Sao Martinho S.a. · BMFBOVESPA:SMTO3
Sao Martinho — 3Q20 Earnings Presentation
10 slides from Sao Martinho's earnings presentation, February 2020
Slide 1: Results 3rd Quarter 2019/2020 Harvest
Results 3rd 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. Operational Highlights 4. Indebtedness 2. Financial Highlights 5. Hedge Position 3. Margin by Product 6. Sugar and Ethanol Market 33
Slide 4: Operational Highlights – 19/20 Harvest Conclusion
Operational Highlights – 19/20 Harvest Conclusion OPERATIONAL DATA 12M19 12M20 Chg.(%) Crushed Sugarcane (‘000 tons) 20,450 22,640 10.7% Own 13,692 15,740 15.0% Third Parties 6,758 6,900 2.1% Mechanized Harvest 100% 100% 0.0 p.p. Agricultural Yield (ton/ha) 74.2 82.9 11.7% Average TRS (kg/ton) 142.2
Slide 5: Financial Highlights
Financial Highlights R$ ‘000 Executive Summary 3Q19 3Q20 Chg. (%) Net Revenue¹ 842,562 1,029,978 22.2% ETHANOL +6.6% Adjusted EBITDA 417,320 541,440 29.7% (‘000 m3 - R$/m3) 1,951.3 Adjusted EBITDA Margin 49.5% 52.6% 3.0 p.p. Graph 1 1,830.3 Adjusted EBIT 157,751 237,686 50.7% Adjusted EBIT Margin 18
Slide 6: Margin by Product – 3Q19 x 3Q20
Margin by Product – 3Q19 x 3Q20 SUGAR ETHANOL (R$/ton) (R$/m3) Graph 1 Graph 2 +6.6% +0.9% 1,830 1,951 Price 1,120 1,130 Margin Var. -1.9% +6.8 p.p. -1.6% Margin Var. 1,569 1,539 +2.3 p.p. 1,029 1,013 Cash Cost 3Q19 3Q20 3Q19 3Q20 ✓ Better sugar and ethanol prices ✓ Higher cost dilution due to incre
Slide 7: Indebtedness
Indebtedness Table 1 Currency - Gross Graph 2 Mar/19 Dec/19 Chg.% R$ '000 Gross Debt 4,491,205 4,343,431 -3.3% Cash and Cash Equiv alents 2,089,213 1,392,858 -33.3% BBB- Net Debt 2,401,992 2,950,573 22.8% Investment Grade Net Debt / LTM EBI TDA - R$ 1.46 x 1.65 x 13.0% USD Global Scale Net Debt / LT
Slide 8: Hedge Position
Hedge Position Volume Hedged Average Price Average Price¹ SUGAR (ton) (US$ c/p) (R$/ton) ~100% of own 2019/2020 Harvest 373,794 13.75 ~1,232 sugarcane hedged 2020/2021 Harvest 512,852 13.65 ~1,263 ~60% of own sugarcane hedged² 1- For the sugar volume hedged but not denominated in U.S. dollar, the sp
Slide 9: Sugar and Ethanol Market
Sugar and Ethanol Market Global Supply/Demand of Sugar ‘000,000 tons Graph 1 The sugar deficit, due to 10.4 7.8 climate conditions, notably in India and 3.9 4.0 Thailand, should be higher than expected by the market, leading to an -0.4 -3.1 important price recovery -5.1 -11.2 12/13 13/14 14/15 15/16
Slide 10: Contacts – Investor Relations
Contacts – Investor Relations +55 11 2105-4100 ri@saomartinho.com.br www.saomartinho.com.br/ir