Sao Martinho S.a. · BMFBOVESPA:SMTO3
Sao Martinho — 4Q19 Earnings Presentation
12 slides from Sao Martinho's earnings presentation
Slide 1: Earnings Release Conference Call
Earnings Release Conference Call 4th Quarter Harvest 2018/2019
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. Financial Highlights 5. Hedge Position 2. Margin by Product 6. Ethanol Market 3. Indebtedness 7. Projects 4. Production Guidance 8. Dividends & Buyback 33
Slide 4: Financial Highlights
Financial Highlights R$ ‘000 Executive Summary 4Q18 4Q19 Chg. (%) 12M18 12M19 Chg. (%) Net Revenue¹ 1,118,241 1,124,508 0.6% 3,621,987 3,381,663 -6.6% Adjusted EBITDA 585,629 509,586 -13.0% 1,949,994 1,644,534 -15.7% Adjusted EBITDA Margin 52.4% 45.3% -7.1 p.p. 53.8% 48.6% -5.2 p.p. Adjusted EBIT 29
Slide 5: Margin by Product – 12M18 x 12M19
Margin by Product – 12M18 x 12M19 SUGAR ETHANOL (R$/ton) (R$/m3) Graph 1 Graph 2 +1.4% -14.8% 1,729 1,753 Price 1,290 1,099 +6.5% Margin Variation -4 p.p. Margin Variation 1,489 +3.3% 1,398 -15 p.p. 922 953 Cash Cost 12M18 12M19 12M18 12M19 8% crushing reduction compared to the previous harvest
Slide 6: Indebtedness
Indebtedness Debt Profile Currency - Gross Table 1 Graph 2 Graph 3 Mar/18 Mar/19 Chg.% Financial R$ '000 Institutions 16% Gross Debt 3,975,153 4,491,205 13.0% Cash and Cash Equiv alents 1,512,385 2,089,213 38.1% Capital USD BNDES Market Net Debt 2,462,768 2,401,992 -2.5% 11% 32% 40% Net Debt / LTM E
Slide 7: Production Guidance: 19/20 Harvest
Production Guidance: 19/20 Harvest 19/20 18/19 Chg. (%) Guidance OPERATIONAL DATA Crushing ('000 tons) 20,450 22,000 8% Average TRS (Kg/Ton) 142.2 139.0 -2% Max Max Production Mix Scenarios Sugar Ethanol Sugar ('000 tons) 992 1,415 1,055 Ethanol ('000 m³) 1,097 915 1,145 Cogeneration ('000 MWh) 829
Slide 8: Hedge Position
Hedge Position Volume Hedged Average Price Average Price SUGAR (ton) (US$ c/p) (R$/ton) 68% of own sugarcane hedged¹ 2019/2020 Harvest 574,220 13.54 ~1,190 Volume Hedged Average Price DOLLAR (US$ ‘000) (R$/US$) 71% of own sugarcane hedged¹ Sugar 165,451 3.98 1- Considering the minimum range for the
Slide 9: Ethanol Market
Ethanol Market Ethanol Average Price and Ethanol/Gasoline Parity (SP/MG/Goiás) Graph 1 • Consumption of ethanol in 73% 1,916 the 18/19 crop grew 18%, 72% 1,892 1,899 1,873 1,886 71% 1,825 with a 42% increase in 70% 1,759 1,798 1,784 70% 69% 70% 1,757 1,747 hydrous ethanol 68% 67% 1,716 1,691 71% 1,6
Slide 10: Projects
Projects Projects - 18/19 Harvest Projects - Future Description Amount invested Value Creation Planting - Furlan Acquisition R$40 million Acquisition of Furlan's biological assets • COA - Agricultural Automation Planting - Boa Vista Mill Expansion R$23 million Expansion of crushing capacity to 5.2 m
Slide 11: Dividends & Buyback
Dividends & Buyback Dividends & Buyback¹ • Dividends: R$ 110 million o Payout of 35.0% (above historical average) • Share Buyback of up to 10 million shares o Deadline: 18 months Equivalent to ~100% of 18/19 Harvest Earnings 1 - Management Proposal to be voted at the General Meeting on July 26, 2019
Slide 12: Contacts - Investor Relations
Contacts - Investor Relations +55 11 2105-4100 ri@saomartinho.com.br www.saomartinho.com.br/ri