INVES INVE T S OR T PRESENT PRE A SENT T A ION May 2013

Transcription

1 INVESTOR PRESENTATION May 2013

2 OVERVIEW

3 OVERVIEW SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE AT 31 st DECEMBER 2012 EFANOR % 56% SONAE CAPITAL 53% SONAE 100% 100% 50% 54% 100% 100% SONAE MC Food Retail SONAE SR Specialized Rtil Retail SONAE SIERRA Shopping Centres SONAECOM Telecom, SSI & Media SONAE RP Retail Real Ett Estate INVESTMENT MANAGEMENT 3

4 OVERVIEW ORGANISATION & MANAGEMENT STRUCTURE BOARD OF DIRECTORS NON EXECUTIVES Belmiro de Azevedo Paulo Azevedo Albrecht Ehlers (INDEPENDENT) Javier Vega (INDEPENDENT) EXECUTIVES Executive Committee Rui Correia (CEO) Chris Lawrie (CFO) João Paulo Pinto (COO SOUTH EUROPE and CMSO) Jan Bergmann (COO NORTH EUROPE and CITO) 4

5 OVERVIEW OUR STRATEGY (VISION, MISSION, VALUES AND STRATEGIC DIRECTIONS) 5 VISION To be recognised as a sustainable world leader in the wood based panels industry, consistently providing our customers with the best value products, upholding the highest standards of service and promoting responsible business and environmental practices. MISSION Our aim is to deliver the full potential of wood based panels for the benefit of our customers, shareholders, employees, and society. We base our operations on sound corporate governance, continuously improving the efficiency of our operations, actively promoting innovation and providing a motivated, safe and fair working environment. VALUES Ambitious Innovative Authentic Responsible STRATEGIC DIRECTIONS: BUILD A HIGH QUALITY TEAM WITH TALENTED, SKILFUL AND FULLY ENGAGED PEOPLE CREATE A HIGH PERFORMANCE CULTURE FOSTERING OPERATIONAL EXCELLENCE AND INNOVATION BECOME A MARKET FOCUSED COMPANY WITH A RELIABLE INTEGRATED OFFER DEVELOP COMPETITIVE INTEGRATED SITES WITH SECURE WOOD AND CHEMICALS SUPPLY

6 OVERVIEW OUR OPERATIONS 6

7 OVERVIEW 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 RAW PRODUCTS MEDIUM DENSITY FIBERBOARD (MDF) Excellent substitute for solid wood. Surface and lacquering performance Ideal for furniture, flooring and building industry requirements ORIENTED STRAND BOARD (OSB) Suitable for structural and nonstructural applications in the construction industry Highly resistant 7

8 OVERVIEW OUR PRODUCTS: Raw Products PB MDF OSB 8

9 OVERVIEW PRODUCTION PROCESS (OSB) FORMING, PRESSING AND FINISH LINE 9

10 OVERVIEW OUR PRODUCTS: Add-Value / Decorative MF / VF / HPL / CPL / FLOORING / / / / 10

11 OVERVIEW OUR PRODUCTS WITH VARIOUS APPLICATIONS CONSTRUCTION DECORATIVE SOLUTIONS KITCHEN, OFFICE & HOME FURNITURE FLOORING PACKAGING 11

12 OVERVIEW OUR HISTORY Maia SONAE (Soc. Nacional de Estratificados, SARL) was established to manufacture decorative High Pressure laminates 1971 Acquisition and modernization of AGLOMA the largest tdomestic Particleboard producer in Portugal Oliveira do Hospital (where AGLOMA began) 1987 Start of the international expansion with the acquisition of SPANBOARD in Northern Ireland Acquisition of a 50% shareholding in NOVOPAN particleboard manufacturer in Portugal 1 st Headquarter of Sonae, Porto and beginning of Particleboard production Consolidation of the leadership position in Portugal with the acquisition of SIAF and PAIVOPAN Mangualde (where SIAF began)

