RANDON PROFILE I N S T I T U T I O N A L P R O F I L E

Transcription

1 RANDON PROFILE I N S T I T U T I O N A L P R O F I L E R E S U L T S 2Q16 / 1H16

2 Significant Information We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management and on information currently available to us. Forwardlooking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officer. Forward-looking statements also include information concerning our possible or assumed future results of operations as well as statements preceded by, followed by, or that include the words ''believes', ''may', ''will', ''continues', ''expects', ''anticipates', ''intends', ''plans', ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 2

3 Randon Profile Foundation 1949 IPO 1971 Employees 7,804 Market Cap R$ 1.0 billion o leader in the 4th biggest automotive market in the world; o among the 10 biggest manufacturers of towed vehicles; o leader in Brazil in all kinds of parts produced by itself. Leadership Growth o fast and constant growing; o present in all Brazilian economy sectors; o international exposure through exports and foreign operations. o one of the main suppliers in the Brazilian commercial vehicles chain; o complementary products and integrated industrial sites; o traditional partnerships and worldwide exposure. Competitive Recognition o one of the most respected brands in transportation in Latam; o elected among the best companies to work in Latam; o regular investments in R&D. 3

4 Randon Profile C o n s o l i d a t e d N e t R e v e n u e D i s t r i b u t i o n b y S e g m e n t 1 H % Vehicles and Trailers 50.6% Autoparts 5.2% Financial Services Among the 10 biggest manufacturers of road equipment in the world; One of the biggest friction material manufacturers in the Western hemisphere; One of the biggest consortium companies for commercial vehicles in Brazil; Second major manufacturer of railway wagons in Brazil; The largest manufacturer of specialty vehicles of up to 30 tons in Brazil. The largest producer of air brakes for commercial vehicles in Brazil; Leader in production of friction material, air breaks, axles and suspension systems and coupling components for commercial vehicles. In-house bank to finance clients and suppliers. 4

5 Randon Profile C o r p o r a t e s t r u c t u r e 57.3% Free Float 80.0% Tag Along Total Stocks 345,775,809 RAPT3 229,260,282 RAPT4 116,515,527 5

6 Randon Profile O p e r a t i o n a l s t r u c t u r e Chile África do Sul 6

7 Vehicles and Trailers Physical Volume Sales Breakdown of Revenues by Segment 2Q2016 2Q2015 1H2016 1H2015 Δ% Un. Un. % CNR Un. % CNR Un. % CNR Un. % CNR Δ% Un. Vehicles and Road Equipment 44.2% 47.9% 47.9% % Trailers/ Semi-Trailers (un.) 2, % 2, % 2.4% 4, % 4, % 6.4% Specialty Vehicles (un.) % % -58.9% % % -56.8% Rail freight cars (un.) % % 12.3% 1, % % 46.9% Physical Volume Sold over the last 5 Years Randon SP Products Trailers/Semi-Trailers 25,678 21,106 25,489 16,619 10,584 Specialty Vehicles 832 1,085 1, Rail Freight Cars ,356 1,999 7

8 Vehicles and Trailers L e a d e r i n t h e d o m e s t i c m a r k e t Trailers Market Share Randon 1H % 28.8% 26.9% 26.2% 25.6% +2.6% +2.7% 28.2% 24.8% 27.5% Q2015 2Q2016 1H2015 1H2016 Trailers Total Market 1H2016 Librelato 13.0% Guerra 10.9% Noma 10.3% Others 26.3% Facchini 12.1% 12,516 Units 1H2016.Randon 27.5% 8

9 Vehicles and Trailers M a r k e t c h a r a c t e r i s t i c s Fragmented base of clients strong distribution representatives in all main markets Import Barriers logistics costs regulation import tax financing Gran Trailers Exposure to all economy segments direct relation with Brazilian GDP Tipper Exports concentrated Latam and African markets Sales by Segment 1H2016 Tankers Services Primary Sector General Cargo, Grain trailers, Cereal Trailers, Sugar-Cane Trailers, Forestry Equipment and Reefers. Bases, Trailers for coils, General cargo, Siders, Stainless steel tankers and Low-bed. Industry Tippers, Skeletal Bases for Containers and Carbon Steel Tankers. 9

