Financial Community Presentation. August 29, 2008

Transcription

1 Financial Community Presentation August 29, 2008

2 Imortant information IH 2008 This resentation has been reared by the Comany only for illustrative uroses for use in communicating with the financial community. Readers are advised to refer to the ress release issued by the Comany on August 28, 2008, which contains the secific accounts and related matters aroved by the Comany s Board of Directors. Please note that this resentation includes IH 2008 and IH 2007 figures subject to external auditor limited review No reliance should be laced for any uroses whatsoever on the information contained in this resentation or on any other materials that may be discussed at the resentation, or on its comleteness, accuracy, or fairness of any information contained in this resentation or of any other materials discussed at the resentation. Although care has been taken to ensure that the facts stated in this resentation are accurate, and that the oinions exressed are fair and reasonable, no reresentation or warranty, exress or imlied, is made or given by, or on behalf of, the Comany or any of its resective members, directors, officers, emloyees, advisors, or any other erson as to the accuracy, comleteness or fairness of the information or oinions contained in this resentation or any other material discussed at the resentation. None of the Comany or any of its resective members, directors, officers, emloyees, advisors nor any other erson accets any liability whatsoever for any loss howsoever arising from any use of this resentation or any other materials discussed at the resentation or otherwise arising in connection therewith. The oinions exressed in the resentation may be those of the resenter(s) and may not be formally endorsed by the Comany or its Board of Directors The information in this document may include forward-looking statements which are based on current exectations and rojections about future events. These forward-looking statements, as well as those included in any other material discussed at the resentation, are subject to risks, uncertainties and assumtions about the Comany and its subsidiaries and investments, including, among other things, the develoment of its business, trends of its oerating industry, and future caital exenditures and acquisitions. In light of these risks, uncertainties and assumtions, the events in the forward-looking statements may not occur. No one undertakes to ublicly udate or revise any forward-looking statement The information and oinions contained in this resentation are based on historical information. Facts and exectations about the Comany and its financial condition are subject to change and Parmalat disclaims any obligation to udate the facts reflected and the statements contained herein either at the resentation or after the resentation By attending the resentation you agree to be bound by the foregoing limitations Figures are in millions unless different stated. Totals may not add due to rounding and % are calculated on units 2

3 IH 2008: main achievements and key figures 1. Parmalat: oerations 2. IH 2008 Grou financials 3. Legal 4. Cororate events 5.

4 Main achievements IH 2008 Reaointment of the Board of Directors and CEO Oerations Launch of new roducts; imrovement in roduct mix Research and Develoment Financial Imrovement in net financial osition Cash flow from oerations Portfolio management Disosal of Newlat Legal Settlements: Credit Suisse, UBS, Banca Italease, Monte Paschi di Siena, UniCredit Grou Settlement with Class Beginning of trial with Citigrou 4

5 IH 2008 key consolidated figures + 9.1% constant fx REVENUES 1,902.4 m (growth % vs 2007) REPORTED NET FINANCIAL POSITION (901.0) m UniCredit Grou Settlement (August 2008) (229.7) m Pro-forma Net Financial Position: (1,130.7) m -10.4% constant fx EBITDA (1) m Margin 7.4 % (-13.6 % vs 2007) CASH FLOW FROM OPERATIONS 14.9 m Including 124 m milk cost increase (1) The oerating margin does not include restructuring costs and legal fees for revocatory and damages actions 5

6 Share caital ( m) Extr. Gen. Meeting Setember 19, 2005 Extr. Gen. Meeting Aril 29, 2007 Udate as of July 11, 2008 Aroved Aroved Issued Share Caital 1, , ,651.4 Warrant Total 2, , ,667.6 (1) (1) Of which arox million shares at ar value (1 Euro) registered in the name of the Foundation, of which: 15.4 million shares or 0.9% of share caital which ertain to currently undisclosed creditors 120,000 shares reresenting the initial share caital of Parmalat S..A. 6

8 Parmalat Other cost increase Factor Parmalat Grou IH m Δ vs 07 m Δ vs 07 % Raw Material (Milk and Other Ingredients) 1, % Packaging % Exogenous Energy % Warehouse % Distribution & Transort % Total 1, % Direct Labour % Endogenous Fixed Cost (Industrial+General) % Marketing and Sales Costs % Total % Management information. Variances include exchange rate and erimeter effect 8

