2Q08 Results
Conference Call
2007/08 Harvest
November 2007
November,
Forward-Looking Statements
This p
presentation contains certain statements that are neither reported
p
financial results or
other historical information. They are forward-looking statements.
Because these forward
forward-looking
looking statements are subject to risks and uncertainties,
uncertainties actual future
results may differ materially from those expressed in or implied by the statements. Many of
these risks and uncertainties relate to factors that are beyond São Martinho’s ability to control
or estimate precisely,
precisely such as future market conditions,
conditions currency fluctuations,
fluctuations the behavior of
other market participants, the actions of governmental regulators, the Company's ability to
continue to obtain sufficient financing to meet its liquidity needs; and changes in the
political, social and regulatory framework in which the Company operates or in economic or
technological trends or conditions, inflation and consumer confidence, on a global, regional or
national basis.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak
p
onlyy as of the date of this document. São Martinho does not
undertake any obligation to publicly release any revisions to these forward looking statements
to reflect events or circumstances after the date of this presentation.
7.00
1/11/…
ct/07
Oc
Sep/07
g/07
Aug
Jul/07
Jun
n/07
ay/07
Ma
Apr/07
Ma
ar/07
Feb
b/07
n/07
Jan
Dec/06
Nov/06
ct/06
Oc
Sep/06
g/06
Aug
Jul/06
Jun
n/06
ay/06
Ma
Apr/06
Ma
ar/06
Feb
b/06
n/06
Jan
Dec/05
Nov/05
ct/05
Oc
Sep/05
Aug
g/05
09-N
Nov-07
11-O
Oct-07
14-S
Sep-07
Aug-07
17-A
20-Jul-07
22-Jun-07
25-M
May-07
27-A
Apr-07
30-M
Mar-07
02-M
Mar-07
Feb-07
02-F
05-Jan-07
08-D
Dec-06
10-N
Nov-06
13-O
Oct-06
15-S
Sep-06
Aug-06
18-A
21-Jul-06
23-Jun-06
26-M
May-06
28-A
Apr-06
31-M
Mar-06
03-M
Mar-06
Feb-06
03-F
06-Jan-06
09-D
Dec-05
11-N
Nov-05
14-O
Oct-05
16-S
Sep-05
Aug-05
19-A
22-Jul-05
24-Jun-05
27-M
May-05
29-A
Apr-05
01-A
Apr-05
04-M
Mar-05
Feb-05
04-F
07-Jan-05
Hydrous
Anhydrous
Sugar Price Evolution
ESALQ R$ / L
15.27
17.00
11.41
13.00
9.00
9.52
1Q08
2Q08
4Q06
1Q07
2Q07
3Q0
4Q07
8.86
3Q06
11.70
10.00
10.37
10.44
11.00
17.08
19.00
1.30
1.20
1.10
15.00
13.93
1.00
0.90
0 80
0.80
0.70
0.60
0.50
US$ Cents/po
ounds - weightt
Industry Overview
Average prices for anhydrous and hydrous ethanol in the domestic and international
markets registered sharp declines this quarter
Sugar prices still low but with slight improvement
Dollar depreciation affected main players
Anhydrous and Hydrous Ethanol Quotation
NY11
Financial Results
Sales Perfomance
Selling Expense
6.3%
32.9%
24.8%
2.5%
18.8 184
172
46 61
Sugar
Hydrous
Ethanol
Eth
l
68 66
Anhydrous
Ethanol
Eth
l
12.2 2Q07
2Q08
2Q07
2Q08
Financial Results
EBITDA and EBITDA Margin Evolution
30
18%
15.9%
25
16%
12.7%
14%
20
12%
10%
15
EBITDA
8%
10
EBITDA Margin
6%
4%
5
2%
0
0%
1Q08
* Value in R$ Million
2Q08
A
Average
Eth
Ethanoll Price
P i Evolution
E l ti
A
Average
S
Sugar P
Price
i Evolution
E l ti
NY11
11.00
R$ 0.87
R$ 0.66
$
R$ 0.73
1Q08
R$ 0.58
10.50
10.00
R$ 9.67
R$ 9.19
9.50
9.00
8.50
8.00
2Q08
1Q08
7.50
7.00
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Seep‐07
Hydrous
A ug‐07
Ju
ul‐07
Ju
un‐07
M
May‐07
Ap
pr‐07
M
Mar‐07
Anhydrous
2Q08
US$
$ Cents / Pound - Weight
1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
Production
According to ESALQ
ESALQ, prices have already rebounded somewhat in the past 2
weeks.Average anhydrous and hydrous ethanol prices have already increased around 16%
and 22%, respectively
Stronger fuel demand and lower ending stocks are expected to help support higher ethanol
prices in the inter-harvest period, confirming our expectations
Ethanol Production
(TRS Equivalent )
500, 000
500,000
+17%
400,000
,
Hydrouns Ethanol
300,000
,
Anhydrous Ethanol
200,000
,
Total
100,000
,
0
Sales 1H08
Inventories 2H08
Boa Vista Mill Construction
Investiments - Boa Vista Mill
Expansion of crusinhg capacity: 3.4 million
tonnes in the 2010/11 harvest
Future disbursements to the Boa Vista Mill will
250
200
total R$ 230 million in current harvest, R$ 120
150
million in 2008/09 and R$ 100 million in 2009/10
100
São Martinho Group will reach a total crusing
capacity of 20 million tonnes until the 2012/13
harvest
50
0
2006
2007
* Values in R$ million
2008
2009
2010
Investment Relations
João do Val
Finance Director and RI
Felipe Vicchiato
Investment Relations
Phone: +55 11 2105-4100
2105 4100
E-mail: [email protected]
Website: www.saomartinho.ind.br/ri