Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q1 2010 Earnings Presentation
23 slides from Eucatex S.a. Industria E Comercio's earnings presentation, May 5, 2010
Slide 1: 1Q10 Results
© eUCaAtED 1Q10 Results May 5, 2010 Mh 4 To = Ra sg He A‘
Slide 2: Disclaimer
Disclaimer This presentation includes forward‐looking statements that are subject to risks and uncertainties and based on the beliefs and assumptions of the management of Eucatex S.A. Indústria e Comércio and on the information currently available to the Company. Forward‐looking statements are not g
Slide 3: 1Q10 Highlights
1Q10 Highlights Gross Revenue of R$ 228.2 million, 20.4% higher than in 1Q09. Gross Margin of 36.4%, down 1.7 p.p. from the same period in 2009. EBITDA of R$ 43.3 million, up 39.9% from R$ 30.9 million in 1Q09. EBITDA Margin of 23.7%, improving 3.4 p.p. from 20.2% in 1Q09. Net Income of R$ 14 millio
Slide 4: Manufacturing Units
Manufacturing Units Board Unit Location: Salto, São Paulo Hardboard – 240,000 m³ Area: Land – 540,000 m² Panels and Doors – 1.8 million units Installations – 153,000 m² Paint Capacity – 50 million m² Number of employees: 777 MDP and Laminated Flooring Unit Location : Botucatu, São Paul
Slide 5: Forestry Unit
Forestry Unit 62 eucalyptus farms, totaling 44,500 hectares Salto Average Radius – 148 km Botucatu Average Radius – 35 km Forestry Unit– Bofete, SP New Planted Forests 2007 2008 2009 1T10 5,400 ha 4,500 ha 2,040 ha 1,100 ha Forests with ISO 14001 certification and Green Seal from Forest Stewardship
Slide 6: Wood Recycling Unit
Wood Recycling Unit • Low-cost thermal power generation, preserving forests planted by the company. • Total processing capacity – 240,000 metric tons/year. • 240,000 metric tons/year corresponds to approximately 470,000 m³ of standing timber or 1,500 hectares of forests. • Volume processed in 2009 –
Slide 7: Operating Data
Operating Data Revenue Breakdown by Product Gross Revenue Breakdown - 1Q10 Gross Revenue Breakdown - 1Q09 6% MDP 8%2% 11% 31% Hardboard 35% Paint 21% 22% Laminate Flooring Others 30% 34% Sales Breakdown by Segment Sales Breakdown - 1Q10 Sales Breakdown - 1Q09 2% 4% Industry 5% 7% 4% Building 11% 10%
Slide 8: Hardboard
Hardboard Installed Capacity Utilization Market Share 87% 86% 56% 49% 1Q09 1Q10 1Q09 1Q10 Cost Breakdown Domestic Sales – Base 2005=100 Electrical and Thermal Energy 15% Depreciation 132 137 8% Labor 113 19% 108 110 100 Raw 58% 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 8
Slide 9: MDP
MDP Installed Capacity Utilization Market Share 95% 93% 15% 13% 1Q09 1Q10 1Q09 1Q10 Cost Breakdown Sales Volume – Base 2005=100 Electrical and Thermal Energy Labor 8% 6% Depreciation 120 116 10% 110 100 100 105 Raw 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 76% 9
Slide 10: MDP Sales Mix
MDP Sales Mix Proportion of Eucatex coated MDP » Eucatex’s sales mix has a higher share of coated products than other manufacturers, with the percentage of coated products (higher value added) accounting for 100% of Raw Coated MDP shipments in 1Q10. 96% 100% 27% 1Q09 1Q10 1Q10 - Market Source: ABIPA
Slide 11: Launch of MDF with HD Lacquered Finish
Launch of MDF with HD Lacquered Finish » Launch of high-definition lacquered finish applied to an MDF base for Wood Reseller segment. 11
