duratex - 1st half 2009
DESCRIPTION
Presentation - 1st Half 2009TRANSCRIPT
1
1st Half Results2009
August / 2009
2
Duratex and Satipel Association
Competitive Advantages
Favorable Scenario
Highlights
Performance
Index
3
Operation ResumeDuratex and Satipel Association
Material Fact of 22.06.2009 Duratex and Satipel association
Resulting company denomination: Duratex S.A.
Emission of 348,785,970 shares of Satipel to be given in exchange by Duratex shares
Share substitution ratio:
• 1 share DURA3 from within the controlling group: 3.05360401 shares SATI3
• 1 share of remaining shareholders DURA3 and DURA4: 2.54467001 shares SATI3
New company listed on Novo Mercado of Bovespa, free float over 40%
New ticker: DTEX3
• October 2009: DURA3, DURA4 and SATI3 tickers will no longer exist
Minimum Dividend Policy: 30% of the net income
4
Corporate Structure (in million of shares) Current:• without treasury stock
Resulting Company:• New Duratex in the Novo Mercado with a free float over 40%
ControlDuratex
ControlSatipel
126.7 M or 100.0% 109.1 M or 100.0%
Other Shareholders
60.9 M (48.0%). 51.9 M ON. 9.0 M PN
65.8 M (52.0%). 1.7 M ON. 64.1 M PN
31.3 M ON (28.7%)
457.9 M or 100,0%
DURA3
ControlSatipel
77.8 M (17.0%)181.3 M (39.6%) 198.8 M (43.4%)
ControlDuratex
New
77.8 M ON (71.3%)
Other Shareholders
Other Shareholders
Duratex and Satipel Association
5
GT1 - Forestry Affairs
GT2 - Commercial
GT3 - Controllership
GT4 - Finance
GT5 –Pension Fund
GT6 – People Management
GT7 – Industrial Wood
GT8 – Infra-structure
GT9 - Legal
GT10 - Logistics
GT11 - Marketing/Communication
GT12 - Supply
GT13 - Technology
GT14 – Corporate Affairs
Duratex and Satipel AssociationIntegration Committee
To define and drive the key aspects of integration:
INTEGRATION COMMITTEE
Controlling Shareholders and
Main Executives
6
Positive Market ReactionDuratex and Satipel Association
Performance from 19.06.09 to 07.08.09:
Duratex: + 43,8%
Satipel: + 87,5%
Ibovespa: + 9,6%
3,00
4,00
5,00
6,00
7,00
8,00
9,00
10,00
11,00
12,00
0/1 3/6 8/6 12/6 17/6 22/6 25/6 30/6 3/7 8/7 14/7 17/7 22/7 27/7 30/7 4/8 7/815,00
16,00
17,00
18,00
19,00
20,00
21,00
22,00
23,00
24,00
25,00
26,00
27,00
0/1 3/6 8/6 12/6 17/6 22/6 25/6 30/6 3/7 8/7 14/7 17/7 22/7 27/7 30/7 4/8 7/8
DURA4 SATI3
19.06: Closing before the association announcement
48.00048.50049.00049.50050.00050.50051.00051.50052.00052.50053.00053.50054.00054.50055.00055.50056.00056.50057.000
0/1 3/6 8/6 12/6 17/6 22/6 25/6 30/6 3/7 8/7 14/7 17/7 22/7 27/7 30/7 4/8 7/8
Ibovespa
7
Creation of the Biggest Company in the Southern Hemisphere within the Panel Making Segment
Creation of Value Sustainable Operation
Gains of Scale
Self-sufficiency of raw material
Complementarities of the
Operations
Geographical Diversification
Brand Awareness and Products Diversity
Competitive Advantages
8
Competitive AdvantagesGains of Scale
NEW DURATEX
PANELS (in m3/year) 2.160.000 1.750.000 3.910.000
MDP 500.000 1.400.000 1.900.000
MDF 1.450.000 350.000 1.800.000
Hardboard 210.000 0 210.000
Coating (in m2/year) 105.720.000 58.100.000 163.820.000
LP 37.320.000 26.500.000 63.820.000
FF 14.400.000 31.600.000 46.000.000
Painting 54.000.000 0 54.000.000
Laminated Flooring (in m2/year)* 6.000.000 0 6.000.000
Components (in m2/year) 0 1.500.000 1.500.000
Forest area (in ha) 122.700 86.600 209.300
DECA (in 1.000 items/year) 22.800 0 22.800
Metal Fittings 15.800 0 15.800
Vitreous Chinaware 7.000 0 7.000
* Laminated flooring is made of MDF.
