Iochpe-Maxion - 3Q03 Presentation
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Iochpe-Maxion - 3Q03 Presentation

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3rd Quarter 2003 Presentation

3rd Quarter 2003 Presentation

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    Iochpe-Maxion - 3Q03 Presentation Iochpe-Maxion - 3Q03 Presentation Presentation Transcript

    • Third Quarter 2003
    • Iochpe-Maxion at a glance Holding of autoparts and railroad equipment companies Domestic leadership in the majority of the line of products Export capability Updated technology Quality Competitive pricing Operational results within the international benchmarking Adjusted capital strucuture
    • Iochpe-Maxion at a glance 3 plants Cruzeiro - SP (2) Contagem - MG Shared control Companhia Iochpe BNDESPAR Bradesco
    • Iochpe-Maxion at a glance Bradesco Companhia Iochpe BNDESPAR Outros Total 11,1% 21,8% 48,2% 18,9% Voting 18,8% 56,3% 21,8% 3,1% Preferred 7,0% 3,8% 62,2% 27,3% Iochpe-Maxion S.A. 11 Tecob Iochpe Holdings 3 2 50% Maxion Componentes Amsted -Maxion Fundição Maxion Componentes Estruturais Ltda. e Equip. Ferrov. S.A. Automotivos S.A. 2.216 1.774 1.021 Amsted Industries (50%) Number of Employees Total Consolidated 4.140
    • STRATEGIC POSITION
    • Strategic Position Constant improvement on operation margins, % of net sales 22% 22% Gross Profit 21% 19% 18% 17% Ebitda 16% 14% 13% 11% 11% 9% 10% Ebit 7% 7% 6% 2% -1% 1998 1999 2000 2001 2002 3Q03 LTM(*) Net Debt / EBITDA ratio 4,4 3,6 2,2 1,1 1,5 1,1 (*) 3Q03 LTM = last 12 months
    • Strategic Position Implementing a growth strategy, Acquisition of assets related to existent business lines Additional sales of R$ 8,9 milion - 9M03 vs. 9M02 Securing new supply agreements in the local market Additional sales of R$ 92,9 million - 9M03 vs. 9M02 Export Growth Additional sales of US$ 4,5 million (R$ 17,5 million) - 9M03 vs 9M02
    • Strategic Position Revenue R$ million 900,0 770,7 Acquisition Batz 615,4 624,0 604,2 Borlem 600,0 411,2 373,7 300,0 0,0 1998 1999 2000 2001 2002 3Q03 LTM Disposal Disposal Disposals Disposal I. M. Ohio 50% Amsted-Maxion + 50% Maxion Maxion Nacam Motores 50% Maxion Motores (*) 3Q03 LTM = last 12 months
    • Strategic Position combined with the maintenance of a adjusted capital structure. Net Debt / LTM EBITDA ratio 5,6 4,4 3,6 2,2 1,5 1,1 1,1 1997 1998 1999 2000 2001 2002 3Q03 LTM(*) (*) 3Q03 LTM = last 12 months
    • Posicionamento Estratégico Revenue breakdown by company 9M03 - R$ 494,9 MM 9M02 - R$ 301,9 MM Maxion Maxion Comp. Comp. Autom. Maxion Autom. 23% Amsted- Nacam 16% Maxion 4% 24% Amsted- Maxion 15% Maxion Maxion Comp. Comp. Estrut. Estrut. 60% 58% (*) Maxion Nacam sold in Sept/02
    • AUTOMOTIVE INDUSTRY
