INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION August 2011

2 OVERVIEW 2

3 OVERVIEW SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE AT 30 th JUNE 2011 EFANOR FREE FLOAT % % Sonae Indústria SGPS 3

4 OVERVIEW WE ARE ONE OF THE LARGEST WOOD PANEL PRODUCERS IN THE WORLD. WITH 27 PLANTS LOCATED IN 7 COUNTRIES AND SPREAD ACROSS 3 CONTINENTS. OUR BUSINESS IS EXCLUSIVELY FOCUSED ON THE PRODUCTION OF WOOD BASED PANELS. 4

5 OVERVIEW OUR OPERATIONS * * As of 1 st August

6 OVERVIEW OUR PRODUCTS OVER 90% OF OUR RAWBOARD CAPACITY IS TO MANUFACTURE PB & MDF. PB MDF OSB Very versatile Suitable for all general uses in furniture and construction Excellent substitute for solid wood Ideal for furniture, flooring and building industry requirements Suitable for structural and non-structural applications in the construction industry-highly resistant PB Particleboard MDF Medium Density Fiberboard OSB Oriented Strand Board 6

7 OVERVIEW OUR PRODUCTS WITH VARIOUS APPLICATIONS KITCHEN / OFFICE / HOME FURNITURE CONSTRUCTION FLOORING DECORATION PACKAGING 7

8 OVERVIEW SALES IN 2010, APPROXIMATELY 77% OF OUR SALES WERE GENERATED IN EUROPE WE TRANSFORM MORE THAN 50% INTO VALUE ADDED PRODUCTS SALES BY MARKET SALES BY PRODUCT CANADA 12% S.AFRICA 11% IBERIAN P. 25% FLOORING 2% T&G 5% OTHERS 8% PB 21% UK 5% FRANCE 11% CTS 9% MDF 17% GERMANY 36% MF 29% OSB 8% HB 1% T&G - Tongue and groove CTS - Cut to size 8

9 OVERVIEW OUR HISTORY SONAE (Sociedade Nacional de Estratificados, SARL) was established to manufacture decorative High Pressure laminates Acquisition and modernization of AGLOMA the largest domestic Particleboard producer in Portugal Starting the international expansion with the acquisition of SPANBOARD in Northern Ireland Maia Oliveira do Hospital (where AGLOMA began) st Headquarter of Sonae, Porto Acquisition of a 50% shareholding in NOVOPAN particleboard manufacturer in Portugal and beginning of Particleboard production Consolidation of the leadership position in Portugal with the acquisition of SIAF and PAIVOPAN Mangualde (where SIAF began) 9

10 OVERVIEW OUR HISTORY SINCE 1993 S INSTALLED CAPACITY GREW THROUGH BOTH ACQUISITIONS AND ORGANIC GROWTH. Millions of m : Investment period in Greenfield plants in Brazil, South Africa and the UK 1998: Acquisition of GLUNZ with operations in Germany, France and the UK : Restructuring of Glunz Investment period in Portugal, Spain, Canada and Brazil. Acquisition of Sappi in South Africa 2005: JV with Tarkett (Germany) 2006: Acquisition of Hornitex and Darbo 2008 and 2009: Restructuring Phase; August 2009: sale of Brazilian operations April 2010: sale of Lure plant (France) : Acquisition of TAFISA the second largest producer in Spain with production facilities in Spain and Canada 6,71 7,34 10,1 8,0 7, ,83 1,

11 OVERVIEW WOOD BASED PANEL PLAYERS WE ARE ONE OF THE LARGEST GLOBAL MANUFACTURERS OF WOOD BASED PANELS IN EUROPE AND WORLDWIDE EUROPE Thousands of m 3 WORLDWIDE Thousands of m 3 M&P Kaindl (Kronospan) M&P Kaindl (Kronospan) Sonae Indústria Egger Swiss Krono Group Pfleiderer Finsa Sonae Indústria Pfleiderer Egger Louisiana-Pacific Swiss Krono Group Norbord Kastamonu Entegre Georgia-Pacific Mauro Saviola Duratex + Satipel Fantoni Finsa Unilin Masisa Frati Weyerhaeuser Norbord Ainsworth Triax Flakeboard Interbon 980 Roseburg Constantia Iso 900 Kastamonu Entegre Swedwood 640 Temple Inland As of 1 st August 2011

