EarningsEarnings CallCall 1Q131Q13
May 10May 10th, 2013, 2013
1
New strategic view
Vision:
Be the best provider of refractories
solutions and industrial minerals,
leveraging and developi...
DMR (manufacturing unit in China)
Low cost production base: The plant is located in the city of Dalian, northeast China,
r...
Reframec (51% of equity)
Ensure leadership in our core markets: The Reframec acquisition reinforces
Magnesita's leadership...
-5.5%-5.5%
11.011.611.9
-7.8%-7.8%
South America
Refractory Solutions Sales - Steel
Crude Steel Production¹ (million tons)...
Sales - Magnesita
Refractory Solutions Sales - Industrial
19,4%
+4.2%
+29.0%
42
33
41 101 109
84
+28.8%
+7.8%
R$ million00...
Volume (000’ tons) Gross profit and gross margin
Refractory Solutions Sales - Consolidated
Revenue (R$ million)
534
15,8%
...
+14.7%+14.7%
-28.4%-28.4%
28,8
40,3
Revenue (R$ million) Gross profit and gross margin
(R$ million; %)
39.0%41.2%41.4%
Min...
Consolidated sales (R$ million)
Consolidated
+1,8%+1,8%
+1,1%+1,1%
617,9611,1606,9
PER SEGMENT
1Q134Q121Q12
6%
1Q13
5%
4Q1...
Gross profit, EBITDA and net income
Gross Profit(R$ million)
EBITDA (R$ million)
14.4%
18.8%
13.5%
33.5%
29.5%29.9%
Gross ...
Operational cash flow, CAPEX and Cash cycle
Cash conversion cycle¹ (in days)¹
OCF and CAPEX Cash cycle
143 143 145 139
153...
Debt and Leverage
Net debt / EbitdaEBITDA* LTMNet Debt
1,4x
Net debt / EbitdaEBITDA* LTMNet Debt
1.0591.0581.0311.002
907
...
The Company applied, from 2013 fiscal year, IFRS 11 - "Joint Arrangements" issued in May 2011, and
included as an amendmen...
Octavio Pereira Lopes
CEO and IRO
Eduardo Gotilla
Global Finance & IR Director
Daniel Domiciano Silva
Investor Relations c...
Upcoming SlideShare
Loading in...5
×

1 q13 ppt_ing_0905_vf2

81

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
81
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

