Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q3 2007 Earnings Presentation
13 slides from Eucatex S.a. Industria E Comercio's earnings presentation, November 2007
Slide 1: Disclaimer
Disclaimer • This presentation Thi t ti includes i l d fforward‐looking d l ki statements t t t that th t are subject bj t to t risks and uncertainties based on the beliefs and assumptions of the Company’s management, and on information currently available to the Company. • Forward‐looking statement
Slide 2: Agenda
Agenda » 3rd Quarter Q t Highlights Hi hli ht » MDP, MDF, Laminate Flooringg and Paints » Operating Performance » Financial Performance » Financial Fi i l Reestructuring R t t i » Capital p Market » Why Eucatex? 3
Slide 3: 3rd Quarter Highlights
3rd Quarter Highlights » Sales growth in all lines of Eucatex Eucatex’ss products Growth of the real estate sector and favorable macroeconomic moment Good sales performance in the paint segment – 52% growth in the 9M07 » Substantially improved financial results Gross revenue moved up by 15.2%,
Slide 4: MDP and MDF Demand
MDP and MDF Demand MDF Consumption MDP Consumption (Growth 2006 x 2007 = 43%) (Growth 2006 x 2007 = 20%) m3 m3 m3 (9M07) m3 ( (9M07) ) 2.000.000 2.000.000 +20 % 1.800.000 1.800.000 1.600.000 1.600.000 +43 % 1.400.000 1.400.000 1.200.000 1.200.000 1.888.627 1.000.000 1.577.741 1.569.565 1.518.654 1.0
Slide 5: Eucatex Sales Volume
Eucatex Sales Volume 2005 – 100 base b H db d Hardboard +28% 131 +16% 16% 115 102 99 3Q06 3T06 3Q07 3T07 9M06 9M06 9M07 9M07 6
Slide 6: Paint Market
Paint Market Estimatted Paint Estimated paint Demand consumption (annual) Eucatex Paint Sales Galons Galons MM MM +9% 100 b base - 2005 +49% 209 +52% 198 140 226 130 212 206 3T06 3Q06 3T07 3Q07 9M06 9M07 2005 2006 2007 Source: ABRAFATI – Brazilian Paint Manufacturers Association 7
Slide 7: Laminate Flooring Market
Laminate Flooring Market Eucatex’s Eucatex s Sales of Laminate Flooring Consumo aparente de Pisos Laminados Estimated consumption of Laminate Flooring (jan. a set) 160 11% m2 000 +20% 139 140 9% 125 124 120 114 100 80 5.186 4.669 4.320 60 40 20 ‐ 3T06 3T07 9M06 9M07 2005 2006 2007 ABIPLAR - Brazilia
Slide 8: Financial Highlights
Financial Highlights Quarter Highlights R$ MM 3Q07 3Q06 Var % 9M07 9M06 Var % N Revenue Net R 154 1 154.1 139 3 139.3 10 7% 10.7% 459 1 459.1 418 3 418.3 9 8% 9.8% COGS (106.2) (99.4) 6.9% (315.3) (295.4) 6.8% Gross Income 47.9 39.9 20.1% 143.8 122.9 17.0% Gross Margin(%) 31.1% 28.7% +2.4 p.p. 31.3%
Slide 9: Investments - Capex
Investments ‐ Capex » 2 new MDP finishing lines: a low‐pressure laminate (LPL) CAPEX R$ MM line and a high‐gloss finish foil +21% (FF) line. line 85 4 85.4 70.8 » Conclusion of the wood +38% 35.8 recycling project 25.9 » Planting Pl i off 4,400 4 400 hectares h off 3Q06 3Q07 9M06 9M07 new forests. 1
Slide 10: Financial Restructuring
Financial Restructuring On September 19, 2007, Eucatex successfully ratified the results of its judicial recovery plan presented at the general meeting held in October 2006 that consisted of: a) Payment in kind of lands and forests, without impacting the sustainability of the forestry business; b) D
Slide 11: Capital Market
Capital Market 10,0 EUCA4 Evolution Evolução EUCA4 9,0 07/nov 8,0 7,0 6,0 5,0 321% 4,0 3,0 2,0 Comparativo EV/EBITDA* EV/EBITDA ratio* 1,0 16.3 x ‐ 13.0 x 28/dez 28/jan 28/fev 28/mar 28/abr 28/mai 28/jun 28/jul 28/ago 28/set 28/out 5.5x * Eucatex 3Q07 book value data. Duratex and Satipel 2Q07 book v
Slide 12: Why Eucatex?
Why Eucatex? » Boom of the real estate and construction markets in Brasil; » Local demand for MDP should reach annual growth rates from 6% to 10% in the next 5 years; » Creditors approved the Company’s recovery plan and it successfully completed l d iits capital i l reestructuring; i » Upside potent
Slide 13: IR Contacts
IR Contacts » José Antonio G. G de Carvalho Executive Vice‐President and Investor Relations Officer » Phone: +55 11 3049‐2361 3049 2361 Fax: +55 11 3049‐2215 » E‐mail: E mail: ri@eucatex.com.br ri@eucatex com br » Website: www.eucatex.com.br/ir 14
Eucatex S.A. Indústria e Comércio — Q3 2007 Earnings Presentation on 6ix