9
3.300
3.700
3.910
5.050
5.400
5.450
5.550
6.550
10.110
12.500
+
8th Largest Panels Company Worldwide
Source: Duratex’s estimate
Competitive Advantages
(Capacity in ‘000 m³/year)
Gains of Scale
*OSB panels mainly
*
*
10
5,1
6,2
7,0
7,0
7,6
10,012,0
13,0
28,0
29,5
Metal Fittings segment among the 10 largest worldwide
7th Largest Manufacturer of Vitreous Chinaware Worldwide
Competitive Advantages
Capacity in ‘000 items/year
Source: Duratex’s estimate
Gains of Scale
11
Complementarities of the Operations
1.800
1.900
210
+3,9 million m3/year
Competitive Advantages
(capacity in ‘000 m3/year)
500
1.450
1.400
350
Hardboard
MDP
MDF
12
+
4.130
1.800
4.760
1.900
410
210 3.910
9.300
MDF MDP Hardboard
Competitive Advantages
Industry - total
Source: Duratex’s estimate
(Capacity in ‘000 m³/year)
Complementarities of the Operations
13
TaquariSATIPEL
ItapetiningaDURATEX
BotucatuDURATEX
AgudosDURATEX
UberabaSATIPEL
Bento Gonçalves
Arapongas
Mirassol
São Paulo
Ubá
Linhares
Brasília
Geographical Diversification
13
Geographical Location Favors
the Markets Logistic Service
Hardboard- DURATEX
MDP- DURATEX- SATIPEL
MDF - DURATEX- SATIPEL
MDF (2009 implementation)- DURATEX
Furniture Center
Competitive Advantages
Forest
14
Land with planted forest: 209 thousand hectares:
• Regions: SP, MG e RS
Self-sufficiency of raw material:
• Strategic for the activity
• Low distance between forests and sites
Adoption of best practices in planting, maintenance,
and forest harvesting:
• Replacement of pine by eucalyptus
• Seedlings nursery
• Use of genetic engineering
• Certified forests (FSC) and ISO 14001
Important competitive differential.
Competitive AdvantagesSelf-sufficiency of Raw Material
15
Brand:
Design:
Production Scale:
• 7.0 million items/year of vitreous china in 05 units: 02 SP, 01 RS, 01 PE and 01 RJ
• 15.8 million items/year of metal fittings, in 02 units (SP)
• 48 product lines aimed to luxury, medium and lower income segments
Country wide presence
Extensive post-sales service:
• Technical support through 246 service locations
Competitive AdvantagesBrand Awareness and Products Diversity
16
Items which compose the KIT BRASIL PriceWashbasin and a faucet integratedKitchen´s faucetSink´s faucet RegisterPressure registerRegister finishingToilet
KIT BRASIL: Innovative Solution to supply the new demand for the
construction of 1 Million houses for lower income families.
