2. 22
This presentation contains forward-looking statements relating to the prospects of the business,
estimates for operating and financial results, and those related to growth prospects of Vigor
Alimentos. These are merely projections and, as such, are based exclusively on the expectations of
Vigor’s management concerning the future of the business and its continued access to capital to
fund the Company’s business plan. Such forward-looking statements depend, substantially, on
changes in market conditions, government regulations, competitive pressures, the performance of
the Brazilian economy and the industry, among other factors and risks disclosed in Vigor’s filed
disclosure documents and are, therefore, subject to change without prior notice.
Disclaimer
6. 66
Resilient market with strong growth potential
Over 50% of total distribution through independent retailers
Vigor: strengths and competitive advantages
Brands with excellent reputation and high expansion potential
Experienced and independent management team, with solid corporate governance
standards
Diversified portfolio with high value-added products
7. 77
Diversified portfolio with high value-added products
Note: 1. Dairy (yogurt, fermented milk, desserts and petit suisse, “requeijão” cheese spread,
parmesan, special cheese, “minas” cheese, cream cheese, fondue and creams) / 2. Spreads
(margarines, blend, butter, fats and mayonnaise) / 3. Milk: UHT milk and pasteurized / 4. Others
(pastas, sauces, juices, chocolate milk and others).
Dairy1
Higher margins
(%)
Leading brands
in categories
Focus in
innovation and
product
launching
Spreads2
High household
penetration level
Helps diversify
the cost matrix
Possible to add
“brand” equity
UHT Milk3
Low volume
Specific channels
Margin under
strict discipline
Others4
Juices, sauces,
chocolate milk
and others
Total: R$ 978.7 million
Net Revenue – 9M12
8. 88
Consumer Food Service
Reference brands in the Consumer and Food Service segments
A / B / C
National Brand
Yogurt / Cheese
spread
B / C
Regional Brand
UHT milk
Butter
Chocolate milk
A / B
National Brand
Parmesan
cheese
A / B
National Brand
Cheese /
Dessert
A / B
National Brand
Special cheese
Non-sweet
products
Business to BusinessSegmentation
Main products
Pastry and basic
ingredients
10. 1010
Q3’12 Results Highlights
Volume of 92,4 thousand tons – (3,2%) vs. Q3’11
Volume w/oUHT Milk 2,0% higher in the quarter
Net Revenue of R$ 340,3 million, 4,9% higher than that of the Q3’11
Net Revenue w/oUHT Milk 8,1% higher than that of the Q3’11
Gross Profit of R$ 99,0 million, 29,7% higher vs. Q3’11
Gross Margin of 29,1%, 5,6 p.p. higher than the Q3’11 margins
Lower leverage with pre-payment of the Notes e decrease in the avg. cost of debt
- Notes rate: USD+10,3% / Avg. cost of debt 8,7% (Q3’12)
- Net Debt of R$ 31,9 million, equivalent to 0,44x LTM EBITDA
EBITDA of R$ 9,7 million, 22,7% above that of the Q3’11
(0,2)%
8,8%
7,5%
12,0%
24,5%
3.9 p.p.
n/a
108,9%
Quarterly Analysis 9M12
13. 1313
Net Revenues Breakdown
Net Revenues Breakdown per Segment
(In %)
Net Revenues Breadown per Category
(In %)
21.2%
Food Service segment
growth 21.7%
18. 1818
What we have done, and our next steps
Initiatives already implemented Next Steps
Strengthening of key brands
Actions taken
Growth of distribution network
Excellence in Management and Corporate Governance
State of art in Production processes
• Review of our go-to-market model
• Merchandising with dedicated team
• Meritocracy in management, with systematic KPI’s tracking
• Majority of Board of Directors members are independent
• People and Finance, Risks and Auditing committees
• Product-specific plants
• Capex in high potential growth categories
• Milk producers loyalty program
• Innovation and new product launching
• New media campaign
• New marketing communication aligned with new product positioning and pricing
• Phase out of non-core produtcts
• Beginning October 2012
• New management of
trade marketing team
• Hiring of experienced
managers
• Board oversight
• Capex of R$ 38.0 million
in product line expansion
• Pay-for-quality program
for milk producers
• Greek yogurt
• Campaign “recall” SP/RJ
• Increase in avg. price
• Decrease fresh pasta
• Continue expanding
geographic reach to
other regions
• Keep investing in our
people’s development
• Quality Certification
guaranteed in every
factory
• Higher productivity
• Launching of
“funcionais” yogurts
• Constant innovation in
our portfolio
19. 1919
Our Vision
Big food Company, one of the biggest dairy companies in Brazil
Categories and Segments
• Development of innovation according to seasonal waves
• Further development of Food Service segment
Geographic expansion
• Improve our presence in markets close to core market (SP)
• Lower the company’s dependence of São Paulo market
Investment Plan • Increase in productive capacity, with continuous investments in key
product lines
EBITDA Margin • Continuously increase in margins to surpass historic levels
Capital Structure
• Increase stock liquidity
• Reduction of cost of capital
• Return on Invested Capital to shareholders Policy