Iochpe-Maxion - 2005 Results Conference Call Presentation

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2005 Results Conference Call Presentation

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Iochpe-Maxion - 2005 Results Conference Call Presentation

  1. 1. Conference Call 2005 Results February 17, 2006
  2. 2. 2 DISCLAIMER The material contained in this presentation is general background information about Iochpe-Maxion S.A. (Iochpe) as of the date of the presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation contains statements that are forward-looking within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Iochpe and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Although Iochpe believes that the expectations and assumptions reflected in the forward-looking statements are reasonably based on information currently available to Iochpe management, Iochpe cannot guarantee future results or events. Iochpe expressly disclaims a duty to update any of the forward-looking statement. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
  3. 3. 3 2005 HIGHLIGHTS Net income of R$72 million, a growth of 42% over the previous year; Consolidated net operating revenue of R$1,494 million, a growth of 36% over the previous year; EBITDA(*) of R$205 million, a growth of 32% over the previous year; Net bank debt of R$125 million (R$102 million in 2004), or 0.6x EBITDA(*) (0.6x in 2004) (*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
  4. 4. Market 2005
  5. 5. 5 LIGHT COMMERCIAL – BRAZIL (‘000 units) Production % Export = 14 – 05 R 01 C AG = 29 % – 05 R 01 C AG 366 3% 5 – 04 = 318 ∆ 4Q 0 % – 04 = 3 3 216 216 ∆ 4Q05 180 156 114 93 96 56 72 40 37 50 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Anfavea
  6. 6. 6 TRUCKS – BRAZIL (‘000 units) Production Export = 11% 01 – 05 C AG R = 54 % – 05 R 01 C AG ) = (1% 5 – 04 ∆ 4Q 0 116 % 107 04 = 8 6 ∆ 4Q05 – 77 79 69 13 37 12 7 5 25 28 6 27 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Anfavea
  7. 7. 7 BUSES – BRAZIL (‘000 units) Production % = 11 Export – 05 R 01 C AG = 29 % – 05 R 01 C AG ∆ 4Q 05 – 35 04 = ∆ 4Q (2% ) 29 05 – 27 0 4=( 24 23 8 %) 19 13 9 7 7 7 5 7 4 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Anfavea
  8. 8. 8 AGRICULTURAL MACHINERY – BRAZIL (‘000 units) Production = 4% Export – 05 R 01 C AG = 39 % – 05 R 01 C AG ∆ 4Q 05 – 69 04 = ∆ 4Q (42% 59 05 – ) 52 53 04 = ( 22% 44 ) 31 31 21 8 6 16 8 10 9 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Anfavea
  9. 9. 9 PASSENGER CARS – BRAZIL (‘000 units) Production 7% 01 – 05 = Export CAGR % 5 = 17 01 – 0 CAGR 6% 1,931 5 – 04 = 1,757 ∆ 4Q 0 % 1,496 1,521 1,505 – 04 = 1 1 ∆ 4Q05 606 440 497 453 134 482 149 319 363 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Anfavea
  10. 10. 10 Units RAILWAY FREIGHT CARS – BRAZIL (units) Sales 7% 5 =7 1 –0 G R0 CA 7,270 = 23% 5 – 04 5,642 ∆ 4Q 0 2,459 294 1,447 1,775 748 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Amsted Maxion estimate
  11. 11. 11 Tons RAILWAY CASTINGS – BRAZIL (tons) Sales Do not include castings used in the 5 = 10% assembly of our own 01 – 0 AGR freight cars C 5,100 3,500 7% 04 = 1 3,386 5– ∆ 4T 0 2,230 2,288 686 800 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q Source: Amsted Maxion estimate
  12. 12. 12 Units RAILWAY WHEELS – BRAZIL ( ‘000 units) Sales = 4% 01 – 05 CAGR Do not include castings used in the assembly of our own freight cars 50 50 48 ∆ 4Q 42 42 05 – 04 = (36% ) 11 7 01 02 03 04 05 04 05 20 20 20 20 20 4 Q 4 Q Source: Amsted Maxion estimate
