Sonae Indústria S.G.P.S — Sonae Indústria — Investor Presentation (April 2014)
39 slides from Sonae Indústria S.G.P.S's investor presentation, April 2014
Slide 1: Investor Presentation
Investor Presentation Together, creating the future April 2014
Slide 2: Contents
INVESTOR PRESENTATION | SONAE INDÚSTRIA CONTENTS contents I. Overview II. Highlights of FY 2013 results III. Geographic review of operations IV. More on Sonae Indústria 2
Slide 3: Overview
INVESTOR PRESENTATION | SONAE INDÚSTRIA Overview 3
Slide 4: Shareholder Structure
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Shareholder Structure (as at 31 March 2014) EFANOR 51.356% SONAE INDÚSTRIA 56% SONAE CAPITAL 53% SONAE 100% 100% 100% 88% 50% SONAE MC SONAE SR SONAE RP SONAECOM SONAE SIERRA Food Retail Specialized Retail Telco Shopping Retail Properties Centres 4
Slide 5: Board of Directors
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Board of Directors NON EXECUTIVE Belmiro de Azevedo (CHAIRMAN) Paulo Azevedo Albrecht Ehlers (INDEPENDENT) Javier Vega (INDEPENDENT) EXECUTIVE Rui Correia (CEO) Chris Lawrie (CFO) Jan Bergmann (COO NORTH EUROPE and CITO) 5
Slide 6: Our Strategy
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our Strategy VISION To be recognised as a sustainable world leader in the wood- based panels industry, consistently providing our customers STRATEGIC DIRECTIONS: with the best value products, upholding the highest standards • BUILD A HIGH QUALITY TEAM
Slide 7: Our Operations
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our Operations 7
Slide 8: Our Products (Raw Products)
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our Products (Raw Products) PARTICLEBOARD (PB) • Very versatile; • Suitable for all general uses in furniture and construction. MEDIUM DENSITY FIBERBOARD (MDF) • Excellent substitute for solid wood. MDF Surface and lacquering performance; • Ideal for
Slide 9: Our Products
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our Products (Added valued: MF / VF / HPL / CPL / Flooring…) 9
Slide 10: Our Products
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our Products (… with various applications) Flooring Decorative Solutions: Furniture Construction 10
Slide 11: Our History
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our History Acquisition and modernization of Maia AGLOMA – the largest domestic Start of the Particleboard producer in Portugal international expansion with Oliveira do the acquisition Hospital (where of SPANBOARD SONAE (Soc. Nacional AGLOMA de Estrat
Slide 12: Our History
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Our History Since 1993, Sonae Indústria installed capacity grew through both acquisitions and organic growth. Over the last six years, we have been restructuring. CAPACITY EVOLUTION, since 1992 (million m3) 12
Slide 13: Production Capacity
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Production Capacity (‘000 m3) Total production capacity (raw board) is 6.2 million m3, of which circa 77% is located in Europe ... By Region ... By Product* 3,000 2,740 4,500 4,075 2,500 460 4,000 1,990* 3,500 1,345 2,000 3,000 880 1,500 660 1,415 2,5
Slide 14: Sales (2013)
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Sales (2013) • In 2013, approximately 71% of our sales were generated in Europe • We transform circa 50% of raw materials into value added products Turnover by Market Sales by Product 14
Slide 15: Financial Highlights
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Financial Highlights • Consolidated Turnover of 1.2 billion euros • Recurrent EBITDA of 80 million euros Turnover Recurrent EBITDA million euros million euros 107 1,352 1,321 99 1,293 1,283 1,232 80 71 46 2009 2010 2011 2012 2013 2009 2010 2011 2012 2
Slide 16: Human Resources
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Human Resources 4.2 thousand employees at the end of December 2013 Number of Employees Employees per country (2013) (excluding trainees) (excluding trainees) Netherlands 6,000 South Africa 26 323 5,000 Canada 5,368 4,789 316 Iberian 4,712 4,000 4,408
Slide 17: Human Resources
INVESTOR PRESENTATION | SONAE INDÚSTRIA OVERVIEW Human Resources Increased productivity, mostly driven by the restructuring process recently carried out 1) Number of Employees Productivity BASE 100: 2002 10,000 195.0 181.0 182.3 179.6 176.1 167.0 166.3 8,000 163.8 164.1 170.0 7,805 149.5 145.3 6,944
Slide 18: Highlights of FY13 results
INVESTOR PRESENTATION | SONAE INDÚSTRIA Highlights of FY13 results 18
Slide 19: Highlights
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Highlights OPERATIONAL • Improved performance and increased profitability in Rest of the World operations; • On a comparable basis*, average capacity utilization was up by 2.2 pp versus 2012; • Record OSB production and sales volumes
Slide 20: Turnover
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Turnover -7% Quarterly volumes sold Millions of m 3 1.40 1.34 1,400 1,321 1,232 15.0% 1.27 1.20 1.22 1.22 1.24 1.14 1.17 1,200 1,000 7.5% 10.0% 800 6.5% 600 5.0% 400 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 200 0 0.0% Quarterly A
Slide 21: Variable Costs
