Post on 26-Jun-2015
description
Disclosure of Results
1 Q 2008
www.duratex.com.brwww.duratex.com.br
May 2008
> Business segments
DECA DIVISIONDECA DIVISION
Metal FittingsVitreous ChinaA iAccessories
Leadership within the Metals segment having Leadership within the Metals segment having a prominent position in Vitreous China.a prominent position in Vitreous China.
Possesses the industryPossesses the industry´́s broader product line s broader product line attending the different market segments.attending the different market segments.
> Business segments
Hardboard
WOOD DIVISION WOOD DIVISION
HardboardMDPMDF/HDF/SDF 0MDF/HDF/SDFLaminate Flooring
Leadership within the Brazilian Leadership within the Brazilian pppanel making industry having the panel making industry having the
most diversified product linemost diversified product linemost diversified product line.most diversified product line.
> Business segments
100% f h i b l d h ldi d D S A100% of the timberland holdings under Duratex S.A.Total timberland area: 115.000 ha:
market al e R$ 1 260 M (USD 720 M)• market value: R$ 1.260 M (USD 720 M);• book value (Mar/08): R$ 455 M (USD 260 M).
Self sufficiency in wood supply:Self-sufficiency in wood supply:• cost efficiencies;• strategic access to raw material;strategic access to raw material;• process integration reducing business volatility / risk.
ISO14.001 and FSC certified;;Member of the Chicago Climate Exchange (CCX):
• Amount of CO2 offsets (timberland): 1.314.004 tones.
> CAPEX: material fact March 2007
MDF biggest line: 800.000 m3 capacity / year:
Capacity increase:
growth over existing capacity: +125% (end 1HY09).Metal Fittings: + 400.000 items / month:
growth over existing capacity : +33% (end 2HY09).
Agudos/SP
growth over existing capacity : 33% (end 2HY09).Vitreous China: + 150.000 items / month:
growth over existing capacity: + 47% (acquisition of Ideal Standard).
Enrich sales mix:Expand by 130% the current laminate flooring production capacity (end 1HY09)capacity (end 1HY09).New Low Pressure (BP) Coating Line : 8.500.000 m2 / year:
growth over existing capacity: +35% (end 1HY08).Metal Fittings and Vitreous China in Jundiaí/SP
Increase cost efficiencies:Resin plant: produce 100% of resin needs for MDF + MDP (end 1HY09).
China in Jundiaí/SP
Acquisition of 20.000 hectares of land in the region.SAP Software and IBM Risk Hardware.
> CAPEX
Characteristics of the acquisition:
Acquisition: IDEAL STANDARD (vitreous china)
Characteristics of the acquisition:
• R$ 60M: Acquisition + Capex + Working Capital needs;
• 2 plants: Jundiaí/SP (80k items/month) and Queimados/RJ (70k items/month)2 plants: Jundiaí/SP (80k items/month) and Queimados/RJ (70k items/month).
Advantages:
• Investment per item: 30% savings over a green field project;p g g p j ;
• Time to market: a green field would take 24 months to be completed.
> CAPEX: material fact May 2008
MDP: 1.000.000 m3 capacity / year:
Capacity increase:
growth over existing capacity: +200% (end 2HY10). Itapetininga/SP
Enrich sales mix:
New Low Pressure Coating Line:growth over existing capacity : +33% (end 2HY09).
Resin plant:
Cost savings:
Resin plant: provide 100% of resin needs to the Itapetininga site.
Objectives:
Take advantage of good market momentum,Strengthen market leadership,
j
Improve competitive advantages andCreate value to shareholders.
> CAPEX and EBITDA (in R$M)
875,0
CAPEX
565 4558 1
CAPEX
EBITDA
565,4558,1
458,1
362,6320 6
222,3172,8
303,5
210,4187,5199,4
320,6232,2
105,4136,8139,4138,9 108,4
2000 2001 2002 2003 2004 2005 2006 2007 2008 *2000 2001 2002 2003 2004 2005 2006 2007 2008 *
* 2008• Capex: estimated.• EBITDA: last 12 months data (from April/2007 to March/2008).
