pwc - global agribusiness deals activity
TRANSCRIPT
Deal Activity
Global Agribusiness
November 2014
1 Agribusiness News & Multiples 1
2 Markets Update 6
PageSection Overview
Table of Contents
PwC
November 2014
AgribusinessNews &Multiples
1
Global Agribusiness • Deal Activity
PwC
November 2014
NTM 2014F
1 2 .8x 1 3.6x
5.4x 6.8x
1 1 .2x 1 1 .2x
1 6.3 x 1 9.8x
6.1 x 6.4x
9.8x 1 0.2x
1 9.4x 21 .6x
5.1 x 5.3 x
1 4.6x 1 6.0x
49.0x 49.0x
12.0x 12.4x
15.0x 16.0x
NTM 2014F
1 4.3x 1 4.4x
1 1 .0x 1 1 .6x
1 2.8x 1 3 .6x
5.4x 6.8x
8.7 x 1 0.0x
1 3.3x 1 3 .9x
1 1 .9x 1 2 .8x
6.1 x 6.4x
9.8x 1 0.2x
1 9.4x 21 .6x
11.5x 12.2x
11.3x 12.1x
NTM 2014F
1 3 .5x 1 3 .9x
1 1 .3x 1 2.0x
1 1 .6x 1 1 .9x
1 2.9x 1 3 .6x
1 1 .6x 1 2.1 x
1 1 .0x 1 1 .6x
1 1 .2x 1 2.2x
1 6.5x 1 8.0x
1 9.1 x 1 9.7 x
n.a. n.a.
11.6x 12.2x
13.2x 13.9x
Section 1 – Agribusiness News & Multiples
2Global Agribusiness • Deal Activity
DairyRed Meat & PorkPoultry
Transaction multiples (EV/EBITDA)
Bidder/Target 1: Pershing Square Capital/Mondelez, 2: Groupe Lactalis/Lactalis Puleva, 3:Pepsi-Cola/Wimm-Bill-Dann Food, 4: Bank Hapoalim/Parmalat, 5: Société pour leFinancement de l'Industrie Laitière/Parmalat, 6: Suntory/Cerebos Pacific, 7: SavolaGroup/Almarai , 8: Trian Fund Management/ Danone, 9: Saputo Cheese Morningstar Foods,10: Prominent Achiever / China Mengniu Dairy Co., 11: China Mengniu Dairy Co./YashiliInternational, 12: FB Participações/Vigor Alimentos, 13: Qurain PetrochemicalIndustries/Saudia Dairy & Foodstuff, 14: First Pacific & Wilmar International /GoodmanFielder, 15: Qurain Petrochemical Industries/Saudia Dairy & Foodstuff.
Trading multiples (EV/EBITDA)
Dairy
M&A News
China: Danone Asia Baby Nutrition to acquire 25% inYashili for US$566m.
FrieslandCampina enters into JV with China HuishanDairy to produce and sell infant formula in China.
Australia: Perich Group plans to invest A$100m intoAustralian dairy to increase access to Asia.
France: Danone denies reports it has targeted MeadJohnson for acquisition.
South Africa: The Abraaj Group (UAE) announcedacquisition of majority stake in Liberty Star.
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
Red Meat & Pork
M&A News
Australia: Elders completes follow-on equity offeringof US$41.2m.
New Zealand: Cavalier Wool and New Zealand WoolServices announce plans to merge.
Management News
No relevant news.
Bidder/Target 1: West Face Capital/Maple Leaf Foods, 2: Boparan Holdings/Northern Foods,3: NA/Astarta Holding, 4: Leucadia/National Beef Packing, 5: TMK Holding/ National BeefPacking, 6: NA/Zhongpin, 7: Henan Shineway/Smithfield Foods, 8: DarlingIngredients/VION Ingredients, 9: NA/People's Food Holdings, 10: SigmaAlimentos/Campofrio Food Group, 11: L Sigma Alimentos/Campofrio Food Group, 12: JBSS.A , 13: Condorcet Opportunity / Campofrio Food Group, 14: Tyson Foods / The HillshireBrands.
Trading multiples (EV/EBITDA)Transaction multiples (EV/EBITDA)
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
Aug-10 Aug-11 Aug-12 Aug-13
Poultry
M&A News
France: Groupe Doux to sell 25% stake to SaudiArabian food group, Almunajem.
Management News
US: Foster Farms' President and CEO, Ron Foster, tostep down.
Bidder/Target 1: Old Mutual Investment Group / Sovereign Food Investment , 2: West FaceCapital / Maple Leaf Foods, 3: EASY BIO & FarmStory / Maniker Co., 4: Cherrybro Co ., 5:Sadia Alimentos / Avex S.A., 6: PT Japfa Comfeed / PT Multibreeder Adirama, 7: The Chefs'Warehouse Mid-Atlantic / Michael's Finer Meats & Seafoods, 8: Savola Group / Almarai, 9:Mitsubishi / Yonekyu, 10: Bellisio Foods / Overhill Farms.
Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)
0.0x
5.0x
10.0x
15.0x
20.0x
Feb-10 Feb-11 Feb-12 Feb-13
Sources: S&P Capital IQ, Factiva, PwC research
Nestlé S.A.
Unilev er plc
Unilev er NV
Mondelez International, Inc.
Danone
Kraft Foods Group, Inc.
General Mills, Inc.
Mead Johnson Nutrition Com pany
Keurig Green Mountain, Inc.
Want Want China Holdings Ltd.
Median
Average
Associated British Foods plc
Kraft Foods Group, Inc.
BRF S.A.
Ty son Foods, Inc.
Henan Shuanghui Inv estment &
Kerry Group plc
Hormel Foods Corporation
JBS S.A.
Uni-President Enterprises Corporation
Univ ersal Robina Corporation
Median
Average
BRF S.A.
Ty son Foods, Inc.
Campbell Soup Company
Almarai - Joint Stock Company
JBS S.A.
Uni-President Enterprises Corporation
Univ ersal Robina Corporation
Pilgrim's Pride Corporation
Charoen Pokphand Foods Public Co. Ltd.
PPB Group Berhad
Median
Average
PwC
November 2014
NTM 2014F
1 3.4x 1 3.9x
8.5x 8.9x
9.7 x 9.5x
2 3.3 x 2 3.3 x
9.7 x 9.7 x
7 .9x 8.1 x
9.3 x 9.3 x
-653.0x -653.0x
1 0.3 x 1 0.3 x
n.a. 2 2.1 x
9.7x 9.6x
NTM 2014F
1 5.2x 1 5.0x
1 3.4x 1 3.9x
1 7 .9x 1 8.7 x
1 3.4x 1 4 .1 x
4 0.6x 51 .0x
1 2.6x 1 3.3x
3.8x 4.3x
1 0.9x 1 1 .4x
1 3.4x 1 3.4x
n.a. n.a.
13.4x 13.9x
15.7 x 17.2x
NTM 2014F
7 .9x 9.3x
n.a. n.a.
7 .3x 8.3x
1 6.1 x 1 6.7 x
1 3 .8x 1 4.2x
n.a. n.a.
8.5x 8.9x
n.a. n.a.
1 5.1 x 1 7 .2x
9.7 x 9.5x
9.7x 9.5x
11.2x 12.0x
Grain & BeansFruit, Vegetables & NutsViticulture
Section 1 – Agribusiness News & Multiples
3Global Agribusiness • Deal Activity
Grains & Beans
M&A News
UK: Camgrain rejects takeover bid by Fengrain.
Germany: German co-op Agravis and two Danishpartners reported to acquire German grain traderGetreide.
US: Andersons acquired Auburn Bean & Grain Co.from The KMA Group for US$34.m.
Management News
Australia: Stuart Murdoch stepped down as chairmanof the Australian Grain Growers Co-operative .
Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)
Bidder/Target 1: GrainCorp. / GrainCorp Malt, 2: Tradewinds Malaysia / Padiberas NasionalBhd, 3: Felda Global Ventures / Tradewinds Malaysia, 4: NA/ Kernel Holding, 5: PT SalimIvomas Pratama / PT Perusahaan Perkebunan London Sumatra, 6: PT Bakrie SumateraPlantations / Agri International Resources, 7: Vertical Capacity / IOI Corp., 8: SeaportTerminal (Johor), Acara Kreatif Sdn, Kelana Ventures/Padiberas Nasional, 9: SeaportTerminal (Johor), Acara Kreatif Sdn, Kelana Ventures / Tradewinds Malaysia , 10: Bollore/Plantations Des Terres Rouges, 11: Seaport Terminal (Johor), Acara Kreatif Sdn, KelanaVentures / Padiberas Nasional Bhd, 12: , PT Krishna Kapital/ PT Dharma Satya Nusantara.
0.0x
5.0x
10.0x
15.0x
20.0x
Oct-09 Oct-10 Oct-11 Oct-12 Oct-13
Fruit, Vegetables & Nuts
M&A News
US: Chiquita Brands to merge with Brazil’s GrupoCutrale and Safra Group in $1.3b deal after rejectingmerger with Fyffes (Ireland).
Papua New Guinea: Sime Darby Plantation makesUS$1.76b offer for New Britain Palm Oil.
Malaysia: Felda Global Ventures acquired AsianPlantations for US$159m.
US: Archer-Daniels-Midland to acquire SpecialtyCommodities for US$170m.
