NOVEMBER World and Brazilian Fertilizer Market. Company Overview

Transcription

1 NOVEMBER 2013 World and Brazilian Fertilizer Market Company Overview

2 GLOBAL CONSUPTION OF FERTILIZERS PER NUTRIENT (mm tons) TOTAL N P2O K2O (e) Estimated growth of 0.6% in 2013 In Brazil, growth stood at 8.1% in 2012, much higher than in the global market Source: IFA, June 2013; (e) estimate; 3

3 COUNTRY PRODUCERS OF AMMONIA, ROCK PHOSPHATE AND POTASSIUM CHLORIDE 2011 Ammonia (Nitrogen) Rock Phosphate Potassium Chloride PRODUCERS SHARE PRODUCERS SHARE PRODUCERS SHARE China 31.0% China 37.9% Canada 29.9% Russia 8.5% Morocco 14.1% Russia 19.3% India 8.2% United States 13.9% Belarus 16.5% United States 6.5% Russia 6.0% Germany 9.3% Trinidad Tobago 3.9% Tunisia 4.5% Israel 8.0% Indonesia 3.6% Jordan 3.6% China 7.4% Canada 2.8% Brazil 3.1% Jordan 3.8% Egypt 2.7% Syria 2.1% Chile 2.7% Ukraine 2.7% Egypt 1.9% United States 1.9% Pakistan 2.2% Israel 1.7% Brazil 1.2% Others 27.9% Others 11.2% Others 0.0% In 2012, Brazil imported 66% of the fertilizers used Source: ANDA 4

4 (mm tons) mm tons GLOBAL MARKETS AND THEIR 2012 CGR Fertilizers Consumer Markets Largest Markets CGR 51,0 Volume 2012 Market Share ,8% 28,6% 15,2% 11,6% 7,1% 27,0 20,5 12,6 3,1% 2,0% 1,8% 1,8% 5,4 3,5 3,2 3,1 50, % 51,0 3.9% 0.5% , , % CGR 6.7% 12,6 3.2 China India USA Brazil Brazil is the 4 th largest market of fertilizers in the world, growing above the global average Source: ANDA 5

5 EVOLUTION OF BRAZILIAN INDUSTRY AND HERINGER (mm tons) Industry CAGR 6.1% Heringer CAGR 16.0% Brazilian Market Heringer , ,9 5, Heringer s Market Share 16.9% in 2012 Source: Anda / Heringer/ Fertilizer delivered to the final consumer (product) CAGR

6 SUSTAINABILITY AND FERTILIZERS IN BRAZIL *PLANTED AREA/HA (CAGR 2%) *AGRI PRODUCTION (CAGR 5%) FERTILIZERS (CAGR 7%) Planted area CAGR (1969 to 2012) of 2%, vs. agricultural production CAGR of 5% Fertilizer consumption CAGR of 7% shows the important gain in agricultural productivity and contribution of this input to environmental preservation *Planted area in hectares of soybean, corn, beans (grain), paddy rice, wheat (grain), herbaceous cotton, oats (grain), barley (grains), triticale (grain), sunflower (grain), rye (grain). Agricultural production of following crops: soybean, corn, beans (grain), paddy rice, wheat (grain), herbaceous (seed), sorghum (grain), oats (grain), triticale (grain), sunflower (grain), rye (grain) Source: Agroconsult 7

7 TOTAL AND ARABLE LAND - BRAZIL ESTIMATED AREA - (MILLION OF HA) %TOTAL AREA %ARABLE AREA Amazon rainforest % Legal reserve % Cities, lakes, rivers & waterlogged areas % Other uses % Reforestation 5 0.6% Sub-Total % Pasture % 50.6% Cultivated area - Annual & permanent crops % 21.2% Area available for agriculture % 28.2% Sub-Total (arable land) % 100.0% Total Brazil % Brazil has 12.0% of fresh water in the world Planted area accounts for only 21.2% of arable land for annual and perennial crops Source: FGV/ National Water Agency 8

