FINANCE REVIEW

BR – P02’22

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Agenda
2

 MCC Brazil
 MOM
 REC

 LCC Brazil

 MAC

 NQC

 Dib

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 MCC BR: Actual P’02 vs. S&OP
-90bpts vs. forecast mainly due to Top Line, Mix, Other MCC and Energy partially offset by IVC, OVH and Prod. Costs.
3
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
 NS/t: -680.6 BRL/ton.
LCC  Volume: Domestic +510 tons and Affiliates -221tons
 Prod. Costs: lower actual cost on third-party services, renting machine and Mud&Water treatment versus S&OP
MAC BR
 Energy: Actual gas m³ rate with a higher cost versus forecast due to inflation. Already aligned with commercial and manufacturing team (to be updated into next STEP with an
MAC MOM &
REC estimated impact of +5M BRL)
NQC Ø OVH:  Bonus MPI still considered in S&OP (to be align with Melisa Soto)
 Other MCC: STD rev not considered in P02
Dib
 Depreciation/ PGA: YTD PGA correction in between plants.
P02’22  IVC: Production: 16.2k ton / Dispatch: 13.2k ton >> Variation: Production +1,401 tons and Sales +289 tons.
Brazil Finance  Dry MOM: Production +1,020t / Sales +2,200t
Review
 Dry REC:  Production +248t / Sales -1,045t
 Pouch:  Production +118t / Sales -737t
 Others: Production +16t / Sales -117t
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 MCC MOM: Actual P’02 vs. S&OP
-250bpts vs. impacted by Volume, Labor, Prod. Costs, OVH, IVC and Depreciation partially offset by Top Line, Energy and Other MCC
4
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY  Volume: Domestic +1,567tons and Affiliates -221tons
PCC YTD vs
LY  NS/t: -994 BRL/t:
7.525 actual vs. 8.519 forecast (-11.7%)
LCC
 Labor: Overtime, termination costs and INSS lower versus S&OP
MAC BR
 Prod. Costs: lower actual cost on lab services, renting machine and Mud&Water treatment versus S&OP
MAC MOM &
REC
 Energy : Actual gas m³ rate with a higher cost versus forecast due to inflation. Already aligned with commercial and manufacturing team (to be updated into next

NQC
STEP with an estimated impact of +5M BRL)
 OVH: Bonus MPI still considered in S&OP (to be align with Melisa Soto)
Dib
 Depreciation: Phasing adjustment between periods on PGA
P02’22  Other MCC : STD revaluation not considered in the actual vs S&OP
Brazil Finance
Review  IVC: Production: 12.1kton / Dispatch: 9.7kton >> Variation: Production +1.1kton and Sales +1.3ktons.
 Dry MOM: Production +1kt / Sales +2.2kt
 Pouch: Production +118t / Sales -737t
 Others: Production +15.7t / Sales -117t
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 MCC MOM: YTD P’02 vs. LY
+90bpts vs. LY impacted by Volume, Mix, Prod Costs, Energy and W.O partially offset Top line, Labor, OVH, Maintenance and IVC
5
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
 Volume: Domestic -8,624tons and Affiliates +316tons
LY
 NS/t: +2.250 BRL/t:
LCC
7.573 actual vs. 5.323 LY (+42.3%)
MAC BR  Labor: Mainly 4th shift into Pouch and C&T that was not triggered in 2021 basis offset by NSV and volume effects
MAC MOM &  Prod. Costs: Mud&Water treatment, overall material consumption, lab services partially offset by third party services and sanitization
REC
 Energy:: Impact mainly due to inflation and dry season
NQC
 Maintenence:: Services phasing expenses partially off set by maintenance material
Dib
 OVH:: Mainly due to x-charge from Regional team (Bonus MPI)

P02’22  Write off:: Energy shortage and extrusion breakdown (C&T) during P01
Brazil Finance  IVC: Production: 21.9kton / Dispatch: 20.3k ton >> Variation: Production -7.1kt and Sales -8.3kt.
Review
 Dry MOM: Production -7.1kt / Sales -7.6kt
 Pouch: Production +670t / Sales -184t
 Others: Production -583t / Sales -524t
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 PCC MOM: YTD P’02 vs. LY
+311 BRL/t MOM 6
MCC Brazil Values in BRL

MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
TOTAL MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR

