INSTITUTIONAL PROFILE 4Q

Transcription

1 INSTITUTIONAL PROFILE 4Q

2 SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements are based on Management's beliefs and assumptions, as well as on currently available information. Forward-looking statements include information on our current intentions, beliefs or expectations, as well as those of the Company s Board of Directors and Board of Executive Officers. The reservations as to forward looking statements and information also include data on possible or presumed operating results, as well as any statements preceded, followed or including words such as believes, may, will, expects, intends, plans, estimates or similar expressions. Forward-looking statements are not performance guarantees; they involve risks, uncertainties and assumptions because they refer to future events and, therefore, depend on circumstances which may or may not occur. Future results may differ materially from those expressed or suggested by forward-looking statements. Many of the factors which will determine these results and figures are beyond our ability to control or predict. 2

3 RANDON PROFILE Foundation 1949 IPO 1974 Employees 10,714 Market Cap R$ 2.9 bi LEADERSHIP COMPETITIVENESS GROWTH RECOGNITION leader in the 4th biggest automotive market in the world; among the 10 biggest manufacturers of trailers; leader in Brazil in all auto parts produced by the Company. complementary products and integrated industrial parts; Traditional partnerships and worldwide exposure; Regular investments in R&D. present in all Brazilian economy sectors; international exposure through exports and foreign operations. one of the most respected brands in transportation in Latam; one of the main suppliers in the Brazilian commercial vehicles chain. 3

4 RANDON PROFILE VEHICLES AND TRAILERS Among the 10 biggest manufacturers of road equipment in the world; Second major manufacturer of railcars in Brazil; The largest Brazilian manufacturer of specialty vehicles of up to 30 tons; One of the biggest manufacturers of backhoe loaders in Brazil. AUTO PARTS 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 brakes, axles and suspension systems and coupling components for commercial vehicles. FINANCIAL SERVICES One of the biggest consortium companies for commercial vehicles in Brazil; In-house bank to finance clients and suppliers. 4

5 RANDON PROFILE OPERATING STRUCTURE 5

6 RANDON PROFILE GOVERNANCE Board of Directors Alexandre Randon Chairman Hugo E. I. Ferreira Vice Chairman Derci Alcântara Board Member Pedro Ferro Neto Board Member Ruy Lopes Filho Board Member Tag Along 80.0% Executive Committee David Abramo Randon CEO Alexandre Gazzi COO Vehicles and Trailers Daniel Raul Randon Vice-President Director Sergio L. M. de Carvalho COO Auto Parts Paulo Prignolato CFO Free Float 57.2% Total Shares 345,775,809 RAPT3 116,515,527 RAPT4 229,260,282 6

7 RANDON PROFILE CORPORATE STRUCTURE 7

8 VEHICLES AND TRAILERS TRAILERS RAIL CARS SPECIALTY VEHICLES 8

9 VEHICLES AND TRAILERS SEMI-TRAILERS MARKET CHARACTERISTICS Fragmented base of clients Strong distribution dealers in all main markets; Import barriers Logistics costs, regulation, import tax and financing; Exposure to all economic segments Direct relation with Brazilian GDP; Concentrated Exports Latam and African markets. Sales by Sector 2018 Industrial 38.0% Trailers Sold (units) 4Q18 4Q17 Δ% 6,061 4, % Δ% 20,960 13, % Distribution Network 90 dealers in Brazil Exports to more than 30 countries Exports by Continent 2018 South and Central America 18.4% Mining 4.6% Agribusiness 57.3% Africa 8.1% Others 0.9% Mercosur + Chile 72.6% 9

10 VEHICLES AND TRAILERS SEMI-TRAILERS LEADER IN BRAZIL Data from the last 12 months 2,390 2,776 3,488 3,475 3,537 3,714 3,979 4,720 3,651 4,187 4,567 4,105 39% 37% 35% 46% 37% 41% 39% 42% 37% 37% 35% 35% 933 1,017 1,222 1,587 1,322 1,506 1,552 1,989 1,333 1,564 1,600 1,430 jan/18 feb/18 mar/18 apr/18 may/18 jun/18 jul/18 aug/18 sep/18 oct/18 nov/18 dec/18 Randon Domestic Market Randon Market Share Quarterly Comparative LTM Comparative 26.8% 28.5% 37.0% 43.2% 35.9% 26.9% 26.2% 29.1% 40.4% 38.3% 4Q14 4Q15 4Q16 4Q17 4Q

