apresentação de resultados q312 final en(1)
TRANSCRIPT
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Vigor Alimentos S.A.
Quarter Results Presentation – Q3’12
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This presentation contains forward-looking statements relating to the prospects of the business,
estimates for operating and financial results, and those related to growth prospects of Vigor
Alimentos. These are merely projections and, as such, are based exclusively on the expectations of
Vigor’s management concerning the future of the business and its continued access to capital to
fund the Company’s business plan. Such forward-looking statements depend, substantially, on
changes in market conditions, government regulations, competitive pressures, the performance of
the Brazilian economy and the industry, among other factors and risks disclosed in Vigor’s filed
disclosure documents and are, therefore, subject to change without prior notice.
Disclaimer
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Introduction
Quarterly Results
Strategic View
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Introduction
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Vigor: 94 years of growth in the Brazilian food market
Consumer
Employees 3,427
Net revenues – 9M12 R$ 978.7 MM / +8%1
Gross Profit – 9M12 R$ 281.4 MM / +25%1
Note: 1. Growth compared to same period last year.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vigor Today Main Brands
Food Service
EBITDA – 9M12 R$ 53.1 MM / +109%1
EBITDA Margin – 9M12 5.4% / +2.6 p.p.
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Resilient market with strong growth potential
Over 50% of total distribution through independent retailers
Vigor: strengths and competitive advantages
Brands with excellent reputation and high expansion potential
Experienced and independent management team, with solid corporate governance standards
Diversified portfolio with high value-added products
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Diversified portfolio with high value-added products
Note: 1. Dairy (yogurt, fermented milk, desserts and petit suisse, “requeijão” cheese spread, parmesan, special cheese, “minas” cheese, cream cheese, fondue and creams) / 2. Spreads (margarines, blend, butter, fats and mayonnaise) / 3. Milk: UHT milk and pasteurized / 4. Others (pastas, sauces, juices, chocolate milk and others).
Dairy1
Higher margins (%) Leading brands in categories Focus in innovation and product launching
Spreads2
High household penetration level Helps diversify the cost matrix Possible to add “brand” equity
UHT Milk3
Low volume Specific channels Margin under strict discipline
Others4
Juices, sauces, chocolate milk and others Total: R$ 978.7 million
Net Revenue – 9M12
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Consumer Food Service
Reference brands in the Consumer and Food Service segments
A / B / C National Brand
Yogurt / Cheese spread
B / C Regional Brand
UHT milk Butter
Chocolate milk
A / B National Brand
Parmesan cheese
A / B National Brand
Cheese / Dessert
A / B National Brand
Special cheese Non-sweet products
Business to Business Segmentation
Main products Pastry and basic
ingredients
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Quarterly Results
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Q3’12 Results Highlights
Volume of 92,4 thousand tons – (3,2%) vs. Q3’11 Volume w/oUHT Milk 2,0% higher in the quarter
Net Revenue of R$ 340,3 million, 4,9% higher than that of the Q3’11 Net Revenue w/oUHT Milk 8,1% higher than that of the Q3’11
Gross Profit of R$ 99,0 million, 29,7% higher vs. Q3’11 Gross Margin of 29,1%, 5,6 p.p. higher than the Q3’11 margins
Lower leverage with pre-payment of the Notes e decrease in the avg. cost of debt - Notes rate: USD+10,3% / Avg. cost of debt 8,7% (Q3’12) - Net Debt of R$ 31,9 million, equivalent to 0,44x LTM EBITDA
EBITDA of R$ 9,7 million, 22,7% above that of the Q3’11
(0,2)% 8,8%
7,5% 12,0%
24,5% 3.9 p.p.
