presentation 2013
TRANSCRIPT
2013 RESULTS: A RECORD YEAR
2
2013 highlights: a record year for Kepler Weber
o Net revenues: + 40.1% to R$ 594,8 million in 2013.
o Profit: Near doubling of operational profit (+99.7%) and Net Profit (+98.5%).
o EBITDA: R$ 98.3 million (+72.8%), with a margin of 16.5% of Net Revenues reaching best-in-class levels.
o Debt: the company’s net debt in 2013 was reduced by 109.7% in comparison with 2012. The debt/EBITDA ratio fell from 0.40x to -0.02x.
o CAPEX: R$ 28.1 million.
o Cash generation: R$ 66.3 million, +10%.
o The highest share price rise on BM&F Bovespa in 2013.
Excellent results that confirm our strategy. Excellent results that confirm our strategy.
3
4Q 2013 highlights
o Net revenues: R$ 179.5 million (+ 13.3%)
o Operational profit: R$ 23.7 million (+4.2%)
o Net profit: R$ 25 million (+25%)
Solid results even impacted by some non-recurring expenses. Solid results even impacted by some non-recurring expenses.
4
Kepler Weber’s turnaround is the result of a successful strategy
Investments in production capacity
Plant optimization
Geographic diversification of our clients
Expansion of our products and services portfolio
The company is well positioned to benefit from the positive momentum of Brazil’s agribusiness.
The company is well positioned to benefit from the positive momentum of Brazil’s agribusiness.
5
2013 Results
6
366.3
594.8
2010 2013
Net Revenues Debt and debt/EBITDA ratio
48.46
-2.19
2010 2013
+62.4 %
-104.52 %
EBITDA and margin
53.3
98.7
2010 2013
+84.4 %14,5%
16,5%
+200 bps
Dividend
A new chapter for the company marked by the improvement of our fundamentals since 2010 and a new dividend policy
A new chapter for the company marked by the improvement of our fundamentals since 2010 and a new dividend policy
0.00
0.90
2010 2013
R$
0.40x
-0.02x
R$ per share
R$ - Million x EBITDAR$ - Million
R$ - Million
-2.19
2013
48.46
2010
98.3
53.3
20132010
0,90
0,00
7
Net revenues boosted by favorable domestic market conditions and portfolio renewal strategy
Significant growth in storage and bulk handling segmentsSignificant growth in storage and bulk handling segments
NET REVENUES – R$ Thousand
Exports -17.9%Bulk Handling +71.7%
Parts and Services +11.9%
+170.3(40.1%)
Storage +59.0%
2013
594,762
22,874 (4%)
78,400 (13%)
39,515 (7%)
453,973(81%)
2012
424,441
20,447 (5%)
95,528 (23%)
23,018 (5%)
285,448(67%)
8
COTHERS
AB
KEPLER
2013
24%
3% 3%8%
62%
2012
22%
5%6%
13%
54%
Success rate increase reflects heightened client confidence in our products
Success rate
The company’s 2013 success rate increased by 8 percentage points in Brazil The company’s 2013 success rate increased by 8 percentage points in Brazil
99
+13,721(+27%)
64,40050,679
+17,126(+28%)
2013
77.400
2012
60.274
Production –Tons Output –Tons
Production and output increase boosted by strong growth in demand
Output favored by Brazil’s positive momentum in agribusinessOutput favored by Brazil’s positive momentum in agribusiness
387.0
DEC/12
179.6
DEC/13
+207.4(+115%)
Backlog – R$ million
2012 2013
10
96.039
+65,9(+69%)
2013
161,9
27%
2012
23%
GROSS PROFIT (R$ million) GROSS MARGIN (%)
2012
41.6%
2013
+3 points
38.5%
CONTRIBUTION MARGINNet Income (-) Variable Costs
Strong growth in gross profit
Gross profit increase boosted by gains in operational efficiencyGross profit increase boosted by gains in operational efficiency
96,0
11
98.662
56.899
