ITR 141831-CMAA 31 12 2015 inglês

Transcrição

Companhia Mineira de Açúcar e Álcool Participações
Quarterly information - ITR
December 31, 2015
(A free translation of the original report in Portuguese)
KPDS 141831
December 31, 2015
Contents
Report on the review of quarterly information - ITR
3
Balance sheets
5
Statements of income
6
Statements of comprehensive income
7
Statements of changes in shareholders' equity
8
Statements of cash flows - Indirect method
9
Statements of added value
10
Notes to the quarterly information - ITR
11
2
KPMG Auditores Independentes
Rua Sete de Setembro, 1.950
13560-180 - São Carlos, SP - Brasil
Caixa Postal 708
13560-970 - São Carlos, SP - Brasil
Central Tel
Fax
Internet
55 (16) 2106-6700
55 (16) 2106-6767
www.kpmg.com.br
Report on the review of quarterly information - ITR
To the Board Members and Shareholders of
Uberaba - Minas Gerais
Introduction
We have reviewed the interim, individual and consolidated financial information of Companhia
Mineira de Açúcar e Álcool Participações ("Company”), contained in the Quarterly Information
- ITR Form for the quarter ended December 31, 2015, which comprise the balance sheet as of
December 31, 2015 and related statements of income and of comprehensive income for the
three and nine-month periods then ended, of changes in shareholders' equity and of cash flows
for the nine-month period then ended, including the explanatory notes.
Management is responsible for the preparation of the individual interim financial information in
accordance with Technical Pronouncement CPC 21(R1) - Interim Statement and of the
consolidated interim accounting information in accordance with CPC 21 (R1) and IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as
well as for the presentation of this information in a manner consistent with the standards issued
by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of
the Quarterly Information - ITR. Our responsibility is to express a conclusion on these interim
financial information based on our review.
Scope of review
We conducted our review in accordance with the Brazilian and international review standards
for interim information (NBC TR 2410 - Review of Interim Financial Information Performed by
the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, respectively). A review of interim
information consists in asking questions, chiefly to the persons in charge of financial and
accounting affairs, and in applying analytical procedures and other review procedures. A review
is substantially less in scope than an audit conducted in accordance with Brazilian and
International Standards on Auditing and consequently does not enable us to obtain assurance
that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion on the individual interim information
Based on our review, we are not aware of any facts that would lead us to believe that the
individual interim accounting information included in the quarterly information referred to
above was not prepared, in all material respects, in accordance with CPC 21 (R1) applicable to
the preparation of Quarterly Information - ITR, and presented in a manner consistent with the
standards issued by the Brazilian Securities and Exchange Commission (CVM).
KPMG Auditores Independentes, uma sociedade simples brasileira e
firma-membro da rede KPMG de firmas-membro independentes e
afiliadas à KPMG International Cooperative (“KPMG International”),
uma entidade suíça.
3
KPMG Auditores Independentes, a Brazilian entity and a member
firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a
Swiss entity.
Conclusion on the consolidated interim information
Based on our review, we are not aware of any facts that would lead us to believe that the
consolidated interim accounting information included in the quarterly information referred to
above was not prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34,
issued by IASB applicable to the preparation of Quarterly Information - ITR, and presented in a
manner consistent with the standards issued by the Brazilian Securities Commission.
Emphasis
Without modifying our opinion, we draw attention to note 1 to the consolidated financial
information, which demonstrates that the Company's total consolidated current liabilities
exceeded total consolidated current assets by R$ 258,825 thousand as of December 31, 2015.
This condition, together with other matters, as described in note 1, indicate that a significant
uncertainty exists and may raise significant doubts on the Company's operating capacity as a
going concern.
Other issues
Statement of added-value
We also reviewed the individual and consolidated statement of added value (SAV) for the ninemonth period ended on December 31, 2015, prepared by the Company's management, whose
presentation in the interim information is required according to the standards issued by the
CVM - Securities and Exchange Commission, applicable to the preparation of Quarterly
Information - ITR and considered supplementary information by the IFRS, which do not require
the presentation of the SAV. These statements were subjected to the review procedures
previously described and, based on our review, we are not aware of any other event that make
us believe that those were not prepared, in all material respects, in accordance with the
individual and consolidated interim financial information taken as a whole.
São Carlos, February 11, 2016
KPMG Auditores Independentes
CRC 2SP014428/O-6
André Luiz Monaretti
Accountant CRC 1SP160909/O-3
4
See the accompanying notes to the quartely informations.
931.878
Total assets
2
185.333
425.348
5.945
62.319
6.635
1.450
41.800
128
12.306
252.931
49.084
21.032
87.989
17.652
31.561
45.613
12/31/2015
678.947
8
9
10
6
17
15
7
4
3
4
5
6
17
7
Note
949.118
730.049
2
190.328
467.209
5.763
66.747
7.908
880
29.817
28.142
219.069
141.409
7.369
19.843
16.125
34.323
03/31/2015
Consolidated
Total non-current assets
Investments
Biological assets
Property, plant and equipment
Intangible assets
Total non-current assets
Long-term assets
Advances to suppliers and other assets
Trade accounts receivable and other receivables
Judicial deposits
Recoverable taxes and contributions
Derivative financial instruments
Deferred income and social contribution taxes
Total current assets
Cash and cash equivalents
Inventories
Assets
(In thousands of reais)
Balance sheets at December 31 and March 31, 2015
149.006
148.914
147.154
35
1.325
400
400
-
92
8
76
8
12/31/2015
5
85.832
85.628
83.727
36
1.322
543
543
-
204
122
75
7
03/31/2015
Parent company
Total liabilities and shareholders' equity
931.878
797.267
Total liabilities
303.364
4.164
(40.506)
(132.411)
285.511
230.290
51.762
1.913
1.546
511.756
317.338
39.673
49.731
51.219
19.039
6.782
25.691
2.283
12/31/2015
134.611
16
8
14
11
12
11
12
17
13
Note
Total shareholders' equity
Shareholders' equity
Capital
Capital reserve
Equity valuation adjustment
Accumulated losses
Total non-current liabilities
Loans and financing
Debentures
Other non-current liabilities
Provision for loss in investments
Provisions for contingencies
Total current liabilities
Loans and financing
Debentures
Suppliers and other accounts payable
Provision and labor charges
Tax liabilities
Advances from clients
Other liabilities
Liabilities
949.118
876.371
72.747
203.364
4.164
(59.000)
(75.781)
164.364
163.546
818
712.007
448.172
93.042
31.999
59.500
19.392
5.183
46.761
7.958
03/31/2015
Consolidated
149.006
14.395
134.611
303.364
4.164
(40.506)
(132.411)
11.742
2.751
8.991
-
2.653
69
7
2.479
98
12/31/2015
85.832
13.085
72.747
203.364
4.164
(59.000)
(75.781)
11.456
2.856
8.600
-
1.629
18
62
1.449
100
03/31/2015
Parent company
Earnings per share
Earnings per share - basic and diluted (in R$)
23
(0,01061)
(7.904)
0,00594
1.490
6
(1.744)
1.327
(Loss)/Net income for the period attributable to controlling shareholders
(1.510)
(234)
1.327
15
15
Current income and social contribution taxes
3.234
-
(9.231)
-
(17.275)
(24.116)
6.841
20.509
Income (loss) before taxes
8
21
Net financial expenses
Profit sharing of investees under the equity method, net of taxes
(66.685)
46.171
21
21
Financial expenses
Financial income
(20.514)
11.283
(14.442)
(14.756)
Income (loss) before net financial income (loss), equity in net income of
subsidiaries and taxes
(10.522)
(3.862)
(58)
(10.399)
(3.541)
(816)
19
19
34.951
136.438
228
(101.715)
12/31/2014
(3 months)
Sales expenses
Administrative expenses
Other operating income/(expenses), net
133.552
2
(107.515)
12/31/2015
(3 months)
26.039
18
9
19
Note
Consolidated
Gross income
Net operating income
Variation of the biological asset's fair value
Cost of sales and services
Three and nine-month periods ended December 31, 2015 and 2014
Statements of income
(0,07603)
(56.630)
(6.308)
(57)
(6.251)
(50.322)
-
(53.909)
(142.340)
88.431
3.587
(43.078)
(30.374)
(10.544)
(2.160)
46.665
332.815
21.310
(307.460)
12/31/2015
(9 months)
0,06300
15.810
(3.144)
(3.979)
835
18.954
-
(51.761)
(61.916)
10.155
70.715
(41.620)
(30.662)
(11.295)
337
112.335
375.111
(560)
(262.216)
12/31/2014
(9 months)
(0,01061)
(7.904)
-
-
(7.904)
(7.415)
(57)
(57)
-
(432)
(432)
(435)
3
-
-
12/31/2015
(3 months)
0,00594
1.490
-
-
1.490
1.797
(10)
(13)
3
(297)
(297)
(297)
-
-
-
12/31/2014
(3 months)
(0,07603)
(56.630)
-
-
(56.630)
(55.458)
(176)
(181)
5
(996)
(996)
(999)
3
-
-
12/31/2015
(9 months)
Parent company
0,06300
15.810
-
-
15.810
16.726
(254)
(261)
7
(662)
(662)
(662)
-
-
-
12/31/2014
(9 months)
5.966
13.870
Effects in net gains/(losses) from cash flow hedge
Total comprehensive income
(7.904)
12/31/2015
(3 months)
Net (loss)/income for the period
Three and nine-month periods ended December 31, 2015 and 2014
Statements of comprehensive income
(5.609)
(7.099)
1.490
12/31/2014
(3 months)
7
(38.136)
18.494
(56.630)
12/31/2015
(9 months)
Consolidated
(6.142)
(21.952)
15.810
12/31/2014
(9 months)
5.966
13.870
(7.904)
12/31/2015
(3 months)
(5.609)
(7.099)
1.490
12/31/2014
(3 months)
(38.136)
18.494
(56.630)
12/31/2015
(9 months)
Parent company
(6.142)
(21.952)
15.810
12/31/2014
(9 months)
8
16
Balance at December 31, 2015
17/ 18
Other comprehensive income
Net gains from cash flow hedge
Loss for the period
Capital increase through paid-up capital pursuant to minutes of meeting held on November 27, 2015
Balance at April 1, 2015
303.364
-
100.000
203.364
203.364
203.364
Capital
-
16
Note
Other comprehensive income
Net losses from cash flow hedge
Net income for the period
Balance at April 1, 2013
Nine-month periods ended December 31, 2015 and 2014
Statements of changes in shareholders' equity
4.164
-
-
4.164
4.164
-
4.164
Capital
reserve
(40.506)
18.494
-
-
(59.000)
(27.743)
(21.952)
-
(5.791)
Equity
valuation
adjustment
(132.411)
(56.630)
-
(75.781)
(66.008)
15.810
(81.818)
Accumulated
losses
134.611
18.494
(56.630)
100.000
72.747
113.777
(21.952)
15.810
119.919
Total
shareholders'
equity
Statements of cash flows – Indirect method
Consolidated
12/31/2015
Cash flow from operating activities
Income (loss) for the period
Adjustments to reconcile income (loss):
Variation of the biological asset's fair value
Depreciation and amortization
Decrease in biological assets for sugarcane harvest
Off-season amortization
Amortization of cultural treatments of ratoon cane
Equity in income of subsidiaries
Residual value of written-off fixed assets
Interest on loans and financing
Exchange variation on loans and investments
Gains/Losses with derivative financial instruments
Formation/reversal of provision for contingencies and other provisions
Parent company
12/31/2014
12/31/2015
12/31/2014
(56.630)
15.810
(56.630)
15.810
(21.310)
28.699
39.246
36.503
34.868
7.767
55.776
34.850
28.545
(2.641)
6.251
560
28.240
37.040
36.792
22.051
15.194
48.682
16.561
(7.596)
(336)
(835)
55.458
-
(16.726)
-
191.924
212.163
(1.172)
(916)
(13.663)
(68.146)
(13.510)
(10.587)
(8.281)
(353)
1.599
(21.070)
(5.675)
(6.101)
(94.661)
(8.989)
1
(15.007)
1.436
5.177
10.954
(1.390)
143
(1)
(1)
51
(55)
1.030
(2)
(1)
51
14
301
1
Cash from (used in) operating activities
52.238
103.583
(7)
(550)
Payment of interest on loans and financing
(54.486)
(51.270)
-
(2.248)
52.313
(7)
(550)
Cash flow from investment activities
Capital increase in subsidiary
Formation of biological assets
Acquisition of fixed assets
Acquisition of intangible assets
(47.809)
(30.788)
(502)
(50.645)
(25.248)
(2.118)
(100.000)
(107)
(37)
(736)
Cash flow (used in) investment activities
(79.099)
(78.011)
(100.107)
(773)
206.724
(317.966)
100.000
318.558
(306.011)
-
100.000
1.323
-
Cash flow (used in) from financing activities
(11.242)
12.547
100.000
1.323
Net decrease in cash and cash equivalents
(92.589)
(13.151)
(114)
264
60.562
-
122
-
116
-
49.084
47.411
8
116
(Increase) decrease in trade accounts receivable and other receivables
(Increase) in inventories
(Increase) in recoverable taxes and contributions
(Increase) decrease in advances to suppliers and other assets
(Decrease) increase in suppliers and other accounts payable
(Decrease) Increase in provisions and labor charges
Increase in tax liabilities
(Decrease) increase in advances from clients
(Decrease) increase in other liabilities
Cash flow (used in) from operational activities
Cash flow from financing activities
Loans and financing
Payment of principal of loans and financing and foreign exchange rate
