Credits

Responsible for Sustainability | Mônica Alcântara

Responsible for the publication | Guilherme Bourroul

GRI Consultancy and Editorial Coordination | usina82

Graphic design and web development | GIZ Propaganda

Photography | Eduardo Moody e acervo Odebrecht Agroindustrial

Business Performance

Message from the Business Leader Ethics, Transparency and Integrity

G4-DMA

The increase in productivity and the shareholder’s confidence in the Company’s ability to generate long-term value positively marked Odebrecht Agroindustrial’s performance in the 2016/2017 harvest. With 28.3 million tons of ground cane, 3.3% less than in the previous harvest, we achieved significant increases in the productivity of liters of ethanol produced and of electricity exported by volume processed. We also achieved significant cost reductions in harvesting and maintenance of agricultural operation vehicles.

In addition to these gains, we concluded the restructuring of the Company’s debt in the last crop year, which extends the focus on long-term investments and increased competitiveness. With the shareholders’ financial contribution of R$ 4.6 billion, the Company’s leverage level dropped to 4.7 (a reduction of 54.6%). At the close of the 2016/2017 harvest, our net debt was R$ 8.6 billion, with 97.8% for long-term maturity (as of 2021). G4-9

In the first half of 2016, the Company received R$ 4.6 billion in financial resources. Of this amount, R$ 3.0 billion was used in the last crop year to reduce short-term debt and R$ 1.6 billion was allocated to the Odebrecht Agroindustrial cash register to maintain investments in agricultural and industrial operations. In addition, the energy generation assets previously segregated for Odebrecht Renewable Energy were reintegrated and will guarantee the generation of value through the agreements signed for the sale of electricity.
The restructuring agreement was negotiated with domestic and foreign creditors. Its conclusion demonstrates the shareholder’s confidence in the Company’s ability to generate value in the long-term by continuously increasing productivity and operating efficiency.

In comparison with the previous harvest, our net revenue grew by 20.4%, influenced by the higher volume of products sold and the favorable market price conditions. The adjusted Ebitda, which shows the generation of funds from operating activities, increased by 33.3% on the same basis of comparison. G4-9

1. Profit before interest, taxes, depreciation and amortization, without biological assets.
*Considers 12 months of electric power cogeneration operation
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