VASCO DIAS LUIS HENRIQUE GUIMARÃES

Transcription

1 COSAN DAY 2016

2 DISCLAIMER This presentation contains estimates and forward-looking statements regarding our strategy and opportunities for future growth. Such information is mainly based on our current expectations and estimates or projections of future events and trends, which affect or may affect our business and results of operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. Our estimates and forward-looking statements may be influenced by the following factors, among others: (1) general economic, political, demographic and business conditions in Brazil and particularly in the geographic markets we serve; (2) inflation, depreciation and devaluation of the real; (3) competitive developments in the ethanol and sugar industries; (4) our ability to implement our capital expenditure plan, including our ability to arrange financing when required and on reasonable terms; (5) our ability to compete and conduct our businesses in the future; (6) changes in customer demand; (7) changes in our businesses; (8) government interventions resulting in changes in the economy, taxes, rates or regulatory environment; and (9) other factors that may affect our financial condition, liquidity and results of our operations. The words believe, may, will, estimate, continue, anticipate, intend, expect and similar words are intended to identify estimates and forward-looking statements. Estimates and forward-looking statements speak only as of the date they were made and we undertake no obligation to update or to review any estimate and/or forward-looking statement because of new information, future events or other factors. Estimates and forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Our future results may differ materially from those expressed in these estimates and forward-looking statements. In light of the risks and uncertainties described above the estimates and forward-looking statements discussed in this presentation might not occur and our future results and our performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to the factors mentioned above. Because of these uncertainties you should not make any investment decision based on these estimates and forward-looking statements.

3 VASCO DIAS LUIS HENRIQUE GUIMARÃES

4 ENERGY FUELS RAÍZEN The JV, five years later Raízen was formed back in 2011 combining two very different companies with two very different business... Brand repositioning Logistics optimization Cost cutting Sustainable growth Conclusion of expansion cycle Operational efficiency Focus on returns five years later in a rather challenging business environment Raízen successfully developed a performance driven culture combining the best of its shareholders while refreshing the company with best practices and people.

5 RAÍZEN Return to shareholders EBITDA (BRL Bln) Cash Generation (EBITDA CAPEX) (BRL Bln) ~2x Note: Excludes Biological Asset and Hedge Accounting effects. 2010/11 consider Cosan and Shell fuels results combined. Note: EBITDA excludes Biological Asset and Hedge Accounting effects. Dividends (BRL Bln) Accidents (LTIF) 85% Note: LTIF = Lost Time Injury Frequency. Note: Considers 100% of Raízen s results, under Raízen s perspective.

6 FUELS DISTRIBUTION

7 RAÍZEN COMBUSTÍVEIS Setting Up the Backbone After formation, Raízen expanded its logistics and optimized cost structure CAPEX (BRL Mln): Infrastructure investment = 20% of Total CAPEX RECENT INVESTMENTS IN INFRASTRUCTURE Marabá New terminal Porto Nacional New terminal Note: CAPEX considers 100% of Raízen s investments, including acquisitions SG&A (BRL/cbm) Rondonópolis New terminal Ourinhos New terminal Note: Values in 2015 real terms Campo Grande Terminal Reactivation Detour Paulínia New infrastructure

8 RAÍZEN COMBUSTÍVEIS Focusing on Growth Focus on growth increased from 2013 onwards Service stations & Market share Volume growth (Mln cbm) Note: The analysis excludes greases and lubricants Highest throughput per station (Thousand cbm/month) Note: Volumes based on Sindicom methodology. Volume growth vs Market Note: The analysis excludes greases and lubricants

9 RAÍZEN COMBUSTÍVEIS Brand Positioning and New Products...strengthened brand positioning in the country and developed new products 5,682 Fuel stations (+ 6% vs. 2014) 251 cbm/station (highest in the industry) Exclusive at Shell Stations 460 thousand users Best seller Premium gasoline Launch of V-Power Nitro and Racing The only Premium ethanol Best seller Premium diesel Up to 60% less NOX & 80% less particulate emissions 951 Select stores Highest C-store ticket in Brazil #1 loyalty program for truck drivers Fleet Management

10 RAÍZEN COMBUSTÍVEIS 2x EBITDA in 5 Years EBITDA doubled reaching BRL 2.5 bln in EBITDA (BRL Bln) EBIT (BRL Bln) 17% 19% Note: Considers 100% of Raízen s results, under Cosan s perspective.

