Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3

Eucatex S.a. Industria E Comercio — Q1 2009 Earnings Presentation

25 slides from Eucatex S.a. Industria E Comercio's earnings presentation, May 13, 2009

  1. Slide 1: 1Q09 Conference Call

    1Q09 Conference Call May 13, 2009

  2. 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

  3. Slide 3: 4Q08 Highlights

    4Q08 Highlights » Financial results  Gross revenue came to R$ 189.4 million in the 1Q09, versus R$ 212.6 million in the 1Q08, representing a decrease of 10.9%  Gross margin of R$ 58.2 million, up 0.7% from 1Q08, even though the revenue came lower in the same period. In percentage the Gross margin

  4. Slide 4: Revenue Breakdown

    Revenue Breakdown » Highlights  Eucatex’s paints segment represented 21% of revenue in the 1Q09, compared with 17% in the 1Q08. Gross Revenue Breakdown - 1Q09 Gross Revenue Breakdown - 1Q08 2% Hardboard 3% 21% 17% 34% MDP 33% Laminate Flooring 9% 8% Paint Others 35% 38% Home Building Furniture Indu

  5. Slide 5: Boards Unit

    Boards Unit » The first and largest unit of the Eucatex Group.  Location: Salto-SP  Area: Land – 540,000 m² / Built area – 153,000 m²  Gross Revenue in 1Q09: R$ 63.8 million (20 % from exports to over 25 countries)  Number of employees: 754 » Main products and installed capacity in the year:  H

  6. Slide 6: Hardboard

    Hardboard Installed Capacity Used Price x Cost - Hardboard 121 1,1 87% 87% 101 1 81 100 98 0,9 61 0,8 1Q09 1Q08 41 0,7 Hardboard 21 0,6 Market Share 1 0,5 1Q08 1Q09 Volumes m2 (base 100) Price-Cost (base 100) 1Q09 1Q08 Variation 49% 47% Market (base 100 - 2008) 82.3 100.0 -17.7% 1Q09 1Q08 Hardboard

  7. Slide 7: MDP and Flooring Unit

    MDP and Flooring Unit The only plant in Latin America capable of laminating paper during the production of MDP panels.  Location: Botucatu-SP  Area: Land 372,000 m²/ Built area: 62,000m²  Gross Revenue in 1T09: R$ 82.9 million  Number of Employees: 373 Main products and installed capacities in t

  8. Slide 8: MDP Panels

    MDP Panels Installed Capacity Used Volume Analysis and Price x Cost - MDP 95% 121 1,1 91% 101 1 100 81 0,9 88 1Q09 1Q08 61 0,8 MDP Panels 41 0,7 Market Share 21 0,6 1 0,5 1Q08 1Q09 Volumes m2 (base 100) Price-Cost (base 100) 1Q09 1Q08 Variation 15% 14% Market (base 100 - 2008) 81.8 100.0 -18.2% 1Q09

  9. Slide 9: Wood Sales Mix

    Wood Sales Mix » Eucatex’s sales mix has larger market share of coated products in relation to market peers; » In the 1Q09, coated products, which have higher value added, represented 96% of the MDP produced; and » Lacca accounted for 29% of MDP sales in 1Q09. Share of Coated MDP EUCATEX Standard Co

  10. Slide 10: Launches FIMMA 2009

    Launches FIMMA 2009 Lacca Alta Definição TM Eucaprint Dekor TM Eucaprint EcoWood TM 10

  11. Slide 11: Flooring

    Flooring Installed Capacity Used Volume Analysis and Price x Cost - Flooring 120 1,1 53% 61% 100 1 100 80 0,9 1Q09 1Q08 60 78 0,8 Laminated Flooring 40 0,7 Market Share 20 0,6 - 0,5 1Q08 1Q09 Volumes m2 (base 100) Price-Cost (base 100) 28% 32% 1Q09 1Q08 Variation Market (base 100 - 2008) 88.2 100.0

  12. Slide 12: Paint and Varnish Unit

    Paint and Varnish Unit Inaugurated in 1994, this unit is one of the most modern in Latin America, thanks to its state-of-the art equipment and high-tech laboratory.  Location: Salto-SP  Area: Land: 960,000 m² / Built area: 36,000 m²  Gross Revenue in 1Q09: R$ 46.6 million  Number of Employees: 2

