Ethacol Presentacion Power Point Del Proyecto

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PRESENTATION ON ETHANOL PRESENTATION ON ETHANOL COLOMBIA S.A. PROJECT COLOMBIA S.A. PROJECT

description

Summary of Grupo Ethanol Colombia. This presentation resume the context of the company

Transcript of Ethacol Presentacion Power Point Del Proyecto

Page 1: Ethacol   Presentacion Power Point Del Proyecto

PRESENTATION ON ETHANOL PRESENTATION ON ETHANOL COLOMBIA S.A. PROJECTCOLOMBIA S.A. PROJECT

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ETHACOL PROJECTETHACOL PROJECTINDEXINDEX

2.2. FundamentalsFundamentals3.3. The ProjectThe Project

4.4. Financial BalanceFinancial Balance

5.5. TimetableTimetable

6.6. Social Balance Social Balance

7.7. Government SupportGovernment Support

8.8. Investment AdvantagesInvestment Advantages

9.9. Stock Exchange ValueStock Exchange Value

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• 1973 Oil Embargo1973 Oil Embargo

• End of the 20th century environmental studies. End of the 20th century environmental studies. Concepts: Concepts: “Life Cycle”“Life Cycle” and and “Energy Efficiency”“Energy Efficiency”

• ““Ethical Use of the Land”Ethical Use of the Land” concept

• The biofuel industry came into being in Colombia The biofuel industry came into being in Colombia via Law 693 of 2001via Law 693 of 2001

• ETHACOL, supported by Energéticos/Wood Group,ETHACOL, supported by Energéticos/Wood Group, builds the Ethanol project in the builds the Ethanol project in the LlanosLlanos OrientalesOrientales (Eastern Plains) area (Eastern Plains) area

1. FUNDAMENTALS1. FUNDAMENTALS

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• The The Llanos OrientalesLlanos Orientales land is suitable for land is suitable for producing ethanol and adapts to the producing ethanol and adapts to the “Ethical “Ethical Use of the Land”Use of the Land” concept.

• Energéticos/Wood Group supports ETHACOL Energéticos/Wood Group supports ETHACOL through integral technology transfer. through integral technology transfer.

• ETHACOL has the main asset: sufficient land for ETHACOL has the main asset: sufficient land for the projectthe project

1. FUNDAMENTALS1. FUNDAMENTALS

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OBJECTIVEOBJECTIVE: :

• PHASE I: PHASE I: Production of 2,400,000 liters of Production of 2,400,000 liters of ethanol per day from eight distilleriesethanol per day from eight distilleries

Area:Area: 120,000 useful hectares120,000 useful hectares

Employment generation:Employment generation: 4,000 direct and 4,000 direct and 20,000 indirect jobs20,000 indirect jobs

Investment:Investment: US$ 1150 millionsUS$ 1150 millions

2. THE PROJECT2. THE PROJECT

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OBJECTIVEOBJECTIVE: :

Present ValuePresent Value, Initial stock market , Initial stock market valuation of the eight distilleries: valuation of the eight distilleries: US$4 billionUS$4 billion

Profit:Profit: US$2.85 billions US$2.85 billions

Date of initiation of sales:Date of initiation of sales: October of 2011 October of 2011

• PHASE II:PHASE II: Complete 34 distilleries Complete 34 distilleries(26 additional ones)(26 additional ones)

• PHASE III:PHASE III: Complete 68 distilleries Complete 68 distilleries(34 additional ones)(34 additional ones)

2. THE PROJECT2. THE PROJECT

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2. THE PROJECT2. THE PROJECT

CURRENT STATUSCURRENT STATUS::

• PHASE I: PHASE I: Undergoing pre-engineering stage, Undergoing pre-engineering stage, under Energéticos S.A. (a Wood Group company).under Energéticos S.A. (a Wood Group company).

• The project currently hasThe project currently has::

Letter of Intent from GEB Energy Group to Letter of Intent from GEB Energy Group to provide financing for the project. provide financing for the project.

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2. THE PROJECT2. THE PROJECT

CURRENT STATUSCURRENT STATUS::

• The project currently hasThe project currently has::

Acquisition of land through distillery´s shares Acquisition of land through distillery´s shares with Irrevocable Rental Contract for 60 years.with Irrevocable Rental Contract for 60 years.

Government Support to provide the Government Support to provide the infrastructure required for a project of this infrastructure required for a project of this magnitude in the region.magnitude in the region.

Phase II & III are self financing. Phase II & III are self financing.

