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Tereos apresentacao 1_t13_eng Tereos apresentacao 1_t13_eng Presentation Transcript

  • Tereos Internacional First Quarter 2012/13 Results Conference Call Presentation São Paulo – August 10th, 2012
  • Quarter Highlights Q1 2012/13 Financial Results Operating Segment Review Cash Flow and Debt Position Outlook
  • Quarter Highlights
  • 4 Q1 2012/13 – Key Takeaways R$370 million Capital Increase: 100% subscribed  New free float: conclusion of the shareholder restructuring of the controlling shareholder of Tereos Internacional with cooperatives of cereal growers joining directly the Company • The direct participation of Tereos in Tereos Internacional is now of 69.6% and free float was thus increased from 10.7% to 29.3% (after capital increase)  Share capital increase: R$370 million, subscribed at 100% • Proceeds will finance cereal expansion and the diversification of production in the European cereal activities Historical Shareholders TEREOS 29.3% 1.1% New float 69.6% 0.4% 11.0% C.A. d’Hochefelden Theal Noralliance Dév. Axereal Noriap Agrial Uneal Agralys Epis-Centre Acolyance Thémis Agro-Industrie 0.4% 1.0% 0.3% 0.8% 6.5% 1.2%2.3% 1.0% 3.2% 1.2% Other Minority Shareholders
  •  Stable revenues: R$1.7 billion : -1.9% y-o-y, at constant currency +4.6% y-o-y, as reported • Favorable pricing in practically all our products, except for Brazilian ethanol, partially compensating the reduction in volumes  Adjusted EBITDA: R$156 million : -26.7% y-o- y, at constant currency -24.3% y-o-y, as reported • Delayed production in Brazil due to unusual weather conditions impacting volumes in the quarter 5 Q1 2012/13 – Financial Highlights
  • Sugar:  Unusual rainfalls in Brazil  Rebound in world prices in Q1 12/13  Brazilian domestic prices remained stable, less impacted by world prices swings Starch:  A severe drought in the US and in Europe is driving corn and wheat prices up  EU demand for starch and derivatives is flat in food, declines in the industrial sector (corrugated paper) Ethanol:  Brazil has faced another quarter of lackluster prices in the local market  EU: a growing market, but facing headwinds from lower gasoline consumption  US ethanol prices rallied at the end of June as a result of concerns over drought in the Midwest Q1 2012/13 – Market Fundamentals 6 Source: Bloomberg 400 470 540 610 680 750 Apr-11 Aug-11 Dec-11 Apr-12 NY#11 LIFFE #5 US$/MT 400 500 600 700 800 700 1000 1300 1600 1900 Apr-11 Aug-11 Dec-11 Apr-12 Brazil ESALQ Europe Rotterdam R$/m³ €/m³ 170 190 210 230 250 270 Apr-11 Aug-11 Dec-11 Apr-12 Corn Matif Wheat Matif €/MT
  • Q1 2012/13 Financial Results
  • 1604 1678 (94) +7 +103 +59 Q1 2011/12 Brazil Indian Ocean Starch Europe Ethanol Europe Q1 2012/13 1604 1678 +106 (51) +32 (13) Q1 2011/12 Currency Volume Price & Mix Others Q1 2012/13 Q1 2012/13 – Revenues Stable Turnover Despite Delay in Brazilian Crushing Season 8 +4.6% Net Revenues (R$ MM)  Sugarcane Revenues: R$560 million (33.4% of total)  Brazil: R$408 million -19%, as reported production delayed onto 2nd, 3rd and 4th quarters  Indian Ocean: R$152 million +5%, as reported one shipment from Reunion Island postponed to 2nd quarter, Mozambique performing well  Cereal Revenues: R$1,118 million (66.6% of total)  Starch & Sweeteners: R$797 million +15%, as reported price & mix:+4%, volume: +1%  Alcohol / Ethanol Europe: R$322 million +23%, as reported stable prices, increase in trading volumes +4.6%