12 OVERVIEW CAPACITY PRODUCTION TOTAL CAPACITY (RAWBOARD) IS 7.5 MILLION M 3, APPROXIMATELY 80% OF WHICH IS LOCATED IN EUROPE. RAWBOARD CAPACITY BY REGION RAWBOARD CAPACITY BY PRODUCT * Thousands of m 3 Thousands of m * Central Europe Iberian Pen. RoW PB MDF OSB PB MDF OSB Central Europe Iberian Pen. RoW Central Europe: France, Germany and the UK RoW (Rest of the World): Canada and South Africa *Excludes m 3 HB production capacity (located in Iberia) As of 1 st August

13 OVERVIEW OVERVIEW FIGURES FY 10 CONSOLIDATED TURNOVER OF 1.3 BILLION EUROS RECURRENT EBITDA OF 71 MILLION EUROS; MARGIN OF 6% TOTAL EBITDA OF 53 MILLION EUROS, WHICH INCLUDES CHARGES FOR RESTRUCTURING COSTS AND 7 MILLION EURO GAIN FROM THE SALE OF THE LURE PLANT. TURNOVER & RECURRENT EBITDA MARGIN RECURRENT EBITDA Total EBITDA Millions of Euros % % 6% 6% 4% FY06 FY07 FY08 FY09 FY Millions of Euros % 13% % 46 6% 4% FY06 FY07 FY08 FY09 FY Millions of Euros FY06 FY07 FY08 FY09 FY10 13

14 OVERVIEW GEOGRAPHICAL REGIONS WITH VARYING LEVELS OF PROFITABILITY BETWEEN OUR 3 MAIN GEOGRAPHICAL REGIONS: Mn RoWTurnover & Recurrent EBITDA Margin ,0% Mn TURNOVER & RECURRENT EBITDA CENTRAL EUROPE 14,1% 15,3% 13,7% ,0% ,0% 6,7% ,0% FY08 FY09 FY10 Turnover Turnover W/o Brazil Margin Margin W/o Brazil ,6% 0,2% 0,0% 200-4,0% -5,0% 0 FY08 FY09 FY10-10,0% 14

15 HIGHLIGHTS OF 1H11 RESULTS 15

16 HIGHLIGHTS OF 1H11 RESULTS CONSOLIDATED OPERATIONAL REVIEW Comparing 2Q11 with 1Q11: Turnover increased by 1%, to 356 million Euros Recurrent EBITDA doubled to 35 million Euros Net losses increased to 24 million Euros, entirely due to charging non-operational provisions of 25 million Euros Comparing 1H11 with 1H10: Turnover increased by 7%, from 659 to 708 million Euros Recurrent EBITDA margin recovered 3pp reaching 7% (euro millions) (euro millions) 2Q11 2Q11 2Q10 1Q11 2Q11 /2Q10 /1Q11 1H10 1H / 2010 Consolidated Turnover % 1% % EBITDA % 99% % Recurrent EBITDA % 101% % Recurrent EBITDA Margin % 6,5% 5,0% 9,9% 4,4% 7,4% Net Profit/(Loss) attributable to Shareholders (6) (21) (24) (289%) (16%) (41) (45) (10%) Net Debt (1%) (0%) (1%) 16

17 HIGHLIGHTS OF 1H11 RESULTS CAPACITY UTILIZATION AND VOLUMES SOLD Capacity utilization in 1H11 is 5pp higher when compared to 1H10 and 16pp higher when compared to1h09. Millions of m ,1 9,9 10,1 90% 85% 10,0 75% 1,6 70% 1,9 2,6 2,9 9,7 8,8 63% 66% 3,7 3,0 74% 77% 79% 71% 7,5 7,5 7,5 7,5 1,8 2,1 1,9 1,8 100% 80% 60% 4 8,5 7,9 7,5 7,0 40% 2 5,9 5,8 5,7 5,4 5,6 5,6 20% 0 1H07 FY07 1H08 FY08 1H09 FY09 1H10 FY10 1Q11 1H11 Volumes sold (Annualized) Unutilized capacity Capacity Utilization (production) 0% 17

