Presentation APIMEC 2009

Presentation
APIMEC 2009
São Paulo – September 10th, 2009
1
Disclaimer
Forward Looking Statements
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.
2
Agenda
1. Introduction to Management
2. Enhanced Business Model
3. COSAN – Results 1Q'10
3
Introduction to Management
Marcelo Martins - CFO and Investors Relations Officer
Luiz Felipe Jansen – Investor Relations Manager
4
Agenda
1. Introduction to Management
2. Enhanced Business Model
3. COSAN – Results 1Q'10
5
Cosan Group
A History of Growth and Innovation
Crushing
Capacity
(MM Tons)
2009
• Greenfield Projects
• Cogeneration
70,0
2007
2005
• IPO ($400MM)
60,0
• CZZ $1.2Bn NYSE IPO
60.0
• 10Y Bonds ($400MM)
• IFC loan
• Alliance with Kuok
Group
2008
• Vertical
integration
2006
50,0
• Perpetual
Bonds ($450MM)
45.0
• Ibovespa index
2004
2000
40,0
2002
• Cosan S.A. officially
established
• Da Barra
acquisition
• Alliance with Tereos
and Sucden
30,0
Inaugural Bonds
($200MM)
38.8
40.0
40.0
2006
2007
31.5
30.3
1997-1999
20,0
• Partnership
with Tate &
Lyle
1936
• Santos port
concession
Foundation of
Costa Pinto
10,0
19.1
15.6
9.5
7.5
4.0
0,0
1936
1986
1988
2000
2001
2002
2004
2005
2008
2009E
2012E
6
Strong Growth Potential
Scale, Know-how and Efficiency
The Brazilian sugar and ethanol market is very fragmented. COSAN is the largest player and is
responsible for only 9.3% of the market, 3x larger than the 2nd place
Brazilian Market Share
Consolidation in Related sectors in Brazil
Market Share of Top 5 Companies (1)
Sugarcane crushed in 2008/2009
Oil 100.0%
Beer 97.0%
9.3%
Soybean 95.0%
Santelisa Vale 3.1%
Louis Dreyfus 2.4%
Guarani 2.4%
Steel(2) 93.0%
Orange Juice(2) 91.5%
Moema 2.2%
Cement 80.0%
Usaçúcar 2.2%
Dairy 77.4%
Alto Alegre 2.2%
Pulp 72.6%
Carlos Lyra 2.1%
Others 69.7%
São Martinho 2.1%
Tércio Wanderley 1.8%
Paper 48.7%
Ethanol & Sugar 18.7%
0%
Source: Datagro, COSAN
20%
40%
60%
80%
100%
Note:
(1) Beer. steel data as of 2005; orange juice as of 2004; cement. dairy. pulp and.
paper as of 2003; soybean as of 2000
(2) Percentage based on the four top players in the sector
7
Division in Production Clusters
Creation of another cluster with incorporation of NA
Jat
Fernandópolis
2.8 Mtc
2 Barra, DC, Dia
Orlândia
4 Bonf, Tam, Serra
5 Junqueira
Dest
Ben
Mund
Catanduva
Univ
Araçatuba
Ribeirão Preto
8.2 Mtc
Jaboticabal
Bonf
Dracena
6.6 Mtc
3 Ipaussu
Franca
Barretos
S. J. do
Rio Preto
Gal. Salgado
55 Km
Andradina
Lins
Tupã
11.0 Mtc
49 Km
Marília
Pres.
Prudente
Baurú
Diam
8 Goiás
DC
9 Nova America
Limeira
Jaú
Mogi Mirim
Barra
CoPi
AssisMar
USH
Piracicaba
UBR
Ourinhos
7 Gasa
Serra
Par
Tar
6 Univ, Dest, Mund, Ben
S. J. da
Boa Vista
Tam
Araraquara
Botucatu
Raf
IASF
Ipau
23 Km
Pres.
