Sonae Indústria S.G.P.S — Sonae Indústria — Investor Presentation (May 2018)
29 slides from Sonae Indústria S.G.P.S's investor presentation, May 2018
Slide 1: Investor Presentation May 2018
INVESTOR PRESENTATION May 2018 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 ~ 253 million euro
Slide 5: Corporate structure
SONAE INDÚSTRIA OVERVIEW Corporate 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 50% 100% 100% 100% Sonae Tafisa Laminates & Real Estate(&
Slide 6: Corporate Governance – Sonae Indústria
SONAE INDÚSTRIA OVERVIEW Corporate Governance – Sonae Indústria • Experienced and committed management team Paulo Azevedo (Chairman) Board Committees Carlos Moreira da Silva (Deputy Chairman)(1) Albrecht Ehlers BAFC BNRC Board of Board Audit and Finance Board Nomination and Committee Remuneration Co
Slide 7: Corporate Governance – Sonae Arauco
SONAE INDÚSTRIA OVERVIEW Corporate Governance – Sonae Arauco 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 Management team 7
Slide 8: Industrial footprint
SONAE INDÚSTRIA OVERVIEW (as of May 2018) Industrial footprint * Installed production capacity (raw boards, thousands m3) SONAE INDÚSTRIA Portugal • Maia HPL • Vilela – Paredes C Germany • Horn HPL + CPL + C Canada • Lac-Mégantic PB + MF SONAE ARAUCO Portugal • Castelo de Paiva WV • Mangualde MDF +
Slide 9: Products (Raw products)
SONAE INDÚSTRIA OVERVIEW 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 requirements O
Slide 10: Products (Value added)
SONAE INDÚSTRIA OVERVIEW Products (Value added) Strong range of high value added products • Decorative solutions, melamine and veneer faced products, laminates Technical products • E.g. AGEPAN – ideal for construction sector • Water resistant and Fire retardant panels 10
Slide 11: Products (Laminates and Components)
SONAE INDÚSTRIA OVERVIEW Products (Laminates and Components) Laminates: HPL, Compacts • Decorative products applied to interior design solutions Innovus Colour bloom Innovus Cabinet solution Innovus Magnetic Innovus Digital Components • Various types of components for general furniture, kitchen furn
Slide 12: Diversified market base and value added portfolio
SONAE INDÚSTRIA OVERVIEW Diversified market base and value added portfolio Proportional Turnover by market | 1Q18 Proportional Sales by Product| 1Q18 Others Lam. & Comp. 6.1% Other European countries PB Germany 7.7% Others T&G 5.2% 21.3% 23.5% 4.3% 0.8% CTS 4.5% Iberian Peninsula 20.8% South Africa
Slide 13: Strategic objectives
SONAE INDÚSTRIA OVERVIEW Strategic objectives North America: • Continue to improve the product mix and customer service with a focus in setting the trends in premium decorative solutions for the North American market leveraging on Tafisa Canada market position in the provisioning of melamine finis
Slide 14: Strategic objectives
SONAE INDÚSTRIA OVERVIEW Strategic objectives Sonae Arauco: • Support Sonae Arauco in achieving its strategic objectives focused on: investing in productivity and flexibility; improving product quality and service level offered to our customers; and improving its offer in decorative products
Slide 15: 2. Operations
SONAE INDÚSTRIA 2.Operations 15
Slide 16: 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 17: … 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 17
Slide 18: 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 19: Commercial initiatives | North America
SONAE INDÚSTRIA OPERATIONS | NORTH AMERICA Commercial initiatives |North America • ViVa EIR collection & new textures • MFC collections 19
Slide 20: 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 21: Commercial initiatives | Laminates
SONAE INDÚSTRIA OPERATIONS | LAMINATES & COMPONENTS Commercial initiatives | Laminates • Innovus® 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 21
Slide 22: 3. Financial Highlights
SONAE INDÚSTRIA 3.Financial Highlights 22
Slide 23: Financial Highlights
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS 2017 HIGHLIGHTS: (1) Proportional Turnover of circa 153M€ (1) LTM Proportional Turnover of 619M€ (1) Proportional Recurrent EBITDA of 18.7M€ (1) (1) LTM Proportional Recurrent EBITDA of 85.0M€, with 12.3% margin Positive Net Results in the quarter reach
Slide 24: Proportional Financial Indicators
SONAE INDÚSTRIA PROPORTIONAL(1) FINANCIAL INDICATORS FINANCIAL INDICATORS (unaudited) (1) As Sonae Indústria 50% shareholding 1Q17 1Q18 in Sonae Arauco is accounted by the Proportional Turnover 164 153 Equity Method, unaudited Proportional Proportional Rec. EBITDA 22 19 Indicators are presented to p
Slide 25: Proportional Net Debt of 320M€, Proportional Leverage of 3.8x
SONAE INDÚSTRIA PROPORTIONAL INDICATORS Proportional Net Debt of 320M€ Proportional Leverage of 3.8x Before Strategic After Strategic Partnership Partnership 31.05.2016 Completion of the strategic partnership with Arauco Million € 600 578 7.5 x 550 7.0 x 6.5 x 500 6.0 x 450 5.5 x 400 5.1 x 339 5.0 x
Slide 26: Recurrent EBITDA Y.O.Y.
SONAE INDÚSTRIA RECURRENT EBITDA Y.O.Y. Rec. EBITDA (Million €) Proportional Rec. EBITDA (Million €) and Rec. EBITDA margin (%) and Proportional Rec. EBITDA margin (%) 25 30.0% 12 40.0% 22 19 25.0% 10 35.0% 20 10 30.0% 20.0% 8 15 25.0% 6 13.6% 15.0% 6 20.0% 12.3% 10 15.0% 10.0% 4 16.3% 10.0% 5 2 10.
Slide 27: Debt Structure and Repayment Profile
SONAE INDÚSTRIA DEBT STRUCTURE AND REPAYMENT PROFILE Debt repayment profile Scheduled loan repayments (1) Million € 31 March 2018 as of 31 March 2018 140 127 15 120 Sonae Indústria 100 Debt (Million €) 80 60 47 (1) Considering Mar-18 40 drawn amounts of circa 196 20 EUR 208.8M (which 12 11 Short-ter
Slide 28: 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 29: Glossary of Terms
SONAE INDÚSTRIA APPENDIX Glossary of Terms Asset Value is calculated as follows: [6.5 x LTM Recurrent EBITDA of fully consolidated business (100%)] + Asset Value [market value of inactive sites real estate properties owned 100% by Sonae Indústria] + [50% x (6.5 x LTM Recurrent EBITDA of Sonae Arauco