10 COMPETITORS SIZE OF MARKET (SALES BRAZIL) Vehicles and Trailers L e a d e r i n t h e d o m e s t i c m a r k e t 54,401 40,493 59,284 59,435 52,537 70,161 56,452 29,620 12, % 26.3% 28.3% 28.0% 26.2% 26.6% 29.7% 28.0% 26.3% Others 6.4% 7.3% 6.5% 7.4% 9.7% 9.3% 9.5% 11.7% 10.3% Noma 15.9% 14.9% 14.9% 11.4% 12.2% 12.2% 11.4% 12.6% 10.9% Guerra 14.3% 11.4% 11.4% 12.1% 10.4% 12.2% 3.9% 4.8% 6.7% 8.6% 11.2% 10.9% 12.1% 11.2% 10.4% 10.3% 12.1% 13.0% Facchini Librelato 33.0% 35.2% 32.2% 32.6% 30.4% 28.8% 26.9% 26.2% 27.5% S. 1H

11 Autoparts 11

12 Autoparts P h y s i c a l V o l u m e S a l e s B r e a k d o w n o f R e v e n u e s b y S e g m e n t 2Q2016 2Q2015 1H2016 1H2015 Δ% Un. Δ% Un. Un. % CNR Un. % CNR Un. % CNR Un. % CNR Autoparts 50.6% 47.1% 47.2% 50.2% Friction Material (ton.) 16, % 18, % -10.8% 33, % 35, % -6.5% Brakes (un.) 114, % 123, % -7.3% 212, % 264, % -19.5% Coupling Systems (un.) 13, % 12, % 9.5% 26, % 26, % -1.2% Suspension and Undercarriage Systems (un.) 31, % 51, % -38.9% 59, % 101, % -41.5% Castings (ton.) 4, % 4, % 1.0% 8, % 9, % -12.8% 12

13 Autoparts L e a d e r i n t h e d o m e s t i c m a r k e t Main component in each controlled company 1H % Market Share 89% Brakes Main Competitors Knorr (Alemanha) unit in SP Wabco (EUA) unit in SP Guerra Brasil/RS Silpa Brasil/RS Mercado Cativo (MB, Scania) 50% 45% Axles and Suspensions Hendrickson (EUA) BPW (Alemanha) SAF Holland (EUA e Alemanha) unit in SP Fuwa (China) HBZ Brasil/SP Articulation Systems Fontaine (EUA) unit in PR GF George Fischer (Suíça) oficce in RS Fuwa (China) Fifth-wheel - OEM Air Brakes - OEM Brake Linings - Aftermarket Axles and Suspensions - OEM Friction Materials SYL Brasil/SP TRW (EUA) unit in São Paulo Brakeparts Brasil/SP Nakata (EUA) unit in São Paulo Federal Mogul (EUA) 13

14 Autoparts M a r k e t c h a r a c t e r i s t i c s a n d s a l e s b y s e g m e n t s Concentrated base of clients big clients play a major role in sales Moderated imports simultaneous engeneering import tax financing Exposure to the OEMs demand direct relation with the Brazilian GDP Vendas por Mercado 1T2016 Exports concentrated in NAFTA mainly USA market Sales by Segments 1H2016 OEM Original Equipment Manufacturer of commercial vehicles trucks, buses and towed. Aftermarket Replacement parts. Exports Parts for OEMs abroad as well as for the international aftermarket. 14

15 Overview B u s i n e s s E n v i r o n m e n t The 2Q2016 still reflects a very low market for production and sales of vehicles and trailers; Truck sales reached 25,589 units in 1H2016, a drop of 31.4% year over year; The number of trailers and semi-trailers sold amounted to 12,516 units in 1H2016, 14.7% less than that of 1H2015; Higher confidence level for both entrepreneurs and consumers reinforce the expectation for a more favorable economic scenario in the months to come.. 15

