2. Financial data is presented in accordance to the International Financial Reporting Standards and represents the Company’s
consolidated results in million reais (R$), unless otherwise indicated. Company fiscal year begins in March and ends in
February of the following year (inclusive). The results here presented do not consider the acquisition of SLC Alimentos S.A.,
concluded by Camil in December 2018, except when specified.
This presentation may contain forward-looking statements which are inherently difficult to predict. Actual results could
differ materially for a variety of reasons. Forward-looking statements speak only as of the date they are made and the
Company does not assume any obligation to update them in light of new information or future developments.
This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy
or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving
investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any
recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or
reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of
their own judgment.
This presentation contains resumed information which shall not be considered complete. Certain percentages and other
amounts included in this document have been rounded to facilitate its presentation. Thus, numbers presented as total in
some tables may not represent the arithmetic sum of the numbers that precede them and may differ from those presented
in the financial statements. Operational data are not audited, as they consist in measures which are not recognized by IFRS
or other accounting standards. Nor this presentation, neither anything here contained, should create basis for any contract
or commitment.
All information here contained are subject to adjustments and revisions without notice. By creating this presentation,
neither the Company, nor any of its affiliated companies, directors, executives or employees assume any obligation to
supply the receiver access to any additional information, update this presentation or any information, or correct any
inaccuracy in any of these information. This presentation does not contain all of the relevant information about the
Company.
Disclaimer
2
3. I. Camil Alimentos Overview
II. Key Investment Thesis
III. SLC Alimentos Acquisition
IV. Key Takeaways
Appendix
A. Financial Highlights (Latest Results: 3Q18)
B. Industry Highlights
C. Selected Comparable Companies
Table of Contents
5. 5
Purpose and Values
We believe that each person can make a difference in others lives and we exist to nurture
relationships that bring more flavor to the everyday life
Our Purpose
Our Values
Trust
We honor our commitments with seriousness and discipline. We value transparency in our relationships, and
for that, we aim to gain respect and trust.
Entrepreneurship
We believe in those who dream with the effort and courage of who realize their dreams. This is the driving
force for entrepreneurship and growth with profitability.
Enthusiasm
We express joy, vitality and energy in our everyday life.
Therefore, we inspire people.
Responsibility
We prioritize ethics and high quality standards in everything we do. This way we seek to ensure the
sustainability of our business and of the environment, going beyond results.
Proximity
We build strong partnerships as a way of establishing deep lasting relationships with all stakeholders:
consumers, customers, employees and suppliers.
6. 6
Camil’s IPO
Camil successfully completed its Initial Public Offering on September 2017
Ownership StructureIPO Highlights
Camil is listed on B3’s
Novo Mercado
segment, the highest level
of corporate governance
R$9.00 / share
Priced on September 26, 2017
41.0 million ONs
Primary Offering
86.5 million ONs
Secondary Offering
R$1.2 billion
Offering Size
R$357.0 million
Net proceeds from Primary Offering
As of February, 2019
Camil
Investimentos
56%
Warburg Pincus
9%
Management and
controlling
shareholders
5%
Treasury
stocks
1%
Free float
29%
7. Leading position in all operating markets
– #1 processor and distributor of rice in Brazil (Camil brand)
– #1 processor and distributor of rice in Uruguay (Saman brand)
– #1 processor and distributor of rice in Chile (Tucapel brand)
– #1 processor and distributor of rice in Peru (Costeño brand)
– #1 player in refined sugar in Brazil (União brand)
– #2 player in the canned sardine and canned tuna market in Brazil
(Coqueiro and Pescador brands)
27 processing facilities5 and 18 distribution centers distributed throughout
LatAm, with operations in 4 countries
Reaches more than 20,000 direct and 285,000 indirect sales points in
Brazil
Exports to more than 50 countries
7
Camil at a Glance
Founded in 1963, Camil is a leading food company in Latin America with a diversified portfolio
of several brands in rice, beans, sugar and canned fish
Notes:
(1) Santa Cruz plant produces both rice and sugar; considers both plants operated by Raízen
(2) Shareholder Structure ended on January, 2019; Camil Investimentos includes Quartiero’s participation as individual holders; Free float excludes shares on treasury, related parties and Warburg Pincus
(3) Data does not include SLC Alimentos, acquisition concluded on December 3, 2018
(4) 3Q18 EBITDA and Net Income includes non-recurring events. Excluding this effects, 3Q18 LTM EBITDA reached R$436mn (9.6% margin) and Net Income of R$245mn (5.4% margin)
(5) Includes SLC Alimentos´ acquisition concluded on Dec/2018
(Uruguay)
(Chile)
(Peru)
Grains Processing Facilities: 22 (81 in Brazil)
Fish Processing Facilities: 1
Sugar Packaging Facilities: 41,2
Distribution Centers: 18 (8 in Brazil)
Rice Producing Regions
Beans Producing Regions
Camil
Investimentos
Free Float
60.6% 8.6% 5.1% 29.3%
LTM
2015 2016 2017 3Q17 3Q183,4
Net Revenues 4,229 4,948 4,663 4,809 4,533
Growth YoY 15.0% 17.0% -5.8% n.a. -5.7%
Gross Profit 1,034 1,221 1,151 1,154 1,184
Margin 24.5% 24.7% 24.7% 23.8% 26.1%
EBITDA 423 547 490 468 487
Margin 10.0% 11.1% 10.5% 9.7% 10.8%
Net Income 111 202 251 193 339
Margin 2.6% 4.1% 5.4% 4.0% 7.5%
Net Debt 998 1,014 571 743 925
Net Debt / EBITDA 2.4 x 1.9 x 1.2 x 1.6 x 1.9 x
Highlights Processing and Distribution Platform¹,³
Shareholder Structure² (%) Financial Highlights (R$mn)
Leadership positioning in all segments and countries in which it operates, Camil is one of the largest food companies in LatAm
8. 8
Timeline
Present for more than 50 years in the Brazilian everyday life, Camil grew in South America grains segment and expanded its portfolio
into new categories
Acquisition of
SLC Alimentos;
Sale of La Loma
Foundation, in the city
of Itaqui-RS
1963
Pioneer in distributing
packed rice (migration
from rice in bulk)
1974
Inauguration of the
distribution center in SP
1975
Beans
