Marfrig Global Foods December 2016
Disclaimer 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 Company nor any of its affiliated companies, consultants or representatives undertake any responsibility for any 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 September 30, 2016, 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 anticipates, hopes, expects, estimates, intends, projects, plans, predicts, projects, aims 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 Company, depending on the case. 2
Agenda Marfrig Overview Business Units: Differentials and Strategy Keystone Foods Beef Global scenario 3Q16 Financials Why Marfrig? 3
Marfrig Track Record Marfrig IPO Novo Mercado Major Acquisitions Moy Park Seara Keystone Optimization of organizational structure without loosing global footprint 2007 2008 2009 2010 2011 2012 2013 2014 2015 Diversified geographic presence in animal protein, serving the retail and food service channels Growth based on acquisitions International footprint High Leverage Seara Sale Moy Park Sale Focus to Win Productivity agenda Operational improvements at BU s Liability management and debt reduction One of the world s top beef producers and one of South America s largest lamb suppliers One of the world s largest suppliers of processed food to food service 4
Strategic Actions FOCUS TO WIN VALUE LEVERAGE ACTIONS Continuous operational improvement and increased operating cash flow Searching for productivity + synergies Streamlining Beef Brazil production units Improving Brazil sales mix Selling non core assets Adjusting the capital structure and reducing borrowing costs Closing of Moy Park sale Implementing ongoing Liability Management Profitable growth and global leadership in foodservice Prioritizing organic growth opportunities at Keystone Consolidating operating improvements at Beef GREATER VALUE TO SHAREHOLDERS 5
Marfrig at a glance 47 commercial, Presence in Serving global retail production and countries in the 12 and food chains distribution Americas, Europe, Asia in close to units and Oceania countries 100 R$ billion* Market Cap: 3.9 Enterprise Value: 10.0 * As of December, 2016 Production Plants Distribution Centers Commercial Units Marfrig s strategy is to continue growing globally in valueadded protein products, increasing its focus on the food service segment, and taking advantage of its highly competitive and geographically diversified basis to supply beef from South America 6
Corporate Profile Net Revenue (1) (R$ billion) 15.9 21.9 23.7 18.8 15.2 18.9 14.3 9.6 1.0 1.3 1.4 2.1 3.3 6.2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9M16 Notes: (1) historical figures include continued and discontinued operations. Revenue Breakdown 9M16 % by Business % by Product % by Currency 15% 7% 21% 35% 50% 37% 56% 26% 53% Keystone USA & APMEA Beef Brazil Beef International Processed Fresh Beef Other US$ Real Other 7
Global Scenario Highlights
Global Beef Growth Beef consumption growth is expected to be driven by emerging markets, especially in Asia and Middle East, where beef demand should remain robust and is expected to be supported by strong growth in imports China has become a relevant beef consumer, going from 1 million tons/year in 1990 to more than 7 million tons/year in 2015, representing 13% of world consumption, and growth is expected to continue Selected Countries Beef Consumption Selected Countries Beef Imports 10 8 Million tons/year CAGR 1990-2015: 6.9% 16% of world total 9.5 950 825 663 Thousand Tons 6 4 2 1.7 417 128% 21% 57% 20% 7% 255 210 213 240 240 245 237 205 148 168 178 178 155 165 105 180 0 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017E China Egypt Iran Malaysia Saudi Arabia Source: USDA (updated October 25, 2016) China Chile Iran Malaysia Saudi Arabia 2014 2015 2016E 2017E 9
