1Q18 Earnings Presentation 1 Financial Highlights 1Q18 Financial - - PowerPoint PPT Presentation

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1Q18 Earnings Presentation 1 Financial Highlights 1Q18 Financial - - PowerPoint PPT Presentation

Dec 02, 2023 129 likes •265 views

1Q18 Earnings Presentation 1 Financial Highlights 1Q18 Financial Highlights Latest News Comparisons refers to 1Q17 Recent Developments R$1.0 billion Net Revenue ( -18.0%) Mai/2018 R$700 million Brazil Food Segment ( -24.8%)

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SLIDE 1

1

1Q18 Earnings Presentation

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SLIDE 2

1Q18 Financial Highlights

Comparisons refers to 1Q17¹

2

Financial Highlights

R$1.0 billion Net Revenue ( -18.0%)

R$700 million Brazil Food Segment ( -24.8%) R$304 million International Food Segment ( +3.2%)

R$263 million Gross Profit ( -11.5%)

26.2% Gross Margin ( +1.9pp)

R$82 million EBITDA ( -35.7%)

8.2% EBITDA Margin ( -2.2pp)

R$33 million Net Income ( -46.7%)

3.2% Net Margin ( -1.7pp)

Latest News

Recent Developments

¹Comparisons refer to results ended on Mai 31st 2017 (1Q17). We highlight the strong comparison basis during 1Q17 with record growth results in all categories

1.4x Net Debt/EBITDA ( -0,8pp) Mai/2018

  • National Truck Drivers´ Strike in Brazil

June/2018

  • Conclusion of 1st Share Buyback Program
  • Annual and Extraordinary Shareholders´ Meeting
  • f

Camil

  • Creation and Election of Fiscal Committee, Election of

Members of Board of Directors, Executive Offices and Management Committees

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SLIDE 3

3

Results Evolution 1Q18

Camil highlights sequential volume recovery growth compared to 4Q17 in Brazil

Brazil International Brazil International

Source: Company Source: Company

Operational Highlight (k tons) Financial Highlight – Net Revenue and Gross Margin Net Revenue Breakdown (%) Volume Breakdown (%)

Source: Company Source: Company

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4

Brazil Food Segment | Rice

Volume: 136 thousand tons

  • +6,0% vs. 4Q17
  • 18,8% vs. 1Q17

Raw material - average market prices: R$35,88 / bag¹

  • 1,8 vs. 4Q17
  • 10,7% vs. 1Q17

Gross Price Camil: R$2,27 / kg

  • 2,8 vs. 4Q17
  • 5,9% vs. 1Q17

Sequential volume recovery growth during this quarter

Source: Esalq Senar Source: Esalq Senar, Company

Rice – Brazilian Market (in R$/bag) Rice - Market vs. Camil’s prices Rice - Volume Evolution (k ton) Rice – Main Highlights

¹Source: CEPEA; Esalq/Senar-RS 50kg.

Source: Company

Rice 48% Beans 6% Sugar 44% Canned Fish 2%

Volume Breakdown Brazil 1Q18 (%)

Camil highlights sequential volume recovery growth compared to 4Q17 in Brazil

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Brazil Food Segment | Beans

Volume: 17 thousand tons

  • +4,8% vs. 4Q17
  • 16,0% vs. 1Q17

Raw material - average market prices: R$97,99 / bag¹

  • 0,9% vs. 4Q17
  • 34,0% vs. 1Q17

Gross Price Camil: R$3,28 / kg

  • +1,5% vs. 4Q17
  • 18,4% vs. 1Q17

Sequential volume recovery growth during this quarter

Source: Agrolink Source: Agrolink, Company

¹Source: Agrolink; Sc 60kg.

