3Q18 Presentation Classification of Information Grupo de Acesso:

Transcription

1 3Q18 Presentation Classification of Information Grupo de Acesso: Public

2 2 AGENDA Usiminas Profile Market Outlook Usiminas and its business units Financial Results

3 3 COMPANY PROFILE Complete solution for products and services Steel company with the largest number of patents rights in Latin America Largest Research Center in the steel sector in Latin America First Brazilian steel company to have its quality system certified by ISO 9001 in 1992 First Brazilian steel company and second in the world to achieve the ISO environmental management certificate in 1996 Founded of the most enduring environmental education project of the private sector since 1984

4 4 TIMELINE Operation Start Up Cosipa privatization Listing on LATIBEX stock exchange section Creation of Soluções Usiminas One CNPJ: Usiminas incorporates Cosipa Selling of Ternium stake Joint Mining Agreements with MBL e Ferrous Automotiva Usiminas Divestment Temporary shutdown of the primary areas in Cubatão R$ 1 billion Mineração Usiminas capital reduction Usiminas privatization Listing on BOVESPA Launch of ADR I program on the OTC Market (New York) Acquisition of iron ore mines Acquisition of Zamprogna Creation of Mineração Usiminas Acquisition of Codeme and Metform stake Entrance of Ternium / Tenaris into Usiminas Control Group (New shareholders agreement) Friables Project conclusion on Mining R$ 1 billion capital increase Debt Renegotiation BF #1 Relight in Ipatinga (Shutted down in Jun. 2015)

5 5 SHAREHOLDING COMPOSITION Controllers Agreement Voting Capital Total Capital 1,253,079,108 Control Group: 68,57% of Voting Capital Preferred ON 56.28% 705,260,684 PN 43.72% 547,818,424 Nippon Group 0.95% Nippon Group 0.57% Ternium/Tenaris Group 1.79% Others 23.19% Nippon Group 31.45% Ternium/Tenaris Group 7,29% Ternium/Tenaris Group 32,28% Usiminas Pension Fund 4.84% Others 97.64% Usiminas shares are traded on B3 (São Paulo), on the OTC Market (New York) and on a LATIBEX exchange section (Madrid).

6 6 COMPLETE SOLUTION FOR PRODUCTS AND SERVICES Business Units Steel Processing Capital Goods Steel Soluções Usiminas Usiminas Mecânica Ipatinga Plant Mining Cubatão Plant Unigal Usiminas Mineração Usiminas UPSTREAM DOWNSTREAM

7 7 STRATEGICALLY LOCATED Mining Steel Steel Processing Capital Goods

8 8 SOCIAL AND ENVIRONMENTAL INITIATIVES Usiminas Cultural Institute Usiminas invested over R$260 million, encouraging around 2,000 social projects São Francisco Xavier School First educational institution in Brazil to obtain ISO 9001 Márcio Cunha Hospital Reference center in healthcare all over Brazil Xerimbabo Usiminas Project Promotes protection and environmental education free of charge for more than 2 million young people

9 SHARES QUOTATION ON B3 R$/share - Up to 09/30/ Q18 USIM3 USIM5 Note: The prices are adjusted by removing the effects of events such as Bonus and Unfolding 9

10 10 AGENDA Usiminas Profile Market Outlook Usiminas and its business units Financial Results

11 WORLD CRUDE STEEL MARKET IN 2017 Million Tons China Japan India USA 81.6 Russia 71.3 South Korea 71.1 Germany 43.3 Nominal Excess of Capacity 661 Turkey Brazil Italy Capacity 2,351 Production 1,690 Source: World Steel Association/OECD 11

12 WORLD CRUDE STEEL PRODUCTION % 2% 9% 1% 6% 3% 3% 4% China 7% 36% Asia and Oceania 10% European Union North America 10% 49% South America Europe (others) 16% Africa Others 22% 22% +25% 1,348 million tons 1,690 million tons *Except China Source: World Steel Association 12

13 BRAZILIAN FLAT STEEL MARKET Million Tons 22% 7% 11% 14% 13% 12% 15% 15% 8% 13% Production Consumption Imports Source: Instituto Aço Brasil / Usiminas Excludes Slabs 13

14 14 FLAT STEEL CONSUMPTION MARKETS Auto Industry and Autoparts Household Appliances Agricultural and Road Machinery Civil Construction Oil and Gas Pipelines Hot Rolled, Cold Rolled and Galvanized Cold Rolled and Galvanized Heavy Plates and Hot Rolled Heavy Plates, Hot Rolled, Cold Rolled and Galvanized Heavy Plates and Hot Rolled Heavy Plates and Hot Rolled

