Usiminas’ Results 4Q12 and 2012
33
Apresentação Usiminas 2T11 - APIMEC Usiminas’ Results 4Q12 and 2012 Information Classification: Public
Transcript of Usiminas’ Results 4Q12 and 2012
Apresentação Usiminas
2T11 - APIMEC
Usiminas’ Results
4Q12 and 2012
Information Classification: Public
Clique para
editar o texto
mestre
Usiminas and its
Business Units
Operational
Improvements
and Financials
Results
Profile and
Markets
Agenda
2
Aquisition of J.
Mendes iron ore
mines
Aquisition of
Zamprogna
Foundation of
Soluções Usiminas
due the
consolidation of
the companies Rio
Negro, Dufer,
Fasal and
Zamprogna,
Usial and Usicort
Single CNPJ:
Cosipa is
incorporated by
Usiminas
Foundation
of Usiminas
1962- Operation
Start Up
Privatization
Usiminas:1991
Cosipa: 1993
Listing on Latibex
Creation of Mineração Usiminas
Partnership with
Codeme and Metform
Selling of Ternium
shares
Joint Mining and
Cooperation
Agreement with
MBL and Ferrous
Commercials
Agreements with
MMX to explore
Pau de Vinho and
to use the
Southest Port
Negociation with
J. Mendes
concluded
Acquisition of the
former Litigation
Area
1956
1991
2005
2008
2009
2010
2011
Entrance of Ternium/ Tenaris
in Usiminas’ Control Group
New shareholders
agreement singned among Niippon Group,
Ternium / Tenaris and Usiminas Pension Fund
until 2031
2012
Time Line and Shareholder Composition
3
4
Mining
Steel
Steel processing
Capital Goods
Strategically Located
Mining
Steel
Steel Processing Capital Goods
UPST
REA
M
DO
WN
ST
REA
M
* Controled by Usiminas ** Results accounted through equity income
Ipatinga
Automotiva Usiminas *
Metform and Codeme
stake **
Cubatão
Unigal Usiminas * Mineração Usiminas *
Soluções Usiminas * Usiminas Mecânica *
Complete Solution of Products and Services
5
Million tons
32.9
34.7
35.9
42.7
69.3
70.6
76.7
88.6
107.2
708.8
Ukraine
Brazil
Turkey
Germany
South Korea
Russia
India
USA
Japan
China
Source: World Steel Association 6
Capacity
2,090
Production
1,548
Consumption
1,409
Excess of Capacity
542
Excess of Production
139
World Crude Steel Production in 2012
15.6
14.0
15.4
2010 2011 2012
14.5
13.6
14.0
2010 2011 2012
Flat Steel Brazilian Market
Imports
1.0 1.0 1.0 0.9
2.8 2.8 2.7 2.6
1Q12 2Q12 3Q12 4Q12
Million Tons Monthly basis
7
3,145
1,929 1,779
2010 2011 2012
*
* Estimated
Production
Inventories in the Distribution Network
Apparent Consumption
Million tons
Source: IABR / INDA / Usiminas
Usiminas and its
Business Units
Operational
Improvements
and Financials
Results
Profile and
Markets
Agenda
8
Installed Nominal Capacity : 9.5 million tons / year
Slabs Hot Coils Cold Coils Heavy Plates Slab Caster EG HDG
1,950,000tons
Optimized
Rolling
Capacity
3,200,000tons 1,900,000tons 1,020,000tons 350,000tons
Cubatão Plant - 1,200,000tons - 4,400,000tons 1,000,000tons 4,500,000tons
3,700,000tons Nominal
Capacity 8,000,000tons 2,000,000tons 9,500,000tons 1,050,000tons 360,000tons
-
Ipatinga Plant 1,050,000tons 360,000tons 2,500,000tons 3,600,000tons 1,000,000tons 5,000,000tons
Galvanized
Flat steel production
Steel Business Unit
9
Auto Industries
Cold Rolled and
Galvanized (EG and HDG)
Ship-Building
Heavy Plates
Pipelines
Heavy Plates and Hot
Rolled
Pressure Vessels
Heavy Plates
Agricultural
Machines
Heavy Plates and Hot
Rolled
Civil Construction
Heavy Plates, Hot and Cold
Rolled and Galvanized (EG
and HDG)
Autoparts
Hot Rolled
Household
Appliances
Cold Rolled and
Galvanized (EG and
HDG)
Steel Business Unit
Everyday steel application
10
Steel Business Unit
1,783 1,858
1,549 1,509 1,672
1,845 1,837 1,804
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
5,637
7,299 6,699
7,158
