Embed Size (px)
Citation preview
1
Results Presentation | 3Q10Conference Call – 11/10/2010
2
Disclaimer
“Forward looking statements included in this presentation regarding the
Company’s business, operating and financial results and Company’s growth
are only predictions and were based on management's expectations
regarding future performance. These expectations are highly dependent on
market conditions, Brazilian economic scenario, industry performance and
international markets, and are therefore subject to change”
Corporate Profile
4
Supply Chain
5
Other Segments
6
Plants Location – Fiber cement
Commercial Branches
1) Anápolis/GO; 2) Colombo/PR; 3) Goiânia/GO; 4) Rio de Janeiro/RJ; 5) Simões Filho/BA; 6) Porto Alegre/RS and 7) São Paulo/SP.
7
Plants Location – Concrete tiles
SAMA - Overview
9
Global Market – Chrysotile Ore
* SAMA MINERAÇÃO (Minaçu/GO): Third largest in the world and first with ISO 14,001
Major World Producers – 2009
Russia
China
Brazil* 14%
Kazakhstan
Canada
Zimbabwe
22%
45%
10%
8%
1%
Global Consumption (MM of Ton)
2004
2005
2006
2007
2008
2009 2.1
2.4
2.4
2.3
2.1
2.3
10
Sales of Chrysotile Ore (thous. tons)
213.3 226.2
33,242.2 38.3 33.4 41.5 33.2 34.1 38.5
31.9 30.9 36.636.2
37.2 40.442.8
74.1 69.2 70.077.7
70.4 74.581.3
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Domestic Market Foreign Market
Changes Domestic Market Foreign Market Total
3Q10 / 3Q09 + 16.9% + 15.4% + 16.1%
9M10 / 9M09 + 21.2% - 7.1% + 6.0%
Eternit - Overview
12
Covering market – Brazil (2009)
425459
2005 2006 2007
8%5%
2008
505
10%
2009
495
-2%
406
Residential Market Industrial and Commercial Market
Total Market Market Evolution (MM m2)
Ceramics35%
Metallic9%
Fiber cement49%
Others4%
Concrete3%
Fiber cement39%
Metallic35%
Ceramics14%
Others12%
Others2% Ceramics
43%Fiber cement
52%
Concrete3%
13
GDP and Gross Revenue Comparison
Structure of the Industrial Park in 2009
Installed capacity: Approx. 2,820,000 tons / year
Capacity utilization - around 86%
Consumption: Approx. 2,434,000 tons / year
Companies: 11
Plants: 19
Selling points: 35,000
Brazilian Fiber Cement Market
Installed Capacity: 850,000 tons/year
Capacity utilization - around 86%
Consumption: 731,000 tons/year
Market-share: 30%
Plants: 5
Selling Points: 12,000
ETERNIT
14
Sales of Fiber Cement* (thous. tons)
535.2 594.8
167.2 160.8
207.2195.4
207.8
181.7
205.3
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Changes Total3Q10 / 3Q09 - 0.9%
9M10 / 9M09 + 11.1%
* Includes components for constructions systems
15
Tégula - Overview
16
Tégula Acquisition
• Largest Brazilian company in the concrete roofing business
• Portfolio with more than 33 product lines
• Resale of solar heating equipment
• Market share exceeding 35% in the Brazilian concrete roofing business
• Number of Employees: more than 500
• Installed Capacity: 7.2 million square meters
