Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — Q4 2017 Earnings Presentation
20 slides from Eucatex S.a. Industria E Comercio's earnings presentation, Mar 22, 2018
Slide 1: 4Q17 Eucatex Group Presentation
4Q17 Eucatex Group Presentation March 22, 2018
Slide 2: Eucatex Group
Eucatex Group Founded in 1951 Segments: Furniture, Resales, Construction and Export Markets Subsidiary in Atlanta, USA 75 eucalyptus farms, totaling 45,700 hectares 2,433 employees MDP and Fiberboard T-HDF/MDF Laminated Paints and Varnishes Seedling Nursery Flooring Cabo Sto. Salto/SP Salt
Slide 3: Highlights
Highlights Net Revenue • 4Q17: R$318.3 million, 11.9% higher • 2017: R$1,205.4 million, 5.3% higher Recurring EBITDA • 4Q17: R$59.5 million, an increase of 27.3% • 2017: R$212.7 million, an increase of 14.5% Recurring EBITDA Margin • 4Q17: 18.7%, up 2.3 p.p. • 2017: 17.6%, up 1.4 p.p. Recurring Net
Slide 4: Net Revenue
Operating Data Net Revenue 4Q16 4Q17 Var 2016 2017 Var R$284.5 million R$318.3 million 11.9% R$1,144.4 million R$1,205.4 million 5.3% Distribution by Product - 4Q17 Distribution by Segment - 4Q17 4
Slide 5: Construction: ABRAMAT Index - Domestic Market
Construction ABRAMAT Index - Domestic Market From 2013 to 2017, the index registered accumulated decline of 30.6%. Source: ABRAMAT 5
Slide 6: Panels Market: Effective Installed Capacity vs. Production
Panels Market Effective Installed Capacity (Fiberboard + MDF + MDP) vs. Production 2,702.0 2,702.0 2,496.0 2,460.5 24% 16% 32% 89.2 33% 2,010.9 309.0 313.4 193.9 1,737.0 1,537.9 1,461.9 4Q14 4Q15 4Q16 4Q17 Domestic Consumption Exports Iddle capacity % Change 4Q16 x 4Q17 For 2018, the start-up of 3 n
Slide 7: Wood Segment Net Revenue
Wood Segment Net Revenue 4Q16 4Q17 Var R$199.5 million R$228.3 million 15.4% 2016 2017 Var R$820.6 million R$872.5 million 6.3% Total Market ('000 m³) DOMESTIC + EXPORT MARKETS Source: IBÁ 7
Slide 8: Wood Segment
Wood Segment Installed Capacity Utilization - 4Q17 Breakdown of Costs - 4Q17 All Panels Resin Panels Non-Resin Panels (Fiberboard) 8
Slide 9: Paint Segment
Paint Segment Market - million gallons Net Revenue 4Q16 4Q17 Var R$68.4 million R$68.4 million 0.0% 2016 2017 Var R$260.0 million R$254.6 million -2.1% Variation 4Q17 x 4Q16 2017 x 2016 Breakdown of Costs - 4Q17 Eucatex -2.7% -5.8% Market 2.3% -0.9% Source: Eucatex Installed Capacity Utilization 56%
Slide 10: Financial Data
Financial Data Highlights (R$ million) 4Q17 V.A. % 4Q16 V.A. % Var. (%) 2017 V.A. % 2016 V.A. % Var. (%) Net Revenue 318.3 100.0% 284.5 100.0% 11.9% 1,205.4 100.0% 1,144.5 100.0% 5.3% Fair value of biological assets (0.6) -0.2% 8.3 2.9% -107.4% 22.5 1.9% 29.8 2.6% -24.6% Cost of products sold (232.5
Slide 11: Debt
Debt Debt (R$ Million) 2017 2016 Var. (%) Short Term Debt 245.2 241.3 1.6% Long Term Debt 106.1 114.4 -7.2% Gross Debt 351.3 355.7 -1.2% Cash and Cash Equivalents 20.3 23.6 -13.8% Net Debt 331.0 332.1 -0.3% % Short Term Debt 70% 68% 2 p.p. Net Debt/EBITDA 1.6 1.8 -14.3% Debt Profile 11
Slide 12: Investments
Investments Investments Made Planned for 2018 R$96 million 12
Slide 13: Sustainability - Forestry
Sustainability - Forestry 75 farms Average Radius for eucalyptus plantation, Salto Botucatu totaling 165 km 35 km 45,700 hectares Newly Planted Forests and Seedling Management (ha) 13
Slide 14: Material Fact
Material Fact EUCATEX S/A – INDÚSTRIA E COMÉRCIO, with registered office at Av. Presidente Juscelino Kubitschek, 1830 – Torre I – 11º andar – São Paulo/SP, informs the market that on January 31, 2018, it made a binding proposal, accepted by Duratex S.A., involving the exchange of assets between the
Slide 15: Considerations
The Operation High level of synergy Gain in competitiveness Pros New Markets Preservation of jobs Technology for production of Fiberboard without urea formaldehyde resin. Considerations Operation must be submitted to CADE for approval Forest supply Working Capital 15
Slide 16: Overview of Plant
Overview of Plant MDF Printer Fiberboard 1, 2 and 3 BP Painting Line Industrial Area: 126,000 m2 Built-up Area: 113,000 m2 16
Slide 17: Occupancy Plan
Occupancy Plan After CADE's approval: 40% of production destined for Export; and Replacement of door and wall partition covers in HDF with Fiberboard. Capacities Current Eucatex Eucatex after Transaction Growth Fiberboard 2 Lines – 240,000 m³ / year 5 Lines – 440,000 m³ / year 83% Panels and Doo
Slide 18: Timetable
Timetable 440,000 m³/year + 3 to 4 of Fiberboard to months supply domestic + 45 days CADE and export Creation of Approval Clean Team markets + 1 month Presentation of Document to CADE 02/23 Submission of Eucatex Questionnair e 18
Slide 19: Clean Team
Clean Team Eucatex Duratex Professionals Professionals Clean Team Analyze the businesses of both companies and prepare the framework of the partnership and the companies after closure; Conduct economic efficiency studies aimed at capturing synergies and expansion opportunities; and Monitor nor
Slide 20: José Antonio G. de Carvalho, Executive Vice President and IRO
José Antonio G. de Carvalho Executive Vice President and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations +55 (11) 3049-2473 / ri@eucatex.com.br
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