Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q1 2020 Earnings Presentation
27 slides from Eucatex S.a. Industria E Comercio's earnings presentation, 2020
Slide 1: Earnings Release 1Q20
Earnings Release 1Q20
Slide 2: Highlights
Highlights Net Revenue • 1Q20: R$369.0 million, 3.5% higher Recurring EBITDA • 1Q20: R$67.2 million, an increase of 0.9% Recurring EBITDA Margin • 1Q20: 18.2%, a 0.5 p.p. drop Recurring Net Loss • 1Q20: R$11.3 million, down 173.2% Material Fact • Recognition of final and unappealable decisions in la
Slide 3: Construction - ABRAMAT Index Domestic Market
Construction ABRAMAT Index - Domestic Market From 2013 to 2019, the index dropped 28.4%. Source: ABRAMAT 3
Slide 4: Evolution of Supply and Demand in Domestic Panel Market - Quarter
Evolution of Supply and Demand in Domestic Panel Market - Quarter Effective Installed Capacity (Fiberboard + MDF + MDP) vs. Production 2,891.3 2,891.3 2,702.0 2,702.0 % Var. 1Q20 vs. 1Q19 32% 32% Total 35% 31% Total 0.9% Domestic Market -0.1% 316.2 290.1 308.8 280.2 Export Market 6.5% 1,590.5 1,639.
Slide 5: Operating Data
Operating Data Net Revenue 1Q19 1Q20 Var R$356.6 million R$369.0 million 3.5% Distribution by Product - 1Q20 Distribution by Segment - 1Q20 Eucatex has a diversified portfolio of products and operates in several segments, contributing with significant growth along the years. 5
Slide 6: Wood Segment
Wood Segment Net Revenue 1Q19 1Q20 Var R$264.8 million R$275.6 million 4.1% Total Market (‘000 m³) – Domestic + Export Markets -6.5% 0.9% Source: Eucatex estimate Market 6
Slide 7: Wood Segment
Wood Segment Installed Capacity Utilization - 1Q20 Breakdown of Costs - 1Q20 All Panels Resin Panels Non-Resin Panels (Fiberboard) 7
Slide 8: Paint Segment
Paint Segment Market - Million Gallons Net Revenue Variation 1Q20 x 1Q19 1Q19 1Q20 Var Eucatex -7.9% Market -8.0% R$67.2 million R$64.9 million -3.4% Source: Eucatex Breakdown of Costs - 1Q20 Installed Capacity Utilization Total Capacity - 36 million gallons / year 8
Slide 9: Financial Data
Financial Data Highlights (R$ million) 1Q20 V. A. % 1Q19 V. A. % Var. (%) Net Revenue 369.0 100.0% 356.6 100.0% 3.5% Fair value of biological assets 9.8 2.7% (0.1) 0.0% 14405.8% Cost of products sold (269.5) -73.0% (258.9) -72.6% 4.1% Gross income 109.3 97.6 12.0% Gross Margin (%) 29.6% 27.4% 2,2 p.
Slide 10: Debt
Debt Debt (R$ Million) 1Q20 2019 Var. (%) 1Q19 Var. (%) Short Term Debt 275.9 240.2 14.9% 287.2 -4.0% Long Term Debt 211.7 193.0 9.7% 160.8 31.6% Gross Debt 487.5 433.2 12.6% 448.0 8.8% Cash and Cash Equivalents 22.5 18.5 22.0% 12.3 83.5% Net Debt 465.0 414.7 12.1% 435.8 6.7% % Short Term Debt 57% 5
Slide 11: Investments
Investments Investments Made R$43.0 million R$26.3 million Total Forestry Total Forestry R$14.5 million R$18.9 million 1Q19 1Q20 Salto + Bot Fiberboard 6.8 20.3 Botucatu 2.0 2.6 Paints 3.1 1.0 Siviculture 12.5 16.1 Leasing 2.0 2.8 Planned for 2020 R$136.5 million 11
Slide 12: Sustainability - Forestry
Sustainability - Forestry 81 farms Average Radius with eucalyptus plantations, Botucatu Botucatu totaling Salto MDP Fiberboard 51,600 hectares 76 km 19 Km 54 Km Newly Planted Forests and Seedling Management (ha) 6,050 1% 4,589 99% 4,280 4,457 2% 5% 24% 98% 95% 76% 1,179 100% 2017 2018 2019 1Q20 2020
Slide 13: EUCATEX vs. COVID-19
EUCATEX vs. COVID-19 Eucatex Taking Care of You!
