1Q18 Presentation Classification of Information Grupo de Acesso:

Transcription

1 1Q18 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 03/31/ ,62 10,55 12,30 10,83 12,31 10,12 10,52 8,26 9,10 10,92 5,05 4,02 1,55 4, T18 USIM3 Note: The prices are adjusted by removing the effects of events such as Bonus and Unfolding USIM5 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 831,7 Japan 104,7 India 101,4 USA 81,6 Russia 71,3 South Korea 71,1 Germany 43,3 Nominal Excess of Capacity 661 Turkey Brazil Italy 37,5 34,4 24,1 Capacity 2,351 Production 1,690 Source: World Steel Association/OECD 11

12 World Crude Steel Production % 2% 4% 9% China 7% 3% 3% 1% 6% 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% 14,3 13,1 11,9 15,2 14,5 14,3 13,7 14,9 15,014,7 14,3 14,2 13,2 13,4 12,3 13,7 10,2 10,6 9,3 10, Production Consumption Imports Source: Instituto Aço Brasil / Usiminas Excludes Slabs 13

14 Brazilian Flat Steel Apparent Consumption Evolution Quarterly - Thousand Tons ,9% ,9% Q17 2Q17 3Q17 4Q17 1Q18 Sales of the Plants Imports Total Source: Usiminas Commercial Planning 14

15 15 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

16 16 Agenda Usiminas Profile Market Outlook Usiminas and its business units Financial Results

17 Vendas SALES de VOLUME- Aço Siderurgia STEEL - Trimestral Steel Business Unit Quarterly - Thousand Tons % % Q17 2Q17 3Q17 4Q17 1Q18 Exports Domestic Market 17

18 Exports Main Markets % 4Q17 1Q18 1% 1% 5% 1% 10% 2% 28% Argentina Germany Belgium Mexico United Kingdom Switzerland 4% 5% 2% 4% 3% 6% 1% 37% 13% 3% 5% 31% Italy Colombia Portugal Spain Luxembourg 5% 6% 27% Others Europe: 66% Europe: 49% 18

19 19 Cost of Goods Sold - COGS Steel Business Unit 4Q17 1Q18-4% 3% 5% 10% 35% Other Raw Materials Labor (direct and indirect) Coal and Coke Energy and Fuels 6% 3% 5% 9% 36% 6% Iron Ore and Pellets Spare Parts 7% 8% Depreciation 9% 13% 15% Structural Expenses Inventories Variation Others 8% 13% 14%

20 EBITDA AND EBITDA MARGIN Steel Business Unit Quarterly - R$ Million 21% 20% 19% 17% 15% Q17 2Q17 3Q17 4Q17 1Q18 Reported EBITDA Reported EBITDA Margin 20

21 21 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)

22 22 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 primary areas temporarily suspended and currently processes acquired plates. 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.

23 23 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)

24 24 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

25 25 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

26 26 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

27 27 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

28 28 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

29 IRON ORE SALES Mining Business Unit Quarterly - Thousand Tons +20% Q17 2Q17 3Q17 4Q17 1Q18 Sales to Usiminas Sales to 3rd parties - Domestic Market Exports Total 29

30 Iron Ore Price PLATTS (62% Fe CFR China) US$/ton Q17 2Q17 3Q17 4Q17 1Q18 Iron Ore Price - US$/t CFR China 30

31 EBITDA AND EBITDA MARGIN Mining Business Unit Quarterly - R$ million 253% % 22% 20% 19% * 1Q17 2Q17 3Q17 4Q17 1Q18 Reported EBITDA Reported EBITDA Margin *Extraordinary effect of R$ 201 milhões from Porto Sudeste s agreement 31

32 32 Description Soluções Usiminas - Steel Processing o o 6 industrial units in different Brazilian states: MG, SP, RS, ES and PE Processing capacity of 2 million tons of steel/year o Net Revenue of R$2.5 billion in 2017 Suape Santa Luzia Betim Taubaté Guarulhos Porto Alegre