MAC MOM &  Production volume: -7,052 tons:

REC
21,967t actual vs. 29,019t LY
NQC
 Labor: Mainly 4th shift into Pouch and C&T that was not triggered in 2021 basis
Dib
 Prod. Costs: Mud&Water treatment, material consumption, lab services and production material partially offset by third party services and sanitization

P02’22  Energy:: Impact mainly due to inflation and dry season

Brazil Finance  Maintenance:: Services phasing expenses partially off set by maintenance material
Review
 OVH::Mainly due to x-charge from Regional team (Bonus MPI)
 NQC: DRY YTD 1.3% and Pouch 2.9% (Can 4.6% / C&T 6.1%)

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 PCC MOM: YTD P’02 vs. LY
+208 BRL/t for DRY and +156 BRL/t for Pouch, +1,347 BRL/t for Can, +559 BRL/t for C&T Dog, +1,372 BRL/t for C&T Cat
7
MCC Brazil Values in BRL

MOM
MCC S&OP
DRY POUCH
MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs CAN
LY

LCC

MAC BR

MAC MOM &

REC

NQC
C&T DOG C&T CAT

Dib

P02’22
Brazil Finance
Review
 Production volume: -7,052 tons:
21,967t actual vs. 29,019t LY (Dry -7.1kt, Pouch +670 tons, Can -616 tons, C&T Dog +35 tons, C&T Cat -2,7 tons)
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 MCC REC: Actual P’02 vs. S&OP
+20bpts vs. impacted by Volume, Top Line, Prod Costs and Other MCC partially offset by Labor, Energy, OVH and IVC
8
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR
 Volume: -1,044 tons
MAC MOM &
REC  NS/t: -261.2 BRL/t:
NQC 6.150 actual vs. 6.411forecast (-4.1%)
 Labor: Salary, lower overtime and meal vs S&OP
Dib
 Prod. Costs: Phasing expense from P03 (Big Bags)
P02’22
 Energy : Forecast gas m³ rate with a higher cost versus actual
Brazil Finance
Review  OVH : Mainly due to salaries and bonus
 Other MCC : STD rev not considered in P02
 IVC: Production: 4.1kton / Dispatch: 3.4kton >> Variation: Production +248tons and Sales -1,045tons.
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 MCC REC: YTD P’02 vs. LY
-340bpts vs. LY impacted by Top Line, OVH and IVC partially offset Volume, Prod. Costs and Energy
9
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR

MAC MOM &

REC

NQC  Volume: -1,970tons

 NS/t: +1.920 BRL/t:
Dib
6.107 actual vs. 4.187 LY (+45.9%)
P02’22  Prod. Costs: Consumption material, pest control partially offset by clean material and lab services.
Brazil Finance
Review  Energy:: Impact mainly due to inflation and dry season
 OVH:: Mainly due to x-charge from Regional team plus salaries
 IVC: Production: 7.2kton / Dispatch: 7.6k ton >> Variation: Production -1,704t and Sales -1,970t.
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 PCC REC: YTD P’02 vs. LY
+182 BRL/ton vs. LY 10
MCC Brazil Values in BRL

MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR

MAC MOM &

REC
 Production volume: -1,704 tons:

NQC
7,247t actual vs. 8,951t LY
 Labor: Phasing issue during 2021 basis (Meal), salaries plus healthcare and temporary workers in 2022.
Dib
 Prod. Costs: Consumption material, pest control partially offset by clean material and lab services.
P02’22  Energy:: Impact mainly due to inflation and dry season
Brazil Finance
Review
 Maintenance::Services phasing expenses partially off set by maintenance material
 OVH:: Mainly due to x-charge from Regional team plus salaries
 NQC: NQC YTD 1.5%
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 LCC BR: Actual P’02 vs. S&OP
+80bpts vs. forecast mainly due Top line, FTW, FTC,OVH and Pallet expenses partially offset by Volume, S&H and Labor 
11
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR
 NS/t: -680.6 BRL/ton.
MAC MOM &
REC  Volume: Domestic +510 tons and Affiliates -221tons
NQC  FTC: +BRL 7K due to reverse logistic above than plan ; +BRL 70K due to geographic mix

