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Iochpe-Maxion - 2008 Results Presentation

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2008 Results Presentation

2008 Results Presentation

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  • 1. EARNINGS RELEASE – 4Q08 / 2008 EARNINGS RELEASE – 4Q08 / 2008 February, 2009
  • 2. 4Q08 / 2008 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. 2
  • 3. 4Q08 / 2008 SIMPLIFIED CORPORATE STRUCTURE Iochpe-Maxion S.A. Iochpe- 50% 100% 100% R$ 121.2 million1 (26%) R$ 321.3 million1 (70%) R$ 19.5 million1 (4%) Amsted-Maxion Fundição e Amsted- Automotive Components Wheels and Chassis Division Equipamentos Ferroviários S.A. Division Wheels: R$ 137.5 million1 (30%) Railway Freight Cars: R$ 67.2 million1 (15%) Hand Brake Leaver and Pedal Sets: R$ 6.5 million1 (1%) Structural Stamped Parts: R$ 3.2 million1 (1%) Castings: R$ 44.3 million1 (10%) Chassis: R$ 183.8 million1 (40%) Railway Wheels: R$ 9.7 million1 (2%) 1Consolidated net operating revenue in the fourth quarter of 2008 3
  • 4. 4Q08 / 2008 HIGHLIGHTS Consolidated net operating revenue of R$ 462.0 million in the 4Q08 and R$ 1,827.7 in 2008, an increase of 40.7% e 41.8% respectively, over the same period of last year EBITDA(*) of R$ 46.0 million in the 4Q08 and R$ 267.7 in 2008, an increase of 34.3% and 71.7% respectively, when compared to the same period of last year Net income of R$ 4.9 million in the 4Q08 and R$ 214.1 in 2008, a reduction of 71.3% in the quarter and an increase of 195.7% in the year, when compared to same period of last year Net bank debt of R$ 255.5 million (R$ 128.3 million in Dec/07) or 1.0x LTM EBITDA (0.8x in Dec/07) (*) EBITDA, ao longo desta apresentação significa: lucro líquido mais imposto de renda e contribuição social, mais resultado não operacional, mais despesas financeiras líquidas, mais depreciação e amortização, mais amortização de ágio. 4
  • 5. 4Q08 / 2008 4Q08 – MAIN DRIVERS Reduction of Brazilian production of passenger cars, light commercial vehicles and buses Reduction of the growth rhythm of Brazilian production of trucks and agricultural machinery Reduction of the growth rhythm of domestic demand for railway freight cars Essential adjustments to reduce costs, due to the international economic crisis Impact of the Real depreciation over the loans in foreing currency and over the operations to fix the future value of the dollar (NDFs) 5
  • 6. Industry Performance
  • 7. 4Q08 / 2008 LIGHT COMMERCIALS – BRAZIL (‘000 units) Production Export 448 156 153 406 144 379 366 122 318 114 110 93 35 25 2004 2005 2006 2007 2008 4Q07 4Q08 2004 2005 2006 2007 2008 4Q07 4Q08 2008 – 07 = 10.4% 2008 – 07 = -15.5% 4Q08 – 07 = -30.8% 4Q08 – 07 = -15.6% CAGR 2004 – 08 = 1.71% CAGR 2004 – 08 = 8.95% Source: Anfavea 7
