Masisa S.A. · BCS:MASISA
Masisa — BTG Pactual CEO Conference (October 2017)
22 slides from Masisa's conference presentation, October 2017
Slide 1: Masisa - Tu mundo, tu estilo - October 2017
MASISA Tu mundo, tu estilo October 2017
Slide 2: Masisa Overview & Highlights, Strategy, Financial Profile
MASISA OVERVIEW & HIGHLIGHTS STRATEGY FINANCIAL PROFILE
Slide 3: Overview
Overview Masisa is a leading integrated company focused on fiberboard and particleboard production and marketing for furniture and interior design in Latin America #1 In installed capacity in Latin America excluding Brazil #1 In sales in 4 countries in Latin America #1 in retail distribution network
Slide 4: Ownership Structure
Ownership Structure Supported by a Recognized Controlling Group 100% 100% ► Founded in 2003 ► Supports Grupo Nueva’s business activities, providing guidance and control ► Finances the activities of AVINA, foundation and other philanthropic initiatives ► Investment company, focused in the forestry an
Slide 5: Integrated operations focused on manufacturing and marketing of wood boards
Integrated operations focused on the manufacturing and marketing of wood boards Forestry Assets Industrial Assets Distribution Forest assets by country Installed production capacity by Multichannel strategy product and by country Forestry useful land (th. ha.) (thousands of m3) 36% of sales thro
Slide 6: Strategy
MASISA OVERVIEW & HIGHLIGHTS STRATEGY FINANCIAL PROFILE
Slide 7: Masisa is focusing its strategy to increase Stakeholders value
Masisa is focusing its strategy to increase Stakeholders value In the context of the plan announced in November 2016, and after analyzing different strategic options, Masisa decided to strengthen its focus on value-added products and services, and on its forestry business, aiming to unlock and captu
Slide 8: Focused strategy aimed to increase Stakeholders value (cont.)
Focused strategy aimed to increase Stakeholders value (cont.) Unlock and capture value Strategic Strengthen its capital structure and reduce financial risk rationale Position the Company to capitalize on growth opportunities and further develop its value-added strategy 1 Improved long-term pro
Slide 9: Strong asset base and extensive distribution network in the Andean Region
Masisa will continue holding a strong asset base and extensive distribution network in the Andean Region Masisa’s current geographic footprint Masisa’s pro forma geographic footprint 77 46 46 30 30 29 29 22 22 6 6 2 49 49 55 # of Placacentros: 316 # of Placacentros: 182 Forestry + industrial assets
Slide 10: Masisa will continue owning and operating its forestry assets
Masisa will continue owning and operating its forestry assets, which are an important reserve of value Forestry assets as of June‘17 (US$ million)(1) (2) Planted ha (th.) 49 47 93 189 Total ha (th.) 83 72 147(2) 302 222 3 543 318 Chile Argentina Venezuela Total (1) Value based on IFRS fair value (ma
Slide 11: Improved profitability reflected on a higher pro forma EBITDA margin
Improved profitability reflected on a higher pro forma EBITDA margin Sales and EBITDA breakdown by country(1) 2017 E 2018 E (2) Venezuela Venezuela 9% Recurring revenues(3) 23% Argentina (Forestry) Andean Mexico US$ 920 Region 6% US$ 585 7% million 66% million Argentina (Forestry) 3% Andean Region 8
Slide 12: Higher contribution from the forestry business improves profitability
Higher contribution from the forestry business improves long-term profitability and stability Sales and EBITDA breakdown by line of business 2017 E 2018 E(1) Forestry Forestry Recurring revenues(2) 5% 8% US$ 920 US$ 585 Industrial million 95% million Industrial 92% Forestry Forestry Recurring EBITDA
Slide 13: Masisa will enhance its financial flexibility and improve its capital structure
Masisa will enhance its financial flexibility and improve its capital structure Net financial debt / total EBITDA benchmark (LTM March ‘17) Company int’l credit rating n.a. B+ BBB- BBB- n.a. n.a. BB BB- n.a. Country credit rating Ba1 A+ A+ A+ AAA BB AA+ AAA AAA 5,4x 4,2x 3,8x 3,5x 2,7x 2,5x - 3,0x 2
Slide 14: The plan is expected to be accretive on a recurring pro forma basis
The plan is expected to be accretive on a recurring pro forma basis Pre-tax accretion analysis 2017E pro forma (US$ million) Accretive +18% +28 -51 +15 -43 +35 61 45 38 (1) EBIT 2017E Biological Financial EBT Decrease in Savings Argentina, Pro forma asset expenses 2017E interest (3) from the Brazil
Slide 15: Share price increased 35.1% during 2017
Share price: Increased 35.1% during 2017, validating Masisa’s strategy of reducing financial risk, improving operating efficiency and resizing the company 55 5.000 4.500 50 4.000 3.500 45 3.000 40 2.500 $34.79 2.000 35 1.500 1.000 30 500 25 0 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 s
Slide 16: Financial Profile
MASISA OVERVIEW & HIGHLIGHTS STRATEGY FINANCIAL PROFILE
Slide 17: Debt profile
Debt profile DEBT MATURITY PROFILE (US$ MM) NET FINANCIAL DEBT (US$ MM) Post refinancing Bonds Bank debt 245 -US$ 109 MM 217 758 713 707 700 686 667 678 649 224 97 205 46 59 56 53 11 24 24 51 48 32 29 21 12 sep-15 dec-15 mar-16 jun-16 sep-16 dec-16 mar-17 jun-17 2017 2018 2019 2020 2021 2022 + To Ju
Slide 18: 2Q17 EBITDA
2Q17 EBITDA Industrial EBITDA US$MM +25.6% 1.5 2.0 24.2 2.9 19.3 0.3 2.2 Industrial Andean Argentina Brazil Mexico Venezuela Industrial region* EBITDA EBITDA 2Q’16 2Q’17 Forestry EBITDA US$MM -59.9% 23.8 0.5 0.7 14.3 9.5 1.2 Forestry Andean Argentina Brazil Venezuela Forestry region* EBITDA EBITDA 2
Slide 19: EBITDA evolution
EBITDA evolution Recurring EBITDA US$MM 136 134 11 122 15 22 9 110 29 México 19 Brasil 31 36 5 14 Arg. Ind. 21 18 Arg. For. 18 19 17 18 Chile For. 30 73 30 73 14 Chile Ind. 25 64 61 25 23 30 22 2014 2015 2016 2017E Venezuela 55 23 16 7 2014 2015 2016 2017E 19 EBITDA
Slide 20: Key takeaways
Key takeaways Masisa is strengthening its focus on value-added products and services, and on the forestry business The Company will focalize its industrial business in the Andean Region, Central America, USA, Canada and other export markets, serving them from its facilities in Chile and Venezuel
Slide 21: Forward-looking statements disclaimer
This presentation may contain projections or other forward-looking statements related to MASISA that involve risks and uncertainties. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. There is no assurance that the expect
Slide 22: Masisa
MASISA Tu mundo, tu estilo