Sonae Indústria S.G.P.S — Sonae Indústria — Investor Presentation (October 2016)
28 slides from Sonae Indústria S.G.P.S's investor presentation, October 2016
Slide 1: Investor Presentation
SONAE INDÚSTRIA Investor Presentation October 2016 1
Slide 2: Contents
SONAE INDÚSTRIA Contents 1. Overview 2. Operations 3. Financial Highlights 2
Slide 3: 1. Overview
SONAE INDÚSTRIA 1.Overview 3
Slide 4: Shareholding structure
SONAE INDÚSTRIA OVERVIEW Shareholding structure • A stable shareholder structure, with a reference shareholder, Efanor; a Portuguese family holding company with other interests in food and non-food retail, shopping centres, telecoms, among other sectors Share capital FREE FLOAT OF ~ 812 million euro
Slide 5: Group Structure
SONAE INDÚSTRIA OVERVIEW Group Structure • Sonae Indústria owns 50% of Sonae Arauco, 100% of the Boards business in North America and of the Laminates & Components business, together with some real estate assets in Europe Sonae Indústria 100% 100% 100% 50% Real Estate(& Laminates & Tafisa Sonae Othe
Slide 6: Governance Structure
SONAE INDÚSTRIA OVERVIEW Governance Structure • Experienced and committed management team Paulo Azevedo (Chairman) (1) Carlos Moreira da Silva (Deputy Chairman) José Romão de Sousa Board of Directors Albrecht Ehlers Carlos Moreira da Silva Javier Vega (Chairman) (Chairman) Javier Vega José Romão de
Slide 7: Our products (Raw Products)
SONAE INDÚSTRIA OVERVIEW Our products (Raw Products) PARTICLEBOARD (PB) • Very versatile • Suitable for all general uses in furniture and construction industries MEDIUM DENSITY FIBERBOARD (MDF) • Excellent substitute for solid wood MDF • Ideal for furniture, flooring and building industry requiremen
Slide 8: Our products (Added value)
SONAE INDÚSTRIA OVERVIEW Our products (Added value) Strong range of high value added products • Mainly melamine products, veneer faced, laminates and flooring for decorative solutions Technical products • E.g. AGEPAN – ideal for construction sector 8
Slide 9: Our Industrial footprint
SONAE INDÚSTRIA OVERVIEW (as of October 2016) Our Industrial footprint SONAE INDÚSTRIA SONAE INDÚSTRIA * Installed production capacity (raw boards, thousands m3) Portugal 900* • • Maia HPL Vilela – Paredes C Canada 1380* 2290* Germany • Horn HPL + CPL + C 1 Plant Portugal Germany and Spain 6 plants
Slide 10: Financial Indicators
SONAE INDÚSTRIA OVERVIEW Financial Indicators* FINANCIAL INDICATORS 1H16 Proportional LTM Turnover 647 LEVERAGE Proportional LTM Rec. EBITDA 83 Proportional Net Debt 339 Proportional Leverage 4.1 x LOAN TO VALUE Net Debt of Sonae Indústria 222 Asset Value 472 LTV (Net Debt of Sonae Indústria / Asset
Slide 11: 2. Operations
SONAE INDÚSTRIA 2.Operations 11
Slide 12: Sonae Arauco Partnership
SONAE INDÚSTRIA OPERATIONS | SONAE ARAUCO SONAE ARAUCO PARTNERSHIP • Combination of two strong, reputable and well- Reference established companies in the sector will leverage on the player in strengths of each one to build a stronger company in Europe and the concern markets South Africa • Top play
Slide 13: … with world class assets
SONAE INDÚSTRIA OPERATIONS | SONAE ARAUCO … with world class assets White River, South Africa Oliv. do Hospital, Portugal Nettgau, Germany Linares, Spain 13
Slide 14: … and with the following Corporate Governance
SONAE INDÚSTRIA OPERATIONS | SONAE ARAUCO … and with the following Corporate Governance BoD (8 Non 4 Members appointed by Sonae Indústria Executive) 4 Members appointed by Arauco BAFC BPC (Board of Audit and (Board Permanent Finance Committee) Committee) CFO direct CEO direct report report Managemen
Slide 15: North American Business
SONAE INDÚSTRIA OPERATIONS | NORTH AMERICA NORTH AMERICAN BUSINESS • A North American market leader in particleboard and melamine faced chipboard Market • The largest particleboard and melamine plant in North leader America and one of the largest in the world • High share of value-added decorative p
Slide 16: Strategic Investment | North America