11 VEHICLES AND TRAILERS SEMI-TRAILERS LEADER IN BRAZIL Size of Market (Units Sold Brazil) Competitors 40,493 59,284 59,435 52,537 70,161 56,452 29,620 23,075 24,927 44,589 Others Noma Sergomel Librelato Facchini 11

12 VEHICLES AND TRAILERS RAILCARS Railcar Production 5,616 4,608 4,703 2,888 3,903 45% 2,878 2,327 32% 30% 2,105 40% 26% 3,256 1,300 30% 29% 29% 16% 15% Total Market Randon Market Share Railcars Sold (units) MARKET CHARACTERISTICS Concentrated Base of Clients Large industries or railway companies. Long order-to-delivery cycle Long commercial/industrial operation (price negotiation, contracts, volumes, deliveries in several months). Transportation A great part of the products are destined to the foreign market. The loads transported by one railcar are equivalent to that of three semitrailers in average. 4Q18 4Q17 Δ% % Δ% % National Fleet: 120,000 (Source: RF) PRODUCTS BY SECTOR Primary sector Hopper, Gondola and Forestry railcars; Industry Platform, Telescopic, Tanker, Coil and Sider railcars. 12

13 VEHICLES AND TRAILERS SPECIALTY VEHICLES 25 dealers in Brazil Specialty Vehicles MARKET (units) 4Q18 4Q17 Δ% ACTIVITY Development, manufacturing, sale and technical assistance. PRODUCTS Off-road and articulated trucks; backhoe loaders; mini loaders; parts and components. *Market Share % % Δ% % *Average age of fleet 10 years Source: Abimaq *National Fleet Source: Abimaq *Backhoe Loaders Construction and Mining Industries Civil Construction; Lessors; Public Bodies; Agriculture. NEW PRODUCT Mini Loader Multipurpose machine, used for lifting, moving and pilling materials efficiently. 13

14 OVERVIEW 4Q18 VEHICLES AND TRAILERS VEHICLES AND TRAILERS MARKET SHARE 4Q18 OTHERS 20.3% LIBRELATO 14.4% RANDON 35.9% NOMA 5.3% FACCHINI 24.5% The definition of the elections reinforced the good volumes of the sector in 4Q2018; 12,796 units of trailers were sold in the Brazilian market (+ 68.3% over 4Q2017); During the quarter, 4,594 Randon trailers were sold in Brazil; The extended delivery time of trailers pressured the Company's market share down to 35.9% in 4Q2018; This was the best quarter of the year in exports of trailers to Randon. 14

15 OVERVIEW 4Q18 VEHICLES AND TRAILERS RAILCARS The railcar market presented another quarter of low volumes, reflecting the delay in the renewal of the railway concessions; In 4Q2018, Randon sold 70 wagons, down from 328 units in the same period last year (-78.7%). SPECIALTY VEHICLES The infrastructure sector starts to show a slight recovery, which has contributed to the beginning of the resumption of the sector of machines and equipment for construction; In 4Q2018, 95 products were sold, an increase of 41.8% over 4Q2017 (67 units). 15

16 VEHICLES AND TRAILERS PERFORMANCE 4Q Consolidated Net Revenue (R$ million) Exports (US$ million) +51.6% 1, % % 1, % Q17 4Q Consolidated EBITDA EBITDA Margin (R$ million) 4Q17 4Q Investments (R$ million) 8.4% % % % 4.6% % Q17 4Q Q17 4Q

17 AUTO PARTS 17

18 AUTO PARTS SALES BY SEGMENTS 2018 SEGMENTS MARKET CHARACTERISTICS Exports 26% Aftermarket 24% OEM 49% OEM (Original Equipment Manufacturer) Commercial vehicles trucks, buses and trailers Aftermarket Replacement parts. Diversified base of clients Customer segmentation from OEM to aftermarket and exports; Moderated imports Engineering partnership, import tax and financing; Exposure to all economic segments Direct relation to OEM production and the GDP; Exports Parts for OEMs abroad as well as for the international aftermarket Concentrated Exports Mainly USA, Argentina and Colombia Brake pads and shoes. Axle and suspension systems. Air brakes for commercial vehicles. Articulation Components, 5th wheel, king pin, and landing gears. Light and heavy cast iron parts and hubs and drums sets. 18

