Corporate Presentation · Corporate Presentation 3rd Quarter 2015 . Competitive ... ›João Pessoa...
Transcript of Corporate Presentation · Corporate Presentation 3rd Quarter 2015 . Competitive ... ›João Pessoa...
Competitive
advantages
Duratex at a glance
Who are we
- Biggest producer of wood panels, sanitary ware and metal fittings from the South Hemisphere
- The Company has two business divisions:
DECA DIVISION: metals and sanitary ware and its respectives accessories, electronic showers
WOOD DIVISION: laminate flooring, Medium Density Fiber Board (MDF) and Medium Density Particle Board (MDP)
panels and hardboard.
- Leader in all businesses
- Large scale plants with up to date technology
- Forest productivity
- Forestry integration
- Self suficient with low cost in wood
- Brands top of mind in its sectors
- Geographical localization of its plants next to consumer markets
- Corporate Governance and strong financial fundamentals
1
Shareholder Structure
40%
7,8% 31,7% 20%
Itausa Ligna Foreign
Investors Other Local
Investors Treasury Pension Funds
0,4% 0,1%
CONTROL BLOCK FREE FLOAT
Member of BM&FBOVESPA Novo Mercado
100% Tag Along
Dividend policy: minimum of 30% of Adjusted Net Income
Joined Abrasca’s Public Companies Self regulation and Good Practices code
2
History
Anos 50 e 60
Anos 70 Anos 80 Anos 90 2000-
2008 2009
2010-
2012 2013 2014 2015
1970: Start of
activities in
Taquari (RS)
1975: Start of
activities in
Uberaba (MG)
1992: Acquired by
Ligna
1997: Expansion
of Uberaba
1998: Acquisition
of 51.000ha of
forest
2004: Expansion
of Uberaba
2007: IPO
Novo Mercado
2008: New MDF
plant in Uberaba
Expansion of
Taquari
1951: Duratex
was stablished
already as a
publicly traded
company
1954: Start of
hardboard
production in
Jundiaí, SP
1972:
Incorporation of
Deca.
Acquisitions:
- Caxuana
- Additional
participation in
Tablemac
- Closing of
Jundiai II plant
Duratex 2020
strategic planning
Joint venture
with Usina Caete
in Northeast
1981:
Acquisition of
Louças Sul,
São Leopoldo
(RS)
1984:
Acquisition of
Itapetininga,
(SP) unit
1988:
Acquisition of
Agudos (SP)
unit
1995: Acquisition
of Argentina
Piazza Hermanos,
which was
renamed
Deca Piazza
(discontinued in
2013)
1997: First
MDF (Medium
Density
Fiberboard) plant
in Brazil, Agudos
New plants
(CAPEX):
• MDF Botucatu
• MDP Itapet.
• MDF2 Agudos
Closing of Jundiaí
Acquisitions:
• Ideal Standard
•CMC
Association
with Satipel
creating the
largest
producer of
wood panel in
the Southern
Hemisphere
Novo
Mercado
Start up of a resn
plant
Beginning of the
investment
programa: DECA
and Wood
Acquisitions:
• land in SP
• Elizabeth
• Tablemac
• Thermosystem
• Mipel
Completion of
investment
cycle started in
2011
Definition of a
strategic growth
plan until 2017
Acquisition of
Ducha Corona
3
Members do not take up Executive positions in the Company
5 Committees advise the Board in the management and decision
making process
Corporate Governance
Itausa representatives
Ligna representatives
3 independent members
Composition of the Board Independent Members
Committees: Personnel, Governance and Nomination;
Sustainability; Audit and Risk Management; Disclosure and
Negotiation; Related Parties
ALVARO DE SOUZA (since April 2011) - President of Brazilian Fund for Diversity (FUNBIO)
-Member of the Board of WWF International Board of
Trustees and WWW-Brasil
- Member of the Board of Banco Santander
- Member of the Board of AMBEV
FRANCISCO AMAURI OLSEN (since April 2013) - Vice President of the Board ofMartins Com. e
Serviços de Distribuição S.A.
- Member of the Board of Grupo Rotoplas
- Member of Integration Board of Banco Triangulo
RAUL CALFAT (since April 2014) - Member of the Board of Fibria Celulose S.A.