13 OVERVIEW 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 m Acquisition of GLUNZ with Restructuring operations in Germany, of Glunz France and the UK Investment period in 1997 Portugal, Spain, 12 Investment period din Canada and Greenfield plants in Brazil. Brazil, South Africa Acquisition of 10 and the UK Sappi in South Africa Acquisition of TAFISA the second largest 6 4 producer in Spain with production facilities in Spain and Canada, 6,71 7, JV with Tarkett (Germany) 2006 Acquisition of Hornitex and Darbo 10, Restructuring Phase August 2009 Sale of Brazilian operations April ,0 7,5 Sale of Lure plant (France) 2012 Closure of Knowsley Operations (UK) and Solsona (Spain) (p 6, ,83 1,

14 OVERVIEW CAPACITY PRODUCTION TOTAL CAPACITY (RAWBOARD) IS 6.6 MILLION M 3, APPROXIMATELY 78% OF WHICH IS LOCATED IN EUROPE... BY REGION 000 m 3... BY PRODUCT* 000 m 3 3,000 2,500 2,000 1,500 1, ,390* 820 2, , ,570 1,400 1,345 SOUTHERN EUROPE NORTHERN EUROPE PB MDF OSB REST OF THE WORLD 5,000 4,500 4,000 3,500 3,000 2, ,000 1,500 1, ,315 1,345 1,400 1, , PB MDF OSB SOUTHERN EUROPE NORTHERN EUROPE REST OF THE WORLD 14 *Excludes m 3 HB production capacity (located in Iberian Peninsula) Southern Europe: Iberian Peninsula and France; Northern Europe: Germany; Rest of the World: Canada and South Africa

15 OVERVIEW WOOD BASED PANEL PLAYERS WE ARE ONE OF THE LARGEST GLOBAL MANUFACTURERS OF WOOD BASED PANELS IN EUROPE AND WORLDWIDE EUROPE 000 m 3 WOLRDWIDE 000 m 3 M&PK Kaindl (Kronospan) 15,340 M&PK Kaindl (Kronospan) Egger Sonae Indústria 6,130 Arauco & Flakeboard Swiss Krono Group 5,262 Egger Sonae Indústria 5,200 Louisiana-Pacif Pacific ic Pfleiderer 4,350 Swiss Krono Group Kastamonu Entegre 3,064 Norbord Georgia-Pacific Finsa/ Ut isa 2,970 Pfleiderer Mauro Saviola 1,800 Duratex + Satipel Fant oni Masisa 1,700 Kastamonu Entegre Unilin 1,650 Finsa/ Utisa Fr at i 1,550 Weyerhaeuser Norbord 1,370 Ainsworth Triax 1,000 Roseburg Temple Inland Constantia Iso 900 Kaycan Swedwood 640 Swedwood 6,615 6,270 6,130 5, ,262 4,940 4, ,135 3,890 3,560 3,064 2,970 2,900 2,770 2,500 1,900 1,215 1,140 15,883 15

16 OVERVIEW SALES IN 2012, APPROXIMATELY 75% OF OUR SALES WERE GENERATED IN EUROPE WE TRANSFORM MORE THAN 50% INTO VALUE ADDED PRODUCTS 16 T&G: Tongue and groove; CTS: Cut to size

17 OVERVIEW OVERVIEW FIGURES FY12 CONSOLIDATED TURNOVER OF 1.3 BILLION EUROS EBITDA OF 97 MILLION EUROS NET RESULTS 99 MILLION EUROS ( 54 MILLION EUROS FROM CONTINUING OPERATIONS) 17

18 OVERVIEW HUMAN RESOURCES WITH APPROXIMATELY 4.4 THOUSAND EMPLOYEES AT THE END OF DECEMBER

19 OVERVIEW HUMAN RESOURCES WITH INCREASED PRODUCTIVITY, PARTICULARLY DRIVEN BY THE RESTRUCTURING PROCESS THAT WE WENT THROUGH 19

