Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q1 2008 Earnings Presentation
20 slides from Eucatex S.a. Industria E Comercio's earnings presentation, May 16, 2008
Slide 1: 1Q08 Results Conference Call
May 16, 2008 1Q08 Results Conference Call 1
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 » 1Q08 Highlights » COGS » Revenue Breakdown » Projects » Sustainability » Salto Unit » Financial Highlights » Botucatu Unit » CAPEX » Installed Capacity X Internal Demand Analysis » Financial Indebtedness » Paints » Capital Market 3
Slide 4: 1Q08 Highlights
1Q08 Highlights » Substantially improved financial results Gross Revenue reached R$212.6 million in 1Q08, 17.6% up on 1Q07; EBITDA of R$36.1 million in 1Q08, 37.4% up on 1Q07; EBITDA margin increased by 3.1 p.p. in 1Q08, to 20.7%; Net Income grew by 82.9% in 1Q08, reaching R$18.9 million. »
Slide 5: Revenue Breakdown
Revenue Breakdown » Highlights Increase in MDP as a percentage of Revenue: 36% in 1Q08 versus 34% in 1Q07. Eucatex’s paint segment represented 16% of revenues in 1Q08, versus 13% in 1Q07. Gross Revenue Breakdown - Gross Revenue Breakdown - Gross Revenue Breakdown - 1Q08 1Q08 1Q07 8% Hardboard 16
Slide 6: Salto Unit - Highlights
Salto Unit - Highlights » 7.2% increase in gross revenues; » Consolidation of growth in the unit’s production capacity, which generated an expectation of additional volumes of nearly 10% compared to the previous year; » Conclusion of automation of outputs of fiberboard presses I and II, enabling the
Slide 7: Botucatu Unit - Highlights
Botucatu Unit - Highlights » Permanent increase in the quality index of MDP production, reaching 98% of high-quality products in the quarter; » Gross Revenue from MDP panels amounted to R$75.7 million in 1Q08, a 25.5% increase over 1Q07; » Gross Revenue from Laminated Flooring totaled R$18.1 million
Slide 8: Wood Sales Mix
Wood Sales Mix » Eucatex’s sales mix has a higher percentage of finished products compared to other peers. » In 1Q08, the percentage of finished products started representing 95% of MDP transported. Finished products have higher value added. EUCATEX Finished products percentage in total MDP Finished
Slide 9: Installed Capacity versus Internal Demand for MDP + MDF
Installed Capacity versus Internal Demand for MDP + MDF Installed Instalada Capacidade Capacityvs vsDemanda Internal Demand Interna de MDF+MDP For MDF + MDP 10.000 100% 94% 9.000 90% 88% 90% 83% 8.000 80% 80% 78% 76% 77% 74% 72% 73% 7.000 70% Volume m3 (000) 6.000 60% 5.000 50% MDP 4.000 40% MDF 3.0
Slide 10: Paints - Highlights
Paints - Highlights » 45% increase in revenues versus 1Q07; » Increase in operations with paint measuring; » Complete range of products meeting the needs of different social classes; » National distribution with activities in all Brazilian states; and » Short-term goal: To be among Brazil’s largest
Slide 11: COGS Breakdown
COGS Breakdown Electric MDP Power Fiberboard Presses Thermal 5% Thermal Labor Electric Energy Energy 6% Power 8% 2% Depreciation 10% Depreciation Resin 9% 10% 28% Labor Wood Wood 19% 24% 22% Raw material - Others 26% Raw material - Others 31% Flooring Paints Electric Labor Electric Power 8% Power Th
Slide 12: Projects – New T-HDF Line
Projects – New T-HDF Line » Requests for all types of equipment of the new line have already been made, and most of them should be delivered by the end of this year; and » Project follows schedule; start of line operations is scheduled for the end of 1Q09. First line in Brazil specializing in T-HDF
Slide 13: 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: 40,000 hectares with, approximately, 30,000 hectares of effective plantation. The company has been investing to expand its forest r
Slide 14: Sustainability – Wood Recycling Project
Sustainability » Wood Recycling Project Waste handling – extending over 100 Km First recycled wood line for industrial Processing of up to 20,000 tons of waste per use in Brazil month. Products: Thermal energy generation Reuse in the production process Recycling Results: Volumes processed in
Slide 15: Financial Highlights
Financial Highlights Highlights 1Q08 (R$ MM) 1Q08 1Q07 Var. (%) Net Revenue 174.3 149.6 16.5% Cost of Good Sold (116.5) (103.6) 12.5% Gross Income 57.7 45.9 25.7% Gross Margin (%) 33.1% 30.7% +2.4 p.p. Adm. And Comercial Expenses (31.6) (30.7) 3.0% Others Operational Costs (1.0) 0.8 n.m. EBITDA 36.1
Slide 16: Investments - CAPEX
Investments - CAPEX » Start of investments in the new T-HDF line and new wood yard; Investments – CAPEX (R$ MM) » Capacity increase in Salto Unit; » Automated output of Fiberboard Presses I and II at the Salto unit; and 21.3 21.0 » Planting of 1,000 hectares of new forests. 1Q07 1Q08 16
Slide 17: Financial Indebtedness
Financial Indebtedness Debt (R$ MM) 1Q08 1Q07 Var. (%) Short Term Debt 14.5 26.2 -44.0% Long Term Debt 68.1 78.8 -13.6% Gross Debt 82.6 105.0 -21.3% Cash and Cash Equivalents 1.6 7.5 -78.4% Net Debt 81.0 97.5 -16.9% % Short Term Debt 18% 25% - 7 p.p. Net Debt/ EBITDA 0.6 0.9 -39.5% Net Debt/ EBITDA
Slide 18: Capital Market
Capital Market EUCA4 x IBOV EV/EBITDA* ratio Price Fin. Vol. Preço (R$)fech. Vol. Fin. (R$ ‘000) EUCATEX x Brazilian Peers (R$) (R$mil) 10,00 1000 9.1 9,1 x 9,00 900 7.8 7,8 x 8,00 800 7,00 700 6,00 600 5,00 500 2.7 2,7 x 4,00 400 3,00 300 2,00 200 1,00 100 EUCATEX DURATEX SATIPEL Duratex Satipel 0,
Slide 19: Final Remarks
Final Remarks » Cost of Goods Sold (COGS) varied 12.5% against 1Q07, the lowest in the sector. In the same period, Net Revenue grew by 16.5%; » New T-HDF line – Competitive advantage in comparison with other players; » Energy cost under control: Eucatex has electric energy purchase agreement up to 2
Slide 20: IR Contacts
IR 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/ir 20
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