  • 8. 4Q08 / 2008 TRUCKS – BRAZIL (‘000 units) Production Export 167 41 38 39 39 137 117 107 106 25 12 37 39 9 2004 2005 2006 2007 2008 4Q07 4Q08 2004 2005 2006 2007 2008 4Q07 4Q08 2008 – 07 = 22.1% 2008 – 07 = -6.6% 4Q08 – 07 = -25.2% 4Q08 – 07 = 6.3% CAGR 2004 – 08 = 11.8% CAGR 2004 – 08 = 11.8% Source: Anfavea 8
  • 9. 4Q08 / 2008 BUSES – BRAZIL (‘000 units) Production Export 19 44 39 16 16 15 35 34 13 29 5 9 4 8 2004 2005 2006 2007 2008 4Q07 4Q08 2004 2005 2006 2007 2008 4Q07 4Q08 2008 – 07 = 12.9% 2008 – 07 = 1.7% 4Q08 – 07 = -12.8% 4Q08 – 07 = -7.6% CAGR 2004 – 08 = 5.3% CAGR 2004 – 08 = 11.0% Source: Anfavea 9
  • 10. 4Q08 / 2008 AGRICULTURAL MACHINERY – BRAZIL (‘000 units) Production Export 85 31 31 30 69 27 65 22 53 46 22 8 17 7 2004 2005 2006 2007 2008 4Q07 4Q08 2004 2005 2006 2007 2008 4Q07 4Q08 2008 – 07 = 30.7% 2008 – 07 = 10.9% 4Q08 – 07 = -4.5% 4Q08 – 07 = 25.4% CAGR 2004 – 08 = -0.8% CAGR 2004 – 08 = 5.3% Source: Anfavea 10
  • 11. 4Q08 / 2008 PASSENGER CARS – BRAZIL (‘000 units) Production Export 2,567 684 2,388 635 588 2,092 558 2,009 497 1,757 632 144 457 125 2004 2005 2006 2007 2008 4Q07 4Q08 2004 2005 2006 2007 2008 4Q07 4Q08 2008 – 07 = 7.5% 2008 – 07 = -5.1% 4Q08 – 07 = -12.7% 4Q08 – 07 = -27.7% CAGR 2004 – 08 = 2.9% CAGR 2004 – 08 = 9.9% Source: Anfavea 11
  • 12. 4Q08 / 2008 RAILWAY FREIGHT CARS – BRAZIL (units) 7,270 Sales 2008 – 07 = 309.8% 5,642 4Q08 – 07 = 88.2% 5,118 CAGR 2004 – 08 = -2.4% 3,668 1,249 1,372 729 2004 2005 2006 2007 2008 4Q07 4Q08 Sales Source: Amsted Maxion estimate 12
  • 13. 4Q08 / 2008 MARKET SHARE – BRAZIL (2008) Commercial Vehicles Railway Freight Railway Chassis Wheels Cars Castings Maxion Maxion Maxion Maxion 85% 80% 65% 62% Dana Borlem 20% 33% Others Cruzaço Others Others 15% 20% 15% 5% Maxion: 67% in 2007 Maxion: 62% in 2007 Maxion: 89% in 2007 Maxion: 80% in 2007 Source: Iochpe-Maxion estimate 13
  • 14. Financial and Operating Performance
  • 15. 4Q08 / 2008 NET OPERATING REVENUE (R$ million) 1,828 Net Operating Revenue 1,494 2008 – 07 = 41.8% 4Q08 – 07 = 40.7% 1,289 1,248 CAGR 2004 – 08 = 13.6% 1,099 462 329 2004 2005 2006 2007 2008 4Q07 4Q08 15
  • 16. 4Q08 / 2008 NET OPERATING REVENUE (R$ million) Revenue by Market Revenue by Division / Business 462 462 99 329 121 329 19 46 79 29 184 363 283 132 138 89 4Q07 4Q08 4T07 4T08 Domestic Export Wheels Chassis Automotive Comp. Amsted Maxion Domestic: 4Q08 – 07 = 28.4% Wheels: 4Q08 – 07 = 54.8% Chassis: 4Q08 – 07 = 39.8% Export: 4Q08 – 07 = 116.2% Automotive Comp.: 4Q08 – 07 = -32.1% Amsted Maxion: 4Q08 – 07 = 52.7% 16
  • 17. 4Q08 / 2008 NET OPERATING REVENUE Revenue by Customer – 2007 Revenue by Customer – 2008 Volvo ALL Volvo Vale Fiat 0% 1% 2% 3% 3% ALL Ford Caterpillar Ford Export 1% 4% VW 1% MRS 4% 18% 17% Scania 4% 5% Fiat 5% GMB 5% Scania 6% Agricultural Export Machinery VW 15% 7% GMB 17% 6% MRS Agricultural 7% Machinery 7% Daim ler 12% Vale Daim ler Others 10% 14% 13% Others 11% 17