commercialization
1987
Acquisition of SAMAN
Brazil in Pernambuco
2001
Acquisition of Camaquã
plant in RS
2002
Logistics expansion: new
subsidiaries in North and
Northeast regions
2005
Acquisition of
in Uruguay
2007
Acquisition of Rio
Grande plant
20082009
Acquisition of
in Chile
Acquisition of the brand
Bom Maranhense
2010 2011 2012 2014
Acquisition of
in Peru
60’s: Foundation 80’s: Organic Expansion 90’s: Professionalization
2000’s: Acquisitions / International Expansion
2017
Camil’s
IPO
2017/2018: Recent Transactions
Acquisition of canned fish
and Costeño
Acquisition of sugar
category
2013
Acquisition of
Carreteiro and
in Argentina
2018
Private Equity History
1998 – 1st Private Equity: TCW (acquisition of
cooperative’s participation 50%)
2006 – TCW divestment (by leveraging Camil)
2011 – Gávea’s investment (31.75% of Camil)
2016 – Gávea’s divestment (by Warburg Pincus
by same Portfolio Manager)
2016 – Warburg Pincus investment
2017 – Warburg Pincus partial divestment (sale
of 23% participation on IPO; remains with 9%
stake)
2001 – SAMAN Brazil, in Pernambuco (Brazil)
2002 – Camaquã Plant (Brazil)
2007 – Saman (Uruguay)
2009 – Tucapel (Chile)
2010 - BB Mendes (Brazil)
2011 – Pescador (Canned Fish – Brazil)
2011 – Coqueiro (Canned Fish – Brazil)
2011 – Costeño (Peru)
2012 – União and Da Barra brands (Sugar - Brazil)
2013 – Carreteiro (Brazil)
2013 – La Loma (Argentina) – sold on 2018
2014 – Paisana (Peru)
2018 – SLC Alimentos (Brazil)
Camil Acquisitions
9. FishSugar
Grains - InternationalGrains - Brazil
9
Product Portfolio
Complementary product portfolio composed of high value added items
Value addedBiscuits
Core
Main products across the segments that Camil operates
Value added
10. Grains Sugar Fish
Brazil1 Uruguay Chile Peru
Grains
Sardine
Top of
Mind10 60% 83%
47% Sardine
37% Tuna
n.a. 50% 72%
Facilities
(# plants)
10¹² 4 1 7¹¹ 2 3
Diversification across 3 products categories
10
EBITDA
LTM 3Q18
(Nov-18)
R$172 mm
(35% of total)
R$315 mm
(65% of total)
Main
Brands
Market Share
2nd
43%6
2nd
23%6
1st
9%2,3
1st
32%5
Tuna
1st
48%7
1st
33%8
1st
33%9
Sardine
Net Revenue
LTM 3Q18
(Nov-18)
R$1.4 bn
(31% of total)
R$3.1 bn
(69% of total)
Business Divisions Overview
2nd
7%2,4
Rice Beans
Notes:
(1) Market shares referring to total Camil Company brands; (2) Market share Camil + SLC Alimentos; (3) Nielsen Retail Index for Rice Aug18-Sep18; (4) Nielsen Scantrack Index for Beans Aug18-Sep18; (5) Nielsen Retail Index for Sugar Aug18-
Set18; (6) Nielsen Retail Index for Sardine and Tuna Aug18–Sep18; (7) Uruguay: Market share local market + exports - Consecha Comision Sectorial del Arroz 2016/17. Local market only: 42% (#2 player); (8) Nielsen Scantrack Chile Jun17-Aug18;
(9) Kantar Worldpanel Peru Aug18-Sep18; (10) Top of Mind Camil Ipsos, Jan19; (11) Data does not include Arrozur’s plant in Uruguay; Company which Saman has 49% share; (12) Includes SLC Alimentos´ acquisition on Dec/18
11. Rice
1º
9.1%2,3
1º
33.5%5
2º
42.9%6
2º
23.2%6
2º
7.3%2,4
Sugar Canned FishGrains
Beans Sardines TunaSugar
Uruguay7 Chile Peru
1º
48.0%
1º
33.3%8
1º
33.0%9
BrazilInternational
11
Recognized Brands, Leadership and Innovation
Broad consumer recognition and innovation leads to several awards and market leading positions
& win the
award for best brands of
Rice and Beans, and
Sugar, by Datafolha
Camil brands win the
award for Top 5 brands of
2018 for Sugar and Tuna,
by Super Varejo Magazine
Aug/2018
Aug/2018
• IR Magazine Awards 2018
• Recognitions by Institutional Investor 2018
• As Melhores da Dinheiro Rural 2018
• Valor 1.000 2018
• Melhores e Maiores Exame 2018
• Selo RA 1000 2018 – Reclame Aqui
• Prêmio APAS Acontece 2018 e 2017
• Troféu Carrinho de Ouro 2017
Other Awards Camil
Notes:
(1) Market shares referring to total Camil Company brands; (2) Market share Camil + SLC Alimentos; (3) Nielsen Retail Index for Rice Aug18-Sep18; (4) Nielsen Scantrack Index for Beans Aug18-Sep18; (5) Nielsen Retail Index for Sugar Aug18-
Set18; (6) Nielsen Retail Index for Sardine and Tuna Aug18–Sep18; (7) Uruguay: Market share local market + exports - Consecha Comision Sectorial del Arroz 2016/17. Local market only: 42% (#2 player); (8) Nielsen Scantrack Chile Jun17-
Aug18; (9) Kantar Worldpanel Peru Aug18-Sep18;
• Camil Minuto Caseiro (Instant Rice)
• Rice Biscuit (small package)
• União: Cake mix
• Partnership – Natural Sweetener
• New sardine and tuna fillets
Brands
Awards Leadership¹
Innovation
12. 169
123 142
209
315
375 361
423
547
490 514
11%
09% 10% 12% 11% 10% 10% 10% 11% 11% 12%
23% 23% 24%
27%
24% 25% 23% 24% 25% 25% 26%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 3Q
2018EBITDA EBITDA Margin Gross Margin
58 71 56 74
137 124
105 111
202
251
364
3,8%
5,4%
4,0% 4,1%
4,9%
3,5%
2,9% 2,6%
4,1%
5,4%
8,3%
00%
01%
02%
03%
04%
05%
06%
07%
08%
09%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 3Q
2018Net Income Net Margin
1.513
1.313 1.407
1.784
2.776
3.582 3.676
4.229
4.948
4.663
4.393
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 3Q
2018
Despite the slowdown in the Brazilian economy, Camil posted solid results maintaining EBITDA margin over +10%
Even in a challenging environment,
Camil was able to post double-digit
growth, maintaining profitability
12
Solid Business Model with Stable and Resilient Margins
CAGR+13%
CAGR+18%CAGR+13%
Notes:
Company fiscal year begins in March and ends in February of the following year (inclusive).
Camil: Net Revenue (R$mm) Net Revenue by Segment (R$mm)
EBITDA Evolution (R$mm) Net Profit Evolution (R$mm)
Excluding non-recurring events,
LTM 3Q18 Net Income reached
R$245mn (5.6% margin)
2.640 2.601 2.935
3.683 3.331 3.216
942 1.075
1.294
1.265
1.332 1.4673.582 3.676
4.229
4.948
4.663 4.393
25%
23%
24% 25% 25%
26%
2013 2014 2015 2016 2017 LTM 3Q 2018
Food Products Brazil Food Products International Gross Margin
14. Wide Distribution
Network Reaching
more than 300k POS
2
Market Leader with
Unique Brand
Awareness
1
Compelling
Business Model with
Stable and Resilient
Margins
3
Key Investment Thesis
Solid Cash Flow
Generation
Supported by Strong
Operating Results
6
14
Investment Grade
Indebtedness Profile
5
Seasoned
Management Team
and the Highest
Standards of
Corporate
Governance in Place
4
15. Iconic Brand Recognition… …Leading to a Leadership Position in all Sectors & Regions1
15
Brazil – RICE2,3
#1 9.1%
#2 Player 2 4.8%
#3 Player 3 3.1%
Peru – RICE9
#1 33.0%
#2 Player 2 5.1%
#3 Player 3 4.5%
Chile – RICE8
#1 33.3%
#2 Player 2 17.2%
#3 Player 3 (PLs) 43.5%
Brazil – REFINED SUGAR5
#1 31.6%
#2 Player 2 18.7%
#3 Player 3 15.2%
Brazil – SARDINE6
#1 Player 1 46.5%
#2 42.9%
Brazil – TUNA6
#1 Player 1 60.2%
#2 23.2%
Uruguay – RICE7
#1 48.0%
#2 Player 2 40.5%
Percentage values indicate market
share in terms of volume.
