December 2019 Duratex: who we are Biggest producer 68 years of - - PowerPoint PPT Presentation
December 2019 Duratex: who we are Biggest producer 68 years of history 12 thousand of wood panels in employees Brazil 7 forestry units 16 manufacturing 3 manufacturing facilities in Brazil facilities in Colombia Leader in the One of the market
December 2019
68 years of history One of the market leaders in the
country’s floor and wall coverings segment
7 forestry units 16 manufacturing
facilities in Brazil
3 manufacturing
facilities in Colombia
Biggest producer
Brazil
Leader in the
market for producing bathroom fittings
12 thousand
employees
40% 20%
40%
Itaúsa Ligna Free Float
Shareholder structure
independents;
position within the company;
Ombudsman Departments;
Pactual, Citybank, Goldman Sachs, Empiricus Research, HSBC, Merrill Lynch, Morgan Stanley, Nau Securities;
. Itaúsa centralizes strategic and financial decisions of a group of companies. Itaúsa
and also administers large business
Unibanco S.A and is Brazil’s largest private bank in terms of assets under management and market capitalization – Market Cap: R$101.6bn (Dec18) Grupo Ligna reunites the investments of Helio Seibel and Salo Davi Seibel. Both are entrepreneurs with over 40 years of experience in different sectors of the
retailing, industry, power generation, property, agriculture and financial sectors. Net Assets: R$1.0bn (Dec17)
Deca Industrial Dir. Marco Milleo Operations Dir. José Ricardo Ferraz Deca Division Vice President Marcelo Izzo Ceramic Tiles Division Dir. Gilmar Menegon CFO Carlos Henrique Haddad Human Resources Dir. Glizia Prado IT, Strategy and Innovation Dir. Daniel Franco Wood Division Vice President Henrique Marc. Deca Commercial Dir. Cleonyr Xavier CEO Antonio Joaquim de Oliveira
Yarumal Barbosa Manizales
Colombia Brazil
Wood Panels Forests Ceramic tiles Hydra Metals Water closets
Criciúma (SC)
Sanitary Wares Metal Fittings
Urussanga (SC)
Agudos (SP) Itapetininga (SP)
WOOD DIVISION
MDP
Uncoated MDP, with applications in the furniture and civil construction sectors.
Madeplac
BP
Coated MDP. Standard and Textured.
MDF
Uncoated MDF, with applications in the heavy-duty furniture sector.
Madefibra BP
Heavy-duty, coated MDF Standard and Textured.
High Gloss BP
Coated MDF, with different degrees of gloss finish.
Durafloor
Laminated wooden floor coverings and vinyl floor coverings made from 100% recyclable PVC.
84% 16% Mercado Doméstico Mercado Internacional
Final Destination
Main Indicators for the Sector:
32% 20% 16% 8% 24% Duratex Arauco Berneck Fibraplac Outros
Main companies Main Association:
*Capacity Share
Institute)
Current Market Utilization
80% 20%
1Ocioso Utilizado * IBÁ data and Duratex estimates Others Domestic Market International Market Idle Utilized 2Q19
4 Manufacturing units
Capacity Share Capacity Utilization – 69%
Product/Volume Mix Strategy of the Division
Sales Segmentation Cost Segmentation
70 % 30 %
Fixed Cost Variable Cost
56% 42% 2%
Resale Furniture Insustry Civil Construction/Ot her
28% 17% 15% 13% 10% 9% 7% 1%
Other materials Resin Wood Paper Labor Depreciation and amortization Eletricity Fuel
DECA DIVISION
Sink
Applications in commercial and residential kitchens and bathrooms (Inox Sink)
Sanitary Wares
Applications in commercial and residential bathrooms
Showers
Wide variety of electric and gas powered showers
Valves
Used in operating flushing mechanisms
Metals
Wide variety of taps for kitchens and bathrooms
40% 30% 30% Deca Roca Outros 40% 20% 40% Deca Docol Outros 65% 20% 15% Lorenzetti Deca/Hydra Outros
Market Share Sanitary Wares Market Share Metal Fittings Market Share Showers
* ASFAMAS data and Duratex estimates
Main indicators for the sector:
Association of Construction Materials)
Association of Sanitary- Ware Manufacturers)
Main Associations
Others Others Others Deca Roca
Sanitary Wares
4 Manufacturing Facilities
Capacity Utilization Strategy of the Division
Metal Fittings
3 Manufacturing Facilities
Electric Showers
1 Manufacturing Facility
Sales Segmentation Cost Segmentation
68% 32%
Fixed Cost Variable Cost
66% 20% 10% 4%
Resale/Home Center Civil Construction Wholesale Others
36% 15% 35% 3% 8% 3%
Other materials Metals Labor Eletricity Depreciation and amortization Fuel
CERAMIC TILES DIVISION
Polished porcelain tiles
Applications in drier environments such as living rooms, corridors and bedrooms
Tiles
Wide range of applications for wet or dry environments
Special finishings
Wide range of applications with exclusive designs using 3D technology.
