RESULTS
Q3 22'23
February 15th, 2023
Disclaimer
This presentation contains estimates and forward-looking statements regarding our strategy and opportunities for future growth. Such information is mainly based on our current expectations and estimates or projections of future events and trends, which affect or may affect our business and results of operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. Our estimates and forward-looking statements may be influenced by the following factors, among others: (1) general economic, political, demographic and business conditions in Brazil and particularly in the geographic markets we serve; (2) inflation, depreciation and devaluation of the real; (3) competitive developments in the ethanol and sugar industries; (4) our ability to implement our capital expenditure plan, including our ability to arrange financing when required and on reasonable terms; (5) our ability to compete and conduct our businesses in the future; (6) changes in customer demand; (7) changes in our businesses; (8) government interventions resulting in changes in the economy, taxes, rates or regulatory environment; and (9) other factors that may affect our financial condition, liquidity and results of our operations.
The words "believe", "may", "will", "estimate", "continue", "anticipate", "intend", "expect" and similar words are intended to identify estimates and forward-looking statements. Estimates and forward-looking statements speak only as of the date they were made and we undertake no obligation to update or to review any estimate and/or forward-looking statement because of new information, future events or other factors. Estimates and forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Our future results may differ materially from those expressed in these estimates and forward-looking statements. In light of the risks and uncertainties described above the estimates and forward-looking statements discussed in this presentation 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.
Público | 2 |
Q3 22'23 | Main Achievements
RENEWABLES
SUGAR
MARKETING & SERVICES
CORPORATION
Ethanol
Unique Stream
-
Prices evolution supported by
Raízen's Ethanol Stream and cross selling approach - Expanding commercialization/trading volumes
- Record E2G production +8k m³ in
Q3 and +25k m³ on YTD 22'23.
Uninterrupted operation leading to beat plant's capacity of 30k m³
Power
Accelerated Growth
-
Expanding nationwide
+24,000 (+6,000 QoQ) connected consumer units - Access to clients through
Raízen's ecosystem boosting new connections - Delivering solutions from most cost to brand
oriented customers
Leverage on Differentiation
- Reselling/Trading Platform Volume grew by 70% YoY
- Expanding in sugar's global value chain with direct sales to destination reaching almost 100% of the own sugar ( ~80% of the total book)
- Global sugar prices showing resilience
Strengthening Relation with
Resellers
- +8,000 stations operating in Brazil and Latam
- Focus on an increasingly solid relations with Shell resellers reaching the highest level of satisfaction
- Grupo Nós | Accelerated expansion of Oxxo markets and Shell Select stores
- Successful on budget and on schedule refinery maintenance
- Shell Box keeping growth pace
Advancing on Sustainability
Agenda
- Updated public commitments for 2030, linking further Sustainability and Strategy
-
RAIZ4 entered in ISE Index and Teva Women in Leadership
Index
Público | 3 |
Business Performance
Q3 performance impacted by volatile scenario in Marketing & Services and commercialization strategy in Renewables and Sugar. Delivering growth in YTD with focus on execution and disciplined capital management.
Net Revenue
Adjusted EBITDA - Pro forma | (R$ Million)
R$ 60.4 Bn (+9%)
Adj. Net Profit
R$ 256 Mn (-79%)
ROACE
10%
Adj. EBITDA - Recurring
CAPEX
R$ 1.0 Bn (-65%)
Investments
R$ 3.0 Bn (+42%)
-12% | ||||||
3.360 | +446 | -602 | 2.965 | |||
-463 | ||||||
+1.431 | +223 | |||||
+727 | +1.877 | +31% | ||||
+1.343 | +125 | -83% | ||||
+880 | -34% | |||||
-140 | +83 | |||||
Q3 21'22 | Renewables | Sugar | Marketing | Corporation, | Q3 22'23 | |
& Services | Adjustments |
& Eliminations
+5% | ||
8.924 | 9.373 | |
+4.026 | +4.025 | +0% |
+1.791 | +1.917 | +7% |
+3.383 | +3.345 | -1% |
-276 | +87 | |
YTD 21'22 | YTD 22'23 |
Público
Renewables Sugar Marketing & Services Corporation, Adjustments & Eliminations
4
Cash Flow management to navigate the volatile environment, investment cycle and business expansion
Cash Flow Reconciliation |(R$, Million)
+4.381 | -2.878 | |||||||||||||||||||||||||||||||||||
-1.948 | ||||||||||||||||||||||||||||||||||||
3.631 | -325 | |||||||||||||||||||||||||||||||||||
+2.584 | -445 | |||||||||||||||||||||||||||||||||||
-1.320 | ||||||||||||||||||||||||||||||||||||
-1.299 | +1.109 | |||||||||||||||||||||||||||||||||||
EBITDA | Non Cash | Trade | Inventories | Suppliers | Changes in | OCF | ICF | FCF | FCFE | |||||||||||||||||||||||||||
Effects | Account | and | Assets and | |||||||||||||||||||||||||||||||||
Receivables | advances of | Liabilities | ||||||||||||||||||||||||||||||||||
Suppliers | ||||||||||||||||||||||||||||||||||||
Net Debt¹ (R$, Million) / Leverage² | ||||||||||||||||||||||||||||||||||||
2,5x | ||||||||||||||||||||||||||||||||||||
2,3x | ||||||||||||||||||||||||||||||||||||
28.105 | ||||||||||||||||||||||||||||||||||||
26.847 | +1.245 | +81 | ||||||||||||||||||||||||||||||||||
+968 | +554 | |||||||||||||||||||||||||||||||||||
-4.381 | +2.791 | |||||||||||||||||||||||||||||||||||
Q2 22'23 | OCF | CAPEX | Leases¹ | Net Debt | Dividends | Others | Q3 22'23 | |||||||||||||||||||||||||||||
Net Debt | Accrual and | Net Debt | ||||||||||||||||||||||||||||||||||
Cash Exchange | ||||||||||||||||||||||||||||||||||||
Leverage | Variation | |||||||||||||||||||||||||||||||||||
- OCF: operational dynamics of the business and the seasonality of Q3.
Changes in Working Capital:
- Inventories: (i) sugar and ethanol inventories for future sales at better prices; (ii) normalized levels of oil and fuels inventories for Argentina after the
scheduled maintenance stoppage of our Refinery. o Receivables: sugar and ethanol positions sold
directly to destination with improved returns;
- Payables: average payment terms management with suppliers for oil derivatives purchase.
- ICF: investments in Bioenergy Parks to (i) recover agricultural productivity with all time high record planted area; (ii) accelerate investments in E2G and Biogas; (iii) capacity and energy efficiency of our refinery in Argentina and (iv) expansion and maintenance of assets and distribution network of Marketing & Services.
- FCF: debt amortization net of funding, reducing gross debt in QoQ comparison.
Público | Notes: (1) Adjusted Net Debt, excluding: i) PESA, ii) CTN iii) lease liabillities (IFRS16). (2) Calculated as Net Debt (excl. PESA e CTN)/Adjusted LTM EBITDA. | 5 |
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Raizen SA published this content on 16 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2023 16:08:04 UTC.