Presentation 4Q15 and 2015

Transcription

1 Presentation 4Q15 and 2015 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 ISSO 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 )

5 5 Shareholding Composition Total Capital 1,013,786,190 Voting Capital ON 49.84% 505,260,684 PN 50.16% 508,525, % 29.45% Nippon Group Ternium / Tenaris Usiminas Pension Fund Control Group (63.86%) Free Float 6.75% 27.66% Usiminas shares are traded on BM&FBovespa (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 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 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 World Crude Steel Market in 2015 Million Tons China Japan USA India South Korea Russia Germany Turkey Brazil Ukraine Capacity Excess of Capacity 704 2,351 Production 1,647 Source: World Steel Association 10

11 World Crude Steel Production % 20% European Union Europe (Others) 18% 10% 2% 8% 23% 2% 12% Others North America South America Africa China Asia and Oceania * 7% 3% 1% 13% 50% 2% 4% 971 million tons 1,665 million tons *Except China Source: World Steel Association 11

12 Largest Producers in 2014 Thousand Tons World Crude Steel Producers Brazilian Flat Steel Producers 1 ArcelorMittal 2 Nippon Steel & Sumitomo Metal Corporation 3 Hebei Steel Group 4 Baosteel Group 5 Wuhan Steel Group 6 POSCO 7 Shagang Group 8 Ansteel Group 9 Shougang Group 10 JFE 62 Usiminas 6,054 5,368 4, Usiminas CSN ArcelorMittal Aperam Gerdau Source: World Steel Association/ Instituto Aço Brasil 12

13 Crude Steel Consumption per Capita Kg per habitant China South Korea ,166 Japan United States Germany Spain Brazil Chile Mexico World Average Source: World Steel Association 13

14 Brazilian Flat Steel Market Million Tons 22% 5% 7% 11% 14% 13% 12% 15% 15% Production Consumption Imports Source: Instituto Aço Brasil / Usiminas Excludes Slabs 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 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 17

18 18 Sales Volume Steel Business Unit Thousand Tons 1,247 1,256 1,275 19% 12% 33% 12% 15% 24% 1,179 36% 19% 1,205 27% 12% 81% 88% 88% 85% 67% 76% 64% 81% 73% 88% 4Q14 1Q15 2Q15 3Q15 4Q15 Exports Domestic Market

19 19 Sales Volume Steel Business Unit Thousand Tons 6,565 25% 25% 5,916 18% 18% 6,881 27% 27% 6,220 13% 13% 5,541 17% 17% 4,915 27% 75% 82% 73% 87% 75% 82% 73% 87% 83% 83% 27% 73% 73% Exports Domestic Market

20 Exports Main Markets Steel Business Unit 4Q15 USA Argentina % 5% 5% 8% 18% Turkey China Vietnam 2% 1% 4% 16% 25% 6% 16% Germany 4% 11% 13% 13% Italy Spain United Kingdon 7% 7% 15% 18% Others 20

21 Cost of Goods Sold - COGS Steel Business Unit 3Q15 4Q15 7.3% 5.6% 2.7% 19.0% 7.1% 5.3% 2.3% 18.8% 8.9% 7.8% 10.5% 13.6% 10.3% 14.8% 10.6% 10.7% 11.1% 10.0% 10.9% 12.7% Labor (direct and indirect) Iron Ore and Pellets Depreciation Inventories Variation Structural Expenses Coal and Coke Energy and Fuels Other Raw Materials Spare Parts Others 21

22 Adjusted EBITDA and EBITDA Margin Steel Business Unit R$ Million 11% 13% 9% % (82) (179) 4Q14 1Q15 2Q15 3Q15 4Q15-8% Adjusted EBITDA Adjusted EBITDA Margin 22

23 23 Adjusted EBITDA Steel Business Unit R$ Million Adjusted EBITDA 3Q15 Higher Operational Result EBITDA before Extraordinary Effects Steel Unit Reestructuring Result of the Asset Sale/Write-Off Adjusted EBITDA 4Q15 (33) (82) 49 (94) (179) (52)

24 24 Adjusted EBITDA and EBITDA Margin Steel Business Unit R$ Million 16% 14% 14% 9% 4% 5% 3% 1,819 1,806 1, Adjusted EBITDA Adjusted EBITDA Margin

25 25 Adjusted EBITDA Steel Business Unit R$ Million Adjusted EBITDA 2014 Excluding the Sale of Surplus Electric Energy in 2014 Excluding the Result of the Assets Sale/Write-Off Adjusted EBITDA in 2014 without Sale of Electric Energy and the Assets Sale/Write-Off Lower Operational Result EBITDA before Extraordinary Effects Sale of Surplus Electric Energy Steel Unit Reestructuring Result of the Assets Sale/Write-Off Adjusted EBITDA 2015 (323) (30) 1,546 (813) 1, (94) (45)

26 26 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)

27 27 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)

28 28 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

29 29 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

30 30 Industrial Reconfiguration Outlook Flat steel consumption in the domestic market: fall of 12% in 2015 x 2014, with no expectation of recovery Excess of global production capacity: 704 million tons Continually decrease of international prices High tax burden Unfair competition with steel imports High energy costs FX Rate devaluation, increasing raw materials costs Low demand and low competitiveness require structural adjustments in scale and productivity USIMINAS STRATEGY Temporarily shutdown of the primary areas of Cubatão plant (Sinter and Coke plants, Blast Furnaces and Steelworks), remaining in operations its hot and cold rolling lines and port terminal Scale adjustment and increase on competitiveness

31 31 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

32 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 32

33 Logistics Mining Business Unit Mineração Usiminas 40 Km 60 Km MODAL Cargo Terminal TCS - Sarzedo Cargo Terminal IPATINGA Plant CUBATÃO Plant Sepetiba/Itaguaí Port Export 33

