4q12 results conference call - adecoagro ir · 4q12 results conference call . 0.3 0.4 0.2 0.3 0.7...
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0.3 0.40.2 0.3
0.7
1.4
4.21.4
0.8
1.6
3.2 3.5
4Q11 4Q12 2011 2012
Cluster
UMA
Sugarcane Crushing 4Q & FY +8%
+90%
Sugar, Ethanol & Energy Business
Operational Performance
2
Production Mix
58% 55%41%
51%
26% 35%
37%34%
16% 10%23% 15%
2Q12 3Q12 4Q12 2012
Hydrous mix
Anhydrous mix
Sugar mix
53.4
26.2
67.5
80.4
61.1
119.3
Sugar (tons) Ethanol (m3) Energy (MWh)
4Q11
4Q12
Sugar, Ethanol and Energy Production 4Q & FY (thousand units) +50%
+133%
+77%
Sugar, Ethanol & Energy Business
Operational Performance
3
+14%
+14%
+2%
247.8
161.4
357.0281.6
183.7
362.5
Sugar (tons) Ethanol (m3) Energy (MWh)
2011
2012
245.0
46.8
235.5
75.5
2011 2012 4Q11 4Q12
2011
2012
67.9
21.7
57.3
17.5
2011 2012 4Q11 4Q12
2011
2012
235.5
63.8
272.9
119.0
2011 2012 4Q11 4Q12
2011
2012
4
Sugar Sales Volumes (thousand tons)
Sugar, Ethanol & Energy Business
Operational Performance
Sugar, Ethanol and Energy Sales 4Q & FY
554
494 538
433 Average Price US$/ton
Hydrous Ethanol Sales Volumes (thousand m3)
Anhydrous Ethanol Sales Volume (thousand m3) Energy Sales Volumes (thousand MWh)
780
634
842
576
Average Price US$/m3
100
89
86
89 Average Price US$/MWh
58.828.4
120.7
48.4
2011 2012 4Q11 4Q12
2011
2012
1081
706 878
665
Average Price US$/m3
130.3 134.8
116.6 121.5
24.4 21.0
277 282
2011 2012
Others
Energy
Ethanol
Sugar
22.6
42.3
4Q11 4Q12
109.597.5
2011 2012 5
Gross Sales FY ($ millions)
Adjusted EBITDA & EBITDA Margin FY ($ millions)
41% 36%
Adjusted EBITDA Margin
Sugar, Ethanol & Energy
Financial Performance
4Q & FY Financial Performance
+2% (11%)
29%
43% Adjusted EBITDA Margin
+87%
Adjusted EBITDA & EBITDA Margin 4Q ($ millions)
34.351.6
43.2
39.04.0
6.783
98
2011 2012
Others
Energy
Ethanol
Sugar +18%
Gross Sales 4Q ($ millions)
13,616
23,391
2011 2012
6
Sugarcane Planted Area
(hectares)
Sugarcane Plantation
(hectares)
+72% +31%
Sugar, Ethanol & Energy
Operational Performance
Agricultural Operations
65,308
85,663
12/31/2011 12/31/2012
7
Ivinhema Construction Update
Sugar, Ethanol & Energy
Ivinhema Construction
(1) Assumes TJLP (Taxa de juros de longo prazo) rate will remain at 5%
Highlights
CONSTRUCTION UPDATE
Phase I completed – 2.0 million tons nominal
crushing capacity
Commercial milling operations will begin end of
April 2013
Mill will reach 4.0 million tons in 2015 and 6.3
million tons in 2017
CAPEX
$290 million invested in mill, machinery and
sugarcane plantations as of December 30, 2012
$410 million to be invested next 5 years
FINANCING
BNDES Loan approved on December 27, 2012
• R$680 million
• 10 year tenor, 2 year grace period
• 4.14% interest rate (1) in BRL
Crop 2012/2013 2011/2012
Harvest Year Harvest Year % Chg
Soybean 62,226 50,720 22.7%
Soybean 2nd Crop 29,521 42,069 (29.8%)
Corn (1) 41,443 41,193 0.6%
Corn 2nd Crop 4,537 6,217 (27.0%)
Wheat (2) 28,574 43,235 (33.9%)
Sunflower 12,478 9,596 30.0%
Cotton 3,098 6,389 (51.5%)
Total Crops 181,876 199,418 (8.8%)
Rice 35,249 31,497 11.9%
Coffee (perennial) 1,632 1,632 0.0%
Total Farming 218,757 232,547 (5.9%)
(1) Includes sorghum
(2) Includes barley
Planted Area Breakdown
79
110 107 119 123
131
25 29 29 36
48
34
14 14
48 38
61 54
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Owned area
Second crop area
Leased area
Planted Area Evolution (thousand hectares)
Farming Business
Operational Performance
8
9
0
20
40
60
80
100
120
140
160
180
200
Sep -2012 Oct -2012 Nov -2012 Dec -2012 Jan -2013 Feb -2013
Mo
nth
ly R
ain
fall
(mm
)
2012/13 Historical Average
Farming Business
Operational Performance
Rainfall Evolution
Argentina
42.6
6.73.4
6.0
58.6
34.3
4.9
(2.4)
4.3
41.1
Crops Rice Dairy Others Farming Consolidated
10
Gross Sales 2012 ($ millions)
Adjusted EBITDA 2012 ($ millions)
Farming Business
Financial Performance
147.9
83.2
19.7 19.9
270.8
196.2
93.9
18.9 13.4
322.4
Crops Rice Dairy Others Farming Consolidated
11
Sold ha 3,507 8,714 4,857 5,005 5,086 2,439 9,475
Sold Farms 1 2 3 1 1 1 2
Strong Track Record of Capitalizing Gains from Land Transformation
7.6
33.1
15.2
18.8 20.0
8.8
27.5
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012
o San Jose is a 7,630 hectare farm.
o Areas with crop potential were fully transformed
and productivity of cattle areas was enhanced
o The farm was sold for $9.3 million, at a 31.4%
premium to Cushman & Wakefield appraisal.
o IRR of 31.8% in nominal US$ terms.