18 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 HIGHLIGHTS OF 1H11 RESULTS PRICE AND COST EVOLUTION CONSOLIDATED QUARTERLY AVERAGE PRICES (eur/m3) BASE 100:1Q07 * Prices have been moving 1,4 1,2 1,0 0,8 0,6 0,4 PB MDF OSB MFC CONSOLIDATED QUARTERLY AVERAGE COSTS (eur/m3) BASE 100:1Q07 * In 2Q11, variable costs per m 3 have slightly decreased (also impacted by the seasonal effect). 1,4 1,2 1,0 0,8 0,6 0,4 * (excluding Brazilian Figures) Wood Chemicals 18

19 Jan-03 Abr-03 Jul-03 Out-03 Jan-04 Abr-04 Jul-04 Out-04 Jan-05 Abr-05 Jul-05 Out-05 Jan-06 Abr-06 Jul-06 Out-06 Jan-07 Abr-07 Jul-07 Out-07 Jan-08 Abr-08 Jul-08 Out-08 Jan-09 Abr-09 Jul-09 Out-09 Jan-10 Abr-10 Jul-10 Out-10 Jan-11 Abr-11 USD / mton Out-03 Jan-04 Abr-04 Jul-04 Out-04 Jan-05 Abr-05 Jul-05 Out-05 Jan-06 Abr-06 Jul-06 Out-06 Jan-07 Abr-07 Jul-07 Out-07 Jan-08 Abr-08 Jul-08 Out-08 Jan-09 Abr-09 Jul-09 Out-09 Jan-10 Abr-10 Jul-10 Out-10 Jan-11 Abr-11 Jul-11 Euro / mton HIGHLIGHTS OF 1H11 RESULTS CHEMICALS: UREA AND METHANOL CHEMICAL COSTS HAVE A SIGNIFICANT IMPACT IN OUR COST STRUCTURE (AROUND 30% VARIABLE COSTS) UREA AND METHANOL ARE THE MAIN CHEMICALS USED TO PRODUCE RESINS USED IN OUR PRODUCTION NWE ICIS Methanol Prices - Out. 2003_ Contract Price 280 SPOT Price UREA SPOT PRICES source: ICIS Lor FOB EAST EUROPE FOB Baltic Sea

20 HIGHLIGHTS OF 1H11 RESULTS CONSOLIDATED OPERATIONAL REVIEW Consolidated operational figures: Consolidated turnover in 2Q11 totalled 356 million Euros, representing a marginal increase compared to 1Q11. The Recurrent EBITDA margin increased 5pp up to 10%. Compared to 1H10, consolidated turnover for 1H11 increased by 7% in spite of a reduction of approximately 5% in the installed capacity and of a loss of 1% in volumes sold. The Recurrent EBITDA margin increased 3pp, to 7%, as a result of the effectiveness of the restructuring measures implemented and a stronger market in Germany and France. Mn Consolidated Turnover & Recurrent EBITDA Margin Mn Consolidated Turnover & Recurrent EBITDA Margin ,5% 9,0% 4,5% 5,0% 9,9% 7,4% 4,4% 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11 20

21 Geographic Review of Operations IBERIA Iberia continued to experience tough market conditions due to the macroeconomic situation and the consequent austerity measures, which are causing a very depressed demand. HIGHLIGHTS OF 1H11 RESULTS In spite of this, volumes sold from Iberia in 2Q11, compared to 1Q11, recovered by 6%, and turnover increased 7% to 105 million Euros. Additionally, capacity utilization increased by 6pp, which allowed us to better dilute fixed costs. As a result, the recurrent EBITDA margin recovered by 3pp to 10%. Mn 99 9,2% Iberia Turnover & Recurrent EBITDA Margin 84 9,3% 93 4,6% 98 6,7% ,0% 2Q10 3Q10 4Q10 1Q11 2Q11 Mn Iberia Turnover & Recurrent EBITDA Margin 202 Comparing 1H10 with 1H11, Iberian volumes sold increased by 2% and turnover by 6% to 202 million Euros. Nevertheless, recurrent EBITDA margin kept the level at 8%, due to the 9% higher production costs ,9% 1H10 8,4% 1H11 21