34 34 Retroarea in Itaguai Port Mining Business Unit

35 35 Sales Volume Mining Business Unit Thousand Tons 1,161 1, , ,122 1,048 1, Q14 1Q15 2Q15 3Q15 4Q15 Sales to 3rd parties - Domestic Market Sales to Usiminas

36 36 Sales Volume Mining Business Unit Thousand Tons 6,754 6, , ,115 1, ,036 5, , ,981 4,322 4,331 4,219 4,110 3, Exports Sales to 3rd parties - Domestic Market Sales to Usiminas

37 37 Iron Ore Price PLATTS (62% Fe CFR China) US$/ton Q14 1Q15 2Q15 3Q15 4Q15

38 38 Iron Ore Price PLATTS (62% Fe CFR China) US$/ton

39 Adjusted EBITDA and EBITDA Margin Mining Business Unit R$ million 27% 24 36% 43-5% (6) (24) -27% (102) -119% 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted EBITDA Adjusted EBITDA Margin 39

40 Adjusted EBITDA Mining Business Unit R$ million Adjusted EBITDA 3Q15 Higher Operational Result EBITDA before Extraordinary Effects Mining Unit Reestructure Adjusted EBITDA 4Q (24) (163) (102) 40

41 41 Adjusted EBITDA and EBITDA Margin Mining Business Unit R$ million 67% 62% 49% 51% 37% (89) -22% Adjusted EBITDA Adjusted EBITDA Margin

42 42 Adjusted EBITDA Mining Business Unit R$ million Adjusted EBITDA 2014 Excluding the Sale of Surplus Electric Energy in 2014 Adjusted EBITDA in 2014 without Sale of Electric Energy Lower Operational Result EBITDA before Extraordinary Effects Sale of Surplus Electric Energy Mining Unit Reestructuring Adjusted EBITDA 2015 (56) (89)

43 43 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 2015 Recife Santa Luzia Betim Serra Taubaté Guarulhos São Paulo Porto Alegre

44 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$869 million in 2015 Steel Structures Brasília 3rd Bridge 44

45 45 Agenda Usiminas Profile Market Data Usiminas and its business units Financial Results

46 46 Adjusted EBITDA and EBITDA Margin Consolidated R$ million 12% 14% 8% % (65) (250) 4Q14 1Q15 2Q15 3Q15 4Q15-10% Adjusted EBITDA Adjusted EBITDA Margin

47 47 Adjusted EBITDA Consolidated R$ million Adjusted EBITDA 3Q15 Excluding the Result of the Assets Sale/Write- Off on the 3Q15 Adjusted EBITDA in 3Q15 without the Assets Sale/Write- Higher Operational Off Result EBITDA before Extraordinary Effects Business Reestructuring Result of the Assets Sale/Write- Off Adjusted EBITDA 4Q (257) (65) (54) 11 (250) (50)

48 Adjusted EBITDA and EBITDA Margin Consolidated R$ million 20% 14% 11% 14% 16% 5% 3% 2,650 1,486 1,264 1,806 1, Adjusted EBITDA Adjusted EBITDA Margin 48

49 49 Adjusted EBITDA Consolidated R$ million Adjusted EBITDA 2014 Excluding the Sale of Surplus Electric Energy in 2014 Excluding the Result of the Assets Sale/Write-Off Adjusted EBITDA in 2014 without Sale of Electric Energy and the Assets Sale/Write-Off Lower Operational Result EBITDA before Extraordinary Effects Sale of Surplus Electric Energy Business Reestructuring Result of the Assets Sale/Write-Off Adjusted EBITDA 2015 (379) (54) 1,863 (891) 1, (257) 540 (57) 291

50 Comparing Adjusted and CVM 527 EBITDA Consolidated R$ Thousand 50

51 51 Cash Position and Debt Profile Consolidated R$ million 2, ,920 1,825 2,158 Duration: R$: 28 months US$: 24 months ,622 1,720 1, ,134 1, Cash on Local Currency Foreign Currency

52 52 Cash and Indebtedness Consolidated - R$ million 6,702 7,149 7,605 8,111 7,886 3,850 4,528 4,716 5,714 5,862 2,852 2,621 2,889 2,397 2,024 4Q14 1Q15 2Q15 3Q15 4Q15 Cash Net Debit Gross Debit

53 53 CAPEX Consolidated - R$ million 3, , ,070 1, , , Others Mining Steel

54 54 G&A Evolution Consolidated - R$ million 5.2% 4.6% 4.0% 4.2% 4.5% Q14 1Q15 2Q15 3Q15 4Q15 G&A G&A/Net Revenues

55 Working Capital Consolidated R$ billion Q14 1Q15 2Q15 3Q15 4Q15 55

56 56 Working Capital Steel Inventories Thousand Tons Inventory turnover (days) Q14 1Q15 2Q15 3Q15 4Q15

57 Net Income (Loss) - Consolidated R$ Million 208 (331) (1,042) 257 (1,740) (1,627) (3,685) 257 1,039 1,688 3Q15 4Q Impairment of Assets (Net of Withholding Taxes) Business Reestructuring Net Income (Loss) without Extraordinary Effects 57

58 Income Statement Per Business Unit R$ million Note: All intercompany transactions are made at arm s length basis 58

59 Income Statement Per Business Unit R$ million Note: All intercompany transactions are made at arm s length basis 59

60 Cristina Morgan C. Drumond Head of IR Phone: Fax: Leonardo Karam Rosa IR Manager Phone: Diogo Dias Gonçalves IR Manager Phone: Renata Costa Couto IR Analyst 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.