Fourth Quarter and Fiscal Year 2020
Earnings Call Presentation
September 10, 2020
Disclaimer And Forward-Looking Statement
This Presentation is for informational purposes only and does not constitute an offer or invitation to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, assets, business, debt or other financial instruments of the Company or any of its affiliates, and shall not form the basis of any contract, nor shall it be construed in any manner as a commitment on the part of any person to proceed with any transaction. Any reproduction of this Presentation, in whole or in part, or the disclosure of its contents, without the prior consent of the Company is prohibited. By accepting this Presentation, each recipient agrees to use this Presentation for the sole purpose of evaluating.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements
include estimated financial information and , among others, statements related to the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, clients and the Company, on our business, financial condition, liquidity position and results of operations, and any such forward-looking statements, whether concerning the COVID-19 pandemic or otherwise, involve risks, assumptions and uncertainties. Such forward-looking statements are based on management's reasonable current assumptions, expectations, plans and forecasts regarding the Company's current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations or could affect the Company's ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the Company's business, operations and financial results and the other factors that are described in the sections entitled "Risk Factors" in the Company's Securities and Exchange Commission filings updated from time to time. Therefore, you should not rely on any of these forward-looking statements. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Industry and Market Data
Unless otherwise noted, the forecasted industry and market data contained in the assumptions for the projections are based upon the Company's management estimates and industry and market publications and surveys. The information from industry and market publications has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of the included information. The Company has not independently verified any of the data from third-party sources, nor has the Company ascertained the underlying economic assumptions relied upon therein. While such information is believed to be reliable for the purposes used herein, none of the Company, its affiliates, their respective directors, officers, employees, members, partners, shareholders or agents makes any representation or warranty with respect to the accuracy of such information. These materials are highly sensitive and confidential and being supplied to you solely for your information and for use in this Presentation.
Financial Information Presentation
Historical financial information of Bioceres has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). Investors should note that IFRS differs from generally accepted accounting principles in the United States ("US GAAP"), and investors should consult their own professional advisors for an understanding of the difference between IFRS and US GAAP and how those differences might affect such financial statements.
Use of Non-IFRS Financial Measures
This Presentation includes certain non-IFRS financial measures. These non-IFRS measures are an addition, and not a substitute for or superior to measures of financial performance prepared in accordance with IFRS and neither should be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS or as an alternative to cash flows from operating activities as a measure of our liquidity.
The Company believes that these non-IFRS measures of financial results provide useful supplemental information to investors about the Company and its results. The Company's management uses these non-IFRS measures to evaluate the Company's financial and operating performance and make day-to-day financial and operating decisions. The Company also believes that these non-IFRS measures are helpful to investors because they provide additional information about trends in the Company's core operating performance prior to considering the impact of capital structure, depreciation, amortization and taxation on its results. However, there are a number of limitations related to the use of these non-IFRS measures and their nearest IFRS equivalents. For example, other companies may calculate non-IFRS measures differently, or may use other measures to calculate their financial performance, and therefore the Company's non-IFRS measures may not be directly comparable to similarly titled measures of other companies.
In this presentation, we discuss non-IFRS measures as forward-lookingnon-IFRS measures.
