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Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
Conference call presentation 200809
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Conference call presentation 200809

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  1. Q4 & Full Year 2008/09 Results June 24th, 2009
  2. 2 Disclaimer This presentation contains forward-looking statements related to the prospects of our business and estimates for operating and financial results. Those related to growth prospects of Açúcar Guarani S.A. are merely projections and, as such, based exclusively on the expectations of the management concerning the future of the business. Such forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian and international economies and the industry and are therefore subject to change without prior notice.
  3. 0 200 400 600 800 Q107/08 Q207/08 Q307/08 Q407/08 Q108/09 Q208/09 Q308/09 Q408/09 3 Expected deficit of global sugar market in 2009 world crop primarily linked to India’s decreased level of production and EU imports Increase of sugar prices and upward trend in second half Strong depreciation of the BRL versus the US dollar since September, 2008 Sugar Market Overview in 2008/09 Guarani’s Sugar Average Prices (R$/ton)
  4. 0 200 400 600 800 Q107/08 Q207/08 Q307/08 Q407/08 Q108/09 Q208/09 Q308/09 Q408/09 4 Increase of 14.6% in Brazilian ethanol consumption to 20.1 billion liters driven by record sales of flex fuel vehicles Growing ethanol prices during most part of the crop Fall in prices in the inter- harvest period (4th quarter) World ethanol market: decrease in prices due to slump in oil prices and credit crunch Ethanol Market Overview in 2008/09 Guarani’s Ethanol Average Prices (R$/m³)
  5. 5 13.7% increase in volume of sugarcane crushed in 2008/09 Sugarcane Crushed (MM t) 4.1 4.1 8.6 10.3 2007/08 2008/09 Own 3rd Party 14.4 12.7 Increase mainly due to: São José plant: +0.4 million tonnes Tanabi plant: +0.8 million tonnes Strategy of third party suppliers proved timely in context of credit crisis
  6. 6 Record Ethanol Production in 2008/09 and Stable Sugar Production Ethanol Production (‘000 m³) Sugar Production (‘000 t) 601 565 564 592 2007/08 2008/09 Refined Non-Refined 1.165 1.157 -0.7% 77 111 318 385 2007/08 2008/09 Anhydrous Hydrous 496 395
  7. 7 Net Revenue (R$ MM)1 Growth in net revenue driven by: Increased sales: sugar (+4.6%) and ethanol (+39.0%) Average increase in prices in Reais: sugar (+20.1%) and ethanol (+6.7%) 519.6 R$/ton, a growth of 13.6% Guarani’s Net Revenue breakdown was: Sugar: 60.6% Ethanol: 32.2% Other products: 7.2% Record Net Revenue of R$ 1.2 billion Driven by Higher Prices and Increased Volumes in 2008/09 565 709 254 37887 84 2007/08 2008/09 Sugar Ethanol Others 906 1,171 (1) 2007/08 figures have been reclassified and changed due to law 11638/07, as compared to figures previously disclosed.
  8. 157 228 17.3% 19.5% 16,0% 18,0% 20,0% 0 50 100 150 200 250 2007/08 2008/09 Adjusted EBITDA Adjusted Margin 8 Sharp increase of Adjusted EBITDA (+45.6%) because of higher sugar and ethanol prices Adjusted EBITDA margin of 19.5% versus 17.3% in 2007/08 Adjusted EBITDA measured per volume of TRS sold of 109.1 R$/ton in 2008/09, as compared with 87.6 R$/ton in 2007/08 (+24.5%) 45.6% increase in Annual Adjusted EBITDA to R$228.3 Million Adjusted EBITDA (R$ MM)1 (1) 2007/08 figures have been reclassified and changed due to law 11638/07, as compared to figures previously disclosed.
