Corporate Presentation. 2 nd quarter 2014

Transcription

1 Corporate Presentation 2 nd quarter 2014

2 Highlights Performance during the period hurt by an unfavorable environment: Low economic activity expansion environment Inflation as measured by the IPCA index around the ceiling of the band metric Consumers and Industry s Confidence Index in low levels Fewer number of working days (world cup effect) ABRAMAT: building material industry s revenues drop 4.6% during the period between January and June of 2013 ABIPA: indicator points a quarterly retraction for domestic shipments of 4.2% Adjusted and Recurrent EBITDA totals R$207.5 million and margin of 21.7% Net Income of R$58.6 million Approved the distribution of Interest on Own Capital for a total of R$72.7 million 2

3 Operating highlights: capacities and occupancy ratio Wodd Division with Tablemac ANNUAL CAPACITY (in '000 m³) NOMINAL EFFECTIVE* AVAIABLE** OCCUPANCY RATE (over available - %) MDF 2,470 2,100 1,880 67% MDP 2,200 1,870 1,870 59% Hardboard % Total 4,880 4,165 3,945 64% (*) Duratex s effective annual capacity based on the already installed lines and after the full ramp-up process of the new MDF line (**) Existing situation during the quarter Deca Division ANNUAL CAPACITY (in 000 items) NOMINAL OCCUPANCY RATE SANITARY WARE 12,250 63% METAL FITTINGS 2,600* 77% Total 36,850 72% (*) Includes capacity of Thermosystem (electronic showers) and Mipel (valves) 3

4 Financial highlights: net revenues R$ million 2Q14 1Q14 Var % 2Q13 Var % 1HY14 1HY13 Var % Net Revenue % % 1, , % Wood Division (Brazil) % % 1, , % Tablemac (Colombia) % Deca Division % % % Gross Margin 31.2% 34.1% % % 37.4% - Net Revenues Breakdown (2Q14) Net Revenues: Brazil and abroad (2Q 2014) Abroad 12% Wood (Colombia) 7% Deca 35% Wood (Brazil) 58% 58,3% Brazil 88% 4

5 Financial highlights: operating results (in R$ million) - Brazil 2Q14 1Q14 Var % 2Q13 Var % 1HY14 1HY13 Var % Volume Deca (in '000 items) ,9% ,6% ,3% Volume Wood (in m 3 ) ,2% ,4% ,4% EBITDA 195,6 230,7-15,2% 304,2-35,7% 426,3 585,1-27,1% EBITDA Margin 21,9% 26,0% - 31,3% - 24,0% 31,9% - Recurrent Net Income 53,4 126,5-57,8% 134,5-60,3% 179,9 277,4-35,1% Recurrent ROE 4,7% 11,5% - 12,9% - 8,1% 13,4% - Colombia 2Q14 1Q14 Var % 1HY14 Volume Wood (in m 3 ) ,9% EBITDA 11,9 9,3 28,0% 21,2 EBITDA Margin 18,2% 22,4% - 19,8% Recurrent Net Income 5,2 4,7 10,6% 9,9 Recurrent ROE 6,4% 5,9% - 6,2% Consolidado 2Q14 1Q14 Var % 2Q13 Var % 1HY14 1HY13 Var % Volume Deca (in '000 items) ,9% ,6% ,3% Volume Wood (in m 3 ) ,0% ,2% ,5% EBITDA 207,5 240,0-13,6% 304,2-31,8% 447,6 585,1-23,5% EBITDA Margin 21,7% 25,8% - 31,3% - 23,7% 31,9% - Recurrent Net Income 58,6 131,2-55,3% 134,5-56,4% 189,8 277,4-31,6% Recurrent ROE 5,2% 11,8% - 12,9% - 8,5% 13,4% - 5

6 Market highlights: Brazilian demand for panels (in 000 m 3 ) MDF 1,413 1,861 2,972 3,065 2,263 2,352 2,037 CAGR: 13.4 % (4.4 x GDP) +9.8% 3,528 3,874 Total (MDF+P) -3.4% -9.5% y-o-y % q-o-q 3.3% 1,809 1, % -3.7% HY13 1S13 1HY14 1S14 2Q13 2T13 1Q14 1T14 2T14 2Q14 MDP 2,102 2,186 2,548 2,633 2,431 2,885 2,985 CAGR: 5.5% (1.8x GDP) +3.6% 3,175 3, % 1,588 1, % -4.9% HY13 1S13 1HY14 1S14 2Q13 2T13 1Q14 1T14 2T14 2Q14 SOURCE: ABIPA ( ANNUAL CAPACITY (in 000 m³) NOMINAL EFFECTIVE * AVAILABLE* MDF MDP (*) Duratex s estimate: Total Avaiable capacity : based on the lines already installed, considering the rump-up periods of new lines. Effective: with full ramp-up 6

