earnings release 2 q09 presentation
TRANSCRIPT
2Q09 Presentation
Earnings Presentation
Eduardo de Come (CFO and IRO)
Marcos Leite (IR Manager)
• CONCLUSION OF BRASIL ECODIESEL'S FINANCIAL RESTRUCTURING.
• Conclusion of the 1st Capital Increase in the total amount of R$104 million, of which R$59
million corresponds to the conversion of debt and R$45 million to fresh money.
• Announcement of 2nd Capital Increase, expected to expire on August 07, 2009, in the minimum
amount of R$118 million and maximum amount of R$408 million, of which R$106 million will
correspond to the conversion of debt into stock.
• Restructuring of the method for amortizing R$78 million of the non-converted debt, with maturity
in 48 months and payment from July 2010, at a cost of 120% of the CDI rate.
• New contracts for the delivery of 57,000 m3 of biodiesel in 3Q09, in 4 plants.
• Sales of 19,300 m3 in 2Q09, 12,700 m3 of which in June, following the rebuilding of working
capital, which enabled the Company to resume normal operations.
• Net Revenue of R$52.2 million, Gross Profit of R$13.9 million, and Gross Margin of 26.6%.
• Adjusted EBITDA of R$1.9 million negative and Net Profit of R$21.7 million on the 2Q09. In
June, Adjusted EBITDA of R$2.4 million and Net Profit of R$1.4 million.
Destaques do Período
Volume slightly higher than 1Q09 and 2Q08, with 66% of the revenues in june, when the
company recouped its working capital ,allowing to operate in normal conditions.
Operational Performance
Biodiesel Floriano Crateús Iraquara Porto Nacional Rosário do Sul Itaquí Total
Sales of B100 (m3)
2T08 1.084,41 299,36 5.842,40 470,21 6.945,50 4.276,45 18.918,32
1T09 3.683,14 6.917,90 0,00 6.649,70 1.117,20 0,00 18.367,95
2T09 114,33 0,00 4.502,23 127,80 10.616,55 3.904,81 19.265,71
Revenues of B100
(R$ ths)
2T08 3.289,24 1.105,59 15.714,05 982,08 14.583,47 12.111,03 47.785,46
1T09 10.072,97 18.819,95 0,00 18.090,58 3.386,51 0,00 50.370,01
2T09 246,85 0,00 11.434,57 275,93 26.959,87 9.916,30 48.833,52
Income Statement
Operational Performance
2Q08 1Q09 2Q09 Jun/08 Jun/09
Net Revenue 44,985 42,620 52,198 11,597 38,342
COGS (58,992) (38,978) (38,312) (15,360) (24,578)
Gross Profit (Loss) (14,007) 3,642 13,886 (3,763) 13,764
Net Profit (Loss) (83,944) (27,416) 21,740 (52,460) 1,418
Adjusted EBITDA: to represent more accurately the specific results in the periods, we present
below the Company’s adjusted EBITDA, highlighting the results in June, which we consider a
base month.
Operational Performance
2Q08 1Q09 2Q09 Jun/08 Jun/09
Net Profit (Loss) of the period (83.944) (27.416) 21.740 (52.460) 1.418
Depreciation and Amortization 4.490 5.227 5.227 1.521 1.666
Financial Results 12831 12.829 11.517 5.424 6.204
Penalties – Petrobrás 19.797 19.797
Provisions 17.890 3.416 1.262 17.890 2.857
Tax benefits (11.022) (11.022)
Revenues from Use of Rights contract (36.383)
Other 3.816 5.692 857 1.295
Adjusted EBITDA (25.120) (5.944) (1.966) (6.972) 2.418
Gross revenue in 2Q09 was R$49.6 million, of which 98.4%, or R$48.8 million, was derived
from the sale of 19,300 m³ of biodiesel.
0
50.000
100.000
150.000
200.000
250.000
1T08 2T08 3T08 4T08 1T09 2T09
Outros
Resíduos
Glicerina
Mamona
Girassol
Biodiesel B100
Operational Performance
In 2Q09, we recognized in our Deductions tax incentives that we had been booking under
liabilities, since we needed to comply with certain conditions in order to book them under
profit. As a result, total deductions in 2Q09 represented revenue of R$2.5 million. Without the
effect of the tax benefits, we would have a deduction of R$8.5 million, representing 17% of
the Gross Revenues.
Net Revenues: With the recognition of the tax credits of around R$11 million described above,
Net Revenue was R$52.2 million in 2Q09, 22% and 14% higher than in 1Q09 and 2Q08,
respectively.
Operational Performance
Cost of Goods Sold of R$ 38.3 million in the
2Q09. Óleo vegetal remains the main item in our
production costs, and represents, together with
methanol 94% of the cost of biodiesel sold, keeping
the same proportion observed in 2008.
