Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — H1 2009 Earnings Presentation
27 slides from Eucatex S.a. Industria E Comercio's earnings presentation, Aug 17, 2009
Slide 1: 1H09 Conference Call
1H09 Conference Call August 17, 2009
Slide 2: Disclaimer
Disclaimer This presentation includes forward‐looking statements that are subject to risks and uncertainties and are based on the beliefs and assumptions of the management of Eucatex S.A. Indústria e Comércio and on information currently available to the Company. Forward‐looking statements are not g
Slide 3: 1H09 Highlights
1H09 Highlights » Financial Highlights • Gross Revenue of R$ 200.9 million in 2Q09, down 2.5% in relation to 2Q08. In 1H09, gross revenue was R$ 390.3 million, down 6.8% from R$ 418.7 million in 1H08. • Gross Profit of R$ 52.8 million in 2Q09 and R$ 111.0 million in 1H09, down 4.4% and 1.8% over the
Slide 4: Revenue Breakdown Highlights
Revenue Breakdown » Highlights Eucatex’s Laminate Flooring and Paint segments contributed 9% and 20% of revenue in 1H09, respectively, versus 8% and 16% in 1H08. Gross Revenue Breakdown - 1H09 Gross Revenue Breakdown - 1H08 5% Hardboard 8% 20% 32% MDP 16% 33% Laminate Flooring 9% 8% Paint Others 3
Slide 5: Board Unit
Board Unit » First and largest unit of the Eucatex Group Location: Salto, São Paulo Area: Land – 540,000 m² / Built area – 153,000 m² Gross revenue: 1H09 – R$ 125.2 million (18% from exports to over 25 countries) Number of employees: 740 » Main products and annual installed capacity Hardbo
Slide 6: Hardboard
Hardboard Eucatex Hardboard Volume vs Market -3% +65% -13% --26% -13 p.p. 165% 1H08 1H09 100% 87% 100% 100% 100% 87% 74% Eucatex IM Market IM Eucatex EM Market EM Installed Capacity Used Market Share 86% 90% 48% 47% 1H09 1H08 1H09 1H08 Hardboard Hardboard 6
Slide 7: MDP and Flooring Unit
MDP and Flooring Unit Only Latin American plant that laminates wood during the wood panel production process Location: Botucatu, São Paulo Area: Land: 372,000 m² / Built area: 62,000 m² Gross revenue: 1H09 – R$ 167.0 million Number of employees: 382 Main products and annual installed capacit
Slide 8: Wood Panels
Wood Panels Eucatex Wood Panels Volume vs Market +65% -17% --26% -9 p.p. 1H08 165% 1H09 100% 91% 100% 100% 100% 83% 74% Eucatex IM Market IM Eucatex EM Market EM Installed Capacity Used Market Share 91% 94% 15% 14% 1H09 1H08 1H09 1H08 Wood Panels Wood Panels 8
Slide 9: Wood Sales Mix
Wood Sales Mix » Eucatex’s sales mix has a higher share of coated products than peers; » In 1H09, coated products (higher value added) accounted for 94.7% of MDP shipments; and » Lacca products represented 26.5% of MDP sales in 1H09. EUCATEX Wood Panels rate Raw Coated 96% 95% 25% 1H08 1H09 Market -
Slide 10: 2009 FIMMA Launches
2009 FIMMA Launches Lacca Alta Definição TM Eucaprint Dekor TM Eucaprint EcoWood TM 10
Slide 11: Flooring
Flooring Eucatex Flooring Volume vs Market +65% +1p.p. --26% -1 p.p. 1H08 165% 1H09 100% 99% 100% 100% 101% 100% 74% Eucatex IM Market IM Eucatex EM Market EM Installed Capacity Used Market Share 60% 55% 30% 31% 1H09 1H08 1H09 1H08 Laminated Flooring Laminated Flooring 11
Slide 12: Flooring
Flooring » Launch of 3 products in the Prime Line: » Cappuccino » Carvalho Maiorca » Nogueira Natural 12
Slide 13: Paint and Varnish Unit
Paint and Varnish Unit Inaugurated in 1994, this unit is one of the most modern in Latin America, with state-of-the art equipment and a high-tech laboratory Location: Salto, São Paulo Area: Land – 960,000 m² / Built area: 36,000 m² Gross Revenue: 1H09 – R$ 91.9 million Number of Employees: 1
Slide 14: Paints
Paints Installed Capacity Used Market Share 38% 37% 6% 6% 1H09 1H08 1H09 1H08 Paint and Vernish Paint and Vernish Growth 2006 2007 2008 1H09 Eucatex 34% 52% 30% 2% Market (*) 3% 6% 8% -4% * ABRAFATI data 14
Slide 15: Paints
Paints » Launch of Eucatex Extra High Yield » New packaging for Premium Acrylic and new support material 15
Slide 16: Financial Highlights
Financial Highlights Highlights 2Q09 (R$ MM) 2Q09 2Q08 Var. (%) 1H09 1H08 Var. (%) Net Revenue 161.6 164.5 -1.7% 314.4 338.8 -7.2% Cost of Good Sold (108.8) (109.2) -0.4% (203.5) (225.8) -9.9% Gross Income 52.8 55.2 -4.4% 111.0 113.0 -1.8% Gross Margin (%) 32.7% 33.6% -0,9 p.p. 35.3% 33.4% 1,9 p.p.
