COSAN LIMITED Marcelo
Martins
Disclaimer
This presentation contains estimates and forward-looking statements regarding our strategy and opportunities for future growth. Such information is mainly based on our current expectations and estimates or projections of future events and trends, which affect or may affect our business and results of operations. Although we believe that these estimates and forward-looking statements are based upon reasonable
assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. Our estimates and forward-looking statements may be influenced by the following factors, among others: (1) general economic, political, demographic and business conditions in Brazil and particularly in the geographic markets we serve; (2) inflation, depreciation and devaluation of the real; (3)
competitive developments in the ethanol and sugar industries; (4) our ability to implement our capital expenditure plan, including our ability to arrange financing when required and on reasonable terms; (5) our ability to compete and conduct our businesses in the future; (6) changes in customer demand; (7) changes in our businesses; (8) government interventions resulting in changes in the economy, taxes, rates or
regulatory environment; and (9) other factors that may affect our financial condition, liquidity and results of our operations.
The words "believe", "may", "will", "estimate", "continue", "anticipate", "intend", "expect" and similar words are intended to identify estimates and forward-looking statements. Estimates and forward-looking statements speak only as of the date they were made and we undertake no obligation to update or to review any estimate and/or forward- looking statement because of new information, future events or other factors.
Estimates and forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Our future results may differ materially from those expressed in these estimates and forwardlooking statements. In light of the risks and uncertainties described above the estimates and forward-looking statements discussed in this presentation might not occur and our future results and our performance may
differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to the factors mentioned above. Because of these uncertainties you should not make any investment decision based on these estimates and forward-looking statements.
2
Consistent performance of underlying assets
EBITDA growth despite macro volatility
EBITDA growth despite macro volatility
EBITDA¹ under management
(BRL Bln) Considering 100% results of each business
7.6
11.7 | 11.9 | ||
10.2 | 0.2 | 0.2 | |
9.1 | 1.7 | 2.6 | |
1.5 | |||
1.4 |
14.0
0.3
2.2
3.0 Energia
6.3 | ||
4.0 | 4.5 | 1.3 |
0.2 | ||
2.7 | 2.5 | 2.5 |
1.3
2.6
4.0 | 3.0 | |
3.1 | 3.8 | |
2.9 | 2.9 | |
2.5 | 2.8 |
4.7
Combustíveis
0.6 | 2.1 | 2.7 | ||
1.6 | 2.0 | |||
0.6 | 1.0 | |||
0.6 | 0.2 | 0.4 | ||
0.2 | ||||
2009 | 2010 | 2011 | 2012 | 2013 |
2.1
1.5
2014²
1.9 | 2.0 | 2.8 | 3.2 |
2015² | 2016 | 2017 | 2018³ |
3.8
20194
Note : 1 Considering Adjusted EBITDA from the businesses underneath Cosan S.A. Pro Forma, i.e., includes Raízen, and Cosan Logística
Note : 2 2014 and 2015 figures includes 100% of Rumo and ALL results
Note : 3 Includes the positive effect from conclusion of legal disputes at Comgás.
Note : 4 Rízen Combustíveis includes results from Argentina and formation of Raízen Conveniências JV
Consistent performance of underlying assets
Delivering on guidance and continuously raising the bar
EBITDA¹ (BRL Bln)
Energy | CSAN3 | Logistics RLOG3 |
5.9 6.4
4.7 | 5.1 | 5.0 | 5.6 | |||
4.1-4.6 | ||||||
3.9 | 3.2 | 3.8 | ||||
2.8 | ||||||
1.9 | 2.0 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020E | 2015 | 2016 | 2017 | 2018 | 2019 | 2020E |
Note : 1 Considering EBITDA Cosan S.A. Pro Forma, i.e., includes 50% of Raízen, adjusted by nonrecurring effects.
EBITDA adjusted by one-offs.
