Sonae Indústria S.G.P.S — Investor Presentation (March 2017)
27 slides from Sonae Indústria S.G.P.S's investor presentation, March 2017
Slide 1: Investor Presentation March 2017
INVESTOR PRESENTATION March 2017 1
Slide 2: Contents
SONAE INDÚSTRIA Contents 1. Overview 2. Operations 3. Financial Highlights 2
Slide 3: 1. Overview
SONAE INDÚSTRIA 1.Overview 3
Slide 4: Shareholding structure
SONAE INDÚSTRIA OVERVIEW Shareholding structure • A stable shareholder structure, with a reference shareholder, Efanor; a Portuguese family holding company with other interests in food and non-food retail, shopping centres, telecoms, among other sectors Share capital FREE FLOAT OF ~ 812 million euro
Slide 5: Group structure
SONAE INDÚSTRIA OVERVIEW Group structure • Sonae Indústria owns 50% of Sonae Arauco, 100% of the Boards business in North America and of the Laminates & Components business, together with some real estate assets in Europe Sonae Indústria 100% 100% 100% 50% Real Estate(& Laminates & Tafisa Sonae Othe
Slide 6: Governance structure
SONAE INDÚSTRIA OVERVIEW Governance structure • Experienced and committed management team Paulo Azevedo (Chairman) (1) Carlos Moreira da Silva (Deputy Chairman) José Romão de Sousa Board of Directors Albrecht Ehlers Carlos Moreira da Silva Javier Vega (Chairman) (Chairman) Javier Vega José Romão de
Slide 7: Our products (Raw products)
SONAE INDÚSTRIA OVERVIEW Our products (Raw products) PARTICLEBOARD (PB) • Very versatile • Suitable for all general uses in furniture and construction industries MEDIUM DENSITY FIBERBOARD (MDF) • Excellent substitute for solid wood MDF • Ideal for furniture, flooring and building industry requiremen
Slide 8: Diversified market base and value added portfolio
SONAE INDÚSTRIA OVERVIEW Diversified market base and value added portfolio Proportional Turnover by market | 2016 Proportional Sales by Product| 2016 8
Slide 9: Our products (Value added)
SONAE INDÚSTRIA OVERVIEW Our products (Value added) Strong range of high value added products • Decorative solutions, melamine and veneer faced products, laminates Technical products • E.g. AGEPAN – ideal for construction sector 9
Slide 10: Our industrial footprint
SONAE INDÚSTRIA OVERVIEW (as of March 2017) Our industrial footprint SONAE INDÚSTRIA SONAE INDÚSTRIA * Installed production capacity (raw boards, thousands m3) Portugal 900* • • Maia HPL Vilela – Paredes C Canada 1380* 2290* Germany • Horn HPL + CPL + C 1 Plant Portugal Germany and Spain 6 plants Ca
Slide 11: 2. Operations
SONAE INDÚSTRIA 2.Operations 11
Slide 12: Sonae Arauco Partnership
SONAE INDÚSTRIA OPERATIONS | SONAE ARAUCO SONAE ARAUCO PARTNERSHIP • Combination of two strong, reputable and well- Reference established companies in the sector will leverage on the player in strengths of each one to build a stronger company in Europe and the concern markets South Africa • Top play
Slide 13: … with world class assets
SONAE INDÚSTRIA OPERATIONS | SONAE ARAUCO … with world class assets White River, South Africa Oliv. do Hospital, Portugal Nettgau, Germany Linares, Spain 13
Slide 14: … and with the following Corporate Governance
SONAE INDÚSTRIA OPERATIONS | SONAE ARAUCO … and with the following Corporate Governance BoD (8 Non 4 Members appointed by Sonae Indústria Executive) 4 Members appointed by Arauco BAFC BPC (Board of Audit and (Board Permanent Finance Committee) Committee) CFO direct CEO direct report report Managemen
Slide 15: North American Business
SONAE INDÚSTRIA OPERATIONS | NORTH AMERICA NORTH AMERICAN BUSINESS • A North American market leader in particleboard and melamine faced chipboard Market • The largest particleboard and melamine plant in North leader America and one of the largest in the world • High share of value-added decorative p
Slide 16: Commercial initiatives | North America