Funding with related parties
Capital increase
141.409
Cash and cash equivalents at April 1
Effect of exchange variation on the cash and cash equivalents
Cash and cash equivalents at December 31
9
-
-
Statements of added value
Consolidated
Parent company
12/31/2015
12/31/2014
12/31/2015
12/31/2014
350.835
396.876
-
-
348.104
2.731
-
393.467
3.412
(3)
-
-
(202.833)
(225.170)
(973)
(558)
(140.760)
(41.882)
(20.191)
(159.087)
(48.837)
(17.246)
(609)
(364)
-
(192)
(366)
-
Gross added value
148.002
171.706
(973)
(558)
Depreciation and amortization
(67.945)
(44.300)
-
-
Net added value generated by the Company
80.057
127.406
(973)
(558)
Added value received as transfer
88.431
10.155
(55.453)
16.733
88.431
10.155
(55.458)
5
16.726
7
Total added value payable
168.488
137.561
(56.426)
16.175
Personnel
Direct remuneration
Benefits
FGTS
59.355
41.122
14.471
3.762
21.881
17.819
2.346
1.716
5
5
-
6
6
-
Taxes, rates and contributions
Federal
State
Other taxes
24.203
20.898
1.792
1.513
22.027
20.694
834
499
63
41
22
-
28
12
16
-
Third-party capital remuneration
Interest
Rents
Others
141.560
112.437
244
28.879
77.843
49.988
91
27.764
136
32
104
331
12
319
Remuneration of own capital
Income (loss) for the period
(56.630)
(56.630)
15.810
15.810
(56.630)
(56.630)
15.810
15.810
168.488
137.561
(56.426)
16.175
Income
Sale of goods, products and services
Other income
Allowance for doubtful accounts
Inputs acquired from third parties (including PIS and COFINS)
Cost of products, goods, and services sold
Materials, energy, outsourced services and others
Others
Financial income
Distributed added value
10
December 31, 2015
Note
1
2
Preparation basis
Operations
Presentation of the interim financial information and significant
accounting policies
3
4
5
6
7
8
9
10
Assets
Inventories
Investments
Biological assets
14
15
15
16
16
17
19
21
11
12
13
14
15
16
Liabilities and shareholders’ equity
Loans and financing
Debentures
Provision for contingencies
Income and social contribution taxes
23
25
26
26
27
28
17
Financial instruments
29
18
19
20
21
Performance for the year
Expenses by nature
Commitments
Net financial income (expenses)
39
40
41
41
22
23
24
25
26
Other information
Related parties
Earnings per share
Operating segments
Insurance coverage
Environmental risks
42
43
44
44
44
11
12
13
December 31, 2015
(In thousands of Reais)
1
Operations
The Company, located at Rodovia BR 050 (KM 121) - Distrito Industrial I of Uberaba/MG, is a
limited-liability company engaged in holding interest in other companies that produce, sell and
export sugar, ethanol, power and other products derived from the processing of sugarcane. It
obtained its registry of publicly-traded company on March 4, 2009, by means of CVM/SEP/RIC
Circular Nº 001/2009, for trading of common shares on the non-organized over-the-counter
market, but none outstanding shares.
The Company is the parent company of the following Companies:
•
Triângulo Mineiro Açúcar e Álcool S/A. (Triângulo Mineiro);
•
Vale do Tijuco Açúcar e Álcool S/A. (Vale do Tijuco); and
•
Rio Tijuco Agropecuária S/A. (Rio Tijuco).
The subsidiary Triângulo Mineiro Açúcar e Álcool S/A.., with head offices in Uberlândia, and
the subsidiaries Vale do Tijuco Açúcar e Álcool S/A. and Rio Tijuco Agropecuária S/A., both
with head offices in Uberaba, are engaged in the production, sale and export of sugar, ethanol
and other products derived from the processing of sugarcane; the rendering of services to third
parties and the industrialization by order of the latter; the co-generation and sale of electric
power, and it may exploit the planting of sugarcane in their own or third-party land; the sale of
their own or third-party sugarcane; the intermediation of sale of sugarcane, and holding interest
in other companies, as partner or shareholder.
The subsidiary Triângulo Mineiro Açúcar e Álcool S/A. is at pre-operating phase with estimated
grinding of 2.2 million tons per year for the first phase and 5.5 million for the final phase of
expansion, according to the business plan.
The operations of the subsidiary Vale do Tijuco Açúcar e Álcool S/A. began on April 12, 2010.
The industrial plant of Vale do Tijuco Açúcar e Álcool S/A. has grinding capacity of around 4
million tons of sugarcane per year, producing sugar, anhydrous ethanol, hydrated ethanol and
power, as well as the by-products fusel oil and sugarcane bagasse.
The subsidiary Rio Tijuco Agropecuária S/A. is in the operating phase and its main activity is
the cultivation and trading of sugarcane both in own lands and third party lands.
The planting of sugarcane requires a period of up to 18 months for maturation and beginning of
harvest, which usually occurs between April and November. The sale of the production occurs
throughout the year and it does not suffer variations due to seasonality, but only variation of the
usual market offer and demand (commodity price and foreign exchange).
12
December 31, 2015
As a means to extend the maturity profile of the Company's debt, which, at December 31, 2015,
presented an excess of consolidated current liabilities over consolidated current assets of R$
258,825, Management is already renegotiating the balances of borrowings and adequate funding
with the main creditor banks whose loans are classified as current liabilities, with a view to
adjusting the cash flows from operations. Among the main actions taken, the following stand
out:
•
Search for a long-term credit line totaling R$ 200,000 from prime banks, to adjust working
capital and reduce financial expenses.
•
On November 27, 2015, an amount of R$ 100,000 was transferred by the shareholders, as a
planned capital increase.
The purpose of the strategic planning the Company has been implementing is to generate
positive results in the coming years.
These strategies were approved by the Company’s shareholders.
2
2.1
Presentation of the interim financial information and significant
accounting policies
Preparation basis
The interim financial information was prepared in accordance with Technical Pronouncement
CPC 21 - Interim Statement and with international standard IAS 34 - Interim Financial
Reporting, issued by the International Accounting Standards Board - IASB, as well as for the
presentation of this information in a manner consistent with the standards issued by the
Brazilian Securities and Exchange Commission, applicable to the preparation of the Quarterly
Information - ITR.
This quarterly information has been prepared adopting the same accounting policies applied in
the preparation of the financial statements at March 31, 2015, and should be read together with
these financial statements. Information from accompanying notes which did not suffer material
changes, or did not contain material disclosures, in comparison to March 31, 2015 were not
fully reproduced in this quarterly information. However, select information was included to
explain the main events and transactions that took place, in order to provide an understanding of
the changes in the Company's financial position and operating performance since the disclosure
of the financial statements at March 31, 2015.
The preparation of these interim information, Management used judgments, estimates and
assumptions that affect the Group’s application of accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates. The
estimates and assumptions are reviewed continually, and did not suffer any material changes in
the preparation of these interim financial statements in comparison to the financial statements at
March 31, 2015.
The presentation of the Statement of Value Added is required by Brazilian corporate legislation
and the accounting practices adopted in Brazil applicable to publicly-held companies. The IFRS
do not require the presentation of this statement. For IFRS purposes, this statement is presented
as supplementary information, and not as part of the required set of financial statements.
13
December 31, 2015
The issue of interim financial information was authorized by Management on February 11,
2016.
2.2
Basis of consolidation
The consolidated financial information include quarterly information on Companhia Mineira de
Açúcar e Álcool Participações and the following subsidiaries:
Percentage of Interest
2.3
Subsidiaries
Country
Triângulo Mineiro Açúcar e Álcool S/A. (Triângulo Mineiro)
Vale do Tijuco Açúcar e Álcool S/A. (Vale do Tijuco)
Rio Tijuco Agropecuária S/A. (Rio Tijuco)
Brazil
Brazil
Brazil
12/31/2015
03/31/2015
99.99%
99.99%
100%
99.99%
99.99%
100%
New IFRS Standards and IFRIC Interpretations applicable to the consolidated
financial statements
There are no other IFRSs or IFRIC interpretations not yet effective which are expected to have a
material impact on the Company in addition to those already disclosed in the financial
statements at March 31, 2015.
3
Consolidated
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
Cash and banks
Interest earning bank deposits
13,999
35,085
21,021
120,388
2
6
122
Total
49,084
141,409
8
122
The cash balance arises from receipts of business transactions and are resources available to
meet the immediate cash needs of the Company and its subsidiaries. All funds are deposited in
prime bank institutions.
Interest earning bank deposits are cash equivalents since they are promptly convertible into a
known sum of cash and subject to an insignificant risk of change of value. These interest
earning bank deposits mostly refer to Bank Deposit Certificates (CDB) in several financial
statements, remunerated at rates that vary from 95% to 100% of the CDI - Interbank Deposit
Certificate. Interest earning bank deposits have no monthly maturity and may be redeemed at
any time.
The Group's exposure to interest rate risks and a sensitivity analysis of financial assets and
liabilities are disclosed in note 17.
14
December 31, 2015
4
Consolidated
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
From the sale of energy
From the sale of ethanol
From the sale of sugarcane
Others
17,307
2,426
1,299
4,322
728
1,257
1,062
-
-
Trade accounts receivable
21,032
7,369
-
-
Related party credits (Note 22)
-
-
400
543
Other receivables
-
-
400
543
Total
21,032
7,369
400
543
Current assets
Non-current assets
21,032
-
7,369
-
400
543
The Group as of December 31, 2015 did not have any operation that generated a significant
effect in adjustment to present value.
The Group’s exposure to credit risks and impairment losses related to trade accounts receivable
and other receivables are disclosed in Note 17.
5
Inventories
Consolidated
Finished product
Anhydrous ethanol
VHP Sugar
Hydrous ethanol
Storeroom
Warehouse, sundry (a)
Our inventory held by third parties
Advance to sundry suppliers
Others
Total
(a)
12/31/2015
03/31/2015
36,901
33,976
5,568
5,624
96
179
9,602
1,858
84
7,794
2,882
2,222
1,046
87,989
19,843
The most representative amounts of supplies refer to inputs and agricultural pesticides to be used in the planting areas
in plantation - own or third party’s.
15
December 31, 2015
6
Consolidated
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
COFINS recoverable
PIS recoverable
ICMS recoverable - Acquisition of fixed assets
Income tax on interest earning bank deposits
ICMS recoverable - purchase of inputs
Other taxes recoverable
30,875
9,750
8,282
5,289
4,175
1,081
21,722
7,849
9,451
1,399
4,431
1,090
10
66
10
65
Total
59,452
45,942
76
75
Current assets
Non-current assets
17,652
41,800
16,125
29,817
76
-
75
-
PIS and COFINS
The balance comprises credits arising from the non-cumulative collection of PIS and COFINS
(taxes on income) on purchases of parts used to perform maintenance on the manufacturing
facilities and agricultural fleet, maintenance services provided at the manufacturing and
agricultural facilities, freight and storage related to sales transactions and electric power, as well
as other credits arising from purchases of machinery and equipment, buildings and constructions
to be used in production. These credits may be compensated with other federal taxes and no
limitation periods.
ICMS
The balance is mainly comprised of credits calculated on acquisition of property, plant and
equipment items, realized at the rate of 1/48, and may be offset against taxes of the same nature.
IRRF
Refers to withholding income tax on financial investments and income tax and social
contribution prepayments through an offset against federal taxes and contributions due.
7
Consolidated
12/31/2015
03/31/2015
Advance to suppliers of sugar-cane - third parties
Advances to sugarcane suppliers - related parties (note 22)
Others
48,776
2,396
1,076
35,446
1,896
4,889
Total
52,248
42,231
Current assets
Non-current assets
45,613
6,635
34,323
7,908
The balance of advance to suppliers refers to the agreement for supply of sugarcane, signed
between the subsidiary Vale do Tijuco Açúcar e Álcool S/A. and its suppliers. Balance
16
December 31, 2015
classified in non-current assets refers to advance contracts that will be realized upon receipt of
sugarcane beginning as of 2015/2016 crop, priced based on Total Recoverable Sugar (TRS)
index disclosed by Consecana (Council of Sugarcane, Sugar and Ethanol Producers in the São
Paulo State) at the end of the crop. Balances at March 31, 2015 were reclassified as inventories.
