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Institutional Presentation
This presentation may contain forward-looking statements which are inherently difficult to predict. Actual results could
differ materially for a variety of reasons. Forward-looking statements speak only as of the date they are made and the
Company does not assume any obligation to update them in light of new information or future developments.
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.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability
of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own
judgment.
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.
Disclaimer
2
I. Camil Alimentos Overview
II. Key Investment Thesis
III. Key Takeaways
Appendix
A. Financial Highlights
B. Industry Highlights
Table of Contents
Section I
Camil Alimentos Overview
5
Purpose and Values
We believe that each person can make a difference in others lives and we exist to nurture
relationships that bring more flavor to the everyday life.
Our Purpose
Our Values
TrustWe honor our commitments with seriousness and discipline. We value transparency in our relationships, and
for that, we aim to gain respect and trust.
EntrepreneurshipWe believe in those who dream with the effort and courage of who realize their dreams. This is the driving
force for entrepreneurship and growth with profitability.
EnthusiasmWe express joy, vitality and energy in our everyday life.
Therefore, we inspire people.
ResponsibilityWe prioritize ethics and high quality standards in everything we do. This way we seek to ensure the
sustainability of our business and of the environment, going beyond results.
ProximityWe build strong partnerships as a way of establishing deep lasting relationships with all stakeholders:
consumers, customers, employees and suppliers.
6
Camil’s IPO
Camil successfully completed its Initial Public Offering on September 2017
Ownership Structure IPO Highlights
Camil is listed on B3’s
Novo Mercado segment, the highest level
of corporate governance
R$9.00 / sharePriced on September 26, 2017
41.0 million ONs Primary Offering
86.5 million ONsSecondary Offering
R$1.2 billionOffering Size
R$357.0 millionNet proceeds from Primary Offering
As of November, 2018
Camil Investimentos
56%
Warburg Pincus9%
Management and controlling
shareholders5%
Treasury stocks
1%
Free float29%
Leading position in all operating markets
– #1 processor and distributor of rice in Brazil (Camil brand)
– #1 processor and distributor of rice in Uruguay (Saman brand)
– #1 processor and distributor of rice in Chile (Tucapel brand)
– #1 processor and distributor of rice in Peru (Costeño brand)
– #1 player in refined sugar in Brazil (União brand)
– #1 player in the canned sardine and #2 in the canned tuna market
in Brazil (Coqueiro and Pescador brands)
23 processing facilities and 18 distribution centers distributed throughout
LatAm, with operations in 4 countries
Reaches more than 20,000 direct and 285,000 indirect sales points in
Brazil
Exports to more than 50 countries
7
Camil at a Glance
Founded in 1963, Camil is a leading food company in Latin America with a diversified portfolio
of several brands in rice, beans, sugar and canned fish
Notes:
(1) Santa Cruz plant produces both rice and sugar
(2) Considers both plants operated by Raízen
(3) Shareholder Structure ended on September, 2018
(4) Includes the participation of Quartiero’s as individual holders
(5) Excludes shares on treasury and related parties (1.5%) and includes Franklin Templeton’s shares
(Uruguay)
(Chile)
(Peru)
Rice Processing Facilities: 21 (81
in Brazil)
Fish Processing Facilities: 2
Sugar Packaging Facilities: 41,2
Distribution Centers: 18 (8 in Brazil)
Rice Producing Regions
Beans Producing Regions
Camil
Investimentos4
Free Float
60.6% 8.6% 5.1% 29.3%
LTM
2015 2016 2017 2Q17 2Q18
Net Revenues 4,229 4,948 4,663 4,926 4,426
Growth YoY 15.0% 17.0% -5.8% n.a. -10.2%
Gross Profit 1,034 1,221 1,151 1,154 1,150
Margin 24.5% 24.7% 24.7% 23.4% 26.0%
EBITDA 423 547 490 485 465
Margin 10.0% 11.1% 10.5% 9.8% 10.5%
Net Income 111 202 251 189 261
Margin 2.6% 4.1% 5.4% 3.8% 5.9%
Net Debt 998 1,014 571 1,215 825
Net Debt / EBITDA 2.4 x 1.9 x 1.2 x 2.5 x 1.8 x
Highlights Processing and Distribution Platform
Shareholder Structure³ (%) Financial Highlights (R$mn)
Leadership positioning in all segments and countries in which it operates, Camil is one of the largest food companies in LatAm
Foundation, in the city
of Itaqui-RS
1963
Pioneer in distributing
packed rice (migration
from rice in bulk)
1974
Inauguration of the
distribution center in SP
1975
Beans
commercialization
1987
Acquisition of SAMAN
Brazil in Pernambuco
2001
Acquisition of Camaquã
plant in RS
2002
Logistics expansion: new
subsidiaries in North and
Northeast regions
2005
Acquisition of
in Uruguay
2007
Acquisition of Rio
Grande plant
20082009
Acquisition of
in Chile
Acquisition of the brand
Bom Maranhense
2010 2011 2012 2014
Acquisition of
in Peru
60’s: Foundation 80’s: Organic Expansion 90’s: Professionalization
2000’s: Acquisitions / International Expansion
8
Timeline
2017
Camill’s
IPO
2017: IPO
Acquisition of canned fish
and Costeño
Acquisition of sugar
category
2013
Acquisition of
in Argentina
Present for more than 50 years in the Brazilian everyday life, Camil grew in South America grains segment and expanded its portfolio
into new categories
FishSugar
Grains - InternationalGrains - Brazil
9
Complementary product portfolio composed of high value
added items
Value addedBiscuits
Core
Main products across the segments that Camil operates
Notes:
(1) Market shares referring to total Camil Company brands; (2) Company’s market share in the Rice Market only Nielsen Retail Index Apr18-May18
(3) Nielsen Retail Index – Apr17 - Mar18; (4) Comisión Sectorial del Arroz – Mar17 - Feb18. Local Internal Market Share. Export Market Share is 48% (#1 player)
(5) Nielsen Chile – Jan18 - Ago18; (6) Top of mind – Sugar Kantar Nov16 / Rice and Fish Ipsos Nov17; (7) Kantar Worldpanel Peru – Apr17 - Mar18
Grains Sugar Fish
Brazil1 Uruguay Chile Peru
Grains
Sardine
Top of
Mind6
60% 84%47% Sardine
37% Tunan.a. 50% 72%
Facilities
(# plants)8 4 2 7 2 3
Diversification across 3 products categories
10
EBITDA
LTM 2Q18
(Aug-18)
R$172 mm
(37% of total)
R$293 mm
(63% of total)
Brands
Market Share
2nd
40.1%3
2nd
21.5%3
1st
7.1%2
1st
33.0%3
Tuna
2nd
40.5%4
1st
32.2%5
1st
49.1%7
Fish
Net Revenue
LTM 2Q18
(Aug-18)
R$1.3 bn
(30% of total Camil)
R$3.1 bn
(70% of total Camil)
49%
of total Brazil
32%
of total Brazil
19%
of total Brazil
Business Divisions Overview
58 71
56 74
137 124
105 111
202
251 261
3.8%
5.4%
4.0% 4.1%
4.9%
3.5%
2.9%2.6%
4.1%
5.4%
5.9%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
Net Income Net Margin
169
123142
209
315
375 361
423
547
490465
11.1%
9.4%
10.1%
11.7%11.3%
10.5%
9.8% 10.0%
11.1%
10.5% 10.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
EBITDA EBITDA Margin
2,640 2,601 2,935
3,683 3,331 3,087
942 1,075
1,294
1,265 1,332
1,338
3,582 3,676
4,229
4,948 4,663
4,426
24.5%
23.2%
24.5% 24.7% 24.7%
26.0%
2013 2014 2015 2016 2017 LTM 2Q18
Food Products Brazil Food Products International
1,513 1,313 1,407
1,784
2,776
3,582 3,676
4,229
4,948
4,663 4,426
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
Despite the slowdown in the Brazilian economy, Camil posted solid results maintaining EBITDA margin over +10%
Even in a challenging environment,
Camil was able to post double-digit
growth, maintaining profitability
11
Solid Business Model with Stable and Resilient Margins
CAGR+13%
CAGR+18%CAGR+13%
Notes:
Company fiscal year begins in March and ends in February of the following year (inclusive).