Source: Company

Rice 48% Beans 6% Sugar 44% Canned Fish 2%

Volume Breakdown Brazil 1Q18 (%)

Beans – Brazilian Market (in R$/bag) Beans - Market vs. Camil’s prices Beans - Volume Evolution (k ton) Beans – Main Highlights

Camil highlights sequential volume recovery growth compared to 4Q17 in Brazil

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6

Brazil Food Segment | Sugar

Volume: 123 thousand tons

  • +4,6% vs. 4Q17
  • 19,0% vs. 1Q17

Raw material - average market prices: R$53,49 / bag¹

  • 12,2% vs. 4Q17
  • 29,8% vs. 1Q17

Gross Price Camil: R$1,95 / kg

  • 7,7% vs. 4Q17
  • 17,6% vs. 1Q17

Sequential volume recovery growth during this quarter

Source: Esalq Senar Source: Esalq Senar, Company Source: Company

Rice 48% Beans 6% Sugar 44% Canned Fish 2%

¹Source: CEPEA; Cristal Sugar Esalq-SP 50kg. Volume Breakdown Brazil 1Q18 (%)

Sugar – Brazilian Market (in R$/bag) Sugar - Market vs. Camil’s prices Sugar - Volume Evolution (k ton) Sugar – Main Highlights

Camil highlights sequential volume recovery growth compared to 4Q17 in Brazil

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SLIDE 7

Volume: 5 thousand tons

  • 56,0% vs. 4Q17
  • 33,7% vs. 1Q17

Gross Price Camil: R$21,58 / kg

  • +3,2% vs. 4Q17
  • +19,0% vs. 1Q17

High Prices of sardine and tuna per kilo in Brazil when compared to

  • ther proteins

Challenging sardine and tuna fishing locally – import high levels FX Devaluation

7

Brazil Food Segment | Canned Fish

Source: Company Source: Company

We highlight FX devaluation combined with challenging sardine and tuna fishing in Brazil

Canned Fish - Volume Evolution (k ton) Canned Fish – Gross Price (in R$/kg) Canned Fish –Volume Breakdown Brazil (%) Canned Fish – Main Highlights

Source: Company

Rice 48% Beans 6% Sugar 44% Canned Fish 2%

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SLIDE 8

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International Food Segment

Chile Uruguai

Domestic Market Domestic Market Export Market

Peru

Volume: 86 Thousand tons

  • 39,9% vs. 4Q17
  • 24,9% vs. 1Q17

Gross Price in R$: 1,83

  • +9,0% vs. 4Q17
  • +25,9% vs. 1Q17

Source: Company Source: Company

International Performance – Quarterly Evolution (k ton) International – Volume Breakdown (%)

Price growth in local currency impacted by FX devaluation during the period

Uruguay 67% Chile 16% Peru 15% Argentina 2%

International – Operational Highlights Gross Price in US$:

  • +1,6% vs. 4Q17
  • +14,5% vs. 1Q17

Volume: 20 Thousand tons +11,9% vs. 4Q17 +8,8% vs. 1Q17 Gross Price in R$: 5,80

  • +11,2% vs. 4Q17
  • +19,1% vs. 1Q17

Gross Price in CLP:

  • +4,4% vs. 4Q17
  • +0,6% vs. 1Q17

Volume: 20 Thousand tons

  • 13,4% vs. 4Q17
  • 14,0% vs. 1Q17

Gross Price in R$: 4,31

  • +6,7% vs. 4Q17
  • +6,8% vs. 1Q17

Gross Price in SOL:

  • +1,3 vs. 4Q17
  • 2,3% vs. 1Q17
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FX Devaluation + Chile Sales Growth Sales and Admin Structure and Geographic expansion in Brazil Lower Sales Volume Uruguay and Peru Sales Commission reduction in Brazil Freight reduction 9

Consolidated Costs and Expenses

Sales Reduction and raw materials cost

Average Price R$35,88/bag¹

  • 10,7% vs. 1Q17

Average Price R$97,99/bag²

  • 34,0% vs. 1Q17

Average Price R$53,49/bag³

  • 29,8% vs. 1Q17

Rice Beans Sugar

Cost of Sales and Services SG&A EBITDA Food Segment Brazil (-51,0%)

Profitability reduction in Grains and Sugar Categories Caned Fish Sales decrease SG&A Increase Truck Driver´s Strike

Food Segment International (+14,2%)

Sales increase in Chile FX devaluation in the period

¹Source: CEPEA; Esalq/Senar-RS 50kg. ²Source: Agrolink; Bag 60kg. ³Source: CEPEA; Cristal Sugar Esalq-SP 50kg.