9 Parmalat Raw milk rice increase m (1) Price Increase by Unit% Italy % Other Euroe 8 Canada 8 + 2% m Price Increase by Unit% 124 Venezuela % Central/South America 21 Colombia % Others 1 nm Australia % South Africa % Others 1 nm (1) Figures reresent the raw milk cost increase due to rice effect 9

10 Key targets m FY 2006 Restated FY 2007 New Guidance Net Revenues Growth % 3, , % 3% EBITDA Pre-Receiv. Write-off YoY Growth % Margin % % % 9.8% - 5 % EBITDA YoY Growth % Margin % % % 9.5% ~ 350 Caex % on Revenues % % ~120 10

12 Revenues and EBITDA analysis Revenues IH 2008 vs IH 2007 ( m) % (101) (72) (72) Net Revenues 2007 Price Discounts/Returns Volume Mix Perimeter Net Revenues 2008 FX Net Revenues 2008 EBITDA IH 2008 vs IH 2007 ( m) 204,0 Raw Material (1) (158.5) Others (37.7) Total (196.2) 15,9 0,4 (196.2) (19.4) 163,2 (17.8) (3.8) 146,3 (5.2) 141,1 EBITDA 2007 Price/Discount Variable Cost Volume Mix Perimeter Fixed and General Costs "Oerations" Cororate OH & Receivables Write off EBITDA 2008 FX EBITDA 2008 (1) The data include urchases changes of raw milk for about 124 m and of fruit and other ingredients for the remaining amount 12

13 Parmalat Grou: revenues and volume breakdown by division IH 2007 IH 2008 Delta m Volume (liter/kg.) Revenues Volume (liter/kg.) Revenues Volume (liter/kg.) Revenues Milk 1, , , , % 4.9% Milk Derivates % 4.3% Fruit Based Drinks % 6.4% (1) Other % 22.2% Grou 1, , , , % 5.1% (1) Includes eliminations and other minor comanies 13

14 Parmalat Grou: revenues and volume breakdown by geograhy m Volume (liter/kg.) IH 2007 IH 2008 Delta Revenues Volume (liter/kg.) Revenues Volume (liter/kg.) Revenues North America % 2.0% Central/South America % 12.7% Euroe (excl. Italy) % 13.0% Italy % 7.3% Africa % -4.9% Australia % 6.6% (1) Other nm nm Grou 1, , , , % 5.1% (1) Includes eliminations and other minor comanies 14

15 Parmalat Grou: EBITDA breakdown by division IH 2007 IH 2008 Delta m EBITDA % on Revenues EBITDA % on Revenues EBITDA % on Revenues t Milk % % -9.7% -1.1 Milk Derivates % % -8.2% -1.2 Fruit Based Drinks % % 0.5% -1.1 (1) Other % % 323.9% Grou % % -13.6% -1.6 (1) Includes Holding, other roduct and writedown of account receivables and other rovisions 15

16 Parmalat Grou: EBITDA breakdown by geograhy m EBITDA IH 2007 IH 2008 Delta % on Revenues EBITDA % on Revenues EBITDA % on Revenues t North America % % -0.8% -0.2 Central/South America % % 34.0% 1.6 Euroe (excl. Italy) % % -0.9% -1.9 Italy % % 0.1% -0.7 Africa % % -52.5% -5.3 Australia % % -75.1% -5.4 (1) Other -9.5 nm nm nm nm Grou % % -13.6% -1.6 (1) Includes Holding, eliminations and other minor comanies 16

17 Caex and advertising, romo consumer & other costs CAPEX (1) Advert., Promo Consumer & Other Costs m IH 2007 IH 2008 Δ% m IH 2007 IH 2008 Δ% Euroe % North America % Central/South America % Africa and Australia % Other nm Grou % Euroe % North America % Central/South America % Africa and Australia % Other nm Grou % (1) Caex excluding land and buildings 17

18 Country analysis Parmalat Italy IH 2008 Revenues IH 2008 EBITDA 9% 2% m Milk % Growth in value added roducts Cost efficiency Milk Derivates % Fruit Based Drinks 8.0 Milk Fruit Based Drinks Milk Derivates Other Other -0.1 Italia IH 2007 IH 2008 m Revenues EBITDA EBITDA % Revenues EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other % % Total (1) % % (1) Icludes Newlat 18