- President of the Board of Votorantim Participações
S.A.
- Member of the Board of Hospital Sírio Libanês
Related Parties Committee is composed only by independent
members
4
Wood Division- Geographic Distribution
AGUDOS (SP)
2 lines of MDF, laminated floor
and resin plant (DRI)
BOTUCATU(SP)
MDF and Hardboard
ITAPETININGA (SP)
MDP and MDF TAQUARI (RS)
MDP
UBERABA (MG)
MDP and MDF
Operations in Colombia- Tablemac
MANIZALES – MDP
YARUMAL – MDP
BARBOSA – MDF
GUARNE - Móveis
5
Wood Division- Products
M
A
I
N
P
R
O
D
U
C
T
S
MDF MDP Laminated Flooring Hardboard
M
A
I
N
D
I
S
T
R
I
B
U
T
I
O
N
C
H
A
N
N
E
L
S
Furniture Industry Resales Civil Construction and Exports 6
Wood Division - Highlights
Casa Claudia Partnership – “Marcas do Tempo” Colection MDF Fire – exclusive launch
Partnership creating an exclusive line of products for Laminated
Flooring
Casa Claudia is the leader magazine in the decoration segment
Duratex is the first company to have a partnership with Casa Claudia
MDF panel with innovative technology that avoids and slows flame
spread
Ideal for theaters and movie theaters, concert halls, schools and
universities, hotels and shopping malls, commercial buildings
It can be applied to wall coatings, ceilings and flooring, in addition to
furniture
Valued and approved in tests conducted with carpenters and furniture
industry
Ecological panel certified by FSC
7
Wood Division- Operation Highlights
High Level of Operation Integration
Forest Integration Resin Plant
185k hectares of planted forests
269k hectares of land
15k hectares planted area/year
230 farms in the region of SP, MG and RS
Tree harvested between 6 and 7 years
7,2 million m3 of annual wood production
Low distance between forests and plants
100% self sufficient in São Paulo and 65% in total
Inaugurated in April/2010
Duratex Forest Productivity Evolution (m³/ha/year)
Agudos plant: Resin + MDF + Durafloor
20 years of FSC certification
First forest company from
South America and 10th in
the world to receive this
certification
8
Wood Division- Tablemac
Consistent growth of volume, Margin and revenue
Acquisition process initiated in 2012 and finalized in 2014
Colombian market: half local production and other half imported
Plants in Colombia: Yarumal, Manizales, Guarne e Barbosa
Extension of competitiveness of Tablemac in local market due to currency devaluation
Maximum utilization of installed capacity
9
Wood Division – Panel Exports
Increase of 40% in volume from 2014 to 2015 and expected increase of 50% from 2015 to 2016
Export is one of the pillars of growth of Duratex 2020 strategic plan
Long term strategy to reach minimum of 20% of revenue from exports
Increase of exports decreases dependency of domestic market
Export Revenue Evolution
(in US$ million) Export Volume Evolution (in‘000 m3)
+42,2%
+24,2%
Participation of exports over Brazil
Wood Net Revenue
Focus on the Americas and exports to more than 50 countries 10
JUNDIAÍ (SP)
Metals and Sanitary Ware
JOÃO PESSOA (PB)
Sanitary Ware
CABO DE STO AGOSTINHO (PE)
Sanitary Ware
Deca Division - Geographic Distribution
SÃO LEOPOLDO (RS)
Sanitary Ware
SÃO PAULO (SP)
Metals
QUEIMADOS (RJ)
Sanitary Ware
ARACAJU (SE)
Electronic Showers
TUBARÃO (SC)
Electronic Showers
JACAREI (SP)
Bronze Industrial valves
11
Deca Division - Products
Metals Sanitary Ware Accessories Electronic Showers
Home Centers Resales Construction Companies
M
A
I
N
P
R
O
D
U
C
T
S
M
A
I
N
D
I
S
T
R
I
B
U
T
I
O
N
C
H
A
N
N
E
L
S
12
Deca Division - Highlights
Water Saving Products Sales volume evolution (in ‘000 itens)
Water saving with design and without losing
functionality and confort
Over 350 water saving solutions
Aerators technology:
Even with a lower flow
the sensation of a high
volume shower
Eco Technology faucets::
with automatic closing in
10 seconds.But keeps the
manual control option
Hydra Duo technology flush:
with two options of
activation
Aerator for faucets:
mixes air and water producing
a pleasant jet and reducing
the quantity of water
Restrictor for faucets
And showers: reduces
the water flow.
