[PPT] - 4Q17 Earnings Presentation May 24th 2018 1 Recent Developments PowerPoint Presentation

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4Q17 Earnings Presentation

May 24th 2018

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Recent Developments

Conclusion of R$168 million Agribusiness Receivables Certificate issuance

the Company concluded its R$168 million Agribusiness Receivables Certificate Issuance at a cost of 98% of the local Interbank Deposit Rate (DI) with a 4-year maturity tenor This transaction if part of the liability management program totaling R$973 million of CRA transactions in the past months at a cost lower than CDI

Share Buyback Program Approval

The Board of Directors approved the Company’s share buyback program to repurchase up to 5,8 million shares with the objective to minimize the dilution from the Stock Options Plan. The buyback program will end by June 12th, 2018

Approval of Interest on Equity Payment Distribution

Distribution on December 2017 of R$65 million IOE equivalent to R$0.1585 / share Latest News

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4Q17 Financial Highlights

Comparisons refers to 4Q16¹

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Financial Highlights

R$1.1 billion Net Revenue ( -11.6%)

R$767 million Brazil Food Segment ( -18.6%) R$349 million International Food Segment ( +9.1%)

R$4.7 billion Net Revenue ( -5.8%)

R$3.3 billion Brazil Food Segment ( -9.6%) R$1.3 billion International Food Segment ( +5.3%)

R$285 million Gross Profit ( +1.6%)

25.% Gross Margin ( +3.3pp)

R$1.2 billion Gross Profit ( -5.8%)

24.7% Gross Margin (stable vs. 2016)

R$119 million EBITDA ( +21.9%)

10.7% EBITDA Margin ( +2.9pp)

R$490 million EBITDA ( -10.5%)

10.5% EBITDA Margin ( -0.6pp)

R$77 million Net Income ( +286.6%)

6,9% Net Margin ( +5.3pp)

R$251 million Net Income ( +24.4%)

5.4% Net Margin ( +1.3pp)

2017 Financial Highlights

Comparisons refers to 2016¹

¹Comparisons refer to results ended on Feb. 28, 2017 (4Q16 and 2016)

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Brazil Food Segment | Rice

Mainstream

We reviewed our pricing strategy and our product’s composition to adjust the Company to a new market reality

Volume:

128.4 thousand tons on 4Q17 (-13.0%)
596.1 thousand tons on 2017 (-0.6%)

Raw material acquisition - average market prices:

R$36.61/bag on 4Q17 (-25.7%)
R$38.40/bag on 2017 (-18.6%)

Lower decrease in Camil’s gross prices vs. market prices:

R$2.33 on 4Q17 (-11.3%)
R$2.37 on 2017 (-8.3%)

Decrease in value priced brands volume Increase in Camil’s brand volume Rice Brazil – Market vs. Camil’s prices Rice prices – Brazilian Market (in R$/50kg)

Source: Esalq Senar Source: Esalq Senar, Company

Rice – Camil’s Portfolio Rice – Main Highlights

The reduction in gross prices was lower than the decrease of market prices, as a result of Camil’s strategy to preserve profitability and brand positioning in the market Value Brands

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Brazil Food Segment | Beans

Beans – Camil’s Portfolio Beans – Main Highlights

Beans value priced category: distribution similar to rice

Beans Brazil – Market vs. Camil’s prices Beans prices – Brazilian Market (in R$/60kg)

Source: Agrolink Source: Agrolink, Company

Volume:

16.4 thousand tons on 4Q17 (-14.9%)
72,4 thousand tons on 2017 (-4.7%)

Raw material acquisition - average market prices:

R$98.90/bag on 4Q17 (-40.9%)
R$132.13/bag on 2017 (-50.3%)

Lower decrease in Camil’s gross prices vs. market prices:

R$3.23 on 4Q17 (-22.9%); and
R$3.86 on 2017 (-31.9%).

Decrease in value priced brands volume Increase in Camil’s brand volume

The reduction in gross prices was lower than the decrease of market prices, as a result of Camil’s strategy to preserve profitability and brand positioning in the market Mainstream Value Brands

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Brazil Food Segment | Sugar

União: absolute leadership with greater perception of value translated in premium prices

Sugar – Camil’s Portfolio Sugar – Main Highlights Sugar Brazil – Market vs. Camil’s prices Sugar prices – Brazilian Market (in R$/50kg)

Source: Esalq Senar Source: Esalq Senar, Company

Volume:

118.0 thousand tons on 4Q17 (-5.9%)
541.3 thousand tons on 2017 (-2.2%)

Raw material acquisition - average market prices:

R$60.92/bag on 4T17 (-30.6%)
R$64.24/bag on 2017 (-25.4%)

Lower decrease in Camil’s gross prices vs. market prices:

R$2.11 on 4Q17 (-18.9%)
R$2.22 on 2017 (-12.5%)

Decrease in value priced brands volume Increase in Camil’s brand volume

The reduction in gross prices was lower than the decrease of market prices, as a result of Camil’s strategy to preserve profitability and brand positioning in the market Mainstream Value Brands

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Brazil Food Segment | Canned Fish

Continued challenge of sardine and tuna fishing in the Brazilian coast resulted in record levels of imports by the industry

Pescados Brasil - Volume de Vendas Camil

8,08 8,30 9,21 14,02 7,55 6,18 10,92 11,39 39,62 36,05

5 10 15 20 25 30 35 40 45

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016/17 2017/18

Canned Fish – Camil’s Gross Prices (R$/kg) Canned Fish – Camil’s Volume (‘000 ton)

Source: Company Source: Company

Canned Fish – Camil’s Portfolio Canned Fish – Main Highlights

Volume:

11.4 thousand tons on 4Q17 (-18.7%)
36.1 thousand tons on 2017 (-9.0%)

2017: Raw material reached record levels of imports Camil’s gross prices:

R$20.92 on 4Q17 (+22.9%)
R$19.42 on 2017 (+13.5%)

Improved industrial performance + efficiency gains from the canned fish operations concentration at Navegantes (SC)

Mainstream Value Brands

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International Food Segment

We continue to present a better operational performance: the combined effect of volume growth and price increase in local currency

ffset the exchange devaluation in each country we operate.