Optimal capital structure
Net Debt/EBITDA within target range across group
Energy¹ CSAN3
(BRL bln)
NET DEBT
NET DEBT/EBITDA (X) Normalized by Comgás' current account
2.7x
2.1x | 2.0x | 2.1x | 2.0x |
Logistics RLOG3
(BRL bln)
5.1x
4.4x
2.6x 2.2x
1.8x
Cosan Limited¹ CZZ
(BRL bln)
2.5x | 2.6x | 2.3x | |
2.2x | 2.2x | ||
Global credit ratings
Cosan Limited | BB | BB- |
BB BB-
BBB BBB-
11.3 10.1 11.0 12.2 13.2
9.9 | 8.9 | 7.2 | 7.2 | |
6.7 | ||||
19.6 17.8 18.3 20.0
22.9
BB n.a
BB BB-
2015 | 2016 | 2017 | 2018 | 2019 |
2015 | 2016 | 2017 | 2018 | 2019 |
2015 | 2016 | 2017 | 2018 | 2019 |
Note : ¹ Cosan S.A. and Cosan Limited Pro Forma, i.e., includes 50% of Raízen. Leverage calculation considers Net Debt and EBITDA normalized by Comgás
Improving returns (ROIC)
Businesses under management
Energy | Logistics |
Combustíveis | Energia | ||||||||||
20% | 22% | 22% | 20% | ||||||||
16% | |||||||||||
7% | 11% | 11% | 5% | 7% | |||||||
2015 | 2016 | 2017 | 2018 | 2019¹ | 2015 | 2016 | 2017 | 2018 | 2019E | 8% | 9% |
6%
5%
4%
15% | 18% | |||||||
13% | ||||||||
9% | 10% | 9% | 9% | 9% | 10% | |||
7% | ||||||||
2015 | 2016 | 2017 | 2018 | 2019 |
2015 | 2016 | 2017 | 2018 | 2019 | 2015 | 2016 | 2017 | 2018 | 2019 |
Note : ¹ Combined ROIC of Brazil and Argentina operations.
Improving returns (ROIC)
Holding
Cosan S.A.¹ | Logistics | |
12% | 12% | |
11% | ||
11% | ||
9% | 9% | |
8% |
6%
5%
4%
2015 | 2016 | 2017 | 2018 | 2019 | 2015 | 2016 | 2017 | 2018 | 2019 |
Cosan Limited
11%
10%
9%
8% 8%
2015 2016 2017 2018 2019
Note : ¹ Cosan S.A. Pro Forma, i.e., includes 50% of Raízen.
Buying stock to create value
Best way to return cash to shareholders
(BRL mln)
1,200 | ||
2,350 | 500 | |
700 | ||
700 | 1st TO CZZ | |
1,100 | Shell Stake | |
on Comgás | ||
550 | 2nd FO Rumo |
440 | 1st FO Rumo |
2016 | 2017 | 2018 |
3,472
1,810
700
962
2nd TO CZZ
CSAN Buy Back
2019
7.5 bln
TO Comgás
3rd TO CZZ
CZZ stake on CSAN
Total
Note : ¹ Cosan S.A. Pro Forma, i.e., includes 50% of Raízen.
Stock Performance
Market recognition of consistently delivering on promises
Holding Discount¹: from 27% to 16%
166
155
120 | |||||||||||
106 | |||||||||||
27- | mar apr | may | jun | jul | aug | sep | oct | nov | dec | jan | 27- |
feb | feb | ||||||||||
2019 | 2020 | ||||||||||
CSAN3 | RLOG3 | CZZ (BRL) | IBOV |
Note : ¹ Discount based on | stake in CSAN3 + RLOG3, adjusted by | net debt. |
Marcos
Lutz
A 10 years journey in review
2011 | 2015 | 2017 | 2019 |
2009 | 2012 | 2016 | 2018 |
Raízen JV | Rumo & ALL | Tonon | Payly |
merger | acquistion | ||
NovAmerica | Sale of | Sale of Radar | Shell Argentina |
Acquisition | Cosan Alimentos | Acquisition | |
JV Raízen | |||
Convenience | |||
Comgás | |||
Acquisition |
Building Portfolio Backbone
Derisking in volatile environment
Capturing portfolio opportunities
11
TrizzyResilience
PlanningEfficiencyConsistency
FocusPayly
DisciplineSustainability
Oxxo
Shell
Select
Cosan
Unique combination of assets and people
12
A decade of consistent performance
Strategic assertiveness | Robust results and capital discipline |
Investments (BRL bln)
2.7 2.9 2.2 2.9 4.1 5.1 5.2 5.7 6.1 7.1
Adjusted EBITDA (BRL bln) and NET DEBT/EBITDA (x)
2.7x | 2.1x | 2.2x | 2.4x | ||||||
2.0x | 2.0x | ||||||||
1.8x | 1.6x | ||||||||
12.8 | |||||||||
1.2x | 0.9x | 11.9 | |||||||
11.7 | |||||||||
6.3 | 7.6 | 9.1 | 10.2 | ||||||
2.7 | 4.0 | 4.5 | |||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Operational excellence | Return to shareholders |
LTIF¹ Consolidated | Cash Generation = EBITDA CAPEX (BRL bln) |
3.3 |
3.4 | 3.5 | 4.0 | 5.0 | 6.0 | 5.8 | 5.7 | |||||||||||||
0.0 | 1.1 | 2.3 | |||||||||||||||||
0.1 | |||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 13 | |||||||||
Note : ¹ LTIF (Lost Time Injury Frequency ), measured by number of accidents resulting on employee absence divided by total hours of work with risk exposure (in million hours) | |||||||||||||||||||
A decade of consistent performance
Regardless of Macro Environment
