Sonae Indústria S.G.P.S — Investor Presentation (August 2013)
44 slides from Sonae Indústria S.G.P.S's investor presentation, August 2013
Slide 1: Investor Presentation August 2013
INVESTOR PRESENTATION - August 2013 -
Slide 2: Overview
more/better/faster SONAE INDUSTRIA WAY OVERVIEW
Slide 3: Shareholder Structure
OVERVIEW SONAE INDÚSTRIA SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE AS AT 31 DECEMBER 2012 EFANOR 51.356% SONAE INDÚSTRIA 56% SONAE CAPITAL 53% SONAE 100% 100% 50% 54% 100% 100% SONAE MC SONAE SR SONAE SONAECOM SONAE RP INVESTMENT Food Retail Specialized SIERRA Telecom, Retail MANAGEMENT Retail Sho
Slide 4: Organisation & Management Structure
OVERVIEW SONAE INDÚSTRIA ORGANISATION & MANAGEMENT STRUCTURE NON-EXECUTIVE Belmiro de Azevedo Paulo Azevedo BOARD OF Albrecht Ehlers (INDEPENDENT) DIRECTORS Javier Vega (INDEPENDENT) Executive Committee EXECUTIVE Rui Correia (CEO) Chris Lawrie (CFO) João Paulo Pinto (COO SOUTH EUROPE and CMSO) Jan B
Slide 5: Our Strategy (Vision, Mission, Values and Strategic Directions)
OVERVIEW SONAE INDÚSTRIA OUR STRATEGY (VISION, MISSION, VALUES AND STRATEGIC DIRECTIONS) VISION To be recognised as a sustainable world leader in the wood-based STRATEGIC DIRECTIONS: panels industry, consistently providing our customers with the best value products, upholding the highest standards o
Slide 6: Our Operations
OVERVIEW SONAE INDÚSTRIA OUR OPERATIONS 6
Slide 7: Our Products: Raw Products
OVERVIEW SONAE INDÚSTRIA OUR PRODUCTS: Raw Products OVER 90% OF OUR RAWBOARD CAPACITY IS TO MANUFACTURE PB & MDF PARTICLEBOARD (PB) • Very versatile • Suitable for all general uses in furniture and construction MEDIUM DENSITY FIBERBOARD (MDF) RAW • Excellent substitute for solid wood. Surface PRODUC
Slide 8: Our Products: PB MDF OSB
OVERVIEW SONAE INDÚSTRIA OUR PRODUCTS: Raw Products PB MDF OSB 8
Slide 9: Production Process (OSB)
OVERVIEW SONAE INDÚSTRIA PRODUCTION PROCESS (OSB) FORMING, PRESSING AND FINISH LINE 9
Slide 10: Our Products: Add-Value / Decorative
OVERVIEW SONAE INDÚSTRIA OUR PRODUCTS: Add-Value / Decorative MF / VF / HPL / CPL / FLOORING 10
Slide 11: Our Products with Various Applications
OVERVIEW SONAE INDÚSTRIA OUR PRODUCTS WITH VARIOUS APPLICATIONS… CONSTRUCTION DECORATIVE SOLUTIONS KITCHEN, OFFICE & HOME FURNITURE FLOORING PACKAGING 11
Slide 12: Our History
OVERVIEW SONAE INDÚSTRIA OUR HISTORY Acquisition and modernization of Start of the AGLOMA – the largest domestic international Particleboard producer in Portugal expansion with the acquisition of SPANBOARD Maia in Northern SONAE (Soc. Nacional Ireland de Estratificados, SARL) was established to manu
Slide 13: Our History: Capacity Growth and Restructuring
OVERVIEW SONAE INDÚSTRIA OUR HISTORY Since 1993, Sonae Indústria installed capacity grew through both acquisitions and organic growth. Over the last 5 years, we have been restructuring. Millions of m3 1998 1999-2004 2005 2008 + 2009 April 2010 Acquisition of GLUNZ with JV with Tarkett Restructuring
Slide 14: Capacity by Region and Product
OVERVIEW SONAE INDÚSTRIA CAPACITY PRODUCTION TOTAL CAPACITY (RAWBOARD) IS 6.6 MILLION M3, OF WHICH APPROXIMATELY 78% IS LOCATED IN EUROPE ... BY REGION ‘000 m3 ... BY PRODUCT* ‘000 m3 3,000 2,740 5,000 4,315 2,390* 4,500 2,500 460 4,000 3,500 1,345 2,000 820 880 3,000 1,415 1,500 2,500 70 1,400 1,77
Slide 15: Sales
OVERVIEW SONAE INDÚSTRIA SALES · IN 2012, APPROXIMATELY 75% OF OUR SALES WERE GENERATED IN EUROPE · WE TRANSFORM OVER 50% OF RAW MATERIALS INTO VALUE ADDED PRODUCTS 15 T&G: Tongue and groove; CTS: Cut to size
Slide 16: Financial Highlights FY12
OVERVIEW SONAE INDÚSTRIA FINANCIAL HIGHLIGHTS FY12 · CONSOLIDATED TURNOVER OF 1.3 BILLION EUROS · EBITDA OF 97 MILLION EUROS 16
Slide 17: Human Resources
OVERVIEW SONAE INDÚSTRIA HUMAN RESOURCES 4.4 THOUSAND EMPLOYEES AT THE END OF DECEMBER 2012 17
Slide 18: Human Resources: Increased Productivity
OVERVIEW SONAE INDÚSTRIA HUMAN RESOURCES INCREASED PRODUCTIVITY, MOSTLY DRIVEN BY THE RESTRUCTURING PROCESS RECENTLY CARRIED OUT 18