Market leader in São Paulo City:
Rice 44% market share10
Rice: 60% Top of Mind¹¹ in São Paulo
One of the most complete line of
products: More than 10 variations of
grains, including ready to eat
One of the most complete line of
products: traditional and new
segments (i.e. “Fit” sugar, Sucralose,
Naturals)
Top of Mind leader (83%)¹¹
“Top-5 Suppliers” Award (#1)
Complete line of products: Tuna,
Sardines, Tuna Sauces and Pâtés
65% Top of Mind in Sardine and
56% in Tuna¹¹
“Top-5 Suppliers” Award
(Sardine #1; Tuna #2)
Notes:
(1) Market shares referring to total Camil Company brands; (2) Market share Camil + SLC Alimentos; (3) Nielsen Retail Index for Rice Aug18-Sep18; (4) Nielsen Scantrack Index for Beans Aug17-Sep18; (5) Nielsen Retail Index for Sugar Aug18-
Set18; (6) Nielsen Retail Index for Sardine and Tuna Aug18–Sep18; (7) Uruguay: Market share local market + exports - Consecha Comision Sectorial del Arroz 2016/17. Local market only: 42% (#2 player); (8) Nielsen Scantrack Chile Jun17-
Aug18; (9) Kantar Worldpanel Peru Aug18-Sep18; (10) Nielsen Retail Index for Rice Out18-Nov18 Market share Camil + SLC Alimentos (11) Top of Mind Camil Ipsos, Jan19;
Brazil – BEANS2,4
#1 Player 1 7.4%
#2 7.3%
#3 Player 3 5.8%
Market Leader with Iconic Brand Recognition
16. OwnSalesForce
33%
36%
26%
6%
WholesaleRetailersKeyAccounts
OutsourcedSales
Force
Distributor
#
Indicates the
representativeness of
direct points of sale
by region in Brazil
28%
12%
14%
41%
4%
% Sales
Fev/2018
95% of sales made by the
company’s own sales force
and 5% from distributors
(canned fish)
More than 14,000 direct and
300,000 indirect point of
sales in Brazil
16
Selected Accounts / Retailers
Selected Wholesale Stores
Strong distribution network with more than 400,000 points of sale, favoring the business expansion to new segments
Wide Distribution Network Reaching more than 400k POS
17. Source: IBGE, BCB, Ministry of Agriculture, Bacen
During 2015-16, the GDP decreased 7.2%
- returning to pre-2010 levels
Camil expanded its market share in the rice
market reaching 9.1% in 2018
17
Despite the recent slowdown in the Brazilian economy, Camil presented a strong performance in terms of growth and margin stability
Brasil: GDP and Retail Sales (% growth, real terms) Camil: Net Revenues (R$ millions)
Camil: EBITDA (R$ millions) and Margin (% of Net Revenues) Margin Profitability Evolution (% of Net Revenues)
CAGR+13%
CAGR+13%
Solid Business Model with Stable and Resilient Margins
18. 18
The segments in which Camil operates present active price dynamics, with weekly price pass-through, ensuring stability of margins
Rice - Market vs. Camil’s prices Beans - Market vs. Camil’s prices
Sugar - Market vs. Camil’s prices Canned Fish – Camil Gross Price (in R$/kg)
1.00
2.00
3.00
4.00
5.00
6.00
7.00
50
100
150
200
250
300
nov-16 fev-17 mai-17 ago-17 nov-17 fev-18 mai-18 ago-18 nov-18
Camil(R$/kg)
Agrolink(RS/60kg)
Brazil - Beans Price Camill - Gross Price
Solid Business Model with Stable and Resilient Margins
(Cont´d)
19. Adjusted selling price (1) (CIF - R$/30kg)
Notes:
(1) Adjusted by the monthly inflation of the period (Jan/2006 – July/2018)
(Grossmargin)
Average
sale price
(R$/30kg)
Average
cost
(R$/30kg)
Sale / Cost
Gross
margin
Year
2006
2007
39.4 22.7 1.7x 27.9%
2008
42.0 24.8 1.7x 25.9%
2009
53.9 34.2 1.6x 24.9%
2010
51.0 30.8 1.7x 24.6%
2011
50.5 28.6 1.8x 25.1%
2012
45.5 25.1 1.8x 27.2%
2013
55.8 34.4 1.6x 26.3%
2014
59.2 35.5 1.7x 22.8%
2015
63.5 36.9 1.7x 24.2%
2016
67.3 37.4 1.8x 24.5%
80.5 46.5 1.7x 24.7%
19
Subtitle
Average purchase price (CIF - R$/30kg)
Gross margin (% net revenue)Average selling price (CIF - R$/30kg)
2017 74.0 39.8 1.9x 24.7%
Since 2006, Camil maintained gross margin of 22.5% - 28.0%, mainly due to its weekly pricing capacity
Business Model: Proven Cost Transfer Capability (rice case)
Solid Business Model with Stable and Resilient Margins
(Cont´d)
20. Rice
Brand
Agriculture Origination
SugarCannedFish
Processing Packaging Distribution Marketing
Pricing and Purchasing
Strategy
Weekly purchases at spot price
Provision of storage to producers
throughout the year: benefits from
logistics costs increasing Camil’s
bargaining power
Regulated price system protects Saman’s
margins
Price paid to producers based on Saman’s
sale price (no FX risk despite the export-
led model)
Local purchases at market price (c. 50%)
Also imports rice from Saman
Most part of its rice imported rice from
Saman
Long term supply contract with Raízen
with guaranteed volume (take-or-pay)
Based on a market price derived from
international sugar prices
Super Barra: project to internalize the
process of packaging by Camil
Acquisition from fragmented suppliers at
market prices, complemented by import
contracts
Concentrated industry favors price
discipline
20
Solid Business Model with Stable and Resilient Margins
(Cont´d)
21. Main Competitor
União: Brand of strong emotional bond, preferred by consumers and with greater perception of value!
32%
72
%
Unique Footprint
150,000 points of sale
reaching big part of the
population
Wide presence across all
States of Brazil
Pricing Power
"Brand of sugar": higher
prices compared to the
main competitors
Market Leadership
Absolute Leadership with
83% of Top of Mind¹
Total Company refined
sugar brands have 32%²
market share
Market Share
21
Notes:
(1) Top of Mind Camil Ipsos, Jan19
(2) Nielsen Retail Index for Sugar Aug18-Sep18
(3) Price Index Nielsen
+15%
115
100
Sugar price³
1º
+5%
105
100
Camil Others
Rice Strategy
Replicating the sugar model
from commodity to brand
Increase premium price
Rice price³
Others
Premium Price | Sugar Case Study and Rice Strategy
22. 22
Rice | Broad Product Portfolio
Tailored product offering for targeted consumer segments across Brazil
Premium
Upper
mainstream
Mainstream
Lower Mainstream
Value Priced Products
Notes:
(1) White rice price index Nielsen Retail Index - Sep18
Avg. national prices
Avg. regional prices
95
111 100
129
Portfolio Camil¹Product Portfolio - Breakdown
Avg market
selling price
129
Avg market
selling price
111
Avg market
selling price
101
Avg market
selling price
93
Product Shelving
Avg market
selling price
99
112
99
23. 23
Fragmented Industry with high opportunity for expansion and consolidation
Historical Volume
Market Share (in volume)
Market Share¹
Fragmented market:
Top 5 players have 25% of
mkt share
1º
Rice Market Share
% of Camil’s rice market share1,2
% of total rice market share
IV III
II
I
V
36%
15%
2%
10%
10%
7%
6%
23%
21%
16%
VII
3% 11%
VI1% 14%
Brazil – RICE2,3
#1 9.1%
#2 Player 2 4.8%
#3 Player 3 3.1%
Product Portfolio
Mainstream
Valuepricing
brands
583
538
556
600
596
2013
2014
2015
2016
2017
147 147 150
139
143
137 137
121
138
146
137 135
145
159
147 148
168
156
144
128
136
163
134
80
90
100
110
120
130
140
150
160
170
180
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
Wide and fragmented market
High industry consolidation
opportunity
Rice Industry
Ton mm
Last 5y
Brazil Food Segment | Rice
26. 7 7
8
11
6
5
8
12
7 6
11
12
8 8
9
14
8
6
11 11
5
8
10
-
2
4
6
8
10
12
14
16
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
26
Canned Fish: consolidated industry, with growth in consumption and seasonality on Lent period
Historical Volume
Market Share Product Portfolio
MainstreamValuepricing
brands
2º
Sardine Market Share
Consolidated Industry:
top 2 players have 90% of
the market
Consolidated industry
Growth in consumption of canned fish
Seasonality on lent period
Canned Fish Industry
Brazil – SARDINE6
#1 Player 1 46.5%
#2 42.9%
Brazil – TUNA6
#1 Player 1 60.2%
#2 23.2%
2º Tuna Market Share
Consolidated Industry:
top 2 players have 83% of
the market
Ton mm
Last 5y
33
32
37
40
36
2013
2014
2015
2016
2017
Brazil Food Segment | Canned Fish
27. 25%
11% 10%
6% 5% 5% 4% 4% 4% 3%
23%
SP MG RJ BA RS PR PE CE GO PA Others
Distribution of Grain Sales by Brazilian State (% value)
Metropolitan regions – expansion to countryside
Minas
Gerais
São
Paulo
High potential to consolidate leadership towards
countryside
Expansion to white areas…
…Coupled with consolidation of the Brazilian grains
market
Unique opportunity to consolidate the fragmented Brazilian rice market....
1º
…with additional expansion opportunities in the also fragmented bean market
Even in regions where it is the absolute
leader, there is still potential for
expansion as brand penetration is not
homogeneous in each state
27
1
RiceBeans
2º
Unique position to consolidate Brazilian rice and beans markets
Backed by
Private Equity
Acquisitions
history
Player 2
Player 3
Player 4
Rice Market Share
Beans Market Share
Source: Camil - Considers the amounts accumulated in the 12-month period up to the highlighted date.