+41,4(+72%)
2013
16.5%
2012
13.4%
EBITDA (R$ million)EBITDA MARGIN (%)
In 2013 we reached global best-in-class EBITDA margin
Higher profitability combined with better plant use and lower exposure to seasonalityHigher profitability combined with better plant use and lower exposure to seasonality
56,9
98,3
Net Results (BRL thousand) 2013 2012 Δ%Profit of the Period 62,098 31,281 +98.5%(+) Income Tax and Social Contribution Provision - Current and Deferred16,588 3,019 +449.5%(-) Financial Revenue (17,535) (18,782) -6.6%(+) Financial Expenses 22,968 26,612 -13.7%(+) Depreciation and Amortization 14,179 14,769 -4.0%EBITDA 98,298 56,899 +72.0
12
62.098
31.281
10.4%
+30,8(+99%)
20132012
7.4%
NET RESULTS IN THE PERIOD (R$ million)% OF NET INCOME
Investments in production and portfolio diversification doubled the company’s net profit
Profitability boosted by gains in productivity, higher volumes and lower seasonality
Profitability boosted by gains in productivity, higher volumes and lower seasonality
31,3
62,1
13
-2.193
(16.573)
(1.374)
22.582
2013
(2,2)
Cash availabilities
(6.828)
Long term
Short term
2012
Greater financial flexibility through the elimination of our debt Greater financial flexibility through the elimination of our debt
-110%
20132012
22,6
0.40x
0.02x
Net debt (R$ million) and debt/EBITDA ratio
Evolution of debt
-2,2
22,6
(1,4)
(16,6)
(6,8)
Strong reduction in indebtedness, notably long-term debt
The largest share price rise on BM&F Bovespa in 2013*
37.58%
Kepler Weber’s share price rose 236.1% in 2013Kepler Weber’s share price rose 236.1% in 2013
*-Source: Economática
15
Priorities to sustain growth in 2014
CAPEX increase from R$ 28.1 million in 2013 to R$ 65 million. • R$ 15 million to be allocated to increase the size of the silo factory and make it the most profitable plant
in the world
Productivity gains• R$ 30 million will be used to increase productivity and reduce break-even with higher mechanization and
process simplification
Evolution of our business model:• After-sales services• Innovation• Reduction of raw material costs
Increase in exports• Increase in sales teams outside South America
Consolidate presence in the bulk handling market• In line with Kepler Weber’s strategy to expand portfolio to new segments
Kepler Weber is well positioned to continue growing in 2014Kepler Weber is well positioned to continue growing in 2014
16
Appendix
1717
OWNERSHIP BREAKDOWN | STAKEHOLDERS
Banco ClássicoSul America Expertise FIA
5,22%
Banco do Brasil Investimentos17,54%
9,99%Fernando Francisco Brochado Heller
12,11%
Previ
17,56%
37,58%Other Minority
Ownership Breakdown
12/31/2013
Ownership Breakdown
12/31/2013
18
36,755
26,616
+10.1(+38%)
2013
6.2%
2012
6.3%
SALES EXPENSES (R$ million)% OF NET INCOME
38,703
29,161
2013
+9.5(+33%)
6.9%
2012
6.5%
ADMINISTRATIVE EXPENSES (R$ million)% OF NET INCOME
Commercial and administrative expenses
Expenses increased due to the company’s activity level plus other expenses with consulting on strategic projects aimed at improving performance and reducing
costs. Despite the growth, the figures show a reduction in expenses as a percentage of revenues.
26.6
36.7 38.7
29.2
19
2013
22,968
2012
26,612
-14% -7%
17,535
20132012
18,782
FINANCIAL EXPENSES FINANCIAL INCOME
Financial results
The decrease in financial expenses, mainly due to debt reduction, also led to a 31% reduction in net financial income.
