brazil 2010 eleventh annual ceo conference€¦ · eleventh annual ceo conference luiz eduardo...
TRANSCRIPT
Brazil 2010Eleventh Annual CEO Conference
Luiz Eduardo Moreira Caio
PROMOTING CONSUMER DEMAND AT THE POINT OF SALE
Ice Cold Merchandising (ICM)
2
Key Accounts Metalfrio SolutionsPoints of Sales
Bars / Convenience Stores / Kiosks / Supermarkets / Restaurants
North America
Latin America
Brazil
Europe + Turkey + Middle East
Russia
Ice Cold MerchandisingSolutions
New TechnologySolutions
Service Solutions
CO2 Coolant
Removable Deck
3
590Americas
133 Europe & Mid-East
DistribuitorsTA offices
PROMOTING CONSUMER DEMAND AT THE POINT OF SALE
60’s – 80’s 90’s 2000 - 2005 2006 - 2008 2009 - ONWARDS
Establishing key accounts
Developingafter-sales
Entrepreneurial phase
Customized automation
Process Control
Engineering phase
Expansion in Brazil &
leadership in LATAM
Full Service Provider
Launching platform for
Intl. expansion
International expansion in high growth consumer markets
Building path to
global ICM leadership
Establishing International
Platform (IPO 2007)
Multinational phase
No. 4 most international company in Brazil(1)
(1) Research by Fundação Dom Cabral, 20094
TRACK RECORD: 50 YEARS WITH CONSUMER BRANDS
5
BRAZIL
2005 2006 2007 1H08 2H08 20092010
ONWARDS
Reubly
assets
acquisition
Caravell / Derby
acquisiition
(Jul)
Três Lagoas
plant
kick-off
(Oct)
Coldmotion
acquisition
(Dec)
Production kick-off
Turkey plant
IPO
Bovespa
Nietoacquisition
(Apr)
EnerfreezerAcquisition
(Aug)
Senocakacquisition
(Mar)
New plant completion
Manisa (Sep)
Três Lagoas
Phase 3
Investment
kick-off
MEXICO
USA
DENMARK
RUSSIA
TURKEY
INDIA / ASIA
2004
INSTALLED CAPACITY (‘000)
325 325 400 1,060 1,269 1,269
Consolidation
of Mexico
Consolidation
of Turkey
Consolidation of
Denmark + Russia
Três Lagoas
Phase 2
(Jun)
Phase 3
completion
(4Q10)
04-09 NET
REVENUES
4x
04-09EBITDA
(ADJUSTED)
10x
04-09PRODUCTION
CAPACITY
4x
04-09UNITS
3x
PATH TO GLOBAL LEADERSHIP IN ICM
Caravell / Derby
acquisiition
(Jul)
GLOBAL FOOTPRINT 2009
6
Russia
• 5% of sales
• Installed capacity -140k units/year
• 23% utilization rate
Turkey
• 21% of sales
• Installed capacity -400k units/year
• 33% utilization rate
EUA – Boerne
Sales Office and Distribution Center
Mexico
• 16% of sales
• Installed capacity –200k units/year
• 43% utilization rate
Brazil
• 59% of sales
• Installed capacity –529k units/year
• 56% utilization rate
Plants
Sales Offices
Total Capacity 1,270k units
Denmark
Sales Office and Distribution Center
7
PlantCelaya - Mexico
Distribution Center Boerne-USA
GLOBAL FOOTPRINT 2009 - AMERICAS
PlantTrês Lagoas - Brazil
8
PlantManisa - Turkey
Sales Offices / Distribution Center Aalestrup-Denmark
GLOBAL FOOTPRINT 2009 - EUROPE
Display Case Market
US$ 23.4 billion in 2007(1) US$ 4.3 billion in 2007(1)
9 (1) Freedonia Group
COMMERCIAL REFRIGERATION: A FRAGMENTED MARKET...
Commercial Refrigeration Market
18%
8%
11%
37%
26%
Display-cases
Ice Machines
Vending Machines
Parks & Other Products
Walk-in Coolers
t
Research by Euromonitor International
Ice Cream Market (2008)Soft Drinks Market (2008) Beer Market (2008)
CAGR 03-08 = 7.1%CAGR 03-08 = 9.5% CAGR 03-08 = 7.8%
Global market for ice cream, beer and soft drinks reached US$1,048.3 billion in 2008
10
...IN HIGH GROWTH CONSUMER SEGMENTS
Global market of
US$70.1 billion (2008)
Global market of
US$414.3 billion (2008)
Global market of
US$563.9 billion (2008)
FINANCIALHIGHLIGHTS
WHERE WE COME FROM…
Adjusted EBITDA (R$ million) (1) Net Income (R$ million)
Units Sold (‘000) Net Revenues (R$ million)
CAGR 05-0927.8%
CAGR 05-0931.5%
CAGR 05-0966.5%
12
(1) EBITDA adjusted for FX variations and tax incentive (new GAAP, 11.638); IPO expenses, non-recurring expenses, restructuring expenses and stock option plan.
