Conference Call Earnings Release Crop Year 13/14. June 11, 2014

Transcription

1 Conference Call Earnings Release Crop Year 13/14 June 11, 2014

2 Disclaimer This presentation and any materials distributed in connection with it may include certain forward-looking numbers, results, statements, beliefs or opinions, including those with respect to the Company s business, financial condition and results of operations. These forward-looking numbers, results, statements, beliefs or opinions and information or data of similar meaning, reflect beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company cannot be relied on as a guide to future performance. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forwardlooking statements, numbers, results, statements, beliefs or opinions. 2

3 Highlights Sugarcane crushing of 30 million metric tons, the highest volume of the last three years Gross Revenue of R$4.5 billion and Net Revenue of R$4.3 billion, representing growth of 2.8% Cogeneration net revenue grows 28% to reach R$243 million Increase in cogeneration efficiency of 13.2% to 24 kwh/ton crushed The Ribeirão Preto Cluster registered a capacity utilization rate of 87.4% and TCH of 83.3 tons/hectare, with total crushing volume of 17 million tons R$ 700 million IPO (April 2013) Adjusted Net Debt reduction of R$358 million, equivalent to 9.8% Positive Free Cash Flow as main goal 3

4 Productivity and Operating Efficiency highly impacted by weather events Sugarcane Crushed (million tons) & Capacity Utilization Rate (%) TRS (Kg/ton) TCH (tons/ha) 68.8% 7.3% 73.8% 1.6% 79.2% 0.2 % -6.1 % 3.0 % -0.1 % Crushing Capacity Utilization (%) 13/14 crushing volume was the largest in the last 3 years despite adverse weather conditions 4

5 Ribeirão Preto Cluster: A high performance cluster Sugarcane Crushed (million tons) & Capacity Utilization Rate (%) TRS (Kg/ton) TCH (tons/ha) 64.0% 76.3% 87.4% 94.6% -1.3 % -3.1 % 6.6 % % 3.3% % /14 pro forma* Crushing Capacity Utilization (%) Investments made in cane fields start to pay-off as evidenced by higher TCH Decision to hibernate Jardest s Mill and retain its bio assets, increases operating efficiency and cost competiveness *Considers cane reallocation to other mills in Ribeirão Preto region and the reduction of 1.5 million tons of capacity due to Jardest s hibernation 5

6 Production: Balanced mix with higher share of ethanol Production Mix (%) & TRS Product ( 000 tons) Sugar ( 000 ton) Ethanol ( 000 m³) 3, % 3,860 3, % 59.6% 61.0% 51.1% 8.8% -19.3% 2.6% 20.7% 40.4% 39.0% 48.9% 1,963 2,136 1, ,150 Ethanol Sugar Operational flexibility assures rapid responses to market dynamics 6

7 Sugar: Better prices due to differentiated market intelligence Sales Volume ( 000 tons) & Average Sales Price (R$/ton) Change in Net Revenue (R$ million) Revenue by Type of Sugar (%)-13/14 1,041 1, ,9% % 4.5% 1,814 1,712 2,403 2, % /13 13/14 Volume BZ Vol - Exp Prices BZ Prices - Exp Net revenue 12/13 Volume Price Net revenue 13/14 VHP Crystal Refined Hedge Volumes & Prices 03/31/ /15 15/16 Sugar (#NY11) FX (US$) Volume (mil tons) 1, Average Price (cus$/lb) Volume (US$ Million) Average Price(R$/US$) Better prices as compared to international markets due to market intelligence and FX rate 7

8 Ethanol: +11% year over year revenue growth Sales Volume ( 000 m³) & Average Sales Price (R$/m³) Change in Net Revenue (R$ Million) Revenue by Type of Ethanol (%)-13/14 1,394 1,388 1, % 1, ,1% 373 1,502 1, % 51.2% /13 13/14 Net revenue 12/13 Volume Price Net revenue 13/14 Anhydrous Hydrated Neutral Volume BZ Vol - Exp Prices BZ Prices - Exp Revenue growth driven by higher prices in the domestic market, coupled with increased demand due to higher ethanol content in the gasoline blend 8

9 Energy: Increased efficiency combined with better prices and sales volumes Sales Volume (GWh) & Average Sales Price (R$/MWh) Cogeneration for Sale (GWh) & Cogen/Crushing (kwh/ton) Cogeneration for Sale (GWh) & Cogen/Crushing (kwh/ton) MS Cluster % ,225 1, % % % 7.6% /13 13/14 Volume Adj Prices Cogeneration for Sale Cogen/Crushing (kwh/ton) Cogeneration for Sale Cogen/Crushing (kwh/ton) Passatempo (MS) Cogen start-up adds sales capacity and boosts productivity (kwh/ton) 9

