Corporate Presentation

Transcription

1 Corporate Presentation 4 th quarter 2014

2 Operating Highlights from the Quarter Better price base in MDF = improvement in margins EBITDA Consolidated EBITDA Margin of 25,7% in the quarter Wood EBITDA Margin reaching 31,9% Operation Closing of sanitary ware operation in LJII and concentration of production in a more efficient plant (Queimados/RJ) Dividends Pay out of 40% in the year, above the minimum of 30% 1

3 Financial Highlights Consolidated Consolidated Net Revenue (R$ million) (in R$ million) 4Q14 3Q14 % 4Q13 % % Net Income 1.040, ,3-1,6% 1.008,1 3,2% 3.984, ,7 2,9% Wood 731,7 706,3 3,6% 675,4 8,3% 2.641, ,9 5,4% Deca 308,4 351,0-12,1% 332,8-7,3% 1.342, ,8-1,8% Recurrent Gross Margin 29,3% 31,1% 34,6% 31,3% 37,3% Equity (R$ million) and Recurring ROE (%) Recurring ROE (%) 13,3% 7,9% 10,8% 7,3% 7,4% 2

4 Financial Highlights Consolidated (em R$ million) - Brazil 4Q14 3Q14 Var % 4Q13 Var % Var % Deca Volume (in '000 items) ,3% ,6% ,0% Wood Volume (in m 3 ) ,9% ,2% ,9% EBITDA 254,6 223,8 13,7% 304,5-16,4% 904, ,1-24,6% EBITDA Margin 26,1% 22,6% - 30,2% - 24,2% 31,0% - Recurrent Net Income 80,0 76,5 4,6% 118,1-32,3% 336,4 561,6-40,1% Recurrent ROE 7,1% 6,9% - 10,8% - 10,1% 13,3% - Colombia 4Q14 3Q14 Var % 2014 Wood Volume (in m 3 ) ,4% EBITDA 12,7 13,5-6,1% 47,4 EBITDA Margin 19,2% 20,1% - 19,7% Recurrent Net Income 5,7 7,0-19,0% 22,6 Consolidated 4Q14 3Q14 Var % 4Q13 Var % Var % Deca Volume (in '000 items) ,3% ,6% ,0% Wood Volume (in m 3 ) ,5% ,6% ,5% EBITDA 267,3 237,3 12,6% 304,5-12,2% 952, ,1-20,7% EBITDA Margin 25,7% 22,4% - 30,2% - 23,9% 31,0% - Recurrent Net Income 85,7 83,5 2,6% 118,1-27,4% 359,0 561,6-36,1% Recurrent ROE 7,4% 7,3% - 10,8% - 7,9% 13,3% - 3

5 Panel Market in Brazil(in 000 m 3 ) MDF Market +3,4% Wood -4% -12% MDP Market -8,1% -9% -2% Source: ABIPA/IBA ANNUAL CAPACITY (in '000 m3) NOMINAL EFFECTIVE* AVAILABLE** MDF MDP TOTAL * Duratex s estimate: Available capacity: based on the lines already installed, after the ramp-up periods and taking into account the existing bottlenecks and investments Effective: with peripheral 4 investments, as mentioned above

6 Operational Highlights Shipment (in m 3 ) Wood +3,6% -2,5% +4,5% Installed Capacity and Occupancy Rate 4Q14 ANNUAL CAPACITY NOMINAL EFFECTIVE* AVAILABLE** LEVEL OF OCCUPANCY (in 000 m³) (over available - %) MDF % MDP % Hardboard % Total % * Duratex s annual Effective capacity based on already installed lines, after ramp up and investments periods * Situation in this quarter 5

7 Operational Highlights Net Revenue (R$ million) and Gross Margin (%) 33,5% 30,4% 29,9% 36,5% 30,5% +8,3% +3,6% +5,4% Recurrent EBITDA (R$ million) and EBITDA Margin (%) 34,6% 25% 31,9% 35,1% 27,4% -0,1% +32,2% -17,7% Wood Highlights:. Increase in MDF prices contributed to EBITDA margin recovery on the quarter. On na annual comparison base, besides cost increases related to inflation and exchange rate, there was increase in fixed costs due to the increase in capacity, that was not followed by recomposition of prices, which contracted the margins; besides the consolidation of Tablemac with lower margins 6

8 Building Material Industry INTERNAL MARKET ABRAMAT INDEX Achieved and Projected for 2015 Deca Source: Associação Brasileira da Indústria de Materiais de Construção ABRAMAT INDEX: Monthly indicator of sales performance, in R$, of the Building Materials Industry; performance in relation to the same period of the previous year 7

9 Operational Highlights Shipments (in 000 items) Deca -8,6% -14,3% -5,0% Installed Capacity and Occupancy Rate 4Q14 ANNUAL CAPACITY NOMINAL ANNUAL LEVEL OF OCCUPANCY (in 000 items) CAPACITY (%) SANITARY WARE * 56% METAL FITTINGS ** 68% Total % * Includes the capacity for Louças Jundiaí II ** Includes Thermosystem (showers and solar heating system) and Mipel (Industrial valves) 8

10 Operational Highlights Net Revenue (R$ million) and Recurrent Gross Margin (%) Deca 36,9% 32,6% 27,8% 38,7% 32,9% -7,3% -12,1% -1,8% Recurrent EBITDA (R$ million) and EBITDA Margin (%) 21,3% 17,3% 11,0% 23,4% 17,0% -52,3% -44,2% -28,8% Highlights:. Closure of Louças Jundiaí II unit trasfering the production to Queimados unit with better industrial productivity and smaller operating costs. Costs increase in 2014 due to readjustments in the metals and sanitary ware lines on 4Q14, deseconomies of scale (new sanitary ware unit in Queimados), and rebranding of Thermosystem, to Hydra, which contributed to keep margins under pressure 9

11 Consolidated CAPEX (R$ million) and Main Investiments R$ Main Projects Concluded in 2013 QUEIMADOS (RJ) Sanitary Ware +2,4 million items/year ITAPETININGA (SP) New MDF Plant Effective Capacity: m 3 /year TAQUARI (RS) Debottlenecking the capacity of MDP, with the addition of m³ annual available capacity (from to m³/year) 10

12 Productive capacities evolution Production Scale Capacities evolution * 2013: Tablemac, Thermosystem e Mipel (acquisitions) capacities starts being accounted for WOOD (in `000 m³) * MDF MDP Hardboard TOTAL ,6% DECA (in `000 items) * Metals Sanitary Ware TOTAL ,9% 11

13 Indebtedness R$ 000 DEC/2014 SEP/2014 Var R$ DEC/2013 Var R$ Short Term Debt Long Term Debt Total Debt Cash Net Debt Net Debt / Equity (in %) 37,5% 40,2% - 33,3% - Net Debt / EBITDA (last 12 months) 1,81 1,87-1,17 - Amortization Schedule (R$Mn) Debt Origin (%) * 100% hedge 12

14 2015: Focus on the operation as a competitive advantage DECA Closure of Sanitary Ware plant and adjustment in the operational lines dimensioned Deca to current markets` needs Costs Focus in cost reduction CAPEX CAPEX limited to the operations` maintenance CAETEX Geographical diversification with plantation of forests in Brazil s project in Northeast region to support a future panel operation 13

15 Disclaimer The information contained herein was prepared by Duratex S.A. and does not constitute an offering material, to subscribe for or purchase any of the Company s securities. This material also brings general information about Duratex S.A. and its markets. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented herein. The Company can give no assurance that expectations disclosed in this presentation will be confirmed. February

16 Corporate Presentation 4 th quarter 2014