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2
Executing on Growth Strategy while Substantially Strengthening Balance Sheet
- Continued international expansion supported by leading position in Argentina, plus a more profitable mix
- 4Q20 Comparable revenues +46% YoY and +17% to $ 174M in FY20
- 4Q20 Adjusted EBITDA +67% and +13% to $ 46M in FY20
- Raised $ 65M in FY20 in preparation for commercial launch of HB4® technology, while lowering financing costs and improving debt profile
- Net Debt-to-LTM EBITDA improved to 1.98x from 2.24x
- Advancing HB4 program
- In a position to move from thousands of hectares to hundreds of thousands
- Subsequent to the quarter's end
- Raised $ 17M through public bond issuance at zero nominal interest rate, with bullet at 36 months
- Successfully completed warrant removal, minimizing dilution and related cash utilization, as well as helping enhance stock liquidity
3
Update on EcoSoy®
Key Highlights
Geographical Distribution for FY21
- FY20 hectares fully harvested
- >50% of materials met seed quality and performance metrics
- >20,000 hectares reserved for upcoming FY21 plantings
- New materials to be incorporated in FY21 ramp-up, covering MGs III-V
HB4 4519 RG
Repositioned varieties to HB4 hot zones
HB4 4619 RG STS
New variety HB4 4220 RG
HB4 5519
Varieties that met expectations and are continued at full scale
HB4 3919 RG STS
Yield
1500 2500 4000
Kg/ha
2000 3000
4
Update on EcoWheat®
Key Highlights
- ~7,000 hectares planted out of the 12,000 reserved
- Severe drought conditions prevented some of our grower-partners from initiating multiplications in their respective locations
- However, the drought conditions highlight benefit of HB4 wheat
CONTROL
EcoWheat in the Media
10 notes that include testimonies of producers, opinion of academics, politicians and decision- makers
Reach greater
than 19M users
Almost 30k visualizations
and international
repercusion of EcoWheat
5
Succesful Completion of Warrant Tender Offer
- Company removed all its 24.2M outstanding Warrants for either 0.12 ordinary shares or $0.45 in cash per warrant
- Transaction executed in 29 days (from announcement to redemption of non-tendered warrants)
- Removed overhang of Bioceres' outstanding warrants in a cost-effective way
- Following the transaction, total shares outstanding are 38.7M, up 7%. Company's public float increased by 1.7M shares
6
BIOX Warrant Tender Offer Results
24.2M | ||||||||
Warrants removed | ||||||||
90% | 10% | |||||||
21.9M | 2.3M | |||||||
Warrants validily tendered | Warrants redeemed for | |||||||
$0.405 in cash | ||||||||
21.7M | 0.2M | |||||||
2.6M1 | $ 0.1M | |||||||
Exchange Shares in | Cash in | |||||||
exchange for | exchange for | |||||||
Warrants tendered | Warrants | |||||||
(.12) | tendered ($.45) | |||||||
11.7M shares incorporated into to the Company's float 10.9M shares locked-up for a twelve-month period
$ 1.0M
In cash proceeds
7
Robust Top Line Growth Driven by Solid Performance Across All Segments
Comparable Segment Revenues ($ in millions) YoY
- Revenues largely linked to US dollar, except in Brazil
- 4Q20 +46%, driven by strong sales of adjuvants, as well as bio-fungicides, inoculants and seed treatment packs across regions, in addition to strong micro-beaded fertilizer sales in Argentina
- FY20 +17%, on continued growth across three business segments: i) adjuvant expansion in Brazil and Paraguay ii) higher seed treatment packs sales, mainly in South Africa and France; and iii) growing acceptance of micro-beaded fertilizers in the Southern Cone
+17% Comparable
+8% As Reported
174.2173.1
+46% | Comparable | 160.6 | ||||
-3% As Reported | ||||||
148.7 | ||||||
49.9 | 51.9 | |||||
48.2 | ||||||
35.5
Comparable Reported | Comparable | Reported | Comparable Reported | Comparable Reported | |
4Q19 | 4Q20 | FY19 | FY20 |
8
Crop Protection Highlights
Comparable Segment Revenues ($ in millions) YoY
- 4Q20 +29%, led by sustained expansion in Brazil's adjuvant market, supported by normalized demand in Argentina. Continued growth in environmentally friendly bio-fungicides
- FY20 +13%, on consistent execution of adjuvant growth plan in Brazil and Paraguay, supported by sales of adjuvants and other crop protection products in Argentina; reinforced by above-average growth in bio-fungicides
+13% Comparable | |||||||||||||||
+4% As Reported | |||||||||||||||
+29% Comparable | |||||||||||||||
-13% As Reported | 94.1 | 94.2 | |||||||||||||