    • Automotive Industry Brazilian vehicle output showed the following performance in the first nine months and third quarter. Brazilian total output – thousand units, unless indicated otherwise Var% 9M03 9M02 Var% 3Q03/3Q02 Cars 1.105,7 1.110,8 (0,5%) (5,2%) Utility vehicles 154,5 136,2 13,4% 27,5% Trucks 57,5 52,4 9,8% 13,6% Buses 19,9 18,5 7,7% 25,5% Agricultural Machinery 44,1 38,8 13,7% 15,1% Source : Anfavea
    • Automotive Industry Total Brazilian Output - Vehicles 2.250 THOUSAND UNITS 2.070 BRAZIL 2.000 1800 1.812 1775 1795 1.750 1.691 1.586 1.500 1.357 1.250 1.000 1.997 1.998 1.999 2.000 2.001 2.002 3Q03 2003E LTM Source : Anfavea and Sindipeças
    • Automotive Industry Car and utility vehicles output THOUSAND UNITS 1.680 BRAZIL CARS 1.495 1.500 1500 1.274 1505 1.351 302,5 246,4 235,3 UTILITY VEHICLES 215,8 199,0 171,1 179,5 180,0 1.997 1.998 1.999 2.000 2.001 2002 3Q03LTM Source : Anfavea and Sindipeças
    • Automotive Industry Trucks, buses and agricultural machinery output THOUSAND UNITS BRAZIL 77,3 71,6 73,5 TRUCKS 68,4 63,7 63,8 55,1 57,3 AGRIC. MACHINERY 52,0 44,3 33,4 35,5 31,7 28,2 24,1 BUSES 21,6 21,5 22,7 23,4 22,7 14,9 1.997 1.998 1.999 2.000 2.001 2002 3Q03LTM Source : Anfavea and Sindipeças
    • SUBSIDIARIES AUTOMOTIVE INDUSTRY
    • Subsidiaries MAXION COMPONENTES ESTRUTURAIS Maxion Comp. Estrut. 60% Revenue : R$ 295,3 MM – 9M03 R$ 174,9 MM – 9M02
    • Subsidiaries Maxion Componentes Estruturais - CHASSIS Products Segments Completed Chassis Trucks Siderails Buses Cross members Utility vehicles Tractors
    • Subsidiaries Maxion Componentes Estruturais - CHASSIS Market Share 9M03 9M02 DANA / DANA / OTHER OTHER 25% 21% MAXION 79% MAXION 75%
    • Subsidiaries Maxion Componentes Estruturais - CHASSIS Revenue breakdown by customer 9M03 - R$ 153,0 MM 9M02 - R$ 103,7 MM DANA SCANIA SCANIA OTHER 5% 5% OTHER DANA FORD 3% 15% 10% 4% 5% FORD EXPORT. 5% 9% EXPORT. 9% DAIMLER GENERAL DAIMLER CHRYSLER MOTORS CHRYSLER 22% 12% 29% GM 16% VOLKS VOLKS WAGEN WAGEN 25% 26%
    • Subsidiaries Maxion Componentes Estruturais - CHASSIS NEW SUPPLY AGREEMENTS: R$ 9,8 MM/ YEAR CHASSIS Country Starting Date Annual Sales R$ MM Siderails - Workhorse EUA Sept.03 5,4 Siderails - John Deere Brazil Jun.03 1,7 Cross members - Iveco Brazil Nov.02 0,9 Stamped parts - Streparava - Tier 2 Iveco Brazil Sept.03 0,9 Siderails - Jacto Brazil Jun.03 0,9
    • Subsidiaries Maxion Componentes Estruturais - WHEELS Products Segments Road wheels Trucks Off-road wheels Buses Agricultural wheels Agricultural machinery Off-road vehicles
    • Subsidiaries Maxion Componentes Estruturais - WHEELS Market Share 9M03 9M02 BORLEM 44% BORLEM MAXION 34% 66% MAXION 56%
    • Subsidiaries Maxion Componentes Estruturais - WHEELS Revenue Breakdown by Customer 9M03 - R$ 142,3 MM 9M02 - R$ 81,9 MM DAIMLER DAIMLER CHRYSLER CHRYSLER SCANIA 5% VOLVO SCANIA 5% 6% 4% VOLKS 4% VOLVO VOLKS OTHER WAGEN 5% WAGEN 6% 9% OTHER 12% 2% AFTER AFTER MARKET EXPORT. MARKET 16% 28% 12% EXPORT. 37% TRACTORS TRACTORS 22% 27%