26%
74%
29%
71%
31%
69%
26%
74%
29%
71%
30%
70%
Camil: Net Revenue (R$mm) Net Revenue by Segment (R$mm)
EBITDA Evolution (R$mm) Net Profit Evolution (R$mm)
Section II
Key Investment Thesis
Wide Distribution
Network Reaching
more than 300k POS
2
Market Leader with
Unique Brand
Awareness
1
Compelling
Business Model with
Stable and Resilient
Margins
3
Key Investment Thesis
Solid Cash Flow
Generation
Supported by Strong
Operating Results
6
13
Investment Grade
Indebtedness Profile
5
Seasoned
Management Team
and the Highest
Standards of
Corporate
Governance in Place
4
Iconic Brand Recognition… …Leading to a Leadership Position in all Sectors & Regions1
14
Brazil – RICE2
#1 8.1%
#2 Player 2 5.1%
#3 Player 3 4.5%
Peru – RICE3
#1 49.1%
#2 Player 2 5.1%
#3 Player 3 4.5%
Chile – RICE5
#1 32.9%
#2 Player 2 17.2%
#3 Player 3 (PLs) 43.5%
Brazil – REFINED SUGAR2
#1 35.2%
#2 Player 2 18.5%
#3 Player 3 12.0%
Brazil – SARDINE2
#1 Player 1 45.4%
#2 43.8%
Brazil – TUNA2
#1 Player 1 58.6%
#2 24.3%
Uruguay – RICE4
#1 48.0%
#2 Player 2 40.5%
Percentage values indicate market
share in terms of volume.
Market leader in São Paulo City:
Rice 36.2% market share
Rice: 65% Top of Mind in São Paulo
One of the most complete line of
products: More than 10 variations of
grains, including ready to eat
One of the most complete line of
products: traditional and new
segments (i.e. “Fit” sugar, Sucralose,
Naturals)
Top of Mind leader (84%)
“Top-5 Suppliers” Award (#1)
Complete line of products: Tuna,
Sardines, Tuna Sauces and Pâtés
47% Top of Mind in Sardine and
37% in Tuna
“Top-5 Suppliers” Award
(Sardine #1; Tuna #2)
Market Leader with Iconic Brand Recognition
Notes:
(1) Market shares referring to total Camil Company brands
(2) Nielsen Retail Index – Apr17 - Mar18
(3) Kantar Worldpanel – Apr17 - Mar18
(4) Comisión Sectorial del Arroz – Mar17 - Feb18. 40,5% for Local Internal Market Share (#2 player)
(5) Nielsen – Mar17 - Feb18. Player 3 includes private label volumes
1
Wide Distribution Network Reaching more than 300k
POS
Ow
n Sales Fo
rce
36%
36%
24%
4%
Whole
sale
Retailers
Key A
ccounts
Ou
tso
urced
Sales
Fo
rce
Dis
trib
utor
#
Indicates the number
of own points of sale
(excluding key
accounts)
+110k
+57k
+65k
+54k
+19k
% Sales
2017A
95% of sales made by the
company’s own sales force
More than 19,000 direct and
285,000 indirect point of
sales in Brasil
15
2
Selected Accounts / Retailers
Selected Wholesale Stores
Strong distribution network with more than 300,000 points of sale, favoring the business expansion to new segments
1,784
2,776
3,582 3,676
4,229
4,948
4,663 4,426
2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
10.9%
6.7%
8.4%
4.3%
2.2%
(4.3)%
(6.3)%
2.0%
7.5%
3.9%
1.9%3.0%
0.1%
(3.8)% (3.6)%
1.0%
2010 2011 2012 2013 2014 2015 2016 2017
Retail Sales Total GDP
Source: IBGE, BCB, Ministry of Agriculture, Bacen
During 2015-16, the GDP decreased 7.2%
- returning to pre-2010 levels
Camil expanded its market share in the rice
market from 7.3% in 2011 to 17.0% in 2017
Legend
CAGR 2011-2017 (%)
+17.4%
LegendEven in a challenging scenario, Camil was able to
grow maintaning its profitability and market share CAGR 2011-2017 (%)
16
Solid Business Model with Stable and Resilient Margins 3
Despite the recent slowdown in the Brazilian economy, Camil presented a strong performance in terms of growth and margin stability
Brasil: GDP and Retail Sales (% growth, real terms)
Camil: Net Revenues (R$ millions)
Camil: EBITDA (R$ millions)
and Margin (% of Net Revenues)
209
315
375 361
423
547
490465
11.7%11.3%
10.5%9.8% 10.0%
11.1%10.5% 10.5%
2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
EBITDA EBITDA Margin
+15.2%
Margin Profitability Evolution (% of Net Revenues)
27.1%
24.1% 24.5%
23.2%
24.5% 24.7% 24.7%
26.0%
11.7% 11.3%10.5%
9.8% 10.0%11.1%
10.5% 10.5%
4.1%4.9%
3.5%2.9% 2.6%
4.1%
5.4%5.9%
2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
Gross Margin EBITDA Margin Net Margin
17
The segments in which Camil operates present active price dynamics, with weekly price pass-through, ensuring stability of margins
Rice - Market vs. Camil’s prices Beans - Market vs. Camil’s prices
Sugar - Market vs. Camil’s prices Canned Fish – Camil Gross Price (in R$/kg)
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
30.0
35.0
40.0
45.0
50.0
55.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Cam
il G
ro
ss Price (R
$/kg
)
Rice Price -Esalq
Sen
ar (R
$/5
0kg
)
Brazil - Rice Price Camil - Gross Price
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
30.0
80.0
130.0
180.0
230.0
280.0
330.0
380.0
430.0
480.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Cam
il G
ro
ss Price (R
$/kg
)
Bean
s Price -A
gro
lin
k (R
$/6
0kg
)
Brazil - Beans Price Camil - Gross Price
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
May-16
Aug-1
6
Nov-1
6
Feb-17
May-17
Aug-1
7
Nov-1
7
Feb-18
May-18
Aug-1
8
Cam
il G
ro
ss Price (R
$/kg
)
Su
gar Prices -Esalq
C
EPEA
SP
(R
$/5
0kg
)
Brazil - Sugar Price Camil - Gross Price
17.4
16.6
19.2
18.6
21.9
20.3
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Solid Business Model with Stable and Resilient Margins
(Cont’d)
3
Adjusted selling price (1)
(CIF - R$/30kg)
Notes:
(1) Adjusted by the monthly inflation of the period (Jan/2006 – July/2018)
(G
ro
ss m
arg
in
)
Average
sale price
(R$/30kg)
Average
cost
(R$/30kg)
Sale / CostGross
marginYear
2006
2007
39.4 22.7 1.7x 27.9%
2008
42.0 24.8 1.7x 25.9%
2009
53.9 34.2 1.6x 24.9%
2010
51.0 30.8 1.7x 24.6%
2011
50.5 28.6 1.8x 25.1%
2012
45.5 25.1 1.8x 27.2%
2013
55.8 34.4 1.6x 26.3%
2014
59.2 35.5 1.7x 22.8%
2015
63.5 36.9 1.7x 24.2%
2016
67.3 37.4 1.8x 24.5%
80.5 46.5 1.7x 24.7%
18
Subtitle
Average purchase price (CIF - R$/30kg)
Gross margin (% net revenue)Average selling price (CIF - R$/30kg)
–
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
-
10,00
20,00
30,00
40,00
50,00
60,00
70,00
80,00
90,00
100,00
jan-06
jan-07
jan-08
jan-09
jan-10
jan-11
jan-12
jan-13
jan-14
jan-15
jan-16
jan-17
jan-18
2017 74.0 39.8 1.9x 24.7%
3 Solid Business Model with Stable and Resilient Margins
(Cont’d)
Since 2006, Camil maintained gross margin of 22.5% - 28.0%, mainly due to its weekly pricing capacity
Business Model: Proven Cost Transfer Capability (rice case)
Arro
z
Brand
Agriculture Origination
Su
gar
Can
ned
Fish
Processing Packaging Distribution MarketingPricing and Purchasing
Strategy
Weekly purchases at spot price
Provision of storage to producers
throughout the year: benefits from
logistics costs increasing Camil’s
bargaining power
Regulated price system protects Saman’s
margins
Price paid to producers based on Saman’s
sale price (no FX risk despite the export-
led model)
Local purchases at market price (c. 50%)
Also imports rice from Saman
Most part of its rice imported rice from
Saman
Long term supply contract with Raízen
with guaranteed volume
Based on a market price derived from
international sugar prices
Acquisition from fragmented suppliers at
market prices, complemented by import
contracts
Concentrated industry favors price
discipline
19
3 Solid Business Model with Stable and Resilient Margins
(Cont’d)
União: Brand of strong emotional bond, preferred by consumers and with greater perception of value!
