2015/2016. Santander 20th Annual Latin America Conference

Transcription

1 2015/2016 Santander 20th Annual Latin America Conference

2 São Martinho at Glance 300,000 Ha Crop area harvested 4 mills São Martinho, Iracema, Santa Cruz and Boa Vista Reference in agricultural management excellence production cash cost of USD 8.0 c/p for sugar and ethanol equivalent fx: 4.00 ; 23.5 million tons Sugarcane processing capacity Highly vertically oriented sugarcane supply better control of raw materials, close to 70% own cane; 97% mechanization Pioneer in mechanized sugarcane harvesting Highly competitive logistics for sugarcane transportation lower transportation costs and faster distribution; 60% / 40% flexibility Between sugar and ethanol 900,000 MWh Of energy cogeneration 52,600 ha of owned land located in strategic areas and with high agricultural yields. 2

3 Corporate Governance Shareholders 55.96% Board / Directors / Treasury 4.69% Free Float 39.35% General Meeting 100% São Martinho S.A. 100% Petrobras Biocombustível S.A. 51% 49% Fiscal Council Board of Directors Land Company São Paulo Mills Crunching Capacity ~ 18.5 MM tons Nova Fronteira Bioenergia Crunching Capacity ~ 5 MM tons Personnel Management Committee Crunching of ~ 21 MM tons (Proportional) It s part of Novo Mercado since IPO in 2007 Finance, Audit and Risk Committee Strategy, Technology and New Business Committee 3

4 Land Business: unlocking value in urban areas São Martinho s Land Value Evolution Deloitte Touche Reappraisal (R$ million) CAGR: 11% a.a. 1,194 1, ,946 ~50,600 ha (rural area) R$ 2.3 billion ~2,000 ha (urban area) R$ 675 million 2009 Land Value São Martinho Land Apreciation in the Period º Land Reappraisal Real Estate projects in the pipeline: Real Estate Developments in progress Lauching Date Total Project area Potential Sales Project Total NPV for São Martinho In hectares R$ million R$ million Alphav ille Other Projects ~80% more than the market value of the land 4

5 Crushing Capacity Expansion CAGR: 8.9% /07 Greenfields Brownfields M&A 15/16 Growth was achieved mainly by M&A and brownfields, which promote agricultural synergies and higher operational leverage; Capital discipline: R$ 1.6 bi invested over the last 5 years added roughly R$ 700 mm in EBITDA EV/EBITDA = 2.3x; Most of the capex invested was financed by BNDES - leveraged IRR over than 30% p.y. 5

6 In 2015 SMTO Concluded Its Growth Capex Investments 2010 Capacity: 13.1 MT 2011 Capacity: 15.0 MT 2012 Capacity: 14.8 MT 2013 Capacity: 16.0 MT 2014 Capacity: 20.5 MT 2015 Capacity: 20.5 MT Total Invested R$ 1.6 bi Cogeneration (R$ 180 MM) Sugar logistics (R$ 30 MM) Brownfield Nova Fronteira (R$ 140 MM) São Carlos Mill (Biosev) (R$ 150 MM) Brownfield São Martinho (R$ 130 MM) Santa Cruz Acquisition (R$ 968 MM) Santa Cruz Brownfield (R$ 41.7 MM) from 2015 onwards free cash flow should substantially increase. 6

7 Operating Performance Performed Crushing (million tons) CAGR 12/13-15/16 = 15.7% % 50% 43% 52% 57% 48% 49% 50% 12/13 13/14 14/15 15/16 Sugar Mix Ethanol Mix Crushing after USC Expansion Crop Year 17/18 Crushing Capacity- million tons 21.2 Sugar production - '000 tons 1,345 Ethanol Production - '000 m³ 839 Cogeneration - MW h 780 Cogeneration ( 000 MWh) CAGR 12/13-15/16 = 60.9% EBITDA and EBITDA Margin (R$ million) CAGR 12/13-15/16 = 20,9% 39.8% 38.9% 46.5% 46.6% ,092 1,152 12/13 13/14 14/15 15/16 E 12/13 13/14 14/15 LTM 7

8 Cash Cost - Breakdown Planting Treatment 12% 14% 43% Agricultural Cost CCT 17% Partnership/ Leasing 10% Suppliers Cane Cost 22% 75% Sugar Cost R$ /ton Industrial SG&A 13% 12% Hydrous Ethanol Equivalent ~ R$ 1,100 / m³ Total Cost 100% 12/13 13/14 14/15 Historical Value Infflation Effect 1 1 IPCA index considered to calculate the inflation effect. 8

