1Q19 Earnings Presentation Disclaimer The following material - - PowerPoint PPT Presentation

1Q19 Earnings Presentation

The following material presents the results for the first quarter of 2019 (1Q19 – March, April and May 2019). In this presentation, financial data is presented in accordance to the International Financial Reporting Standards and represents the Company’s consolidated results in million reais (R$) with comparisons referring to the first quarter of 2018 (1Q18 – March, April and May 2018; YoY comparison) and to the fourth quarter of 2018 (4Q18 – December, January and February 2019; QoQ comparison), except when otherwise specified. Results here presented contemplate the results of SLC Alimentos as of the acquisition´s conclusion on December 3rd, 2018. This presentation contains resumed information which shall not be considered complete. This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. Certain percentages and other amounts included in this document have been rounded to facilitate its presentation. Thus, numbers presented as total in some tables may not represent the arithmetic sum of the numbers that precede them and may differ from those presented in the financial statements. Operational data are not audited, as they consist in measures which are not recognized by IFRS or other accounting standards. Nor this presentation, neither anything here contained, should create basis for any contract or commitment. All information here contained are subject to adjustments and revisions without notice. By creating this presentation, neither the Company, nor any of it´s affiliated companies, directors, executives or employees assume any obligation to supply the receiver access to any additional information, update this presentation or any information, or correct any inaccuracy in any of these information. This presentation does not contain all of the relevant information about the Company.

Disclaimer

2

June-2019

• Payment of R$21mm in IOE, R$6mm approved in

Shareholders’ Meeting and R$15mm approved by the Board of Directors;

May-2019

• Top of Mind Prize (RS) for Namorado and União brands,

promoted by Amanhã magazine

• Camil wins three trophies in EMBANEWS Prize 2019 for
• packagings. Packagings for Arroz Camil Minuto Caseiro

(Design category), Camil and Camil Gourmet product lines (Marketing category) were acknowledged

April-2019

• We concluded the 8th debentures issuance (CRA) of

R$600 million, in two series with maturities in 2023 and 2025;

• 2nd Share Buyback Program to be used in executives

remuneration plans through the means of stock options;

R$50 million Net Income ( +52.8%)

4.0% Net Margin ( +0.8pp)

1Q19 Financial Highlights

YoY Comparisons

3

Highlights

R$1.2 billion Net Revenue ( +23.2%)

R$942 million Brazil Food Segment ( +34.4%) R$296 million International Food Segment ( -2.8%)

Latest News

and subsequent events

2.2x Net Debt/EBITDA

Quarter highlights includes volumes increase in grains, sugar and canned fish categories

• f +37.4%, +11.4% and +40.6% YoY, respectively.

R$287 million Gross Profit ( +8.9%)

23.2% Gross Margin ( -3.0pp)

R$83 million EBITDA ( +1.2%)

6.7% EBITDA Margin ( -1.5pp)

4

Main Indicators

Camil reaches Net Revenue of R$1.2 billion (+23.2% YoY) in the quarter

1 SLC Alimentos´ Results consolidated as of the conclusion of the acquisition (December 3, 2018). 2 Information on International Volume exclude La Loma, Argentinian subsidiary with 100% of Camil´s participation sold in 2Q18.

Source: Company

Highlights 1Q18 4Q18 1Q19 1Q19 vs 1Q19 vs Closing Date 31-may-18 28-Feb-19 31-may-19 1Q18 4Q18 Net Revenues 1,004.4 1,332.0 1,237.1 23.2%

• 7.1%

Food Products Brasil 700.4 987.6 941.5 34.4%

• 4.7%

Food Products International 304.0 344.4 295.6

• 2.8%
• 14.2%

Gross Profit 263.3 322.4 286.8 8.9%

• 11.0%

Gross Margin (%) 26.2% 24.2% 23.2%

• 3.0pp
• 1.0pp

EBITDA 82.0 115.2 83.0 1.2%

• 28.0%

EBITDA Margin (%) 8.2% 8.6% 6.7%

• 1.5pp
• 1.9pp

Net Income 32.6 100.3 49.8 52.8%

• 50.3%

Net Margin (%) 3.2% 7.5% 4.0% 0.8pp

• 3.5pp

Capex 26.5 295.3 29.9 12.8%

• 89.9%

Operational Highlights - Volume (in thousand ton) Volume - Brazil Grains 153.3 221.2 210.6 37.4%

