Sonae Indústria S.G.P.S — Sonae Indústria — FY2015 Earnings Presentation
21 slides from Sonae Indústria S.G.P.S's earnings presentation, Feb 19, 2016
Slide 1: 2015 Results
SONAE INDÚSTRIA 2015 Results Investors and Analysts Conference Call 19 February 2016 1
Slide 2: Agenda
SONAE INDÚSTRIA Agenda 1. Strategy execution 2. Highlights of 2015 results 2
Slide 3: Strategy execution
SONAE INDÚSTRIA Strategy execution 3
Slide 4: Completion of the rationalization of our industrial footprint
SONAE INDÚSTRIA Strategy execution Completion of the rationalization of our industrial footprint • Sale of Ussel (closed on 31 of March) • Sales of Betanzos (closed on 30 April) • Sale of Darbo (closed on 3 July) 4
Slide 5: Strategic Investment: Melamine line
SONAE INDÚSTRIA Strategy execution 11M€ investment in a 5th melamine surfacing line (Canada) Strategic Investment: Melamine line Lac-Mégantic • To be completed at the end of the first half of 2016 5
Slide 6: Increase in recycled wood consumption
SONAE INDÚSTRIA Strategy execution Increase in recycled wood consumption +2 p.p. • Recycled wood consumption increased by 2 p.p. vs. 2014, mainly due to Nettgau performance 6
Slide 7: Commercial initiatives
SONAE INDÚSTRIA Strategy execution Commercial initiatives • Launch of Innovus® Coloured MDF and, more importantly, launch of the new melamine Innovus® 2015 collection. 7
Slide 8: Announcement of a strategic partnership with Arauco
SONAE INDÚSTRIA Strategy execution Announcement of a strategic partnership with Arauco for the European and South African markets • Objective to create a 50/50 joint-venture, involving the existing European and South Africa wood based panels and related operations of Sonae Indústria, namely all it
Slide 9: Partnership rationale and conditions to completion
SONAE INDÚSTRIA Strategy execution • Two strong, reputable and well-established companies in the sector will leverage on the strengths of each one to build a stronger company in the concern markets. • The completion of this agreement is subject to certain legal and internal conditions that are expec
Slide 10: Highlights of 2015 results
SONAE INDÚSTRIA Highlights of 2015 results 10
Slide 11: Improved performance of all operations
SONAE INDÚSTRIA Highlights of 2015 results Improved performance of all operations Improvement in profitability, with full year Recurrent EBITDA of 107M€ (+11M€ vs. 2014) 2015 Recurrent EBITDA margin of 10.4%, up by 1 p.p. vs. 2014 Net Losses from continued operations reduced by 26M€ against
Slide 12: LTM Recurrent EBITDA
SONAE INDÚSTRIA Highlights of 2015 results • LTM LTM Recurrent EBITDA +11M€ Million € Recurrent EBITDA of 107M€ • Up by 11M€ vs. 2014 12
Slide 13: Recurrent EBITDA margin
SONAE INDÚSTRIA Highlights of 2015 results Recurrent EBITDA margin % Turnover • Recurrent EBITDA margin of 10.4% in 2015 • Best since 2007 13
Slide 14: LTM Recurrent EBITDA by region
SONAE INDÚSTRIA Highlights of 2015 results LTM Recurrent EBITDA Million € • Driven by 50 45 45 improved 40 35 37 37 36 36 results in 30 28 Southern 26 25 20 21 22 Europe and Rest 15 10 of the World FY13 1Q14 1H14 9M14 FY14 1Q15 1H15 9M15 FY15 operations, YoY Northern Europe Southern Europe Rest of t
Slide 15: Recurrent EBITDA margin by region
SONAE INDÚSTRIA Highlights of 2015 results Recurrent EBITDA margin 15.5% • And with 13.8% higher margins in 8.3% 8.4% all 7.7% operations, 6.2% 2014 2015 YoY Southern Europe Northern Europe Rest of the World Southern Europe: Values for “continued operations”. 15
Slide 16: Average Capacity Utilization Index
SONAE INDÚSTRIA Highlights of 2015 results Average Capacity Utilization Index % • With better 85% 80% 79% 83% 79% 82% 78% 79% average 76% 77% capacity 81% 74% 75% 75% 77% 77% 76% 77% 76% 75% 75% 70% 71% 71% utilization 65% 60% index 55% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15 Continued ope
Slide 17: Fixed Costs in % of turnover
SONAE INDÚSTRIA Highlights of 2015 results Fixed Costs in % of turnover • And reduced % fixed costs, impacted by on-going streamlining of support costs 17
Slide 18: Contributions to Net results
SONAE INDÚSTRIA Highlights of 2015 results Contributions to Net results Million € Net loss 2014 (116) • Leading to Recurrent EBITDA Non recurrent Items +11 Improved results from continuing operations Negative impact of restructuring significantly -9 measures and inactive sites. 2014 had a Depreciati
Slide 19: Net Debt and Leverage
SONAE INDÚSTRIA Highlights of 2015 results Net Debt and Leverage Million € • Net Debt +6M€ slightly 570 increased YoY, but the leverage 5.3x ratio improved LTM Recurrent EBITDA: Values for “continued operations”. 19
Slide 20: Scheduled loan repayments and Debt Structure
SONAE INDÚSTRIA Highlights of 2015 results Million € Scheduled loan repayments(1) as of 31 December 2015 31 December 2014 31 December 2015 (2) 21% 35% Debt Short-term Structure M/L-term 65% 79% (1)Does not include securitization, factoring and short term facilities. (2)The MLT debt amount of 314M€ r
Slide 21: 2015 Results
SONAE INDÚSTRIA 2015 Results Investors and Analysts Conference Call Investor and analysts contacts: António Castro Sílvia Saraiva Phone: (+351) 220 100 655 investor.relations@sonaeindustria.com 21