22 HIGHLIGHTS OF 1H11 RESULTS Geographic Review of Operations CENTRAL EUROPE (Germany, France and the UK) Mn 181 1,1% Central Europe Turnover & Recurrent EBITDA Margin ,7% -0,1% ,5% 7,5% 2Q10 3Q10 4Q10 1Q11 2Q11 In France, comparing 2Q11 with 1Q11, volumes sold were kept but turnover increased by 3% and capacity utilization achieved 74%. This effect combined with higher operational efficiencies, impacted positively the recurrent EBITDA margin which recovered to 2%. Comparing 1H11 with 1H10, volumes sold increased by 15% and capacity utilization by 12pp, on a like-for-like basis (excluding the volumes sold and turnover of the Lure plant). This led to a better dilution of fixed costs, which combined with higher operational efficiency, enabled us to recover 9pp in the recurrent EBITDA margin. Mn Central Europe Turnover & In Germany, during 2Q11, compared to 1Q11, volumes sold Recurrent EBITDA Margin continued at high levels, capacity utilization reached 93% and turnover increased by 2%. These effects pulled the Recurrent 395 EBITDA Margin up. Comparing 1H11 with 1H10, volumes sold increased by 5% and turnover improved by 16%. This, combined 355 4,6% with higher operational efficiency, led to a 6pp recovery in the recurrent EBITDA margin, despite much higher variable costs. -1,8% 1H10 1H11 In the UK, there was a fire at our UK plant, which interrupted normal production activity during June. This led to a lower capacity utilization during 2Q11, which reduced Recurrent EBITDA. 22

23 HIGHLIGHTS OF 1H11 RESULTS Geographic Review of Operations CENTRAL EUROPE (Germany, France and the UK) 3 COUNTRIES WITH A DIFFERENT RECOVERY PACE Mn RECURRENT EBITDA BY COUNTRY 8,0 15,0 Mn RECURRENT EBITDA BY COUNTRY 18, ,9-0,2 3, , Q10 3Q10 4Q10 1Q11 2Q H10 1H11 UK France Germany UK France Germany

24 HIGHLIGHTS OF 1H11 RESULTS Geographic Review of Operations REST OF THE WORLD (Canada and South Africa) In Canada, our volumes sold in 2Q11 have increased 3% compared to 1Q11, turnover in local currency is 6% above 1Q11 and the Recurrent EBITDA margin recovered by 2pp. Compared to 1H10, 1H11 turnover in local currency has fallen by 5%, which combined with higher variable costs, led to a 3pp decline in the recurrent EBITDA margin. However, the value added part of the business continues to strengthen Mn ,0% RoW Turnover & Recurrent EBITDA Margin 18,8% 16,3% ,7% 15,6% 2Q10 3Q10 4Q10 1Q11 2Q11 In S.A., volumes sold in 2Q11, compared with 1Q11, decreased by 5% and turnover in local currency fell by 4%. Nevertheless, in 2Q11 Recurrent EBITDA recovered by 5pp helped by lower costs. Mn RoW Turnover & Recurrent EBITDA Margin Comparing 1H11 with 1H10, volumes sold increased 7% and turnover in local currency is up 5%. However, the recurrent EBITDA margin is 1pp lower, as a result of higher production costs, particularly for wood and electricity. 16,4% 1H10 14,2% 1H11 24

25 1Q10 1H10 9M Q11 1H11 HIGHLIGHTS OF 1H11 RESULTS CAPEX, WORKING CAPITAL Additions to Fixed Assets in 1H11 were 12 million Euros, mostly related to investments in essential maintenance, Health & Safety and Environmental improvements. Working Capital increased by 22 million Euros during 2Q11, mainly due to a 10 million Euros increase in inventories, which are necessary to cover the summer shut downs. Additional Fixed Assets Million Mn WORKING CAPITAL: Q 2Q 3Q 4Q 25

26 HIGHLIGHTS OF 1H11 RESULTS NET DEBT During 2Q11, Net Debt levels were stable. Compared to 1H10, Net debt reduced by 4 million Euros. The Net Debt to Recurrent EBITDA ratio for the last 12 months is 7.7x, which is down from 13.0x, one year ago. Million of Euros 950 3Q08: Acq. of 37% Tafisa Brasil and Dividends Payment 3Q09: Sale of Brazil operations Sale of Lure plant Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 1Q11 1H11 26

27 HIGHLIGHTS OF 1H11 RESULTS SCHEDULED LOAN REPAYMENTS As already announced, we raised in July 81 million CADs at Tafisa Canada SCHEDULED LOAN REPAYMENTS* (as of 30th June 2011) Refinancing already 100 assured H11 1H12 2H12 1H13 2H Our debt has no consolidated financial ratio covenants Does not include Securitization or Short term facilities

