Sohn Canada Presentation - Oct. 2014

7/21/2019 Sohn Canada Presentation - Oct. 2014

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Cfpjtfn Jmefs hkr Cfpjtfnjze hkr Ojms

Luy Lktthrjem, Wftjk`fn J`vestie`t Lrkup

(8=<) 3=8-4=8= luylktthrjemDrftjk`fnjl.cki



J`vestie`t Jmef2 ]ree Jsnf`m Steen Ntm. (]SQ2 ]SN)

Gujnmj`l Trkmucts If`uhfcturer



S`fpsakt

* Fnn hj`f`cjfn hjlures pertfj`j`l tk ]ree Jsnf`m fre j` Cf`fmjf` mknnfrs u`ness ktaerwjse stftem

Safres

37.5 ijnnjk`

Wece`t Trjce

$6.<5*

Ifroet Cfp

$5< ijnnjk`*



Gfcolrku`m

Kè kh nfrlest ifùhfcturers kh steen wjre prkmucts j` @krta Fierjcf

Kè pnf`t j` GC, taree j` Cfnjhkr`jf? f`ùfn cfpfcjty kh 355,444 tk`s

Ajstkrjcfnny prkhjtfgne gusjèss2 strk`l efr`j`ls hkr ft nefst 65 yefrs*

prjkr tk hj`f`cjfn crjsjs

@efrny we`t gfòrupt gehkre gej`l recfpjtfnjzem gy j`vestkr lrkupnem gy gujnmj`l prkmucts j`mustry veterf` Fifr Mkif`

J`stfnnem ajisenh fs cafjrif`, repnfcem hkrier if`fleie`t

Fhter eck`kijc mkw`tur`, spe`t yefrs prekccupjem wjta gfnf`cesaeet, ckst-cuttj`l f`m leèrfnny stfyj`l fhnkft

K`ny j` pfst ckupne kh yefrs afs jt gee` fgne tk sajht hkcus tk sfnes lrkwta

*Lkj`l gfco fs hfr fs resunts fre fvfjnfgne



\ay js ]ree Jsnf`m \krta Zkur Ftte`tjk`;

]rfmes ft 3.8x `krifnjzem hree cfsa hnkw (HCH)

Ifterjfn krlf`jc lrkwta pkte`tjfn hkr yefrs tk ckie wjta njttnej`creie`tfn cfpex

Exceptjk`fnny wenn-ru`

Ck`sjmerfgne j`sjmer kw`ersajp f`m rece`t guyj`l



\ay js Jt Sk Caefp;

Sifnn, cnkseny-aenm ckipf`y

U`merhknnkwem2 u`tjn ness taf` f yefr flk, afm `kefr`j`ls cfnns kr f`fnyst ckverfle

Gusj`ess afs gee` u`mer-efr`j`l hkr hjve yefrs, kgscurj`ljts true efr`j`l pkwer



Ckipetjtjve Fmvf`tfles

Wjcaik`m, GC pnf`t (fccku`ts hkr guno kh ]ree Jsnf`m‚s cfpfcjty f`msfnes) afs jipkrtf`t ckst fmvf`tfles

Turcafsj`l2 mue tk nkcftjk` (gy Hrfser Wjver/Tfcjhjc Kcef`) f`m scfne,cf` skurce steen wjre lnkgfnny ft mrfiftjcfnny nkwer fnn-j` ckst per tk`taf` ckipetjtkrs wakse sjze f`m/kr nkcftjk` hkrces taei tk guy nkcfnny

Jipkrts hrki nkw-ckst prkmucers j` Caj`f, Skuta Okref, Fustrfnjf, Cajne etc.

Sfnes2 nkcftjk` j` rfjn/truco gfcoafun ifroet e`fgnes jt tk sajp prkmucts

caefpny hrki GC tk Efster` Cf`fmf, Ijmwest f`m \ester` US Ft sfie tjie, prktectem k` jts akie turh hrki rjvfns j` fgkve reljk`s (sj`ce iuca

ikre expe`sjve tk sajp hrki taere tk \ester` Cf`fmf taf` vjce-versf)



Cfpfcjty Utjnjzftjk` f`m EGJ]MF

Trkhjtfgne eve` wjta ij`jscune ~34% utjnjzftjk`,extreieny neverflem tk j`creie`tfn sfnes