Slide 19: Highlights of 1H13 Results
HIGHLIGHTS OF 1H13 RESULTS 19
Slide 20: Consolidated Operational Review
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Comparing 1H13 to 1H12*: Comparing 2Q13 to 1Q13: • Turnover decreased by 7%, from 693 to 642 million • Turnover increased by 2%, from 318 to 324 million Euros Euros • Recurrent EBITDA margin fell 1.5 pp reaching 6.6% • Recurr
Slide 21: Consolidated Operational Review: Volumes, Prices, Costs
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA CONSOLIDATED OPERATIONAL REVIEW Quarterly Volumes Sold Millions of m 3 • Comparing 1H13 to 1H12 sales volumes were down by 10%. 1.42 1.32 1.40 1.34 1.27 1.20 1.22 1.22 1.24 • On a quarterly basis, and comparing with 1Q13, sales volumes were up by 2%. 2Q11 3
Slide 22: Variable Costs Evolution
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA VARIABLE COSTS EVOLUTION • Variable costs moved up 0.7% from QUARTERLY AVERAGE COSTS (eur/m3) BASE 100:1Q12 1H12 to 1H13. 1.4 1.3 • Compared to 1Q13, average chemical 1.2 costs increased. However, due to lower 1.1 wood prices that prevailed in Europe, 1.0 w
Slide 23: Southern Europe Review of Operations
HIGHLIGHTS OF 1H13 RESULTS GEOGRAPHIC REVIEW OF OPERATIONS SOUTHERN EUROPE (Iberian Peninsula and France) Comparing 1H13 performance to 1H12: • 1H13 Turnover and sales volumes reduced by 7%, with the negative contribution from the Iberian Peninsula (-15%), being partially offset by an improved perfo
Slide 24: Northern Europe Review of Operations
HIGHLIGHTS OF 1H13 RESULTS GEOGRAPHIC REVIEW OF OPERATIONS NORTHERN EUROPE (Germany) Comparing 1H13 performance to 1H12: • 1H13 Volumes sold decreased by 6% (negative evolution experienced in the particleboard market, but improved volumes in OSB and MDF). • The pressure felt in terms of combustibles
Slide 25: Rest of the World Review of Operations
HIGHLIGHTS OF 1H13 RESULTS GEOGRAPHIC REVIEW OF OPERATIONS REST OF THE WORLD (Canada and South Africa) Comparing 1H13 performance to 1H12: • Volumes sold from plants located in the Rest of the World (RoW) segment decreased by 3% during the 1H13, when compared to last year. • Total Turnover for the R
Slide 26: Profit & Loss Account
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA PROFIT & LOSS ACCOUNT 1H13 / 2Q13 / 2Q13 / PROFIT & LOSS ACCOUNT (Euro Millions) 1H12* 1H13 2Q12* 1Q13 2Q13 1H12* 2Q12* 1Q13 Consolidated Turnover 693 642 (7%) 341 318 324 (5%) 2% Southern Europe 273 255 (7%) 132 126 130 (2%) 3% Northern Europe 306 275 (10%
Slide 27: Balance Sheet
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA BALANCE SHEET BALANCE SHEET (Euro Millions) 1H12 FY12 1Q13 1H13 Non Current Assets 1,049 936 921 888 Tangible Assets 903 806 792 764 Goodwill 93 92 92 90 Deferred Tax Assets 38 24 24 23 Other Non Current Assets 15 13 13 11 Current Assets 385 329 343 334 Inv
Slide 28: Capex and Working Capital
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA CAPEX and WORKING CAPITAL • We continue to focus on cash management with strict controls over new investments and a rigorous working capital management. WORKING CAPITAL: 1Q10 - 1H13 € Mn • WORKING CAPITAL was 20 million Euros 200 below the level of 2Q12, an
Slide 29: Leverage 2009-2013
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA LEVERAGE 2009-2013 • Comparing to 1Q13, Net Debt decreased by 11 million EUR and is mainly the result of an improvement in Working Capital. NET DEBT ND / REC. EBITDA 950 25 Net Debt 900 ND/Rec.Ebitda 20 850 15 800 10 750 8x 5 700 684 650 0 1Q'09 2Q'09 3Q'09
Slide 30: Scheduled Loan Repayments
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA SCHEDULED LOAN REPAYMENTS • As part of the defined financing strategy, we have been negotiating the refinancing of most of the 2013 debt maturities, seeking to extend the average life of our credit facilities SCHEDULED LOAN REPAYMENTS* (as of 30th June 2013
Slide 31: Looking Forward
