Your SlideShare is downloading. ×
0
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Iochpe-Maxion - 2Q07 Presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Iochpe-Maxion - 2Q07 Presentation

291

Published on

2nd Quarter 2007 Presentation

2nd Quarter 2007 Presentation

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

  • Be the first to like this

No Downloads
Views
Total Views
291
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Second Quarter 2007 August, 2007
  • 2. Second Quarter 2007 August, 2007 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. 2
  • 3. Second Quarter 2007 August, 2007 2Q07 HIGHLIGHTS Consolidated net operating revenue of R$ 319.0 million, 3.5% decrease over 2Q06. EBITDA(*) of R$ 36.4 million, 37.5% decrease over 2Q06. Net income of R$ 13.9 million, 49.7% lower than 2Q06. Net bank debt of R$ 164.0 million (R$ 180.6 million in 2Q06), or 1.2x LTM EBITDA(*) (0.9x no 2Q06). Note: Positive non recurring effect of R$ 12.8 million in 2Q06 and 1H06, due to favorable court decision in tax litigation (Confins). (*) 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. 3
  • 4. Second Quarter 2007 August, 2007 2Q07 – MAIN FACTORS Strong reduction of railway freight car demand. Reduction of the North-American demand for railway castings. Growth of the Brazilian production of trucks and agricultural machinery. Impact of the real appreciation (1.9630 – 2Q07 x 2.1847 – 2Q06) on exports (R$ 7.3 million). 4
  • 5. Second Quarter 2007 August, 2007 CORPORATE STRUCTURE Iochpe-Maxion S.A. Iochpe- 50% 100% Amsted-Maxion Fundição e Amsted- Maxion Sistemas Automotivos Equipamentos Ferroviários S.A. Ltda. Wheels and Frame Division Automotive Component Railway Equipment Division Autoparts for passenger cars: 9%1 Railway freight cars: 6%1 Frame: 41%1 Castings 11%1 and wheels 3%1 Wheels: 31%1 1 % of consolidated net revenues in the second quarter of 2007 5
  • 6. Industry Performance
  • 7. Second Quarter 2007 August, 2007 LIGHT COMMERCIALS – BRAZIL (‘000 units) % = 20 2 – 06 CA GR 0 % = 40 2–0 6 5 = 3% GR 0 06 - 0 CA 06 – 05 = (2 %) 366 377 1H 07 – 0 6 = (2%) 318 2Q 07 - 06 = 0% 1H 07 – 0 6 = (8%) 216 2Q 07 – 0 188 6 = (4%) 180 184 156 153 114 98 98 72 73 68 40 39 37 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 Production Export Source: Anfavea 7
  • 8. Second Quarter 2007 August, 2007 TRUCKS – BRAZIL (‘000 units) % 06 = 11 R 02 – CAG 67% 06 – 0 – 06 = 5 = (10 R 02 %) CAG 06 – 05 = 1% 1% – 06 = 2 1H 07 117 107 106 6 = 3% 1H 07 – 0 – 06 = 2 8 % 2Q 07 79 69 62 2Q 07 – 06 = (0)% 51 38 39 34 27 25 18 18 13 10 10 5 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 Production Export Source: Anfavea 8
  • 9. Second Quarter 2007 August, 2007 BUSES – BRAZL (‘000 units) 1% 6=1 R02–0 CAG = 25% – 06 06 – R 02 05 = CAG ( 4%) % 6=2 06 – 05 = 1H07 – 0 ( 15% ) 35 1H07 34 – 06 =( 15% ) % 6=3 27 29 2Q07 – 0 23 19 19 2Q07 – 06 = 1% 19 16 13 10 11 9 8 7 7 4 4 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 Production Export Source: Anfavea 9
