PBG Group s presentation

Transcription

1 PBG Group s presentation Warsaw, March 6,

2 Agenda Information on the PBG Group I PBG Group s strategy II Financial results for 4Q2011 III 2

3 We are a leading provider of specialty construction & engineering services in Poland Group s backlog of order is PLN 5,93 bn (as at January 1, 2012) Key Construction Activities: Revenue (PLNmm): Gross profit (PLNmm): % Margin: 16,5% 17,2% 6,3% 16,5% 4,3% % of Group: 34% 17% 12% 20% 12% Business Started: / 1949 (2) * / 1949 (2) 2007 Landmark Projects Oil and Gas Power 1 Environmental and Infrastructure Natural gas and crude oil plants, underground gas storage facilities Power generation units, boilers Sports infrastructure, industrial construction Water Reservoirs, dams, water treatment plants, sewage and water systems Water treatment plant Krakow Roads Roads, bridges, tunnels Backlog (PLNmm): LNG Processing Facility in CEE 1 st underground Rail in Warsaw Construction of A1 Highway PIC PIC Core segments LMG natural gas & crude oil plant Largest Power Unit in Poland (Opole) 3 of 4 Stadiums for Euro 2012 Waste transmission system A4 and major road projects 98.7km PIC PIC Our core segments, Oil and Gas and Power, account for 51% of our gross profit 1 Power includes the recent acquisition of Rafako and Energomontaz Poludnie; 2 Starting date for the Power and Water segments relate to the start of operations of Rafako and Hydrobudowa Włocławek respectively * date of acquisition by PBG 3

4 We have a high margin business model Gross profit breakdown LTM4Q2011 (PLNmm) Gross profit LTM4Q2011: PLN 416mm Natural gas, crude oil&fuels Industrial & res. Construction Road construction Gross margin by segment LTM4Q 2011 Power engineering Water Gross margin benchamarking LTM4Q % of total gross profit 16,5% 17,2% 16,5% 6,3% 4,3% 11,1% 1 11,1% 6,7% 8,4% 1,7% Natural gas, crude oil&fuels Power Industrial & engineering res. Construction Water Road construction Total PBG Polimex Mostostal Budimex Mostostal Warszawa Focus on highly profitable contracts in our core segments allows us to maintain market leading margins 1 gross margin LTM4Q2011 4

5 After years of underinvestment, a large-scale capex program is underway in the Power sector Projected Gross Electricity demand in Poland (TWh) Age of power generation units in Poland Source: Energy Regulatory Office Current project tenders Turbine sets Boilers 50% 47% 40% 44% 30% 32% 31% 20% 10% 8% 11% 10% 5% 5% 7% 0% <5 years 5-10 years years years >30 years Source: Polish Ministry of Economy Power Generation Structure in Poland Name Client Amount Award PLN Date Elektrownia Polnoc GK Kulczyk 12bn - Kozienice Enea S.A. 6bn H Ostroleka Energa 5.5bn Q Jaworzno III PGE Group 5bn H Total 28.5bn 35% 3% 6% 3% 53% Source: Energy Policy of Poland until 2030 attachment no.2 of November 10, 2009 Hard Coal Lignite Natural Gas Renewables Other The Power sector is facing growing demand, a need to modernise and comply with EU regulations 5

6 We are optimally positioned to capitalize on the modernization of Polish Power sector Power construction (percentage of LTM4Q2011 gross profit RAFAKO Rafako is the undisputed leader of the power market sector in Poland coupled by strong international presence One of the only four European companies which offer turnkey delivery of conventional power generation units alongside Alstom, Hitachi Power Europe and Doosan Babcock Approximately 80% of power boilers installed in Poland have been delivered by Rafako Tender success rate ~15% PBG is ideally positioned to benefit from the maintenance/renovation trend Opole tender 17% On November 17, 2011 Rafako-led consortium won a tender from Elektrownia Opole Completion scheduled for 2017 Rafako s share (34%) represents PLN 3.2bn of additional backlog By the acquisiton of RAFAKO we have become the leader in a specialist construction and engineering for the power construction sector 6

