duratex - 2008 results
DESCRIPTION
Presentation - 2008 ResultsTRANSCRIPT
1
December / 2008
Disclosure of Results
2
Index
>> Business segments
>> Geographical Location
>> CAPEX
>> Scenario
>> Financial Highlights
>> Capital Markets
>> Disclaimer
3
Business segmentsDeca Deca DivisionDivision
Vitreous China;Metal fittings;Accessories.
Leadership within the Metals segment having a
prominent position in Vitreous Chinaware.
Possesses the industry´s broader product line
attending the different market segments.
4
Business segmentsWood Wood DivisionDivision
Hardboard;MDP;MDF/HDF/SDF;Laminate Flooring;Moldings.
WoodWood
Provides finishing materials for the construction industry and raw materials for the furniture makers. Leader within the Brazilian panel making industry having the most diversified product line.
5
Business segmentsForestForest
Duratex S.A timberland holdings.;Total timberland area: 120.000 ha, of which 65% planted:
Market value: R$ 1.529 million (US$ 654 million),Book value: R$ 577 million (US$ 247 million).
Self-sufficiency in woody supply:Economies of scale;Strategic access to raw material;Reduced execution risk.
ISO14.001 and FSC certifications;Member of CCX (Chicago Climate Exchange).
6
Geographical LocationGeographical Location
Wood DivisionWood Division
MDF & FlooringAgudos - SP
MDPItapetininga - SP
MDF & HardboardBotucatu - SP
HardboardJundiaí - SP
7
Geographical LocationGeographical Location
Deca DivisionDeca DivisionMetals - São Paulo Ceramics Cabo de Sto Agostinho - PE
Ceramics Jundiaí - SP
Ceramics Queimados - RJMetals & Ceramics - Jundiaí
Ceramics São Leopoldo - RS
8
CAPEXHighlightsHighlights
Technology update;Leadership in segments of activity with high growth potential and competitive advantages;Verticalisation of processes with focus on costs savings:
• acquisition of land,• coating lines and• resin plant, among others.
Low net debt (R$ 486,3 million, equivalent to 0,87 times EBITDA).
138,9 139,4
303,5
172,8 136,8 108,4 105,4
222,3
673,4
2000 2001 2002 2003 2004 2005 2006 2007 2008
CAPEX( R$ million)
2.000,9
9
CAPEXDuratex industrial outputDuratex industrial output capacity growthcapacity growth
12.000 13.200 14.400 14.400 14.400 14.400 14.400 14.400 15.600 16.800
2.5803.300
3.300 3.200 4.200 4.200 3.800 3.8004.520
6.200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
360 360 360 360 360 360 360 360 360 360
320 340 360 500 500 500 500 500 500 500200 220 240
640 640 640 640 640
1.440
640
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
WoodWood
Hardboard
MDPMDF
(capacity in ‘000 m3)
Utilization rate
MetalV.China
(capacity in ‘000 items) Utilization rate
*Start-up of the new MDF line in Agudos (SP) set to Apr/09 with capacity of 800,000 m³ / year and a gradual ramp-up.
** Queimados Unit remains disabled. Its entry will depend on the performance of the market. Its capacity is 840,000 pieces per year.
*
**
96%
85%81%
69%70%
60%
92%90%92%
89%
83%77%
69%74%76%
82%82%87%
10
CAPEXMDF Project:MDF Project:
• MDF line: 800.000 m3/year capacity and estimated start-up by Apr/2009 :
• 125% growth over Duratex existing MDF capacity.
• Melamine finishing line: 10,2 million m2 capacity;
• Resin plant;
• Timberland.
11
CAPEXMetal Fittings:Metal Fittings:
• Capacity increase: 4,8million pieces / year or +33%;
• Completion of expansions: 2010.
12
VitreousVitreous China:China:
Two acquisitions worth R$60 million each :
1 - Ideal Standard: two plants (Jundiaí/SP and Queimados/RJ) with
a combined capacity of 1.800.000 items / year.
2 - Cerâmica Monte Carlo: one plant in Cabo de Sto Agostinho/PE
with a capacity of 1.440.000 items / year.
CAPEX
13
ScenarioDisposable incomeDisposable income
254.316 254.293 263.445 278.055 295.856 313.123334.114
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
2002 2003 2004 2005 2006 2007 2008Data available since 2002 (source: IBGE)
CAGR: 4,7%
50100150200250300350400450500
2002 2003 2004 2005 2006 2007 2008 2009/mar
CAGR 12,8%
465,00
200,00
Brazilian minimum wage (in R$)
Brazilian disposable income (R$ million)
(source: IBGE)
14
ScenarioAvailability of credit :Availability of credit :
235.300270.400
187.940168.730
158.260143.060139.640
2002 2003 2004 2005 2006 2007 2008
Savings account deposits (R$ million)
3.742 3.821 3.8925.533
6.999 6.909
10.540
2002 2003 2004 2005 2006 2007 2008
1.769 2.218 3.002 4.8529.340
18.283
30.048
2002 2003 2004 2005 2006 2007 2008
Financing via SBPE (R$ million)
Source: BACEN and ABECIP
Financing via FGTS (R$ million)
+ 52,5%
Source: BACEN
Source: CBIC e CEF
CAGR: 11,6%CAGR: 30,2%
+ R$83 bi
Housing deficit: 7,8 M units (Ernst Young, 08);2004: regulatory framework improvement:
expansion of credit and extension of financing terms.
