Presentation 4Q16. Apresentação Usiminas 2T11 - APIMEC. Classification of the information: Public

Transcription

1 Presentation 4Q16 Apresentação Usiminas 2T11 - APIMEC Classification of the information: 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 Usiminas privatization Listing on BOVESPA Listing on ADR I 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 (increasing the capacity to 12 million tons/year) R$ 1 billion capital increase Debt Renegotiation

5 Shareholding Composition Voting Capital Total Capital 1,253,079,108 Preferred 56.28% 705,260, % 547,818,424 Others 23,19% Nippon Group 21,10% * * Grupo de Controle (63,86%) * Free Float: 54.25% Ternium / Tenaris Group 19,76% Ternium/ Tenaris * Group 19,81% Control Group: 45.75% Usiminas Pension Fund Nippon Group 4,84% 11,31% Usiminas shares are traded on BM&FBovespa (São Paulo), on the OTC Market (New York) and on a LATIBEX exchange section (Madrid). 5

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 Strategically Located Mining Steel Steel Processing Capital Goods 7

8 8 Social and Environmental Initiatives Usiminas Cultural Institute Usiminas invested over R$260 million, encouraging around 2,000 social projects since 1993 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 9 Agenda Usiminas Profile Market Outlook Usiminas and its business units Financial Results

10 Source: Usiminas Commercial Planning 10 Brazilian Flat Steel Apparent Consumption Thousand Tons % Usiminas Other Companies Imports Consumption

11 11 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

12 12 Agenda Usiminas Profile Market Outlook Usiminas and its business units Financial Results

13 Flat Steel Capacity of Production Thousand Tons Slab Caster Slabs Placas Heavy Plates Hot Coils Laminados a Cold Coils Quente EG Eletrogalvanizados Galvanized Ipatinga Plant 5,000 1,000 3,600 2, ,050 2,100 ** Cubatão Plant 4,500* 1,000** 1, HDG Nominal Capacity 9,500* 2,000* 8,000 3, ,050 Optimized Rolling Capacity * Temporary shutdown of the primary areas of Cubatão ** Temporary shutdown of the rolling mills - 1,900 4,200 2, ,020 13

14 Sales Volume Steel Business Unit Thousand Tons Q15 1Q16 2Q16 3Q16 4Q16 Exports Domestic Market 14

15 Exports Main Markets Steel Business Unit 4Q16 Argentina % 0% 1% 6% 8% 1% Germany USA Spain Taiwan 8% 6% 1% 2% 1% 2% 31% 11% 46% Mexico 9% Belgique 4% Switzerland 14% 20% Portugal 26% France 15

16 16 Cost of Goods Sold - COGS Steel Business Unit 3Q16 4Q16 Other Raw Materials 0,7% 8,6% 7,2% 25,0% Labor (direct and indirect) Coal and Coke Iron Ore and Pellets -13,1% 11,3% 32,6% 7,7% Structural Expenses 7,1% 9,6% Energy and Fuels 7,7% 4,2% 10,3% 10,8% 15,9% Depreciation Spare Parts Inventories Variation 9,5% 4,4% 11,2% 12,1% 17,1% Others

17 Adjusted EBITDA and EBITDA Margin Steel Business Unit R$ Million 14% 11% (52) (2) (125) (179) % 72 3% 1 (2) 1 (37) (42) (35) (14) (14) (2) (34) (71) -8% 4T15 1T16 2T16 3T16 4T16 Venda/baixa de Ativos Venda de Energia EBITDA sem efeitos extraordinários PDD Término de contrato EBITDA Reportado Margem de EBITDA Reportado 17

18 18 Investments 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)

19 19 Investments 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)

20 20 Investments 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

21 21 Mainly Investment Concluded in 2015 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

22 22 Description 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

23 Location 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 23

24 24 Investments 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

25 Sales Volume Mining Business Unit Thousand Tons % Q15 1Q16 2Q16 3Q16 4Q16 Sales to 3rd parties - Domestic Market Exports Total 25

26 26 Iron Ore Price PLATTS (62% Fe CFR China) US$/ton Q15 1Q16 2Q16 3Q16 4Q16

27 Adjusted EBITDA and EBITDA Margin Mining Business Unit R$ million 30% 21% 16% -11% (4) (12) (3) (1) (102) -119% 4Q15 1Q16 2Q16 3Q16 4Q16 Sale of Energy Reported EBITDA Reported EBITDA Margin 27

28 28 Description Soluções Usiminas - Steel Processing o o 8 industrial units in different Brazilian states: MG, SP, RS, ES, BA and PE Processing capacity of 2 million tons of steel/year o Net Revenue of R$1.9 billion in 2016 Recife Santa Luzia Betim Serra Taubaté Guarulhos São Paulo Porto Alegre

29 Adjusted EBITDA and EBITDA Margin Steel Processing - R$ million 4% 3% 22 2% 1% (1) 0% 4Q15 1Q16 2Q16 3Q16 4Q16 Reported EBITDA Reported EBITDA Margin 29

30 Description Usiminas Mecânica - Capital Goods 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 o Net Revenue of R$568 million in 2016 Steel Structures Brasília 3rd Bridge 30

31 Adjusted EBITDA and EBITDA Margin Capital Goods - R$ million 12% 5% 6% 24 1% (7) -7% 4Q15 1Q16 2Q16 3Q16 4Q16 Reported EBITDA Reported EBITDA Margin 31

32 32 Agenda Usiminas Profile Market Data Usiminas and its business units Financial Results

33 Adjusted EBITDA and EBITDA Margin Consolidated R$ million 14% 11% % 3% (50) (41) (44) 1 (2) (12) (36) (3) (1) (17) (6) (33) (71) 234 (196) (250) -10% 4Q15 1Q16 2Q16 3Q16 4Q16 Assets Sales/Write-off Energy Sales Provision for Doubtful Accounts EBITDA excluding extraordinary effects Reported EBITDA Termination of Contract Reported EBITDA Margin 33

34 Comparing Adjusted and CVM 527 EBITDA Consolidated R$ Thousand 34

35 35 Debt Profile (Principal) - Consolidated R$ million Duration: R$: 51 months US$: 53 months Cash Local Currency Foreign Currency

36 36 Cash and Indebtedness Consolidated - R$ million Q15 1Q16 2Q16 3Q16 4Q16 Net Debt Cash Gross Debt

37 37 CAPEX Consolidated - R$ million Others Mining Steel

38 38 G&A Evolution Consolidated - R$ million 4,5% 4,4% 4,2% 4,3% 3,9% Q15 1Q16 2Q16 3Q16 4Q16 G&A G&A/Net Revenues

39 39 Working Capital Consolidated R$ billion 2,5 2,3 2,4 2,2 2,1 4Q15 1Q16 2Q16 3Q16 4Q16

40 40 Working Capital Steel Inventories Thousand Tons Inventory turnover (days) Q15 1Q16 2Q16 3Q16 4Q16

41 Income Statement Per Business Unit R$ million - Quarterly Note: All intercompany transactions are made at arm s length basis 41

42 Income Statement Per Business Unit R$ million Annual Note: All intercompany transactions are made at arm s length basis 42

43 Cristina Morgan C. Drumond Head of IR Phone: Fax: Leonardo Karam Rosa IR Manager Phone: ADR Level I Declarations relative to business and 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.