3Q11 Results Presentation
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3Q11 Results Presentation Presentation Transcript

  • 1. 3Q11 RESULTS PRESENTATIONNovember 16th, 2011
  • 2. Participants Bento Moreira Franco CEO Sergio Malacrida CFO Fabio Tsubouchi Investor Relations and Corporate Finance Officer 2
  • 3. 3Q11 Highlights Creation of one of Brazil’s largest grain producers, with more than 342,000 hectares under control and 274,000 Merger of Vanguarda hectares expected to be planted in the 2011/12 crop. Management restructuring, resulting in the formation of the team with expertise and performance needed to New Management run the new strategic plan, in line with the focus on grain production Divestment of non- Sale of non-core assets in 3T11 totaling R$ 155.8 million, improving the capital structure and sharpening the core assets focus on agribusiness Integration plan Company’s integration plan, aiming to capture financial, operational and administrative synergies from the development merger of Vanguarda Participações New risk management Creation of a internal treasury committee with an independent member, responsible for implementing and policy integrated risk policies and financial planning Single agribusiness company included in the Bovespa Index, with a daily average trading volume of $ 17.2 Liquidity million in the last 12 months Market Maker BTG Pactual hired as the new market maker for VAGR3 shares, effective as of fnovember 21 (subsequernt event) On October 31, 2011, the adjusted net debt was reduced from $ 101.3 million when compared to the value of Reduction of Net Debt 30 September 2011 (subsequent event) 3
  • 4. New Strategic Plan • New management with the aimed expertise to • Scale gaind in the purchase of inputs and equipment execute the integration bettween the agricultural • Better equipment usage and financial intelligence • Diversification of climate risk, presence in 6 states  CEO: Bento Moreira Franco (MT, BA, PI, Go, MG and CE)  CFO: Sergio Malacrida • Dilution of general adn administrative  IRO: Fabio Tsubouchi expenses: concentration of activities in São Paulo and Nova Mutum and New Integration deactivation of Itumbiara and Cuiabá offices Management and Synergies ENERGIA • Sale of non-core assets ENERGIA • Interest in Tropical Bioenergia for the amount • Active management of cash, with of R$ 60 million Focus on the Financial plans to improve capital structure grain sector • Financial control integrated into the • Itumbiara Oil Factory (cotonseed crushing Management field, allowing a fast decision- unit for R$ 40 millions(and potentiall earn- (divestment of non- out of R$ 20 million) core assets) and Control making • Rosário do Sul biodiesel unit and São Luiz • Hedge policy: creation of a Gonzaga crushing unit for R$ 55.5 million internal treasury committee with an (subsequent event) independent member • Total: R$ 155,8 million 4
  • 5. Strategic Location os AssetsClimate risk diversification and better equipment usage Biodiesel Plant Biodiesel Plant Production capacity: 129,600 m³/year Production capacity : 129,600 m³/year Owned Area – 11,417 ha Leased Area – 50,000 ha Owned Area – 9,683 ha MA CE PI MT TO BA GO Owned Area 18,499 ha Leased Area 28,091 ha Owned Area – 89,639 ha MG Leased Area – 118,212 ha Biodiesel Plant Cottonseed Crushing Unit Production capacity : 129,600 m³ /year Crushing capacity: 75,000 ton /year Owned Area – 2.464 ha Leased Area – 8.486 ha Leased Area – 5.976 ha  The Company has 1,702 agricultural machinery and equipment 8 55
  • 6. Crop 2011/2012Increase in the planted area and higher participation in the 2nd crop Obtained Crop Estimated Crop Mix of Cultures Share (%) Δ (%) 2010/11 (ha) 2011/12 (ha) Cotton 18,726 49,588 18% 165% st 1 Crop 15,572 32,332 12% 108%  Merger of Vanguarda Participações st 2 Crop 3,154 17,256 6% 447% resulted in an increase of approximately 229% of the total area Soybean 52,770 162,718 59% 208% of the Company Corn 7,069 54,582 20% 672% st 1 Crop 1,213 3,010 1% 148%  Soyabean is still the main agricultural st 2 Crop 5,856 51,572 19% 781% product of the Company, with 59% of total planted area Other Cultures 4,692 7,663 3% 63% Total Area 83,257 274,551 100% 230%  With the merger of Vanguarda Participações, the percentage of 2nd Total 1st Crop(**) 74,247 204,723 crop increased from 12% to 34% st Total 2 Crop(**) 9,010 68,828 st % 2 Crop 12% 34%(**) Non considered“Other Culturas” 66