8
Investments
Breakdown of balances
Parent company
12/31/2015
03/31/2015
Investment under the equity method
Rio Tijuco Agropecuária S/A.
Triângulo Mineiro Açúcar e Álcool S/A.
Vale do Tijuco Açúcar e Álcool S/A.
11,494
(8,991)
135,660
11,211
(8,600)
72,516
Total
138,163
75,127
Classified as:
Investments
Provision for loss in investments
147,154
(8,991)
83,727
(8,600)
In the period ended December 31, 2015, the Company recorded a loss of R$ 55,458
(and a gain of R$ 16,726 on December 31, 2014) in equity income in its subsidiaries.
The Company accounts its investments in subsidiaries under the equity method. The Company
and its subsidiaries do not have their shares traded on the Stock Exchange.
Changes in investments in subsidiaries
Parent company
Opening balance of investments
Capital increase through paid-up capital (Vale do Tijuco) held on November 27, 2015
Equity evaluation adjustment (Vale do Tijuco)
17
12/31/2015
03/31/2015
75,127
(55,458)
100,000
18,494
120,982
7,355
(53,210)
138,163
75,127
December 31, 2015
Information from investees
The chart below presents a summary of all financial information at subsidiaries:
Three and nine-month periods ended December 31, 2014
3 months
March 31, 2015
Triângulo Mineiro S/A.
Vale do Tijuco S/A.
Rio Tijuco S/A.
%
Current
assets
Noncurrent
assets
Total
assets
Current
liabilities
Noncurrent
liabilities
Total
liabilities
Shareholders'
equity
Income
99.9999%
99.9999%
100%
44
218,821
118
2,513
728,342
11,418
2,557
947,163
11,536
974
640,112
325
10,183
234,535
-
11,157
874,647
325
(8,600)
72,516
11,211
218,983
742,273
961,256
641,411
244,718
886,129
75,127
9 months
Expenses
Income
/ loss
Equity in net
income of
subsidiaries
Expenses
Income /
loss
Equity in net
income of
subsidiaries
Income
150,715
-
(134)
(148,758)
(26)
(134)
1,957
(26)
(134)
1,957
(26)
1
404,790
374
(493)
(387,778)
(168)
(492)
17,012
206
(492)
17,012
206
150,715
(148,918)
1,797
1,797
405,165
(388,439)
16,726
16,726
Three and nine-month periods ended December 31, 2015
3 months
December 31, 2015
Triângulo Mineiro S/A.
Vale do Tijuco S/A.
Rio Tijuco S/A.
%
Current
assets
Noncurrent
assets
Total
assets
Current
liabilities
Noncurrent
liabilities
Total
liabilities
Shareholders'
equity
Income
99.9999%
99.9999%
100%
48
253,442
538
2,018
677,294
11,553
2,066
930,736
12,091
655
600,042
597
10,402
195,034
-
11,057
795,076
597
(8,991)
135,660
11,494
254,028
690,865
944,893
601,294
205,436
806,730
138,163
18
9 months
Expenses
Income
/ loss
Equity in net
income of
subsidiaries
Expenses
Income /
loss
Equity in net
income of
subsidiaries
Income
1
181,530
-
(185)
(188,743)
(18)
(184)
(7,213)
(18)
(184)
(7,213)
(18)
1
451,729
448
(394)
(507,075)
(167)
(393)
(55,346)
281
(393)
(55,346)
281
181,531
(188,946)
(7,415)
(7,415)
452,178
(507,636)
(55,458)
(55,458)
December 31, 2015
9
Biological assets
The Company’s biological assets comprise cultivation and planting of own sugarcane to be used
as raw material in its ethanol industrial processes. The cultivation of sugarcane is initiated with
the plantation of seedlings, the first cutting occurs after a period of 12 to 18 months after
planting, when the sugarcane is cut and the root (“ratoon”) continues in the soil. After each cut
or year/harvest, the treated root stock grows again, giving on average a total of five or six crops,
varying based on the culture and genetic material to which it is related to.
Biological assets’ movement is as follows:
Consolidated
Balance at March 31, 2014
178,410
Increase due to additions of planting
Decrease due to harvesting
Fair value less estimated selling expenses
50,645
(59,091)
(560)
169,404
19,141
1,783
190,328
Decrease due to harvesting
47,809
(74,114)
21,310
185,333
Biological assets will be realized in the following crops:
Consolidated
76,264
49,992
33,078
18,128
7,871
2016/2017
2017/2018
2018/2019
2019/2020
2020 onwards
185,333
Total
Sugarcane plantations
Planted areas refer only to sugarcane plantations, and do not consider planted land. The
following assumptions were used in the determination of the fair value:
19
December 31, 2015
Consolidated
Estimated harvest area (hectares)
Estimated productivity (sugarcane tons/hectares)
Total recoverable sugar (ATR) (kg)
TRS value/kg (R$)
12/31/2015
03/31/2015
21,637
78.48
133
0.6341
21,911
81.22
140
0.4763
The discount rate used in the cash flow of each period, called as “Weighted-Average Cost of
Capital”, corresponded to 5.58% per year (6.11% on March 31, 2015), which was revised and
approved by the Company’s Management.
The Group is exposed to several risks related to its crops:
Regulatory and environmental risks
The Group is subject to laws and regulations and established environmental policies and
procedures directed to compliance with environmental laws and other. The management carries
out regular analyses to identify environmental risks and assure that systems under operation are
appropriate to manage those risks.
Supply and demand risks
The Group is exposed to risks resulting from the prices fluctuation and sales volume of its
plantations. Where possible, the Group manages this risk by aligning its extraction volume with
market supply and demand. The management analyzes on a regular basis the trend of the
industry to ensure that the price structure of the Group is in accordance with market and to
ensure that estimated volumes of harvest are consistent with expected demand.
Climatic risks and others
The Group’s plantations are exposed to risks of damages caused by climate changes, diseases,
forest fires and other nature forces. The Group had extended processes in progress to monitor
and reduce those risks, including health regulation inspections of the sugar cane areas and
analysis of diseases and plagues of the industry. The Group also protects itself against natural
disasters.
20
December 31, 2015
10
Industrial
equipment
Constructions
and buildings
Agricultural
machinery
and tractors
Paving
Cost
Additions
Write-offs
Transfers
352,501
5,115
(267)
19,325
69,930
77
(290)
3,850
33,601
6,215
(1)
171
Additions
Write-offs
Transfers
376,674
(501)
3,973
73,567
36
1
Additions
Write-offs
Transfers
380,146
831
1,526
382,503
Consolidated
Land
Machinery,
equipment and
tools
Furniture
and
fixtures
Computers
and
peripherals
Construction
in process (a)
Off-season
maintenance
expenditures
Others
Total
17,051
1,283
(1)
163
3,573
-
3,465
961
(412)
(159)
1,227
112
(51)
37
1,242
416
(62)
31,968
5,822
(24,517)
31,465
17,653
(36,792)
-
5,252
1,166
(908)
59
567,245
40,006
(38,929)
-
10,220
(480)
-
18,496
8
(1,978)
-
3,573
-
3,855
(290)
330
1,325
7
-
1,596
15
1
13,273
17,428
(15,354)
(3,980)
12,326
26,564
-
5,569
156
(69)
8
568,322
45,018
(19,233)
-
7,862
-
9,740
933
(445)
-
16,526
350
(1,052)
823
3,573
-
3,895
642
-
1,332
25
-
1,612
92
-
11,367
11,295
(304)
(6,892)
38,890
9,312
(36,503)
-
5,664
5,734
(5,484)
16
594,107
30,788
(46,371)
-
7,862
10,228
16,647
3,573
4,537
1,357
1,704
15,466
11,699
5,930
578,524
Vehicles
Agricultural
equipment
6,739
1,123
9,231
1,186
(207)
10
39,986
804
(561)
(333)
7,862
-
73,604
1,574
(1,045)
4,527
39,896
(1,538)
-
78,660
38,358
21
December 31, 2015
Industrial
equipment
Constructions
and buildings
Agricultural
machinery
and tractors
Paving
Furniture
and
fixtures
Computers
and
peripherals
Construction
in process (a)
Off-season
maintenance
expenditures
Others
Total
Depreciation
Additions
Write-offs
Transfers
(55,245)
(15,124)
(45)
(6,026)
(1,509)
73
-
(14,925)
(5,683)
226
39
(3,997)
(2,202)
55
(12)
-
(1,911)
(444)
18
(660)
(139)
22
(3)
(824)
(120)
(1)
-
-
(1,406)
(531)
4
3
(90,469)
(27,829)
484
(2)
(70,414)
(7,462)
(4,211)
(6,156)
-
(2,337)
(780)
(945)
-
-
(1,930)
(117,816)
(5,323)
7
(197)
-
(452)
205
-
(662)
(56)
-
(168)
1
20
(44)
-
(52)
2
-
-
(193)
1
-
(9,410)
326
2
(21,955)
(3,435)
(4,458)
(6,874)
-
(2,484)
(824)
(995)
-
-
(2,122)
(126,898)
(1,738)
-
(4,905)
1,451
(591)
-
(1,402)
219
(2,237)
421
-
(515)
-
(91)
-
(161)
-
-
-
(482)
10
(28,379)
2,101
(91,987)
(9,759)
(25,409)
(4,026)
(5,641)
(8,690)
-
(2,999)
(915)
(1,156)
-
-
(2,594)
(153,176)
304,416
290,516
65,583
68,901
17,941
12,949
4,427
3,836
5,282
4,587
9,652
7,957
3,573
3,573
1,411
1,538
508
442
617
548
11,367
15,466
38,890
11,699
3,542
3,336
467,209
425,348
Vehicles
(2,695)
(543)
-
(2,780)
(1,534)
104
(1)
(20,343)
(3,238)
(559)
-
(1,760)
119
29
(75,730)
(8,021)
Additions
Write-offs
(16,257)
-
Net book value
Consolidated
Additions
Write-offs
Transfers
(a)
Land
Machinery,
Equipment
and tools
Agricultural
equipment
Basically refers to works for the expansion of industrial plant and acquisition of equipment.
22
December 31, 2015
Guarantee
Property, plant and equipment items were given in guarantee of loans and financing, as
described in note 11.
Analysis of recovery value
In accordance with CPC 1 (R1) and IAS 36 - Asset impairment, the Company assessed
indicators of impairment as of December 31, 2015 and found no need to determine the
recoverable amount.
11
Loans and financing
This note discloses contract information on the loans and financing of the Company and its
subsidiaries. Note 17 discloses additional information on the exposure to interest rate and
currency risks of the Company and its subsidiaries.
The subsidiary Vale do Tijuco Açúcar e Álcool S/A. obtained loans, contracted in local
currency, in order to finance the acquisition of its industrial plant and operations. On December
31, 2015 and March 31, 2015, the balance of loans and financing is as follows:
Consolidated
Average interests and
charges p.a.
12/31/2015
03/31/2015
14.47%
5.68%
18.75%
17.12%
9.50%
9.81%
11.93%
5.23%
16.10%
5.50%
7.06%
13.64%
6.86%
17.14%
5.00%
19.88%
13.30%
20.63%
20,104
144,277
1,195
21,783
22
36,182
36,574
71,881
7,136
43,799
50,271
83,301
5,072
13,513
5,015
15,087
28,072
165,147
24,552
29,035
6,861
42,825
44,133
99,636
61,870
17,490
99,874
-
555,212
619,495
(7,584)
(7,777)
Total
547,628
611,718
Current liabilities
Non-current liabilities
317,338
230,290
448,172
163,546
Credit facility
Ref.
Currency
Index
Finame
Finame
Finame
Working capital
Working capital
Working capital
Indirect BNDES onlending
ACC
ACC
PPE
PPE
PPE
CRA
NCE
NCE
PASS
PASS
(a)
(a)
(a)
(b)
(b)
(b)
(c)
(c)
(d)
(d)
(d)
(d)
(d)
(e)
(d)
(d)
(f)
(f)
R$
R$
R$
R$
USD
R$
R$
R$
USD
USD
USD
USD
USD
R$
R$
R$
R$
R$
TJLP
Prefixed
SELIC
CDI (Interbank deposit certificate)
Prefixed
Prefixed
TJLP
Prefixed
Prefixed
Prefixed
Prefixed
Prefixed
TJLP
SELIC
Transaction costs
23
December 31, 2015
Parent company
Credit facility
Ref.
Currency
Index
charges p.a.