  • 18. 4Q08 / 2008 EXPORTS (USD million) 146 119 120 Exports 2008 – 07 = 21.3% 96 4Q08 – 07 = 69.9% CAGR 2004 – 08 = 32.7% 47 44 26 2004 2005 2006 2007 2008 4Q07 4Q08 18
  • 19. 4Q08 / 2008 EXPORTS BY DIVISION / BUSINESS R$ thousand US$ thousand 99 44 52 26 23 46 0 11 0 20 21 0 9 0 5 8 26 10 12 17 4Q07 4Q08 4Q07 4Q08 Wheels Chassis Automotive Comp. Amsted Maxion Wheels Chassis Automotive Comp. Amsted Maxion Variation 4Q8 - 07 = 116.2% Variation 4Q8 - 07 = 69.9% Wheels = 51.9% Wheels = 20.3% Chassis = 149.5% Chassis = 96.3% Automotive Comp. = 0.4% Automotive Comp. = -21.2% Amsted Maxion: = 159.3% Amsted Maxion: = 103.0% 19
  • 20. 4Q08 / 2008 GROSS PROFIT (R$ million) Gross Profit 2008 – 07 = 51,4% 4T08 – 07 = 42,6% 357 CAGR 2004 – 08 = 11,9% 289 228 236 219 21% 20% 19% 18% 18% 16% 16% 74 52 2004 2005 2006 2007 2008 4Q07 4Q08 Gross Profit % NOR 20
  • 21. 4Q08 / 2008 EARNINGS BEFORE INCOME TAX – EBIT (R$ million) 178 232 EBIT 2008 – 07 = 83.8% 136 127 126 4Q08 – 07 = 32.5% CAGR 2004 – 08 = 16.3% 12% 12% 13% 11% 10% 26 35 8% 8% 2004 2005 2006 2007* 2008 4Q07 4Q08 EBIT % NOR (*) In compliance with Instruction 539/08 of CVM (Brazil’s securities commission) of March 14, 2008 and guidance of the Accounting Pronouncement Committee, Iochpe-Maxion incorporated the amounts accounted as non-operating expenses in 2008 and 2007 into operating expenses, therefore reducing EBIT presented in the previous reports. 21
  • 22. 4Q08 / 2008 EBITDA* (R$ million) 268 EBITDA 2008 – 07 = 71.7% 205 4Q08 – 07 = 34.3% CAGR 2004 – 08 = 14.5% 163 156 156 14% 14% 15% 13% 12% 10% 10% 34 46 2004 2005 2006 2007** 2008 4Q07 4Q08 EBITDA % NOR (*) 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. (**) In compliance with Instruction 539/08 of CVM (Brazil’s securities commission) of March 14, 2008 and guidance of the Accounting Pronouncement Committee, Iochpe-Maxion incorporated the amounts accounted as non-operating expenses in 2008 and 2007 into operating expenses, therefore reducing EBITDA presented in the previous reports. 22
  • 23. 4Q08 / 2008 NET FINANCIAL EXPENSES (R$ million) Net Financial Expenses 2008 – 07 = 187.1% 37 4Q08 – 07 = 3,243.0% 33 CAGR 2004 – 08 = -4.0% 28 5% 23 21 3% 2% 2% 2% 1% 10 0% -1 2004 2005 2006 2007 2008 4Q07 4Q08 Financial Exp. % NOR 23
  • 24. 4Q08 / 2008 IMPACT OF THE FX RATE VARIATION 4Q08 Value Impact Balance US$ Million R$ million Impact of the FX rate variation on Finacial Expense (Revenue) NDF (expired) 25.4 (7.8) Loan in Foreing Currency 58.9 (18.8) Financial Exp./ Rev. (26.6) Operations related to fix the future value of the Contracted Value Average FX Gain/Loss Period Operations dollar (NDFs) US$ Rate R$ thousand NDFs (Buying) 60.8 1.8940 (30.0) At the end If the operations would expire on 12/30/2008, it NDFs (Selling) 2.0 1.6786 1.3 of 4Q08 would represent a negative result of R$ 28.7 million Total NDFs (28.7) 24