  • 7. Summary of Results Book Value Book Value Summary of Results ( ) ( ) 3Q11 ** VA (%) 3Q10 VA (%) HA (%) 9M11 ** VA (%) 9M10 VA (%) HA (%)Gross Revenue 309,730 111.0% 110,802 117.6% 179.5% 758,245 110.9% 404,013 114.9% 87.7%Net Revenue 279,138 100.0% 94,253 100.0% 196.2% 683,834 100.0% 351,495 100.0% 94.6%Gross Profit (Loss) 12,001 4.3% 9,105 9.7% 31.8% 35,251 5.2% 56,567 16.1% -37.7%Operating Expenses (29,092) -10.4% (13,254) -14.1% 119.5% (64,533) -9.4% (34,085) -9.7% 89.3%Operating Income Expenses (EBIT) (17,091) -6.1% (4,149) -4.4% 311.9% (29,282) -4.3% 22,482 6.4% -Financial Results (83,094) -29.8% 1,171 1.2% - (64,818) -9.5% 2,331 0.7% -Net Income (loss) (70,251) 0 -25.2% (2,590) 0.0% 0 -2.7% 0.0% 0.0%- (68,259) 0 -10.0% 20,948 0.0% 0 6.0% 0.0% 0.0%-Gross Debt (672,775) - (60,198) - - (672,775) - (60,198) - -Availability 55,504 - 140,252 - -60.4% 55,504 - 140,252 - -60.4%Net Debt (617,271) - 80,054 - - (617,271) - 80,054 - -EBITDA (3,102) -1.1% (904) -1.0% - (2,138) -0.3% 30,642 8.7% -EBITDA adjusted (*) (3,793) -1.4% (904) -1.0% - 6,107 0.9% 30,642 8.7% - 7
  • 8. Financial Result  In 3T11, we registered a net financial loss of R $ 83.1 million, compared with net financial revenue of R $ 17.0 million in 2Q11. This variation is mainly due to the appreciation of the U.S. dollar against the real, especially in September. Composition of Financial Results 2Q11 vs. 3Q11  Note, however, that the impact of foreign exchange variation, which was a negative R$62.9 million, does not have any direct impact on the Company’s cash in the short term. This amount represents the accounting effect of exchange variation, mainly on the Company’s debt and will be disbursed upon debt maturity. If the exchange rate was calculated considering the current dollar value (U.S. $ 1.75), its negative effect on the financial result would be reduced from $ 21.0 million 8
  • 9. Indebtedness  Vanguarda Agro’s gross debt,on eptember 30, 2011, totaled R $ 672.8 million. This amount will be repaid upon receipt of values ​from the sale of assets, made ​in 2010 and 2011 in the amount of $ 171.4 million Receivables Debt (in R$ thousands) 9/30/2011 10/31/2011(1) Divestment Asset 09/30 10/31Short Term 372,566 362,944 Tropical Bioenergia 60,300 60,300Long Term 300,209 265,858 Edéia Farm (GO) 97,286 97,286(=) Total indebtedness 672,775 628,802 Itumbiara Oil Factory 13,800 13,800Avaliability (55,504) (57,365) Total 171,386 171,386(=) Net Cash / Net Debt 617,271 571,437 Rosário do Sul (RS) biodiesel plant Receivable Update - sales of asset (171,386) (226,841) - 55,455 São Luiz Gonzaga (RS) crushing unit(=) Net Cash / Net Debt Adjusted 445,885 344,596 Reduction of R$ 101,289 thousand ¹ Non audited value; Adjusted net debt consider the result of Maeda (controller) 9
  • 10. Stock Performance, Liquidity and IndicesDaily average trading volume in the last 12 months of R$ 17 million  Vanguarda Agro shares (VAGR3) ended the 3Q11 quoted at R$ 0,57 (R$ 0,59 on november 14, 2011)  The VAGR3 share depreciated 18.6%, from R$0.70/share at the close of June 2011 to R$0.57/share at the close of September 2011. In the same period, the benchmark Ibovespa index lost 16.2%.  The daily average trading volume in the last 12 months was R$ 17 million.  The Company is the only agribusiness company focused on grain production that is included in the Bovespa index and other major indices of BMF&BOVESPA. 10
  • 11. Próximos Passos Vanguarda Day Non deal roadshows Coverage beggining (sell side) Market maker (BTG) Activie visit to investors 11
  • 12. Investor Relations Contacts Fabio Tsubouchi Investor Relations Officer Maria Luisa Soares de Almeida Investor Relations Coordinator Bruno Fernandes Jardim Investor Relations Analyst E-mail: ri@v-agro.com.br Site: www.v-agro.com.br/ri Telephone: (0xx11) 3137-3114 12