35.2%
72%
Unique Footprint
150,000 points of sale
reaching big part of the
population
Wide presence across all
States of Brazil
Pricing Power3
"Brand of sugar": higher
prices compared to the
main competitors³
Market Leadership Absolute Leadership
Total Company refined
sugar brands have 35%¹
market share
Unique Brand One of the most
traditional and valuable
brands in Brazil
84%² of Top of Mind
Market Share(1)
20
Sugar | Case Study
Notes:
(1) Nielsen | Retail Index – Apr17 – Mar18
(2) Top of mind – Kantar – Nov16
(3) União Refinado 1kg. Source Nielsen | Retail index – Feb/Mar18
+14%
114
100
Main Competitor
Sugar price
One of the most recognized
brands in Brazil
One of the 30 most loved brands
in 2013
1º
3
8,1
5,14,5
3,5
Camil Player 1 Player 2 Player 3
105,2
100
Camil Others
Premium Price Compared to Competitors2SP
26%
MG
11%
RJ
10%BA
6%
RS
5%
Others
42%
National
Grains
Market
Camil is Market Leader in Brazil
Camil has 8.1%1
of
the Brazilian rice
market, which is
highly fragmented
Notes:
(1) Nielsen Retail Index - Apr17 - Mar18
(2) Nielsen Retail Index - Mar18. Considers only non-premium brands21
Market share of rice in the Brazilian market (%)
Camil´s unique brand awareness leads to a
Unusual combination of market leadership and pricing power
+5,2%
Rice price in Brazil (base 100)
Rice | Case Study3
25%
11%10%
6%5% 5%
4% 4% 4%3%
23%
SP MG RJ BA RS PR PE CE GO PA Others
Distribution of Grain Sales by Brazilian State (% value)
Metropolitan regions – expansion to countryside
Minas
Gerais
São
Paulo
High potential to consolidate leadership towards
countryside
Expansion to white areas……Coupled with consolidation of the Brazilian grains
market
Unique opportunity to consolidate the fragmented Brazilian rice market....
8,1%
5,1%4,5%
3,5%
Player 2 Player 3 Player 4
1º
…with additional expansion opportunities in the also fragmented bean market
Even in regions where it is the absolute
leader, there is still potential for
expansion as brand penetration is not
homogeneous in each state
Notes:
(1) Camil & Nielsen/ Rice Nielsen Retail Index Apr17 - Mar18
(2) Camil & Nielsen/ Beans Nielsen Scantrack Apr17 - Mar18 (P04’17-P03’18) 22
1
Rice
Bean
s
8,0%
6,9%
5,3%4,9%
Player 1 Player 3 Player 4
2º
Unique position to consolidate Brazilian rice and beans markets
Backed by
Private Equity
Acquisitions
history
Player 2
Player 3
Player 4
Rice Market Share
Beans Market Share
Clear and Tangible Avenues for Expansion
Source: Camil - Considers the amounts accumulated in the 12-month period up to the highlighted date.
% of Camil’s rice market share1
% of total rice market share1
IV III
II
I
V
36%
15%
2%
10%
10%
7%
6%
23%
21%
16%
VII3% 11%
VI1% 14%
% of Camil’s beans market share1
% of total beans market share1
IV III
II
I
V
20%
8%
1%
2%
9%
17%
20%
20%
12%
17%
VII1% 4%
VI0,5% 10%
3
23
Clear recovery opportunities in the sugar and fish markets
and expansion to new categories in South America
Consolidation in
the Fish Market in
Brazil
3
International
Geographic
Expansion
5
Entry into new markets
and long-term opportunity
for entry into new
categories Focus Regions for
Expansion
New Markets
5.4%
2.5% 1.9%
Solid Growth Perspective
Rice sales CAGR 2016-2021
ArgentinaPeru ColômbiaNotes:
(1) Bimonthly Nielsen Retail Index
Expansion to
New Categories
4
Pasta - R$8.1 billion
Coffee - R$19.7 billion
Flour- R$12.5 billion
Additional Potential Market Rated
at + R$40 billion
2%
6%
4%
88%
Pasta Coffee Farinaceous
Camil's unique
distribution network
enables products to
expand into other
growing markets
Total Market Packaged Foods
R$342bi
market share
Tuna Market Share1
(%)Sardine Market Share1
(%)
Fine Sugar Market Share Evolution1
(%)
Recovery in the
Sugar Market in
Brazil
2
Clear and Tangible Avenues for Expansion
48,4%
41,8% 41,8%
42,1%
jan/12 set/16 nov/16 jan/17 mar/17 mai/17 jul/17 set/17 nov/17 jan/18 mar/18
27,2%
23,1%25,0%
22,9%
jan/12 set/16 nov/16 jan/17 mar/17 may/17 jul/17 sep/17 nov/17 jan/18 mar/18
Camil record share was 25.9% in Nov 2017. Camil expects to reduce
share gap to its main competition, reaching 34.7% until 2020, which
represents an additional volume of 5 thousand tones per year
Camil record share was 45,5% in May 2017. Camil expects to reach
46.5% market share until 2020, consolidating its leadership position
with an additional volume of 10 thousand tones per year
Market Share
41,7% 41,7% 42,5%41,5%
42,4%41,5%
39,7% 39,7%
34,0%
36,5% 36,1%37,7%
40,2%
36,7% 36,2%34,8% 34,5%
37,0%36,0%
33,0%
jan/15 mar/15 may/15 jul/15 sep/15 nov/15 jan/16 mar/16 may/16 jul/16 sep/16 nov/16 jan/17 mar/17 may/17 jul/17 sep/17 nov/17 jan/18 mar/18
3
24
25 25
Luciano Quartiero
CEO
Ex-CFO of Camil Alimentos
Post-Graduate in Finance from the University of California, USA and
MBA at IBMEC, Brazil
Graduated in Business Administration from PUC / SP, Brazil
k
9 30
Previous experience in Casarin, Saman and Josapar companies in
the areas of sales and supplies
Graduated in Agricultural Engineering from Federal University
MBA FGV in Business Management and Marketing Management
André Ziglia
Supply Director
5 22
Max Sommerhauzer Vaz da Silva 1
Commercial Director
Former Commercial Director of Cosan S.A.