% of Camil’s rice market share1,2
% of total rice market share
IV III
II
I
V
36%
15%
2%
10%
10%
7%
6%
23%
21%
16%
VII
3% 11%
VI1% 14%
% of Camil’s beans market share1,2
% of total beans market share
IV III
II
I
V
20%
8%
1%
2%
9%
17%
20%
20%
12%
17%
VII
1% 4%
VI0,5% 10%
Brazil – RICE2,3
#1 9.1%
#2 Player 2 4.8%
#3 Player 3 3.1%
Percentage values indicate market
share in terms of volume.
Brazil – BEANS2,4
#1 Player 1 7.4%
#2 6.0%
#3 Player 3 5.8%
Notes:
(1) Market shares referring to total Camil Company brands; (2) Market share Camil + SLC Alimentos; (3) Nielsen Retail Index for Rice Aug18-Sep18; (4) Nielsen Scantrack Index for Beans Aug17-Sep18
Clear and Tangible Avenues for Expansion
28. 28
Clear recovery opportunities in the sugar and fish markets
and expansion to new categories in South America
Consolidation in
the Fish Market in
Brazil
3
International
Geographic
Expansion
5
Entry into new markets
and long-term opportunity
for entry into new
categories Focus Regions for
Expansion
New Markets
5.4%
2.5% 1.9%
Solid Growth Perspective
Rice sales CAGR 2016-2021
ArgentinaPeru Colômbia
Notes:
(1) Bimonthly Nielsen Retail Index
Expansion to
New Categories
4
Pasta - R$8.1 billion
Coffee - R$19.7 billion
Flour- R$12.5 billion
Additional Potential Market Rated
at + R$40 billion
2%
6%
4%
88%
Pasta Coffee Farinaceous
Camil's unique
distribution network
enables products to
expand into other
growing markets
Total Market Packaged Foods
R$342bi
Tuna Market Share1 (%)Sardine Market Share1 (%)
Fine Sugar Market Share Evolution1 (%)
Recovery in the
Sugar Market in
Brazil
2
48%
42%
jan/12
set/16
nov/16
jan/17
mar/17
mai/17
jul/17
set/17
nov/17
jan/18
mar/18
mai/18
jul/18
set/18
nov/18
Camil record share was 25,9% in Nov 2017. Camil expects to reduce
share gap to its main competition, reaching 34.7% until 2020, which
represents an additional volume of 5 thousand tones per year
Camil record share was 45,5% in May 2017. Camil expects to reach
46.5% market share until 2020, consolidating its leadership position
with an additional volume of 10 thousand tones per year
Market Share
42% 42% 43% 42% 42% 42%
40% 40%
34%
37% 36%
38%
40%
37% 36%
35% 35%
37% 36%
33%
36%
34%
32% 32%
jan/15
mar/15
may/15
jul/15
sep/15
nov/15
jan/16
mar/16
may/16
jul/16
sep/16
nov/16
jan/17
mar/17
may/17
jul/17
sep/17
nov/17
jan/18
mar/18
mai/18
jul/18
set/18
nov/18
27%
25%
jan/12
set/16
nov/16
jan/17
mar/17
may/17
jul/17
sep/17
nov/17
jan/18
mar/18
mai/18
jul/18
set/18
nov/18
Clear and Tangible Avenues for Expansion
(cont´d)
29. 29
26 26
Luciano Quartiero
CEO
Ex-CFO of Camil Alimentos
Post-Graduate in Finance from the University of California, USA and
MBA at IBMEC, Brazil
Graduated in Business Administration from PUC / SP, Brazil
k
10 31
Previous experience in Casarin, Saman and Josapar companies in
the areas of sales and supplies
Graduated in Agricultural Engineering from Federal University
MBA FGV in Business Management and Marketing Management
André Ziglia ¹
Supply Director
6 23
Max Sommerhauzer Vaz da Silva 1
Commercial Director
Former Commercial Director of Cosan S.A.
Former Commercial Manager and Marketing of Agricultural
Machines Jacto S.A.
Post-Graduate in Business Administration from FIA / USP
Graduated in Agronomy from Universidade Estadual Paulista UNESP
- Jaboticabal
19 37
Jaime Ghisi ¹
Logistics Director
Former Commercial Manager Mercosul Ferrovia ALL
Former Regional Superintendent of AGEF - General Warehouse
Customs Brokers
Graduated in Civil Engineering from PUC / RS, Brazil
Flavio Vargas, CFA
CFO and IR Director
Ex-CFO of Smiles S.A.
Ex-Director of Fleet and Treasury of Gol Linhas Aéreas S.A.
MBA, with honors, in Finance from NY University, Stern, EUA
Graduated in Mechanical Engineering from Escola Politécnica,
Universidade de SP, Brazil
2 21
Renato Gastaud 1
LatAm Director
Former Superintendent and Industrial Director of Josapar
He has relevant experience in rice, market in which it has been
inserted for 39 years, of which 15 in Camil
Graduated in Agricultural Engineering at UFPEL / RS
16 40
Renato Costa 1
Industrial Director
Former Industrial Director of Kraft Heinz
He has relevant experience in the industrial area, having passed
through Suzano and Ambev, where for 16 years he held various
positions in logistics and management
Graduated in Mechanical Engineering from UMC and holds an MBA
in Marketing from FGV and in business management from IBMEC /
SP2 20
Notes:
(1) Non statutory directors.
Leadership with Wide Experience in the Sector
All Camil's directors have experience in their respective areas of expertise
Christina Larroude ¹
Marketing Director
Experienced marketing leader in FMCG market
2nd line leadership positions in Companies such as P&G and J&J in
multiple segments (Laundry, Beauty, Personal and Baby Care, OTC)
Graduated and MBA in Business Administration in FGV/EAESP, major
Marketing5 20
Erika Magalhães ¹
Human Resources Director
Ex - HR Vice President at Estacio Participações
Ex – Director at Allied Tecnologia
20 years of HR experience, having passed trough in Ambev, Noble
and Grupo Libra.
MBA in Finance from ESAMC, with graduate in Administration at
UNIFEV, and Psychology at UNP-PB.1
Claudio Giglio
Legal Officer
Camil’s former Tax Officer;
Graduated in Accounting and Law from the Federal University of RS;
Knowledge in corporate reorganizations and in direct and indirect
taxes.
820 25
Years of experience in Camil
Legend
Years of experience in the market
30. 30
Jairo Quartiero
(Chairman)
Piero
Minardi
(Warburg Pincus)
Alain
Belda
(Warburg Pincus)
Thiago
Quartiero
Jacques
Quartiero
José Fay
(Board Member at J.Macedo
former CEO of BRF)
Carlos Júlio
(Former CEO of Tecnisa
and HSM do Brasil)
Founding
Family
Warburg
Pincus
Independent
Members
Listing on Novo Mercado, highest
Corporate Governance standard at
B3
Common voting shares only
100% Tag along
2 or 20% of independent Board
Members
Minimum Free Float of 25%
OPA by fair value
Evaluation of Board of Directors,
Management, and Committees
Minimum dividend/JCP of 25% of
the net profit (after legal reserves
and contingencies – in compliance
with Law No 6.404)
Since 2008, the Board of Directors
is responsible for general strategic
policies
2 independent Board Members
12 meetings/year on average
Election for unified terms of 2 years
Re-election is permitted.