C&S Wholesale Grocers to acquire bankrupt AssociatedWholesalers for US$288m
Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)
Bidder/Target 1: Eco-Trade Corp/YaSheng Group, 2: Bonduelle SA/France Champignon, 3:Inversiones Frutícolas / Copefrut, 4: ITOCHU/ Dole, Worldwide Packaged Foods and AsiaFresh Produce Businesses, 5: Dramd Participações e Administração / Rasip Agro Pastoril, 6:Golden Target Pacific / Camposol Holding, 7: Almarai / Continental Farmers Group, 8:Walden International / Le Gaga Holding, 9: D&C Group/ Camposol Holding, 10: GrupoNutresa/ Setas Colombianas, 11: D&C Group/ Camposol Holding, 12: Valles Del Sur/Hortifrut S.A., 13: Arlon Group/ Alico Inc., 14: FMR Rentas Generales/ Fruticola VicontoS.A., 15: D&C Group/ Camposol Holding, 16: Property & Building Corp./ Mehadrin, 17: NA/Hortifrut.
0.0x
10.0x
20.0x
30.0x
40.0x
Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14
Viticulture
M&A News
No relevant news.
Management News
No relevant news.
Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)
Bidder/Target 1: Advini/Laroche, 2: Nikora/JSC Teliani Valley, 3: Remgro and ZederInvestment /Capevin Holdings, 4: Kirin/Mercian, 5: SVL/Abrau-Durso, 6: NA/MagnottaWinery, 7: Sogrape Vinho/Bodegas Lan, 8: Tempo Beverages/Barkan Wine Cellars, 9: FMRRentas Generales/Viñedos Emiliana, 10: FMR Rentas Generales/ Treasury Wine Estates, 11:NA/ Schlumberger, 12: NA/ Schlumberger.
0.0x
10.0x
20.0x
30.0x
40.0x
50.0x
Sep-09 Sep-10 Sep-11 Sep-12 Sep-13
Sources: S&P Capital IQ, Factiva, PwC research
Archer-Daniels-Midland Com pany
Wilmar International Limited
Bunge Lim ited
IOI Corp.Bhd
Kuala Lumpur Kepong Berhad
Golden Agri-Resources Ltd
PT Astra Agro Lestari Tbk
First Resources Limited
Genting Plantations Berhad
KWS SAAT AG
Median
Average
Diageo plc
Pernod-Ricard SA
Brown-Forman Corporation
Constellation Brands Inc.
United Spirits Limited
Dav ide Campari - Milano SpA
LT Group, Inc.
Treasury Wine Estates Limited
Distell Group Limited
Yantai Changy u Pioneer Wine Co. Ltd.
Median
Average
Felda Global Ventures Holdings Berhad
PT Astra Agro Lestari Tbk
KWS SAAT AG
Gansu Yasheng Industr ial (Group) Co., Ltd.
United Plantations Bhd
Fresh Del Monte Produce Inc.
Kulim (Malay sia) Berhad
Xinjiang Guannong Fruit & Antler
Sarawak Oil Palms Bhd
Kav eri Seed Com pany Limited
Median
PwC
November 2014
NTM 2014F
7 .0x 8.5x
n.a. 7 .3 x
6.7 x 7 .7 x
n.a. n.a.
21 .0x 2 6.6x
1 3.3x 1 5.2 x
n.a. n.a.
6 .5x 7 .6x
n.a. n.a.
7 .7 x 8.8x
7.3x 8.5x
10.4x 11.7x
NTM 2014F
1 2.0x 1 3.5x
n.a. n.a.
n.a. n.a.
7 .4x 8.2x
1 4.7 x 1 5.7 x
7 .4x 7 .1 x
n.a. n.a.
6.4x 6.2x
n.a. n.a.
n.a. n.a.
7.4x 8.2x
9.6x 10.1x
NTM 2014F
7 .7 x 7 .9x
8.2 x 8.1 x
n.a. n.a.
8.7 x 8.5x
n.a. n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
n.a. n.a.
8.2x 8.1x
8.2x 8.2x
ForestryLandscape & HorticultureFertiliser & Agricultural Chemicals
Section 1 – Agribusiness News & Multiples
4Global Agribusiness • Deal Activity
Transaction multiples (EV/EBITDA)
Bidder/Target 1: Placas do Parana /Arauco do Brasil, 2: FV S.A./Fiplasto S.A., 3:Meerwind/Rörvik Timber, 4: LIXIL Group/Hivic Co., 5: Viking Investments Group/ChinaWood, 6: Viking Investments Group/China Wood, 7: Samling Strategic / Samling Global, 8:Samling Global / Lingui Developments, 9: Mill Road Capital / PRT Growing Service, 10:Rentech /Fulghum Fibres, 11: Weyerhaeuser / Longview Timber, 12: Boise Cascade WoodProducts / Chester Wood & Moncure Plywood, 13: Louisiana-Pacific / Ainsworth Lumber, 14:Interfor / Tolleson Lumber, 15: Rentech / New England Wood.
Trading multiples (EV/EBITDA)
Forestry
M&A News
No relevant news.
Management News
No relevant news.
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
Aug-09 Aug-10 Aug-11 Aug-12 Aug-13
Landscape & Horticulture
M&A News
Australia: ‘Darling Farms’, a 14,676 ha cottonproperty has been sold by the Buster and Cole familiesfor an undisclosed amount to a New South Walescompany.