Former Commercial Manager and Marketing of Agricultural
Machines Jacto S.A.
Post-Graduate in Business Administration from FIA / USP
Graduated in Agronomy from Universidade Estadual Paulista UNESP
- Jaboticabal
Years of experience in Camil
Legend
Years of experience in the market
18 36
Jaime Ghisi
Logistics Director
Former Commercial Manager Mercosul Ferrovia ALL
Former Regional Superintendent of AGEF - General Warehouse
Customs Brokers
Graduated in Civil Engineering from PUC / RS, Brazil
Flavio Vargas, CFA
CFO and IR Director
Ex-CFO of Smiles S.A.
Ex-Director of Fleet and Treasury of Gol Linhas Aéreas S.A.
MBA, with honors, in Finance from NY University, Stern, EUA
Graduated in Mechanical Engineering from Escola Politécnica,
Universidade de SP, Brazil
1 20
Renato Gastaud 1
LatAm Director
Former Superintendent and Industrial Director of Josapar
He has relevant experience in rice, market in which it has been
inserted for 39 years, of which 15 in Camil
Graduated in Agricultural Engineering at UFPEL / RS
15 39
Renato Costa 1
Industrial Director
Former Industrial Director of Kraft Heinz
He has relevant experience in the industrial area, having passed
through Suzano and Ambev, where for 16 years he held various
positions in logistics and management
Graduated in Mechanical Engineering from UMC and holds an MBA
in Marketing from FGV and in business management from IBMEC /
SP1 19
Notes:
(1) Non statutory directors.
Leadership with Wide Experience in the Sector4
All Camil's directors have experience in their respective areas of expertise
25
Jairo Quartiero
(Chairman)
Piero
Minardi
(Warburg Pincus)
Alain
Belda
(Warburg Pincus)
Thiago
Quartiero
Jacques
Quartiero
José Fay
(Board Member at J.Macedo
former CEO of BRF)
Carlos Júlio
(Former CEO of Tecnisa
and HSM do Brasil)
Founding
Family
Warburg
Pincus
Independent
Members
Listing on Novo Mercado, highest
Corporate Governance standard at
B3
Common voting shares only
100% Tag along
2 or 20% of independent Board
Members
Minimum Free Float of 25%
OPA by fair value
Evaluation of Board of Directors,
Management, and Committees
Minimum dividend/JCP of 25% of
the net profit (after legal reserves
and contingencies – in compliance
with Law No 6.404)
Since 2008, the Board of Directors
is responsible for general strategic
policies
2 independent Board Members
12 meetings/year on average
Election for unified terms of 2 years
Re-election is permitted.
(+) 4 Committees elected:
Financial Committee
Audit Committee
Personnel Management Committee;
and
Ethics Committee
(+) Fiscal Council
Corporate body that freestands
from the Company’s management
and its independent auditors
Monitoring, accomplishment of
legal and statutory responsibilities,
review of quarterly financial
statements, etc
Solid Corporate Governance4
Camil has high levels of controls and corporate governance, being supported by
independent board members for +10 years and being audited for +15 years (big 4)
Board of Directors Corporate Governance
26
Elaborate and recommend the approval of the Company’s financial policies, as well as monitoring and analysis of its
effectiveness and implementation
Periodically analysis of the company’s budget, monthly; quarterly and annual results; investment plan, etc
Periodically analysis of the impact of the company’s investment and financing plan on its capital structure
Define parameters to maintain the company’s capital structure and liquidity; among other responsibilities
Total members: 3 to 5, with at least 1 member from the BoD
Assist the Board of Directors in respect to accounting, internal controls, financial reports, auditing and compliance
matters
Support in the hiring and/or destitution of independent auditors
Supervision and monitoring of the company’s internal audit area activities; among other responsibilities
Total members: 3 to 5, with at least 1 member from the BoD
Composed by the CEO, Vice-President, CFO in addition to Legal, Audit and Human Resources personnel
The Ethics Committee is mainly engaged in the reinforcement and monitoring of transparency and best practices by
shareholders, board, suppliers, clients, third parties, employees, etc
Main monitoring activities: protection of confidential information (including third parties), gifts and entertainment,
sexual and moral harassment, conflicting interests, sustainability, safety, among others
Financial
Audit
Ethics
Analysis and recommendation of changes in remuneration policies, including salary adjustments, personnel goals, etc
Analysis and report on special conditions for hiring and dismissal of directors
Continuously contribute to the company’s succession plan (president and directors); among others responsibilities
Total members: minimum of 4 members, with at least 1 members from de BoDPersonnel
Management
Solid Corporate Governance
(Cont’d)
4
Well-defined committees structure aiming to enhance the company’s organizational policies and
comply with the best corporate practices
Committees Main Responsibilities/Guidelines
120 128
156 158
74
121
44
3.5%
2.9%2.6%
4.1%
5.4%
3.8%
5.9%
2013 2014 2015 2016 2017 LTM 2Q17 LTM 2Q18
Net Financial Expense Net Margin
27
Net Financial Expenses decreased 77% vs. 2Q17
Decrease in SELIC rate
Increase in total liquidity (cash and equivalents and
financial applications) of +58.1% vs. 2Q17
o from R$421 mm (Aug/17) to R$666 mm (Aug/18)
Positive results with derivatives
The Company concluded its important initiatives to improve its capital structure, including the reduction of the cost of debt and better
amortization profile.