7 We are the leading contractor of the national Natural Gas, Crude Oil & Fuels infrastructure modernization program Natural gas, crude oil & fuels percentage of LTM4Q2011 gross profit 34% Leading position in the natural gas, crude oil & fuels The leader in large scale projects in the high margin natural gas, crude oil & fuels sector Tender success rate of c. 33% Executing important projects for Poland s economy Lubiatów-Międzychód-Grotów Wierzchowice Świnoujście PIC 1 PIC 2 Storage facility in Wierzchowice LNG on-shore terminal in Świnoujście Ongoing capex programs and high barriers to entry Strong investment programs to continue to foster growth in the sector Technologically complex projects, proven track record and knowledge of Polish procurement law leads to high barriers to entry Shale gas to generate additional investment opportunities PLN 30bn investments through to 2015 PLN 8bn investments through to 2014 We are focused on maintaining our leading position in the Polish Natura Gas, Crude Oil & Fuels sector 7

8 We are selectively pursuing high margin opportunities in the Water segment Water percentage of LTM4Q2011 gross profit 20% Key considerations PBG s extensive expertise due to its presence in the sector since 1949 Limited competition margins higher than sector average Projects are typically EU funded Growth in the sector driven by Requirement for flood control investment Environmental protection policies Comply with EU regulation 4.8bn EC IOP funds Substantial working capital requirements PBG experience in executing landmark projects Water treatment plant in Krakow Malczyce Water Step on Odra River Anti-flood reservoir in Kuźnica Warężyńska PBG strategy Primarily compete for high-value contracts, where high barriers to entry limit competitive pressure thus maintaining higher margins Selective focus on high margin and low capital intensive projects 8

9 We focus on a specialist contracts from the industrial and residential construction segment Industrial and residential construction percentage of LTM4Q2011 gross profit 12% Key considerations PBG experience in executing landmark projects PBG s leading position constructed 3 stadiums for EURO 2012 Poland required to cut waste deposits in dump sites Currently tendering for 6 waste incineration projects Poland required to cut waste deposits in dump sites, 11 waste incineration projects expected 1.4bn Growth in the sector driven by Modernisation of Infrastructure and Public works Initiatives to comply with EU regulation EU Cohesion Funds, Euro 2012 and IOP 6 th largest producer of waste in the EU National Stadium in Warsaw for Euro 2012 (c.58,200 seats) Largest waste disposal plant in Poland (Gdańsk Szadółki ) 1st line of underground in Warsaw PBG strategy Focus on projects that support environmental initiatives to expand customer base and diversify portfolio Construction of waste management facilities Thanks to the wide experience within the sector, we are very well positioned to benefit from the growth of investment spendings for environemntal protection 9

10 We are reducing our exposure to the non-strategic Roads business Road construction percentage of LTM4Q2011 gross profit 12% Key considerations Roads are non-core area of focus for PBG Highly competitive segment, particularly for large scale national projects Low profitability and margins are inherent characteristic of the segment Growth in the sector driven by EU Cohesion Funds and Euro 2012 Investment in the sector likely to fade away post completion of the National Road Construction Program ( ) Substantial working capital requirements PBG experience in executing landmark projects Construction of A1 Highway A4 and other major road projects (98.7km) Construction of A2 highway PBG strategy Focus primarily on local roadworks, where competition is more limited and capital intensity is lower and margins are higher Working capital release from existing projects PBG s strategy is to reduce focus on its non-core segments going forward 10

11 PBG Group's order book Key information Our core segments of the Group account for over 50% of the order book The order book represents 1.6x of revenue It is expected that the Opole contract will add PLN 3.2bn to the order book, raising its value to 2.4x of revenue Road segment s share and significance to decrease. Key contracts in the order book LNG Terminal; ; PLN 2.1bn LMG crude oil and natural gas production facility; ; PLN 1.4bn GAS, OIL AND FUELS Order book by segments Order book (PLNm) x (PLNbn) 2.4x WATER INDUSTRIAL AND RESIDENTIAL CONSTRUCTION ROAD CONSTRUCTION POWER ENGINEERING Order book as at January 1st 2012: PLN 5.9bn Order book ensures revenue for the forthcoming years, additionally its value increased by another PLN 3,2bn after signing by RAFAKO a contract for the construction of power units in Opole # Order book/ Revenue in