R$ 350
Competitive Advantages
Client Deca’s Design and quality
Duratex Additional revenues in a new segment
Builders Less time for installation, standardization of assembly, gains in scale
Brand Awareness and Products Diversity
17
7 Lines
48 Standards
3 Textures
Complete Accessories Line
Microban antibacterial protection
FSC Certification
Sustentax Stamp
Competitive AdvantagesBrand Awareness and Products Diversity
18
800
1.000
1.200
dez/07
fev/08
abr/0
8jun/08
ago/08
out/08
dez/08
fev/09
abr/0
9jun/09
(in R$ billion)
267.093 280.941297.755 313.830
338.703 344.351
0
100.000
200.000
300.000
400.000
2004 2005 2006 2007 2008 jun/08to
may/09
(in R$ milllion)
6
11
16
21
dez-0
3
jun-04
dez-0
4
jun-05
dez-0
5
jun-06
dez-0
6
jun-07
dez-0
7
jun-08
dez-0
8
jun-09
(in %)
6
7
8
9
10
11
12
13
14
dez-03jun-04
dez-04jun-05
dez-05jun-06
dez-06jun-07
dez-07jun-08
dez-08jun-09
(in %)
Interest Rate Credit Availability in the MarketGovernment, Manufacturing, Housing, Rural, Retail, Individuals
Unemployment Rate Disposable Income
8,1
Macroeconomic Indicators Improvement
8,75
Source: Bacen
Source: Bacen
Source: IBGE
Source: Bacen
Favorable Scenario
1.278,3
19
90
95
100
105
110
115
120
125
set/0
5
nov/05jan
/06
mar/06mai/
06jul/0
6se
t/06
nov/06jan
/07
mar/07mai/
07jul/0
7se
t/07
nov/07jan
/08
mar/08mai/
08jul/0
8se
t/08
nov/08jan
/09
mar/09mai/
09jul/0
9Source: FGV
111,4
0
100
200
300
400
500
2002 2003 2004 2005 2006 2007 2008 2009/mar
CAGR 12,8%
465,00
200,00
Minimum Wage (in R$)
Consumer Confidence (base 100)
Source: BACEN
Favorable ScenarioMacroeconomic Indicators Improvement
20
3.002 4.8529.340
18.283
30.048 30.690
0761522283043804565326086847608369129881064114012161292136814441520159616721748182419001976205221282204228023562432250825842660273628122888296430403116319232683344342034963572364837243800387639524028410441804256433244084484456046364712478848644940501650925168524453205396547255485624570057765852592860046080615662326308638464606536661266886764684069166992706871447220729673727448752476007676775278287904798080568132820882848360843685128588866487408816889289689044912091969272934894249500957696529728980498809956100321010810184102601033610412104881056410640107161079210868109441102011096111721124811324114001147611552116281170411780118561193212008120841216012236123121238812464125401261612692127681284412920129961307213148132241330013376134521352813604136801375613832139081398414060141361421214288143641444014516145921466814744148201489614972150481512415200152761535215428155041558015656157321580815884159601603616112161881626416340164161649216568166441672016796168721694817024171001717617252173281740417480175561763217708177841786017936180121808818164182401831618392184681854418620186961877218848189241900019076191521922819304193801945619532196081968419760198361991219988200642014020216202922036820444205202059620672207482082420900209762105221128212042128021356214322150821584216602173621812218882196422040221162219222268223442242022496225722264822724228002287622952230282310423180232562333223408234842356023636237122378823864239402401624092241682424424320243962447224548246242470024776248522492825004250802515625232253082538425460255362561225688257642584025916259922606826144262202629626372264482652426600266762675226828269042698027056271322720827284273602743627512275882766427740278162789227968280442812028196282722834828424285002857628652287282880428880289562903229108291842926029336294122948829564296402971629792298682994430020300963017230248303243040030476305523062830704307803085630932310083108431160312363131231388314643154031616316923176831844319203199632072321483222432300323763245232528326043268032756328323290832984330603313633212332883336433440335163359233668337443382033896339723404834124342003427634352344283450434580346563473234808348843496035036351123518835264353403541635492355683564435720357963587235948360243610036176362523632836404364803655636632367083678436860369363701237088371643724037316373923746837544376203769637772378483792438000
2004 2005 2006 2007 2008 jul/08 tojun/09
Construction Incentive Plan – Federal Government
Financing via FGTS Financing via SBPE
3.892
12.39210.543
6.9096.9995.533
2004 2005 2006 2007 2008 jul/08 tojun/09Source: CBIC e CEF Source: BACEN e ABECIP
R$ millionR$ million
Net Revenue from IMOB Construction Companies
3.239
6.672
11.330
16.956
0
5.000
10.000
15.000
2006 2007 2008 2009
R$ million
* 2006, 2007 and 2008: revenues sum of respective companies. 2009: Bloomberg consensus.
* **
** Bovespa Construction Index (contemplates: Agra, BR Malls, Brookfield, Camargo Correa, Cyrela, Gafisa, MRV, PDG, Rossi, Tecnisa and Tenda).
Construction Growth Potential
Increase of the financing limit, through FGTS, from XR$ 350.000 to R$ 500.000;
Tax exemption for building materials (IPI reduction) Xextended until December/09;
Mortgage credit availability;
Extension of financing terms
Housing deficit: 7,2 million units.
