Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — 4Q09 Earnings Presentation
29 slides from Eucatex S.a. Industria E Comercio's earnings presentation, Mar 10, 2010
Slide 1: 2010 APIMEC
© eUCaAtED 2010 APIMEC March 10, 2010
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 a guarant
Slide 3: Agenda
Agenda Overview Timeline Competitive Advantages Growth Drivers Installed Capacity & Market Share New T-HDF / MDF Plant 4Q09 Highlights Operating Data Financial Data Sustainability Corporate Governance Capital Markets Awards Contacts 3
Slide 4: Overview
Overview Products / Installed Unit Capacity Location: Salto, SP Hardboard / 240,000 m³ Hardboard Area: Land – 540,000 m² Panels and Doors / 1.8 million pieces Installations – 153,000 m² Painting Capacity / 50 million m² Number of employees: 739 MDP Location: Botucatu, SP MDP / 430,00
Slide 5: Overview
Overview Board Unit – Salto, SP Panel and Flooring Unit – Botucatu, SP Paint and Varnish Unit – Salto, SP Forestry Unit – Bofete, 5SP
Slide 6: Timeline
Timeline Conclusion of - New Phase for Company Judicial Inauguration of Reorganization 2010 - Inauguration of New T-HDF/MDF Line Recycling Line Process - Recovery in Growth 2009 Inauguration of 2008 subsidiary ENA Inauguration of 2007 MDP Plant - Botucatu, SP 2004-07 Start of Construction 2001 of T-
Slide 7: Competitive Advantages
Competitive Advantages Innovation, creativity and differentiation Strategic presence in key consumer centers and sales team operating nationwide Partnerships with large foreign companies to distribute products in global markets Environmental Responsibility: Green Seal (FSC) for all products, support
Slide 8: Growth Drivers
Growth Drivers Consumer Confidence Index (Base 100) Average Income of Consumers (R$) 1,374 117.2 116.4 1,302 112.4 1,260 1,379 100.5 1,243 1,183 100.3 1,203 1,169 jan-06 jan-07 jan-08 jan-09 jan-10 jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 Source: FGV Source: FGV Unemployment Rate (%)
Slide 9: Growth Drivers
Growth Drivers Financing, Monthly Average (FGTS + SBPE) Units Financed, Monthly Average (FGTS + SBPE) 4.000 R$ million 60.000 57,410 3,585 3,384 3.500 55.000 3.000 48,524 50.000 2.500 2,098 43,325 43,730 45.000 2.000 1,467 1.500 40.000 1.000 35.000 2006 2007 2008 2009 2006 2007 2008 2009 Source: Cen
Slide 10: Installed Capacity & Market Share
Installed Capacity & Market Share INSTALLED CAPACITY Hardboard MDP Laminate Flooring Paint and Varnish 9% 13% 17% 18% 54% 52% 60% 55% 91% 87% 83% 82% 46% 48% 45% 40% 2008 2009 2008 2009 2008 2009 2008 2009 MARKET SHARE Hardboard MDP Laminate Flooring Paint and Varnish 54% 53% 69% 68% 87% 86% 93% 93%
Slide 11: New T-HDF / MDF Plant
New T-HDF / MDF Plant » T-HDF: Similar to MDF, but with superior density and quality » Technology developed for applications requiring high mechanical resistance, such as floors, doors, closet backings, drawers and partitions. » Operational startup scheduled for 3Q10 New T-HDF/MDF Line Expansion in
Slide 12: New T-HDF / MDF Plant
New T-HDF / MDF Plant 12
Slide 13: 4Q09 Highlights
4Q09 Highlights Judicial Reorganization Concluded On November 6, 2009, Judge Renata Cristina Rosa da Costa e Silva of the 3rd Court of the Judicial District of Salto approved the CONCLUSION OF THE JUDICIAL REORGANIZATION PROCESS OF EUCATEX S.A. IND. E COM., given the company's fulfillment of the obl
Slide 14: 4Q09 Highlights
4Q09 Highlights Financial Results Gross Revenue was R$229 million in 4Q09, up 5.8% from R$216 million in 4Q08. In 2009, Gross Revenue was R$829 million, down 4.2% from R$865 million in 2008. Gross Income was R$62.8 million in 4Q09 for Gross Margin of 34.2%, up from R$57.9 million and 33.1% in 4Q08,
Slide 15: Operating Data
Operating Data Sales Revenue Breakdown by Product R$216.4 million R$865.5 million 33% 33% 10% 20% 5% 2008 33% 33% 9% 18% 8% 4Q08 R$229.0 million R$829.1 million 4Q09 2009 31% 32% 10% 22% 5% 30% 31% 11% 23% 4% Sales Revenue Breakdown by Segment 2008 46% 30% 11% 5% 4% 4% R$865.5 million 2009 44% 35% 9