90.2 | |||||||||||||||
30.6 | 28.1 | ||||||||||||||
83.5 | |||||||||||||||
26.5 | |||||||||||||||
21.8 | |||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | ||||||||
4Q19 | 4Q20 | FY19 | FY20 |
9
Seed & Integrated Products Highlights
Comparable Segment Revenues ($ in millions) YoY
- 4Q20 +175%, driven by seed treatment pack sales1 at South African subsidiary and sustained recovery of packs in Argentina, following highly successful pre-season summer crop sales campaign there
- FY20 +32%, higher seed treatment pack sales1 in Paraguay, Uruguay, Europe and South Africa; sustained recovery in Argentina partially offset weaker performance in fiscal 1Q20 when weather and macro uncertainty delayed planting decisions
+32% Comparable | |||||||||||||||
+175% Comparable | +16% As Reported | ||||||||||||||
+32% As Reported | |||||||||||||||
30.8 | 29.5 | ||||||||||||||
25.3 | |||||||||||||||
23.4 | |||||||||||||||
8.2 | |||||||||||||||
6.0 | |||||||||||||||
4.5 | |||||||||||||||
3.0 | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||||
Comparable | Reported | ||||||||||||||
4Q19 | 4Q20 | FY19 | FY20 |
Note:
1. Sales in this segment benefited from the partial reclassification of inoculants, which had been stand-alone products and previously reported under crop nutrition segment
10
Crop Nutrition Highlights
Comparable Segment Revenues ($ in millions) YoY
- 4Q20 +46%, strong demand for micro-beaded fertilizer ahead of a winter crops planting season in Argentina, supported by continued penetration of Brazil's inoculants B2B market
- FY20 +18%, on greater demand for micro-beaded fertilizers in Argentina, Paraguay, Uruguay and Bolivia, driving utilization to over 30%
+18% Comparable | ||||||||||||||
+10% As Reported | ||||||||||||||
+46% Comparable | 49.3 | 49.4 | ||||||||||||
+7% As Reported | 45.1 | |||||||||||||
41.8 | ||||||||||||||
15.6 | 15.7 | |||||||||||||
14.7 | ||||||||||||||
10.7 | ||||||||||||||
Comparable | Reported | Comparable | Reported | Comparable | Reported | Comparable | Reported | |||||||
e | 4Q20 | FY19 | FY20 | |||||||||||
4Q19 | ||||||||||||||
Note:
1. Sales in this segment were negatively impacted by the partial reclassification of inoculants, which had been stand-alone products and are now sold as packs and thus reported in the
Seed & Integrated Products segment | 11 |
Comparable Consolidated Gross Profit and Margin
Gross Profit ($ in millions) & Margin YoY
- 4Q20 Gross Profit +51%, with margin expanding 138 bps to 48.7%, mainly driven by greater proportion of higher margin S&IP sales within the revenue mix, enhanced by favorable FX and inflation dynamics
- FY20 Gross Profit +13%, with margin of 48.7% vs. 50.5%, mainly due a shift in the product mix and distribution channels
Gross | ||||
Profit | 47.3% | 43.2% | 48.7% | 47.4% |
Margin
50.5% 45.9% 48.7% 45.9%
+13% Comparable | +8% As Reported |
Comparable Gross Profit & Margin by Segment ($ M):
Segment | 4Q19 | 4Q20 | % Chg. |
Crop Protection | 8.8 | 11.5 | 31% |
Gross Margin | 40% | 41% | +66 bps |
+51% Comparable | |
+6% As Reported | |
25.3 | |
21.5 | 22.8 |
16.8 |
75.1
84.9
79.5
73.6
Seed & Integrated | 1.7 | 5.0 | 191% |
Products | 57% | 61% | +337 bps |
Gross Margin | |||
Crop Nutrition | 6.2 | 8.7 | 40% |
Reported | Reported | |||
Comparable | Comparable | |||
4Q19 | 4Q20 |
ReportedReported
ComparableComparable
FY19FY20
Gross Margin | 58% 56% -245Bps |
12
Adjusted EBITDA Driven by Top Line Performance and Operating Leverage
4Q20 EBITDA Bridge ($ in millions)
Adj. | |||||||||||||||||||||||||||||||||
EBITDA | 17.6% | 30.5% | |||||||||||||||||||||||||||||||
Margin | 14.7 | ||||||||||||||||||||||||||||||||
16 | 4.5 | 0.6 | |||||||||||||||||||||||||||||||
14 | |||||||||||||||||||||||||||||||||
2.0 | 0.5 | ||||||||||||||||||||||||||||||||
12 | |||||||||||||||||||||||||||||||||
8.8 | 0.6 | ||||||||||||||||||||||||||||||||
10 | |||||||||||||||||||||||||||||||||
1.3 | |||||||||||||||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||||
6 | |||||||||||||||||||||||||||||||||
4 | |||||||||||||||||||||||||||||||||
2 | |||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | Gross profit Crop Gross profit Seed Gross profit Crop | Operating | JV's | Other income or | Adjusted EBITDA | ||||||||||||||||||||||||||||
4Q 19 | protection | and integrated | nutrition | expenses | expenses, net | 4Q 20 | |||||||||||||||||||||||||||
products |
FY20 EBITDA Bridge ($ in millions)
Adj.
