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Investor Presentaiton

120 FINANCIAL CAPITAL 2021 INTEGRATED ANNUAL REPORT EBITDA AND NET INCOME The Company ended 2021 with R$ 683.9 million EBITDA (8.8% of net revenue), a 29.8% decline as compared to 2020. Net income decreased 33.9%, reaching R$ 505 million in 2021. The result was impacted by the increase in commodity prices in US dollars, depreciation of Brazilian real, drop in volumes, and non-recurring effects, as already highlighted. In total non- ADDED VALUE In 2021, the wealth produced by the Company was R$ 2.5 billion. The amount allocated to personnel and payroll totaled R$ 1.1 billion, representing the most significant portion, followed by taxes, fees and contributions in the amount of R$ 550.0 million, interest on equity of R$ 505.0 million and remuneration of third-party capital of R$ 348 million. The distribution is shown in the graph: CAPITALIZATION, DEBT AND CASH The Company closed 2021 with gross debt of R$ 1.8 billion (R$ 1.6 billion in 2020) and cash and cash equivalents of R$ 1.6 billion (R$ 1.2 billion in 2020), resulting in a leverage (net debt-to-EBITDA LTM) of 0.2x (0.4x in 2020). Of note is the Company's 3rd issue of simple debentures, on recurring effects, R$ 19.9 million were recognized in 2021 versus R$ 276.3 million in 2020, both related to the recognition of tax credits. EBITDA Reconciliation (R$ million) Net Income Income tax and social contribution irpj Incentive Financial revenues Financial expenses EBITDA n/a Thus, the Company ended 2021 with a debt-to-asset ratio of 16.6%, 0.3 p.p. higher as compared to the final position in 2020, influenced by the 11.2% increase in total debt, in contrast to the 9.5% asset growth, with the increase in cash and the acquisition of Latinex. It is worth mentioning the decrease in net debt, from Capitalization (in R$ million) R$ 350.7 million in 2020 to R$ 140.4 million in 2021, as the increase in cash and cash equivalents was higher than the increase in indebtedness. Leverage (net debt-to-EBITDA for the last 12 months) was 0.2x (0.4x in 2020), indicating the Company's ability to settle its debts in the short term. In 2021, net cash generated from operating activities amounted to R$ 959.7 million, and the net flow of financing was R$ 16.1 million. This change was mainly influenced by the issuance of debentures, as opposed to the payment of financing in the period, contributing to the result of cash and equivalents recorded: Debt-to-asset ratio (280.2) 2021 2020 505.0 763.8 125.8 64.6 (2.0) (32.8) (335.2) Change -33.9% 300.0 254.2 Depreciation and amortization on cogs 184.5 176.6 -93.9% -16.4% 18.0% 4.5% Depreciation and amortization on 102.4 83.1 expenses 683.9 974.3 8.8% 13.4% 23.2% -29.8% -4.6 p.p. Cash Short-term financial investments Long-term financial investments 2021 1,555.9 16.6 2.1 2020 Change 1,213.0 28.3% 16.4 3.3 (%) 20.4% 1.2% -36.4% 18.1% 16.3% 17.5% 16.6% Total debt (1,767.5) (1,589.1) 11.2% (-) Short-term (116.0) (776.1) -85.1% 4Q20 1Q21 2Q21 3Q21 4Q21 (-) Long-term (1,651.5) (813.0) Financial instruments receivable (payable) 52.5 (=) Net cash (net debt) (140.4) Shareholder's equity Capitalization 5.7 (350.7) 7,032.4 6,645.6 8,799.9 8,234.7 N/a N/a -60.0% 5.8% 6.9% 350.7 385.0 361.5 Financial indicators 0.4 0.5 0.5 140.4 0.1 0.2 EBITDA Margin Distribution of value added 2020 39.4% 2021 43.1% Personnel and payroll 23.4% 27.3% 10.0% Taxes, fees and contributions Interest on equity Remuneration of third-party capital 22.3% 20.5% 14.1% 2021 Net Cash (Debt) / EBITDA (0.2) (last 12 months) Net Cash (Debt) / PL -2.0% -5.3% Debt/ total assets 16.6% 16.3% 2020 Change (0.4) -50.0% -3.3 p.p. 3.3 p.p. March 15, 2021, which were used as guarantee for the issuance of CRAS (Agribusiness Receivables Certificates), in the total amount of R$ 811.6 million. The first and second series debentures are entitled to semi-annual payment of conventional Interest of 3.7992% p.a. and 4.1369% p.a., respectively, based on 252 business days, in addition to adjustment by IPCA (adjustment only together with amortization). Proceeds raised are intended to promote and encourage sustainable agriculture at the Company's suppliers, ensuring the continuous improvement of the food and nutritional safety of the products offered to consumers. On December 31, 2021, the value of the debentures was represented by an amount of R$ 811.7 million, net of the balance to be amortized of transaction costs in the amount of R$ 41.3 million. R$ million 12.3% of Net revenue 1,213.0 Cash and cash equivalents as of Dec/20 959.7 Net Cash generated from operating activities 16.1 -196.6 fixed assets and software Net (Cash) debt (R$ million) and leverage (103.0) 4Q20 1Q21 2Q21 3Q21 4Q21 Net (Cash) Debt Leverage 1.3 -222.1 1,555.9 -69.9 -132.7 -12.9 Payment of Net flow from financing- third-party Profit distribution (IoE) Payment of equity interest Acquisition of equity Investments interest, cash acquired licenses capital net of Acquisition of Cash and cash shares issued by equivalents as the company of Dec/21
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