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Tereos apresentacao 4_t12_2013_eng Presentation Transcript

  • 1. Tereos Internacional 2012/13 Year End Results São Paulo – June 13th, 2013
  • 2. 1. Financial Highlights 2. Major Developments 3. Market and Financial Update 4. Operating Segment Review 4. Cash Flow and Debt Position 5. Outlook 2 3 4 5 6 1
  • 3. 2012/13 Financial Highlights 3  Revenues : R$7.6 billion + 11.1%, as reported 4-year CAGR of 15.1%  Adjusted EBITDA*: R$869 million - 9.4%, as reported 4-year CAGR of 4.2%  Net Profit (group interest): - R$0.2 million Dividends: R$0.046 per share 1 * Adjusted EBITDA: EBITDA excluding items from discontinued operations, accounting effect of adjustments in the fair value of the financial instruments (including one-off accounting results for the trading derivatives booked in other operating item) and of the biological assets
  • 4. 2012/13 Key Initiatives and Major Developments 4  Agricultural & industrial competitiveness  Guarani 2015/16: efficiency/investment program in place  Agriculture: replanting program and mechanization  Cogeneration in Guarani: investments continued at Mandu and São José industrial plants  International development and product portfolio diversification  Syral Europe: start of dextrose production at Saragossa (Jan, 2013) and Lillebonne (Mar, 2013)  Syral Brazil: start of production trials at Palmital corn-based starch facility (May, 2013)  Syral China: start of construction of Dongguan wheat-based starch facility (Nov, 2012)  Growth  Sugarcane planting in Brazil: further expansion of surfaces  Starch production in China: extension of the partnership with the Wilmar Group to a broader portfolio of raw materials, now including corn and potatoes, together with the acquisition of a 49% stake in Tieling corn starch facility (closing expected to H2 13/14, pending regulatory approvals)  Finance  Shareholder reorganization & capital increase: corporate structure simplified (free float increase from 10.7% to 29.3%), together with a share capital increase of R$370 million, 100% subscribed  Capital injection from PBio at Guarani: R$212.2 million (PBio now owns 35.8%)  Refinancing at Tereos EU: syndicated credit facility of €450 million extended by 2 years to June 2017, simplifying the existing structure and covenant requirements 2
  • 5. Sugar:  Recovery of Brazilian production and exports in 2012/13 which improved 9% and 20%, respectively  Another global surplus pressuring prices: estimate of 6.1 million tonnes surplus for 2013/14 crop (April/March basis)  Price direction moving forward to be dependent on producers’ response to lower sugar prices and ethanol production mix in Brazil Starch:  Historical drought in the US led to a rally in corn prices in H2 2012  Brazil overtook the US as the largest corn exporter  Estimates for the new 2013/14 world crop are optimistic, pointing to a record corn and wheat production already weighing down on prices Ethanol:  Production and exports in Brazil increased in 2012/13; recent government incentives should shift mix towards ethanol production  Lower US corn prices should support producers’ margins and boost US production, which should lower imports from Brazil  T2 FOB Rotterdam prices were relatively flat as demand remained sluggish; EU Commission ruled against US imports and to review blending targets 5 Source: Bloomberg Market Highlights3 300 400 500 600 700 800 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 NY#11 LIFFE #5 US$/MT 170 190 210 230 250 270 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Corn Matif Wheat Matif €/MT 400 500 600 700 800 700 1000 1300 1600 1900 Jan-12 May-12 Sep-12 Jan-13 Brazil ESALQ Europe Rotterdam R$/m³ €/m³
