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COMPANY PROFILE

Metalfrio Solutions SA

REFERENCE CODE: 3899C0CA-1434-4815-96EF-F4C0ECA748B5

PUBLICATION DATE: 05 Feb 2021
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Metalfrio Solutions SA
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3

Key Facts ......................................................................................................................... 3
Business Description .....................................................................................................4
History ............................................................................................................................. 5
Key Employees ...............................................................................................................7
Key Employee Biographies ...........................................................................................8
Major Products & Services ............................................................................................9
SWOT Analysis .............................................................................................................10
Top Competitors ...........................................................................................................14
Company View ..............................................................................................................15
Locations And Subsidiaries ........................................................................................17

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Company Overview

Company Overview

COMPANY OVERVIEW
Metalfrio Solutions SA (Metalfrio Solutions) manufactures and distributes refrigeration equipment. The
company’s product portfolio comprises domestic and commercial plug in refrigerators and freezers
including vertical, horizontal and special line for soft drinks, beers, ice creams and frozen and cooled
foods. It also offers maintenance services, warranty, post warranty and technical assistance services.
Metalfrio Solutions sells spare parts to dealers and customers and markets products under Derby,
Klimasan, Caravell and Metalfrio brand names. It serves regional and international clients involved in ice
cream, food and beverages businesses. The company has business presence in Brazil, Italy, Mexico,
Nigeria, Ukraine, Russia, the US, Poland, Iraq, Romania, Turkey, Mauritius Island and South Africa.
Metalfrio Solutions is headquartered in Sao Paulo, Brazil.

The company reported revenues of (Real) BRL1,480.8 million for the fiscal year ended December 2018
(FY2019), an increase of 23.7% over FY2018. In FY2019, the company’s operating margin was 8.7%,
compared to an operating margin of 7.1% in FY2018. The net profit of the company was BRL21.8 million
in FY2019, compared to a net loss of BRL18.5 million in FY2018.
The company reported revenues of BRL333.1 million for the second quarter ended June 2020, a
decrease of 13.4% over the previous quarter.
Key Facts

KEY FACTS

Head Office Metalfrio Solutions SA

Avenida Abrahao Goncalves Braga, n 412, Vila Liviero
Sao Paulo
Sao Paulo
BRA
Phone 55 11 26279171
Fax 55 11 26279196
Web Address www.mzweb.com
Revenue / turnover (BRL Mn) 1,480.8
Revenue (USD Mn) 327.8
Financial Year End December
Employees 1,050
Bolsa de Valores do Estado de FRIO3
Sao Paulo Ticker

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Business Description

Business Description

BUSINESS DESCRIPTION
Metalfrio Solutions SA (Metalfrio Solutions) manufactures plug-in commercial refrigeration products.

The company markets products under various brand names such as Metalfrio, Caravell, Klimasan and
Derby.

The company classifies business operations into two reportable segments: Goods and Service.

Metalfrio Solutions operates five manufacturing plants two in Brazil, one each in Turkey, Mexico and
Russia.

It maintains eight commercial centers located in Indonesia, Denmark, Nigeria, Ukraine, Poland, and the
US.

The company has three service offices in Brazil, Argentina and Bolivia.
It distributes products to more than 80 countries. The company operates in Brazil, Turkey, Mexico,
Poland, Nigeria, Russia, Iraq, Italy, the US, Romania, South Africa, Mauritius Island and Ukraine.

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History

History

HISTORY

Plans/Strategy

Year: 2020

In July, the company announced its plans to acquire 100% stake in Assets 365 Limited.

Contracts/Agreements

Year: 2010

Metalfrio Solutions signed an agreement with Instituto Mauá de Tecnologia to promote the research and
development in applied commercial refrigeration technologies.

Acquisitions/Mergers/Takeovers

Year: 2008

Metalfrio Solutions acquired Turkish company Senocak Holding.

Acquisitions/Mergers/Takeovers

Year: 2007

The company acquired two companies in Mexico: Nieto and Enerfreezer in Mexico.

Stock Listings/IPO

Year: 2007

The shares of the company were floated on the Sao Paulo Stock Exchange.

Acquisitions/Mergers/Takeovers

Year: 2006

The company acquired Caravell and Derby to expand its operations in Europe.

Corporate Changes/Expansions

Year: 2006

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History

The company opened a new plant in Mato Grosso do Sul.