19 AUTO PARTS LEADER IN BRAZIL Auto Parts Market Share 82.0% 86.7% 92.0% 93.0% 96.0% 53.9% 52.9% 50.0% 52.0% 46.0% 48.0% 43.0% 42.0% 43.4% 45.0% 50.0% 37.0% 56.0% 46.0% 54.0% Fifth Wheel (OEM) Air Brakes (OEM) Brake Shoes (Aftermarket) Axles and Suspensions (OEM) Main Competitors Brakes Knorr (Germany) Brazil/SP Wabco (USA) Brazil/SP Captive Market (MBB, Scania, Guerra and Silpa) Suspensions and Axles KLL/ SAF Holland Brazil/SP Ibero Brazil/SP Hendrickson (USA) BPW (Germany) Fuwa (China) Captive Market (Facchini, Noma and Guerra) Coupling Systems Fontaine Brazil/PR GF George Fischer (Switzerland) Fuwa (China) Friction Material Cobreq (TMD) Brazil/SP Duroline Brazil/RS SYL Brazil/SP TRW (EUA) Brazil/SP Brakeparts Brazil/SP 19

20 AUTO PARTS VOLUMES 4Q18 4Q Δ% Un. Un. % CNR Un. % CNR Un. % CNR Un. % CNR Friction Material (un.)(*) 24, % 17, % 45.1% 101, % 70, % 44.1% Brakes (un.) 155, % 121, % 27.6% 613, % 479, % 28.0% Coupling Systems (un.) 30, % 20, % 51.3% 119, % 74, % 60.1% Suspension and axles (un.)(**) 8, % 4, % 65.4% 30, % 19, % 61.4% Hubs and drums (un.)(**) 105, % 92, % 14.3% 436, % 365, % 19.5% Δ% Un. (*) As of 1Q2018 the volumes of friction material were reported in units instead of tons, unifying the unit of measure. (**) Suspensions, hubs and drums volumes were reclassified in order to facilitate the market monitoring of Suspensys and Castertech companies after the migration to the new business model in January To see the updated volumes history check our website: ri.randon.com.br/en Own proving ground Focus on client Constant Innovation Exports to more than 100 countries Joint Ventures with world class partners Plants and distribution centers in Brazil and abroad 20

21 AUTO PARTS OVERVIEW 4Q2018 FRICTION AND AUTO PARTS Sales of friction materials grew by 45.1% in 4Q2018 compared to the same period last year; These products also accounted for 71.5% of Fras-le s total sales in the quarter; Sales volumes in Argentina decreased in the period, due to the economic situation in that country; In 4Q2018, the acquisition of Fremax, which operates in the aftermarket, was completed. Around 30% of its revenues from the foreign market. 21

22 AUTO PARTS OVERVIEW 4Q2018 AXLES AND SUSPENSIONS Sales of axles and suspensions increased by 65.4% in 4Q2018 compared to 4Q2017; Launch of the new NG axle beam, with innovative production process and lighter than previous models. COUPLING SYSTEMS The coupling systems presented an increase of 51.3% in 4Q2018 sales compared to the same period of the previous year; Launch of the fifth wheel with automated opening and coupling sensor. Note: For more information about this product, access the QR code on the right BRAKE SYSTEMS 155,411 brake systems were sold in 4Q2018, a 27.6% increase compared to 4Q2017; Increase in volumes of disc brakes sent to the North American market. WHEEL END The volumes of hubs and drums sold in 4Q2018 were 14.3% higher than the last quarter of 2017; Startup of the new robotic machining cell for hubs. 22

23 AUTO PARTS PERFORMANCE Consolidated Net Revenue (R$ million) Exports (US$ million) +43.2% 2, % , % +14.1% Q17 4Q Q17 4Q Consolidated EBITDA EBITDA Margin (R$ million) Investments (R$ million) 12.2% 11.4% 14.6% % % +29.1% Q17 4Q Q17 4Q

