Corticeira Amorim Sgps Sa · EURONEXT:COR
Corticeira Amorim Sgps Sa — H1 2007 Earnings Presentation
37 slides from Corticeira Amorim Sgps Sa's earnings presentation, 2007
Slide 1: Consolidated results First Half 2007
Corticeira Amorim, S.G.P.S., S.A. Consolidated results First Half 2007
Slide 2: Summary
Summary Consolidated results Composite Cork • Highlights • Key indicators • Consolidated key indicators • Highlights Raw Materials Cork Rubber • Key indicators • Key indicators • Highlights • Highlights Cork Stoppers Insulation Cork • Key indicators • Key indicators • Highlights • Highlights
Slide 3: Consolidated results
Consolidated results • Highlights • Consolidated key indicators Unit: thousands of euros 3
Slide 4: Highlights
Highlights Consolidated sales totaled 242.2 million euros (M€) at the end of the half year (+3.1%), boosted by the results of the Cork Stoppers Business Unit (+5.5%). Like in the first quarter (1Q07), 2Q07 results continued adversely affected by devaluation of the USD (7.5% compared with 1H06), th
Slide 5: Consolidated key indicators
Consolidated key indicators Sales EBITDA Net Profit +3.1% +9.6% +11.2% 234,890 242,230 221,789 29,616 9,145 27,030 8,222 25,021 6,850 1 H 2005 1 H 2006 1 H 2007 1 H 2005 1 H 2006 1 H 2007 1 H 2005 1 H 2006 1 H 2007 Total Assets Net debt -1.3% -0.9% 565,011 571,270 563,886 228,508 225,776 223,821 1 H
Slide 6: Raw Materials
Business Unit: Raw Materials • Key indicators • Highlights Unit: thousands of euros 6
Slide 7: Highlights: Procurement
Highlights Procurement • Purchases carried out gradually and continuously in order to ensure correct quantity and quality levels of raw materials for specific Business Unit (BU) operations; • Better quality/price ratio as compared with last year; • Active participation at North African auctions; •
Slide 8: Highlights and key indicators
Highlights and key indicators Sales Operating activity 59,948 60,954 56,606 • Sales dropped 7.1% vs 1H06: – Decision to reduce sale of raw material outside the Group; • Gross margin down approximately 24%: – Cork used up during 1H07 with a lower than expected contribution margin; • EBITDA and EBIT
Slide 9: Cork Stoppers
Business Unit: Cork Stoppers • Key indicators • Highlights Unit: thousands of euros 9
Slide 10: Highlights and key indicators: Sales
Highlights and key indicators Sales – 5.5% increase • Negative exchange rate effect (USD; ZAR and CLP) lead to -3.0% sales vs 1H06: – Natural Cork stoppers: - increase of over 12%; - greater application for premium wines; - special reference to important contribution of the French market; – Champag
Slide 11: Highlights and key indicators (2)
Highlights and key indicators (2) Operating activity EBITDA • Gross margin up more than 16% vs 1H06: – more value-added cork stoppers; 15,219 – incorporation of margin from granulated cork for technical stoppers (previously supplied by 9,831 8,178 Composite Cork BU) – negative exchange rate impact
Slide 12: Floor & Wall Coverings
Business Unit: Floor & Wall Coverings • Key indicators • Highlights Unit: thousands of euros 12
Slide 13: Highlights and key indicators: Sales
Highlights and key indicators Sales – 2.7% Increase • Negative exchange rate effect responsible for 1% drop in sales vs 1H06 • Sales of cork wall and floor tiles up approximately 4% compared with 1H06: – slowdown of German market, especially during 2Q; – good performance from US and Eastern Europea