Venceslau
1 IASF, Raf, UBR, USH, Copi
Junq
Votuporanga
2.8 Mtc
Gasa
MS
Clusters
Par
Jales
Greenfield
in MS
Mont
Bragança
Paulista
Guaratinguetá
Campinas
Pindamonhangaba
10.7 Mtc
Avaré
Itapetininga
11.6
Mtc
Mogi das
Cruzes
Sorocaba
São Paulo
Itapeva
Registro
Notes: *Tar: Tarumã; Mar: Maracaí; Par: Parálcool
Santos
Ilha de São
Sebastião (Ilha
Bela)
Changing Business Model
Initiatives to add stable cash flow stream
Cosan Açúcar e
Álcool
Cosan
Bioenergia
Cosan
Combustíveis e
Lubrificantes
Radar
Rumo
Logística
9
Innovation to Face a Changing Environment
Selective Actions shall Imply in a Broader Business Model
COMMERCIALIZATION
(Retail – da BARRA sugar)
SUGAR & ETHANOL
PRODUCTION
Cosan S.A.
Plantation
Crushing
Production
1. POWER
CO-GENERATION
(Ongoing Project)
2. SUGAR LOGISTICS
(Rumo)
3. ETHANOL PIPELINE
(Uniduto)
4. FUEL DISTRIBUTION
(Esso)
10
Cogeneration of Energy
Projects Already Operating or Under Construction
Caarapó
Jataí
Paraúna
Costa Pinto
Bonfim
Univalem
Local da
indú
indústria
a
aún
Paraú
Aprox. 3 km
Barra
Diamante
Ponte de Pedra
MT
Estrada de acesso a
Paraú
Paraúna
DF
GO
Gasa
Serra
MG
MS
ES
Rafard
Tarumã
SP
Ipaussu
Source: Cosan
Serra
Costa Pinto
Rafard
Gasa
Tarumã
Maracaí
Bonfim
Barra
Jataí
Caarapó
Ipaussu
Diamante
Univalem
Paraúna
TOTAL
Crushing Capacity
(MM tons)
1.8
4.0
2.2
3.8
4.5
3.8
5.0
7.8
4.0
2.3
2.5
2.0
3.0
4.0
50.7
Installed Capacity
(MW)
15.0
75.0
50.0
82.0
22.5
46.7
111.0
136.0
105.0
76.0
62.0
32.0
42.0
123.0
978.2
Saleable Energy
(MWh)
35.0
193.4
124.2
256.4
25.0
130.0
314.9
453.6
341.1
205.9
188.0
99.3
122.4
206.9
2,696.1
RJ
EBITDA 2010E
(R$MM)
4.3
29.5
18.7
39.4
3.3
14.3
40.9
18.2
14.5
19.0
202.0
EBITDA (Steady
State) (R$MM)
4.3
29.5
18.7
39.4
3.3
14.3
43.2
61.1
46.6
28.6
25.4
13.9
17.2
48.9
394.2
Maracaí
11
Cogeneration of Energy
Environmental Licenses Status
Preliminary
License
Installation
License
Operating
License
2008
2009
2010
2011
2012
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Operational
Serra – Fase 1
Costa Pinto
Rafard
Gasa – Fase 1
Tarumã
Maracaí
Under Constructing
Gasa – Fase 2
Jataí
Barra – Fase 1
Bonfim
Caarapó
Initial Developments
Barra – Fase 2
Univalem
Diamante
Ipaussu
Paraúna
Under Constructing
Source: Cosan
Commissioning
Operational
12
Cogeneration of Energy
Adding a Stable Cash Flow Stream of R$500MM/year to Cosan
Cosan: Energy Potential Through Cogeneration
Potential Projects
Actual Projects
62,4 MM
tons
R$3,9bi
1,285 MW
3,628 GWh
R$605 MM
50,7 MM
tons
R$515 MM
978 MW
R$2,4bi
2,696 GWh
R$464 MM
R$394 MM
Crushing Capacity
CAPEX
Installed Power
Capacity
Salable Energy
Revenue
EBITDA
Notes:
-Estimates subject to changes
-Average days of 189 days per crop, with 83% of crushing capacity
-Non-contracted Energy Price: R$150.00
-EBITDA Margin of 85%
Source: Cosan
13
Sugar Logistics – Rumo Logística
The Largest Sugar Port in the World is born … and will grow further
Cosan Portuária
Teaçú Port Terminal (Nova América)
Loading Capacity of 40,000
metric ton per day
Largest sugar throughput
port terminal in Brazil: 3.5M
ton (23% of Brazilian
exports) in 06/07
Static capacity 210K ton
Static capacity of 225K tons
• Annual shipment capacity of 4
million tons of grains
+
• Highly automated operating
processes (from the moment
the truck leaves the mill until
it reaches the port)
- Current loading capacity of 10.0M tons, and static capacity of 435K tons
FURTHER GROWTH
With a R$30MM
investment postintegration, the port
terminal will have 3
wharves and 5 ship loaders
being the largest bulk
terminal for agricultural
products in the world, with