Slide 14: Eucatex vs. COVID-19
Eucatex vs. COVID-19 In-house Measures - Preventive Actions Notice to the Market on Apr/24/2020 Information and Raising Awareness Sanitization of Facilities Personal Hygiene Physical Distancing Risk Monitoring Control of Cases 14
Slide 15: Eucatex vs. COVID-19 - Information and Raising Awareness
Eucatex vs. COVID-19 Preventive Actions - Information and Raising Awareness Disseminating Information Weekly Discussions on Safety Medical Lecture on Covid-19 Information disseminated through Discussions in all areas on Covid-19 Lectures on preventive actions posters and banners located in busy prev
Slide 16: Eucatex vs. COVID-19 - Information and Raising Awareness
Eucatex vs. COVID-19 Preventive Actions - Information and Raising Awareness Disseminating Information Corporate TV Telehealth app Spreading information through Informational videos in restaurants Dr. Alper app provided to internal communication channels at the units and in the cafeteria at employees
Slide 17: Eucatex vs. COVID-19 - Sanitization of Facilities
Eucatex vs. COVID-19 Preventive Actions - Sanitization of Facilities Intensified Cleaning Disinfection of Traffic Areas Disinfection of Internal Pathways More frequent cleaning of Daily disinfection of areas with bathrooms, locker rooms, Daily disinfection of internal higher circulation of people wi
Slide 18: Eucatex vs. COVID-19 - Sanitization of Facilities
Eucatex vs. COVID-19 Preventive Actions - Sanitization of Facilities Open Doors and Windows Disinfection of Chartered Buses Open windows and doors for air Intensified cleaning of chartered circulation and shutdown of A/C buses system 18
Slide 19: Eucatex vs. COVID-19 - Personal Hygiene
Eucatex vs. COVID-19 Preventive Actions - Personal Hygiene Disinfection of Footwear Disinfection Tunnel Sanitizing mats with sodium Disinfection tunnels were installed hypochlorite were placed at the at the entrances of industrial plants entrances of buildings with higher circulation of people 19
Slide 20: Eucatex vs. COVID-19 - Personal Hygiene
Eucatex vs. COVID-19 Preventive Actions - Personal Hygiene Installation of Hand Sanitizer Totems Hand Sanitizer for All Employees Supply of Protection Masks Supply of masks to employees, Installation in reception areas and Delivery of hand sanitizer with 70% whose use is mandatory while at points wi
Slide 21: Eucatex vs. COVID-19 - Physical Distancing
Eucatex vs. COVID-19 Preventive Actions - Physical Distancing Flexible Working Hours Acrylic Wall Partitions on Office Adoption of Rotating Shifts and Desks Home Office Flexibility in working hours for employees so that they do not need Installation of acrylic Allowing employees to work from to use
Slide 22: Eucatex vs. COVID-19 - Physical Distancing
Eucatex vs. COVID-19 Preventive Actions - Physical Distancing Suspension of Activities in Common Physical Distance Signs at Entrance Online Meetings Areas Daily disinfection of internal Priority to online meetings Closure of the Company's leisure pathways with sodium hypochlorite areas and training
Slide 23: Eucatex vs. COVID-19 - Physical Distancing
Eucatex vs. COVID-19 Preventive Actions - Physical Distancing Physical Distancing Signs in Suspension of Activities involving Acrylic Wall Partitions on Restaurant Restaurants Crowds Tables Safe distance outlined on the floor Suspension of on-site training Installation of acrylic wall partitions of
Slide 24: Eucatex vs. COVID-19 - Risk Monitoring
Eucatex vs. COVID-19 Preventive Actions - Risk Monitoring Monitoring of Risk Group Monitoring of Body Temperature Monitoring Oxygen Saturation Leave for employees over 60 years Daily temperature readings of Acquisition of fingertip pulse old and analysis of employees with employees, service provider
Slide 25: It's gonna be okay! - Control of Cases
Eucatex vs. COVID-19 Preventive Actions – Control of Cases Contingency Plan Coronavirus Committee Case Worksheet Application of healthcare protocol for suspected and confirmed Covid- Creation of a committee to enhance Daily update of worksheet with 19 cases, including setting up of preventive measur
Slide 26: Main Measures to Balance the Results and Reduce the Impacts of the Quarantine
Eucatex vs. COVID-19 Main Measures to Balance the Results and Reduce the Impacts of the Quarentine Impact Measures R$ Million/Month Reduction in working hours and wages: Administrative areas – 25% April to June Paint Plant – 25% in May R$2.5 MDP Panels and Laminated Flooring Plant – 25% May and June
Slide 27: José Antonio G. de Carvalho
José Antonio G. de Carvalho Executive Vice President and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations ri@eucatex.com.br 55 (11) 3049-2473
Eucatex S.A. Indústria e Comércio — Q1 2020 Earnings Presentation on 6ix