Iochpe-Maxion - 3Q04 Presentation
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3rd Quarter 2004 Presentation

3rd Quarter 2004 Presentation

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Iochpe-Maxion - 3Q04 Presentation Iochpe-Maxion - 3Q04 Presentation Presentation Transcript

  • 2004 Third Quarter Results
  • Iochpe-Maxion: Fundamentals Strong organic growth of revenues Steady operational margins Growing cash flow generation Solid capital structure – debt / EBITDA ratio Focus on equipments related to the logistics industry Local market leadership Capital expenditures aiming at a strong competitive position – entry barriers Growing exports Capacity expansion in line with demand growth 2
  • Iochpe-Maxion: Capital Markets and Governance Public company since 1984 Investor relationship Quarterly meetings Website – exclusive IR content Annual Reports, press releases, etc. Dividend payout – 37% of net income and an additional 10% for non voting shares Stock Growing liquidity and float Board with 2 independent members and no executive officer Audit Board (“Conselho Fiscal”) with 1 representative of the non- controlling shareholders 3
  • Shareholder Composition – Sept. 04 Shareholder Agreement Iochpe Family BNDES Participações Other Other – Sept. 03 Voting 75.6% Voting 21.8% Voting 2.6% Voting 3.1% Non-voting 0.5% Non-voting 62.2% Non-voting 37.3% Non-voting 26.6% Total 26.5% Total 48.2% Total 25.3% Total 18.5% Iochpe-Maxion Iochpe-Maxion S.A. Outstanding Shares Voting 921,429,894 34.62% Non-voting 1,740,185,376 65.38% Total 2,661,615,270 100.00% 4
  • Corporate Structure – Sept. 04 Iochpe-Maxion S.A. (11 Employees) Consolidated = 5.969 Employees Tecob Repr.Cobr. Ltda 100% 100% Iochpe Holdings, LLC (3 Employees) (2 Employees) 99.99% 50% Maxion Componentes Amsted Maxion Fund. e Estruturais Ltda. Equip. Ferroviários S.A. (3.370 Empoyees) 92.64% 7.22% Maxion Sistemas 50% Automotivos S.A. Amsted Industries Wheels and Automotive Chassis Division Comp. Division (2.974 Employees) (1.294 Employees) 5
  • Net sales breakdown by company % 9M04 - R$ 786.8 MM 9M03 - R$ 494.9 MM Automotive Automotive Comp. Division Comp. Division 13% 16% 57% 60% 30% Amsted 2 4 % Amsted Maxion (*) Maxion (*) Wheels and Wheels and Chassis Division Chassis Division (*) Consolidated figures take into consideration 50% of the net sales of Amsted Maxion 6
  • Automotive Industry – Brazilian Output Thousand units 3Q04 3Q03 Chg.% 9M04 9M03 Chg.% Cars 468.7 350.4 33.8% 1,302.6 1,104.9 17.9% Light Commercials 83.0 55.4 49.8% 223.7 153.5 45.7% Trucks 29.1 19.6 48.5% 79.1 58.3 35.6% Buses 7.7 7.0 10.6% 21.4 20.0 7.4% Total Vehicles 588.6 432.4 36.1% 1,626.9 1,336.7 21.7% Agricultural Machinery 18.9 17.5 7.7% 51.1 44.1 15.8% Source : Anfavea 7
  • Automotive Industry - Export Thousand units 3Q04 3Q03 Chg.% 9M04 9M03 Chg.% Cars 147.1 104.8 40.3% 361.3 333.9 8.2% Light Commercials 28.5 20.1 41.8% 74.5 48.8 52.7% Trucks 7.3 3.7 98.0% 19.0 8.4 126.2% Buses 3.3 2.5 28.4% 8.1 6.5 23.9% Total Vehicles 186.3 131.2 41.9% 462.9 397.7 16.4% Agricultural Machinery 8.5 6.3 34.5% 23.2 14.9 55.5% Source : Anfavea 8
  • WHEEL AND CHASSIS DIVISION (*) 57% (*) Division of
  • WHEELS AND CHASSIS DIVISION Chassis and Siderails - 51% of net sales Heavy Medium Light Stamped Parts Structural Siderails Pats Chassis 10
  • WHEELS AND CHASSIS DIVISION Wheels for Vehicles - 49% of net sales 11
  • WHEELS AND CHASSIS DIVISION R$ MM Net Sales 600 552 .3% . = 52 a.a .9% h g.% 450 9 C =3 397 400 GR % C A 3.7 =5 295 241 g .% 208 Ch 173 200 174 113 112 00 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annually Growth Rate 12