2009: government package to be announced to stimulate the sector, including:
financing limit increase through FGTS from R$350 thousand to R$ 500 thousand and
tax benefits for building materials.
15
28.790 36.376 53.434 59.873
111.296
193.547
294.863
2002 2003 2004 2005 2006 2007 2008
31.54534.938
28.19233.682 34.727
62.065 61.898
2002 2003 2004 2005 2006 2007 2008
Source: BACEN
+ 184 Kunits
New launchings in the Sao Paulo metro area
Source: Embraesp
+ 78,7%
CAGR: 47,4%
Units Financed (construction + acquisition)
Real Real Estate LaunchingsEstate LaunchingsScenario
16
ScenarioMaketsMakets attendedattended
6 months 12 months 6 months
Construção46%
Sales Segments 2008
Average construction cycle
Construção46%
Furniture33%
Others20%
Housing(directly)
47%
Project
Incorporation
Flagstone erection
Hydraulic and Electrical
Thick finishing
Keys handover
Accesso
ries,
Furniture and
Remodeling
Light Finishing
17
Financial HighlightsBalanced Balanced Financial Financial StructureStructure
2004 2005 2006 2007 2008Balance Sheet Highlights:Cash 105,1 234,0 574,6 752,7 598,1Current Assets 621,6 726,7 1.138,9 1.355,9 1.321,8Long-Term Assets 33,6 39,1 33,6 64,5 144,4Total Assets 1.811,9 1.947,1 2.375,2 2.750,5 3.373,4Short Term Debt 175,1 151,5 359,4 246,2 435,1Current Liabilities 345,2 318,7 601,0 563,3 832,8Long Term Debt 342,6 439,6 258,8 424,6 649,4Long-Term Liabilities 464,7 565,5 377,8 630,0 808,5Minority Interest 11,6 12,0 0,6 0,6 0,6Equity 990,4 1.050,9 1.395,8 1.556,5 1.731,5
Risk Ratios:Current Ratio 1,80 2,28 1,90 2,41 1,59Equity / Total Assets 55% 54% 59% 57% 51%Debt / Debt + Equity 34% 36% 31% 30% 39%Net Debt 412,6 357,1 43,6 -81,9 486,4Net Debt / Equity 0,42 0,34 0,03 -0,05 0,28Net Debt / EBITDA 1,29 0,98 0,10 -0,15 0,87
18
Financial HighlightsDebtDebt
435401
33393536
7927
2009 2010 2011 2012 2013 2014 2015 2016 eapós
Long-term60%
ForeignCurrency
53%
DomesticCurrency
47%R$ 1.084,4 M
Short-term40%
100% Hedged
Debt profile
Debt amortization schedule(in R$ million)
2016 andafter
19
Financial HighlightsRevenues Breakdown in 2008Revenues Breakdown in 2008
MDF/HDF/SDF/ Laminate Flooring
32,6%
MDP14,3%
Hardboard17,0%
Metal Fittings22,6%
Vitreous China13,5%
Net Revenue
R$ 1.913,6 M
Domestic Market90,6% Export Revenues
9,4%
Revenues origination
20
Financial HighlightsNet Revenues in the domestic marketNet Revenues in the domestic market
9,4%
5,2%
85,3%
Domestic revenues
R$ 1.733,7 M
Technical Sales 3,2%
Construction 16,2%
Resale 24,9%
Other 3,8%Industry
51,9%
Retail54,4%
Builders 19,6%
Home Center 17,0%
Wholesale6,8%
Other2,2%
Wood
Market segments
62,1%37,9%
21
Financial HighlightsAnnual performanceAnnual performance
Net Rev.(R$ million) & Gross Margin (%) EBITDA (R$ million) & Margin (%)
1.489,21.670,6
1.913,6
1.188,21.270,6
40,2%45,0%43,2%
41,5%39,1%
2004 2005 2006 2007 2008CAGR: +12,7%
458,1558,1
362,6320,6
559,427,0% 28,5% 30,8% 33,4%
29,2%
2004 2005 2006 2007 2008
990,4 1.050,91.395,8 1.556,5
1.731,513,1% 13,5% 19,2%
21,5%18,3%
20,4%
2004 2005 2006 2007 2008
CAGR: +14,9%
313,8
318,9
226,0
137,1125,3
2004 2005 2006 2007 2008
Net Income (R$ million) Equity (R$ million) & ROE (%)
**
*
** CAGR by Law 11.638: 25,8%
* CAGR by Law 6404: 27,8%
**
*
20,1333,9
CAGR: +27,8%
CAGR: +15,0%
22
1.556,5 1.578,7 1.623,9 1.677,1 1.731,5
20,6% 21,7%
11,7%
27,5%22,6%
16,9%
4Q07 1Q08 2Q08 3Q08 4Q08
485,6459,8
428,3470,0
529,7
43,3% 40,2% 40,3% 40,0% 40,4%
4Q07 1Q08 2Q08 3Q08 4Q08
77,4 78,8 83,7 103,4