Loans - non-current
(Note 22)
(g)
R$
(g)
(g)
Total non-current liabilities
12/31/2015
03/31/2015
2,751
2,856
2,751
2,856
(a)
Refers to loans contracted to fund the acquisition of industrial and agricultural equipment. The loans have a grace
period for payment of the first installment of principal, interest and charges of 6-18 months from the date of contract
signing. The contracts are secured by chattel mortgage on disposal of assets as a financing object and pledge of credit
rights of electricity receivable.
(b)
Refers to working capital loans obtained by the subsidiary Vale do Tijuco Açúcar e Álcool S/A. Interest is paid
monthly after the signing of the contract. The loans are guaranteed by the Company's surety that mostly relate to
100% of the contracted facility.
(c)
It refers to a credit operation signed between the subsidiary Vale do Tijuco Açúcar e Álcool S/A. and Banco do Brasil
S.A., Banco de Desenvolvimento de Minas Gerais - BDMG and Bradesco S.A., which are the financial agents of the
contract, in which Banco do Brasil S.A. is the Leader of the financial agents. The amount was released by the
National Bank for Economic and Social Development - BNDES with the prerogative to finance project of
implantation of a plant with grinding capacity of 1.8 million tons of sugarcane. The funds obtained were used for
acquisition of industrial assets, for expansion of the production capacity of the unit. The contracts are guaranteed by
statutory lien on disposal of assets as a financing object and pledge of credit rights of electricity receivable and are
collateralized by the Company.
The contract of indirect repass of BNDES funds contains a restrictive clause that requires the subsidiary Vale do
Tijuco Açúcar e Álcool S/A. to maintain the Index of Debt Service Coverage (ICSD), of at least 1.30 during the
validity of the contract, which is calculated upon closing of the fiscal year, as follows: EBITDA (-) Income tax and
social contribution (-) changes in working capital / amortization of principal + interest payment.
(d)
The advances on exchange contracts and credit notes were signed with many financial institutions and will be settled
through exports made in years 2015 and 2016.
(e)
These refer to Agribusiness Credit Receivables Certificate (“CDCA”), under a trust agreement, registered with
BM&F Bovespa and CETIP. The approval was on October 7, 2014. CDCA installments will bear interest levied on
an annual basis, as of the date of payment of the CRA until the respective payment date of each installment of CDCA
interest, calculated on the nominal value and equivalent to 100% of accumulated average daily rates of DI over extra
group - Interbank Deposits, calculated by CETIP. The following financial institutions and agents were contracted:
Leading coordinating bank: BB-Banco de Investimentos S/A; issuing creditor: Gaia Agro Securitizadora S.A.,
fiduciary agent: Planner Trustee Distribuidora de Títulos e Valores Mobiliários Ltda; registrar agent: BNY Mellon
Serviços Financeiros Distribuidora de Títulos e Valores Mobiliários S.A.; custodian agent: SLW Corretora de Valores
de Câmbio Ltda. The contracts are guaranteed by statutory lien on disposal of assets as a financing object and pledge
of credit rights of VHP sugar, agricultural pledge and are collateralized by the Company.
The agreement has a restrictive covenant that requires the subsidiary Tijuco Açúcar e Álcool S/A maintain the
following financial ratios: Net Bank Debt/EBITDA ratio below 5.00; and the Net Bank Debt volume: the issuer's net
bank debt cannot exceed a total of R$ 600,000 (six hundred million reais) during the effective period of the
agreement, which is calculated at the end of the fiscal year.
(f)
Refers to the transfer of the Program for Support of the Sugar-Ethanol Industry (“PASS”) from “BDMG” (Banco de
Desenvolvimento de Minas Gerais S/A), released by BNDES on November 24, 2015. The agreements have a grace
period for payment of the first installment of principal, interest and charges from the date of contract signing up to
January 15, 2016. The contracts are guaranteed by the assignment of fiduciary ownership in disposal and entailment
in the volume stored, established in anhydrous ethanol contract.
(g)
Amount granted by the subsidiary Vale do Tijuco Açúcar e Álcool S/A., not subject to interest, and which will be
settled by the Company according to its available cash, as Note 22.
24
December 31, 2015
The transaction costs recorded under loans and financing, to be allocated to the result in each
subsequent period, is as follows:
December 31, 2015
Book
value
12
months
From 1 to 2
years
From 2 to
3 years
From 3 to
4 years
From 4 to
5 years
Over 5
years
Consolidated
7,584
2,121
1,920
1,745
1,730
39
29
March 31, 2015
Book
value
12
months
From 1 to 2
years
From 2 to
3 years
From 3 to
4 years
From 4 to
5 years
Over 5
years
Consolidated
7,777
1,579
2,335
1,538
1,527
769
29
The repayment schedule of the debt is presented in Note 17 - Financial Instruments.
12
Debentures
Consolidated
charges p.a.
Credit facility
Currency
Index
12/31/2015
03/31/2015
Debentures
Transaction costs
R$
94,297
(2,862)
94,181
(1,139)
Total
91,435
93,042
Current liabilities
39,673
51,762
93,042
-
3.00%
The repayment schedule is presented in Note 17 - Financial Instruments.
On November 11, 2013, the subsidiary “Vale do Tijuco” issued 12,000,000 debentures units
pursuant to the indenture of sole series debentures, non-convertible into shares, in a single
series, as collateral and personal guarantee in the nominal amount of R$ 120,000. Among the
contracting parties, Companhia Mineira de Açúcar e Álcool Participações was the guarantor and
Pentágono S/A - Distribuidora de Valores Mobiliários the representative of the group of
borrowers. The following financial institutions were contracted: Settlement Bank: Itaú
Unibanco S/A; Banco Coordenador Líder: Banco Itaú BBA S.A.; Coordinating banks: Banco
Rabobank International Brasil S.A., together with Banco Votorantim S.A. and Banco Itaú BBA
S.A. The financial release of funds between financial institutions and the issuer occurred on
January 20, 2014 maturing in November 2016. Maturities range from June to November of each
year.
The subsidiary “Vale do Tijuco” renegotiated the clauses of the debenture deed with the
debenture holders in June 2015, through aGeneral Debenture Holders' Meeting held on June 10,
2015. The exclusion of the debenture deed clause addressing the “Shareholders’ equity and
Total Assets" financial ratio was approved, releasing Vale do Tijuco Açúcar e Álcool S.A. from
the obligation to comply with this financial covenant for the entire fiscal year, totaling
R$ 40,079, and the repayment date of the debentures with short-term maturity (2015), totaling
R$ 53,000, was changed from March 31, 2015 to November 2017.
25
December 31, 2015
The transaction costs recorded under loans and financing, to be allocated to the result in each
subsequent period, is as follows:
13
December 31,
2015
Book
value
12
months
From 1 to 2
years
From 2 to 3
years
From 3 to 4
years
From 4 to 5
years
Over 5
years
Consolidated
2,862
1,639
1,223
-
-
-
-
March 31,
2015
Book
value
12
months
From 1 to 2
years
From 2 to 3
years
From 3 to 4
years
From 4 to 5
years
Over 5
years
Consolidated
1,139
1,139
-
-
-
-
-
Consolidated
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
Domestic suppliers of materials and services
Sugarcane suppliers
23,998
27,221
46,234
13,266
69
-
18
-
Total
51,219
59,500
69
18
The sugarcane harvest period, between April and December of each year, on average, has direct
impact on the balance of suppliers of sugarcane and respective cutting, loading and
transportation services.
Amounts payable to sugarcane suppliers and agricultural partners take into consideration
sugarcane delivered and not yet paid, and possible supplementation of sugarcane price
calculated based on the final crop price, using the Total Recoverable Sugar (TRS) index
disclosed by Consecana (Council of Sugarcane, Sugar and Ethanol Producers in the São Paulo
State).
The Company and its subsidiaries evaluated adjustments to present value of its suppliers’
balances on December 31, 2015 and March 31, 2015 and concluded that these amounts did not
generate material adjustments to present value in financial information.
The exposure of the Group to currency and liquidity risks related to accounts payable to
suppliers and other accounts payable, is disclosed in note 17 - Financial instruments.
14
The Group is party to lawsuits involving labor, civil and tax contingencies. To face future losses
linked to those processes, a provision was recorded at an amount considered by the Group's
management as sufficient to cover probable losses. The Group classified the risk of loss in
lawsuits as “remote”, “possible” or “probable”. The likelihood of lawsuit losses and the
determination of involved amounts was performed considering claimers' requests, previous
court decisions on the matter, and the opinion of legal counsel of the Group. The main
information of lawsuits is presented as follows:
26
December 31, 2015
Consolidated
12/31/2015
03/31/2015
818
2,548
(1,820)
1,208
1,135
(1,525)
1,546
818
Opening balance
Additions
Write-offs
Closing balance
Based on information from its legal advisors, analysis of the pending legal proceedings, based
on previous experience with regards to amounts claimed, management recorded provisions for
amounts considered sufficient to cover possible losses from the current actions.
Unrecognized contingent liabilities
Contingent liabilities not recognized in the Quarterly information refer to lawsuits for which an
unfavorable outcome has been regarded as possible by the legal advisors, amounting to R$
4,177 as of December 31, 2015 (R$ 4,603 as of March 31, 2015), for which no reserve has been
recorded, taking into consideration that neither the accounting practices adopted in Brazil nor
the International Financial Reporting Standards (IFRS) require it to be accounted for.
15
Income and social contribution taxes
Assets/ Liabilities
Consolidated
Income (loss)
12/31/2015
03/31/2015
12/31/2015
(3 months)
12/31/2015
(9 months)
12/31/2015
(3 months)
12/31/2015
(9 months)
526
2
650
8,236
3,086
(10,286)
278
2
132
1,167
(3,889)
(459)
650
11,097
(63)
212
248
650
8,104
1,919
(6,397)
-
-
Effects of exchange forward
contracts (NDF)
10,092
30,452
(10,110)
(10,775)
(20,811)
(9,585)
Net assets
12,306
28,142
1,327
(6,251)
(20,811)
(9,585)
Actuarial provision
Effects of swap contracts
Tax losses and negative basis (a)
Fair value of biological assets
Assets/ Liabilities
Consolidated
(a)
Income (loss)
12/31/2014
03/31/2014
12/31/2014
(3 months)
12/31/2014
(9 months)
12/31/2014
(3 months)
12/31/2014
(9 months)
Effects of swap contracts
Tax losses and negative basis (a)
Fair value of biological assets
298
4
152
1,216
(3,465)
411
11
136
1,619
(4,812)
(14)
2
(375)
(66)
219
(114)
(8)
15
(404)
1,346
-
-
Effects of exchange forward
contracts (NDF)
14,293
2,983
-
-
3,657
11,309
Net assets
12,498
348
(234)
835
3,657
11,309
The Company’s management recognized deferred tax assets of income tax and social contribution arising from tax
and social contribution loss carryforwards up to the limit of 30% of deferred tax liabilities of income tax and social
contribution - annual offsetting limit of tax loss, according to the tax legislation, arising from the gain determined in
the calculation of the fair value of biological asset. The remaining balance of unrecorded deferred income and social
contribution tax losses and negative basis of social contribution is approximately R$ 78,651.
27
December 31, 2015
Reconciliation of income and social contribution taxes
Consolidated
Effective rate reconciliation
12/31/2015
(3 months)
12/31/2014
(3 months)
12/31/2015
(9 months)
12/31/2014
(9 months)
(9,231)
34%
3,234
34%
(50,322)
34%
18,954
34%
3,139
(1,100)
17,109
(6,444)
18,999
(4,301)
(13,832)
(8,009)
(20,811)
3,657
(9,585)
11,309
1,327
(1,510)
(234)
(57)
(6,251)
(3,979)
835
(14.38%)
(53.93%)
(12.54%)
(16.59%)
Income (loss) for the period before taxes
Nominal rate
Tax expense at nominal rate
Adjustment of income and social contribution taxes
Non-deductible expenses
Effects of financial instruments directly recognized in
shareholders’ equity
Current income and social contribution taxes
Deferred income and social contribution tax
Effective rate
The tax nominal rate is 34% on adjusted income, according to current legislation in Brazil for
taxable income. The effective rate shown above is the best management estimate of the
expected annual rate. The noted distortions arise from the effects of the non-accounting of the
tax credits mentioned in item (a) of this note.
Deductible timing differences and accumulated taxes losses do not lapse pursuant to the tax
legislation in force.
16
a.
Capital
As of December 31, 2015, capital is represented by 744,857,552 (250,932,826 as of March 31,
2015) registered common shares, with no par value, distributed as follows:
Parent company
12/31/2015
03/31/2015
Shares
R$
Shares
R$
IndoAgri Brazil Participações Ltda.
Ápia SP Participações S.A.