  • WHEELS AND CHASSIS DIVISION Chassis – Market Share % 9M04 9M03 74% 74% OEMs OEMs 11% 10% 15% 16% Dana Dana Maxion Maxion 13
  • WHEELS AND CHASSIS DIVISION Chassis – Net sales breakdown by customer % 9M04 – R$ 229.8 MM 9M03 – R$ 153.0 MM Volks- Volks- wagen General General Motors wagen 22% Motors 13% 26% 16% 5% Ford 9% Ford 28% 9% 7% Export Export 22% 5% 3% Scania 16% Scania Daimler 19% Daimler Chrysler Chrysler Other Other 14
  • WHEELS AND CHASSIS DIVISION Chassis – New Orders: R$ 19.2 MM per year P ro d u c t / C u s to m e r C o u n try S ta r tin g D a te A n n u a l S a le s R$ MM L ig h t S ta m p in g s - A r v in M e r ito r B r a z il M a y .0 5 9 .6 M e d iu m S ta m p in g s - D a im le r C h r y s le r B r a z il A u g .0 4 3 .1 C h a s s is - V o lk s w a g e n (C K D - M e x ic o ) B r a z il M a r .0 4 2 .3 C h a s s is - V o lk s w a g e n B r a z il A p r .0 4 2 .2 L ig h t S ta m p in g s - D a im le r C h r y s le r B r a z il J u n .0 4 1 .3 M e d iu m S ta m p in g s - P e u g e o t C itr o e n B r a z il O c t.0 4 0 .4 S id e r a il R e in fo r c e m e n t - D a im le r C h r y s le r B r a z il M a y .0 4 0 .3 15
  • WHEELS AND CHASSIS DIVISION Wheels - Market Share % 9M04 9M03 Other Other 10% 10% 39% 39% 51% 51% Borlem Borlem Maxion Maxion 16
  • WHEELS AND CHASSIS DIVISION Wheels – Net sales breakdown by customer % 9M04 – R$ 220.0 MM 9M03 – R$ 142.3 MM Volks- Volks- wagen Scania wagen Scania Volvo After 11% 6% 12% Volvo After 6% market 6% market 1 2 % 4% Outros 16% Other 11% 11% 28% Export 2 4 % 26% Export 27% Tractors Tractors 17
  • WHEELS AND CHASSIS DIVISION WHEELS – NEW ORDERS: R$ 17.4 MM per year CUST O M ER C o u n tr y S t a r t in g D a t e A n n u a l S a le s R$ M M W o rk h o rs e USA J u n .0 5 6 .5 Jo h n D eere B r a z il N o v .0 4 3 .2 S t ip T u n is M a y .0 4 2 .3 D u n lo p S o u t h A f r ic a J u n .0 4 1 .5 K u rt L e y s e r C o rp . S o u t h A f r ic a A p r .0 4 1 .5 M AAP M o ro cco M a y .0 4 1 .0 B r id g e s t o n e S p a in F e b .0 4 0 .8 K r is t a n a s S p ir o s G re e c e J u l.0 4 0 .6 18
  • AUTOMOTIVE COMPONENTS DIVISION (*) 14% (*) Division of
  • Automotive Components Division Partial Divestiture – Sept.10 , 2004 Assets related to the window raiser mechanism Buyer: Brose do Brasil Ltda. – subsidiary of Brose International GmbH Amount: R$ 17.8 million Asset transfer in 180 days Window raiser mechanisms business represents: 7% of the consolidated net sales 51% of the net sales to the passenger car segment 20
  • Automotive Components Division HANDBRAKE PEDAL JACKS LEVERS SETS 21
  • Automotive Components Division R$ MM Net Sales 150 0% a.a. 138 % R = 9. = 28.9 CAG hg. % 114 C 105 99 98 100 92 94 82 % = 38.6 % C hg. 50 37 27 0 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annually Growth Rate 22
  • Automotive Components Division Market Share % 9M04 9M03 W indow raiser m echanism 42% 43% H and break lever 43% 46% Pedal Set 27% 27% Jack 20% 15% Latch 9% 10% K nob / K ey / C ylinder 7% 10% 23
  • Automotive Components Division Net sales breakdown by customer % 9M04 – R$ 105.3 MM 9M03 – R$ 81.7 MM General General Motors Motors 25% 23% Volks- Volks- 19% wagen 15% wagen 31% 29% 14% Fiat 12% SAS SAS Fiat 4% 7% 4% 2% 8% 7% Other After Ford Other After Ford Market Market 24
  • Automotive Components Division New Orders: R$ 1,2 MM per year (*) M o d e l - C u s to m e r s P ro d u c t S t a r t in g A n n u a l S a le s D a te R$ M M Fox - VW Jack O c t .0 3 0 .9 P ic k - u p M o n t a n a - G M L a tc h N o v .0 3 0 .3 (*) Does not include new orders of window raiser mechanisms, due to the disposal of this business 25