  13. Slide 13: Paints

    Paints Installed Capacity Used Volume Analysis and Price x Cost - Paints 105 1,2 1,1 37% 39% 100 1 100 95 0,9 1Q09 1Q08 90 0,8 Paint and Vernish 95 0,7 Market Share 85 0,6 80 0,5 1Q08 1Q09 Volumes m2 (base 100) Price-Cost (base 100) 7% 7% 1Q09 1Q08 Paint and Vernish 13

  14. Slide 14: Financial Highlights

    Financial Highlights Highlights 1Q08 (R$ MM) 1Q09 1Q08 Var. (%) Net Revenue 152.8 174.3 -12.3% Cost of Good Sold (94.7) (116.5) -18.8% Gross Income 58.2 57.7 0.7% Gross Margin (%) 38.1% 33.1% +5,0 p.p. Adm. And Comercial Expenses (10.2) (10.2) -0.3% Others Operational Costs (5.4) (0.5) -891.5% EBITD

  15. Slide 15: Sustainability » Forests

    Sustainability » Forests • The Company has 62 eucalyptus farms, totaling 44,000 hectares • Average Radius Salto – 122 km • Average Radius Botucatu – 50 km • New Forests Planted in 2007 – 5.400 ha* • New Forests Planted in 2008 – 4.500 ha* • New Forests Planted in 1Q09 – 1.100 ha* • Forests with ISO

  16. Slide 16: Sustainability » Wood Recycling Project

    Sustainability » Wood Recycling Project • Mean Radius of Residual Gathering– 150 km • Processed Volume in 2008 – 88 mil ton • Processed Volume in 1Q09 – 25.3 mil ton • This annual volume would correspond of 800 ha s of forests, which would represent, only in land, R$ 10 million/year. Guaranteed sust

  17. Slide 17: Capex

    Capex Other Investments in Sustainability 9% Investments - R$ Million 1Q09 New Line T-HDF 15.6 Forests Forests 6.0 25% Other Investments in Sustainability 2.0 Total 23.6 New Line T-HDF in 2008 72.0 New T-HDF Line 66% 17

  18. Slide 18: New T-HDF Line

    New T-HDF Line » The line is scheduled to commence operations by the end of 2009. T-HDF: Product similar to MDF, but with superior density and quality. New T-HDF Line Installed Capacity Growth (in m²) 110 million m²/ year EBITDA Installed Capacity Growth (in m³) 275 thousand m³/ year Margin 50 % Add

  19. Slide 19: New T-HDF/MDF Line

    © New T-HDE/MDE Line eucatex

  20. Slide 20: New T-HDF Line

    New T-HDF Line Blueprint of the new T-HDF unit (Thin High Density Fiberboard) 20

  21. Slide 21: Debt

    Debt Debt (R$ MM) 1Q09 1Q08 Var. (%) Short Term Debt 28.9 14.5 99.3% Long Term Debt 57.6 68.1 -15.4% Gross Debt 86.4 82.6 4.7% Cash and Cash Equivalents 5.3 1.6 224.8% Net Debt 81.1 80.9 0.3% % Short Term Debt 33% 18% 15,9 p.p. Net Debt/ EBITDA 0.7 0.6 19.8% Net Debt vs Ebtida Debt Profile 0.8 x 1Q0

  22. Slide 22: Corporate Citizenship

    © euUcater Corporate Citizenship As Melhores Empresas em Cidadania Corporativa As 10 Mais Alcoa Ampla Copagaz Cummins Eucatex Marcopoto Siemens Serasa Visteon 2009 CPFL AEmpesa do Ano 22

  23. Slide 23: Capital Market

    Capital Market EUCA4 x IBOV Preço fech. Vol. Fin. Comparative EV/EBITDA* (R$) (R$mil) 10,00 1000 EUCATEX x National Peers 9,00 End of 2007 End of 2008 900 5.8 x 5.2 x 8,00 800 7,00 700 6,00 1Q09 600 2.4 x 5,00 500 4,00 400 3,00 300 2,00 200 1,00 100 - 0 Duratex Satipel Vol('000) EUCA4 IBOV base 100

  24. Slide 24: Final Remarks

    Final Remarks » New T-HDF/MDF line – strategically differentiated from competition; » Exports – traditional exporter of thin boards, with own office in the USA; » Differentiated electric and thermal power costs: electric energy purchase agreement till 2012 (including for the new T-HDF line) and self

  25. Slide 25: IR Contact

    IR Contact José Antonio G. de Carvalho Executive VP and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations (55 11) 3049-2361 ri@eucatex.com.br www.eucatex.com.br/ir

Eucatex S.A. Indústria e Comércio — Q1 2009 Earnings Presentation on 6ix