8 BRAZILIAN FERTILIZER PRODUCTION CHAIN Basic and Intermediate Fertilizer Producers Mineral Extraction Natural Gas NPK Mixture Producers Natural Gas (N) Phosphate Rock (P) Potassium (K) Urea / Nitrate/ Sulfate MAP / DAP TSP SSP Potassium Chloride Mixers and Distributors (NPK) Petrobras Vale Fert. Copebras Galvani Vale Fert. Vale Fert. Petrobras Proquigel Copebras Vale Fert. Copebras Vale Fert. Yara Vale Fert. Copebras Galvani Heringer Yara/Bunge* Timac Cibrafertil Fospar Vale Fert. Yara/Bunge* Heringer Mosaic Fertipar ADM Others ( compan.) Segmentation of the production and distribution *In May 2013, CADE (the Brazilian Antitrust Authority) approved the acquisition of Bunge s fertilizer operations in Brazil by Yara 9

9 AGRICULTURAL CALENDAR - BRAZIL 35% 40% 65% 60% CROPS JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Planting SOYBEAN Harvest Sugarcane Planting 18-Month System Planting/Coverage SUGARCANE Northeast Harvest Center South Harvest Northeast Harvest Planting/Coverage Planting/Coverage COFFEE Harvest Winter Crop Planting Planting CORN Harvest Winter Crop Harvest COTTON Harvest Planting Production cycle of the five crops with the highest fertilizer consumption in Brazil Historic seasonality 35% in 1H and 65% in 2H Delivery seasonality should be around 40% in the first half and 60% in the second half 10

10 BRAZIL - IMPORTANT AGRIBUSINESS PLAYER % of Global Production 2012/13 % of Global Exports 2012/13 57% 81% 37% 2º 31% 22% 39% 42% 5º 3º 7% 9% 28% 4º 9% 24% Orange Juice Coffee (bag) Soybean (grain) Sugar Cotton Corn Orange Juice Coffee (bag) Soybean (grain) Sugar Cotton Corn Brazil is one of the largest producers/exporters of agricultural products in the world Sources: Agroconsult 10

11 MIXING UNITS AND PRODUCTION CAPACITY - HERINGER Market-share ,9% Rosário do Catete Camaçari 21 mixing units Installed capacity of 6 million metric tons 1 SSP and sulfuric acid production unit Rondonópolis Anápolis Rio Verde Catalão Patos de Minas Uberaba Manhuaçu Bebedouro Iguatama Viana Dourados Ourinhos São João do Três Manhuaçu Corações Paulínia Cubatão Paranaguá Porto Alegre Rio Grande Legend Mixing units SSP Unit 11

12 BUSINESS MODEL Purchase of NPK Mixture in Production Unit Distribution Capacity N P K Urea Nitrate Sulfate MAP /DAP TSP SSP Potassium Chloride N P K Packaging Well scattered production units with distribution capacity Micronutrients 1 ton Large Sales force Mixer Nationwide footprint Improved logistics capacity in the plants enable Heringer to purchase The productive process corresponds raw materials locally and import to the last phase of the production through several ports chain of NPK Mixtures Large distribution network The main ports: Porto de Barra dos All of 21 units produce any type of Coqueiros ( Estate of Sergipe), Aratu fertilizer formulation for agricultural Served customers located in (Bahia), Vitória (Espírito Santo), Santos use 60% of Brazilian municipalities in 2012 (São Paulo), Paranaguá (Paraná), Porto All produce, sell and distribute Alegre (Rio Grande do Sul) and Rio fertilizers Grande (Rio Grande do Sul). 13

13 FERTILIZER DELIVERIES BY CROP Brazilian Market Heringer Soybean 36% Sugarcane 14% Corn 19% Soybean 18% Sugarcane 20% Corn 18% Coffee 6% Reforest. 3% Others 23% Coffee 16% Reforest. 6% Others 21% Heringer offers solutions for many different crops, minimizing the volatility associated with local climates and other specific conditions, such as price cyclicality, pests and diseases Source: ANDA 13

14 HERINGER - SALES BY SEGMENT 2012 Sales by segment Number of Clients Individuals 43% Resale 6% Cooperatives 6% Companies 45% Individuals/Companies = 88% of volume Important share of sales to individuals and companies of the total 15

15 IR CONTACTS THANK YOU Ingrid Gentina Palmeiro Laís Cristina de Sá Bortolozzo Rodrigo Bortolini Rezende INVESTOR RELATIONS Telephone: