Parmalat FY 2009 Results

Transcription

1 February 25 th, 2010 Parmalat FY 2009 Results Listed on the Italian Stock Exchange since October 6 th, 2005

2 Imortant information This resentation has been reared by Parmalat (the Comany ) for illustrative uroses only for use in communicating with the financial community. Readers are advised to refer to the ress release issued by the Comany on February 25 th 2010, which contains the secific accounts and related matters aroved by the Comany s Board of Directors. Please note that this resentation is based on 2008 and 2009 reorted financial results No reliance should be laced for any uroses whatsoever on the information contained in this resentation or on any other materials that may be discussed at the resentation, or on its comleteness, accuracy, or fairness of any information contained in this resentation or of any other materials discussed at the resentation. Although care has been taken to ensure that the facts stated in this resentation are accurate, and that the oinions exressed are fair and reasonable, no reresentation or warranty, exress or imlied, is made or given by, or on behalf of, the Comany or any of its resective members, directors, officers, emloyees, advisors, or any other erson as to the accuracy, comleteness or fairness of the information or oinions contained in this resentation or any other material discussed at the resentation. None of the Comany or any of its resective members, directors, officers, emloyees, advisors nor any other erson accets any liability whatsoever for any loss howsoever arising from any use of this resentation or any other materials discussed at the resentation or otherwise arising in connection therewith. The oinions exressed in the resentation may be those of the resenter(s) and may not be formally endorsed by the Comany or its Board of Directors The information in this document may include forward-looking statements which are based on current exectations and rojections about future events. These forward-looking statements, as well as those included in any other material discussed at the resentation, are subject to risks, uncertainties and assumtions about the Comany and its subsidiaries and investments, including, among other things, the develoment of its business, trends of its oerating industry, and future caital exenditures and acquisitions. In light of these risks, uncertainties and assumtions, the events in the forward-looking statements may not occur. No one undertakes to ublicly udate or revise any forward-looking statement The information and oinions contained in this resentation are based on historical information. Facts and exectations about the Comany and its financial condition are subject to change and Parmalat disclaims any obligation to udate the facts reflected and the statements contained herein either at the resentation or after the resentation By attending the resentation you agree to be bound by the foregoing limitations Figures are in millions unless otherwise stated. Totals may not add due to rounding and % are calculated on units 2

3 2009 Highlights Grou oerations Grou financials 3. Venezuela 4. Legal 5. Cororate events 6.

4 2009 key highlights Oerations Increased suort on key Parmalat brands Cost reduction rojects imlemented Recovery of South Africa and Australia Australia: acquisition and integration comleted; synergies in rogress Financial 2.8% Revenue growth ( 3,964.8 m) 9.3% EBITDA Margin ( m b vs. 2008) Strong cash flow from oerations ( m) and net cash osition ( 1,384.6 m) Shareholder 2009 dividends ( 69.8 m interim dividend aid in Setember 2009, balance m to be aid in Aril 2010) Grou Structure: Simlification of Control chain comleted Financial structure otimisation to be comleted by December 2010 Legal matters Settlements: m (of which m deconsolidation of debt vs./third arty) Citigrou aeal fully briefed 4

5 FY 2009 key consolidated financial figures REVENUE 3,964.8 m (growth % vs 2008) NET CASH POSITION 1,384.6 m EBITDA (1) m Margin 9.3 % (+17.7 % vs 2008) CASH FLOW FROM OPERATIONS m (1) The oerating margin does not include restructuring costs and legal fees for revocatory and damages 5

6 Share caital m Extr. Gen. Meeting Setember 19, 2005 Extr. Gen. Meeting Aril 29, 2007 Udate as of February 24, 2010 Aroved Aroved Issued Share Caital 1, , ,709.9 (1) Warrant Total 2, , ,727.3 (1) Of which arox million shares at ar value (1 Euro) registered in the name of the Foundation, of which: 10.3 million shares or 0.6% of share caital which ertain to currently undisclosed creditors 120,000 shares reresenting the initial share caital of Parmalat S..A. 6

7 2009 Highlights Grou oerations Grou financials 3. Venezuela 4. Legal 5. Cororate events 6.

