Kepler Weber (KEPL3) Investor Day 2024 summary

Strategic vision and future plans

• Launched the KW2030 plan, focusing on strengthening market leadership, expanding into adjacent markets, and leveraging digital connectivity through Procer integration.

• Targeting 1% market share growth by 2030, with ambitions to increase revenue from new products to 55% and expand product lines from three to seven by 2030.

• Emphasizing recurring revenue streams via a scalable storage unit rental model and data-driven services, aiming for third-party investment and long-term contracts.

• Accelerating R&D, with product launches now every 1.5 years and a goal to reach annual launches, focusing on automation, energy efficiency, and safety.

• Procer’s digital platform is central to data-driven services, enabling new monetization avenues in insurance, finance, and logistics.

Financial performance and guidance

• Achieved threefold net revenue growth from BRL 583 million in 2019 to BRL 1.649 billion in 2024, with consistent gross margins around 30%.

• Maintained six consecutive years of positive EBITDA, peaking at 30.2% in 2022, and sustaining 22% in the last 12 months.

• Net income has grown nearly 9x since 2019, with a 15% net margin and robust cash position (BRL 450 million), supporting both organic and inorganic growth.

• CapEx remains at 2.5%-3% of net revenue, with 46% allocated to new products and ongoing investments in operational efficiency and IT.

• Paid out BRL 195 million in dividends and equity in the last 12 months, with a growing and diversified shareholder base.

Market trends and business environment

• Brazilian agribusiness is rapidly expanding, with production expected to reach 500 million tons within a decade, driving persistent storage deficits.

• Industrialization and value-added processing are increasing demand for year-round storage and logistics solutions.

• Digitalization and automation are transforming farm management, with connectivity and data analytics becoming essential for efficiency and risk management.

• Cooperatives and large-scale producers are key drivers of technology adoption, while small farmers benefit from cooperative support and vertical integration.

• The weakest link remains the farmer, facing climate, financial, and operational risks, highlighting the need for integrated support and innovation.