apresentação 2 q12 inglês
TRANSCRIPT
Corporate Presentation | 2Q12
2 2
“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.”
Disclaimer
3 3
• Recognitions: the Eternit’s Governance is awarded again
IR Magazine Award – best program for individuals investors
APIMEC 2012 Award
• Reduction of sales volume:
Chrysotile Mineral: 6.6%
Fiber Cement: 15.0%
Concrete Tiles: 7.8%
• Net Consolidated Revenue amounted to R$ 211.0 million, a 5.0% improvement
• EBTIDA was R$ 39.3 million, a growth of 24.4%
• Net Income was R$ 27.0 million, a growth of 28.7%
• Margins:
Gross margin of 44% - (+ 6 p.p.)
EBITDA margin of 19% - (+3 p.p.)
Net margin 13% - (+ 3 p.p.)
Highlights of 2Q12 (when compared to 2Q11)
4 4
Eternit Group
Activity
Manufacture of fiber cement and commercialization of bathroom chinaware and metallic fittings
and components for construction systems
Chrysotile Mining
Manufacture of concrete tiles
and commercialization of sanitary
ware
Industrial Units
4 1 1 6
Market Share
Leader in fiber cement – 32% of Market Share The world's 3rd
largest – 15% of Market Share
Leader in concrete tiles –35% of Market
Share5th largest of Brazil in sanitary
wares
Capacity 1 million tons / fiber cement300 thousand
tons10 million m²
Capacity Used Fiber cement - 80% 100% Around 60%
The largest and most diversified roof coverings industry in Brazil - 2012
5 5
1) Anápolis/GO; 2) Colombo/PR; 3) Goiânia/GO; 4) Rio de Janeiro/RJ; 5) Simões Filho/BA and 6) São Paulo/SP.
Plants Location – Fiber cement and Crhysotile Mining
Commercial Branches
6 6
Showroom Location
Come visit usRebouças Avenue, 2175 – São Paulo / SP
7 7
Plants Location – Concrete tiles
8 8
Diversified Portfolio – Chrysotile Mineral
Main use of the crhysotile
mineral
99% of the world production of
chrysotile is used for fiber cement
products:
• Tiles;
• Covering plates;
• Wall panels;
• Water pipes and water tanks;
and
• Etc.
9 9
Diversified Portfolio – Fiber Cement Tiles
10 10
Diversified Portfolio – Metallic Fittings
11 11
Diversified Portfolio - Components for constructions systems
12 12
Diversified Portfolio – Water tanks and filters
13 13
Diversified Portfolio – Bathroom chinaware and lavatory seats
14 14
Diversified Portfolio – Metal Fittings
15 15
Diversified Portfolio – Synthetic Marble
16 16
Diversified Portfolio – Concrete Tiles
17 17
Diversified Portfolio – Full Roofing Solutions
SAMA - Overview
19 19
Global Market – Chrysotile Mineral - 2011
Global Consumption (MM of Ton)Global Consumption (MM of Ton)
Canada 4%
Russia – 50%
Kazakhstan – 11%
China – 20%
Brazil 15%
20112011
2.22.2
20082008
2.42.4
20072007
2.42.4
20062006
2.32.3
20052005
2.32.3
20042004
2.12.1
20092009
2.12.1
20102010
2.22.2
20 20
1H10 1H11 1H12 2Q10 2Q11 2Q12
67.3 63.5 70.834.1 37.4 36.0
77.6 84.7 76.3
40.4 42.0 38.2
144.9 148.2 147.1
74.5 79.4 74.2
Sales of Chrysotile Mineral (thous. tons)
Domestic Market Foreign Market
- 6.6%- 6.6%6,6 %6,6 %
- 0.8 %- 0.8 %2,3 %2,3 %
2Q12 x 2Q11
• Domestic Market – reduction of 9.0%
• Foreign Market– reduction of 4.0%
2Q12 x 2Q11
• Domestic Market – reduction of 9.0%
• Foreign Market– reduction of 4.0%
1H12 x 1H11
• Domestic Market – reduction of 9.9%
• Foreign Market – increase of 11.5%
1H12 x 1H11
• Domestic Market – reduction of 9.9%
• Foreign Market – increase of 11.5%
Eternit and Tégula - Overview
22 22
Residential Market Industrial and Commercial Market
Total Market Market Evolution (MM m2)
Metallic12%
Ceramics35%
Fiber cement47%
Other
2%
Fiber cement38%
Metallic40%
Other11%
Ceramics11%
Concrete4%
Ceramics45%
Fiber cement
51%
Concrete
4%
Covering market – Brazil - 2011
2005 2006 2007 2008 2009 2010 2011
406 425459
505 495534
5618%
5%
10% -2% 8%
Source: Estimation of the Production Chain of Fiber Cement
5%
23 23
Structure of the Industrial Park in 2011
Brazilian Fiber Cement
MarketETERNIT
Installed Capacity (tons / year)
Approximately 2,820,000 1,000,000
Capacity utilization Around 86% Around 85%
Consumption (ton / year) 2,434,000 859,300
