Verde Agritech Ltd · TSX:NPK
Verde Agritech — Q1 2021 Earnings Presentation
22 slides from Verde Agritech's earnings presentation, May 2021
Slide 1: Q1 2021 Update
Q1 2021 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: Highlights / Contents
Highlights 04 Q1 2021 Financial Statements 05 Operational Summary 06 Key Metrics 07 SG&A Expenses 08 Other Highlights 09 Financial Summary 11 Brazilian Economic Scenario 13 Sales Growth and Guidance 15 Appendix 17
Slide 4: Highlights Summary
HIGHLIGHTS SUMMAR Y C a sh Ability to generate significant free cash flow in the long term. Verde had another strong first quarter, with a triple-digit Credit facilities totaling R$ 22M approved by financial institutions in Brazil, to be revenue growth in local currency. used if needed. Average inte
Slide 5: Q1 2021 Financial Statements
Q1 2021 FINANCIAL STATEMENTS All amounts in CAD $’000, except percentages Q1 2021 Q1 2020 YoY Revenue 831 510 63% Production costs (490) (331) 48% Gross Profit 342 178 92% Gross Margin 41% 35% N/A Sales expenses (531) (422) 26% General expenses (698) (420) 66% Operating Profit/(Loss) before non cash
Slide 6: Operational Summary
OPERATIONAL SUMMARY All amounts in CAD $’000, except percentages Q1 2021 Q1 2020 YoY Tonnes sold ‘000 17 10 63% Revenue per tonne sold $ 50 50 0% Production cost per tonne sold $ (30) (33) (9%) Gross Profit per tonne sold $ 21 18 18% Gross Margin 41% 35% N/A 6 6
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 200000 7500 6,029 6000 150000 119,809 4500 105,769 3,956 100000 3,055 71,183 3000 2,492 62,895 2,209 56,585 50000 1,491 32,221 1500 1,329 1,358 29,648 23,600 20,641 831 831 16,558 16,558 692 10,170 510 666
Slide 8: Sales, General and Administrative Expenses
SALES, GENERAL AND ADMINISTRATIVE EXPENSES All amounts in CAD $’000, except percentages Q1 2021 Q1 2020 YoY Sales Expenses Sales and marketing expenses (302) (265) 14% Product delivery freight expenses (229) (157) 46% Total Sales expenses (531) (422) 26% General expenses General administrative expen
Slide 9: Other Highlights
OTHER HIGHLIGHTS Sales Expenses (C$’000) General Expenses (C$’000) 0 0 (22) (15) (8) (52) (100) (100) (200) (163) (158) (157) (219) (200) (300) (229) (265) (400) (300) (302) (420) (500) (478) (400) (422) (600) (500) (700) Q1 2020 Q1 2021 (698) (531) General administrative expenses Legal, professiona
Slide 10: Other Highlights: FOB vs CIF
OTHER HIGHLIGHTS FOB vs CIF (tonnes) 18,000 16,568 16,000 14,000 12,000 Sales (tonnes) Q1 2020 Q1 2021 YoY 9,874 10,170 9,968 FOB 9,874 9,968 1% 10,000 CIF 296 5,681 2130% 8,000 Total 10,170 16,568 63% 6,600 6,000 The Company has significantly increased the volume sold as CIF, from 3% 4,000 of total
Slide 11: Financial Summary
FINANCIAL SUMMARY Rev e n u e Revenue from sales for Q1 2021 was $831K from the sale of 16.5K tonnes of the Product, at $50 per tonne sold. Average revenue per tonne was consistent with Q1 2020. Pr o f i t a b i l i t y Sales increased by 63% in Q1 2021 compared to Q1 2020. The Company recorded a ne
Slide 12: Summary of Interest-Bearing Loans and Borrowings
SUMMARY OF INTEREST-BEARING LOANS AND BORROWINGS Grace period Total interest Lender Loan start date Purpose Term (months) Value (R$’000) Repayable by (months) payable* Bradesco Mar, 2021 Vehicle 01 36 168 Feb, 2024 10.46% Santander Oct, 2020 Equipment and working capital 01 36 2,000 Oct, 2023 11.11%
Slide 13: Brazilian Economic Scenario
USD/BRL Exchange Rate BRAZILIAN ECONOMIC SCENARIO 6.00 5.65 5.56 5.50 5.36 5.42 5.29 4.88 Brazilian Real versus US Dollar 5.00 4.50 4.34 4.15 From January to March 2021, the Brazilian Real devalued 4.00 3.50 by 23% in relation to US Dollar compared to the same 3.00 period of 2020. 2.50 2.00 As of Ma
Slide 14: Potassium Chloride Price
CFR Brazil (USD) 1 POTASSIUM CHLORIDE PRICE 400 360 350 338 309 300 285 261 256 Q1 2020 vs Q1 2021 250 241 228 200 Increase of 16% from from US$243 per tonne in Q1 2020 150 to US$283 per tonne in Q1 2021. 100 50 0 FOB Vancouver (USD) 2 900 800 700 30-year history 600 Comparison between prices since
Slide 15: Year-on-Year Sales Growth and 2021 Guidance
YEAR–ON-YEAR SALES GROWTH (TONNES) Quarter 2018 2019 YoY Growth 2020 YoY Growth 2021 YoY Growth Q1 - 1,093 - 10,170 830% 16,558 63% Q2 - 23,600 - 71,183 202% To be announced - Q3 9,007 62,895 598% 105,769 68% To be announced - Q4 20,641 32,221 56% 56,585 76% To be announced - Total 29,648 119,809 30
Slide 16: Revenue
Revenue (R$ ’000) 60,000 55,000 : 2021 Revised Target 50,000 2021 Initial Target: R$50,000 40,000 35,232 30,000 20,000 17,906 10,000 3,816 R$3,599 up to Q1 2021 790 - 2017 2018 2109 2020 2021* 16 * Targeted sales, based on FY guidance.
Slide 17: Appendix
APPENDIX “VERDE
Slide 18: Technology Launch Q&A
TECHNOLOGY LAUNCH Q&A The Company will introduce a new technology to the market on June 02, 2021 and host a Q&A session on June 09, 2021 in order t o provide further details about it. Subscribe using the link below and receive the conference details by email: Date: Wednesday, June 09, 2021 Time: 11:
Slide 19: 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 20: 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 21: 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 22: investor.verde.ag
investor.verde.ag | TSX: NPK | OTCQB: AMHPF