Sugar, Ethanol & Energy Business Operational Performance Analysis

Slide Note

This report analyzes the operational performance of a sugar, ethanol, and energy business including sugarcane crushing, production mix, sales volumes, financial performance, and agricultural operations. Key highlights include significant increases in sugarcane crushing, production volumes, and sales, as well as strong financial results with improved EBITDA margins. The data reflects positive trends in the farming business operational performance and planted area evolution over the specified years.

may_lei Follow

Uploaded on Sep 28, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript

4Q13 Results Conference Call

Sugar, Ethanol & Energy Business Operational Performance Sugarcane Crushing +43% 6.4 4.5 Cluster UMA 5.3 +29% 3.5 1.8 1.4 1.5 1.1 1.1 1.0 0.3 0.3 4Q12 4Q13 2012 2013 Hydrous mix Production Mix Anhydrous mix Sugar mix 15% 23% 26% 38% 34% 28% 37% 12% 51% 50% 47% 41% 2 4Q12 4Q13 2012 2013

Sugar, Ethanol & Energy Business Operational Performance Sugar, Ethanol and Energy Production (thousand units) +23% 4Q12 +15% 4Q13 +14% 98.6 119.3 80.4 67.5 69.9 61.1 Sugar (tons) Ethanol (m3) Energy (MWh) +19% 2012 +26% +46% 2013 335.6 362.5 281.6 268.1 357.0 183.7 3 Sugar (tons) Ethanol (m3) Energy (MWh)

Sugar, Ethanol & Energy Business Operational Performance Sugar, Ethanol and Energy Sales Sugar Sales Volumes (thousand tons) Hydrous Ethanol Sales Volumes (thousand m3) 494 635 411 563 2012 2012 2013 2013 580 Average Price US$/ton 433 389 539 Average Price US$/m3 314.5 81.4 272.9 57.2 17.5 140.6 119.0 21.7 2012 2013 4Q12 4Q13 2012 2013 4Q12 4Q13 Anhydrous Ethanol Sales Volume (thousand m3) Energy Sales Volumes (thousand MWh) 706 92 89 645 2012 2012 2013 2013 Average Price US$/m3 Average Price US$/MWh 89 657 85 177,963.2 354.0 162,023 610 235.5 48.4 75.5 28.4 46.8 2012 2013 4Q12 4Q13 2012 2013 4Q12 4Q13 4

Sugar, Ethanol & Energy Financial Performance Financial Performance Adjusted EBITDA & EBITDA Margin 4Q ($ millions) 43% Gross Sales 4Q ($ millions) Adjusted EBITDA Margin Others 34% 104.1 Energy 98.1 9.8 Ethanol 6.7 +18.2% +6.1% Sugar 39.0 48.5 42.3 35.3 51.6 45.5 4Q12 4Q13 4Q12 4Q13 Adjusted EBITDA & EBITDA Margin FY ($ millions) Gross Sales FY ($ millions) 38% 312.6 Adjusted EBITDA Margin Others 36% 282.3 32.5 Energy 21.0 Ethanol +10.7% +18.2% Sugar 150.4 121.5 115.2 97.5 134.8 129.2 2012 2013 2012 2013 5

Sugar, Ethanol & Energy Operational Performance Agricultural Operations Sugarcane Plantation (hectares) Sugarcane Planted Area (hectares) +16% +10% 99,409 85,663 25,764 23,391 12/31/2012 12/31/2013 2012 2013 6

Farming Business Operational Performance Planted Area Evolution (thousand hectares) Owned area 134 Second crop area 129 123 119 Leased area 110 107 79 61 56 54 48 48 38 36 34 29 29 28 25 14 14 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Farming Production Data 2012/2013 Harvest Year 2013/2014 Harvest Year % Chg Soybean Soybean 2nd Crop Corn (1) Corn 2nd Crop Wheat (2) Sunflower Cotton Total Crops Rice Total Farming 62,540 29,563 59,156 5.7% 23,122 (21.8%) 41,205 45,195 9.7% 4,528 5,073 12.0% 28,574 12,478 3,098 181,985 35,249 217,234 29,412 12,880 6,254 181,091 36,331 217,422 2.9% 3.2% 101.9% (0.5%) 3.1% 0.1% (1) Includes sorghum (2) Includes barley 7

Farming Business Operational Performance Monthly Rainfall Evolution Argentina Humid Pampas 250 Average Monthly Rainfalls (mm) 200 150 100 50 0 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 2013/14 Historical Average Dec 2013/Jan 2014 Daily Rainfall Evolution 90 Average Daily Rainfalls (mm) 80 70 60 50 40 30 20 10 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Dec-13 Jan-14 8

Farming Business Financial Performance Gross Sales 2013 ($ millions) 322.4 327.2 2012 2013 147.9 185.1 107.1 93.9 18.9 19.7 19.9 13.4 Crops Rice Dairy Others Farming Consolidated Adjusted EBITDA 2013 ($ millions) 60.8 2012 2013 41.1 37.1 34.3 12.9 9.4 4.9 4.3 1.3 -2.4 Crops Rice Dairy Others Farming Consolidated 9