South America Beef Export Platform Brazil, Argentina and Uruguay together form the world's largest beef production region with the greatest growth potential Extensive production with strategic use of feedlot operations Excellent sanitary conditions with tracking Abundance of land, water and labor Management expertise, well adapted breeds and growing use of genetic enhancement Region is already a major global beef supplier, mainly Brazil and Uruguay Beef Cattle Herd (million heads) Beef Production (million tons) Beef Exports (million tons) 250 200 150 100 50 Argentina Australia Brazil US Uruguay 15 10 5 Argentina Australia Brazil US Uruguay 2.0 1.5 1.0 0.5 Argentina Australia Brazil US Uruguay 0 1992 1997 2002 2007 2012 2017E Source: USDA (updated October 25, 2016) 0 1992 1997 2002 2007 2012 2017E 0.0 1992 1997 2002 2007 2012 2017E 10
Global Poultry Growth Poultry is the fastest growing protein in developed and emerging markets - Growth in developing markets is expected to be 2x the growth in developed markets Strong consumer demand due to poultry s lean / low fat profile, adaptability / versatility in preparation and relative cost advantage versus other proteins 17 U.S. Chicken Consumption Million Tons 15.7 Poultry Meat Consumption 2014-2023 CAGR % 15 Developing 2.7% 13 11 World 2.3% 9 7.7 7 Developed 1.5% 5 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016E 2017E 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Source: USDA (updated October 25, 2016), National Chicken Council and OECD-FAO Agricultural Outlook 2014-2023 via Watt Global Media 11
Global QSR Industry The Global Fast Food market is expected to grow from a US$635 billion market in 2013 to US$860 billion market in 2018, a 6.2% CAGR North America is the largest market in the industry and is projected to remain the largest by 2018 Asia-Pacific share of the global market is set to rival North America in size by 2018 Global Fast Food Market (2018E US$860 billion) Global Fast Food Market 2013 2018 CAGR % North America 4% Australasia Western Europe 1.5% 4.4% Latin America Eastern Europe Western Europe Australasia Asia Pacific Middle East & Africa 34% 2% 12% Source: Euromonitor International, November 2014 9% 3% 35% North America Global Latin America Asia-Pacific Eastern Europe Middle East & Africa 4.9% 6.2% 7.2% 7.4% 10.3% 11.6% 12
Keystone Foods
Keystone Profile Diversified food company focused on valueadded protein to the Food Service industry (US/APMEA) - Revenues of US$2.0 billion in 9M16 - Focus on QSR Revenue Breakdown 9M16 % by Market 71% 29% - Poultry, beef, pork, fish and other (bakery, etc.) USA APMEA Key partner of several leading brands - 40 year relationship with McDonald s - Strategic supplier for Wendy s, Subway, Iceland Foods, Campbell s amongst other Poultry vertical integration in the U.S. covering 70%+ of the supply, largely through contract growers - Global slaughtering capacity of over 4.5 million head per week % by Protein 76% 19% 5% Poultry Beef Other % by Customer 57% 43% McD Key Accounts 14
Keystone Production Structure United States Slaughtering Processed food Other Slaughtering Processed food Other 3 integrated poultry complexes and 7 processing plants 1 R&D facility 198 million birds/year 390,000 tons of processed food/year APMEA Countries: Australia, China, Malaysia, South Korea and Thailand Further processing plants (5 multi-protein, 3 poultry and 1 beef) and 1 primary processing plant 2 innovation centers 55 million birds/year 195,000 tons of processed food/year 15
Keystone US Vertical Integration Keystone Farm System 19 Pullet Farms 3 owned by Keystone 61 Breeder Farms 1 owned by Keystone 296 Broiler Farms 1 owned by Keystone Supply Control Keystone sources 70%+ of its U.S. poultry needs from vertically integrated system; purchases remainder from the market 16