> Duratex
92%H db d 360 000 m3/year360 000 m3/year
Nominal capacity and utilization rate during the 1Q2008:
92%
85%MDP
Hardboard
500 000 m3/year500 000 m3/year
360.000 m3/year360.000 m3/year
87%
85%
MDF/HDF/SDF
MDP 500.000 m /year500.000 m /year
640 000 m3/year640 000 m3/year
77%
87%
MetalFittings
MDF/HDF/SDF
15.600 K items/year15.600 K
items/year
640.000 m /year640.000 m /year
77%
98%Vitreous China
Metal Fittings
4.000 K items/year
4.000 K items/year
items/yearitems/year
98% items/yearitems/year
Highlights:> Wood Division: plant stoppage for 10 days on average> Wood Division: plant stoppage for 10 days on average > Metal Fittings: capacity increased by 1,2 M items / year
> Housing
Housing financing via savings account (in R$ million)
. New loans Jan/08
. Increase over Jan/0718 41021.000
224,5 M+2.300% a/a
76 9 M
248,5 M+145% a/a9.314
18.410
76,9 M+52% a/a
902,8 M+109% a/a
3.0024.852
167,5 M+49% a/a
2004 2005 2006 2007 2008*Source: ABECIP, BACEN, 2008 estimate:SECOVI
Interest rate and Civil Construction GDPInterest rate and Civil Construction GDP
15,75%
19,00% 22,00%
17,50% 17,25%
18,50%
13,25%
SELIC rateCi il C t ti GDP
2,1%
5,7%
1,3%5,3% 5,6%
4,5%
11,25% 11,30%
Civil Construction GDP
* IBGE and Bacen estimates
-8,6%
-2,5%-2,6%2000 2001 2002 2003 2004 2005 2006 2007 2008*
> Housing
Average construction cycle:
6 meses 12 meses 6 meses
> Housing
Diversified Product Mix> Type of real estate:> Type of real estate:
C (economic) B A AA (premium )
Description:• Constructor: MRV• Area: 42 m2• Value: R$ 1.584 / m2
Description:• Constructor: Ecolife
Description:• Constructor: TecnisaValue: R$ 1.584 / m2
• Total # of units: 296• Deca Products: R$171.384
• Area: 78 m2• Value: R$ 2.540 / m2• Total # of units: 198• Deca Products: R$327.690
• Constructor: Tecnisa• Area: 130 m2• Value: R$ 3.450 / m2• Total # units: 52• Deca Products: R$412.672 Description:Deca Products: R$412.672 Description:
• Constructor: Cyrela • Area: 607 m2• Value: R$ 5.340 / m2• Total # of units: 48Total # of units: 48• Deca Products: R$2.007.456
> Performance
Revenues breakdown (1Q2008):
Laminate Flooring
6%Housing(direct)
MDF/HDF SDF27%
Metal Fittings22%
6%
46%(direct)
27%22%
R$ 428 3 MHousing(indirect)
Vitreous Particle
34%
Oth
R$ 428,3 M ( )
Vitreous China12%
Board15% 20%
Others
Hardboard18%
Segments Attended
> Leverage
Total Debt 793,8
Cashandequivalents 705,0
R$ M 1Q08
34%
66%STLT
Cash and equivalents 705,0Equity 1.578,7
Net Debt / Equity 5,6%
N t D bt / EBITDA 017Net Debt / EBITDA 0,17
Foreign Currency Debt and Amortization
Schedule (R$M)268,6160,5
Domestic Currency
119,7
260 3633,3Currency 260,3
145,2
633,3
Debt 1Q08 2008 2009 2010 2011 andafter
> Highlights 1Q2008
Shipped Volumes: + 11% y/y;Shipped Volumes: + 11% y/y;
Net Revenues: + 29% y/y, to R$ 147,0 million;
Gross Margin: from 39%, in 2007, to 43%;
EBITDA: + 59% to R$ 43,1 M. EBITDA Margin from 24% to 29%.
> Highlights 1Q2008
Wood
Shipped volumes : - 2%;
N t R R$ 281 3 illi b 16% /Net Revenues: R$ 281,3 million, up by 16% y/y;
Gross Margin: from 48% to 39%;
EBITDA: - 9% to R$ 84,8 million and EBITDA margin at 30%;
Results impacted by increasing cost pressure arised from:
• resins,
• electric power.
