Sao Martinho S.a. · BMFBOVESPA:SMTO3

Sao Martinho — 2Q09 Earnings Presentation

9 slides from Sao Martinho's earnings presentation, December 2008

  1. Slide 1: 2Q09 Earnings Conference Call

    2Q09 Earnings Conference Call 2008/2009 Harvest

  2. 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 the

  3. Slide 3: 2Q09 Highlights

    2Q09 HIGHLIGHTS Adjusted EBITDA in 2Q09 was R$ 34.9 million (EBITDA margin of 18%), increasing by 47% in relation to 2Q08; We raised R$ 330 million in long-term debt; Stock Buyback Program; Creation of the “ALLICOM” consortium with the groups São João and Santa Cruz, aimed at gaining scale in sugar

  4. Slide 4: Ethanol Market

    ETHANOL MARKET 10.00 14.00 12.00 Exports 9.00 20.4 10.00 12.00 Domestic Market 8.00 57% 4.1 10.00 15.3 EX 10.00 8.00 7.00 2.6 28% 8.00 6.00 8.00 DM 6.00 5.00 6.00 6.00 4.00 16.3 4.00 12.7 4.00 3.00 4.00 2.00 0.66 0.64 0.52 0.50 0.34 0.39 0.25 0.24 0.50 2.00 2.00 0.25 0.18 0.17 0.13 0.25 0.39 2.00 0.

  5. Slide 5: Sugar Market

    SUGAR MARKET 18.00 NY11 NY11 - R$/Ton New U.S. dollar exchange rate offsets the R$ 670 decline in sugar prices in recent months; 17.00 NY11 - US$ - Cents/Pound R$ 620 16.00 R$ 570 NY11 - R$ / Tonne Business model focused on own sugarcane supply – leveraged on sugar 15.00 R$ 520 R$ 470 14.00 and etha

  6. Slide 6: Indebtedness

    INDEBTEDNESS R$ 506 M Enough resources to cover short-term R$ 300 M obligations Total R$ 206 M Inventories High level of Cash 2Q09 R$ 53 M inventories for Capex 2H09 NET Boa Vista Mill R$ 100 M Short-term Funding via export Debt Total prepayment facility and BNDES’ Finem R$ 353 M line strengthened c

  7. Slide 7: Operating Results

    OPERATING RESULTS 2Q09 2Q08 Chg.% Net Revenue 194,313 179,071 +8.5 2Q09 sales volume in COGS (Cash Cost) (119,461) (120,733) -1.1 virtually in line with Gross Profit 39,111 13,679 +185.9 2Q08; EBITDA (Adjusted) 34,974 23,787 +47.0 Better anhydrous and EBITDA Margin 18.0% 13.3% +4.7 p.p hydrous ethan

  8. Slide 8: Product Availability

    PRODUCT AVAILABILITY Inventories 2Q09 Production 2H09 (*) Balance 2H09 Sales 1H09 Sugar 290,868 121,965 412,833 145,375 Tonnes Hydrous 133,455 109,295 242,750 145,889 M3 Anhydrous 68,095 69,785 137,879 119,439 M3 Total Ethanol 201,550 179,080 380,539 265,328 M3 (*) Estimated production from October

  9. Slide 9: IR Contacts

    IR Contacts João do Val CFO and IR Officer Felipe Vicchiato Investor Relations Phone: +55 11 2105-4100 E-mail: ri@saomartinho.ind.br Website: www.saomartinho.ind.br/ir 9

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