PROFILE RANDON I N S T I T U T I O N A L P R O F I L E

Transcription

1 PROFILE RANDON I N S T I T U T I O N A L P R O F I L E R E S U L T S 4Q14 / 2014

2 Significant Information We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officer. Forward-looking statements also include information concerning our possible or assumed future results of operations as well as statements preceded by, followed by, or that include the words ''believes', ''may', ''will', ''continues', ''expects', ''anticipates', ''intends', ''plans', ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 2

3 RANDON PROFILE Foundation 1949 IPO 1971 Employees 10,732 Market cap R$ 1.33 bn 2014 LEADERSHIP GROWTH COMPETITIVE RECOGNITION leader in the 4th biggest automotive market in the world among the 5 biggest manufacturers of towed vehicles leader in Brazil in all kinds of parts produced by itself fast and constant growing present in all Brazilian economy sectors international exposure through exports and foreign operations one of the main suppliers in the Brazilian commercial vehicles chain complementary products and integrated industrial sites traditional partnerships and worldwide exposure one of the most respected brands in transportation in Latam elected among the best companies to work in Latam regular investments in R&D 3

4 RANDON PROFILE Consolidated Net Revenue Distribution by Segment % VEHICLES AND TRAILERS 46.0% AUTO PARTS 3.4% FINANCIAL SERVICES Among the 5 biggest manufacturers of road equipment in the world; Second major manufacturers of railway wagons in Brazil; The largest manufacturer of specialty vehicles of up to 30 tons in Brazil. One of the biggest friction material manufacturers in the Western hemisphere; The largest producer of air brakes for commercial vehicles in Brazil; Leader in production of friction material, air breaks, axles and suspension systems and coupling components for commercial vehicles. One of the biggest consortium companies for commercial vehicles in Brazil; In-house bank to finance clients and suppliers. 4

5 RANDON PROFILE CORPORATE STRUCTURE TOTAL STOCKS 304,731, ,371,448 Preferred Shares RAPT4 102,360,368 Common Shares RAPT3 FREE FLOAT 57.5% TAG ALONG 80% 5

6 RANDON PROFILE OPERATIONAL STRUCTURE Brazil Site Interlagos (Caxias do Sul/RS, Guarulhos/SP, Chapecó/SC), Site Forqueta (Caxias do Sul/RS) and Resende/RJ USA Randon (Miami/Flórida) and Fras-le (Northville Michigan and Prattville Alabama) Mexico Mexico City/DF Chile Santiago Argentina Randon (Rosário) and Fras-le (San Martin Província de Buenos Aires) Germany Gelsenkirchen Argelia Argel Kenya Nairobi South Africa Johannesburg China Fras-le (Pinghu/Zhejiang Province)) Dubai Jebel Ali Free Zone Egypt Cairo Mexico USA Germany Egyto Argelia Dubai China Chile Brazil Kenya Industrial Sites International Offices Outsourced Industrial Sites Distribution Centers Argentina África do Sul 6

7 VEHICLES AND TRAILERS Physical Volume Sales Breakdown of Revenues by Segment 4Q2014 4Q Δ% Un. Un. % CNR Un. % CNR Un. % CNR Un. % CNR Δ% Un. Vehicles and Trailers 52.5% 55.8% 50.6% 52.8% Towed Vehicles (un.) 3, % 6, % -40.2% 16, % 25, % -34.8% Specialty Vehicles (un.) % % -49.3% % 1, % -55.9% Rail Wagons (un.) % % % 1, % % 321.1% Physical Volume Sold over the last 5 Years. Randon SP Products Towed Vehicles 23,862 25,678 21,106 25,489 16,619 Specialty Vehicles ,085 1, Rail Wagons ,356 7

8 VEHICLES AND TRAILERS LEADER IN THE DOMESTIC MARKET Trailers Market Share 2014 Period Marketshare Randon OTHERS 29.6%.ANDON 26.9% % % % NOMA 9.5% LIBRELATO 10.4% GUERRA 11.4% FACCHINI 12.2% 8