33 EBITDA AND EBITDA MARGIN Steel Transformation - Soluções USIMINAS Quarterly - R$ Million 7% 5% 4% 3% 3% Q17 2Q17 3Q17 4Q17 1Q18 Reported EBITDA Reported EBITDA Margin 33

34 34 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$288 million in 2017 Steel Structures Brasília 3rd Bridge

35 EBITDA AND EBITDA MARGIN Capital Goods USIMINAS Mecânica Quarterly - R$ Million 29% 33 (4) -5% (2) -2% (25) (2) -4% -35% 1Q17 2Q17 3Q17* 4Q17 1Q18 Reported EBITDA Reported EBITDA Margin *Extraordinary effect of R$ 22 million negative related to Regularize Program adherence. 35

36 36 Agenda Usiminas Profile Market Data Usiminas and its business units Financial Results

37 EBITDA AND EBITDA MARGIN Consolidated Quarterly - R$ Million 29% 23% 20% 17% 15% * ** 1Q17 2Q17 3Q17 4Q17 1Q18 Reported EBITDA Reported EBITDA Margin *Extraordinary effect of R$ 201 million from Porto Sudeste s agreement **Extraordinary effect of R$ 40 million negative related to Regularize Program participation. 37

38 38 Debt Profile (Principal) Consolidated R$ millions Duration: R$: 50 months US$: 56 months Cash Local Currency Foreign Currency

39 CASH POSTION AND INDEBTEDNESS (WITH INTEREST MONEY) Consolidated R$ millions Duration : R$: 50 months US$: 56 months Q17 2Q17 3Q17 4Q17 1Q18 Net Debt Cash Gross Debt 39

40 CAPEX Consolidated R$ millions Q17 2Q17 3Q17 4Q17 1Q18 Steel Capital Goods Steel Transformation Mining Total 40

41 G&A EVOLUTION - CONSOLIDATED R$ million 4,0% 3,8% 3,9% 3,5% 3,2% Q17 2Q17 3Q17 4Q17 1Q18 G&A G&A/Net Revenues 41

42 WORKING CAPITAL Consolidated R$ billions +5.6 % 2,6 3,1 3,1 2,8 3,0 1Q17 2Q17 3Q17 4Q17 1Q18 Working Capital 42

43 WORKING CAPITAL: STEEL INVENTORIES Thousand tons Q17 2Q17 3Q17 4Q17 1Q18 Inventory turnover (days)

44 Gross Profit, EBIT and Net Income Consolidated - R$ million (45) 1Q17 2Q17 3Q17 4Q17 1Q18 USD/BRL END OF PERIOD Gross Profit EBIT Net Income 44

45 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 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 Net Revenue ,003 2, (827) (608) 3,244 3,077 Domestic Market ,580 2, (827) (608) 2,646 2,500 Exports COGS (179) (154) (2,460) (2,371) (656) (629) (74) (54) (2,632) (2,662) Gross Profit (Loss) (4) (90) (62) Operating Income (Expenses) (56) (48) (196) (267) (26) (28) (12) (3) 2 2 (288) (344) Selling (25) (18) (37) (36) (10) (11) (3) (4) (1) (1) (76) (70) General and Administrative (6) (3) (78) (86) (13) (14) (9) (8) 3 3 (103) (108) Others, Net (25) (27) (81) (145) (3) (2) (109) (166) EBIT (7) (88) (60) Adjusted EBITDA (2) (37) (12) Adj.EBITDA Margin 19% 20% 19% 15% 4% 3% 29% -4% 5% 2% 20% 15% *Consolidated 70% of Unigal Note: All intercompany transactions are made at arm s length basis 45

46 ADR Nível I Leonardo Karam Rosa IR Manager leonardo.rosa@usiminas.com Tel: Danielle Ap. Maia IR Analyst danielle.aparecida@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