+23%
UP
13
Deca Division – Electronic Showers
Market Share
Others
Brazilian market estimated in 22,5 million units
Market CAGR of 3% per year
Most used heating water option in households
Seasonality: sales concentrated in winter months
Volume concentration in South and Southeast
regions
Export possibility
Source: Duratex estimates
*Includes Corona
*
Sustainability Platform
DIALOGUE AND
RELATIONSHIP
ENVIRONMENTAL MANAGEMENT
AND PERFORMANCE BUSINESS TRANSPARENCY AND
RESPONSABILITY
Develops the dialogue culture,
structures social management
and improves the relationship
with internal and external
audiences
PEOPLE
Employees
Leadership
High Management
RELATIONSHIP
QUALITY
Suppliers
Clients
Communities
Specialists
Efficient use of
resources and energy
Residues and
emissions
management
Conservation and
Biodiversity
Quality and
impact of
products
Inclusion of social
and environmental
criteria to manage
and report
Creates an strategic vision of
environmental management
through revision, innovation
and development of new
processes and procedures
Elaborates integrated social
and environmental criteria to its
management, applying them as
tools to identify risks to
business and opportunities to
aggregate value to products,
turning more transparent the
accountability process
15
Sustainability – Dialogue and Relationship
Programa Escola Formare – 2015
It is a program that offers courses in Professional Education in basic level to low income young people, aged 16 to 18. Built by
Universidade Tecnológica Federal do Paraná (UTFPR) the courses are custom-made to the Company and includes theoretical and
practical classes, that are taught by volunteer educators (employees).
› Implementation of three new schools:
› Botucatu (SP) – course of Reconstituted Wood Production Assistant
› João Pessoa (PB) – course of Quality Processes Assistant
› Itapetininga (SP) - course of Industrial and Administrative Processes Assistant
› Two existing schools (course of Industrial and Administrative Services Assistant):
› Uberaba (MG)
› Taquari (RS)
TOTAL BENEFICIARIES: 100 young people per year
Social Investment Strategy
16
Sustainability- Business Transparency and Responsability
Pre and Post “deal” Policies
Approval of policy and procedures that define sustainability criteria and
guide negociations related to the Company’s new businesses
(expansion, mergers and acquisitions) and promote adequacy of its
values, policies, practices and procedure of Duratex, allowing continuous
improvement of current and future businesses of the Company.
18
Operating Highlights from the Quarter
Increase of 11,9% in volume shipped compared to the 2nd quarter 2015
Increase of 3,9% in volume compared to the 2nd quarter 2015 excluding the effect of Corona
Increase of 72% in export volume compared to the 3rd quarter of 2014
Recurring and Adjusted EBITDA Margin of 21,8%
Wood
Deca
Exports
EBITDA
Margin
20
Financial Highlights Consolidated
Consolidated Net Revenue (R$ million)
% Foreign Market over Total Net Revenue
*Until September 2015 21
(in R$ million) - Brazil 3T15 2T15 Var % 3T14 Var % 9M15 9M14 Var %
Deca Volume (in '000 items) 6.981 6.065 15,1% 6.917 0,9% 19.738 20.650 -4,4%
Wood Volume (in m3) 561.292 501.997 11,8% 709.444 -20,9% 1.716.416 1.901.575 -9,7%