  13. 13. 13 MARKET SHARE – BRAZIL (2005) Chassis Commercial Vehicle Railway Freight Railway Wheels Cars Castings Maxion Maxion Maxion 84% Maxion 80% 71% 60% 34% 26% 3% 6% Borlem 16% 20% Dana OEM Other Other Cruzaço Maxion 2004 69% 57% 74% 80% Source: Maxion estimate
  14. 14. Consolidated Results 2005
  15. 15. 15 NET OPERATING REVENUE - 2005 R$1,494 million Segment (%) Customer (%) Automotive Comp. Volks- Division wagen Daimler Chrysler 6% 13% Export 10% General 15% Motors 5% 5% Tractors 40% 54% 4% MRS 4% 22% 3% Scania CVRD Amsted Ford Maxion (*) 19% Wheels and Other Chassis Division (*) Consolidation considers 50% of Amsted Maxion’s net operating revenue
  16. 16. 16 EXPORTS - 2005 US$96.0 million Segment (%) Destination (%) R$231.4 million Canada/ Mexico 11% Railway Equip. 53% USA 46% South 25% America 37% Commercial Vehicle 11% 10% Wheels 1%7% Africa/ Asia/ Middle East Chassis Pacific Europe
  17. 17. 17 R$ MM NET OPERATING REVENUE (R$ million) 3 6% 4= 4 1% 5 -0 5= ∆0 –0 01 GR CA 1,494 1,099 = 15% 5 – 04 ∆ 4Q 0 676 374 411 358 312 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q
  18. 18. 18 R$ MM EXPORTS (R$ million) 4 8% 1% 6 5= 4= –0 5-0 01 ∆0 GR CA 231 = 20% 5 – 04 ∆ 4Q 0 144 101 75 48 45 54 0 1 0 2 0 3 0 4 0 5 04 05 20 20 20 20 20 4 Q 4 Q
  19. 19. 19 GROSS PROFIT R$ MM % net sales 350 50% 300 40% 250 30% 200 289 150 21% 21% 21% 20% 20% 19% 18% 228 17% 100 137 10% 50 87 80 65 53 0 0% 00 1 00 2 00 3 00 4 00 5 04 05 2 2 2 2 2 4Q 4Q
  20. 20. 20 EBIT R$ MM % net sales 200 20% 150 15% 12% 12% 11% 100 10% 9% 9% 178 7% 7% 127 50 5% 58 36 40 27 23 0 0% 00 1 00 2 00 3 00 4 00 5 04 05 2 2 2 2 2 4Q 4Q
  21. 21. 21 NET FINANCIAL EXPENSES R$ MM % net sales 75 15% 13% 11% 50 10% 6% 54 25 5% 41 38 37 3% 33 2% 2% 2% 7 8 0 0% 00 1 00 2 00 3 00 4 00 5 04 05 2 2 2 2 2 4Q 4Q
  22. 22. 22 EARNINGS AFTER FINANCIAL EXPENSES R$ MM % net sales 150 15% 125 10% 100 9% 9% 9% 75 141 5% 5% 50 3% 94 0% 25 33 -4% -4% 19 16 0 (14) (18) -5% 00 1 00 2 00 3 00 4 00 5 04 05 (25) 2 2 2 2 2 4Q 4Q (50) -10%
  23. 23. 23 EBITDA (*) R$ MM % net sales 250 20% 17% 200 16% 15% 14% 14% 13% 13% 150 10% 9% 100 205 156 5% 50 89 58 69 48 30 0 0% 00 1 00 2 00 3 00 4 00 5 04 05 2 2 2 2 2 4Q 4Q (*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
  24. 24. 24 NET EARNINGS R$ MM % net sales 80 20% 60 15% 40 10% 51 72 7% 20 5% 5% 5% 5% 25 3% 18 9 0 0% -1% 00 1 00 2(24) 03 (5) 00 4 00 5 04 05 2 2 20 2 2 4Q 4Q (20) -5% -6% (40) -10%
  25. 25. 25 NET BANK DEBT R$ MM x EBITDA (*) 150 2.0 120 1.5 1.5 1.3 90 1.1 1.0 60 125 115 102 106 0.6 0.6 0.5 30 65 0 0.0 1 2 3 4 5 200 200 200 200 200 (*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
  26. 26. 26 INCOME STATEMENT (R$ thousand) – YEAR (*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
  27. 27. 27 STOCK PERFORMANCE (*) after reverse split
  28. 28. Additional Information
  29. 29. 29 INCOME STATEMENT (R$ thousand) – 4th QUARTER (*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
  30. 30. 30 CASH FLOW STATEMENT (R$ thousand)
  31. 31. 31 NET DEBT BREAKDOWN – DEC ‘05 (R$ million) SHORT LONG LINES TOTAL TERM TERM Trade Finance / Export 33.9 25.4 59.3 Equipment financing 45.3 72.3 117.6 79.2 97.7 176.9 (-) Cash and cash equivalents 52.0 52.0 Net debt 27.2 97.7 124.9
  32. 32. 32 DEBT INDEXATION – DEC ‘05 (%) TJLP (BNDES 64% AVERAGE COST (DEC ‘05) rate) In R$ - 72% CDI In US$ - 6,8% p.a. 33% Dollar 3% IGPM (whosale inflation index)
  33. 33. 33 FREIGHT CARS – FIRM ORDERS FOR DELIVERY IN 2006 CVRD / FCA – 1,276 units Brasil Ferrovias – 1,150 units MRC (Mitsui / Bunge / ALL) – 300 units MRS – 280 units CVG Ferrominera Orinoco – 75 units Revenue approx. Total – 3,081 units R$600 million
  34. 34. Conference Call 2005 Results February 17, 2006

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