16 Highlights 2Q16 2Q2016 2Q2015 D% 1H2016 1H2015 D% PRODUCTION 28,513 33, % 54,891 71, % Trucks (*) 16,099 18, % 31,299 41, % Buses (*) 4,900 6, % 9,239 13, % Trailers/ Semi-Trailers (***) 7,514 8, % 14,353 16, % SALES (DOMESTIC MARKET) 21,916 30, % 43,788 61, % Trucks (*) 12,478 17, % 25,589 37, % Buses (*) 2,963 4, % 5,683 9, % Trailers/ Semi-Trailers (**) 6,475 7, % 12,516 14, % * Dada from Anfavea Newsletter. ** Dada from ANFIR Statistics. *** Dada from ANFIR+Aliceweb 16

17 Highlights 2Q16 2Q2016 2Q2015 Δ% 1H2016 1H2015 Δ% Total Gross Revenue (*) 984,152 1,015, % 2,004,665 2,010, % Domestic market 834, , % 1,732,960 1,777, % Foreign market 149, , % 271, , % Foreign market in US$ 42,042 37, % 74,228 77, % Consolidated Net Revenue 696, , % 1,431,366 1,431, % Consolidated Gross Profit 162, , % 293, , % Gross Margin (%) 23.3% 21.3% 2.0 p.p. 20.5% 21.5% -1.0 p.p. Consolidated Net Profit 6, % -2, % Net Margin (%) 1.0% 0.0% 0.9 p.p. -0.2% 0.1% -0.2 p.p. Consolidated EBITDA 75,300 47, % 121,781 97, % EBITDA Margin (%) 10.8% 6.4% 4.4 p.p. 8.5% 6.8% 1.7 p.p. Adjusted EBITDA 86,357 54, % 174, , % Adjusted EBITDA Margin (%) 12.4% 7.4% 5.0 p.p. 12.0% 9.4% 2.6 p.p. (*) Without elimination of intercompany sales. Values in thousands of Reais 17

18 Highlights 1H16 N O N - R E C U R R I N G E F F E C T S EBITDA 1H2016 ADJUSTED EBITDA 1H % 12.0% EBITDA Hedge Accounting Restructuring Restructuring Provision - Randon SP Non-operating provisions Write-off of intangible assets - Randon SP Adjusted EBITDA 18

19 Adjusted Statements of Income 2Q2016 AV% 2Q2016 ADJ AV% 1H2016 AV% 1H2016 ADJ AV% (+) Hedge Accounting - 0.0% % - 0.0% 19, % Consolidated Net Revenue 696, % 697, % 1,431, % 1,451, % (+) COGS Restructuring - 0.0% 14, % - 0.0% 26, % (+) COGS Restructuring Provision - 0.0% -3, % - 0.0% - 0.0% Cost of Sales and Services -534, % -523, % -1,137, % -1,111, % Gross Profit 162, % 173, % 293, % 339, % Operating Expenses -116, % -116, % -232, % -232, % (+) SG&A Restructuring - 0.0% 1, % - 0.0% 4, % (+) SG&A Restructuring Provision - 0.0% -1, % - 0.0% % (+) Write-off of intangible assets - 0.0% - 0.0% - 0.0% 3, % (+) Non-operating provisions - 0.0% % - 0.0% -1, % Operating Expenses -116, % -116, % -232, % -226, % EBIT 45, % 56, % 60, % 113, % EBITDA 75, % 86, % 121, % 174, % 19

20 Overview 2Q16 B u s i n e s s S e g m e n t s Tr a i l e r s / S e m i - t r a i l e r s T R A I L E R S / S E M I - T R A I L E R S Low but stable market volumes; Marketshare = 28.2% in 2Q % in 2Q2015; Intense commercial competition; Slow recovery of prices. 20

21 Overview 2Q16 B u s i n e s s s e g m e n t s V e h i c l e s a n d R o a d E q u i p m e n t Veículos e Implementos R A I L F R E I G H T C A R S Number of railcars produced reached 429 units in 2Q2016, a raise of 12.3% compared to 2Q2015; Firm orders for the next quarter; Ongoing quotations. S P E C I A L T Y V E H I C L E S The shutdown of infrastructure and construction projects are strongly affecting the sector; Sales decreased 58.9% in 2Q2016 (compared to 2Q2015). 21