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3. BALANCE FINANCIAL3. BALANCE FINANCIAL

projected income statement

Total 10 years Annual average

Sales Ethanol $ 4.752.000.000 $ 475.200.000

OPERACIONAL INCOME (OI) $ 4.752.000.000 $ 475.200.000

Cost of production $ 1.595.810.169 $ 159.581.017

Administrative expenses $ 152.800.000 $ 15.280.000TOTAL OPERATIONAL COST $ 1.748.610.169 $ 174.861.017

OPERATIONAL UTILITY (OU) $ 3.003.389.831 $ 300.338.983

Financial cost $ 302.868.719 $ 30.286.872

TOTAL FINANCIAL COST $ 302.868.719 $ 30.286.872

Amortization $ 139.746.798 $ 13.974.680

Depreciation $ 444.159.487 $ 44.415.949Extraordinary cost $ 19.008.000 $ 1.900.800

UTILITY BEFORE TAXES $ 2.097.606.827 $ 209.760.683

Tax of revenue $ 269.961.999 $ 26.996.200

NET UTILITY $ 1.827.644.828 $ 182.764.483

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3. FINANCIAL BALANCE 3. FINANCIAL BALANCE

economic evaluation - summaryFINANCIAL RATIOS Average ten yearsRetun on equity (ROE) 168,4%

Net profit margin (NPM) 38,5%

Retur on assets (ROA) 1,74

Average Stockholders Equity (ASE) 2,52

Margin Ratios

Operational cost / income 33,6%

Operational margin 63,2%

Amortization + Depretiation / income 12,3%

Financial cost / income 6,4%

Taxes provition / utility before taxes 12,9%

EBIT $ 2.400.475.546

EBITDA $ 3.003.389.831

EBIT / TOTAL INCOME 50,5%

EBITDA / TOTAL INCOME 63,2%

Cash flow

Generate Operational Net (GON) $ 2.963.789.831

Financial payments (FP) $ 1.581.056.279

Interests $ 302.868.719

Dividends $ 1.278.187.560

Current portion long-term debt (CPLD) $ 883.484.014

GON - PF $ 1.382.733.552

PF / GON 53,35%

(GON - PF ) / CPLD 156,51%

GON - PF - CPLD ACUMULATED $ 2.122.821.206

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3. FINANCIAL BALANCE 3. FINANCIAL BALANCE

For the Net present value we have used the rate of 7,5 %TIR CALCULATED ON EBITDA

EVALUATIONVPN $ 3.015.449.044

TIR PROJECT 26,63%

TIR - CAPITAL 183,62%

TIR - DIVIDENDS 52,83%

TIR - NET UTILITIES 93,99%

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3. FINANCIAL BALANCE3. FINANCIAL BALANCE

• Total tax savings: US$ 468M in ten yearsTotal tax savings: US$ 468M in ten years

US$ 422M from preferential rate at 15%US$ 422M from preferential rate at 15%US$ 44.7M from productive actual fixed US$ 44.7M from productive actual fixed

assets investmentassets investmentThe latter reduces the tax rate from 15% to The latter reduces the tax rate from 15% to

12.87%12.87%

TOTAL TAX SAVINGS: US$468M in ten years. TOTAL TAX SAVINGS: US$468M in ten years. US$422M from preferential rate at 15%.US$422M from preferential rate at 15%.US$44.7M from productive actual fixed assets US$44.7M from productive actual fixed assets investment. The latter reduces the tax rate from investment. The latter reduces the tax rate from 15% to 12.87%. 15% to 12.87%.

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4. PHASE I TIMETABLE4. PHASE I TIMETABLE

SART END j a s o n d e f m a m j j a s o n d e f m a m j j a s o n d e f m a m j j a s o n d e f m

SIGNING CONTRACTS Jul-07 Dic-07 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

CONSTITUTION SOCIETY Jul-07 Dic-07 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

AGREEMENT OF CONFIDENTIALITY Jul-07 Dic-07 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

STUDY OF PRE-FEASIBILITY Oct-07 Dic-07 0 0 0 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

EVALUATION GRANHERNE Nov-07 Dic-07 0 0 0 0 1 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

ORGANIZATION PRE-ENGENNERING Ene-08 Nov-08 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

SELECTION SUITABLE LANDS Nov-08 May-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

STUDY OF LANDS Nov-08 May-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

SELECTION VARIETY SEEDS Nov-08 May-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

ENVIRONMENTAL STUDY Nov-08 May-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

TECNOLOGY OF PRODUCTION ETHANOL Nov-08 May-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

LICENSES AND LEGAL REQUIREMENTS Nov-08 May-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 ## ## ## ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

ANALYSIS STUDY OF ENGINEERING May-09 Ago-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

APPROVAL INVESTMENT May-09 Ago-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##EXECUTION INVESTMENT May-09 Ago-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

FINANCIAL ENTITIES May-09 Ago-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##GOVERNMENTAL ENTITIES May-09 Ago-09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 ## ## ## ## ## ## ## ## ## # ## ## ## ## ## ## ## ## ##

DEFINITIVE CHRONOGRAMS Ago-09 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

ENGINEERING AGROINDUSTRIAL Ago-09 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

ROADS Ago-09 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

ADEQUACY OF LANDS Ago-09 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

SOWING Ago-09 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

DEVELOPMENT OF THE PLANTATION Ago-09 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

ACQUISITIONS AND IMPORTS Ene-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

WORKS OF INFRASTRUCTURE Ene-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

ASSEMBLY MACHINERY Ene-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

AUXILIARY EQUIPMENTS Ene-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

SYNCHRONIZATION EQUIPMENTS Ene-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 ## ##