15 15 AGENDA Usiminas Profile Market Outlook Usiminas and its business units Financial Results

16 Vendas de Aço Siderurgia - Trimestral SALES VOLUME- STEEL Thousand tons- Quarterly 1, ,090 1, % 1, Highest Sales Volume since 4Q % +3% % % 992 3Q17 4Q17 1Q18 2Q18 3Q18 Exports Domestic Market 16

17 EXPORTS MAIN MARKETS Quarterly - % 2Q18 3Q18 10% 1% 1% 4% 4% 1% 34% Argentina Colombia Canada Mexico Germany 16% 0% 3% Portugal 11% 4% 25% 2% 3% Spain Belgium United Kingdom Vietnam Italy France 18% 63% Others Europe: 56% Europe: 0% 17

18 18 COST OF GOODS SOLD COGS - STEEL Steel Business Unit Quarterly - % 2Q18 3Q18 Other Raw Materials -15% 3% 6% 9% 45% Coal and Coke Labor (direct and indirect) Energy and Fuels Iron Ore and Pellets 6% 0% 9% 2% 5% 38% 7% Spare Parts 8% 9% 9% 12% 15% Depreciation Structural Expenses Inventories Variation 8% 10% 13% Others Note: New consolidation methodology from 1Q18.

19 EBITDA AND EBITDA MARGIN - STEEL Quarterly - R$ Million 18.9% 17.2% 14.7% 16.1% 16.8% Best EBITDA since 2Q10 3Q17 4Q17 1Q18 2Q18 3Q18 Reported EBITDA Reported EBITDA Margin * *Extraordinary negative effect of R$ 62 million, due to the provision of the RS Government related to assessment ICMS credit appropriation. 19

20 20 INVESTMENTS - STEEL Steel Business Unit Heavy Plates Hot dip galvanized Electrogalvanized Slabs Hot Rolled Cold Rolled Capacity increase to generate finished products 7.2 million t 9.7 million t (2010) (2014)

21 21 THEORETICAL NOMINAL CAPACITY * OF PRODUCTION AND SALE Thousand Tons Crude steel capacity of 9.5 million tons, being 5 million tons in Ipatinga and 4.5 million in Cubatão, which had the operation of its crude steel production temporarily suspended and currently processes purchased slabs. Galvanized Heavy Plates Hot Rolled Cold Rolled Electrogalvanized HDG Total Total production capacity of products for sale 1,900 4,200 2, ,020 9,670 Generation of products for sale with the equipment in operation ** 900 2,070 2, ,620 * According to the theoretical mix of sales in the implementation of the line; ** Excluding the temporarily suspended capacities of Heavy Plates and Hot Strip Laminator #1 in Cubatão.

22 22 INVESTMENTS - STEEL Steel Business Unit CLC Technology (Accelerated Cooling Process for Heavy Plates) Start up in 2010 Meets the requirements of Petrobras, focused on presalt, besides the shipbuilding sector Galvanizing Line Start up in 2011 Double the capacity to 1 million tons /year Higher expertise in ultraresistant steel production (dual phase)

23 23 INVESTMENTS - STEEL Steel Business Unit Hot Strip Mill Start up in 2012 Capacity to process 2.3 million tons / year Improving products portfolio (beams, ultra resistant wheels, higher grades API s) Pickling Line Start up in 2013 Capacity to process 1.7 million tons / year Better thickness tolerance, flatness and surface controls of materials for wheels, beams and compressors

24 24 MAINLY INVESTMENT CONCLUDED IN STEEL Steel Business Unit Coke Plant Revamp - Ipatinga o Met coke with adequate specifications for pig iron production in the blast furnace process o Reduction of particle emissions, gases and volatile substances o Coke gas to be used in the operational facilities of Ipating Mill and electric energy production o Coke plant total capacity of 1,1 million tons/year o Started up on May 2015

25 25 DESCRIPTION MINERAÇÃO USIMINAS Mining Business Unit o Located in Serra Azul/Minas Gerais state o 4 mining sites, acquired from J. Mendes in February, 2008 o Reserves of 2.6 billion tons of iron ore o It has 20% of voting shares of MRS Logistica, being part of the Control Group o Retroarea in Itaguaí Port Shareholder Composition Production Capacity 70% 30% Lump 2 million Sinter Feed 4 million Pellet Feed 6 million

26 26 LOCATION MINERAÇÃO USIMINAS Mining Business Unit Igarapé São Joaquim De Bicas Minerita MUSA Central MUSA Leste MMX MUSA Pau de Vinho MUSA Oeste Arcelor Mittal Ferrous (Santanense) Comisa Emicon Ferrous MBL Itatiaiuçu Mineração Usiminas