8 Focus on key brands and categories Canada 1 Snack Cheese 1 Butter 3 Fresh Milk 3 Yogurt Italy 1 UHT Milk 1 Fresh Milk (4) 1 UHT Cream 2 Fruit Beverages (1) Venezuela 1 Yogurt 1 Beverages 2 Powder Milk South Africa 1 Cheese (3) 2 UHT Milk 2 Yogurt Australia (2) 2 Fresh Milk 2 Flavoured Milk 3 Yogurt Sources: Nielsen unless otherwise stated. (1) IRI (2) Aztec (3) Synovate (4) Nielsen Revaluated 8

9 Suorting our key brands and roducts with advertising m ITALY +91% CANADA +59% Total Grou % AUSTRALIA +9.3% SOUTH AFRICA +4.5% In 2009 Parmalat increased ADV exenditure to suort its key brands globally and increase brand equity Source: internal data (media + roduction)

10 Innovation & Renovation focused on our core business MILK & DERIVATES BEVERAGES FRUIT JUICES 10

11 Oerational Efficiency Parmalat demonstrated strong commitment to cost reduction rograms In 2009 Parmalat imlemented almost 100 rojects and activities in order to imrove the oerational efficiency 25 m of savings were achieved in the following areas: CI (Continuous Imrovement) / Saving rojects Yield / Formula / Ingredients Otimization Process / Utilities Otimization Efficiency and overhead sending imrovements Total 2009 savings (~25 M ) divided by area Yield ~ 6.3 m Processes Otimization ~ 4.0 m CI 10.5 m Efficiency/OH ~ 4.5 m 11

12 Key strategic riorities The current strategy is confirmed Focus on key brands with suerior growth otential Continue reducing cost and imroving efficiency on the entire value chain Drive the cross-fertilization and the coordination between the Grou subsidiaries maintaining a multi-local model of governance Imrove R&D central coordination to maximise the synergies in global innovation develoment Imlement a strategy to better enetrate the growing distribution channels 12

13 2009 Highlights Grou oerations Grou financials 3. Venezuela 4. Legal 5. Cororate events 6.

14 Revenue breakdown by region Primary reorting - m 12.8% 14.8% (1.0) 100% Of Total Revenue 34.9% 9.0% , , % 3.4% Italy Other Euroe Canada Africa Australia Central / South Organic Growth (1) Cons. America -7.2% -8.2% 1.7% 5.3% 0.4% 17.0% n.m. 0.6% Other Total 1. Constant erimeter, FX and excluding hyerinflation effect in Venezuela 14

15 EBITDA breakdown by region Primary reorting - m 35.8% 6.7% % % % (23.4) (0.4) 100% Of Total EBITDA % 5.0% Italy Other Euroe Canada Africa Australia Central / South EBITDA Margin Cons. America Holding Others Total 11.3% 13.5% 9.5% 6.9% 9.3% 9.7% n.m. n.m. 9.3% 15

16 Revenue breakdown by segment Secondary reorting - m 31.3% 8.0% 2.8% % Of Total Revenue 1, % 3, ,295.6 Organic Growth (3) Milk Milk Derivatives (1) Fruit Based Drinks Others (2) Grou -0.2% -0.5% 12.1% n.m. 0.6% 1. Includes Yogurt, Cheeses, Dessert 2. Includes mainly milk whey, other roducts and hyerinflation effect in Venezuela 3. Constant erimeter, FX and excluding hyerinflation effect in Venezuela 16

17 EBITDA breakdown by segment Secondary reorting - m 36.5% 16.9% % 2.8% (23.4) % Of Total EBITDA % Milk Milk Derivatives (1) Fruit Based Drinks Holding Others (2) Grou EBITDA Margin 8.0% 10.8% 19.6% n.m. 9.3% 9.3% 1. Includes Yogurt, Cheeses, Dessert 2. Includes mainly milk whey and other roducts and hyerinflation effect in Venezuela 17

18 Raw milk rice variance Italy m (1) -68 Price variance in Local Currency % -19% Other Euroe -7 Canada +1% 6 m -80 Venezuela 9 Center/South America 6 Colombia -1 m Others -2 Price variance in Local Currency % +10% -2% nm Australia (excl. PFP) -13-8% South Africa -6-4% Others 1 nm (1) Data reresent the raw milk cost variance due to rice effect 18

