RESULTS 1Q09
Highlights g Net Operating Revenue (NOR) in the 1Q09 reached R$ 118.7 million, practically the same value reported in the same period of 2008 Gross Income of R$ 38.1 million and Gross Margin of 32.1% EBITDA of R$ 32.9 million in this quarter, corresponds to an EBITDA Margin of 27.7% (2.4 p.p. lower than in the 1Q08) CAPEX totaled R$ 66.6 million in the 1Q09, according to the ongoing strategic investment plan New MDP Plant in Taquari (RS) Currently in the final phase of the electrical and mechanical assembly stage, remains on schedule for startup by mid-2009. 2
Our Business
Products MDP Particles from timber or recycled wood set in 3 layers glued together with synthetic thermoset resin Higher mechanic resistance Lower production cost Ideal for straight line parts and flat surfaces MDF Fiber from timber or premium recycled wood glued together with synthetic thermoset resin Uniform distribution of fiber Ideal for machined parts in bass-relief and round edges Flooring, window and door frames in construction 4
Launches MDP and MDF with BP coating 5 lines with 9 new patterns MDP and MDF with BP coating Anti-microbial action Longer lasting furniture Easier to be cleaned MDP Resistant to humidity Resistant to termites 5-year guarantee Ready-made parts FF highly similar to wood Good cost-benefit relationship BP: Panel coated with cellulose sheets impregnated with melamine resin offering high resistance to abrasion and chemical products FF: Panel coated with finish foil cellulose sheets, specially treated with varnish, offering different levels of shine 5
Forests Total Forest Area of 86.66 thousand ha (17.9 thousand ha RS and 68.7 thousand ha MG) Wood supply at competitive prices through own forests and long-term contracts Low freight cost with forests located near factories (50 km RS and 130 Km MG) Planted Eucalyptus from selected clones match Genotypes to Environment Increase in the productivity of forests through research with emphasis in the genetic improvement and mineral nutrition Professional and integrated forestry operations Forestry operations certified by the Forest Stewardship Council (FSC) 6
Industrial Plants Uberaba Total Capacity: 1,150150 thousand m³/year 800 thousand m³/year of PB 350 thousand m³/year of MDF Economy of scale sharing fixed cost Flexibility in the production and coating lines New Low-Pressure Coating Line already operating Self-sufficient in wood supply Taquari Continuous Line capacity of 700 thousand m³/year Startup forecast for mid this year Located in atraditional forestry region Supply from forests complemented by recycled wood 100km distant from the main furniture production center in Brazil 7
Brazilian Panel Market MDP Total ( 000 m³) 19.3% 63.8% 36.2% 36.7% 63.3% 646 522 MDF 1Q08 1Q09 1Q08 Total ( 000 m³) 2.5% 1Q09 34.7% 42.2% 65.3% 57.8% 476 464 1Q08 1Q09 1Q08 1Q09 Coated Non Coated Source: ABIPA 8
Results 1Q09
Results PANEL /2 1Q09 1Q08 % /2 4Q08 % Total Panels Production (m³) 173,441 180,919 (4.1) 251,652 (31.1) Panel Sales - Total (m³) /1 172,262 178,688 (3.6) 207,552 (17.0) NON - COATED PANEL 83,287 92,731 (10.2) 124,680 (33.2) COATED PANEL 81,472 81,224 0.3 74,531 9.3 Unit Net Operating Revenue (R$/m³)/1 640 633 1.2 636 0.7 NON - COATED PANEL 543 552 (1.6) 566 (4.1) COATED PANEL 714 688 3.8 719 (0.6) /1 Considers Non Coated and Coated Panel, Ready-made parts and Strips /2 Considers PB + MDF Panel Sales Total (m³) 3.6% 179 183 198 208 179 172 1Q08 2Q08 3Q08 4Q08 1Q08 1Q09 Note: Some differences may appear due to rounding 10
Results Net Operating Revenue - NOR (R$ million) 1.8% 121 126 133 140 121 119 1Q08 2Q08 3Q08 4Q08 1Q08 1Q09 Cost of Goods Sold - COGS (R$ million) + 9.0% 68% 67% 61% 58% 62% 61% 74 73 82 94 74 81 1Q08 2Q08 3Q08 4Q08 1Q08 1Q09 Non recurrent expenses of R$ 2.3 million % of COGS in relation to NOR Note: Some differences may appear due to rounding 11