9 VEHICLES AND TRAILERS MARKET CHARACTERISTICS Fragmeted base of clients Import Barriers strong distribution representatives in all main markets logistics costs regulation import tax financing Exposure to all economy segments direct relation with Brazilian GDP Exports concentrated in Latam and Africa markets Services Primary Sector 37% 15% Industry 48% Sales by Segment 2014 Primary Sector: General Cargo, Grain trailers, Cereal Trailers, Sugar-Cane Trailers, Forestry Equipment, Reefers; Industry: Bases, trailers for coils, general cargo, siders, stainless steel tankers. Services: Dump Bodies/ Trailers, Skeletal Bases for Containers, Aluminum Tankers, Carbon Steel Tankers. 9

10 COMPETITORS SIZE OF THE MARKET VEHICLES AND TRAILERS LEADER IN THE DOMESTIC MARKET 29,012 40,209 54,401 40,493 59,284 59,435 52,537 70,161 56,452 (Sales Brazil) 24% 25% 26% 26% 28% 28% 26% 27% 30% 7% 6% 6% 7% 7% 7% 10% 9% 2% 3% 4% 5% 7% 9% 11% 12% 15% 15% 16% 15% 14% 13% 14% 11% 15% 11% 11% 12% 10% 10% 12% 12% 11% 10% 11% 12% OTHERS NOMA LIBRELATO GUERRA FACHINNI 38% 37% 33% 35% 32% 33% 30% 29% 27%

11 AUTO PARTS

12 AUTO PARTS Physical Volume Sales Breakdown of Revenues by Segment 4Q2014 4Q Δ% Un. Un. % CNR Un. % CNR Un. % CNR Un. % CNR Δ% Un. Auto Parts 43.6% 42.3% 46.0% 45.4% Friction materials (ton.) 17, % 16, % 4.9% 76, % 72, % 5.1% Brakes (un.) 152, %198, % -23.1% 720, %935, % -23.0% Coupling systems (un.) 18, % 30, % -39.4% 86, %117, % -26.4% Axles and suspension systems (un.) 46, % 65, % -29.6% 213, %351, % -39.2% Castings (ton.) 5, % 5, % -3.4% 23, % 26, % -12.2% 12

13 AUTO PARTS LEADER IN THE DOMESTIC MARKET Marketshare main component in each controlled company 2014 Main Competitors 82% 87% Brakes Knorr (Germany) Unit in São Paulo Wabco (USA) Unit in São Paulo Boechat (Brazil/RJ) Silpa (Brazil/RS) Captive Market (MB, Scania) 54% 46% Axles and Suspensions Hendrickson (USA) KLL in RS BPW (Germany) SAF Holland (USA and Germany) Unit in São Paulo Fuwa (China) HBZ (Brazil/SP) Guerra (Brazil/RS) Articulation Systems Fontaine (USA) Unit in Paraná Amstead Maxion (USA and Brazil) Unit in São Paulo GF George Fischer (Switzerland) Office in Brazil/RS Fuwa (China) Fifth-wheel - OEM Air Brakes - OEM Brake Linings - Aftermarket Axles and Suspensions - OEM Friction Materials Bendix (USA) Cobreq (TMD Friction/ Germany) Unit in São Paulo Thermoid (Brazil/SP) Duroline (Brazil/RS)) 13

14 AUTO PARTS MARKET CHARACTERISTICS AND SALES BY SEGMENTS Concentrated base of clients Moderated imports Exposure to the OEMs demand Exports concentrated in NAFTA big clients play a major role in sales simultaneous engeneering import tax financing direct relation with the Brazilian GDP mainly USA market Sales by Segments 2014 OEM: Original Equipment Manufacturer of commercial vehicles trucks, buses and towed vehicles.. Aftermarket: replacement of used parts. Exports: Parts for OEMs located abroad as well as for foreign aftermarket clients.. Exports 16% 17% OEM 67% Aftermarket 14

15 MARKET OVERVIEW 4Q Low demand, season holidays and vacations have negatively affected the Company`s results. Purchases made in anticipation of changes in PSI/Finame funding rules have resulted in a decrease of inventories in 4Q14. Truck production(1): 139,965 units in 2014, 25.2% lower than The production of heavy trailer vehicles decreased 20.4% compared to the same period of previous year. The Company remained resilient in maintaining profitability and competitiveness, even in a difficult business environment. Source: (1) Anfavea Report January /