• Capacity Utilization in 3Q10: around 80% (60% in 1Q10 and 70% in 2Q10)
• Value of acquisition: R$ 39.2 million
• Acquired in 02/11/2010
17
Main Products – Roof coverings
18
Full Roofing Solution
Operating and Financial Aspects
20
Consolidated Net Revenue – 3Q10
Consolidated Net Revenue* Net Revenue Breakdown
35.5%
101.7 100.4121.8 127.9
143.5 150,6
43.1 33.5 25.1 28.5 27.2 27.0
144.8 133.9
146.9156.4
170.7177.6
30.3
199.0
150.6
168.7 Others (**)3.2% Components for
constructions systems3.0%
10.5%
52.9%
Chrysotile Ore30.3%
Fiber cement
Concrete tiles and Accessories
3Q101Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Domestic Market Foreign Market
(**) Others: metallic roofing tiles, polyethylene water tanks, bathroom chinaware fixtures and water pipe filters
(*) in R$ million
21
COGS Breakdown – 3Q10
Fiber Cement Chrysotile Ore
Concrete Tiles1 - Cement (45%), Chrysotile Ore (43%) and others (12%) 2 – Fuel, explosives, packaging, among others
3 - Cement (51%), sand (32%) and others (17%)
Raw material¹66%
Others Costs18%
Energy3%
Depreciation3%
10%Workforce
Raw material²32%
Others Costs11%
Energy7%
Workforce46%
Depreciation4%
Others Costs19%
Energy4%
Raw material³52%
Workforce18%
Depreciation7%
22
EBITDA (in R$ million)
EBITDA
35.729.9 27.8 30.1
35.7 36.3 37.6
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
35.1%
23
Net Income (in R$ million)
Net Income
21.6
17.3 17.0 17.2
23.225.524.3
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
50.2%
24
Margins
45%43%
40% 41%
45% 46% 45%
25%22%
19% 19%21% 20% 19%
15%13% 12% 11%
14% 14%13%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Gross Margin
EBITDA Margin
Net Margin
25
Tégula – 3Q10
Operating and Financial Aspects 3Q10 02/11 a 09/30*
3,341,605
R$ 48,730 thousand
R$ 16,905 thousand
Gross Margin 36% 35%
EBITDA R$ 2,748 thousand R$ 6,741 thousand
Net Income R$ 3,671 thousand R$ 6,025 thousand
14%
12%
Net Operating Revenue R$ 20,933 thousand
Sales - Tiles (in m2) 1,454,166
Gross Profit
EBITDA Margin
R$ 7,534 thousand
13%
Net Margin 18%
* As from February 11 2010, Tégula’s results were consolidated with those of Eternit as a whole
26
CAPEX
CAPEX (R$ million) CAPEX Breakdown (3Q10)*
80
OccupationalSafety and Health
1% Technology3%
Maintainance23%
Quality and
6%
Capacity/ Productivity
62%
Administrative5%
Development
16
34
14
22 16
16
34
14
9M09 9M10
Capacity Increase - ETERNITTégula AcquisitionInvestments * Does not include Tégula acquisition
Molds and New Business
27
New production lines of finished products
Goiânia / GO April 2008
Colombo / PR January 2009
Simões Filho / BA October 2010
Capital Markets
29
Eternit’s Shares Performance (Dec/06 - Oct/10)
Between 12/28/2006 and 10/29/2010, Eternit”s shares appreciated 51.5% and IBOVESPA appreciated 58.9%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s shares appreciated 152.9%.
