INVESTORS AND ANALYSTS CONFERENCE CALL - FY13 RESULTS - 13 March 2014

Transcription

1 INVESTORS AND ANALYSTS CONFERENCE CALL - FY13 RESULTS - 13 March 2014

2 HIGHLIGHTS OPERATIONAL Improved performance and increased profitability in Rest of the World operations On a comparable basis*, average capacity utilization was up by 2.2 pp versus 2012 Record OSB production and sales volumes FINANCIAL: Turnover decreased by 7%, to 1,232 million Euros mostly driven by the reduced industrial footprint Recurrent EBITDA margin fell by 1 pp, reaching.5% Net losses reduced by 21% against 2012 Net Debt was down for the 3rd consecutive quarter, standing at 78 million Euros at YE13 Working Capital improved by 5 million Euros, when compared to YE12 2 * Average capacity utilization index excludes idle production lines

3 OPERATIONAL REVIEW TURNOVER 1,400 1,200 1,000 Turnover 800 Recurrent 00 EBITDA % 400 1, % -7% 1,232.5% 14.0% 12.0% 10.0% 8.0%.0% 4.0% Turnover reduced 7% y.o.y. due to a combination of reduced industrial footprint and lower levels of activity in Europe The reduction was a combined impact of reduced sales volumes (-7.7%) and lower average selling prices (-0.8%) % * % * transferring UK values to discontinued operations, given the stoppage of production activity in the region during the 3Q12 Quarterly Volumes Sold Millions of m 3 Quarterly Average Prices (Eur/m3) Base 100: 1Q Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

4 OPERATIONAL REVIEW VARIABLE COSTS QUARTERLY AVERAGE COSTS (eur/m3) BASE 100:1Q QUARTERLY AVERAGE COSTS (eur/m3) BASE 100:1Q Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Chemicals Wood Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q UREA SPOT PRICES source: ICIS Lor Average variable costs per m 3 were up by 0.9%, y.o.y. Main impacts came from both wood and combustible costs Chemicals costs showed an improved performance, together with electricity A continuous tight control of maintenance expenditure also had a positive impact in the average variable costs USD / mton Euro / mton Jan-12 Fev-12 Mar-12 Abr-12 Mai-12 Jun-12 Jul-12 Ago-12 Set-12 Out-12 Nov-12 Dez-12 Jan-13 Fev-13 Mar-13 Abr-13 Mai-13 Jun-13 Jul-13 Ago-13 Set-13 Out-13 Nov-13 Dez-13 FOB EAST EUROPE FOB Baltic Sea NWE ICIS Methanol Prices to 2013 Jan-12 Fev-12 Mar-12 Abr-12 Mai-12 Jun-12 Jul-12 Ago-12 Set-12 Out-12 Nov-12 Dez-12 Jan-13 Fev-13 Mar-13 Abr-13 Mai-13 Jun-13 Jul-13 Ago-13 Set-13 Out-13 Nov-13 Dez-13 Contract Price Spot average

5 OPERATIONAL REVIEW CAPACITY UTILIZATION 1Q09: closure of PB Line in Coleraine (UK) George plant (S.A.) Q09: Sale of Brazil operations Millions of m 3 2Q09: closure of Châtellerault and St. 12 Dizier plants (France) % 3% 4% % 4Q09: closure of Kaisersesch plant (Germany) 2Q10: Sale of Lure plant (France) 1Q10: closure of Duisburg plant (Germany) xx Average capacity utilization index excludes idle production lines 3Q12: closure of Knowsley plant (UK) 4Q12: closure of Solsona plant (Spain) 72% 74% 72% 71% 77% 79% 75% 7% 78% 7% 73% 73% 77% 77% 74% 73% % 100% 80% 0% 40% % 5 0 1Q09 1H09 9M Q10 1H10 9M10 FY10 1Q11 1H11 9M11 FY11 1Q12 1H12 9M12 FY12 1Q13 1H13 9M13 FY13 Volumes sold (Annualized) Unutilized capacity Capacity Utilization 0%