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Variable Costs Quarterly average costs (Eur/m3) Base 100:1Q12 1.02 1.00 • Average variable costs per m3 0.98 were up by 0.9%, y.o.y.; 0.96 0.94 • Main impacts came from both 0.92 wood and combustible costs; 0.90 1Q12 2Q12 3Q12 4Q12 1
Slide 22: Financial review
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Financial review P&L ACCOUNT Million euros 2012* 2013 Consolidated turnover 1,321 1,232 Other operational income 34 29 Non Recurrent items of 15 million euros (9.4 EBITDA 97 65 Recurrent EBITDA 99 80 million euros related with severa
Slide 23: Financial review
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Financial review (asset revaluation impact) In 2013 the accounting treatment of tangible assets “Land and Buildings” was changed from a cost model to a revaluation model. P&L Accounts Impacts P&L ACCOUNT 2013 / Million euros 2012* 20
Slide 24: Managing for Cash
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Managing for Cash Additional Fixed Assets (million euros) Working Capital (million euros) xx FY CAPEX 35 35 6 143 14 136 134 23 13 19 93 9 88 6 6 7 6 10 4 6 3 2011 2012 2013 2009 2010 2011 2012 2013 1Q 2Q 3Q 4Q Advance Payments • Add
Slide 25: Net Debt
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Net Debt Comparing to 9M13, Net Debt decreased by 1 million euros and is mainly the result of an improvement in Working Capital. When compared to year end 2012, net debt increased by 13 million euros. Net Debt ND/Rec. EBITDA (Million
Slide 26: Refinancing
INVESTOR PRESENTATION | SONAE INDÚSTRIA HIGHLIGHTS OF FY13 RESULTS Refinancing As part of the defined financing strategy, we expect to be able to refinance most of the upcoming debt maturities in 2014 and to adjust the profile of our debt to estimated cash flow generation. SCHEDULED LOAN REPAYMENTS*
Slide 27: Geographic review of operations
INVESTOR PRESENTATION | SONAE INDÚSTRIA Geographic review of operations 27
Slide 28: Southern Europe: Iberian Peninsula
GEOGRAPHIC REVIEW OF OPERATIONS| SONAE INDÚSTRIA SOUTHERN EUROPE >> IBERIAN PENINSULA PARTICLEBOARD MDF HARDBOARD Competitive FLOORING HPL CHEMICALS Landscape OTHERS* Plants 11 Capacity 1.45 Million m3 Sonae Indústria Sonae Indústria Capacity in Iberian Peninsula F
Slide 29: Southern Europe: France
GEOGRAPHIC REVIEW OF OPERATIONS| SONAE INDÚSTRIA SOUTHERN EUROPE >> FRANCE Competitive PARTICLEBOARD Landscape MDF Plants 2 Capacity 0.61 Million m3 Kronospan M&P Kaindl Sonae Indústria Capacity in France thousands m3 Swiss Krono Group Sonae Indústria MDF Unilin Egger 160 Finsa Linex PB 450
Slide 30: Northern Europe: Germany
GEOGRAPHIC REVIEW OF OPERATIONS| SONAE INDÚSTRIA NORTHERN EUROPE >> GERMANY PARTICLEBOARD MDF OSB FLOORING Competitive HPL CPL IMPREGNATED PAPER Landscape ´+ DIRECT PRINTING Plants 6 Capacity 2.74 Million m3 Kronospan M&P Kaindl Sonae Indústria Capacity in Germany thousan
Slide 31: Rest of the World: Canada
GEOGRAPHIC REVIEW OF OPERATIONS| SONAE INDÚSTRIA REST OF THE WORLD >> CANADA PARTICLEBOARD Competitive Landscape Plants 1 Capacity 0.9 Million m3 Arauco & Flakeboard Sonae Indústria Capacity in Canada thousands m3 Sonae Indústria Temple Inland Plum Creek Aconcagua Sierra Pine Roseburg PB Kaycan®
Slide 32: Rest of the World: South Africa
GEOGRAPHIC REVIEW OF OPERATIONS| SONAE INDÚSTRIA REST OF THE WORLD >> SOUTH AFRICA Competitive Landscape PARTICLEBOARD MDF Plants 2 Capacity 0.52 Million m3 Sonae Indústria Capacity in South Africa thousands m3 Sonae Indústria PG Bison PB 445 MDF 70 0.75 0.52 Installed Raw Board capacity in
Slide 33: More on Sonae Indústria
INVESTOR PRESENTATION | SONAE INDÚSTRIA More on Sonae Indústria 33
Slide 34: Wood and carbon cycle
INVESTOR PRESENTATION | SONAE INDÚSTRIA MORE ON SONAE INDÚSTRIA Wood and carbon cycle 34
Slide 35: CO2 emission mitigation
INVESTOR PRESENTATION | SONAE INDÚSTRIA MORE ON SONAE INDÚSTRIA CO2 emission mitigation Wood-based panels help to mitigate climate change* • Forests are a recognised carbon sink (through photosynthesis); • Forestry products are Carbon Stores; • wood-based panels are actually long-term carbon stores
Slide 36: Sustainable use of wood and recycling
INVESTOR PRESENTATION | SONAE INDÚSTRIA MORE ON SONAE INDÚSTRIA Sustainable use of wood and recycling Wood-based panels incorporate a high percentage of sawmill co-products and wood residues as raw materials* • forestry residues • old or used wood based panels • pallets • old or used furniture * for
Slide 37: Sustainable use of wood and recycling
INVESTOR PRESENTATION | SONAE INDÚSTRIA MORE ON SONAE INDÚSTRIA Sustainable use of wood and recycling Wood-based panels play a key role in the sustainable use of forestry resources as they*: • Represent the natural alternative to solid wood, replacing it in an increasing number of applications; • Al
Slide 38: Cogeneration (CHP)
INVESTOR PRESENTATION | SONAE INDÚSTRIA MORE ON SONAE INDÚSTRIA Cogeneration (CHP) Energy is produced in combined heat and power plants (CHP): • Non-recyclable waste wood (biomass) is used as fuel for thermal energy production to be used in industrial processes; • Surplus heat is used to additional
Slide 39: Safe Harbour
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 uncertainties that