Keystone US Poultry Key Categories Ready-to-Cook Par Fried Poultry Fully Cooked/ Frozen Poultry Fresh/Deli Rotisserie Tenders, filets, patties, wings and nuggets Largest product type Primarily marketed to QSR chains like McDonald s, Wendy s Diced chicken, strips, filets, patties, wings Second largest product type Marketed to branded consumer companies like Campbell s, Nestlé and ConAgra Frozen Food Whole chickens without giblets, 8-piece cut-up Includes other value-added marinated products for QSRs like Zaxby s Marketed to major retailers and club stores like Publix, Sam s Club and Wegmans 17
Keystone US Beef & Fish Key Categories Beef Patties Fish Patties Leading supplier to McDonald s Keystone has the largest beef patties plant in US Strategic supplier to McDonald s 18
Keystone APMEA Key Categories Poultry Products Broad range of chicken products Primarily marketed to western QSR chains and local APMEA clients Beef Products Beef produced all facilities Products marketed to western QSRs and local APMEA clients Beef Patties Beef Patties Chicken Nugget Chicken Patty Chicken Strips Pork, Fish & Other Bacon produced in non-halal facilities; also manufacture Halal substitutes for bacon Fish patties and bakery items Middle Wing Wing Stick Spicy Wing Fish Patties Halal Bacon Substitute Cheesecake 19
Keystone Strategic Goals Leverage Global Poultry Demand Key Account Penetration Geographic Expansion 20
Key Accounts Accelerate Growth Significant business with global brand players in the QSR, foodservice, retail and industrial channels Key Account Further Processing and Value Added Sales (US$ million) 430 531 561 681 754 APMEA USA 264 281 327 2009 2010 2011 2012 2013 2014 2015 3Q16LTM Select Key Accounts 21
APMEA Differentiated Positioning Keystone is well positioned to capture growth in the region with operations in the high-growth markets local production over 20 years present in the region food safety acknowledgement in the industry Select Clients Slaughtering Processing Others 도니버거숙대점 -Doni Burger 22
APMEA Differentiated Positioning China Complete country coverage Global QSR, local QSR, Food Service, Retail Thailand Export-oriented, Japan, UK, EU, Singapore Retail, Food Service, QSR Local QSR QSR Global Retail Food Service Local Food Service Exports South Korea Domestic focus Global QSR, local food service Australia Beef focus Global QSR Malaysia Halal hub for the region Malaysia, Middle East, Singapore Retail & export, Halal certification 23
Food Safety & Quality Strong Reputation Food safety expectations continue to increase around the world, and Keystone s program is among the best Recognized Leadership in Food Safety Leader in Anticipatory Issue Management Award Winning Product Quality 24
Keystone Other Differentials Research & Development of New Product / Innovation Partnership with our customers to develop customized and innovative food solutions A USDA-inspected, state-of-the-art R&D facility in the U.S. Establishing 2 innovation centers in Shanghai (China) and Thailand to continue to develop new tastes and products for our customers 25
Beef
Beef Profile Beef and lamb-based meatpacker with wide footprint in South America - Revenues of R$7.3 billion (51% of Marfrig Group) in 9M16 - Vast brand portfolio, with increasing export focus Revenue Breakdown 9M16 % by Channel/ Market 71% 29% One of the world s top beef producers, 2 nd in Brazil and 1 st in Uruguay Beef Brazil Beef International Unique South American footprint - 27 production sites and 7 distribution centers in Brazil, Uruguay, Argentina and Chile - Unique positioning in the South American beef region, enhances local and international competitiveness and sanitary risk control % by Protein 76% 10% 14% Fresh Beef Processed Lamb, Leather and Other 27
Beef Production Structure 10 production units Brazil 2.7 million cattle heads/year of operating authorized capacity 2.2 million cattle heads/year of effective capacity 380 thousand heads of lamb/year Uruguay, Argentina and Chile 8 production units 1.1 million heads of cattle/year 2.0 million heads of lamb/year Slaughtering Processed food Slaughtering/Processing Distribution Center Other 28
