Paseo de la Reforma 725 Col. Lomas de Chapultepec

Transcription

Paseo de la Reforma 725
Col. Lomas de Chapultepec, Miguel Hidalgo,
CP. 11000, Distrito Federal, México.
.......................................................................................................................... 3
............................................................................................................................ 3
......................................................................... 3
..................................................................................................................... 3
.................................................................................................................... 4
.............................................................................................. 6
........................................................... 9
...................................................................................................................... 9
.......................................................................................................................... 10
............................................................................................................... 11

On February 3, 2016, Proteak announced the operations’ startup of its MDF plant in Huimanguillo, Tabasco under the brand
Tecnotabla, MDF de Buena Madera.




Thanks to the results published in December 2015, Arrowhead increased the target Price for Proteak’s OPCs (Ordinary
Participation Certificates) as of March 2016.
The 2015 external Audit was successfully completed.
During the quarter, the Company carried out the second disbursement of the loan that Proteak signed with Financiera
Nacional de Desarrollo (FND) in 2015 for Eucalyptus plantations. The amount disbursed was MXP 31MM.
During the quarter, the Company carried out the disbursements of the loan Proteak signed with AKA-Commerzbank for the
MDF Plant. The amount of such disbursements was MXP 111MM.
Arrowhead updated its independent valuation of Proteak, placing the value of the Company’s OPC between MXP 30.99 and MXP
34.73 as of March 2016.
The valuation was performed using discounted cash flows and considering both, Proteak’s Teak business unit and the
development of the MDF plant in Huimanguillo, Tabasco.
The valuation report is currently published on Proteak’s website:
http://proteak.com/index.php/en/investors/financial-information/analyst-coverage
Planta MDF
On February 2, 2016, Proteak announced the operations’ startup of its MDF plant in Huimanguillo, Tabasco under the brand
Tecnotabla. With state-of-the-art technology, this plant is the first of its kind in Mexico and will use certified wood from the
company’s own 100% sustainable plantations.
Panel production will increase gradually to reach the plant’s annual capacity of 280,000 m3. Given that Proteak complies with
the highest international quality standards, MDF will not only be sold in the domestic market, but in the international one, as
well.
“This plant represents the most important forestry-industrial project in the country’s history and evidences that the forestry
sector can be sustainable and profitable at the same time, to the benefit of many Mexican families”, declared Héctor Bonilla,
Founder of Proteak and President of the Board. “Mexico has everything to become an international forestry-industrial
powerhouse and we are proud to be the first ones to prove it”, he added. This project diversifies the economy of Tabasco and is
the source of over 1,500 direct and indirect jobs in the state’s rural areas.
During the quarter, adjustments and corrections were made to achieve an excellent quality and a larger production. The Ramp
Up continues according to schedule, as of 2S16 Proteak will achieve the optimal quality and the desired mix. In 2016 a
production of 90 – 100K m3 is expected.
For the Turbine, Resine Plant, Melamine Press and other equipment, the assembly and installation continued in a timely manner