Land Transformation Business Financial Performance Farmland Sales i. Lagoa de Oeste and Mimoso: On May 2, 2013, Adecoagro sold the Lagoa de Oeste and Mimoso coffee farms located in Luis Eduardo Magalhaes, Bahia, Brazil. The sale resulted in a total of $20.8 million in cash proceeds representing a 7% premium to the Cushman & Wakefield farm appraisal. ii. Santa Regina: On June 14, 2013, AGRO sold its remaining 49% interest in Santa Regina S.A. located in Buenos Aires, Argentina. The farm was sold for $13.1 million, 16% above Cushman and Wakefield s independent appraisal dated September 30, 2012. iii. San Martin: On September 13, 2013, AGRO sold the San Martin farm for a total price of $8.0 million, representing a 15% premium over the Cushman & Wakefield independent appraisal dated September 30, 2012. This transaction generated approximately $6.5 million of operating profit in the third quarter of 2013. i. San Agustin: On November 12, 2013, AGRO sold the San Agustin farm for a total price of $17.5 million, equivalent to $3,445 per hectare, representing a 19% premium over the Cushman & Wakefield independent appraisal dated September 30, 2013. This transaction generated approximately $14.7 million of operating profit in the fourth quarter of 2013. 33.1 28.2 27.4 20.8 18.8 15.2 8.8 7.6 2006 2007 2008 2009 2010 2011 2012 2013 Sold Hectares 5,086 7,680 14,176 2,439 8,714 5,5005 4,857 3,507 Sold Farms 1 3 1 2 1 5 1 2 10

Adecoagro Consolidated Financial & Operational Overview Area & Production 2008 2009 2010 2011 2012 2013 Farming Planted Area (hect.) Sugarcane Planted Area (hect.) Farming Production (tons) Sugarcane Crushing (tons) 139,920 32,616 453,392 1,376,763 153,026 49,470 414,962 2,215,029 183,454 53,799 618,834 4,066,115 192,207 65,308 666,327 4,168,082 232,547 85,663 738,847 4,488,935 217,422 99,409 699,179 6,417,951 Net Sales 2008 2009 2010 2011 2012 2013 Farming & Land Transformation Sugar, Ethanol & Energy Total 193,038 51,171 244,209 216,016 97,587 313,603 197,741 204,256 401,997 270,766 258,939 529,705 322,368 269,351 591,719 327,165 317,461 644,626 Adjusted EBITDA 2008 2009 2010 2011 2012 2013 Farming & Land Transformation 58,594 51,662 65,735 67,444 68,647 88,953 Sugar, Ethanol & Energy Corporate Total (6,979) (23,077) 28,538 (26,903) (22,262) 2,497 51,735 (22,353) 95,117 109,507 (26,885) 150,066 97,505 (25,442) 140,710 115,241 (23,279) 180,914 Adjusted EBITDA Margin Farming & Land Transformation(1) Sugar, Ethanol & Energy(1)(2) Total 24.4% -36.2% 11.7% 18.8% -39.0% 0.8% 27.6% 19.9% 23.7% 19.9% 37.1% 28.3% 17.3% 31.5% 23.8% 23.6% 32.6% 28.1% (1) Corporate expenses allocated 50% to Farming & Land Transformation and 50% to Sugar, Ethanol & Energy (2) Calculated over Net Sales. Net Sales is calculated as Sales less sugar and ethanol sales taxes. 11

Net Debt 4Q13 Net debt ($ millions) 4Q13 Debt Term Structure 657.1 545.2 22.4% 428.0 Short term S&E Long Term 232.1 77.6% Farming 114.9 Debt Cash Net debt 4Q13 Debt Currency Structure Total debt as of December 31, 2012, stands at $657.1 million 4.7% Our debt structure increased from 60% long term to 66% during 4Q13 Brazilian Reals US Dollars 39.0% 56.4% Net debt stands at $320.3 million Argentine Pesos 12

Disclaimer This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. These forward-looking statements can be identified by words or phrases such as anticipate, forecast , believe, continue, estimate, expect, intend, is/are likely to, may, plan, should, would, or other similar expressions. The forward-looking statements included in this press release relate to, among others: (i) our business prospects and future results of operations; (ii) the implementation of our business strategy, including our development of the Ivinhema project; (iii) our plans relating to acquisitions, joint ventures, strategic alliances or divestitures; (iv) the implementation of our financing strategy and capital expenditure plan; (v) the maintenance of our relationships with customers; (vi) the competitive nature of the industries in which we operate; (vii) the cost and availability of financing; (viii) future demand for the commodities we produce; (ix) international prices for commodities; (x) the condition of our land holdings; (xi) the development of the logistics and infrastructure for transportation of our productions in the countries where we operate; (xii) the performance of the South American and world economies; (xiii) weather and other natural phenomena; (xiv) the relative value of the Brazilian Real, the Argentine Peso, and the Uruguayan Peso compared to other currencies; and (xv) developments in, or changes to, the laws, regulations and governmental policies governing our business, including environmental laws and regulations. These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward- looking statements are reasonable, our expectations may turn out to be incorrect. Our actual results could be materially different from our expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release 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. The forward-looking statements made in this press release related only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events. 13