Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3

Eucatex S.a. Industria E Comercio — Q4 2008 Earnings Presentation

23 slides from Eucatex S.a. Industria E Comercio's earnings presentation, Apr 2, 2009

  1. Slide 1: 4Q08 Conference Call

    4Q08 Conference Call April 2, 2009

  2. Slide 2: Disclaimer

    Disclaimer This presentation includes forward‐looking statements that are subject to risks and uncertainties 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 guarante

  3. Slide 3: 4Q08 Highlights

    4Q08 Highlights » Financial results  Gross revenue came to R$ 216.4 million in the 4Q08, versus R$ 202.7 million in the 4Q07, up 6.8%, and R$ 865.5 million in 2008, 13.1% higher than in 2007;  Gross margin of 32.3% in 2008, 0.6 p.p. up on the 31.7% recorded in 2007;  EBITDA was R$ 181.1 million i

  4. Slide 4: Revenue Breakdown

    Revenue Breakdown » Highlights  Eucatex’s paints segment represented 20% of revenue in the 4Q08, compared with 18% in the 4Q07.  Lower share of MDP panels in revenue due to the 15-day stoppage at the Botucatu Unit. Gross Revenue Distribuição Breakdown da Receita – 4Q08 Bruta - 4T08 Distribuição Gr

  5. Slide 5: Boards Unit

    Boards Unit » The first and largest unit of the Eucatex Group.  Location: Salto-SP  Area: Land – 540,000 m² / Built area – 153,000 m²  Gross Revenue in 2008: R$ 285 million (20 % from exports to over 25 countries)  Number of employees: 808 » Main products and installed capacity in the year:  Ha

  6. Slide 6: Hardboard

    Hardboard Utilização da Capacidade Installed Instalada Capacity Used Preço x Custo Price - Chapa vs. Cost de Fibra - Hardboard 121 1,1 1.1 91% 84% 101 1 106 81 100 0,9 0.9 12M08 12M07 61 0,8 0.8 Hardboard Chapa de Fibra 41 0,7 Market Share(Domestic Market Share (MercadoMarket) Interno) 0.7 21 0,6 0.

  7. Slide 7: MDP and Flooring Unit

    MDP and Flooring Unit The only plant in Latin America capable of laminating paper during the production of MDP panels.  Location: Botucatu-SP  Area: Land 372,000 m²/ Built area: 62,000m²  Gross Revenue in 2008: R$ 359 million  Number of Employees: 368 Main products and installed capacities in th

  8. Slide 8: MDP Panels

    MDP Panels Utilização da Capacidade Installed Instalada Capacity Used Análise de Analysis Volumeand of Volume e Preço Pricex vs. Custo - MDP Cost - MDP 121,4 1,10 89% 91% 101,4 1,00 100 81,4 0,90 94 12M08 12M07 61,4 0,80 MDP Panels Painéis MDP 41,4 0,70 21,4 0,60 Market Share 1,4 0,50 2007 2008 Volu

  9. Slide 9: Wood Sales Mix

    Wood Sales Mix » Eucatex’s sales mix has larger market share of coated products in relation to market peers; » In the 4Q08, coated products, which have higher value added, represented 98% of the MDP produced; and » Lacca accounted for 24% of MDP sales in 2008. Proporção Sharede of MDP revestido coat

  10. Slide 10: Flooring

    Flooring Utilização da Capacidade Installed Instalada Capacity Used AnáliseofdeVolume Analysis Volume e Preço and Price xvs. Custo Cost- Pisos - Flooring 115 1,20 1.20 110 113 1,00 1.00 62% 55% 0,80 0.80 105 0,60 0.60 12M08 12M07 100 Laminate Flooring 0,40 0.40 Pisos Laminados 100 95 Market Share 0,

  11. Slide 11: Paint and Varnish Unit

    Paint and Varnish Unit Inaugurated in 1994, this unit is one of the most modern in Latin America, thanks to its state-of-the art equipment and high-tech laboratory.  Location: Salto-SP  Area: Land: 960,000 m² / Built area: 36,000 m²  Gross Revenue in 2008: R$ 153 million  Number of Employees: 19

