Usiminas Results 1Q13

Transcription

1 Usiminas Results 1Q13 Apresentação Usiminas 2T11 - APIMEC Information Classification: Public

2 2 Agenda Clique para Profile editar o and texto Markets mestre Usiminas and its Business Units Operational Improvement and Financial Results

3 Time Line and Shareholder Composition Foundation of Usiminas Operation Start Up 1991 Privatization Usiminas:1991 Cosipa: Listing on Latibex 2008 Aquisition of J. Mendes iron ore mines Aquisition of Zamprogna 2009 Foundation of Soluções Usiminas due to the consolidation of the companies Rio Negro, Dufer, Fasal and Zamprogna, Usial and Usicort Single CNPJ: Cosipa is incorporated by Usiminas 2010 Creation of Mineração Usiminas Partnership with Codeme and Metform 2011 Entrance of Ternium/ Tenaris Selling of Ternium into Usiminas shares Control Group Joint Mining and Cooperation Agreements with MBL and Ferrous Commercial Agreements with MMX to explore Pau de Vinho and to use the Southest Port Negociation with J. Mendes concluded New shareholders agreement signed among Nippon Group, Ternium / Tenaris and Usiminas Pension Fund until 2031 Acquisition of the former Litigation Area 3

4 4 Strategically Located Mining Steel Steel processing Capital Goods

5 UPSTREAM DOWNSTREAM 5 Complete Solution of Products and Services Steel Processing Capital Goods Steel Mining Soluções Usiminas Usiminas Mecânica Automotiva Usiminas Ipatinga Metform and Codeme stake Cubatão Mineração Usiminas Unigal Usiminas

6 World Crude Steel Production in 2012 Million tons China Japan USA 88.6 India 76.7 Russia 70.6 South Korea 69.3 Germany Turkey Brazil Ukraine Capacity 2,090 Excess of Capacity 542 Production 1,548 Excess of Production 139 Consumption 1,409 Source: World Steel Association 6

7 Flat Steel Brazilian Market Million tons Production Apparent Consumption Q12 2Q12 3Q12 4Q12 1Q13 Inventories in the Distribution Network 1Q12 2Q12 3Q12 4Q12 1Q13 Imports (thousand tons) Million Tons Monthly basis Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 Source: IABR / INDA / Usiminas 7

8 8 Agenda Profile and Markets Usiminas and its Business Units Operational Improvement and Financial Results

9 9 Steel Business Unit Flat steel production Installed Nominal Capacity : 9.5 million tons / year Galvanized Slab Caster Slabs Heavy Plates Hot Coils Cold Coils EG HDG Ipatinga Plant 5,000,000tons 1,000,000tons 3,600,000tons 2,500,000tons 360,000tons 1,050,000tons Cubatão Plant 4,500,000tons 1,000,000tons 4,400,000tons 1,200,000tons - - Nominal Capacity 9,500,000tons 2,000,000tons 8,000,000tons 3,700,000tons 360,000tons 1,050,000tons Optimized Rolling Capacity - 1,900,000tons 3,200,000tons 1,950,000tons 350,000tons 1,020,000tons

10 10 Steel Business Unit Everyday steel application Auto Industries Autoparts Agricultural Machines Household Appliances Cold Rolled and Galvanized (EG and HDG) Hot Rolled Heavy Plates and Hot Rolled Cold Rolled and Galvanized (EG and HDG) Civil Construction Ship-Building Pipelines Pressure Vessels Heavy Plates, Hot and Cold Rolled and Galvanized (EG and HDG) Heavy Plates Heavy Plates and Hot Rolled Heavy Plates

11 11 Steel Business Unit Crude steel production Thousand tons 1,783 1,858 1,549 1,509 1,672 1,845 1,837 1,804 1,662 Ipatinga Cubatão 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

12 12 Steel Business Unit Sales Thousand tons Domestic Market Exports 1,888 1,749 1,731 1, , Sales Breakdown by Segments 1Q13 34% Auto Industry 1,246 1,327 1,262 1,209 1,226 17% Industry Household Appliances 1Q12 2Q12 3Q12 4Q12 1Q13 31% 10% 7% Civil Construction Distribution

13 13 Steel Business Unit Concluded investments Hot Strip Mill II - Cubatão 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 Galvanizing Line II - Ipatinga Higher production capacity Products portfolio increase Deep drawing steel Products Inovation High-strength steels Excellent flatness Main Applications Production capacity of 2.3 million tons per year Production capacity of 550 thousand tons per year

