Usiminas Presentation 2Q11. Apresentação Usiminas 2T11 - APIMEC

Transcription

1 Usiminas Presentation 2Q11 Apresentação Usiminas 2T11 - APIMEC

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

3 World Production Total 1,413 million tons Production per Company 626,6 Arcelor Mittal Baosteel 37,0 98,2 Posco 35,4 Nippon Steel 35,0 JFE 31,1 Jiangsu Shangang 23,2 Tata Steel 23,2 U.S. Steel 22,3 Ansteel Gerdau 22,1 18,7 30th - Usiminas 7,3 109,6 80,6 67,0 66,8 58,4 43,8 33,5 32,8 32,0 China Japan USA Russia India South Korea Germany Ukraine Brazil Turkey Source: World Steel 3

4 Steel Productors Per capita steel consumption - Kg/inhabitant Country Population (mm) South Korea , Japan Germany China ,332 Spain USA Chile Mexico BRAZIL Source: IABR 4

5 Value Transfer on the Steel Chain Profit distribution on the steel production chain USD billion 100% Steel Iron Ore Coal Source: IBS and Mackinsey Company 5

6 Brazilian Market Flat Steel Production thousand tons Apparent Consumption thousand tons Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Inventories in the Distribution Network flat Flat Steel Imports thousand tons Thousand tons 2,4 2,6 2, Monthly basis 3,9 4,0 3,6 3,1 3, Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Source: IABR / INDA 6

7 Real appreciation Almost 50% appreciation when compared to ,5 R$ US$ 2 1,5 1 0,5 0 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 Fonte: Brazilian Central Bank 7

8 Comparison on integrated mills Integrated mills CAPEX - US$/ton of crude steel Integrated slab facility Rolling equipment Brazil India China Source: McKinsey 8

9 Domestic Market Benefit from the Brazilian positive outlook GDP forecast: : ~3.5% p.a. Brazilian investments during the period : R$1.6 trillion (63% growth ) Industry R$614 billion Infrastructure: R$380 billion Housing and sportive events: R$607 billion MEDIUM AND LONG TERM PROJECTS ~ R$ 103 Bi ~ R$ 12 Bi ~ R$ 955 Bi ~ R$ 153 Bi ~ US$ 224 Bi Source: BNDES 9

10 Agenda Market Overview Usiminas and its Business Units Financial Highlights 10

11 Time Line Usiminas delivers what it promises Selling of Ternium shares Self-sufficiency Iron Ore Energy 1956 Foundation of Usiminas 1962 Operation Start Up 2005 Listing on Latibex Privatization Usiminas:1991; Cosipa: Aquisition of J. Mendes iron ore mines Aquisition of Zamprogna 2009 Soluções Usiminas, consolidation of the companies Rio Negro, Dufer, Fasal and Zamprogna e industrial units Usial and Usicort Single CNPJ: Cosipa is incorporated by Usiminas 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 self-sufficiency. ADR II approval Leasing Agreement with MBL Optimization Plan of the Plants and Sincron (CLC) 11

12 Strategically Located Mining Steel Steel Processing Capital Goods 12

13 Everyday Steel Apliances Auto Industries Autoparts Electric and Electronic Agricultural Machines Household Appliances Cold Rolled and Coated (EG e HDG) Hot Rolled Cold Rolled Heavy Plates and Hot Rolled Cold Rolled and Coated (EG e HDG) Civil Construction Ship-Building Tubes Pressure Vessels Heavy Plates, Cold and Hot Rolled and Coated (EG e HDG) Heavy Plates Heavy Plates and Hot Rolled Heavy Plates 13

14 Shareholder Composition Voting Capital - ON Total Capital 1,013,786,190 10,4% 27,8% Nippon Group 25,7% Votorantim Group / Camargo Corrêa Usiminas Pension Fund 49,8% 50,2% Free Float 10,1% 26,0% Previ Control Group: 63.9% of Voting Capital ON ON 505,260,684 PN PN 508,525,506 14

15 UPSTREAM DOWNSTREAM Usiminas 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 15

16 Results Accounted by Business Unit Income Statement per Business Units - Non Audited R$ million Mining Steel Steel Processing Capital Goods Consolidated 2Q11 1Q11 1H11 1H10 2Q11 1Q11 1H11 1H10 2Q11 1Q11 1H11 1H10 2Q11 1Q11 1H11 1H10 2Q11 1Q11 1H11 1H10 Net Revenues ,793 2,691 5,484 6, ,102 1, ,026 3,063 6,089 6,629 COGS (64) (58) (123) (137) (2,628) (2,684) (5,312) (5,135) (452) (541) (993) (1,070) (314) (290) (604) (579) (2,606) (2,765) (5,370) (5,103) Gross Profit ,526 Operating Income (Expenses) (30) (22) (52) (35) (95) (36) (131) (157) (51) (54) (105) (73) (24) (27) (51) (45) (198) (137) (336) (311) EBIT (28) (1) ,215 EBITDA , ,582 EBITDA Margin 68% 65% 66% 64% 7% 4% 6% 18% 4% 3% 3% 15% 7% 5% 6% 9% 12% 11% 12% 24% Note: All transactions among the business units are made at market value. MRS results are accounted through equity on Equity Income. *IFRS 16