Companies 11 32% Market Share
Plants 19 5
Selling Points 39,000 15,000
24 24
Structure of the Industrial Park in 2011
Brazilian concrete roofing market TÉGULA
Installed Capacity (m² / year)
Approximately 24.0 million 8.0 million
Capacity utilization Around 70% Around 70%
Consumption (m² / year) 16.9 million 5.9 million
Companies130
35% Market Share
Plants 6
25 25
Sales of Fiber Cement* (thous. tons)
* Includes components for construction systems* Includes components for construction systems
- 11.3 %- 11.3 % 6.0 % 6.0 %
- 15.0 %- 15.0 %15.7 %15.7 %
1H10 1H11 1H12 2Q10 2Q11 2Q12
389.5 412.9366.3
181.7 210.2 178.7
26 26
Concrete Tiles (thous. square meters)
*Tégula was acquired on February 11 2010. The amount of 477 thousand m2 doesn’t refer to Eternit.*Tégula was acquired on February 11 2010. The amount of 477 thousand m2 doesn’t refer to Eternit.
18.5 %18.5 %
14.8 % 14.8 % -7.8 % -7.8 %
-1.9 % -1.9 %
1H10* 1H11 1H12 2Q10 2Q11 2Q12
477
1,887
2,3642,801 2,773
1,3001,493 1,376
Economic and Financial Performance
28 28
Consolidated Net Revenue (R$ million)
Domestic Market Foreign Market
13.2 % 13.2 % 5.0 % 5.0 %
11.2 %11.2 % 8.8 % 8.8 %
1H10 1H11 1H12 2Q10 2Q11 2Q12
54.2 44.4 73.8 27.0 25.3 39.8
294.1 342.9347.4
150.6 175.7 171.2
348.3387.3
421.2
177.6 201.0 211.0
29 29
Net Revenue Breakdown
(*) Other: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings, water pipe filters, synthetic marble and components for construction systems.(*) Other: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings, water pipe filters, synthetic marble and components for construction systems.
2007 1H12
Chrysotile Mineral32.3%
Fiber cement50.0%
Concrete tiles and Accessories
10.3%
Bathroom Chinaware
4.8%
Others (*)2.6%
New Business17.7%
30 30
COGS Breakdown – 2Q12
(*) - Cement (46%), Chrysotile Ore (43%) and other (11%)
(*) - Cement (46%), Chrysotile Ore (43%) and other (11%)
(***) - Cement (56%), sand (32%) and other (12%)(***) - Cement (56%), sand (32%) and other (12%)
(**) – Fuel, explosives, packaging, among other(**) – Fuel, explosives, packaging, among other
Fiber Cement Chrysotile Mineral
Concrete Tiles
Raw material (*) 63%
Workforce10%
Depreciation4%
Others costs20%
Energy3%
Materials (**) 28%
Workforce49%
Depreciation5%
Others costs10%
Energy8%
Raw material (***)48%
Workforce17%Depreciation
11%
Others costs20%
Energy4%
31 31
EBITDA (in R$ million)
-13.1 % -13.1 % 24.4 % 24.4 %
-19.6 % -19.6 % 47.5 % 47.5 %
1H10 1H11 1H12 2Q10 2Q11 2Q12
72.0
57.9
85.5
36.3 31.539.3
32 32
Net Income (in R$ million)
- 20.4 % - 20.4 % 50.5 %50.5 %
- 13.7 %- 13.7 % 28.7 % 28.7 %
1H10 1H11 1H12 2Q10 2Q11 2Q12
47.5
37.8
56.9
24.321.0
27.0
33 33
Margins
Net MarginEBITDA MarginGross Margin
45%
38%
44%46%
38%
44%
21%
15%
20% 20%
16%19%
14%
10%
14% 14%
10%13%
1H10 1H11 1H12 2Q10 2Q11 2Q12
Capital Expenditures
35 35
1S10 1S11 1S12 2T10 2T11 2T12
2112 11 13
6 6
4
34
3
4
52
210
10
59
19 21 17
11 16
Investiments
Acquisition Tégula
Capacity Increase – Eternit
Molds and New Business
Capital Expenditures (in R$ million)
Equipment and Trucks - SAMA
Land acquisition – Ceará State
Capacity Increase – Tégula
36 36
Development unit of Synthetic Marble
Production LineResin SiloSynthetic Marble
Products
37 37
Location of Multiproduct Plant - Ceará State
Land of 400 000 m²
35 km15 km
Linha Gás Natural
Cimenteira
38 38
Share of 40%
Knowledge of manufacturing and products technology
Low cost production
Expertise in new product development
Expertise in new market development
Share of 60%
Knowledge of the local market
Strong distribution network
Efficient logistics
Brand strength
Investment Resources
Knowledge in Brazil
Investments: R$ 97 million
Capacity: 1,500,000 pieces per year
Status of the building: initiated
End building: December 2012
Forecast of Gross Revenue at full capacity: approximately R$ 127 million
Straight Workforce: 330 employees
Multi-Product Unit in the Ceará State - Bathroom Chinaware Plant
Joint-Venture: Companhia Sulamericana de Cerâmica S. A.