Corporate Changes/Expansions

Year: 2005

Metalfrio Solutions setup its first plant in Turkey.

Corporate Changes/Expansions

Year: 2004

The company was established as a separate entity.

New Products/Services

Year: 1992

The company introduced automatic vending machines in Brazil.

Ownership Changes

Year: 1990

The company became a division of Bosch Siemens Hausgerate (BSH) with the acquisition of Continental
2001 by BSH.

Ownership Changes

Year: 1989

The company’s majority shares were acquired by Continental 2001, a household appliance manufacturer.

Corporate Changes/Expansions

Year: 1972

The company started its plants in Sao Paulo.

Incorporation/Establishment

Year: 1960

Metalfrio Solutions SA was established.

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Key Employees

Key Employees

KEY EMPLOYEES

Name Job Title Board

Marcelo Faria de Lima Chairman Executive Board
Petros Diamantides Chief Executive Officer, Senior Management
President
Frederico da Silveira Moraes Chief Financial Officer, Senior Management
Investor Relation Officer
Luiz Antonio de Rossi Jr Director Non Executive Board
Serkan Gulec Director Non Executive Board
Livinston Martins Bauermeister Director Non Executive Board
Pedro Manuel Jacinto Casanova Guerra Director, Vice President Executive Board

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Key Employee Biographies

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Marcelo Faria de Lima

Board:Executive Board
Job Title:Chairman

Mr. Marcelo Faria de Lima is the Chairman of the company. He served as an Executive Officer for Abyara
Planejamento Imobiliario SA from 2006 to 2007 and as a Director of Neovia Telecomunicacoes SA from
2001 to 2005. Prior to this, he served as the Co-founder and Chief Executive Officer of AreaUtil.com. Mr.
Lima served as a Director of Mergers and Acquisition and Capital market at Banco Garantia from 1996 to
1998. He served as the Head Economist and Investment Fund Manager and also served in various areas
including Corporate Finance and Project Finance for ABN Amro Bank from 1989 to 1996. Mr. Lima serves
as the Vice Chairman of Restoque Comercio e Confeccoes de Roupas SA, Executive Officer of Artesia
Gestao de Recursos SA and Director of Produquimica Industria e Comercio SA.

Petros Diamantides

Board:Senior Management
Job Title:Chief Executive Officer, President

Mr. Petros Diamantides is the Chief Executive Officer and President of the company. Prior to this, he
served as the Chief Administrative Officer of Commercial Refrigeration and Auto Parts of the UK for
Procter & Gamble. Mr. Diamantides joined the company as the Superintendent Director in 2012.

Frederico da Silveira Moraes

Board:Senior Management
Job Title:Chief Financial Officer, Investor Relation Officer
Since:2017

Mr. Frederico da Silveira Moraes has been the Chief Financial Officer and Investor Relation Officer of the
company since 2017. Prior to this, he served as an Industrial Engineer, Financial Manager and Corporate
Treasurer of the company.

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Major Products & Services

Major Products & Services

MAJOR PRODUCTS & SERVICES

Metalfrio Solutions is a manufacturer and distributor of commercial refrigeration equipment. The
company’s major products and services include the following:

Products:

Refrigerators
Ice and Frozen Food Freezers
Beverages Freezers
Ice Cream Freezers

Services:

Technical Assistance
Warranty Services
Post Warranty Services
Maintenance Services

Brands:

Metalfrio
Derby
Caravell
Klimasan

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SWOT Analysis

SWOT Analysis

SWOT ANALYSIS
Metalfrio Solutions SA (Metalfrio Solutions) is a manufacturer and distributor of plug-in commercial
refrigeration equipment. Geographic presence, client focused solution, and financial performance are the
company’s major strengths, even as liquidity position remains a cause for concern. Global soft drinks
consumption and rapid urbanization are likely to provide growth opportunities to the company. However,
foreign exchange risks, intense competition, and technological change costs could affect its business
operations.

