Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q4 2007 Earnings Presentation
20 slides from Eucatex S.a. Industria E Comercio's earnings presentation, Mar 14, 2008
Slide 1: 4Q07 Results Conference Call
March 14, 2008 4Q07 Results Conference Call
Slide 2: Disclaimer
Disclaimer This presentation includes forward‐looking statements that are subject to risks and uncertainties based on the beliefs and assumptions of the Company’s management, and on information currently available to the Company. Forward‐looking statements are not guarantees of performance. They inv
Slide 3: Agenda
Agenda » 2007 Highlights » Paints » Projects » Sales Breakdown » Sustainability » Financial Performance » Revenues Breakdown » CAPEX » MDP Panels » Financial Restructuring » Hardboard Market » Capital Market » Laminate Flooring Market » Why Eucatex? 3
Slide 4: 2007 Highlights
2007 Highlights » Substantially improved financial results Gross Revenue reached R$ 765 million in the 4Q07, 10.8% up on the 4Q06; EBITDA of R$ 113.8 million in 2007, 75% up on 2006. In the 4Q07, EBITDA reached R$ 38 million, a 113% growth compared to the 4Q06; EBITDA margin increased by 7 p.p
Slide 5: Projects: Expansion in Production Capacity and New Projects
Projects » Expansion in Production Capacity and New Projects New T‐HDF Line EBITDA Margin: 45 % First line in Brazil specializing in T-HDF production New T – HDF Line Increase of Production Capacity 110 million m²/ year Additional Revenues R$ 250 million T‐HDF: Similar to MDF, with EBITDA R$ 90 mi
Slide 6: Projects: Allotment in Salto
Projects Allotment in Salto PSV of R$ 200 million Partnership with CIPASA, Scopel and Prata Empreendimentos for the development of Residential and commercial allotments Area 2 million m² Development period 8 years SP 75 Santos Dumont Av Pres. Vargas 6
Slide 7: Sustainability: Forests
Sustainability » Forests Annual consumption (with the new line) esteem in 1,4 million m³ / year, equivalents to 4,4 thousand hectares of forests. Current forests: 40 thousand hectares with, approximately, 30 thousand hectares of effective plantation. The company has been investing to expand it
Slide 8: Sustainability: Wood Recycling Project
Sustainability » Wood Recycling Project Waste handling – extending over 100 Km First recycled wood line for industrial use in Brazil Processing of up to 20,000 tons of waste per month. Products: Thermal energy generation Reuse in the production process Results Environmental benefits Savi
Slide 9: Revenue Breakdown: Highlights
Revenue Breakdown » Highlights Increase in MDP as a percentage of Revenue: 34% in 2007 versus 31% in 2006. Eucatex’s paint segment represented 15% of revenues in 2007, versus 12% in 2006. Revenue Breakdown 2007 Revenue Breakdown 2006 Hardboard Hardboard 9% 9% MDP 33 % 12 % MDP 15 % 39 % Gross Re
Slide 10: MDP
MDP » MDP Continuous quality growth, reaching 98% of first‐line products Gross Revenue of MDP reached R$258.5 million in 2007, a 19.1% growth compared to 2006. New line of finished products BP with a 9 million m² / year production capacity and launching of new Finish Foil line, a high‐gloss pr
Slide 11: Hardboard Market
Hardboard Market MDF Consumption 2007 MDP Consumption 2007 (growth 2007 x 2005 = 49%) (growth 2007 x 2005 = 22%) (‘000 m³) (‘000 m³) 2080 1780 2545 2085 2186 1395 110 103 2005 2006 2007 2005 2006 2007 Eucatex Hardboard Sales Volume (2005 – 100 base) 6.8 % 14 % 110 114 103 100 4Q06 4Q07 2006 2007 Sou
Slide 12: Laminate Flooring Market
Laminate Flooring Market Laminate Flooring Consumption (m²) Eucatex Laminate Eucatex’s Sales ofFlooring Sales Laminate Market Flooring (2005 – 100 base) 8.367 7,239 22.6% 6,492 5,880 130 123 106 110 4Q06 4Q07 2006 2007 106 Source: ABIPLAR – Brazilian Laminate Flooring Association 12
Slide 13: Paints
Paints » Paints Complete product line serving all income segments National distribution with a presence in all Brazilian States Short term goal: to be one of the largest paint manufacturers in Brazil Strategic Changes: Hiring of a proprietary sales team to focus the State of São Paulo + Bran
Slide 14: Revenue Breakdown
Revenue Breakdown Segments Attended 2007 Segments Attended 2006 4% Hardboard Sales Hardboard Sales 5% Civil Construction 10 % Civil Construction 9% 6% 10 % 4% 6% Manufacturing Manufacturing 4% 25 % Gross Revenue 28 % Gross Revenue Other Industries R$765 million Other Industries R$690 million Others
Slide 15: Financial Highlights
Financial Highlights 2007 Highlights (R$ MM) 4Q07 4Q06 Var. (%) 2007 2006 Var. (%) Net Revenue 164.4 151.8 8.3% 623.5 570.1 9.4% Cost of Goods Sold ‐110.6 ‐110.3 0.2% ‐425.9 ‐405.7 5.0% Gross Profit 53.8 41.5 29.9% 197.6 164.3 20.2% Gross Margin (%) 32.7% 27.3% +5.4 b.p. 31.7% 28.8% +2,9 p.p. Operat
Slide 16: Investments - Capex
Investments ‐ Capex » 2 new finishing lines for Low‐ Pressure Finishing (BP) and Finish Investiments ‐ Capex (R$ MM) Foil (FF); 29.5 % » Automated output of Fiberboard Presses I and II at the Salto unit with staff downsizing; 112.8 » Conclusion of the recycled wood 63.2 % 87.1 project (Recycled Proj
Slide 17: Financial Restructuring
Financial Restructuring On September, 2007, Eucatex successfully ratified the result of its judicial recovery plan that consisted of: a) payment in kind of land and forests without impacting the sustainability of the forestry business; b) debentures convertible into capital; c) payment in cash, and
Slide 18: Capital Market
Capital Market PricePrice Vol. Vol.Fin. Fin. (R$) (R$) EUCA4 Evolution (R$'000) (R$'000) 10 10 1000 1000 9 9 900 900 » Appreciation in 2007: 199.7% 8 8 7 7 800 800 700 700 » Market Maker: Ágora Senior 6 6 600 600 Since December 21, 2007 5 5 500 500 4 4 400 400 3 3 300 300 2 2 200 200 1 1 100 100 EV/
Slide 19: Why Eucatex?
Why Eucatex? » Boom in real estate and construction markets in Brazil; » Furniture sales in 2007 moved up by 8.3 % in São Paulo (Source: Fecomercio); » Company completed its capital restructuring; » Upside potential; » Company prepared to focus on its operational growth, with investments in producti
Slide 20: RI Contacts
RI Contacts » José Antonio G. de Carvalho Executive Vice‐President and IRO » Phone: +55 (11) 3049‐2361 Fax: +55 (11) 3049‐2215 » Email: ri@eucatex.com.br » Website: www.eucatex.com.br/ri 20
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