12 We have a proven operating track record Excellent operating track record Within the last 4 years we have signed contracts for total value of PLN 20.9bn Track record of on-time completions, 99% since 2007 Tender success rate 1 of ~33% and ~15% in our core markets of natural gas, crdue oil & fuels and power engineering Technically skilled workforce 1,5 thous. Engineers Extensive knowledge of the domestic market working with prestigious subcontractors such as Siemens and ABB Partner of choice for international majors LNG on-shore terminal in Swinoujscie, PLN 2.1bn, Natural Gas, Crude Oil & Fuels, 2010 Environmental protection equipment for power plant in Bełchatów, PLN 323mm, Power engineering, 2009 Tunnel under Vistula River and road in Gdańsk, PLN 720mm, Road construction, 2011 PBG is the leader on the Polish market with international recognition and wide experience during execution of key projects 1 Percentage of tenders by value we won out of all tenders we entered into between 2008 and

13 Structure of the PBG Group GAS, OIL AND EPC SERVICES POWER ENGINEERING GENERAL CONSTRUCTION, ENVIRONMENTAL PROTECTION, HYDRO- ENGINEERING ROAD CONSTRUCTION RESIDENTIAL CONSTRUCTION FOREIGN OPERATIONS 66.00% 63.05% % % % 64.84% 98.49% 99.99% % PBG UKRAINA % 99.95% % % AGGREGATE QUARRIES WSCHODNI INVEST % 99.56% 70.00% % ENERGOPOL UKRAINA 51.00% 81.69% BATHINEX % % 13

14 Agenda Information on the PBG Group I PBG Group s strategy II Financial results for 4Q2011 III 14

15 PBG Group s strategy PBG'S STRATEGIC PLANS FOCUS ON HIGH-MARGIN CORE SEGMENTS, ON STRENGTHENING THE LEADERSHIP, AND ON DELEVERAGING Expansion in the Polish power engineering market Placing RAFAKO S.A. as the leader of the PBG Group's power engineering segment Strategic cooperation with major players on the global power engineering market to facilitate joint acquisition and execution of contracts in Poland Building up own competences and credentials through winning and execution of contracts of increasingly larger unit values Strengthening the Company's position as the leader in the gas and oil sector in Poland Winning the largest contracts in Poland Expanding the range of credentials through continuous development of engineering skills, improvement of project management skills and execution of increasingly more complex projects Participation in the infrastructure and specialist construction market Presence in the waste management plants construction market Presence in the waste incineration plants construction market Presence in the hydro-engineering market Deleveraging Disposal of non-core assets Reduction of exposure to non-core sectors requiring substantial capital expenditure 15

16 Significant Potential Contracts NO CONTRACT ACTIVITY SETTLEMENT INVESTOR BUDGET Construction of power unit for Północ Power Plant Modernization of boilers combustion system in Kozienice II Construction of power unit for Ostrołęka Power Plant Construction of power unit for Jaworzno III Power Station Construction of power unit for Turów Power Plant Power engineering 3 Q 2012 Północ Power Plant PLN 12 bn Power engineering 2 Q 2012 ENEA PLN 6 bn Power engineering 4 Q 2012 Ostrołęka Power Plant PLN 5,5 bn Power engineering 2 Q 2012 PKE PLN 5 bn Power engineering 3 Q 2012 PGE PLN 2,5 bn 6. Super critical boiler in Kozienice Power Plant Power engineering 2 Q 2012 Alstom Power Systems PLN 800 mn 7. Boler island Power engineering 2 Q 2012 Toshiba PLN 500 mn Construction of Waste Incineration Plant in Płock Construction of Waste Incineration Plant in Poznań Construction of Waste Incineration Plant in Cracow Construction of Waste Incineration Plant in Białystok Construction of Waste Incineration Plant in Konin Construction of Waste Incineration Plant in Szczecin Industrial construction 2 Q 2012 ZUOK in Kobierniki PLN 300 mn Industrial construction 2 Q 2012 City of Poznań PLN 700 mn Industrial construction 2 Q 2012 Krakowski Holding Komunalny PLN 850 mn Industrial construction 2 Q 2012 PUHP Lech PLN 480 mn Industrial construction 2 Q 2012 MZGOK in Konin PLN 200 mn Industrial construction 2 Q 2012 Szczeciński Okręg Metropolitarny PLN 650 mn 14. Racibórz Reservoir on the Odra River Water 2 Q 2012 RZGW in Gliwice PLN 1,8 bn 16

17 Highlights Perspectives of development on the power engineering market in Poland Established market leader position on the markets with strategic meaning and experience in execution of key projects for the Polish economy Experienced management team with strong expertise in construction and engineering industries References and comptences which enable to participate in the investment boom in power construction Solid backlog that enhances visibility of future revenues Well-established relationships with multiple high credit quality customers Deleveraging through asset sales and focus on less intensive working capital segments 17