28 HIGHLIGHTS OF 1H11 RESULTS PROFIT & LOSS ACCOUNT (euro millions) 2Q11 2Q11 (euro millions) % chg 2011/ 2Q10 1Q11 2Q11 /2Q10 /1Q11 1H10 1H Consolidated Turnover % 1% % Other Operational Income (53%) 36% (55%) EBITDA % 99% % Recurrent EBITDA % 101% % Recurrent EBITDA Margin % 6,5% 5,0% 9,9% 4,4% 7,4% Depreciation and amortisation (22) (22) (22) 3% 1% (52) (44) 16% Provisions and Impairment Losses (4) (7) (28) (525%) (291%) (8) (35) (352%) Operational Profit 7 (7) (10) (232%) (33%) (17) (17) (4%) Net Financial Charges (12) (11) (14) (16%) (21%) (22) (25) (11%) o.w. Net Interest Charges (6) (6) (7) (22%) (16%) (11) (14) (20%) o.w. Net Financial Discounts (4) (3) (3) 5% (16%) (6) (6) 2% Profit before taxes (EBT) (4) (19) (23) (432%) (26%) (39) (42) (7%) Taxes (2) (3) (1) 41% 56% (2) (4) (55%) o.w. Current Tax (1) (1) (0) 63% 24% (1) (1) 18% Net Profit/(Loss) attributable to Shareholders (6) (21) (24) (289%) (16%) (41) (45) (10%) 28

29 HIGHLIGHTS OF 1H11 RESULTS BALANCE SHEET (euro millions) Q11 1H 11 Non Current Assets Tangible Assets Goodwill Deferred Tax Other Non Current Assets Current Assets Inventories Trade Debtors Cash & Investments Other Current Assets Total Assets Shareholders' Funds Minority Interests Shareholders' Funds + Minority Interests Interest Bearing Debt Short term L-M term Trade Creditors Other Liabilities Total Liabilities Total Liabilities, Shareholders' Funds and Minority Interests

30 LOOKING FORWARD 30

31 HIGHLIGHTS OF 1H11 RESULTS LOOKING FORWARD We expect to be able to continue to achieve the recent recurrent EBITDA margin levels, supported by operational efficiency gains and strong markets in Central Europe. However, 3Q11 activity is likely to be affected by the normal summer shut downs. We will continue to focus on initiatives to achieve operational improvements, tight working capital management and the deleveraging of our balance sheet. 31

32 OUR STRATEGY 32

33 OUR STRATEGY OUR FOCUS Our PORTFOLIO STRATEGY: Protect market share and profitability in Iberia Increase Profitability and improve competitiveness in Central Europe Grow in our most profitable markets But our SHORT TERM STRATEGY during the crisis has been focused on: Balance Sheet: by minimizing working capital, being extremely selective in making investments and looking for other opportunities to strengthen our Balance Sheet. P&L: Increasing Profitability, by reducing fixed costs and increasing plants efficiency; 33

34 1Q08 1H08 9M Q09 1H09 9M Q10 1H10 9M Q11 1H11 OUR SHORT TERM STRATEGY FOCUS ON BALANCE SHEET MANAGING FOR CASH WORKING CAPITAL CONTINUES TO BE A TOP PRIORITY INVESTMENTS HAVE BEEN MINIMIZED Additional Fixed Assets Million WORKING CAPITAL: Mn Q 2Q 3Q 4Q 34

35 OUR SHORT TERM STRATEGY FOCUS ON BALANCE SHEET STRENGTHENING OUR BALANCE SHEET REASONS TO SELL TAFISA BRASIL BRAZIL RAWBOARD CAPACITY PLANS (PB+MDF) Thousands m 3 we wanted to strengthen our balance sheet Capacity has been increasing which would deteriorate the industry in Brazil in the coming years and consumption was not expected to grow so fast 8. million m 3 (2012) 2,500 2,000 1,500 1, , ,240 1, ,350 1, , million m 3 (2009) Duratex satipel Berneck Masisa Fibraplac Eucatex INSTALLED RAWBOARD CAPACITY IN BRAZIL - TOP PLAYERS - June 09 Millions m 3 June Only includes the largest players Duratex + Satipel 3.22 Masisa Berneck Sonae Indústria Eucatex Arauco This is the market where we were farther away from a leadership position Fibraplac Louisiana-Pacific