39 39
Artistic view and lay out of the Bathroom Chinaware Plant
Capital Markets
41 41
Clubs. Funds and Foundations
Ownership Structure – Jul/12
Shareholding Structure
Geração L. Par. F. I. A. 15.27%
Luiz Barsi Filho 13.47%
Victor Adler + VIC DTVM 6.70%
Management 1.59%
Treasurystock 0.03%
FREE-FLOAT 76.10%
Individual Investors
Corporations Investors Abroad
Advisory BoardMember
Since
Guilherme Affonso Ferreira 2011Mário Fleck 2011Victor Adler 2012
Board of DirectorsMember
Since
Sérgio Alexandre Melleiro (*) 1993Lírio Albino Parisotto (*) 2004
Élio A. Martins 2007Luiz Barsi Filho 2008
Marcelo Munhoz Auricchio 2011Luis Terepins (*) 2011
Benedito Carlos Dias da Silva (*)
2012(*) Independent member
59.8%
2.2%
10.50%
27.5%
42 42
(*) Until July 2012
Liquidity
Number of shareholders
Average Traded Volume (R$ thousand)
2009 2010 2011 2012(*)
6,6155,910
6,633 6,627
2009 2010 2011 2012(*)
1,108975
794
1,482
43 43
2009 2010 2011 2012
73
102 97
57*55
81 72
54**
Policy of Remuneration - Net Income X Distributed Earnings
In R$ million
76 %76 % 79 %79 % 74% 74%Pay OutPay Out 95% 95%
Net Income Dividends and Interest on own capital (*) Until June 2012 / (**) Until August 2012
44 44
Policy of Remuneration - Dividend Yield
(*) Unitl June 2012
Source: Eternit e BACEN Savings (**)Eternit – Yield(*) CDB (**)
2009 2010 2011 2012
15.1%
9.3%
7.5%6.7%6.9% 6.9%
7.5%
1.7%
9.1%8.8%
10.9%
2.3%
45 45
Eternit’s Shares Performance (Dec/06 – Jul/12)
Between 12/28/2006 to 7/31/2012, Eternit’s shares appreciated 79.0% and IBOVESPA appreciated 26.1%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s shares appreciated 211.5%.
56,097
R$ 10.85
40
60
80
100
120
140
160
180
200
220
Dec-0
6
Feb-0
7
Apr-07
Jun-0
7
Aug-07
Oct-0
7
Dec-0
7
Feb-0
8
Apr-08
Jun-0
8
Aug-08
Oct-0
8
Dec-0
8
Feb-0
9
Apr-09
Jun-0
9
Aug-09
Oct-0
9
Dec-0
9
Feb-1
0
Apr-10
Jun-1
0
Aug-10
Oct-1
0
Dec-1
0
Feb-1
1
Apr-11
Jun-1
1
Aug-11
Oct-1
1
Dec-1
1
Feb-1
2
Apr-12
ETER3
IBOVESPA
Outlook
47 47
Favorable Moment for Civil Construction
48 48
Economic Figures
Minimum Wage (R$) Workforce (R$ million)
Food Basic Basket SP x Minimum Wage (purchasing power)
%Minimum Wage (R$) Food Basic Basket in SP (R$)
Sou
rce:
IBG
E a
nd
DIE
ES
ES
ou
rce:
BA
CEN
CAGR: 11.0% CAGR: 5.96%
49 49
Sou
rce:
BA
CEN
Sou
rce:
IBG
E
Credit Availability Unemployment Rate - BrazilGovernment, Industry, Housing, Rural, Commerce,
Credit Individuals (R$ billlion)
Economic Figures
Growth of the Brazilian Savings
R$ billlion (%) Chg YoY
Sou
rce:
BA
CEN
- S
BP
E
Residences - Perception of Demand
51
Residences – Perception of Demand
Source: ANAMACO (National Association of Construction MaterialTraders) / Study by João Pinheiro Foundation, official estate of statistics of Minas Gerais
/ ABECIP (Brazilian Association of Real Estate and Savings Entities) – 2nd ABECIP Seminar – Real Estate Panorama: Opportunities and Challenges.