372,428,776
372,428,776
175,466
127,898
125,466,413
125,466,413
125,466
77,898
Total
744,857,552
303,364
250,932,826
203,364
On November 27, 2015, the shareholders, at the Special Shareholders' Meeting, approved the
capital increase in the amount of R$ 100,000 through the issuance of 493,924,726 new shares,
of which 246,962,363 were subscribed by Apia SP Participações S.A. and 246,962,363 were
subscribed by IndoAgri Brazil Participações Ltda.
28
December 31, 2015
b.
Capital reserve
As a result of the capital increase carried out on July 13, 2007, the Company set up a special
goodwill reserve in the amount of R$ 4,164, according to the Brazilian Corporation Law.
c.
Legal reserve
The legal reserve is set up at the rate of 5% of the net income determined in each financial year,
pursuant to article 193 of Law 6404/76 up to the limit of 20% of the share capital.
d.
Statutory reserve
The Company shall maintain a statutory reserve for business development or expansion, aimed
at: (i) ensuring funds for investments in research & technology; (ii) increasing working capital
to ensure proper operating conditions to meet the corporate objectives of the Company; and (iii)
to finance the business growth of the Company. After the adjustments and legal deductions, up
to 100% of the remaining net income can be allocated to the statutory reserve, up to the limit of
the capital stock, in case it is approved at the Annual Shareholders’ Meeting.
e.
Equity valuation adjustment
It includes the effective portion of the cumulative net exchange variation of liabilities in dollar
and derivatives designated as cash flow hedge of future exports (hedged item), according to
Note 17.
The amounts recorded in equity valuation adjustments are reclassified into profit or loss when
recognizing the export income.
f.
Dividends
The Company’s bylaws determines a percentage higher than 25% to payment of compulsory
minimum dividends. In view of the accumulated losses, no dividend was declared or paid.
17
a.
Accounting classification and fair values
The following table shows the book and fair values of consolidated financial assets and
liabilities, including their fair value classifications.
December 31, 2015
Fair value
Book value
Designated
at fair
value
Loans and
receivables
Other
financial
liabilities
Total
Level 1
Level 2
Level 3
Total
Financial instruments measured at
fair value
35,085
-
-
35,085
-
35,085
-
35,085
Total
35,085
-
-
35,085
-
35,085
-
35,085
Financial instruments not
measured at fair value
Trade accounts receivable and other
receivables
-
13,999
-
13,999
13,999
-
-
13,999
31,689
21,032
-
-
21,032
31,689
21,032
-
31,689
-
21,032
31,689
Total
31,689
35,031
-
66,720
35,031
31,689
-
66,720
29
December 31, 2015
March 31, 2015
Designated
at fair value
Loans and
receivables
Other
financial
liabilities
Total
Level 1
Level 2
Level 3
Total
fair value
120,388
-
-
120,388
-
120,388
-
120,388
Total
120,388
-
-
120,388
-
120,388
-
120,388
Financial instruments not measured
at fair value
Trade accounts receivable and
other receivables
-
21,021
-
21,021
21,021
-
-
21,021
-
7,369
-
7,369
7,369
-
-
7,369
Total
-
28,390
-
28,390
28,390
-
-
28,390
Book value
December 31, 2015
Fair value
Designated
at fair value
Loans and
receivables
Other
financial
liabilities
Total
Level 1
Level 2
Level 3
Total
fair value
Loans and financing
Debentures
49,731
-
-
547,628
91,435
547,628
49,731
91,435
-
547,628
49,731
91,435
-
547,628
49,731
91,435
Total
49,731
-
639,063
688,794
-
688,794
-
688,794
at fair value
Suppliers
-
-
51,219
51,219
51,219
-
-
51,219
Total
-
-
51,219
51,219
51,219
-
-
51,219
Book value
March 31, 2015
b.
Fair value
Book value
Fair value
Designated
at fair value
Loans and
receivables
Other
financial
liabilities
Total
Level 1
Level 2
Level 3
Total
fair value
Loans and financing
Debentures
31,999
-
-
611,718
93,042
611,718
31,999
93,042
-
611,718
31,999
93,042
-
611,718
31,999
93,042
Total
31,999
-
704,760
736,759
-
736,759
-
736,759
at fair value
Suppliers
-
-
59,500
59,500
59,500
-
-
59,500
Total
-
-
59,500
59,500
59,500
-
-
59,500
Measurement of fair value
The book values referring to the financial instruments contained in the balance sheet, when
compared with the amounts that could be obtained in their trading in an asset market or, in the
absence hereof, with the net present value adjusted with a basis on the current interest rate in the
market, are substantially close to their corresponding market values.
There were no material transfers between levels at December 31, 2015.
30
December 31, 2015
c.
Management of financial risks
The Group has transactions involving financial instruments aimed at meeting their own needs.
As of December 31, 2015, the Group does not have financial instruments not recorded nor does
make transactions involving financial instruments for speculation. The main risks related to the
operations of the Company and its subsidiaries are as follows:
•
Credit risk;
•
Liquidity risk, and
•
Market risk.
This note contains information on the Group's exposure to each of the abovementioned risks, the
Group's objectives and the processes for measuring and managing risk and the capital
management.
Risk management structure
The Board of Directors is responsible for following the risk management policies of the Group,
and the managers of each area report on their activities to the Board of Directors.
The Group's risk management policies are established to identify and analyzed the risks that the
Group faces, to define appropriate limits and controls of risks, and to monitor risks and
adherence to the limits. The risk management policies and systems are reviewed frequently to
reflect changes in the market conditions and in the activities of the Company and its
subsidiaries. The Group, through its training and management rules and procedures, aims to
develop a disciplined and constructive control environment, in which all the employees
understand their roles and its obligations.
Credit risk
Credit risk is the risk of the Group incurring losses due to a client or financial instrument
counterparty, resulting from failure in complying with contract obligations. Risk is mainly due
to trade accounts receivable, and of financial instruments, as follows.
Exposure to credit risk
The carrying amounts of financial assets classified as loans and receivables represent the
maximum credit exposure. The maximum credit risk exposure on the date of financial
information was:
Consolidated
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
49,084
21,032
31,689
141,409
7,369
-
8
400
-
122
543
-
Total
101,805
148,778
408
665
Current assets
Non-current assets
101,677
128
148,778
-
8
400
122
543
31
December 31, 2015
The objective of the Company and its subsidiaries is to work with a reduced number of financial
institutions and to seek business with those that present a greater robustness. In addition, another
policy adopted to mitigate credit risk is to maintain investment balances proportional to the
balance of the borrowings with each of these institutions.
In the history of the Company and its subsidiaries, there are no records of losses on cash and
cash equivalents.
Loans and receivables
The exposure of the Company and its subsidiaries to credit risk is influenced, mainly, by the
individual characteristics of each client. In addition, sales are evenly distributed throughout the
corporate year (mainly in the crop period from March to December of each calendar year) which
allows that the Company and its subsidiaries interrupt deliveries to clients which are considered
as a possible credit risk.
Impairment losses
The composition by maturity of trade accounts receivable recorded in current assets as of the
financial information for which no impairment loss was recognized was as follows:
Consolidated
12/31/2015
03/31/2015
Falling due
Overdue up to 30 days
Overdue between 31 and 90 days
Overdue between 90 and 180 days
Overdue over 180 days
20,800
30
202
7
5,019
1,349
13
988
7
Total
21,039
7,376
The Company and its subsidiaries reviewed the adjustment to present value of its trade
receivable balances as of December 31, 2015 and March 31, 2015 and concluded that their
amounts approximate the book value, since their accounts receivable have a short-term turnover.
The allowance for doubtful accounts is formed based on the past-due bills for over 180 days, at
an amount considered adequate by the Management to cover eventual losses from the
realization of trade accounts receivable.
From clients that present a history of non-performance of its financial obligations, the Company
and its subsidiaries seek to operate with advanced payments.
Guarantees
The subsidiary Vale do Tijuco Açúcar e Álcool S/A. is guarantor before the financial entities
and credit cooperatives, of input purchase transactions and financing to be used in the planting
and harvesting of sugarcane of its suppliers. As of December 31, 2015, the total collateralized
value amounts to R$ 3,264. The subsidiary Vale do Tijuco Açúcar e Álcool S/A. will assume
the debit of its suppliers up to the limit of the pledged collateral, in case of default on
obligations. The occasional values disbursed by the Company to pay the obligations of
suppliers, in case of default, are adjusted by the TJLP (Long-term interest rate), plus 5.5% p.a.
on a pro rata basis, and will be deducted when the sugarcane is supplied by the supplier. As of
32
December 31, 2015
December 31, 2015, the subsidiary Vale do Tijuco Açúcar e Álcool S/A. did not record the
collateral at fair value, because there was no supplier in default in the Company, nor did any
likelihood of the use of these collaterals by suppliers.
Liquidity risk
Liquidity risk is the risk of the Group encountering difficulties in performing the obligations
associated with its financial liabilities that are settled with cash payments or with another
financial asset. The responsibility for the management of liquidity risk lies with the Group’s
management and its Board of Directors, which manages the liquidity risk in short, medium and
long terms, maintaining credit lines of funding according to its cash needs, combining the
profiles of its financial asset and liability maturities.
The book value of financial liabilities with liquidity risk is as follows:
Consolidated
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
Loans and financing
Debentures
547,628
91,435
49,731
51,219
611,718
93,042
31,999
59,500
2,751
69
2,856
18
Total
740,013
796,259
2,820
2,874
Current liabilities
457,961
282,052
632,713
163,546
69
2,751
18
2,856
As of December 31, 2015, the Group recorded a current liabilities balance in excess of the
current assets balance by R$ 258,825.
The recorded maturity of financial liabilities are as follows:
Consolidated
December 31, 2015
Loans and financing
Debentures
Suppliers and other
accounts payable
Derivative financial
instruments
Consolidated
March 31, 2015
Loans and financing
Debentures
Suppliers and other
accounts payable
Derivative financial
instruments
Book
value
Up to 12
months
From 1 to 2
years
From 2 to 3
years
From 3 to 4
years
From 4 to 5
years
Over 5
years
547,628
91,435
317,338
39,673
10,716
25,881
58,528
25,881
55,894
45,272
-
59,880
-
51,219
51,219
-
-
-
-
-
49,731
49,731
-
-
-
-
-
Book
value
Up to 12
months
From 1 to 2
years
From 2 to 3
years
From 3 to 4
years
From 4 to 5
years
Over 5
years
611,718
93,042
448,172
93,042
35,525
-
37,379
-
30,559
-
27,192
-
32,891
-
59,500
59,500
-
-
-
-
-
31,999
31,999
-
-
-
-
-
No cash flow expected, included in the analysis of the maturation of the Group, may occur
significantly sooner or in amounts significantly different.
33
December 31, 2015
Market risk
Market risk is the risk that alterations in market prices, such as exchange rates and interest rates,
have in the Group's earnings, or in the value of its holdings of financial instruments. Because of
its activities, the Group is also exposed to financial risks arising from the following: change in
the value of total recoverable sugar, used for calculating the fair value of the biological asset
and the VHP sugar value (Very High Polarized).
Interest rate risk
The Group is exposed to risks related to interest rates, by virtue of loans and financing
contracted and interest earning bank deposits, primarily exposed to variations in the CDI
(Interbank deposit certificate) and TJLP (Long-term interest rate). The Group's management
monitors the fluctuations in the floating interest rates linked to certain debts, by using
derivatives to minimize the impacts arising from these risks.
Cash flow sensitivity analysis for variable rate instruments - Consolidated
The sensitivity analysis is made based on the interest rates of non-derivative financial
instruments in the end of the period ended December 31, 2015. As established by CVM
Instruction 475/08, which requires the presentation of two scenarios with deterioration of 25%
and 50% in the variable of risk considered, we show below the possible impacts of how they
would have increased (decreased) the equity and the profit or loss for the period according to the
following amounts. These scenarios can produce impacts on profit or loss and future cash flows
of the Group as described below:
•
Scenario I: It corresponds to the scenario considered as the most probable for interest rates on
the date of financial information;
•
Scenario II: Deterioration of 25% in the main risk factor of the financial instrument in relation
to the level verified in the probable scenario; and
•
Scenario III: Deterioration of 50% in the main risk factor of the financial instrument in relation
to the level verified in the probable scenario.
