55% increase in fresh beef export volume

  7. Slide 7: SG&A & SG&A/Net Revenue Breakdown by Business

    Financial Performance|Consolidated SG&A & SG&A/Net Revenue Breakdown by Business (R$ million, %) (%) 2Q13 3Q13 27% 59% 29% 58% + 4% 14% 13% KEYSTONE MOY PARK MARFRIG BEEF 1Q13 2Q13 3Q13  Reduction of 50 bps from 2Q13 in SG&A expenses as a ratio of net revenue, reflecting the strategy to control exp

  8. Slide 8: Adjusted EBITDA & Margin Breakdown by Business

    Financial Performance|Consolidated Adjusted EBITDA & Adjusted EBITDA Margin Breakdown by Business (R$ million, %) (%) 2Q13 3Q13 52% 21% 54% 24% + 34% 25% 24% KEYSTONE MOY PARK MARFRIG BEEF 1Q13 2Q13 3Q13  Expansion of 130 bps in Adjusted EBITDA Margin from 2Q13 driven by:  190 bps increase at Marf

  9. Slide 9: Net Income (Loss)

    Financial Performance|Consolidated Net Income (Loss) (R$ million) 1Q13 2Q13 3Q13 3Q13* 3T13* 1T13 2T13 3T13 Adjusted Ajustado (60) (92) (194) (479) (60)% Income/Loss Net Income (Loss) Income Tax & before Net Income (Loss) (R$ million) Social Contribution Taxes 1Q13 (53) (7) (60) 2Q13 (714) 235 (479)

  10. Slide 10: 3Q13 vs. 3Q12

    Financial Performance |Consolidated 3Q13 vs. 3Q12 Net Revenue Gross Profit & Gross Margin (R$ million) (R$ million, %) + 15% 14.5% 11.9% 4,944 624 586 4,307 3Q12 3T12 3Q13 3T13 3Q12 3T12 3Q13 3T13 SG&A & SG&A/Net Revenue Adjusted EBITDA & Margin (R$ million) (R$ million, %) 7.5% 9.7% 6.9% 7.6% 418 3

  11. Slide 11: Liquidity & Debt | Consolidated

    Liquidity & Debt|Consolidated Debt (R$ million) Indicators 3Q13 12,997 Long Term Net Debt / LTM EBITDA 2.8 x Short Term Net Debt / Annualized 3Q13 11,097 4.4 x EBITDA 9,127 Net Debt / Total Assets 0.4 x 9,357 2,470 Cash and Eq. / Short Term 1.6 x 8,928 Debt 7,635 Current Liquidity (*) 2.02 6,658 Dur

  12. Slide 12: Maturity Schedule

    Liquidity & Debt|Consolidated Maturity Schedule (R$ million) Short Term: R$ 1.5 bn 2,470 2,409 1,503 1,516 1,052 848 370 524 457 304 45 92 8 Cash Caixa 4Q13 4T13 1Q14 1T14 2Q14 2T14 3Q14 3T14 4Q14 4T14 2015 2016 2017 2018 2019 2020 2021 Short Term Maturity Schedule, Pro-Forma (R$ million) 2,470 Bond

  13. Slide 13: Cash Flow | Operational Cash Flow before CAPEX & Interest

    Cash Flow|Consolidated Operational Cash Flow before CAPEX & Interest (R$ million) 1Q13 2Q13 3Q13 R$ million 1Q13 2Q13 3Q13 236 Op. Cash Flow (429) 223 35 Loans Seara 227 (250) Debt with BRF 201 (202) Advances to JBS (400) Real Op. Cash Flow (202) (427) 236 (427)  Positive Operating Cash Flow (befor

  14. Slide 14: Cash Flow Bridge – 3Q13

    Financial Performance|Consolidated Cash Flow Bridge – 3Q13 (R$ million) Net Income/ Exchange Financial Adjusted Net Items not Trade Inventories Trade Other Taxes Op. Cash Loss Variation Expenses Income/Loss affecting cash account account Flow bef. receivables payables Investments  Operating Cash Fl

  15. Slide 15: Moy Park 3Q13 Highlights

    Moy Park 3Q13 Highlights Net Revenue Adjusted EBITDA & Margin (R$ million) (R$ million, %) + 8% 6.4% 5.9% 5.9% 1,222 + 17% 1,132 1,038 78 61 66 1T13 1Q13 2T13 2Q13 3T13 3Q13 1T13 1Q13 2T13 2Q13 3T13 3Q13  Strong sales revenue growth in the Retail and Food Service segments in the United Kingdom, Ire

  16. Slide 16: Keystone 3Q13 Highlights

    Keystone 3Q13 Highlights Net Revenue Adjusted EBITDA & Margin (R$ million) (R$ million, %) + 15% 6.8% 6.4% 5.3% + 40% 95 82 68 1Q13 2Q13 3Q13 1T13 1Q13 2T13 2Q13 3T13 3Q13  Revenue growth is partially explained by the BRL depreciation in the period  Recovery in sales and Adjusted EBITDA from the p

  17. Slide 17: Marfrig Beef 3Q13 Highlights

    Marfrig Beef 3Q13 Highlights Net Revenue Adjusted EBITDA & Margin (R$ million) (R$ million, %) + 10% 10.6% 9.0% 7.1% + 39% 225 202 145 1Q13 2Q13 3Q13 1T13 1Q13 2T13 2Q13 3T13 3Q13  Export growth lift margins during a period marked by BRL depreciation  Better results in the Marfrig Beef operations

  18. Slide 18: Financial Targets | Marfrig Group Consolidated

    Financial Targets|Marfrig Group Consolidated GUIDANCE YTD % Achievement DIFFERENCE 9M13 % Achievement GUIDANCE 3Q13 2013 9M13 TO 4Q13 ANNUALIZED GUIDANCE 9M13 Revenue 18,500 13,774 74.4% 4,726 4,944 18,365 99.3% (R$ million) EBITDA Margin(1) 7.5 7.4 98.7% 7.7 7.6 7.4 98.7% (%) Note: (1) Excludes gai

  19. Slide 19: Closing Remarks | 3Q13

    Closing Remarks | 3Q13  Qualitative improvement in the Group's cash generation already in 3Q13  Higher margins and revenue growth at business units in 9M13  No significant debt maturities until 2017  Commitment to guidance and continuous alignment with the market  Focus to Win 19 Focus to Win

  20. Slide 20: Closing Remarks | 3Q13

    Closing Remarks | 3Q13 20 Focus to Win

  21. Slide 21: Closing Remarks | 3Q13

    Closing Remarks | 3Q13  The name Marfrig Global Foods aims to support our strategic goal of consolidating the group as a food company with a multinational profile  The new designs of the Group's logos reflect the improvement in cultural alignment and market positioning  The Moy Park name will lea

  22. Slide 22: Disclaimer

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

  23. Slide 23: 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 Remi Kaiber Junior remi.kaiber@marfrig.com.br IR Director Tel: +55 11 3792-8994 Fernando Senna fernando.senna@marfrig.com.br IR Coordinat

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