Metalfrio S A : 4Q20 Earnings Release Presentation

4Q20 and FY2020 Results

Legal Notice

In this presentation we make statements about future events (forward-looking statements) that are subject to risks and uncertainties. These statements are based on beliefs and suppositions of our Management and information to which the company currently has access. Statements about future events include information about our present intentions, beliefs or expectations, and those of the members of the company's Board of Directors, and Executive Officers. Reservations in relation to statements and information about the future also include information about possible or presumed operational results, and also statements that are preceded or followed by or which include the words "believe", "may", "will", "continue", "expect", "forecast", "intend", "plan", "estimate", or similar expressions. Statements and information about the future are not guarantees of performance. They involve risk, uncertainties and suppositions because they refer to future events, and thus depend on circumstances which may or may not occur. Future results and the creation of value for stockholders may differ significantly from those expressed or suggested by forward-looking statements. Many of the factors that will determine these results and amounts are beyond Metalfrio Solutions' capacity to control or forecast.

Information on performance that is not directly derived from financial statements, such as, for example, information about the market, quantities produced and sold, production capacity, or calculation of adjustments on our results were not subject of audit by our external auditors.

4Q20 and 2020 Highlights

Million Reais	4Q20	4Q19	%Var	2020	2019	%var.
Revenues	386.6	374.8	3.1	1,445.2	1,480.8	(2.4)
Gross Profit	63.9	66.9	(4.5)	252.2	249.0	1.3
Operational Profit	14.7	56.6	(74.0)	72.6	129.0	(43.7)
Adjusted EBITDA	37.0	42.2	(12.2)	151.3	148.5	1.9
Net Profit	17.4	23.7	(26.6)	(140.1)	47.4	nm

•  4Q20 net revenues up 3.1% to R$386.6 million versus prior year period; full year revenues marginally down 2.4% to R$1,445.2 million

•  Services increased by 8.5% to R$241.5 million for the full year and now account for 16.7% of net revenue versus 15.0% in 2019

•  Adjusted EBITDA of R$37.0 million in 4Q20 was 12.2% lower vs 4Q19; full year adjusted EBITDA of R$151.3 million, 1.9% higher than prior year and at historical high level

•  Net Profit of R$17.4 million in 4Q20; full year Net Loss of R$140.1 million, versus profit of R$47.4 million in 2019, owing mainly to non-cash foreign exchange variation losses.

•  1Q20

  jan-feb: excellent start

  mar: first impact observed in EMEA

•  2Q20 as lockdown measures are imposed across the globe, results were severely impacted

  4.0%

  YoY Accum Sales

  1Q

  1H

  9M

  2020

•  3Q20 EMEA market start to experience a rebound in sales since the beginning of the quarter and South America experienced a improvement at the end of the period

  YoY Accum Adj EBITDA

  34.0%

•  4Q20 South America experienced a good full quarter in a regular market conditions. Central & North Americas experienced first improvements in Dec

1Q

1H

9M

2020

Sales (R$ million):

4Q19

4Q20

Products 2.1%

Services

545

557

Highlights:

•  Revenues up by 28.0% vs. 4Q20, with the resumption of market recovery;

•  Consistent market-share gains in the middle market;

•  Transition of Refurbishment facility to our own premises;

•  Services share of Net Revenues above 25%.

148	142
397	415

2019

2020

4Q19

•  Revenues decreased by 31.4% vs. 4Q19, as the region continued to be affected by COVID-19

•  Service performance was also impacted by nationwide lockdown and the reduction of activity- related services

4Q20

ProductsServices

2019

2020

4Q19

ProductsServices4Q20

1.1%

723

730

•  Sales decreased 8.3% vs 4Q19, as European markets began to see new lockdown measures

•  Good level of exports to new markets in the

  distributor channel

•  Services performing well, with growth of 31.8% in the

  quarter and 79.0% for full year with activities in

  43	680	77
  653

  2019

  upgrading beer units at the newly established refurbishment centre

2020

8.5%

223

241

2019

2020

1,258

1,204

16.6%

16.9%

37

41

2019

2020

16.9%

17.6%

212

211

2019

2020

2019

2020

Net Debt

Cash and equivalents, bonds and securities

536.4

406.4

379.4

437.4

- 28.1

- 28.1

Short term debt (ST)

Long term debt (LT)

653.4

746.8

840.3 822.1

376.8

402.4

419.3 434.4

- 177.4

- 177.4

295.3 295.3

USD denominated debt BRL denominated debt Euro denominated debt

TRYdenominated debt

MXN denominated debt

29.7

37.1

38.4 71.4

478.5

467.4

488.9 519.9

467.7

615.7

656.2 614.5

0.0

0.0

55.9 50.7

54.3

29.1

20.3 0.0

• 26.1 26.1

• 27.2 27.2

• 104.9 104.9

• 14.0 14.0

• - 54.3

- 54.3

Gross debt

Net cash / (Net debt)

Shareholders' equity (Equity)

1030.2

1149.3

1259.6

1256.5

117.9

117.9

- 493.8

- 742.9

- 880.2

• - 819.1

  127.3

  • - 146.0

    • - 146.0

      57.3

      46.5

• - 2.4

• - 114.5

  • - 114.5

    Cash and equiv. / ST debt ST debt / (ST + LT)

    0.8x 63.4%

    0.5x 65.0%

    0.5x 66.7%

    0.5x 65.4%

• n/ a n/ a

• n/ a n/ a

Outlook

•  Ready for 2021

  •  Competitiveness in Turkish Plant

  •  Strong evolution in the Brazilian service market

•  Smart Solutions

  •  New points of sale in non-traditional channels

  •  New forms of interaction at the point of sale (POS)

•  Wide Coverage

  •  Innovative Products

  •  Services for a wide selection of equipment beyond coolers and freezers

•  Growth with scale

  •  Broad service portfolio enabling a uniquely integrated range of solution

  •  Extensive organic growth and expansion of addressable market

•  Strong Fundamentals

Metalfrio is committed to delivering long-term shareholder value through its key strategic priorities:

•  Innovation & multi-channel approach

•  Geographic spread

•  Service & Full Service Rental

•  Connectivity

•  Margin Expansion

  •  Cost Optimization

  •  Higher value added products and services

  •  Operating leverage

•  Deleverage

  •  Financial discipline - working capital and capital allocation

  •  Improvement in operational performance

Thank you!