(in R$ mn) 2007
Net Revenues 576
Gross Profit Margin 13.7%
SG&A (72)
Other op. income (26)
EBITDA (9)
Adjusted EBITDA(1) 37
Adj. EBITDA Margin 6.3%
D&A (10)
Financial result 31
Income tax(2) (11)
Net Income 1
Gross Profit margin going forward
Further migration of production to 3 Lagoas, Brazil
Internal production of key components
Absorption of production capacity
(1) Adjustments ‘07: FX variations and tax incentive (new GAAP, 11.638); IPO expenses and M&A related non-recurring expenses. Adjustments ‘08: FX variations and tax incentive (new GAAP, 11.638); M&A expenses and non-recurring expenses related to restructuring of production facilities. Adjustments ‘09: non-cash SOP provision.
Income Statement highlights
WHERE WE ARE GOING…
1Q08 2Q08 3Q08 4Q08
157 234 184 151
14.2% 17.2% 12.0% 0.1%
(17) (27) (27) (34)
1 (13) 16 (36)
8 7 20 (59)
10 20 10 (2)
6.6% 8.7% 6.3% -1.1%
(3) (8) (9) (11)
1 3 (5) (35)
(4) (7) 0 13
2 (5) 6 (92)
1Q09 2Q09 3Q09 4Q09
130 189 141 184
14.4% 21.9% 21.7% 20.9%
(21) (27) (24) (30)
5 5 3 6
3 24 14 20
7 25 15 21
5.7% 13.0% 10.8% 11.2%
(4) (5) (5) (5)
(22) 10 6 14
2 (9) (2) (10)
(17) 20 13 19
EBITDA margin going forward
Consolidation of restructuring program
Dilution of SG&A
1
2
1 2
Capacity utilization (2 shifts)(3) 48% 54% 63% 50% 48% 39% 55% 43% 56%
13
(2) Income tax, social contribution and minority shareholder interest.
(3) Seasonal production volumes take utilization up to 65% (2 shifts)
(in R$ mn) 4Q07
Invested capital(1) 272
Working capital (WCap) 182
WCap as % of net revenues 26%
Receivables (days) 59
Inventory (days 69
Suppliers (days) 38
Cash cycle 89
Net debt (54)
Net debt / EBTDA(3) n.a.
Working capital
Consolidation of production sites
Process revision
(1) Excluding Goodwill from acquisitions (mainly Klimasan).
(2) Consolidation of the Klimasan balance sheet without the corresponding P&LAdjusted, the days of receivables, inventory, suppliers and cash cycle are 74, 85, 42 and 118, respectively.
(3) Year-end adjusted EBITDA divided by net debt at end of period.
Operational highlights
WHERE WE ARE GOING…
1Q08 2Q08 3Q08 4Q08
420 426 460 372
309 306 312 207
49% 33% 42% 34%
101 81 91 82
110 67 85 76
58 37 39 43
153(2) 112 136 115
178 180 204 218
4.6x 4.6x 5.2x 5.6x
1Q09 2Q09 3Q09 4Q09
358 320 285 274
205 164 134 127
39% 22% 24% 20%
84 59 57 56
96 60 70 52
52 43 45 46
128 76 83 62
220 136 86 111
3.3x 2.0x 1.3x 1.6x
Net debt
Improved operational performance
1
2
1 2
14
• Listed on the Novo Mercado,
BM&FBovespa Stock
Exchange
• 25% minimum dividend payout ratio
• Board of Directors
– 3 directors indicated by Artesia shareholders
– 3 independent directors
– 8 annual board meetings
• 25% minimum dividend payout ratio
• All employees are eligible to participate in profit
sharing plan
– Over 40 associates eligible to participate in stock
option plan
Superior Governance Standards
• Investor Relations team and Investor Relations Website
• Simultaneous release in Portuguese and in English
High Standards of Corporate Disclosure
15
CORPORATE GOVERNANCE AND TRANSPARENCY
Ownership Structure
