PLASCAR ANNOUNCES RESULTS FOR JUNE 30, 2016.

Transcription

1 (A free translation of the original in Portuguese) PLASCAR ANNOUNCES RESULTS FOR JUNE 30, Stock Quote (6/30/2016) PLAS3 - R$ 2.70 (*) Market Value at 3/31/2016 (MARKET CAP BOVESPA) R$ 13.4 million Number of Shares (*) Common: 4,970 M Investor Relations Av. Mackenzie, º andar Vila Brandina Campinas-SP - CEP Board of Directors Stephen J. Toy André C. do Nascimento Andrew C. de Araújo Edson F. Menezes Luiz Orlando C. Novaes Supervisory Board Adauto Martins Costa Mauro Cesar Leschziner Charles Dimetrius Popoff Website: Campinas, SP, August 1, 2016 Plascar Participações Industriais S.A. (Bovespa: PLAS3), Brazil s market leader for interior and exterior finishing parts of light and heavy automotive vehicles, operating as an original equipment manufacturer (OEM), and supplying carmakers in Latin America and MERCOSUR and exporting to Argentina, Mexico, USA, Australia and Europe, announces its results for the first half-year of The Company s financial and operating information is consolidated, unless otherwise stated, and the monetary amounts are expressed in Brazilian reais. Company performance table for the 1st Half-year of 2016: Negative EBITDA of R$ 54.2 million (-34.1% margin). Net Revenue of R$ million. Negative Gross Margin of 23.7% (R$ 37.7 million). Plascar Performance for the period Amounts in thousands of R$ 1H16 1H15 Variation - % Gross sales 206, , % Net revenue , % Gross profit (loss) (37,691) 27, % Gross margin - % (23.7%) 10.8% -34.5p.p. EBITDA (54,232) 13, % EBITDA margin - % (34.1%) 5.4% -39.5p.p. IR Contact Person Gordiano Pessoa Filho Finance and Investor Relations Officer gordiano.pessoa@plascargroup.com Telephone: (19) (19) Net loss (133,844) (51,855) % (*) At the Extraordinary General Meeting held on September 15, 2015, the stockholders approved a 1-for-50 reverse stock split. 1

2 History The Company started its activities in October 1963 in the city of Jundiaí, state of São Paulo, in the rubber products segment. In 1973, the Company entered the automotive industry and, in the mid-80s, after several mergers, the Company gave a significant boost to its subsidiaries, through a growth and modernization program, and became a market leader in plastic parts for the automotive industry. Ownership Structure The controlling interest in Permali do Brasil Indústria e Comércio Ltda., which currently owns 46.09% of the Company s share capital, is held by a joint venture formed in 2005 between WL Ross & Co., LLC (75.7%) and Franklin Mutual Advisers, LLC (24.3%), with headquarters in Delaware, United States. Legal Structure - PLASCAR Other stockholders 2