*Fiku`ts j` ijnnjk`s

4.6 6.3

3.8

<.7

71%

37%

7:%

37%

74%

77%

7=%

78%71%

34%

37%

3=%

38%

31%=4%

4.4

6.4

7.4

3.4=.4

5.4

8.4

<.4

1.4

:.464.4

7464 7466 7467 7463

EGJ]MF Cfpfcjty Utjnjzftjk`



Krlf`jc Lrkwta Cfse Stumy2 Leklrfpajc

Ckipf`y neverflj`l jts rfjn ckst fmvf`tfle tk expf`msjl`jhjcf`tny j` Jnnj`kjs

Fmmem fpprkxjifteny 8,444 tk`s j` f``ufnjzem sfnes yefr-tk-mfte

Wkki hkr ck`tj`uem expf`sjk`? Jnnj`kjs stjnn f sifnnifroet hkr ]ree Jsnf`m



Krlf`jc Lrkwta Cfse Stumy2Expnkjtj`l Ckipetjtkr \efoèss

Flrjcunturfn he`cj`l2 wk` safre hrki rjvfn j` \ester` Cf`fmf gy khherj`l hfriers ikre hreque`t sajpie`ts kh nkwer-vknuie

krmers wajne ckipetjtkr j`sjstem k` hunn truconkfm menjverjes

Wjvfn rece`tny wjtamrew hrki Cf`fmjf` ifroet, af`mj`l ]reeJsnf`m eve` ikre gusjèss

Z]M fmmem fpprkx. =,444 tk`s f`ùfnjzem



Krlf`jc Lrkwta Cfse Stumy2 Custkier \j`s

\k` hfsteèr gusjèss wjta Nkwe‚s Cf`fmf j` pfst yefr

Lrkwta pkte`tjfn2 Nkwe‚s stjnn afs sifnn prese`ce j` Cf`fmf,seeis j`te`t k` expf`mj`l (e.l. gjm hkr Wk`f j` 7467)

Kppkrtu`jty tk peètrfte Nkwe‚s fccku`t f`m geckie suppnjerj` \ester` US

Cfse stumjes jnnustrfte strjmes ]ree Jsnf`m js ifoj`l mespjte njttneaenp hrki ifcrk e`vjrkìe`t? sfnes lfj`s wjnn fccenerfte

jh US (jts ifj` ifroet gy hfr) ck`tjùes tk regku`m



Hurtaer Evjme`ce kh Sfnes ]rfctjk`

Hrki nfte V6 tarkula V7, lrew prkmuctjk` stfhh j` Wjcaik`m gy 7<% f`m ft Cfnjhkr`jf pnf`ts gy 63%

Fmmj`l nfgkur ckst-ehhectjveny? nftest rku`m kh u`jk` mefns

prkvjmem hkr iuca nkwer wfle rftes hkr èw wkroers

Wesunts fctufnny aurt j` V7 mue tk trfj`j`l cksts, jèhhjcje`cjesfsskcjftem wjta spjoe j` èw eipnkyees? geèhjt hrkiexpf`mem wkrohkrce yet tk ge see` j` hj`f`cjfns

Stfhh fmmjtjk`s sullest if`fleie`t f`tjcjpftj`lck`tjùem pjcoup j` vknuies



If`fleie`t Cfse Stumy2 7467 Megt Wepurcafse

\ae` ]ree Jsnf`m hfcem hj`f`cjfn mjhhjcuntjes, jt kgtfjèm hkrgefrf`ceflreeie`ts k` jts pfyfgnes hrki jts twk ifj` steen ve`mkrs J`stefm kh gej`l jiiemjfteny mue, fiku`ts wkunm ge repfjm k` j`stfnnie`t

gfsjs ft <% j`terest

J` 7467, reèlktjftem taese flreeie`ts fs hknnkws2 Xe`mkr #6 (kwem US$68.<ii)2 megt hunny extj`lujsaem j` excaf`le hkr

US$5ii pfyie`t? <4% afjrcut

Xe`mkr #7 (kwem US$65.1ii)2 `k pfyie`ts hkr sjx yefrs, prj`cjpfn wjnn gerepfjm hrki 7461 tk 7471 wjta j`terest ft =%, `k`-ckipku`mj`l f`m muehrki 747= tk 7471? fpprkx. 84% afjrcut k` TX gfsjs