TEST Dic-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 ## ##

TRAINING Dic-10 Ene-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 ## ##

DELIVERY PLANTS IN FUNCTIONING Ene-11 Feb-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 ##

START UP Feb-11 Mar-11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

PRE-FEASIBILITY

START UP

PRE-ENGENNERING

INDUSTRIAL PHASE

20112009 201020082007

AGRICULTURAL PHASE

ESTRATEGY

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EMPLOYMENT GENERATIONEMPLOYMENT GENERATION: :

• PHASE I: PHASE I: Approximately 4,000 direct and 20,000 Approximately 4,000 direct and 20,000 indirect jobsindirect jobs

• PHASE II: PHASE II: Approximately 17,000 direct and Approximately 17,000 direct and 85,000 indirect jobs85,000 indirect jobs

• PHASE III: PHASE III: ApproximatelyApproximately 34,000 direct and34,000 direct and 170,000 indirect jobs170,000 indirect jobs

1.1. SOCIAL BALANCESOCIAL BALANCE

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PRODUCTIONPRODUCTION: :

• PHASE I:PHASE I: 2,400,000 liters per day, from eight 2,400,000 liters per day, from eight distilleries, over 120,000 useful hectares.distilleries, over 120,000 useful hectares.

• PHASE II:PHASE II: 10 million of liters per day, from 30 10 million of liters per day, from 30

distilleries, over 450,000 useful hectares.distilleries, over 450,000 useful hectares.

• PHFASE III: PHFASE III: 20 million liters per day, from 67 20 million liters per day, from 67 distilleries, over one million useful hectares.distilleries, over one million useful hectares.

1.1. SOCIAL BALANCESOCIAL BALANCE

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URBAN DEVELOPMENTURBAN DEVELOPMENT::

• PHASE I: PHASE I: Promotes the creation of two Promotes the creation of two municipalities with a population in excess of municipalities with a population in excess of 10,000 inhabitants10,000 inhabitants

• PHASE II: PHASE II: Promotes the creation of seven Promotes the creation of seven municipalities with a population in excess of municipalities with a population in excess of 10,000 inhabitants10,000 inhabitants

• PHASE III: PHASE III: Promotes the creation of 15 Promotes the creation of 15 municipalities with a population in excess of municipalities with a population in excess of 10,000 inhabitants10,000 inhabitants

1.1.SOCIAL BALANCE SOCIAL BALANCE

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TAXESTAXES: (First ten years): (First ten years)

• PHASE I: PHASE I: Approximately US$ 1.3 billion, including Approximately US$ 1.3 billion, including direct and indirect taxes.direct and indirect taxes.

• PHASE II: PHASE II: ApproximatelyApproximately US$ 5 billion, including US$ 5 billion, including direct and indirect taxes.direct and indirect taxes.

• PHASE III: PHASE III: ApproximatelyApproximately US$ 11 billion, including US$ 11 billion, including direct and indirect taxes.direct and indirect taxes.

1.1.SOCIAL BALANCE SOCIAL BALANCE

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1.1. GOVERNMENT SUPPORTGOVERNMENT SUPPORT

• Security.Security.• Land communication roads towards the site.Land communication roads towards the site.• Stable fiscal framework.Stable fiscal framework.• Urbanization development.Urbanization development.• E-duct.E-duct.• Continuous availability of a Special Permanent Continuous availability of a Special Permanent

Free Zone.Free Zone.

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1.1. GOVERNMENT SUPPORTGOVERNMENT SUPPORT

Ampliación de esta noticia se encuentra en la página de Internet de la Presidencia de la República de Colombia:

http://web.presidencia.gov.co/sp/2008/enero10/04102008.html

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• Financing assuredFinancing assured• High profitabilityHigh profitability (a) Production sold(a) Production sold (b) E-duct(b) E-duct (c) Special Free Zone(c) Special Free Zone (d) Tax exemption(d) Tax exemption• State-of-the-art engineeringState-of-the-art engineering • Total technology transferTotal technology transfer• Institutional supportInstitutional support

7. INVESTMENT ADVANTAGES7. INVESTMENT ADVANTAGES

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VALUE EVOLUTION OF ONE PERCENT (1%):VALUE EVOLUTION OF ONE PERCENT (1%):

Pre-PHASE I (Distilleries Construction): US$ 15 M.Pre-PHASE I (Distilleries Construction): US$ 15 M.

Right after Ethacol starts selling the product on octubre Right after Ethacol starts selling the product on octubre 2011:2011:

• PHASE I: US$40 M (from oct./2011 to 2015) PHASE I: US$40 M (from oct./2011 to 2015) • FASE II: US$150 MFASE II: US$150 M (from 2015 to 2020)(from 2015 to 2020)• FASE III: US$335 M (from 2020 onward)FASE III: US$335 M (from 2020 onward)

8. STOCK EXCHANGE VALUE8. STOCK EXCHANGE VALUE

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THANK YOU!THANK YOU!