    • Subsidiaries Maxion Componentes Estruturais - WHEELS NEW SUPPLY AGREEMENTS: R$ 37,1 MM / year WHEELS Country Starting date Annual Sales R$ MM GKN Europe / USA. Sept.03 15,7 Insak Singapore Jun.03 1,0 Accuride USA Dec.02 9,1 Tredcor South Africa Dec.02 2,9 AGCO Brazil Jun.03 1,5 Dunlop South Africa Jun.04 1,5 Henred-Fruehalf South Africa Mar.03 1,3 MCI - Motor Canada Apr.03 1,3 John Deere Brazil Jul.03 1,1 Continental Germany Jun.03 0,7 SPHF Morocco Feb.03 0,6 Thai Boss Thailand Apr.03 0,4
    • Subsidiaries MAXION COMPONENTES AUTOMOTIVOS Maxion Comp. Autom. 16% Revenue : R$ 81,7 MM – 9M03 R$ 70,7 MM – 9M02
    • Subsidiaries Maxion Componentes Automotivos Products Segments Cars Window raiser mechanisms Latches Knobs, cylinders and keys Hand brake levers Pedal sets Jacks Water and oil pumps
    • Subsidiaries Maxion Componentes Automotivos Market Share Main Products 9M03 9M02 Window raiser 43% 41% mechanism Hand brake levers 46% 42% Latches 10% 16% Knobs, Cylinders and Keys 10% 7% Jacks 15% -
    • Subsidiaries Maxion Componentes Automotivos Revenue breakdown by customer 9M03 - R$ 81,7 MM 9M02 - R$ 70,7 MM OTHER FORD FORD 4% 10% 7% AFTER MARKET AFTER FIAT 8% MARKET 28% FIAT 15% 35% SAS 12% VW GM 18% VW 23% 19% GM 22%
    • Subsidiaries Maxion Componentes Automotivos NEW SUPPLY AGREEMENTS: R$ 11,4 MM / year Model Product Starting Annual Sales Date R$ MM Knobs, Cylinders and Keys Gol 2002 - VW Jan.03 5,0 Acello - DaimlerChrysler Window raiser mechanisms Jun.03 1,4 Ecosport - Ford Window raiser mechanisms Mar.03 3,2 Fox - VW Jacks Oct.03 0,9 Celta - GM Window raiser mechanisms Feb.04 0,5 Doblò - Fiat Window raiser mechanisms Mar.03 0,4
    • RAILROAD INDUSTRY
    • Railroad Industry The Brazilian market of railroad equipment presented the following pattern, Sales - Brazilian Market 9M03 9M02 Var% Railroad freight cars – units 1.339 214 526% Railroad wheels – units 45.430 39.407 15% Railroad castings – ton 9.654 4.716 105%
    • Railroad Industry as a result of the big supply agreements signed in the last few months. Orders of Companhia Vale do Rio Doce First Agreement 1.886 railroad freight cars (1.326 delivered - dec/2002 and sept/2003) Delivery schedule : Dec/2002 to Dec/2003 Net revenue: R$ 207,2 million Second Agreement 1.667 railroad freight cars Delivery schedule : Jan/2004 to Jun/2004 Net revenue: aprox. R$ 200 million
    • SUBSIDIARIES RAILROAD INDUSTRY
    • Subsidiaries AMSTED-MAXION Amsted- Maxion 24% Revenue : R$ 118,0 MM – 9M03 (*) R$ 44,1 MM – 9M02 (*) (*) refers to 50% of the total revenue of the company of R$ 235,9 MM in 2003 and R$ 88,2 MM in 2002
    • Subsidiaries Amsted-Maxion Products Segments Railroad Wheels Railroad Equipment Railroad Freight Cars Trucks Railroad Castings Off-road Vehicles Road Castings Mining equipment Industrial Castings