Slide 14: Highlights and key indicators (2)
Highlights and key indicators (2) Operating activity EBITDA • Gross margin rose 3.2% during 1H07: 7,561 8,229 7,658 – Regardless of negative impact from exchange rates and increase of raw material prices (MDF); • Provisions explain 0.8 M€ less results in 1H07 vs 1H06: – 0.4 M€ increase in 1H07 comp
Slide 15: Composite Cork
Business Unit: Composite Cork • Key indicators • Highlights Unit: thousands of euros 15
Slide 16: Highlights and key indicators: Sales
Highlights and key indicators Sales – 4.6% Decrease • Negative exchange rate effect responsible for over 1.8% drop in 1H07 sales compared with 1H06 • Less sales to other BU resulted in 7.3% drop: Sales – Transfer of granulated cork production to Cork Stoppers BU; 33,007 30,297 31,475 • Sales in al
Slide 17: Highlights and key indicators (2)
Highlights and key indicators (2) Operating activity EBITDA • Gross margin dropped 4.4%: 3,765 3,067 – gross margin percentage steady despite negative impact of USD; 2,823 – effect of less sales to other BU • Operational costs decreased approximately 3% vs 1H06: – Rationalization effort resulted in
Slide 18: Cork Rubber
Business Unit: Cork Rubber • Key indicators • Highlights Unit: thousands of euros 18
Slide 19: Highlights and key indicators
Highlights and key indicators Sales 16,101 Sales – 6.0% Decrease 14,645 15,140 • With a steady USD/EUR exchange, sales would have registered slight increase; • During 2Q07, sales of Auto and Heavy Duty segments inverted positive tendency of 1Q07; • Sales of non-auto products continued to show relev
Slide 20: Insulation Cork
Business Unit: Insulation Cork • Key indicators • Highlights Unit: thousands of euros 20
Slide 21: Highlights and key indicators
Highlights and key indicators Sales 4,632 Sales – 12.6% increase 3,795 4,115 • Primarily due to positive evolution of major European and Middle Eastern markets; Operating activity 1 H 2005 1 H 2006 1 H 2007 • Gross margin increased 15% compared with last year as a result of greater activity and pr
Slide 22: Sustainable Development
Sustainable Development Unit: thousands of euros 22
Slide 23: Highlights
Highlights Cork oak forests and the resulting manufactured cork products have a proven, positive role in sustainable development. The role of cork in CO2-retention, preserving biodiversity and combating desertification, is crucial in minimising the world’s ecological footprint. Amorim’s annual
Slide 24: Appendices
Appendices • Consolidated indicators • Financial statements Unit: thousands of euros 24
Slide 25: Breakdown Sales by Business Unit
Breakdown Sales by Business Unit Insulation Cork Cork Rubber 2% Raw Materials 5% 3% Composite Cork 9% 6%2% 4% 9% Cork Stoppers 55% 26% 53% Floor and Wall 1 H 2006 Coverings 26% 1 H 2007 1 H 2005 1 H 2006 1 H 2007 Raw Materials 4% 4% 3% Cork Stoppers 54% 53% 55% Floor and Wall Coverings 25% 26% 26% C
Slide 26: Breakdown Sales by Geographic Areas
Breakdown Sales by Geographic Areas Rest of America Africa Australasia 7% 2% 5% USA 16% European Union a) 60% Rest of Europe 5% Portugal 6% 1 H 2005 1 H 2006 1 H 2007 European Union a) 55% 56% 60% USA 17% 16% 16% Portugal 8% 7% 6% Australasia 8% 7% 5% Rest of America 6% 7% 7% a) Includes Switzerland
