2. 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. 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. 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.
6. 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 EBITDA
R$ - Million
R$ - Million
-2.19
2013
48.46
2010
98.3
53.3
20132010
0,90
0,00
7. 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%)
10. 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 MARGIN
Net 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. 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. 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
14. 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. 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
17. 1717
OWNERSHIP BREAKDOWN | STAKEHOLDERS
Banco Clássico
Sul 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. 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. 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. 20
18,989
17,947
2,437
15,728
7,156
14,544
29,21631,706
65,102
62,098
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.
62.1
14.5 65.1
7.2
15.7
31.7 2.4 29.2
17.9
19.0
21. 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. 22
Results
CONSOLIDATED INCOME STATEMENT - ACCUMULATED FIGURES 2013
Vertical
Analysis
2013
2012
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%-