-31%
7,830
2012 2013
5,433
NET FINANCIAL EXPENSES
Financial income (BRL thousand) 2013 2012 Δ%Financial Revenue 17,535 18,782 -6.6% Net Revenue % 2.9% 4.4% -1.5 p.p.
Financial expenses (22,968) (26,612) -13.7% Net Revenue % 3.9% 6.3% -2.4 p.p.
Total Financial Result (5,433) (7,830) -30.6%
20
18,989
17,947
2,437
15,7287,156
14,54429,21631,706
65,10262,098
Dividends / Interest on
equity capital
Suppliers increase
Stock increase
Debt reduction
Depreciation Other variables –
working capital
Balance Dec/13
124.7
Increase up front payment - Clients
Balance Dec/12
Client reduction
122.3
InvestmentsNet results 2013
Operating cash: R$ 63.7
Cash flow – R$ million
Operating cash flow totaled R$ 63.7 million in the period. The funds were used for investments (R$ 29.2 million), debt reduction (R$ 17.9 million) and the payment of dividends
and interest (R$ 18.9 million ), causing a reduction in the final balance of R$ 2.5 million.
62.114.5 65.1
7.215.7
31.7 2.4 29.2
17.9
19.0
21
INVENTORY TURNOVER
-21%
2013
50
2012
63
AVERAGE DELAY FOR RECEIVABLES
AVERAGE DELAY FOR PAYMENTS
OPERATIONAL CYCLE
-4%
2013
51
2012
53
FINANCIAL CYCLE
91
2012
72+26%
2013
+10%
2013
90
2012
82
+4%
2013
141
2012
135
Activity indicators
The increase in inventory turnover is related to the increase in volumes of raw materials needed to meet the backlog. The reduction in the average payment period and longer payment period neutralized the increase
in inventories causing a reduction in the financial cycle.
22
Results
CONSOLIDATED INCOME STATEMENT - ACCUMULATED FIGURES 2013Vertical Analysis
20132012
2012 Vertical Analysis
2013 vs 2012
Horizontal Analysis
(In thousand reais, except percentages)
NET OPERATING REVENUE 594,762 100.00% 424,441 100.00% 40.13%
COST OF GOODS SOLD (432,847) -72.78% (328,402) -77.37% 31.80%
GROSS INCOME 161,915 27.22% 96,039 22.63% 68.59%
Sale expenses (36,755) -6.18% (26,616) -6.27% 38.09% Miscellaneous and Administrative (38,703) -6.51% (29,161) -6.87% 32.72% Other operating Income 18,760 3.15% 13,384 3.15% 40.17% Other operating expenses (21,098) -3.55% (11,516) -2.71% 83.21%
OPERATING PROFIT 84,119 14.14% 42,130 9.93% 99.67%
Financial expenses (22,968) -3.86% (26,612) -6.27% -13.69% Financial Revenue 17,535 2.95% 18,782 4.43% -6.64%
RESULT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION ON NET INCOME 78,686 13.23% 34,300 8.08% 129.41%
Current Income Tax and Social Contribution (18,371) -3.09% (6,371) -1.50% 188.35% Deferred Income Tax and Social Contribution 1,783 0.30% 3,352 0.79% -46.81%
INCOME TAX AND SOCIAL CONTRIBUTION (16,588) -2.79% (3,019) -0.71% 449.45%
NET INCOME FOR THE YEAR 62,098 10.44% 31,281 7.37% 98.52%-
23
Balance sheet - Assets
CONSOLIDATED BALANCE SHEET 2013Vertical Analysis
2013 2012
2012 Vertical Analysis
2013 x 2012
Horizontal Analysis
ASSETS