10 Capex: Discipline and priority to planting, treatment and maintenance CAPEX (R$ millions) Expansion Maintenance 1,163 1,156 1,152 TOTAL 1,336 1,345 1,206 Significant investments in Cogen and Mechanization were made in the last 2 years Maintenance CAPEX will be maintained at historical levels, while expansion CAPEX will be significantly reduced for the 14/15 Crop year 10

11 P&L highly impacted by non-recurring items and weather adverse conditions Income Statement¹ (R$ million) 13/14 Underlying² One-off Items 13/14A (a) 12/13A (b) (a)/(b) Net revenue 4,268-4,268 4, % COGS (Cash) (2,626) - (2,626) (2,304) 14.0% Gross Profit (Cash) 1,641-1,641 1, % SG&A (Cash) (525) - (525) (514) 2.2% Adjusted EBITDA 1,148-1,148 1, % D&A / Change in Fair Value - Bio Assets (1,241) - (1,241) (1,635) -24.1% Financial Result, Net (577) - (577) (641) -10.0% Unit hibernation and asset impairment - (370) (370) - - Non-recurring Items (54) - (54) 64 - EBT (732) - (1.102) (936) 17,8% Income Tax and Social Contribution 7 (371) (364) Net Loss (725) - (1.467) (620) 136,7% R$ 424 million of non-recurring items mainly due to provision for writeoff of assets and corporate restructuring expenses Non-cash accrual of R$467 million related to the writeoff of DTA s, registered in the income tax line Weather events impacted EBITDA by R$328 million ¹Selected Financial Items. ² Underlying numbers exclude effects from 2014 Business plan and the DTA write-off 11

12 Indebtedness Debt - R$ million 3/31/2014 3/31/2013 Var. (%) Breakdown by by Index (%) Short Term 1,907 1,254 - Long Term 3,415 3,967 - Gross Debt 5,322 5, % Cash and Equivalents (1,848) (1,364) 35.5% Net Debt 3,474 3, % Readily Marketable Inventories (RMI) (172) (198) -13.4% 20.5% 1.1% 5.4% 50.1% LIBOR Pre CDI TJLP Adjusted Net Debt 3,302 3, % Adjusted Net Debt/ Adjusted EBITDA 2.9x 2.8x % Other 70% in USD Reducing financial leverage and extending debt maturity are key priorities: Reduction in Working Capital needs Financial transactions on course to extend average debt maturity Positive free cash flow 12

13 14/15 Crop Year Guidance GUIDANCE 13/14A 14/15E Crushing (million tons) TRS Cane (kg/ton) TRS Product (million tons) Guidance for the 14/15 crop year already takes into consideration estimates concerning the impact of this year s drought at this present moment 13

14 Biosev in Summary: COMPETITIVE PLATFORM IN PLACE: SIZE, SCALE AND MARKET INTELLIGENCE FOCUS ON OPERATIONAL EXCELLENCE: PRODUCTIVITY AND EFFICIENCY FINANCIAL DISCIPLINE POSITIVE FREE CASH FLOW LINKED TO THE EXECUTION OF OUR BUSINESS PLAN HIGH STANDARDS OF CORPORATE GOVERNANCE UPSIDE POTENTIAL: HIGHER CAPACITY UTILIZATION COUPLED WITH FINANCIAL DELEVERAGING AND S&E CYCLE RECOVERY COMMITMENT WITH VALUE CREATION TO ALL SHAREHOLDERS 14

15 Biosev in Summary COMPETITIVE PLATFORM IN PLACE: SIZE, SCALE AND MARKET INTELLIGENCE FOCUS ON OPERATIONAL EXCELLENCE: PRODUCTIVITY AND EFFICIENCY FINANCIAL DISCIPLINE POSITIVE FREE CASH FLOW LINKED TO THE EXECUTION OF OUR BUSINESS PLAN HIGH STANDARDS OF CORPORATE GOVERNANCE UPSIDE POTENTIAL: HIGHER CAPACITY UTILIZATION AND FINANCIAL DELEVERAGING AND S&E CYCLE RECOVERY COMMITMENT WITH VALUE CREATION TO ALL SHAREHOLDERS 15