PORTUGAL - Consolidated sales turnover in the first nine months of the year (9M-2017) for Sonae Industria, one of the main wooden panel manufacturers in Europe, reached EUR 178.8 million, a reduction of 2.1% compared to 9M-2016.

The decline in performance was driven by lower sales to the Nordic European markets by the Laminates & Components business unit and lower sales volumes to the Canadian market by the North American business unit. In the 3Q-2017, sales reached EUR 57.0 million, representing a decrease of EUR 5.1 million compared to 3Q-2016.

Recurrent EBITDA for 9M-2017 reached EUR 30.8 million, a reduction of EUR 1.0 million (-3.1%) compared to 9M-2016 with a recurrent EBITDA margin of 17.2%, that represented a fall 0.2 percentage points (p.p.) compared to same period 2016. The decline in performance was due to a lower contribution from the North American business that was negatively affected by the higher cost of chemicals and lower production volumes. Recurrent EBITDA for 3Q17 reached EUR 10.1 million, down 2.9 million euros when compared to 3Q-2016 and generating a recurrent EBITDA margin of 17.7%, down by 3.3 p.p. when compared to same period 2016. This drop in performance was driven mainly by the North American business that during 3Q-2016 achieved a record recurrent EBITDA level and during which chemical costs were significantly lower than in 3Q17.

Due to the fact that one of Sonae Industria’s main assets (its 50% shareholding in Sonae Arauco) is accounted by the equity method since 1 June 2016, proportional unaudited indicators are presented, to help improve the understanding of size of the business, valuation and financial leverage of Sonae Industria. These Proportional Indicators consider the full results of the wholly owned businesses and the proportional consolidation of the 50% contribution from Sonae Arauco.

January - September (9M-2017)

July - September (3Q-2017)

Proportional Results 9M-2017