Usiminas Presentation 4Q11

Transcription

1 Usiminas Presentation 4Q11 Apresentação Usiminas 2T11 - APIMEC Information Classification: Public

2 Agenda Clique para Market editar o texto Overview mestre Usiminas and its Business Units Financial Highlights 2

3 World Production Total 1,490 million tons Production per Company 2010* China Japan USA India Russia South Korea Germany Ukraine Brazil Turkey Source: World Steel * 2011 data not available yet 3

4 Value Transfer on the Steel Chain Profit distribution on the steel production chain % Steel Iron Ore Coal Source: Mckinsey 4

5 Brazilian Market Flat Steel Production million tons Apparent Consumption million tons Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Inventories in the Distribution Network Flat Steel Imports thousand tons Thousand tons Monthly basis ,039 1,244 1,238 1,152 1,233 1,110 1, Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Turn over on February months Flat Steel Imports on January 199,000 tons Source: IABR / INDA 5

6 Comparison on integrated mills Integrated mills CAPEX - US$/ton of crude steel Source: McKinsey 6

7 Real appreciation Almost 25% appreciation when compared with 2009 Source: Banco Central 7

8 Domestic Market Benefit from the Brazilian positive outlook Brazilian investments during the period of 2011/2014: R$1.6 trillion (63% growth 2006/2009) Industry: R$614 billion Infrastructure: R$380 billion Housing and sport events: R$607 billion MEDIUM AND LONG TERM PROJECTS ~ R$ 103 Bi ~ R$ 12 Bi ~ R$ 955 Bi ~ R$ 153 Bi ~ US$ 224 Bi 4.5 million tons of steel 2.7 long 1.8 flat 1.5 million tons of steel 0.9 long 0.6 flat Source: BNDES 8

9 9 Agenda Market Overview Usiminas and its Business Units Financial Highlights

10 10 Time line Usiminas delivers what it promises Foundation of Usiminas Operation Start Up 1991 Privatization Usiminas:1991 Cosipa: Listing on Latibex 2008 Aquisition of J. Mendes iron ore mines Aquisition of Zamprogna 2009 Soluções Usiminas, consolidation of the companies Rio Negro, Dufer, F asal and Zamprogna and industrial units Usial and Usicort Single CNPJ: Cosipa is incorporated by Usiminas 2010 Creation of Mineração Usiminas Port Agreement Mineração Usiminas and MMX New Coke Plant: the first step to Coke selfsufficiency Optimization Plan of the Plants and Sincron (CLC) 2011 Selling of Ternium shares ADR II approval Joint Mining and Cooperation Agreement with MMX, MBL and Ferrous Negociation with J. Mendes concluded Acquisition of Litigation Area 2012 Entrance of Techint Group in Usiminas Control Group Self-sufficiency Iron Ore and Energy

11 11 Strategically Located Mining Steel Steel processing Capital Goods

12 12 Everyday Steel Application Auto Industries Autoparts Agricultural Machines Household Appliances Cold Rolled and Galvanized (EG and HDG) Hot Rolled Heavy Plates and Hot Rolled Cold Rolled and Galvanized (EG and HDG) Civil Construction Ship-Building Pipelines Pressure Vessels Heavy Plates, Cold and Hot Rolled and Galvanized (EG and HDG) Heavy Plates Heavy Plates and Hot Rolled Heavy Plates

13 Shareholder Composition Total Capital 1,013,786,190 Voting Capital ON* Previ 10.44% Nippon Group 29.45% 49.84% 50.16% Free Float 25.70% ON ON 505,260,684 PN PN 508,525,506 Usiminas Pension Fund 6.75% Ternium / Tenaris Group 27.66% Control Group: 63.86% of Voting Capital *Highlighted only shareholders represented on the Board of Directors. 13

14 UPSTREAM DOWNSTREAM Complete solution of services and value added products through its Business Units Steel Processing Capital Goods Steel Mining Soluções Usiminas * Usiminas Mecânica * Automotiva Usiminas * Ipatinga Metform and Codeme stake ** Cubatão Mineração Usiminas * Unigal Usiminas * * Controled by Usiminas ** Results accounted through equity income 14

15 15 Results Accounted by Business Unit Income Statement per Business Units - Non Audited (R$ million) R$ million Mining Steel Steel Processing Capital Goods Adjustment Consolidated 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 Net Revenue ,426 2, (739) (664) 2,815 2,998 Domestic M arket ,141 2, (728) (663) 2,502 2,650 Export M arket (11) (1) COGS (78) (70) (2,439) (2,479) (494) (490) (311) (320) (2,587) (2,650) Gross Profit (14) (4) Operating Income (Expenses) (50) (36) (81) (32) (62) (25) (24) (24) 1 1 (216) (116) EBIT (95) (1) (38) (3) EBITDA (22) (4) EBITDA M argin 54% 61% 3% 3% -4% 5% 11% 9% - - 8% 11% Capex Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity Income.