Strength Weakness

Geographic Presence Liquidity Position

Client Focused Solution
Financial Performance
Opportunity Threat

Positive Outlook for Global Household Products Intense Competition

Market Foreign Exchange Risks
Rapid Urbanization Technological Changes
Global Soft Drinks Consumption

Strength

Geographic Presence

Metalfrio Solutions’ wide geographic presence insulates it from the risk of operating in a single region.
The company has a network of direct distributors and commercial representatives in over 80 countries. In
FY2019, Brazil accounted for 34.4% of the company’s total revenue, followed by Turkey with 20.4%,
Mexico with 8.7%, Poland with 4.8%, Iraq with 3%, Russia with 2.8%, Nigeria with 2.5%, Ukraine with
1.8%, Italy with 1.6%, the US with 1.6%, Romania with 1.4%, South Africa with 1.2%, Mauritius Island
with 1% and Others with 15.2%. Further, its strong operational network stands to help the company in
serving to a large base of customers.

Client Focused Solution

Client focused solution helps the company to mitigate risk associated with dependence on a particular
product for major share of its revenue. Metalfrio Solutions is a manufacturer of plug-in commercial
refrigeration equipment. It does the customized solutions by deep understanding of market needs and
customers’ businesses, by delivering fast and dependable solutions and by innovating customized
products for each customer’s needs. Its customized design refrigerators are used in merchandising tools
in bars, restaurants, bakeries, supermarkets, convenience stores and other venues where cold or frozen
products are sold to the public. The company’s portfolio comprises of horizontal, vertical and upright plug-

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SWOT Analysis

in commercial refrigerators with different applications including cooling beer, soft drinks, refrigerating ice
cream and other products. These products are marketed under four brands Caravell, Metalfrio, Derby,
and Klimasan. It sells its products through distributors and commercial representatives.

Financial Performance

Strong financial performance enables the company to provide higher returns to its shareholders, and
attract further investments. Growth in revenue and profitability also enhance the company’s ability to
allocate adequate funds for growth and expansion. In FY2019, Metalfrio Solutions reported revenue of
BRL1,480.8 million, an increase of 23.7% as compared to BRL1,196.8 million in FY2018. The growth in
revenue was due to increase of 18.5% in the sales of products and 65% in the sales of services. The
other factors that contributed to growth include improvement in the performance of the core systems
portfolio and complementary products. In FY2019, the company’s operating profit was BRL129 million,
compared to BRL85.2 million in FY2018. Improving operating performance indicates the company’s focus
on efficient cost management. Similarly, its net profit was BRL21.8 million in FY2019, compared to a net
loss of BRL18.5 million in FY2018.

Weakness

Liquidity Position

Declined liquidity is an indication of the decreasing ease in funding the company’s day to day operations,
which also declines its ability to capture growth opportunities in the market. The company’s current ratio
was 1.0 at the end of FY2019. This was primarily due to increase in its current liabilities, which increased
from BRL897 million in FY2018 to BRL1,088.9 million in FY2019, resulting from increase in the accrued
expenses.

Opportunity

Positive Outlook for Global Household Products Market

Metalfrio stands to benefit from growth in the global household market. The company offers domestic
appliances for cooking, laundry care and floor care including dishwashers, washing machines and dryers
for commercial use, medical and laboratory needs The market is expected to grow majorly in developing
countries such as India, China and the Middle East, driven by rising per capita income and consumer
spending. Further, factors such as rapid urbanization, growing working-class population and new product
development are expected to support the trend. The global demand for household appliances is expected
to grow significantly in the future. According to in-house research, the global household products market
is forecast to reach a value of over US$184,465.9 million by 2022, recording a CAGR of more than 19%
during 2017–2022.

Rapid Urbanization

As rapid urbanization is one of the biggest macro trends currently, the company is innovating for existing

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SWOT Analysis

and newly minted 'CITYSUMERS' around the world. This trend of people choosing to live in an urban
environment is developing rapidly, particularly in emerging markets, but also in the more developed
Western economies. According to the United Nations, by 2050, the global urban population is expected to
be 6.3 billion, or 70% of the population at that time with China and India contributing close to 1 billion and
590 million respectively. Indian cities are forecast to generate 70% of new jobs created to 2030, produce
more than 70% of Indian GDP, and drive a near fourfold increase in per capita incomes across the nation.
With the increase in disposable incomes, an increasing number of consumers in emerging markets are
able to afford such items as a refrigerator, a washing machine or air-conditioning equipment thus
providing Metalfrio Solutions with tremendous potential growth in these economies.