22 Overview 2Q16 B u s i n e s s s e g m e n t s A u t o p a r t s A U T O P E Ç A S OEMs indicate stable market volumes, but iddle capacity on factories remain in high levels; Volumes produced by the company this quarter were higher than 1Q2016, despite the slow domestic market; Exports and aftermarket support the consistency of results and reinforce good perspectives for the year. 22

23 Financial Results To t a l G r o s s R e v e n u e I n c l u d i n g i n t e r c o m p a n y s a l e s R $ m i l l i o n 6, , , , ,236.9 CAGR -9.7% -3.1% -0.3% 1, , , Q15 2Q16 1H15 1H16 C o n s o l i d a t e d N e t R e v e n u e R $ m i l l i o n CAGR -7.1% 4, , , , , % 0.0% , , Q15 2Q16 1H15 1H16 23

24 Financial Results G r o s s P r o f i t G r o s s M a r g i n R $ m i l l i o n CAGR -10.9% 3.9% -4.8% 24.5% 1, % % 25.0% 1, % 21.3% % 21.5% 20.5% Q15 2Q16 1H15 1H16 C o n s o l i d a t e d B r e a k d o w n of C O G S 1 H R $ m i l l i o n COGS 1H2016 R$ 1.1 billion (79.5% of CNR) Others 11.4% Depreciation 3.7% Labor 14.7% Raw material 70.2% 24

25 Financial Results E B I T D A E B I T D A M a r g i n R $ m i l l i o n Adjusted EBITDA CAGR -26.6% 60.1% 24.3% 59.0% 13.4% % 13.3% 13.0% % 6.4% 10.8% 6.8% 8.5% 7.4% 12.4% Q15 2Q16 1H15 1H16 2Q15 2Q16 E B I T D A E B I T D A M a r g i n s Q u a r t e r l y R $ m i l l i o n 10.8% 6.4% 5.0% 6.3% % Q15 3Q15 4Q15 1Q16 2Q16 25

26 Financial Results N e t I n c o m e N e t M a r g i n R $ m i l l i o n 6.5% % 5.5% 5.3% % 0.0% 1.0% 0.1% -0.2% Q15 2Q16 1H15 1H16 N e t I n c o m e N e t M a r g i n Q u a r t e r l y R $ m i l l i o n 0.0% -0.5% -2.6% -1.3% 1.0% Q15 3Q15 4Q15 1Q16 2Q16 26

27 Financial Results C o n s o l i d a t e d I n c o m e S t a t e m e n t S e g m e n t R $ M i l l i o n /% Vehicles and Trailers/Semi- Trailers Autoparts Financial Services Consolidated 2Q2016 2Q2015 Δ% 2Q2016 2Q2015 Δ% 2Q2016 2Q2015 Δ% 2Q2016 2Q2015 Δ% Grosse Revenue 379, , % 453, , % 39,626 48, % 872, , % Deduction in Gross Revenue -71,402-72, % -100,827-97, % -3,475-3, % -175, , % Net Revenue 308, , % 352, , % 36,150 44, % 696, , % Cost of Sales and Services -275, , % -256, , % -2,287-4, % -534, , % Gross Profit 32,420 42, % 96,082 73, % 33,864 40, % 162, , % GROSS MARGIN (%) 10.5% 12.3% -1.8 p.p. 27.3% 21.3% 6.0 p.p. 93.7% 89.9% 3.7 p.p. 23.3% 21.3% 2.0 p.p. Operating Expenses -45,076-42, % -46,581-61, % -25,094-36, % -116, , % EBIT -12, % 49,501 12, % 8,769 3, % 45,615 15, % EBITDA -2,939 9, % 69,352 33, % 8,887 4, % 75,300 47, % EBITDA MARGIN (%) -1.0% 2.7% -3.6 p.p. 19.7% 9.6% 10.1 p.p. 24.6% 10.1% 14.5 p.p. 10.8% 6.4% 4.4 p.p. Adjusted EBITDA 6,240 10, % 70,912 34, % 9,205 8, % 86,357 54, % Adjusted EBITDA Margin (R$) 2.0% 3.1% -1.0 p.p. 20.1% 10.1% 10.1 p.p. 25.5% 23.8% 1.6 p.p. 12.4% 7.4% 5.0 p.p. 27