SONAE INDÚSTRIA OPERATIONS | NORTH AMERICA Commercial initiatives |North America • Presentation of ViVa collection at the International Woodworking Fair in Atlanta during August 2016 16
Slide 17: Laminates & Components Business
SONAE INDÚSTRIA OPERATIONS | LAMINATES & COMPONENTS LAMINATES & COMPONENTS BUSINESS • Laminates: specially designed for general use in the most demanding situations of wear and impact; excellent alternative to solid wood and stone applications Products • Components: all main types of prefabricated f
Slide 18: Commercial initiatives | Laminates
SONAE INDÚSTRIA OPERATIONS | LAMINATES & COMPONENTS Commercial initiatives | Laminates • Launch of new Innovus®, a global collection in partnership with Sonae Arauco: an unique concept under one catalogue with an updated set of decors including Compacts, HPL, CPL and Worktops 18
Slide 19: 3. Financial Highlights
SONAE INDÚSTRIA 3.Financial Highlights 19
Slide 20: 2016 Full Year Highlights
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS | PROPORTIONAL INDICATORS 2016 FULL YEAR HIGHLIGHTS: Improved performance in all the three main businesses vs. 2015 (1) Proportional Turnover of 639M€ (1) Improvement in profitability; Proportional Recurrent EBITDA of 90M€, 20.7M€ (1) higher than 2015, on a
Slide 21: Financial indicators
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS | PROPORTIONAL INDICATORS Financial indicators* FINANCIAL INDICATORS (unaudited and pro forma ) 2016 Proportional Turnover 639 Proportional Rec. EBITDA 90 Proportional Rec. EBITDA margin 14.1% LEVERAGE Proportional Net Debt 312 Proportional Leverage (Net Debt / L
Slide 22: Proportional Net Debt of 312M€, Proportional Leverage of 3.5x
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS | PROPORTIONAL INDICATORS Proportional Net Debt of 312M€ Proportional Leverage of 3.5x Before Strategic After Strategic Partnership Partnership 31.05.2016 Completion of the strategic partnership Proportional Gross Debt with Arauco as of 31 December 2016, Million
Slide 23: Improved Recurrent EBITDA and higher margins y.o.y.
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Improved Recurrent EBITDA and higher margins y.o.y. Rec. EBITDA (Million €) Proportional Rec. EBITDA (Million) € and Rec. EBITDA margin (%) and Proportional Rec. EBITDA margin (%) 2015 R: Recalculated considering as Discontinued Operations the results of all the
Slide 24: Improved debt repayment profile
SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS Improved debt repayment profile Scheduled loan repayments (1) Million € as of 31 December 2016 Sonae Indústria Debt structure (Million €) (1) Does not include short term facilities. Sonae Arauco Average debt maturity • Sonae Indústria: 3.8 years Debt structure (a
Slide 25: Looking Forward
SONAE INDÚSTRIA LOOKING FORWARD North America: following the completion of the investment in a fifth melamine surfacing line and the launch of our new ViVa collection, we will look to grow our market share in value added products Laminates & Components: seek to improve profitability levels and t
Slide 26: Safe Harbour
SONAE INDÚSTRIA SAFE HARBOUR This document may contain forward-looking information and statements, based on management’s current expectations or beliefs. Forward-looking statements are statements that are not historical facts. These forward-looking statement are subject to a number of factors and un
Slide 27: Glossary of Terms
SONAE INDÚSTRIA APPENDIX Glossary of Terms Asset Value is calculated as follows: [6.8 x LTM Recurrent EBITDA of fully consolidated business (100%)] + Asset Value [market value of inactive sites real estate properties owned 100% by Sonae Indústria, according to external valuations] + [50% x (6.8 x LT
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