during the quarter and they are ready to start operations in the second semester of 2016.
The key operative perssonel for the Plant was consolidated and has had a good reaction. Teams are also being trained for the
Plant operation to accompany the Ramp Up.
Commercialization
Regarding marketing, Proteak continued selling third-party boards in 2015, helping the Company to better understand the
market and the industry rules. The latter allowed Proteak to develop a strategy focused on a value proposal. The objective of
the Company is to “create solutions of good wood within everyone’s reach ” with “specialized boards of good wood that make
projects reality”. In order to bring customers close to the Company, a program to visit Eucalyptus plantations and the MDF Plant
started in March.
During the quarter, Proteak continued selling third-party boards, with the objective to expand the customer base maintaining
the same volume. As of march 2016 the customer base has a monthly purchase potential of 25,000 m 3.
As part of the plan to assure the supply to the MDF Plant, new harvest machinery with state-of-the-art technology was bought
to improve efficency and haverst costs. With these actions, Proteak has managed to harvest more than 100,000 m3 of wood to
start supplying the Plant in half the time, with a quarter of the staff and zero accidents. The Plant has already inventoried all
inputs to operate smoothly.
Logistics is one of the most important links in the marketing chain. During the quarter, the Logistics Strategic Plan was a success
and suppliers have been secured in accordance to the “Proteak Standard” of quality and service.
Tecnotabla, MDF de Buena Madera, the first MDF produced in Mexico is ready to enter the market.
Forestry
During the quarter, 80% of the 2015-16 annual planting program was finished. The plan for first rotation plantations was
completed as well. However due to a reduction in the need of wood for the plant, second rotation plantations of Eucalyptus have
been delayed and the rate of harvest has decreased. Planting will be completed in April 2016. This delay does not represent a
setback for the business plan. As of March 2016, only 800 hectares are missing to reach a 10,000 hectares mark in 2017.
Maintenance of Eucalyptus plantations has developed according to plan, while meeting adequate quality and productivity
conditions.
Commercialization
During the quarter the harvest of mature teak plantations continued in the state of Tabasco. These plantations were acquired
in 2010. In total, 45 containers of Mexican Teak were exported to India and China strengthening the promotion of “Mexico Teak”
in Asian markets. Although the marginal contribution has resulted less than with wood form other countries (especially Col and
CRI), we are working in both the positioning of the wood and the optimization of the harvest and distribution operation. The
goal is to have similar marginal contributions at year-end 2016.
During the quarter, 64 containers from Colombia were exported. Proteak is in the final phase of harvesting mature plantations
in this country.
The combined effect of Colombia and Mexico resulted in average selling prices that were 16% higher than budgeted.
Forestry
The maintenance plan for the forestry year concluded. Planted Teak hectares totaled 8,264 ha.
In 2016, plantations of Teak will be postponed in order to focus on the operational capacity of Eucalyptus plantations.
The maintenance of Teak plantations develops according to plan presenting adequate conditions of quality and productivity.
The evaluation of the effects of Patricia Hurricane concluded in October 2015. It affected one plantation in the state of Jalisco,
which represents 2.1% of the effective planted area and 2% of the value of Biological Assets. No serious damage was reported.
SUMMARY OF RESULTS AND KEY INDICATORS
In '000 MXP
Teak Sales
Eucalyptus / Panel Sales
Income from Revaluations
I.
1Q'16
27,701
27,762
45,619
1Q'15
19,473
10,111
45,437
Q vs Q
42%
175%
0%
Other Income / Expenses, Net (1)
