Conference Call. Subscription Agreement for the Acquisition of a Relevant Stake in the capital of Tablemac S.A. May 21,

Transcription

1 Conference Call Subscription Agreement for the Acquisition of a Relevant Stake in the capital of Tablemac S.A. May 21,

2 2 Overview Colombian market Financial Highlights Deal Structure

3 Overview Private company, founded in 1988, with shares listed on the Colombian Stock Exchange Segments: wood panels, doors, and furniture Headquartered in Medelin, has 4 plants with the following capacity:.manizales-mdp: m³/year.yarumal- MDP: m³/year.barbosa- MDF: m³/year (pre-operational).guarne- Moveis: m³/year Pioneer in MDF production in Colombia (2012). The current suppliers are from Chile and Ecuador, mainly 600 employees Over 150 customers Dec/2011, and none of them generates more than 10% of the company's revenue Market share of 36% in Colombia, approximately, in MDP 3 Plants

4 Overview Forestry area Reforestation activity : Total area: ha (2.665 acquired in 2011) Planted area: ha Integration of 20% of wood requirements Located in a region with plenty of wood suppliers at a competitive cost Beggining stages of reforestation activity in the country The sector has received government stimulus, which represents an opportunity for Duratex Tablemac has been working on obtaining certification from Forest Stewardship Council 4

5 Overview Corporate Structure Família Echavarria Moreno Local Businessman (9%) Valores Incorporados S.A. (3%) Grupo Sura Leader in Insurance in Colombia (2%) Others (79%) Fundacion Sofia Perez Social Fundation (3%) Bolsa y Renta Asset Management (2%) Negócios Vários S.A. (2%) Current number of shares: Only common shares (1 share, 1 vote) Average daily trade of US$ 392 K There are no shareholders' agreement 5 Source: Superfinanciera de Colombia e BVC Colombia 31/3/2012

6 Overview in US$ million Enterprise Value (May 17, 2012) Net Revenue , ,5 EBITDA ,7 426,2 Net Income ,6 186,4 Nominal Capacity (in 000 m³ per year) MDP MDF Hardboard Components and Furniture Laminate Flooring ( 000 m²) Land ( 000 ha)

7 7 Overview Colombian market Financial Highlights Deal structure

8 Colombian market 28th largest economy in the world and is among the five largest in Latin America GDP, have been growing above the world average CAGR is 4,4% per year Total population: 46 million: Approximately 13,8 million people have risen from a lower class due to the social policies of the government Access to credit: approximately 17,6 million people of lower classes now have access COLOMBIA Population (2011E) Geographic Area (km²) TOTAL GDP &/ capita (2010E) US$ 435,4 billion / US$ GDP growth rate 4,30% 8 Currency Peso (COP)

9 Colombian market MAIN CHARACTERISTICS Open to imports appreciated exchange rate and geographic location Local production is favored by lower logistics costs Consumption and furniture through modernization and rapid growth Potential forest Plywood 17% MDP Imports: Ecuador, Chile, Argentina and Venezuela, mainly CAGR :3,16% Total demand in m³ MDF 32% MDP 51% MDF Imports: Chile and Ecuador, mainly Tablemac Barbosa: new capacity of m³/year, may replace imports CAGR : 10,58% Total demand in m³ 61% of internal demand volume is imported 36% of MDP 100% of MDF 61% of plywood Import Source: SICEX Colombia and Company s estimates 9

10 Local players Colombian market Local Supplier Forest plantations Actual MDP unit New MDF unit (2012) Furniture unit Barranquilla Cartagena Local Supplier Forest plantations Plywood and MDP unit Flooring plant Yarumal Bucaramanga Pacific Import : Chile: ARAUCO and MASISA Barbosa Medellín Manizales Guarne Bogotá Import entrance via Buenaventura port (Pacific) Land import: Ecuador: ACOSA, NOVPAN Importance entrance via Ipiales Buenaventura Ipiales Cali 10

11 Consumo (m³ / 1000 hab) COMPARATIVE SALES VOLUMES (in 000 m³) Colombian market COLOMBIA BRAZIL MDF MDP COMPARATIVE CONSUMPTION OF PANELS / CAPITA - MDF MDP PB MDF Brasil 2011 Colombia 2011 Alemania Germany 2009 España Spain 2009 Argentina

12 12 Overview Colombian market Financial highlights Deal structure

13 Financial highlights* Net Revenue (R$ mn) 105,6 EBITDA (R$ mn) 70,0 80,7 17,1 20,2 23,8 24,4 26,8 30,3 6,4 5,6 7, Q11 1T11 4T11 1Q12 1T Q11 1T11 4T11 1Q12 1T12 Gross Ebitda Margin (%) 31,6% 34,3% 31,2% 34,2% 30,8% 33,6% Margin (%) 24,4% 25,0% 22,6% 26,1% 20,8% 25,7% Net Income (R$ mn) Equity (R$ mn) 5,2 6,2 4,9 173,7 141,3 147,1 145,3 173,7 181,4 2,0 2,0 13 0, Q11 1T11 4T11 1T12 1Q12 ROE (%) 3,7% 4,3% 3,0% 5,6% 0,4% 4,3% Q11 1T11 4T11 1T12 1Q12 * Original data in Colombian pesos at the exchange end of each period. Source: Bloomberg

14 14 Overview Colombian market Financial highlights Deal structure

15 Structure of the operation 1. Subscription Agreement 2. Shareholder s Assembly, on May 25, 2012, to vote the 1 st stock emission (25%) at COP 12,00 / share, and the waiving of subscription rights of current shareholders 3. Takeover bid (OPA) of between 10% and 12% of the new capital stock 4. Option of a new stock emission, in 24 months, up to 15% of the new capital (after 1 st emission) at the fixed price of COP12,00 adjusted: (+) 6.25% annually (-) dividends 15

16 Structure of the operation Steps DEAL STRUCTURE Tablemac s Capital Duratex Participation Indicative value of investment (in shares) ( in shares) % (in US$ shares) Capital stock st stock emission (25%) ,0% US$ 56,0 Takeover bid (OPA) between 10% and 12% ,0% US$ 27,0 Subtotal ,0% US$ 83,0 3 2 nd stock emission (15%) US$ 45, ,4% US$128,0 16

17 Why invest in Colombia Economic growth (stability, credit, income, social mobility) Legal and Political Stability with government of Uribe and Santos Growth in construction sector (deficit of over 2 million homes) Lower cost of capital / Country s investment grade Potential replacement of plywood and MDF imports Only two local players Low per capita consumption of wood panels COLOMBIA Consumption per capita m³/ people 7,4 6,8 6,5 8,2 8,7 1 2 CAGR: 43,41% BRAZIL Consumption per capita m³/ people CAGR: 8,15%

18 Investor Relations