Enjij`ftem ckipf`y‚s gjllest njfgjnjty ft ckigjèm mjscku`t kh ~85% wjtakut reskrtj`l tk gfòruptcy f`m wjta `k equjty mjnutjk`,

creftj`l treie`mkus safreaknmer vfnue



J`sjmer Guyj`l

CEK, CHK f`m XT Sfnes afve fnn pfjm getwee` $7.34 f`m $7.=4 persafre j` pfst afnh yefr (36% tk 3<% preijui tk curre`t prjce)? CEK afs

gkulat safres j` seve` kh nfst `j`e qufrters

J`sjmer purcafses sj`ce Buny 7463 7,665

Mjnutem safres kutstf`mj`l 37,534

Turcafses2 % kh safres 8.5%

*Fiku`ts j` takusf`ms

Seve` j`sjmers afve gkulat <% kh ckipf`y k`kpe` ifroet j` pfst 65 ik`tas



Akw Iuca Cf` ]ree Jsnf`mIfoe j` @krifnjzem E`vjrkìe`t;

Hrki 6::1 tk 7447 (prjkr tk k`set kh US akusj`l guggne),f`ùfn EGJ]MF rf`lem hrki $73ii tk $3=ii,fverflem $71ii*

EGJ]MF kh $75ii j` 7448* mespjte Skutawester` USakusj`l ifroet gelj``j`l tk ckkn taft yefr

*Gehkre hkrejl` excaf`le lfj`s j` fnn yefrs f`m kè-tjie lfj` hrki wjre rkm prjce mrkp j` 6:::. \jtakuttaese fmbustie`ts, EGJ]MF tktfns wkunm wkunm ge sugstf`tjfnny ajlaer.

Kperftj`l efr`j`ls sakunm retur` tk $75ii rf`le f`m ckunmexceem taft neven – ]ree Jsnf`m afs leèrftem ijnnjk`s kh mknnfrs

j` hjxem ckst cuts sj`ce Mkif` cfie fgkfrm



@krifnjzem HCH Iuntjpne

Ft HCH iuntjpne kh te`, eve` jh jt tkko hjve yefrs tk fttfj`

`krifnjzem resunts, j`vestkrs wkunm stjnn efr` CFLW kh 73%


EGJ]MF $75.4

Ifj`te`f`ce cfpex (6.5)

J`terest (7.3)

]fxes (5.3)HCH $65.:

Ter safre $4.=:

T/HCH 3.8



Cftfnysts

Ck`tj`uem sfnes trfctjk` Efr`j`ls, HCH wjnn skfr fs cfpfcjty utjnjzftjk` regku`ms hrki 34%-rf`le

]uco-j` fcqujsjtjk`s \jnn fmm ckipneie`tfry prkmucts/renftjk`sajps, e`af`ce efr`j`l pkwer

Mjvjme`m resuiptjk` Mkif` afs ajstkry kh hfvkurj`l mjvjme`ms ft j`vestee ckipf`jes

Nkw cfpex requjreie`ts, cnkseny-aenm `fture kh safres (ifoj`l guygfcosmjhhjcunt) suppkrt rftjk`fne hkr mjvjme`ms



Ck`cnusjk`

Ifterjfnny u`mervfnuem

Excenne`t if`fleie`t wjta ifbkr „soj` j` tae lfie’

Cnefr strftely tkwfrm restkrj`l hkrier prkhjtfgjnjty,strk`l evjme`ce kh successhun executjk`



J`vestie`t Jmef2 ]errfXest Cfpjtfn J`c. (]SQ2 ]XO)

Mjversjhjem Aknmj`l Ckipf`y



S`fpsakt

*Fnn hj`f`cjfn hjlures pertfj`j`l tk ]errfXest fre j` Cf`fmjf` mknnfrs

Safres

61.8 ijnnjk`

Wece`t Trjce

$8.74*

Ifroet Cfp

$665 ijnnjk`*

Mjvjme`m

$4.=4* (8.5% yjenm)



]errfXest ]kmfy2 ]aree Tfrts

WBX Lfs Hjenm Servjces

Ifùhfctures wennaefm prkcessj`l equjpie`t hkr kjn f`m lfsj`mustry j` \ester` Cf`fmf

Lestjk` Berjck

Ifùhfctures jteis suca fs prkpfè mjspe`sers, resjme`tjfn f`mckiiercjfn njqujm ck`tfjìe`t u`jts, guno prkpfè trucos

