Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q3 2008 Earnings Presentation
23 slides from Eucatex S.a. Industria E Comercio's earnings presentation, Nov 12, 2008
Slide 1: 3Q08 Earnings Conference Call
3Q08 Earnings Conference Call November 12, 2008
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
Slide 3: Eucatex Group
Eucatex Group » Founded in 1951 » Gross Revenue: 2007 – R$ 765 million 9M08 – R$ 650 million » 4 industrial plants in São Paulo and 57 eucalyptus plantation farms, totaling 44 thousand ha. » Subsidiary in Atlanta – USA and exportations to more than 25 countries. » Number of Employees: 2,287 3
Slide 4: 3Q08 Highlights
3Q08 Highlights » Financial Results Gross Revenue reached R$ 230.5 million in 3Q08 against R$ 193.4 million in 3Q07, representing and increase of 19.1%. For 9M08, the revenue was R$ 649.1 million, with an increase of 15.4% over the same period of 2007; Gross Margin of 32.0% in 9M08, while in 9M0
Slide 5: Revenue Segmentation
Revenue Segmentation » Highlights Eucatex paint segment now represents 18% of the revenue in 3Q08, against 16% in 3Q07. MDP Panels relative participation reduction due to a 15 day programmed stoppage at the Botucatu Plant. Gross Revenue Breakdown - 3Q08 Gross Revenue Breakdown - 3Q07 11% Hardboa
Slide 6: Hardboard Units
Hardboard Units » Eucatex Group First Plant, it is the biggest fabric unit. Localization: Salto-SP Area: Land – 540 thousand m² / Constructed – 153 thousand m² Gross Revenue: 9M08 – R$ 215 million (being 20 % exported to more than 25 countries) Number of Employees: 827 » Main Products and in
Slide 7: Hardboard
Hardboard » Increase of 14.1% in the gross revenue in 9M08 and market share increase due to the better use of the installed capacity, price improvement and sales mix; » Electric energy supply guaranteed (contract up to 2012) and thermal energy through the wood recycling project; and » In 2008, Eucat
Slide 8: MDP and Floors Units
MDP and Floors Units Only Plant in Latin America able to laminate paper during the process of MDP panels formation. Localization: Botucatu-SP Area: Land 372 thousand m²/Constructed 62 thousand m² Gross Revenue: 9M08 - R$ 267 million Number of Employees: 386 » Main Products and installed capa
Slide 9: MDP Panels
MDP Panels » MDP Panels Gross Revenue reached R$ 211.7 million in 9M08, increase of 11.1% over 9M07, due to better prices and mix; and » In jul/08, a 15 day stoppage occurred due to preventive maintenance and implantation of improvements in the line, which resulted in an increase of 5% in the MDP ca
Slide 10: Wood Sales Mix
Wood Sales Mix » Eucatex sales mix has more participation of coated products in comparison with other market players; and » In 3Q08, the percentage of coated, products of higher aggregate value, represents 98% of the MDP dispatched. MDP coated proportion EUCATEX Standard Coated 98% 85% 26% 3Q07 3Q08
Slide 11: Laminated Flooring
Laminated Flooring » For 9M08, the gross revenue for Laminated Floors reached R$ 54.6 million, increase of 13.5% over 9M07; » Mix fortification, due to the acceptance of the completed launches in 1H08. The products with exclusive patterns and PWG technology – Plug Without Glue– are having a lot of s
Slide 12: Paint and Varnish Units
Paint and Varnish Units Inaugurated in 1994, appointed as one of the most modern of Latin America, due to its last generation equipments and to a laboratory with the most advanced technologies. Localization: Salto-SP Area: Land 960 thousand m² / Constructed 36 thousand m² Gross Revenue: 9M08 -
Slide 13: Paints
Paints » Increase of 35.9% in the gross revenue over 9M07, which reflects the actions below: » Sales team well structured and present in miscellaneous regions of the Country; » New Distribution Centers created; and Growth 2006 2007 9M08 Eucatex 34% 52% 29% » New products and color patterns launches,
Slide 14: Sustainability
Sustainability » Forests » Wood Recycling Product • The Company owns 57 farms of eucalyptus • Average radius of residual capture – 150 km plantation, totaling 44 thousand ha • Volume Processed in 2008 – 88 thousand ton • Average radius of Salto – 122 km • This volume would represent 900 de ha of for
Slide 15: Financial Highlights
Financial Highlights 3Q08 Highlights (R$ MM) 3Q08 3Q07 Change (%) 9M08 9M07 Change (%) Net Revenue 187.1 154.1 21.4% 525.9 459.1 14.6% COGS (131.7) (106.2) 24.0% (357.4) (315.3) 13.4% Gross Profit 55.5 47.9 15.7% 168.4 143.7 17.2% Gross Margin (%) 29.6% 31.1% -1,5 p.p. 32.0% 31.3% +0,7 p.p. Comercia
Slide 16: Capex - Investments
Capex - Investments Investimentos - R$ Million 9M08 Preventive maintenance and Forests 21.1 other support 19% Forests Lease Farms 6.3 Chemistry 25% Expedition T-HDF New Line 17.4 Expansion 3% Bottlenecks Eliminations Botucatu - MDP 10.6 Automation sanding Recycling 6.2 5% Lease Farms Recycling 7% Au
Slide 17: T-HDF New Line
T-HDF New Line » Project is within schedule; » The start of the production for this line is scheduled for the 1st semester of 2009; and » All equipments are scheduled to be delivered until the end of this year. T-HDF: Similar to MDF, but with higher density and quality. New T-HDF Line Installed Capa
Slide 18: T-HDF New Line
T-HDF New Line 18
Slide 19: T-HDF New Line
T-HDF New Line New Fabric Plant T-HDF (Thin High Density Fiberboard) Conclusion until June/2009 19
Slide 20: Financial Debt
Financial Debt Debt (R$ Million) 3Q08 3Q07 Var. (%) Short Term Debt 38.7 31.4 23.0% Long Term Debt 75.3 71.5 5.3% Gross Debt 114.0 103.0 10.7% Cash and Cash Equivalents 4.4 4.5 -1.0% Net Debt 109.6 98.5 11.2% % Short Term Debt 34% 31% +3,0 p.p. Net Casth (Debt)/EBITDA 0.6 0.7 -14.6% Net Debt vs Ebti
Slide 21: Capital Market
Capital Market EUCA4 x IBOV EV/EBITDA* ratio EUCATEX x Brazilian Peers 4,0 x 4,0 x 2,5 x Duratex Satipel EV/EBITDA** ratio EUCATEX x International Peers 11,8 x (***) 6,6 x » EUCA4 price on September 30, 2008: R$ 3.09 » Appreciation from January 1, 2007 to November 4, 2008. 2,5 x EUCA4: +3% IBOV: -11
Slide 22: Final Consideration
Final Consideration » New T-HDF line – strategically differentiated from competitors; » External Market Distribution – traditional exporter of thin wood plates, with own structure in USA; » Cost differential in electric and thermal energy: contract of electric energy up to 2012 (for the new T-HDF li
Slide 23: IR Contacts
IR Contacts José Antonio G. de Carvalho Executive Vice President and IR Director 55 (11) 3049-2361 ri@eucatex.com.br www.eucatex.com.br/ir 23
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