7 Financial highlights: Wood Division (in R$ million) - Wood Brazil 2Q14 1Q13 Var % 2Q13 Var % 1HY14 1HY13 Var % Shipped Volume Wood (in m 3 ) ,2% ,4% ,4% Net Revenue 554,3 542,4 2,2% 620,5-10,7% 1.096, ,6-6,6% Gross Profit 160,3 176,6-9,2% 221,6-27,7% 336,9 439,8-23,4% Gross Margin 28,9% 32,6% - 35,7% - 30,7% 37,4% - Recurring Adjusted EBITDA 137,3 156,1-12,0% 223,5-38,6% 293,4 427,7-31,4% Recurring Adjusted EBITDA 24,8% 28,8% - 36,0% - 26,8% 36,4% - Margin (in R$ million) - Wood Colombia 2Q14 1Q14 Var % 1HY14 Shipped Volume Wood (in m 3 ) ,9% Net Revenue 65,6 41,6 57,6% 107,2 Gross Profit 21,2 14,5 46,2% 35,7 Gross Margin 32,3% 34,8% - 33% Recurring Adjusted EBITDA 11,9 9,3 28,0% 21,2 Recurring Adjusted EBITDA Margin 18,2% 22,4% - 19,8% Wood Brazil + Colombia 2Q14 1Q14 Var % 2Q13 Var % 1HY14 1HY13 Var % Shipped Volume Wood (in m 3 ) 646, ,563 2,0% ,2% ,5% Net Revenue ,2% 620,5-0,1% 1.203, ,6 2,5% Gross Profit ,0% 221,6-18,0% 372,7 439,8-15,3% Gross Margin 29.3% 32.7% - 35,7% - 31,0% 37,4% - Recurring Adjusted EBITDA ,8% 223,5-33,2% 314,7 427,7-26,4% Recurring Adjusted EBITDA Margin 24.1% 28.3% - 36,0% - 26,1% 36,4% - 7

8 Market highlights: building materials market performance ABRAMAT INDEX - DOMESTIC MARKET Accomplished and expected for 2014 Source: Associação Brasileira da Indústria de Materiais de Construção ABRAMAT INDEX: indicator os sales performance, in R$, for the Building Materials Industry; performance in relation to the same period of the previous year (deflated) 8

9 Financial highlights: Deca Division (in R$ million) - Deca 2Q14 1Q14 Var % 2Q13 Var % 1HY14 1HY13 Var % Shipped Volume Deca (in '000 items) ,9% ,6% ,3% Net Revenue 337,7 345,6-2,3% 351,5-3,9% 683,3 662,2 3,2% Gross Profit 116,7 125,5-7,0% 136,5-14,5% 242,3 259,9-6,8% Gross Margin 34,6% 36,3% - 38,8% - 35,5% 39,2% - Recurring Adjusted EBITDA 58,3 74,6-21,8% 80,7-27,8% 132,9 157,4-15,6% Recurring Adjusted EBITDA Margin 17,3% 21,6% - 23,0% - 19,5% 23,8% - 9

10 Indebtedness R$ /06/ /03/2014 Var R$ 30/06/2013 Var R$ Short Term Debt Long Term Debt Total Debt Cash Net Debt Net Debt/Equity (in %) 41,6% 41,2% - 35,2% - Net Debt/EBITDA (Last 12 months) 1,76 1,60-1,30 - AMORTIZATION SCHEDULE (R$ million) ORIGIN OF DEBT (%) 834,6 246,4 978,4 352,3 404,6 727,5 Cash Caixa e and após beyond Colombia 2.1% Foreign Currency* 22.1% Domestic Currency 75.8% *(100% hedge) 10

11 Consolidated CAPEX (R$ million) 3,847.3 mn 650e 891, ,6 635,8 832,2 601,5 283,2 366,8 Tablemac: 151,7 M Caxuana: 58,8 M Other: 156,3 M Wood Division: 2009: 2 new MDF plants (Uberaba/MG and Agudos/SP) 350,000 m³ and 800,000 m³, respectively, and one MDP (Taquari / RS) facility with 700,000m³ 2010: conclusion of the resin plant (Agudos/SP) 2012: acquisition of a 37% stake in Tablemac s equity capital 2013: new MDF plant (Itapetininga / SP) with 520,000 m³ capacity 2014: acquisition of Caxuana s forests and an additional stake in Tablemac s equity capital reaching 80.62% participation Deca Division: 2009: acquisition of Cerâmica Monte Carlo and Ideal Standard 2010: acquisition of Cerâmica Elizabeth 2012: acquisition of Metalúrgica Jacarei (Mipel - valves) 2013: conclusion of the new vitreous china unit in Queimados/RJ and acquisition of Thermosystem (electronic showers and solar heating systems) 11