• 4.8%

Rice 136.1 197.7 187.2 37.6%

• 5.3%

Beans 17.2 23.5 23.3 35.7%

• 0.5%

Sugar 123.4 135.2 137.5 11.4% 1.7% Canned Fish 5.0 12.0 7.0 40.6%

• 41.1%

Volume - International 125.9 170.6 110.6

• 12.1%
• 35.2%

Uruguay 86.0 131.0 69.4

• 19.3%
• 47.0%

Chile 20.4 18.6 20.5 0.5% 10.2% Peru 19.5 21.0 20.7 6.2%

• 1.4%

5

Operational Highlights

1Q19 Volume and Revenue Breakdown (%)

Growth of 14.3% in the quarterly consolidated volume YoY, driven by the growth in volumes of all categories in Brazil, partially impacted by international volume reduction in the period

+14.3% YoY

Canned Fish 7k +40.6% YoY

• 41.1% QoQ

Sugar 138k +11.4% YoY +1.7% QoQ Beans 23k +35.7% YoY

• 0.5% QoQ

Rice 187k +37.6% YoY

• 5.3% QoQ

A

F

A P I International 110.6k

• 12.1% YoY
• 35.2% QoQ

1Q19 Sales Volumes (‘000 ton) Volume Net Revenue

• 13.6% QoQ

Source: Company Source: Company Source: Company Source: Company

1Q19

Quarterly Volume Evolution (k ton)

Highlights 1Q18 4Q18 1Q19 1Q19 vs 1Q19 vs Volumes ('000 ton) 31-may-18 28-Feb-19 31-may-19 1Q18 4Q18 Volumes - Brazil Grains 153.3 221.2 210.6 37.4%

• 4.8%

Rice 136.1 197.7 187.2 37.6%

• 5.3%

Beans 17.2 23.5 23.3 35.7%

• 0.5%

Sugar 123.4 135.2 137.5 11.4% 1.7% Canned Fish 5.0 12.0 7.0 40.6%

• 41.1%

Volumes - International 125.9 170.6 110.6

• 12.1%
• 35.2%

Uruguay 86.0 131.0 69.4

• 19.3%
• 47.0%

Chile 20.4 18.6 20.5 0.5% 10.2% Peru 19.5 21.0 20.7 6.2%

• 1.4%

6

Brazil Food Segment | Rice

Sales Volume: 187.2 thousand tons +37.6 % YoY

• 5.3% QoQ

Average raw material price¹: R$41.77/bag +16.4% YoY

• 4.21% QoQ

Gross Price Camil: R$2.41/kg +6.0% YoY

• 2.2% QoQ

Source: Company Source: Esalq Senar¹, Company

We highlight increase in volumes in 1Q19 (YoY)

Rice – Camil’s Volume and Net Prices Rice – Market Prices vs. Camil’s Gross Prices Rice – Product Portfolio Rice – Quarterly Highlights

¹Source: CEPEA; rice indicator Esalq/Senar-RS 50kg.

Source: Company

Sales volume loss in SLC Alimentos after the incorporation Increase in Market competitiveness and struggle to transfer cost increases to prices Mainstream Value pricing

brands

7

Brazil Food Segment | Beans

Source: Company Source: Agrolink, Company

We highlight increase in volumes in 1Q19 (YoY)

Beans - Camil’s Volume and Net Prices Beans - Market Prices vs. Camil’s Gross Prices Beans– Product Portfolio

¹Source: Agrolink; beans indicator Sc 60kg

Source: Company

Sales volume: 23.3 thousand tons +35.6% YoY

• 0.5% QoQ

Average raw material price: R$256.40/bag +161.7% YoY +34.2% QoQ Gross price Camil : R$5.06/kg +54.1% YoY +9.5% QoQ Positive performance with adjusted pricing strategy, ensuring profitability and consistency of results Beans – Quarterly Highlights Mainstream Value Pricing Brands