Management News
Peter Kendall resigned as President of the WorldFarmers’ Organisation (WFO) Board.
Bidder/Target 1:Massey Services / Sunair Services, 2: na / Cypark Resources Berhad, 3: na /Parkwood HoldingS.
Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)
0.0x
5.0x
10.0x
15.0x
Sep-09 Sep-10 Sep-11 Sep-12 Sep-13
Fertiliser & Agricultural Chemicals
M&A News
US: Platform Specialty Products to acquire ArystaLifeScience for US$3.5b pending regulatory approval.
Argentina: Bunge and Cooperativas Argentinasacquired assets of Mosaic de Argentina for US$50m.
US: Bayer CropScience and DuPont Crop Protectionannounce agreement for Bayer to purchase DuPontCrop Protection Land Management assets in the NorthAmerica and Australasia.
Norway: CF Industries calls off merger talks with rivalYara International.
Trading multiples (EV/EBITDA)
Bidder/Target 1: Koor Industries/ADAMA , 2: CF Industries/Terra Industries, 3: ChinaNational Chemical / ADAMA, 4: Uralkali /Silvinit, 5: Sumitomo Chemical / Nufarm, 6:Mineracao Naque/ Vale Fertilizantes, 7: Menoza Trading / OJSC PhosAgro, 8: CJSC Holding/ SBU Azot, 8: EuroChem/K+S Aktiengesellschaft, 10: Youngor Investment/KingentaEcologic Engineering, 11: Norica /Grupa Azoty, 12: Grupa Azoty Spólka Akcyjna/ZakladyAzotowe Pulawy Spolka Akcyjna, 13: ADAMA /Hubei Sanonda Co., 14: Jiang YinHanying/Jiangsu ChengXing Phosph-Chemicals, 15: Yara International/OFD Holding, 16:EDAILY Co./ KG Chemical, 17: Adorabella/OJSC PhosAgro, 18: Platform Specialty Products/Chemtura AgroSolutions, 19: Yara International/Galvani Indústria, Comércio E Serviços.
Transaction multiples (EV/EBITDA)
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
Aug-09 Aug-10 Aug-11 Aug-12 Aug-13
West Fraser Timber Co. Ltd.
Canfor Corp.
Duratex SA
Guangdong Weihua Corporation
Louisiana-Pacific Corp.
Stella-Jones Inc.
Zhongfu Straits (Pingtan)
Boise Cascade Com pany
Norbord, Inc.
Suzano Papel e Celulose S.A.
Median
Average
Rentokil Initial plc
MITIE Group PLC
Tianjin Teda Co., Ltd.
Cy park Resources Berhad
National Cleaning Co. (S.A.K.Closed)
Pan Pacific Corporation
800 Super Holdings Lim ited
UNIVERSAL ENGEISHA Co., Ltd.
Dionics Inc.
Median
Average
Monsanto Company
Sy ngenta AG
Potash Corp. of Saskatchewan, Inc.
The Mosaic Com pany
Saudi Arabian Fertilizer Company
CF Industries Holdings, Inc.
Agrium Inc.
Yara International ASA
Israel Chemicals Ltd.
Open Joint Stock Company Uralkali
Median
Average
Sources: S&P Capital IQ, Factiva, PwC research
PwC
November 2014
NTM 2014F
1 5.2x 1 3.7 x
1 1 .2x 1 1 .5x
1 0.8x 1 2.3x
8.0x 5.9x
9.7 x 1 0.6x
n.a. n.a.
n.a. n.a.
1 0.0x 9.7 x
8.9x 1 0.7 x
8.4x 9.0x
9.8x 10.7x
10.3x 10.4x
NTM 2014F
1 4.6x 1 6.0x
7 .1 x 8.8x
1 4.5x 1 6.2x
9.5x 1 0.0x
1 4.7 x 1 6.3 x
7 .8x 8.0x
1 1 .3 x 1 2 .3 x
8.0x 7 .8x
6.6x 7 .3 x
1 0.2x 1 1 .9x
9.9x 10.9x
10.4x 11.5x
Agricultural Products & MachineryFishery
Section 1 – Agribusiness News & Multiples
5Global Agribusiness • Deal Activity
Agricultural Products & Machinery
M&A News
US: Salford Group, manufacturer of tillage, seedingand fertilizer application equipment, acquired BBISpreaders with support from GenNx360 Capital.
Netherlands: Nutreco director’s have supportedUS$3.4b takeover deal by Dutch investment firm SHV.The offer of €40 per share represented a 42% premiumto Nutreco’s traded price.Management News
US: Cargill name Sarena Lin as president of thecompany's global compound feed business unit.
Bidder/Target 1: Woodstream/Zareba Systems, 2: Ag Growth International/Mepu Oy, 3:Converted Organics/TerraSphere Systems, 4: Blount/SpeeCo, 5: Kubota/Kverneland ASA, 6:Paine & Partners/Eurodrip SA, 7: Seoul Moongo Co. / Daedong Industrial Co., 8: Danfoss/Sauer-Danfoss Inc., 9: NA/ China Farm Equipment, 10: Silverfleet Capital / Cimbria, 11: P&PWater Holding / Eurodrip S A, 12: MHR Fund Management / Titan International.
