Sonae Indústria S.G.P.S — Sonae Indústria — 9M10 Earnings Presentation
17 slides from Sonae Indústria S.G.P.S's earnings presentation, November 2010
Slide 1: Highlights of 9M10 Results
HIGHLIGHTS OF 9M10 RESULTS 1
Slide 2: Consolidated Operational Review
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Comparing 3Q10 with 2Q10: Turnover decreased by 7%, due to lower volumes sold caused by the negative seasonal effects Recurrent EBITDA increased again from 22 to 28 million Euros, resulting in a 3pp improvement in margin Net
Slide 3: Volumes Sold
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA VOLUMES SOLD In 9M10, volumes sold are 300.000 m3 higher than 9M09* CONSOLIDATED VOLUMES SOLD (Million of m3)* CONSOLIDATED VOLUMES SOLD* Millions of m3 2,50 6,00 2,00 4,82 5,00 4,35 4,00 1,50 1,37 1,35 1,39 4,00 3,70 1,28 1,25 1,21 1,21 3,00 1,00 2,00 0,50
Slide 4: Capacity Utilization
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA CAPACITY UTILIZATION Capacity Utilization (W/o Brazil) - YTD 110% 100% Capacity utilization in 90% 80% 74% 9M10 is 7pp higher when 70% 74% 75% 66% 72% 73% 70% 71% compared to 9M09 60% 64% 63% 64% 50% 40% 30% 1Q08 1H08 9M08 2008 1Q09 1H09 9M09 2009 1Q10 1H10
Slide 5: Price and Cost Evolution
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA PRICE AND COST EVOLUTION CONSOLIDATED QUARTERLY AVERAGE PRICES * (eur/m3) BASE 100:1Q07 In the 3Q10, prices 1,4 continued reflecting a positive trend achieving 1,2 almost the value of 1Q07. 1,0 0,8 0,6 0,4 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3
Slide 6: Chemicals: Urea and Methanol
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA CHEMICALS: UREA AND METHANOL CHEMICAL COSTS HAVE A SIGNIFICANT IMPACT IN OUR COST STRUCTURE (AROUND 30% VARIABLE COSTS) UREA AND METHANOL ARE THE MAIN CHEMICALS USED TO PRODUCE RESINS USED IN OUR PRODUCTION NWE ICIS Methanol Prices - Out. 2003_2010 480 Euro
Slide 7: Consolidated Operational Review
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Consolidated operational figures: Consolidated Turnover in 3Q10 decreased 7% to 313 million Euros, due to seasonal holidays. However, we were able to further increase the Recurrent EBITDA achieving 9% of Turnover; Comparing 9
Slide 8: Geographic Review of Operations: Iberia
HIGHLIGHTS OF 9M10 RESULTS Geographic Review of Operations IBERIA TURNOVER & RECURRENT EBITDA € Mn Iberia continue to suffer from tough IBERIA market conditions. 140 30,0% 120 25,0% Comparing 3Q10 with 2Q10, 99 100 93 92 volumes sold in Iberia decreased 84 20,0% 80 by 18%, mainly as a result of the
Slide 9: Geographic Review of Operations: Central Europe
HIGHLIGHTS OF 9M10 RESULTS Geographic Review of Operations CENTRAL EUROPE (Germany, France and the UK) In Germany, during 3Q10, compared to 2Q10, TURNOVER & RECURRENT EBITDA we were able to continue to recover contribution € Mn CENTRAL EUROPE 260 30,0% margin, even allowing for the raw material cost
Slide 10: Geographic Review of Operations: Rest of the World
HIGHLIGHTS OF 9M10 RESULTS Geographic Review of Operations REST OF THE WORLD (Canada and South Africa) € Mn Turnover & Recurrent EBITDA Margin In Canada, turnover during 3Q10 fell RoW compared to 2Q10 (12% lower in local currency), mainly due to normal seasonality, but comparing to 3Q09, 65 65 62 tu
Slide 11: Capex, Working Capital and Net Debt
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA CAPEX, WORKING CAPITAL AND NET DEBT Additions to Fixed Assets in 9M10 were 15 million Euros, mostly related to investments in essential maintenance, Health & Safety and Environmental improvements. Working Capital increased by 24 million Euros during 9M10. H
Slide 12: Scheduled Loan Repayments
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA SCHEDULED LOAN REPAYMENTS SCHEDULED LOAN REPAYMENTS 250 (as of 30th Sept 2010*) 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 145 60 50 105 40 91 90 30 73 20 31 49 42 10 0 4Q10 1H11 2H11 2012 2013 2014 2015 ≥2016 In May 2010, we refin
Slide 13: Profit & Loss Account
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA PROFIT & LOSS ACCOUNT (euro millions) 9M'09* 1Q10 2Q10 3Q10 9M10 Turnover 906 320 339 313 972 Other Operational Income 45 20 25 8 53 EBITDA 8 (6) 24 25 43 Recurrent EBITDA 16 7 22 28 57 Recurrent EBITDA Margin % 1,8% 2,2% 6,5% 9,0% 5,9% Depreciation and amo
Slide 14: Balance Sheet
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA BALANCE SHEET (euro millions) FY09 1Q10 1H10 9M10 Non Current Assets 1.233 1.237 1.168 1.127 Tangible Assets 1.083 1.083 1.024 987 Goodwill 92 93 93 93 Deferred Tax 33 36 34 31 Other Non Current Assets 24 25 17 16 Current Assets 370 395 407 385 Inventories
Slide 15: Looking Forward
LOOKING FORWARD 15
Slide 16: Looking Forward
HIGHLIGHTS OF 9M10 RESULTS SONAE INDÚSTRIA LOOKING FORWARD Although we expect a recovery of sales volumes in 4Q10, we are cautious on the size of the recovery as this will depend on the macroeconomic environment in each of the markets. We will continue to optimize our operations to achieve further i
Slide 17: Sonae Indústria
CE) SONAE INDUSTRIA