Raizen: Out-of-court restructuring plan disclosed; capital injection, debt conversion, spin-off

研报英文原文证据摘录

Raizen: Out-of-court restructuring plan disclosed; capital injection, debt conversion, spin-off

Exhibit 1: The restructuring plan comprises R$65bn of debt Exhibit 2: Raizen Combustiveis to have ND/EBITDA of 4.8x post spin-off

Raizen’s debt breakdown (R$bn) given its stronger cash flow generation potential

Estimated leverage breakdown per business unit post transaction

3.1 2.0 1.7 1.5 9.9 4.3 40 6.0 6.6

7.3

11.9 5.0 30 75.3 27.2 53.0 57.3 60.3 62.3 63.9 65.4 20 4.0 46.4 39.0

27.2 3.0

2.0

0 1.0 Bonds CRAs credits loans credit scope Total

of -10 0.0 Term Derivatives Guarantees prepayment Debentures Rural Export out Raizen Combustiveis Raizen Energia

Cash (R$bn) Gross debt (R$bn) Export Debt

Net Debt/EBITDA (x) - RHS

Source: Raizen

Source: Raizen BofA GLOBAL RESEARCH

BofA GLOBAL RESEARCH

Exhibit 3: Our estimates are below Raizen’s estimates for Sugar, Exhibit 4: Our estimates are below Raizen’s for Fuel Distribution in

Ethanol & Energy, although we are more optimistic in the short term Brazil in the next seven years

Raizen vs. BofA Global Research estimates for Sugar, Ethanol, and Energy business Raizen vs. BofA Global Research estimates for Fuel Distribution business

10,000 12,000

10,000

8,000

6,000

4,000

FY27E FY28E FY29E FY30E FY31E FY32E FY33E 4,000

Sugar, Ethanol and Energy - BofA FY27E FY28E FY29E FY30E FY31E FY32E FY33E

Sugar, Ethanol and Energy - Raizen Fuel Distribution BZ - BofA Fuel Distribution BZ - Raizen

Source: Raizen, BofA Global Research estimates Source: Raizen, BofA Global Research estimates

BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Exhibit 5: Creditors to own 82% of shares assuming 45% debt

conversion at R$0.25/share

Raizen’s shareholder structure post out-of-court debt restructuring

Current free float Current

1% controlling group

17%

Debt

holders

82%