total annual loading
capacity of 18M tons
14
Rumo
The best alternative for sugar producers located in the SP state…
Rumo’s one-stop-shop proposition for sugar producers in the SP region
Sugar Mills
Center South –
largest sugar
exporter in the world
Hubs
Located on rail
network close to
main roads
Railroad
Long-term contract
with ALL at highly
competitive costs
Port
Largest bulk sugar
port terminal in the
world since 1997
Rumo’s Investments
Wagons
Locomotives
Acquisition of up to 79
locomotives
45min to unload
Railroad
< 1min to unload
Wagons designed to increase productivity
Duplication, expansion
and improvements of the
existing railway lines
15
Rumo and ALL agreement will dramatically transform the sugar export
industry in Brazil…
Railway Belt: ALL Agreement
Fernandópolis
São José do
Rio Preto
Santa Adélia
Araçatuba
Pitangueiras
Pradópolis
Araraquara
Jaú
Tupã
Itirapina
Sumaré
Investments of R$1.2 bln
and volumes of 9 MM
tons of sugar / year
São Paulo
Santos
Rumo loading stations
Guaranteed competitive
Tariffs Rental fees in
proportion with volumes
transported
Rail corridor to be duplicated
Rail corridor to be improved
Comparison of major bulk sugar terminals in Santos
In M tons of annual loading capacity
18.0
Capacity after
expansion
Operating at full capacity
Operating at almost full
capacity
Has already transferred some volume to
Rumo’s terminal in 2009/2010
10.0
Source: Williams Agência Marítima and Cosan.
3.3
3.0
16
Ethanol Pipeline – Uniduto
CCC Consortium assures ethanol volume to the pipeline
Ribeirão Preto (road-rail)
155.000 m 3
155,000
Storage Base ( location, type & capacity)
Distribution base
Pipes (length & diameter )
235 km
Ø = 20”
Monobóia (exports “off-shore”)
Output:11 bi liters
114 km
Ø = 24”
Paulínia (road-rail)
100,000 m 3
127 km
Ø = 30”
Output:16 bi liters
Conchas (river -rail)
155.000 m 3
155,000
36 km Ø = 16”
Juquiratiba (rail)
20.000 m 3
20,000
Output:24.7 bi liters
Campinas
São Paulo
106 km
Ø = 24”
Output:14.2 bi liters
Santos -CING (road)
220.000 m 3
220,000
Taboão da Serra (road)
170.000 m 3
170,000
Serra
do Mar
- Creation of of Uniduto Logística S.A., a JV among Cosan, Copersucar and Crystalsev
- Uniduto to develop, construct and operate an ethanol pipeline network linking the port terminal on the
coast of Santos, SP, and the city of Paulínia, with arms to the cities of Conchas & Ribeirão Preto
- The ethanol pipeline shall reduce logistics costs by 35% to 40% (from R$95/m3 to R$57/m3, RP region)
17
CCL’s Business Segments
Unique base on Fuel Marketing, Lubes and Distribution
Fuels Marketing
 4.6 billion liters sold in 2008
 Dealer network of 1,458 retail stations
(1)
Relative
Contribuição
Contribution
Lubricants
 Long-term agreement for the use of
 Supported by strategically located
Gross Profit Breakdown (1)
Esso and Mobil brands and
formulations
as of March 2009
(1)
 Oil blending plant in Rio de Janeiro,
Others (Convenience Stores and Rentals)
10.6%
with 1.4 MBy capacity (225 million
distribution assets
 Long-term agreements for the use of
“Esso”, “Stop & Shop” and “Hungry
Fuels Marketing
57.9%
liters/year)
 129 million liters sold in 2008
Tiger” brands
Lubricants
31.5%
Supply & Distribution Assets
Lubricants Assets
45 terminals
with total
throughput of
14.8 billion
liters
S&D
 Fuels Distribution contributed with
almost 60% of 12-month CCL’s Gross
Profit, while Lubes Division contributed
with 30%
Rio de Janeiro
Blending Plant
and Base Oil
Terminal
States With Retail Operations
Note: (1) Figures for FY’09. Excludes aviation business
18
Well Established Operations...