  • 10. Second Quarter 2007 August, 2007 AGRICULTURAL MACHINERY – BRAZIL (‘000 units) CAGR 02 – 06 = (3%) = 21% 02 – 06 CAGR 06 – 05 = (13% ) 06 – 05 = (27% 1% 69 6=2 ) 1H07–0 59 % 32% 52 53 – 06 = 2 06 = 1H07 07 – 46 2Q 2% – 06 = 1 31 31 2Q 07 29 24 21 22 17 12 13 10 11 6 7 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 Production Export Source: Anfavea 10
  • 11. Second Quarter 2007 August, 2007 PASSENGER CARS – BRAZIL (‘000 units) % 02 – 06 = 8 CAGR 5% 02 – 06 = 1 CAGR 06 – 05 = 4% 06 – 05 = (7%) 06 = 7% 1H07 – 2,090 2,009 1,757 1H07 – 06 06 = 9% = (1 2%) 2Q07 – 1,521 1,505 2Q07 – 06 = (1 5%) 1,043 1,117 684 637 536 584 497 440 363 323 283 167 142 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 Production Export Source: Anfavea 11
  • 12. Second Quarter 2007 August, 2007 RAILWAY FREIGHT CARS – BRAZIL (units) 7% 0 6=8 06 – 05 = 02 – (50% CAGR ) 7,270 5,642 1H07 – 06 = (91% 3,605 ) 2Q 07 – 06 = (92% ) 2,459 2,563 1,254 294 238 98 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 Market Source: Amsted Maxion estimate 12
  • 13. Second Quarter 2007 August, 2007 MARKET SHARE – BRAZIL (1H07) Commercial Vehicles Railway Freight Railway Chassis Wheels Cars Castings Maxion Maxion Maxion 80% 67% 62% 65% Maxion 21% 34% Dana 35% 12% 5% Borlem 20% OEM Usimec Cruzaço Others Maxion 71% 57% 82% 80% 1H06 Source: Maxion estimate 13
  • 14. Finance and Operating Performance
  • 15. Second Quarter 2007 August, 2007 NET OPERATING REVENUE – 1H07 R$ 605 million Segment (%) Customer (%) Commercial Vehicle Daimler Wheels(2) Chrysler General Motors 14% 30% 6% Scania Volkswagen 16% 6% Tratctors 40% 7% Chassis(2) Ford 6% Freight 4% Railcars(1) 3% MRS 22% 11% Exports 9% 22% 3% Castings(1) Railway Automotive Comp. Others Wheels(1) (1) Amsted Maxion (2) Wheels and Frames Division of Maxion Sistemas Automotivos 15
  • 16. Second Quarter 2007 August, 2007 NET OPERATING REVENUE – 1H07 Net operating revenue in 2Q07 = 32% Decrease of 3.5% over 2Q06 02 – 06 R This performance is due to: CAG 06-0 5= (17% Reduction of domestic demand for railway ) freight cars Reduction of USA demand for railway castings Impact of Real appreciation on exports Increase of Brazilian trucks and Agriculture machinery production 1H 07 – 0 6 = (10% ) 1,494 2Q 07 – 0 1,248 6 = (4%) 1,099 676 671 605 411 330 319 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 16
  • 17. Second Quarter 2007 August, 2007 EXPORTS – 1H07 US$ 64 million* R$ 129 million Segment (%) Destination (%) Railway and Industrial Castings 55% Latin USA America 51% 26% 30% Commercial Vehicles Wheels 8% Europe 15% 6% 10% Canadá/ África/ Chassis México Middle East (*) In 1H06 US$56 million, equivalent to R$ 121 million 17
  • 18. Second Quarter 2007 August, 2007 EXPORTS (US$ million) % 24 9% 5= =4 06-0 06 2– GR0 CA 4% – 06 = 1 1H07 119 96 8% – 06 = 2 2Q07 47 64 56 33 34 24 26 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2T07 18
  • 19. Second Quarter 2007 August, 2007 EXPORTS (US$ million) Division 2Q07 2Q06 Var. 1H07 1H06 Var. Commercial Vehicles Wheels 9.9 10.8 -8.0% 19.1 19.6 -2.4% Chassis 5.2 1.4 271.0% 9.3 3.4 174.2% Automotive Components 0.1 0.1 27.6% 0.2 0.2 8.7% Amsted-Maxion 37.0 28.2 31.2% 69.8 64.8 7.7% Consolidation Adjustment (50%) (18.5) (14.1) (34.9) (32.4) 33.8 26.4 27.9% 63.6 55.6 14.3% 19