  • 206 (71) +9 +23 (12) +1 156 Q1 2011/12 Brazil Indian Ocean Starch Europe Ethanol Europe Holding Q1 2012/13 Q1 2012/13 - Adjusted EBITDA Delay in Brazilian crop and increase in cereal costs (Alcohol & Ethanol Europe) 9  Sugarcane Adjusted EBITDA: R$57 million (36.4% of total) • Brazil: delayed production due to heavy rainfalls. • Indian Ocean: higher prices coupled with better volumes in Mozambique  Cereal Adjusted EBITDA: R$102 million (65.0% of total) • Starch Europe: increase in Adjusted EBITDA margin (9.3% in Q1 2012/13 vs 7.4% in Q1 2011/12) • Ethanol Europe: increase in cereal costs partially offset by higher trading volumes  Adjustments • Biological assets (-R$7 MM), financial instruments (+R$1 MM) Margin 9.3% Adjusted EBITDA (R$ MM) Margin 12.9%
  • Operating Segment Review
  • Sugarcane Brazil - Indian Ocean
  • Ethanol Sales (‘000 m³) Energy Sales (‘000 MWh)Sugarcane Crushing (MM t) Sugar Sales (‘000 t) 12  Sugarcane crushing: 4.7 million tons in Q1 2012/13 (60% from sugarcane suppliers) Average yield to date of 80 tons of cane per hectare (3.8% above budget)  Production: Sugar: 317,000 tons 60% of mix Ethanol: 132,100 m³ 40% of mix  Cogeneration: volume sold increased to 94 GWh (+11.3%) -17.7% YoY -18.2% YoY +11.3% YoY Sugarcane Brazil – Production & Sales Lower crushing volumes due to weather-related issues 5.8 7.8 2.6 4.7 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13 -20.1% YoY 305 374 375 249 251 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13 140 99 91 151 115 40 40 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13 84 106 90 86 94 Q111/12 Q211/12 Q311/12 Q411/12 Q112/13 Extraordinary rainfall led to a delay in sugarcane crushing into the following quarters but allow an increase in crushing forecast for 2012/13 season from 17.5 million to 18.2 million. The season is expected to end in the first week of December
  • 502 408 +18 (52) (31) (36) +7 Q1 2011/12 Price & Mix Volume Price & Mix Volume Others * Q1 2012/13 Sugarcane Brazil – Q1 Financials Revenues benefitting from high prices and a weak Real, ethanol prices return to normal levels * includes Cogeneration, Agricultural Products and Hedging Key Figures In R$ Million Q1 2012/13 Q1 2011/12 Change Revenues 408 502 -19% Gross Profit -14 89 -116% Gross Margin -3.5% 17.8% EBITDA 32 136 -77% EBITDA Margin 7.7% 27.0% Adjusted EBITDA 41 112 -64% Adjusted EBITDA Margin 10.0% 22.3% CAPEX 154 139 11%  Adjusted EBITDA: R$41 million • Fair value of biological assets: -R$10.2 million • Financial instruments: R$1.0 million • Adjusted EBITDA Margin1 including tilling as depreciation: 17.1%  CAPEX: R$154 million: including R$47 million of plantation. Thanks to the rains, 53% of the winter planting program has been completed  Sugar: 58.8% of total net revenues • Volumes decreased -17.7% to 250,500 tons • Sugar prices were at 956.4 R$/ton (Y-o-Y: +11.4%)  Ethanol: 31.9% of total net revenues • Volume sold decreased 18.2% to 115,000 m3 • Prices were at 1,136.2 R$/m3 (Y-o-Y: -19.0%)  Cogeneration: energy revenues amounted R$14.8 million (Y-o-Y: +30.0%) 13 (1) Tereos Internacional allocates tilling expenses as cost. If tilling expenses were allocated as investment & ethanol resales excluded, Adjusted EBITDA would have reached R$69.5 million. Net Revenues (R$ MM) Sugar Ethanol
  • 65 315 275 43 116 Q111/12 Q211/12 Q311/12 Q411/12 Q112/13 Sugarcane Indian Ocean – Production and Q1 Financials Early start in Mozambique, stable results in Réunion Island 14 La Réunion Sugarcane Crushing (’000 t) Mozambique Sugarcane Crushing (‘000 t) +78.8% YoY Reunion Island  No sugarcane crushing, season starting in July • Sugar sales: 58,800 tons  Revenues • Q1 2012/13: R$140.9 million vs R$141.6 million, as reported Due to a delay of one shipment to Europe  Adjusted EBITDA • Q1 2012/13: R$25.9 million vs R$18.8 million, as reported • Adjusted EBITDA margin 18.4%, 510 bps increase thanks to higher selling prices  CAPEX: R$29 MM in Q1 2012/13 allocated for maintenance costs and regular replacement of industrial equipment Mozambique  Sugarcane crushing: 116,000 