Beef Key Strategic Goals Grow volume and average prices Maximize South America s exporting platform 29
Beef Brazilian Market Food service Strategy to optimize the sales team with a view to boost productivity implemented Improvements in service quality level in all segments (OTIF, on-time delivery, etc.) Growth in Revenue per Sales Rep 15 (R$ million/salesman) 18 25 27 Retail Focus to grow volume on small/medium retail channel Partnership with large retailers in portioned cuts products New strategically located DCs and commercial partnerships in North/Northeast regions Innovation and brand management dedicated to higher-margin products 2012 2013 2014 2015 30
Beef Brazil Exports The opening of new markets promotes growth in exports for Brazilian beef 9M16 Export destinations Beef Brazil (% on revenues) Main Importers USA Russia Japan Status for Brazilian Exports Newly opened Open Closed 3% 16% 1% 40% 18% 22% Hong Kong China South Korea Open Newly opened Closed Share of Exports Beef Brazil (% on revenues) E.U. Canada Open / Hilton Closed 44% 48% 44% Mexico Closed Egypt Open Venezuela Open Saudi Arabia Newly opened 2014 2015 2016LTM 31
Beef Uruguay Exports Uruguay has access to the main beef import markets 9M16 Export destinations Beef Uruguay (% on revenues) Main Importers Status for Uruguayan Exports 20% 28% 13% 31% USA Russia Open Open 7% 1% Japan In Negotiation Hong Kong China South Korea E.U. Canada Open Open Open Open/Hilton Opem Share of Exports Beef Uruguay (% on revenues) 62% 58% 60% Mexico Open Egypt Open Venezuela Open Saudi Arabia Open 2014 2015 2016LTM 32
Beef Relationship programs 33
Beef Sustainability Marfrig club promotes the production of sustainable, safe and legal beef 4,146 farm members as of December 2015 Marfrig Tacuarembó plant started the Organic Meat Program in 2000 Meat is free from synthetic fertilizers, anabolic hormones and growth stimulants. Cattle is grass-fed only Marfrig is a signatory of the Criteria for Industrial Scale Cattle and Beef Products Operations in the Amazon Biome Monitor regularly by satellite all the suppliers located in the Amazon Biome to ensure that animals do not come from newly deforested areas, indigenous land and conservation areas 26 million hectares monitored by Marfrig Marfrig was the pioneer in Brazil to sell products with the Rainforest Alliance Certified seal. The certificate attests that the beef was produced in accordance with sustainable environmental, social and economic practices as well as good animal welfare and production management practices 34
Beef Animal Welfare In line with EU Regulation 1099/09 Written procedures for Animal Welfare assurance within our production plants Infra-structural and handling techniques improvements Continuous communication and reporting to farmers on bruise occurrence Investing in continuous training Marfrig Club Check-List Dedicated in-house Department for Animal Welfare Training of people handling animals Modern fleet for Cattle Transportation Animal Welfare Officers in all slaughtering plants Stunning Box and Pistol in all the plants Marfrig improved one tier in the ranking published by the BBFAW, which recognizes companies with the world s best animal welfare practices. In the BBFAW s 2015 Report, the Company was classified as Tier 2 and is the bestpositioned Brazilian multinational company. 35
Financial Results 3Q16
Guidance 2016 - Revision Original Target Revised Target 2016 (1) 2016 (4) Net Revenue R$22 to R$24 billion R$19 to R$20 billion Adjusted EBITDA Margin (2) 8.5% - 9.5% 8.5% 9.0% CAPEX R$450 to R$600 million R$450 to R$550 million Free Cash Flow (3) R$100 to R$250 million R$0 to R$100 million (1) Assumptions based on exchange rate of R$4.10/US$1.00. (2) Excludes non-recurring items. (3) Operating cash flow after capital expenditures, interest expenses and income tax. (4) Assumptions based on the exchange rate of R$3.47/US$1.00 (average exchange rate: 1Q16 - R$3.91; 2Q16 - R$3.51; 3Q16 - R$3.25; 4Q16e - R$3.20/US$1.00). 37