Interest rate risk on financial assets and liabilities - Appreciation of rates Consolidated
Scenarios
Instruments
Financial assets
Financial liabilities
Finame
Finame
Working capital
PASS
PASS
PPE and NCE
Debentures
12/31/2015
Index variation by
25%
Probable
Exposure in
Risk
Index variation by
50%
%
Amount
%
Amount
%
Amount
35,085
10.09%
3,540
12.61%
884
15.14%
1,772
(20,104)
(1,195)
(36,182)
(21,783)
(5,015)
(15,087)
(107,583)
(94,297)
TJLP
SELIC
TJLP
TJLP
SELIC
4.88%
9.74%
4.88%
10.09%
4.88%
9.74%
10.09%
10.09%
(981)
(116)
(1,766)
(2,198)
(245)
(1,469)
(10,855)
(9,515)
6.10%
12.18%
6.10%
12.61%
6.10%
12.18%
12.61%
12.61%
(245)
(30)
(441)
(549)
(61)
(369)
(2,711)
(2,376)
7.32%
14.61%
7.32%
15.14%
7.32%
14.61%
15.14%
15.14%
(491)
(59)
(883)
(1,100)
(122)
(735)
(5,433)
(4,762)
(5,898)
Impact on income (loss) and shareholders’ equity
34
(11,813)
December 31, 2015
Interest rate risk on financial assets and liabilities - Depreciation of rates Consolidated
Scenarios
Index variation by
25%
Probable
Instruments
Financial assets
Financial liabilities
Finame
Finame
Working capital
PASS
PASS
PPE and NCE
Debentures
Exposure in
12/31/2015
Risk
Index variation by
50%
%
Amount
%
Amount
%
Amount
35,085
10.09%
(3,540)
7.57%
(884)
5.05%
(1,772)
(20,104)
(1,195)
(36,182)
(21,783)
(5,015)
(15,087)
(107,583)
(94,297)
TJLP
SELIC
TJLP
TJLP
SELIC
4.88%
9.74%
4.88%
10.09%
4.88%
9.74%
10.09%
10.09%
981
116
1,766
2,198
245
1,469
10,855
9,515
3.66%
7.31%
3.66%
7.57%
3.66%
7.31%
7.57%
7.57%
245
30
441
549
61
369
2,711
2,376
2.44%
4.87%
2.44%
5.05%
2.44%
4.87%
5.05%
5.05%
491
59
883
1,100
122
735
5,433
4,762
5,898
Currency risk
The Group is subject to currency risk (US dollar) in part of their borrowings taken in a currency
other than the functional currency.
As regards other monetary assets and liabilities denominated in foreign currency, the Group
guarantees that its net exposure is kept at an acceptable level, buying or selling foreign
currencies at demand rates, when necessary, to address short-term instabilities.
The short-term portions of the monetary liabilities denominated in foreign currency are secured
by assets also denominated in foreign currency (sugar export at a price fixed in foreign
currency).
The long-term portion of these liabilities is secured by the Company’s sugar exports, which
account for 100% of the total exports, and whose prices are fixed in foreign currency and show
little sensitivity to exchange rate fluctuations.
12/31/2015
Derivatives
Maturity
Notional
(US$
thousand)
Principal Swap
Principal Swap
Principal Swap
Feb 2016
May 2016
Jun 2016
6,636
13,367
3,700
22,281
44,659
13,726
2,871
4,637
695
23,703
80,666
8,203
3,000
1,593
7,602
11,697
5,000
28,599
(528)
(1,546)
(2,842)
12,195
45,296
(4,916)
Total assets
Principal Swap
Interest rate swap
Principal Swap
Jan 2016
May 2016
Nov 2017
Total liabilities
35
Notional
Fair value
(R$ thousand)
(R$ thousand)
11,813
December 31, 2015
Exposures to foreign exchange risks
Foreign currency net exposure related to principal amounts is presented in the chart below (in
US$ thousand):
Consolidated
12/31/2015
03/31/2015
Swap
Loans and financing
NDF - Non-Deliverable Forward
3,166
11,508
(43,277)
(30,650)
3,416
(61,971)
(34,700)
Net exposure
(59,253)
(93,255)
Sensitivity analysis - Currency risk - Consolidated
The sensitivity analysis is made based on the exposure of loans and financing to the monetary
restatement of the US dollar in the period ended December 31, 2015. As established by CVM
Instruction 475/08, which requires the presentation of two scenarios with deterioration of 25%
and 50% in the variable of risk considered, we show below the possible impacts of how they
would have increased (decreased) the equity and the profit or loss for the period according to the
following amounts. These scenarios can produce impacts on profit or loss and/or future cash
flows of the Group as described below:
•
Scenario I: For the probable scenario in US dollar the exchange rate on December 31, 2015
was considered;
•
Scenario II: Deterioration of 25% in the main risk factor of the financial instrument in relation
to the level verified in the probable scenario; and
•
Scenario III: Deterioration of 50% in the main risk factor of the financial instrument in relation
to the level verified in the probable scenario.
Scenarios
Increase (R$)
Decrease (R$)
Notional
Fair value
25%
50%
25%
50%
3,166
12,386
3,097
6,193
(3,097)
(6,193)
24,550
23,703
-
3,911
8,203
19,575
978
2,051
4,894
1,956
4,101
9,788
(978)
(2,051)
(4,894)
(1,956)
(4,101)
(9,788)
(43,277)
(129,288)
(32,322)
(64,644)
32,322
64,644
(24,550)
(14,494)
(9,100)
(38,499)
(4,916)
(6,316)
(9,625)
(1,229)
(1,579)
(19,250)
(2,458)
(3,158)
9,625
1,229
1,579
19,250
2,458
3,158
(33,735)
(67,472)
33,735
67,472
Assets
Swap
Purchase and sale option
Liabilities
Loans and financing
Swap
Call Options
Information used to calculate sensitivity analyses presented above were obtained from external
market sources, such as Bloomberg and BM&F Bovespa.
36
December 31, 2015
Hedge accounting
Cash flow hedge involving the Company’s exports
The Group adopts a cash flow hedge accounting structure that consists of covering a highly
probable expected transaction of export in foreign currency (USD), against the exchange risk of
fluctuation in the foreign exchange rate of USD in relation to BRL, using as coverage
instrument the non-derivative financial instruments, such as Advance on Export Contracts
(ACC, in Portuguese) and the Export Credit Note (NCE, in Portuguese) and derivatives such as
Non-Deliverable Forward (NDF, in Portuguese), at amounts and maturities equivalent to
exports. The relation of hedge designated to hedge accounting is as follows:
Realized
Income (loss)
Not realized
ACC and NCE
NDF
(Note 18)
(50,225)
(15,256)
(22,874)
(38,499)
Net exposure
(65,481)
(61,373)
(-) Deferred income and social contribution taxes
20,867
(65,481)
Net exposure
(40,506)
The effective portion of the change in the fair value of designated derivatives and qualified as
cash flow hedge, and not settled, as well as the exchange variation in non-derivative hedge
instruments is recognized in shareholders’ equity as “Equity valuation adjustments”. This
portion is realized at the time of the elimination of the risk to which the hedge instruments were
designated. At the time of the settlement of financial instruments, gains and losses that were
previously deferred in other comprehensive income are transferred into profit or loss.
The Group is exposed to the foreign exchange risk of future cash flows in foreign currency, in
view of the income from the export of sugar. In order to mitigate this risk, the Group adopts
coverage procedures based on the exchange exposure calculated by the commercial credit
amount for the next 12 months, which is monthly reviewed. The coverage of the future cash
flows is analyzed and discussed by the Group’s Board of Directors, which approves and
authorizes the purchase and designation of derivative financial instruments.
Derivatives
Purchase/Sale
Market
Effective
Maturity
Term
Term
Term
Term
Term
Term
Term
Term
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
CETIP
CETIP
CETIP
CETIP
CETIP
CETIP
CETIP
CETIP
NDF
NDF
NDF
NDF
NDF
NDF
NDF
NDF
02/01/2016
06/30/2016
07/29/2016
08/31/2016
09/30/2016
04/28/2017
05/30/2017
05/30/2017
37
Notional (U$$)
Fair value (R$)
5,050
3,800
3,800
3,800
2,000
2,300
1,500
2,300
7,835
6,125
6,130
6,141
3,197
3,530
2,259
3,282
24,550
38,499
December 31, 2015
The table below presents all the financial derivative transactions entered into, as well as their
related fair values calculated by the Group's Management:
Assets
Swap
Call Options
Put Options
Total
Notional
(U$$ thousand)
Fair value (R$)
24,550
23,703
19,500
(19,500)
3,911
8,203
21,067
(1,492)
48,253
31,689
Current assets
Non-current assets
31,561
128
Liabilities
Call Options
Swap
Total
Notional
(U$$ thousand)
24,550
9,100
12,195
Fair value (R$)
38,499
6,316
4,916
45,845
49,731
Current liabilities
49,731
The call and put options have the following maturities:
Effective
Call option
Call option
Call option
Call option
Call option
Call option
Maturity
Notional
(U$$ thousand)
Fair value (R$)
04/29/2016
05/31/2016
06/30/2016
07/29/2016
08/31/2016
08/31/2016
2,300
3,800
3,800
3,800
3,800
2,000
2,371
3,976
4,035
4,077
4,133
2,475
19,500
21,067
Maturity
Notional
(U$$ thousand)
Fair value (R$)
04/29/2016
05/31/2016
06/30/2016
07/29/2016
08/31/2016
08/31/2016
(2,300)
(3,800)
(3,800)
(3,800)
(3,800)
(2,000)
(186)
(302)
(298)
(286)
(275)
(145)
(19,500)
(1,492)
Total
Effective
Put Option
Put Option
Put Option
Put Option
Put Option
Put Option
Total
Capital management
The Group manages its capital to ensure the continuity of its regular activities and, at the same
time, maximizes return to all stakeholders or parties involved in its operation, through debt and
equity balance optimization.
38
December 31, 2015
The capital structure of the Group is formed by the net indebtedness, deducted of cash and bank
balances, divided by the capital plus reserves. The Group is not subject to any external
requirement on capital.
Indebtedness ratio
The Group calculates its indebtedness ratio as follows:
Consolidated
12/31/2015
03/31/2015
Loans and financing
Debentures
(-) Cash and cash equivalents
547,628
91,435
(49,084)
611,718
93,042
(141,409)
(=) Net debt (A)
589,979
563,351
Shareholders’ equity (B)
Net debt ratio (A) / (B)
134,611
4.38
72,747
7.74
Income from derivative financial instruments
The Group recorded the gains and losses on these transactions in income (loss) for the period.
As of December 31, 2015, the impacts recorded in profit or loss are shown below:
Derivative
Market
Risk
12/31/2015
12/31/2014
Swap/ Options
(-) Deferred income and social contribution
taxes
CETIP
USD
(38,460)
444
13,076
(151)
(25,384)
293
Net Effect on Company’s income (loss)
18
The operating income of the Company are comprised of sugar and ethanol sales for the
domestic and foreign market and electricity.
We reproduce below the reconciliation between gross income for tax purposes and the revenues
presented in the statement of income for the period:
Consolidated
12/31/2015
(3 months)
12/31/2014
(3 months)
12/31/2015
(9 months)
12/31/2014
(9 months)
Gross income from sales and services:
Ethanol - Domestic market
Sugar - Foreign market
Electric power (a)
Sugar - Domestic market
Other income
CPC 38 - Hedge Accounting (Note 17)
78,573
67,379
8,791
(15,045)
43,764
72,514
37,610
75
(10,315)
184,095
185,128
43,033
127
1,202
(65,481)
139,035
164,357
99,151
75
604
(9,755)
Gross tax income
139,698
143,648
348,104
393,467
(6,146)
(7,210)
(15,289)
(18,356)
133,552
136,438
332,815
375,111
Sales tax
(a)
It refers to the supply of electric energy to the Electric Energy Trading Chamber (CCEE, in Portuguese), as established in the contract entered into
through the bid promoted by the Brazilian Electricity Regulatory Agency (ANEEL, in Portuguese). The energy supply contract establishes the supply
of 876,000 Mwh, during the period between April 2010 and March 2025, as follows:
39
December 31, 2015
Year of
Supply
Contracted
(Mwh)
Exported
(Mwh)
17,520
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
61,320
17,520
61,320
61,320
61,320
61,320
61,320
-
876,000
324,120
2010 / 2011
2011 / 2012
2012 / 2013
2013 / 2014
2014 / 2015
2015 / 2016
2016 / 2017
2017 / 2018
2018 / 2019
2019 / 2020
2020 / 2021
2021 / 2022
2022 / 2023
2023 / 2024
2024 / 2025
Total
The energy income is divided into fixed and variable:
Fixed income
The subsidiary Vale do Tijuco Açúcar e Álcool S/A. is entitled to the annual fixed income of R$
9,412, adjusted by the Extended National Consumer Price Index (IPCA, in Portuguese). The
payment of the fixed income is monthly made in the proportion of one twelfth.
In case the energy is supplied at amounts below the committed one, the subsidiary Vale do
Tijuco Açúcar e Álcool S/A. will be required to pay an annual refund to be calculated by CCEE
at the end of each supply period. The Company already delivered 100% of the amount
contracted by CCEE for the period regarding the amount of 61,320 Mwh.