47,90,0
50,0
100,0
150,0
4Q07 1Q08 2Q08 3Q08 4Q08
PL (R$ milhão) & ROE (%)
144,1 127,9 160,1 129,1142,3
31,3% 29,9% 34,1%26,9% 26,6%
4Q07 1Q08 2Q08 3Q08 4Q08
20,168,0
** CAGR by Law 11.638: 25,8%
* CAGR by Law 6404: 27,8%
**
* **
*
Quarterly PerformanceQuarterly PerformanceFinancial Highlights
Net Rev.(R$ million) & Gross Margin (%) EBITDA (R$ million) & Margin (%)
Net Income (R$ million)
23
Financial HighlightsWood DivisionWood Division
Net Revenues (R$ million) & Gross Margin (%)
1.215,0
807,2 860,01.004,4 1.104,5
40,9% 42,3% 45,9% 47,1% 39,5%
2004 2005 2006 2007 2008
301,7295,4 281,3 296,5 335,4
45,0% 38,7% 41,1% 38,9% 39,2%
4Q07 1Q08 2Q08 3Q08 4Q08
CAGR: +10,8%
EBITDA (R$ million) & Margin (%)
366,3
255,5 267,1354,4
410,131,7% 31,1% 35,3% 37,1% 30,1%
2004 2005 2006 2007 2008
80,4101,0 84,8108,6 92,5
34,2% 30,2%36,6%
27,6% 26,7%
4Q07 1Q08 2Q08 3Q08 4Q08
CAGR: +9,4%
24
Financial HighlightsDeca Deca DivisionDivision
Net Revenues (R$ million) & Gross Margin (%)
698,6
381,0 410,6484,7
566,0
35,1% 39,6% 37,6% 41,0% 41,5%
2004 2005 2006 2007 2008
183,9164,4 147,0 173,5 194,3
40,3% 43,2% 38,9% 41,9% 42,3%
4T07 1T08 2T08 3T08 4T08
CAGR: +16,4%
EBITDA (R$ million) & Margin (%)
193,1
65,295,5 103,7
148,117,1%
23,3% 21,4%26,2% 27,6%
2004 2005 2006 2007 2008
48,643,1 43,1 51,5 49,9
26,2% 29,3% 29,7% 25,7% 26,5%
4T07 1T08 2T08 3T08 4T08
CAGR: +31,2%
25
Financial HighlightsNet Net RevenuesRevenues and and Cash Cash CostCost per per shippedshipped unitunit (in R$)(in R$)
16,62 17,67 20,15
39,7737,6334,6732,01
27,72
20,53 21,54
0,00
10,00
20,00
30,00
40,00
50,00
2004 2005 2006 2007 2008
940,18865,68824,32826,63768,22
399,79405,28 422,42 415,04526,81
0,00
250,00
500,00
750,00
1.000,00
2004 2005 2006 2007 2008
WoodWood
CAGR: 9,4%
CAGR: 6,8%
CAGR: 5,2%
CAGR: 6,7%
Net Revenues
Cash Cost
26
Financial HighlightsCostsCosts
Energy (R$/MWh) Base 100 = Q107
Resin (R$/Kg) Base 100 = Q107
155,8165,4
118,4112,7100,0128,3
265,3
188,7169,2
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 jan/09
116,7137,1
123,9109,5118,4
93,586,997,1100,0
020406080
100120140160
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 jan/09
-5,8%
-14,9%
271994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009 2010 2011 2012
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1st MDF plant in BrazilLaminated flooring
MDP Expansion
MDF Expansion
MDF ExpansionResin Plant
Deca acquisitions CAGR: +18,1%
2, 57 *
0,25
Acquisition of land and planting of timberland and expansion Deca
1,16CAGR: 30,4%
559,4
70,3
110,0
6,9
2007: R$50 million inextraordinary dividends
2004: R$15,3 million in extraordinary dividends
CAGR: +16,0%
CAGR: +21,9%
* EPS for Net Income of R$333,9M. By Law 11.638, Net Income of R$313,8M, EPS would be R$2,42.
EPS in R$ 1
EBITDANormal Dividends (R$ milion)
Positive track recordPositive track recordCapital Markets
28
41%
25%
6%26%
2%
88,5%
11,5%
8% 42%
10%37%
3%
129.695.415129.695.415 53.555.96353.555.963 76.139.45276.139.452# of outstanding shares: # of outstanding shares:
ON +PNON +PN ONON PNPNMajor groups of shareholders as ofMajor groups of shareholders as of decdec/2008/2008
Capital Markets
Total CapitalTotal Capital Common StockCommon Stock Preferred StockPreferred Stock
Other Local Investors
Itaúsa Foreign Investors
Local Pension Funds
Treasury Stock
DisclaimerDisclaimer
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.
March 2009
30
Diclosure of results
December / 2008