The role of Brazil in the modern international cooperation

 

Metalfrio’s refrigerators are used as merchandising tools in bars, restaurants, bakeries, supermarkets, convenience stores and other venues that sell cold or frozen products to the public, serving as a marketing tool for their customers. For this reason, most of its products have customized designs to promote the logos and brand names of its customers.

 

The company has direct distributors and commercial representatives in 74 countries on five continents, and sells its products to the largest manufacturers of refrigerated food and beverage in the world. Metalfrio operates five industrial facilities, two of which are located in Brazil and one is in each of Turkey, Russia and Mexico, and one distribution center in the United States. 

 

 

Corporate Structure

 

Competitive Advantages

Metalfrio’s competitive strengths include:

Leadership in Latin America. 
With almost 50 years of experience in the market, Metalfrio is the leader in the plug-in commercial refrigeration industry in Brazil and Latin America, and one of the world’s three largest manufacturers of plug-in commercial refrigeration equipment.

 

According to a survey by Oxygen Trade Metalfrio products are currently used by approximately 90% of retailers and other businesses that employ plug-in commercial refrigeration in Brazil and the company’s floor share, as measured by installed units in Brazil, was 38.4% in 2007.

 

The Company has a strong and well-known brand and a wide portfolio of loyal customers in Latin America as a result of the quality, durability and competitiveness of its products and the “life cycle” program, which is the post-sales maintenance and technical assistance program created in 2005.

 

Global operations, flexibility and economies of scale.  
Metalfrio believes that its understanding of the global refrigeration sector and of its customers’ target markets, together with the strategic location of its production facilities and flexibility in developing customized designs that meet customers’ marketing strategies, set Metalfrio apart from its competitors in meeting the needs of its customers, following Metalfrio’s principle of “local supply to global customers.”

 

Metalfrio’s expansion into new countries is driven by strategic opportunities and by the demand of its largest multinational customers for local service provided by multinational suppliers.

Metalfrio’s strong relationships with these customers often create opportunities for the Company to expand its global operations to countries where they operate. The ranking of Brazilian multinational companies published in 2009 by Fundação Dom Cabral ranks Metalfrio as the fifth most international Brazilian company, based on certain ratios that take into account the amount of revenues, assets and employees of foreign subsidiaries.

 

Additionally, due to the size of its operations, the centralization of its administrative planning in Metalfrio’s head office in Brazil and the global relationships that it has built with its main suppliers, the Company believes that it will continue to benefit from economies of scale that may lead to greater operational efficiency and reductions in its costs of administration, equipment parts and raw materials.

 

Technological development and high quality of products and services.  
Metalfrio believes that its reputation is largely based on its technological innovation and on the quality of its products and services. Metalfrio’s products comprise a strong portfolio well-known in the market. The Company have been granted quality certification in Brazil and abroad by various well-regarded independent groups, such as the International Standardization Organization, or ISO, the International Electric Code, or IEC, Underwriters Laboratories Inc., or UL, the Association for Standardization and Certification (Asociación de Normalización y Certificación), or ANCE, the National Sanitary Foundation, or NSF, the Brazilian Association of Technical Standards (Associação Brasileira de Normas Técnicas), or ABNT, and the Argentine Institute for Standardization (Instituto Argentino de Normalización), or IRAM.

Moreover, the Company seeks to integrate innovative technologies into its products. Some of the innovative technologies used in their products include:

 

1. super cooler units for beer, with electronical temperature controls that react to the external temperature and the number of bottles being stored;
2. pioneering use of CO2 as a substitute for chloro-fluoro-carbons, or CFCs, in refrigerators in Brazil and the United States;
3. our long-distance monitoring system (Smart Metalfrio);
4. and Metalfrio’s new unit with a removable deck that allows for rapid substitution of the unit’s refrigeration system.

 

The quality and durability of its products, in addition to their advanced design features, make Metalfrio products important marketing tools for customers. The high level of technological development of its products also creates the potential for its customers to take advantage of energy savings, experience fewer instances of technical failures and benefit from more security for their products.

 

Competitive production costs and strategic location.  
Metalfrio production facilities are strategically located in regions with: (1) growth potential, both internally and through exports, such as Brazil, Russia, Turkey and Mexico; (2) competitive costs of labor, equipment parts and raw materials; and (3) reliable suppliers.