19 Caex and advertising, romo consumer & other costs FY 2007 FY 2008 Parmalat Grou m FY 2008 CAPEX FY 2009 Δ% Euroe (23.2%) North America (17.8%) Central and South America (16.1%) Africa and Australia (59.2%) Grou (29.6%) Advert., Promo Consumer & Other Costs m FY 2008 FY 2009 Δ% Euroe % North America % Central and South America % Africa and Australia % Other n.s. Grou % 19

20 Country Analysis Italy A rofitable result in a challenging environment Revenue -7.2% EBITDA Margin from 10.3% to 11.3% Consumer behaviour affected by down trading as economic conditions deteriorated: increased rivate label enetration and discount channel growth also benefited The savings obtained through milk buying was artially assed on to the consumer through romotional activities Parmalat strengthened its leadershi in UHT milk (35% MS) Growth (+5% vs. 2008) in basic milk suorting the Parmalat brand with romotion and advertising An advertising suort to Zymil to continue to develo its leading osition in the growing lactose free segment (65% MS) Significant growth of rivate labels in fresh milk market Parmalat reacted with a rice re-ositioning of Blu Premium (extended shelf life milk) suorted by an advertising camaign and with focused activities on one of the main local brands Increase value market share in fruit juices strengthening the Santal brand leadershi (15.8% MS) 20

21 Country Analysis Canada Stable trend and good erformance results Revenue +1.7% vs EBITDA Margin from 9.2% to 9.5% The economic situation still affected the consumer s behaviour increasing the reference for low cost roducts Increasing cometitiveness in rice romotion and growing advertising ressure by the multinational cometitors Stable osition in milk category after market consolidation Increasing leading osition in remium milk with filtered and lactose free milk (35.1% MS) Advertising camaign focused on PurFiltre and Lactaid to suort the brands Enlarged distribution in yoghurt market Low fat yoghurt launch in Quebec to comlete the existing functional range Growth in drinking yoghurt segment (+52% vs. 2008) Maintain strong osition in cheese market Innovation and advertising suort in snack cheese segment where Parmalat maintained its leading osition (43.4% MS) Growth in Natural and Processed Slices segments 21

22 Country Analysis Australia A significant recovery in rofitability Revenue +16.2% EBITDA Margin from 6.2% to 9.3% In July 2009 Parmalat acquired FreshCo, a branch of National Food oerating in New South Wales and South Australia, which now oerates indeendently under the Parmalat Food Products (PFP) comany The integration of PFP into Parmalat Grou has been successfully comleted and allowed Parmalat to enter regions where it was not resent with its own key brands The incremental imact of the acquired business, included in the total figures above, was mill/$ of revenues and 1.9 mill/$ of EBITDA for the last 5 months of 2009 The Australian economy was relatively stable in 2009, with the consumer confidence imroving during the year from the initial state of crisis Private labels comete aggressively in fresh milk market Private label milk grew in volume by 5.9% by broadening the rice ga between rivate label and branded roducts The negative trend for Parmalat was mitigated in the modified milk segment (low fat and functional roducts) where the brand equity is more imortant in the consumer urchasing decision Growth in flavoured milk, an imortant and growing market for Australia, outerforming the market trend (+3.9% Parmalat and +2.3% market) In the yoghurt market Parmalat was focused on the functional segment strengthening its leading osition with Vaalia suorted by advertising 22

23 Country Analysis South Africa Growth in sales and rofitability recovery Revenue +2.2 % vs EBITDA Margin from 1.7 % to 6.7 % The macro economic condition in the country remained under ressure but the ace of decline started to decrease since the second half of 2009 Price olicy oriented to re-build the remium osition in the main categories where Parmalat is resent: UHT milk and cheese Focus on key branded roducts and artial discontinuing in milk roduction for rivate labels with a consequent volume decrease and imrovement in net sales mix Strengthening of the leading osition in cheese market due to new roduct launch and advertising suort on the brands 23