> 1st Quarters performance
EBITDA (R$ million) & Margin (%)Net Rev.(R$ million) & Gross Margin (%)
31% 31% 34% 30%356,5
428,343% 43% 46%
40%
93,8 101,9 120,6 127,9306,3330,4
356,5
Equity (R$ illi ) & ROE (%)
2005 2006 2007 20082005 2006 2007 2008
Net Income (R$ illi )
1.578,71.477,118%17%
23% 22%Equity (R$ million) & ROE (%)Net Income (R$ million)
1.016,2 1.094,378,874,744,840,1
2005 2006 2007 20082005 2006 2007 2008
> Yearly performance
29% 31% 33% 32%
Net Rev.(R$ million) & Gross Margin (%) Ebitda (R$ million) & Margin (%)
1742344%
45%43%
42%
558,1 565,4
3626458,1
29% 31%1.670,6 1.742,3
1.489,2362,6
1.270,6
* *2005 2006 2007 2008
22%Net Income (R$ million) Equity (R$ million) & ROE (%)
2005 2006 2007 2008* *
2260318,9 323,0 1.395,7
1.535,8 1.578,714%18%
22%22%
137,1226,0 1.050,8
2005 2006 2007 2008 2005 2006 2007 2008* ** 2008 last 12 months (LTM)
> Performance
WOOD
EBITDA EBITDA (in R$ million)(in R$ million) & Margin & Margin (in %)(in %)
Annual (2008 LTM data)1st Quarters
31,9% 33,0%
38,5%
30 2%31,1% 35,3% 37,1% 35,1%
93,6
30,2%
401,3354,4 410,0
72,765,3
93,684,8
2005 2006 2007 2008
267,1
2005 2006 2007 2008
> Performance
EBITDA EBITDA (in R$ million)(in R$ million) & Margin & Margin (in %)(in %)
Annual (2008 LTM data)1st Quarters
28,1%23,8%
29,3%26,4%
164 1
27,4%26,2%23,3% 21,4%
43,127 029 228,6 103 7
148,1164,1
95,527,029,2,
2005 2006 2007 2008
103,795,5
2005 2006 2007 2008
> Capital markets
Shareholding Structure:Shareholding Structure:Total number of outstanding shares: 129,7M
• PN: 76,1M,• ON: 53,6M.
80% tag along rights
Preferred shareholders historic holdings:
55%60%
Foreign Investor40%45%50%55%
Other Local Investors
20%25%30%35%
Local Pension FundsItaúsa (Controller)5%
10%15%20%
0%5%
mar/07 ab
r
mai jun jul ago set out
nov
dez
jan/08 fev mar
> Capital markets
65 00 45 000
Stock Performance Stock Performance (period between Dec 31th 2005 and May 02(period between Dec 31th 2005 and May 02ndnd 2008)2008)::
45 0050,0055,0060,0065,00
35.000
40.000
45.000Mid price (in R$)
Traded Volume(15 day moving average in R$M)
25 0030,0035,0040,0045,00
20.000
25.000
30.000( y g g $ )
10,0015,0020,0025,00
5 000
10.000
15.000
Appreciation during the period in US$: . Duratex = + 257%
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5.000. Ibovespa = + 174%
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Member of and stock indexes.
I l i f D t t k Ib d IB X50 i d
> Market capitalization (in US$ M)
. Primary and secondary Stock issuing R$ 609 M
. Inclusion of Duratex stock on Ibovespa and IBrX50 indexes
. Extraordinary dividend worth R$50M
. Adhesion to Bovespa Level 1
. Stock inplit 200 / 1
y y g $. Stock dividend 1x1
3.1722.943. Termination of Benefficiary Parts . Extraordinary dividend. 30% minimum pay-out dividend policy
1.990. 80% Tag-Along rights
. 30% minimum pay out dividend policy
173 339 550 748173
2002 2003 2004 2005 2006 2007 2008*
+1.600% during the period* as of 02.May.2008
> Capital markets
Sell side coverage on Duratex stock:Sell side brokerage Analyst Phone E-mail
Brascan Corretora Beatriz Battelli (55-21) 3231-3146 bbattelli@bancobrascan.com.brCitibank Luis Vallarino (52-55) 1226-0608 lvallarino@accival.com.mxCredit Suisse Marcelo Telles (52-55) 5283-8933 marcelo.telles@credit-suisse.comDeutsche Bank Josh Milberg (55-11) 2113-5971 josh milberg@db comDeutsche Bank Josh Milberg (55-11) 2113-5971 josh.milberg@db.comFator Banco Eduardo Pirani Puzziello (55-11) 3049-9478 epuzziello@fatorcorretora.com.brItaú Corretora de Valores Renata Faber (55-11) 5029-4542 renata.faber@itau.com.brLink Corretora Andres Kikuchi (55-11) 4504-7290 andres@linkcorretora.com.brMerrill Lynch Marcos Assumpção (55-11) 2188-4226 marcos_assumpcao@ml.comSantander Banespa Marcello Milman (55-11) 3012-7530 mmilman@santanderbanespa.com.brSocopa Corretora de Daniel Dol (55-11) 3299-2166 daniel@socopa.com.brUBS Pactual Edmo Chagas (55-21) 2555-3025 edmo.chagas@ubs.comUnibanco Andre Luiz Rocha (55-11) 3584-4330 andreluiz.rocha@unibanco.com.br
> DISCLAIMER
The information contained herein was prepared by Duratex S.A. (the “Company”) and does not constitute an offering material, to subscribe for or purchase any of the Company’s securities. This material contains general information about the Company 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.
May 13, 2008