Slide 17: Sustainability: Forests
Sustainability » Forests • Company owns 62 eucalyptus farms with a combined total of 44,000 hectares • Salto Average Radius – 122 km • Botucatu Average Radius – 50 km • Forests Planted in 2007 – 5,400 ha* • Forests Planted in 2008 – 4,500 ha* • Forests Planted in 1H09 – 1,100 ha* • Forests with ISO
Slide 18: Sustainability: Wood Recycling Project
Sustainability » Wood Recycling Project • Average Radius of Byproduct Collection – 120 km • Processed Volume in 2008 – 120,000 tons • Processed Volume in 1H09 – 56,100 tons • Annualized volume corresponds to 800 hectares of forests, representing annual land investment of R$ 10 million/year Guarantee
Slide 19: Capex
Capex Investments - R$ Million 1H09 New Line T-HDF/MDF 35.1 Forests 12.7 Other Investments in Sustainability 10.0 Total 57.8 Other Investments in Sustainability 17% Forests New Line T- 22% HDF/MDF 61% 19
Slide 20: New T-HDF/MDF Line
New T-HDF/MDF Line » Operational startup of line scheduled for 2010. T-HDF: Product similar to MDF, but features superior density and quality. New T - HDF/MDF Line Installed Capacity Growth (m²) 110 million m²/ year EBITDA Installed Capacity Growth (m³) 275 thousand m³/ year Margin 50 % Additional G
Slide 21: New T-HDF/MDF Line
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Slide 22: New T-HDF/MDF Line
New T-HDF/MDF Line New T-HDF/MDF unit (Thin High Density Fiberboard / Medium Density Fiberboard) 22
Slide 23: New T-HDF/MDF Line
New T-HDF/MDF Line » Delivery of equipment 23
Slide 24: Debt
Debt Debt (R$ MM) 1H09 1H08 Var. (%) Short Term Debt 33.5 17.3 93.2% Long Term Debt 50.8 62.3 -18.5% Gross Debt 84.3 79.6 5.8% Cash and Cash Equivalents 1.8 7.5 -75.7% Net Debt 82.4 72.2 14.3% % Short Term Debt 40% 22% 18 p.p. Net Debt/ EBITDA 0.7 0.5 31.7% Net Debt vs Ebitda Debt Profile 0.8 x 1H09
Slide 25: Capital Market
Capital Market EUCA4 vs. IBOV Close Price Fin. Vol. EV/EBITDA Ratio* (R$) (R$Thous) 10,00 1000 EUCATEX vs. National Peers 9,00 900 8,00 800 8,9 x 7,00 700 6,00 600 7,7 x 5,00 500 4,00 400 3,00 300 2,2 x 2,00 200 1,00 100 - 0 Duratex Satipel EV/EBITDA Ratio** Vol('000) EUCA4 IBOV base 100 EUCATEX vs.
Slide 26: Closing Remarks
Closing Remarks » New T-HDF/MDF line – strategic competitive advantages over peers; » Export Distribution – traditional exporter of thin density fiberboard, with own structure in the United States; » Competitive power and thermal costs – electricity purchase agreement effective through 2012 (includi
Slide 27: IR Contact
IR Contact José Antonio G. de Carvalho Executive Vice President and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations +55 (11) 3049-2361 ri@eucatex.com.br www.eucatex.com.br/ri
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