Sonae Indústria S.G.P.S — Sonae Indústria — Investor Presentation (December 2011)
52 slides from Sonae Indústria S.G.P.S's investor presentation, Dec 7, 2011
Slide 1: Investor Presentation 7th December 2011
INVESTOR PRESENTATION 7th December 2011
Slide 2: Overview
more.better.faster 2011 SONAE INDUSTRIA WAY
Slide 3: Shareholder Structure
OVERVIEW SONAE INDÚSTRIA SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE AT 30th SEPTEMBER 2011 EFANOR FREE FLOAT 51.356% 48.644% Sonae Indústria SGPS 3
Slide 4: Our Operations
OVERVIEW SONAE INDÚSTRIA OUR OPERATIONS 4 As of 7th December 2011
Slide 5: Our Products
OVERVIEW SONAE INDÚSTRIA OUR PRODUCTS OVER 90% OF OUR RAWBOARD CAPACITY IS TO MANUFACTURE PB & MDF. PB MDF OSB Very versatile Excellent substitute for Suitable for structural and solid wood non-structural applications Suitable for all general in the construction uses in furniture and Ideal for fur
Slide 6: Our Products
OVERVIEW SONAE INDÚSTRIA OUR PRODUCTS WITH VARIOUS APPLICATIONS KITCHEN / OFFICE / HOME FURNITURE CONSTRUCTION FLOORING DECORATION PACKAGING 6
Slide 7: Sales
OVERVIEW SONAE INDÚSTRIA SALES IN 2010, APPROXIMATELY 77% OF OUR SALES WERE GENERATED IN EUROPE WE TRANSFORM MORE THAN 50% INTO VALUE ADDED PRODUCTS SALES BY MARKET SALES BY PRODUCT S.AFRICA OTHERS 11% FLOORING 8% 2% PB IBERIAN P. 21% CANADA 25% T&G 12% 5% CTS UK 9% 5% MDF FRANCE 17% 11% MF HB 2
Slide 8: Our History
OVERVIEW SONAE INDÚSTRIA OUR HISTORY Acquisition and SONAE (Sociedade modernization of Nacional de AGLOMA – the largest Estratificados, SARL) domestic Particleboard was established to Starting the producer in Portugal international manufacture decorative High expansion with the Pressure laminates ac
Slide 9: Our History
OVERVIEW SONAE INDÚSTRIA OUR HISTORY SINCE 1993 SONAE INDÚSTRIA’S INSTALLED CAPACITY GREW THROUGH BOTH ACQUISITIONS AND ORGANIC GROWTH. 2005: JV with 2008 and 1997: Investment period in Tarkett 2009: 1999-2004: (Germany) Greenfield plants in Brazil, Restructuring of Glunz Restructuring South Afric
Slide 10: Wood Based Panel Players
OVERVIEW SONAE INDÚSTRIA WOOD BASED PANEL PLAYERS WE ARE ONE OF THE LARGEST GLOBAL MANUFACTURERS OF WOOD BASED PANELS IN EUROPE AND WORLDWIDE EUROPE Thousands of m3 Thousands of m 3 WORLDWIDE M&P Kaindl (Kronospan) 14.370 M&P Kaindl (Kronospan) 14.913 Sonae Indústria 7.455 Sonae Indústria 6.040 Pf
Slide 11: Capacity Production
OVERVIEW SONAE INDÚSTRIA CAPACITY PRODUCTION TOTAL CAPACITY (RAWBOARD) IS 7.5 MILLION M3, APPROXIMATELY 80% OF WHICH IS LOCATED IN EUROPE. SONAE INDÚSTRIA RAWBOARD CAPACITY BY REGION SONAE INDÚSTRIA RAWBOARD CAPACITY BY PRODUCT * Thousands of m 3 Thousands of m 3 6.000 4.250 5.155 4.500 5.000 4.00
Slide 12: Overview Figures
OVERVIEW SONAE INDÚSTRIA OVERVIEW FIGURES FY 10 CONSOLIDATED TURNOVER OF 1.3 BILLION EUROS RECURRENT EBITDA OF 71 MILLION EUROS; MARGIN OF 6% TOTAL EBITDA OF 53 MILLION EUROS, WHICH INCLUDES CHARGES FOR RESTRUCTURING COSTS AND 7 MILLION EURO GAIN FROM THE SALE OF THE LURE PLANT. TURNOVER & REC
Slide 13: Geographical Regions
OVERVIEW SONAE INDÚSTRIA GEOGRAPHICAL REGIONS WITH VARYING LEVELS OF PROFITABILITY BETWEEN OUR 3 MAIN GEOGRAPHICAL REGIONS: € Mn RoWTurnover & Recurrent EBITDA Margin 362 263 251 207 197 17,0% € Mn TURNOVER & RECURRENT EBITDA CENTRAL EUROPE 15,3% 14,1% 1.200 15,0% 13,7% 980 1.000 10,0% 6,7% 800 69
Slide 14: Highlights of 9M11 Results
HIGHLIGHTS OF 9M11 RESULTS 14
Slide 15: Consolidated Operational Review