27 27 INVESTMENTS MINERAÇÃO USIMINAS Mining Business Unit Friables Project Increased capacity from 8 million to 12 million tons / year of iron ore Iron ore with better quality, higher concentration of iron content and lower impurity level Two iron ore processing plants

28 IRON ORE SALES MINERAÇÃO USIMINAS Mining Business Unit - Thousand tons- Quarterly 1,806 1,768 1, % 1,084 1, Q17 4Q17 1Q18 2Q18 3Q18 Sales to Usiminas Sales to 3rd parties - Domestic Market Exports Total 28

29 IRON ORE PRICE PLATTS (62% FE CFR CHINA) US$/ton - Quarterly Q17 4Q17 1Q18 2Q18 3Q18 Iron Ore Price - US$/t CFR China 29

30 EBITDA AND EBITDA MARGIN MINERAÇÃO USIMINAS Mining Business Unit Quarterly - R$ Million 26.3% 21.9% 20.1% 19.5% 16.5% Q17 4Q17 1Q18 2Q18 3Q18 Reported EBITDA Reported EBITDA Margin 30

31 31 DESCRIPTION SOLUÇÕES USIMINAS Steel Processing o o o 6 industrial units in different Brazilian states: MG, SP, RS, ES and PE Processing capacity of 2 million tons of steel/year Net Revenue of R$2.4 billion in 9M18 Suape Santa Luzia Betim Taubaté Guarulhos Porto Alegre

32 EBITDA AND EBITDA MARGIN SOLUÇÕES USIMINAS Steel Transformation Quarterly - R$ Million 4.8% 4.1% 4.3% 2.7% 2.8% Best EBITDA since 2Q Q17 4Q17 1Q18 2Q18 3Q18 Reported EBITDA Reported EBITDA Margin 32

33 33 DESCRIPTION USIMINAS MECÂNICA Capital Goods o o o Facilities in Ipatinga/Minas Gerais state, Congonhas/Minas Gerais state and in Cubatão/São Paulo state Market Segments: Steel Structures, Shipbuilding and Offshore, Oil and Gas, Industrial Assembly and Equipment, Foundry and Railcars Net Revenue of R$286 million in 9M18 Steel Structures Brasília 3rd Bridge

34 EBITDA AND EBITDA MARGIN USIMINAS MECÂNICA Capital Goods Quarterly - R$ Million 28.9% 33 (25) (2) -4.3% (20) (20) -19.6% -27.6% -34.6% * 3Q17 4Q17 1Q18 2Q18 3Q18 Reported EBITDA Reported EBITDA Margin *Extraordinary negative effect of R$ 22 million, related to Regularize Program. 34

35 35 AGENDA Usiminas Profile Market Data Usiminas and its business units Financial Results

36 EBITDA AND EBITDA MARGIN - CONSOLIDATED Quarterly - R$ Million 19.8% 18.2% 16.5% 16.2% 14.6% Best EBITDA since 3Q10* ** 3Q17 4Q17 1Q18 2Q18 3Q18 *** Reported EBITDA Reported EBITDA Margin * Excluding the effect of the Porto Sudeste Agreement in 2Q17. ** Extraordinary negative effect of R$ 40 million negative, related to Regularize Program. ***With extraordinary negative effect of R$ 62 million, due to the provision of the RS Government related to assessment ICMS credit appropriation. 36

37 37 DEBT PROFILE (PRINCIPAL) Consolidated Quarterly - R$ millions Duration: R$: 46 months US$: 52 months 1, ,128 1,126 1,125 1, , Cash Local Currency Foreign Currency

38 CASH POSTION AND INDEBTEDNESS (WITH INTEREST) CONSOLIDATED Consolidated Quarterly - R$ millions 6,860 6,656 Duration : R$: 46 months US$: 52 months 5,680 5,843 5,893 4,722 4,342 4,117 4,739 4,211 2,138 2,314 1,563 1, Mi 1,682 3Q17 4Q17 1Q18 2Q18 3Q18 Net Debt Cash Gross Debt 38

39 CAPEX CONSOLIDATED Consolidated Quarterly - R$ millions Q17 4Q17 1Q18 2Q18 3Q18 Steel Capital Goods Steel Transformation Mining Total 39

40 G&A EVOLUTION - CONSOLIDATED R$ million - Quarterly 3.9% 3.5% 3.2% 3.5% 2.6% -11% Q17 4Q17 1Q18 2Q18 3Q18 G&A G&A/Net Revenues 40

41 41 WORKING CAPITAL - CONSOLIDATED R$ billions - Quarterly -5.4% Q17 4Q17 1Q18 2Q18 3Q18