Guidance 2016 and 9M16 Revised Target 2016 (1) 9M16 Net Revenue R$19 a 20 billion R$14 billion Adjusted EBITDA Margin (2) 8.5% 9.0% 8.4% CAPEX R$450 to R$550 million R$344 million Free Cash Flow (3) R$0 to R$100 million R$(29) million (1) Assumptions based on exchange rate of R$3.47/US$1.00. (2) Excludes non-recurring items. (3) Operating cash flow after capital expenditures, interest expenses and income tax. 38
Financial Performance Consolidated Net Revenue (R$ million) 3Q16 Revenue Breakdown -13% 15% 5,120 4,451 By Business 35% 50% Keystone USA & APMEA Beef Brazil Beef International 3Q15 3Q16 21% The decline in net revenue was due to the effects from the 8.5% Brazilian real appreciation against the U.S. and lower volume, partially offset by better prices in Brazilian domestic market. By Currency 26% US$ Real Other 53% 39
Financial Performance Consolidated Gross Profit and Gross Margin (R$ million and %) 11.4% 10.9% Adjusted EBITDA and Margin (R$ million and %) 9.1% 7.7% -17% -27% 584 487 468 341 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 Gross Profit impacted by the margin retraction and volume of Beef Division, partially offset by the strong Keystone result. EBITDA Breakdown 59% 41% 41% 59% Keystone Beef 40
Net Income/Loss Consolidated Net Loss (R$ million) 3Q15 3Q16 9M15 9M16 (170) (485) (743) (1,352) In 3Q16, the net result of continued operations* posted a net loss of R$170 million, improving R$573 million from the same quarter last year. On the same basis, the accumulated loss for the year was R$485 million, improving R$867 million from the same period of 2015. *Results from Continued Operations exclude the results from asset and equity interest divestments. 41
Keystone Highlights % Key Accounts Net Revenue (US$ million) 26% 31% -1% 697 688 Adjusted EBITDA and Margin (US$ million and %) 7.7% 9.0% +16% 53 62 3Q15 Total Volume (Thousand Tons) 278 283 3Q15 +2% 3Q16 3Q16 3Q15 Double digit EBITDA growth: 3Q16 Continued Key Accounts expansion growth and improved product mix (NAE) in the U.S.; Improved U.S. export sales price; Strong growth in Australia and Malaysia. Net revenue impacted by lower US beef prices. 42
Beef Highlights Net Revenue (R$ million) -16% Adjusted EBITDA and Margin (R$ million and %) 10.5% 6.3% 2,631 2,215-50% 42% 1,316 762 1,315 1,453 40% % food service Brazil 278 139 3Q15 Total Volume (Thousand Tons) 27% 285 259 91 57 193 202 3Q15-9% 3Q16 3Q16 40% % sales to Asia 3Q15 3Q16 The negative impact of the appreciation of real and the lower sales volumes were partially offset by domestic market prices. Reduction of the pace of exports to seek price improvement. EBITDA negatively impacted by the retraction of the sector's export spreads and lower sales volume. 43
Debt Maturity Schedule & Ratios Gross Debt (R$ and US$ billion ) 5,731 +6% 11.0 11.6 R$ million 1,159 883 1,007 2,102 2,020 1,285 3,129 Cash & Equiv. 2016 2017 2018 2019 2020 2021-22 2023 US$ 2Q16 3Q16 3.4 3.6 Ratios 2Q16 3Q16 Leverage: Net Debt / adj. EBITDA LTM Continued Operations (excl. capital gains) 3.1x 3.4x Net Debt / EBITDA LTM (Excl. FX Variation) 1.1x 2.3x Managerial Indicators: Average Cost (p.a.) 7.3% 7.4% Current Liquidity 1.7 1.7 Duration (years) 4.0 4.0 Net Debt (R$ and US$ billion ) 5.8 5.9 2Q16 +1% 3Q16 US$ 1.8 1.8 44
3Q16 Cash Flow Consolidated R$ million 537 (175) (292) (31) CFO Capex Interests FCF Descontinued 39 Total FCF 45
Bonds & Rating Issued Bonds Maturity Currency Notion Cupom 2018 USD 281.9 mm 8.375% 2019 USD 660.3 mm 6.785% 2020 USD 484.7 mm 9.500% 2021 USD 27.8 mm 11.250% 2023 USD 1.0 bn 8.000% Rating Agency National Scale Int l Scale Perspective S&P br BBB B+ Positive FitchRatings A bra BB- Stable Moody s - B2 Stable 46
Why Marfrig?