70,673
R$ 10.25
50
80
110
140
170
200
dec-06 jun-07 dec-07 jun-08 dec-08 jun-09 dec-09 jun-10 oct-10
ETER3
IBOVESPA
30
Liquidity
Shareholders
2,482
7,3177,726
6,6155,717
1,3021,638
2004 2005 2006 2007 2008 2009 2010(*)
(*) Until October 2010
31
Ownership Structure – Oct/10
2%
38%
7%
53%
Individual Investors (5,424 shareholders)
Corporations (78 shareholders)Investors Abroad (64 shareholders)Clubs. Funds and Foundations (151 shareholders)
Shareholding Structure Oct/10 Oct/07
6.89%
5.47%
5.46%
Bahema Participações S. A. - 6.04%
0.97%
0.28%
74.89%
Management 1.50%
Treasury stock 0.03%
Free-Float 59.37%
Geração L. Par. Fund. Invest. em Ações 19.66%
Luiz Barsi Filho 12.74%
Victor Adler 6.70%
32
Liquidity
Average Traded Volume (R$ thousand)
3,708
2006 2007 2008 2009
1,297
2,900
1,108
2010(*)
962716604
2004 2005
(*) Until October 2010
33
Shareholder Remuneration (2004 - Nov/10)
Net Income X Shareholders Remuneration (R$ million)
2007 2008 2009
4440
65
81 73
2010
55
7273
2004 2005 2006
20
38443433 30
Net Income Dividends and Interest on own capital
34
Shareholder Remuneration (2004 - Nov/10)
Dividend Yield
2007 2008 2009
8.6%
12.8%
15.1%
2010
9.3%
2004 2005 2006
13.2%
17.1%16.2%
Outlook
36
Structured Expansion and Diversification Program
INITIATIVES
- Creation of the Development and New Businesses Area
- Inclusion of metallic roofing on its portfolio
- Investment in new product lines of fiber cement
- Investment in machinery for new products on its plants
- Increase in SAMA’s production capacity
- Launches of new products
- Debut into chinaware bathroom fixtures
- Inorganic growth – Acquisitions
OBJECTIVE
Consolidate Eternit as a supplier of products and solutions to the civil construction industry
37
Structured Expansion and Diversification Program
Sales of fiber cement (thousand tons)
431.3
522.5578.3 620.3
CAGR (2004/2009) = 11%
725.3 731.2
650.0 650.0 650.0 650.0730.0
850.0
2004 2005
Installed CapacitySales
2006 2007 2008 2009
38
Structured Expansion and Diversification Program
Sales of Chrysotile Ore (Thousand tons)
CAGR (2004/2009) = 3%
270.0 270.0 270.0 270.0248.8 231.3 221.6
272.6295.0
300.0303.8 290.1
2004 2005 2006 2007 2008 2009
Installed CapacitySales
39
Launches
Chinaware bathroom fixtures
Components for construction systems and
filters for water pipes
Colored fiber cement roofing tiles
40
Chrysotile – The Brazilian Ore
41
Chrysotile – The Brazilian Ore
White Ore
Bends and silky fibers without tip
High Concentration of Magnesium:3MgOSiO2H2O
Biopersistence*: 2.5 days
*Biopersistence: Time that a inhaled particle remains in the lungs before being eliminated by the body’s defense mechanisms. To cause lung damage, the fiber must have penetration and durability capacities in the alveoli.
The use of Chrysotile Ore in Brazil is regulated by the Federal Law 9.055/95, by Decree 2.350/97 and by regulatory standards for occupational health and safety. It is also provided in the Convention 162 of the International Labor Organization (OIT).
Serpentinite rock with Chrysotile Ore fibers
42
Awards
43
Awards – 3Q10
ETERNIT – Anamaco award Dispersion 1st place, Anamacoaward 2nd place in terms of large clients and Anamacoaward Dispersion Mension Honor in polyethylene water tankscategory
ETERNIT – Mension Honor for Excellence in Investor Relations
ETERNIT – Trophy Goddess of Fortune - Merit AwardShopkeeper
ETERNIT – Second time ABRASCA Award for best Annual Report in Category 2 - Net income under $ 1 billion
44
Awards – 3Q10
SAMA – 44th ranking in “100 Best Companies to Work for in Brazil” –Great Place to Work
SAMA – 2nd Best Mining Company in BrazilBiggest and Best/ Revista EXAME
SAMA – 5th Best Company in Brazil (overall ranking). 1st place in Medium Companies category between 501 and 1500 employeesVocê SA/Exame – 150 Best Companies for you to Work
SAMA – 1st place in Brazilian Environmental Benchmarking (Environmental Protection)
45
Information
Gilberto [email protected]
Élio A. [email protected]
Rodrigo Lopes da Luz
Investor Relations
Bárbara M. Tanure Gonçalves
www.eternit.com.br/irPhone: (55-11) 3813-6034
IR ConsultantMarcelo Fonseca
Phone: (55-11) 3897-6857
This material was produced using FSC certified paper (Forest Stewardship Council), which is a guarantee that the raw materialcomes from a forest managed in an environmentally responsible, socially and economically viable.