  • 20. Second Quarter 2007 August, 2007 GROSS PROFIT R$ MM % Net Sales 350 50% 300 40% 250 30% 200 21% 20% 21% 19% 20% 150 19% 18% 19% 18% 20% 228 289 100 219 137 130 10% 112 50 87 66 58 0 0% 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 20
  • 21. Second Quarter 2007 August, 2007 EARNINGS BEFORE INTEREST AND TAXES - EBIT R$ MM % Net Sales 200 20% 16% 150 15% 13% 12% 12% 11% 100 9% 9% 10% 178 10% 9% 136 127 50 5% 90 58 58 52 36 29 0 0% 2002 2003 2004 2005 2006 1H06* 1H07 2Q06* 2Q07 (*) 2Q06 and 1H06 include R$12.8 million of non recurrent results, or 320 basis points of EBIT margin on 2Q06 and 160 basis points on1H06 21
  • 22. Second Quarter 2007 August, 2007 EBITDA (*) R$ MM % Net Sales 250 20% 18% 200 17% 15% 15% 14% 14% 150 13% 13% 12% 11% 10% 100 205 156 163 5% 50 103 89 69 73 58 36 0 0% 2002 2003 2004 2005 2006 1H06** 1H07 2Q06** 2Q07 (*) 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. (**) 2Q06 and 1H06 include R$12.8 million of non recurrent results, or 320 basis points of EBIT margin on 2Q06 and 160 basis points on1H06 22
  • 23. Second Quarter 2007 August, 2007 NET FINANCIAL EXPENSES R$ MM % Net Sales 75 15% 13% 50 10% 6% 54 25 5% 38 3% 2% 2% 2% 1% 33 1% 1% 37 21 10 8 4 4 0 0% 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 23
  • 24. Second Quarter 2007 August, 2007 NET INCOME R$ MM % Net Sales. 80 20% 60 15% 72 40 58 8% 10% 51 43 6% 5% 5% 5% 4% 4% 20 5% 28 25 14 -1% 0 0% (5) (24) (20) -6% -5% (40) -10% 2002 2003 2004 2005 2006 1H06* 1H07 2Q06* 2Q07 (*) 2Q06 and 1H06 include R$12.8 million of non recurrent results 24
  • 25. Second Quarter 2007 August, 2007 NET BANK DEBT R$ MM x EBITDA (*) 200 2.0 175 150 1.5 1.5 1.3 1.2 125 100 0.9 1.0 0.8 75 0.6 181 164 0.6 115 132 50 106 102 0.5 125 25 0 0.0 2002 2003 2004 2005 2006 1H06 1H07 (*) 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 25
  • 26. Second Quarter 2007 August, 2007 INDEBTEDNESS – jun/07 (R$ million) SHORT LONG LINES TOTAL TERM TERM Trade Finance / Export 10.0 29.4 39.4 Equipment Finance / EXIM 73.4 97.7 171.1 83.4 127.1 210.5 (-) Cash and Marketable Securities 46.5 46.5 Net Debt 37.0 127.1 164.1 Debt Indexation 86% Average Cost (jun/07) Index by TJLP, CDI e IGPM in R$ 78% CDI 1% Index by Dólar 13% 8,6% a.a. in US$ TJLP Dólar IGP-M 26
  • 27. Second Quarter 2007 August, 2007 CAPEX (R$ million) 84 73 68 54 41 35 28 22 12 2002 2003 2004 2005 2006 1H06 1H07 2Q06 2Q07 27
  • 28. Second Quarter 2007 August, 2007 2007 / 2008 OUTLOOK Strong domestic demand for trucks and agriculture machinery Recovery of domestic railway freight car market from the end of 2007, onwards Implementation of commercial vehicle wheels plant in China 28
  • 29. Second Quarter 2007 August, 2007 Speech in the ceremony of the new Maxion plant in China (Nantong) 29
  • 30. Additional Information