Favorable Scenario
21
1.908,42.157,9 2.097,9 2.179,7
2.545,1 2.561,7
512,3 559,0
2003 2004 2005 2006 2007 2008 1Q09 2Q09
MDP
MDF
(Source: ABIPA)
(Source: ABIPA)
Total Consumption of Panels in Brazil (in ‘000 m³)Favorable Scenario
1.018,6
1.372,5 1.394,4
1.826,72.032,5 2.146,8
472,1 528,8
2003 2004 2005 2006 2007 2008 1Q09 2Q09
22
Worldwide Consumption of Panels per Capita (in m3 / year)
17
47
13
MDF
Europe
Brazil
16
20
USA
11
MDPMDF
China
19
8
2007 – EUROPE, 2008 (Projection) – USA, BRAZIL, CHINA AND AUSTRALIA.Sources: EPF, Abipa and Wikipedia
Australia
22
46
Favorable Scenario
23
77%
81%
90%
94%
23,0%
19,0%
10,0%
25,0%
6,0%
75%
Vitreous China
Metal Fittings
MDF
MDP
Hardboard
7,000,000 items/year
500,000 m³/year
210,000 m3/year
15,800,000 items/year
640,000 m³/year
HighlightsInstalled Capacity and Occupancy Rate 2Q09
(1)
(2)
(3)
(4)
(1) Resulting capacity after the shuting down of the Jundiaí hardboard unit. Previous capacity: 360.000 m³/year.(2) After the association with Satipel, the MDP capacity will be: 1,9 milion m3/year.(3) Disregarded the new line with 800K m³ in Agudos / SP, and 350K m3 from Satipel, both ramping-up.(4) Capacity being expanded to 18 million items/year. Estimated completion: 2010.
24
Balanced Financial Structure2005 2006 2007 2008 jun/09
Cash 234,0 574,6 752,7 598,1 400,1
Current Assets 726,7 1.138,9 1.355,9 1.321,8 1.077,8
Long-Term Assets 39,1 33,6 64,5 144,4 136,5
Total Assets 1.947,1 2.375,2 2.750,5 3.373,4 3.249,0Short Term Debt 151,5 359,4 246,2 435,1 485,9
Current Liabilities 318,7 601,0 563,3 832,8 847,1
Long Term Debt 439,6 258,8 424,6 649,4 444,6
Long-Term Liabilities 565,5 377,8 630,0 808,5 609,7
Minority Interest 12,0 0,6 0,6 0,6 2,2
Equity 1.050,9 1.395,8 1.556,5 1.731,5 1.790,0
Current Ratio 2,28 1,90 2,41 1,59 1,27
Equity / Total Assets 54% 59% 57% 51% 55%
Debt / Debt + Equity 36% 31% 30% 39% 34%
Net Debt 357,1 43,6 -81,9 486,4 530,4Net Debt / Equity 0,34 0,03 (0,05) 0,28 0,30
Net Debt / EBITDA 0,98 0,10 (0,15) 0,87 1,27
Balance Sheet Highlights (in million R$)
Risk Ratios:
* annualized
Highlights
25
258,5
384,8
33,878,3
42,9 42,9 47,2 42,0
jul/09 todec/09
2010 2011 2012 2013 2014 2015 2016andafter
DomesticCurrency
59,1%
Foreign Currency
40,9%
Short-term
52,2%
Long-term
47,8%
Maturity (in R$ million)
Total Debt
100% Hedge
1H2009 Debt:• Increase: R$ 97,2 M• Amortization: R$ 191,3 M
Debt Profile in June/09
R$ 930,4 M
Highlights
26
Revenue Origination 1H09
MDF/HDF/SDF/Laminate Flooring
30,6%
MDP12,4%
Hardboard15,0%
Metal Fittings24,2%
Vitreous China17,8%
Domestic Market92,2% Export Revenues
7,8%
Consolidated Net Revenue
Revenue Geographical Distribution
R$ 807,1 M
Highlights
27
Net Revenue in the Domestic Market
10,9%
5,9%
83,2%
Technical Sales 3,3%
Construction4,8%
Resale30,1%
Other 4,4%
Industry57,4%
Retail54,6%
Construction19,6%
Home Center 16,4%
Wholesale6,9%
Other2,5%
Wood
By Geographical Region 1H09
R$ 807,1 M
Revenue Segments 1H09
58,0% 42,0%
Highlights
28
Non-recurrent Events
(in R$ million) 1Q08 2Q08 3Q08 4Q08 2008 1Q09 2Q09REPORTED EBITDA 127,8 160,3 141,7 129,5 559,3 94,2 104,6NON-RECURRENT ITEMS 0,0 17,6 (8,7) (10,3) (1,4) (7,6) (1,4)
. Tax credit (COFINS) - 24,0 - - 24,0 - -. Acquisition expenditures in Deca - (3,5) (1,9) - (5,4) - -
. Expenditure costs with SAP - (1,4) - (1,9) (3,3) - -. Civil and Labor provisions - (1,6) - - (1,6) - -
. Down payment for future energy consumption - - (6,8) (6,8) (13,6) - -. Jundiaí Shutdown - - (1,6) (1,6) (7,6) (1,4)
RECURRENT EBITDA 127,8 142,7 150,4 139,8 560,7 101,9 105,9
REPORTED NET INCOME 72,2 75,9 98,2 67,6 313,9 46,9 45,0NON-RECURRENT ITEMS 0,0 10,5 9,6 (6,4) 13,6 (4,8) (0,9)RECURRENT NET INCOME 72,2 65,4 88,6 74,0 300,2 51,6 45,8
Highlights
** *
* Events which affect the cost of goods sold, all the others impact the operating lines.
