Sonae Indústria S.G.P.S — Sonae Indústria — FY2008 Earnings Presentation
21 slides from Sonae Indústria S.G.P.S's earnings presentation, March 2009
Slide 1: Highlights of FY 2008 Results
SONAE INDÚ INDÚSTRIA HIGHLIGHTS OF FY 2008 RESULTS March 2009 1
Slide 2: Consolidated Operational Review
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Opposite to a very good year in 2007, 2008 shows a significant decline in our performance. There are, mainly, two reasons for this decline - volumes and costs. Volumes have decline as a result of the demand decrease follow
Slide 3: Consolidated Operational Review
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW However, these consecutive stoppages proved insufficient to prevent a structural and conjectural excess capacity in the market. Consequently, and as previously announced in January, we have entered into negotiations with a
Slide 4: Consolidated Operational Review
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW When compared to FY 2007: Consolidated Turnover decreased 14% to 1,769 million euros; Recurrent EBITDA was 100 million euros, representing an EBITDA margin of 6%. TOTAL EBITDA in FY2008 is 139 million euros. Non recurrent
Slide 5: Consolidated Operational Review
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Our quarterly evolution in profitability: TURNOVER & RECURRENT EBITDA Millions of TURNOVER & RECURRENT EBITDA TURNOVER & RECURRENT EBITDA Millions of Euros Millions of IBERIA CENTRAL EUROPE REST OF THE WORLD Euros Euros 18
Slide 6: Price and Cost Evolution
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA PRICE AND COST EVOLUTION Price pressure in the 1H 2008 (OSB) and 2Q 2008 (PB); Wood costs increased significantly at the beginning of 2008 (in Canada and S. Africa) and chemical costs (urea and methanol) have recorded high levels since beginning of 2008.
Slide 7: Geographic Review of Operations: Iberia
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA GEOGRAPHIC REVIEW OF OPERATIONS IBERIA Since the 3Q 2007 Spain is facing an economic slowdown following the real estate bubble. New housing permits decline 60%1) in 2008. This severe slowdown led to a reduction in our sales volumes of 15% YoY. Despite th
Slide 8: Geographic Review of Operations: Central Europe
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA GEOGRAPHIC REVIEW OF OPERATIONS CENTRAL EUROPE (Germany, France and the UK) Also In CE, wood based panel demand has been negatively affected by the economic slowdown in the construction and furniture industry. In Germany Our sales volumes decreased in FY
Slide 9: Geographic Review of Operations: Central Europe (cont.)
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA GEOGRAPHIC REVIEW OF OPERATIONS CENTRAL EUROPE (cont.) In France, we continue to face a very negative market situation; housing starts decline by 16% (YoY) 2) ; furniture industry has been quite slow Volumes sold and turnover decreased by 25% compared to
Slide 10: Geographic Review of Operations: Central Europe (cont.)
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA GEOGRAPHIC REVIEW OF OPERATIONS CENTRAL EUROPE (cont.) In the UK house prices are falling and housing starts decline by 37%3) (YTD Jan- Nov.) Our volumes sold decreased by 17% when compared to 2007 This fall combined with the need to control stocks, led
Slide 11: Geographic Review of Operations: Rest of the World
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA GEOGRAPHIC REVIEW OF OPERATIONS REST OF THE WORLD (Canada, Brazil and South Africa) Our performance in Canada, Brazil, and South Africa reflects a combination of mixed market trends Brazil, experienced a resilient market situation in FY 2008 but the inte
Slide 12: Geographic Review of Operations: Rest of the World
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA GEOGRAPHIC REVIEW OF OPERATIONS REST OF THE WORLD (Canada, Brazil and South Africa) In S. Africa macroeconomic environment continues to be positive despite the power cuts occurred in the 1Q 2008. The depreciation of the ZAR against the USD worsened the c
Slide 13: Financial Review
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA FINANCIAL REVIEW In FY 2008 we achieved the following results: Total recurrent EBITDA totalled 100 million euros, which includes the negative affect of the increase in chemical cost close to 55 million euros Total EBITDA totalled 139 million euros, which
Slide 14: Financial Review
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA FINANCIAL REVIEW The increase in gross fixed assets in FY 2008 was 110 million euros, which includes: 15 million euros for the Line 2 project in Canada; 15 million euros is derived from biomass energy projects in Darbo and Oliveira do Hospital ; 14 milli
Slide 15: Profit & Loss Account
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA PROFIT & LOSS ACCOUNT (euro millions) 2007 1Q'08 2Q'08 3Q'08 4Q08 2008 Turnover 2,066 498 467 431 373 1,769 Other Operational Income 129 60 17 13 25 114 EBITDA 335 88 38 17 (4) 139 Recurrent EBITDA 302 41 38 19 2 100 Recurrent EBITDA Margin % 14.6% 8.3%
Slide 16: Balance Sheet
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA BALANCE SHEET 2007 1Q'08 1H'08 9M'08 2008 Non Current Assets 1,517 1,458 1,467 1,476 1,386 Tangible Assets 1,343 1,286 1,294 1,296 1,203 Goodwill 100 98 95 107 104 Deferred Tax 49 48 54 52 54 Other Non Current Assets 26 26 24 21 26 Current Assets 651 739
Slide 17: Debt
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA DEBT In 2008, our net debt increased by 92 million euros. This includes the dividends paid in May (39 million euros) and the acquisition of the Masisa’s stake in Tafisa Brasil (48 million euros) Our financial costs are lower than in 2007, benefiting from
Slide 18: Scheduled Loan Repayments
HIGHLIGHTS OF FY 2008 RESULTS SONAE INDÚSTRIA SCHEDULED LOAN REPAYMENTS SCHEDULED LOAN REPAYMENTS (as of 31st. Dec. 2008) 300 290 280 270 260 250 240 230 220 210 200 190 180 146 170 160 150 140 130 120 110 100 90 80 70 164 60 108 50 100 114 103 100 40 30 20 10 45 34 0 1H 2009 2H 2009 2010 2011 2012
Slide 19: Looking Forward
LOOKING FORWARD 19
Slide 20: Looking Forward
SONAE INDÚSTRIA LOOKING FORWARD We are not expecting market conditions to improve in the near and mid-term Variable cost will decrease, as urea and methanol prices have declined We will continue adapting our fixed cost structure to the lower level of production Additionally, we will continue to clos
Slide 21: Sonae Indústria
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