SONAE INDÚSTRIA OPERATIONS | NORTH AMERICA Strategic Investment | North America • Conclusion of the investment in a 5th melamine surfacing line at our Lac-Mégantic plant in North America during 1H16 • 11M€ in a new technology to provide double-sided synchronized textures in two panel sizes • To meet
Slide 17: Commercial Initiatives | North America
SONAE INDÚSTRIA OPERATIONS | NORTH AMERICA Commercial Initiatives |North America • Presentation of ViVa collection at the International Woodworking Fair in Atlanta during August 17
Slide 18: Laminates & Components Business
SONAE INDÚSTRIA OPERATIONS | LAMINATES & COMPONENTS LAMINATES & COMPONENTS BUSINESS • Laminates: specially designed for general use in the most demanding situations of wear and impact; excellent alternative to solid wood and stone applications Products • Components: all main types of prefabricated f
Slide 19: Commercial Initiatives | Laminates
SONAE INDÚSTRIA OPERATIONS | LAMINATES & COMPONENTS Commercial Initiatives | Laminates • Launch of new Innovus®, a global collection in partnership with Sonae Arauco: an unique concept under one catalogue with an updated set of decors including Compacts, HPL, CPL and Worktops 19
Slide 20: 3. Financial Highlights
SONAE INDÚSTRIA 3.Financial Highlights 20
Slide 21: 1H16 Highlights
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS 1H16 Highlights First set of results for Sonae Indústria post the closing of the partnership with Arauco: Proportional Turnover(1)of 332 million Euros in 1H16 which compares with 327 million Euros in 1H15. (1) Proportional Recurrent EBITDA of 49M€, 15M€ highe
Slide 22: Top line performance (excluding Sonae Arauco) based mainly on North American market
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Top line performance (excluding Sonae Arauco) based mainly on North American market • Circa 90% of sales generated in North America • Important growth in Scandinavia y.o.y. Turnover by market | 1H15 Turnover by market | 1H16 22
Slide 23: Improved Recurrent EBITDA and higher margins y.o.y.
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Improved Recurrent EBITDA and higher margins y.o.y. Rec. EBITDA (Million €) Proportional Rec. EBITDA (Million) € and Rec. EBITDA margin (%) and Proportional Rec. EBITDA margin (%) 1H15 R: Restated to show as Discontinued Operations the results of all the companie
Slide 24: Fixed costs kept stable vs. 1H15, on a comparable basis
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Fixed costs kept stable vs. 1H15, on a comparable basis % Fixed Costs (% Turnover) 1H15 R: Restated to show as Discontinued Operations the results of all the companies included in the consolidation perimeter of Sonae Arauco. The results of the French industrial u
Slide 25: Proportional Net Debt of 339M€, Proportional Leverage of 4.1x
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Proportional Net Debt of 339M€ Proportional Leverage of 4.1x Before Strategic After Strategic Partnership Partnership 31.05.2016 Completion of the Proportional Gross Debt partnership with Arauco as of 30 June 2016, Million € Short-term 8 M/L-term 343 339 4.1x 1H1
Slide 26: Improved debt repayment profile
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Improved debt repayment profile Scheduled loan repayments (1) Million € as of 30 June 2016 Sonae Indústria Debt structure (Million €) (1) Does not include short term facilities. Sonae Arauco Average debt maturity • Sonae Indústria: 4.2 years Debt structure (as of
Slide 27: Safe Harbour
SONAE INDÚSTRIA SAFE HARBOUR This document may contain forward-looking information and statements, based on management’s current expectations or beliefs. Forward-looking statements are statements that are not historical facts. These forward-looking statement are subject to a number of factors and un
Slide 28: Glossary of Terms
SONAE INDÚSTRIA APPENDIX Glossary of Terms Asset Value is calculated as follows: [6.8 x LTM Recurrent EBITDA of fully consolidated business (100%)] + [market value of real Asset Value estate properties owned 100% by Sonae Indústria, according to external valuations] + [50% x (6.8 x LTM Recurrent EBI
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