24 Revenue and EBITDA analysis Revenues FY 2009 vs FY 2008 ( m) 3,910.4 (54.9) 3, % (109.7) (67.1) (26.7) 3, % 3, net revenues before disosals Disosals 2008 net revenues Price Discounts/returns Sales volume Mix Other 2009 net revenues Perimeter Currency translation Venezuela 2009 net rev. incl. hyerinflation effect Venezuela hyerinfl. effect EBITDA FY 2009 vs FY 2008 ( m) (4.2) (15.7) (1.7) % (43.7) (6.6) (2.8) (3.0) (0.7) +17.7% EBITDA before disosals Disosals 2008 EBITDA Price/Discounts Variable costs Sales volume Mix Fixed and general Cororate OH "Oerations" costs Receivables write off & miscellaneous 2009 EBITDA Perimeter Currency translation Venezuela hyerinflation effect 2009 EBITDA incl. Venezuela hyerinfl. effect 24

25 Key FY 2009 earnings figures (IFRS/IAS Gaa) m FY 2008 Revenue Growth EBITDA Margin Other gains/(losses) Dereciation and amortization 3, % % (213.1) FY , % % (117.3) FY 2009 Other gains/(losses) include: Proceeds from litigations: m Legal fees: (14.7) m Others: (10.8) m Net oerating result (EBIT) Margin Net financial income/(charges) and other Taxes Result of the eriod Margin Minority interest (rofit)/loss Result for the eriod (of the Grou) % 18.9 (82.0) % (2.6) % (0.4) (144.9) % (2.5) FY 2009 Taxes include: Current taxes: - Italy 79.7 m - Other countries 59.5 m Deferred taxes: -Italy 3.3 m - Other countries 2.4 m 25

26 Key FY 2009 balance sheet items (IFRS/IAS Gaa) m 31/12/ /12/2009 Fixed assets 1, ,900.1 Intangible assets ,063.5 Tangible assets Financial assets and reaid taxes Net working caital Oerating working caital Other assets/liabilities Discontinuing oerations Emloyee severance indemnity liabilities (87.1) (92.6) Provisions (266.1) (289.2) Net invested caital 1, ,872.2 m 31/12/ /12/2009 Shareholders equity 2, ,256.8 Share caital 1, ,712.6 Contested liabilit. and late creditors excl. convert. into share caital Other reserves and net result ,350.9 Minority interest /12/2009 Oerating working caital includes: Inventories: m Trade receivables: m Trade ayables: (492.9) m Other assets/liabilities include: Other current assets: m Other current liabilities: (202.0) m 31/12/2009 Provisions include: Deferred tax liabilities: m Provision for tax risk: 59.9 m Provision for contingent liabilities/others: 48.1 m Net financial debt (1,108.8) (1,384.6) Financial debt Cash & other financial assets (1,607.6) (1,645.0) Total sources of funds 1, ,

27 Key 2009 cash flow items (IFRS/IAS GAAP) m Cash flow from oerating activities m Cash flow from extraordinary transactions (40.4 m) 27 Cash flow from litigations m Cash flow from financial activities 12.7 m Net Cash at Dec 31, 2008 EBITDA Change in net working caital Technical investments + lands and buildings Change in other assets and liabilities Taxes relating to oerating activities Disosals and other inflow Acquisition of certain oerations and other outflow Settlements Legal fees on litigations Taxes aid on settlements Net financial income (net of forex imact and withholding tax) Exercise of warrants Dividends aid Cash at 12/31/09 net of forex imact Translation effect Net Cash at Dec 31, (96.2) (9.2) (19.5) (53.8) (47.7) 1, (27.4) (31.0) (13.5) (234.7) 1,401.4 (16.8) 1,384.6 Investments in intangibles

28 Simlification of Control Chain ( n n of of comaniens) From 70 oerative comanies in 2005 to 36 in (1) (2) Delta Perimeter 31 Dec Dec Dec Dec Dec (1) Of which 70 oerative (2) Of which 36 oerative 28