tons & Sugar production: 9,000 tons • Earlier start as larger crop expected (850,000 tons, +21.4%) • Better industrial recovery  Revenues • Q1 2012/13: R$11.2 million (2.8x Y-o-Y)  Adjusted EBITDA • Traditionally negative due to seasonality • R$2.1 million improvement Y-o-Y, as reported  CAPEX: R$7.7 MM in Q1 2012/13 allocated for ongoing irrigation expansion, planting program and factory improvements Key Figures In R$ Million Q1 2012/13 Q1 2011/12 Change Revenues 152 146 5% Gross Profit 35 20 72% Gross Margin 23.1% 14.0% EBITDA 19 8 140% EBITDA Margin 12.4% 5.4% Adjusted EBITDA 16 7 133% Adjusted EBITDA Margin 10.6% 4.7% CAPEX 37 32 15% 989 898 0 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13
  • New Cereal Segmentation Starch & Sweeteners Alcohol & Ethanol Europe
  • New Segmentation for The Cereal Division To better reflect the evolution of the segment 16 “Starch & Sweeteners” “Alcohol & Ethanol” Marckolsheim Nesle Aalst Saragosse Saluzzo Selby Haussimont BENP DVO PreviousSyral Previous BENP/DVO New Segmentation:
  • 221 221 204 210 217 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q112/13 Starch & Sweeteners - Production and Sales Slight increase in volumes sold, including perimeter effect  Cereal grinding: 723,000 tons -2.2% vs. Q1 2011/12 (excluding Haussimont/Syral Halotek)  Sales volumes • Starch & Sweeteners: slight increase (+2.3% Y-o-Y) due to Haussimont’s integration (8,600 tons sold in the quarter, equivalent to 2% of the volumes sold) • Co-products: lower gluten sales (-1.8% Y-o-Y), in line with the reduction in cereal grinding 17 Cereal Grinding (‘000 t) Starch & Sweeteners Sales (‘000 t) Co-products Sales (‘000 t) -2.2% YoY +2.3% YoY -1.8% YoY 739 720 678 710 723 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q112/13 440 424 392 433 450 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13
  • Starch & Sweeteners – Q1 Financials Benefits from perimeter increase and price adjustments Key Figures In R$ Million Q1 2012/13 Q1 2011/12 Change Revenues 797 694 15% Gross Profit 177 126 41% Gross Margin 22,2% 18,1% EBITDA 74 36 106% EBITDA Margin 9.3% 5.2% Adjusted EBITDA 74 51 44% Adjusted EBITDA Margin 9.3% 7.4% CAPEX 77 32 138% 18 Net Revenues (R$ MM) +14.8%  Revenues: +14.8% • Due to higher prices (+6% in local currency) and integration of Haussimont & Syral Halotek in the perimeter (R$12.7 million)  Adjusted EBITDA: R$74 million, up R$23 million • Back to normal EBITDA margin after a first quarter 2011/12 with expensive raw material and compressed margins • Financial instruments: R$0.3 million  CAPEX: R$77 million allocated for starch project in Brazil and diversifications in Europe 694 797 +66 +9 +27 +1 Q1 2011/12 Currency Volume Price & Mix Others Q1 2012/13
  • 115 110 109 134 110 40 26 62 61 70 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13 Trading Own Sales 156 136 171 195 180 Alcohol & Ethanol - Production and Sales Slight increase in volumes sold helped by ethanol trading  Cereal grinding: 209,000 tons -4.3% vs. Q1 2011/12 • 7 stoppage days at BENP Lillebonne plant in order to connect the new gluten production line and for maintenance (-20,000 tons of cereals grinded) • Positive impact of Selby start-up (4% of the quarter’s volume)  Sales volumes • Alcohol & Ethanol: 15.4% increase, sales from beet ethanol (Tereos) compensating for the drop in own ethanol sales • Co-products: lower co-product sales, linked to lower production in Lillebonne (7 days stoppage) 19 Cereal Grinding (‘000 t) Ethanol & Alcohol Sales (‘000 m3) Co-products Sales (‘000 t) -4.6% YoY +15.4% YoY -11.8% YoY 219 218 220 214 209 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13 68 59 66 62 60 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13