Chile Uruguay

Production mainly for domestic market Production mainly for domestic market Production mainly for export

Peru

Volume reached 143.2 thousand tons on 4Q17 (-7.6%) and 547.8 thousand tons (+3.4%) on 2017. Price in US$ per ton increased by 1.5% on 4Q17 and decreased by 2.8% on 2017. 4.3% dollar exchange devaluation Volume reached 18.3 thousand tons on 4Q17 (+3.7%) and 75.8 thousand tons (+4.8%) on 2017. Price in CLP per ton increased 3.7% on 4Q17 and 4.8%

n 2017.

0,2% Chilean peso exchange devaluation. Volume reached 22.8 thousand tons

n

4Q17 (+19.1%) and 94.1 thousand tons (+9.5%) on 2017. Price in PEN per ton decreased 8,2% on 4Q17 and 4,7% on 2017. 1,4% Peruvian soles exchange devaluation Operational Highlights - International International Operational Performance – Quarterly Evolution (‘000 ton) International Operational Performance – Annual Evolution (‘000 ton)

Source: Company Source: Company

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Consolidated Costs and Expenses

Cost of Sales and Services

decrease in cost of raw materials

R$36.61/bag on 4Q17 (-25.7%) R$38.40/bag on 2017 (-18.6%) R$98.90/bag on 4Q17 (-40.9%) R$132.13/bag on 2017 (-50.3%) R$60.92/bag on 4T17 (-18.9%) R$64.24/bag on 2017 (-12.5%)

Volume decrease International volume growth

SG&A

International expenses reduction Higher freight expenses Reduction on sales commissions

SG&A Evolution (% net revenues)

Source: Company

Rice Beans Sugar

Statements (in R$ millions) 4Q17 3Q17 4Q16 4Q17 vs 4Q17 vs 2017 2016 2017 vs. Closing Date 28-feb-18 30-nov-17 28-feb-17 3Q17 4Q16 28-feb-18 28-feb-17 2016 Net Revenues 1,116.4 1,159.2 1,262.4

3.7%
11.6%

4,663.0 4,947.8

5.8%

(-) Cost of Sales and Services (831.5) (873.2) (981.9)

4.8%
15.3%

(3,512.5) (3,726.6)

5.7%

Gross Profit 284.9 286.0 280.5

0.4%

1.6% 1,150.5 1,221.2

5.8%

(-) Selling Expenses (138.5) (129.6) (136.0) 6.9% 1.9% (543.6) (508.7) 6.9% (-) G&A Expenses (59.5) (58.5) (77.4) 1.7%

23.1%

(238.6) (256.0)

6.8%

(+/-) Equity (Earnings)/Losses in Uncons. Subs. (0.6) (0.9) 1.6

37.3%
135.0%

(1.9) 0.7

371.4%

Other Operating Income 9.8 8.7 8.2 12.5% 19.3% 33.2 3.2 937.5% EBIT 96.1 105.7 77.0

9.0%

24.9% 399.6 460.4

13.2%

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Financial Result

Net Financial Expense (in R$mn)

2017 Liability Management

Net Financial Expenses decrease Decrease of average market tax rate (SELIC) Net Debt reduction (-43.7%)

from R$1,014 million (feb/17) to R$571 milhões (feb/18)

Reduction of debt cost

R$973 million issuance of Agribusiness Receivables

Certificate over the past months at a remuneration interest lower than the Interbank Deposit Rate (DI). The Company concluded its important initiatives to improve its capital structure, including the reduction of the cost of debt and better amortization profile.

Source: Company

Statements (in R$ millions) 4Q17 3Q17 4Q16 4Q17 vs 4Q17 vs 2017 2016 2017 vs. Closing Date 28-feb-18 30-nov-17 28-feb-17 3Q17 4Q16 28-feb-18 28-feb-17 2016 EBIT 96.1 105.7 77.0

9.0%

24.9% 399.6 460.4

13.2%

(+/-) Finacial Result (13.0) (12.6) (39.3) 3.7%

66.9%

(74.4) (158.0)

52.9%

(-) Debt Interest Expense (33.6) (40.4) (62.3)

16.9%
46.0%

(181.1) (224.2)

19.2%

(+) Interest Income 20.6 27.9 23.0

26.1%
10.3%

106.7 66.2 61.2% Pre-Tax Income 83.1 93.1 37.6

10.7%

120.8% 325.2 302.4 7.5% (-) Total Income Taxes (5.8) (21.2) (17.7)

72.4%
66.9%

(74.5) (100.8)

26.1%

Net Income 77.3 71.9 20.0 7.5% 286.6% 250.7 201.6 24.4%

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Profitability Evolution: Net Income, EBITDA and Margins

Even in a challenging scenario Camil continues to reinforce its business model resiliency Annual Margin Evolution (%) Quarterly Margin Evolution (%) Annual Profitability Evolution (in R$mn) Quarterly Profitability Evolution (in R$mn)

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

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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