Recurrent EBITDA 200,5 191,2 4,9% 223,8 -10,4% 590,9 650,2 -9,1%
Recurrent EBITDA Margin 21,1% 21,7% - 22,6% - 21,4% 23,5% -
Recurrent Net Profit 25,8 29,1 -11,3% 76,5 -66,3% 116,4 256,4 -54,6%
Recurrent ROE 2,2% 2,5% - 6,9% - 5,1% 11,6% -
Colombia 3T15 2T15 Var % 3T14 Var % 9M15 9M14 Var %
Wood Volume (in m3) 68.012 60.266 12,9% 54.282 25,3% 186.060 141.769 31,2%
Recurrent EBITDA 26,3 19,0 38,2% 13,5 95% 60,5 34,7 74,1%
Recurrent EBITDA Margin 28,1% 22,8% - 18,2% - 24,2% 19,9% -
Recurrent Net Profit 13,0 9,3 39,2% 7,0 85,1% 29,3 16,9 72,8%
Consolidated 3T15 2T15 Var % 3T14 Var % 9M15 9M14 Var %
Deca Volume (in '000 items) 6.981 6.06515,1%
6.9170,9%
19.738 20.650-4,4%
Wood Volume (in m3) 629.304 562.263 11,9% 763.726 -17,6% 1.902.476 2.043.344 -6,9%
Recurrent EBITDA 226,8 210,2 7,9% 237,3 -4,4% 651,4 684,9 -4,9%
Recurrent EBITDA Margin 21,8% 21,8% - 22,4% - 21,7% 23,3% -
Recurrent Net Profit 38,8 38,4 0,9% 83,5 -53,6% 145,6 273,3 -46,7%
Recurrent ROE 3,3% 3,3% - 7,3% - 4,1% 8,1% -
Financial Highlights Consolidated
* Includes 679k items from Corona
* *
22
Wood Division – Panel Market in Brazil
MDF Market MDP Market
+3,4%
-4,7%
-4,0%
-13,6%
-8,1%
-13,9%
-5,6%
-26,4%
Annual Effective Capacity: 5.170
in ‘000 m3
Annual Effective Capacity: 4.030
Source: IBA 23
Operational Highlights Wood
+11,9%
-17,6%
-6,9%
Shipments (in ‘000 itens) Installed Capacity and Occupancy Rate
in the quarter
24
Operational Highlights
Net Revenue (R$ million) and Gross Margin (%) Recurring EBITDA (R$ million) e EBITDA Margin (%)
Wood
+7,9%
30,8% 26,3% 24,2% 27,3% 30,4%
-3,9%
+3,3% +12,4%
25,7% 23,2% 22,7% 23,6% 25,0%
-9,0%
-6,9%
25
Deca Division – Building Material Industry
ABRAMAT INDEX – INTERNAL MARKET
Source: Brazilian Building Material Industry Association
Measures growth in revenue of building materials in the internal market, relative performance to the same period
in the previous year.
26
Operational Highlights Deca
+15,1%
+0,9%
-4,4%
Shipments (in ‘000 itens) Installed Capacity and Occupancy Rate
in the quarter
* Inclui 679 mil peças da Corona
*
*
27
Operational Highlights
Net Revenue (R$ million) and Gross Margin (%) Recurring EBITDA (R$ million) e EBITDA Margin (%)
Deca
+7,9%
34,5% 32,3% 32,7% 31,6% 32,6%
+3,3%
= -1,7%
18,7% 19,1% 20,0% 19,2% 17,3%
+8,9%
+0,2%
• EBITDA Mg with Corona 3Q15: 18,3%
EBITDA Mg with Corona 9M15: 18,8%
* *
Consolidated CAPEX and Main Investments In R$ million
Main Projects in 2015
Ducha Corona Acquisition 556,2
607,9 601,5
832,2
635,8
3.234
CAETEX: R$ 10 MM Investment/year
Foreign investments: R$ 28,2MM
29
Strategic Positioning +105,9%
+104,7%
Priorities: 2007 to 2014
Increase of capacity through expansion and acquisition
Integration Duratex and Satipel
Acquisition of 6 companies in this period with integration of the
acquired companies
Geographical and product diversification
Corporate Governance Consolidation
Increase of Market Share
Customer Service
Capacity Evolution
Internal Agenda
CAPEX prioritized in sustaining and productivity
Expansion in adjacent sectors of civil construction (M&A)
Increase occupancy of plants
Corona integration: capture synergy Hydra/Corona
- Improvement in logistic
- Duratex Management System
- Zero Based Budget
- Improvement in Working Capital
Our focus in 2015
Significant increase in exports
31