Slide 16: Financial Data
Financial Data Change Change Highlights (R$ million) 3Q09 4Q09 4Q08 2009 2008 (%) (%) Net Revenue 168.3 183.9 175 5.10% 666.7 700.9 -4.90% Cost of Goods Sold -116.5 -121.1 -117.1 3.40% -441.1 -474.6 -7.00% Gross Profit 51.7 62.8 57.9 8.50% 225.5 226.4 -0.40% Gross Margin (%) 30.70% 34.20% 33.10% 1.1
Slide 17: Financial Data
Financial Data EBITDA (R$ million) and EBITDA Margin (%) 60 20.9% 180,0 18.7 50 18.8% 20,0% 20,0% 170,0 38.5 160,0 19,0% 40 17.7 32.9 150,0 18,0% 140,0 131.1 30 17,0% 21.6 15,0% 130,0 120,0 118.2 16,0% 20 110,0 15,0% 10 12.8% 100,0 90,0 14,0% 0 10,0% 80,0 13,0% 4Q08 3Q09 4Q09 2008 2009 NOR (R$ thous
Slide 18: Financial Data
Financial Data Investments – R$ million 2009 2010 New T-HDF/MDF Line 107.8 T-HDF 84.6 New Saturation Machine 6.6 Forestry 39.1 Lacca 4.4 Sustainability/Other 23.1 Forests 26.0 Total 146.8 Refineries 2.0 Sustainability/Other 12.7 Total 159.5 Sustainability Sustainability / Other /Other Refineries 8%
Slide 19: Financial Data
Financial Data Indebtedness Indebtedness (R$ million) 2009 2008 Change (%) Short-Term Debt 48.5 35.7 36.1% Long-Term Debt 77.1 57.8 33.4% Gross Debt 125.7 93.5 34.4% Cash Equivalents 7.0 11.0 -36.0% Net Debt 118.6 82.5 43.8% % Short-Term Debt 39% 38% 0.5 p.p. Net Debt/ RECURRING EBITDA 1.0 0.6 68.5%
Slide 20: Financial Data
Financial Data • Recent change in jurisprudence in higher courts reconsiders previous positions in favor of tax credits on exempt goods and IPI tax credits. • In view of this clear change in interpretation, the legislative and executive branches proposed a new law and executive order granting very a
Slide 21: Sustainability
Sustainability 62 eucalyptus farms, totaling 44,500 hectares Salto average radius – 122 km Botucatu average radius – 22 km New forests planted in 2007 – 5,400 ha New forests planted in 2008 – 4,500 ha New forests planted in 2009 – 2,040 ha Forests with the ISO 14001 Certification and Green Seal from
Slide 22: Sustainability
Sustainability Wood Recycling Project • Low-cost generation of thermal energy, increasing efficiency of the company’s forests. • Volume processed in 2009: 109,000 tons. • Annual volume corresponds to 6,500 ha of forests, representing investment of R$93 million/year. • New yard consumption of up to
Slide 23: Corporate Governance
Corporate Governance Adoption of Best Practices Minimum free float of at least 25% of capital Public share offerings that favor capital dispersion Migration Improvement in quarterly disclosure, including consolidated data and special review to Level I Disclosure of trades in the company’s securities
Slide 24: Capital Markets
Capital Markets Performance of EUCA4 vs. IBOVESPA (Base 100) Desempenho acumulado até 02/03/2010 Base 100 = 02/03/2009 240 108.88% 220 200 180 160 87.06% 140 120 100 80 Eucatex Ibovespa Financial Volume (in R$ million) 18,00 16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 - 24
Slide 25: Capital Markets
Capital Markets Market Cap vs. EBITDA Masisa 6.0 X Arauco 7.0 X Duratex 12.0 X Eucatex 3.9 X Book Value per Share vs. Market Value Masisa 0.8 Arauco 1.2 Duratex 3.1 Eucatex 0.6 25
Slide 26: Awards
Awards Artesp Award Gold Award in category Best Property Development Product - Economical Paint Anamaco Award One of the highest brand recalls in the categories: Synthetic Enamel Paint Wall and Ceiling Paint Paint Preparation Products 26
Slide 27: Awards
Awards PBPQ-H Recognition Eucafloor flooring Manufactured in accordance with the program’s quality standards and technical norms Top Móbile One of the highest brand recalls in the MDP category 27
Slide 28: IR Contacts
IR Contacts José Antonio G. de Carvalho Executive VP and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations +55 (11) 3049-2473 ri@eucatex.com.br www.eucatex.com.br/ri 28
Slide 29: Eucatex S.A. Indústria e Comércio
EUCATEX S.A. INDÚSTRIA E COMÉRCIO
Eucatex S.A. Indústria e Comércio — 4Q09 Earnings Presentation on 6ix