Sao Martinho S.a. · BMFBOVESPA:SMTO3
Sao Martinho — 1Q20 Earnings Presentation
12 slides from Sao Martinho's earnings presentation, August 2019
Slide 1: Results 1st Quarter 2019/2020 Harvest
Results 1st Q U A R T E R 2019/2020 Harvest
Slide 2: Disclaimer
Disclaimer • This presentation contains forward-looking statements relating to the business outlook, operating and financial projections, and the growth prospects of São Martinho S.A. These statements merely represent projections and as such are based exclusively on management’s expectations about t
Slide 3: Agenda
Agenda 1. IFRS 16 Adoption and Impacts 5. Indebtedness 2. Operational Highlights 6. Hedge Position 3. Financial Highlights 7. Ethanol Market 4. Costs 33
Slide 4: IFRS 16 Adoption – Assets and Liabilities
IFRS 16 Adoption – Assets and Liabilities Total Assets (R$ million in 03.31.2019) Total Liabilities (R$ million in 03.31.2019) Recognition of the right-of-use for lease agreements and Accounting for future payment obligations of these land partnerships (considered as lease by accounting contracts st
Slide 5: IFRS 16 Adoption – P&L Impacts
IFRS 16 Adoption – P&L Impacts As of April 1st, 2019, the Company adopted IFRS 16 – Leasing Operations, which introduces a single accounting model for leased fields and agricultural partnerships. As of the adoption, we recognized the payment obligation at present value as a Liability and the right-o
Slide 6: Operational Highlights
Operational Highlights OPERATIONAL DATA 1Q19 1Q20 Chg.(%) Operational Guidance Crushed Sugarcane (‘000 tons) 9,508 9,042 -4.9% -2% Own 6,527 6,246 -4.3% Third Parties 2,981 2,796 -6.2% 142.2 139.0 Average TRS Agricultural Yield (ton/ha) 79.6 89.1 11.9% Average TRS (kg/ton) 131.9 122.7 -7.0% +8% Prod
Slide 7: Financial Highlights
Financial Highlights R$ ‘000 Executive Summary 1Q19 1Q20 Chg. (%) Net Revenue¹ 771,166 754,934 -2.1% Adjusted EBITDA 401,390 348,383 -13.2% Adjusted EBITDA Margin 52.0% 46.1% -5.9 p.p. Adjusted EBIT 198,124 118,326 -40.3% Adjusted EBIT Margin 25.7% 15.7% -10.0 p.p. Net Income before taxes 153,825 76
Slide 8: EBITDA Cost by TRS – 1Q20 x 1Q19
EBITDA Cost by TRS – 1Q20 x 1Q19 +15% R$/ton TRS 22 13 621 44 542 4.1% 2.4% 8% 1Q19 Production Consecana Other 1Q20 decrease Variation 1Q20 Cash COGS was impacted by: (i) the seasonal effect from the lower dilution of costs, given the reduction in production volume in 1Q20 versus 1Q19 and (ii) the
Slide 9: Indebtedness
Indebtedness Debt Profile Currency - Gross Table 1 Graph 2 Graph 3 Mar/19 Jun/19 Chg.% Financial Institutions R$ '000 12% Gross Debt 4,491,205 4,752,246 5.8% Capital BNDES Market Cash and Cash Equiv alents 2,089,213 2,195,865 5.1% 11% USD 47% Net Debt 2,401,992 2,556,381 6.4% 30% Net Debt / LTM EBI
Slide 10: Hedge Position
Hedge Position Volume Hedged Average Price Average Price SUGAR (ton) (US$ c/p) (R$/ton) ~78% of own 2019/2020 Harvest 555,118 13.65 ~1,184 sugarcane hedged¹ 2020/2021 Harvest 32,615 14.44 ~1,269 Volume Hedged Average Price DOLLAR (US$ ‘000) (R$/US$) ~77% of own 2019/2020 Harvest 134,415 3.97 sugarca
Slide 11: Ethanol Market
Ethanol Market Ethanol Average Price and Ethanol/Gasoline Parity (SP/MG/Goiás) Graph 1 73% 1,892 1,899 1,873 1,916 72% 1,886 71% 1,825 1,798 70% 69% 70% 70% 1,784 1,757 1,759 1,747 1,738 Hydrous ethanol 68% 67% 1,716 1,691 71% 1,632 1,649 inventory 30% lower 70% 70% 1,557 68% 1,572 1,520 1,512 1,720
Slide 12: Contacts - Investor Relations
Contacts - Investor Relations +55 11 2105-4100 ri@saomartinho.com.br www.saomartinho.com.br/ir