Shree Renuka Sugars Limited · NSE:RENUKA

Shree Renuka Sugars — Merger or Acquisition (2010)

15 slides from Shree Renuka Sugars's merger presentation, 2010

  1. Slide 1: Equipav S.A. - Acucar e Alcool

    Equipav S.A. - Acucar e Alcool

  2. Slide 2: Index

    INDEX  Investment Rationale  Agreement highlights  About Equipav  Plans for Equipav 2

  3. Slide 3: Investment Rationale: Brazil

    Investment Rationale: Brazil  Sugar/ ethanol sector in Brazil has low operating cost, high scalability and highly conducive climatic conditions  Ability to cultivate significant portion of cane supply allows capture of value of the agricultural part of the business  India, South Asia and the Midd

  4. Slide 4: 4

    4

  5. Slide 5: Agreement Highlights

    Agreement Highlights  Shree Renuka Sugars has entered into an agreement for acquiring majority stake of not less than 50.34% with full management control  Enterprise Valuation of R$ 2.064 billion (USD 1.147 billion)  Total Primary Investment of R$ 450 million (US$ 250 million) Exchange rate: 1 US

  6. Slide 6: Debt Details

    Debt Details  Company had net debt of R$ 1.53 billion (US$ 860 million) as on 31st Dec 2009  Local currency denominated debt R$ 912 million  US$ denominated debt US$ 345 million  Proposed Debt restructuring for Main Banks  Debt Terms: 3 yrs principal moratorium + 7 yrs repayment period  R$ 108

  7. Slide 7: Comparison of Recent Transactions

    Comparison of Recent Transactions USD/ ton cane crushed 160 Co-generation Sugar + Ethanol 145 140 35 120 109 105 107 110 100 33 80 77 76 60 40 20 0 Cosan Bunge Shree Renuka Shree Renuka Replacement + NovaAmerica + Moema + VDI + Equipav cost 7 Source: Itau BBA

  8. Slide 8: 8

    8

  9. Slide 9: About Equipav

    About Equipav  Equipav consists of two very large and modern sugar/ethanol mills with integrated co-generation facilities in Sao Paulo state in Southeast Brazil having a combined cane crushing capacity of 10.5 million tons of cane per annum (44,400tcd).In addition, Equipav has a co-generation capac

  10. Slide 10: 10

    10

  11. Slide 11: Equipav : Logistics

    Equipav : Logistics  Flexibility to choose between the ports of Santos and Paranagua  Almost the same distance from both the main sugar export ports  Excellent and diversified access: waterways, railway and highways  Synergy with Shree Renuka shareholding in PASA port terminal at Paranagua 11

  12. Slide 12: Crushing Capacity Ranking

    Crushing Capacity Ranking 70 Crushing Capacity (mm t) - 2009/10 60 23 other companies 60 with crushing capacity of 12 mm t 50 to 4 mm t 37 36 40 30 21 17 20 16 15.5 14 13 13 13 10.5 10 3 0 Acquisition of Equipav will make Shree Renuka one of the largest players in Brazil Source: Itau BBA 12

  13. Slide 13: ~~ eS

    ~~ eS 13

  14. Slide 14: Plans for Equipav

    Plans for Equipav  Reconstitution of the Board (9 in total, with 5 from Renuka, 1 independent and 3 from Current shareholders)  Renuka to have full management control. CEO and all other key officers to be appointed by Renuka.  Investment of R$ 218 million funded from Renuka infusion to complete e

  15. Slide 15: Thank you

    Thank you 15

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