Global Soft Drinks Consumption

The company stands to benefit from the growing consumption of soft drinks. According to in-house
research, the global soft drink market is forecast to reach a value of US$944,376.5 million by 2022. The
market is forecast to reach 787,422.8 million liters by 2022. Growing middle class population, increasing
disposable income, rapid urbanization, improved buying power, introduction of new flavors, and changing
customer needs are the major factors aiding the market growth. Usage of natural colors and sweeteners
such as corn syrup, aspartame and similar ingredients, apart from improvement in manufacturing process
of beverages is also leading to growth in the industry. Carbonates and packaged water were the largest
segments of the global soft drinks market, accounting for 37.6% and 15%, respectively, of the market
value. Asia-Pacific accounts for about 34.9% of the global soft drinks market value, followed by the US
(26.6%), Europe (21.2%), the Middle East (1.9%) and the Rest of the World (15.4%). Metalfrio Solutions
is one of the world’s largest producers of refrigeration equipment for soft drinks and beers.

Threat

Intense Competition

Metalfrio operates in a highly competitive refrigeration equipment market. The factors that determine the
level of competition within the industry include service performance, price, and sales and distribution
capabilities. Metalfrio faces competition from Embraco Europe Srl, Frigocon SA, Industrias Romi SA,
Keurig Green Mountain Inc and Whirlpool Corp. Apart from established players in developed countries,
players from emerging countries are also competing hard to garner greater market share. Many of its
competitors have a longer operating history, greater brand recognition, established customer and supplier
relationships, and greater financial resources, which leads to the creation of innovative products and
business expansion through acquisitions.

Foreign Exchange Risks

The company operates in various countries and is exposed to fluctuations in foreign exchange rates
against its reporting currency. It reports financials in Brazilian real for accounting purposes and as such
its revenue is exposed to the volatility of the reporting currency against other functional currencies such
as the US dollar, European dollar, British pound, Indonesian rupiah, and Russian ruble. In FY2019, the
company reported a loss of BRL26.9 million from foreign currency translation adjustments. To minimize
risks from currency fluctuations, the company involves in foreign exchange hedging by entering into

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SWOT Analysis

foreign exchange forward contracts. However, there would be no assurance that such hedging or other
measures may limit the impact of movements in exchange rates on the company’s results of operations.

Technological Changes

Metalfrio manufactures plug-in commercial refrigeration equipment. In order to meet customer’s demands,
Metalfrio must continuously design new products, update existing products, and invest in new
technologies and products. The launch of new products and technologies by the company involves a
significant commitment towards its research and development. Upon investing in these new technologies,
the company’s profits could suffer if they are not accepted in the marketplace as anticipated. Moreover,
Metalfrio's competitors could develop more innovative technologies and products, which might render its
technology and products under development obsolete or non-competitive.

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Top Competitors

Top Competitors

TOP COMPETITORS
The following companies are the major competitors of Metalfrio Solutions SA

Embraco Europe S.r.l.

Frigocon S.A.
Industrias Romi S.A.
Keurig Green Mountain Inc
Miele & Cie. KG
Whirlpool Corp

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Company View

Company View

COMPANY VIEW
A statement by Mr. Petros Diamantides, the Chief Executive Officer and President of Metalfrio Solutions
SA is mentioned below. The statement has been taken from the company’s financial statements.

We are delighted to report yet another record year for Metalfrio. With a double digit compound annual
growth rate in sales and c.30% in EBITDA in the last six years, there has been substantial and consistent
progress in the company. As the only fully integrated technology-based cold solutions provider, we are
proud to be able to increasingly provide a compelling offer to the world’s greatest consumer brands
across different segments such as beer, soft drinks, ice-cream and food. Our unrivalled geographic
footprint enables us to serve over 80 countries and enhanced by our integrated comprehensive services
offering, has fostered long customer partnerships through consistent value creation.

Metalfrio’s disruptive business model continues to evolve, now encompassing IoT technology
(connectivity), where we are able to generate invaluable, data-driven insights in areas such as asset
tracking, equipment health, environmental impact as well as consumer behavior trends, uniquely
integrated into our service infrastructure to deliver appropriate follow-up actions at the point-of-sale. Our
recent entry into the all-inclusive equipment rental market further allows us to expand our valueoffer with
an alternative framework proposition to our customers. All of which reinforces our partnership approach
with customers, providing them with the competitive advantages in achieving their strategic goals.
Concurrently, we continue to focus on financial discipline, providing a sound platform to continue
delivering consistently strong growth and shareholder returns.

