TRANSACTION. April 9th, 2018

Transcription

1 TRANSACTION + April 9th,

2 REDIRECTING THE GROWTH STRATEGY OF ITS DIVISIONS: - BEEF CORE BUSINESS WE HAVE TWO PROJECTS (1ST HALF 2018) I. AQUISITION OF MAJORITY STAKE AT NATIONAL BEEF, ADDING TO THE BEEF BRAZIL STRATEGY - COMPLEMENTARY FIT - STRONG RESULTS AND CASH GENERATION 2. KEYSTONE SALE - BANKS ENGAGED (JPM E RABOBANK) 2

3 TRANS ACTION OVERVIEW 3

4 Acquisition of a 51% stake in National Beef for US$969 million Enterprise Value of US$2,3 billion TRANSACTION Implied EV/EBITDA * transaction multiple of 4.4x ROIC** > 20% Leucadia will remain an important shareholder with ~31%. USPB with ~15% and others with ~3% Lock-up period of 5 years from the closing date for all investors National Beef is the 4th leading beef processing company in the U.S. most profitable and NATIONAL BEEF efficient company in the country Two facilities, in Dodge City, KS and Liberal, KS, with combined capacity of 12,000 head/ day Slaughtering of over 3 million head of cattle per year (13% of U.S. capacity share) * Based on FY2017 EBITDA ** Based on 51% EBIT

5 STRATEGIC DRIVERS AT A GLANCE 5

6 NATIONAL BEEF COMPLEMENTARY FIT TO MARFRIG S CORE Focus on the Core business AND Better Capital LEADING U.S. BEEF PROCESSOR PORTFOLIO EXPANSION INTERNATIONAL REACH STRATEGIC ALLIANCE STRONG PERFORMANCE Structure Acquisition of the #4 beef processor in the U.S. Access to a variety of high quality products Platform in premium export markets (i.e. Japan, Korea) Supply contract with strategic partners Industry leading margin and cash flow generation 6

7 BEEF FOOTPRINT 7

8 UNITED STATES COMBINATION CREATES THE #2 BEEF PLAYER GLOBALLY SOUTH LEADING POSITIONS IN TWO OF THE LARGEST BEEF MARKETS IN THE WORLD AMERICA SLAUGHTERING PROCESSED FOOD SLAUGHTERING/PROCESSING TANNERY DISTRIBUTION CENTER STRONG PLATFORM TO SERVE GLOBAL CLIENTS WITH FULL RANGE OF PRODUCTS 8

9 2nd largest beef operation in Brazil 4 th largest beef processing company in the U.S. GRASS FED LEADER LARGEST 19 slaughtering plants in operation in beef production in Uruguay beef importer in Chile + PARTNERSHIP 5 Operational plants with suppliers ACCESS to premium markets as U.S., Japan and South Korea 1 Tannery 9

10 National Beef HIGHLIGHTS 10

11 DIFFERENTIATED FOOTPRINT AT U.S. MARKET STRONG PRESENCE IN FOODSERVICE AND RETAIL > 80% OF REVENUES CONSISTENT GROWTH IN CONSUMER READY BRANDS E-COMMERCE 11

12 ACCESS TO KEY EXPORT MARKETS 13.3% (% OF SALES) 7,1% LARGEST FRESH BEEF EXPORTER 8.2% 47.8% 10.0% Japan China Mexico Taiwan South Korea Other 13.6% 12

13 BEEF DIVISION RESULT PROFORMA 13

14 NET REVENUE (R$ billion*) +5% ADJ. EBITDA & MARGIN 6.8% 7.6% +17% 2,212 2,589 1,422 1, (R$ million*) (US$ billion*) +4% % (US$ million*) *Amounts converted using USD/BRL of and for 2017 and 2016 financials MARFRIG BEEF NATIONAL BEEF

15 FINANCING AND LEVERAGE 15

16 NOTIONAL VALUE MATURITY PRICING BRIDGE LOAN TERM LOAN US$ 900 MILLION 1 YEAR LIBOR BPS* US$ 100 MILLION DEC 11, 2022 LIBOR BPS P.S. The Bridge Loan repayment will be made using the proceeds from Keystone sale (IN R$ MILLION) MARFRIG 2017 PROFORMA NET DEBT EBITDA ADJ NET DEBT / EBITDA ADJ** 4.55X 3.35X * Rate is subject to step-up +50 bps after each 3 months ** Excluding PERT payment *** Amounts converted using weighted average USD/BRL exchange rate of

17 CLOSING REMARKS 17

18 MARFRIG BECOMES THE 2ND WORLD S LARGEST BEEF COMPANY. CONSOLIDATION OF THE AMERICA S PRODUCTION PLATFORM THIS TRANSACTION WON T CHANGE THE COMPANY S FINANCIAL DISCIPLINE, BUT STRENTHENS THE DELEVERAGE PATH. AFTER KEYSTONE SALE, MARFRIG WILL BE THE COMPANY WITH THE BEST FINANCIAL HEALTH IN THE SECTOR. 18

19 DISCLAIMER 19

20 This material is a presentation of general information about Marfrig Global Foods S.A. and its consolidated subsidiaries (jointly the Corporation ) on the date hereof. The information is presented in summary form and does not purport to be complete. No representation or warranty, either expressed or implied, is made regarding the accuracy or scope of the information herein. Neither the Corporation nor any of its affiliated companies, consultants or representatives undertake any liability for losses or damages arising from any of the information presented or contained in this presentation. The information contained in this presentation is up to date as of December 31, 2017, and, unless stated otherwise, is subject to change without prior notice. Neither the Corporation nor any of its affiliated companies, consultants or representatives have signed any commitment to update such information after the date hereof. This presentation should not be construed as a legal, tax or investment recommendation or any other type of advice. The data contained herein were obtained from various external sources and the Corporation has not verified said data through any independent source. Therefore, the Corporation makes no warranties as to the accuracy or completeness of such data, which involve risks and uncertainties and are subject to change based on various factors. This presentation includes forward-looking statements. Such statements do not constitute historical fact and reflect the beliefs and expectations of the Corporation s management. The words anticipate, hope, expect, estimate, intend, project, plan, predict, aim and other similar expressions are used to identify such statements. Although the Corporation believes that the expectations and assumptions reflected by these forward-looking statements are reasonable and based on the information currently available to its management, it cannot guarantee results or future events. Such forward-looking statements should be considered with caution, since actual results may differ materially from those expressed or implied by such statements. Securities are prohibited from being offered or sold in the United States unless they are registered or exempt from registration in accordance with the U.S. Securities Act of 1933, as amended ( Securities Act ). Any future offering of securities must be made exclusively through an offering memorandum. This presentation does not constitute an offer, invitation or solicitation to subscribe or acquire any securities, and no part of this presentation nor any information or statement contained herein should be used as the basis for or considered in connection with any contract or commitment of any nature. Any decision to buy securities in any offering conducted by the Corporation should be based solely on the information contained in the offering documents, which may be published or distributed opportunely in connection with any security offering conducted by the Corporation, depending on the case. 20

21 + April 9th,