... Now Refueled by Cosan
ExxonMobil’s Legacy
Strong Franchise
High Operating Efficiency
Established Retail Distribution
(Monthly m3 per Station in 2008)
Brand
Shell
+
Innovation
Operational Excellence
285
BR
227
221
Chevro n
18 5
Ipiranga
Human Capital
+
238
States with Esso’s
Gas Stations
Source: Sindicom
Integration with Cosan:
Clear Strategy + Focus on Core Business
CCL’s Market Share (1)
Number of Retail Stations
Acquisition by
Cosan
(% - ANP)
5 .8 %
2008: 5.3%
5 .4 %
5 .3 %
Jan-08
5 .4 %
5 .3 %
5 .3 %
5 .2 %
Mar-08
(EoP)
May-08
5 .5 %
5 .4 %
Jul-08
5 .3 %
5 .4 % 5 .4 %
Sep-08
5 .5 %
5 .3 %
Nov-08
Mar-09
+150
1,6 3 7
5 .4 % 5 .4 %
Jan-09
+150
5 .9 %
May-09
2006
1,7 5 8
1,5 9 9
2007
1,6 0 8
1,4 5 8
1,4 5 8
2008
Mar-09
Mar-10
Mar-11
Source: Sindicom
Note: (1) ANP has not released NGV volumes for 2009
19
Lubricants Division
Increasing Market Share on Premium Products
Growing Concentration on Premium Products
Consistent Growth in Market Share
As of Mar’09
Lubes Volume Sold (MM Liters )
25.2%
CAGR 06-08
107
16.2%
15.5%
11.2%
49
12.6%
11.7%
10.5% 10.6% 11.2%
7.7%
Others Petronas
57
Shell
2006
2007
2008
M ar'09
Ultra
(2)
Texaco Petrobrás
2006
(1)
9.8%
115
129
(2.1%)
46
47
19.9%
69
82
2007
Premium
2008
Competitive
Source: Sindicom
Strategic Alliances with Global OEMs
Solid Growth
Direct / Non-Branded
587,0
416,9
Direct / Branded
479,3
Distributor / Branded
Direct / Non-Branded
Direct / Non-Branded
2006
2007
2008
155,1
150,4
1T'09
1T'10
Net Revenues (R$ MM)
Notes:
(1) Includes Mobil and Esso brand and unbranded lubes
(2) Ipiranga Brand
20
Integration in the Ethanol Value Chain
Leveraging on the Benefits of Vertical Integration
Strong Geographic Overlap with Cosan’s Mills
Reducing Transportation Costs
Before
Station
Mills
Terminals
Station
Mills
Terminals
Station
After
Station
Mills (Cosan)
Port (Cosan)
L&S (CCL)
States With Retail Operations (CCL)
S&D (CCL)
Ethanol
Diesel
Empty
One Step Ahead of the Industry
 Growth of ethanol will require distribution bases to
move towards mills over time
–
CCL: already integrated with Cosan’s mills
 Unique position in Santos’ port terminal and in logistics:
opportunity to ship ethanol to the Northeast (cabotage)
Superior Market Intelligence
 Unique visibility on price formation and inventory levels
• Cosan to continue supplying ethanol to a diversified
client base
• CCL to continue purchasing ethanol from multiple
suppliers
 Joint trading desk at São Paulo office (integrated
market vision / solutions)
21
Agenda
1. Introduction to Management
2. Enhanced Business Model
3. COSAN – Results 1Q'10
22
Cosan Group
An overview
Overview
Revenue Breakdown
Cosan S.A.: Long history as a leading ethanol and sugar
high-growth company with low-cost, large-scale and
integrated operations in Brazil
1Q’09
1Q’10
Largest grower and processor of sugarcane in the
world
Largest ethanol and sugar producer in Brazil and third
largest in the world
Sugar; 55%
Others; 7%
CCL - Others;
1%
CAA - Sugar;
18%
CAA - Others;
3%
