Tax Rate Efectivo 14% Pagina 9
Tax Rate Efectivo 14% Pagina 9
Tax Rate Efectivo 14% Pagina 9
Antartica Brahma
Cantidad de acciones emitidas 12,000,000 6,907,600 Exhibit 5
Precio accion 39.6 637.5 Exhibit 8
Market Cap 4752 44035.95
Deuda 1545 501
Valor 6297 44536.95
Costo deuda
Kd 35.43% 8.35%
8.0% Inflation
6.0% Real GDP Growth
4.0%
Nominal Growth
2.0%
0.0%
-2.0%
1996 1997 1998 1999e 2000f 2001f
Source of data: Bear Stearns, "Brazilian Beverage Industry," July 19, 2000, page 14.
VEJARIA BRAHMA, S.A.
Antarctica Brahma
1989 41% 50%
1990 38% 51%
1991 35% 51%
1992 34% 52%
1993 32% 50%
1994 30% 50%
1995 32% 47%
1996 26% 49%
1997 25% 48%
1998 25% 48%
1999 23% 49%
Source of data: Credit Suisse First Boston, "Brahma PN" August 2, 1999, page 38.
38.
Exhibit 5
BRAZILIAN BEER MERGER NEGOTIATIONS: COMPANHIA
CERVEJARIA BRAHMA, S.A.
Distribution of Voting Common Shares in Antarctica and Brahma
Share Ownership in Antarctica
FAHZ 10,572,000 88.1%
Anheuser-Busch 600,000 5.0%
Other investors 828,000 6.9%
Total Shares 12,000,000 100.0%
Share Ownership in Brahma
Garantia 3,522,876 51.0%
Telles 462,809 6.7%
Other investors 2,921,915 42.3%
Total Shares 6,907,600 100.0%
Source: Casewriter’s analysis.
Antarctica and Brahma: Comparative Performance
Antarctica Brahma
1998, Financial Performance per Hectolitre
Net Sales R$ 33.95 R$ 46.98
Cost of Goods Sold -22.85 -26.79
Gross Profit 11.1 20.19
Sales Expenses -4.59 -10.36
General and Administrative Expenses -3.29 -4.85
Pre-tax Income 3.22 4.98
Taxes -0.40 -0.56
Net Income R$ 2.82 R$ 4.42
Source: Casewriter’s analysis.
a: Comparative Performance
Stock-Price Information for
Antarctica and Brahma
Ratio of
Antarctica
to Brahma
Antarctica Brahma
(Reais per share)
May-97 120.0
781.0 0.1536
Jun-97 110.0
822.0 0.1338
Jul-97 100.0
820.0 0.1220
Aug-97 97.0 760.0 0.1276
Sep-97 96.0 805.0 0.1193
Oct-97 96.0 742.0 0.1294
Nov-97 93.0 690.0 0.1348
Dec-97 70.0 695.0 0.1007
Jan-98 70.0 740.0 0.0946
Feb-98 85.0 760.0 0.1118
Mar-98 80.0 800.0 0.1000
Apr-98 74.8 680.0 0.1100
May-98 70.0 670.0 0.1045
Jun-98 60.0 640.0 0.0938
Jul-98 61.5 670.0 0.0918
Aug-98 50.0 550.0 0.0909
Sep-98 38.3 460.0 0.0832
Oct-98 32.0 450.0 0.0711
Nov-98 28.0 520.0 0.0538
Dec-98 28.0 530.0 0.0528
Jan-99 25.5 604.0 0.0422
Feb-99 22.5 605.0 0.0372
Mar-99 28.0 630.0 0.0444
Apr-99 35.7 610.0 0.0585
May-99 39.6 637.5 0.0621
High 120.0
855.0 0.1536
Low 22.0 400.0 0.0372
Average 63.3 657.2 0.0954
Income Statement
Projected
1998 1999 2000 2001 2002 2003
Revenues $1,381.90 $1,406.50 $1,534.00 $1,674.90 $1,828.80 $1,996.80
COGS (excluding Depreciation) 929.5 868.4 920.4 988.2 1,060.7 1,158.2
Selling, General, & Administrative 397.6 502.0 521.6 569.5 621.8 659.0
EBITDA 54.8 36.1 92.0 117.2 146.3 179.7
Depreciation 67.0 80.0 93.8 100.8 107.8 114.8
Licensing Expense (Income) (130.0) (125.0) (136.3) (148.9) (162.5) (177.5)
EBIT 117.8 81.1 134.6 165.3 201.1 242.4
Interest (Income) (2.5) (8.3) (10.4) (9.6) (10.5) (11.5)
Interest Expense - Straight Debt 41.9 649.9 231.7 257.6 271.7 281.7
Pre-Tax Income 78.4 (560.5) (86.7) (82.6) (60.1) (27.8)
Income Taxes 9.5 18.3 (12.1) (11.6) (8.4) (3.9)
Net Income 68.9 (578.8) (74.5) (71.1) (51.7) (23.9)