16 16 Results Accounted by Business Unit Income Statement per Business Units - Non Audited (R$ million) R$ million Mining Steel Steel Processing Capital Goods Adjustment Consolidated Net Revenue ,421 11,496 2,149 2,433 1,419 1,447 (3,061) (3,374) 11,902 12,962 Domestic M arket ,047 9,686 2,107 2,379 1,418 1,447 (3,049) (3,374) 10,345 11,022 Export M arket ,374 1, (12) 0 1,557 1,941 COGS (270) (288) (10,231) (10,048) (1,977) (2,190) (1,235) (1,260) 3,105 3,354 (10,608) (10,432) Gross Profit , (20) 1,294 2,531 Operating Income (Expenses) (138) (89) (244) (230) (192) (203) (99) (107) 6 0 (668) (628) EBIT (54) 1,219 (21) (20) 626 1,902 EBITDA , (20) 1,264 2,650 EBITDA M argin 62% 67% 4% 16% 2% 4% 8% 8% % 20% Capex ,984 3, ,490 3,191 Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity Income.

17 17 Steel Ipatinga Cubatão

18 Flat Steel Production Usiminas has a full range of flat steel products Installed Nominal Capacity : 9.5 million tons / year Galvanized Slab Caster Slabs Heavy Plates Hot Coils Cold Coils EG HDG Ipatinga Plant 5,000,000t 1,000,000t 3,550,000t 2,500,000t 360,000t 1,050,000t Cubatão Plant 4,500,000t 1,000,000t 2,100,000t 1,200,000t - - Nominal Capacity 9,500,000t 2,000,000t 5,650,000t 3,700,000t 360,000t 1,050,000t Optmized Rolling Capacity - 1,900,000t 2,000,000t 1,950,000t 350,000t 1,020,000t 18

19 19 Domestic Market Usiminas is focused on the domestic market with a product range to supply different sectors Sales thousand tons 1,579 1,588 1,583 1,406 1,340 32% 23% 15% 17% 15% Segments Breakdown of Sales 4Q11 68% 77% 85% 83% 85% 4Q10 1Q11 2Q11 3Q11 4Q11 Domestic Market Export Market

20 Investments Total amount for 2011 R$ 2.5 billion Strategic focus on enhancing competitiveness of current operations In operation Hot Run Coke Plant 3 750,000 tons (Usiminas Ipatinga) CLC 500,000 tons (Usiminas Ipatinga) Galvanizing Line 550,000 tons (Unigal) Foundry 24,000 tons (Usiminas Mecânica) Hot Strip Mill 2.3 million tons (Usiminas Cubatão) Up to Q10 4Q10 2Q11 4Q11 1Q12 Mining Production Reach total capacity of 29 million tons Energy self sufficiency Reach total capacity of 500 MW Ongoing Projects 20

21 21 Mining and Logistics Itabira Belo Horizonte Sabará Itaúna Ipatinga Vitória Jeceaba Mariana TUBARÃO Port Três Rios Barra do Piraí B. Mansa Itaguaí São Paulo Cubatão ITAGUAÍ Port Santos CUBATÃO Port

22 Logistics Mineração Usiminas 40 Km 60 Km MODAL TCS / TSA IPATINGA Mill EFVM Trammel CUBATÃO Plant / Port Sepetiba Port Itaguaí Port (Ingá) Tubarão Port Exports Exports Exports Existing Routes New Routes 22

23 Mining and Logistics Current status 4 mining sites, acquired from J. Mendes Group in Feb/2008 Reserves of 2.6 billion tons Located in Serra Azul-MG, one of the richest iron ore sites in Brazil Production MM ton: Q11: production of 1.7 million tons MRS: 20% of voting shares and part of the Control Group Land in Itaguaí-RJ, acquired in

24 Mining and Logistics Strategic partnership Acquisition by Sumitomo Corporation of 30% of Mineração Usiminas S.A., through the subscription of new shares, up to the total amount of US$ 1.9 billion. US$ 6.4 billion Mineração Usiminas S.A Estimated Market Value 24