18 Agenda Information on the PBG Group I PBG Group s strategy II Financial results for 4Q2011 III 18

19 Key financial ratios for 2011 Revenue Gross profit EBITDA PLNm PLNm PLNm 12.5% 11.1% 12.2% 10.6% A 36% yoy revenue growth, driven mainly by the highway and sports stadium construction projects, as well as consolidation of Energomontaż Południe (as of July 1st 2011) and Rafako (as of November 2011) Gross margin slightly down, due to a large share of road construction projects in total revenue (the road construction segment contributed PLN 1.13bn to the top line) The acquisitions of Energomontaż Południe and Rafako marked the beginning of an important shift in the Group s business and its repositioning towards power engineering. Accounting policy changes concerning inclusion of certain income and cost items in operating and financing activities. 19

20 PBG Group s financial position Q1-Q income statement Commentary Revenue growth was driven by the execution of highway and stadium construction contracts and expansion of the Group. Consolidation of Rafako's results as of November 1st 2011 revenue: PLN 218m, operating profit: PLN 8m, net profit: PLN 6.7m. Consolidation of Energomontaż Południe's results - revenue: PLN 192m, operating profit: PLN 10m, net profit: PLN 11.6m. Gross margin fell on the back of a higher share of low-margin segments (highways, stadiums) in the revenue structure. Finance costs increased as a result of higher debt incurred to finance working capital requirements (mostly road construction contracts). Change of the policy governing the classification of transactions to operating or financing activities (financing activities should include only those transactions, which are related to raising financing, while the results of investing activities involving investment and allocation of funds to the benefit of the Group s entities should be recognised as operating activities). Financial performance PLN 000 Q1-Q Q1-Q y-o-y change Revenue 3, ,740, Cost 3,317,416 2,398, Gross profit/(loss) 416, , Distribution costs 9, Administrative expenses 129, , Profit/(loss) 277, , Other income 113, , Other expenses 54,776 72, Operating profit (loss) 336, , Finance costs 60,148 48, Share of profit /(loss) of associates accounted for using the equity method (4,744) (4,061) - Profit/(loss) before tax 271, , Income tax expense 49,113 49,756-1 Net profit/(loss) attributable to: 222, , owners of the Parent 206, , non-controlling interests 15,723 (5,756) - Margins (%) PLN 000 Q1-Q Q1-Q y-o-y change (pp) Gross margin Operating margin Net margin Other income PLN 000 Q1-Q Q1-Q Interest on loans 24,723 33,781 Foreign exchange gains Reversals of allowance for credit losses on receivables 12,004-6,467 32,468 Other expenses PLN 000 Q1-Q4 Q1-Q Allowance for credit losses on receivables 18,524 17,968 Compensation and penalties paid 4,969 19,292 Interest on liabilities 3,898 2,057 Finance income PLN 000 Foreign exchange gains Interest on financial instruments Q1-Q Q1-Q ,050 11,399 8,843 6,130 Deposits 7,311 4,385 Finance costs PLN 000 Q1-Q Q1-Q Interest on bonds 41,047 34,413 Interest on bank borrowings Interest on bank overdrafts 10,995 23,179 27,552 10,040 20