Trading multiples (EV/EBITDA)Transaction multiples (EV/EBITDA)
0.0x
5.0x
10.0x
15.0x
20.0x
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)
Fishery
M&A NewsNorway: MC Ocean (Mitsubishi Corp) acquiresCermaq ASA for US$1.31b.
Chile: EWOS acquired Nova Austral from Acuinovaand Pesca Chile for US$180m.
AquaChile to purchase controlling stake in Invermar.
CANADA: Zhangzidao (now Zoneco - China )announced acquisition of Canadian lobster processor,Capital Seafood International. The company said itplanned more acquisitions, “most likely in NovaScotia.”
Bidder/Target 1: Thai Union Frozen Products/MW Brands, 2: Boparan Holdings/NorthernFoods, 3: Corporacion Economica Damm / Pescanova, 4: Luxempart / Pescanova, 5: OrklaBrands / Rieber & Søn, 6: Tiger Brands / Oceana Group, 7: Geveran Trading Co ./ MarineHarvest ASA, 8: Profond Holding / Marine Harvest, 9: China Fishery Group / Copeinca, 10:Geveran Trading Co. / Marine Harvest, 11: RCL Foods / Foodcorp, 12: China FisheryGroup/Copeinca, 13: CFG Investment / Copeinca.
0.0x
10.0x
20.0x
30.0x
40.0x
Jul-10 Jul-11 Jul-12 Jul-13
Charoen Pokphand Foods Public Co. Ltd.
Marine Harv est ASA
PT Indofood CBP Sukses Makm ur Tbk
NH Foods Lim ited
CALBEE, Inc.
Toy o Suisan Kaisha Ltd.
Thai Union Frozen Products Public
SalMar ASA
Lerøy Seafood Group Asa
Guangdong Haid Group Co., Lim ited
Median
Average
Deere & Company
Kubota Corporation
CNH Industrial N.V.
AGCO Corporation
Toro Co.
Turk Traktor v e Ziraat Makineleri
First Tractor Co. Ltd.
Lindsay Corporation
Titan International Inc.
Jain Irrigation Sy stems Limited
Median
Average
Sources: S&P Capital IQ, mergermarket, PwC research
PwC
November 2014
MarketsUpdate
6
Global Agribusiness • Deal Activity
PwC
November 2014
Macroeconomic and Foreign Exchange Data
Section 2 – Markets Update
7
Global Agribusiness • Deal Activity
Source: S&P Capital IQ
FX – Spot rates FX – Week-to-date % change
Macroeconomic indicators
Notes: Real GDP growth represents the forecast percent change for the next quarter from the year ago period • CPI Inflation represents the forecast percent change in theConsumer Price Index for the next month from the year ago period • Unemployment rate represents the latest available actual unemployment rate and is based on the ILOmethodology which can differ from domestic methodologies • Retail Sales growth represents the actual percent change for the latest available month from the year ago period •Real Private Consumption Growth represents the actual percent change for the latest available quarter from the previous period • Consumer Confidence Index represents theactual level of the index for the latest available month • Producer Price Index represents the actual level of the index for finished goods for the latest available month • CapacityUtilisation represents the actual utilisation for the latest available month
Note: Straight line shows historical spot prices, dotted marked line shows futures prices. Price development table is based on most actively traded futures contract.