    • Subsidiaries Amsted-Maxion Market Share Main Products 9M03 9M02 Railroad Freight Cars 100% 96% Railroad Wheels 60% 60% Railroad Castings 80% 80% Industrial Castings 60% 60%
    • Subsidiaries Amsted-Maxion Revenue breakdown by customer 9M03 - R$ 118,0 MM (*) 9M02 - R$ 44,1 MM (*) EXPORT. MRS CAT 3% OTHER 22% FCA 5% 22% 6% FCA 3% CAT MRS 10% 2% CVRD 24% CVRD EXPORT. 68% 35% (*) refers to 50% of the total revenue of the company of R$ 235,9 MM in 2003 and R$ 88,2 MM in 2002
    • Empresas Controladas Amsted-Maxion ORDERS New agreements spot - R$ 200,0 million CVRD - 1.667 railroad freight cars Previous agreements spot - R$ 67,8 million CVRD - 560 railroad freight cars - R$ 59,7 MM Mineração Serra do Sossego (CVRD) – 22 railroad freight cars – R$ 2,5 MM ALL/Coinbra – 10 railroad freight cars - R$ 1,5 MM CVRD / FCA / ALL - 4.164 railroad wheels - R$ 4,1 MM
    • Empresas Controladas Amsted-Maxion AGREEMENTS Long term recurring agreements - R$ 48,2 million / year ASF-Amsted (USA) – railroad castings - R$ 17,0MM ConMet-Amsted (USA) - fifth wheel - R$ 5,6MM Caterpillar (Brazil) - tractor parts - R$ 14,6MM Caterpillar (USA) - tractor parts - R$ 5,1MM Metso (France) - mining equipment parts - R$ 1,8MM Komatsu / Meritor / CNH (USA and Italy) - industrial castings - R$ 2,7MM Other (Canada) - mining equipment parts - R$ 1,4 MM
    • CONSOLIDATED
    • Iochpe-Maxion - Consolidated Revenue breakdown by customer 9M03 - R$ 494,9 MM 9M02 - R$ 301,9 MM After Scania Ford SAS Other Market 3% 3% 2% Other Ford 19% 5% 9% 5% Fiat Scania 5% 2% CVRD Aftermarket 4% Tractors 8% 7% CVRD Export. 16% 12% GM Fiat 8% 12% Daimler Export. Tractors 2% Volkswagen Chrysler 16% 15% 10% GM Volkswagen 14% 15% Daimler Chrysler 8%
    • Iochpe-Maxion - Consolidated Revenue breakdown by segment Customers 9M03 9M02 OEMs installed in the country 65% 73% - Buses, trucks and utility vehicles 49% 46% - Passenger cars 16% 27% Brazilian railroad operators 19% 10% Exports 16% 17%
    • Iochpe-Maxion - Consolidated Export breakdown by product 9M03 9M02 US$ 25,0 MM / R$ 80,4 MM US$ 18,2 MM / R$ 52,6 MM AUTOM. AUTOM. COMP. COMP. 2% 1% RAILROAD EQUIP. RAILROAD 27% EQUIP. 28% ROAD ROAD WHEELS WHEELS 52% 56% CHASSIS CHASSIS 16% 18% Import 9M03 Import - 9M2002 US$ 6,5 MM / R$ 20,9 MM US$ 8,4 MM / R$ 24,3 MM
    • Iochpe-Maxion - Consolidated Export breakdown by destination 9M03 9M02 US$ 25,0 MM / R$ 80,4 MM US$ 18,2 MM / R$ 52,6 MM AFRICA / AFRICA / MIDLE MIDLE EAST EAST 15% 18% EUROPE 7% EUROPE 8% USA ASIA / USA 37% OCEANIA 40% ASIA / 5% OCEANIA 3% SOUTH SOUTH AMERICA AMERICA 12% 15% CANADA CANADA MEXICO MEXICO 17% 4% 17% 2% Nafta : 56% / Alca : 71% Nafta : 61% / Alca : 73%