17 Steel Ipatinga Cubatão 17

18 Flat Steel Production Usiminas has a full range of flat steel products Installed Capacity : 9.5 million tons / year 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 Production 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 Domestic Market Usiminas is focused on the domestic market with a product range to supply different sectors Sales thousand tons % Segments 2Q11 20% 32% 23% 15% 21% 15% Auto parts Auto industries 79% 80% 68% 77% 85% 15% 5% 3% 8% 7% 2% Large diam. Tubes Small diam. tubes Civil Construction/Shapes Household appliances Distributors 25% Industrial equipment Other 2Q10 3Q10 4Q10 1Q11 2Q11 Domestic Market Export Market 19

20 Investments Total amount in 2011 Strategic focus on enhancing competitiveness of current operations 2010 Coke Plant 3 (Ipatinga) In operation CLC Acelerated Cooling Process (Ipatinga) 2011 New Galvanizing Line 550 thousand tons (Ipatinga) New Hot Strip Mill 2.3 million tons (Cubatão) Mining Production Capacity Increase Ongoing Projects 20

21 Paraguay Argentina Russia Canada Equador USA China France South Korea Uruguay India Colombia Belgium Netherlands Spain Costa Rica Germany UK Japan Portugal Singapore El Salvador Mexico Chile Brazil Czech Rep. Turkey Italy 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 (co-generation) Participation in energy assets R$/MWh

22 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

23 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 23

24 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. 4th largest mining company in Brazil Production MM ton: 3,8 5,5 + 25% 6, Q11: production of 1.5 million tons MRS: 20% of voting shares and part of the Control Group Land in Itaguaí-RJ, acquired in 2008 MBL: Leasing Agreement signed in July

25 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$ bi. 70,0% 30,0% US$ 6.4 billion Mineração Usiminas S.A Estimated Market Value 25

26 Development Plan Iron Ore Production Capacity million tons by the end of the year Lump Pellet Feed Sinter Feed Capex until 2015 are estimated in R$ 4.1 billion including industrial facilities projects, equipments, loading terminals, etc. Reserves of 2.6 billion tons. 26

27 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 27

28 Itaguaí Port 28

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

30 Soluções Usiminas Steel Processing 11 industrial units, in MG, SP, RS, ES and PE. Processing capacity of 2 million tons/year. 2Q11 Gross Revenues of R$543 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

31 Steel Processing Automotiva Usiminas km Clients 500 km km 31

32 Automotiva Usiminas Steel Processing Pouso Alegre MG Close to major auto makers. Full service company 2Q11 Gross Revenues of R$105 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. 32

33 Capital Goods 33

34 Usiminas Mecânica Capital Goods Ipatinga MG The Group s capital goods arm is one of the largest capital goods companies in the country. 2Q11 Gross Revenues of R$414 million Market Sectors: Industrial Assembly Structures / Metal Bridges and Blanks Industrial Equipments Blanks and Stamping Funding and Railcars 34

35 Usiminas Mecânica Capital Goods 35

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

37 Results 2Q11 Highlights* Sales thousand tons Net Revenues R$ Million Q11 2Q11 1H10 1H11 1Q11 2Q11 1H10 1Q11 EBITDA R$ Million Net profit R$ Million Q11 2Q11 1H10 1H11 1Q11 2Q11 1H10 1H11 *IFRS 37

38 Results 2Q11 EBITDA / EBITDA Margin (Consolidated basis) - R$ million EBITDA 40% 34% 32% 37% 35% 46% 42% 35% 36% 38% Margem de EBITDA % 20% 12% * 2010* 1H11* *IFRS 38

39 Results 2Q11 EBITDA / ton (steel business unit) - R$ * 2010* 1H11* EBITDA / ton (steel business unit) - US$ * 2010* 1H11* *IFRS 39

40 Debt Focus on strong cash position and low indebtedness Consolidated Net Debt / EBITDA (R$) 0,2 0,0 0,0 0,0-0,2 0,1 0,1 0,3 0,5 3,2 1,6 0,8 1,0 4,3 3,8 1,3 3,1 1,9 1,7 1,5 1,6 1,4 4,9 4,1 3,6 3,3 2,9 1,0 2,3 1,6 2,8 0,8 0,1 0,7 0,6-0,1-0,1-1,0 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 CND (R$ bi) CND/EBITDA Revolving Credit Facility: The Board approved a Revolving Credit Facility, in the amount of US$750 million. The transaction may be executed by September 2011, with a club deal of 5 banks. 40

41 Debt Focus on strong cash position and low indebtedness Debt - R$ million* 5,630 Duration: R$: 43 months US$: 51 months 2,192 3,438 1, ,456 1,316 1,167 1, , Cash on Foreign Currency Local Currency 41

42 Balance Sheet Structure 2Q11 Capital Employed R$ Million Funded By R$ Million Net Fixed Assets Net Debt 77,0% 13,0% 23,0% 87,0% Net Working Capital Shareholders Equity Total: 21,860 42

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.