72% 28% Via Seca Via Úmida
Production Split
Main indicators for the sector: Market share (% Revenue)
9% 7% 7% 4% 3% 70% Portobello Ceusa/Portinari Eliane Roca/Incepa Elizabeth Outros
Main associations
Association for Ceramic Tile Manufacturers)
75% 25%
1Ocioso Utilizado
Current Market Utilization
* ANFACER data and Duratex estimates Idle Utilized Others 2Q19 Dry Process Wet Process
4 Manufacturing Facilities
Capacity Utilization
Product differentials Strategy of the Division
Production Capacity
Capacity Share Sales Segmentation Cost Segmentation
* Consider CEUSA expansion
69% 31%
Fixed Cost Variable Cost
54% 16% 22% 8%
Resale Home center Engineering Others
43% 29% 6% 5% 7%
Raw material Labor Eletricity Depreciation and amortization Fuel
Results
BRL million
Net Income and Gross Margin
Net profit rec.
improvement in working capital, EBITDA and management of CAPEX
scenario with greater confidence and consumption, boosting 4Q19 results
improvement in the period, mainly due to consolidation
359,0 221,9 180,7 271,2 275,0
2014 2015 2016 2017 2018 2019 3.984,5 3.963,2 3.909,8 3.990,9 4.949,4 5.011,7 31% 28% 26% 29% 26% 26%
12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32%2014 2015 2016 2017 2018 2019 952,1 836,7 681,0 760,0 848,5 909,9 24% 21% 17% 19% 18% 19%
0% 5% 10% 15% 20% 25% 30%2014 2015 2016 2017 2018 2019 (13)
BRL Million
Wood Deca
Volume (`000 m³) Net Rev. and Gross Margin
Volume (mn items) Net Rev. and Gross Margin
Net Rev. and Gross Margin
Volume (`000 m²)
Ceramic Tiles
2.787,6 2.498,1 2.433,2 2.399,1 2.748,1 2.504,4
2014 2015 2016 2017 2018 2019 2.641,9 2.597,8 2.594,5 2.515,7 2.980,6 2.802,4 31% 26% 25% 28% 27% 27%
0% 5% 10% 15% 20% 25% 30% 35%2014 2015 2016 2017 2018 2019 724,5 595,2 504,2 502,0 597,9 569,9 27% 23% 19% 20% 20% 20%
0% 5% 10% 15% 20% 25% 30%2014 2015 2016 2017 2018 2019 26,6 26,0 24,6 26,0 26,0 25,7
(3,00) 2,00 7,00 12,00 17,00 22,00 27,00 32,00 37,002014 2015 2016 2017 2018 2019 1.342,6 1.365,4 1.315,2 1.475,1 1.483,1 1.578,1 31% 31% 28% 30% 28% 30%
0% 5% 10% 15% 20% 25% 30% 35%2014 2015 2016 2017 2018 2019 227,6 241,5 176,8 258,0 204,0 244,6 17% 18% 13% 18% 14% 16%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%2014 2015 2016 2017 2018 2019 193,5 499,8 39% 36%
0,2 0,25 0,3 0,35 0,4 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 10002014 2015 2016 2017 2018 2019 46,6 94,4 24% 19%
2014 2015 2016 2017 2018 2019 5.340 13.483
2000 4000 6000 8000 10000 12000 14000 16000 18000 200002014 2015 2016 2017 2018 2019
BRL million
Net Debt and Net Debt/EBITDA Amortization Timeline Debt Profile
29% 71%
1Longo Prazo Curto Prazo
Short term Long term Gross debt
872 89 714 15 1.258
0,2 0,4 0,6 0,8 1 1,22020 2021 2022 2023 2024+
leverage level, due to the higher generation of operating cash and sale of forest assets
from 2.1 years to 3.7 years, as a result of the successful liability management strategy
representing over 70% of gross debt
1941,0 1913,0 2040,0 2100,0 1700,0 1705,0 2,1 2,3 3,0 2,8 2,0 1,9
2014 2015 2016 2017 2018 2019
A leaner and more productive Duratex, with stronger shareholder returns
Boom in demand Increase in market share Geographical and product diversification Consolidation of Corporate Governance
Growth Cycle