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Comparing 3Q11 with 3Q10: Turnover increased by 4%, to 326 million Euros Recurrent EBITDA increased by 2% to 29 million Euros Net losses reduced by 17% to 9 million Euros Comparing 9M11 with 9M10: Turnover increased b
Slide 16: Consolidated Operational Review
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Consolidated turnover in 9M11 reached 1,034 million Euros, 6 % above last year Recurrent EBITDA margin recovered 2pp from 9M10 to 9M11, reaching 81 million Euros (when compared with 57 million Euros in 9M10) € Mn Consolid
Slide 17: Consolidated Operational Review
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Millions of m3 Millions Consolidated Volumes Sold of m3 Consolidated Volumes Sold 2,50 Volumes sold have +1% been increasing in 2,00 +5% 4,10 all countries except 4,10 1,41 1,39 1,39 1,41 1,50 1,24 1,29 1,30 4,05 Canada 4,0
Slide 18: Variable Costs Evolution
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA VARIABLE COSTS EVOLUTION Consolidated Quarterly average costs (Eur/m3) Base 100 - 1Q10 Variable costs have been moving up, because of strong urea price 1,4 increases. Urea represents 1,3 around 50% of the chemicals 1,2 used in the production cycle. 1,1 1,
Slide 19: Capacity Utilization and Volumes Sold
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA CAPACITY UTILIZATION AND VOLUMES SOLD Capacity utilization in 9M11 is 4pp higher when compared to 9M10 and 11pp higher when compared to 9M09. Millions of m 3 12 100% 10,1 9,8 9,7 10 9,3 8,7 8,4 80% 2,2 8,0 2,8 7,5 7,5 7,5 7,5 8 3,6 7,5 7,5 3,4 2,9 60% 2,5
Slide 20: Geographic Review of Operations: Iberia
HIGHLIGHTS OF 9M11 RESULTS Geographic Review of Operations IBERIA In Iberia, during 9M11 when compared with 9M10: Turnover increased by 7% and volumes sold by 4% Average variable costs are 9% above Recurrent EBITDA Margin moved 1pp down, due to an accounting effect, otherwise it would have b
Slide 21: Geographic Review of Operations: Central Europe
HIGHLIGHTS OF 9M11 RESULTS Geographic Review of Operations CENTRAL EUROPE (Germany, France and the UK) In during 9M11 when compared with 9M10: Turnover increased by 11% and volumes sold by 1% Average variable costs are 11% above Recurrent EBITDA Margin moved 5pp up, illustrating the effectiv
Slide 22: Geographic Review of Operations: Rest of the World
HIGHLIGHTS OF 9M11 RESULTS Geographic Review of Operations REST OF THE WORLD (Canada and South Africa) In RoW region, when comparing 9M11 with 9M10: Turnover and volumes sold remained flat, despite the lower activity in Canada which was compensated by the stronger sales volumes in S.A. Recurre
Slide 23: Capex, Working Capital
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA CAPEX, WORKING CAPITAL WORKING CAPITAL decreased by 7 million Euros in 3Q11, due to the reduction of trade receivables INVESTMENTS continue to be closely monitored Additional Fixed Assets Million 30 28 4 25 WORKING CAPITAL: 2009 - 2011 22 21 20 7 € Mn 7
Slide 24: Net Debt
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA NET DEBT Compared to 1H11, NET DEBT was reduced by 4 million Euros. 3Q09: Sale of Brazil operations Million of Euros 950 Sale of Lure plant 900 22 850 126 800 917 54 895 79 13 750 3 17 1 4 11 700 769 757 757 732 732 718 718 728 724 650 1Q09 1H09 9M09 FY09
Slide 25: Net Debt / EBITDA
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA NET DEBT/ EBITDA The Net Debt to Recurrent EBITDA ratio for the last 12 months is 7.6x, which is down from 10.0x, one year ago. 950 25 Net Debt 23 900 ND/Rec.Ebitda 21 19 850 17 800 15 13 750 11 9 700 7 650 5 1Q'11 2Q'11 3Q'11 1Q'09 2Q'09 3Q'09 4Q'09 1Q'1