11 RAÍZEN COMBUSTÍVEIS Returns targeting high returns supported by roll-out of rebate agreement.

12 RAÍZEN COMBUSTÍVEIS Addressing a Challenging Environment Fuels distribution enjoyed great momentum. Improved regulation created a healthy competitive environment while credit and wealth increased demand well above GDP... Fleet vs Consumption (yoy%) Unit consumption (L/car) GDP vs Diesel consumption (yoy%) Source: ANP and Raízen s estimates Source: ANP and Raízen s estimates Source: ANP and IBGE...scenario will be different in the next couple of years: limited growth in a mature market.

13 RAÍZEN COMBUSTÍVEIS Addressing a Challenging Environment Focus on network expansion through white flags conversion... WHITE FLAGS VOLUME SHARE IN % North 23% Northeast White Flags 20% of total sales 30% Midwest 19% Southeast 18,000 stations 24% South

14 RAÍZEN COMBUSTÍVEIS Addressing a Challenging Environment Increasing supply and operational efficiency remains top priority Supply strategy Ethanol Imports Logistics Cost Discipline Technology Processes New tools and systems

15 RAÍZEN COMBUSTÍVEIS Addressing a Challenging Environment Higher focus on non-fuels aims at further increasing throughput per station while improving customer experience FUELS VS NON FUELS EBITDA EVOLUTION (BRL Bln) CONVENIENCE STORES PAYMENT METHODS Highest ticket per store Expansion fast track: Product offer Operational simplification Food and non-food logistics Sem Parar exclusivity for 42 months Acelera start of rollout Expers fuels management for B2B

16 ENERGY

17 RAÍZEN ENERGIA Harvesting Long-Term Initiatives There has been a significant change in the way we run the sugar & ethanol business over the last 10 years... LTIF Note: EBITDA excludes Biological Asset and Hedge Accounting effects.

18 RAÍZEN ENERGIA Harvesting Long-Term Initiatives... targeting higher returns regardless of commodities cycle CRUSHING Stand-alone management of 24 mills Technical expertise Sector-based benchmark VALUE CREATION Portfolio approach Diversity of skills Benchmarking expertise: Agricultural Industrial Logistics Technology Performance Based remuneration

19 RAÍZEN ENERGIA Benchmarking Efficiency Brazil continues to be lowest cost sugar producer and we aim at being the most efficient player locally... PRODUCTION COST (c$/lb, ex-mill) AGRICULTURAL PRODUCTIVITY (TSR/HC) Source: Raízen s estimates based on consulting companies PRODUCTION COST (c$/lb, ex-mill) Source: UNICA Source: Raízen s estimates based on consulting companies

20 RAÍZEN ENERGIA Reducing Unit Cost Planting + Agricultural Logistics + Industrial Cost 80% of cost base... PLANTING AND MAINTAINING (BRL Mln) CLT (BRL/ton) INDUSTRIAL COST (BRL/ton) CAGR -5% CAGR -6% Note: CLT = Cutting, Loading and Transportation Note: Estimated results in 2015 /16 real terms, under Raízen s perspective....and focus on agricultural, industrial and logistics productivity yielding results.

21 RAÍZEN ENERGIA New Reference for Capex and Opex 2015/16 crop year sets new reference for Capex and Opex going forward CAPEX + OPEX (BRL Bln) CAGR -5% CAPEX (BRL Bln) Mln TC Note: Results in 2015/16 real terms, under Raízen s perspective.

22 RAÍZEN ENERGIA Improving Returns 2015/16 crop year pointing to improved returns EBIT/TSR SOLD (BRL/ton) ROIC (%) Actual 2015/16 Real term prices ROIC ROIC (2015/16 Real term prices) Note: Adjusted EBIT excludes Biological Asset and Hedge Accounting effects.

23 RAÍZEN ENERGIA Keeping the pace Centralized logistics Leveraging new technologies Continued internal and external benchmarking Capacity utilization including higher use of biomass Go to market alternatives

24 RAÍZEN ENERGIA Ready to harvest Focus on increasing returns... SUGAR UPCYCLE WORLD SUGAR S&D (mln ton) ETHANOL UPCYCLE AVERAGE PRICES AT THE PUMP (BRL/l) ethanol/gasoline parity under 70% Source: Consulting Companies SUGAR PRICES IN BRL AND USD Source: ANP AVERAGE PRICES TO THE PRODUCERS (BRL/l) Source: CEPEA-Esalq Source: CEPEA-Esalq... envisioning more favorable scenario in the coming years

25 THANK YOU