  • 6. 6,876 7,640 +517 +161 +70 +17 2011/12 Currency Volume Price & Mix Others 2012/13 0 0 1,089 1,239 2,846 3,381 826 941 2,115 2,079 2011/12 2012/13 Brazil Indian Ocean / Africa Starch Europe Ethanol Europe Other 6,876 7,640 2012/13 – Revenues Starch & Sweeteners and Sugarcane volumes supporting revenues growth 6 Net Revenues (R$ MM) 3 +11.1%  Revenue growth supported by:  Higher sales volumes in sugarcane and Starch & Sweeteners segments (including Haussimont perimeter effect)  Higher prices for starch & sweeteners  But partially offset by:  Lower prices in the Brazilian sugar and ethanol business  Output decrease for the Alcohol & Ethanol Europe segment due to difficulties of gluten line start-up in Lillebonne
  • 7. -19 -9 151 71 246 223 158 190 424 393 2011/12 2012/13 Brazil Indian Ocean / Africa Starch Europe Ethanol Europe Other 959 869 2012/13 - Adjusted EBITDA Lower EBITDA mainly due to higher cereal prices and reduced ethanol volumes in Europe 7  Adjusted EBITDA down year-on-year as a consequence of:  Increase in cereal purchase prices not fully passed onto customers  Technical issues for the start-up of BENP Lillebonne gluten line lowering ethanol output  Lower prices in the Brazilian sugar & ethanol business  But partially compensated by:  Higher volumes in the sugarcane businesses (including higher energy sales in Brazil)  Positive price and mix effect in the Indian Ocean Adjusted EBITDA (R$ MM) 3 Margin 11.4%Margin 13.9% -9.4% 959 (31) +32 (22) (80) +11 869 2011/12 Brasil Oc. Índico / África Amido & Adoçantes Álcool & Etanol Outros 2012/13
  • 8. 7,640 752 678 779 865 2,701 2,511 3,156 3,754 239 540 826 941 1,319 1,957 2,115 2,079 2009/10 2010/11 2011/12 2012/13 Alcohol & Ethanol Europe Starch & Sweeteners Indian Ocean/Africa Brazil Net Revenues Evolution 4-Year CAGR: 15.1% 5,688 5,011 6,876 +58% +294% +39% +15% 3 R$ MM Note: based on old segmentation and as reported 8 4-year growth
  • 9. 81 51 95 10 395 292 302 285 13 93 158 190 281 428 424 393 -14 -19 -9 2009/10 2010/11 2011/12 2012/13 Alcohol & Ethanol Europe Starch & Sweeteners Indian Ocean / Africa Brazil Other 959 850 869 Adjusted EBITDA Evolution 4-Year CAGR: +4.2% 771 +40% 15x -28% -88% 3 R$ MM Note: based on old segmentation and as reported 9 4-year growth
  • 10. 249 251 401 380 376 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 4.7 8.1 5.4 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 Ethanol Sales (‘000 m³)Sugarcane Crushing (MM t) Sugar Sales (‘000 t) 10 +50.8% YoY -0.7% YoY Sugarcane Brazil – Production & Sales Renewal and expansion programs already contributing to higher crushing Own Sales Trading 4  Crushing  Recovery in sugarcane volume: 18.2 million tonnes processed (95% mechanized for own sugarcane) and expectation of c. 20 million tonnes for the next crop  Yields improving from 70 t/ha to 84 t/ha in 2012/13 but lower TRS (135 vs. 138 kg/tonne last year)  55,000 hectares planted in 2012/13  Average age of sugarcane: improving from 3.7 years in 2011/12 to 3.3 years in 2012/13  Flexibility of industrial set-up allowing focus on more profitable sugar production  Sugar: 1.5 million tonnes 64% of mix vs. 62% last year  Ethanol: 528,000 m³ 36% of mix  Progress on cogeneration  Annual volumes up 43%, with portion of volumes sold at higher spot prices  Expect to double own cogeneration sales in 2013/14 crop 151 115 99 143 150 40 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 Energy Sales (‘000 MWh) +88.9 YoY Own Sales Trading 18 50 182 118 34 68 43 57 30 9 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13