• The FGV studies show that between 2010 e 2022, the number of homes will grow in Brazil by na average of 1.9 million/year;• The FGV studies show that between 2010 e 2022, the number of homes will grow in Brazil by na average of 1.9 million/year;
NeedNeedSome kind ofSome kind of
renovation or renovation or expansionexpansion
77%77% Permanent Homes in Brazil
44.5 million homesPermanent Homes – 57.8 million
Housing Deficit – 5.5 million
52
In 2008, the estimated housing deficit was 5.5 millions units, the majority concentraded in the C and D classes.In 2008, the estimated housing deficit was 5.5 millions units, the majority concentraded in the C and D classes.
Housing Deficit by Family Income by Minimum Wages
Source: study by the João Pinheiro Foundation, official statistics body for the state of Minas Gerais.
In thousand of Units
Geographic RegionUp to Three
Three toFive
Five toTen
More thanTen
RegionalHousing
Deficit
North 492 43 17 3 555
Northeast 1,861 55 23 8 1,947
Southeast 1,791 178 65 12 2,406
South 484 66 26 4 581
Midwest 375 22 14 6 417
TotalApproximateHousingDeficit
5,003 364 146 33 5,546
53
Indicators
Brazilian GDP x Civil Construction GDP x Eternit Gross Consolidated Revenue Home Mortgage Credit as % of GDP
• In Brazil, the home mortgage credit reached 4.7% of GDP in 2011 and it should reach 11% in 2014.
Source: ABECIP (Brazilian Association of Real Estate and Savings Entities ) – 2nd ABECIP Seminar – Real Estate Panorama: Opportunities and Challenges. Source: ABECIP (Brazilian Association of Real Estate and Savings Entities ) – 2nd ABECIP Seminar – Real Estate Panorama: Opportunities and Challenges.
(E) Estimated
Source: BACEN. The growth of the Eternit gross consolidated revenue was deflated by IGP-M.
Source: ABECIP, BACEN and FEBRABAN (Brazilian Banks Federation).
2007 2008 2009 2010 2011 2012(E)
5.0 8.2
(6.3)
11.6
3.6 4.0 5.4 5.1
(0.2)
7.5 2.7 2.5
8.6
37.1
16.8 18.3 15.7
7.9
GDP Construction (%) GDP Brazil (%) Eternit (%)
54
Reduction in the interest rates for the finance of construction materials
To stimulate the sales of construction materials, the Caixa Econômica Federal (the Federal Savings Bank - CEF) announced in July 2012:
• reduction in the interest rates for the line of finance for the acquisition of construction materials – Construcard;
• extension of repayment conditions from 60 to 96 months; and
• R$ 5 billion of funds to be made available for this year, with no set maximum limit on financing – this will be dependent on each client’s monthly repayment capacity.
Construcard can be used to: the purchase of construction materials in general, acquisition of fitted furniture and solar heating systems.
Currently there are more than 65 thousand sales outlets in Brazil with commercial agreements enabling to operate this line.
To stimulate the sales of construction materials, the Caixa Econômica Federal (the Federal Savings Bank - CEF) announced in July 2012:
• reduction in the interest rates for the line of finance for the acquisition of construction materials – Construcard;
• extension of repayment conditions from 60 to 96 months; and
• R$ 5 billion of funds to be made available for this year, with no set maximum limit on financing – this will be dependent on each client’s monthly repayment capacity.
Construcard can be used to: the purchase of construction materials in general, acquisition of fitted furniture and solar heating systems.
Currently there are more than 65 thousand sales outlets in Brazil with commercial agreements enabling to operate this line.
Source: Caixa Econômica Federal – www..caixa.gov.br
55
Expansion and Maintenance of Residential
Units
(in thousands of units)
Residences – Management Model
New Residential Edifices
(in thousands of units)
Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO – Data for sector 2010Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO – Data for sector 2010
56
With home building – who decides the
purchase?
Consumer Profile
Where do they make their purchases? With home maintenance – who decides the
purchse?