Slide 26: Scheduled Loan Repayments
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA SCHEDULED LOAN REPAYMENTS As already announced, we raised in July 81 million CADs at Tafisa Canada SCHEDULED LOAN REPAYMENTS* (as of 30th September 2011) 180 160 140 120Refinancing already assured 100 80 154 60 113 40 79 57 64 20 50 51 27 33 0 2H11 1H12 2
Slide 27: Profit & Loss Account
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA PROFIT & LOSS ACCOUNT (euro millions) 3Q11/ 3Q11/ (euro millions) 9M11/ 3Q10 2Q11 3Q11 3Q10 2Q11 9M10 9M11 9M10 Consolidated Turnover 313 356 326 4% (9%) 972 1.034 6% Other Operational Income 8 12 18 120% 51% 53 38 (28%) EBITDA 25 34 26 5% (23%) 43 78 80% R
Slide 28: Balance Sheet
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA BALANCE SHEET (euro millions) 2010 1Q11 1H 11 9M11 Non Current Assets 1.135 1.103 1.081 1.049 Tangible Assets 984 953 935 905 Goodwill 94 93 93 93 Deferred Tax 40 38 36 34 Other Non Current Assets 17 19 17 17 Current Assets 351 383 398 398 Inventories 129 1
Slide 29: Looking Forward
CR. ayy ... today, tomorrow, ~~ ae let's be better oa~ ees together! LOOKING FORWARD 29
Slide 30: Looking Forward
HIGHLIGHTS OF 9M11 RESULTS SONAE INDÚSTRIA LOOKING FORWARD We expect to be able to continue improving performance, when compared with same periods of the previous year, supported by operational efficiency gains and better market positioning. We will closely monitor the macroeconomic environment
Slide 31: Our Strategy
... better performance faster _ processes 31
Slide 32: Our Strategy: Fit with Mission, Vision, Values and Principles
SONAE INDÚSTRIA OUR STRATEGY Fit with Mission, Vision Values and Principles VISION To be recognised as a sustainable world leader in the wood-based panels industry, consistently providing our Strategic Directions customers with the best value products, upholding the highest standards of service and
Slide 33: Our Strategy: Strategic Initiatives
SONAE INDÚSTRIA OUR STRATEGY Strategic Initiatives Build a high quality team with talented, skilful and fully engaged people People development and alignment program is underway Create a high performance culture fostering Operational Excellence and Innovation A structured program was launche
Slide 34: Geographic Review of Operations
GEOGRAPHIC REVIEW OF OPERATIONS 34
Slide 35: Iberia
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA IBERIA Sonae Indústria Iberian Capacity Thousands m 3 IBERIA COMPETITIVE LANDSCAPE MDF 500 PB 1.220 HB 70 PARTICLEBOARD MDF FLOORING HARDBOARD HPL CHEMICALS OTHERS (FURNITURE, COMPONENTS, WOOD VENEER) 35 As of 7th December 2011
Slide 36: Iberia: Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA IBERIA IBERIA COMPETITIVE LANDSCAPE INSTALLED RAWBOARD CAPACITY IN IBERIA - TOP PLAYERS Millions m3 PLANTS Finsa/Utisa 2,92 * 12 CAPACITY Sonae Indústria 1,79 1,79 Million m3 Interbon 0,97 CAPACITY UTILIZATION 9M11 70% Losan 0,38 Tablicia 0,37 * Finsa
Slide 37: Central Europe
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA CENTRAL EUROPE CENTRAL EUROPE Sonae Indústria Central Europe Capacity Thousands m 3 COMPETITIVE LANDSCAPE MDF 1.200 PB OSB 2.590 460 UK GERMANY FRANCE PARTICLEBOARD MDF HPL CPL OSB 37 As of 7th December 2011