Peers Potential catch up (SOTP valuation) EV/EBITDA 2016e 16.3x Average*: 8.9x 12.2x 12.6x 9.9x 11.5x 6.6x 5.7x 6.6x 6.2x 5.0x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Marfrig is trading 39% below its EV/EBITDA peers average; Potential upside: Interest savings (BNDES conversion + cost reduction) Competitive assets with broad position in South America Keystone: a large protein player in the global market highly diversified (geographic and product portfolio) * 50% Beef s peers + 50% Keystone peers 48
Why Marfrig? Leading Player One of the largest and most diversified protein player worldwide; Solid position, strategic and diversified supplier of protein in the US QSR, foodservice and retail channels; and Leading protein supplier for APMEA region and well positioned to capture market increase in Asia and Middle East; One of the dominant players in South America: main region to support the growing international demand with grass fed, hormonfree beef; Largest player in Uruguay, already supplying in the US market, with high quality, organic and fully traceable meat. 49
Attached files
Corporate Structure Audit Committee Marcelo Correa Marcos Molina Chairman of the Board Martin Secco CEO - Marfrig Global Foods Finance Committee Carlos Langoni HR and Corporate Governance Committee Antonio Maciel CEOs - Business Units Corporate Vice-Presidents Heraldo Geres VP Legal & HR Andrew Murchie Beef Brazil Marcelo Secco Beef Southern Cone Frank Ravndal Keystone Foods Eduardo Miron VP Finance - CFO & IRO 51
Shareholder structure MMS BNDES Participações Brandes Investments Skagen AS Management +Treasury Float-Others 35.8% 19.6% 10.4% 4.8% 0.0% 29.4% As of December 2016 52
Guidance 2015 Net Revenue Target 2015 2015 (1) Combined (4) R$ 23 to R$ 25 billion R$ 25 billion 2013 Adjusted EBITDA Margin (2) 8.0% - 9.0% 8.5% CAPEX R$ 650 million R$ 556 million 2014 Free Cash Flow (3) R$ 100 to R$ 200 million R$ 213 million For the third consecutive year 2015 (1) Assumptions based on exchange rates of R$2.70/US$1.00 and R$4.30/ 1.00. (2) Excludes non-recurring items. (3) Operating cash flow after capital expenditures, interest expenses and income tax. (4) Pro-forma non-audited values, including the discontinued operations: Moy Park, Argentina Marfood and MFG Agropecuária. Excludes the capital gain from the Moy Park divestment. Combined net revenue only includes nine months of Moy Park (Januray to September 20115) 53
Sales Beef Brazil Growth in Premium Brands sales volume Exponential growth of export sales to China 14x +73% +90% + + Demand Planning Proper Variable Compensation + + Routing Field Technology + + Sales Process Management System In December 2015, China (ex-hong Kong) accounted for 15% of exports and was our 2 nd main destination 54
Liability Management Process (1/3) Initiatives Bond Repurchase 4Q15 Tender Offer Spot Market US$375m US$59m The total face value of the senior notes repurchased amounted to US$470 million, of which US$64 million have not been canceled yet and therefore are still part of the Company s gross debt. Face Value Face Value Compared to the 3Q15, gross debt was reduced by US$684 million. US$406m US$64m 55
Liability Management Process (2/3) Keystone credit lines 4Q15 - Amendment and extension of existing credit lines: Limit: + USD 270 million Maturity: + 2 years Line Limit Maturity Rate Values in U$ million From To From To From To Revolver 430 530 2018 2020 Libor+ 150 to 250 bps Term Loan 200 370 2020 2022 Libor+ 175 to 275 bps Total 630 900 Libor+ 125 to 225 bps Libor+ 150 to 250 bps Pool of 20 Banks, with Rabobank as the lead arranger. 56
Liability Management Process (3/3) In USD 1,200 1,000 Before* Avg. Term: 2,7 years Bonds Maturity Schedule (pro forma) 1,200 1,000 After Avg. Term : 4.7 years 800 800 600 600 400 400 200 200 0 *1Q16 2016 2017 2018 2019 2020 2021 2023 0 2016 2017 2018 2019 2020 2021 2023 2016 2017 2018 2019 2020 2021 2023 Opening Balance 184m 153m 567m 660m 670m 28m Issuance Call 1.0bn Repurchase 184m 153m 285m 185m Closing Balance 282m 660m 485m 28m 1.0bn 57
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