  • 25. 4Q08 / 2008 NET INCOME (R$ million) Net Income 2008 – 07 = 195.7% 4Q08 – 07 = -71.3% Non-recurring gain generated by 214 CAGR 2004 – 08 = 43.1% the merger of Maxion Sistemas Automotivos into Iochpe-Maxion 76 76 Net Income w/o Non- 12% recurring Effect 76 2008 – 07 = 90.7% 6% 133 5% 5% 5% 5% 138 1% 72 72 51 58 17 5 2004 2005 2006 2007 2008 4Q07 4Q08 Net Income % NOR 25
  • 26. 4Q08 / 2008 NET BANK DEBT (R$ million) 256 1.3 125 132 128 115 1.0 102 0.8 0.8 0.6 0.6 2003 2004 2005 2006 2007 2008 Net Debt x EBITDA* (*) 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 LTM EBITDA 26
  • 27. 4Q08 / 2008 INDEBTEDNESS – DEC/08 (R$ million) Debt by Lines 90 126 BNDES-EXIM 68% Import 346 Others ACC 11% 6% 12% 256 220 Working Capital 3% - - Short Term Long Term Total Debt Cash Net Debt Debt Indexation Indexation Average Cost TJLP Indexed in R$ 73% CDI 69% Dollar 25% Indexed in US$ 5,5% per year Others YUAN 1% 5% 27
  • 28. 4Q08 / 2008 CAPEX (R$ million) 113 84 73 68 68 2004 2005 2006 2007 2008 28
  • 29. Additional Information
  • 30. 4Q08 / 2008 INCOME STATEMENT (R$ thousand) Consolidated Income Statement R$ 4Q07* 2007* 4Q08 N.O.R N.O.R 2008 N.O.R N.O.R thousand Adjusted (Adjusted) Net Operating Revenue 462,013 100.0% 328,459 100.0% 1,827,726 100.0% 1,289,282 100.0% Cost of Goods Sold Raw Material (231,838) 50.2% (153,707) 46.8% (896,406) 49.0% (598,928) 46.5% Labor (79,205) 17.1% (38,122) 11.6% (284,595) 15.6% (222,604) 17.3% Others (77,401) 16.8% (85,037) 25.9% (289,755) 15.9% (232,044) 18.0% (388,443) 84.1% (276,866) 84.3% (1,470,756) 80.5% (1,053,576) 81.7% Gross Profit 73,570 15.9% 51,593 15.7% 356,970 19.5% 235,706 18.3% Operating Expenses General and Administrative (14,307) 3.1% (12,105) 3.7% (52,386) 2.9% (47,009) 3.6% Commercial (23,081) 5.0% (12,807) 3.9% (73,158) 4.0% (55,749) 4.3% Others (1,300) -0.3% (361) -0.1% 229 0.0% (6,927) -0.5% (38,688) 8.4% (25,273) 7.7% (125,315) 6.9% (109,685) 8.5% Operating Income (EBIT) 34,882 7.6% 26,320 8.0% 231,655 12.7% 126,021 9.8% Financial Results Financial Revenue 4,271 0.9% 1,685 0.5% 13,795 0.8% 6,233 0.5% Financial Expenses (26,869) 5.8% (966) 0.3% (41,376) 2.3% (15,839) 1.2% (22,598) 4.9% 719 -0.2% (27,582) 1.5% (9,606) 0.7% Earnings After Financial Income 12,284 2.7% 27,039 8.2% 204,073 11.2% 116,415 9.0% Non Operating Results - 0.0% - 0.0% - 0.0% - 0.0% Earnings Before Taxes 12,284 2.7% 27,039 8.2% 204,073 11.2% 116,415 9.0% Income Taxes (7,393) -1.6% (10,010) -3.0% 10,021 0.5% (44,024) -3.4% Net Income 4,891 1.1% 17,029 5.2% 214,094 11.7% 72,391 5.6% EBITDA** 46,024 10.0% 34,275 10.4% 267,727 14.6% 155,899 12.1% (**) 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. (*) In compliance with Instruction 539/08 of CVM (Brazil’s securities commission) of March 14, 2008 and guidance of the Accounting Pronouncement Committee, Iochpe-Maxion incorporated the amounts accounted as non-operating expenses in 2008 and 2007 into operating expenses, therefore reducing 30 EBITDA presented in the previous reports.