1,494
2,676
Teak Sales Cost
25,197
16,808
Eucalyptus Sales Cost
32,007
9,585
Gross Margin
45,415
49,681
Teak Gross Margin Without Revaluation
2,503
2,664
Eucalyptus / Panel Gross Margin Without Revaluation
(4,245)
527
Operating Income
19,010
25,167
Debt
1,461,957 689,408
Total Liabilities / Total Assets
0.4
0.3
Debt / Equity
0.5
0.3
Debt / Total Assets
0.3
0.2
Debt / Current Assets
1.8
1.1
N/C Not Comparable
(1) Other Net Income considers subsidies, asset sales and other expenses.
(44%)
50%
234%
(9%)
(6%)
(906%)
(24%)
112%
51%
71%
38%
68%
Income Statement Analysis
Sales
The quarter sales reached MXP 55MM, 87% higher than the ones registered during the 1Q15.
The 42% increase in Teak sales compared to 1Q15 reflects the incorporation of Mexican wood volume in Teak exports.
Eucalyptus / Panel Sales reflect MXP 28MM from the sale of MDF panels imported by a third-party. The sales are part of the
commercial strategy, which have successfully provided the Company with a better understanding of the market and the industry
rules allowing us to consolidate the commercial strategy and develop distribution channels.
Net Quarterly Sales totaled MXP 153MM, 34% higher than the ones registered the same quarter last year, mainly driven by the
sale of third-party MDF and the Mexican Teak exports.
Income from the Biological Asset Revaluation totaled MXP 46MM, staying in line with the provision and the growths registered
in 2015. Throughout the year, the company makes income provisions from the Biological Asset Revaluation. Nevertheless, it is
during the last quarter of the year when a physical inventory takes place and the final value of the year’s revaluation is registered
along with the corresponding adjustments.
Sales Costs, General Expenses and Net Income
Gross Margin for the sale of goods was zero, due to a smaller margin obtained in the introduction phase of Mexican Teak and
the effect of commercializing third-party panels. The latter is an expected consequence of the market penetration strategy
combined with the exchange rate.
General Expenses for the quarter totaled MXP 27MM, maintaining the same tendency as the last exercise and they already reflect
the cost of the Employee OPC program. It should be noted that this is a non- cash item so it does not represent an actual cash
outlay for Proteak. General Expenses of 1Q16 increased 3% compared to 1Q15. The variation is not significant as the expenses
remain in line with the operation level of the Company.
The Operating Profit of the quarter reached MXP 19MM, 24% lower than the one registered in the 1Q15, mainly due to the thirdparty MDF commercialization with a zero margin. However, the Company developed a customer base and well defined
distribution channels to start commercializing its own MDF brand.
II.
Balance Sheet Analysis
Assets
As of March 2016, total assets of the Company amounted to MXP 5,322, 2% higher than the year-end 2015, mainly driven by
the investment in the MDF plant, the revaluation of Biological Assets and the exchange rate effect on Teak Assets.
Among Current Assets, Clients stand out with a total of MXP 78MM, showing a decrease of MXP 38MM compared to December
2015 mainly due to a lower level of sales and the portfolio’s speedy recovery.
Inventory increased MXP 24MM compared to December 2015 as a natural consequence of the decrease of panel inventory and
the increase of Eucalyptus wood harvest in order to supply the MDF plant.
Real Estate, Plant and Equipment registered an increase of 5% compared to year-end 2015, reflecting the end of the construction
of the industrial building for the MDF plant.
Biological Assets (Current and Non-Current) increased 4% compared to December 2015, reflecting the new acquisitions and the
provision for Biological Asset revaluation corresponding to 2015, which is composed by a mix of different effects that can be
broadly classified as (i) new acquisitions, (ii) growth, and (iii) exchange rate.
The value of Proteak’s plantations is mainly modified by four factors: (i) capitalized forestry expenses, (ii) exchange rate, (iii)
