Usiminas Presentation 1Q11

Transcription

1 Usiminas Presentation 1Q11

2 Agenda Market Overview Usiminas and its Business Units Financial Highlights 2

3 Agenda Market Overview Usiminas and its Business Units Financial Highlights 3

4 World Production Total 1,413 million tons Arcelor Mittal Baosteel Posco Nippon Steel JFE Jiangsu Shangang Tata Steel Ansteel Severstal Evraz 33 rd Usiminas 2009 Production China China Japão Japan EUA USA Rússia Russia Índia India Coreia South do Corea Sul Alemanha Germany Ukraine Brasil Ucrânia Ucânia Brazil Brasil Turquia Turkey 2010 Production Source: World Steel 4

5 Largest Steel Productors 2009 per capita steel consumption Population (million) 48 South Coreia do Corea Sul Kg/inhabitant ,344 Japan Japão China Alemanha Germany Itália Italy EUA USA México Mexico Brasil Argentina ,203 India 48 Source: World Steel Association

6 Brazilian Market Flat Steel Production thousand tons Apparent Consumption thousand tons Inventories in the Distribution Network (flat ) ,244 1,238 1,157 1,192 1,039 1, Flat Steel Imports thousand tons 1, Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 JAN11 FEB11 MAR11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Source: IABR / INDA Thousand tons Monthly basis 6

7 Value Transfer on the Steel Chain Profit distribution on the steel production chain 100% = USD billion Steel Iron Ore Coal Source: IBS and Mackinsey Company 7

8 Domestic Market Benefit from the Brazilian positive outlook GDP forecast: : ~4.5% a.a. Brazilian investments during the period : R$1.6 billion (63% growth ) Industry R$614 billion Infrastructure: R$380 billion Housing and sportive events: R$607 billion Medium and long term projects: ~ US$ 55 Billion ~ US$ 12 Billion ~ US$ 224 Billion Source: BNDES 8

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

10 Time Line Usiminas delivers what it promises 1956 Foundation of Usiminas 1962: Operation Start Up Privatization Usiminas:1991; Cosipa: : Listing on Latibex 2008: Aquisition of J. Mendes iron ore mines Aquisition of Zamprogna 2009: Soluções Usiminas, con -solidation of the companies Rio Negro, Dufer, Fasal and Zamprogna e industrial units Usial and Usicort Single CNPJ: Cosipa is incorporated by Usiminas 2010 Creation of Mineração Usiminas and join venture with Sumitomo Group of 30% of the plant Port Agreement between Mineração Usiminas and MMX, LLX and PortX for iron ore shipment. 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 2015 Self-sufficiency Iron Ore; Energy 10

11 Strategically Located 11

12 Shareholder Composition Voting Capital Total Capital Control Group: 63.9% of Voting Capital Control Group: 31.8% 63.9% of Voting Capital 26.0% Nippon Group 27.8% ON s 10.1% Grupo Votorantim / Camargo Corrêa Usiminas Pension Fund 13.8% 5.8% 12.9% 5.0% ON s 12.3% Free Float PN s 10.4% 25.7% Previ 50.2% 12

13 Usiminas Complete solution of services and value added products through its Business Units: Mining Steel Steel Procecessing Capital Goods Mineração Usiminas * Ipatinga Soluções Usiminas * Usiminas Mecânica * Cubatão Unigal Usiminas * Automotiva Usiminas * Metform and Codeme stake ** UPSTREAM DOWNSTREAM * Controled by Usiminas ** Results accounted through equity income 13

14 Results Accounted by Business Unit R$ Million* Income Statement per Business Units - Non Audited R$ million Mining Steel Steel Processing Capital Goods Consolidated 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 Net Revenues ,691 2, ,063 3,092 COGS (58) (83) (2,684) (2,641) (542) (575) (290) (341) (2,765) (2,891) Gross Profit (88) Operating Income (Expenses) (23) (30) (36) 73 (54) (84) (27) (25) (137) (65) EBIT (29) (15) (1) (68) EBITDA (38) EBITDA Margin 65% 66% 4% 4% 3% (6%) 5% 9% 11% 11% Note: MRS results are accounted through equity on Equity Income. *IFRS 14

15 Steel Ipatinga Cubatão 15

16 Flat Steel Production Usiminas has a full range of flat steel products Installed Capacity : 9.5 million tons / year Slab Caster Heavy Plates EG HDG Slabs Hot Coils Cold Coils Ipatinga Plant Cubatão Ipatinga Plant Cubatão Nominal Production Plant Rolling Optmized Capacity Rolling Capacity 5,000,000 t 1,000,000 t 3,550,000 t 2,500,000 t 360,000 t 500,000 t 5,000,000 4,500,000 t 1,000,000 t 3,550,000 2,100,000 t 2,500,000 1,200,000 t 360, ,000-4,500,000 9,500,000 t 1,000,000 2,000,000 t 2,100,000 5,650,000 t 1,200,000 3,700,000 t 360,000 - t 500,000 - t - 1,900,000 2,000,000 2,500, , ,000-1,900,000 t 2,000,000 t 2,500,000 t 350,000 t 480,000 t 16

17 Domestic Market Usiminas is focused in the domestic market with a product range to supply different sectors thousand tons 1Q11 1,615 1,821 1,550 1,579 1,588 27% 21% 20% 32% 23% 73% 79% 80% 68% 77% 1ºT10 1Q10 2ºT10 2Q10 3ºT10 3Q10 4ºT10 4Q10 1ºT11 1Q11 Domestic Market Export Market Industrial equipment 5% Distributors 26% Other 11% Household appliances 2% Electronic equipment 4% Civil Construction and Shapes 8% Auto parts 19% Auto industries 15% Large diam. Tubes Small diam. 3% tubes 8% 17