9 Agricultural Output: Soil Features Sugarcane Mix Soil Environments Comparative Soil Suppliers 30% Own 16% Partnerships 54% Own + Partnership 70% D 22% E 16% C 12% A 21% B 30% Soil Type Average Longevity Cuts TCH (years) (Ton/Per.) A B C D E A type is 260.2% higher than E type 1 Cane ton per hectare. 9

10 Strategic Investments in Facilities Sugar Warehouse and Logistics Ethanol tankage Sugar transshipment terminal: capacity to Storage capacity: 550,000 m³ or 80% of load 2 million tons of sugar annually; production - flexibility to carry a huge Storage capacity: 750,000 tons or 60% of portion of ethanol to sell in the intercrop production; period. Agreement with Rumo: transship and transport around 50% of SMTO s sugar production by rail. 10

11 Indebtedness Table 1 INDEBTEDNESS Mar/15 Sep/15 Chg%. R$ '000 Indebtedness in foreign exchange 1,819,988 2,012, % BNDES 877, , % Working Capital 858,562 1,255, % Graph 1 USD 48% CURRENCY Reais (R$) 52% Graph 2 Shortterm 23% TERM Obligations from acquisitions 96,323 91, % PESA 57,756 49, % Gross Debt 3,709,925 4,157, % Cash and Cash Equivalents 1,140, , % Net Debt 2,569,387 3,232, % Longterm 77% Net Debt / EBITDA LTM 2.2 x 2.8 x Net Debt / EBITDA LTM - USD * 1.7 x 2.1 x Adj. EBITDA LTM 1,145,934 1,151,568 Graph 3 Debt Depreciation Schedule R$ - million 912 1,838 Average Term 3.6 years , Cash in Set/15 Inventories Set/15 Availability Short Term Debt 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 to 6 years 6 and forward * Net Debt PTAX: EBITDA LTM Average daily PTAX 12 months: March/15: R$3.20 March/15: R$2.48 September/15: R$ September/15: R$

12 Sugar Global Market Highlights World Balance Supply / Demand (Millions Tons) Global Stock To Use (Sup./Cons.) 35.4% 42.6% 45.3% 43.6% 42.9% 46.9% 44.2% 44.8% 42.0% 39.6% 36.9% 36.8% 40.8% 36.1% 46.1% 48.3% 47.4% 46.0% /02 03/04 05/06 07/08 09/10 11/12 13/14 15/ % 33.5% 96/97 98/99 00/01 02/03 04/05 06/07 08/09 10/11 12/13 14/15 Sugar Price x Currency /01/ /07/ /01/ /08/ /02/ /09/ /03/ /09/ /04/ /10/ /05/ /10/2015 Sugar c/p (R$) Sugar c/p (USD) Currency - Real / USD Source: Datagro e Bloomberg 12

13 The Potential of Ethanol in Brazil National Fleet Profile (millions of vehicles) % 8% 7% 8% 9% 8% 8% 9% 9% 9% 27% 25% 23% 20% 18% 17% 16% 14% 13% 12% 64% 67% 70% 71% 73% 75% 76% 77% 78% 79% Flex Fuel Gasoline Others Fuel Consumption in Brazil (billions of liters) National Gasoline Anhydrous Hydrous Deficit in Domestic Supply Measures Implemented In 2015 CIDE tax + PIS/Cofins in gasoline of R$ 0.22/liter better competitiveness for ethanol; Increase in ethanol blend in gasoline from 25% to 27% - 1 billion liters of consumption; Minas Gerais state (second largest fleet in Brazil) decreased state tax in ethanol: potential increase of 0.8 billion ethanol consumption. Ethanol Consumption in Center-South (billions of liters) 16.3 Apr/14-Dec/14 * % * UNICA considers the first fifteen days of December 20.0 Apr/15-Dec/15* Source: ANP - Agência Nacional do Petróleo, MME - Ministério de Minas e Energia and UNICA 13

14 IR Contacts Download our App Tel: Website: CLICK HERE TO DOWNLOAD THE IPAD APP FROM APPLE STORE CLICK HERE TO DOWNLOAD THE IPHONE APP FROM APPLE STORE CLICK HERE TO DOWNLOAD THE ANDROID APP FROM GOOGLE PLAY