24 FINANCIAL SERVICES 24

25 FINANCIAL SERVICES PERFORMANCE 4Q It is among the leaders in cooppayment plans for commercial vehicles and real estate SEGMENTS: Trailers Real estate and vehicles Machinery and Equipment Minibus Light and heavy trucks Coop-Payment Plan Quotas Sold 4Q2018 4Q2017 Δ% Δ% 4,586 3, % 14,306 13, % 28 Thousand Customers Quotas Commercialized 201 thousands Accrued Active Quotas Administration Fee 62 thousands R$ 605 thousands Quotas Awarded 100 million 2018 It is an integral part of the financial services segment of Randon Companies working in credit management and sales support, offering financing to customers and suppliers. PRODUCTS: CDC, Working Capital, Vendor, Discounting Receivables, FINAME and Floor Plan. Credit Line for the acquisition of trailers, vehicles, components and automotive systems. Assets R$ 376 mn Number of Customers Equity R$ 79,2 mn

26 FINANCIAL RESULTS PERFORMANCE 4Q Consolidated Net Revenue (R$ million) Randon Bank - ROE (%) +16.2% +9.5% % 8.0% 7.6% 7.4% 7.0% Q17 4Q Consolidated EBITDA EBITDA Margin (R$ million) Randon Consórcios - ROE (%) 27.8% 27.9% 24.1% 18.2% % 31.3% 37.9% 46.8% 47.1% Q17 4Q

27 HIGHLIGHTS MARKET 4Q PRODUCTION 4Q18 4Q17 % % Trailers*** 14,194 8, % 48,702 28, % Trucks** 28,280 23, % 105,534 83, % Buses** 5,485 4, % 28,536 20, % CURRENT SCENARIO Increase in truck production; Growth in trailer production; Backlog of product orders beyond 120 days; Optimism for 4Q2018; Economy is growing at a moderate rate; Post elections scenario. SALES 4Q18 4Q17 % % Trailers*** 12,796 7, % 44,589 24, % Trucks** 23,208 16, % 75,987 51, % Buses** 4,598 3, % 15,081 11, % KEY FACTORS FOR TRUCK/TRAILER DEMAND GDP Harvest Confidence Employment Interest rates Inflation Data from: * ANFIR ** ANFAVEA *** ANFIR + AliceWeb

28 HIGHLIGHTS CONSOLIDATED RESULTS 4Q Main Figures 4Q18 4Q17 Δ% Δ% Total Gross Revenue (*) 1,696,805 1,223, % 6,044,161 4,215, % Domestic market 1,489,708 1,098, % 5,373,914 3,721, % Exports 207, , % 670, , % Exports US$ 55,045 39, % 182, , % Consolidated Net Revenue 1,212, , % 4,262,602 2,936, % Consolidated Gross Profit 279, , % 1,012, , % Gross Margin (%) 23.1% 23.8% -0.7 p.p. 23.8% 23.7% 0.0 p.p. Consolidated Net Profit 35,435 3, % 151,719 46, % Net Margin (%) 2.9% 0.4% 2.5 p.p. 3.6% 1.6% 2.0 p.p. Consolidated EBITDA 124,614 78, % 559, , % EBITDA Margin (%) 10.3% 9.2% 1.1 p.p. 13.1% 10.5% 2.6 p.p. (*) Without eliminating intercompany sales Adjusted EBITDA 4Q2018: R$ milion Adjusted EBITDA 2018: R$ milion +42.1% +45.1% Consolidated Net Revenue by Segment , , , , , , , Q17 4Q Vehicles and Trailers Auto Parts Financial Services Total 28

29 CAPITAL MARKETS RAPT4 Price/Daily Liquidity - R$ per share R$ million Dividends and Interest on Equity - R$ million R$ per share

30 FINANCIAL RESULTS Gross Debt Breakdown R$ million % Total gross debt R$ 2,838.8 Gross debt in BR currency R$ 2,246.8 Gross debt in foreign currency R$ USD rate (December 31, 2018) R$ Domestic Currency 79.15% Foreign Currency 20.85% Consolidated Working Capital - R$ million , WORKING CAPITAL 2017 INVENT. CUSTOMERS RECOVERING TAXES SUPLIERS WAGES OTHERS WORKING CAPITAL