Current 327,238 48.52% 261,648 44.51% 25.07% Cash and cash equivalents 10,746 1.59% 61,100 10.39% -82.41% Retained financial investments - 0.00% 9,605 1.63% -100.00% Bonds and securities 83,332 12.35% 30,848 5.25% 170.14% Trade accounts receivable 43,430 6.44% 50,586 8.60% -14.15% Inventories 150,413 22.31% 85,311 14.52% 76.31% Tax recoverable 13,345 1.98% 15,062 2.56% -11.40% Income tax and social contribution recoverable 5,316 0.79% 3,448 0.59% 54.18% Prepaid expenses 652 0.10% 430 0.07% 51.63% Advances to suppliers 15,458 2.29% 3,341 0.57% 362.68% Other credits 4,546 0.67% 1,917 0.33% 137.14%Non-current 347,123 51.48% 326,253 55.49% 6.40% Bonds and securities 23,921 3.55% 19,223 3.27% 24.44% Retained financial investments 4,284 0.64% 3,965 0.67% 8.05% Tax recoverable 2,355 0.35% 2,780 0.47% -15.29% Deposits in court 3,426 0.51% 2,797 0.48% 22.49% Deferred Taxes 75,585 11.21% 74,480 12.67% 1.48% Investments 3 0.00% 3 0.00% 0.00% Property for investments 126,31 1.87% 12,759 2.17% -1.00% Property, plant and equipment 209,168 31.02% 203,483 34.61% 2.79% Intangible Assets 15,750 2.34% 6,763 1.15% 132.88%TOTAL ASSETS 674,361 100.00% 587,901 100.00% 14.71%
(In thousand reais, except percentages)
24
Balance sheet - LiabilitiesCONSOLIDATED BALANCE SHEET 2013
Vertical Analysis
2013 2012
2012 Vertical Analysis
2013 x 2012 Horizontal Analysis
LIABILITIES AND SHAREHOLDERS' EQUITY
Current 181,847 26.98% 129,376 22.00% 40.56%
Suppliers 43,843 6.50% 28,115 4.79% 55.94% Loans 13,842 2.06% 12,880 2.19% 7.47% Salaries and vacation bonuses payable 20,471 3.04% 15,781 2.68% 29.72% Advances to customers 67,127 9.95% 35,421 6.02% 89.51% Tax payable 2,268 0.34% 2.822 0.48% -19.63% Income tax and social contribution payable 162 0.02% 552 0.09% -70.65% Commissions payable 5,887 0.87% 4,087 0.70% 44.04% Debentures 17,426 2.58% 19,762 3.36% -11.82% Financial Instruments - Derivatives 326 0.05% 8 0.00% 3975.00% Other accounts payable 10,495 1.56% 9,948 1.69% 5.50%Non-current 128,432 19.02% 137,552 23.40% -6.63% Loans 43,998 6.52% 44,204 7.52% -0.47% Debentures 40,540 6.01% 56,907 9.67% -28.76% Provisions 12,073 1.79% 4,925 0.84% 145.14% Deferred Taxes 19,892 2.93% 20,555 3.50% -3.23% Tax payable 6,826 1.00% 7,105 1.21% -3.93% Income tax and social contribution payable 5,103 0.76% 3,856 0.66% 32.34%Shareholders' Equity 364,082 54.00% 320,973 54.60% 13.43% Capital Stock 230,636 34.20% 230,636 39.23% 0.000% Capital reserve 3,977 0.59% 3,977 0.68% 0.00% Revaluation reserves 2,057 0.31% 2,106 0.36% -2.33% Asset valuation adjustment 54,737 8.12% 57,228 9.73% -4.35% Treasury Shares - 0.00% 1 0.00% -100.00% Surplus reserve 72,675 10.78% 27,025 4.60% 168.92%TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 674,361 100.00% 587,901 100.00% 14.71%
(In thousand reais, except percentages)
Olivier Michel Colas Felipe Fontes Vice-President Executive Officer IR Analyst
Tel.: +55 (11) 4873-0302E-mail: [email protected]
Website: www.kepler.com.br/ri
Investor Relations