HIGHLIGHTS OF 1H13 RESULTS SONAE INDÚSTRIA LOOKING FORWARD • In the third quarter of the year, as customary, the consolidated sales performance will be impacted by holiday period and the seasonal effect of the operational maintenance shutdowns of most of our plants in the northern hemisphere. • We w
Slide 32: Geographic Review of Operations
GEOGRAPHIC REVIEW OF OPERATIONS
Slide 33: Southern Europe: Iberian Peninsula Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA SOUTHERN EUROPE › Iberian Peninsula COMPETITIVE LANDSCAPE Sonae Indústria Iberian Peninsula Capacity Thousands m3 MDF 500 PARTICLEBOARD MDF PB HB FLOORING HARDBOARD 880 70 HPL CHEMICALS OTHERS (FURNITURE, COMPONENTS, WOOD VENEER) INSTALLED RAWBOARD CAP
Slide 34: Southern Europe: France Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA SOUTHERN EUROPE › France COMPETITIVE COMPETITIVELANDSCAPE LANDSCAPE Sonae Indústria France Capacity Thousands m3 MDF 320 PARTICLEBOARD PB MDF 690 INSTALLED RAWBOARD CAPACITY IN FRANCE - TOP PLAYERS Millions m3 Swiss Krono Group 1.23 Egger 1.16 PLANTS 4
Slide 35: Northern Europe: Germany Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA NORTHERN EUROPE › Germany COMPETITIVE COMPETITIVELANDSCAPE LANDSCAPE Sonae Indústria Germany Capacity Thousands m3 MDF 880 OSB 460 PARTICLEBOARD MDF PB HPL 1400 CPL OSB IMPREGNATED PAPER + DIRECT PRINTING INSTALLED RAWBOARD CAPACITY IN GERMANY - TOP PL
Slide 36: Rest of the World: North America Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA REST OF THE WORLD › North America COMPETITIVE LANDSCAPE PLANTS PARTICLEBOARD 1 CAPACITY 0.9 Million m3 CANADA INSTALLED RAWBOARD CAPACITY IN NORTH AMERICA (PB+MDF) - TOP PLAYERS Millions m3 Arauco & Flakeboard 3.34 Roseburg 2.44 Temple Inland 1.74 Sier
Slide 37: Rest of the World: South Africa Competitive Landscape
GEOGRAPHIC REVIEW OF OPERATIONS SONAE INDÚSTRIA REST OF THE WORLD › South Africa COMPETITIVE COMPETITIVELANDSCAPE LANDSCAPE Sonae Indústria South Africa Capacity Thousands m3 PB 445 MDF 70 PARTICLEBOARD MDF INSTALLED RAWBOARD CAPACITY IN SOUTH AFRICA - TOP PLAYERS Millions m3 PLANTS 2 PG Bison 0.71
Slide 38: More on Sonae Indústria
MORE ON SONAE INDÚSTRIA
Slide 39: Wood Cycle
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA WOOD CYCLE 39
Slide 40: CO2 Emissions Mitigation
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA CO2 EMISSIONS MITIGATION WOOD-BASED PANELS HELP TO MITIGATE CLIMATE CHANGE: * • forests are a recognised carbon sink (through photosynthesis) • forestry products are Carbon Stores • wood-based panels are actually long- term carbon stores if used in constructio
Slide 41: Sustainable Use of Wood and Recycling
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA SUSTAINABLE USE OF WOOD AND RECYCLING WOOD-BASED PANELS INCORPORATE A HIGH PERCENTAGE OF SAWMILL CO- PRODUCTS AND WOOD RESIDUES AS RAW MATERIALS* • forestry residues • pallets • old or used wood based panels • old or used furniture 41 * for further details ple
Slide 42: Sustainable Use of Wood and Recycling: Forestry Resources
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA SUSTAINABLE USE OF WOOD AND RECYCLING WOOD-BASED PANELS PLAY A KEY ROLE IN THE SUSTAINABLE USE OF FORESTRY RESOURCES AS THEY:* • Represent the natural alternative to solid wood, replacing it in an increasing number of applications • Allow significant dimension
Slide 43: Cogeneration (CHP)
MORE ON SONAE INDÚSTRIA SONAE INDÚSTRIA COGENERATION (CHP) ENERGY IS PRODUCED IN COMBINED HEAT AND POWER PLANTS (CHP): • non-recyclable waste wood (biomass) is used as fuel for thermal energy production to be used in industrial processes • surplus heat is used to additional produce electricity to su
Slide 44: Safe Harbour
SAFE HARBOUR This document may contain forward-looking information and statements, based on management’s current expectations or beliefs. Forward-looking statements are statements that are not historical facts. These forward-looking statement are subject to a number of factors and uncertainties that
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