2009 2010 2011 2012
Crude steel production – Thousand tons
Cubatão
Ipatinga
Quarterly
Annual
11
23%18%
16%
14%10%
8%
7%
3%1%
Distributors
Auto Parts
Auto Industries
Industrial Equipment
Civil Construction
Small Diameter Tubes
Household Appliances
Rolled Machinery
Other
Sales Breakdown by
Segments – 2012
Sales – Thousand tons
12
Steel Business Unit
4,043 4,914 4,871 5,044
1,588
1,651 1,045
1,837 5,631
6,565
5,916
6,881
2009 2010 2011 2012
Exports Domestic Market
Steel Business Unit
Production capacity of 2.3
million tons per year
Main Applications
Higher product performance and efficiency
Exclusive coils dimensions in Brazil
Higher productivity for customers
High level of automation
Lower electric energy consumption
High-strength steels
13
Hot Strip Mill II - Cubatão Galvanizing Line II - Ipatinga
Bigger production capacity
Increase in products portfolio
Deep drawing steel
Products Inovation
High-strength steels
Excellent flatness
Production capacity of 550
thousand tons per year
Concluded investments
Located in Serra Azul/MG
4 mining sites, acquired from J. Mendes Group in February 2008
Reserves of 2.6 billion tons of iron ore
Life time until 2045
MRS: 20% of voting shares, being part of the Control Group
Retroarea in Itaguaí Port
MBL
Arcelor Mittal
Ferrous (Santanense)
Comisa
Emicon
MMX
Ferrous
MUSA Pau de Vinho
MUSA Leste
Minerita
MUSA Central
MUSA Oeste
Itatiaiuçu
Igarapé São Joaquim De Bicas
70.0%
30.0%
Mining - Mineração Usiminas
Mineração Usiminas 14
Production:
3.8
5.5
6.8 6.3 6.7
2008 2009 2010 2011 2012
Million tons
4.2
5.3 6.0
5.6 6.1
2008 2009 2010 2011 2012
Sales:
15
Mining - Mineração Usiminas
Iron Ore Production Capacity – million tons by the end of the year
Friable Project : ongoing
Estimated Capex of R$800 million Compact Project:
under detailing phase
Investment Plan
16
Mining - Mineração Usiminas
17
Retroarea Itaguaí Port
17
11 industrial units in MG, SP, RS, ES, BA
and PE
Processing capacity of 2 million tons/year
Net Revenue of R$1.7 billion in 2012
Steel Processing
Soluções Usiminas and Automotiva Usiminas
18 Soluções Usiminas
Automotiva
Camaçari
Cachoeirinha
Porto Alegre
Campo Limpo Paulista
São Paulo Guarulhos
Taubaté
Recife
Serra
Betim
Santa Luzia
Soluções Usiminas
Automotiva Usiminas
Located in Pouso Alegre/MG, close to
major auto makers
Offers wide solutions to the Automobile
Industry
Net Revenue of R$291.8 million in 2012
Located in Ipatinga/MG, It is one of the
largest capital goods companies in Brazil
Market Sectors: Steel Structures,
Shipbuilding and Offshore, Oil and Gas,
Industrial Equipment, Industrial Assembly,
Foundry and Railcars
Net Revenue of R$1.0 billion in 2012
Usiminas Mecânica
Capital Goods
19
Brasília 3rd Bridge
Ship Panel
19
Platform
Usiminas and its
Business Units
Operational
Improvements
and Financials
Results
Profile and
Markets
Agenda
20
Average 2011: 61.6 +8.4%
55.3 54.6 60.3 58.8
61.9 64.1 67.3 67.5
63.7 63.5 59.0
63.1 66.2
62.2 65.3 65.8
68.5 67.0 68.8 68.0 66.5 69.2
66.1 68.1
Increasing Coke Production Coke Plant #3 (Ipatinga) – Thousand tons
Average 2012:
66.8
21
103 120
148
86 78
0 0 0 0
Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12
Pellet
Lump
Blast Furnaces (Cubatão) – Thousand tons
146 137
93
132 162
186
224 203
183
Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12
Lower Cost Iron Ore Blend
Metallic burden optimization in Blast Furnaces in Cubatão
22
9.0
10.9
4.9
0.2 -0.3
4.6
1.8 2.1
3.6
2.3 2.5 2.3 3.2
jR$/t
Cost Reduction with Natural Gas Utilization
US$/ ton
23
557
601
First Quarter 2012 Last two months 2012
8 CCs
6 CCs
+7.9%
1Q2012 4Q2012