BRL 14.0 bln
EBITDA under management
BRL 0.6 bln | 7.5 | ||||||
4.0 | 1.9 | 3.0 | 0.5 | 1.1 | 1.1 | 1.1 | |
GDP Growth (%)
-0.1
-3.5-3.3
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Sustainable capital allocation
Energy and Logistics to increase Brazilian competitiveness
Integrated green energy company
- Renewable portfolio
- Bagasse utilization (E2G, Pellets and Cogen)
- Carbon avoidance / substitution
- Solar and Biogas
Improving performance and efficiency
- More efficient/lower emissions product portfolio (Synthetic and Semi-synthetic)
- Reducing plastic usage on packing
Enabling gas & power integration
- Reliability
- Carbon avoidance
- Transition fuel
- Competitive energy
Integrated, reliable and efficient logistics
- Competitiveness of Brazilian agribusiness
- Security and Safety
- Carbon avoidance
- Traffic reduction
Cosan
Platform
CONSISTENCYGEOGRAPHIC EXPANSION
energia
Well balanced and diversified portfolio
EFFICIENCY | combustíveis | CASH | GROWTH |
GENERATION |
16
Cosan
Platform
Growth Opportunities, inside and around the portfolio
DIVERSIFICATION
STRATEGIC ASSET | ||
LOCATION | ||
UNSERVED AGRIBUSINESS DEMAND | EXECUTION | CAPACITY INCREASE |
COST | ||
REDUCTION |
Green Integrated | Gas & | Global reference on | Brazil |
Energy Company | Power | sales and distribution | on the move |
Renewables | High performance | Brazil infrastructure backbone | |
(Solar/Biogas/E2G/Pellets) | Infrastructure, | products | High return projects |
Trading | Power Generation, | ||
Distribution | Trading, Distribution | ||
C-stores/Proximity |
EFFICIENCY | CASH GENERATION | GEOGRAPHIC EXPANSION | EXECUTION |
CONSISTENCY | CUSTOMER FOCUS | ||
GROWTH |
17
Efficient Portfolio management | 481% |
Building performance track-record | |
Portfolio | |
CZZ¹ |
65%
IBOV
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Note : 1 Portfolio CZZ composed by Total CSAN3 and RLOG3 shares + Shares purchased: (i) Capital increases in RLOG3 in Mar/16 and Sep/17, (ii) Shares Buyback in CSAN3 (May/18) and (iii) CSAN3 shares bought by CZZ (Dec/19)
Value creation grounded on
Human Capital
Efficient | Operational |
Capital | |
Excellence | |
Allocation | |
PEOPLE
Track | Risk |
Record | Management |
Strong | Unique | Experience | Diverse |
Culture | Skills | Thinking | |
19
Luis
Henrique
Improving Macro Environment
Paving the way for investments and opportunities
GDP Private vs Public
Percentage variation - %
Private GDP | Government GDP | GDP | ||
7.5%
4.0%
3.0% | ||
1.3%1.3% | 1.1% | |
1.9% | 0.5% | |
-0.1%
-3.3% |
-3.5% |
Inflation under control
10.7%
5.9% | 6.5% | 5.8% | 5.9% | 6.4% | 6.3% | ||
4.3% | 2.9% | 3.7% | 4.3% | ||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Real interest rates at historical lows
11.7% | 13.4% 14.2% | ||||
10.1% | 9.8% | 10.9% | 10.1% | ||
8.5% | 8.2% | ||||
6.5% | |||||
6.0% |
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Improving customer confidence
111.6 121.7 119.6 118.8 111.2
86.9 | 87.2 | 93.0 | 91.6 | |
64.9 | 73.1 | |||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Reducing unemployment
11.5% 12.7% 12.3% 11.9%
8.1% 6.7% 6.0% 7.4% 7.1% 6.8% 8.5%
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Sources: IBGE, IBRE (FGV), and Tendências Consultoria
Changing Business Environment
- Role of incumbent, reducing participation mid/downstream
- Brazil role as global oil exporter/growing long on gas
- Regulatory environment to promote private investments
- Gas & Power integration/changing rules
- Rising relevance of Brazilian agribusiness
- Energy transition
- Digital transformation
- Global warming
Ready to leverage on opportunities
Energy and Infrastructure improving Brazilian competitiveness
Changing business | Improving |
environment | macro scenario |
People | Innovation | Digital |
23
Principles behind Value Creation
Rising awareness on Environmental, Social and Governance issues is excellent opportunity to measure our good practices.