19 Country analysis Parmalat Canada IH 2008 Revenues 2% 0% 42% 56% Cost efficiency Launch of yogurt in Québec m Milk Milk Derivates Fruit Based Drinks IH 2008 EBITDA Milk Fruit Based Drinks Milk Derivates Other Other 3.1 Canada IH 2007 IH 2008 m Revenues EBITDA EBITDA % Revenues EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other % % Total % % 19

20 Country analysis Parmalat Australia IH 2008 Revenues IH 2008 EBITDA 17% 2% 1% High raw milk rice m Milk % Strong cometition from rivate label Milk Derivates Fruit Based Drinks Milk Fruit Based Drinks Milk Derivates Other Other 0.2 Australia IH 2007 IH 2008 m Revenues EBITDA EBITDA % Revenues EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other % nm Total % % 20

21 Country analysis Parmalat Africa IH 2008 Revenues IH 2008 EBITDA 8% 0% Strong Inflation m Milk % 39% Volume loss Negative exchange rate imact Milk Derivates Fruit Based Drinks Milk Fruit Based Drinks Milk Derivates Other Other -0.1 Africa IH 2007 IH 2008 m Revenues EBITDA EBITDA % Revenues EBITDA EBITDA % Milk % % Milk Derivates % % Fruit Based Drinks % % Other nm % Total % % 21

22 Key IH 2008 earnings figures (IFRS/IAS GAAP) m Revenues Growth EBITDA Margin Other gains/(losses) Dereciation and amortization IH , % % (45.3) IH , % % (119.0) IH 2008 Other gains/(losses) mainly include: Proceeds from revocatory and damage actions: m Legal fees: 27.1 m FY 2007 Taxes include: Net oerating result (EBIT) Margin Net financial income/(charges) and other Taxes Result of activities to be sold Result of the eriod Margin Minority interest (rofit)/loss Result for the eriod (of the Grou) % 7.9 (74.7) % (0.8) % 11.3 (27.4) % (1.9) Current taxes: - Italy 23.9 m - Other countries 23.5 m Deferred taxes: - Italy (20.4) m - Other countries 0.4 m 22

23 Key IH 2008 balance sheet items (IFRS/IAS GAAP) m 31 Dec June 2008 Fixed assets 1, ,799.3 Intangible assets 1, ,097.4 Tangible assets Financial assets and reaid taxes Net working caital Oerating working caital Other assets/liabilities Discontinuing oerations Emloyee severance indemnity liabilities Provisions Net invested caital 1, ,903.2 m 31 Dec June 2008 Shareholders equity 2, ,804.2 Share caital 1, ,667.5 Contested liabilit. and late creditors excl. convert. into share caital Other reserves and net result Minority interest Net financial debt (855.8) (901.0) Financial debt Cash & other financial assets (1,444.6) (1,415.8) Total sources of funds 1, , June 2008 Oerating working caital includes: Inventories: m Trade receivables: m Trade ayables: (492.2) m Other assets/liabilities include: Other current assets: m Other current liabilities: (178.9) m 30 June 2008 Provisions include: Deferred tax liabilities: m Provision for tax risk: m Provision for contingent liabilities/others: 11.5 m 30 June 2008 Other reserves and net result include: IH 2008 result: m Prior year results: m Other reserves: m 23

24 Control Chain Control chain restructuring in order to align consolidated and arent comany net result Dividend 2008: 46 m 171 (1) Starting from 2008 dividend flows from oerating comanies to Parmalat SA Imact on total dividends to shareholders (2) Delta Perimeter 31 Dec Dec Dec June Dec (1) Of which 70 oerative (2) Of which 37 oerative 24

25 Effective and normalized tax rate Dividend taxation Parmalat Grou: effective tax rate evolution FY 2007 Actual Forecast 2008 IH 2008 Actual FY 2008 Exected 18.4% Effective tax rate 5 % ~10/11% ~34/35% 34.8% Normalized effective tax rate 24.2% ~26/27% DIVIDEND TAXATION Any income from settlements is an item of P&L, so a art of net result of Parmalat SA Any dividend, as a art of net result, will be taxed at the shareholders level deending on their status and country 25

