Sonae Indústria S.G.P.S — Q1 2008 Earnings Presentation
17 slides from Sonae Indústria S.G.P.S's earnings presentation, May 2008
Slide 1: Highlights 1Q 2008 Results
HIGHLIGHTS 1Q 2008 RESULTS Highlights 1Q 2008 Results 1
Slide 2: 1Q 2008 Highlights
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS We are facing a cyclical downturn in our business through a combination of: Subdued demand (also influenced by high interest rates and the earlier Easter period when compared to 2007) Sharp increase in input costs (particularly resin) Ina
Slide 3: 1Q 2008 Highlights: Turnover and Recurrent EBITDA
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS When compared to 1Q07: Consolidated Turnover decreased by 8% to 498 million euros; Recurrent EBITDA decreased to 41 million euros, representing a decrease of 40% and an EBITDA margin of 8.5%. TOTAL EBITDA in 1Q08 is 88 million euros, whic
Slide 4: Industrial cost base about 7% higher
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Our industrial cost base was approximately 7% higher in 1Q08, compared to 4Q07 and 1Q07, mainly driven by the higher methanol price, which increased chemical costs by almost 20% CONSOLIDATED VARIABLE COST (eur/m 3) BASE 100:1Q07 1,20 1,15
Slide 5: Inability to increase prices despite higher input costs
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Inability to increase prices, even with higher input costs OSB and Flooring Price decreased CONSOLIDATED AVERAGE PRICES (eur/m 3) BASE 100:1Q07 1,10 1,08 1,06 1,04 1,02 1,00 0,98 0,96 0,94 1Q07 2Q07 3Q07 4Q07 1Q08 PB MDF OSB 5
Slide 6: Subdued demand
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Subdued demand (also influenced by high interest rates and the earlier Easter period when compared to 2007) Weaker demand when compared to the beginning of 2007 but there was a slightly recover in sales in 1Q 2008 when compared to 4Q07 CO
Slide 7: Quarterly evolution per region
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Our quarterly evolution per region: TURNOVER & RECURRENT EBITDA TURNOVER & RECURRENT EBITDA TURNOVER & RECURRENT EBITDA IBERIA CENTRAL EUROPE REST OF THE WORLD 1Q’08 Vs 1Q’08 Vs 1Q’08 Vs 1Q’08 Vs 1Q’08 Vs 1Q’08 Vs Millions of M illions of
Slide 8: Iberia
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS IBERIA The slowdown in economic environment in Spain is evident as: New Housing Permits declined by 49% (YTD Feb. 2008 vs. Feb. 2007) GDP growth posted a downtrend: IMF Figures: 2007 3.8%; 2008 1.8% and 2009 1.7% The European Commission r
Slide 9: Central Europe (Germany, France and UK)
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS CENTRAL EUROPE (Germany, France and UK) Germany experienced a slowdown in residential construction as: Building permits dropped significantly and most market segments suffered from weaker demand The strength of the Euro against the USD ha
Slide 10: Rest of the World (Canada, Brazil and South Africa)
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS REST OF THE WORLD (Canada, Brazil and South Africa) Our performance in RoW reflects mixed trends: In Brazil, GDP Growth is predicted to be 4.8% in 2008 supported by internal demand, employment and consumer growth. Consequently, volumes so
Slide 11: Gross fixed assets increase and working capital
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS The increase in gross fixed assets in 1Q08 amounted to 34 million euros, including: 13 million euros for the Line 2 project in Canada; 6 million euros for the Impregnation Centre in Kaisersesch; 2 million euros corresponding to the DARBO
Slide 12: Refinanced debt: debt repayment schedule
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Refinanced debt: DEBT REPAYMENT SCHEDULE 300 290 Since the beginning of 280 270 260 250 this year, we have 240 230 220 refinanced 250 million 210 200 190 180 214 212 euros of our short term 170 160 150 140 debt, increasing maturity 130 16
Slide 13: Healthy Balance Sheet
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Healthy Balance Sheet: BALANCE SHEET (MILLIONS OF EUROS) 2007 1Q08 NON CURRENT ASSETS 1.517 1.458 CURRENT ASSETS 651 739 TOTAL ASSETS 2.168 2.196 SHAREHOLDERS’ FUNDS + MINORITY INTERESTS 629 618 ST FINANCIAL DEBT 160 173 MLT FINANCIAL DEB
Slide 14: Dividend Policy
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA 1Q 2008 HIGHLIGHTS Dividend Policy In the Shareholders’ General Meeting held on 21st April 08, it was decided that Sonae Indústria pays dividends on 21st May 2008 amounting to approximately 50% of 2007 Net consolidated Profits attributable to its Equity Hol
Slide 15: Looking Forward
HIGHLIGHTS 1Q 2008 RESULTS LOOKING FORWARD 15
Slide 16: Looking Forward
HIGHLIGHTS 1Q 2008 RESULTS SONAE INDÚSTRIA LOOKING FORWARD The macroeconomic environment is not expected to improve significantly over the coming quarters However, we have noticed a slight recovery in 1Q 2008 sales when compared to 4Q 2007 (even allowing for the earlier Easter period this year) Some
Slide 17: HIGHLIGHTS 1Q 2008 RESULTS
HIGHLIGHTS 1Q 2008 RESULTS 17
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