FX – Year-to-date % changeFX – Month-to-date % change
EUR USD BRL CNY INR
1 EUR - -1 .97 % -1 .07 % -1 .90% -1 .66%
1 USD 2.01 % - 0.92% 0.08% 0.32%
1 BRL 1 .08% -0.91 % - -0.84% -0.60%
1 CNY 1 .93% -0.08% 0.84% - 0.24%
1 INR 1 .69% -0.32% 0.60% -0.24% -
80.00
85.00
90.00
95.00
100.00
105.00
110.00
115.00
120.00
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 8 6 .2 5 Week-to-date 0.3 0%
52-w eek low 8 4 .5 2 Month-to-date 0.0 0%
52-w eek high 1 1 5 .06 Y ear-to-date -2 2 .7 1 %
Dev elopm ent - Cru de Oil
Latest price 1 ,1 7 2 .5 1 Week-to-date -4 .3 8 %
52-w eek low 1 ,1 6 1 .3 7 Month-to-date 0.0 0%
52-w eek high 1 ,3 9 1 .7 6 Y ear-to-date -2 .7 2 %
Dev elopm ent - Gold
1,100.00
1,150.00
1,200.00
1,250.00
1,300.00
1,350.00
1,400.00
Nov-2013 Feb-2014 May-2014 Aug-2014 Nov-2014
EUR USD BRL CNY INR
1 EUR - 1 .2493 3.1 31 9 7 .6436 7 6.7 1 31
1 USD 0.8005 - 2.5069 6.1 1 83 61 .4050
1 BRL 0.31 93 0.3989 - 2.4406 24.4944
1 CNY 0.1 308 0.1 634 0.4097 - 1 0.0363
1 INR 0.01 30 0.01 63 0.0408 0.0996 -
EUR USD BRL CNY INR
1 EUR - -0.26% 1 .7 1 % -0.1 7 % -0.34%
1 USD 0.26% - 1 .98% 0.09% -0.07 %
1 BRL -1 .68% -1 .94% - -1 .85% -2.01 %
1 CNY 0.1 7 % -0.09% 1 .88% - -0.1 6%
1 INR 0.34% 0.07 % 2.05% 0.1 6% -
EUR USD BRL CNY INR
1 EUR - -9.28% -3.7 1 % -8.32% -9.90%
1 USD 1 0.23% - 6.1 4% 1 .06% -0.68%
1 BRL 3.85% -5.7 9% - -4.7 9% -6.43%
1 CNY 9.07 % -1 .05% 5.03% - -1 .7 2%
1 INR 1 0.99% 0.68% 6.87 % 1 .7 5% -
Indicator Brazil China India Germany EU US Japan
Real GDP growth 1 .9% na na 2.2% 1 .6% 1 .9% 2.7 %
CPI Inflation 6.2% 2.1 % 8.9% 1 .2% 1 .1 % 1 .8% 3.0%
Unemploy ment rate 4.9% na na 5.0% 1 0.0% 5.9% 3.6%
Real Priv ate Consumption growth -0.5% na na 0.1 % 0.0% 0.4% -5.1 %
Producer Price Index na na na na na na na
Trade Balance na na na 7 07 .24 na -1 ,87 5.98 -288.61
PwC
November 2014
Commodities (1/2)
Section 2 – Markets Update
8
Global Agribusiness • Deal Activity
Corn ($ per bu. – CBOT: ^C)
Oats ($ per bu. – CBOT: ^O)
Soybean Meal ($ per T – CBOT: ^SM)
Wheat ($ per bu. – CBOT: ^W)
Soybeans ($ per bu. – CBOT: ^S)
Sugar #11 ($ per lb – ICE: ^SB)
Source: S&P Capital IQ
Note: Straight line shows historical spot prices, dotted marked line shows futures prices. Price development table is based on most actively traded futures contract.
3.00
3.50
4.00
4.50
5.00
5.50
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 3 .7 3 Week-to-date 5 .4 0%
52-w eek low 3 .2 4 Month-to-date 0.0 0%
52-w eek high 5 .1 9 Y ear-to-date -1 0 .7 9 %
Dev elopm ent - Corn
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 4 .4 9 Week-to-date 2 .2 8 %
52-w eek low 3 .2 6 Month-to-date 0.0 0%
52-w eek high 7 .4 4 Y ear-to-date -2 9 .8 0%
Dev elopm ent - Wh eat
3.00
3.50
4.00
4.50
5.00
5.50
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 2 .05 Week-to-date -6 .7 0%
52-w eek low 2 .05 Month-to-date 0.0 0%
52-w eek high 2 .7 2 Y ear-to-date -5 .0 8 %
Dev elopm ent - Oat s
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 1 0.2 2 Week-to-date 4 .2 9 %
52-w eek low 8 .8 2 Month-to-date 0.0 0%
52-w eek high 1 5 .2 8 Y ear-to-date -2 1 .5 8 %
Dev elopm ent - Soy bea n
290.00
340.00
390.00
440.00
490.00
540.00
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 4 4 2 .00 Week-to-date 3 .3 2 %
52-w eek low 3 4 0.3 0 Month-to-date 0.0 0%
52-w eek high 6 1 8 .7 0 Y ear-to-date -1 0 .4 7 %
Dev elopm ent - Soy bea n
0.14
0.15
0.16
0.17
0.18
0.19
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 0 .1 6 Week-to-date 0.0 6 %
52-w eek low 0 .1 4 Month-to-date 0.0 0%
52-w eek high 0 .1 8 Y ear-to-date -2 .2 5 %
Dev elopm ent - Su ga r
PwC
November 2014
Commodities (2/2)
Section 2 – Markets Update
9
Global Agribusiness • Deal Activity
Cocoa ($ per MT – ICE: ^CC)
Rice – Rough #2 ($ per cwt. – CBOT: ^RR)
Crude Palm Kernel Oil ($ per MT – KLSE: ^QF)
Coffee – Columbian ($ per lb – ICE: ^KC)
Soybean Oil ($ per lb – CBOT: ^BO)
Milk – Class III ($ per lb – CME: ^DA)
Source: S&P Capital IQ
Note: Straight line shows historical spot prices, dotted marked line shows futures prices. Price development table is based on most actively traded futures contract.