(+) 4 Committees elected:
Financial Committee
Audit Committee
Personnel Management Committee;
and
Ethics Committee
(+) Fiscal Council
Corporate body that freestands
from the Company’s management
and its independent auditors
Monitoring, accomplishment of
legal and statutory responsibilities,
review of quarterly financial
statements, etc
Solid Corporate Governance
Camil has high levels of controls and corporate governance, being supported by
independent board members for +10 years and being audited for +15 years (big 4)
Board of Directors Corporate Governance
31. 31
Elaborate and recommend the approval of the Company’s financial policies, as well as monitoring and analysis of its
effectiveness and implementation
Periodically analysis of the company’s budget, monthly; quarterly and annual results; investment plan, etc
Periodically analysis of the impact of the company’s investment and financing plan on its capital structure
Define parameters to maintain the company’s capital structure and liquidity; among other responsibilities
Total members: 3 to 5, with at least 1 member from the BoD
Assist the Board of Directors in respect to accounting, internal controls, financial reports, auditing and compliance
matters
Support in the hiring and/or destitution of independent auditors
Supervision and monitoring of the company’s internal audit area activities; among other responsibilities
Total members: 3 to 5, with at least 1 member from the BoD
Composed by the CEO, Vice-President, CFO in addition to Legal, Audit and Human Resources personnel
The Ethics Committee is mainly engaged in the reinforcement and monitoring of transparency and best practices by
shareholders, board, suppliers, clients, third parties, employees, etc
Main monitoring activities: protection of confidential information (including third parties), gifts and entertainment,
sexual and moral harassment, conflicting interests, sustainability, safety, among others
Financial
Audit
Ethics
Analysis and recommendation of changes in remuneration policies, including salary adjustments, personnel goals, etc
Analysis and report on special conditions for hiring and dismissal of directors
Continuously contribute to the company’s succession plan (president and directors); among others responsibilities
Total members: minimum of 4 members, with at least 1 members from de BoDPersonnel
Management
Solid Corporate Governance
(Cont’d)
Well-defined committees structure aiming to enhance the company’s organizational policies and
comply with the best corporate practices
Committees Main Responsibilities/Guidelines
32. Since 2008, the Board of Directors is responsible for general
strategic policies
2 independent Board Members
12 meetings/year on average
Election for unified terms of 2 years
Re-election is permitted.
(+) 4 Committees elected:
Financial Committee
Audit Committee
Personnel Management Committee; and
Ethics Committee
(+) Fiscal Council
Corporate body that freestands from the Company’s management
and its independent auditors
Monitoring, accomplishment of legal and statutory
responsibilities, review of quarterly financial statements, etc
Listed on Novo Mercado, highest Corporate Governance standard
at B3
Common voting shares only
100% Tag along
2 or 20% of independent Board Members
Minimum Free Float of 25%
OPA by fair value
Evaluation of Board of Directors, Management, and Committees
Minimum dividend/JCP of 25% of the net profit (after legal
reserves and contingencies – in compliance with Law No 6.404)
• Financing Program for the Smaller
Producers (education, assistance with
agronomists and monitoring)
• Monthly Donation of Staple Baskets
Products
• Product Portfolio and Communication
focused on Health
• Education for Healthy Eating in Social
Media
• HACCP
• Biomassa - Thermoelectric Plant in Itaqui and Capão do Leão
• Effluent Treatment (Industrial Process)
• Fish - Dolphin Free
• Amyris Partnership – Sustainability in R&D in future initiatives
Solid corporate governance focused on value creation for shareholders and commitment to environmental and social practices
32
Environmental Governance
Social
Environmental, Social and Governance (ESG)
34. 34
M&A: SLC Acquisition - Transaction Summary
Acquisition
Investment
Overview
Acquisition
100% of SLC Alimentos Ltda.
from Grupo SLC Participações
Total: R$308mn, divided by R$140mn in cash (+) R$40mn of retention (+) R$128mn of net debt¹
Acquisition aligned to the Company’s expansion strategy and an important step towards the consolidation of the
grain market in Brazil
• Consolidation of the grain market in Brazil
• Portfolio composed with relevant brands in the value pricing segment and brand
• Increase in volumes on rice and beans category, strengthening Camil’s competitiveness
• Growth acceleration on South, Southeast and Northeast regions in Brazil
• Complementarity of logistics and distribution platforms
• Operational and commercial potential synergies
Approvals and
Closing
Concluded:
• Oct. 26, 2018: Board of Directors Approval
• Oct. 26, 2018: Signature of the SPA
Next steps (Estimated):
• Nov/2018: CADE’s analysis
• Dec/2018: Closing
Brands
35. Industrial Facility and
Distribution Center
Simões Filho/BA
Caucaia/CE
Conceição do Araguaia/PA
Porto Alegre/RS
Jandira/SP
Distribution Centers
1
2
3
4
5
12
3
4
5 1
2
3
4
5
Jaboatão dos Guararapes/PE
Paraíso do Tocantins/TO
Tatuí/SP
Alegrete/RS
Capão do Leão/RS
1
2
3
4
5
Industrial Facilities
Commercial
office
Headquarters
Porto Alegre/RS
6
35
SLC Acquisition: Overview
Ex-subsidiary of SLC Participações Group
Founded in December 2000
and three other brands in the portfolio.
Brand was awarded prizes for top of mind
Net Revenue reached R$512mn and EBITDA R$32mn in
20174
Approx. volume of 205k tons in rice and 16k tons in
beans in 2017
5 industrial facilities (closing of 3 facilities in 2019) and 8
DCs in Brazil
SLC Alimentos Incorporated by Camil Alimentos on
March/2019, as approved by the Shareholders’ Meeting
Source:
1- SLC Alimentos; 2- Nielsen Retail Index Monthly, Acum. Ago-Set/18; 3- Nielsen Scantrack, Acum. Ago-Set/18
4- Calculated based on Financial Statements which were audited by E&Y from January to December 2017.
Overview¹ Market share
Rice - Market share (%)²
Company
7.3% 1.6%
Main Brand
Beans - Market share (%)³ 5.5% 1.3%
Brands¹
Namorado
Rice: white, parboiled, whole-grain
Beans: black, carioca, red and white
Lentils
Namorado Gourmet
Rice
Export: Angola, Cape Verde, Canada,
USA, England, Uruguay
Butuí
Rice: white e parboiled
Beans: black and carioca
Present in Northern region, SP and MG
Bonzão
Rice: white rice and rice for dogs
Present in the northern region
Americano
Rice: white rice
Main markets: Tocantins, southern Pará
and southern Maranhão
Brands Camil and Namorado combined hold approx. 9% of the rice market and
7% of the beans Market in Brazil
Brasília/DF6
36. 36
SLC Acquisition: Financial and Operational Highlights
Source
1- SLC Alimentos – audited data from Jan-17 to Dec-17; Camil data from Mar-17 to Feb-18
12M17
Period ended on Feb. 28, 2018 Dec. 31, 2017
12M17 12M17 12M17
Audited Audited Pro-forma
Volume Grains Brazil (k ton)
Grains 668,5 221,0 889,5
Rice 596,1 205,0 801,1
Beans 72,4 16,0 88,4
Financial Statements (R$mn)
Net Revenues 4,663 512 5,175
(-) Cost of Sales and Services (3,513) (400) (3,913)
Gross Profit 1,151 112 1,263
(-) SG&A (782) (86) (868)
(+/-) Other Operating Income and
Result in Uncons. Subs.