Common dividends 0.0 0.0 0.0 0.0 0.0 0.0
Net Income to Retained Earnings 68.9 (578.8) (74.5) (71.1) (51.7) (23.9)
Earnings per Share (R$/share): $5.75 ($48.23) ($6.21) ($5.92) ($4.31) ($1.99)
Balance Sheet
Projected
1998 1999 2000 2001 2002 2003
Cash and Equivalents 127.0 289.4 230.1 251.2 274.3 299.5
Accounts Receivable 325.2 346.6 378.0 412.7 450.7 492.1
Inventory 212.4 185.2 196.3 210.8 226.2 247.0
Other Current Assets 97.0 45.0 49.1 53.6 58.5 63.9
Total Current Assets 761.6 866.2 853.5 928.3 1,009.7 1,102.5
Property , Plant, & Equipment 2,811.9 2,922.9 3,032.9 3,142.9 3,252.9 3,362.9
Accumulated Depreciation 1,137.2 1,187.2 1,281.0 1,381.8 1,489.6 1,604.3
Net Property, Plant, & Equipment 1,674.7 1,735.7 1,751.9 1,761.1 1,763.3 1,758.6
Other Long-Term Assets 965.7 965.7 965.7 965.7 965.7 965.7
Total Assets 3,402.0 3,567.6 3,571.1 3,655.2 3,738.8 3,826.7
Accounts Payable 99.0 102.1 108.2 116.2 124.7 136.2
Other Current Liabilities (excl. S/T Debt) 257.8 409.7 446.8 487.9 532.7 581.7
Total Current Liabilities 356.8 511.8 555.1 604.1 657.4 717.8
Debt (plug) 1,038.5 1,424.7 1,664.1 1,770.2 1,852.1 1,903.6
Other Long-Term Liabilities 85.4 84.0 84.0 84.0 84.0 84.0
Total Liabilities 1,480.7 2,020.5 2,303.1 2,458.2 2,593.5 2,705.4
Common Stock (Par + APIC+ Other Equity) 1,106.3 1,106.3 1,106.3 1,106.3 1,106.3 1,106.3
Retained Earnings 815.0 236.2 161.7 90.6 38.9 15.0
Total Liabilities & Stockholders' Equity 3,402.0 3,363.0 3,571.1 3,655.2 3,738.8 3,826.7
Source: Casewriter’s analysis.
UV02
77
2004
$2,180.30
1,242.8
719.5
218.0
121.8
(193.8)
290.0
(12.5)
286.2
16.3
2.3
14.1
6.3
7.7
$0.64
2004
327.0
537.3
265.0
69.8
1,199.1
3,467.9
1,726.1
1,741.8
965.7
3,906.6
146.1
635.1
781.2
1,912.3
84.0
2,777.5
1,106.3
22.8
3,906.6
BRAZILIAN BEER MERGER NEGOTIATIONS: COMPANHI
Antarctica’s Forecast of Free Cash Flows (in million
Projected
Earnings per Share (R$/share): R$ 37.26 R$ 30.79 R$ 35.84 R$ 46.22 R$ 54.81 R$ 64.96
R$ 76.83
2004
2,129.9
382.6
499.8
45.3
3,057.6
5,197.6
3,492.5
1,705.1
1,599.6
6,362.3
457.6
610.7
1,068.3
1,353.7
57.5
1,410.3
3,889.8
990.3
1,482.2
6,362.3
Brahma’s Forecast of Free Cash Flows
(in millions of Brazilian reais)
Forecast of Free Cash Flows Projected
1998 1999 2000 2001 2002 2003
Net Operating Profit after Tax 433.8 404.6 432.6 484.0 541.6 606.0
Add: Depreciation 305.0 305.0 322.5 340.0 357.5 375.0
(Increase) / Decrease in NWC (125.0) (498.0) 392.1 (130.2) (142.3) (155.7)
Cash Flow from Operations 613.8 211.6 1,147.2 693.8 756.8 825.4
Less: Capital Expenditures 325.0 350.0 350.0 350.0 350.0 350.0
Free Cash Flow 288.8 (138.4) 797.2 343.8 406.8 475.4
Source: Casewriter’s analysis.
2004
677.9
392.5
(170.2)
900.1
350.0
550.1
-27-
Exhibit 15
BRAZILIAN BEER MERGER NEGOTIATIONS: COMPANHIA CERVEJARIA BRAHMA, S.A
General Trends in M&A Global Activity
All Activity
Brazilian Targets
Brazilian acquiring Brazilian
54.0 7,403.1 37.0 7,718.6 50.0
Non-Brazilian acquiring Brazilian 44.0 5,402.2 49.0 20,698.4 26.0
Offer Price Premium to Target Share Price - All Deals (%)
1 Week
Before Ann.
2Q98
3Q98
4Q98
1Q99
Source: Thomson Financial SDC Platinum Mergers and Acquisitions data base.