26 Cash flow from oerating activities (14.9 m) Cash flow from extraordinary transactions (36.7 m) Cash flow from litigation (409.1 m) Cash flow from tax m (28.8) (89.6) (83.0) (63.5) (62.7) (1) Includes tangible and intangible caex (2) Includes increased VAT receivables net of cash in of 8.1 m and Newlat closing for 8.0 m (262.1) (16.5) Net Cash at 31 Dec EBITDA Change in net working caital Caex (1) Disosals and other income Net debt for change in scoe of consolidation and other Settlements Legal fees for actions to void and actions for damages Taxes aid on settlements Taxes relating to oerating activities Net financial interests Dividends aid Exercise of warrants Change in other assets and liabilities (2) Cash at 30/06/08 net of forex imact Forex imact Net Cash at 30 June 2008 IH 2008 consolidated cash flow statement

28 MDL Multidistrict Litigation The Court was to hear two reliminary motions before addressing further issues Motions were: 1. Imact of Stoneridge on class case via-a-vis financial institutions (Parmalat not involved) In resonse to this motion, on August 7, 2008 the SDNY dismissed the class action claims against Bank of America, Citigrou and Pavia-Ansaldo 2. Grant Thornton vicarious liability (Parmalat) This motion is fully briefed but has not yet been decided All other motions and roceedings stayed until outcome of these two motions Trial likely to be delayed until second quarter of

29 MDL Multidistrict Litigation On August 20, 2008, the SDNY certified the class with resect to domestic urchasers of (old) Parmalat shares, excluding foreign urchasers of shares and all urchasers of debt, without rejudice of ending settlement 29

30 Citigrou On Aril 15, 2008, the Suerior Court of Bergen County, N.J., denied Citi s motion for summary judgment and ermitted Parmalat to roceed to trial. The judge also denied Parmalat s motion for summary judgment dismissing Citi s counterclaims Trial started on May 5 th, 2008, and is continuing On July 25 th, 2008, the judge denied Citi s motion for a directed verdict On July 31 st, 2008, trial was adjourned for summer recess Trial will resume on Setember 8 th,

31 Italian revocatory and damages actions Revocatory (1) Damages Actions Discovery exected to be closed by Estimates for decision Note: (1) Few actions still ending for nominal less than one billion euros 31

32 IH 2008: main achievements and key figures 1 Parmalat: oerations 2. IH 2008 Grou financials 3. Legal 4. Cororate events 5.

33 Calendar of events Board Meetings: Date Subject August 28, 2008 Aroval of the 2008 Interim Reort November 14, 2007 Aroval of the Reort for the Third Quarter 2008 Investor Relations contact: Cristina Girelli Tel

34 Q&A 34

35 Aendix Parmalat SA: IH 2008 Revenues/EBITDA 1. Parmalat SA: IH 2008 NFP 2. 35

36 Parmalat SA: IH 2008 and IH 2007 figures m PARMALAT SPA I H 2007 % I H 2008 % REVENUES m m EBITDA 34.9 m m 5.4 NET OPERATING RESULT m m 82.0 NET RESULT m m 97.6 OPERATIONS IH 2007 % IH 2008 % CORPORATE IH 2007 IH 2008 Revenues m m EBITDA 44.7 m m 9.0 Revenues 0.9 m 0.4 m EBITDA (9.8) m (16.3) m 36

37 437.9 (28.8) (89.6) (29.5) 1, (11.6) (21.3) (260.6) ,324.0 (18.5) Net Cash at 31 Dec EBITDA Change in net working caital Caex (1) Disosals and other income Stake acquisition and other Settlements Legal fees for actions to void and actions for damages Taxes aid on settlements Taxes relating to oerating activities Net financial interests Dividends aid Dividends received Exercise of warrants Change in other assets and liabilities (2) Net Cash at 30 June 2008 IH 2008 Parmalat SA cash flow statement Cash flow from oerating activities (34.9 m) Cash flow from extraordinary transactions 11.3 m Cash flow from litigation (409.1 m) Cash flow from tax (1) Including tangible and intangible caex (2) Includes increased VAT receivables net of cash in of 11.3 m and Newlat closing for 8.0 m