16 FINANCIAL RESULTS Total Gross Revenue Including intercompany sales R$ million CAGR -0.6% -17.6% 5, , , , , % 6, , , , Q13 4Q Consolidated Net Revenue R$ million CAGR 0.4% -11.2% 3, , , , , % 4, , , Q13 4Q

17 FINANCIAL RESULTS Gross Profit Gross Margin R$ million CAGR 1.0% -11.8% -9.3% 24.4% 24.5% , % % 25.0% 1, % 23.6% 24.4% 25.0% 1, Q13 4Q Consolidated Breakdown of COGS R$ million 9.5% 2.9% 75.4% 12.2% Raw Material Labor Depreciation Others

18 FINANCIAL RESULTS EBITDA EBITDA Margin R$ million CAGR -2.4% -11.6% -13.0% 14.6% 13.4% % 13.3% 13.0% % 11.3% 13.3% 13.0% Q13 4Q EBITDA EBITDA Margin Quarterly R$ million 10.8% 15.6% 13.9% 10.8% 11.3% Q13 1Q14 2Q14 3Q14 4Q14

19 FINANCIAL RESULTS Net Income Net Margin R$ million CAGR -5.1% -17.3% -14.1% 6.7% 6.5% % 5.5% 5.3% 4.4% 4.3% 5.5% 5.3% Q13 4Q Net Income Net Margin Quarterly R$ million 4.4% 6.4% 6.6% % 4.3% Q13 1Q14 2Q14 3Q14 4Q14

20 FINANCIAL RESULTS Consolidated Income Statement Segment R$ Million Vehicles and Trailers/Semi-Trailers Auto Parts Financial Services Consolidated 4Q2014 4Q2013 Δ% 4Q2014 4Q2013 Δ% 4Q2014 4Q2013 Δ% 4Q2014 4Q2013 Δ% Gross Revenue Deduction in Gross Revenue 582, , % 518, , % 38,522 30, % 1,140,143 1,372, % -104, , % -121, , % -3,056-2, % -228, , % Net Revenue 478, , % 397, , % 35,465 27, % 911,467 1,085, % Cost of Sales and Services -389, , % -302, , % -4,267-1, % -695, , % Gross Profit 88, , % 95,718 92, % 31,198 25, % 215, , % GROSS MARGIN (%) 18.5% 21.0% -2.5 p.p. 24.1% 20.2% 3.8 p.p. 88.0% 94.3% -6.3 p.p. 23.6% 22.5% 1.1 p.p. Operating Expenses -60,274-63, % -59,929-72, % -23,160-21, % -143, , % EBIT 28,369 62, % 35,790 19, % 8,038 4, % 72,196 86, % EBITDA 38,321 72, % 56,902 40, % 8,187 4, % 103, , % EBITDA MARGIN (%) 8.0% 12.0% -4.0 p.p. 14.3% 8.8% 5.5 p.p. 23.1% 16.6% 6.5 p.p. 11.3% 10.8% 0.6 p.p. 20

21 FINANCIAL RESULTS Consolidated Income Statement by Segment/Quarterly R$ Million/% 1Q2014 2Q2014 3Q2014 4Q Consolidated Net Revenue , ,778.8 % Vehicles and trailers/semi-trailers 46.8% 56.0% 46.7% 52.5% 50.6% % Auto parts 50.3% 41.1% 49.4% 43.6% 46.0% % Financial Services 2.9% 2.9% 3.9% 3.9% 3.4% Consolidated Gross Profit % Gross Margin 27.1% 25.8% 23.1% 23.6% 25.0% EBITDA % EBITDA Margin 15.6% 13.9% 10.8% 11.3% 13.0% Net Income % Net Income 6.4% 6.6% 3.7% 4.3% 5.3% 21

22 FINANCIAL RESULTS Exports US$ Million CAGR -5.5% -20.7% % Q13 4Q Exports Destination by economic bloc 2014 US$ Million Nafta % Oceania % Middle East % 6% 1% Africa % 16% Asia 9% South and Central America % 1% 5% ,2% Europe % 31% 31% Mercosur + Chile %