1 q13 ppt_ing_0905_vf2

  1. 1. EarningsEarnings CallCall 1Q131Q13 May 10May 10th, 2013, 2013 1
  2. 2. New strategic view Vision: Be the best provider of refractories solutions and industrial minerals, leveraging and developing our minerals base Expand industrialEnsure leadership Maintain a global lowGrow selectively and Oneglobalorganization Expand industrial minerals base Ensure leadership in our core markets Maintain a global low cost production base Grow selectively and aggressively Continue to develop high quality, low cost raw material sources to support our current businesses as well as new businesses where we can have a sustainable competitive advantage Strive to keep offering high quality and innovative products, unrivaled services and cost performance Optimize production globally to improve efficiency and support growth Develop global supply chain management Pursue long term growth opportunities in selected markets where we can deliver superior value to our customers and shareholders ▪Meritocracy ▪Ethics ▪Profit ▪Management and Method ▪Agility and Transparency ▪Respect for Safety, Environment and Communities ▪Customer ▪People Our values 2
  3. 3. DMR (manufacturing unit in China) Low cost production base: The plant is located in the city of Dalian, northeast China, region which owns around 20% of world’s reserves of magnesite, making it a highly strategic location for refractory production New markets: This new plant will allow us to better serve geographies Recent aquisitions Maintain a global low cost production base Grow selectively and aggressively New markets: This new plant will allow us to better serve geographies and segments where Magnesita has a marginal presence today and where we want to expand sales in a selective way Location: Dalian is an important export hub in China with excellent logistics Capacity: 50.000 tons/year Closing: Expected to occur in ~60 days, after approval of the Economic and Trade Bureau of Dalian Development Area, in the People´s Republic of China. 3 in the People´s Republic of China. DMR external view China CHINA
  4. 4. Reframec (51% of equity) Ensure leadership in our core markets: The Reframec acquisition reinforces Magnesita's leadership in its core industrial markets in South America, as it expands its services beyond the steel industry Reframec: Leader in engineering, installation and repair services Recent aquisitions Ensure leadership in our core markets Reframec: Leader in engineering, installation and repair services for refractories used in cement production in Brazil Closing: ~60 days. Post-close, Reframec will continue to operate independently 4 Refractory assembly in rotary kiln
  5. 5. -5.5%-5.5% 11.011.611.9 -7.8%-7.8% South America Refractory Solutions Sales - Steel Crude Steel Production¹ (million tons) Main markets +4.0% -3.6% 226217234 000’ tons Sales - Magnesita 1Q134Q121Q12 +0,5% +0,5% 452450450 R$ Million EU-27 80,6 % 4Q12 20.7 1Q12 23.2 -8.6%-8.6% +2.5%+2.5% 1Q13 21.2 United States 1Q134Q121Q12 1Q13 452 4Q12 450 1Q12 450 4Q12 39.7 1Q12 43.9 -5.7%-5.7% +4.3%+4.3% 1Q13 41.4 EU-27 5 Source: ¹WSA
  6. 6. Sales - Magnesita Refractory Solutions Sales - Industrial 19,4% +4.2% +29.0% 42 33 41 101 109 84 +28.8% +7.8% R$ million000’ tons 1Q134Q121Q12 1Q12 1Q134Q12 6
  7. 7. Volume (000’ tons) Gross profit and gross margin Refractory Solutions Sales - Consolidated Revenue (R$ million) 534 15,8% 550 18,3% +5.0% +1.8%+1.8% 560 19,4% 90,7% --2.4% +7.3% 1Q13 268 4Q12 250 1Q12 275 Volume (000’ tons) Gross profit and gross margin (R$ million; %) 84,2% 1Q12 81,7% 1Q13 80,6% 4Q12 SteelIndustrial 34.3% 4Q12 29.7% 1Q12 30.8% 1Q13 192 158170 1Q134Q121Q12 4Q121Q12 1Q13 7
  8. 8. +14.7%+14.7% -28.4%-28.4% 28,8 40,3 Revenue (R$ million) Gross profit and gross margin (R$ million; %) 39.0%41.2%41.4% Minerals and Services sales Minerals 4,7% 1Q13 28,8 4Q121Q12 25,1 -8.6%-8.6% Revenue (R$ million) 1Q134Q121Q12 Gross profit and gross margin (R$ million; %) 11 17 10 Services 4,6% 1Q13 -8.6% -22.4%-22.4% 36,9 28,6 4Q121Q12 31,3 8 1Q13 12.4% 4Q12 14.7% 1Q12 5.5% 45 2 4,6%
  9. 9. Consolidated sales (R$ million) Consolidated +1,8%+1,8% +1,1%+1,1% 617,9611,1606,9 PER SEGMENT 1Q134Q121Q12 6% 1Q13 5% 4Q12 5% 1Q12 PER REGION 1Q134Q121Q12 10% 12% 13%6% 7% 87% 5% 5% 91% 5% 4% 91% ServicesMineralsRefractories OthersEuropeNorth AmericaSouth America 10% 18% 23% 49% 12% 19% 22% 47% 13% 19% 22% 47% 9
  10. 10. Gross profit, EBITDA and net income Gross Profit(R$ million) EBITDA (R$ million) 14.4% 18.8% 13.5% 33.5% 29.5%29.9% Gross Profit(R$ million) Net Income (R$ million) 0.0% 4.3% 4.7%207 180182 26 0 28 14.4% 4Q12 1Q13 13.5% 1Q12 116 8388 1Q134Q121Q12 10 4Q12 1Q131Q12
  11. 11. Operational cash flow, CAPEX and Cash cycle Cash conversion cycle¹ (in days)¹ OCF and CAPEX Cash cycle 143 143 145 139 153 67 69 68 77 65 131 131 136 139 141 79 82 78 76 77 1T12 2T12 3T12 4T12 1T13 Cash conversion cycle¹ (in days)¹ 77,5 16,8 97,4 55,7 23,5 74,5 OCF CAPEX 1Q12 2Q12 3Q12 4Q12 1Q131T12 2T12 3T12 4T12 1T13 Ciclo de caixa Fornecedores Estoques Clientes 11 ¹LTM 4Q121Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 Cash cycle Suppliers Inventories Clients
  12. 12. Debt and Leverage Net debt / EbitdaEBITDA* LTMNet Debt 1,4x Net debt / EbitdaEBITDA* LTMNet Debt 1.0591.0581.0311.002 907 2,6x 2,8x2,9x2,9x2,7x 907 1.4x1.4x1.4x 2,7x Total Excluding Perpetual Bond 1Q134Q123Q122Q121Q12 Perpetual Bond 1Q12 1Q132Q12 4Q123Q12 *EBITDA excluding non recurring *EBITDA excluding non recurring R$ 2% -14% 907 401373357350334 566536513486 907 401373357350334 Amortization Schedule (R$ million) Net Debt per currency 2018+ 1.472 20172016201520142013Mar-13 Cash Amortization Perpetual Bond 12 -3% EUR Others -2% 19% 80% 2% 13% USD 104% Dec-12 Mar-13 678 7880621530 964 508
  13. 13. The Company applied, from 2013 fiscal year, IFRS 11 - "Joint Arrangements" issued in May 2011, and included as an amendment to the text of the CPC 19 (R2) - "Joint Venture". Thus, the method of IFRS 11 – Joint arrangement included as an amendment to the text of the CPC 19 (R2) - "Joint Venture". Thus, the method of proportionate consolidation is no longer permitted, the Company ceased to consolidate jointly controlled Krosaki Magnesite Refractories LLC (United States). Additionally, from January 1st, 2013, holdings in Krosaki Magnesite Refractories LLC (40%) are being accounted by the equity method. For comparison purposes, the balance sheet of December 31, 2012 and March 31, 2012 were adjusted in the Quarterly Information Form (“Formulário ITR”) considering the change of accounting practice. In the 1Q13 Earnings Release, the Company has decided not to make changes in the quarters of 2012 to not impact the reports and analysis already disclosed to the market. 13
  14. 14. Octavio Pereira Lopes CEO and IRO Eduardo Gotilla Global Finance & IR Director Daniel Domiciano Silva Investor Relations contacts: Daniel Domiciano Silva Investor Relations Phone: 55 11 3152-3202/3241 ri@magnesita.com www.magnesita.com 14
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×