2,600.00
2,700.00
2,800.00
2,900.00
3,000.00
3,100.00
3,200.00
3,300.00
3,400.00
3,500.00
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 3 ,2 3 9 .00 Week-to-date -4 .2 6 %
52-w eek low 2 ,9 2 7 .00 Month-to-date 0.0 0%
52-w eek high 3 ,6 7 9 .00 Y ear-to-date 4 .8 2 %
Dev elopm ent - Cocoa
12.00
12.50
13.00
13.50
14.00
14.50
15.00
15.50
16.00
16.50
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 1 2 .06 Week-to-date -1 .5 2 %
52-w eek low 1 2 .06 Month-to-date 0.0 0%
52-w eek high 1 5 .5 7 Y ear-to-date -2 0.1 9 %
Dev elopm ent - Rou gh Rice
0.31
0.33
0.35
0.37
0.39
0.41
0.43
0.45
0.47
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 0.3 6 Week-to-date 7 .7 3 %
52-w eek low 0.3 3 Month-to-date 0.0 0%
52-w eek high 0.4 3 Y ear-to-date -2 .1 1 %
Dev elopm ent - Soy bea n
610.00
660.00
710.00
760.00
810.00
860.00
910.00
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 6 9 7 .7 5 Week-to-date 4 .4 9 %
52-w eek low 6 1 8 .00 Month-to-date 0.0 0%
52-w eek high 8 8 7 .7 5 Y ear-to-date -1 3 .0 3 %
Dev elopm ent - Palm Oil
0.16
0.18
0.20
0.22
0.24
0.26
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 0 .1 5 Week-to-date -0.4 6 %
52-w eek low 0 .1 2 Month-to-date 0.0 0%
52-w eek high 0 .1 5 Y ear-to-date 2 5 .2 8 %
Dev elopm ent - Milk
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
Nov-2013 Mar-2014 Jul-2014 Nov-2014 Mar-2015 Jul-2015
Latest price 2 .07 Week-to-date -0.4 2 %
52-w eek low 1 .2 0 Month-to-date 0.0 0%
52-w eek high 2 .3 9 Y ear-to-date 6 1 .9 4 %
Dev elopm ent - Coffee
PwC
November 2014
Equity Indices
Section 2 – Markets Update
10
Global Agribusiness • Deal Activity
MSCI USA
MSCI Pacific
MSCI World/Food Products (Industry Index)
MSCI Europe
MSCI BRIC
MSCI World/Retailing (Industry Group Index)
Source: S&P Capital IQ
0
500
1,000
1,500
2,000
2,500
Nov-2009 Nov-2010 Nov-2011 Nov-2012 Nov-2013
Latest value 1 ,9 2 7 .4 4 Week-to-date 2 .6 9 %
52-w eek low 1 ,6 6 7 .6 0 Month-to-date 0.00%
52-w eek high 1 ,9 2 7 .4 4 Year-to-date 8.9 9 %
Dev elopm ent - MSCI USA
0
500
1,000
1,500
2,000
Nov-2009 Nov-2010 Nov-2011 Nov-2012 Nov-2013
Latest value 1 ,6 4 0.2 2 Week-to-date 1 .8 1 %
52-w eek low 1 ,5 4 1 .3 6 Month-to-date 0.00%
52-w eek high 1 ,8 4 5 .7 3 Year-to-date -6 .7 6 %
Dev elopm en t - MSCI Eu rope
0
500
1,000
1,500
2,000
2,500
3,000
Nov-2009 Nov-2010 Nov-2011 Nov-2012 Nov-2013
Latest value 2 ,3 8 3 .1 0 Week-to-date 3 .09 %
52-w eek low 0.00 Month-to-date 0.00%
52-w eek high 0.00 Year-to-date -1 .9 5 %
Dev elopm en t - MSCI Pa cific
0
50
100
150
200
250
300
350
400
Nov-2009 Nov-2010 Nov-2011 Nov-2012 Nov-2013
Latest value 2 8 0.8 7 Week-to-date 4 .03 %
52-w eek low 0.00 Month-to-date 0.00%
52-w eek high 0.00 Year-to-date 0.8 8 %
Dev elopm en t - MSCI BRIC
0
50
100
150
200
250
Nov-2009 Nov-2010 Nov-2011 Nov-2012 Nov-2013
Latest value 2 1 5 .4 9 Week-to-date 2 .6 3 %
52-w eek low 1 9 4 .5 2 Month-to-date 0.00%
52-w eek high 2 2 6 .6 2 Year-to-date 3 .1 0%
Dev elopm en t - MSCI World/Food Produ ct s (Indu st ry Index)
0
50
100
150
200
250
300
Nov-2009 Nov-2010 Nov-2011 Nov-2012 Nov-2013
Latest value 2 4 9 .1 7 Week-to-date 2 .9 3 %
52-w eek low 2 2 7 .06 Month-to-date 0.00%
52-w eek high 2 5 1 .7 5 Year-to-date -1 .03 %
Dev elopm ent - MSCI World/Ret ailing (Indu st ry Grou p Index)
PwC
November 2014
Section 2 – Markets Update
11Global Agribusiness • Deal Activity
Credentials
Advisor to InnerMongolia Yili IndustrialGroup investigations of
NZ dairy processingopportunities including
full due diligence.