21 PBG Group s financial position Q income statement Commentary Revenue growth was driven by the execution of road construction contracts (PLN 1.1bn vs. PLN 299m) and the consolidation of Energomontaż Południe (PLN 192m) and Rafako (PLN 218m). Gross margin fell on the back of a higher share of low-margin segments in the revenue structure. Fair-value measurement of Rafako shares, following a change in the consolidation method, was recognised in other expenses at PLN 21.9m. Consolidation of Rafako's results: distribution costs of PLN 5.6m. Consolidation of Energomontaż Południe s and Rafako s results: administrative expenses of PLN 10.5m and PLN 7.3m, respectively. Operating margin was materially affected by the recognition in other expenses of PLN 21.9m fair-value measurement of Rafako shares. Net margin declined as a result of increased finance costs and high effective tax rate, which followed chiefly from non-disclosure by two of our subsidiaries of income tax in the financial statements for nine months ended September 30th As a result, the tax settled in December 2011 comprised tax charged on these companies income for the entire reporting period. Another factor contributing to the high tax level was derecognition of a deferred tax asset on unused tax loss. Financial performance PLN 000 Q Q y-o-y change Revenue 1,353, , Cost 1,193, , Gross profit/(loss) 160, , Distribution costs 6, Administrative expenses 46,387 30, Profit/(loss) 107,876 80, Other income 1,870 61, Other expenses 39,617 31, Operating profit /(loss) 70, , Finance costs 7,412 14, Share of profit (loss) of associates accounted for using the equity method - (1,682) - Profit/(loss) before tax 62,717 94, Income tax 20,401 24, Net profit/(loss) attributable to: 42,316 70, owners of the Parent 30,856 71, non-controlling interests 11,460 (989) - Margins (%) PLN 000 Q Q y-o-y change (pp) Gross margin Operating margin Net margin Other income PLN 000 Q Q Interest on loans 1,366 8,434 Lease 2, Compensation and penalties received Other expenses 6,329 2,082 PLN 000 Q Q Allowance for credit losses on receivables 17, Compensation and penalties paid 3,103 3,444 Interest on liabilities 1, Finance income PLN 000 Q Q Interest on financial instruments Loans and receivables Foreign exchange gains/(losses) 3,059 1,139 1,504-11,690 6,208 Finance costs PLN 000 4Q Q 2010 Interest on bonds 5,731 11,633 Interest on bank borrowings Interest on bank overdrafts 1,289 10,930 12,

22 PBG Group s assets statement of financial position Statement of financial position PLNm Q Non-current assets 902 1,018 1,594 2,242 Cash and cash equivalents Other current assets 1,651 2,337 2,447 3,825 Total assets 2,841 4,015 4,750 6,627 Interest-bearing debt¹ 805 1,135 1,438 2,019 Other liabilities ,262 1,494 2,278 Equity 1,096 1,619 1,818 2,329 Total equity and liabilities 2,841 4,015 4,750 6,627 Net debt ,459 Net debt / EBITDA 1.8x 1.4x 2.2x 3.0x 3 ¹ Interest-bearing debt includes Borrowings, Bonds and Finance Lease. 2 Including: Trade and other payables and Amounts due to customers for construction contract work in the amount of PLN 1.83bn. 3 Ratio calculated based on a formula agreed upon with financial institutions. High liquidity in all years. Decline in 2011 caused by high demand for working capital relating to road and stadium construction projects, as well as equity investments in Energomontaż- Południe and Rafako. Includes in particular trade and other receivables (PLN 1,411m), amounts due from customers from construction contract work (PLN 1,225m) and inventories (PLN 464m). Debt increase driven by capital-intensive projects and acquisitions in 2010 and Debt expected to fall upon completion of the projects and reversal of the working capital build-up. Strong equity position 22

23 PBG Group s economic standing Cash flows Cash flows PLN 271m profit before tax highest in the last four years. PLNm Q 2011 Profit before tax Adjustments and other Net changes in working capital Cash from (used in) operating activities (550) (774) (253) (496) Operating capex (110) (70) (144) (163) Other cash flows from investing activities Cash from (used in) investing activities Cash from (used in) financing activities (75) (281) (386) 13 (186) (351) (530) (150) Net change in cash (123) (150) Cash at beginning of period Cash at end of period Strong need in 2011 owing to four large road construction projects and completion of Euro 2012 stadium projects. Stable operating capex. In 2011, expenditures were related to the purchase of heavy equipment and a PLN 52m investment in buildings and land. Historically, expenses incurred in connection with the purchase of real estate and construction of aggregate quarry (Strateg Capital) Cash from (used in) financing activities resulting from new borrowings and issue of bonds in 2008 and High liquidity in all years. Reduction in 2011 caused by the capital-intensive road and stadium construction projects. 23

