3Q18 Earnings Presentation 1 Disclaimer In this release, financial - - PowerPoint PPT Presentation

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3Q18 Earnings Presentation

In this release, financial data is presented in accordance to the International Financial Reporting Standards and represents the Company’s consolidated results in million reais (R$) referring to the third quarter of 2018 (3Q18 – September, October and November 2018). Comparisons refer to the second quarter results of 2018 (2Q18: June, July and August 2018; QoQ comparisons) and to the third quarter results of 2017 (3Q17 September, October and November 2017; YoY comparisons), unless otherwise indicated. The results here presented do not consider the acquisition of SLC Alimentos S.A., concluded by Camil in December 2018, except when specified. 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 informations. This presentation does not contain all of the relevant information about the Company.

Disclaimer

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December-2018

• Completion of SLC Alimentos Acquisition;
• Payment of IOE of R$45mm, payed on December 10th,

2018;

• Camil is the Company of the Year in As Melhores da

Dinheiro Rural 2018;

• Camil wins APAS Acontece Prize in the Commodities

category;

October-2018

• Adhesion to Rural Tax Regularization Program with total

amount of R$42.5mm, being R$5.7mm payed initially and R$36.8mm payable in monthly installments, equivalent to 0.3% of the monthly average of the gross profit;

• Exclusion of ICMS from assessment bases of PIS/COFINS,

with credit of R$38.1mm recorded in the quarter;

• R$84.5mn in IRPJ and CSLL tax credits over ICMS subsidy,

considering a 5 year retroactive effect to the Company;

• Acknowledgements as best IR by CEO/CFO and Best IR

Executive Small Cap by IR Magazine;

• Acknowledgements in the Food & Beverages Small Cap

category by Institutional Investor magazine.

R$150 million Net Income ( +109.0%)

11.9% Net Margin ( +5.7pp)

3Q18 Financial Highlights

YoY Comparisons

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Highlights

R$1.3 billion Net Revenue ( +9.3%)

R$857 million Brazil Food Segment ( +4.7%) R$409 million International Food Segment ( +20.3%)

Latest News

and subsequent events

¹Excluding non-recurring effects from other operating revenues the financial result

1.9x Net Debt/EBITDA R$320 million Gross Profit ( +11.9%)

25.3% Gross Margin ( +0.6pp)

R$151 million EBITDA ( +17.5%)

12.0% EBITDA Margin ( +0.8pp)

R$115 million EBITDA ( -10.4%)

9.1% EBITDA Margin ( -2.0pp)

R$72 million Net Income ( -0.2%)

5.7% Net Margin ( -0.5pp) Excluding the effect

• f

non-recurring revenues and expenses¹:

Camil reaches Gross Profit of R$320mm (+12% YoY) with Gross Margin of 25.3% in the quarter

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3Q18 Operating Performance

Sequential growth in sales volume in all categories, except for rice in Brazil

Source: Company

Historical Operating Performance (‘000 ton) 3Q18 Sales Volumes (‘000 ton) 2Q18 Volume and Revenue Breakdown (%)

Source: Company Source: Company

Volume Receita Líquida

International 179k +23.7% QoQ +1.1% YoY Canned Fish 10k +24.7% QoQ

• 7.3% YoY

Sugar 135k +1.8% QoQ +1.8% YoY Beans 20k +3.2% QoQ +25.0% YoY Rice 134k

• 17.9% QoQ
• 7.4% YoY

A

F

A P I 3Q18

Highlights 3Q17 2Q18 3Q18 3Q18 vs 3Q18 vs Volumes ('000 ton) 30-Nov-18 31-aug-18 31-nov-18 3Q17 2Q18 Volumes - Brazil Grains 160.4 182.2 153.7

• 4.2%
• 15.6%

Rice 144.3 162.7 133.6

• 7.4%
• 17.9%

Beans 16.1 19.5 20.1 25.0% 3.2% Sugar 132.3 132.3 134.7 1.8% 1.8% Canned Fish 10.9 8.1 10.1

• 7.3%

24.7% Volumes - International 177.2 144.8 179.1 1.1% 23.7% Uruguay 132.0 104.0 136.5 3.3% 31.2% Chile 19.4 19.9 20.4 5.6% 2.6% Peru 25.8 20.9 22.2

• 13.9%

6.4%

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Brazil Food Segment | Rice

Sales volume: 133.6 thousand tons

• 17.9% QoQ
• 7.4% YoY

Average raw material price : R$44.01/bag¹

• +5.5% QoQ
• +18.9% YoY

Gross price Camil: R$2.60/kg

• +4.5% QoQ
• +11.8% YoY

Average market price for rice in Nov-18 vs. Oct-18 decreased in -6.7%¹: Price reduction leads to a decrease in purchases by retail stores in Nov-18

Source: Company Source: Esalq Senar, Company

Challenging environment for rice sales in Brazil this quarter. The Company continues focused on volume recovery.