29
65,4 88,6 74,051,6 45,8
2Q08 3Q08 4Q08 1Q09 2Q09
139,8101,9
150,4142,7 105,9
30,1% 29,1% 28,2% 25,9% 25,6%
2Q08 3Q08 4Q08 1Q09 2Q09
495,2
413,3473,5
517,4
393,8
38,0%37,7%39,9%40,6%40,4%
2Q08 3Q08 4Q08 1Q09 2Q09
Net.Rev.(R$ million) & Gross Margin (%)
Net Income (R$ million)
EBITDA (R$ million) & Margin (%)
Recurrent Financial Performance (Last 5 Q).
Performance
112,5 125,7 103,069,2 80,9
2Q08 3Q08 4Q08 1Q09 2Q09
Income Before Taxes (R$ million)
30
Formation of Wood’s Recurrent EBITDA
R$ million
42,5 (22,6)
(89,6)193,6
128,5
0
50
100
150
200
Ebitda jun/08
Volume RevenuePrice
VariableCosts
(Volume)
VariableCosts(Price)
Jundiaí HardboardShutdown
FixedEbitda jun/09
Non-recurrent events
9,0
Costs
*
* Reported EBITDA. Mainly contains (+) 13,3M from the taxes recovery.
27,0 (23,7)(7,7)
Performance
31
Recurrent Financial Performance (Last 5Q.)
Net Revenues (R$ million) & Gross Margin (%) EBITDA (R$ million) & Margin (%)
299,7 325,8 309,0229,3 238,7
41,2% 38,6% 37,8% 37,0%39,7%
2Q08 3Q08 4Q08 1Q09 2Q09
95,5 98,9 90,2
64,6 63,9
31,9%29,2% 28,2% 26,8%
30,3%
2Q08 3Q08 4Q08 1Q09 2Q09
Shipments (in ‘000 m3)
330,4 351,9318,4
244,7281,3
2Q08 3Q08 4Q08 1Q09 2Q09
Performance
32
R$ million
79,3
(21,0)
(27,2)45,6
94,5
0
20
40
60
80
100
120
140
160
180
Ebitda jun/08
Volume RevenuePrice
Variable Costs
(Volume) (Price)
Fixed Costs
Ebitda jun/09
0,0
Formation of Deca’s Recurrent EBITDA
Variable Costs
Non-recurrent events
* Reported EBITDA. Mainly contains (+) 4,2M from the taxes recovery.
23,6 (36,2)
Performance
*
33
Net Revenues (R$ million) & Gross Margin (%) EBITDA (R$ million) & Margin (%)
47,2 51,5 49,637,3 42,0
27,2% 26,6%
22,7%24,1%
26,9%
2Q08 3Q08 4Q08 1Q09 2Q09
173,8186,3
164,5
191,7174,5
39,1%42,0%
37,5%39,4%
42,2%
2Q08 3Q08 4Q08 1Q09 2Q09
Recurrent Financial Performance (Last 5Q.)
4.2044.926 4.744
4.2394.775
2Q08 3Q08 4Q08 1Q09 2Q09
Shipments (in ‘000 items)
Performance
34
Disclamer
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 brings general information about the
Company and markets as of this date. 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.
13th August 2009.
35
1st Half Results2009
August / 2009