Sell Side advice toRavensdown
on divestment of 100%of western Australian
operation to LouisDreyfus Commodities.
PwC advised on the saleof a cornerstone
shareholding in DHL,one of New Zealand’slargest Dairy Farming
Businesses.
Buy side advisory onacquisition of Coop
Farms estate for£249m in one of thelargest land sales in
Britain of circa 40,000acres.
Buy-side financial duediligence on Cardinal
Foods on behalf ofLantmännen ek för.
Disposal of majoritystake in QinYuan
Bakery to EQT GreaterChina II Fund
Sell-side advisory
Bright Sugar Co. Ltd.Acquisition of 60%
stake in Yunnan YinMore Sugar Co. Ltd.
Buy-side advisory
Guan Sheng YuanDisposal of sharesto CITIC Capital
Holdings Ltd.
Sell-side advisory
Sale of
toKoch Fertiliser
Vendor advised by
Refinancing of
ShareholdersAdvised by
Advisor to HoogwegtGroep on the
acquisition of 60% ofthe shares in Meelunie
from Coöperatie AVEBE
Advisor toFrieslandCampina on
the sale of itsElsterwerda plant based
in Germany toOdenwald Fruechte
Due diligence advisor toMcCain in the
acquisition of Lutosa
Debt advisor tomanagement of
Heiploeg on its capitalstructure
Total debt€130m
Buy-side due diligence(financial, tax, pensionand IT), tax structuringand indicative valuation
advice on the mergerwith MUH
Financial Advisory
PwC
November 2014
Section 2 – Markets Update
12
Global Agribusiness • Deal Activity
PwC is the leading global M&A advisor with astrong international network
At any given time PwC has approximately 450 live sale mandates. Globally, we advise on over 300 dealsper year.
PwC Ranking FY’13
• Global M&A: 1st
• European M&A: 1st
• European Buyouts: 1st
• UK M&A: 1st
• Spanish M&A: 1st
• Nordic M&A: 1st
• Swedish M&A: 1st
• Denmark M&A: 1st
• Finland M&A: 1st
• Iberian M&A: 1st
• Asia Pacific (excl. Japan): 1st
Volume
1 PwC 347
2 Goldman Sachs 304
3 KPMG 275
4 Morgan Stanley 261
5 JPMorgan 244
Rank Advisor
Global
Volume
1 Goldman Sachs 211
2 Morgan Stanley 171
3 JPMorgan 158
4 Bank of America Merryl Lynch 149
15 PwC 82
Rank Advisor
West Cluster
Volume
1 PwC 94
2 EY 63
3 KPMG 62
4 Goldman Sachs 61
5 UBS Investment Bank 58
Rank Advisor
East Cluster
Volume
1 PwC 235
2 KPMG 182
3 EY 171
4 Deloitte 158
5 Rothschild 151
Rank Advisor
Central Cluster
Source: MergerMarket M&A Trend Report 2013
PwC
November 2014
Agribusiness Network
Section 2 – Markets Update
13
Global Agribusiness • Deal Activity
Global CF LeaderCornelis Smaal+31 88 792 [email protected] Tomatis+ 54 11 4850 [email protected] Barrichi+ 54 341 446 [email protected] Heraghty+61 282 661 [email protected] Rezende+55 11 3674 [email protected] Barbosa+55 16 2133 [email protected] Coco+55 19 [email protected] Robidoux204 926 [email protected] Oldfield+44 (0) 771 [email protected] Lyn+86 10 6533 [email protected] Wong+86 21 2323 [email protected] Pelle+ 33 (0) 299 231 [email protected]
GermanyNorbert Niedenhof+49 (0) 541 3304 [email protected] Kakra+91 124 [email protected] VS+91 124 [email protected] Satar+62 21 5289 [email protected] Maher+353 (0) 1 792 [email protected] J Wyborn+81 33 546 [email protected] Iwashima+81 3 6266 [email protected] Webster+966 11 211 0400 (Ext. 1555)[email protected] Jansze+31 (0) 88 792 [email protected] Emanuels+31 6 2042 [email protected] ZealandCraig Armitage+64 3 374 [email protected] Hoult+64 9 355 [email protected]
Peter McMenamin+64 3 374 [email protected] Scurtescu+40 21 22 53 [email protected] Skinner+65 9823 [email protected] AfricaFrans Weilbach+27 (21) 815 [email protected] Gustafsson+46 709 294 [email protected]. Martin Frey+41 58 792 15 [email protected] Volkova+38 (0) 56 733 [email protected] Hennigan+44 (0) 7841 [email protected] James+44 (0) 7803 [email protected] Sengbusch44 (0) 7725 [email protected] Johnson+1 612 596 [email protected] Gaffney+1 216 875 [email protected]