Estre Ambiental Inc · OTC:ESTRF
Estre Ambiental — Investor Presentation (June 2018)
19 slides from Estre Ambiental's investor presentation, June 2018
Slide 1: Estre Ambiental, Inc. Institutional Presentation
Estre Ambiental, Inc. June 2018 Institutional Presentation
Slide 2: Leading Waste Management Company in Brazil
Leading Waste Management Company in Brazil Full-range of waste and environmental services for more than 31 million people • 2017 Revenues R$ 1,365 million / Adj. EBITDA R$ 414 million (1) • Largest waste management company in Brazil and LatAm (2) • Environmentally progressive, transparent, with comp
Slide 3: Attractive Growth Opportunity
Attractive Growth Opportunity Brazilian solid waste market Underpenetrated Market Opportunity • 78 million tons annual of MSW • 3% growth from 2008 to 2015 • Fragmented industry Not Collected & Proper Improper Destination • Favorable regulatory framework Destination 47% 53% • 47% of MSW not properly
Slide 4: Favorable, evolving regulatory environment
Favorable, evolving regulatory environment Brazil Regulatory Framework US Solid Waste Regulations 1965 Solid Waste Disposal Act • Government committed to sound environmental practices 1970 Resource Recovery Act 1970 National Environmental Protection • National Solid Waste Policy enacted as Federal A
Slide 5: Summary Financials, excluding results from divested operations
Summary Financials, excluding results from divested operations(1) Despite over three years of economic crisis in Brazil, Estre has continued to deliver strong performance Revenue Adj. EBITDA(2) (R$ million) (R$ million) 4% 29% 1.289 1.393 1.365 1.206 389 414 323 191 28% 28% 25% 16% 2014 2015 2016 20
Slide 6: Strategic Latin American waste platform poised for significant potential growth
Strategic Latin American waste platform poised for significant potential growth Leading Market Position Tuck in Opportunities for Potential Growth 226 waste companies in Brazil • Many lack scale and technology to remain independent, and are financially challenged • Typically family-owned and potenti
Slide 7: New capital structure optimization
New capital structure optimization • Reduced post transaction leverage adds strategic Post transaction leverage flexibility and attractive new debt terms Net Financial Debt ‒ 8 year maturity @ CDI (interbank rate) + 2% Leverage (1) ‒ Pre-payable at any time without premium 4.3x 3.3x ‒ No interest pa
Slide 8: Estre & Boulevard Business Combination
Estre & Boulevard Business Combination Estimated pro-forma enterprise value of US$1.1 billion with US$512 million market cap (47%) and US$576 million Net Debt(2) (53%) • Sources: US$140 million • Uses: US$139 million debt reduction (20% discount, US$111 million cash payment) + US$29 million transact
Slide 9: Top Tier Governance
Top Tier Governance Majority independent board bringing mix of US and Brazilian waste management sector experience and best practices Board of Directors • Primary responsibilities will include, Andreas Gruson, Chairman among other things: Robert Boucher Jr., CEO and President of • Review of stra
Slide 10: Compliance Measures and Culture
Compliance Measures and Culture • First waste management company in Brazil to receive international certification for internal controls and integrity policies – ISO 37001 Highlights of Estre’s New • Brazil’s Clean Company Act 2014 – Brazil’s first anti-corruption law to Compliance Program hold compa
Slide 11: Appendix
Appendix
Slide 12: Selected Operating and Financial Highlights
Selected Operating and Financial Highlights 2016 Highlights (in R$ million) 2017 Chg. Restated Net Revenues 1,393 1,365 -2.0% Growth Operating Costs 879 843 -4.1% % of Net Revenues 63% 62% Net Income (361) 52 114.5% % of Net Revenues -26% 4% (1) CAPEX 120 144 19.7% % of Net Revenues 9% 11% Adjusted
Slide 13: Revenues by Segment
Revenues by Segment 2016 Net Revenues (in R$ million) 2017 Chg. Restated Collection & Cleaning Services 922 929 0.7% Public 843 831 -1.5% C&I 79 98 24.2% Landfills 450 455 1.2% O&G 63 26 -58.9% Value Recovery 42 57 35.5% Total (1) 1,393 1,365 -2.0% (1) Considers Elimination of intersegment transacti
Slide 14: Indebtedness
Indebtedness 2016 Indebtedness (in R$ million) 2017 Chg. Restated Debentures - 1st and 2nd Issues 1,666 1,069 -35.8% Working Capital 2 360 n.m. Finame and Lease 24 25 3.7% Gross Financial Debt 1,692 1,455 -14.0% Cash and equivalents 31 85 172.5% Net Financial Debt 1,661 1,370 -17.5% Net Financial De
Slide 15: Adjusted EBITDA and Adjusted Income Statement
Adjusted EBITDA and Adjusted Income Statement 2016 2017 As Reversal of Non- As Reversal of Non- in R$ million Adjusted Adjusted Presented recurring Events Presented recurring Events (1) Revenue from services rendered 1,393 - 1,393 1,365 - 1,365 Cost of services (879) (3) (1) (883) (843) 25 (1) (817)
Slide 16: Adjusted EBITDA and Adjusted Income Statement
Adjusted EBITDA and Adjusted Income Statement (1) Disregards the effects on Costs of Services of non-reccurring expenses related to cost due to adjustments made in response to findings of internal evaluation process R$0.6 million (in 2017) and -R$3.5 million (in 2016), UTR demobilization R$1.4 milli
Slide 17: Disclaimer
Disclaimer Important Disclosures This presentation is for informational purposes only and has been prepared to provide certain background materials in relation to Estre Ambiental, Inc. (together with its subsidiaries, “Estre” or the “Company”) and for no other purpose. The information contained in t
Slide 18: Disclaimer (continued)
Disclaimer (continued) Presentation of Financial Information, Including Non-IFRS Financial Measures (cont.) In addition, this presentation also includes certain income statement and other financial information eliminating the effects of assets divested by Estre as part of its corporate restructuring
Slide 19: Estre Ambiental
Estre Ambiental Av. Presidente Juscelino Kubitschek, 1830 – 3rd floor São Paulo/SP – BRAZIL +55 11 3709-2300 ir@estre.com.br