 

In addition, most of its facilities benefit from efficiency gains and access to distribution networks from their proximity to its main customers in Latin America and Europe. Some of its production units benefit from reduced tariff barriers for exports and tax incentives. The Company’s productive capacity in various markets also reduces its exposure to possible instability, seasonality and downturns in any single market. In addition, it allows Metalfrio to benefit from the exchange of expertise and technical skills of its employees worldwide in the development of products adapted to different environmental and climatic conditions.

 

Strategic position to benefit from fast growing sectors.  
Metalfrio’s leadership in Latin America, its operations in multiple markets, the high quality of its products and post-sale technical assistance and its strategically-located production network allows the Company to benefit from the growth in demand for beer, soft drinks, ice cream and refrigerated goods in general. In addition to its presence in developed markets, such as Western Europe and the United States, Metalfrio also have a solid reputation and active operations in markets with high potential for growth in the consumption of these goods, such as Brazil, Turkey, Mexico and Eastern Europe.

 

Management with a recognized history of growth and creation of value.  
Since Metalfrio were acquired by its current principal shareholders in 2004, its managers have fostered a culture of creating value with a focus on: (1) increasing profitability, in part by implementing an incentive plan for employees; (2) reducing costs, increasing efficiency of the value chain and innovating products; (3) rapid growth and internationalization of its operations; and (4) adherence to best practices in corporate governance, including the requirements of the Novo Mercado segment of the BM&FBOVESPA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.2 Analysis of the Norwegian multinational company Statoil ASA.

Statoil ASA, (OSE: STL), is a Norwegian multinational oil and gas company headquartered in Stavanger, Norway. It is a fully integrated petroleum company with operations in thirty-six countries. By revenue, Statoil is ranked by Forbes Magazine (2013) as the world's eleventh largest oil and gas company and the twenty-sixth largest company, regardless of industry, by profit in the world. The company has about 23,000 employees.

Statoil was formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro.

As of 2013, the Government of Norway is the largest shareholder in Statoil with 67% of the shares, while the rest is public stock. The ownership interest is managed by the Norwegian Ministry of Petroleum and Energy. The company is headquartered and led from Stavanger, while most of their international operations are currently led from Fornebu.

 

According to the Bartlett and Ghoshal model Statoil is a company with transnsnational strategy. This strategy tries to maximize both responsiveness and integration, where knowledge and innovation is sought developed and dispersed within the entire network. The MNC is regarded as a network, and each subsidiary is given responsibility compared to its capabilities and strategic mission. The MNC is controlled by the movement of people within the MNC that may facilitate the mutual development and dispersion of innovation and knowledge.

 

Corporate profile. Product and market boundaries.

Statoil's headquarters are in Norway. They have business operations in 35 countries and territories and have approximately 23,000 employees worldwide.

Statoil ASA is a public limited liability company organised under the laws of Norway and subject to the provisions of the Norwegian act relating to public limited liability companies (the Norwegian Public Limited Liability Companies Act). The Norwegian State is the largest shareholder in Statoil ASA, with a direct ownership interest of 67%.

 

Statoil is the leading operator on the Norwegian continental shelf (NCS) and is also expanding its international activities. Statoil is present in several of the most important oil and gas provinces in the world. In 2012, 33% of Statoil's equity production came from international activities and the company also holds operatorships internationally.

 

The company is among the world's largest net sellers of crude oil and condensate, and the second-largest supplier of natural gas to the European market. Statoil also has substantial processing and refining operations. The company is contributing to the development of

new energy resources, has ongoing activities in offshore wind, and is at the forefront of carbon capture and storage (CCS) technology implementation.

In further developing their international business, they intend to utilise their core expertise in areas such as deep waters, heavy oil, harsh environments and gas value chains in order to exploit new opportunities and develop high-quality projects.  

Ethics and values 

Our ability to create value is dependent on high ethical standards, and our values embody the spirit and energy of the company. We intend to work profitably and safely while also taking account of the environment and demonstrating social responsibility.