18 Investments Total amount in 2011 R$ 2.8 billion STRATEGIC FOCUS IN ENHANCING COMPETITIVENESS OF CURRENT OPERATIONS To invest in increasing the supply of products with high technological content To invest in operacional efficiency and technological modernization Upstream and downstream verticalization 18

19 Energy Self-sufficiency by 2015 Considered alternatives: Consumption reduction through continuous improvements and small investments Technologies and optimization processes of fuel mix Technologies of energy generation from production processes (cogeneration) Participation in energy assets 19

20 Main Investments In operation Ongoing Projects Coke Plant 3 (Ipatinga) CLC Acelerated Cooling Process (Ipatinga) New Galvanizing Line 550 thousand tons (Ipatinga) New Hot Strip Mill 2.3 million tons (Cubatão) Mining Production Capacity Increase 20

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

22 Logistics Mineração Usiminas 40 Km 60 Km MODAL MODAL 540 kton/mês TCS TCS / TSA TSA kton/mês IPATINGA Mill EFVM Trammel CUBATÃO Mill / Port Sepetiba Port Itaguaí Porto Port (Ingá) Ingá kton/mês Porto Tubarão Port kton/mês Existing Routes New Routes Exports Exports Exports 22

23 Mining and Logistics Current status 4 mining sites, acquired from J. Mendes Group in Feb./2008 Located in Serra Azul-MG, one of the richest iron ore sites in Brazil. Production MM ton: % Q11: production of 1.6 million tons. MRS: 20% of voting shares and part of the Control Group. Land in Itaguaí-RJ, acquired in

24 Itaguaí Port 24

25 Mineração Usiminas Serra Azul São Joaquim de Bicas Igarapé USIMINAS Central Minerita USIMINAS East Comisa MMX USIMINAS Pau de Vinho Ferrous Ferrous Emicon USIMINAS West MBL Arcellor Mittal BR 381 Brumadinho Itatiaiuçu 25

26 Mining and Logistics Strategic partnership Acquisition, by the Japanese group Sumitomo Corporation, of 30% of Mineração Usiminas S.A., through the subscription of new shares, at the total maximum price of US$ billion. 70% 30% Estimated Market Value Mineração Usiminas S.A.: US$ 6.4 bi 26

27 Development Plan Iron Ore Production Capacity million tons by the end of the year Lump Capex until 2015 are estimated in R$ 4.1 billion including industrial facilities projects, equipments, loading terminals, etc. Reserves of 2.6 billion tons. 27

28 Steel Processing Soluções Usiminas Recife Betim Santa Luzia Campo Limpo Paulista Serra Taubaté Guarulhos São Paulo Caxias do Sul Cachoeirinha Porto Alegre 28

29 Soluções Usiminas 14 industrial units, in MG, SP, RS, ES and PE. Processing capacity of 2 million tons/year. 1Q11 Gross Revenues of R$667 million Leadership: In 2010, took over the leadership in the steel distribution sector, according to INDA. Investments: New Press Blanking Line with capacity of 72,000 tons at Guarulhos plant (SP), to supply the auto industry. The expected start up is in December

30 Steel Processing Automotiva Usiminas Pouso Alegre 500km 1.000km 1.500km Clients 30

31 Automotiva Usiminas Pouso Alegre MG Close to major auto makers. Full service company 1Q11 Gross Revenues of R$94 million Major Clients: Ford, Mercedes Benz, Fiat, Volkswagen, Volvo, General Motors, International Trucks, Honda Toyota, PSA Peugeot Citroën, Scania. Highlights: New production line of truck cabines was inaugurated on March 30 of this year, with the capacity to produce 72 thousand units/year. 31

32 Capital Goods 32

33 Usiminas Mecânica Ipatinga MG The Group s capital goods arm is one of the largest capital goods companies in the country. 1Q11 Gross Revenues of R$378 million Market Sectors: Structures and Metal Bridges. Industrial Equipments. Industrial Assembly. Blanks and Stamping. Funding, Forgery and Railcars. Steel EPC Unit. (Engineering Procurement Construction) Oil and Gas EPC Unit. 33

34 Agenda Market Overview Usiminas and its Business Units Financial Highlights 34

35 Results 1Q11 Highlights* Sales thousand tons Net Revenues R$ Million Ebitda R$ Million Net profit R$ Million *IFRS 35

36 2500 Results 1Q11 50,0% 2000 Ebitda - R$ million* 45,0% 40,0% 35,0% % 30,0% 23.4% 24.3% 22.7% 25,0% % % 14.6% % 11.0% ,0% 15,0% 10,0% 139 5,0% 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 0,0% *IFRS EBITDA (R$) EBITDA Margin 36

37 0,8 0,1-0,1-0,1-1,0 0,7 0,6 1,6 3,2 4,3 3,8 3,1 2,9 3,3 4,1 4,9 3,6 2,3 Debt Focus in strong cash position and low indebtedness R$ Million 5,887 Consolidated Net Debt / EBITDA (R$) 0,2 0,0 0,0 0,0-0,2 0,1 0,1 0,3 0,5 0,8 1,0 1,3 1,9 1,7 1,5 1,6 1,4 1, Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 CND (R$ bi) CND/EBITDA Debt Duration: R$: 42 months US$: 50 months , ,436 1,297 1, , Cash on Local Currency Foreign Currency 37

38 ADR Level I Investor Relations Crisitna Morgan C. Drumond Head of IR cristina.drumon@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 Teixeira da C. Paes 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.