1q13 results conference call - adecoagro ir...1q13 results conference call . 2 lack of rains...
TRANSCRIPT
1Q13 Results Conference Call
2
Lack of Rains Impacted Soybean Yields
Farming Business
Operational Performance
0
30
60
90
120
150
180
210
240
Oct Nov Dec Jan Feb Mar April
Mo
nth
ly R
ain
fall
(mm
)
2012/13
Historical Average
0
20
40
60
80
100
120
140
Oct Nov Dec Jan Feb Mar Apr
Mo
nth
ly R
ain
fall
(mm
)
2012/13
Historical Average
2012/13 Harvest Year: Humid Pampas 2012/13 Harvest Year: Northwest Argentina
Corn Soybean 2nd Crop Soybean
Sunflower Wheat Rice
1.9 1.9
% Harvested 2011/12 2012/13
1.5
1.2
% Harvested 2011/12 2012/13
2.6
1.8
% Harvested 2011/12 2012/13
3
Farming Business
Harvested Area & Yields
5.4 5.7
% Harvested 2011/12 2012/13
20.5%
2.5
2.8
% Harvested 2011/12 2012/13
48.1%
5.2
6.4
% Harvested 2011/12 2012/13
28.3%
100% 100%99.8%
12.0
0.8 0.2
(0.3)
12.714.7
4.6
0.2
(0.7)
18.8
Crops Rice Dairy Others Farming Consolidated
27.7 27.5
6.41.6
63.3
36.0
20.3
4.71.7
62.7
Crops Rice Dairy Others Farming Consolidated
4
Sales 1Q ($ mm)
Adjusted EBITDA 1Q ($ mm)
(23% )
+36%
+35% (6%)
+1%
+23%
Farming Business
Financial Performance
1Q13
1Q12
+447%
+8% (121%)
+48%
5
Land Transformation
Farm Sales
The farms have a total area of 3,834 hectares, 904 hectares planted with coffee trees.
In addition, Adecoagro entered into an agreement in which the same buyer will operate 728
hectares of coffee on the Rio de Janeiro farm for an eight year period.
Adecoagro will receive a total of $20.8 million in cash proceeds for the farm sales and $3.8
million for the Rio de Janeiro farm
The farms plus plantations were sold at a 7% premium to the combination of the Cushman
& Wakefield independent appraisal dated September 2012 and the fair value of the coffee
plantation.
The transaction will generate approximately $8.0 million of Adjusted EBITDA
Sale of Lagoa de Oeste and Mimoso Farms
6
(2%)
24%
Sugar, Ethanol and Energy Business
Operating Performance
Sugarcane Planting (hectares) Sugarcane Plantation Size (hectares)
6,470 6,371
1Q12 1Q13
71,005
87,971
03/31/2012 03/31/2013
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Sugar, Ethanol and Energy Business
Financial Performance
1.2 0.3
28.0 29.5
11.4 9.9
40.6 39.7
1Q12 1Q13
Sugar
Ethanol
Energy
8.7
16.6
1Q12 1Q13
(5.6)
10.2
1Q12 1Q13
(4.7)
15.0
1Q12 1Q13
Gross Profit Manufacturing ($ mm)
Adjusted EBITDA ($ mm) Hedge Results ($ mm)
Net Sales ($ mm)
247K tons
of sugar
hedged
20.8
cents/lb
Area & Production 2010 2011 2012 1Q12 1Q13
Farming Planted Area (hect.) 183,454 192,207 232,547 232,547 218,757
Sugarcane Planted Area (hect.) 53,799 65,308 85,663 71,005 87,971
Farming Production (tons) 618,834 666,327 738,847 - -
Sugarcane Crushing (tons) 4,066,115 4,168,082 4,488,935 - -
Net Sales 2010 2011 2012 1Q12 1Q13
Farming & Land Transformation 197,741 270,766 322,368 62,678 63,270
Sugar, Ethanol & Energy 204,256 258,939 269,351 39,670 40,643
Total 401,997 529,705 591,719 102,348 103,913
Adjusted EBITDA 2010 2011 2012 1Q12 1Q13
Farming & Land Transformation 65,735 67,444 68,647 12,673 18,762
Sugar, Ethanol & Energy 51,735 109,507 97,505 (4,746) 14,867
Corporate (22,353) (26,885) (25,442) (6,113) (4,616)
Total 95,117 150,066 140,710 1,814 29,013
Adjusted EBITDA Margin
Farming & Land Transformation(1)
27.6% 19.9% 17.3% 15.3% 26.0%
Sugar, Ethanol & Energy(1)(2) 19.9% 37.1% 31.5% -19.7% 30.9%
Total 23.7% 28.3% 23.8% 1.8% 27.9%
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Adecoagro Consolidated
Financial Performance
172
383
421
210
Debt Cash & Equivalents Net debt
S&E
Farming
9
Net Debt
1Q13 Debt Currency Structure
1Q13 Net debt ($ millions) 1Q13 Debt Term Structure
Total debt as of March 31, 2013, was
of $593 million
Debt Increased is driven by the
construction of the Ivinhema mill
Net debt as of March 31, 2012, was
of $383 million
34%
66%
Short term
Long Term
62%
32%
6%
Brazilian Reais
US Dollars
Argentine Pesos
10
Sugar, Ethanol and Energy Business
Ivinhema update
Ivinhema Construction: First Phase Completed
Boiler Ethanol Distillery
Sugar Storage Sugar Factory
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Disclaimer
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.
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Investor Relations
Charlie Boero Hughes
CFO
Hernan Walker
IR Manager
E-mail [email protected]
Website www.adecoagro.com