revaluations representing the growth of biological assets, and (iv) outflows from the wood’s cost of sales.
So far this year, the following has been registered: (i) MXP 37MM in capitalized forestry expenses, destined for both,
maintenance of existing plantations and planting of new ones, with the purpose of improving their expected return by
maintaining growths that overcome those originally expected; (ii) MXP 3MM from revaluation of the USD; (iii) MXP 46MM in
revaluation derived from the previously discussed growth; and (iv) MXP 25MM, which represent the wood’s cost of sales. During
the quarter, harvested wood amounted to 5 Mm3 (thinnings and harvest).
Long-Term Assets Kept for Sale are mainly non-strategic plots that will be sold in the medium term. These assets are located
in Costa Rica and their value as of this quarter is MXP 68MM; the decrease of 34% compared to year-end 2015 figures stems
mainly from the sale of a part of the assets (an offer is under consideration for the rest of the assets).
Liabilities and Equity
Current Liabilities decreased 2% compared to 2015, staying in line with the normal development of the business.
Deferred Tax Liabilities show the provisions that were generated by the annual calculation of 2016 taxes.
Other Liabilities with Cost reflect the disbursements of the credit with AKA-Commerzbank for the acquisition of machinery for
the MDF plant. They also include the second disbursement for MXP 31MM of the credit line signed with FND in May 2015. The
disbursements of the credit with AKA totaled MXP 111MM. During the quarter, a principal amortization for MXP 6MM was made
to FND according to the credit signed in 2012.
Total Equity reached MXP 3,117MM as of the end of the quarter, MXP 17MM higher than the 2015 year-end figure, the conversion
effect as a result of the US Dollar appreciation and the result of the exercise. Proteak’s solvency continues strong with an Equity
to Liabilities ratio of 1.8 to 1.
III.
Cash Flow Analysis
During the quarter, the Company’s cash flow position recorded a net increase of MXP 3MM. Investment activities and new
plantations were funded.
Investment Activities amounted to MXP 150MM from the sale of certain available assets, the sale and lease-back of agricultural
equipment, forestry activities, suppliers, creditors, civil works and MDF plant expenses.
The difference between Operating cash flows and Investment Activities was funded mainly with the disbursements of the
AKA/Commerzbank loan (MXP 111MM), FND ministration (MXP 31MM) and VAT recovery (MXO 13MM).
The period’s cash flow evolved in line with the Company’s investment plan, with an ending cash position of MXP 171MM.
During the quarter, the initial estimate of carbon credits increased from 200,000 to 250,000 tons of CO2. The process is
expected to conclude during the second quarter of 2016, in order to start with commercialization. Furthermore, there are plans
to include 2014 and 2015 Teak plantations in the carbon credit project. The surface of these plantations totals 2,000 hectares.
The annual UN Global Compact report was presented in order to demonstrate compliance of Proteak’s operations with its 10
principles. The most relevant principles are the respect to human rights and the protection of the environment.
Regarding social development, painting of the elementary school in the community of Paso del Rosario was concluded during
the first week of January. The school has 89 students. The construction of a classroom for the preeschool in the community Lic.
Antonio Zamora started as well. The preeschool has 15 students. Regarding internal social development, the transportation
program for perssonel has benefited 70% of our field workers.
In January 2016, the OPC reached a maximum Price of MXP 20.00. During the quarter, the market continued recognizing the
fundamental value of Proteak; the Price of its OPC (CPO for its name in Spanish) remained stable, with an average of MXP 19
vs a MXP 15.13 during 1Q15.