  • Brazilian market of railroad equipment Sale 3Q04 3Q03 Chg.% 9M04 9M03 Chg.% Railroad freight cars – units 1,579 511 209% 4,195 1,339 213% Railroad wheels – thous. units 13.6 8.9 53% 30.4 27.0 13% Railroad castings – thous. tons 0.7 0.7 0% 2.7 1.6 69% Does not include wheels and castings used in the assembly of new freight cars 26
  • Subsidiaries : AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS 30%
  • Amsted Maxion RAILROAD RAILROAD BOOGIES WHEELS FREIGHT CARS 28
  • Amsted Maxion R$ MM Net Sales (*) % 6.5 =9 600 556 a.a. % g. 4 6 4 C h .2% = 45 GR 400 % CA 328 1.5 = 11 236 . % C hg 189 200 122 110 120 95 89 0 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annually Growth Rate (*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales 29
  • Amsted Maxion Market Share % 9M04 9M03 R a ilr o a d F r e ig h t C a r s 75% 100% R a ilr o a d W h e e ls 40% 60% R a ilr o a d C a s tin g s 80% 80% In d u s tr ia l C a s tin g s 50% 60% 30
  • Amsted Maxion Net sales breakdown by customer % 9M04 – R$ 231,8 MM(*) 9M03 – R$ 118,0 MM(*) CVRD CVRD 68% 57% 14% MRS 2% MRS 12% Export 22% 3% Export 3% 7% 3% 5% 4% FCA Other Ferronorte Caterpillar FCA Caterpillar (*) Accounts for 50% of the net sales of Amsted Maxion 31
  • Amsted Maxion Spot Orders 2004 : R$ 580.0 MM (*) CVRD / FCA – 2,878 cars MRS - 630 cars Delivered ADM - 140 cars As of Sept. 30 – 3,116 cars Mineração Serra and 30 boxes do Sossego - 42 cars Still in 2004 – 724 cars MRS / ALL - 50 boxes and 20 boxes MRC (Mitsui) – 150 cars Total = 3,840 cars and 50 boxes (*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales 32
  • Amsted Maxion Spot Orders 2005 : R$ 130.0 MM (*) MRC (Mitsui) – 350 cars C.V.G. Ferrominera Orinoco - (Venezuela) - 225 cars Comilog S.A. (Gabon) - 76 cars CBG – Compagnie des Bauxites de Guinee (Guinee) - 24 cars Total = 675 cars (*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales 33
  • Amsted Maxion Recurring Orders : R$ 132.2 MM per year (*) Caterpillar (Brazil and USA) – tractor parts - R$ 54.0MM ASF-Amsted (USA) – railroad castings – R$ 44.7MM C.V.G. Ferrominera Orinoco (Venezuela) – railroad castings – R$ 10.1MM Truck OEMs (Brazil) – fifth-wheels – R$ 8.5MM ConMet-Amsted (USA) – fifth-wheels components - R$ 7.7MM Metso (France) – industrial castings - R$ 3.6MM Komatsu / CNH (USA and Italy) – industrial castings - R$ 3.6MM (*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales 34
  • CONSOLIDATED FIGURES
  • Consolidated Net sales breakdown by customer % 9M04 – R$ 786.8 MM 9M03 – R$ 494.9 MMM Daimler Volks- Chrysler Volks- Daimler General wagen Chrysler wagen Motors 9% 15% 10% 12% 7% General Tractors 7% 8% Motors Export 1 3 % Export After 16% 5% Market 8% Tractors 4% Fiat 4% 5 % After 17% MRS 16% 5% Market 1% CVRD 22% CVRD 16% Fiat MRS Other Other 36
  • Consolidated – Net sales breakdown by segment % Customer Segment 9M04 9M03 OEMs producing in the country 61% 65% - Bus, truck and light commercial 48% 49% - Passanger cars 13% 16% Brazilian railroad operators 26% 19% Export 13% 16% 37
  • Consolidated – Export by product segment % 9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM Automotive Automotive Wheels Wheels Chassis Chassis 18% 53% 17% 52% 29% 28% 1% 2% Railroad Automotive Railroad Automotive Equipment Comp. Equipment Comp. Import 9M04 Import 9M03 US$ 8.0MM / R$ 23.6MM (*) US$ 6.6MM / R$ 20.9MM (*) includes US$ 3.4MM / R$ 10.0MM of machineryand equipment 38