Vegetable oil increased its share of costs, mainly
due to the reduction in the costs of methanol,
another main input, given that the remaining
components of COGS maintained practically same
proportion observed in previous quarters.
83%
11%
2% 1% 3%
Óleo Vegetal Matéria Prima Mão de Obra GGF Depreciação
Gross Profit reached R$13.9 million, representing 26.6% of the Net Revenues.
Operational Performance
General and Administrative Expenses of R$ 9.1 milhões in the 2TQ9.
Reduction of 33% in General and Administrative Expensas related to 2Q08. It remained in the
same level of 1Q09.
Eliminating non-recurring expenses would lead the G&A to R$ 7.9 million in the quarter,
representing a reduction of 13.3% related to 1Q09 and 42.2% related to 2Q08.
10.509
13.715
9.003
11.090
9.153 9.100
7.932
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
1T08 2T08 3T08 4T08 1T09 2T09 2T09*
Despesas Gerais e Administrativas
Operational Performance
Other Operating Revenue: In 2Q09, Other Operating Revenue totaled R$28.7 million, net. We
recorded revenue of R$37.2 million related to the rescission of the contract assigning the right to
use our industrial capacity, which was recognized under long-term liabilities. This contract was
rescinded in April 2009, with an accounting effect from the write-off of a liability of some R$36.3
million, which represents the difference between the revenue recognized and the fine of R$0.9
million paid due to the rescission of the contract, with a positive impact on the Company’s
Shareholders’ Equity.
We booked an expense of R$1.3 million related to the provisions for the adjustment of
inventories to market value and for doubtful accounts.
Operational Performance
We posted a Net Financial Expense of R$11.5 million in the quarter, arising primarily from
interest charges on loans. We recorded Financial Expenses of R$15.4 million and Financial
Income of R$3.9 million, this latter mainly due to the foreign exchange gains from loans
denominated in U.S. dollar, which was converted into stock under the 1st Capital Increase.
We expect our financial expenses to remain significantly below recent figures, following the
conclusion of the conversion of debt under the 2nd Capital Increase and the restructuring of the
remaining debt, the bulk of which has a cost of 120% of the CDI overnight rate.
Operational Performance
Indebtedness
Following the conclusion of the 1st Capital Increase, Brasil Ecodiesel reduced its net debt to
R$227.1 million, due to the conversion of credits into stock as well as to the amortization of working
capital loans.
Indebtedness (in R$ thsl) 1Q09 2Q09
Short-Term 120,106 92,543
(+) Long – Term 177,991 136,912 (=) Total Indebtedness 298,097 229,455
(-) Cash and Equivalents 7,416 2,321
(=) Net Debt 290,681 227,134
Indebtedness
We present below the Company’s debt situation considering the conclusion of the debt
conversions currently in progress, which in not reflected in the 2Q09 balance sheet yet. In addition
to lower level of debt, we also consider the new debt maturities in the long term, with an effective
lengthening of the debt profile.
136,912
78,646
92,543
44,532
2Q09 After Capital Increase
Long Term Short Term
229,455
123,178
Investor Relations
Eduardo de Come
CFO and IRO
Marcos Leite
IR Manager
Tel: +55 (21) 2546-5031
Website: www.brasilecodiesel.com.br/ri
Disclaimer
• The estimates and forward-looking statements contained in this presentation are based in large part on current expectations and estimates of future events and trends that affect or could potentially affect the business, financial situation, operational results and prospects of BRASIL ECODIESEL. These estimates and statements are subject to various risks, uncertainties and assumptions and are based on the information currently available to BRASIL ECODIESEL. This presentation is also available on the website www.brasilecodiesel.com.br/ri.
• These estimates involve risks and uncertainties and do not constitute a guarantee of future performance, since actual results or developments may differ substantially form the assumptions described in the estimates and forward-looking statements. In view of the risks and uncertainties involved, the estimates and forward-looking statements in this presentation may not occur and the future results and performance of BRASIL ECODIESEL may differ substantially from those envisaged by the estimates of BRASIL ECODIESEL. Given these uncertainties, investors should not base any investment decision on these estimates and forward-looking statements.
• The words “believe”, "can”, “could”, “estimate”, “continue”, “anticipate”, “plan”, “expect” and similar expressions seek to identify estimates. These estimates refer only to the date on which they were expressed, and BRASIL ECODIESEL is not responsible for updating or revising any of these estimates in light of the occurrence of new information, future events or any other factors.
• This presentation does not constitute an offer, invitation or solicitation to subscribe to or acquire any securities, and this presentation or any information contained herein does not constitute the basis of an agreement or commitment of any kind.