Source: ANAMACO (National Association of Construction Material Trades)- Adapted from Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007Source: ANAMACO (National Association of Construction Material Trades)- Adapted from Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007
Self-management/ Self-
construction34%
Construtora/Empreiteira
1%
Bricklayer/ Works Foreman/ Engineer
65%
Self-management/ Self-
construction27%
Builder/Contractor
2%
Bricklayer/ Works Foreman/Engineer
71%
57
Consumer Profile
Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007
Responsible for the Indication and Recomendation of
Brand
Chrysotile – The Brazilian Mineral
59 59
Chrysotile – The Brazilian Ore
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
White Ore
Bends and silky fibers without tip
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.
High Concentration of Magnesium:3MgOSiO2H2O
60 60
Brazil concludes important research about chrysotile ore risks
Project Asbesto Ambiental“Ambiental Exposition to Asbesto: Evaluation of Risk and Effects in
Health”Process CNPq n. 420001/2006-9
The results of the research were announced on November 25 2010 and demonstrates that:
Among the householders surveyed, no clinical, respiratory functional and high resolution tomographic alterations were found that could be attributed to atmospheric asbestos fiber inhalation.
In the occupational assessment, no new alterations were identified or progression in pleural and interstitial deterioration of individuals in the sample Group exposed after 1980 and who underwent High Resolution Computed Tomography scans in the two studies.
The full version of this research can be found in www.sectec.go.gov.br.
61 61
Public Hearing
In the light of a request made by the National Confederation of Workers in Industry – CNTI, the Federal Supreme Court – STF has arranged a public hearing between August 24 and 31, 2012 to debate the use of asbestos.
With the request from the CNTI is seeking to involve society on the issue of asbestos in the light of its importance to Brazil. Representatives of government bodies, medical doctors and scientists of various nationalities, technicians and sector employees will take part in the hearing.
Subsequently, the Minister-rapporteur, Marco Aurélio de Mello, will have the necessary time to decide his vote, after which the Direct Actions of Unconstitutionality - ADIs (4066 and 3937) can by submitted for judgment on merit by a plenary session of the court before the end of the year.
Greater details can be found by acessing www.stf.jus.br (in Portuguese)
Corporate and Environmental Management
63 63
Corporate Management
Launch ...................
November 2004
Purpose .................
Contribute to society’s better understanding of the mining and processing of Chrysotile Ore and the manufacture of fiber cement products in a sustainable manner.
Location ...........Five production plants of Eternit and the SAMA mining company
Visitors ............... 53,000 until Jun 2012
Target ...................
All society
Open Doors Program
64 64
Environment Focused Management
Quelônios Project - Animal Conservation Area
The only breeding program of Amazon turtles in Brazil and Reintegration of Wild Animal Nature in partnership with IBAMA
Zero Reject Monitoring Air Quality
Water Reuse Reforestation Work
Seedling Nursery
65
Social Actions
66
IR Magazine Brazil Awards 2012: For the second consecutive year, IR Magazine awarded Eternit’s Individual Investor Relations Program as the best of Brazil in the small & mid-cap category (companies with sales of less than R$ 3 billion).
APIMEC 2012 Award: APIMEC – Association of Capital Markets Analysts and Investment Professionals – national chapter, awarded the APIMEC Prize 2012 to Eternit in the B category, companies with consolidated revenue of up to R$ 3 billion.
Great Place To Work: In May 2012, SAMA and Precon Goiás were elected “The Best Companies to work for in the Center-West”. SAMA came 3rd in the ranking and Precon Goiás, 6th.
Recognitions - 2012
67 67
Eternit – An option for investment
ADR - Level IADR - Level I
ETNTYETNTY
Governance
Growthwith
Dividends
Vision ofFuture
Case ofSuccess
BrandBrandBrand
68 68
Information
Este material foi produzido com papeis certificados FSC (Forest Stewardship Council), que é uma garantia de que a matéria-prima advém de uma floresta manejada de forma ecologicamente correta, socialmente e economicamente viável.
Este material foi produzido com papeis certificados FSC (Forest Stewardship Council), que é uma garantia de que a matéria-prima advém de uma floresta manejada de forma ecologicamente correta, socialmente e economicamente viável.
www.blogdaeternit.com.br
www.eternit.com.br/ir
Élio A. [email protected]
Paula Dell Agnolo [email protected]
Frederico Gomes [email protected]
Rodrigo Lopes da [email protected]
Phone: (55-11) 3038-3818
(55-11) 3194-3881
(55-11) 3194-3872 @Eternit_RI
Dr. Fernandes Coelho Street, 85 – 8th floor
Pinheiros – São Paulo / SP
05423-040
69 69
Eternit starts a new cycle
Welcome to the next
70 years