29 Key targets for 2010 m FY 2008 FY 2009 FY 2010 Outlook Net Revenues 3,910 3,920 Pro-forma Venezuela 3,720 ~ 4,000 EBITDA Pro-forma Venezuela 343 ~ 365 This Reort contains forward looking statements. Projections for 2010 extraolate the rojections rovided in the fourth quarter of 2009, confirmed by the trend in the early months of 2010 It is imortant to kee in mind that the Grou s ortfolio of investments includes comanies that (excluding the major ones) oerate in countries that are more exosed to the effects of the global crisis Consequently, should the current crisis significantly deeen in the future, it could have a negative imact on the Grou s erformance In articular, it is imortant to highlight the great economic/financial/currency strain in Venezuela which could have an imact on the 2010 Guidance 29

30 2009 Highlights Grou oerations Grou financials 3. Venezuela 4. Legal 5. Cororate events 6. 30

31 VENEZUELA Like for Like Revenues & EBITDA (Local Currency) VENEZUELA - Cumulative net Revenues December 2009 vs 2008 (Bolivares m) (24) , , Net revenues Price Discounts/Returns Sales volume Mix 2009 Net revenues Hyerinflation effect 2009 Net revenues incl. hyerinflation VENEZUELA - Cumulative EBITDA December 2009 vs 2008 (Bolivares m) (34.5) 95.8 (56.6) (2.1) 2008 EBITDA Discounts/Returns Variable costs Sales volume/mix Fixed and general "Oerations" costs Receivable write down and other 2009 EBITDA Hyerinflation effect 2009 EBITDA incl. hyerinflation 31

32 VENEZUELA Like for Like Revenues & EBITDA ( m) ( m) VENEZUELA - Cumulative net revenues December 2009 vs (7.4) (225.0) Net revenues Price Discounts/Returns Sales volume Mix Currency translation 2009 Net revenues at current exchange rates Hyerinflation effect 2009 Net revenues incl. hyerinflation Currency translation 4.3 vs US$ (1) 2009 Net Revenues incl. hyerinfl. + rev. exchange rate (1) Data recalculated including the effects of the devaluation of Bolivar Fuerte vs US Dollar (4.3 Bol = 1 US$) occurred on January 8, 2010 ( m) VENEZUELA - Cumulative EBITDA December 2009 vs (10.9) 5.3 (17.9) (0.7) (24.9) EBITDA Discounts/Returns Variable costs Sales volume/mix Fixed and general "Oerations" costs Receivable write down and other Currency translation 2009 EBITDA at current exchange rates Hyerinflation effect 2009 EBITDA incl. hyerinflation Currency translation 4. 3 vs US$ (1) 2009 EBITDA incl. hyerinfl. + rev. exchange rate (1) Data recalculated including the effects of the devaluation of Bolivar Fuerte vs US Dollar (4.3 Bol = 1 US$) occurred on January 8,

33 Revenue and EBITDA (Imact of Devaluation of Bolivares vs US $) Revenue FY 2009 ( m) 3,964.8 (225.0) 3, net rev. incl. Venezuela hyerinfl. effect Venezuela currency translation (1) Pro- forma 2009 net revenues EBITDA FY 2009 ( m) (24.9) (1) Data recalculated considering the effect of devaluation of Bolivar Fuerte vs. United States Dollar (4.3 Bol = 1 US$) occurred on January 8, EBITDA incl. Venezuela hyerinfl. effect Venezuela currency translation (1) Pro-forma 2009 EBITDA 33

34 Preliminary Draft 2009 Highlights Grou oerations Grou financials 3. Venezuela 4. Legal 5. Cororate events 6.

35 Us cases Citigrou: Aeal fully briefed, execting date for oral argument to be set. Could be any time, likely during the year 2010 Grant Thornton Aeal to Court of Second Circuit ending, argument may be heard in fall

36 Italian cases Revocatory Actions Very few left Damages Actions JPM and S&P, exerts aointed to resond to questions asked by Milan Court Contested and late claims Efforts continue to close these 95 cases Court of aeal of Bologna 120 contested and late claims cases ending Criminal Cases Milan 2 nd trial on market abuse, in rogress (involving, among others, Citigrou) Parma Fraudulent bankrutcy roceedings ending, Parmalat is rivate arty 36

37 2009 Highlights Grou oerations Grou financials 3. Venezuela 4. Legal 5. Cororate events 6.