Current cash position (2Q18) covering nearly
1.6 years of debt
Average cost of debt: 5.8%2
Notes:
(1) Considers cash and equivalents and financial applications
(2) Calculated based on the average cost of debt of each Loans, Financing and Debentures, weighted by each debt position as of 2Q18 and considering average CDI 18E of 6.5%
1
Investment Grade Indebtedness Profile
2Q18 and LTM 2Q18 Results
5
Net Financial Expense (in R$mm) Indebtedness Overview (R$ mm)
Cash Position and Debt Schedule (R$ mm)
758
230276
478
368
12
666
362
513
416
190
10
Cash
Position
2019 2020 2021 2022 After 2022
31-May-18 31-Aug-18
Indebtedness Overview 2Q17 1Q18 2Q18 2Q18 vs 2Q18 vs
Date 31-Aug-17 31-May-18 31-Aug-18 2Q17 2Q18 vs
Total Debt 1,636 1,362 1,491 (8.9)% 9.5%
Loans and Financing 507 384 513 1.2% 33.7%
Debentures 1,129 979 978 (13.4)% (0.1)%
Short Term 472 230 365 (22.6)% 58.9%
Long Term 1,165 1,126 1,129 (3.1)% 0.3%
Indebtedness per Currency
R$ 1,233 1,044 1,026 (16.8)% (1.7)%
USD 216 143 260 20.3% 82.0%
CLP 58 56 63 9.0% 12.1%
PEN 130 120 143 10.1% 19.0%
ARS - 11 - - -
Leverage
Gross Debt 1,636 1,362 1,491 (8.9)% 9.5%
Cash and Equivalents 421 758 666 58.1% (12.2)%
Net Debt 1,215 604 825 (32.1)% 36.6%
EBITDA LTM 485 444 465 (4.2)% 4.6%
Net Debt / EBITDA 2.5 x 1.4 x 1.8 x (0.7)x 0.4 x
2Q18 Liability Management
28Notes:
(1) Financial covenant of 3.5x Net Debt / EBITDA refers to the debentures issued in Nov/2016, May/2017 and Dec/2017
Stable outlook by S&P mainly backed by better expectations on enhanced credit metrics, leverage reduction and stable margins, all
supported by solid financial policies
We expect that Brazil-based food processor Camil will post stronger
credit metrics and improved liquidity following its recent IPO and
sustain EBITDA margins consistently around 10%. (…)
The ratings affirmation reflects our expectation that Camil will reduce debt
and sustain improved liquidity following the company's IPO, where it raised
R$357 million in the primary offering.
Camil's liquidity is also supported by its well-established relationships with
banks, its transparency levels, and its ability to raise funds through credit
and capital markets, as evidenced by its recent IPO, CRAs, and bank
refinancing.
Standard & Poor’s, November 1st, 2017
Constant monitoring of the company’s liquidity
situation by the implementation of a minimum cash
position policyP
Maximum indebtedness defined by financial covenant
of 3.5x Net Debt / EBITDA LTM1P
1
Investment Grade Indebtedness Profile (Cont.)
Indebtedness Evolution and Credit Rating Overview
5
Main Financial Policies and Indebtedness Evolution (R$ mm, except otherwise indicated)
Camil Alimentos Credit Rating by S&P S&P Recent Quotes on Camil Alimentos
468
616
793
625
764
915 913 893 923 959 1,068
899 986
1,149
1,330
998 1,003
1,260 1,170
1,014 1,074
1,215
744
571 604
829
2.0 x
2.4 x2.7 x
2.0 x2.2 x
2.5 x 2.5 x2.4 x 2.5 x 2.6 x
2.8 x
2.5 x2.7 x
3.1 x3.4 x
2.4 x 2.2 x2.4 x
2.1 x1.9 x 2.0 x
2.5 x
1.6 x
1.2 x1.4 x
1.8 x
3.5 x
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Net Debt Net Debt / EBITDA LTM Covenant
Period 2013 2014 2015 2016 2017 LTM 2Q18
Funds from Operations 381.0 388.8 488.5 579.6 529.9 509.2
(+/-) Change in Working Capital (291.4) 59.8 (150.2) (285.3) (41.9) (101.6)
Operating Cash Flow 89.6 448.7 338.3 294.3 488.0 407.6
(+) Asset Disposal 17.2 6.3 8.5 9.6 8.1 10.1
(-) Total Capex (231.3) (210.1) (209.8) (88.9) (104.5) (138.7)
Additions to Intagible Assets (1.1) (1.1) (3.1) (2.5) (4.8) (3.6)
Additions to Investments (121.8) (142.5) (125.1) (15.4) - (30.7)
Capital Expenditures (108.6) (70.1) (81.6) (71.0) (99.7) (104.4)
Cash from Acquisitions 0.3 3.6 - - - -
Free Cash Flow (124.4) 244.8 137.0 215.0 391.6 279.0
FCF as % of EBITDA (33.2)% 67.8% 32.4% 39.3% 80.0% 60.0%
29
Notes:
(1) Accounts for pre-tax income, net result of unconsolidated subsidiaries, accrued financial charges, allowance for doubtful accounts, provisions, D&A, write-offs and other non-cash charges
(2) Excluding cash flow from change in short-term investments
1
2
Breakdown of FCF Generation – In R$ mm
1
1
2
3
Strong operating cash flow generation mainly as a result of relevant top-line growth and stable margins
FCF generation also impacted by the historical capex spent in M&A
Solid EBITDA conversion into FCF, posting a 60% conversion as of LTM 2Q18
Main considerations
2
3
Solid Cash Flow Generation Supported by Strong
Operating Results
6
Solid EBITDA conversion into Free Cash Flow
30Notes:
(1) Excluding cash flow from change in short-term investments
The company’s seasonal cash flow is mainly explained by (i) its working capital seasonality and (ii) the historical
capex spent in assets acquisitions (M&A)
Breakdown of FCF1
(R$ mm) and EBITDA-to-FCF conversion (%)
Quarterly Working Capital Evolution (R$ mm) Quarterly Capex Breakdown Evolution Breakdown (R$ mm)
Solid Cash Flow Generation Supported by Strong
Operating Results (Cont.)
6
-
200
400
600
800
1,000
1,200
1,400
1,600
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
Total Working Capital Accounts Receivable
Inventories Adv. to Suppliers
Suppliers
72
31
94
34
22 18
140
30 28
58
98
25
13 16
34 26
15
32 26
32 31
51
-
20
40
60
80
100
120
140
160
180
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
Capex - M&A Capex - Maintenance
(63)% (133)%15% 58% 36% 3% (42)%
315%
(12)% (50)% (126)%
322%11%
(134)%
143% 235%67%
(104)%
123%223%
47%(137)%
(68)(124)
13 54 38 3
(37)
242
(13)(53)
(137)
340
15
(237)
208 230
86
(119)
159
266
39
(184)
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Funds from Operations Change in WK Asset Disposal Capex EBITDA-to-FCF conversion
31
M&A: SLC Acquisition - Transaction Summary
Acquisition
Investment
Overview
Acquisition
100% of SLC Alimentos Ltda.
from Grupo SLC Participações
Total: R$308mn, divided by R$140mn in cash (+) R$40mn of retention (+) R$128mn of net debt¹
Acquisition aligned to the Company’s expansion strategy and an important step towards the consolidation of the
grain market in Brazil
• Consolidation of the grain market in Brazil
• Potfolio composed with relevant brands in the value pricing segment and brand
• Increase in volumes on rice and beans category, strengthening Camil’s competitiveness
• Growth acceleration on South, Southeast and Northeast regions in Brazil
• Complementarity of logistics and distribution platforms
• Operational and comercial potential synergies
Approvals ans
Closing
Concluded:
• Oct. 26, 2018: Board of Directors Approval
• Oct. 26, 2018: Signature of the SPA
Next steps (Estimated):
• Nov to Dec/2018: CADE’s analysis
• Up to Dec/2018: Closing
Brands
Source:
1- Based on Calculados baseado nos Demonstrativos Financeiros auditados pela E&Y de dezembro de 2017
7
Industrial Facility and
Distribution Center
Simões Filho/BA
Caucaia/CE
Conceição do Araguaia/PA
Porto Alegre/RS
Jandira/SP
Distribution Centers
1
2
3
4
5
12
3
4
5 1
2
3
4
5
Jaboatão dos Guararapes/PE
Paraíso do Tocantins/TO
Tatuí/SP
Alegrete/RS
Capão do Leão/RS
1
2
3
4
5
Industrial Facilities
Commercial
office
Headquarters
Porto Alegre/RS
6
32
SLC Acquisition: Overview
Subsidiary of SLC Participações Group
Founded in December 2000
and three other brands in the portfolio.