  • Consolidated – Export by destination % 9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM Canada Canada 17% Mexico 10% 2% South 53% Mexico America 3% 15% USA 38% 3% Asia / 19% USA South 8% Oceania America 1% Europe 7% 7% 17% Asia / Oceania Africa / Europe Africa / Middle East Middle East 39
  • Consolidated R$ MM Net Sales .a. a 968 .0% 1000 .3% = 59 41 % Disposals = g. 787 GR C h 750 CA 6 7 5 ,7 6 1 5 ,4 6 2 4 ,0 % 495 5.6 500 =6 g.% 4 1 1 ,2 3 7 3 ,7 C h 305 250 184 0 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annually Growth Rate 40
  • Consolidated - First Nine Months % net sales Operational Margins 23% 22% 22% 21% 19% 17% 16% 15% 15% 15% 13% 9% 10% 10% 8% 7% 4% -1% -5% -2% G r o s s P r o f it E B ITD A E B IT O p e r a ti o n R e s u lt 9M00 9M01 9M02 9M03 9M04 41
  • Consolidated - First Nine Months R$ MM Operational Margins 1 7 4 ,6 1 2 6 ,4 1 0 7 ,3 1 0 4 ,1 8 5 ,3 7 3 ,7 7 7 ,7 6 7 ,4 6 8 ,2 6 2 ,6 5 0 ,8 4 9 ,3 3 6 ,1 4 5 ,1 2 7 ,6 2 0 ,7 2 0 ,2 (3 ,4 ) (1 4 ,8 ) (1 0 ,1 ) G r o s s P r o fit E B ITD A E B IT O p e r a tio n R e s u lt 9M00 9M01 9M02 9M03 9M04 42
  • R$ thous. 43
  • 44
  • 45
  • Consolidated – Bank Debt Breakdown – Sept. 04 TJLP 22% (equipment line) 47% Dollar 15% 3% INPC 13% (consumer Inflation) IGPM CDI (general (interbank) Inflation) 46
  • Consolidated – Foreign currency Exposure – Sept. 04 B a la n c e S h e e t US$ MM A s s e ts d e n o m in a te d in fo re ig n c u rre n c y . M a r k e t a b l e S e c u r it ie s / In v e s t m e n t s 1 .8 . A c c o u n t s R e c e iv a b l e 9 .9 1 1 .7 L ia b ilitie s d e n o m in a te d in fo re ig n c u rre n c y . B a n k D e b t ( E x p o r t L in e s / O t h e r ) (2 8 .5 ) . A c c o u n ts P a y a b le (2 .6 ) (3 1 .1 ) N e t P o s itio n (1 9 .4 ) 47
  • Stock Performance 48
  • Consolidated – Social Report W h e e ls a n d A u t o m o t iv e A m s te d C o rp o ra te a n d C o n s o lid a t e d ( * * ) C h a s s is C o m p o n e n t s M a x io n O th e r S e p t. 2 0 0 4 S e p t. 2 0 0 3 E m p lo y e e s 2 ,9 7 4 1 ,2 9 4 3 ,3 7 0 16 5 ,9 6 9 4 ,1 4 0 P r o d u c t iv it y ( * ) R $ t h o u s . / E m p lo y e e 1 8 5 .5 1 0 6 .6 1 6 4 .9 - 1 6 2 .1 1 4 5 .9 (*) Last 12 months sales /Number of employees at the end of the period (**) Consolidated ficgures take into consideration 50% of Amsted Maxion 49
  • BENCHMARK
  • Benchmark – Gross Profit % net sales G e n te x S t o n e r id g e E a to n S tra tte c Io c h p e - M a x io n F e d e ral M o g u l M a r c o p o lo B o rg W arn e r V a le o C u m m in s T it a n Te n n e co A m e r ic a n A x le A u t o liv J o h n s o n C o n t r o ls D u ra S u p e r io r Dana Le ar To w e r 3Q 04 3Q 03 D e lp h i V is t e o n 0% 10% 20% 30% 40% Av e rag e = 16% Fonte: Companies releases 2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results 51
  • Benchmark – EBIT % net sales G e n te x S tra tte c Io c h p e - M a x io n S t o n e r id g e A m e r ic a n A x le B o rg W arn e r M a r c o p o lo E a to n T it a n A u t o liv S u p e r io r T e nne co V a le o J o h n s o n C o n t r o ls C u m m in s D u ra D ana Le ar T ower F e d e ral M o g u l D e lp h i 3Q 04 3Q 03 V is t e o n -5 % 5% 15% 25% 35% A v e ra g e = 7 % Fonte: Companies releases 2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results 52
  • Benchmark – EBITDA % net sales G e n te x S tra tte c Io c h p e - M a x io n B o rg W arn e r A m e r ic a n A x le A u t o liv T it a n M a r c o p o lo Te n n e co F e d e ral M o g u l D u ra Dana C u m m in s To w e r J o h n s o n C o n t r o ls Le ar D e lp h i 3Q 04 3Q 03 Visteon 0% 10% 20% 30% 40% Av e rag e = 11% Fonte: Companies releases 2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results 53
  • www.iochpe-maxion.com.br/ 54