  • 11. 2,115 2,079 (119) +111 (57) +29 0 2011/12 Price & Mix Volume Price & Mix Volume Others * 2012/13 Sugarcane Brazil – Financials Increased volume impact offset by lower sugar and ethanol prices * includes Cogeneration, Agricultural Products, Hedging and Ethanol Resale Key Figures In R$ Million 2012/13 2011/12 Change Revenues 2,079 2,115 -2% Gross Profit 315 369 -15% Gross Margin 15.2% 17.5% EBITDA 437 453 -4% EBITDA Margin 21.0% 21.4% Adjusted EBITDA 393 424 -7% Adjusted EBITDA Margin 18.9% 20.0% 11 (1) Tereos Internacional allocates tilling expenses as cost. If tilling expenses were allocated as investment, Adjusted EBITDA for fiscal year 2012/13 would have reached R$494.2 million. Net Revenues (R$ MM) Sugar Ethanol 4  Sugar: 62% of total net revenues  Volumes increased +8.1% to 1.407 million tonnes  Prices down -5.3% Y-o-Y at 919 R$/tonne  Ethanol: 27% of total net revenues  Volume sold (ex-trading) up +5.3% to 506,000 m3  Prices down -9.7% Y-o-Y at 1,121 R$/m3  Cogeneration: R$81.3 million vs. R$44.7 million  Adjusted EBITDA: R$393 million • Drop driven by negative price effect and cost inflation (mainly salaries, leasing and logistics) • Adjusted EBITDA Margin1 for fiscal year 2012/13 including tilling as depreciation: 23.8%
  • 12. -86.1% YoY Sugarcane Indian Ocean/Africa – Production and Financials Another solid year for the Indian Ocean operations 12 Sugarcane Crushing (’000 t) Sugar sales (‘000 t) -18.2% YoY Key Figures In R$ Million 2012/13 2011/12 Change Revenues 941 826 +14% Gross Profit 222 146 +52% Gross Margin 23.6% 17.7% EBITDA 180 151 +19% EBITDA Margin 19.1% 18.3% Adjusted EBITDA 190 158 +20% Adjusted EBITDA Margin 20.1% 19.1% 4 2012/13 Revenue Breakdown by Product Sugar Indian Ocean 40% Sugar Africa 13% Trading and others 47% 43 116 1,267 1,176 6 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 77 67 76 86 63 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13  Sugarcane crushing  Indian Ocean: steady performance (-2.7% in sugarcane crushing to 1.84 million tonnes)  Africa: despite unfavorable weather conditions and technical issues negatively impacting irrigation, sugarcane crushing increased 1.9% to 730,000 tonnes  Revenues: +14% Y-o-Y  Favorable commercial conditions in the Indian Ocean and increase in volumes in Mozambique  Adjusted EBITDA: +20% Y-o-Y  Adjusted EBITDA expansion for both operations
  • 13. 210 217 237 215 208 62 60 66 52 81 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 289272 277 303 267 134 110 109 72 99 61 70 51 58 51 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 150 194 180 159 130 433 450 444 412 432 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13 710 723 744 698 698 214 209 224 168 189 Q4 11/12 Q1 12/13 Q2 12/13 Q3 12/13 Q4 12/13887924 932 968 866 Cereal Segment - Production and Sales Higher volumes in Starch & Sweeteners offset by lower ethanol volumes 13 Cereal Grinding (‘000 t) Starch & Sweeteners Sales (‘000 t) -4.0% YoY -0.2% YoY Co-products Sales (‘000 t) +6.2% YoY Alcohol & Ethanol Sales (‘000 m3) -22.8% YoY Starch & Sweeteners Ethanol & Alcohol Own Sales Trading Starch & Sweeteners Ethanol & Alcohol 4  Grinding in 2012/13: -1.8% Y-o-Y  Starch & Sweeteners: +0.5% Globally stable  Alcohol & Ethanol: -9.20% Lower ethanol output on reduced utilization rates at Lillebonne due to the start-up of the gluten line
  • 14. Starch & Sweeteners – Financials Good volumes and increased prices, but not sufficient to compensate for sharp rise in raw material costs and volatility Key Figures In R$ Million 2012/13 2011/12 Change Revenues 3,381 2,846 +19% Gross Profit 625 502 +25% Gross Margin 18.5% 17.6% EBITDA 224 249 -10% EBITDA Margin 6.6% 8.8% Adjusted EBITDA 223 246 -9% Adjusted EBITDA Margin 6.6% 8.6% 14 Net Revenues (R$ MM)  Revenues: R$3,381 million, up 19%  Volume increase for starch and sweeteners (+3.5%) and co-products (+2.3%)  More challenging environment for price renegotiation at year-end round  Adjusted EBITDA: R$223 million, down R$22 million  Starch & Sweeteners segment affected by higher raw material costs not fully passed onto customers  Higher energy costs 4 2,846 3,381 +307 +95 +85 +48 2011/12 Currency Volume Price & Mix Others 2012/13