Brand was awarded prizes for top of mind
Net Revenue reached R$512mn and EBITDA R$32mn in
20174
Approx. volume of 205k tonnes in rice and 16k tonnes in
beans in 2017
511 employees in 2017
5 industrial facilities and 8 DCs in Brazil, being:
Source:
1- SLC Alimentos
2- Nielsen Retail Index Monthly, Acum. Jun-Jul/18
3- Nielsen Scantrack, Acum. Jun-Jul/18
4- Calculated based on Financial Statements which were audited by E&Y from January to December 2017.
Overview¹ Market share
Rice - Market share (%)²
Company
7.3% 1.6%
Main Brand
Beans - Market share (%)³ 5.5% 1.3%
Brands¹
Namorado
Rice: white, parboiled, whole-grain
Beans: black, carioca, red and white
Lentils
Namorado Gourmet
Rice
Export: Angola, Cape Verde, Canada,
USA, England, Uruguay
Butuí
Rice: white e parboiled
Beans: black and carioca
Present in Northern region, SP and MG
Bonzão
Rice: white rice and rice for dogs
Present in the northern region
Americano
Rice: white rice
Main markets: Tocantins, southern Pará
and southern Maranhão
Brands Camil and Namorado combined hold approx. 9% of the rice market and
7% of the beans Market in Brazil
Brasília/DF6
7
33
SLC Acquisition: Financial and Operational Highlights
Source
1- SLC Alimentos – audited data from Jan-17 to Dec-17; Camil data from Mar-17 to Feb-18
12M17Period ended on Feb. 28, 2018 Dec. 31, 2017
12M17 12M17 12M17Audited Audited Pro-forma
Volume Grains Brazil (k ton)
Grains 668,5 221,0 889,5
Rice 596,1 205,0 801,1
Beans 72,4 16,0 88,4
Financial Statements (R$mn)
Net Revenues 4,663 512 5,175
(-) Cost of Sales and Services (3,513) (400) (3,913)
Gross Profit 1,151 112 1,263
(-) SG&A (782) (86) (868)
(+/-) Other Operating Income and Result in Uncons. Subs.
31 - 31
EBIT 400 26 426
(+/-) Finacial Result (74) (13) (87)
Pre-Tax Income 325 13 338
(-) Total Income Taxes (75) (1) (76)
Net Income 251 12 263
EBITDA Reconciliation
Net Income 251 12 263
(-) Net Finacial Result 74 13 87
(+) Income Taxes 75 1 76
(+) Depreciation and Amortization 90 6 96
(=) EBITDA 490 32 522
Margins
Gross Margin 24.7% 21.9% 24.4%
EBITDA Margin 10.5% 6.2% 10.1%
Net Margin 5.4% 2.7% 5.1%
+
7
3.157
4.229
4.948
4.663
423
547
490
111
202
251
571
308
457
563
512
35
37
32
24
10
12
128 180
Firm Value
2015A
2016A
2017A
2015A
2016A
2017A
2015A
2016A
2017A
Net Debt 2017
34
Combined Historical Financial Highlights1
(R$mn)
SLC AlimentosCamil
10.6%
10.1%
3.9%
5.1%
ComboC S
91% 9%
90% 10%
90% 10%
90% 10%
92% 8%
94% 6%
94% 6%
82% 18%
95% 5%
95% 5%
72% 28%
9.8%
2.9%
11.1% 6.5%
10.5% 6.2%
6.4%
5.4%
1.2x 4.0x 1.7x
Combo
10.0% 7.7%
5.4%
Fin
an
cial In
dicato
rs
Deb
t
Net R
evenues
EBITD
A /
margin
Net P
rofit/
margin
Leverage
(DL/EBITDA 17)
Valu
e
1.7%
2.4%
5.2%
Source:
1- SLC Alimentos – audited data from Jan-17 to Dec-17; Camil data from Mar-17 to Feb-18
2- SLC Alimentos was bought by leverage increase (R$308mn being R$180mn Equity and R$128mn SLC Debt)
3- Camil Alimentos S.A. and SLC Agrícola Ltda. Market Share Data Nielsen (Retail + Wholeretail)
Market Share Brazilian Rice per Region
SLC Acquisition: Pro-forma
Estimated Synergies
Synergies by COGS and
G&A: R$10 million/year
(+)
Synergies by tax credits:
R$80 million
Supplies
1
2
3
4
5
6
Industrial
Logistics
Administrative
Capital Structure
Sales
Main sources of synergies:
7%
32%
1%
8%
8%
2%
21%
2%
2%
5%
3%
2%
2%
0%
0%
0%
Total Brazil
Greater São
Paulo
South
NE
Int. São Paulo
SE (ex-SP RJ)
Rio de Janeiro
Midwest
9%
ComboCombo
37%
4%
10%
10%
2%
21%
2%
3,465
4,686
5,511
5,175
458
584
522
135
212
263
879²
7
Section III
Key Takeaways
Camil
Market leader with unique brand awareness4
Wide distribution network reaching more than 300k POS5
Compelling Business Model with Stable and Resilient Margins6
Seasoned management team and the highest standards of corporate governance in place7
Strong Cash Position and Investment Grade Indebtedness Profile8
Access to cheap financing Alternatives and Local DCM9
Key Takeaways
Market
Resilient demand
The Company’s main market proves resilient to economic downturns as the consumption of rice and beans has a strong cultural appeal, being a pillar of
the Brazilians’ typical diet
1
Low exposure to fluctuations in commodities prices
The market dynamics differ materially from the general commodity market, as the quality perception and brand awareness are key factors in customers’
buying decision process
2
Weekly price pass-through
The grains and sugar retail markets present active price dynamics, with weekly price pass-through, ensuring stability of margins. The canned fish market
is going through a change in its price dynamics, in which price pass-through is becoming more frequent
3
Growth Avenues
Consolidated platform uniquely positioned for sustained organic growth
Camil has a consolidated and scalable distribution platform, positioning the company to leverage on the development of new segments and change in
consumers habits
10
High potential for inorganic growth
Leadership position across all segments the Company operates, coupled with its distribution platform, enabling fast and efficient integration of new
operations and capacity to capture synergies
11
36
37
EBITDA Evolution (R$mm) Profitability Evolution (R$mm)
Net Profit Evolution (R$mm) Margin Profitability Evolution (% of Net Revenues)
Key Financial highlights
Camil Consolidated Profitability Evolution1
Notes:
(1) Company fiscal year begins in March and ends in February of the following year (inclusive).