14 Mining - Mineração Usiminas 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 Igarapé São Joaquim De Bicas 70.0% MUSA Central Minerita MUSA Leste MMX MUSA Pau de Vinho 30.0% MUSA Oeste Arcelor Mittal Ferrous (Santanense) Com isa Emicon Ferrous MBL Itatiaiuçu Mineração Usiminas 14

15 15 Mining - Mineração Usiminas Million tons Production: 1,854 1,517 1,785 1,496 1,649 1Q12 2Q12 3Q12 4Q12 1Q13 Sales: 1,730 1,497 1,142 1,747 1,346 1Q12 2Q12 3Q12 4Q12 1Q13

16 16 Mining - Mineração Usiminas Investment Plan 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

17 17 Retroarea in Itaguaí Port

18 Steel Processing Soluções Usiminas and Automotiva Usiminas Soluções Usiminas 11 industrial units in MG, SP, RS, ES, BA and PE Processing capacity of 2 million tons/year Net Revenue of R$458.6 million in the 1Q13 Camaçari Recife Automotiva Usiminas Located in Pouso Alegre/MG, close to major auto makers Offers wide solutions to the Automobile Industry Net Revenue of R$77.9 million in the 1Q13 Santa Luzia Campo Limpo Paulista Betim Taubaté Guarulhos São Paulo Cachoeirinha Porto Alegre Serra Automotiva Soluções Usiminas 18

19 Capital Goods Usiminas Mecânica Located in Ipatinga/MG, it is one of the largest capital goods companies in Brazil Brasília 3rd Bridge Market Segments: Steel Structures, Shipbuilding and Offshore, Oil and Gas, Industrial Equipment, Industrial Assembly, Foundry and Railcars Net Revenue of R$259.3 million in the 1Q13 Platform Ship Panel 19

20 20 Agenda Profile and Markets Usiminas and its Business Units Operational Improvement and Financial Results

21 21 Increasing Coke Production Coke Plant #3 (Ipatinga) Thousand tons Average 2011: % Average 2012/2013:

22 Lower Cost of Iron Ore Blend Blast Furnaces (Cubatão) Thousand tons Pellet Metallic burden optimization in Blast Furnaces in Cubatão Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Lump Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 22

23 23 Cost Reduction with Natural Gas Usage US$/ ton

24 24 Improving Continuous Casting Productivity (CC) Increasing slabs production Thousand tons Slab Production +7.9% CCs 6 CCs First 1Q2012 Quarter 2012 Last two 4Q2012 months 2012

25 25 Adjusted EBITDA - Consolidated R$ million 11% 12% 12% 10% % 7% 7% 7% % Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Adjusted EBITDA Adjusted EBITDA Margin

26 Working Capital R$ billion (Consolidated) / Thousand tons (Steel Business) R$ 2.2 billion Reduction Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1,513 1,491 Reduction of 482 mil thousand tons in inventories 1,281 1,126 1, Q11 1Q12 2Q12 3Q12 4Q12 Inventories Inventories in days 26

27 27 Capex Performance Consolidated R$ million 3, % 2, % 3, ,849 1, Steel Mining Others

28 28 Debt Profile and Cash Position - Consolidated R$ million 4,239 1,657 1,432 1,334 1,306 1,304 2,582 1, , , Cash on Local Currency Foreign Currency

29 Quarterly Results Accounted Per Business Unit Income Statement per Business Units - 1Q13 R$ million Mining Steel Steel Processing Capital Goods Adjustment Consolidated 1Q13 4Q12 1Q13 4Q12 1Q13 4Q12 1Q13 4Q12 1Q13 4Q12 1Q13 4Q12 Net Revenue ,666 2, (524) (677) 3,195 3,207 Domestic Market ,223 2, (524) (676) 2,703 2,484 Exports (1) (0) COGS (86) (108) (2,590) (2,908) (495) (464) (249) (237) (2,988) (3,088) Gross Profit (81) (92) (48) Operating Income (Expenses) (29) (20) (134) (140) (48) (30) (14) (18) 1 2 (224) (206) EBIT (58) (221) 3 14 (4) 2 (90) (46) (16) (87) Adjusted EBITDA (27) (3) Adj.EBITDA Margin 58% 59% 7% 1% 3% 6% 1% 3% % 7% Note: All transactions among the business units are made at market price. 29

30 Final Message Fase I Control Costs CAPEX Working Capital Continuous Process Fase II Improvement Productivity Increase Industrial Engineering Benchmarking Operational Efficiency Domestic Sales Increase Leverage Reduction Company s Profitability Recovery

31 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: 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.