Sonae Indústria S.G.P.S — Sonae Indústria — FY2007 Earnings Presentation
17 slides from Sonae Indústria S.G.P.S's earnings presentation, 2008
Slide 1: Highlights 2007 Results
HIGHLIGHTS 2007 RESULTS Highlights 2007 Results 1
Slide 2: 2007 Highlights: Strong Operating Performance
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS STRONG OPERATING PERFORMANCE: SUPPORTED BY SOLID, COMPETITIVE POSITIONS IN OUR PRINCIPAL MARKETS; REGISTERED DESPITE THE CONSTRUCTION SLOWDOWN FELT (PARTICULARLY IN NORTH AMERICA, GERMANY AND SPAIN), AND THE CRISIS AFFECTING THE FINANCIAL MARKE
Slide 3: 2007 Highlights: Turnover and Recurrent EBITDA
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS When compared to FY 2006: Consolidated Turnover increased by 22% to 2.1 billion euros; Recurrent EBITDA increased to 302 million euros, representing an EBITDA margin of 15% in FY07, compared to 13% in FY06. Recurrent EBITDA in 4Q07 came to 13%
Slide 4: Demand Decrease and Capacity Utilisation
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS Demand decreased over 2007, starting in North America at the beginning of the year and affecting Europe from the 3Q07 onwards Capacity utilisation adjusted to that trend CONSOLIDATED CAPACITY UTILIZATION (YEAR TO DATE) VOLUME SALES 3,50 Million
Slide 5: Consolidated Average Prices and Costs
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS Our industrial cost base was significantly higher in 2007, compared to that of 2006 (+10%), due to the pressure on global prices for methanol and local wood costs; nevertheless, price evolution offset this cost increase CONSOLIDATED AVERAGE PRI
Slide 6: Quarterly Price and Cost Evolution
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS Positive price environment in 2007, stabilising in 4Q 2007 Wood costs increased significantly at the beginning of 2007 while Methanol prices remained volatile CONSOLIDATED QUARTERLY AVERAGE PRICES CONSOLIDATED QUARTERLY AVERAGE COSTS (eur/m3) B
Slide 7: Quarterly Evolution per Region
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS Our quarterly evolution per region: TURNOVER & RECURRENT EBITDA TURNOVER & RECURRENT EBITDA IBERIA CENTRAL EUROPE TURNOVER & RECURRENT EBITDA 250 45% 450 20% REST OF THE WORLD Millions of Euros 65% Millions of Euros 40% 400 18% 140 Millions of
Slide 8: Iberia
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS IBERIA Our excellent Iberian performance in 2007 was supported by our strategy of: Developing our product portfolio; Excelling in customer service (new info systems, optimising delivery times,…); Consolidating our presence in strategic export m
Slide 9: Central Europe
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS CENTRAL EUROPE Germany experienced a slowdown in residential construction as the: Building permits dropped significantly; most market segments suffered from weaker demand; Weak USD caused exports to decrease to the US and OSB imports to increas
Slide 10: Rest of the World
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS REST OF THE WORLD (Canada, Brazil, South Africa) Our RoW (Rest of the World) performance reflects mixed trends: In North America the US “subprime” crisis negatively impacted our sector and some production capacity reductions have already been a
Slide 11: Healthy Balance Sheet
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS HEALTHY BALANCE SHEET : BALANCE SHEET (MILLIONS OF EUROS) 2006 2007 NON CURRENT ASSETS 1,360 1,517 CURRENT ASSETS 796 651 TOTAL ASSETS 2,156 2,168 SHAREHOLDERS’ SHAREHOLDERS’ FUNDS + MINORITY INTERESTS 548 629 MLT FINANCIAL DEBT 802 704 ST FINA
Slide 12: Fixed Asset Investments and Tafisa Buyout
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS The increase in gross fixed assets in 2007 amounted to 202 million euros, which included: 90 million euros of investment in the new line in Canada, 49 million euros already recovered through our insurance policy; 34 million euros related to the
Slide 13: Optimising Net Debt/EBITDA Ratio
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS Optimising Net Debt/EBITDA Ratio Closely monitoring Net Debt ratio NET DEBT AND NET DEBT/EBITDA RATIO DEBT REPAYMENT SCHEDULE 1,400 300 290 1,300 1,166 280 270 1,200 1,115 260 250 240 1,100 230 214 1,000 944 220 210 200 900 749 798 190 160 800
Slide 14: Dividend Policy
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA 2007 HIGHLIGHTS Dividend Policy The Board of Directors will propose to the Shareholder’s General Meeting (21st April 08) that Sonae Indústria pays dividends in the amount of approximately 50% of 2007 Net consolidated Profits attributable to its Equity Holders
Slide 15: Looking Forward
HIGHLIGHTS 2007 RESULTS LOOKING FORWARD 15
Slide 16: Looking Forward
HIGHLIGHTS 2007 RESULTS SONAE INDÚSTRIA LOOKING FORWARD We will continue focusing on profitability to improve company value We believe there remains scope to improve our operational efficiency in Central Europe and Iberia; we will finalize the integration of the acquired assets (Hornitex and Darbo)
Slide 17: New Perspectives 2008
NEW PERSPECTIVES 2008 Pony INDUSTRIA