20 20 HIGHLIGHTS OF 1Q13 RESULTS

21 HIGHLIGHTS OF 1Q13 RESULTS CONSOLIDATED OPERATIONAL REVIEW Comparing 1Q13 with 1Q12*: Turnover decreased by 10%, from353 to 318 million Euros Recurrent EBITDA margin fell 2.7 pp reaching 6.3% Net losses increased from 3 to 16 million Euros Net Debt reduced 16 million Euros to 695 million Euros Working Capital reduced by 13 million Euros to 129 million Euros Increased profitability in Rest of the World operations Comparing 1Q13 with 4Q12*: Turnover increased by 1%, from316 to 318 million Euros Recurrent EBITDA margin fell by 1pp to 6.3% Net losses reduced by 48% to 16 million Euros KEY FIGURES (Euro Millions) 1Q'13 / 1Q'13 / 1Q'12* 12 4Q'12* 1Q' Q'12* 12* 4Q'12* Consolidated Turnover (10%) 1% EBITDA (46%) (38%) Recurrent EBITDA (37%) (12%) Recurrent EBITDA Margin % 9.0% 7.3% 6.3% 2.7 pp 1.0 pp Minority Interest (0) (0) (0) 51% Net Profit/(Loss) attributable to Shareholders (3) (30) (16) 48% Net Debt (2%) 5% 21 *2012: transferring UK values to discontinued operations

22 HIGHLIGHTS OF 1Q13 RESULTS CONSOLIDATED OPERATIONAL REVIEW Quarterly Volumes Sold Millions of m 3 Compared to 1Q12, volumes were down 13%, driven by our Central European markets, as volumes in the Rest of the World improved Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Average selling prices were overall Average variable costs increased 1% marginally above both1q12 and 4Q12. compared to 1Q Quarterly Average Prices (Eur/m3) Base 100: 1Q10 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q QUARTERLY AVERAGE COSTS (eur/m3) BASE 100:1Q10 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 22

23 HIGHLIGHTS OF 1Q13 RESULTS VARIABLE COSTS EVOLUTION QUARTERLY AVERAGE COSTS (eur/m3) BASE 100:1Q Average variable costs moved up 1% 1.3 from 4Q12 to 1Q Compared to 4Q12, higher wood prices prevailed in Europe and we witness a global upward pressure on energy costs Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Chemicals Wood UREA SPOT PRICES source: ICIS Lor NWEICIS MethanolPrices 2011_ SD / mton Jan/11 Fev/11 Mar/11 Abr/11 Mai/11 Jun/11 Jul/11 Ago/11 Set/11 Out/11 Nov/11 Dez/11 Jan/12 Fev/12 Mar/12 Abr/12 Mai/12 Jun/12 Jul/12 Ago/12 Set/12 Out/12 Nov/12 Dez/12 Jan/13 Fev/13 Mar/13 Abr/13 Euro / mton US Abr/13 Jan/11 Fev/11 Mar/11 Abr/11 Mai/11 Jun/11 Jul/11 Ago/11 Set/11 Out/11 Nov/11 Dez/11 Jan/12 Fev/12 Mar/12 Abr/12 Mai/12 Jun/12 Jul/12 Ago/12 Set/12 Out/12 Nov/12 Dez/12 Jan/13 Fev/13 Mar/13 23 FOB EAST EUROPE Contract Price FOB Baltic Sea SPOT Price

24 HIGHLIGHTS OF 1Q13 RESULTS GEOGRAPHIC REVIEW OF OPERATIONS SOUTHERN EUROPE (Iberian Peninsula and France) Comparing 1Q13 performance with 1Q12: Turnover and sales volumes reduced by 11%, driven mostly by the Iberian operations which reduced volumes sold by 14%, but also by France which reduced volumes sold by 6%. The strong contraction in volumes sold combined with the seasonal negative impact in variablecosts, ibl ldt led to a 3.8 pp reduction of the recurrent EBITDA margin to 3.3%. 3% Mn Southern Europe Turnover* & Recurrent EBITDA Margin % 5.6% 4.9% 7.1% 1.5% 4.0% 4.1% 3.6% 3.3% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Turnover* Southern Europe EBITDA Southern Europe % 24 *Turnover includes intercompany group sales

25 HIGHLIGHTS OF 1Q13 RESULTS GEOGRAPHIC REVIEW OF OPERATIONS NORTHERN EUROPE (Germany) Comparing 1Q13 performance with 1Q12: Volumes sold decreased by 11%, which combined with lower prices in some segments, resulted in a 16% reduction in turnover. The above combined effects together with 3% higher variable costs led to a deterioration of the Recurrent EBITDA margin from 8.9% to 4.4%. 4% Mn Northern Europe Turnover* & Recurrent EBITDA Margin % 8.5% 7.4% 6.6% 8.9% 6.8% 5.8% 6.8% 4.4% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Turnover* Northern Europe EBITDA Northern Europe % 25 *Turnover includes intercompany group sales