31 - 31
EBIT 400 26 426
(+/-) Finacial Result (74) (13) (87)
Pre-Tax Income 325 13 338
(-) Total Income Taxes (75) (1) (76)
Net Income 251 12 263
EBITDA Reconciliation
Net Income 251 12 263
(-) Net Finacial Result 74 13 87
(+) Income Taxes 75 1 76
(+) Depreciation and Amortization 90 6 96
(=) EBITDA 490 32 522
Margins
Gross Margin 24.7% 21.9% 24.4%
EBITDA Margin 10.5% 6.2% 10.1%
Net Margin 5.4% 2.7% 5.1%
+
37. 3.157
4.229
4.948
4.663
423
547
490
111
202
251
571
308
457
563
512
35
37
32
24
10
12
128 180
Firm Value
2015A
2016A
2017A
2015A
2016A
2017A
2015A
2016A
2017A
Net Debt 2017
37
Combined Historical Financial Highlights1 (R$mn)
SLC AlimentosCamil
10.6%
10.1%
3.9%
5.1%
Combo
C S
91% 9%
90% 10%
90% 10%
90% 10%
92% 8%
94% 6%
94% 6%
82% 18%
95% 5%
95% 5%
72% 28%
9.8%
2.9%
11.1% 6.5%
10.5% 6.2%
6.4%
5.4%
1.2x 4.0x 1.7x
Combo
10.0% 7.7%
5.4%
FinancialIndicatorsDebt
NetRevenues
EBITDA/
margin
NetProfit/
margin
Leverage
(DL/EBITDA 17)
Value
1.7%
2.4%
5.2%
Source:
1- SLC Alimentos – audited data from Jan-17 to Dec-17; Camil data from Mar-17 to Feb-18
2- SLC Alimentos was bought by leverage increase (R$308mn being R$180mn Equity and R$128mn SLC Debt)
3- Camil Alimentos S.A. and SLC Agrícola Ltda. Market Share Data Nielsen (Retail + Wholesale)
Market Share Brazilian Rice per Region
SLC Acquisition: Pro-forma
Estimated Synergies
Synergies by COGS and G&A:
approx. R$10 million/year
(+)
Synergies by tax credits:
R$80 million
Supplies
1
2
3
4
5
6
Industrial
Logistics
Administrative
Capital Structure
Sales
Main sources of synergies:
7%
32%
1%
8%
8%
2%
21%
2%
2%
5%
3%
2%
2%
0%
0%
0%
Total Brazil
Greater São
Paulo
South
NE
Int. São Paulo
SE (ex-SP RJ)
Rio de Janeiro
Midwest
9%
ComboCombo
37%
4%
10%
10%
2%
21%
2%
3,465
4,686
5,511
5,175
458
584
522
135
212
263
879²
39. Camil
Market leader with unique brand awareness4
Wide distribution network reaching more than 300k POS5
Compelling Business Model with Stable and Resilient Margins6
Seasoned management team and the highest standards of corporate governance in place7
Strong Cash Position and Investment Grade Indebtedness Profile8
Access to cheap financing Alternatives and Local DCM9
Key Takeaways
Market
Resilient demand
The Company’s main market proves resilient to economic downturns as the consumption of rice and beans has a strong cultural appeal, being a pillar of
the Brazilians’ typical diet
1
Low exposure to fluctuations in commodities prices
The market dynamics differ materially from the general commodity market, as the quality perception and brand awareness are key factors in customers’
buying decision process
2
Weekly price pass-through
The grains and sugar retail markets present active price dynamics, with weekly price pass-through, ensuring stability of margins. The canned fish market
is going through a change in its price dynamics, in which price pass-through is becoming more frequent
3
Growth Avenues
Consolidated platform uniquely positioned for sustained organic growth
Camil has a consolidated and scalable distribution platform, positioning the company to leverage on the development of new segments and change in
consumers habits
10
High potential for inorganic growth
Leadership position across all segments the Company operates, coupled with its distribution platform, enabling fast and efficient integration of new
operations and capacity to capture synergies
11
39
40. 40
Key Financial Highlights
Camil Consolidated Profitability Evolution1
169
123 142
209
315
375 361
423
547
490 514
11%
09% 10% 12% 11% 10% 10% 10% 11% 11% 12%
23% 23% 24%
27%
24% 25% 23% 24% 25% 25% 26%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 3Q
2018EBITDA EBITDA Margin Gross Margin
58 71 56 74
137 124
105 111
202
251
364
3,8%
5,4%
4,0% 4,1%
4,9%
3,5%
2,9% 2,6%
4,1%
5,4%
8,3%
00%
01%
02%
03%
04%
05%
06%
07%
08%
09%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 3Q
2018Net Income Net Margin
1.513
1.313 1.407
1.784
2.776
3.582 3.676
4.229
4.948
4.663
4.393
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 3Q
2018
Even in a challenging environment,
Camil was able to post double-digit
growth, maintaining profitability
CAGR+13%
CAGR+18%CAGR+13%
Notes:
Company fiscal year begins in March and ends in February of the following year (inclusive).
Camil: Net Revenue (R$mm) Net Revenue by Segment (R$mm)
EBITDA Evolution (R$mm) Net Profit Evolution (R$mm)
Excluding non-recurring events,
LTM 3Q18 Net Income reached
R$245mn (5.6% margin)
2.640 2.601 2.935
3.683 3.331 3.216
942 1.075
1.294
1.265
1.332 1.4673.582 3.676
4.229
4.948
4.663 4.393
25%
23%
24% 25% 25%
26%
2013 2014 2015 2016 2017 LTM 3Q 2018
Food Products Brazil Food Products International Gross Margin
41. 171
2.493 (711)
42 (388)
(435)
2 (678)
(386)
443 (33 ) 160
Cash
Nov/13
Funds from
Operations
Change
in WK
ST
Invest.
Asset
Disposal
Capex
(M&A)
Capex
(Maintenance)
Change
in Debt
Interest
Paid
Dividends
Paid
Capital
Increase
Others Cash
Nov/18
41
Breakdown of Cash Flow Generation in the Last 5 years (R$ mm)
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow
Consistent cash flow generation mainly backed by strong operating cash flow (relevant EBITDA growth with stable margins) and also
impacted by working capital seasonality and historical capex spent in M&A
Key Financial Highlights (Cont.)
Breakdown of Cash Flow Generation
44. 44
Brazil Food Segment | Rice
Sales volume: 133.6 thousand tons
• -17.9% QoQ
• -7.4% YoY
Average raw material price : R$44.01/bag¹
• +5.5% QoQ
• +18.9% YoY
Gross price Camil: R$2.60/kg
• +4.5% QoQ
• +11.8% YoY
Average market price for rice in Nov-18 vs. Oct-18 decreased in -6.7%¹:
Price reduction leads to a decrease in purchases by retail stores in Nov-18
Source: Company Source: Esalq Senar, Company
Challenging environment for rice sales in Brazil this quarter. The Company continues focused on volume recovery.
Rice – Camil’s Volume and Net Prices Rice – Market Prices vs. Camil’s Gross Prices
Rice – Product Portfolio²Rice – Quarterly Highlights
¹Source: CEPEA; rice indicator Esalq/Senar-RS 50kg.
²After SLC Alimentos´ acquisition, the Company adds the following brands to it´s portfolio: Namorado, Butuí, Bonzão and Americano.
Source: Company
MainstreamValuepricing
brands
45. Sales volume: 20.1 thousand tons
• +3.2% QoQ
• +25.0% YoY
Average raw material price: R$99.64/bag¹
• -2.1% QoQ
• -13.6% YoY
Gross price Camil: R$3.28/kg
• -2.2% QoQ
• -6.1% YoY
Remarks to sequential and annual sales recovery
Camil and value pricing brands sales increase
MainstreamValuePricing
Brands
45
Brazil Food Segment | Beans
Source: Company Source: Agrolink, Company
Sequential and annual volume growth
Beans - Camil’s Volume and Net Prices Beans - Market Prices vs. Camil’s Gross Prices
Beans– Product Portfolio²Beans – Quarterly Highlights
¹Source: Agrolink; beans indicator Sc 60kg.
²After SLC Alimentos´ acquisition, the Company adds the following brands to it´s portfolio: Namorado e Butuí.
Source: Company
1.00
2.00
3.00
4.00
5.00
6.00
7.00
50
100
150
200
250
300
nov-16 fev-17 mai-17 ago-17 nov-17 fev-18 mai-18 ago-18 nov-18
Camil(R$/kg)
Agrolink(RS/60kg)
Brazil - Beans Price Camill - Gross Price
46. 46
Brazil Food Segment | Sugar
Sales volume : 134.7 thousand tons
• +1.8% QoQ
• +1.8% YoY
Average raw material price : R$64.27/saca¹
• +17.5% QoQ
• +12.8% YoY
Gross price Camil: R$2.09/kg
• -0.9% QoQ
• +0.1% YoY
Sequential and annual volume growth
Cristal sugar and value pricing brands volume growth
Source: Company Source: Esalq-Senar; Company
Sequential and annual volume growth
Sugar - Camil’s Volume and Net Prices Sugar - Market Prices vs. Camil’s Gross Prices
Sugar – Product PortfolioSugar – Quarterly Highlights
Source: Company
¹Source: CEPEA; Cristal Sugar indicator Esalq-SP 50kg.