U
V
RIA BRAHMA, S.A. 0
2
7
7
998 4th Quarter 1998 1st Quarter 1999
Value ($ MM) # of Deals Value ($ MM)
4,000 500,000
3,000 400,000
2,000 300,000
1,000 200,000
100,000
-
Global Deal Volume Non-US Deal Volume
Global Deal Value ($ MM) Non-US Deal Value ($ MM)
Source: Thomson Financial SDC Platinum Mergers and Acquisitions data base.
U
V
RAHMA, S.A. 0
2
7
7
1990-1Q99 $MM
1,000,
000
900,0
00
800,0
00
700,0
00
600,0
00
-
-29-
Exhibit 17
BRAZILIAN BEER MERGER NEGOTIATIONS: COMPANHIA CERVEJARIA
BRAHMA, S.A.
Credit-Market Information as of May 31, 1999
Annualized
Yield
Government Obligations
Short Term
7.3%
30-Days 23.4%
60-Days 27.1%
90-Days 37.8%
One Year 25.0%
Five Year 12.0%
Yield on Bank Savings Deposits 13.8%
Price Mkt Cap 1998 Rev 1998 Prof 1998 1999E 2000E 1998A 1999E 2000E 1999 E Shares
May 99 (In $ MM) (In $ MM) (In $ MM) EPS EPS EPS P/E P/E P/E CF/Shr 1999E P/CF Outsd
g.
Beverage (Alcoholic) Industry
Anheuser Busch $ 69.00 $ 32,839 $ 11,246 $ 1,233 2.53 2.85 3.10 27.3 24.2 22.3 4.55 15.2 475.9
Beringer Wine Estates Holdings 40.0 780 318 31 1.63 1.95 2.25 24.5 20.5 17.8 2.60 15.4 19.5
Brow n-Forman Corp. 'B' 71.0 4,864 1,775 201 2.93 3.20 3.50 24.2 22.2 20.3 3.95 18.0 68.5
Canandaigua Brands 'A' 52.0 931 1,497 64 3.38 4.20 4.80 15.4 12.4 10.8 7.85 6.6 17.9
Coors (Adolph) Co. 'B' 53.0 1,958 1,900 79 2.12 2.35 2.60 25.0 22.6 20.4 5.70 9.3 36.9
Molson Cos. Ltd. 'A' 22.0 1,297 2,150 48 0.80 0.95 1.10 27.5 23.2 20.0 2.80 7.9 58.9
Mondavi (Robt.) Corp. 34.0 525 325 29 1.83 2.15 2.45 18.6 15.8 13.9 3.20 10.6 15.4
Seagram Co. 59.0 23,542 9,714 92 0.26 0.55 0.15 226.9 107.3 393.3 1.05 56.2 399.0
Average (excluding outlier, Seagram) 23.2 20.1 17.9 4.4 11.8
Price Mkt Cap 1998 Rev 1998 Prof 1998 1999E 2000E 1998A 1999E 2000E 1999 E 1999E Shares
May 99 (In $ MM) (In $ MM) (In $ MM) EPS EPS EPS P/E P/E P/E CE/Shr* P/CE Out.
Modelo is the largest producer of beer in Mexico. The most famous of its beer brands is Corona.
Femsa is the largest beverage company in Mexico. It produces several beer brands (including Dos Equis) and is also the bottler for Coca-Cola in Latin America. It also ow ns the largest chain of convenience stores in Latin America (OXXO).
Quinsa controls beverage and malting businesses in five Latin American countries - Argentina, Bolivia, Paraguay, Uruguay and Chile. The company also has bottling and franchise agreements w ith PepsiCo, and accounts for 100% of PepsiCo product
sales in Uruguay and more than 80% of PepsiCo product sales in Argentina.
CCU is the leading brew er in Chile, and holds the third place in the Argentinian beer market. In the non-alcoholic beverages sector, CCU is Chile’s second-largest bottler of carbonated beverages and the
leader in the mineral w ater market. It has w inemaking operations in Argentina and in Chile.
Value of
Transaction ($mil)
Date
Announced
Target Name Acquiror Name
3/03/1998 FEMSA Valores Industriales SA 1,886.7
1/14/1999 Sanyo Coca-Cola Bottling Co Kita Kyushu Coca-Cola Bottling 614.8
4/24/1998 Lion Nathan Ltd Kirin Brewery Co Ltd 495.3
11/26/1998 Marston Thompson & Evershed Wolverhampton & Dudley 465.2
11/03/1998 Matthew Clark PLC Canandaigua Ltd 355.8
9/18/1998 Coca-Cola Beverages PLC Coca-Cola Co 110.7
11/02/1998 AquaPenn Spring Water Co Inc Danone Group 110.3
8/25/1998 San Miguel Corp{SMC} Exchange Capital Corp 69.7
5/22/1998 Pete's Brewing Co Gambrinus Co 69.4
2/15/1999 Australian Premium Wines Ltd Cranswick Estate Wines Ltd 21.5
3/31/1998 Fresh Juice Co Inc Saratoga Beverage Group Inc 18.9
8/26/1998 Lion Brewery Inc Malt Acquiring Inc 18.3
UV0277