Slide 1: Q4 & FY 2020 Update
Q4 & FY 2020 Update “VERDE
Slide 2: Disclaimer
DISCLAIMER If you are risk averse don’t buy our stock. Don’t rely on anything on this presentation. We are not good enough for you to invest if you: This presentation contains certain forward-looking information, which includes but is not limited to, statements with Are risk averse. respect to Verde
Slide 3: Agenda
Highlights 04 Q4 and FY 2020 Financial Statements 05 Operational Summary 06 Key Metrics 07 SG&A Expenses 09 Other Highlights 10 Financial Summary 11 Brazilian Economic Scenario 13 Sales Growth and Guidance 15 2021 Key Objectives 16 Appendix 17
Slide 4: Highlights Summary
HIGHLIGHTS SUMMAR Y C a sh Ability to generate significant free cash flow in the long term. 2020 was a challenging year, with operating complexities Credit facilities totaling R$ 22M approved by financial institutions in Brazil, to be triggered by the pandemic scenario, in addition to a 27% drop use
Slide 5: Q4 and FY 2020 Financial Statements
Q4 AND FY 2020 FINANCIAL STATEMENTS All amounts in CAD $’000, except percentages Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY Revenue 2,209 1,491 48% 9,167 6,029 52% Production costs -912 -960 -5% -3,515 -3,166 11% Gross Profit 1,297 531 144% 5,652 2,863 97% Gross Margin 59% 36% N/A 62% 47% N/A Sales exp
Slide 6: Operational Summary
OPERATIONAL SUMMARY All amounts in CAD $’000, except percentages Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY Tonnes sold ‘000 57 32 76% 244 120 103% Revenue per tonne sold $ 39.03 46.26 -16% 37.62 50.32 -25% Production cost per tonne sold $ -16.11 -29.79 -46% -14.42 -26.42 -45% Gross Profit per tonne so
Slide 7: Key Metrics Quarterly
KEY METRICS QUARTERLY S a l e s ( To n n e s ) Reve nue ( ‘ 000 CAD) 250000 243,707 9,167 9000 8000 200000 7000 6,029 6000 150000 5000 119,809 105,769 3,956 4000 100000 3,055 71,183 3000 2,492 62,895 2,209 56,585 2000 50000 1,491 32,221 1,329 1,358 29,648 23,600 20,641 1000 692 510 666 10,170 9,007
Slide 8: Other Highlights
OTHER HIGHLIGHTS Gross Margin 70% The key reason for the GM improvement in 2020 was the reduction of production costs 62% 59% per tonne. 60% 50% 48% The reduction of 46% in Q4 2020 compared to Q4 2019 was due to cost efficiency enhancement of 17% and as a result of devaluation of the Brazilian Real
Slide 9: Sales, General and Administrative Expenses
SALES, GENERAL AND ADMINISTRATIVE EXPENSES All amounts in CAD $’000, except percentages Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY Sales Expenses Sales and marketing expenses -196 -57 244% -1,137 -932 22% Product delivery freight expenses -478 -145 229% -1,133 -371 205% Total Sales expenses -673 -202 2
Slide 10: Other Highlights
OTHER HIGHLIGHTS Sales Expenses (C$’000) FOB vs CIF (tonnes) 0 300,000 -57 -145 -202 -196 250,000 243,707 -371 -500 -478 212,025 -673 200,000 -1000 -932 -1137 -1133 150,000 -1303 117,413 119,809 -1500 100,000 -2000 50,000 31,682 -2270 2,396 -2500 0 Q4 2019 Q4 2020 FY 2019 FY 2020 FY 2019 FY 2020 Sal
Slide 11: Financial Summary
FINANCIAL SUMMARY Rev e n u e Revenue from sales for Q4 2020 was $2.2M from the sale of 56.6K tonnes of the Product, at $39 per tonne sold. Average revenue per tonne was lower than Q4 2019 ($46 per tonne sold). The Product price is based on the current US$ Potassium Chloride price. Therefore, the re
Slide 12: Summary of Interest-Bearing Loans and Borrowings
SUMMARY OF INTEREST-BEARING LOANS AND BORROWINGS Grace period Total interest Lender Loan start date Purpose Term (months) Value (R$’000) Repayable by (months) payable* Santander Oct, 2020 Equipment and working capital 01 36 2,000 Oct, 2023 11.11% ABC Brazil Aug, 2020 Equipment and working capital 01
Slide 13: Brazilian Economic Scenario
USD/BRL Exchange Rate BRAZILIAN ECONOMIC SCENARIO 6.00 5.65 5.63 5.42 5.50 5.36 5.42 5.15 5.00 Brazilian Real versus US Dollar 4.50 4.09 4.15 4.11 4.00 From October to December 2020, the Brazilian Real 3.50 devalued by 31% in relation to US Dollar compared to the 3.00 same period of 2019. 2.50 2.00
Slide 14: Potassium Chloride Price
CFR Brazil (USD) 1 POTASSIUM CHLORIDE PRICE 400 350 312 303 Q4 and FY 2019 vs Q4 and FY 2020 300 289 279 285 251 251 256 246 250 Decrease of 14% from from US$290 per tonne in Q4 2019 to US$250 per tonne in Q4 2020. 200 150 Decrease of 27% from from an average of US$328 per 100 tonne in FY 2019 to US
Slide 15: Year-on-Year Sales Growth (Tonnes)
YEAR–ON-YEAR SALES GROWTH (TONNES) Quarter 2018 2019 YoY Growth 2020 YoY Growth Q1 - 1,093 - 10,170 830% Q2 - 23,600 - 71,183 202% Q3 9,007 62,895 598% 105,769 68% Q4 20,641 32,221 56% 56,585 76% Total 29,648 119,809 304% 243,707 103% 2020 GUIDANCE Both sales and revenue targets for 2020, respective
Slide 16: Verde's Key Objectives for 2021
VERDE’S KEY OBJETIVES FOR 2021: • Achieving 10% of the Company’s total sales as BAKS®. • Launching a new technology in the second quarter of 2021. • Obtaining ISO 9001 and ISO 14001 certifications. • Obtaining the Mining Concession for 2.5M tpy for Mine Pit 2, a milestone in our path to achieving th
Slide 17: Appendix
APPENDIX “VERDE
Slide 18: Potassium Chloride Replacement
PATASSIUM CHLORIDE REPLACEMENT Potassium salt fertilizers are soil biodiversity’s number 1 enemy. The average farmer applies 200 kg of potassium chloride to the soil per hectare per year. This is equivalent to the applicati on of 1,600 litres of bleach as far as killing soil biodiversity.¹ The world
Slide 19: Permit Status – Last 12 Months
PERMIT STATUS – LAST 12 MONTHS Mine Pit Date Category Status Event 2 December 23, 2020 Environment Granted 2,500,000 tpy Preliminary, Installation and Operation License 2 November 03, 2020 Mining Granted 50,000 tpy Mining Permit 3 August 24, 2020 Environment Applied 2,500,000 tpy Preliminary, Instal
Slide 20: Permit Summary
PERMIT SUMMARY Verde currently has full rights to mine 482,800 tpy (since it holds mining Concessions/Permits and Environmental Licenses) and has submitted joint mining and environmental applications for an additional 2,500,000 tpy. Mining (tpy) Environmental (tpy) Mine Pit Fully Permitted to Produc
Slide 21: investor.verde.ag
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