169
123142
209
315
375 361
423
547
490465
11.1%9.4% 10.1%
11.7% 11.3%10.5% 9.8% 10.0%
11.1% 10.5% 10.5%
22.9% 22.8%24.2%
27.1%
24.1% 24.5%23.2%
24.5% 24.7% 24.7%26.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
EBITDA EBITDA Margin Gross Margin
169123
142
209
315
375 361
423
547
490465
58 71 56 74
137 124 105 111
202
251 261
11.1%
9.4%10.1%
11.7% 11.3%10.5%
9.8% 10.0%11.1%
10.5% 10.5%
3.8%
5.4%
4.0% 4.1%4.9%
3.5%2.9% 2.6%
4.1%
5.4%5.9%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
EBITDA Net Income EBITDA Margin Net Margin
58 71 56 74
137 124 105 111
202
251 261
3.8%
5.4%
4.0% 4.1%4.9%
3.5%2.9% 2.6%
4.1%5.4% 5.9%
11.1%
9.4%10.1%
11.7% 11.3%10.5%
9.8% 10.0%11.1%
10.5% 10.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
Net Income Net Margin EBITDA Margin
22.9% 22.8%
24.2%
27.1%
24.1% 24.5%
23.2%
24.5% 24.7% 24.7%
26.0%
11.1%
9.4%10.1%
11.7% 11.3%10.5%
9.8% 10.0%11.1%
10.5% 10.5%
3.8%
5.4%
4.0% 4.1%4.9%
3.5%2.9% 2.6%
4.1%
5.4%5.9%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM
2Q18
Gross Margin EBITDA Margin Net Margin
38
Breakdown of Cash Flow Generation in the Last 5 years (R$ mm)
Operating Cash Flow
R$1,692 mm
Investing Cash Flow
R$(770) mm
Financing Cash Flow
R$(652) mm
Consistent cash flow generation mainly backed by strong operating cash flow (relevant EBITDA growth with stable margins) and also
impacted by working capital seasonality and historical capex spent in M&A
Key Financial highlights (Cont.)
Breakdown of Cash Flow Generation
95
2,404 (711)
1241 (388)
(435)
2 (678)
(386)
443 (33 )366
Cash
Aug/13
Funds from
Operations
Change
in WK
ST
Invest.
Asset
Disposal
Capex
(M&A)
Capex
(Maintenance)
Change
in Debt
Interest
Paid
Dividends
Paid
Capital
Increase
Others Cash
Aug/18
Appendix
A. Financial highlights
80
90
100
110
120
130
140
150
160
170
180
1Q
08
3Q
08
1Q
09
3Q
09
1Q
10
3Q
10
1Q
11
3Q
11
1Q
12
3Q
12
1Q
13
3Q
13
1Q
14
3Q
14
1Q
15
3Q
15
1Q
16
3Q
16
1Q
17
3Q
17
1Q
18
40
Volume: 163 thousand tons
• +19.6% vs. 1Q18
• +4.4% vs. 2Q17
Raw material - average market prices: R$41.70 / bag¹
• +16.3% vs. 1Q18
• +4.6% vs. 2Q17
Gross Price Camil: R$2.49 / kg
• +9.5% vs. 2Q18
• +4.1% vs. 2Q18
Sequential volume recovery growth during this quarter
¹Source: CEPEA; Esalq/Senar-RS 50kg.
Volume Breakdown Brazil 2Q18 (%)
Rice – Brazilian Market (in R$/bag) Rice - Market vs. Camil’s prices
Rice – Main Highlights 2Q18 Rice - Volume Evolution (mm tons)
41.8
50.5
49.5
49.0
42.3
39.0
40.2
37.3
36.8
36.8
44.2
30.0
35.0
40.0
45.0
50.0
55.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
30.0
35.0
40.0
45.0
50.0
55.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Cam
il G
ro
ss Price (R
$/kg
)
Rice Price -Esalq
Sen
ar (R
$/5
0kg
)
Brazil - Rice Price Camil - Gross Price
Brazil Food Segment | Rice
Rice
50.4%
Beans
6.0%
Sugar
41.0%
Fish
2.5%
Camil highlights sequential volume recovery growth compared to 1Q18 in Brazil
10
12
14
16
18
20
22
1Q
08
3Q
08
1Q
09
3Q
09
1Q
10
3Q
10
1Q
11
3Q
11
1Q
12
3Q
12
1Q
13
3Q
13
1Q
14
3Q
14
1Q
15
3Q
15
1Q
16
3Q
16
1Q
17
3Q
17
1Q
18
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
30.0
80.0
130.0
180.0
230.0
280.0
330.0
380.0
430.0
480.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Cam
il G
ro
ss Price (R
$/kg
)
Bean
s Price -A
gro
lin
k (R
$/6
0kg
)
Brazil - Beans Price Camil - Gross Price
41
Volume: 19 thousand tons
• +13.2% vs. 1Q18
• -0.1% vs. 2Q17
Raw material - average market prices: R$101.80 / bag¹
• +3.9% vs. 1Q18
• -38.6% vs. 2Q17
Gross Price Camil: R$3.36 / kg
• +2.0% vs. 1Q18
• -25.7% vs. 2Q17
Sequential volume recovery growth during this quarter
¹Source: Agrolink; Sc 60kg.
Beans – Brazilian Market (in R$/bag) Beans - Market vs. Camil’s prices
Volume Breakdown Brazil 2Q18 (%)
Rice
50.4%
Beans
6.0%
Sugar
41.0%
Fish
2.5%
222.9
437.9
280.1
137.6
142.7
199.1
118.6
98.8
101.7
30.0
80.0
130.0
180.0
230.0
280.0
330.0
380.0
430.0
480.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Brazil Food Segment | Beans
Beans – Main Highlights 2Q18 Beans - Volume Evolution (mm ton)
Camil highlights sequential volume recovery growth compared to 1Q18 in Brazil
100
110
120
130
140
150
160
170
180
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Cam
il G
ro
ss Price (R
$/kg
)
Su
gar Prices -Esalq
C
EPEA
SP (R
$/5
0kg
)
Brazil - Sugar Price Camil - Gross Price
42
Volume: 132 thousand tons
• +7.1% vs. 1Q18
• -4.5% vs. 2Q17
Raw material - average market prices: R$54.80 / bag¹
• +2.4% vs. 1Q18
• -12.5% vs. 2Q17
Gross Price Camil: R$2.11 / kg
• +7.9% vs. 1Q18
• -7.7% vs. 2Q17
Sequential volume recovery growth during this quarter
¹Source: CEPEA; Cristal Sugar Esalq-SP 50kg.