Outlook

Metalfrio’s business model is evolving to be a disruptive force in the consumer goods business and an
integral part of its key customers’ value chain. Today Metalfrio is well placed to continue its strong
momentum across different markets, through a highly focused sales team which continues to work closely
with its customers to deliver fully integrated, customized cold solutions in over 80 countries. Best-in-class
manufacturing sites, innovative design teams and a unique service offering, will help the global consumer
companies that it serves, to optimize their sales objectives and sustainability goals. At the same time
Metalfrio continues to pursue efficiency gains and cost structure optimization across its business. Our
strong market position and financial discipline will ensure that we are well placed to make further strategic
and financial progress in the short to medium term despite ongoing global macroeconomic volatility.

Furthermore, Metalfrio is expanding its leadership in the use of IoT (connectivity) to deliver a suite of data-
driven solutions that enable customers to track equipment, monitor sales, operational and environmental
performance as well as giving dynamic insights into ever-changing end-customer habits. Metalfrio is
uniquely positioned to integrate IoT analytics with its service infrastructure, delivering appropriate actions
at the point-of-sale and therefore unprecedented value levels to its customer base. The recent
incorporation of the all-inclusive rental offer constitutes another disruption in the go-tomarket options
available to consumer goods companies and is gaining fast market traction. As Metalfrio continues to
move closer towards the end-consumer and therefore more aligned with the positive longterm growth
trends of its blue-chip customers, the quality of its growing earnings stream is expected to continue
increasing.

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Company View

Metalfrio applies a strong level of discipline to capital allocation and working capital, as well as active
margin management to improve the resilience of earnings and cash flow throughout the course of the
economic cycle. Metalfrio is committed to deleveraging its balance sheet through improved profitability
and cash flow, seeking continued working capital and Capex optimisation, moving towards our medium
target of year end Net Debt to Adjusted EBITDA (full year) ratio of 2.5x.

Financial Result
Net Financial items improved in the fourth quarter from an expense of R$3.5 million in the prior year
comparable period to an income of R$0.8 million including the positive effect of a tax adjustment. For the
full year, Net Financial items improved from a minus R$69.2 million to a minus R$43.7 million, with both
net interest & financial expenses as well as net foreign exchange variation, at lower levels.

Net Profit/Loss
Net Profit in 4Q19 rose 42.5% to R$23.7 million, with the full year Net Profit moving from a loss of R$5.4
million in the prior year comparable period to a profit of R$47.4 million. The Net Profit in 4Q19 includes an
additional non-cash provision related to Deferred Tax Asset of R$30 million.

Capitalization and Liquidity

At the end of 2019, cash and cash equivalents was R$536.4 million, marginally down when compared
with the prior year. Gross debt increased to R$1,030.6 million, compared to R$878.9 million at the end of
2018. As a result, Net debt increased to R$493.8 million from R$334.2 million in the prior year.
At year end, short term debt was R$653.4 million, up from R$496.1 million in the prior year, with long term
debt marginally down at the same time last year at R$376.8 million. As a result, short term debt as a
percentage of total debt was slightly up to 63.4%, up from 56.4% at the end of 2018. During the course of
2020, we expect to see this position improve, to be within our financial policy of 60% or lower.

Shareholders´ equity
Shareholders´ equity at the end of 2019 was R$127.3 million, which compares to R$87.4 million at the
end of 2018. Such increase is underpinned by the Net Profit of R$47 million along 2019.

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Locations And Subsidiaries

Locations And Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office

Metalfrio Solutions SA
Avenida Abrahao Goncalves Braga, n 412, Vila Liviero
Sao Paulo
Sao Paulo
BRA
Phone:55 11 26279171
Fax:55 11 26279196
www.mzweb.com

Other Locations and Subsidiaries

Begur Transportes Rodoviarios, Logistica e Servicos Metalfrio Solutions AS

Ltda Testrupvej
BRA DNK
Metalfrio Solutions Bolivia S.R.L. Metalfrio Solutions Inc
BOL 5925 Tri County Pkwy
Schertz
Texas
Schertz
Texas
USA
Metalfrio Solutions India Private Limited Metalfrio Solutions Mexico SA de CV
tejeswi plaza MEX
Hyderabad
Andhra Pradesh
Hyderabad
Andhra Pradesh
IND
Metalfrio Solutions Sogutma Sanayi ve Ticaret Anonim Rome Investment Management Ltd
Sirket
Manisa
Manisa
TUR

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