MainstreamValuePricing
Brands
47. Sales volume: 10.1 thousand tons
• +24.7% QoQ
• -7.3% YoY
Gross price Camil: R$20.04/kg
• -0.7% QoQ
• +5.6% YoY
Coqueiro sardines and tuna sales growth
Sequential seasonal sales growth in the period before lent
Brazilian coast continues to present low fishing volume
47
Brazil Food Segment | Canned Fish
Source: Company Source: Company
Sequential volume growth
Canned Fish - Camil’s Volume and Net Prices Canned Fish - Camil’s Gross Prices
Canned Fish – Product PortfolioCanned Fish – Quarterly Highlights
Source: Company
MainstreamValuePricing
Brands
48. 48
International Food Segment
Chile
Uruguay
Domestic
Market
Domestic
Market
Export Market
Peru
Sales volume: 136.5 thousand tons
• +31.2% QoQ
• +3.3% YoY
Gross price in R$: 2.12
• +5.7% QoQ
• +24.2% YoY
Source: Company
Source: Company
International Operational Performance – Quarterly Evolution (‘000 ton)
International – Breakdown 3Q18 (%)
Sequential and annual volume growth
International - Main Considerations
Gross price in US$/ton:
• +4.6% QoQ
• +2.5% YoY
Sales volume: 20.4 mil tons
+2.6% QoQ
+5.6% YoY
Gross price in R$: 5.62
• -5.1% QoQ
• +10.8% YoY
Gross Price in CLP/ton:
• -1.5% QoQ
• -1.5% YoY
Sales volume: 22.2 mil tons
+6.4% QoQ
-13.9% YoY
Gross price in R$: 4.81
• +3.0% QoQ
• +22.3% YoY
Gross price in SOL/ton:
• +4.0% QoQ
• -3.8% YoY
Volume Net Revenue
Sales recovery
Profitability
growth
Political
instability Uruguai
60%
Chile
20%
Peru
20%
Uruguai
76%
Chile
12%
Peru
12%
49. 49
3Q18 Financial Highlights
SG&A Other operating Revenues(Expenses)
R$231.1 million (+22.8% YoY)
18.2% of the Net Revenue
Growth in SG&A Brazil (+22.0% YoY) with increase
in freight expenses and exports;
Increase in international SG&A (+24.6% YoY) due
to Exchange rate depreciation;
SG&A as a % of Net Revenue decreased in -1,6pp
vs. 2Q18, due to the Company´s cost reduction
actions.
R$38.8 million in other revenues and earnings from
controlled subsidiary. R$36.0mm non-recurring revenues:
+R$84.5mm in IRPJ e CSLL tax credits over ICMS
subsidy with 5 year retroactive effect;
+R$38.1mm in PIS/COFINS credits with exclusion of
ICMS from the assessment bases;
-R$42.5mm due to the adhesion to Rural Tax
Regularization Program (Funrural);
-R$44.1mm in provision for losses of São Gonçalo (RJ)
industrial unit
SG&A and other expenses as a % of Net
Revenues
3Q17 3Q18 3Q18 vs 3Q17 3Q18 3Q18 vs 3Q17 3Q18 3Q18 vs
Closing Date 30-Nov-18 31-nov-18 3Q17 30-Nov-18 31-nov-18 3Q17 30-Nov-18 31-nov-18 3Q17
Net Revenues 818.9 857.5 4.7% 340.2 409.3 20.3% 1,159.2 1,266.8 9.3%
(-) SG&A Expenses (626.3) (648.0) 3.5% (246.9) (298.9) 21.1% (873.2) (946.9) 8.4%
Gross Profit 192.6 209.5 8.8% 93.3 110.4 18.3% 285.9 319.9 11.9%
(-) SG&A (128.0) (156.2) 22.0% (60.1) (74.9) 24.6% (188.1) (231.1) 22.8%
(+/-) Other operating income
(expenses) and Equity
(Earnings)/Losses in Uncons.
8.2 39.3 n.a. (0.4) (0.4) n.a. 7.8 38.9 n.a.
EBIT 72.8 92.6 27.1% 32.8 35.1 6.9% 105.7 127.7 20.9%
(+/-) Finacial Result (8.0) 22.7 n.a. (4.5) (3.9) -14.1% (12.6) 18.8 n.a.
Pre-Tax Income 64.8 115.3 77.9% 28.3 31.2 10.3% 93.1 146.5 57.3%
Total Income Taxes (16.3) 8.0 -149.1% (4.9) (4.2) -14.2% (21.2) 3.8 -117.9%
Net Income 48.5 123.3 154.1% 23.4 27.0 15.4% 71.9 150.3 109.0%
EBITDA 85.8 108.2 26.1% 43.1 43.2 0.3% 128.9 151.4 17.5%
Margins
Gross Margin 23.5% 24.4% 0.9pp 27.4% 27.0% -0.5pp 24.7% 25.3% 0.6pp
EBITDA Margin 10.5% 12.6% 2.1pp 12.7% 10.6% -2.1pp 11.1% 12.0% 0.8pp
Net Margin 5.9% 14.4% 8.5pp 6.9% 6.6% -0.3pp 6.2% 11.9% 5.7pp
ConsolidatedFood Products International
Result Statements
Food Products Brasil
50. 50
Profitability Evolution: Net Income, EBITDA and Margins
Quarterly Profitability Evolution (in R$mn)
Quarterly Margin Evolution (%)
Source: Company
Source: Company
3Q18 remarked by margins expansions YoY:
Gross margin (25.3%, +0.6pp YoY), EBITDA margin (12.0%, +0.8pp YoY); and net margin (11.9%, +5.7pp YoY)
51. Net Financial Expenses of +R$18.8 million
(vs. -R$12.6mn YoY)
R$41.5mm non-recurring revenues in monetary restatements
from tax credits from IRPJ and CSLL of ICMS subsidy recognition
and PIS and COFINS credits generated by the exclusion of ICMS
from assessment bases;
Compensated by R$19.4mm in expenses with interest over
loans and financing.
51
3Q18 Financial Result and Debt
Source: Company
Net Financial Result
Liability Management: Debt cost reduction
Debt (R$mn)
Source: Company
Debt Amortization Schedule (R$mn)
Debt (in R$mn) 3Q17 2Q18 3Q18 3Q18 vs 3Q18 vs
Closing Date 30-nov-17 31-ago-18 31-nov-18 3Q17 2Q18
Total Debt 1,170.0 1,491.2 1,386.0 18.5% -7.1%
Loans and financing 360.1 512.8 404.3 12.3% -21.2%
Debentures 809.9 978.4 981.7 21.2% 0.3%
Short Term 179.3 362.2 275.9 53.9% -23.8%
Long Term 990.7 1,129.0 1,110.1 12.1% -1.7%
Currency breakdown
R$ 766.9 1,131.6 1,026.4 33.8% -9.3%
USD 216.0 216.8 216.8 0.4% 0.0%
CLP 57.6 42.1 42.1 -26.9% 0.0%
PEN 129.5 100.7 100.7 -22.2% 0.0%
Leverage
Gross Debt 1,170.0 1,491.2 1,386.0 18.5% -7.1%
Cash and Cash Equivalents +
financial applications
426.5 666.1 461.4 8.2% -30.7%
Net Debt 743.5 825.1 924.6 24.4% 12.1%
Net Debt/EBITDA LTM 1.6x 1.9x 1.9x 0.3x 0.0x
362.2
513.4
416.0
190.1
9.5
275.9
458.0 462.2
182.4
7.5
R$0
R$100
R$200
R$300
R$400
R$500
R$600
2019 2020 2021 2022 After 2022
ago-18 nov-18
52. 52
Notes:
(1) Financial covenant of 3.5x Net Debt / EBITDA LTM
Stable outlook by S&P mainly backed by better expectations on enhanced credit metrics, leverage reduction and stable margins, all
supported by solid financial policies
We expect that Brazil-based food processor Camil will post stronger
credit metrics and improved liquidity following its recent IPO and
sustain EBITDA margins consistently around 10%. (…)
The ratings affirmation reflects our expectation that Camil will reduce debt
and sustain improved liquidity following the company's IPO, where it raised
R$357 million in the primary offering.
Camil's liquidity is also supported by its well-established relationships with
banks, its transparency levels, and its ability to raise funds through credit
and capital markets, as evidenced by its recent IPO, CRAs, and bank
refinancing.