CCL - Lubes;
4%
Largest sugar exporter and one of the largest ethanol
exporter in the world
CAA Ethanol; 13%
Ethanol; 38%
Share Performance
CCL - Fuels;
61%
IPO in Bovespa (Novo Mercado) in 2005: U$ 400MM
Current Market Cap of approximately R$7.6 billions
7,000
25
Price
Volume
Local; 41%
6,000
Export;
20%
5,000
15
R$
4,000
3,000
10
2,000
5
Export;
59%
Local; 80%
1,000
Au
g09
Ju
l-0
9
Ju
n09
09
M
ay
-
09
Ap
r-
09
M
ar
-
Fe
b09
0
Ja
n09
ec
-0
8
0
D
Shares ('000)
20
23
Cosan Group
Growth Evolution
Sugarcane Crushed
Crushing cane of 43.1 million tones of sugar cane in
2008/09 crop. Estimative of 56 million tones for 2009/10
crop;
(MM Tons)
60
Strong growth in sugar and ethanol sales in the last
years;
56.0
50
40.3
40
Sugar business sales breakdown:
Local 17.1%; Exports 82.9%
36.2
30
Ethanol business sales breakdown:
23.8
26.6
27.9
FY'05
FY'06
17.3
20
13.0
10.6
Local 67.7%; Exports 32.3%
43.1
10
0
FY'01
FY'02
FY'03
Sugar Sales
FY'08
FY'09
FY'10E
(MM liters)
3,500
3,241
1,800
3,147
3,052
2,500
2,184
2,000
2,322
1,568
1,600
3,000
1,000
FY'07
Ethanol Sales
(‘000 Tons)
1,200
1,016
1,000
825
763
800
1,264
1,496
1,322
1,400
2,469
1,797
1,500
FY'04
757
578
989
975
600
400
500
283
354
200
0
0
FY'01
FY'02
FY'03
FY'04
FY'05
Local
FY'06
Exports
FY'07
FY'08
FY'09
1Q'10
FY'01
FY'02
FY'03
FY'04
FY'05
FY'06
FY'07
FY'08
FY'09
1Q'10
24
Local
Exports
Cosan Group
Financials
R$MM, unless otherwise mentioned
FY’08
Net Operating Revenue
(-) Cost of Goods Sold
of which Depreciation & Amortization
(=) Gross Profit
Gross Margin
(-) Selling Expenses
(-) G&A Expenses
2,736.2
(2,387.1)
(341.3)
349.0
12.8%
(301.3)
(210.2)
(6.0)
172.9
6.3%
224.8
397.8
13.4%
284.3
6.6
(201.4)
10.0
(69.0)
18.7
2.5
(47.8)
-1.7%
(=)
(=)
(=)
(=)
Other Operating Income (Expenses)
EBITDA
EBITDA Margin
Hedge Gains (Losses)
EBITDAH (Ajust. by Hedge)
EBITDAH Margin
Financial Income, net
Equity Income
Goodwill Amortization
Nonoperating Results
Profit (Loss) Before Taxes
Income Taxes
Minority's Participation
Net Profit (Loss)
Profit Margin
FY’09
6,270.1
(5,470.7)
(427.2)
799.4
12.7%
(432.6)
(275.9)
199.9
718.0
11.5%
277.7
765.7
12.1%
(817.4)
14.0
(196.5)
(709.1)
234.7
0.6
(473.8)
-7.6%
1Q’10
3,566.1
(3,198.4)
(169.9)
367.7
10.3%
(209.6)
(89.3)
72.5
311.2
8.7%
160.8
472.0
12.7%
433.4
(3.6)
(85.6)
485.6
(157.9)
9.6
337.3
9.5%
25
Cosan Financial Highlights
Consolidated Net Revenues
R$ MM
Consolidated Net Revenues
l
(R$MM)
3,566
6,270
Price (US$/tons)
3,106
2,445
2,736
2,736
Exports
Volume ('000 tons)
3,605
3,605
Net Revenues
Sugar
FX Rate (R$/US$)
Local
3,183
640
1,147
Volume ('000 tons)
Price (R$/tons)
FY'07
FY'08
FY'09
CAA
1Q'09
1Q'10
CCL
Ethanol
Exports
Volume ('000 m3)
 Net Revenues of R$ 3.57 billions, 458%
higher compared to 1Q’09;
Price (US$/m3)
FX Rate (R$/US$)
Local
Volume ('000 m3)
 CCL invoiced 2.4 billions in 1Q’10,
around 68% of total revenues
Price (R$/m3)
Fuels
FY’09*
1Q’10
2,736.2
6,270.1
3,566.1
1,428.7
1,805.1
651.0
1,181.2
1,571.3
514.5
2,663.0
2,693.2
819.2
444
583
302.4
1.828