Dib  FTW: Volume above the forecast (4 additional containers from MOM to REC)
 S&H: -BRL 42K due to logistics materials lower than forecast, - BRL 66K  Indirect costs lower than planned
P02’22
 Labor & OVH: Main variances + BRL 144 k healthcare assistance,  - R$ 85 K meals
Brazil Finance
Review  Import Cost: -BRL 105K lower volume (42Ton) VS forecast; + BRL 122K extra costs with demurrage and handlining (Forecast= R$ 2.500 / ton Vs Actual P2= R$ 4.392 /
ton)
 Pallet Expenses: + BRL 20K volume above than planned; + BRL 18K inventory adjustment; + BRL 55K provision adjustment
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 MAC BR: Actual P’02 vs. S&OP
-340bpts vs. forecast mainly due Top Line and PGA partially of set by COGS
12
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR

MAC MOM &

REC

NQC
 NSV/t: -680.6BRL/ton (-8.5%)
Dib
 Volume variation: (Domestic +510 tons and Affiliates -221 tons)
P02’22
Brazil Finance
Review

 COGS: Prime +1.1% // MCC +2.8% // LCC -0.1%.

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 MAC MOM & REC: P’02
MAC comparison versus S&OP and LY per Tech 13
MCC Brazil
MOM Actual P02 (33.7%) vs S&OP (30.7%)
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY Vs S&OP

REC DRY MOM

Volume
2.199,8
NSV/t
74,7
PRIME
(4,6%)
MCC
(3,9%)
LCC
(6,7%)
Total
(15,1%)
POUCH (736,8) (431,4) 8,1% (1,0%) 3,6% 10,7%
MCC S&OP
CAN 24,2 92,1 (8,4%) (2,7%) (4,3%) (15,4%)
C&T BISCROK (113,8) (769,3) 2,1% 0,6% 0,8% 3,5%
MCC YTD vs C&T CAT (27,2) (3.404,8) (0,3%) 0,1% 0,8% 0,7%
LY DRY REC (1.044,7) (261,2) 6,1% 0,2% 2,3% 8,5%
C&T imp (28,5) (2.085,5) (1,1%) - 5,1% 4,0%
PCC YTD vs YTD P02 (23.8%) vs LY (31.8%)
LY Vs LY
Volume NSV/t PRIME MCC LCC Total
LCC DRY MOM (7.599,8) 2.064,2 (14,6%) 1,1% (2,0%) (15,5%)
POUCH (184,4) 1.422,7 4,3% (2,1%) 1,0% 3,3%
CAN (405,7) 1.998,4 (1,8%) 9,1% (1,2%) 6,1%
MAC BR C&T BISCROK (102,9) 1.356,6 (2,1%) 3,3% 1,7% 2,9%
C&T CAT (15,0) 6.730,4 0,7% 1,7% 2,3% 4,6%
MAC MOM & DRY REC (1.970,5) 1.920,8 (11,8%) (3,4%) (1,7%) (16,9%)
REC C&T imp (72,7) 5.290,7 9,1% - 2,4% 11,5%

NQC

Dib

P02’22
Brazil Finance
Review
 Vs S&OP: -340bpts mainly due to Top Line partially of set by COGS
 Vs LY: +800bpts main impact comes from NSV due to price incresing partially off set by Volume
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 FACTORY CONTROLLABLE NQC (%Prime)
Percentages and absolute savings versus Target 14
MCC Brazil
MOM TOTAL BR

MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY TOTAL MOM

LCC

MAC BR

MAC MOM &

REC

NQC

Dib

P02’22
Brazil Finance
Review

Copyright © 2021 Mars, Incorporated — Confidential

 FACTORY CONTROLLABLE NQC (%Prime)
Percentages and absolute savings versus Target 15
MCC Brazil
DRY MOM C&T DOG
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs CAN

LY
PCC YTD vs
LY

LCC

MAC BR

MAC MOM &

REC
C&T CAT
NQC POUCH MOM

Dib

P02’22
Brazil Finance
Review

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 Do it BEST
Actual status 16
MCC Brazil
MOM
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY
REC
MCC S&OP

MCC YTD vs
LY
PCC YTD vs
LY

LCC

MAC BR

MAC MOM &

REC

NQC

Dib

P02’22
Brazil Finance
Review  MCC Target : 2.437 – 8.0%
 MCC Actual: 1446 – 4.7%
 LCC Actual: 1.067 – 5.0%
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 17

OBRIGADO
Thank you

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