Slide 27: Breakdown Sales by Currency
Breakdown Sales by Currency GBP 1% AUD ZAR DKK 1% 2% 3% USD CLP 18% 4% Others 4% 1 H 2005 1 H 2006 1 H 2007 EUR EUR 66.5% 64.9% 67.9% 68% USD 17.9% 20.4% 18.1% GBP 1.6% 1.4% 1.3% AUD 1.9% 1.3% 1.1% ZAR 1.9% 1.6% 1.7% DKK 2.8% 2.9% 2.6% CLP 3.3% 3.0% 3.7% Others 4.2% 4.4% 3.7% 27
Slide 28: EBIT & EBITDA evolution
EBIT & EBITDA evolution 29,616 27,030 25,021 17,660 15,180 12,930 1 H 2005 1 H 2006 1 H 2007 EBIT EBITDA 1 H 2005 1 H 2006 1 H 2007 Gross Margin 108,127 114,700 117,461 Other operating costs 93,317 97,061 98,685 EBIT 12,930 15,180 17,660 EBITDA 25,021 27,030 29,616 28
Slide 29: Breakdown EBITDA by Business Unit
Breakdown EBITDA by Business Unit Cork Rubber Composite Cork 0% Insulation Cork 9% 4% Raw Materials 16% Floor and Wall Coverings 24% 3% 2% 10% 28% 28% 28% 1 H 2006 1 H 2007 Cork Stoppers 1 H 2005 1 H 2006 1 H 2007 48% Raw Materials 19% 28% 16% Cork Stoppers 37% 28% 48% Floor and Wall Coverings 28% 2
Slide 30: Operating Costs Breakdown
Operating Costs Breakdown Value and % (Production): 41.9% 42.1% 40.6% 300,000 45.0% 250,000 40.0% 200,000 35.0% 30.0% 150,000 95,197 99,520 99,801 25.0% 100,000 20.0% 50,000 15.0% 0 10.0% 1 H 2005 1 H 2006 1 H 2007 Total Operating Costs % Production 1 H 2005 1 H 2006 1 H 2007 External supplies 35,82
Slide 31: Staff Costs
Staff Costs * * Excluding charges with reorganization Value and % (sales): Number of employees: Average 30 June 21.9% 4,201 4,176 20.1% 19.2% 3,959 3,992 3817 3797 46,799 47,304 46,551 1 H 2005 1 H 2006 1 H 2007 1 H 2005 1 H 2006 1 H 2007 Staff Costs % Sales Comparison *: % + Accounting Variance -1.
Slide 32: Net Profit
Net Profit 17,660 5,220 2,932 776 9,145 EBIT Interest Tax Minority Net Profit Interests 1 H 2005 1 H 2006 1 H 2007 EBIT 12,930 15,180 17,660 Interest 3,713 4,007 5,220 EBT 9,220 11,239 12,852 Tax 1,970 2,266 2,932 Minority interests 400 752 776 Net Profit 6,850 8,222 9,145 32
Slide 33: Debt and Gearing
Debt and Gearing Net debt and Equity/ Total Assets: 40.9% 45.0% 290,000 37.2% 38.3% 270,000 40.0% 250,000 228,508 35.0% 225,776 223,821 230,000 30.0% 210,000 25.0% 190,000 170,000 20.0% 150,000 15.0% 1 H 2005 1 H 2006 1 H 2007 Net Debt Equity / Total Assets 1 H 2005 1 H 2006 1 H 2007 Net Debt 228,50
Slide 34: Total Assets
Total Assets Other current assets 8% Non-current assets 35% Customers 8% 22% 18% 37% 37% 1 H 2006 1 H 2007 Inventories 1 H 2005 1 H 2006 1 H 2007 35% Non-current assets 202,933 200,934 198,361 Inventories 210,511 205,346 196,515 Customers 112,141 99,265 123,444 Other current assets 39,425 44,355 45,
Slide 35: Equity and Liabilities
Equity and Liabilities Other non-current Trade payables liabilities 7% 30% Other current 8% liabilities 28% 25% 21% Provisions 1% 1% 38% 1 H 2006 1 H 2007 Equity and minority interests 41% 1 H 2005 1 H 2006 1 H 2007 Equity and minority interests 210,001 218,749 230,433 Provisions 5,186 4,601 5,248 O
Slide 36: Market information
Market information AMORIM | 36
Slide 37: Corticeira Amorim, S.G.P.S., S.A. contact details
CORTICEIRA AMORIM, S.G.P.S., S.A. Rua de Meladas, nº 380 P.O. Box 20 4536-902 MOZELOS VFR PORTUGAL Tel.: +351 22 747 54 00 Fax: +351 22 747 54 07 Email: corticeira.amorim@amorim.com http//:www.corticeiraamorim.com www.corkfacts.com 37
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