6 FINANCIAL REVIEW P&L ACCOUNT Million euros 2012* 2013 Consolidated turnover 1,321 1,232 Other operational income EBITDA 97 5 Recurrent EBITDA Recurrent EBITDA Margin % 7.5%.5% Depreciation and amortisation (77) (75) Provisions and impairment Losses (13) (32) Operational profit 12 (39) Net financial charges (51) (59) o.w. Net interest charges (28) (37) o.w. Net financial discounts (15) (15) Profit before taxes continued operat. (EBT) (39) (98) Taxes (1) 19 o.w. Current tax () (7) o.w. Deferred tax (10) 27 Profit / (loss) from continued operations (55) (79) Profit / (loss) from discontinued operations (45) - Losses (income) attrib. to minority interests (1) (1) Net profit/(loss) attributable to Shareholders (99) (78) Non Recurrent items of 15 million Euros (9.4 million Euros related with severance costs) Impairments of circa 40 million Euros (8 of which related with Goodwill) Net interest charges up by 9 million Euros due to higher average cost of debt (+1.1 pp, yoy) Deferred tax assets of 27 million Euros, of which circa 1 million Euros are related with the revaluation of land and buildings * transferring UK values to discontinued operations, given the stoppage of production activity in the region during the 3Q12

7 FINANCIAL REVIEW REVALUATION IMPACT In 2013 the accounting treatment of tangible assets Land and Buildings was changed from a cost model to a revaluation model. 7 P&L Accounts Impacts Deferred Tax Assets of circa 1 Million Euros Balance Sheet Impacts External valuation led to an increased value of 130 million Euros in the value of Land and Buildings A revaluation reserve was booked under Shareholder s Funds for the amount of 93 million Euros, net of the corresponding deferred tax liabilities P&L ACCOUNT Million euros 2012* / 2012* Profit before taxes continued operat. (EBT) (39) (98) - Taxes (1) 19 - o.w. Current tax () (7) (30%) o.w. Deferred tax (10) 27 - Profit / (loss) from continued operations (55) (79) (44%) BALANCE SHEET Million euros M Non current assets Tangible assets Goodwill Deferred tax asset Other non current assets Current assets Non-current assets held for sale Total assets 1,29 1,220 1,24 Shareholders' Funds Equity Holders Minority interests (1) (1) (1)

8 FINANCIAL REVIEW MANAGING FOR CASH WORKING CAPITAL: 1Q10 - FY13 Mn Q10 1H10 9M Q11 1H11 9M Q12 1H12 9M Q13 1H13 9M13 FY13 Additional fixed assets Q 2Q 3Q 4Q Million euros 4 3 Advance Payments WORKING CAPITAL was 5 million Euros below the level of 4Q12, and 20 million Euros below 3Q13, with main contribution coming from Trade debtors. ADDITIONS TO FIXED ASSETS were 19 million Euros mostly related with maintenance and health & safety improvements. Additional amount of 3.5 million Euros in Advance payments to fixed assets suppliers related with planned investments in recycling facilities of our German operations. 8 FY CAPEX

9 FINANCIAL REVIEW NET DEBT Comparing to 9M13, Net Debt decreased by 1 million Euros and is mainly the result of an improvement in Working Capital. When compared to year end 2012, net debt increased by 13 million Euros Net Debt (Million euros) 950 ND/Rec. EBITDA 25.0 x Net debt Net debt to LTM Rec. EBITDA 20.0 x 15.0 x x x 5.0 x x 9 1Q09 1H09 9M Q10 1H10 9M Q11 1H11 9M Q12 1H12 9M12 FY12 1Q13 1H13 9M13 FY13

10 FINANCIAL REVIEW REFINANCING As part of the defined financing strategy, we expect to be able to refinance most of the upcoming debt maturities in 2014 and to adjust the profile of our debt to estimated cash flow generation SCHEDULED LOAN REPAYMENTS* (as of 31st December 2013) H14 2H14 1H15 2H15 1H1 2H1 1H17 2H Million EUR 10 Does not include Securitization, Factoring and short term facilities

11 THANK YOU QUESTIONS?