  • 31. 4Q08 / 2008 BALANCE SHEET (R$ thousand) ASSETS LIABILITIES dez/08 dez/07 dez/08 dez/07 CURRENT CURRENT Cash 90.036 151.519 Loans 219.885 131.820 Receivables 243.056 142.348 Payables 60.972 62.093 Inventory 244.527 173.181 Taxes 2.886 3.114 Recoverable Taxes 13.694 21.975 Wage & Salaries 49.908 40.253 Deferred Taxes 27.538 8.979 Customers Advance 24.152 50.033 Recoverable Taxes 1.901 2.546 Dividends 79.214 26.785 Other Receivables 7.985 3.748 Other Payables 34.937 21.666 Payable Financial 28.752 - Instruments 628.737 504.296 500.706 335.764 LONG TERM LONG TERM Receivable 603 802 Loans 125.604 148.045 Recoverable Taxes 16.667 20.219 Provisions 58.021 57.431 Deferred Taxes 82.362 19.902 Others 6.611 7.579 Obligatory deposits and judicial 12.847 1.669 190.236 213.055 Other Receivables 1.718 2.388 114.197 44.980 MINORITY - - PERMANENT EQUITY Investments 395 359 Capital 261.463 161.463 Plants, Property and Equipment 379.330 305.263 Profit Reserves 183.958 149.078 Intangible 5.910 4.117 Equity Adjustment (2.484) - Deferred Items 5.310 345 390.945 310.084 442.937 310.541 TOTAL ASSETS 1.133.879 859.360 TOTAL LIABILITIES 1.133.879 859.360 31
  • 32. 4Q08 / 2008 SHARES PERFORMANCE - LTM 20.00% 10.00% 0.00% Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 -10.00% -20.00% -30.00% -40.00% -41,22% -50.00% -60.00% -70.00% -80.00% -76.18% MYPK3 IBOVESPA Due to the low liquidity of MYPK3 before the conversion of the shares, was considered the price of MYPK4 before the conversion (02/26/08) 32
  • 33. 4Q08 / 2008 AVERAGE DAILY TRADE VOLUME – R$ thousand Average Daily Trade Volume LTM - R$ thousand 146 3,370 2,978 105 2,294 1,987 91 1,747 1,671 81 74 75 1,543 1,413 1,377 77 1,164 43 43 685 734 37 37 38 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Volume Trades Due to the low liquidity of MYPK3 before the conversion of the shares, was considered the price of MYPK4 before the conversion (02/26/08) 33
  • 34. 4Q08 / 2008 SHAREHOLDERS STRUCTURE Shareholders Structure on 12/30/2008 Shareholders Shares % Ioschpe Family 13,034,376 27.48% BNDESPAR 11,593,401 24.44% Controlling Shareholders 24,627,777 51.92% Others 22,803,909 48.08% Total Iochpe-Maxion 47,431,686 100.00% 34
  • 35. EARNINGS RELEASE – 4Q08 / 2008 EARNINGS RELEASE – 4Q08 / 2008 February, 2009

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