2q12 results conference call - adecoagro ir...2014/11/03 · 2q12 results conference call 2 2011/12...
TRANSCRIPT
2Q12 Results Conference Call
2
2011/12 Harvest Year Progress
Farming Business
Operational Performance
Farming Production Data
Crop Planted Area Harvested Area % Harvested 2010/2011 2011/2012 Chg % 2010/2011 2011/2012 (1)
Chg %
Soybean 50,726 50,406 99% 2.6 2.5 (2.8%) 147,722 125,140 (15.3%)
Soybean 2nd Crop 42,024 41,201 98% 1.6 1.5 (4.9%) 51,811 62,833 21.3%
Corn (2) 41,466 24,451 59% 5.6 5.1 (10.3%) 159,123 123,925 (22.1%)
Corn 2nd Crop 6,144 1,595 26% 3.0 3.7 22.9% 10,587 5,903 (44.2%)
Wheat (3) 43,235 43,235 100% 3.3 2.6 (20.9%) 92,908 113,341 22.0%
Sunflower 9,596 9,596 100% 2.1 1.9 (7.5%) 20,916 18,667 (10.7%)
Cotton 6,389 3,491 55% 2.7 1.1 (61.0%) 8,746 3,673 (58.0%)
Rice 31,497 31,497 100% 6.2 5.4 (13.0%) 172,034 171,137 (0.5%)
Coffee (perennial) 1,632 1,225 75% 2.0 2.2 10.3% 2,742 2,637 (3.8%)
Total 232,708 206,695 89% - - - % 666,589 627,257 (5.9%)
(1) The production figures in this column only account for the area that was harvested as of June 30, 2012.
(2) Includes Sorghum
(3) Includes Barley
Yields (Tons per hectare)2011/2012 Harvest year Production
35.0
4.3
0.83.6
43.7
23.2
(1.2) (0.5)
5.7
27.3
Crops Rice Dairy Others Farming Consolidated
76.1
34.0
9.06.8
125.8107.7
40.5
9.3
3.5
161.1
Crops Rice Dairy Others Farming Consolidated
3
Sales 6M12 (US$ Millions)
Adjusted EBITDA 6M12 (US$ Millions)
+41%
+19%
+4% -48%
+30%
-34%
-128%
-158% +60%
-38%
6M11 6M12
Farming Business
Financial Performance
79
110 107
119 123
134
25 29 29 36
48
34
14 14
48 38
61 54
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013
2012/2013 Preliminary Planting Plan (thousand hectares)
Own area Second crop area Leased area
4
2012/13 Crop Year Outlook
Farming Business
Operational Performance
Owned planted area is expected to grow by 11K hectares, driven by land transformation and farm acquisitions in 2011.
Second crop area is expected to decrease since both soybean and corn first crop margins are expected to be higher than wheat + soybean second crop margin.
