earnings webcast - adecoagro ir · crops rice dairy others land transformation farming & lt...
TRANSCRIPT
1st Quarter 2020Earnings Webcast
May 15, 2020
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.
Safety Measures
Develop an intense capacitation and communication program
Body temperature controls upon arrival
Mandatory social distancing in the workplace
Reduction of maximum capacity at lunch rooms, transportation and cars
Increased sanitary barriers
Main measures adopted across our facilities include but are not limited to:
Set aside risk groups
Home office for corporate office employees
Mandatory quarantine for travelers and those who have close contact with travelers and/or symptomatic persons
418
46
155127
83
283
157
219
161183 182
34
Oct-18 Oct-19 Nov-18 Nov-19 Dec-18 Dec-19 Jan-19 Jan-20 Feb-19 Feb-20 Mar-19 Mar-20
Sugar, Ethanol & Energy Business – Rainfalls & Sugarcane Crushing
1,352 1,318
1Q19 1Q20
Sugarcane crushing(In Thousands Tons)
Mato Grosso do Sul Rains (In mm)
(2.5%)
201190 198 207
230
173
3M19 500 3M20 436
∆ % (12.7%)
10 Y. Avg 6103M20 436
∆ % (28.4%)
10 y. Avg
Operational Metrics - 1Q19 vs. 1Q20 Operational Metrics - 9M19 vs. 9M18Operational Metrics 1Q19 1Q20 % Change
Total Days 90 46 (48.9%)Effective Milling Days 41 32 (21.5%)Total Crushing (k tons) 1,352 1,318 (2.5%)
Milling per Day (k tons) 32,688 40,609 24.2%
Harvested area (ha) 14,610 20,353 39.3%
92
65
1Q19 1Q20
10798
1Q19 1Q20
9,871
6,351
1Q19 1Q20
Yield per Hectare(tons/hectare)
TRS per Ton(kg/ton)
TRS per Hectare(kg/hectare)
(29.6%) (8.7%) (35.7%)
Sugar, Ethanol & Energy Business – Productivity
48.6%59.2%
78.1%86.6%
62.4%
34.5%27.0%
8.3%3.0%
35.8%
16.9% 13.8% 13.6% 10.4%1.9%
2 0 1 7 2 0 1 8 2 0 1 9 1 Q1 9 1 Q2 0
Energy
Sugar
Ethanol
9
11
13
15
17
19
21
Anhydrous MS (cts/lb) Hydrous MS (cts/lb) Sugar (cts/lb)
53%74% 85%
98% 95%
47%26% 15%
2% 5%
12M17 12M18 12M19 1Q19 1Q20
Sugar
Ethanol
86,66677,431
1Q19 1Q20
Ethanol Production(M3)
(27.9%)
Price Evolution(in cts/lb)
Ethanol Production Mix Evolution(in %)
SE&E EBITDA Distribution (1)
(in %)
1Q201Q19
(10.7%)
(2.5%)
Sugar, Ethanol & Energy Business – Production Mix
(1)Includes Other Operating Income
138,978
106,409
1Q19 1Q20
8,3424,194
10,674
2,834
62,795
52,246
1Q19 1Q20
Ethanol
Sugar
Energy
31,996
8,908
1Q19 1Q20
139,297113,026
1Q19 1Q20
Ethanol Sales Volume (m3)
Sugar Sales Volume (Tons)
Energy Sales Volume (MWh)
AverageRealizedPrice (1)cts/lbs
AverageRealizedPrice (1)cts/lbs
(27.5%)
Net Sales 1Q19 vs 1Q20($´000)
15.7 16.3
15.113.6
(9.9%)
60.039.0
(34.3%)
3.8%
AverageRealizedPrice
(1) Sugar equivalent
81,81159,275
(23.4%)
(72.2%)
(18.9%)
(16.8%)
(73.4%)
(49.7%)
Sugar, Ethanol & Energy Business – Sales
Adjusted EBITDA 1Q19 vs. 1Q20($´000)
31,197
40,917
1Q19 1Q20
31.2%
Adjusted EBITDA Margin
38.1%
69.0%
Sugar, Ethanol & Energy Business – Adjusted EBITDA
Farming Business– 2019/20 Planting Plan
Farming Production Data
Planting & Production
2019/20 2018/19 Chg % Hectares % Harvested Production 2019/20 2018/19 Chg %
Soybean 47,530 47,690 (0.3%) 42,548 89.5% 118,356 2.8 3.5 (21.4%)
Soybean 2nd Crop 27,169 25,620 6.0% 27,169 100.0% 54,612 2.0 1.4 47.2%
Corn (1) 53,914 43,396 24.2% 20,393 37.8% 149,536 7.3 8.1 (9.0%)