Independent Analyst
As part of the independent analyst program, follow-up of Proteak’s OPC is performed by:
Ernesto Gustavo O´Farrill Santoscoy
[email protected]
Tel: (55) 5531 0042
Bahía de todos los santos #26
Col. Verónica Anzures
Delegación Miguel Hidalgo
C.P. 11590, México, D.F.

Investor Relations Agency
Alejandro Ramírez Arcia
[email protected]
Tel: +52 (55) 5256 – 5705
The following table presents a summarized quarterly Income Statement in MXP ‘000, and a comparison with the same period
of 2015. Regarding Gross Profit, Operating Profit and Net Income, the table shows the percentage of net sales plus revaluation
income they represent.
Income Statement
1Q16
%
1Q15
Δ 1Q'16 vs Δ Mar'16
1Q'15
vs Mar'15
%
Teak Sales
27,701
27%
19,473
26%
42%
42%
Eucalyptus / Panel Sales
27,762
27%
10,111
13%
175%
175%
Revaluations
45,619
44%
45,437
60%
0%
0%
1,538
46%
46%
Other Income/Expenses, Net
1%
1,053
1%
25,197
25%
16,808
22%
50%
50%
Eucalyptus / Panel Cost of Sales
GROSS PROFIT (LOSS)
General Expenses
Other Income/Expenses
32,007
45,415
26,362
(44)
31%
44%
26%
13%
65%
34%
234%
(9%)
3%
234%
(9%)
3%
(0%)
9,585
49,681
25,653
1,138
1%
(104%)
(104%)
OPERATING PROFIT (LOSS)
19,010
19%
25,167
33%
(24%)
(24%)
(9,141)
(64)
(27,401)
(9%)
(0%)
(11%)
0%
(5%)
(148%)
(5%)
(148%)
(27%)
(8,718)
132
16,495
22%
(266%)
(266%)
(36,606)
Teak Cost of Sales
Financial Products / Expenses
Other Financial Products / Expenses
Conversion Effect
Financing Results
(36%)
(7,909)
(10%)
(363%)
(363%)
(17,596)
(17%)
17,258
23%
(202%)
(202%)
3,519
3%
0%
-
0%
N/A
0%
N/A
0%
Net Income
Conversion Effect
(21,115)
- 0
(21%)
0%
0
17,258
4,920
-
23%
6%
0
(222%)
N/A
0
(222%)
N/A
0
Comprehensive Income
(21,115)
(21%)
22,178
29%
(195%)
(195%)
Profit Before Income Taxes
Income Taxes
The following table presents the consolidated Balance Sheet as of the first quarter 2016 in MXP ‘000, and its comparison with
2015 year-end figures.
Balance Sheet
Δ 1Q'16 vs
1Q'16
Cash & Equivalents
171,086
Accounts Receivable (Clients)
78,206
Other Accounts Receivable
204,500
Inventory
105,149
Current Biological Assets (Mature) 163,464
Assets Available for Sale
68,003
Other Assets
6,446
CURRENT ASSETS
796,855
Plant and Equipment
2,822,461
Non-Current Biological Assets
1,587,794
Deferred Income Tax
31,425
Other
51,116
Prepaid Expenses
32,297
NON-CURRENT ASSETS
4,525,093
ASSETS
5,321,948
Dec'15
%
168,180
116,433
236,719
129,279
151,130
102,729
10,763
915,233
2,684,337
1,536,074
33,859
37,312
28,388
4,319,970
5,235,203
2,906
(38,227)
(32,219)
(24,130)
12,334
(34,726)
(4,317)
(118,378)
138,124
51,720
(2,434)
13,804
3,909
205,123
86,745
2%
(33%)
(14%)
(19%)
8%
(34%)
(40%)
(13%)
5%
3%
(7%)
37%
N/A
5%
2%
95,113
109,962
1,079.63
45,549
283,229
233,561
93,774
76,367
473,196
465,439
1,368,184
1,281,416
351,125
350,005
12,216.00
3,784.00
1,731,524 1,635,205
2,204,720 2,100,644
(14,849)
(44,469)
49,668
17,407
7,757
86,768
1,120
8,432
96,319
104,076
(14%)
(98%)
21%
23%
2%
7%
0%
223%
6%
5%
Capital Stock
Accumulated Earnings (Losses)
Conversion Effect
Revaluation Surplus
Other Comprehensive Income
TOTAL EQUITY
2,369,722 2,366,218
83,917
107,542
393,855
393,572
119,544
119,544
150,189
147,683
3,117,227 3,134,559
3,504
(23,625)
283
(0)
2,506
(17,332)
0%
(22%)
0%
(0%)
2%
(1%)
TOTAL LIABILITIES + EQUITY
5,321,947
Accounts Payable
Payable Taxes
Other Current Liabilities
Current Debt
CURRENT LIABILITIES
Long Term Debt
Deferred Taxes
Other
LONG TERM LIABILITIES
LIABILITIES
(1) 2015 Audited Financial Statements
Dec'15 (1)
5,235,203
86,744
2%
April 28th, 2016. Mexico City. Today, Proteak Uno, S.A.B de C.V. (BMV: TEAK) published its 1Q16 results. This information is
presented according to Financial Reporting Standards (NIF) in nominal terms.

Paseo de la Reforma 725 Col. Lomas de Chapultepec

Transcription

Similar documents

here - EuroDesign

canopy bed - PCHseries

50` 3” Cheoy Lee 1984 - Chapman School of Seamanship

Paseo High School

ArmorCore Spec Sheet

UNITED YACHT SALES “Spirit of America” 37` Tayana ~ 1985

california condor conservation efforts at chapultepec zoo

Six times `First Board` in Russia/Belaruss

Finngulf Yachts Oy

Ods Lloyd Flanders April 24

Cisco MXP Cisco User Guide