8

Brazil Food Segment | Sugar

Source: Company Source: Esalq-Senar; Company

We highlight increase in volumes in 1Q19 (YoY)

Sugar - Camil’s Volume and Net Prices Sugar - Market Prices vs. Camil’s Gross Prices Sugar – Product Portfolio Sugar – Quarterly Highlights

Source: Company

¹Source: CEPEA; Cristal Sugar indicator Esalq-SP 50kg. Parceria União & Amyris Adoçante Natural

P&D Sales volume: 137.5 thousand tons +11.4% YoY +1.7% QoQ Average raw material price¹: R$68.49/bag +28.0% YoY

• 0.2% QoQ

Gross price Camil: R$1.98/kg +1.4% YoY

• 2.0% QoQ

Sales increase in União refined sugar and value pricing brands Increase in Market competitiveness and struggle to transfer cost increases to prices Mainstream Value Pricing Brands

9

Brazil Food Segment | Canned Fish

Source: Company

We highlight increase in volumes in 1Q19 (YoY)

Canned Fish - Camil’s Volume and Net Prices Canned Fish - Camil’s Gross Prices Canned Fish – Product Portfolio Canned Fish – Quarterly Highlights

Source: Company

Sales volume: 7 thousand tons +40.6% YoY

• 41.1% QoQ

Gross price Camil: R$20.52/kg

• 4.9% YoY

+1.1% QoQ Sales increase in Coqueiro and value pricing brand Pescador Supply: continued struggle in local sardines fishing and improvement in local tuna fishing

Source: Company

Mainstream Value Pricing Brands

10

International Food Segment

Chile Uruguay Peru

Source: Company Source: Company

International Operational Performance – Quarterly Evolution (‘000 ton)

We highlight volumes increase in Chile, sales recovery in Peru and volumes reduction in Uruguay

International - Main Considerations

By Country By Segment

Sales volume: 69.4 thousand tons

• 19.3% YoY
• 47.0% QoQ

Gross price in R$: 1,95

• +6.5% YoY
• +7.8% QoQ

Sales volume: 20.5 thousand tons +0.5% YoY +10.2% QoQ Gross price in R$: 5,76

• 0.7% YoY
• +8.3% QoQ

Good profitability preservation Gross Price in CLP/ton:

• +90.3% YoY
• +107.0% QoQ

Sales volume: 20.7 thousand tons +6.2% YoY

• 1.4% QoQ

Gross price in R$: 4.90

• +13.7% YoY
• +4.3% QoQ

Gross price in SOL/ton:

• +1.9% YoY
• +0.0% QoQ

Sales recovery Gross price in US$/ton:

• 5.5% YoY
• +4.2% QoQ

Production decrease

Domestic Market Domestic Market Export Market

International – Breakdown 1Q19 (%)

SG&A

11

Financial Highlights

Cost of sales and services

R$950.3 million (+28.2% YoY) 76.8% of Net Revenue SLC Alimentos incorporation; Sales increase in all categories in Brazil; Increase in raw material costs; Partially offset by fall in International segment driven by volume decrease in.Uruguay. Gross Margin of 23.2% (-3.0pp): reflects the struggle of transfering raw material cost increase to prices. R$238,5 million (+17.5% YoY) 19,3% of Net Revenue Growth of SG&A Brazil (+23.5% YoY): Increase in freights and sales comissions (+ volume); SLC Alimentos incorporation; Reduction in consultancies (cost decrease) and rentals (IFRS 16 impact). Growth in International SG&A (+2.4% YoY): Currency Effect (R$4.0 million); Increase in sales force in Peru; SG&A reduction in Uruguay. EBITDA Margin of 6.7% (-1.6pp): reflects the struggle of transfering raw material cost increase to prices and increase in SG&A

1Q18 1Q19 1Q19 vs 1Q18 1Q19 1Q19 vs 1Q18 1Q19 1Q19 vs Closing Date 31-may-18 31-may-19 1Q18 31-may-18 31-may-19 1Q18 31-may-18 31-may-19 1Q18 Net Revenues 700.4 941.5 34.4% 304.0 295.6

• 2.8%

1,004.4 1,237.1 23.2% (-) SG&A Expenses (522.9) (739.3) 41.4% (218.2) (211.0)