 

Ethics

We treat ethics as an integral part of our business activities. We are determined to make Statoil known for its high ethical standards. Our values embody the spirit and energy of Statoil at its best. We require high ethical standards of everyone who acts on our behalf and will maintain an open dialogue on ethical issues, internally and externally. We also expect our business partners to have ethical standards that are compatible with our own.

 

Statoil's Ethics Code of Conduct describes the requirements which apply to our business practice. Together with our values statement, it constitutes the basis and framework for the performance culture we want to develop.

 

Values

Our values are at the core of our management system. They drive our performance and guide us in how we do business, work together, and act towards external stakeholders. Commitment to our values, in words and actions, is not negotiable. Our intention is to build an even stronger Statoil.

 

Courageous

• Be imaginative, ambitious and stimulate new ideas
• Use foresight, and identify opportunities and challenges
• Challenge accepted truths and enter unfamiliar territory
• Make clear demands on each other and push for constructive  
  change
• Understand and manage risk

 

Open

• Be truthful and act with integrity
• Be curious, work together and share experience
• Promote and value diversity
• Communicate in a precise way, give and accept constructive feedback
• Bring up ethical issues andchallenges immediately

 

 

 

Hands-on

• Deliver on promises
• Continuously develop sound expertise, demonstrate commercial awareness and customer orientation
• Strive for simplification and clarity, and focus on value-adding activities
• Act decisively and be loyal to decisions
• Show dedication and endurance, follow through and pay attention to important details

 

Caring

• Cause zero harm to people and prevent accidents
• Reduce the negative impact of our activities and products on the environment
• Act within the law and comfortably within our own ethical policy
• Demonstrate social responsibility and contribute to sustainable development
• Respect the individual, help others to succeed and contribute to a positive working environment

 

Corporate structure.

 Production map.

Statoil produces and sells gas and oil around the world.  It has operations in 35 countries and territories. Statoil has interests in real estate in many countries throughout the world. However, no individual property is significant. 

 

Competitive position

There is intense competition in the oil and gas industry for customers, production licences, operatorships, capital and experienced human resources. Statoil competes with large integrated oil and gas companies, as well as with independent and state-owned companies, for the acquisition of assets and licences for the exploration, development and production of oil and gas, and for the refining, marketing and trading of crude oil, natural gas and related products. Key factors affecting competition in the oil and gas industry are oil and gas supply and demand, exploration and production costs, global production levels, alternative fuels, and environmental and governmental regulations. Statoil's ability to remain competitive will depend, among other things, on the company's management continuing to focus on reducing unit costs and improving efficiency, and maintaining long-term growth in reserves and production through continuing technological innovation. It will also depend on our ability to seize international opportunities in areas where our competitors may also be actively pursuing exploration and development opportunities. 

Proved oil and gas reserves:

 

 

 

 

 

 

 

 

3.3 Comparing companies on measurement parameters.

Key figures for Metalfrio:

Current P/E Ratio(ttm)	-
Estimated P/E(12/2013)	39.3750
Relative P/E vs. IBOV
Earnings Per Share (BRL) (ttm)	-0.1984
Est. EPS (BRL) (12/2013)	0.0800
Market Cap (M BRL)	130.53
Shares Outstanding (M)	41.44
30 Day Average Volume	19,343
Price/Book (mrq)	0.5157
Price/Sale (ttm)	0.1685
Dividend Indicated Gross Yield	-%
Cash Dividend (BRL)	0.2337
Dividend Ex-Date	06/29/2011
Earnings Announcement	02/25/2014

 

 

Key figures for statoil:

(in NOK billion, unless stated otherwise)	2012
Financial information
Total revenues and other income	723.4
Net operating income	206.6
Net income	69.5
Bonds, bank loans and finance lease liabilities	101.0
Net interest-bearing liabilities before adjustments	39.3
Total assets	784.4
Share capital	8.0
Non-controlling interest	0.7
Total equity	319.9
Net debt to capital employed ratio before adjustments	10.9%
Net debt to capital employed ratio adjusted	12.4%
Calculated ROACE based on Average Capital Employed before adjustments	18.7%
Operational information
Equity oil and gas production (mboe/day)	2,004
Proved oil and gas reserves (mmboe)	5,422
Reserve replacement ratio (three-year average)	1.0
Production cost equity volumes (NOK/boe, last 12 months)	42
Share information
Diluted earnings per share NOK	21.60
Share price at Oslo Stock Exchange on 31 December in NOK	139.00
Dividend paid per share NOK (1)	6.75
Dividend paid per share USD (2)	1.21
Weighted average number of ordinary shares outstanding (in thousands)	3,181,546