42 WORKING CAPITAL: STEEL INVENTORIES Thousand tons - Quarterly % Q17 4Q17 1Q18 2Q18 3Q18 Inventory turnover (days) Slabs Products in progress Finished Products 42

43 GROSS PROFIT, EBIT AND NET INCOME CONSOLIDATED R$ million - Quarterly (45) (19) 3Q17 4Q17 1Q18 2Q18 3Q18 USD/BRL END OF PERIOD Gross Profit EBIT Net Income 43

44 INCOME STATEMENT PER BUSINESS UNIT R$ million - Quarterly Income Statement per Business Units - Non Audited - Quarterly R$ million Mining Steel* Steel Processing Capital Goods Adjustment Consolidated 3Q18 2Q18 3Q18 2Q18 3Q18 2Q18 3Q18 2Q18 3Q18 2Q18 3Q18 2Q18 Net Revenue , , (898.1) (793.8) 3, ,204.1 Domestic Market , , (898.1) (793.8) 3, ,656.3 Exports COGS (209.7) (140.2) (2,883.2) (2,389.8) (875.3) (721.1) (83.9) (111.0) (3,217.2) (2,621.3) Gross Profit (Loss) (12.9) (9.5) (63.2) (52.9) Operating Income (Expenses) (53.4) (58.4) (202.0) (285.5) (25.4) (20.0) (11.4) (15.2) (291.0) (373.7) Selling (23.9) (19.1) (36.2) (39.0) (10.6) (11.2) (2.5) (3.2) (1.1) (1.1) (74.3) (73.7) General and Administrative (6.1) (7.0) (76.4) (85.1) (13.7) (14.7) (8.3) (9.5) (101.0) (112.9) Others, Net (23.4) (32.4) (89.4) (161.4) (1.1) 5.9 (0.7) (2.5) (1.0) 3.2 (115.6) (187.2) EBIT (24.3) (24.7) (61.9) (47.4) Adjusted EBITDA (19.6) (19.9) 21.5 (2.4) Adj.EBITDA Margin 26.3% 16.5% 16.8% 16.1% 4.3% 4.8% -27.6% -19.6% -2.4% 0.3% 18.2% 16.2% *Consolidated 70% of Unigal Note: All intercompany transactions are made at arm s length basis 44

45 INCOME STATEMENT PER BUSINESS UNIT R$ million 9M Income Statement per Business Units - Non Audited - Semi-annually R$ million Mining Steel* Steel Processing Capital Goods Adjustment Consolidated 9M18 9M17 9M18 9M17 9M18 9M17 9M18 9M17 9M18 9M17 9M18 9M17 Net Revenue , , , , (2,519.1) (1,947.7) 10, ,657.3 Domestic Market , , , , (2,519.1) (1,947.7) 8, ,707.2 Exports , , COGS (528.5) (189.2) (7,733.1) (6,117.7) (2,252.4) (1,699.4) (268.7) (223.8) 2, ,793.4 (8,470.6) (6,436.7) Gross Profit (Loss) , , (206.9) (154.3) 1, ,220.6 Operating Income (Expenses) (168.2) 58.7 (683.1) (492.9) (71.5) (71.9) (38.2) (59.2) (953.2) (562.3) Selling (68.3) (13.3) (111.9) (119.9) (31.7) (34.8) (8.9) (9.3) (3.4) (3.5) (224.2) (180.8) General and Administrative (19.3) (16.5) (239.3) (225.0) (41.7) (39.9) (26.5) (24.1) (316.7) (295.9) Others, Net (80.6) 88.5 (331.9) (148.0) (2.9) (25.8) 1.1 (3.0) (412.3) (85.6) EBIT (21.1) (46.1) (199.0) (151.2) Adjusted EBITDA , , (6.8) (31.2) (18.7) (20.9) 1, ,735.4 Adj.EBITDA Margin 21.5% 95.3% 17.3% 19.4% 4.4% 4.5% -2.4% -13.2% 0.7% 1.1% 18.1% 22.7% Consolidated 70% of Unigal Note: All intercompany transactions are made at arm s length basis 45

46 B3 ADR Nível I Leonardo Karam Rosa IR Manager leonardo.rosa@usiminas.com Tel: Danielle Ap. Maia IR Analyst danielle.aparecida@usiminas.com Tel: Felipe Gabriel P. Rodrigues IR Analyst f.gabriel@usiminas.com Tel: Declarations relative to business perspectives of the Company, operating and financial results and projections, and references to the growth of the Company, constitute mere forecasts and were based on Management s expectations in relation to future performance. These expectations are highly dependent on market behavior, on Brazil s economic situation, on the industry and on international markets, and are therefore subject to change.

47 Investors Relations