INVESTOR RELATIONS
MARFRIG GLOBAL FOODS S.A.
PUBLIC COMPANY
Taxpayer ID (CNPJ/MF): 03.853.896/0001-40
State Registry (NIRE): 35.216.957.541
NOTICE TO THE MARKET
MARFRIG GLOBAL FOODS S.A. (“Company” or “Marfrig”), pursuant to Article 157,
Paragraph 4 of Federal Law 6,404/76 and to Instruction 358/2002 issued by the Securities
and Exchange Commission of Brazil (CVM), in response to Official Letter 2290/2015-SAE
issued on July 3, 2015 by the São Paulo Stock Exchange BM&FBOVESPA – Bolsa de
Valores Mercadorias e Futuros S.A. (“BM&FBOVESPA”) (Appendix I), requesting
clarification on the contents of an article published on the same date in the newspaper Valor
Econômico entitled “Marfrig deixa diversificação de lado e volta a focar carne bovina”
(Marfrig leaves diversification behind to re-focus on beef), announces to its investors and the
market in general the following:
Said article states that, according to information from the Company, the divestment
of the Moy Park business unit would enable Marfrig to simultaneously (a) reduce its leverage
ratio; (b) save on interest expenses; and (c) accelerate previously postponed investments in
the United States and Asia.
The Company clarifies that said effects are effectively expected as a result of the
divestment of the Moy Park business unit, which was announced through a material fact
notice dated June 21, 2014 (“Transaction”). Certain parts of the material fact notice
expressly and literally address each of these expected effects, as shown by the excerpt
specifically addressing the reduction in the leverage ratio and the savings on interest
expenses:
“The Transaction significantly improves Marfrig's capital structure, accelerating the
expected reduction in its financial leverage and the associated interest expenses.”
In another excerpt from the material fact, the Company mentions the "Focus to Win"
strategy to highlight the growth opportunities and its priority of expanding its food service
business in the United States and Asia:
IR CONTACTS
Av. Chedid Jafet, 222 Bloco A - 5º andar - Vila Olímpia - São Paulo - SP – CEP: 04551-065
Tel: (11) 3792-8994
www.marfrig.com.br/ri
e-mail: [email protected]
INVESTOR RELATIONS
This Transaction provides Marfrig increased focus to seek growth opportunities in
its strategic plan "Focus to Win." Priority areas for Marfrig are: (i) the expansion of
the “food service” business at Keystone in Asia and the US; (ii) the increase of
beef exports from Brazil to Asia and the United States — which opening is
expected soon; and (iii) to strengthen the capital structure and improve free cash
flows.”
Reducing financial leverage, saving on interest expenses and focusing on the U.S.
and Asian markets were also mentioned and detailed in the conference call held on June
22, 2015, which was disclosed via the same material fact notice announcing the divestment
of the Moy Park business unit.
In addition to the conference call held and aligned with said material fact notice, the
Company made available a Presentation on the Transaction ("Presentation") on its investor
relations
website
(http://ri.marfrig.com.br/EN/Documentos/3744_Apresentacao_MoyPark_eng.pdf ).
The Presentation served as the basis and guide for the conference call, highlighting, among
other information:
“The use of proceeds from this transaction is to reduce leverage.” (Slide 4)
“The Transaction significantly improves Marfrig's capital structure, accelerating the
expected reduction in its financial leverage and the associated interest expenses.”
(Slide 5 and material fact)
“The resulting Marfrig becomes a company with a stronger focus in food service,
with greater flexibility to pursue existing opportunities in this market, mainly in the
United States and Asia.” (Slide 3)
“Keystone: focus on growth in Asia and USA” (Slide 5).
The leverage ratio after the consummation of the Transaction, which was estimated
in the article published by Valor Econômico at “around 3.5 times to 3.7 times,” was based
on publicly available data on: a) the current debt position of the Company, which was
reported in the notes to the financial statements; b) the total value of the Transaction, which
was set at approximately 1.5 billion U.S. dollars; c) the data on Slide 7 of the Presentation
on the Transaction, which shows that, assuming an exchange rate of BRL3.10/USD, the
debt of the Company would decline by approximately R$5 billion to reach net debt of
approximately R$5.7 billion; and d) the data given in the guidance, in particular free cash
IR CONTACTS
Av. Chedid Jafet, 222 Bloco A - 5º andar - Vila Olímpia - São Paulo - SP – CEP: 04551-065
Tel: (11) 3792-8994
www.marfrig.com.br/ri
e-mail: [email protected]
INVESTOR RELATIONS
flow generation for 2015, as announced in the material fact notice dated March 2, 2015.