25 25 Expansion Plan Mining Iron Ore Production Capacity million tons by the end of the year Capex until 2015 is estimated at R$4.5 billion including new processing lines/plants, industrial facilities projects, equipment, loading terminals, etc. Lifetime until 2045

26 26 Agreements Mining Agreements signed to allow the expansion plan: MMX Port and Joint Mining Agreements MBL Joint Mining Agreement New mine acquired from Mineração Ouro Negro (former litigation area) Conclusion of the negotiation with J. Mendes Right of way agreement with Ferrous

27 27 Mineração Usiminas Serra Azul Igarapé São Joaquim De Bicas Minerita MUSA Central MUSA East MMX MUSA Pau de Vinho MUSA West Arcelor Mittal Ferrous (Santanense) Comisa Emicon Ferrous MBL Itatiaiuçu

28 Itaguaí Port 28

29 29 Steel Processing Soluções Usiminas Camaçari Recife Campo Limpo Paulista Santa Luzia Betim Taubaté Guarulhos São Paulo Serra Cachoeirinha Porto Alegre

30 30 Soluções Usiminas Steel Processing 11 industrial units in MG, SP, RS, ES and PE. Processing capacity of 2 million tons/year. 4Q11 Gross Revenues of R$557 million Leadership: Is the leader in the steel distribution sector since 2010, according to INDA.

31 31 Steel Processing Automotiva Usiminas Pouso Alegre Unit Clients 500 km km km

32 32 Automotiva Usiminas Steel Processing Pouso Alegre MG Close to major auto makers. Full service company. 4Q11 Gross Revenues of R$118 million Major Clients: Ford, Mercedes Benz, Fiat, Volkswagen, Volvo, General Motors, International Trucks, Honda Toyota, PSA Peugeot Citroën, Scania.

33 Capital Goods 33

34 Usiminas Mecânica Capital Goods Ipatinga MG It is one of the largest capital goods company in the country. 4Q11 Gross Revenues of R$427 million Market Sectors: Industrial Assembly Structures / Metal Bridges and Blanks Industrial Equipment Industrial Erection Foundry and Railcars Highlights: Supply of steel structures for the Maracanã Stadium s grandstand and pipe racks of the petrochemical complex of Rio de Janeiro COMPERJ. Usiminas Mecânica made industrial maintenance services at the Ipatinga and Cubatão plants. Signing of an agreement for the building of a railway car factory at Congonhas. 34

35 Usiminas Mecânica Capital Goods some of its projects Ship Blocks Plant Design Ship Block 3rd Bridge in Brasília 35

36 36 Agenda Market Overview Usiminas and its Business Units Financial Highlights

37 37 4Q11 Consolidated Results Highlights* Sales thousand tons (steel products) Net Revenues R$ Million 6,565 5,916 12,962 11,902 1,406 1,340 2,998 2,815 3Q11 4Q Q11 4Q EBITDA R$ Million 2,650 Net Income R$ Million 1,584 1, Q11 4Q Q11 4Q

38 2011 Results Consolidated Basis EBITDA / EBITDA Margin 40% 34% 32% 37% 35% 46% 42% 5,624 5,525 35% 36% 38% 6,008 2,429 3,072 4,368 5,003 14% 20% 2,650 11% 954 1,344 1,547 1,485 1, EBTIDA (R$) EBITDA Margin (%) (R$ million) *IFRS 38

39 Results 4Q11 Steel Business Unit EBITDA / ton - R$* ** 2010** 2011** EBITDA / ton US$* ** 2010** 2011** *Iron Ore at Market price **IFRS 39

40 40 Debt Profile Strong cash position and comfortble debt profile (R$ Million) Debt - R$ million 5,191 Total Debt: Duration: R$8,943 million R$: 48 months US$: 55 months 2,397 2,794 1, , ,507 1, Cash on Foreign Currency Local Currency 1, ,

41 41 Leverage Consolidated Basis Net Debt / EBITDA Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q08 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Net Debt (R$ bi) Net Debt/EBITDA (x)

42 42 Balance Sheet Structure 4Q11 Capital Employed Funded By Net Fixed Assets Net Debt Net Working Capital Shareholders Equity Total: 22,941 Million

43 ADR Level I Cristina Morgan C. Drumond Head of IR cristina.drumond@usiminas.com Phone: Fax: Leonardo Karam Rosa leonardo.rosa@usiminas.com Phone: Diogo Dias Gonçalves diogo.goncalves@usiminas.com Phone: Luciana Valadares dos Santos luciana.santos@usiminas.com Phone: Mariana Paes Campolina mariana.paes@usiminas.com Phone: 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.