San Jose Sale
o Santa Regina is a 3,618 hectare farm.
o Acquired in 2002 for $625 per hectare.
o 3,200 hectares were transformed into high yielding
croppable hectares to grow crops.
o 51% was sold for $13 million, at an 11% premium
to the Cushman & Wakefield appraisal.
o IRR of 34.2% in nominal US$ terms.
Santa Regina Sale
Land Transformation Business
Financial Performance
Farmland Sales
12
Adecoagro Consolidated
Financial & Operational Overview
Area & Production 2007 2008 2009 2010 2011 2012
Farming Planted Area (hect.) 80,189 139,920 153,026 183,454 192,207 232,547
Sugarcane Planted Area (hect.) 22,378 32,616 49,470 53,799 65,308 88,594
Farming Production (tons) 330,253 453,392 414,962 618,834 666,327 738,847
Sugarcane Crushing (tons) 889,355 1,376,763 2,215,029 4,066,115 4,168,082 4,488,935
Sales 2007 2008 2009 2010 2011 2012
Farming & Land Transformation 118,081 193,038 216,016 197,741 270,766 322,368
Sugar, Ethanol & Energy 24,422 51,171 97,587 204,256 258,939 269,351
Total 142,503 244,209 313,603 401,997 529,705 591,719
Adjusted EBITDA 2007 2008 2009 2010 2011 2012
Farming & Land Transformation 58,767 58,594 51,662 65,735 67,444 68,647
Sugar, Ethanol & Energy (10,146) (6,979) (26,903) 51,735 109,507 97,505
Corporate (11,435) (23,077) (22,262) (22,353) (26,885) (25,442)
Total 37,186 28,538 2,497 95,117 150,066 140,710
Adjusted EBITDA Margin
Farming & Land Transformation(1)
44.9% 24.4% 18.8% 27.6% 19.9% 17.3%
Sugar, Ethanol & Energy(1)(2) -65.0% -36.2% -39.0% 19.9% 37.1% 31.5%
Total 26.1% 11.7% 0.8% 23.7% 28.3% 23.8%
(1) Corporate expenses allocated 50% to Farming & Land Transformation and 50% to Sugar, Ethanol & Energy
(2) Calculated over Net Sales. Net Sales is calculated as Sales less sugar and ethanol sales taxes.
159.2
320.3
379.9
218.8
Debt Cash Net debt
S&E
Farming
13
Net Debt
4Q12 Debt Currency Structure
4Q12 Net debt ($ millions) 4Q12 Debt Term Structure
Total debt as of December 31, 2012,
stands at $539 million
Our debt structure increased from
60% long term to 66% during 4Q12
Net debt remains at $320.3 million
34%
66%
Short term
Long Term
59%
38%
3%
Brazilian Reals
US Dollars
Argentine Pesos
14
This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us
and our industry. These forward-looking statements can be identified by words or phrases such as “anticipate,” “forecast”, “believe,” “continue,”
“estimate,” “expect,” “intend,” “is/are likely to,” “may,” “plan,” “should,” “would,” or other similar expressions.
The forward-looking statements included in this press release relate to, among others: (i) our business prospects and future results of operations; (ii)
the implementation of our business strategy, including our development of the Ivinhema project; (iii) our plans relating to acquisitions, joint ventures,
strategic alliances or divestitures; (iv) the implementation of our financing strategy and capital expenditure plan; (v) the maintenance of our
relationships with customers; (vi) the competitive nature of the industries in which we operate; (vii) the cost and availability of financing; (viii) future
demand for the commodities we produce; (ix) international prices for commodities; (x) the condition of our land holdings; (xi) the development of the
logistics and infrastructure for transportation of our productions in the countries where we operate; (xii) the performance of the South American and
world economies; (xiii) weather and other natural phenomena; (xiv) the relative value of the Brazilian Real, the Argentine Peso, and the Uruguayan
Peso compared to other currencies; and (xv) developments in, or changes to, the laws, regulations and governmental policies governing our business,
including environmental laws and regulations.
These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-
looking statements are reasonable, our expectations may turn out to be incorrect. Our actual results could be materially different from our
expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release
might not occur, and our future results and our performance may differ materially from those expressed in these forward-looking statements due to,
inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on
these estimates and forward-looking statements.
The forward-looking statements made in this press release related only to events or information as of the date on which the statements are made in
this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the
statements are made or to reflect the occurrence of unanticipated events.
Disclaimer
15
Investor Relations
Charlie Boero Hughes
CFO
Hernan Walker
IR Manager
E-mail ir@adecoagro.com
Website www.adecoagro.com
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