Strategic review of the Duratex culture Rejuvenated culture ready to face new challenges High performance teams Active and engaged leadership
Cultural Transformation
Sale of land and forestry assets Sale of the Hardboard business
Closure of the unit at Botucatu and re-
Joint Venture in dissolving wood pulp with the Austrian company Lenzing Unification of shower operations with the closure of the operations in Tubarão/SC Ceusa Expansion Project
Duratex Management System Identification of gaps and priorities Zero Based Budgeting Operational Efficiency EVA as a performance metric Solutions for Better Living Duratex 2025 Client at center of strategy Digital innovation Welcome: Ceusa and Viva Decora
2007 to 2014
2015 2016 2017 2018
Economy Expanding Economic Crisis Economic Recovery Management Excellence The New Proposal Duratex Asset Management
2019
Launch of inox cubes Closure of the Sanitary Ware unit in São Leopoldo License granted for construction of the Dissolving Wood Pulp factory Acquisition
And still more... SYNERGIES Closure of the ceramic tiles unit in Santa Luzia/MG Closure of the wood panels unit in Botucatu/SP
PEOPLE The people are our strength RESULTS Sustainable high performance CLIENT We are the best choice PROCESSES Job well done, simply and safely
WAY OF BEING AND DOING
Strategic pillars ...GENERATING CASH AND MAXIMIZING SHAREHOLDER VALUE Executive remuneration based on cash generation and EVA
...SUSTAINABLE GROWTH
Organic and inorganic growth within our way of working and being ...INNOVATION & DIGITALIZATION As a way of simplifying our processes and leveraging our sales channels
A company focused on...
...STRATEGIC ASSETS Optimization of the current assets and productive management with partners ...CLIENT SOLUTIONS One-stop-shop, complete in-situ experiences
Themes Pillars Aspirations
◊ Working Conditions and Employee Development ◊ Client and Consumer Engagement ◊ Relationship with Communities and Local Development ◊ Eco-efficiency ◊ Climate Change ◊ Sustainable Forest Management ◊ Responsible Supply Chain ◊ Sustainable materials and solutions Generating new business that supports sustainability Developing People and Creating Value in the Chain Growing the socio- environmental positive impact from point to point Innovating with sustainable solutions
People Processes Products & Services New business models Our numbers and Strategy
80% of
renewable sources in our energy grid
55% of the
energy grid composed of biomass
24% of water
re-use in our in- house production processes Around 10 Thousand employees have already completed an educational program in sustainability
biodiversity projects developed in 2018
Our forests are inhabited by more than 2 thousand native species of fauna and flora, with 30 of them at risk
the IUCN red list
Four
Solutions for Better Living
Portfolio of products as a design benchmark Strong Brands synonym of excellence Innovation as a directional of processes Solid Management System(SGD) with focus in generating value
Dissolving Wood Pulp
Units
Investor Relations Team
Natasha Utescher IR Coordinator Natasha.utescher@duratex.com.br +55 (11) 3179 7037 Investor Relations Investidores@duratex.com.br www.duratex.com.br/RI Lucas Mendes Voltarelli IR Analyst Lucas.voltarelli@duratex.com.br +55 (11) 3179 7920