    • Iochpe-Maxion - Consolidated Income Statement 9 Months 2003 2002 Net Revenue 494.905 301.925 (-) Cost of Products Sold (387.632) (239.316) Gross Profit 107.273 62.609 Operational Expenses Sales (32.625) (21.845) General and Administrative (24.077) (21.432) Other (1.226) 1.352 (57.928) (41.925) EBIT 49.345 20.684 Net Financial Expenses (29.160) (35.481) Operational Result 20.185 (14.797) Non-operational Result (2.499) 6.577 Earnings before taxes and minority interest 17.686 (8.220) Taxes and minority interest (14.886) (4.672) Net Income 2.800 (12.892) EBITDA 73.722 45.121
    • Iochpe-Maxion - Consolidated Net Debt - R$ million 350 307 313 300 250 217 208 195 200 130,3 150 115,1 105,7 100 65,1 50 0 1996 1997 1998 1999 2000 2001 2002 2Q03 3Q03
    • Iochpe-Maxion - Consolidated Debt breakdown by type of loan - Sept 2003 - R$ MM SHORT LONG TYPE OF LOAN TERM TERM TOTAL Local Bonds 20,1 24,5 44,6 Trade Finance / ACC / Res. 2770 55,4 4,0 59,4 Finame / BNDES / BDMG / EXIM 14,2 9,7 23,9 Local Currency Loans 8,5 8,5 98,2 38,2 136,4 (-) Cash 16,8 4,5 21,3 Net Debt 81,4 33,7 115,1
    • Iochpe-Maxion - Consolidated Debt breakdown by denomination Sept 2003 - R$ 136,4 MM - % Total Other TJLP 4% 8% INPC Dollar 33% 19% CDI IGPM 29% 7%
    • Iochpe-Maxion - Consolidated Foreign currency exposure - Sept/03 - US$ MM Balance Sheet Assets denominated in foreign currency . Marketable securities / Investments 3,1 . Receivables 4,2 7,3 Liabilities in foreign currency . Bank debt (ACC / Res. 2770) (8,0) . Payables (3,7) (11,7) Net position (4,4)
    • Iochpe-Maxion - Consolidado Stock Performance THOUSAND R$ R$ / 1000 shares 4.500 60,0 VOLUME / PRICE 51,9 IOCHPE-MAXION PN (MYPK4) 3.750 45,0 3.050 3.000 PRICE 2.250 26,8 27,6 30,0 26,8 26,4 23,5 25,2 24,7 24,2 25,1 1.500 22,5 20,9 VOLUME 15,0 750 177 312 85 131 35 115 104 50 50 125 136 - - 02 02 3 03 2 03 3 03 3 3 3 3 /0 t/0 r/0 /0 /0 /0 /0 v/ c/ g/ b/ / jul r jan jun pt y oc ma ap no de au fe ma se
    • BENCHMARK
    • Benchmark Gross Profit % sales Gentex Eaton Strattec Iochpe-Maxion Federal Mogul Borg Warner Valeo Tenneco Superior Johson Controls Autoliv Dura Dana Intermet Tower Lear Delphi Visteon 0% 10% 20% 30% 40% Source : Companies releases
    • Benchmark EBIT % Sales Gentex Strattec Superior Iochpe-Maxion Borg Warner Autoliv Eaton Dura Johson Controls Tenneco Lear Valeo Dana Intermet Federal Mogul Delphi Visteon Tower -10% 0% 10% 20% 30% 40% Source : Companies releases
    • Benchmark EBITDA %Sales Strattec Iochpe-Maxion Borg Warner Autoliv Intermet Tenneco Dura Johson Controls Federal Mogul Dana Lear Delphi Tower Visteon 0% 5% 10% 15% 20% 25% Source : Companies releases
    • OUTLOOK
    • Outlook Outlook Revenue trend: (+) new supply agreements (+) growth of the local market of agricultural machinery, trucks, buses and railroad equipment (-) stability in the local market of passenger cars (-) export revenue reduction due to Brazilian Real appreciation Maintenance of the operational performance (+) scale gains (+) on-going cost reduction programs (-) increase of non negotiable costs (energy, wages, raw material) Adjusted capital structure