Rice – Camil’s Volume and Net Prices Rice – Market Prices vs. Camil’s Gross Prices Rice – Product Portfolio² Rice – Quarterly Highlights

¹Source: CEPEA; rice indicator Esalq/Senar-RS 50kg. ²After SLC Alimentos´ acquisition, the Company adds the following brands to it´s portfolio: Namorado, Butuí, Bonzão and Americano.

Source: Company

Mainstream Value pricing brands

Sales volume: 20.1 thousand tons

• +3.2% QoQ
• +25.0% YoY

Average raw material price: R$99.64/bag¹

• 2.1% QoQ
• 13.6% YoY

Gross price Camil: R$3.28/kg

• 2.2% QoQ
• 6.1% YoY

Remarks to sequential and annual sales recovery Camil and value pricing brands sales increase Mainstream

Value Pricing Brands

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Brazil Food Segment | Beans

Source: Company Source: Agrolink, Company

Sequential and annual volume growth

Beans - Camil’s Volume and Net Prices Beans - Market Prices vs. Camil’s Gross Prices Beans– Product Portfolio² Beans – Quarterly Highlights

¹Source: Agrolink; beans indicator Sc 60kg. ²After SLC Alimentos´ acquisition, the Company adds the following brands to it´s portfolio: Namorado e Butuí.

Source: Company

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Brazil Food Segment | Sugar

Sales volume : 134.7 thousand tons

• +1.8% QoQ
• +1.8% YoY

Average raw material price : R$64.27/saca¹

• +17.5% QoQ
• +12.8% YoY

Gross price Camil: R$2.09/kg

• 0.9% QoQ
• +0.1% YoY

Sequential and annual volume growth Cristal sugar and value pricing brands volume growth

Source: Company Source: Esalq-Senar; Company

Sequential and annual volume growth

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.

Mainstream Value Pricing Brands

Sales volume: 10.1 thousand tons

• +24.7% QoQ
• 7.3% YoY

Gross price Camil: R$20.04/kg

• 0.7% QoQ
• +5.6% YoY

Coqueiro sardines and tuna sales growth Sequential seasonal sales growth in the period before lent Brazilian coast continues to presente low fishing volume

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Brazil Food Segment | Canned Fish

Source: Company Source: Company

Sequential volume growth

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

Source: Company

Mainstream Value Pricing Brands

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International Food Segment

Chile Uruguay

Domestic Market Domestic Market Export Market

Peru

Sales volume: 136.5 thousand tons

• +31.2% QoQ
• +3.3% YoY

Gross price in R$: 2.12

• +5.7% QoQ
• +24.2% YoY

Source: Company Source: Company

International Operational Performance – Quarterly Evolution (‘000 ton)

International – Breakdown 3Q18 (%)

Sequential and annual volume growth

International - Main Considerations Gross price in US$/ton:

• +4.6% QoQ
• +2.5% YoY

Sales volume: 20.4 mil tons +2.6% QoQ +5.6% YoY Gross price in R$: 5.62

• 5.1% QoQ
• +10.8% YoY

Gross Price in CLP/ton:

• 1.5% QoQ
• 1.5% YoY

Sales volume: 22.2 mil tons +6.4% QoQ

• 13.9% YoY

Gross price in R$: 4.81

• +3.0% QoQ
• +22.3% YoY

Gross price in SOL/ton:

• +4.0% QoQ
• 3.8% YoY

Volume Net Revenue Sales recovery Profitability growth Political instability Uruguai 60% Chile 20% Peru 20% Uruguai 76% Chile 12% Peru 12%

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Financial Highlights

SG&A Other operating Revenues(Expenses)

R$231.1 million (+22.8% YoY) 18.2% of the Net Revenue Growth in SG&A Brazil (+22.0% YoY) with increase in freight expenses and exports; Increase in international SG&A (+24.6% YoY) due to Exchange rate depretiation; SG&A as a % of Net Revenue decreased in -1,6pp

• vs. 2Q18, due to the Company´s cost reduction

actions. R$38.8 million in other revenues and earnings from controlled subsidiary. R$36.0mm non-recurring revenues: +R$84.5mm in IRPJ e CSLL tax credits over ICMS subsidy with 5 year retroactive effect; +R$38.1mm in PIS/COFINS credits with exclusion of ICMS from the assessment bases;

• R$42.5mm due to the adhesion to Rural Tax

Regularization Program (Funrural);