26 HIGHLIGHTS OF 1Q13 RESULTS GEOGRAPHIC REVIEW OF OPERATIONS REST OF THE WORLD (Canada and South Africa) Comparing 1Q13 performance with 1Q12: Volumes sold from plants located in the RoW region increased by 3% in 1Q13, when compared to 1Q12. RoW Recurrent EBITDA margin increased to 15%, driven by recoveries in our main markets in this region: stronger volumes in North America (+7%) and btt better average selling prices in South Africa. Mn Rest of the World Turnover* & Recurrent EBITDA Margin % 15.6% 17.0% 13.9% 10.8% 12.5% 11.5% 14.2% 15.0% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Turnover* RoW EBITDA RoW % 26 *Turnover includes intercompany group sales

27 HIGHLIGHTS OF 1Q13 RESULTS PROFIT & LOSS ACCOUNT 1Q'13 / 1Q'13 / PROFIT & LOSS ACCOUNT (Euro Millions) 1Q'12* 12* 4Q'12* 1Q' Q'12* 4Q'12* Consolidated Turnover (10%) 1% Other Operational Income (5%) (48%) EBITDA (46%) (38%) Recurrent EBITDA (37%) (12%) Recurrent EBITDA Margin % 9.0% 7.3% 6.3% 2.7 pp 1.0 pp Depreciation and amortisation (19) (20) (19) 2% 4% Provisions and Impairment Losses (0) (12) 3 126% Operational Profit 12 (3) 1 (92%) 131% Net Financial Charges (13) (13) (15) (18%) (16%) ow o.w. Net Interest Charges (7) (8) (9) (21%) (15%) o.w. Net Financial Discounts (4) (4) (4) (6%) 13% Profit before taxes continued operations (EBT) (1) (16) (14) 13% Taxes (1) (11) (2) 81% o.w. Current Tax (1) (1) (1) 8% Net Profit/(loss) Continued Operations (2) (27) (16) 41% Net Profit/(loss) Discontinued Operations (1) (4) Minority Interests (0) (0) (0) 51% Net Profit/(loss) attributable to Shareholders (3) (30) (16) 48% 27 *2012: transferring UK values to discontinued operations

28 HIGHLIGHTS OF 1Q13 RESULTS BALANCE SHEET BALANCE SHEET (Euro Millions) 1Q' Q'13 Non Current Assets 1, Tangible Assets Goodwill Deferred Tax Other Non Current Assets Current Assets Inventories Trade Debtors Cash & Investments Other Current Assets Non Current Assets held for sale Total Assets 1,461 1,269 1,268 Shareholders' Funds Minority Interests Shareholders' Funds + Minority Interests Interest Bearing Debt Short term L M term Trade Creditors Other Liabilities Total Liabilities 1,228 1,134 1,150 Total Liabilities, Shareholders' Funds and Minority Interests 1,461 1,269 1,268

29 HIGHLIGHTS OF 1Q13 RESULTS 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 1Q13 Mn WORKING CAPITALwas 13 million Euros below the level of 1Q12, nevertheless it has increased compared to 4Q12 due to normal seasonal performance of both TradeDebtors and Trade Receivables Q10 1H10 9M Q11 1H11 9M Q12 1H12 9M Q13 Additional Fixed Assets Million Euros ADDITIONS TO FIXED ASSETS in 1Q13 were of 3 millioneuros, mostly related to investments in essential maintenance, Health & Safety and Environmentalimprovements poe e ts Q 2Q 3Q 4Q

30 HIGHLIGHTS OF 1Q13 RESULTS LEVERAGE Comparing to 4Q12, Net Debt increased by 30 million EUR and is mainly the result of an increase in Working Capital NET DEBT 950 ND / REC. EBITDA Net Debt ND/Rec.Ebitda x Million EUR 1Q'09 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 30

31 HIGHLIGHTS OF 1Q13 RESULTS 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* 129 (as of 31st March 2013) Million EUR H13 2H13 1H14 2H14 1H15 2H Does not include Securitization, Factoring and short term facilities