Mjfik`m Eèrly Servjces

Servjce rjl kperftkr j` Sfsoftcaewf`



Gfcolrku`m

Hkrierny f ck`lnkierfte wjta sjx mjvjsjk`s

Strullnem fs severfn sugsjmjfrjes u`merperhkriem, cunij`ftj`l j`mjvjme`m suspe`sjk` j` 744:

Fctjvjst j`vestkr tkko ck`trkn kh ckipf`y

Hrki 7464 tk 7467, mjvestem hkur kh jts sjx mjvjsjk`s, usemprkceems hkr specjfn mjvjme`ms, safre repurcafses

Wej`stftem relunfr mjvjme`m j` 7463

Efrnjer tajs yefr, fcqujrem Berjck f`m gelf` tk pursueck`sknjmftjk` strftely



\ay js ]errfXest \krta Zkur Ftte`tjk`;

HCH iuntjpne kh 8.< gfsem k` ru`-rfte kh curre`t gusjèss

J`vestkrs pfyj`l `ktaj`l hkr serjkus lrkwta prkspects

Xfnuem ft bust 3.8x estjiftem HCH j`cnumj`l njoeny fcqujsjtjk`s Fllressjveny pursuj`l ck`sknjmftjk` ft WBX f`m Berjck? ùierkus

tfrlets fvfjnfgne ft nkw-sj`lne-mjljt EGJ]MF iuntjpnes

Cf` mkugne HCH j` èxt taree yefrs

Weckrm kh excenne`t cfpjtfn fnnkcftjk`

Ck`sjmerfgne j`sjmer kwèrsajp f`m rece`t guyj`l



\ay js Jt Sk Caefp;

U`merhknnkwem2 `k f`fnyst ckverfle kr efr`j`ls cfnns gehkre Fulust

Z]M resunts u`merstftem gecfuse Berjck fcqujsjtjk` cnksem ijm-yefr?fgse`t hrki 6.5 kut kh 3 qufrters* j`cnumj`l sefsk`fnny-strk`l V6

U`merfpprecjftem lrkwta pkte`tjfn2 ]errfXest j` efrny stfles kh

fcqujsjtjk` strftely fhter yefrs kh sarj`oj`l

*]errfXest‚s hjscfn yefr e`ms k` Sep. 34



Ck`sknjmftjk` Kppkrtu`jty2 WBX f`m Berjck

Gkta mjvjsjk`s j` hrflie`tem j`mustrjes wjta if`y sifnn kperftkrs

@uierkus tfrlets fvfjnfgne ft nkw vfnuftjk`s (=-=.5x stf`mfnkè EGJ]MF)

Gkta WBX f`m Berjck afve jàere`t fmvf`tfles taft e`fgne taei tk

crefte sjzefgne ckst syèrljes WBX2 j`-akuse ifùhfcturj`l cfpfgjnjtjes fnnkw jt tk cut kut ckstny ck`trfctkrs,

efr` iuca ajlaer ifrlj`s taf` peers

Berjck2 cf` skurce steen ft ief`j`lhunny nkwer prjces taf` ckipetjtkrs (tajsfnsk aenps WBX, wajca skurces hrki Berjck)

Ckigjèm, WBX f`m Berjck afve kppkrtu`jty tk mepnky

$644ii-pnus ft 7.5-3x EGJ]MF fhter ckst-cuttj`l



Cfpjtfn Fnnkcftjk` Cfse Stumy2 @\T J`mustrjes

WBX ckipetjtkr, hjrst fcqujsjtjk` u`mer `ew ck`sknjmftjk`strftely? mefn cnksem j` Fulust

Tfjm =.75x EGJ]MF gfsem k` curre`t resunts

Ifbkr ckst-cuttj`l kppkrtu`jty hrki expnkjtj`l WBX‚s f`mBerjck‚s ckst fmvf`tfles f`m hrki kverfnn ehhjcje`cjes

If`fleie`t afs o`fco hkr hj`mj`l wfy tk reikve cksts

@\T `kt f`kifnkus? iuntjpne trf`sfctjk`s wjta sjijnfr

eck`kijcs gej`l expnkrem gy gkta WBX f`m Berjck



Cfpjtfn Fnnkcftjk` Cfse Stumy2 Sugstf`tjfn Jssuer Gjm

J` 7467, ]errfXest khherem tk repurcafse 5ii safres (75% khsafres kutstf`mj`l) tarkula sugstf`tjfn jssuer gjm ft $7.<5