 

 

Both companies are leaders in their home countries but they have different field of specialization. So we can’t compare company which produces refrigerators and gas/oil company.  But (for example) Statoil got 21.60 NOK per share and the Metalfrio got loss from their shares.  
As a whole we can see that Statoil’s business activity was more profitable and successful than Metalfrio’s activity.  Statoil’s strategy resulted in their higher position on global market; also they made some joint ventures with Russian company Rosneft.  Metalfrio made joint venture in Russia too, but did it lead the company to successes? The answer is yes. But if the joint venture in Russia was a small step in Statoil’s global policy, for the Metalfrion joint venture in Russia was a great stage in company’s development.  
In summary we can say that these two companies are absolutely different and it’s hard to compare them. But if we look through the key figures we’ll see the domination of Statoil.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.4 Level of presence of these companies in Russia

Brazil Company «Metalfrio» in Russia

In conjunction with the purchase of the assets of the Caravell/Derby group, Metalfrio purchased an 80.0% stake in the capital stock of Metalfrio Russia, which was a Danish holding company holding an 80.0% stake in the Caravell/Derby group’s operations in Kaliningrad, Russia, through a joint venture with the IO Fund. In 2008, Metalfrio started producing upright freezers and refrigerators in Russia. The industrial facility in Kaliningrad is located in close proximity to customers in the Eastern European market, and benefits from both tax incentives and competitive costs of labor, equipment parts, raw materials, shipping and tax incentives.

 

History 
Plant in the Kaliningrad region for the production of refrigeration and freezing equipment was established in 2005 with the participation of the Danish investment fund. He invested in an investment project for Eastern Europe 163.6 million euros (about 27 million dollars) in the production of refrigeration equipment. Great help in the organization of production have Danish experts. Then the company was conducted mainly " screwdriver assembly ": Denmark comes ready body , which are then aggregated , and are supplemented with glasses, baskets , castors , etc. Today, in those buildings, which began with the plant, is a warehouse of materials and components. In 2007 Caravell / Derby joined the international group Metalfrio Solutions. The new owners have appreciated the economic and geographical position of the Russian factory. It is located in the special economic zone and has a favorable logistical location, access to the sea, which opens up opportunities and stimulate sales in Russia and the near abroad. From this moment Metalfrio invests in Kaliningrad plant very heavily. Were built new premises and installed new production lines. Production capacity increased by more than 4 times. Today the factory is fully mastered the entire process.

 

Production culture 
On the territory of the Kaliningrad region and the workers have high production. This fully applies to the plant Metalfrio Solutions: thanks to a clear and well thought-out organization of labor productivity is among the highest. At present, the company employs 180 people, all of them residents of the Kaliningrad region. CEO Marcelo Passadore plant came from Brazil three years ago, but is fluent in Russian. Today, production capacity is up to 140,000 pieces of equipment per year. Sales volume increases every year: 2009 - 29 655 pcs. , 2010 - 37 500 pcs., Plans for the 2011 - 45 000 pieces.

 

Norwegian company “Statoil ASA” in Russia.

Russia, where Statoil has been present for over 20 years is an important area for Statoil’s international expansion. Statoil is a partner in the Kharyaga oil field development project in the Nenets Autonomous District.  
Their strategic cooperation with Rosneft includes joint exploration in the Russian Barents Sea and the Sea of Okhotsk, and a Pilot study on a heavy-oil onshore asset in West Siberia. The two companies have also been awarded interests in the license PL713 in the Norwegian Barents Sea and will start joint exploration on the Norwegian Continental Shelf.  
The cooperation agreement with Rosneft is an important milestone for in Statoil’s ambition to expand its engagement with Russian partners and build a strong long-term position in Russia.

 

They believe Statoil can make a significant contribution to further development of the Russian oil and gas industry based upon our 40 years of experience in developing complex projects in harsh environments, strong safety and security performance and leading technological expertise.