Improving Continuous Casting Productivity (CC)
Slab Production
Increasing slabs production – Thousand tons
24
Net Revenue - Consolidated
10,924
12,962
11,902
12,709
2009 2010 2011 2012
25
R$ million
337 365
343
218 190
232
150
226
11% 12%
12%
8% 7%
7%
4%
7%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
EBITDA EBITDA Margin
Annual
26
4,368 5,003
6,008
1,716
2,650
1,264 798
35% 36% 38%
16% 20%
11%
6%
2006 2007 2008 2009 2010 2011 2012
Quarterly
EBITDA - Consolidated
R$ million
5.4 5.3 5.2 5.0 4.7 4.3
3.8 3.3
2.6
4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
1,513 1,491
1,281
1,126 1,031
4Q11 1Q12 2Q12 3Q12 4Q12
Inventories Inventories in days
90 80 62 55 51
27
R$ 2.2 billion Reduction
Reduction of 482 mil thousand tons in inventories
Working Capital
R$ billion (Consolidated) / Thousand tons (Steel Business)
3,070
1,849
985
41
365
555
81
276
112
3,192
2,490
1,652
2010 2011 2012
Steel Mining Others
28
- 22%
- 34%
Capex Evolution – Consolidated
R$ million
Leverage – Consolidated Basis
R$ billion
2.3
2.8 3.4
3.9 3.9 4.2 4.1
3.7 1.0
1.6
2.5 3.1
3.6 4.2
5.2 4.7
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Net Debt Net Debt/EBITDA (x)
29
Debt Profile and Cash Position - Consolidated
R$ million
3,010
1,092 955 923 756
410 316 33 150
1,708
631 638
495 734
273
1,037
2 1
Cash 2013 2014 2015 2016 2017 2018 2019 2020 on
Local Currency Foreign Currency
4,718
1,723 1,593
1,490
683
1,353
151 35
1,418
Duration: R$: 2.6 years US$: 3.1 years
30
Quarterly Results Accounted
31
Business Unit
Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity
Income.
R$ million
4Q12 3Q12 4Q12 3Q12 4Q12 3Q12 4Q12 3Q12 4Q12 3Q12 4Q12 3Q12
Net Revenue 292 154 2,827 2,955 508 540 257 305 (676) (564) 3,208 3,390
Domestic Market 213 95 2,188 2,284 502 532 257 305 (676) (533) 2,484 2,683
Exports 79 59 639 671 6 8 0 0 (0) (31) 724 707
COGS (108) (61) (2,908) (2,950) (464) (481) (237) (278) 673 546 (3,044) (3,224)
Gross Profit 184 93 (81) 5 44 59 20 27 (4) (18) 163 166
Operating Income
(Expenses)(20) (47) (140) (187) (30) (52) (18) 2 (0) (0) (208) (284)
EBIT 164 46 (221) (182) 14 7 2 29 (4) (18) (45) (118)
EBITDA 173 56 20 57 28 20 8 36 (3) (19) 226 150
EBITDA Margin 59% 36% 1% 2% 6% 4% 3% 12% - - 7% 4%
AdjustmentSteelSteel
ProcessingCapital Goods ConsolidatedMining
32
Annual Results Accounted
Business Unit
Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity
Income.
R$ million
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
Net Revenue 898 974 11,453 10,421 2,077 2,149 1,017 1,419 (2,736) (3,061) 12,709 11,902
Domestic Market 669 822 9,054 9,047 2,046 2,107 1,015 1,418 (2,673) (3,049) 10,111 10,345
Export Market 229 152 2,399 1,374 31 42 2 1 (63) (12) 2,598 1,557
COGS (342) (270) (11,489) (10,231) (1,887) (1,977) (997) (1,235) 2,667 3,105 (12,048) (10,608)
Gross Profit 556 704 (36) 190 190 172 20 184 (70) 44 660 1,294
Operating Income
(Expenses)(151) (138) (470) (244) (183) (192) (56) (99) 0 5 (860) (668)
EBIT 405 566 (506) (54) 7 (20) (36) 85 (70) 49 (200) 626
EBITDA 439 604 378 463 60 41 (11) 112 (68) 44 798 1,264
EBITDA Margin 49% 62% 3% 4% 3% 2% -1% 8% - - 6% 11%
Mining
Income Statement per Business Units - Non Audited - 2012
SteelSteel
ProcessingCapital Goods ConsolidatedAdjustment
www.usiminas.com/ri
ADR
Level I
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.
Cristina Morgan C. Drumond Head of IR
[email protected] Phone: 55-31-3499.8772
Fax: 55-31-3499.9357
Luciana Valadares dos Santos [email protected]
Phone: 55-31-3499.8619
Leonardo Karam Rosa [email protected]
Phone: 55-31-3499.8550
Diogo Dias Gonçalves [email protected]
Phone: 55-31-3499.8710