Slide 38: Central Europe: Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA CENTRAL EUROPE CENTRAL EUROPE* COMPETITIVE LANDSCAPE PLANTS Millions m3 12 INSTALLED RAWBOARD CAPACITY IN CENTRAL EUROPE - TOP PLAYERS CAPACITY 4.25 Million m3 Sonae Indústria 4,25 CAPACITY UTILIZATION 9M11 Egger 3,79 77% Kronospan M&P Kaindl 2,60 Pfle
Slide 39: Rest of the World: North America
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA NORTH AMERICA PLANTS REST OF THE WORLD 1 NORTH AMERICA CAPACITY COMPETITIVE LANDSCAPE 0.9 Million m3 CAPACITY UTILIZATION 9M11 74% INSTALLED RAWBOARD CAPACITY IN NORTH AMERICA (PB+MDF) - TOP PLAYERS M Flakeboard 2,74 Roseburg 2,44 Pfleiderer 1,90 Templ
Slide 40: Rest of the World: South Africa
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA SOUTH AFRICA Sonae Indústria S.A. Capacity Thousands m 3 REST OF THE WORLD SOUTH AFRICA COMPETITIVE LANDSCAPE PB 445 MDF 70 SOUTH AFRICA PARTICLEBOARD MDF 40 As of 7th December 2011
Slide 41: South Africa: Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA SOUTH AFRICA REST OF THE WORLD SOUTH AFRICA COMPETITIVE LANDSCAPE PLANTS 2 INSTALLED RAWBOARD CAPACITY IN SOUTH AFRICA - TOP PLAYERS CAPACITY Millions m3 0,52 Million m3 CAPACITY UTILIZATION 9M11 81% PG Bison 0,71 Sonae Indústria 0,52 41 As of 7th Dece
Slide 42: Corporate Governance
more.better.faster 2011 SONAE INDUSTRIA WAY 42
Slide 43: Board of Directors
CORPORATE GOVERNANCE SONAE INDÚSTRIA BOARD OF DIRECTORS Belmiro de Azevedo [Chairman] BOARD OF Álvaro Cuervo García DIRECTORS Paulo Azevedo Albrecht Ehlers Rui Correia [President] EXECUTIVE João Paulo Pinto [Vice - President] COMMITTEE Christophe Chambonnet UNITED SOUTH IBERIA GERMANY FRANCE KINGDOM
Slide 44: Board Committees
CORPORATE GOVERNANCE SONAE INDÚSTRIA BOARD COMMITTEES BAFC BOARD AUDIT AND ÁLVARO CUERVO GARCÍA (IND) FINANCE COMMITTEE PAULO AZEVEDO ALBRECHT EHLERS (IND) SREEC BOARD SOCIAL RESPONSIBILITY, ENVIRONMENT COMMITTEES AND ETHICS COMMITTEE BELMIRO DE AZEVEDO ALBRECHT EHLERS (IND) BNRC BOARD NOMINATION AN
Slide 45: More on Sonae Indústria
... better performance faster _ processes 45
Slide 46: Human Resources
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA HUMAN RESOURCES Approximately 4.8 thousand Employees at the end of December 2010 Number of Employees by country Number of Employees & Productivity 1) S.A. The Number of Employees Productivity 328 Netherlands BASE 100: 2002 Canada 16 313 10.000 195,0 181,0 Ib
Slide 47: Sustainability
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA SUSTAINABILITY SUSTAINABILITY REPORT OF SONAE INDÚSTRIA 2008 and 2009 report can be found on the website www.sonaeindustria.com Following issues are included Vision, Mission, Values and Principles Code of Conduct Communication Strategy Sustainability
Slide 48: CO2 Emissions Mitigation
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA CO2 EMISSIONS 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 if used in construction
Slide 49: Sustainable Use of Wood and Recycling
MORE ON SONAE INDÚSTRIA 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 pallets old or used wood based panels old or used furniture 49 for further details please
Slide 50: Sustainable Use of Wood and Recycling
MORE ON SONAE INDÚSTRIA 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 allow significant dimensiona
Slide 51: Cogeneration (CHP)
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA COGENERATION (CHP) ENERGY IS PPRODUCED 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 produce electricity to su
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