Sonae Indústria S.G.P.S — Sonae Indústria — FY2014 Earnings Presentation
19 slides from Sonae Indústria S.G.P.S's earnings presentation, Feb 27, 2015
Slide 1: 2014 Results
SONAE INDÚSTRIA 2014 Results Investors and Analysts Conference Call 27 February 2015 1
Slide 2: Agenda
SONAE INDÚSTRIA Agenda 1. Highlights of 2014 results 2. Strategy execution 2
Slide 3: Highlights of 2014 results
SONAE INDÚSTRIA Highlights of 2014 results 3
Slide 4: LTM Recurrent EBITDA
SONAE INDÚSTRIA Highlights of 2014 results LTM Recurrent EBITDA Million € +9M€ • LTM Recurrent 100 96 EBITDA of 95 90 87 88 93 96M€ • 9M€ up on 85 87 84 80 83 80 75 78 70 74 last year 65 60 FY13 1Q14 1H14 9M14 FY14 LTM Recurrent EBITDA LTM Recurrent EBITDA (continued operations) 4
Slide 5: Recurrent EBITDA margin
SONAE INDÚSTRIA Highlights of 2014 results Recurrent EBITDA margin % Turnover • Recurrent 10.0% 9.0% 9.4% EBITDA margin 8.0% 7.0% 7.9% 7.5% 8.3% of 9.4% • Best since 6.0% 5.7% 5.5% 5.0% 4.0% 3.6% 3.0% 2.0% 2007 1.0% 0.0% 2008 2009 2010 2011 2012 2013 R 2014 R 2013 R & 2014 R: Considering France oper
Slide 6: LTM Recurrent EBITDA by region
SONAE INDÚSTRIA Highlights of 2014 results LTM Recurrent EBITDA Million € • Driven by 45 40 improved 35 results in 30 25 Northern 20 Europe and 15 10 North America FY13 1Q14 1H14 9M14 FY14 Southern Europe Northern Europe Rest of the World Southern Europe: Values for “continued operations”. 6
Slide 7: Average Capacity Utilization Index
SONAE INDÚSTRIA Highlights of 2014 results Average Capacity Utilization Index % • With better 85% 85% 79% 83% average 80% 80% 78% 75% 75% 71% 77% 81% 74% 75% 74% capacity 75% 70% 70% 70% 71% 71% 73% utilization 65% 65% index 60% 60% 55% 55% 4Q13 4Q13 1Q14 1Q14 2Q14 2Q14 3Q14 3Q14 4Q14 4Q14 FY13 FY13
Slide 8: Fixed Costs in % of turnover
SONAE INDÚSTRIA Highlights of 2014 results Fixed Costs in % of turnover % • And reduced 23,0% 22,0% fixed costs 21,0% 20,0% 20% impacted by 19,0% 18,0% 19% restructuring 17,0% 16,0% and on-going 15,0% 4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14 streamline of All operations Continued operations support costs
Slide 9: Net Debt and Leverage
SONAE INDÚSTRIA Highlights of 2014 results Net Debt and Leverage Million € -111M€ • Net Debt 750 700 675 701 696 689 9.0 x 8.5 x reduction, 650 600 8.4 x 7.9 x 564 8.0 x with lower 7.8 x 7.5 x 564 550 500 7.4 x 7.0 x average cost 450 400 6.5 x 6.0 x of debt 5.9x 5.9 x 5.5 x 350 300 5.0 x FY13 1Q14 1
Slide 10: Share Capital increase
SONAE INDÚSTRIA Highlights of 2014 results Share Capital increase • Gross proceeds of c. 112 M€ to Sonae • Share Capital Indústria • 11,210,757,417 shares subscribed (74.7% of increase in an total) amount close • Controlling shareholder (Efanor) stake increased from 51% to 69% to 112M€ • Offer compl
Slide 11: Refinancing
SONAE INDÚSTRIA Highlights of 2014 results Refinancing • 319 M€ of debt refinanced with two main • Refinancing of banks, providing significant improvements in terms of maturity profile: 319M€ of debt • • Extended maturities: 6 to 8 years Min. grace period: 3 years for principal repayments • Extended
Slide 12: Scheduled loan repayments
SONAE INDÚSTRIA Highlights of 2014 results Scheduled loan repayments* Million € • And improved maturity 200 as of 31 Dec. 2014 as of 31 Dec. 2013 150 150 115 104 100 50 22 52 profile • With 3 year 12 10 9 8 0 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 2018 2019 ≥ 2020 2013 2014 grace period Short-term
Slide 13: Strategy execution
SONAE INDÚSTRIA Strategy execution 13
Slide 14: Strategy execution
SONAE INDÚSTRIA Strategy execution Industrial footprint optimization • Fix, sell or close underperforming assets Operating • Improved capacity utilization index levels and improvements specific consumptions Improve product • Increase share of value added products, mix namely melamine • Strong reduct
Slide 15: Strategy execution | Restructuring
SONAE INDÚSTRIA Strategy execution | Restructuring • Sale of Auxerre and Le Creusot plants • Closure of Pontecaldelas • Ussel, Linxe and Betanzos classifed at YE accounts as “discontinued operations” 15
Slide 16: Strategic Investment: Recycling
SONAE INDÚSTRIA Strategy execution | Investments Strategic Investment: Recycling Nettgau • 12M€ investment in recycling facilities 16
Slide 17: Strategic Investment: Melamine
SONAE INDÚSTRIA Strategy execution | Investments Strategic Investment: Melamine Nettgau • 11M€ investment in melamine Oliveira do Hospital surfacing facilities • New EiR® Example of a EiR product technology in OH 17
Slide 18: Melamine Mix
SONAE INDÚSTRIA Strategy execution | Value Added Melamine Mix % • Improvement 41,0% 40,0% in melamine 39,0% 38,0% mix, with 37,0% 36,0% positive 35,0% impacts from 34,0% 33,0% 2012 2013 2014 restructuring All operations Continued operations, excluding inactive sites activities 18
Slide 19: Thank you.
SONAE INDÚSTRIA Thank you. Investor and analysts contacts: António Castro Sílvia Saraiva Phone: (+351) 220 100 655 investor.relations@sonaeindustria.com 19