19
Expenses by nature
The Company presented its statements of income using expenses classification based on
function. Information on the nature of these expenses recognized in the statements of income is
as follows:
Consolidated
12/31/2015
(3 months)
12/31/2014
(3 months)
12/31/2015
(9 months)
12/31/2014
(9 months)
(51,644)
(29,812)
(27,218)
(2,298)
(27)
(454)
3,938
(61,621)
(25,363)
(9,636)
(7,960)
(3)
(595)
3,463
(150,779)
(89,057)
(65,994)
(14,066)
(27)
(311)
12,774
(134,983)
(71,553)
(44,882)
(21,554)
(18)
(334)
11,108
(107,515)
(101,715)
(307,460)
(262,216)
(9,424)
(243)
(529)
(203)
(9,471)
(240)
(594)
(217)
(27,587)
(727)
(1,347)
(713)
(28,053)
(712)
(1,425)
(472)
(10,399)
(10,522)
(30,374)
(30,662)
Administrative expenses
Personnel expenses
Outsourced services
Depreciation, amortization and depletion
Other administrative expenses
(1,872)
(940)
(301)
(428)
(2,091)
(1,085)
(268)
(418)
(5,504)
(2,907)
(902)
(1,231)
(6,814)
(2,596)
(750)
(1,135)
Total
(3,541)
(3,862)
(10,544)
(11,295)
Cost of products sold
CGS - Sugar
CGS - Anhydrous ethanol
CGS - Hydrous ethanol
CGS - Electric Power
CGS - Sugarcane
Other expenses
Recovery of PIS and COFINS
Total
Sales expenses
Freight, port expenses and commissions
Depreciation, amortization and depletion
Personnel expenses
Other commercial expenses
Total
40
December 31, 2015
20
Commitments
Sales commitment
The subsidiary Vale do Tijuco Açúcar e Álcool S/A. mainly operates in the commodities
market. The sales are substantially made at the price on the transaction date. However, the
subsidiary Vale do Tijuco Açúcar e Álcool S/A. has several agreements in the market of sugar
committing itself to selling certain volumes in future crops. As of December 31, 2015, the sale
commitments of sugar amount to 220,000 tons, entered into for the 2015/2016 crop.
The Company did not have future commitments for sale of ethanol as of December 31, 2015.
Agricultural Partnership Agreements
The subsidiaries Vale do Tijuco Açúcar e Álcool S/A. and Triângulo Mineiro Açúcar e Álcool
S/A. have agriculture partnership contracts for sugarcane crops for the average duration of 5
years and can be extended for another 5 years. These contracts have the purpose of ensuring a
portion of the future production, which is estimated as follows:
•
2015/2016 crop season onward - 46,698 metric tons per crop season.
The payments related to these obligations are calculated on a straight-line basis, according to the
contracts, taking into account the commitment to the share of the partner, which will be valued
by the prices to be set at each crop by the CONSECANA (Council of Sugarcane, Sugar and
Ethanol Producers in the São Paulo State) - SP system.
Operational lease
The subsidiary Vale do Tijuco Açúcar e Álcool S/A. has operating lease contracts for lands,
sugarcane crops for the average duration of five years. The payments related to these obligations
are calculated on straight-line basis, according to the contracts. Payments are monthly made or
as provided in each contract. The expenditures related to these agreements amount to R$ 208
per month up to December 31, 2022.
21
Net financial income (expenses)
Consolidated
12/31/2015
(3 months)
12/31/2014
(3 months)
12/31/2015
(9 months)
12/31/2014
(9 months)
(15,914)
(603)
(18,269)
(215)
(55,119)
(1,024)
(49,891)
(1,091)
(26,324)
(153)
(21,270)
(2,421)
639
(3,585)
(1,729)
(957)
(27,808)
(382)
(50,812)
(7,195)
(1,891)
(4,644)
(2,083)
(2,316)
(66,685)
(24,116)
(142,340)
(61,916)
51,355
10,266
(15,764)
314
184
(2)
4,977
1,682
51,718
10,306
24,238
2,169
1,848
4
5,445
2,858
46,171
6,841
88,431
10,155
(20,514)
(17,275)
(53,909)
(51,761)
Financial expenses:
Interest on loans and financing
IOF
Unrealized losses on derivative financial instruments:
- Loss on fair value adjustment
- Effective loss - settlement of transactions
Net exchange variation (basically on ACC)
Other financial expenses
Financial income:
Gains with derivative financial instruments:
- Gains on fair value adjustment
- Effective gains - settlement of transactions
- Asset foreign exchange fluctuation
Other financial income
Net financial income (loss)
41
December 31, 2015
22
a.
Related parties
Parent company and part of the final parent company
The Company is jointly controlled, pursuant to a shareholders' agreement entered into between
IndoAgri Brazil Participações Ltda. and Ápia SP Participações S.A., as shown in the
shareholding structure table presented in Note 16a.
b.
Remuneration of key management staff
Company’s key management personnel is comprised of the Executive Board elected in the
Annual Shareholders' Meeting. The amounts related to the compensation of key management
personnel in the period as short-term benefits were R$ 2,008 (R$ 2,958 on December 31, 2014),
recorded in the group of general and administrative expenses and include salaries, bonuses,
variable compensations and direct and indirect benefits.
The Company and its subsidiaries do not have other types of compensation, such as postemployment benefits, other long-term benefits or benefits of labor contract rescission.
c.
Principal balances of transactions
Transactions with related parties, except for the purchase of raw material, which is made
according to the market price, are made based on conditions negotiated between the Company
and the related companies, which could be different if they were made with non-related parties.
The balances with related parties are presented as follows:
Consolidated
Non-current assets
Related party credits (Note 4)
Triângulo Mineiro Açúcar e Álcool S/A.
Advances - Cane suppliers (Note 7)
Marco Otavio Galvão
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
-
-
359
41
502
41
2,396
1,896
-
-
2,396
1,896
400
543
(a)
(a)
(b)
Total
Consolidated
Debts with related parties (Note 11)
Parent company
12/31/2015
03/31/2015
12/31/2015
03/31/2015
-
-
2,751
2,856
-
-
2,751
2,856
(c)
Total
42
December 31, 2015
Consolidated
Income (loss)
Purchase of raw material (sugarcane)
Rio Tijuco Agropecuária S/A
Parent company
12/31/2015
(3 months)
12/31/2015
(9 months)
12/31/2015
(3 months)
12/31/2015
(9 months)
782
71
1,963
530
-
-
853
2,493
-
-
(d)
Total
Consolidated
Income (loss)
Purchase of raw material (sugarcane)
JF Citrus Agropecuária
Parent company
12/31/2014
(3 months)
12/31/2014
(9 months)
12/31/2014
(3 months)
12/31/2014
(9 months)
1,519
-
3,999
22
-
-
1,519
4,021
-
-
(d)
Total
(a)
Amount granted to the respective subsidiaries, not subject to interest, and which will be settled by the Company
according to its available cash.
(b)
Amount granted to Marco Otávio Galvão, not subject to interest, and which will be settled upon delivery of sugarcane
during 2016/2017 crop.
(c)
Amount granted by the subsidiary Vale do Tijuco Açúcar e Álcool S/A., not subject to interest, and which will be
settled by the Company according to its available cash.
(d)
Mr. Marco Otávio Galvão and JF Citrus Agropecuária Ltda. have sugarcane properties near Vale do Tijuco Açúcar e
Álcool S/A. and, therefore, operate as regular suppliers of sugarcane. They are classified as related parties because
they are shareholders of one of the Company’s parent companies.
The Company grants collateral to its subsidiaries in contracts of loans and financing, as shown
in Note 11.
The subsidiary Vale do Tijuco Açúcar e Álcool S/A. pledges collaterals for transactions with
suppliers, as described in Note 17.
23
Earnings per share
The basic income per share is calculated by dividing the income (loss) for the period attributed
to the owners of common shares of the Group by the weighted average of common shares
available during the periods, excluding treasury shares, if any.
The basic and diluted income or loss are equal, because there is no financial or equity
instrument that can potentially dilute the number of shares. The tables below shows data of
income and shares used in calculating basic and diluted earnings or loss per share:
43
December 31, 2015
Parent company
Basic and diluted earnings per share:
(Loss) income for the period
Final quantity of shares at the end of the period
(Loss) Earnings per share and diluted
(in reais)
24
12/31/2015
(3 months)
12/31/2014
(3 months)
12/31/2015
(9 months)
12/31/2014
(9 months)
(7,904)
744,857,552
1,490
250,932,826
(56,630)
744,857,552
15,810
250,932,826
(0.01)
0.01
(0.08)
0.06
Operating segments
The Group's management bases its reports on the financial statements on the same basis in
which such information are disclosed, as this financial information is regularly reviewed by the
chief manager of the Group for decision making about resource allocations. Therefore, the
Company has only one operating segment, called “energy”.
25
Insurance coverage
The Group adopts the policy of contracting insurance coverage for assets subject to risks for
amounts considered to be sufficient to cover eventual casualties, considering the nature of its
activity.
As of December 31, 2015, the Group has insurance at amounts considered sufficient by the
Management to cover possible losses, as follows:
Amount
Insured
Insured property
Civil liability
Rural Pledge
Vehicles
Machinery and equipment, sundry
Patrimonial
26
15,000
5,856
100% FIPE table
35,524
200,000
Environmental risks
The facilities of the Group and its industrial and agricultural activities are subject to
environmental regulations. The Group decreases the risks associated with environmental issues,
through operating procedures and controls with investments in pollution control equipment and
systems, besides believing that no provision for losses related to environmental issues is
currently required, based on the effective laws and regulations.
44
December 31, 2015
Board of Directors
Board Members
José Francisco de Fátima Santos - Chairman of the Board
Luiz Gustavo Turchetto Santos
Hansjorg Suelzle
Moleonoto Tjang
Surjadi Tirtarahardia
Mark Julian Wakeford
Executive Board
Carlos Eduardo Turchetto Santos - President
Celso Oliveira - Industrial Director
Sylvio Ortega Filho - CFO
Eduardo Scandiuzzi Lopes - Agricultural Director
Accountant
Anderson César Augusto Alves
CRC/SP nº 1SP206284/O-8
45
Companhia Mineira de Açúcar e
Álcool Participações
Management Report – Harvest 15/16 - 3º Quarterly 3Q16
COMPANHIA MINEIRA DE AÇÚCAR E ÁLCOOL
PARTICIPAÇÕES
HARVEST 15/16
(3º ITR – December 31th of 2015)
Management Report
Uberaba, March 16th 2015.
Dear Shareholders,
We present the Management Report, the Quarterly Information and Independent Auditors' Report
for the third quarterly of harvest 2015/2016, ended on December 31st, 2015 in accordance with CPCs and
IFRS.
Features of Harvest 15/16 – 3Q16
It was crushed 767K tons of sugarcane at 3Q16, 5.2% higher than same period of last crop.
It was produced 54K tons of VHP, 34K m³ of Ethanol and 66K MWH of Energy.
Gross Sales at 3Q16 of the harvest 15-16 was 139.7 MR$, 2.8% lower than 3Q15 that was
143.6 MR$.
ADJUSTED EBITDA of 45.7 MR$ in the 3Q16, with a margin of 34.2%.
2
PARTICIPAÇÕES
HARVEST 15/16
Operatinal & Financial Features
(THOUSAND REAIS)
CMAA - CONSOLIDATED
Gross Sales
Net Sales
COGS
SG&A
Depreciation and Planting Amortizantion
ADJUSTED EBITDA*
EBITDA Margin
Net Income
Net Adjustment Income
3Q15
3Q16
Var.(%)
9M15
9M16
Var.(%)
143.648
136.438
-101.715
-14.442
18.614
49.211
36,1%
1.490
1.490
139.698
133.552
-107.515
-14.758
19.408
45.732
34,2%
-7.904
-7.904
-2,7%
-2,1%
5,7%
2,2%
4,3%
-7,1%
-5,3%
-630,5%
-630,5%
393.470
375.111
-262.216
-41.620
65.323
146.353
39,0%
15.810
15.810
348.104
332.815
-307.460
-43.079
68.013
115.770
34,8%
-56.630
-56.630
-11,5%
-11,3%
17,3%
3,5%
4,1%
-20,9%
-10,8%
-458,2%
458,2%
Note: The form of ADJUSTED EBITDA calculation includes depreciation, biological assets amortization and planting amortization and does not
include the exchange rate variation effect.