  • 15. 1,089 1,239 +118 (65) +111 (14) 2011/12 Currency Volume Price & Mix Others 2012/13 Alcohol & Ethanol Europe – Financials Positive diversification impact delayed due to technical difficulties  Revenues: R$1,239 million, up 14%  Prices: 9.2% for the whole segment  Higher revenues of trading ethanol and co- products making up for lower ethanol volumes  Adjusted EBITDA: R$71 million, down 53%  Increase in the cost of cereal and energy and lower output due to technical difficulties at Lillebonne 15 Net Revenues (R$ MM) 2012/13 Revenue Breakdown by Product Key Figures In R$ Million 2012/13 2011/12 Change Revenues 1,239 1,089 +14% Gross Profit 110 266 -59% Gross Margin 8.9% 24.4% EBITDA 71 151 -53% EBITDA Margin 5.7% 13.9% Adjusted EBITDA 71 151 -53% Adjusted EBITDA Margin 5.7% 13.9% 4 Ethanol own sales 57%Ethanol traded 31% Co-products and other 12%
  • 16. 16 2012/13 Cash Flow Reconciliation Investments in major segments partially funded by the capital increase Cash Flow In R$ Million 2012/13 Adjusted EBITDA 869 Working capital variance (61) Other operating (including income tax paid) (165) Operating Cash Flow 644 Financial interests (267) Dividends paid and received (53) Capex (1,219) Increase in capital 582 Others 108 Free Cash Flow (205) Forex impact (177) Acquisition & Perimeter impact (32) Net Debt Variation (413) 5  CAPEX Brazil: 50% of total CAPEX, mainly allocated for:  planting program,  cogen equipment; and  crushing capacity expansion. c. 2/3rds of the 2015/16 investment program already invested Cereals: 40% of total CAPEX, mainly allocated for:  first phase of starch project in Brazil – over 80% already invested;  capacity expansion in the starch & sweeteners segment; and  BENP Lillebonne product diversification  Capital Increase August 2012: R$370 million, 100% subscribed at Tereos Internacional level to fund the expansion and geographical diversification of cereal division October 2012: R$212.2 million, capital injection from Petrobras Biocombustível at Guarani
  • 17. Debt Increase mostly due to investment programs and currency effect  Net Debt/Adjusted EBITDA: 4.0x, stable sequentially  Tereos EU syndicated credit facility of €450 million extended by 2 years to June 2017, simplifying the existing structure and covenant requirements 17 Debt In R$ Million March 31, 2013 December 31, 2012 March 31, 2012 Change Y-o-Y Current 1,896 2,257 1,291 605 Non-current 2,493 2,196 2,384 109 Amortized cost (26) (20) (25) -1 Total Gross Debt 4,363 4,453 3,650 713 In € 1,624 1,812 1,402 222 In USD 1,741 1,793 1,652 89 In R$ 961 783 557 404 Other currencies 63 65 64 -1 Cash and Cash Equivalent (924) (678) (624) -300 Total Net Debt 3,439 3,755 3,026 413 Related Parties Net Debt 31 35 17 14 Total Net Debt + Related Parties 3,470 3,790 3,043 427 5
  • 18.  Sugarcane Brazil : Favorable outlook for sugarcane volumes, and cogeneration sales to double  Expected crushing to be around 20 million tonnes to increase industrial utilization rates and dilute fixed costs; 2013/14 production mix adjusted more towards ethanol (36% to ~40%)  Planting program for 2013/14: 2/3rds performed of the 30,000 hectares expected  Guarani 2015/16 Program: Focus on improving industrial/agricultural efficiency, energy savings and cost/G&A reduction to offset inflation  Despite low sugar prices, 40% of Guarani sugar sales hedging target already secured at 20.6 USD cents/lb (as at 31st March, 2013)  Positive measures from Government supportive of ethanol prices (higher gasoline prices, anhydrous blending back to 25% and federal tax incentives - PIS/COFINS elimination)  Cereals: Diversification in Europe and starch project in Brazil to be fully operational in 2013/14  Beginning of Brazilian corn plant production and progressive improvement expected in Lillebonne  Margins to remain under pressure in H1 2013/14 due to Lillebonne progressive ramp up and delayed impact of hedging position  Sales growth expected for cereal division backed by improvement in mix, stable volumes and higher perimeter  Extended partnership with Wilmar to enhance raw material diversification and market penetration in China - approval expected in H2 18 Outlook6
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