36 OUR SHORT TERM STRATEGY FOCUS ON BALANCE SHEET STRENGTHENING OUR BALANCE SHEET IMPACTS FROM SELLING TAFISA BRASIL Total Value of the transaction: 121 million Euros Net Debt + contingencies: 38 million Euros Enterprise Value: 159 million Euros Multiple of 7.8x (adding 60 million Euros ICMS to the Enterprise value; with a total last 12 months EDITDA of 28,2 million Euros) Total Net debt reduction: 135 million Euros Positive Impact on Shareholders Funds: 73 million Euros Capital gain: 84 million Euros Working capital decreased by approx. 25 million Euros 36

37 OUR SHORT TERM STRATEGY FOCUS ON BALANCE SHEET STRENGTHENING OUR BALANCE SHEET IMPACTS FROM SELLING LURE PLANT Production Capacity: m 3 PB Sold to Swedspan, a subsidiary of INGKA Group (which also owns IKEA Group) Total Net debt reduction: 68 million Euros Positive Impact on Shareholders Funds: 7 million Euros Capital gain: 7 million Euros 37

38 OUR SHORT TERM STRATEGY FOCUS ON P&L INCREASING PROFITABILITY WE HAVE BEEN ADAPTING OUR CAPACITY TO THE MARKET DEMAND, BY CLOSING OUR LESS EFFICIENT PLANTS AND/OR LINES IN ORDER TO INCREASE PROFITABILITY 27 * As of 31 st March 2011 Coleraine continues to have a MF line Kaisersesch continues to have an Impregnation center 38 38

39 OUR SHORT TERM STRATEGY FOCUS ON P&L INCREASING PROFITABILITY IN TOTAL, WE HAVE CLOSED m 3 CAPACITY We closed 5 plants: We stopped two lines: Coleraine in the UK m 3 PB MDF Line 1 in Meppen Topan I m 3 George in S.A m 3 PB PB Line in Valladolid m 3 Châtellerault in France m 3 OSB St. Dizier in France m 3 MDF Kaisersesch in Germany m 3 PB In 2010 Duisburg in Germany m 3 PB AND REDUCED FIXED COSTS BY 79* MILLION EUROS UNTIL THE END OF FY10, WHEN COMPARED FY08 WITH FY10 (*64 million Euros, excluding Brazil) 39

40 GEOGRAPHIC REVIEW OF OPERATIONS 40

41 GEOGRAPHIC REVIEW OF OPERATIONS IBERIA IBERIA COMPETITIVE LANDSCAPE Sonae Indústria Iberian Capacity Thousands m 3 PB MDF 500 HB 70 PARTICLEBOARD MDF FLOORING HARDBOARD HPL CHEMICALS OTHERS (FURNITURE, COMPONENTS, WOOD VENEER) As of 1 st August

42 GEOGRAPHIC REVIEW OF OPERATIONS IBERIA IBERIA COMPETITIVE LANDSCAPE INSTALLED RAWBOARD CAPACITY IN IBERIA - TOP PLAYERS Millions m 3 PLANTS 12 CAPACITY 1,79 Million m 3 CAPACITY UTILIZATION 1H11 72% Finsa/Utisa Sonae Indústria Interbon Losan 0,38 0,97 1,79 3,15 Tablicia 0,37 As of 1 st August

43 GEOGRAPHIC REVIEW OF OPERATIONS CENTRAL EUROPE CENTRAL EUROPE COMPETITIVE LANDSCAPE Sonae Indústria Central Europe Capacity Thousands m 3 MDF PB OSB 460 UK GERMANY FRANCE PARTICLEBOARD MDF HPL CPL OSB As of 1 st August

44 GEOGRAPHIC REVIEW OF OPERATIONS CENTRAL EUROPE CENTRAL EUROPE COMPETITIVE LANDSCAPE PLANTS 12 CAPACITY 4.25 Million m 3 CAPACITY UTILIZATION 1H11 83% INSTALLED RAWBOARD CAPACITY IN CENTRAL EUROPE - TOP PLAYERS Millions m 3 Sonae Indústria 4,25 Egger 3,79 Kronospan M&P Kaindl 2,60 Pfleiderer 2,22 * Swiss Krono Group 2,16 Finsa Norbord 1,17 1,15 *Already including the announced closures of Gschwend m 3 PB, Ebersdorf m 3 PB and Nidda m 3 MDF As of 1 st August