  12. Slide 12: Paints

    Paints Utilização da Capacidade Installed Instalada Capacity Used Analysis of Volume Análise Volumeand Pricexvs. e Preço Cost- -Tintas Custo Paint 140 1,10 1.10 120 1.00 1,00 40% 33% 100 0,90 0.90 80 100 121 0,80 0.80 12M08 12M07 60 0,70 0.70 Market Share (*) 40 20 0,60 0.60 - 0,50 0.50 2007 2008 Vo

  13. Slide 13: Financial Highlights

    Financial Highlights Highlights 4Q08 (R$ MM) 4Q08 4Q07 Var. (%) 12M08 12M07 Var. (%) Net Revenue 175.0 164.4 6.4% 700.9 623.5 12.4% Cost of Good Sold (117.1) (110.6) n.m (474.6) (425.9) n.m Gross Income 57.9 53.8 7.6% 226.4 197.6 14.6% Gross Margin (%) 33.1% 32.7% +0,4 p.p. 32.3% 31.7% +0,6 p.p. Adm

  14. Slide 14: 2008 Financial Result

    2008 Financial Result R$ '000 Monetary Variation - Taxes 30.290 Monetary and Exchange Variation 29.757 Interest on Loans and Financing 7.757 Bank Expenses and Commissions 2.560 Others (6.408) TOTAL FINANCIAL EXPENSES 63.955 14

  15. Slide 15: Sustainability: Forests and Wood Recycling Project

    Sustainability » Forests » Wood Recycling Project • The Company has 57 eucalyptus farms, totaling • Average Scrap Collection Radius – 150 km 44,000 hectares • Volume Processed in 2008 – 88,000 tonnes • Average Radius - Salto – 122 km • This annualized volume would represent 900 hecta • Average Radiu

  16. Slide 16: Capex

    Capex Investments - R$ Million 12M08 Other Sustainability Investments New T-HDF Line 72.0 12% Chemical Sustainability Forests 36.0 1% Forests 23% Improvements in Salto - Other Sustainability Investments 19.0 Hardboard 5% Recycling Improvements in Salto - Hardboard 8.3 2% Improvements in Botucatu - F

  17. Slide 17: New T-HDF Line

    New T-HDF Line » The line is scheduled to commence operations by the end of 2009. T-HDF: Product similar to MDF, but with superior density and quality. New T-HDF Line Installed Capacity Growth (in m²) 110 million m²/ year EBITDA Installed Capacity Growth (in m³) 275 thousand m³/ year Margin 50 % Add

  18. Slide 18: New T-HDF Line

    New T-HDF Line 18

  19. Slide 19: New T-HDF Line

    New T-HDF Line Blueprint of the new T-HDF unit (Thin High Density Fiberboard) 19

  20. Slide 20: Debt

    Debt Debt (R$ Million) 4Q08 4Q07 Var. (%) Short Term Debt 35.7 20.1 77.5% Long Term Debt 57.8 68.3 -15.3% Gross Debt 93.5 88.4 5.8% Cash and Cash Equivalents 11.0 11.0 0.1% Net Debt 82.5 77.4 6.6% % Short Term Debt 38% 23% +15.0 p.p. Net Casth (Debt)/EBITDA 0.6 0.7 -8.0% Net Debt vs Ebtida 0.8 x Deb

  21. Slide 21: Capital Markets

    Capital Markets EUCA4 vs. IBOV EV/EBITDA* Ratio Preço fech. Vol. Fin. EUCATEX x Brazilian Peers (R$) (R$mil) 10,00 1000 9,00 900 4.4 x 4.70 x 4T08 8,00 800 7,00 700 6,00 600 2.4 x 5,00 500 4,00 400 3,00 300 2,00 200 1,00 100 Satipel Duratex* - 0 Vol('000) EUCA4 IBOV base 100 EV/EBITDA** Ratio EUCATE

  22. Slide 22: Final Remarks

    Final Remarks » New T-HDF/MDF line – strategically differentiated from competition; » Exports – traditional exporter of thin boards, with own office in the USA; » Differentiated electric and thermal power costs: electric energy purchase agreement till 2012 (including for the new T-HDF line) and self

  23. Slide 23: IR Contact

    IR Contact José Antonio G. de Carvalho Executive Vice President and Investor Relations Officer (11) 3049-2361 ri@eucatex.com.br www.eucatex.com.br/ri 23

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