31 FINANCIAL RESULTS Consolidated Net Debt (without Randon Bank) - R$ million *Net Debt/EBITDA 1.45 x 6.93 x 2.95 x 1.19 x 1.51 x 1, , , , , , , , , , ,684.1 Dec, 2014 Dec, 2015 Dec, 2016 Dec, 2017 Dec, 2018 Cash Loans Consolidated Net Debt (without Randon Bank) The chart above shows the company s debt, without the cash and debt indicators of Randon Bank. Consolidated net debt at the end of December 2018 amounts to R$ 1.1 billion, a multiple of 1.97 times EBITDA over the last 12 Months. 31

32 SUSTAINABILITY Employees 7, % 10, Social Responsibility - Programs IDADE

33 SUSTAINABILITY Consolidated Added Value R$ 1.9 billion R$ 1.4 billion 36.2% 36.7% 31.9% 26.3% 25.7% 23.7% 3.9% 4.2% 2.2% 5.7% 1.1% 2.3% Funcionários Employees Taxes Tributos Financiadores Financial Participação Intrest of minority dos Institutions minoritários Shareholders % 2018 % 2017 Profit Dividendos Retained in the Period Interest Lucros retidos on Owndo Capital exercício and Dividends 33

34 Outlook ECONOMY *GDP: growth forecast of 2.28% for 2019; **Grain Harvest: 6th survey CONAB estimates production of million tons of grain in the 2018/2019 harvest; *Inflation: estimated to close 2019 at 3.87%, below the target center; *Selic Rate: Selic should close the year at 6.5% a.a.; *Industrial Production: growth forecast of 2.8% for Source: * Focus Report 03/08/2019 ** 6th Conab Harvest Report RESULTS 1Q2019 The production of trucks must remain in good a pace, especially volumes aimed at the domestic market; Exports of trucks may show a significant reduction, given the negative scenario in the Argentine market; Semi-trailer sales point to a strong start to the year both in production and sales in Brazil; The foreign market for trailers should register more timid volumes, as it is expected at the beginning of the year. 34

35 GUIDANCE 2019 TOTAL GROSS REVENUE R$ 7.0 Bi CONSOLIDATED NET REVENUE R$ 5.0 Bi *REVENUES FROM OVERSEAS IMPORTS **INVESTMENTS US$ 300 Mi US$ 75 Mi R$ Mi * Exports from Brazil + Operations Overseas ** Organic 35

36 FINANCIAL RESULTS Total Gross Revenue - Including Intercompany Sales - R$ million 5, , , , ,044.2 CAGR +2.6% +38.7% +43.4% 4, , , , Q17 4Q Consolidated Net Revenue - R$ million 3, , , , ,262.6 CAGR +3.0% +42.1% 2, % 4, , Q17 4Q

37 OPERATING RESULTS Exports - US$ million CAGR -1.2% % % Q17 4Q Exports Destination by Economic Block US$ million 46.33% 42.40% 32.61% 31.72% 3.17% 2.68% 3.75% 5.39% 1.32% 0.83% 8.94% 13.81% 3.10% 2.69% 0.79% 0.48% MERCOSUR + CHILE NAFTA EUROPE AFRICA ASIA SOUTH AND CENTRAL AMERICA MIDDLE EAST OCEANIA 37

38 FINANCIAL RESULTS Gross Profit Gross Margin - R$ million +37.8% 25.0% 20.7% 19.9% CAGR +1.8% +45.3% 23.7% 23.8% 23.8% 23.1% 23.7% 23.8% 1, , Q17 4Q Consolidated COGS Breakdown R$ million Depreciation 2.4% Others 12.6% COGS 2018 R$ 3,3 bilhões (76,2% s/ RL) Labor 13.0% Raw material 72.0% 38

39 FINANCIAL RESULTS EBITDA EBITDA Margin - R$ million 13.0% 10.5% 5.2% 5.4% % CAGR +3,4% +81.6% +59.0% 9.2% 10.3% 10.5% 13.1% Q17 4Q EBITDA Quarterly EBITDA Margin - R$ million 17.3% 9.2% % % % Q17 1Q18 2Q18 3Q18 4Q18 39