45 GEOGRAPHIC REVIEW OF OPERATIONS NORTH AMERICA REST OF THE WORLD NORTH AMERICA COMPETITIVE LANDSCAPE PLANTS 1 CAPACITY 0.9 Million m 3 CAPACITY UTILIZATION 1H11 74% INSTALLED RAWBOARD CAPACITY IN NORTH AMERICA (PB+MDF) - TOP PLAYERS Flakeboard 2,74 Roseburg 2,44 Pfleiderer Temple Inland 1,74 1,90 PARTICLEBOARD Sierra Pine 1,30 Sonae Indústria 0,90 Aconcagua 0,70 CANADA Plum Creek 0,56 As of 1 st August

46 GEOGRAPHIC REVIEW OF OPERATIONS SOUTH AFRICA REST OF THE WORLD SOUTH AFRICA COMPETITIVE LANDSCAPE Sonae Indústria S.A. Capacity Thousands m 3 PB 445 MDF 70 SOUTH AFRICA PARTICLEBOARD MDF As of 1 st August

47 GEOGRAPHIC REVIEW OF OPERATIONS SOUTH AFRICA REST OF THE WORLD SOUTH AFRICA COMPETITIVE LANDSCAPE PLANTS 2 CAPACITY 0,52 Million m 3 CAPACITY UTILIZATION 1H11 79% INSTALLED RAWBOARD CAPACITY IN SOUTH AFRICA - TOP PLAYERS PG Bison Millions m 3 0,71 Sonae Indústria 0,52 As of 1 st August

48 CORPORATE GOVERNANCE 48

49 CORPORATE GOVERNANCE BOARD OF DIRECTORS Belmiro de Azevedo [Chairman] Álvaro Cuervo García Paulo Azevedo Thomas Nystén BOARD OF DIRECTORS EXECUTIVE COMMITTEE Rui Correia [President of the ExCom] João Paulo Pinto [Vice - President of the ExCom] Christophe Chambonnet IBERIA GERMANY FRANCE UNITED KINGDOM CANADA SOUTH AFRICA Rui Correia Planning and Controlling Christophe Chambonnet Sales and Marketing João Paulo Pinto As of 1 st August 2011 Industrial and Technology 49

50 CORPORATE GOVERNANCE BOARD COMMITTEES BOARD COMMITTEES BAFC BOARD AUDIT AND FINANCE COMMITTEE SREC SOCIAL RESPONSIBILITY AND ENVIRONMENT COMMITTEE BNRC BOARD NOMINATION AND REMUNERATION COMMITTEE THOMAS NYSTÉN (IND) ÁLVARO CUERVO GARCÍA (IND) PAULO AZEVEDO BELMIRO DE AZEVEDO THOMAS NYSTÉN (IND) BELMIRO DE AZEVEDO ÁLVARO CUERVO GARCÍA (IND) PAULO AZEVEDO THOMAS NYSTÉN(IND) As of 1 st August

51 MORE ON 51

52 MORE ON HUMAN RESOURCES Approximately 4.8 thousand Employees at the end of December 2010 Number of Employees by country Number of Employees & Productivity Canada 313 S.A. 328 The Netherlands 16 Number of Employees 1) Productivity BASE 100: ,0 195,0 Germany 1589 Iberia ,0 163,8 149, ) , , , , ,0 145,0 120,0 100 UK 219 France ,0 1) FTE's Excluding Trainnes 2) Hornitex and Darbo 52

53 MORE ON SUSTAINABILITY SUSTAINABILITY REPORT OF 2008 and 2009 report can be found on the website Following issues were be included Vision, Mission, Values and Principles Code of Conduct Communication Strategy Sustainability Governance Economic Efficiency Environmental Resources and Efficiency People in the Organisation Local Communities Human rights Product Responsibility 53

54 MORE ON CO 2 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 construction applications 1 m 3 of panel = 270 kg C = 1 ton CO 2 equivalent! *for further details please see the Sustainability Reports 54

55 MORE ON 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 for further details please see the Sustainability Reports 55

56 MORE ON 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 dimensional flexibility, with tailor-made sizes specifically adapted to client / user needs for further details please see the Sustainability Reports 56

57 MORE ON COGENERATION (CHP) ENERGY IS PPRODUCED 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 supply local needs 57

58