2.315
2.077
247.5
233.8
136.6
484.1
358.5
169.3
511
652
806.5
1,119.1
1,176.0
479.5
310.4
401.0
165.5
415.5
456.4
244.1
747
879
326.5
1.828
2.315
2.077
808.7
775.1
314.0
1,152.9
1,038.7
512.6
701
746
612.5
7,900.6
8,335.5
2,275.5
Volume ('000 m3)
4,539.9
4,640.6
1,372.1
Price (US$/m3)
1,740.3
1,796.2
1,658.5
479.3
587.0
150.4
115.1
128.9
29.7
Lubes
Volume (milhões liters)
Price (R$ / '000 liters)
* Consolidation of CCL not included
FY’08*
4,164.2
4,553.9
5,070.6
Others CAA
188.4
202.3
98.9
Others CCL
843.4
1,020.8
18.8
Elimination of Consolidation
-
-
(108.0)
26
Cosan Financial Highlights
Consolidated EBITDA
EBITDA and EBITDA Margin
EBITDA Breakdown
1Q’09
25.8%
11.5%
6.7%
4.6%
930
219
Others
3%
29
FY'08
FY'09
CCL
CAA - Sugar
& Ethanol
60%
92.4
654
183
CAA
CCL
30%
311
718
64.5
FY'07
1Q’10
8.7%
1Q'09
Sugar &
Ethanol
100%
1Q'10
CAA Cogeneration
7%
Margem EBITDA
1Q’10 EBITDA Reconciliation
 EBITDA of R$311.2 million, 965.8% higher
than 1Q’09, with CCL EBITDA of R$92.4 million.
(R$MM)
 Net Financial Expenses of R$433.4 million,
benefited by exchange variation and positive
results with derivatives for commodities and FX,
following the hedge strategy of the company.
160.8
92.4
472.0
 Net Income of R$337.3 million and profit
margin of 9.5%.
36.5
85.9
(86.7)
311.2
7.8
99.9
46.2
29.2
EBITDA
1Q’09
Volume
Price
FX Rate
Costs
SG&A
Others
CCL
EBITDA
1Q’10
Hedge
EBITDAH
1Q’10
27
Financial Highlights - Sugar
Volume & Avg. Unit Price
Net Revenues
(‘000 Tons – R$ / ton)
(R$MM)
454
683
592
659
445
651
2,214
989
3,147
3,241
2,803
3,052
2,663
2,693
688
438
484
359
104
169
FY'07
FY'08
FY'09
1Q'09
1Q'10
Exports
295
341
248
234
58
FY'07
FY'08
FY'09
1Q'09
Local
Avg. Unit Price
137
1Q'10
Exports
Unit Gross Margin
(R$MM – R$ / ton)
(R$MM)
396
430
36.3%
430
431
1,313
1,247
27.3%
33,7%
12.7%
436
1,409
515
1,571
1,181
COGS & Avg. Unit Cost
435
352
1,873
819
Local
1,805
1,429
792
3.4%
248
222
341
161
58
15
FY'07
FY'08
FY'09
COGS
1Q'09
1Q'10
Avg. Unit Cost
FY'07
FY'08
FY'09
Unit Gross Margin
1Q'09
1Q'10
Gross Mg. %
28
Financial Highlights - Ethanol
Volume & Avg. Unit Price
Net Revenues
(MM liters – R$ / ‘000 liters)
897
(R$MM)
714
787
244
456
1,153
1,047
1,039
1,119
1,176
310
401
809
775
480
757
1,495
416
275
634
1,186
1,568
1,322
714
297
166
242
82
339
115
513
888
314
160
224
FY'07
FY'08
FY'09
Local
1Q'09
Exports
1Q'10
FY'07
FY'08
Local
Avg. Unit Price
COGS & Avg. Unit Cost
1Q'09
1Q'10
Exports
Unit Gross Margin
(R$MM – R$ / ‘000 liters)
679
FY'09
(R$MM)
728
636
721
546
717
10.9%
7.4%
78
58
218
1,089
997
24.3%
898
243
(3)
FY'07
FY'08
FY'09
1Q'09
1Q'10
FY'07
FY'08
FY'09
1Q'09
1Q'10
- 0 ,4 %
(87)
COGS
Avg. Unit Cost
Unit Gross Margin
Gross Mg. %
-
- 13 , 8 %
29
Financial Highlights - CCL
Net Revenues (1)
Net Revenues by Product (1)
1Q'09
2,548
8,559
417 59
8,083
8,440
479 60
7,901
8,986
587 64
155
2,445
17
150
2,375
8,336
1Q'10
Gasoline
37%
19
2,276
Others
7%
Lubes
6%
Others
12%
Lubes
6%
Ethanol
6%
Diesel
39%
Ethanol
6%
2006
2007
2008
Fuels
1Q'09
Gasoline
36%
Diesel