Operational Data
CMAA - CONSOLIDATED
Crushing Sugar Cane (Thousand Tons)
Owner
Third Parties
Mechanized Harvesting
TRS (Kg/ton of cane)
Production
Sugar (Thousand Tons)
Anhydrous Ethanol (Thousand m³)
Hydrous Ethanol (Thousand m³)
Electric Energy (Thousand Mwh)
Sales
Electric Energy (Thousand Mwh)
Inventory
3Q15
3T15
3Q16
3T16
729
365
364
100%
144,6
Var.(%)
9M15
Var.(%)
9M15
9M16
767
5,2%
3.511
394
7,9%
1.408
373
2,5%
2.103
100%
0,0%
100%
143,2
-1,4%
131,1
9M16
Var.(%)
Var.(%)
3.703
5,5%
1.832
30,1%
1.872
-11,0%
100%
0,0%
130,1
-0,8%
54
13
20
75
54
14
20
66
0,0%
7,7%
0,0%
-12,0%
224
90
54
269
237
91
58
260
5,8%
1,1%
7,4%
-3,3%
79
22
9
74
71
23
21
64
-10,1%
4,5%
133,3%
-13,5%
179
60
39
263
193
67
52
256
7,8%
11,7%
33,3%
-2,7%
45,5
33,7
15,3
43,8
27,8
5,1
-2,2%
-17,6%
-66,6%
45,5
33,7
15,3
43,8
27,8
5,1
-2,2%
-17,6%
-67%
3
PARTICIPAÇÕES
HARVEST 15/16
Sugar Cane*
TRS (kg/Sugar cane tons)
Sugar*
Ethanol**
3Q15
3Q16
9M15
9M16
126,63
149,78
18,3%
568,07
594,08
140,57
130,38
-7,3%
136,73
131,71
-3,7%
6,87
7,30
6,4%
31,95
30,56
-4,4%
6,23
6,99
12,0%
25,91
27,17
4,9%
2,48
3,01
21,5%
10,87
10,50
-3,4%
3,76
3,98
5,9%
15,04
16,67
10,8%
40,37
39,17
-3,0%
43,16
40,99
-5,0%
59,63
60,83
2,0%
56,84
59,01
3,8%
Anhydrous
Hydrous
Sugar (%)
Ethanol (%)
Var.(%)
Var.(%)
4,6%
Source: FCSTONE/ÚNICA
*million tons
**billion de liters
According last data form ÚNICA, the Mid-South
production of 3Q16 reached 149.78 M tons,
18.3% higher than 2Q15 of the crop 14-15.
Revenues
GROSS SALES COMPOSITION
In Thousand Reais
Internal Market
Hydrous Ethanol
Anhydrous Ethanol
Sugar
Electric Energy
Others
External Market
Sugar
Hydrous Ethanol
Total Gross Sales
Hydrous Ethanol
Anhydrous Ethanol
Sugar
Electric Energy
Others
3Q15
3T15
3Q16
3T16
81.373
12.584
31.180
0
37.609
0
62.275
62.275
0
143.648
12.584
31.180
62.275
37.609
0
93.479
37.368
41.289
0
8.791
6.032
46.219
46.219
0
139.698
37.368
41.289
46.219
8.791
6.032
4
Var.(%)
9M15
9M16
Var.(%)
Var.(%)
9M15
9M16
Var.(%)
14,9%
196,9%
32,4%
0,0%
-76,6%
100,0%
-25,8%
-25,8%
0,0%
-2,7%
196,9%
32,4%
-25,8%
-76,6%
100,0%
238.793
53.984
85.048
0
99.152
609
154.677
154.677
0
393.470
53.984
85.048
154.677
99.152
609
234.445
80.868
103.311
0
43.033
7.233
113.659
113.659
0
348.104
80.868
103.311
113.659
43.033
7.233
-1,8%
49,8%
21,5%
0,0%
-56,6%
1087,5%
-26,5%
-26,5%
0,0%
-11,5%
49,8%
21,5%
-26,5%
-56,6%
1087,5%
PARTICIPAÇÕES
HARVEST 15/16
Ethanol
Volume x Hydrous Price
R$ 1,76
21
R$ 1,38
9
45
40
35
30
25
20
15
10
5
0
3Q15
Volume´000m³
3Q16
Price R$/Liter CMAA
5
2
2
2
2
2
2
1
1
1
1
1
Hydrous: it was sold 21k m³ at
3Q16 with an average price of
R$ 1.76/liter, increase of 133%
in the volume if compared
3Q15.
PARTICIPAÇÕES
HARVEST 15/16
Volume x Anydrous Price
R$ 1,82
23
R$ 1,40
22
45
40
35
30
25
20
15
10
5
0
3Q15
3Q16
Volume '000m³
2
2
2
2
2
2
1
1
1
Anhydrous: At 3Q16 was sold
23k m³, increase of 4.5%
compared to 3Q15 with an
average price of R$ 1.82/liter.
Price R$/liter CMAA
Cost
COGS
In Thousand Reais
Sugar
Ethanol
Electric Energy
Others
Total COGS
TRS Sold (Thousand Tons)
Unit Cost (Sugar&Ethanol COGS/TRS)
3Q15
3T15
59.415
33.825
7.620
0
101.715
130
716
3Q16
3T16
49.987
55.102
2.227
11
107.515
140
749
Var.(%)
Var.(%)
-15,9%
62,9%
-70,8%
100,0%
5,7%
7,8%
4,6%
9M15
9M15
130.392
110.778
20.516
16
262.216
337
715
9M16
9M16
145.277
148.748
13.516
27
307.460
384
766
Var.(%)
Var.(%)
11,4%
34,3%
-34,1%
0%
17,3%
13,9%
7,1%
Cost of goods sold shows at the 3Q16 of the season 15/16 an increase of 5.7% in absolute values if
compared to the same period of the crop 14/15. This variation is due to an increase of 7.8% in sales volume.
When comparing the unit cost of sugar / ethanol on the ATR sold, there is an increase of 4.6%, reflecting the
lower TRS per ton of cane.
6
PARTICIPAÇÕES
HARVEST 15/16
Expenses
Sales Expenses
3Q15
3Q16
Var.(%)
9M15
9M16
Var.(%)
6.671
2.474
354
223
240
40
521
10.522
8.947
1
486
304
243
15
404
10.399
34,1%
-100,0%
37,4%
36,2%
1,4%
100,0%
-22,6%
-1,2%
21.755
5.318
1.031
872
712
40
935
30.662
26.193
2
1.374
916
727
83
1.079
30.374
20,4%
-100,0%
33,3%
5,1%
2,2%
100,0%
15,4%
-0,9%
3Q15
3Q16
1.901
1.600
268
56
37
3.862
1.753
1.417
301
64
7
3.541
In Thousand Reais
Freight of transfers and sales
Port Charges
Comissions and Sales fees
Personnel expenses
Depreciation
Rent
Others Expenses
Total
Administrative Expenses
Var.(%)
9M15
9M16
Var.(%)
In Thousand Reais
Personnel expenses
General expenses and Outsourced Services
Depreciation
Tax, fees and contribuitions
Rent
Total
-7,8%
-11,4%
12,3%
14,3%
-81,1%
-8,3%
6.521
3.799
749
137
90
11.295
5.273
4.116
902
138
114
10.544
-19,1%
8,4%
20,4%
1,1%
27,3%
-6,6%
Sales: In 3Q16 there was a reduction of 1.2% if compared to 3Q15.
Administrative: Reduction of 8.3% between 3Q15 and 3Q16. The variation is due to the reduction in
expenses for the season 15-16.
7
PARTICIPAÇÕES
HARVEST 15/16
Financial
Financial
Results
Results
Net Financial Results
3Q15
3Q16
Var.(%)
9M15
9M16
Var.(%)
6.841
-24.116
-17.275
46.171
-66.685
-20.514
574,9%
176,5%
18,7%
10.155
-61.916
-51.761
88.431
-142.340
-53.909
770,8%
129,9%
4,2%
In Thousand Reais
Financial incomes
Financial Expenses
Total
In the first nine months of season 15-16, had - 53.9 MR$ of net financial results, being: -17.8 MR$ of
short term interest and -37.3 MR$ of long term interest. The exchange variation of the interest was 7.3
MR$, being -1.3 MR$ of settled contracts and +8.6 MR$ of maturing contracts. Other financial income and
expenses are composed of bank charges, commissions, IOF financial operations and issuance of Debentures
(-8.2 MR$).
FINANCIAL RESULTS BREAKDOWN
9M16
In Thousand Reais
-
Interest of Short Term debt
Interest of Long Term debt
Exchange Variation
Income of Investment
-
Others financial income/expenses
Total
EXCHANGE VARIATION - 9M16
Settled Contracts
Fair Value of interest in active contracts
Total
17.788
37.331
7.259
2.168
8.217
-53.909
ACC
SWAP/NDF Outros
Total
6.115
8.090 3.254 1.278
12.310
20.847
8.537
18.424
28.938 3.254
7.259
-
8
PARTICIPAÇÕES
HARVEST 15/16
Operational Working Capital
OPERATION WORKING CAPITAL
31/3/15
31/12/15
Var.(%)
43.337
7.369
19.843
16.125
84.075
59.500
19.392
5.183
-40.738
126.673
21.032
87.989
17.652
77.040
51.219
19.039
6.782
49.633
192,3%
185,4%
343,4%
9,5%
-8,4%
-13,9%
-1,8%
30,9%
221,8%
In Thousand Reais
ASSETS
Receivables
Inventory
Recoverable Taxes
LIABILITIES
Suppliers
Salaries and Social Security Contribuitions
Payables Taxes
WORKING CAPITAL
The position of assets and liabilities on December 31st 2015 demonstrates a positive change in the
asset account for the largest volume in stock, higher recoverable taxes and higher receivables. In liabilities,
the negative variation was reflected in suppliers and positive effect of payables taxes.
Indebtedness
INDEBTEDNESS
31/3/15
31/12/15
Var.(%)
In Thousand Reais
178.996
193.219
147.406
99.874
94.181
-8.916
704.760
141.409
563.351
203.364
2,77
ACC
FINAME
Working Capital
CRA
Debentures
Diferred Expenses
Gross Indebtedness
Cash
Net Indebtedness
Social Capital
Index (Net Indebtedness/Social Capital)
The Net Indebtedness increased due to the lower cash in 31/12/2015.
9
211.773
165.575
94.561
83.301
94.297
-10.445
639.063
49.084
589.979
303.364
1,94
18,3%
-14,3%
-35,8%
-16,6%
0,1%
17,1%
-9,3%
-65,3%
4,7%
49,2%
-30,0%
PARTICIPAÇÕES
HARVEST 15/16
Investments
CMAA - CONSOLIDATED
In Thousand Reais
Sugar Cane Planting
Agricultural Machinary and Building
Industrial Equipments and Building
Administrative equipments/System and Others
Total
3Q15
3T15
6.732
1.293
3.366
120
11.512
3Q16
3T16
6.792
1.761
818
102
9.473
Var.(%)
Var.(%)
0,9%
36,2%
-75,7%
-14,8%
-17,7%
9M15
9M15
22.879
14.807
13.122
1.513
52.320
9M16
9M16
16.847
6.604
7.348
1.293
32.092
Var.(%)
Var.(%)
-26,4%
-55,4%
-44,0%
-14,5%
-38,7%
The reduction in level of investments is reflection the stability in the company growth, having almost
reached the level of full capacity in the last year.
Legal Notice
The statements contained herein relating to the prospects of the business, estimates for operating,
financial and investments results are based on management's expectations and these depend substantially
on changes in market conditions, the performance of the Brazilian economy and international markets and
therefore are subject to change without notice.
Non-financial information, as well as other operating information has not been reviewed by the
independent auditors.
Opinions of Directors on the Quarterly information’s – 3Q16
The Directors declare that reviewed, discussed and agreed with the quarterly Information – 3Q16 and
also with the conclusions expressed in the report of the independent auditors, in accordance with Article 25
of CVM Instruction 480/09.
CVM Instruction 381/03
In accordance with CVM Instruction nº 381, the Company announced that its independent auditors,
KPMG, have not provided during last three months of 2015, ended December 31st 2015, others services than
those related to external audit.
The Company's policy on hiring of others services than external audit ensures that there is no conflict
of interest or loss of independence of auditor.
10
PARTICIPAÇÕES
HARVEST 15/16
About CMAA Group
The CMAA is a public company registered with the CVM and was created to be a hub for three mills
of ethanol, sugar and energy, crushing a total of 12.9 million tons per year. It is located in a region close to
major consumption centers (in Triângulo Mineiro). Currently operation is Usina Vale do Tijuco, in
Uberaba(MG), which was designed with total processing capacity of 4 Million Tons of sugarcane and export
up to 210 MW. This plant started its first season in April 2010 with a crushing of 1.2 million tons, with the
second season in 2011, with a grinding of 1.66 million tons of sugarcane, already producing VHP, anhydrous
/hydrous ethanol and electric energy. For the season 2013/2014 was crushed 3.026 million tons and for
harvest 2014/15 crushed 3.511 million tons of sugarcane. In the harvest 2015-2016 it was crushed 3.703
million ton of sugarcane.
11

ITR 141831-CMAA 31 12 2015 inglês

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