Statements (in R$ millions) 1Q18 4Q17 1Q17 1Q18 vs 1Q18 vs Closing Date 31-may-18 28-feb-18 31-may-18 4Q17 1Q17 Net Revenues 1.004,4 1.116,4 1.225,6

  • 10,0%
  • 18,0%

(-) Cost of Sales and Services (741,1) (831,5) (928,2)

  • 10,9%
  • 20,2%

Gross Profit 263,3 284,9 297,4

  • 7,6%
  • 11,5%

(-) Selling Expenses (134,1) (138,5) (133,4)

  • 3,2%

0,5% (-) G&A Expenses (68,9) (59,5) (61,5) 15,8% 12,0% (+/-) Equity (Earnings)/Losses in Uncons. Subs. (0,9) (0,6) (0,9) 59,6% 0,0% Other Operating Income (2,1) 9,8 4,5

  • 121,5%
  • 146,7%

EBIT 57,3 96,1 106,1

  • 40,4%
  • 46,0%

(+/-) Finacial Result (12,0) (13,0) (22,8)

  • 7,8%
  • 47,4%

Pre-Tax Income 45,3 83,1 83,3

  • 45,5%
  • 45,6%

(-) Total Income Taxes (12,7) (5,8) (22,1) 117,3%

  • 42,5%

Net Income 32,6 77,3 61,2

  • 57,8%
  • 46,7%

EBITDA Reconciliation Net Income 32,6 77,3 61,2

  • 57,8%
  • 46,7%

(+) Net Finacial Result 12,0 13,0 22,8

  • 7,8%
  • 47,4%

(+) Income Taxes 12,7 5,8 22,1 117,3%

  • 42,5%

(+) Depreciation and Amortization 24,7 23,2 21,3 6,5% 16,0% (=) EBITDA 82,0 119,3 127,4

  • 31,3%
  • 35,6%
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SLIDE 10

Debt (in R$mn) 1Q18 4Q17 1Q17 1Q18 vs 1Q18 vs Closing Date 31-may-18 28-feb-18 31-may-18 4Q17 1Q17 Total Debt 1.362,4 1.285,7 1.398,2 6,0%

  • 2,6%

Loans and financing 383,5 310,0 691,3 23,7%

  • 44,5%

Debentures 978,9 975,7 706,9 0,3% 38,5% Short Term 229,7 160,0 608,9 43,6%

  • 62,3%

Long Term 1.132,7 1.125,8 789,8 0,6% 43,4% Leverage Gross Debt 1.362,4 1.285,7 1.398,2 6,0%

  • 2,6%

Cash and Cash Equivalents + financial applications 758,3 714,7 323,9 6,1% 134,1% Net Debt 604,1 571,0 1.074 5,8%

  • 43,8%

Net Debt/EBITDA LTM 1,4x 1,2x 2,0x 0,2pp

  • 0,8pp

Net Financial Expenses -R$12mn (-47,4%)

Decrease of average Market tax rate (SELIC) Reduction of debt cost Reduction of leverage level 10

Financial Result and Indebtedness

Source: Company

Net Financial Expenses (in R$mn)

Liability Management: Debt cost reduction and better amortization profile

Indebtedness (in R$mn)

Source: Company

Debt Amortization Schedule (in R$mn)

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Profitability Evolution: Net Income, EBITDA and Margins

Even considering a challenging start of the year, we remain confident that 2018 results will reflect a new reality for the Company with volume recovery and positive results

Quarterly Profitability Evolution (in R$mn) Quarterly Profitability Evolution - Margins (%)

Source: Company Source: Company

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SLIDE 12

Luciano Quartiero Chief Executive Officer Flavio Vargas Chief Financial and IR Officer Investor Relations Phones: +55 11 3039-9238 +55 11 3039-9237 E-mail: ri@camil.com.br