40 FINANCIAL RESULTS Net Income Net Margin- R$ million 5.3% -0.8% 1.6% 3.6% -2.6% CAGR -6.9% % 0.4% 2.9% 1.6% 3.6% % Q17 4Q Net Income Quarterly Net Margin - R$ million 0.4% 4.7% 3.1% 3.8% 2.9% Q17 1Q18 2Q18 3Q18 4Q18 40

41 FINANCIAL RESULTS Gross Debt Breakdown - R$ million % Fixed + Exchange Rate 2.95% Libor + Exchange Rate 14.59% BNDES Rate 1.78% Fixed 9.57% Gross Debt Indexes IPCA 2.19% CDI 68.89% R$ Million Origin of Debt - Short and Long Term December/2018 1, , , ,246.9 Short Term Long Term Total National Currency Foreign Currency Debt Net Debt/EBITDA - R$ million Net Debit (Without Randon Bank ) , , , ,

42 FINANCIAL RESULTS Schedule of Debt Repayment R$ million a 2033 Domestic Currency Foreign Currency 42

43 FINANCIAL RESULTS Investments - R$ million CAGR +2.4% -45.5% +5.2% R$ 196,7 million new acquisitions Q17 4Q Shareholders Equity ROE - R$ million (without non-controlling shareholders) 15.1% 1, % 3.3% -5.3% 1, , % 1, ,

44 FINANCIAL RESULTS Consolidated Income Statement by Segment - R$ million/% Vehicles and Trailers Semi-trailers Auto Parts Financial Services Consolidated 4Q18 4Q17 Δ% 4Q18 4Q17 Δ% 4Q18 4Q17 Δ% 4Q18 4Q17 Δ% Gross Revenue 666, , % 785, , % 48,721 41, % 1,499,941 1,059, % Deduction in Gross Revenue -116,498-80, % -166, , % -4,720-3, % -287, , % Net Revenue 549, , % 618, , % 44,002 37, % 1,212, , % Costs of Sales and Service -463, , % -466, , % -2,928-1, % -932, , % Gross Profit 86,380 62, % 152, , % 41,074 36, % 279, , % GROSS Margin (%) 15.7% 15.6% 0.1 p.p. 24.6% 25.0% -0.5 p.p. 93.3% 96.4% -3.0 p.p. 23.1% 23.8% -0.7 p.p. Operating Expenses -49,659-52, % -102,863-76, % -33,132-27, % -185, , % EBIT 36,721 9, % 49,162 28, % 7,942 9, % 93,825 46, % EBITDA 46,067 18, % 70,518 50, % 8,029 9, % 124,614 78, % EBITDA Margin 8.4% 4.6% 3.8 p.p. 11.4% 12.2% -0.8 p.p. 18.2% 24.1% -5.8 p.p. 10.3% 9.2% 1.1 p.p. (*) Adjusted Consolidated EBITDA 4Q2018: R$ million (10,.7% s/rl) (*) Adjusted Consolidated EBITDA 2018: R$ milhões (12.7% s/rl) 44

45 FINANCIAL RESULTS Consolidated Income Statement (by Segment/Quarterly) - R$ million/% 4Q Q2018 2Q2018 3Q2018 4Q Consolidated Net Revenue , , , , ,262.6 % Vehicles and Trailers 46.8% 43.4% 40.6% 45.3% 46.5% 45.3% 45.3% % Auto Parts 48.8% 51.5% 53.1% 50.7% 49.7% 51.0% 50.8% % Financial Services 4.4% 5.1% 6.3% 4.0% 3.7% 3.6% 3.8% Consolidated Gross Profit ,012.5 % Gross Margin 23.8% 23.7% 23.6% 23.9% 24.5% 23.1% 23.8% EBITDA % EBITDA Margin 9.2% 10.5% 17.3% 12.4% 13.5% 10.3% 13.1% Net Income % Net Margin 0.4% 1.6% 4.7% 3.1% 3.8% 2.9% 3.6% 45

46 Investor Relations IR Contact