  • 31. Second Quarter 2007 August, 2007 INCOME STATEMENT (R$ thousand) Income Statement - R$ thousand 2Q07 N.O.R 1H07 N.O.R 2Q06 N.O.R 1H06 R.O.L Net Revenue 318,963 100.0% 605,117 100.0% 330,426 100.0% 670,747 100.0% Cost of Goods Sold (261,247) 81.9% (493,307) 81.5% (264,755) 80.1% (541,238) 80.7% Gross Profit 57,716 18.1% 111,810 18.5% 65,671 19.9% 129,509 19.3% Operating Expenses General and Administrative (10,831) 3.4% (23,256) 3.8% (10,459) 3.2% (21,964) 3.3% Commercial (15,669) 4.9% (29,099) 4.8% (13,591) 4.1% (28,299) 4.2% Others (2,400) 0.8% (1,536) 0.3% 10,276 -3.1% 10,334 1.5% (28,900) 9.1% (53,892) 8.9% (13,774) 4.2% (39,929) 6.0% Earnings Before Interest and Taxes (EBIT) 28,816 9.0% 57,918 9.6% 51,897 15.7% 89,580 13.4% Financial Result Financial Revenue 3,497 1.1% 8,241 1.4% 5,615 1.7% 8,384 1.2% Financial Expenses (7,128) 2.2% (16,502) 2.7% (9,234) 2.8% (18,165) 2.7% (3,631) 1.1% (8,261) 1.4% (3,619) 1.1% (9,781) 1.5% Earnings After Financial Income 25,185 7.9% 49,657 8.2% 48,278 14.6% 79,799 11.9% Non Operating Result (2,605) 0.8% (6,873) 1.1% (7,264) 2.2% (12,370) 1.8% Earning Before Taxes 22,580 7.1% 42,784 7.1% 41,014 12.4% 67,429 10.1% Income Taxes (8,693) 2.7% (17,483) 2.9% (13,400) 4.1% (24,911) 3.7% Net Income 13,887 4.4% 25,301 4.2% 27,614 8.4% 42,518 6.3% EBITDA 36,417 11.4% 72,807 12.0% 58,281 17.6% 102,952 15.3% (*) 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. 31
  • 32. Second Quarter 2007 August, 2007 BALANCE SHEET (R$ thousand) ASSET LIABILITIES Jun-07 Jun-06 Jun-07 Jun-06 CURRENT CURRENT Cash and Marketable Securities 46,457 52,666 Loans 83,451 193,297 Receivables 156,345 222,179 Payables 72,322 62,057 Inventory 146,990 150,149 Customers Advance 15,885 50,611 Recoverable Taxes 33,557 20,399 Wages and Charges 39,093 38,526 Others 18,240 17,089 Taxes 5,663 5,609 401,589 462,482 Provisions - 1,521 Others 21,970 19,131 238,384 370,752 LONG TERM LONG TERM Receivable 932 2,128 Loans 127,062 39,946 Deferred Income Taxes 24,958 27,702 Provisions 58,226 61,620 Others 12,406 14,893 Others 12,226 16,035 38,296 44,723 197,514 117,601 MINORITY - 212 PERMANENT EQUITY Investments 359 369 Capital 161,463 161,463 Plants, Property and Equipment 284,842 251,161 Capital Reserves 103,472 68,468 Deferred Itens 1,048 2,279 Retained Earnings 25,301 42,518 286,249 253,809 290,236 272,449 TOTAL ASSET 726,134 761,014 TOTAL LIABILITIES 726,134 761,014 32
  • 33. Second Quarter 2007 August, 2007 SHARES PERFORMANCE Average Daily Trade Volume - R$ Shares Performance - 2007 4,324,368 4,437,517 64.68% 3,097,132 3,122,009 39,6% 42,1% 24.00% 20.08% 22.69% 15.91% MYPK4 Ibovespa 1 IBX-100 IGC ISE 1H06 1H07 2Q06 2Q07 Shares Price - 2007 32.00 30.00 30.00 30.00 29.89 29.89 28.00 26.00 24.00 22.00 20.00 18.00 16.00 14.00 1/2/2007 1/18/2007 2/3/2007 2/19/2007 3/7/2007 3/23/2007 4/8/2007 4/24/2007 5/10/2007 5/26/2007 6/11/2007 6/27/2007 MYPK4 MYPK3 33
  • 34. Second Quarter 2007 August, 2007 SHAREHOLDERS COMPOSITION: jun-07 Iochpe Family BNDES Participações Participações Other Voting 74.6% Voting 21.8% Voting 3.6% Non-Voting Non- 0.4% Non-Voting Non- 27.6% Non-Voting Non- 72,0% Total 26.1% Total 25.6% Total 48.3% Issued Shares (*) Common 18,428,597 34.62% Preferred 34,803,707 65.38% Total 53,232,304 100.00% 34
  • 35. Second Quarter 2007 August, 2007

×