23 Financial Results INVESTMENTS R$ million CAGR -10.3% -56.6% % Q13 4Q Shareholders Equity ROE R$ million CAGR 5.3% 25.0% 23.0% 17.2% 15.1% 3.1% 1, , , , ,

24 Financial Results Gross Debt Breakdown 2014 R$ 000 % Foreign Currency 22.7% Total gross debt R$ 2,573,562,900 Gross debt in BR currency R$ 1,988,813,099 Gross debt in foreign currency R$ 584,749,801 USD rate (Dec. 31, 2014) R$ Reais 77.3% Debt Net Debt / EBITDA R$ million Industrial Net Debt , ,

25 Capital Markets RAPT4 Price Daily Liquidity R$ per share R$ % % Note: When comparing results with prior years, we have already taken into account the updated quotation with regard to the effect of bonus and payment of dividends Dividends and Interest on Equity R$ million R$ per share 0.24 Bonus 50%

26 SUSTAINABILITY Employment ,732 Employees -11.4% 12, Social Investments 2014 R$ 95 million Benefits education, food, private retirement plan, healthcare, transport, social responsability 8.0 R$ million Environment 26

27 SUSTAINABILITY Social Responsability Implemented Programs AGE

28 SUSTAINABILITY Added Value Consolidated 2014 Distribuition R$ 1.7 billion Minority Share 2% Interest over own Capital and Dividends 4% Profit Retained in the Period 8% Financial Institutions 21% Employees 40% Taxes 25% 28

29 OUTLOOK Brazilian economic growth projections: -0.66% in 2015 e 1.40% in 2016.* Agricultural harvest domestic production estimated at million tons of grains, 2.6% higher than the previous cycle. ** Fiscal and tax adjustments, as well as less-attractive financing conditions, have adversely impacted the year. Improvement expected for the second half of the year. Opportunity for growth in the Export Market and in the Aftermarket. Railway Wagons: We began 2015 with similar backlog as Expectation of growth for Source: * Relatório BACEN / FOCUS (03/06/2015) ** 6º Safra 2014/ Conab 29

30 VEHICLES AND TRAILERS Regional Business Focus on primary sector, manufacturing and services Trailers Domestic Fleet: 590,000 units (Source: ANTT ) Average Age Trailers Domestic Fleet: 11 years (Source: ANTT ) 30

31 VEHICLES AND TRAILERS Rail Wagons Towed vehicles Product Line: Road Equipments: General Cargo, Grain trailers, Cereal Trailers, Sugar-Cane Trailers, Forestry Equipment, Reefers, Bases, trailers for coils, general cargo, siders and stainless steel tankers. Rail Equipment: hopper wagons and tankers. Factories in Caxias do Sul/RS, Chapecó/SC, São Paulo/SP and Rosário/Argentina. 31

32 VEHICLES AND TRAILERS Product Line: Road Equipment: Grain trailers, Dump Bodies/ Trailers and General Cargo. Product Line: Off-road Trucks, Forestry Equipment and Backhoe loaders. 32

33 AUTO PARTS 5 plants in Caxias do Sul; Plants in the USA and China; Distribution centers in the USA, Europe e Argentina; Joint Ventures with World Class partners. 33

34 AUTO PARTS Product Line: Friction materials. Product Line: Chubs, drums, axles and suspension systems. 34

35 AUTO PARTS Product Line: Brakes for commercial vehicles. Product Line: Articulation Systems, Fifth-wheel, King-Pin and landing gear. 35

36 AUTO PARTS Product Line: Cast iron. 36

37 FINANCIAL SERVICES Product Line: Operates throughout the country through renowned partners in the sectors of automobiles sectors of automobiles, real estate, trailers/semi-trailers, trucks, buses, minibuses, agricultural machinery and implements. Product Line: Lines of financing for customers and suppliers. 37

38 Expansion Plan Our ambition stay the same; We are committed to provide a constantly updated view of these subjects. 38

39 Thank you! Investor Relations