43.2
29.1
2011/2012 2012/2013
Wheat Planting is Complete
5
Farming Business
Market Outlook
Corn
Soybean
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1/2/2004 1/2/2006 1/2/2008 1/2/2010 1/2/2012
Sto
ck-t
o-u
se r
ati
o
Pri
ce (c
ents
/ b
ush
el)
Nearby Futures Contract Stock-to-use ratio US stock-to-use
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
-
100
200
300
400
500
600
700
800
900
1/2/2004 1/2/2006 1/2/2008 1/2/2010 1/2/2012
Sto
ck-t
o-u
se r
atio
Pri
ce (c
en
ts /
bu
she
l)
Nearby Futures Contract Stock-to-use ratio US Stock-to-use ratio
6
San Jose Farm Sale
7.6
33.1
15.2
18.8 20.0
8.8 8.0
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012
Sold ha 3,507 8.714 4,857 5,005 5,086 2,438 7,630
Sold Farms 1 2 3 1 1 1 1
San Jose is a 7,630 hectare farm located in the province of Santa Fe, Argentina, acquired by Adecoagro in 2002
The farm was sold in June 2012 at a 31.4% premium over Cushman & Wakefield’s latest appraisal (Sept 2011)
The transaction generated an Adjusted EBITDA of $8.0 million and an internal rate of return (IRR) of 31.8%
Adecoagro continues monetizing the value creation from its land transformation activities
Land Transformation
Farm Sale
Consistent Track Record of Generating Strong Capital Gains
10 farms sold (37K hectares)
Realized Capital gains for over
$111.5 million
7
Rainfall at the Angelica Mill (mm)
-
50
100
150
200
250
300
April May June July
15 year average 2012
Sugar, Ethanol & Energy
Operational Performance
0.35 0.23
1.32
0.76
2Q11 2Q12
Angelica UMA
1.7
1.0
Sugarcane crushed (million tons)
-40.4%
2Q12 3Q12
8
Gross Sales
12.96.4
49.5
49.5
37.7
24.7
2Q11 2Q12
Sugar
Ethanol
Energy
49.4
13.5
2Q11 2Q12
Adjusted EBITDA &
EBITDA Margin
53.0%
25%
100.1
58.8
Adjusted EBITDA
Margin
Sugar, Ethanol & Energy
Operational Performance
9
6,001
11,705
6M11 6M12
65,308
76,517
12/31/2011 06/30/2012
Sugarcane hectares planted Sugarcane plantation area
+95% +17%
Sugar, Ethanol & Energy
Operational Performance
10
High Pressure Boiler
Ivinhema Construction Update
Bagasse Conveyor
Distillery
Powerhouse
Sugar, Ethanol & Energy
Ivinhema Construction
11
Area & Production 2007 2008 2009 2010 2011 6M11 6M12
Farming Planted Area (hect.) 80,189 139,920 153,026 183,454 192,207 192,207 232,708
Sugarcane Planted Area (hect.) 22,378 32,616 49,470 53,799 65,308 56,654 71,005
Farming Production (tons) 330,253 453,392 414,962 618,834 666,327 - -
Sugarcane Crushing (tons) 889,355 1,376,763 2,215,029 4,066,115 4,168,082 1,673,855 997,036
Sales 2007 2008 2009 2010 2011 6M11 6M12
Farming & Land Transformation 118,081 193,038 216,016 197,741 270,766 125,811 161,063
Sugar, Ethanol & Energy 24,422 51,171 97,587 204,256 258,939 100,956 94,824
Total 142,503 244,209 313,603 401,997 529,705 226,767 255,887
Adjusted EBITDA 2007 2008 2009 2010 2011 6M11 6M12
Farming & Land Transformation 58,767 58,594 51,662 65,735 67,444 43,709 35,221
Sugar, Ethanol & Energy (10,146) (6,979) (26,903) 51,735 109,507 44,001 8,778
Corporate (11,435) (23,077) (22,262) (22,353) (26,885) (11,846) (12,433)
Total 37,186 28,538 2,497 95,117 150,066 75,864 31,566
Adjusted EBITDA Margin
Farming & Land Transformation 44.9% 24.4% 18.8% 27.6% 19.9% 30.0% 18.0%
Sugar, Ethanol & Energy -65.0% -36.2% -39.0% 19.9% 37.1% 37.7% 2.7%
Total 26.1% 11.7% 0.8% 23.7% 28.3% 33.5% 12.3%
Adecoagro Consolidated
Financial and operational overview
165.7 202.5
270.6
233.7
Debt Cash Net debt
S&E
Farming
12
Net Debt
2Q12 Debt Currency Structure
2Q12 Net debt ($ Millions) 2Q12 Debt Term Structure
Total debt as of June 30, 2012,
stands at $436.2 million
Net debt remains at $202.5 million
53%
47%
Short term
Long Term
39%
60%
1%
Brazilian Reais
US Dollars
Argentine Pesos
13
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
14
Investor Relations
Charlie Boero Hughes
CFO
Hernan Walker
IR Manager
E-mail [email protected]
Website www.adecoagro.com