Slide 1: Earnings Release 1Q12
MARFRIG Earnings Release 1Q12
Slide 2: 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 Company according to its experience and the econ
Slide 3: 1Q12 Highlights
1Q12 Highlights Key Financial Highlights Net Revenue of R$5.23 billion, in line with the R$5.25 billion in 1Q11 Gross Income of R$803.3 million, increasing 10.2% from R$728.8 million in 1Q11 EBITDA of R$410.7 million, up 21.8% on R$337.3 million in 1Q11 Net Income of R$34.5 million, up 46.7% from R$
Slide 4: Marfrig: Global Structure
Marfrig: Global Structure Controlling BNDESPar Other Shareholder 14% 47% 39% Marfrig Alimentos S.A. Seara Seara Foods Foods Marfrig Beef* Poultry, Pork, Poultry, Pork and Processed Processed and Products Elaborated Beef, Lamb and Leather Brazil Argentina Uruguay Objective: generate synergies Obj
Slide 5: Marfrig's Strategy: Focus on Diversification and Value-Added Products
Marfrig’s Strategy: Focus on Diversification and Value-Added Products Transform and diversify the product mix to match protein consumption trends globally and in Brazil Revenue Breakdown by Segment (R$ million) 21,885 66.8% 33.2% Marfrig Beef (Beef, Lamb and Leather) 15,878 Seara Foods (Seara, Moy P
Slide 6: Marfrig Beef: Main Synergies from the Integration
Marfrig Beef: Main Synergies from the Integration 1 Management Logistics (maritime shipping) Single IT platform (ERP) Unified production plan 4 Critical Factors 2 Commercial Central bank actions Unified model for positioning concerning FX rate and SELIC brands Tax refunds for exporters M
Slide 7: Marfrig Beef: Beginning a Positive Cattle Cycle
Marfrig Beef: Beginning a Positive Cattle Cycle Brazilian Scenario Beef Production Brazil’s Beef Cattle Herd 12,000 11,353 220 211 11,000 210 Thousand tonnes 10,000 200 Million head 9,158 9,000 190 8,000 180 176 7,000 170 6,000 160 5,000 150 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sou
Slide 8: Marfrig Beef: Focus on Profitability
Marfrig Beef: Focus on Profitability Operations restarted at three Brazilian plants in 2Q12 Market share in beef exports – Brazil (1) Market share in cattle slaughtering – Brazil (2) 20.7% 5,482 5,390 5,463 5,141 15.5% 16.0% 14.3% 11.4% 251 9.9% 9.6% 191 8.4% 164 89 1Q09 1Q10 1Q11 1Q12 1Q09 1Q10 1Q1
Slide 9: Seara Foods: Overview
Seara Foods: Overview Comprises Seara (Brazil), Moy Park (Europe) and Keystone (Global – US/China) Main strategy: integrate companies and focus on customers Up to R$330 million in cost and revenue synergies over the next five years SEARA FOODS Renowned global Leading European Global food consu
Slide 10: Seara Foods: Seara Brasil Key Takeaways
Seara Foods: Seara Brasil Key Takeaways • Seara has a strategic plan to grow revenue and profits • 6 levers will enable this turnaround in performance 1) Accelerated shift in product mix towards higher-value processed products in Brazil 2) Focus on brand and product architecture and innovation effor
Slide 11: Seara Foods: Focus on Higher-Value Processed Products
Seara Foods: Focus on Higher-Value Processed Products SEARA market share in frozen meats – Brazil (1) SEARA market share in processed meats - Brazil (1) (%) (%) SEARA 17.3 SEARA 17.3 NEW BRANDS - TCD NEW BRANDS - TCD New Brands: New Brands: 8.3 Potential market 9.6 Potential market share gains of sh
Slide 12: Net Revenue Breakdown by Market
Net Revenue Breakdown by Market Net Revenue by Market (R$ million) 5,786.6 5,252.1 - 15.5% 5,232.5 Lower exports compared to 4Q11 are 1,987.8 1,895.7 1,680.2 explained by seasonality (historically the first quarter is the weakest of the year) and by impacts of high chicken 3,356.4 3,798.8 3,552.3 in
Slide 13: Consolidated Financial Highlights
Consolidated Financial Highlights COGS and COGS / Net Revenue SG&A and SG&A / Net Revenue (R$ million and %) (R$ million and %) 86.1% 11.0% 84.6% 10.4% 4,523.4 4,429.3 547.0 573.7 1Q11 1Q12 1Q11 1Q12 COGS COGS / Net Revenue SG&A SG&A / Net Revenue EBITDA and EBITDA Margin Net Income (R$ million and
Slide 14: Financial Highlights by Segment
Financial Highlights by Segment Marfrig Beef: Net Revenue Seara Foods: Net Revenue (R$ million) (R$ million) 1,923.8 3,495.2 1,737.3 3,328.4 1Q11 1Q12 1Q11 1Q12 Marfrig Beef: EBITDA and EBITDA Margin Seara Foods: EBITDA and EBITDA Margin (R$ million and %) (R$ million and %) 11.6% 6.0% 5.4% 8.2% 208
Slide 15: Liability Management
Liability Management Focus on managing long-term capital structure and debt profile Debt Maturity Breakdown (R$ Million) Short Term 2,340 Long Term 1,490 1,412 1,349 1,048 1,009 803 868 882 302 152 1 0 2Q12 3Q12 4Q12 1Q13 2013 2014 2015 2016 2017 2018 2019 2020 2021 Debt Profile Debt and Cash Breakd
Slide 16: Cash Flow and Operational Cash Generation
Cash Flow and Operational Cash Generation Net Income of R$34.5 million and pro-forma Net Debt/EBITDA reduction to 3.52 Simplified Cash Flow 1Q12 (R$ million) Operational Activities Net income in period 34.5 Items not affecting cash 389.4 Working capital changes - operating accounts (408.7) Other ass
Slide 17: CAPEX: Focus on Optimizing Operational Structure and Generating Results
CAPEX: Focus on Optimizing Operational Structure and Generating Results Focus on reducing and controlling investments Investments 1Q12 (In R$ million) Investments in Fixed Assets 189.5 Fixed 103.5 Breeding stocks 86.0 Investment in Intangible Assets 2.0 Total CAPEX 191.5 • For 2012, we continue to f
Slide 18: Final Message and 2012 Priorities
Final Message and 2012 Priorities Cost and expense reductions and improvements in working capital management Conservative debt profile Further increase share of higher-value products in the sales mix Optimize the global production platform Increase presence in food service market through Keystone Fo
Slide 19: Contacts – Investor Relations Department
Contacts – Investor Relations Department Ricardo Florence CFO and IRO Remi Kaiber Junior www.marfrig.com.br/ir 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