Sugar – Brazilian Market (in R$/bag) Sugar - Market vs. Camil’s prices
75.7
86.7
98.1
88.0
74.3 61.2
52.4
68.6
51.3
57.8
40.0
50.0
60.0
70.0
80.0
90.0
100.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
Volume Breakdown Brazil 2Q18 (%)
Rice
50.4%
Beans
6.0%
Sugar
41.0%
Fish
2.5%
Brazil Food Segment | Sugar
Sugar – Main Highlights 2Q18 Sugar - Volume Evolution (mm ton)
Camil highlights sequential volume recovery growth compared to 1Q18 in Brazil
Volume: 8 thousand tons
• +62.2% vs. 1Q18
• +31.5% vs. 2Q17
Gross Price Camil: R$20.21 / kg
• -6.3% vs. 1Q18
• +6.3% vs. 2Q17
High Prices of sardine and tuna per kilo in Brazil when compared to
other proteins
Challenging sardine and tuna fishing locally – import high levels
FX Devaluation
43
Canned Fish - Volume Evolution (mm ton) Canned Fish – Camil Gross Price (in R$/kg)
17.4
16.6
19.2
18.6
21.9
20.3
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
3
5
7
9
11
13
15
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
Rice
50.4%
Beans
6.0%
Sugar
41.0%
Fish
2.5%
Brazil Food Segment | Canned Fish
Canned Fish – Main Highlights 2Q18 Canned Fish –Volume Breakdown Brazil (%)
We highlight FX devaluation combined with challenging sardine and tuna fishing in Brazil
44
Chile
Uruguay
Domestic
Market
Domestic
Market
Export Market
Peru
Volume: 104 Thousand tons
• +21.0% vs. 1Q18
• -34.2% vs. 2Q17
Gross Price in R$: 2.01
• +9,6% vs. 1Q18
• +13.6% vs. 2Q17
Gross Price in US$:
• -1.8% vs. 1Q18
• -5.0% vs. 2Q17
Volume: 20 Thousand tons
-2.4% vs. 1Q18
+2.9% vs. 2Q17
Gross Price in R$: 5.92
• +2.1% vs. 1Q18
• +22.3% vs. 2Q17
Gross Price in CLP:
• -2.8% vs. 1Q18
• +1.5% vs. 2Q17
Volume: 21 Thousand tons
+6.9% vs. 1Q18
-9.7% vs. 2Q17
Gross Price in R$: 4,67
• +8.4% vs. 1Q18
• +20.0% vs. 2Q17
Gross Price in SOL:
• -2.0% vs. 1Q18
• +1.2% vs. 2Q17
-
50
100
150
200
250
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
Uruguay Chile Peru
Uruguay
71.8%
Chile
13.8%
Peru
14.4%
Notes:
(1) Excludes Argentina operations which were recently divested in 2Q18
International Food Segment
International – Operational Highlights 2Q18 International Performance – Quarterly Evolution (mm ton)1
International – Volume Breakdown (%)
Price growth in local currency impacted by FX devaluation during the period
Appendix
B. Industry highlights
135.0
77.7
69.265.1
39.9
12.4 12.08.6
Notes:
(1) FAO / Estimated paddy production for 2017
(2) Rice husk represents ~32% of the grain’s total weight
Resilient Demand and Favorable Market Dynamics
Rice Industry | Brazil
Ton mm
World’s 9th
largest rice producer
China India Indonesia Peru Uruguay
9º
Brazil
kg/year
Indonesia China India Peru Brazil USA Chile Uruguay
Ton mm
Rice is highly penetrated in Brazil, being part of the country’s
cultural identity
46
Consumption Historically Stable
Production Historically Stable
Colombia
Ton mm
Largest Producers in the World1
National Production
Per capita Consumption by Country1
National Consumption of Paddy2
210.3
166.5
73.9
12.33 2.7 1.4
11.6 11.8 12.1 12.4
10.6
12.3 12.1
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
11.7
12.6 12.0
11.5 11.4 12.0 12.0
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
The rice industry in Brazil is characterized by a combination of (i) resilient demand based on cultural identity and (ii) high and stable
production levels
Chile - Total Consumption (‘000 tons)
Uruguay – Total Consumption3
(‘000 tons)
47
Growth Potential:
migration to packaged ricePCAGR13-17
: 1.6%
CAGR13-17
: 4.6%
CAGR13-17
: 0.4%
Broad marketP
Resilient marketP
Export marketP
Domestic
Market
Domestic
Market
Export Market
Source: Company filings, Kantar WorldPanel; AC Nielsen; MINAGRI; Odepa; Annual rice harvest report (Uruguai); Asociación Cultivadores de Arroz; Ministerio da Agricultura (Brazil)
Note: (1) Considers the sum of imports and total production; (2) Considers production data
Peru – Total Consumption1
(‘000 tons)
Resilient Demand and Favorable Market Dynamics (Cont’d)
Rice Industry | Peru, Chile and Uruguay
1,273 1,095
1,390 1,359 1,287
79
79
79 79 86
1,352 1,174
1,469 1,438 1,373
2013 2014 2015 2016 2017
Exports Total Consumption
2
3,189 3,054
3,306 3,482 3,402
2013 2014 2015 2016 2017
161 156
204 196 193
2013 2014 2015 2016 2017
Peru, Chile e Uruguay present: (i) resilient market e (ii) potential to consolidate
0.9 0.9
1.0
1.1
0.9
1.1
1.0
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
Notes:
(1) CONAB; Agrolink; 15/16 crop registered significant drop in productivity due to rainfall scarcity during the period48
1
CAGR11/12-17/18E: 1.4%
Ton mm Ton/hectare
3 annual crops in Brazil and only 1 in other producing countries
Price volatility due to beans perishability
R$/60 Kg sack Ton mm
Consumption Historically Stable
Production Historically Stable
Resilient Demand and Favorable Market Dynamics (Cont’d)
Beans Industry | Brazil
National Production Average Productivity
Historical Price National Consumption
2.9 2.8
3.5
3.2
2.5
3.4
3.1
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
3.5 3.3 3.4 3.4
2.8
3.3 3.3
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
0
100
200
300
400
500
Aug-12
Nov-1
2
Feb-13
May-13
Aug-13
Nov-1
3
Feb-14
May-14
Aug-14
Nov-1
4
Feb-15
May-15
Aug-15
Nov-1
5
Feb-16
May-16
Aug-16
Nov-1
6
Feb-17
May-17
Aug-17
Nov-1
7
Feb-18
May-18
Aug-18
With stable production levels, the beans market in Brazil is also characterized by a combination of: (i) resilient demand based on cultural
identity and (ii) supply stability
58 57 5754
50
40 39 3937
21
Cuba Australia Brazil Guatemala European
Union
South
Africa
Mexico Colombia Thailand Global
Median
11.2 11.3 11.4 10.9 10.9 11.0
12/13 13/14 14/15 15/16 16/17 17/18E
Notes:
(1) USDA; CONAB; ISO/ Larges producers data refers to 2016 and per capita consumptions refers to average between 2013 and 2015
(2) Considers consumption of industrialized products 49
CAGR15/16-17/18E: 6.8%
kg/year Ton mm
Ton mm Ton mm
Largest producer in the world
1º
Brazil is one of the largest sugar consumers in the world
Production Historically Stable
Consumption Historically Stable
Resilient Demand and Favorable Market Dynamics (Cont’d)
Sugar Industry | Brazil
Largest Producers in the World1
National Production
Per Capita Consumption1
National Consumption2
38.2 37.6 35.6
33.8
38.7 38.6
12/13 13/14 14/15 15/16 16/17 17/18E
39.0
24.8
15.5
10.0 9.37.8
6.1 5.8 5.6 4.6
Brazil India European
Union
China Thailand United
States
Mexico Russia Pakistan Australia
Brazil has a leading position in sugar production and consumption, presenting: (i) resilient demand and (ii) supply stability
(2.7)%
(0.7)%
1.7%
2.4%
392
474 483 507
485
2013 2014 2015 2016 2017
1,745 1,893 1,933 1,967 2,020
2013 2014 2015 2016 2017E
Notes:
(1) IBGE; ABPA; ABIEC; FAO; Euromonitor/ In 2017
(2) 2013 data 50
65.5
37.933.5
25.522.0 21.5 20.8
13.29.7
7.5
19.7
Hong
Kong
China France Italy Peru United
States
United
Kingdom
Chile Brazil Uruguay Global
Median
CAGR 13-17
(%)
kg/year Ton ‘000
Wide space to increase penetration Strong growth in the last years
Resilient Demand and Favorable Market Dynamics (Cont’d)
Fish Industry | Brazil
National Production Per Capita Protein Consumption Growth
Ton ‘000
Beef
Pork
Poultry
Fish
The fish industry in Brazil is consistently growing, driven by the trend of the diversification of protein sources and increase in the
consumption of food with higher nutritional value
Per Capita Consumption2
National Sales
Flavio Vargas
Chief Finance and IR Officer
Guilherme Salem
IR and Financial Planning
Investor Relations
Phone:
+55 11 3039-9238
+55 11 3039-9237
E-mail: [email protected]