3 Operating performance According to data provided by the National Association of Motor Vehicle Manufacturers (ANFAVEA), sales fell 25.4% in the first half-year of 2016 compared to the same period last year. Vehicle production dropped 21.2% in the first half-year of 2016 as compared to the same period in 2015 (source: ANFAVEA). The Company s net revenue drop was 37.4% in the periods compared, being translated into a negative gross margin of 23.7%. SOURCE: ANFAVEA BRAZIL Variation AUTOMOTIVE SCENARIO 1H15 1H16 % VEHICLE PRODUCTION 1,290 1, % VEHICLE SALES 1, % Vehicle Production: return to the levels of 2004 Vehicle production is stand still as a result of the slow pace of the domestic market. ANFAVEA, the association that represents the manufacturers of the industry, disclosed the results for the first six-month period of Between January and June, 1.01 million automobiles, light commercial vehicles, trucks and buses were assembled. The volume is 21.2% lower than in the same prior-year period and the lowest for the first half of a year since June presented a decrease of 3% as compared to the same month in 2015 and a slight growth of 4.2% in comparison with May. However, that growth is not considered by ANFAVEA as an indication of recovery. It occurred due to the conjuncture at that time, it is not a significant evolution, recognizes Antonio Megale, the president of ANFAVEA. According to him, in addition to the negative effect resulted from the market decrease, last month's production also suffered the impact of the stoppage of some plants due to lack of components, such as Volkswagen, which had the supply of seat parts interrupted by companies of the Prevent Group. Among the segments, the segment of heavy vehicles is still having the most severe decrease in the pace of the plants. The highest reduction has been recorded in the bus production at 33.4% in the first six-month period, only 9.2 thousand chassis. With 31.3 thousand units, Brazil's truck segment shrank 24.8%. Great Volume of Inventories and Excess of Labor The efforts of the carmakers to lessen the volume of inventories start to have some result. Finally, the volume of vehicles stored returned to the volume of less than 40 days sales. The segment ended June with thousand units in stock in the plants and car dealers, with a decrease of 4% in the monthly comparison for a volume equivalent to 39 days of licenses. It is still above what we consider ideal, but companies are making efforts to adjust it", emphasizes Megale. The executive points out that the employment level in the assembly plants remained steady, with thousand workers and a slight negative variation of 0.2% as compared to May. The number of employees is 6.7% lower than the number referring to June last year. ANFAVEA calculates that 26 thousand employees remain in the flexible working hours system, such as Layoff and PPE, the Employment Protection Program. Megale says that, of the 25 companies that ANFAVEA consulted, 16 downsized their staff, but nine hired to be able to serve the increase in export orders. Increased Idle Capacity While the level of production reduced to the level of 12 years ago, the level of employment is equivalent to that recorded in The association indicates that, up to 2015 the number of employees has always been lower than the level of production. We adopted the flexibility to manufacture more, adopting resources such as overtime, increase in shifts and operation during the weekend, he reminds. 3

4 ANFAVEA maintains the projections reviewed in last month. The expectation is that the production of vehicles will decrease 5.5% in 2016, to 2.29 million of units. In order to reach such volume, it will be necessary to reduce the pace of decrease over the next months, since the result for the first six-month period shows a very much stronger decrease. The industry intends to rely on exports to improve this level. Even if the results reach in the slighter decrease forecast by ANFAVEA, the idle capacity will remain high, approximately 55%. The entity estimates that the plants of vehicles installed in Brazil have potential to manufacture 5 million vehicle per annum. PLASCAR Gross revenue 1st half-year of 2016 R$ 206,349 1st half-year of 2015 R$ 331,834 Difference (%) -37.8% PLASCAR Net revenue 1st half-year of 2016 R$ 158,892 1st half-year of 2015 R$ 253,631 Difference (%) -37.4% Net revenue (in R$ thousand) 253, , ,675 16/ % 76,874 16/ % 2Q15 2Q16 1H15 1H16 4

5 Breakdown of net revenue for the 1st half-year of R$ 253,631 thousand Breakdown of net revenue for the 1st half-year of R$ 158,892 thousand 42,756 17% 22,959 9% 11,012 4% 24,125 15% 9,820 6% 4,575 3% 52,436 21% 124,468 49% 80,174 51% 40,198 25% Bumpers Dash panels Door trim panels Headlights Other Gross profit (loss) vs. Gross margin % In the first half of 2016, gross margin was negative by 23.7 versus 10.8% in Amounts in thousands of reais R$ 253,631 R$ 158,892 R$ 118,675 R$ 76, % R$ 7,488 R$ 27, % 2Q15 2Q % 1H15 1H % R$ (25,704) R$ (37,691)... Net revenue Gross profit (loss) Gross profit (loss) % 5

6 EBITDA in R$ vs. EBITDA% EBITDA in the 1st half-year of 2016 was negative by R$ 54.2 million. EBITDA margin was negative 34.1% in the 1st half-year of 2016 versus 5.4% in % R$ 13,732 R$ % 2Q15 2Q16 1H15 1H % -34.1% R$ (34,045) R$ (33,606) R$ (51,855) R$ (54,232) R$ (74,108) R$ (133,844) EBITDA (in R$ thousand) x EBITDA Margin % Net Loss (in R$ thousand) Net loss was R$ 133,844 thousand in the 1st half-year of 2016 versus R$ 51,855 in the same period of Human Resources Despite the economic hardships that the country has faced, the Company continues to invest in the professional development of its employees, with approximately 108,15 hours of coaching and training per employee (in the last 12 months), focused on National Service for Industrial Training (Senai) learning, internships and high school equivalence programs, as well as technical and operational development training. At June 30, 2016, the Company had 2,114 employees (3,133 at June 30, 2015). 6

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