EBITDA
Margin
60
50
40
30
20
10
0
25.7% | 26.9% | ||
41.3 | 4.4 | 46.5 | |
2.4 | 1.5 | ||
0.9 | 1.5 | 0.7 |
Adjusted EBITDA FY Gross profit Crop Gross profit Seed Gross profit Crop | Operating | JV's | Other income or | Adjusted EBITDA FY | |||
19 | protection | and integrated | nutrition | expenses | expenses, net | 20 | |
products |
13
Strong Balance Sheet: Increased Liquidity and Improved Debt Profile
- Raised a total of $65 M in FY20 including $15 M in public corporate bonds in 4Q20 due Dec'21
- Improved debt maturity profile: long-termdebt at 57% of total debt, up from 37% in 4Q19
- Enhanced financial liquidity: cash & equivalents represent ~90% of current debt
- Net Debt-to-LTM Adjusted EBITDA declined to 1.98x in 4Q20 from 2.24x as of 4Q19
- Subsequent to 4Q20, raised $17 M in public corporate bonds due August 2023 at 0.0% nominal rate
Net | |||||
Debt | 2.24x | 2.14x | 2.23x | 2..30x | 1.98x |
LTM EBITDA
$ million
79.684.3
91.9 | ||||||||||||||
93.5 | ||||||||||||||
92.1 | ||||||||||||||
92.8 | 40.1 | |||||||||||||
37.1 | 32.5 | 86.8 | 52.6 | 56.0 | ||||||||||
63.5 | 7.8 | 64.1 | 9.8 | 66.9 | 14.9 | 66.4 | 63.6 | |||||||
4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | |||||
Current debt | Non-current debt | Cash & Equivalents | Net Debt | ||||||
Notes: | |||||||||
1) | Total financial debt includes short-term debt and long-term debt and excludes discounted checks. | ||||||||
2) | Net Debt = Total financial debt less cash and cash equivalents. | ||||||||
3) | Cash & Cash Equivalents include $ 4.4M in restricted short-term deposit and $ 16.6M in other cash management short-term investments. | 14 | |||||||
Higher Cash Generation via Lower Financing Costs
- Lowered total net interest expenses and financial commissions by 56% in 4Q20, by reducing average cost of debt and replacing inefficient external working capital sources, resulting in 25% drop in FY20
- Strong asset base remains in place to support near and long-term growth objectives with minimal capital expenditures
- Capital expenditure requirements financed with cash generated by the business
- Capex of $ 0.3M in 4Q20, $1.6 M in FY20 versus $ 2.0M in FY19
Total Net Interest Expenses and Financial Commissions ($ in millions)
-25%
23.2 | |
-56% | 17.3 |
6.9
3.1
4Q19 | 4Q20 | FY19 | FY20 |
Note:
1) Net Interest expenses include interests from financial debt obligations, other financial results and gains/losses from translation effects on Argentine Peso denominated loans held by Rizobacter Argentina
as part of the Company´s financial hedging strategy. Net interest expenses and financial commissions represent the main financial metrics that management uses to assess Bioceres´ cost of financing.