Standard & Poor’s, November 1st, 2017
Constant monitoring of the company’s liquidity
situation by the implementation of a minimum cash
position policy
P Maximum indebtedness defined by financial covenant
of 3.5x Net Debt / EBITDA LTM1
P
1
Investment Grade Indebtedness Profile
Main Financial Policies and Indebtedness Evolution (R$ mm, except otherwise indicated)
Camil Alimentos Credit Rating by S&P S&P Recent Quotes on Camil Alimentos
468
616
793
625
764
915 913 893 923 959
1.068
899
986
1.149
1.330
998 1.003
1.260
1.170
1.014 1.074
1.215
744
571 604
829
925
2,0
2,4
2,7
2,0
2,2
2,5 2,5 2,4 2,5 2,6
2,8
2,5
2,7
3,1
3,4
2,4 2,2 2,4
2,1
1,9 2,0
2,5
1,6
1,2 1,4
1,8 1,9
3,5
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Net Debt Net Debt / EBITDA LTM Covenant
53. Period 2013 2014 2015 2016 2017 LTM 3T18
Funds from Operations 381.0 388.8 488.5 579.6 529.9 603.2
(+/-) Change in Working Capital (291.4) 59.8 (150.2) (285.3) (41.9) (395.3)
Operating Cash Flow 89.6 448.7 338.3 294.3 488.0 207.9
(+) Asset Disposal 17.2 6.3 8.5 9.6 8.1 8.0
(-) Total Capex (231.3) (210.1) (209.8) (88.9) (104.5) (165.0)
Additions to Intagible Assets (1.1) (1.1) (3.1) (2.5) (4.8) 0.3
Additions to Investments (121.8) (142.5) (125.1) (15.4) - (36.5)
Capital Expenditures (108.6) (70.1) (81.6) (71.0) (99.7) (78.8)
Cash from AcTuisitions 0.3 3.6 - - - (50.0)
Free Cash Flow (124.4) 244.8 137.0 215.0 391.6 50.8
FCF as % of EBITDA (33.2)% 67.8% 32.4% 39.3% 80.0% (5.7)%
53
Notes:
(1) Accounts for pre-tax income, net result of unconsolidated subsidiaries, accrued financial charges, allowance for doubtful accounts, provisions, D&A, write-offs and other non-cash charges
(2) Excluding cash flow from change in short-term investments
1
2
Breakdown of FCF Generation – In R$ mm
1
1
2
3
Strong operating cash flow generation mainly as a result of relevant top-line growth and stable margins
FCF generation also impacted by the historical capex spent in M&A
Solid historical EBITDA conversion into FCF
Main considerations
2
3
Solid Cash Flow Generation Supported by Strong
Operating Results
Solid EBITDA conversion into Free Cash Flow
56. 135.0
77.7
69.2 65.1
39.9
12.4 12.0 8.6
Notes:
(1) FAO / Estimated paddy production for 2017
(2) Rice husk represents ~32% of the grain’s total weight
Resilient Demand and Favorable Market Dynamics
Rice Industry | Brazil
Ton mm
World’s 9th largest rice producer
China India Indonesia Peru Uruguay
9º
Brazil
kg/year
Indonesia China India Peru Brazil USA Chile Uruguay
Ton mm
Rice is highly penetrated in Brazil, being part of the country’s
cultural identity
56
Consumption Historically Stable
Production Historically Stable
Colombia
Ton mm
Largest Producers in the World1 National Production
Per capita Consumption by Country1 National Consumption of Paddy2
210.3
166.5
73.9
12.3
3 2.7 1.4
11.6 11.8 12.1 12.4
10.6
12.3 12.1
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
11.7
12.6
12.0 11.5 11.4
12.0 12.0
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
The rice industry in Brazil is characterized by a combination of (i) resilient demand based on cultural identity and (ii) high and stable
production levels
57. Chile - Total Consumption (‘000 tons)
Uruguay – Total Consumption3 (‘000 tons)
57
Growth Potential:
migration to packaged ricePCAGR13-17 : 1.6%
CAGR13-17 : 4.6%
CAGR13-17: 0.4%
Broad marketP
Resilient marketP
Export marketP
Domestic
Market
Domestic
Market
Export Market
Source: Company filings, Kantar WorldPanel; AC Nielsen; MINAGRI; Odepa; Annual rice harvest report (Uruguai); Asociación Cultivadores de Arroz; Ministerio da Agricultura (Brazil)
Note: (1) Considers the sum of imports and total production; (2) Considers production data
Peru – Total Consumption1 (‘000 tons)
Resilient Demand and Favorable Market Dynamics (Cont’d)
Rice Industry | Peru, Chile and Uruguay
1,273 1,095
1,390 1,359 1,287
79
79
79 79 86
1,352
1,174
1,469 1,438 1,373
2013 2014 2015 2016 2017
Exports Total Consumption
2
3,189 3,054
3,306 3,482 3,402
2013 2014 2015 2016 2017
161 156
204 196 193
2013 2014 2015 2016 2017
Peru, Chile e Uruguay present: (i) resilient market e (ii) potential to consolidate
58. 0.9 0.9
1.0
1.1
0.9
1.1
1.0
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
58
1
CAGR11/12-17/18E: 1.4%
Ton mm Ton/hectare
3 annual crops in Brazil and only 1 in other producing countries
Price volatility due to beans perishability
R$/60 Kg sack Ton mm
Consumption Historically Stable
Production Historically Stable
Resilient Demand and Favorable Market Dynamics (Cont’d)
Beans Industry | Brazil
National Production Average Productivity
Historical Price National Consumption
2.9 2.8
3.5
3.2
2.5
3.4
3.1
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
3.5 3.3 3.4 3.4
2.8
3.3 3.3
11/12 12/13 13/14 14/15 15/16 16/17 17/18E
0
100
200
300
400
500
Aug-12
Nov-12
Feb-13
May-13
Aug-13
Nov-13
Feb-14
May-14
Aug-14
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Feb-16
May-16
Aug-16
Nov-16
Feb-17
May-17
Aug-17
Nov-17
Feb-18
May-18
Aug-18
With stable production levels, the beans market in Brazil is also characterized by a combination of: (i) resilient demand based on cultural
identity and (ii) supply stability
Notes:
(1) CONAB; Agrolink; 15/16 crop registered significant drop in productivity due to rainfall scarcity during the period
59. 58 57 57
54
50
40 39 39 37
21
Cuba Australia Brazil Guatemala European
Union
South
Africa
Mexico Colombia Thailand Global
Median
11.2 11.3 11.4
10.9 10.9 11.0
12/13 13/14 14/15 15/16 16/17 17/18E
Notes:
(1) USDA; CONAB; ISO/ Larges producers data refers to 2016 and per capita consumptions refers to average between 2013 and 2015
(2) Considers consumption of industrialized products 59
CAGR15/16-17/18E: 6.8%
kg/year Ton mm
Ton mm Ton mm
Largest producer in the world
1º
Brazil is one of the largest sugar consumers in the world
Production Historically Stable
Consumption Historically Stable
Resilient Demand and Favorable Market Dynamics (Cont’d)
Sugar Industry | Brazil
Largest Producers in the World1 National Production
Per Capita Consumption1 National Consumption2
38.2 37.6
35.6
33.8
38.7 38.6
12/13 13/14 14/15 15/16 16/17 17/18E
39.0
24.8
15.5
10.0 9.3 7.8 6.1 5.8 5.6 4.6
Brazil India European
Union
China Thailand United
States
Mexico Russia Pakistan Australia
Brazil has a leading position in sugar production and consumption, presenting: (i) resilient demand and (ii) supply stability
60. (2.7)%
(0.7)%
1.7%
2.4%
392
474 483 507 485
2013 2014 2015 2016 2017
1,745
1,893 1,933 1,967 2,020
2013 2014 2015 2016 2017E
Notes:
(1) IBGE; ABPA; ABIEC; FAO; Euromonitor/ In 2017
(2) 2013 data 60
65.5
37.9
33.5
25.5 22.0 21.5 20.8
13.2 9.7 7.5
19.7
Hong
Kong
China France Italy Peru United
States
United
Kingdom
Chile Brazil Uruguay Global
Median
CAGR 13-17 (%)
kg/year Ton ‘000
Wide space to increase penetration Strong growth in the last years
Resilient Demand and Favorable Market Dynamics (Cont’d)
Fish Industry | Brazil
National Production Per Capita Protein Consumption Growth
Ton ‘000
Beef
Pork
Poultry
Fish
The fish industry in Brazil is consistently growing, driven by the trend of the diversification of protein sources and increase in the
consumption of food with higher nutritional value
Per Capita Consumption2 National Sales