Results Cost Structure Uberaba Plant (PB) Non Coated Panel 1Q09 Work Force 4% 11% Coated Panel 1Q09 Work Force Others Others 8% Energy Freight 8% 7% 69% Raw Material Energy Freight 12% 6% 9% 65% Raw Material Freight Energy Non Coated Panel 4Q08 Work Force Others 6% 3% 6% 9% 76% Raw Material Coated Panel 4Q08 Work Force Others Energy Freight 8% 8% 5% 10% 70% Raw Material Note: Depreciation, amortization and depletion not included 12
Results Urea Formaldehyd Resin (R$) Price Evolution - Base 100 = Jan/07 140 120 100 80 60 13
Results EBITDA (R$ million) 34% 30% 31% 32% 36 42 41 44 1Q08 2Q08 3Q08 4Q08 9.6% 30% 28% 36 33 1Q08 1Q09 Non recurrent expenses of R$ 3 million EBITDA Margin Net Result (R$ million) 66.8% 19 24 20 11 Non recurrent net expenses of R$ 6 million 19 6 (including derivative transactions liquidation) 1Q08 2Q08 3Q08 4Q08 1Q08 1Q09 Note: Some differences may appear due to rounding 14
Results Indebtedness d (R$ million) Average Maturity Average Cost 1Q09 4 years and 3 months 75%pa 7.5% p.a. 464.1 426.0 303.4 362.4 362.2 248.6 54.8 260.5 63.6 118.7 101.9 76.9 Gross Gross Gross 1 Cash 2 1 2 1 2 Debt Debt Cash Debt Cash 03/31/2008 12/31/2008 03/31/2009 Note: Some differences may appear due to rounding 15
Results 2.6% 24,9 37% Indebtedness d By Currency as of 03/31/2009 464.1 11.7 (R$ million) Unhedged Financing in US$ and 9.7% 45.1 Debt nominated in foreign currency hedged in R$ 97.4% 87.7% 407.3 Debt in R$ In this quarter Satipel liquidated the last derivative transaction with strikes 16
Results Depreciation, Depletion and Amortization 1Q09 R$ 14.5 million CAPEX (R$ thousand) 336,815 57,162 33,877 171,205 127,181 11,503 150,000,503 35,785 30,000 24,000 75,588 15,000 118,595 81,000 48,328 66,639 6,118 52,483 6,806 1,232 2007 2008 2009 (E) 1Q09 Forestry Maintenance and Expansion Industrial Maintenance Industrial Expansion Uberaba Industrial Expansion Taquari (E) Estimated Note: Capex net of taxes 17
Sustainability
Sustainability Wood supply exclusively originated from planted forests, with certified forestry operations in accordance to the FSC Forestry Stewardship Council principles and criteria, in coordination with the production custody network at the Uberaba b (MG) industrial i site Recycling wood scraps in the productive processes through the use of wood by-products from other industries of the sector Adding value to planted forests: (1) Wood products for panels, sawmills and energy and (2) non-wood products Pinus resin, carbon arrest and production of honey Environmental management programs focused on native flora and fauna conservation, on monitoring hydrological basins and recovery of decayed ecosystems Relations with the Community and Social Programs: Partnership with Government, Schools and Community Centers focused on technical education, employability, digital inclusion and alternative means of generating income 19
Current Moment
Current Moment TAQUARI (RS) Investment in the new 700,000 m³/year MDP factory ready for production by mid 2009 Old cyclic line decommissioned i d in February 2009 reducing by 120 the work force UBERABA (MG) New impregnationi facility being assembled New coating line in operation Annual preventive maintenance of the MDP line done in March Repairs and tests performed at the MDF refiner Work force reduced by 40 New state-of-the-art lines and large scale guarantee product complementariness and competitiveness to Satipel 21
Disclaimer The forward-looking statements contained herein related to the future of Satipel business, its estimated operating and financial results and its growth prospects are merely projections, and as such are based exclusively on management's expectations. These expectations in turn depend substantially on changes in market conditions and the performance of the Brazilian economy, the sector and the international markets, and are therefore subject to change without prior notice. 22
Contacts Flavio Marassi Donatelli CFO and Investor Relations Officer Charles E. Allen Investor Relations Superintendent t Tel: (11) 3646 4760 Fax: (11) 3646-4761 ri@satipel.com.br www.satipel.com.br/ri 23