• R$44.1mm in provision for losses of São Gonçalo (RJ)

industrial unit Despesas como % da Receita Líquida

3Q17 3Q18 3Q18 vs 3Q17 3Q18 3Q18 vs 3Q17 3Q18 3Q18 vs Closing Date 30-Nov-18 31-nov-18 3Q17 30-Nov-18 31-nov-18 3Q17 30-Nov-18 31-nov-18 3Q17 Net Revenues 818.9 857.5 4.7% 340.2 409.3 20.3% 1,159.2 1,266.8 9.3% (-) SG&A Expenses (626.3) (648.0) 3.5% (246.9) (298.9) 21.1% (873.2) (946.9) 8.4% Gross Profit 192.6 209.5 8.8% 93.3 110.4 18.3% 285.9 319.9 11.9% (-) SG&A (128.0) (156.2) 22.0% (60.1) (74.9) 24.6% (188.1) (231.1) 22.8% (+/-) Other operating income (expenses) and Equity (Earnings)/Losses in Uncons. 8.2 39.3 n.a. (0.4) (0.4) n.a. 7.8 38.9 n.a. EBIT 72.8 92.6 27.1% 32.8 35.1 6.9% 105.7 127.7 20.9% (+/-) Finacial Result (8.0) 22.7 n.a. (4.5) (3.9)

• 14.1%

(12.6) 18.8 n.a. Pre-Tax Income 64.8 115.3 77.9% 28.3 31.2 10.3% 93.1 146.5 57.3% Total Income Taxes (16.3) 8.0

• 149.1%

(4.9) (4.2)

• 14.2%

(21.2) 3.8

• 117.9%

Net Income 48.5 123.3 154.1% 23.4 27.0 15.4% 71.9 150.3 109.0% EBITDA 85.8 108.2 26.1% 43.1 43.2 0.3% 128.9 151.4 17.5% Margins Gross Margin 23.5% 24.4% 0.9pp 27.4% 27.0%

• 0.5pp

24.7% 25.3% 0.6pp EBITDA Margin 10.5% 12.6% 2.1pp 12.7% 10.6%

• 2.1pp

11.1% 12.0% 0.8pp Net Margin 5.9% 14.4% 8.5pp 6.9% 6.6%

• 0.3pp

6.2% 11.9% 5.7pp Consolidated Food Products International Result Statements Food Products Brasil

Net Financial Expenses of +R$18.8 million

(vs. -R$12.6mn YoY) R$41.5mm non-recurring revenues in monetary restatements from tax credits from IRPJ and CSLL of ICMS subsidy recognition and PIS and COFINS credits generated by the exclusion of ICMS from assessment bases; Compensated by R$19.4mm in expenses with interest over loans and financing. 11

Financial Result and Debt

Source: Company

Net Financial Result

Liability Management: Debt cost reduction

Debt (R$mn)

Source: Company

Debt Amortization Schedule (R$mn)

Debt (in R$mn) 3Q17 2Q18 3Q18 3Q18 vs 3Q18 vs Closing Date 30-nov-17 31-ago-18 31-nov-18 3Q17 2Q18 Total Debt 1,170.0 1,491.2 1,386.0 18.5%

• 7.1%

Loans and financing 360.1 512.8 404.3 12.3%

• 21.2%

Debentures 809.9 978.4 981.7 21.2% 0.3% Short Term 179.3 362.2 275.9 53.9%

• 23.8%

Long Term 990.7 1,129.0 1,110.1 12.1%

• 1.7%

Currency breakdown R$ 766.9 1,131.6 1,026.4 33.8%

• 9.3%

USD 216.0 216.8 216.8 0.4% 0.0% CLP 57.6 42.1 42.1

• 26.9%

0.0% PEN 129.5 100.7 100.7

• 22.2%

0.0% Leverage Gross Debt 1,170.0 1,491.2 1,386.0 18.5%

• 7.1%

Cash and Cash Equivalents + financial applications 426.5 666.1 461.4 8.2%

• 30.7%

Net Debt 743.5 825.1 924.6 24.4% 12.1% Net Debt/EBITDA LTM 1.6x 1.9x 1.9x 0.3x 0.0x

362.2 513.4 416.0 190.1 9.5 275.9 458.0 462.2 182.4 7.5 R$0 R$100 R$200 R$300 R$400 R$500 R$600 2019 2020 2021 2022 After 2022 ago-18 nov-18

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Profitability Evolution: Net Income, EBITDA and Margins

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

Source: Company Source: Company

3Q18 remarked by margins expansions YoY: gross margin (25.3%, +0.6pp YoY), EBITDA margin (12.0%, +0.8pp YoY); and net margin (11.9%, +5.7pp YoY)

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