28 Financial Results C o n s o l i d a t e d I n c o m e S t a t e m e n t b y S e g m e n t / Q u a r t e r l y R $ M i l l i o n /% 2Q2015 3Q2015 4Q Q2016 2Q2016 Consolidated Net Revenue , % Vehicles and trailers/semi-trailers 46.8% 53.7% 54.9% 50.0% 51.3% 44.2% % Autoparts 47.1% 41.9% 42.1% 45.8% 43.9% 50.6% % Financial Services 6.1% 4.4% 3.0% 4.2% 4.8% 5.2% Consolidated Gross Profit % Gross Margin 21.3% 20.3% 19.5% 20.7% 17.8% 23.3% EBITDA % EBITDA Margin 6.4% 5.0% 2.6% 5.2% 6.3% 10.8% Net Income % Net Income 0.0% -0.5% -2.6% -0.8% -1.3% 1.0% 28

29 Operating Results E x p o r t s U S $ M i l l i o n CAGR -14.4% 10.9% -4.4% -19,9% -12,5% Q15 2Q16 1H15 1H16 E x p o r t s - D e s t i n a t i o n b y e c o n o m i c b l o c 1 H U S $ M i l l i o n 41% 39% 29% 34% 2% 2% 14% 8% 1% 2% 9% 11% 4% 4% 1% 1% MERCOSUR + CHILE NAFTA EUROPE AFRICA ASIA SOUTH AND CENTRAL AMERICA MIDDLE EAST OCEANIA 1H2015 1H

30 Financial Results I N V E S T M E N T S R $ m i l l i o n CAGR -10.2% +R$ Million Investment in Fras-le (Capital Increase) % -71.3% Q15 2Q16 1H15 1H16 S h a r e h o l d e r s E q u i t y R O E R $ m i l l i o n 23.0% 1, % 1, , % 15.1% 1, ,277.3 CAGR -1.5% 1, % -2.0% H16 30

31 Financial Results G r o s s D e b t B r e a k d o w n 1 H R $ % Total gross debt R$ 2,379,707,600 Gross debt in BR currency R$ 1,634,028,077 Gross debt in foreign currency R$ 745,679,523 USD rate (Jun. 30, 2016) R$ Foreign Currency 31.3% Reais 68.7% C o n s o l i d a t e d W o r k i n g C a p i t a l R $ M i l l i o n 1 H R$ Mn 1, H C U S T O M E R S I N V E N T O R I E S R E C O V E R A B L E T A X E S S U P P L I E R S C U S T O R M E R S A D V A N C E S O T H E R S 1 H

32 Financial Results G r o s s D e b t B r e a k d o w n 1 H R $ 000 % D e b t N e t D e b t / E B I T D A R $ m i l l i o n , , , , Consolidated Net Debt (without Randon Bank) H15 1H16 1H15 1H16 32

33 Financial Results C o n s o l i d a t e d N e t D e b t ( w i t h o u t R a n d o n B a n k ) R $ M i l l i o n 1 H *Net Debt/EBITDA Consolidated Net Debt (without Randon Bank) (R$ Million) 2.15 x 1.68 x 1.45 x 4.24 x 1.35 x 1, , , , , , , , , , ,167.6 Dec, 2012 Dec, 2013 Dec, 2014 Adjusted Dec, 2015 Adjusted Jun, 2016 Cash Loans Consolidated Net Debt (without Randon Bank) The chart above shows the company s debt, without the cash and debt indicators of the Randon Bank. The comparative EBITDA used to calculate debt is adjusted to the non-recurring effects of the period. Consolidated net debt at the end of 1H2016 amounts to R$ million, a multiple of 3.54x EBITDA over the last 12 Months (2.20x if considering the EBITDA adjusted to the non-recurring effects of the period). Consolidated net debt (without Randon Bank) at the end of 1H2016 amounts to R$ million, a multiple of 2.23x EBITDA over the last 12 Months (1.35x if considering the EBITDA adjusted to the non-recurring effects of the period). 33