Safreaknmers te`merem <.7ii safres? j`stefm kh prk-rftj`ltaei, ckipf`y enectem tk fccept e`tjre fiku`t

Gkulat gfco 38% kh jts safres ft nkw-sj`lne-mjljt HCH iuntjpnef`m ness taf` afnh kh curre`t prjce



J`sjmer Guyj`l

@kt j`cnumem fgkve2 Cafrnes Tennerj` (ru`s Berjck) recejvem ajs pkrtjk`kh Berjck fcqujsjtjk` prjce e`tjreny j` stkco, fnjl`j`l ajs f`m

]errfXest‚s j`terests? `kw kw`s 67% kh ckipf`y

@j`e j`sjmers afve gkulat 1% kh ckipf`y k` kpe` ifroetsj`ce Hegrufry ft fverfle ckst kh $8.76 per safre

J`sjmer purcafses sj`ce Heg. 746= 6,=78

Mjnutem safres kutstf`mj`l 61,5:=

Turcafses2 % kh safres <.<%

*Fiku`ts j` takusf`ms



HCH Iuntjpne2 Curre`t Gusj`ess

Ikmest vfnuftjk` eve` jl`krj`l fcqujsjtjk`s? j`vestkrspfyj`l `ktaj`l hkr ]errfXest‚s sjzefgne lrkwta prkspects

EGJ]MF ru`-rfte $34.4

Ifj`te`f`ce cfpex (=.4)

J`terest (3.6)

]fxes (5.<)HCH $6<.7

Ter safre $4.:7

T/HCH 8.<




HCH Iuntjpne Fmbustem hkr Trkgfgne Fcqujsjtjk`s j` @ext ]wk tk ]aree Zefrs

J` nk`ler teri, sjl`jhjcf`t caf`ce kh fmmjtjk`fn trf`sfctjk`s geyk`mneven fssuiem j` tajs cfncunftjk`, ifoj`l stkco eve` caefper

Trese`t ru`-rfte $6<.7

EGJ]MF hrki WBX fcqujsjtjk`s 63.3

EGJ]MF hrki Berjck fcqujsjtjk`s 74.4

J`creie`tfn cfpex, j`terest, tfxes (67.3)

HCH $31.7

Mjnutem safres kutstf`mj`l2 prese`t 61.8

Safres jssuem hkr fcqujsjtjk`s 3.8

Fmbustem safres 77.7

HCH per safre $6.<7

T/HCH 3.8

*Fiku`ts j` ijnnjk`s. Fssuiem $=4ii f`m $84ii j` fcqujsjtjk`s hkr WBX f`m Berjck, respectjveny, hu`mem <5% megt f`m 75% equjty, ft 3x EGJ]MF fhter sy`erljes.



Cftfnysts

Hurtaer fcqujsjtjk`s

Nfrle pjpenjè kh mefns fvfjnfgne ft gfrlfj` prjces

\jnn resunt j` rfpjm lrkwta hkr hkreseefgne huture

Ikètjzftjk` kh Mjfik`m – k`ny selie`t `kt tfrletem hkr lrkwta

Stfgne efr`j`ls, nefmj`l safre j` jts reljk`? wkunm ge fttrfctjve fmmjtjk`hkr nfrler eèrly servjces hjri

\kunm prkvjme sjl`jhjcf`t cfpjtfn tk remepnky j`tk WBX f`m Berjck



Ck`cnusjk`

F`kifnkusny caefp

Ajla melree kh j`sjmer fnjl`ie`t,reckrm kh jipressjve cfpjtfn fnnkcftjk`

J`vestkrs afve`‚t cfulat k` tk e`krikus lrkwta pkte`tjfn



]SN f`m ]XO2 Jipkrtf`t Ckiik`fnjtjes

Ijsu`merstkkm2 ifroet jl`krj`l hu`mfie`tfn caf`les ftefca gusj`ess

Meik`strfgny caefp? ckipennj`l ifrlj` kh sfhety

Strk`l if`fleie`t f`m sugstf`tjfn j`sjmer guyj`l

Sohn Canada Presentation - Oct. 2014

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Transcript of Sohn Canada Presentation - Oct. 2014