38 Calendar of events Board Meetings: Date Subject May 14, 2010 Aroval of the Reort for the First Quarter 2010 July 29, 2010 Aroval of the 2010 Interim Reort November 11, 2010 Aroval of the Reort for the Third Quarter 2010 Shareholders Meeting: Date Subject March 31, 2009 (First call for ordinary meeting) Aroval of 2009 Annual Reort Election of Statutory Auditor and election of an Aternate Aril 1, 2009 (Second call for ordinary meeting) Aroval of 2009 Annual Reort Election of Statutory Auditor and election of an Aternate Investor Relations contact: Cristina Girelli Tel

39 Q&A 39

40 Aendix Parmalat SA Country Analysis

41 Parmalat SA: FY 2008 and FY 2009 financial results m PARMALAT SPA FY 2008 % FY 2009 % REVENUE m m EBITDA 59.7 m m 8.9 NET OPERATING RESULT m m 47.2 NET RESULT m m 45.5 OPERATIONS FY 2008 % FY 2009 % CORPORATE FY 2008 FY 2009 Revenue m m 100 EBITDA 86.6 m m 11.8 Revenue 0.8 m 0.7 m EBITDA (26.9) m (23.4) m 41

42 FY 2009 Parmalat SA cash flow statement ,441.2 (33.5) (29.0) (2.4) (56.0) Cash flow from oerating activities 40.5 m Cash flow from extraordinary transactions (46.1) m (1) Including tangible and intangible caex 42 (27.4) (31.0) Cash flow from litigations m (231.9) 1,486.6 Cash at 31/12/08 EBITDA Change in net working caital Caex (1) Change in other assets and liabilities Taxes aid relating to oerating activity Disosals and other income Stake acquisition and other Settlements Legal fees on litigations Taxes aid on settlements Net financial income (net of withholding tax) Dividends received Exercise of warrants Dividends aid Cash at 31/12/09

43 Country analysis Parmalat Italy 10 % 10 % FY 2009 Revenue 3% FY 2009 EBITDA m FY 2009 EBITDA Milk Milk Derivates 0.3 Fruit Based Drinks 6.3 Milk Milk Derivates Fruit Based Drinks Other 77% Other -3.3 Italia FY 2008 FY 2009 m Revenue EBITDA EBITDA % Revenue EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other % % Total 1, % % 43

44 Country analysis Parmalat Canada FY 2009 Revenue FY 2009 EBITDA m FY 2009 EBITDA 0% 2% 43% Milk % Milk Derivates 89.1 Fruit Based Drinks 0.4 Milk Milk Derivates Fruit Based Drinks Other Other 10.2 Canada FY 2008 FY 2009 m Revenue EBITDA EBITDA % Revenue EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other % % Total 1, % 1, % 44

45 Country analysis Parmalat Australia FY 2009 Revenue FY 2009 EBITDA FY 2009 EBITDA 18% 1% 1% m Milk 39.7 Milk Derivates % Fruit Based Drinks 1.2 Milk Milk Derivates Fruit Based Drinks Other Other 4.6 Australia FY 2008 FY 2009 m Revenue EBITDA EBITDA % Revenue EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other % n.s. Total % % 45

46 Country analysis Parmalat Africa FY 2009 Revenue 0% 8% 39% m FY 2009 EBITDA Milk % Milk Derivates 24.4 Fruit Based Drinks -1.4 Milk Milk Derivates Fruit Based Drinks Other Other -0.2 Africa FY 2008 FY 2009 m Revenue EBITDA EBITDA % Revenue EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other n.m n.m. Total % % 46

47 Country analysis Parmalat Venezuela FY 2009 Revenue m FY 2009 EBITDA FY 2009 EBITDA 10% 38% Milk % Milk Derivates 14.8 Milk 19% Fruit Based Drinks 52.1 Milk Derivates Fruit Based Drinks Other (incl. Hyerinfl. 2009) Other (incl. Hyerinfl. 2009) 2.7 Venezuela FY 2008 FY 2009 m Revenue EBITDA EBITDA % Revenue EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other (incl. hyerinfl. 2009) n.s % Total % % 47