12 History of capacity increases WOOD (in `000 m³) * 2014 MDF MDP Hardboard TOTAL DECA (in `000 items) * 2014 Metals Vitreous China TOTAL (*) Includes capabilities oftablemac, Thermosystem (electronic showers and solar heaters) and Mipel. (valves) 12

13 Positioned to grow Balanced capital structure to explore M&A opportunities Completion of major investments in both Divisions High degree of timberland integration with excess wood supply ability to meet future expansions Proximity to customers with geographic diversification Trained, focused and motivated team 13

14 DISCLAIMER The information contained herein was prepared by Duratex S.A. management and does not constitute an offering material for subscription or purchase of securities of the Company. This material contains general information about the company and the markets in which it is inserted. No representation or warranty, express or included, it is taken on, and no reliance should be placed on the accuracy, justification or completeness of the presented information. Duratex can give no assurance as to the achievement of the expectations presented. June

15 ANNEXES

16 Macroeconomic Scenario Deterioration FGV's Confidence Index (points) CNI's Confidence (points) 130,0 120,0 110,0 100,0 90,0 80,0 70,0 60,0 12,0 10,0 8,0 Unemployment rate (%) jun/14 Consumers Industry 14,00 12,00 10,00 75,0 70,0 65,0 60,0 55,0 50,0 45,0 40,0 35,0 30,0 Jan10 Abr Jul Out Jan11 Abr Jul Out Jan12 Abr Jul Out Jan13 Abr Jul Out Jan14 Abr Jul Building Industry Wood Furniture IPCA (%) ,0 4, ,00 6, ,0 0,0 4,00 2,00 0,00 Source: IBGE 16

17 Macroeconomic Scenario Deterioration Credit in R$ bn (PJ+PF) Default rate (%) 2 900, ,0 2, ,9 3, , , , , ,0 3,5 3,3 3,1 2,9 3.1% 2 200,0 2, ,0 2,5 Source: BCB dez/12 Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov dez/12 Jan Fev Mar Abr Mai Source: BCB Minimum Wage (R$) Saving Account Balance (R$ Billion) ,00 500, , , ,00 0 Source: IBGE 100, jun/14 Source: BCB 17

18 Diversity of products: Deca Division SANITARY WARE: Washers Sinks Tanks Toilet bowls Bidets METAL FITTINGS Faucets Mixers Flushing valves Showers and Components ACCESSORIES Paper Rack Towel Rack Soap dish, among other THERMOSYSTEM Electronic Showers Solar Heaters

19 Geographic diversification: Deca Division

20 Diversity of products: Wood Division MDF- Medium density wood panels, which offers various possibilities of application and finishing. Ideal for furniture, moldings and coatings in general. MDP-Panel made from wood particles, from selected eucalyptus wood, that allows various applications in the furniture industry and construction. HARDBOARD Panel of high density fiber made with reforested wood from eucalyptus. LAMINATE FLOORING - A complete solution of floor boards for residential and corporate areas. With performance highly recognized in the market, this product brings international design trends and technology. LVT FLOORING - The LVT (Luxury Vinyl Tile) PVC base flooring, 100% recyclable, is a trend and its use is growing throughout the world, as it s water resistant, which allows its installation at various residential settings and also at commercial areas, such as shops, offices and hotels.

21 Geographic diversification: Wood Division Colombia (Tablemac) Manizale MDP Yarumal MDP Barbosa MDF Guarne - Furniture 21 21

22 Wood and Deca Monthly Shipment Performance (100 base: January 2013) 125,0 120,0 115, ,0 105,0 100,0 95,0 90,0 Jan Fev Mar Abr Mai Jun 105,0 100, ,0 90,0 85,0 80,0 Jan Fev Mar Abr Mai Jun 22

23 Financial Highlighths: net income, equity and ROE NET INCOME (R$ million) and ROE (%) (in R$ million) 2Q14 1Q14 % 2Q13 % 1HY14 1HY13 % Net Income 58,6 161,2-63,6% 130,7-55,2% 219,8 279,7-21,4% Discontinued Operations , ,2 - Extraordinary Event - (30,0) (30,0) (26,4) 13,6% Recurrent Net Income 58,6 131,2-55,3% 134,5-56,4% 189,8 277,4-31,6% ROE 5,2% 14,5% - 12,5% - 9,9% 13,5% - Recurrent ROE 5,2% 11,8% - 12,9% - 8,5% 13,4% - EQUITY(R$ million) 4,202 4,509 4,503 2Q13 1Q14 2Q14 23

24 Corporate Presentation 2 nd quarter 2014