34 Capital Markets R A P T 4 P r i c e / D a i l y L i q u i d i t y R $ p e r s h a r e R $ ,7% 0.9% % H15 1H16 Note: When comparing results with prior years, we have already taken into account the updated quotation with regard to the effect of bonus and payment of dividends. D i v i d e n d s a n d I n t e r e s t o n E q u i t y R $ m i l l i o n R $ p e r s h a r e Bonus 25%

35 Sustainability E m p l o y m e n t 1 H , % 10,104 1H2015 Employees S o c i a l I n v e s t m e n t s R$ 77 million Benefits education, food, private retirement plan, healthcare, transport, social responsability 7.1 R$ million Environment 35

36 Sustainability S o c i a l R e s p o n s a b i l i t y I m p l e m e n t e d P r o g r a m s AGE

37 Sustainability A d d e d V a l u e C o n s o l i d a t e d D i s t r i b u i t i o n 1 H R $ m i l l i o n 37

38 Outlook G U I D A N C E R E V I E W Guidance 2016 Total Gross Revenue Consolidated Net Revenue Investments Revenues from abroad Imports R$ 4.0 bn R$ 2.9 bn R$ 60 mn US$ 260 mn US$ 45 mn 38

39 Outlook Brazilian economic growth forecast: -3.23% in 2016 and +1.10% in 2017.* Harvest national production of grains is estimated in million tons, 8.9% lower than in prior cycle. ** Economy: Unstable political scenario keeps affecting the economy; Higher entrepreneur and consumer confidence levels; Strong need of public initiatives to promote businesses. Results 2Q16: Stable sales volumes with a slight increase in some segments, mainly in autoparts; Company is adjusted to the size of the market; Higher cash generation and strong debt reduction. Source: * BACEN / FOCUS Report (Aug 5,2016) ** 10th SAFRA-survey 2015/ Conab 39

40 Vehicles and Trailers o o o o Regional Business; Focus on primary sector, manufacturing and services; Trailers Domestic Fleet: 600,000 units (Source: ANTT) Average Age Trailers Domestic Fleet: 12 years (Source: ANTT) o Focus on primary sector; o Rail Nacional Fleet: 115,000 (Source: RF) o Market Share 2015: 45.4% o Total Market 2015: 4,608 units o o o Focus on services sector; Nacional Backhoe Fleet of 85,000 (Source: Abimaq) Average Age Domestic Fleet: 10 years 40

41 Vehicles and Trailers Chapecó/SC General Cargo, Grain trailers, Cereal Trailers, Sugar-Cane Trailers, Forestry Equipment, Reefers, Bases, trailers for coils, general cargo, siders and stainless steel tankers. Trailers Rosário/AR Caxias do Sul/RS Hopper, telescopic, gondola, tanker, sider and platform freight cars. Rail Cars Caxias do Sul/RS Backhoes and Off-Road Trucks. Specialty Vehicles 41

42 Autoparts o 5 plants in Caxias do Sul; o Plants in the USA and China; o Distribution centers in the USA, Europe e Argentina; o Focus on sales for OEMs, exports and aftermarket; o Exports to more than 100 countries; o Joint Ventures with World Class partners. 42

43 Autoparts China Incorporated Randon Implementos In Dec EUA São Leopoldo/RS Caxias do Sul/RS Caxias do Sul/RS Brake pads and shoes. Friction materials Hubs, drums, axles and suspension systems. Axles and Suspensions 43

44 Autoparts Caxias do Sul/RS Caxias do Sul/RS Caxias do Sul/RS Brakes and components for commercial vehicles. Articulation Systems, Fifth-wheel, King-Pin and landing gear. Cast iron parts: Hubs, drums, etc. Brakes Coupling Systems Cast Iron 44

45 Financial Services In the sectors of automobiles, real estate, trailers/semi-trailers, trucks, buses, minibuses, agricultural machinery and implements. Coop-payments Lines of financing for customers and suppliers. Services 45