• 3.3%

(741.1) (950.3) 28.2% Gross Profit 177.5 202.2 13.9% 85.8 84.6

• 1.4%

263.3 286.8 8.9% (-) SG&A (145.1) (179.2) 23.5% (57.9) (59.3) 2.4% (203.0) (238.5) 17.5% (+/-) Other operating income (expenses) and Equity (Earnings)/Losses in Uncons. Subs. (1.1) 0.7

• 160.8%

(1.9) 0.3

• 115.8%

(3.0) 1.0

• 133.3%

EBIT 31.3 23.7

• 24.3%

26.0 25.6

• 1.5%

57.3 49.3

• 14.0%

(+/-) Finacial Result (8.8) (10.1) 14.6% (3.2) (0.7)

• 78.1%

(12.0) (10.8)

• 10.0%

(-) Debt Interest Expense (34.2) (44.9) 31.3% (8.4) (5.7)

• 32.1%

(42.6) (50.6) 18.8% (+) Interest Income 25.4 34.8 37.1% 5.2 5.0

• 3.8%

30.6 39.8 30.1% Pre-Tax Income 22.5 13.6

• 39.5%

22.8 24.9 9.2% 45.3 38.5

• 15.0%

Total Income Taxes (5.9) 17.1

• 389.4%

(6.8) (5.8)

• 14.7%

(12.7) 11.3

• 189.0%

Net Income 16.6 30.7 84.9% 16.0 19.1 19.4% 32.6 49.8 52.8% (=) EBITDA 47.4 45.7

• 3.6%

34.6 37.3 7.8% 82.0 83.0 1.2% Margins Gross Margin 25.3% 21.5%

• 3.9pp

28.2% 28.6% 0.4pp 26.2% 23.2%

• 3.0pp

EBITDA Margin 6.8% 4.9%

• 1.9pp

11.4% 12.6% 1.2pp 8.2% 6.7%

• 1.5pp

Net Margin 2.4% 3.3% 0.9pp 5.3% 6.5% 1.2pp 3.2% 4.0% 0.8pp Food Products Brazil Food Products International Consolidated Result Statements

Debt (in R$mn) 1Q18 4Q18 1Q19 1Q19 vs 1Q19 vs Closing Date 31-may-18 28-Feb-19 31-may-19 1Q18 4Q18 Total Debt 1,362.4 1,429.0 2,022.7 48.5% 41.5% Loans and financing 383.5 448.9 445.1 16.1%

• 0.8%

Debentures 978.9 980.1 1,577.6 61.2% 61.0% Short Term 229.7 514.1 539.2 134.7% 4.9% Long Term 1,132.7 914.7 1,483.6 31.0% 62.2% Currency breakdown R$ 1,033.1 1,170.5 1,744.5 68.9% 49.0% USD 113.9 142.2 168.9 48.3% 18.8% CLP 23.3 7.2 7.8

• 66.5%

8.3% PEN 115.4 109.1 101.5

• 12.0%
• 7.0%

Leverage Gross Debt 1,362.4 1,429.0 2,022.7 48.5% 41.5% Cash and Cash Equivalents + financial applications 758.3 396.7 965.7 27.4% 143.4% Net Debt 604.1 1,032.3 1,057.0 75.0% 2.4% Net Debt/EBITDA LTM 1.2x 2.1x 2.2x 0.9x 0.0x

Net financial expenses of -R$10.8 million

(vs. -10.0% YoY) Increase in expenses with interest over loans and financing and expenses with derivatives totaling R$8.7 million; Descrease in expenses with exchange and monetary rate variation of R$10.2 million 12

Financial Result and Debt

Source: Company

Net Financial Result Debt (R$mm)

Source: Company

Debt Amortization Schedule (R$mm)

Liability Management: Debt cost reduction

13

Quarterly Profitability Evolution (in R$mn) Quarterly Margin Evolution (%)

Source: Company Source: Company

1T19 marked by reduction in gross margin (23.2%, -3.0pp YoY) and EBITDA margin (6.7%, -1.5pp YoY), with increase in net margin (4.0%, +0.8pp YoY)

Profitability Evolution: Net Income, EBITDA and Margins

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