15
Looking ahead
Accelerating HB4® Program
- Continue consolidating our HB4 soybean breeding program with our existing licensees and other breeding partners, to expand on Bioceres' genetics offering
- Accelerate international HB4 deployment plans, particularly in the United States and Brazil
Strong focus on international expansion
- Advancing expansion in Brazil and Paraguay's adjuvant markets
- Expect to further penetrate Europe and South Africa with integrated seed treatment products
Well-developed asset base underpins organic growth
- Continue to expand production of micro-beaded fertilizers
Stronger, more efficient and dynamic balance sheet
- Continue improving our capital efficiency, as means to drive shareholder value
16
EXHIBITS
September 10, 2020
Unaudited Consolidated Statement of Comprehensive Income
Figures in $ millions
Three-month period ended | Three-month period ended | ||
06/30/2020 | 06/30/2019 | ||
Total revenue | 48.2 | 49.9 | |
Cost of sales | (25.3) | (28.3) | |
Gross profit | 22.8 | 21.5 | |
% Gross profit | 47% | 43% |
Fiscal year ended | Fiscal year ended |
06/30/2020 | 06/30/2019 |
173.1 | 160.6 |
(93.6) | (87.0) |
79.5 | 73.6 |
46% | 46% |
Operating expenses
Share of profit (loss) of JV
Other income or expenses, net
Operating profit
Finance result
Profit / (loss) before income tax
Income tax
Profit / (loss) for the year
Other comprehensive Profit / (loss)
Total comprehensive Profit / (loss)
Profit / (loss) for the period attributable to:
Equity holders of the parent
Non-controlling interests
Total comprehensive income / (loss) attributable to:
Equity holders of the parent
Non-controlling interests
(11.3) | (15.3) | |
1.3 | 0.7 | |
(0.1) | 0.4 | |
12.8 | 7.3 | |
(8.2) | (5.0) | |
4.5 | 2.3 | |
(1.6) | (3.5) | |
2.9 | (1.2) | |
(1.2) | 9.5 | |
1.7 | 8.2 | |
2.0 | (1.1) | |
0.9 | (0.1) | |
2.9 | (1.2) | |
0.9 | 7.1 | |
0.8 | 1.2 | |
1.7 | 8.2 |
(42.5) | (42.9) |
2.5 | 1.0 |
(0.3) | 0.4 |
39.1 | 32.1 |
(32.7) | (41.5) |
6.4 | (9.4) |
(2.4) | (7.0) |
4.0 | (16.4) |
(8.8) | 3.9 |
(4.8) | (12.5) |
3.2 | (18.4) |
0.8 | 2.0 |
4.0 | (16.4) |
(4.7) | (14.3) |
(0.1) | 1.9 |
(4.8) | (12.5) |
18
Unaudited Consolidated Statement of Financial Position
Figures in $ millions
ASSETS
CURRENT ASSETS
Cash and cash equivalents Other financial assets Trade receivables Other receivables
Income and minimum presumed income taxes recoverable
Inventories Biological assets
Total current assets
NON-CURRENT ASSETS
Other financial assets Other receivables
Income and minimum presumed income taxes recoverable
Deferred tax assets
Investments in joint ventures and associates Property, plant and equipment Intangible assets
Goodwill Right-of-use leased asset
Total non-current assets
Total assets
06/30/2020 06/30/2019
34.93.5
21.04.7
73.559.2
4.72.0
0.11.3
29.827.3
0.50.3
164.698.2
0.3 | 0.4 |
1.7 | 1.6 |
0.00.0
2.73.7
24.725.3
42.443.8
35.339.6
25.529.8
1.1 | 0.0 |
133.7 | 144.3 |
298.3 | 242.5 |
LIABILITIES | 06/30/2020 | 06/30/2019 | |||
CURRENT LIABILITIES | |||||
Trade and other payables | 57.3 | 40.6 | |||
Borrowings | 63.6 | 66.5 | |||
Employee benefits and social security | 4.5 | 5.4 | |||
Deferred revenue and advances from customers | 2.9 | 1.1 | |||
Income and minimum presumed income taxes payable | 1.6 | 0.1 | |||
Government grants | 0.0 | 0.0 | |||
Financed payment - Acquisition of business | 0.0 | 2.8 | |||
Lease liability | 0.6 | 0.0 | |||
Total current liabilities | 130.5 | 116.5 | |||
NON-CURRENT LIABILITIES | |||||
Trade and other payables | 0.5 | 0.5 | |||
Borrowings | 41.2 | 37.1 | |||
Employee benefits and social security | 0.5 | 0.0 | |||
Government grants | 0.0 | 0.0 | |||
Investments in joint ventures and associates | 1.5 | 2.0 | |||
Deferred tax liabilities | 17.1 | 21.1 | |||
Provisions | 0.4 | 0.4 | |||
Financed payment - Acquisition of business | 0.0 | 0.0 | |||
Warrants | 1.7 | 2.9 | |||
Convertible notes | 43.0 | 0.0 | |||
Lease liability | 0.4 | 0.0 | |||
Total non-current liabilities | 106.4 | 63.9 | |||
Total liabilities | 236.9 | 180.4 | |||
EQUITY | |||||
Equity attributable to owners of the parent | 46.7 | 47.3 | |||
Non-controlling interests | 14.7 | 14.8 | |||
Total equity | 61.4 | 62.1 |
Total equity and liabilities | 298.3 | 242.5 |
19
Contact Us
Investor Relations Investorrelations@biocerescrops.com
-
0341 4861100
Investors.biocerescrops.com
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Bioceres Crop Solutions Corp. published this content on 10 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 September 2020 10:19:08 UTC