n/a
108,9%
Quarterly Analysis 9M12
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Volume Performance
Growth per Category (Tons)
Volume (Tons)
Volume Q3’12 Q3’11 ∆ % 9M12 9M11 ∆ %
Dairy 33.144 32.201 2,9% 95.624 94.416 1,3%
Spreads 35.025 33.129 5,7% 105.126 87.474 20,2%
UHT Milk 14.782 19.351 -23,6% 44.411 63.419 -30,0%
Others 9.408 10.719 -12,2% 28.756 29.032 -0,9%
Total 92.360 95.400 -3,2% 273.916 274.340 -0,2%
(3,2)%
(0,2)%
2,0%
8,8% Excludes UHT Milk
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Net Revenues Performance
Growth per Category (R$ thousand)
Net Revenues (R$ thousand)
Net Revenues Q3’12 Q3’11 ∆ % 9M12 9M11 ∆ %
Dairy 184.097 173.848 5,9% 532.809 487.020 9,4%
Spreads 109.137 93.166 17,1% 304.164 249.099 22,1%
UHT Milk 25.452 33.325 -23,6% 75.148 103.471 -27,4%
Others 21.636 24.196 -10,6% 66.611 70.640 -5,7%
Total 340.323 324.535 4,9% 978.732 910.229 7,5%
4,9%
7,5%
8,1%
12,0% Excludes UHT Milk
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Net Revenues Breakdown
Net Revenues Breakdown per Segment (In %)
Net Revenues Breadown per Category (In %)
21.2% Food Service segment
growth 21.7%
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Gross Profit and EBITDA Performance
EBITDA and EBITDA Margin (R$ thousand and %)
Gross Profit and Gross Margin (R$ thuosand and %)
29,7%
24,5%
24.8%
28.7%
Δ = 3.9 p.p
23.5%
29.1%
Δ = 5.6 p.p
22,7%
108,9%
2.8%
5.4%
Δ = 2.9 p.p
2.4% 2.8%
Δ = 0.4 p.p
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SG&A Expenses
Highlights SG&A Expenses (R$ mil e %)
• Investment in marketing and trade marketing doubled compared to the 3Q11
• Increase of personnel costs, including key positions across several areas – Finance, Pricing, Quality Control, Monitoring –corporate governance structure (Officers and Board) and higher warehousing costs
23.6%
11.7%
Selling expenses
G&A expenses
SG&A 3Q12 3Q11 ∆ % 9M12 9M11 ∆ %
Selling 72.809 59.571 22,2% 188.125 172.305 9,2%
G&A 19.481 15.122 28,8% 51.097 41.865 22,1%
Total 92.290 74.693 23,6% 239.222 214.170 11,7%
74,693 92,290
214,170
239,222
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Net Debt (09/30/2012) – R$ million
Cash Flow from Operations1 supported Capex
Cash Flow and Leverage
1.Includes interests from Refis (tax installments) of R$ 3.8 million
Line Avg Rate Due Date Balance
Working Capital CDI + 2,5% a.a. 10/24/13 50,171
EGF 5,5% a.a. 05/03/13 40,222
Working Capital CDI+2,4% a.a 03/26/13 25,012
BNDES Automatic 11,4% a.a. 11/16/12 16,833
FCO 10,0% a.a. 05/02/14 1,450
Finame 7,0% a.a. 11/08/16 1,259
Total 134,947
Gross Debt Breakdown – R$ thousand
Net Debt Cash Gross Debt
Short-term:
70%
39,8
95,2
103,1
31,9
Begining Cash
Cash from Operations
Capex New Debt Debt Payment
Ending Cash
211,9
24,9 9,9
115,0 238,7
103,1
Cash Flow Q3’12 – R$ million
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Strategic View
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What we have done, and our next steps
Initiatives already implemented Next Steps
Strengthening of key brands
Actions taken
Growth of distribution network
Excellence in Management and Corporate Governance
State of art in Production processes
• Review of our go-to-market model
• Merchandising with dedicated team
• Meritocracy in management, with systematic KPI’s tracking
• Majority of Board of Directors members are independent
• People and Finance, Risks and Auditing committees
• Product-specific plants
• Capex in high potential growth categories
• Milk producers loyalty program
• Innovation and new product launching
• New media campaign
• New marketing communication aligned with new product positioning and pricing
• Phase out of non-core produtcts
• Beginning October 2012
• New management of trade marketing team
• Hiring of experienced managers
• Board oversight
• Capex of R$ 38.0 million in product line expansion
• Pay-for-quality program for milk producers
• Greek yogurt • Campaign “recall” SP/RJ • Increase in avg. price • Decrease fresh pasta
• Continue expanding geographic reach to other regions
• Keep investing in our people’s development
• Quality Certification guaranteed in every factory
• Higher productivity
• Launching of “funcionais” yogurts
• Constant innovation in our portfolio
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Our Vision
Big food Company, one of the biggest dairy companies in Brazil
Categories and Segments • Development of innovation according to seasonal waves
• Further development of Food Service segment
Geographic expansion • Improve our presence in markets close to core market (SP)
• Lower the company’s dependence of São Paulo market
Investment Plan • Increase in productive capacity, with continuous investments in key
product lines
EBITDA Margin • Continuously increase in margins to surpass historic levels
Capital Structure
• Increase stock liquidity
• Reduction of cost of capital
• Return on Invested Capital to shareholders Policy