Slide 12: Laminated Flooring
Laminated Flooring Installed Capacity Utilization Market Share 54% 35% 37% 28% 1Q09 1Q10 1Q09 1Q10 Cost Breakdown Sales Volume – Base 2005=100 Labor Electrical and 7% Thermal Energy 6% 185 Depreciation 3% 144 112 100 101 106 Raw 84% 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 12
Slide 13: Product Launches - Laminated Flooring
Product Launches - Laminated Flooring Eucafloor Evidence » Launch of the Eucafloor Evidence Line at the 8th Expo Revestir – International Wall and Floor Covering Fair. » Product features 25-cm wide planks, meeting strong demand from architects and interior designers. » Created for residential and lo
Slide 14: Paint and Varnishes
Paint and Varnishes Installed Capacity Utilization Market Share 52% 39% 9% 7% 1Q09 1Q10 1Q09 1Q10 Cost Breakdown Sales Volume - Base 2005=100 Labor Depreciation 7% 1% 393 Packing 292 13% 278 202 134 100 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 Raw Growth 2006 2007 2008 2009 1Q10 79% Eucatex 34% 52% 30% 12% 42%
Slide 15: Financial Highlights
Financial Highlights Highlights (R$ MM) 1Q10 1Q09 Var. (%) 4Q09 Var. (%) Net Revenue 182.9 152.8 19.7% 183.9 -0.6% Cost of Good Sold (116.3) (94.7) 22.9% (121.1) -3.9% Gross Income 66.6 58.2 14.5% 62.8 5.9% Gross Margin (%) 36.4% 38.1% -1.7 p.p. 34.2% 2.2 p.p. Administrative Expenses (10.2) (10.7) -
Slide 16: CAPEX
CAPEX R$ MM 1Q10 R$ MM - Projection coming Quarters 2010 New T-HDF/MDF Line 41.4 New T-HDF/MDF Line 43.2 Forests 5.1 Forests 34.0 Improvement Projects 1.1 Sustenance/ Others 16.3 Sustenance/ Others 5.7 Total 93.4 Total 53.4 Sustenance/ Others 11% Sustenance/ Improvement Projects Others 2% 18% Forest
Slide 17: New T-HDF / MDF Plant
New T-HDF / MDF Plant » T-HDF: Product similar to MDF, but with higher quality and density. » Technology developed for applications requiring high mechanical resistance, such as flooring, doors, backings, drawers and dividers. » Operational start-up projected for 3Q10. Capacity and Financial Data In
Slide 18: New T-HDF / MDF Plant
Cc eucatex New T-HDF / MDF Plant
Slide 19: Debt
Debt Debt (R$ Million) 1Q10 1Q09 Var. (%) Short Term Debt 60.3 28.9 108.8% Long Term Debt 89.8 57.6 56.1% Gross Debt 150.1 86.4 73.7% Cash and Cash Equivalents 11.8 5.3 123.6% Net Debt 138.3 81.1 70.4% % Short Term Debt 40% 33% 6,8 p.p. Net Casth (Debt)/EBITDA 0.8 0.7 21.8% Net Debt vs. EBITDA Debt
Slide 20: Capital Markets
Capital Markets EUCA4 vs. IBOVESPA (Base=100) 240 220 119% 200 180 160 75% 140 120 100 Eucatex 80 Ibovespa Multiples Shareholders’ Equity 800 700 600 Book Value per Share vs Market 0.7 R$ million 500 Value 400 300 200 100 0 3.2 sep/06 dec/08 dec/09 mar/10 Market Cap vs Ebitda Shareholders' Equity R$
Slide 21: 2010 Corporate Citizenship Award
2010 Corporate Citizenship Award 21
Slide 22: Competitive Advantages
Competitive Advantages Innovation, creativity and exclusive products. 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, s
Slide 23: IR Contacts
IR Contacts José Antonio G. de Carvalho Executive VP and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations (11) 3049-2473 ri@eucatex.com.br www.eucatex.com.br/ri 23
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