45%
1Q'10
Lubes
Others
Lucro Bruto e Margem Bruta (%)
EBITDA e Margem EBITDA (2)
(1)
(R$MM)
(R$MM)
6.9%
6.9%
6.6%
5.7%
579
60
168
488
59
127
616
64
201
168
17
52
3.8%
7.7%
187
19
2.8%
52
1.6%
145
257
3.0%
298
65
92
7
302
351
351
98
117
2006
2007
2008
1Q'09
1Q'10
Fuels
Notes: (1) Excluding Aviation Business
(2) Excluding non-recurring expenses
Lubes
Others
Gross Margin
2006
Reported
232
2007
85
2008
1Q'10
Non-recurring
EBITDA Margin
30
Financial Highlights
Indebtedness
Net Debt
Debt per Type (R$MM)
Perpetual Notes
Senior Notes 2017
Senior Notes 2009
IFC
FX Advances
Pre-Export Contracts
Promissory Notes
BNDES
Finame (BNDES)
Working Capital
Overdraft
Credit Banking Note
Debentures
Credit Notes
Expenses with Placement of Debt
Gross Debt
Cash & Marketable Securities
Net Debt
Debt Profile
4Q'08
774.2
686.6
60.4
99.0
14.8
6.0
31.9
(41.1)
1,631.8
1,010.1
621.7
4Q'09
1Q'10
1,054.1
888.6
936.7
803.3
86.5
71.1
114.3
98.8
143.3
152.1
121.3
1,162.0 1,198.2
230.5
360.1
44.7
222.7
25.2
24.5
0.1
0.3
216.8
157.8
343.2
(42.4)
(34.3)
3,755.0 4,624.4
719.4
932.9
3,035.6 3,691.5
Debt Profile (R$MM)
Total Debt
Short-Term
Long-Term
Real - R$
Dollar - US$
4Q'09
3,755.0
1,442.7
2,312.3
1,420.1
2,334.9
%
100.0
38.4
61.6
37.8
62.2
1Q'10
4,624.4
1,115.9
3,508.5
2,195.5
2,428.9
%
100.0
24.1
75.9
47.5
52.5
 Indebtedness mix of 24:76 between short and long term do
not reflect:
 the debt renegociation of R$ 1.1 billion assumed with
acquisition of Nova América;
 corporate bond issue in CCL Finance totaling
US$350 million to extend the maturity profile
 Out of the total of R$ 639 million to Jatai project and R$ 149
million for Gasa approved by BNDES, the inflow was R$ 50
MM. In addition, there were another R$ 80 MM for Bonfim.
Net Debt / EBITDA (x)
5.7x
4.2x
3.7x
3.4x
2.98x
1.3x
FY'07
Reported
FY'08
FY'09
1Q'09
 Using the EBITDA of LTM of CAA ended in June 30th, 2009,
and 7-month period annualized of CCL and 1-month period
annualized of NovAmerica , we obtain a Net Debt / EBITDA of
2.98x
1Q'10
12-month EBITDA
* Excluding PESA and the FRNs 2018
31
Financial Highlights
Investments
Capex(R$MM)
FY'08
l Sugar Cane Planting Costs
257.4
l Inter-harvest Maintenance Costs 155.0
l Cogeneration Projects
177.3
l Greenfield
93.9
l Projects CAA
369.5
l Projects CCL
l Investments
160.5
(=) Investment Cash Flow
1,213.6
(=) Capex
1,053.1
(=) Operating Capex
781.9
FY'09
118.9
144.4
325.8
455.4
290.4
11.3
1.823.6
3,169.7
1,346.1
565.0
1Q'10
71.7
24.8
78.6
163.4
70.7
11.5
(58.5)
362.1
420.6
178.7
 Greenfield: Jataí unit will begin crushing in
September and Caarapó in October
 Cogeneration Projects: Copi and Rafard
projects were finalized in FY’09, Gasa is in
advanced stage. In 1Q’10, investments progress
in Barra and Bonfim’s projects.
 Operating Capex: 15.4% higher than the previous year, specially due to the investments in Greenfield of
Jatai, co-generation projects and planting activities.
32
Thank you!
IR Contact
Luiz Felipe Jansen
IR Manager
[email protected]
Q&A Section
33