Operational excellence and sustainability.
We are committed to developing Brazil through integrated, reliable and efficient logistics, while contributing to the diversification of the Brazilian energy matrix.
is our top commitment.
Our culture is based on
safety, meritocracy and diversity.
Our teams combine unique skills; experienced, innovative, and agile people with an entrepreneurial mindset.
Transparency, responsibility and credibility.
alignment and best practices throughout our platform, enabling and supporting the autonomy required for the businesses to be leaders in their markets.
ESG
Sustainbility Report following
GRI standards.
DJSI - Dow Jones Sustainability Index and ISE from B3 questionnaires.
Commitment to operational excellence
Safety, Integrity and Efficiency have always been top priority
LTIF
4.3 | (Lost Time Injury Frequency) | |
Raízen Combustíveis | ||
Raízen Energia |
0.5 | 0.1 | ||||||
0.0 | |||||||
2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2018 |
17.3 | Port and rail operations | |
Port operations |
2.10.1
0.0 | 0.3 | ||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
0.0 | 0.0 |
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Integrated green energy company
Ethanol contribution in Brazil
Integrated, reliable and efficient logistics
Brazil on the move
Gasoline substitution
Raízen produced
2.6 mln m3
of Ethanol (18/19)
Equivalent to
5.2 mln ton
of CO2 emission
Avoiding
2.5 mln cars
Raízen produced
~25 mln liters of 2G ethanol in 2018/19
(additional 35% lower
CO2 emission)
Sugarcane Ethanol
CO2 emission:
~90% lower than
gasoline
Trucks | Avoiding |
2.1 mln ton | |
substitution | of CO2 emission |
Transporting | Equivalent to |
Capacity in Mato Grosso | 830,000 |
24.1 bln RTK | truck round trips |
removed from the streets
~30% lower than corn
ethanol
Improving performance and efficiency
Reducing plastic usage
~3 mIn bottles
(1l and 20l)
Developing cities while
safety and comfort
Distributed
222
mln m3 of NGV
Equivalent to
311
mln l of Gasoline
Avoiding
300
kton CO2
Governance Best Practices
Diversity of backgrounds / complementary competences
Board Members
Rubens Ometto Silveira Mello
Marcos Marinho Lutz
Marcelo Eduardo Martins
Luis Henrique Guimarães
Marcelo de Souza Scarcela Portela Nelson Roseira Gomes Neto Burkhard Otto Cordes
Vasco Augusto Dias
Julio Fontana Neto Pedro Isamu Mizutani José Alexandre Scheinkman Maílson Ferreira da Nóbrega Sameh Fahmy
Dan Ioschpe
Richard Steere Aldrich Junior
Nelson Luiz Costa Silva
Abel Gregorei Halpern
Marcos Sawaya Jank
Silvio Renato Del Boni
Riccardo Arduini
Macro, | ||||||
Finance, controls | Legal / | Polictics and | ||||
and risk managment People | Sustainability Regulatory | Policy | Fuels | Gas&Power | Logistics | Renewables Agribusiness |
Note: 10 Independent members
Consistency and | Capital |
Efficiency | Discipline |
Talent | |
Risk | Culture |
Management | Management |
Attachments
- Original document
- Permalink
Disclaimer
Cosan Limited published this content on 09 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2020 17:02:01 UTC