32 HIGHLIGHTS OF 1Q13 RESULTS LOOKING FORWARD For the coming quarter, we continue to expect adverse conditions in private and public consumption, mainly in the Eurozone markets. We expect to partly mitigate this market conditions by continuously looking for export opportunities. Nevertheless, we continue to expect an important positive contribution from the non European operations, reflection of improved performance in North America and South African markets. In operational terms, we expect to recover some profitability, as we anticipate that variable costs will level out, or even decline, as a result of the seasonality of wood prices and by our focus on continued optimization of industrial efficiencies. 32

33 GEOGRAPHIC REVIEW OF OPERATIONS

34 GEOGRAPHIC REVIEW OF OPERATIONS SOUTHERN EUROPE Iberian Peninsula COMPETITIVE LANDSCAPE Sonae Indústria Iberian Peninsula Capacity Thousands m 3 MDF 500 PARTICLEBOARD MDF FLOORING HARDBOARD HPL CHEMICALS OTHERS (FURNITURE, COMPONENTS, WOOD VENEER) PB 880 HB 70 INSTALLED RAWBOARD CAPACITY IN IBERIAN PENINSULA TOP PLAYERS Millions m 3 PLANTS 11 CAPACITY Finsa/Utisa Sonae Indústria Kronospan/Interbon Losan Million m3 Tablicia

35 GEOGRAPHIC REVIEW OF OPERATIONS SOUTHERN EUROPE France COMPETITIVE LANDSCAPE COMPETITIVE LANDSCAPE Sonae Indústria France Capacity Thousands m 3 PARTICLEBOARD PB MDF 690 MDF 320 INSTALLED RAWBOARD CAPACITY IN FRANCE TOP PLAYERS Millions m 3 Swiss Krono Group 1.25 PLANTS 4 Egger Sonae Indústria CAPACITY Unilin Million m3 Finsa

36 GEOGRAPHIC REVIEW OF OPERATIONS NORTHERN EUROPE Germany COMPETITIVE LANDSCAPE COMPETITIVE LANDSCAPE Sonae Indústria Germany Capacity Thousands m 3 MDF 880 PARTICLEBOARD MDF HPL CPL OSB IMPREGNATED PAPER + DIRECT PRINTING PB 1400 OSB 460 INSTALLED RAWBOARD CAPACITY IN GERMANY TOP PLAYERS Millions m 3 Sonae Indústria 2.74 PLANTS 6 Pfleiderer Egger 1.69 CAPACITY Kronospan M&P Kaindl Million m3 Swiss Krono Group

37 GEOGRAPHIC REVIEW OF OPERATIONS REST OF THE WORLD North America COMPETITIVE LANDSCAPE PLANTS 1 CAPACITY 0.9 Million m 3 CANADA PARTICLEBOARD INSTALLED RAWBOARD CAPACITY IN NORTH AMERICA (PB+MDF) TOP PLAYERS Millions m 3 37 Arauco & Flakeboard Roseburg Temple Inland Sierra Pine Kaycan Sonae Indústria Aconcagua Plum Creek

38 GEOGRAPHIC REVIEW OF OPERATIONS REST OF THE WORLD South Africa COMPETITIVE LANDSCAPE Sonae Indústria South Africa Capacity Thousands m 3 PB 445 MDF 70 PARTICLEBOARD MDF INSTALLED RAWBOARD CAPACITY IN SOUTH AFRICA TOP PLAYERS Millions m 3 PLANTS 2 PG Bison 0.71 CAPACITY 0.52 Million m 3 Sonae Indústria

39 MORE ON

40 MORE ON WOOD CYCLE 40

41 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 longterm carbon stores if used in construction applications 1 M3 OF PANEL = 270 KG C = 1 TON CO2 EQUIVALENT! 41 * for further details please see the Sustainability Reports

42 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 42 * for further details please see the Sustainability Reports

43 MORE ON SUSTAINABLE USE OF WOOD AND RECYCLING WOOD BASED PANELS PLAY A KEY ROLE IN THE SUSTAINABLEUSE 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 43 * for further details please see the Sustainability Reports

44 MORE ON 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 supply local needs 44

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