Therefore, the leverage figures cited in the article do not constitute a new guidance.
The figure for the savings on interest expenses of approximately R$300 million cited
in the article also would have been based on public information on the total value of the
transaction of R$4.65 billion (exchange rate of BRL3.10/USD, based on Slide 7 of the
Presentation) and an average debt cost of 7.7%, according to the notes to the financial
statements. Note also that, in the material fact notice dated March 2, 2015, the Company
mentioned a target leverage ratio of 2.5 times by 2018, which is consistent with the
amounts cited in the article.
The aforementioned clearly shows the uncompromising commitment to transparency of the
Company in its communication and its respect for the best practice of corporate
governance.
Lastly, the Company takes this opportunity to inform that the guidance given in its material
fact notice dated March 2, 2015 remains unchanged, including with regard to its CAPEX
metrics. As mentioned in the Presentation, new guidance revised to reflect only the impacts
of the Transaction will be given to the market after the consummation of the Transaction
(Slide 5 of the Presentation). Any changes in the projections announced arising from the
consummation of the Transaction will be duly informed to the market through a material fact
notice, as required by CVM Instruction 358 dated January 3, 2002.
São Paulo, July 6, 2015
Marcelo Di Lorenzo
Strategic Planning Vice President and
Investor Relations Officer
IR CONTACTS
Av. Chedid Jafet, 222 Bloco A - 5º andar - Vila Olímpia - São Paulo - SP – CEP: 04551-065
Tel: (11) 3792-8994
www.marfrig.com.br/ri
e-mail: [email protected]
INVESTOR RELATIONS
(APPENDIX I)
03 de julho de 2015
2290/2015-SAE
Marfrig Global Foods S.A.
Sr. Marcelo Di Lorenzo
Diretor de Relações com Investidores
Ref.: Solicitação de esclarecimentos sobre notícia veiculada na imprensa
Prezados Senhores,
Em notícia veiculada pelo jornal Valor Econômico, edição de 03/07/2015,
consta, entre outras informações, que:


a alienação da Moy Park permitirá a Marfrig, simultaneamente, a redução do
índice do endividamento – de 6,6 vezes em março para algo entre 3,5 vezes e
3,7 vezes no fim do ano – e a aceleração de investimentos que vinham sendo
postergados nos EUA e, sobretudo, na Ásia;
a economia de juros que essa empresa conseguirá com a venda da Moy Park,
que deverá ser concluída até o fim do ano, vai além dos R$ 300 milhões
anuais estimados inicialmente .
Solicitamos, até 06/07/2015, esclarecimentos sobre o teor da referida notícia,
bem como outras informações consideradas importantes.
No arquivo a ser enviado deve ser transcrito o teor da consulta acima formulada
antes da resposta dessa empresa.
Esta solicitação se insere no âmbito do Convênio de Cooperação, firmado pela
CVM e BM&FBOVESPA em 13/12/2011, e o seu não atendimento poderá
sujeitar essa companhia à eventual aplicação de multa cominatória pela
IR CONTACTS
Av. Chedid Jafet, 222 Bloco A - 5º andar - Vila Olímpia - São Paulo - SP – CEP: 04551-065
Tel: (11) 3792-8994
www.marfrig.com.br/ri
e-mail: [email protected]
INVESTOR RELATIONS
Superintendência de Relações com Empresas – SEP da CVM, respeitado o
disposto na Instrução CVM nº 452/07.
Atenciosamente,
Nelson Barroso Ortega
Superintendência de Acompanhamento de Empresas
c.c.: CVM - Comissão de Valores Mobiliários
Sr. Fernando Soares Vieira - Superintendente de Relações com Empresas
Sr. Waldir de Jesus Nobre - Superintendente de Relações com o Mercado e
Intermediários
Esclarecemos que a resposta dessa empresa deve ser enviada exclusivamente por meio do módulo IPE, selecionando-se a
Categoria: Fato Relevante ou Categoria: Comunicado ao Mercado, o Tipo: Esclarecimentos sobre consultas CVM/Bovespa e,
em seguida, o Assunto: Notícia divulgada na mídia, o que resultará na transmissão simultânea do arquivo para a
BM&FBOVESPA e CVM.
IR CONTACTS
Av. Chedid Jafet, 222 Bloco A - 5º andar - Vila Olímpia - São Paulo - SP – CEP: 04551-065
Tel: (11) 3792-8994
www.marfrig.com.br/ri
e-mail: [email protected]