24 PBG s stand-alone performance Q1-Q income statement Commentary Revenue grew by 9% year on year, primarily as a result of the execution of projects in the gas segment, which accounted for 77% of PBG's revenue in Shrinking of the gross margin was attributable to the execution of projects in the industrial construction segment. Change of the policy governing the classification of transactions to operating or financing activities (financing activities should include only those transactions, which are related to raising financing, while the results of investing activities involving investment and allocation of funds to the benefit of the entity should be recognised as operating activities). Finance costs increased in connection with the service of debt under bond issues: interest on bonds recognised in the separate financial statements amounts to PLN 70m, whereas interest on bonds in the consolidated financial statements of the PBG Group is PLN 41m. In the PBG Group only the parent has issued bonds and incurs related costs, including interest accruing pursuant to the indenture. Therefore, the balance of over PLN 28m results only from a consolidation adjustment. Financial performance PLN 000 Q1-Q Q1-Q y-o-y change Revenue 1,001, , Cost 845, , Gross profit/(loss) 155, , Distribution costs Administrative expenses 31,015 29, Profit/(loss) 124, , Other income 97,465 52, Other expenses 6,298 4, Operating profit/(loss) 216, , Dividend income - 43,228 - Finance costs 63,355 42, Other gains/(losses) on investments Profit/(loss) before tax 152, , Income tax expense 29,903 29, Net profit 122, , Margins (%) PLN 000 Q1-Q Q1-Q y-o-y change (pp) Gross margin Operating margin 21,6 21,1 +0,5 Net margin Other income PLN 000 Q1-Q Q1-Q Interest on loans 43,586 36,917 Foreign exchange gains Interest on cash in current bank account Other expenses PLN 000 Allowance for credit losses on receivables Foreign exchange gains/(losses) Compensation and penalties paid Finance income PLN 000 Interest on financial instruments Foreign exchange gains/(losses) 13,449-11,994 5,807 Q1-Q Q1-Q , , Q1-Q Q1-Q ,422 8,177 8,504 4,636 Deposits 3,178 6,663 Finance costs PLN 000 Q1-Q Q1-Q Interest on bonds 69,863 45,139 Interest on bank borrowings Interest on bank overdrafts 6,883 7, ,792

25 PBG s stand-alone performance Q income statement Commentary Revenue fell by 18% year on year as a result of the execution of projects in the gas and industrial construction segments. Shrinking of the gross margin was attributable to the execution of projects in the industrial construction segment. Financial performance PLN 000 Q Q y-o-y change Revenue 316, , Cost 275, , Gross profit/(loss) 40,980 73, Distribution costs Administrative expenses 10,395 8, Profit/(loss) 30,585 65, Other income 32,086 16, Other expenses 651 1, Operating profit/(loss) 62,020 79, Finance costs 16,515 14, Other gains/(losses) on investments Profit/(loss) before tax 45,505 64, Income tax expense 9,969 11, Net profit 35,536 52, Margins (%) PLN 000 Q Q y-o-y change (pp) Gross margin Operating margin Net margin Other income PLN 000 Q Q Profit/(loss) on derivative instruments 13,732 (859) Interest on loans 12,114 10,317 Gain on disposal of equity instruments 4,099 - Other expenses PLN 000 Q Q Allowance for credit losses on receivables 3,360 - Foreign exchange gains/(losses) Compensation and penalties paid (3,297) Finance income PLN 000 Q Q Foreign exchange gains Interest on financial instruments 6,690 2, ,564 Deposits 191 1,176 Finance costs PLN 000 4Q Q 2010 Interest on bonds 19,782 17,227 Interest on bank borrowings Interest on bank overdrafts 3,502 1,772 (43)

26 PBG Group s financial performance in Q1-Q and Q1-Q4 2010, by segments Gaz ziemny i ropa naftowa Woda Budownictwo przemysłowe i mieszkaniowe Drogi Budownictwo energetyczne Inne Gas, oil and fuels Water Industrial and residential construction Roads Power engineering Other 11% 1% 23% 30% 14% 21% SEGMENTS GAS, OIL AND FUELS WATER INDUSTRIAL AND RESIDENTIAL CONSTRUCTION ROAD CONSTRUCTION POWER ENGINEERING OTHER GROSS MARGIN IN Q1-Q R(%) GROSS MARGIN IN Q1-Q R(%)

27 PBG Group s financial highlights (PLN 000) REVENUE NET PROFIT 124% 103% OPERATING PROFIT - EBIT OPERATING MARGIN 129% 27

28 Disclaimer This presentation was prepared by PBG S.A. Data and information contained in the slides are for information purposes only and do not constitute full financial analysis. For a detailed description of PBG's operations and financial situation, please refer to current and periodic reports available at All data contained herein is based on sources which we deem reliable and trusted. This presentation has not been audited. This presentation and related slides may contain forward-looking statements. Such statements must not be construed as the Company's forecasts or guarantees of its future performance. 28