  • Ethanol own sales 57% Ethanol traded 33% Co-products and other 10% 262 322 +25 +34 0 +1 Q1 2011/12 Currency Volume Price & Mix Others Q1 2012/13 Alcohol / Ethanol Europe – Q1 Financials  Alcohol & Ethanol sales: 110,000 m3 + 70,000 m3 from Tereos trading  Gross profit: R$38 million and 11.8% margin  CAPEX: R$77 MM mainly allocated for the gluten project at BENP Lillebonne  Adusted EBITDA margin excluding trading would be 12.7% 20 Net Revenues (R$ MM) +22.5% Revenue Breakdown by Product Key Figures In R$ Million Q1 2012/13 Q1 2011/12 Change Revenues 322 263 +23% Gross Profit 38 69 -45% Gross Margin 11.8% 26.3% EBITDA 27 40 -31% EBITDA Margin 8.5% 15.1% Adjusted EBITDA 27 40 -31% Adjusted EBITDA Margin 8.5% 15.1% CAPEX 77 42 +85%
  • Cash Flow, Debt Position
  • Adjusted EBITDA Adjustments EBITDA Depreciation & Amortization Operating Income Net Financial Expenses Net Income Before Tax Income Tax Share of Profit in Associates Net Income Minority Interest Net Income Group Share 22 156 From Adjusted EBITDA to Net Income – Q1 2012/2013 (6) 150 (163) (13) (79) +16 +0 (46) (76) (92) +31 Impact of FX: -R$36 million (weaker BRL vs USD and EUR) Higher depreciation due to longer intercrop period at Guarani (-R$22.3 million, Y-o-Y)
  • Cash Flow In R$ Million Q1 2012/13(1) Adjusted EBITDA 156 Working capital variance (92) Other operating (including income tax paid) (50) Operating Cash Flow 14 Financial interests (63) Dividends paid and received (48) Capex (369) Increase in capital 370 Others 19 Free Cash Flow (77) Forex impact (185) Acquisition & Perimeter impact (32) Net debt variation (294) 23 Q1 Cash Flow Reconciliation Capital Increase to Fund Cereal Expension and Diversification  100% contribution to increase in capital (R$370 million)  Main CAPEX: Brazil: R$154.4 million Cereals: R$153.9 million Indian Ocean: R$37.2 million (1) Including increase in capital of R$370 million.
  • Debt 9.5% increase mostly due to currency effect  Net Debt / Adjusted EBITDA: 3.7x vs 3.2x in March, 2012  Currency impact due to the strengthening of USD and Euro against Real: R$261 million 24 Gross Debt Breakdown by Currency Leverage (R$ MM) (Net Debt/ Adjusted EBITDA) Debt In R$ Million June 30, 20121 March 31, 2012 Change Current 1,578 1,291 287 Non-current 2,550 2,384 166 Amortized cost (24) (25) 1 Total Gross Debt 4,103 3,650 453 In € 1,540 1,402 138 In USD 1,846 1,652 194 In R$ 677 557 120 Other currencies 65 64 33 Cash and cash Equivalent (792) (624) (168) Total Net Debt 3,311 3,026 285 Related Parties Net Debt 22 17 5 Total Net Debt + Related Parties 3,333 3,043 290 Real 16% US Dollar 45% Euro 37% Others 2% 3.001 2.293 2.150 2.498 3.084 3.223 3.043 3.333 4.8x 3.0x 2.5x 2.6x 3.3x 3.4x 3.2x 3.7x 0 500 1000 1500 2000 2500 3000 3500 2 4 6 08/09 09/10 10/11 Q1 11/12 Q2 11/12 Q3 11/12 Q4 11/12 Q1 12/13 (1) Net debt as at June 30th 2012 restated including increase in capital of R$370 million.
  • Outlook
  •  Sugarcane  Brazil: increase in crushing estimative • Rain impact on production to be compensated during the crop • Investments in planting for the last 2 years combined to more favorable weather : increase in crushing forecast for 12/11 up to 18.2 million tons (+10.3% above 11/12)  Indian Ocean: favorable pricing environment for our products • Mozambique: increase in production due to more sugarcane availability • Réunion Island: stable crushing  Cereals:  Europe: multi-products facilities and niche markets • Gluten production and dextrose project in BENP Lillebonne and cogeneration and specialties in Zaragoza  Emerging Markets: Greenfields projects underway • Brazil: Syral-Halotek corn plant pilot test schedule for Q4 2012/13 • China: JV with Wilmar established, first project under construction 26 Outlook
  • 27 Investor Relations Phone: +55 (11) 3544-4900 ir@tereosinternacional.com