KGN Presentation (Institucional)
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This document provides an overview and investment opportunities in Brazil and the state of Mato Grosso. It discusses Brazil's large economy and agricultural sector, with Mato Grosso being a top global producer of commodities like soybeans and cotton. The state has significant available land and a favorable climate for double cropping. Production costs are largely variable and linked to the US dollar, providing natural hedges. The document outlines expertise in structuring deals and raising capital to develop agricultural opportunities.
KGN Presentation (Institucional)
- 1. 1 Outlook – Investment Opportunities Made by Leonardo Slhessarenko and Gabriel Prado de Barros
- 2. Executive Summary 2 Overview of Brazil’s Economy Overview of Mato Grosso’s Economy Expertise Business Opportunities Financial Transactions Legal System
- 3. 3 Overview of Brazil’s Economy
- 4. 4 Overview of Brazil’s Economy ? Seventh largest economy in the world ? Brazil has an export-oriented economy ? Extensive natural resources, agricultural diversity and manufacturing production ? Issues: Bureaucracy, corruption and weak infrastructure ? Opportunities: Average US Dollar to Brazilian Reais is R$3.8 to $1 (10/15/2015) Source: World Bank and economia.uol.com.br/cotacoes/cambio/dolar-comercial-estados-unidos/?historico
- 5. 5 Average US dollar to Brazilian Reais USD/BRL 3.8 - 10/15/2015 Source: World Bank and economia.uol.com.br/cotacoes/cambio/dolar-comercial-estados-unidos/?historico ? In 2015 the biggest appreciation of the dollar in the history of Brazilian Reais was recorded
- 6. 6 Commodities global ranking Source: USDA, FAO, IBGE. World production: USDA harvest 12/13 World production of Grains & Oilseed Brazil in the world ranking 1st 2nd 3rd 4th 1st 19,6% 2nd 16,4% 3rd 10,1% 4th 6,6% 5th ? Coffee ? Orange juice ? Sugar Cane ? Soybeans ? Beef ? Poultry ? Corn ? Milk ? Grape ? Pork ? Cotton
- 7. 8 Increase of agricultural area Source: FIESP/ICONE IMEA ? Increase of 23 millions acres for the next years ? Brazil still has room to grow Acres Millions 128 151 Millions Acres
- 8. 9 Projection by 2022 Source: FIESP/ICONE IMEA BillionsT MillionsT Agriculture Production Livestock Production 14%44% Projections: Cotton, rice, barley, beans, wheat, soybeans, corn, sugarcane. ? Brazil's favorable climate allows for two crop per year ? Brazil’s arable land has more growth potential than any other country
- 9. 1010 Costs linked to production 75% of Costs Are Linked to US$ Lower % of Fixed Costs Fixed 16% Variable 84% US$ 75% Reais 25% Key Highlights ? Fertilizers are acquired through bank financing; equivalent amount of soybean is immediately pre-sold to lock-in operating margins ? Leasing contracts are governed by a number of soybeans bags per hectare, aligning costs to production revenue ? Supply contracts for chemicals are guaranteed by cotton sales, creating a natural hedge for one of the largest production costs
- 10. 11 Overview of Mato Grosso’s Economy
- 11. 12 Brazil’s commodities leader Source: CONAB, IBGE e Imea ? Mato Grosso accounts for 9% of the world’s total soybean production ? Mato Grosso accounts for 3.9% of the world’s cotton production (9th largest worldwide) ? The State of Mato Grosso produced over 52 million tons of total commodities in 2014/15 ? The State of Mato Grosso is the largest overall exporter in Brazil’s Midwest and one of the largest in Brazil 1st
- 12. 13 Mato Grosso Agribusiness GDP compared to other studies developed for other States
- 13. 14Source: Imea Mato Grosso Share in Revenue
- 14. 15 Mato Grosso Development of agricultural production Area (millions Ha) Production (millions Tons) Source: Imea
- 15. 16 Mato Grosso Total agro production for the next years (tons) Source: Imea 2012
- 16. 17 Conservation Unities – 6% Preservation areas by producers - 41% Agricultural – 9% Pasture – 27% Others uses – 2% Cities of Mato Grosso Natives Lands – 15% Other States Land Uses & Occupation Mato Grosso Land uses & occupation Source: Imea 2014
- 17. 18 Expertise
- 18. The Dealmaker 19 1. Find an Opportunity “Client” 2. Analyze and Evaluate Offering Guarantees for both sides 1. Find Capital 2. Capital and ROI Strategies 3. Retain Client or Exit Strategy 3. Create strategy to Raising Capital OPPORTUNITY INVESTMENT
Editor's Notes
- #6: Backup slide
- #8: Backup slide
- #15: This chart tells us the share in revenue. As you can see agriculture accounts for 74% of revenue. 50% of this is soybeans, 11% corn, 9% cotton 3% sugarcane and 1% rice. On the other hand, 26% of revenue is livestock. 20% is cattle, 4% poultry 1% pork and finally 1% is Milk.
- #16: Here in this slide, we see the development in land and production over the years. In orange we can see that Mato Grosso grew from 4 to 13 million hectares or around 10 to 32 million acres. Likewise, the production in green. We came from 13 to 52 million tons this year. In 15 years Mato Grosso grew 400% in production.
- #17: The good news is that Mato Grosso still growing. Only grains is projected to reach 67 millions tons by 2022. And almost 72 million tons by the same date.
- #18: Mato Grosso uses only 9% of the land in agriculture. 27% is pasture for cattle. We believe that pastures land will be converted into agriculture. 41% of the lands are preserve by producers (untouch). More than 60% of Mato Grosso areas are in somehow preserve, in parks like conservation units, native lands (indigenous) and as we said by producers. Actually, Mato Grosso decrease deforestation by 92% in the past 10% according our Governor Pedro Taques.
- #19: Here we will talk a little bit about us. Who we are and what we are bring to the table.