  9. 11 36 4.9% 11.1% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 0 5 10 15 20 25 30 35 40 4Q 07/08 4Q 08/09 Adjusted EBITDA Adjusted Margin 9 Adjusted EBITDA (R$ MM)1 Adjusted EBITDA: R$35.8 million (+241%) compared to Q4 07/08 Lower than Q3 08/09, impacted by normal business model cycle (third party sugarcane suppliers), with CONSECANA adjustments and inter-harvest costs and expenses effects Q4 Adjusted EBITDA: R$35.8 Million, +241% Adjusted EBITDA Margin1 (1) 2007/08 figures have been reclassified and changed due to law 11638/07, as compared to figures previously disclosed. 0% 10% 20% 30% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 06/07 07/08 08/09
  10. 10 Adjusted Net Result (R$ MM)1 Net Loss: R$291.0 million in 2008/09, compared with a net loss of R$46.6 million in the prior year Net loss impacted mainly by: Non-cash effect of the Real depreciation in relation to the US Dollar (R$278.9 million) Non-cash effect of the amortization of goodwill resulting from the acquisition of share capital in Andrade, Tanabi and Sena plants (R$96.2 million) High financial expenses due to higher interest rates on short-term debts, specially in Q4. Capital increase to positively impact on financial expenses Net Result impacted by the Real Depreciation 35 (11) 2007/08 2008/09 (1) 2007/08 figures have been reclassified and changed due to law 11638/07, as compared to figures previously disclosed.
  11. 11 R$238.8 million capital increase strengthened Guarani’s balance sheet and cash position to R$397.7 million at the end of March, 09 Short-term debt net of cash and cash-equivalents totaled R$144.3 million, down 63.4% versus R$393.8 million at December, 08 Guarani successfully renegotiated contracts and contracted new MT loans Net Debt/Adjusted EBTIDA ratio fell to 4.4x in March, 09 versus 6.2x in December, 08. Excluding intercompany loans, Net Debt/Adjusted EBITDA ratio stood at 2.2x Net Debt Reduced by 20.5% to R$1.0 Billion at March 31, 2009 Net Debt per Term1 Net Debt per Currency1 Foreign Currency 77% BRL 23% (1) Excluding Intercompany Loans Current 28% Non- Current 72% (1) Including R$124.4 million related to the Mozambique plant
  12. 12 CAPEX: Focus on Cost Reduction, Efficiency and Sugarcane Plantations Q4 CAPEX (R$ MM)1 Strong discipline on CAPEX reduction Focus on plantation CAPEX to ensure adequate raw material availability and productivity Selective CAPEX to eliminate bottlenecks and further develop marginal capacity to lower fixed costs (São José and Tanabi plants) Annual CAPEX (R$ MM)1 302 66 66 30 4Q 07/08 4Q 08/09 PPE Planting 368 96 677 172 95 108 2007/08 2008/09 PPE Planting 772 280 1) CAPEX does not consider maintenance.
  13. 13 Global deficit will continue to drive increase in sugar prices as India’s production should recover slowly in the next two crop seasons Stable growth in global demand, not affected by crisis Return to equilibrium expected in 2010/2011 when Indian production should be re-established (ISO) Domestic market: Increased production and export levels expected in 2009/10 Sugar Market: Positive Trend for 2009/10 Crop Raw Sugar Prices (NY 11) World Sugar Balance
  14. 14 Ethanol Market: FFV Sales and Ethanol Consumption Still Increasing Vehicles Sales by Fuel Type (Brazil) Domestic Market Sustained demand for ethanol due to attractive ratio between ethanol and gasoline prices at the pump Ethanol production in 2009/10 crop expected to increase although growth rate impacted by higher production of sugar International Market Outlook for ethanol prices in the short term is stable with a slight increase in the beginning of the US summer Europe remains a net importer of ethanol despite increases in production
  15. 15 Outlook: Guarani Solidly Positioned for 2009/10 to Overcome Financial Market Turmoil and Seize Opportunities Mix concentrated on sugar production to allow Guarani to take advantage of the upturn in sugar prices Sustained demand for ethanol due to attractive ratio between ethanol and gasoline prices at the pump. Opportunities to export to US Market Potential to further improve synergies between plants Partnership with Tractebel in Andrade plant to start operation from beginning of 2010 and provide stable cash generation Reduction in financial expenses due to capital increase and new MT loans Continued focus on balance sheet strengthening Strong commitment and support from Tereos, Guarani’s controlling shareholder
  16. Thank You! Reynaldo F. Benitez CFO and Investor Relations Officer Alexandre L. Menezio Investor Relations Manager Felipe F. Mendes Investor Relations Analyst Renato N. Zanetti Neto Investor Relations Analyst Leonardo T. Goes Investor Relations Intern phone: +55 (11) 3544-4900 e-mail: ri@aguarani.com.br website:www.acucarguarani.com.br/ir

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