Corn 2nd Crop 7,319 4,272 71.3% - 0.0% - - 0.0 (100.0%)
Wheat (2) 32,925 40,210 (18.1%) 32,799 99.6% 104,225 3.2 2.9 11.4%
Sunflower 6,818 3,825 78.2% 6,818 100.0% 12,815 1.9 1.6 20.6%
Cotton 4,461 5,316 (16.1%) 283.0 6.3% 67.1 0.2 0.0 n.a
Peanut 16,814 15,479 8.6% 1,379 8.2% 4,267 3.1 3.2 (2.7%)
Total Crops 196,950 185,807 6.0% 131,388 66.7% 443,877 n.a
Rice 41,544 39,308 5.7% 37,925 91.3% 255,707 6.7 6.1 11.0%
Total Farming 238,494 225,115 5.9% 169,313 71.0% 699,584
Owned Croppable Area 106,513 107,681 (1.1%)
Leased Area 97,493 86,307 13.0%
Second Crop Area 34,488 31,127 10.8%
Total Farming Area 238,494 225,115 5.9%
Dairy 1Q20 1Q19 Chg % 1Q20 1Q19 Chg % 1Q20 1Q19 Chg %
Milk Production 9,954 8,338 19.4% 31.7 26.9 18.0% 35.0 35.8 (2.2%)
(1) Includes chia
(2) Includes barley.
(3) Yields for 2019/20 season are partial yields related to the harvested area as of April 30, 2020. Yields for 2018/19 reflect the full harvest season.
Note: Some planted areas may reflect minor adjustments compared to previous reports due to a more accurate area measurement, which occurred during the current period
Productivity (Liters per cow per day) Milk Production (MM liters)(1) Milking Cows (Average Heads)
2019/20 Harvested Area Yields (Tons per hectare) (3)Planted Area (hectares)
5,466
14,029
2,777
294
9,376
31,942
6,318
15,177
3,179
6
-
24,680
Crops Rice Dairy Others Land Transformation Farming & LT
1Q19 1Q20
Farming & Land Transformation Businesses – Financial Performance
Farming & Land Transformation Adjusted EBITDA 1Q19 vs. 1Q20($ ´000)
15.6%
8.2%
14.5%
(22.7%)
849 808 804877
814892
550441
-100
100
300
500
700
900
1,100
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Production
7.28.3
10.2 10.211.4 10.8
1.4 1.3
(2.5%)
(19.8%)
224 211 225 230 233 238 232 238
124 129 135 138 154 166 158 169349 340 359 368 386 405 390 408
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Area(‘000 ha)
Farming Planted Area (ha) Sugarcane Planted Area (ha)
Financial Performance – Consolidated Main Figures
4.6%
4.7%(1.6%)
85 70 54 51 96 72 32 25
154 167265 247
238 253
31 41-23 -22 -21 -22 -20 -20 -5 -5
216 216
298 276315 305
58 61
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Adjusted EBITDA(MM USD)
Farming & Land Transformation Sugar, Ethanol & Energy Corporate
316 274 273 323 300 36072 92
379 375 569 576 470 488
82 59
694 649841 899
770 848
154 151
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Net Sales(MM USD)
Farming & Land Transformation Sugar, Ethanol & Energy Total
Farming Production (´000 tons) Sugarcane crushing (MM tons)
(1.5%)
17%
83%
Brazilian Reals US Dollars203
711 678729
743
235
Debt Cash Net debt Net debt 4Q19 Net Debet 1Q19
Financial Performance – Net Debt
1Q20 Debt Term Structure
1Q20 Debt Currency Breakdown1Q20 Net Debt
($ million)
Average life of 6.0 years
22%
78%
Short term Long Term
BRL 5.8%USD 6.1%(1) As of March 31, 2020
Average Interest (1)
392277
188
205
4Q19 1Q20
Liquidity Ratio
Cash and Eq. + Marketable Inventories Short Term Debt
2.0x 1.3x
S&E
Farming
Net debt/EBITDA LTM
2.31x2.22x
2.34x
Charlie Boero Hughes - CFO Email: [email protected]
TEL: +5411 4836 8804
Juan Ignacio Galleano - IRO Email: [email protected] TEL:
+5411 4836 8624