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Iochpe-Maxion - 3Q07 Presentation
 

Iochpe-Maxion - 3Q07 Presentation

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3rd Quarter 2007 Presentation

3rd Quarter 2007 Presentation

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    Iochpe-Maxion - 3Q07 Presentation Iochpe-Maxion - 3Q07 Presentation Presentation Transcript

    • THIRD QUARTER 2007 November, 2007
    • Third Quarter 2007 November, 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
    • Third Quarter 2007 November, 2007 3Q07 HIGHLIGHTS Net operating revenue of R$ 355.7 million, an increase of 14.1% over the same period of last year EBITDA(*) of R$ 57.5 million, an increase of 58.6% over the same period of last year Net income of R$ 30.1 million, an increase of 116.6% over the same period of last year Net debt bank of R$ 173.6 million (R$ 184.0 million in 3Q06), or 1.1x EBITDA LTM(*) (1.0x in 3Q06) (*) 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
    • Third Quarter 2007 November, 2007 3Q07 – MAIN FACTORS Growth of the Brazilian production of vehicles and agricultural machinery Reduction of domestic demand for railway freight cars Impact of the real appreciation (1.8928 – 3Q07 x 2.1631 – 3Q06) on exports (R$ 8.1 million) 4
    • Third Quarter 2007 November, 2007 CORPORATE STRUCTURE Iochpe-Maxion S.A. Iochpe- 50% 100% Amsted-Maxion Fundição e Amsted- Maxion Sistemas Automotivos Equipamentos Ferroviários S.A. Ltda. R$ 73.8 million1 (21%) R$ 251.0 million1 (71%) Railway Equipments Automotive Components Wheels and Chassis Division Division Railway freight cars: R$ 28.7 million1 (8%) Wheels: R$ 104.0 million1 (29%) Autoparts: R$ 30.9 milhões1 (9%) Castings: R$ 35.8 million1 (10%) and wheels: R$ 9.2 million1 (3%) Chassis: R$ 147.0 million1 (41%) 1 Consolidated net revenue in the third quarter of 2007 5
    • Industry Performance
    • Third Quarter 2007 November, 2007 LIGHT COMMERCIALS – BRAZIL (‘000 units) 0% 6=2 R02–0 CAG 5 = 3% 6=4 0% 06 - 0 R02–0 9M07 - 06 = 3% CAG 06 – 05 = (2 %) 379 366 9M07 – 0 6= (5%) 318 3Q07 – 06 = 14% 295 286 3Q07 – 0 6 = (1 %) 216 180 156 153 114 115 109 112 98 72 40 42 41 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Source: Anfavea Production Export 7
    • Third Quarter 2007 November, 2007 TRUCKS – BRAZIL (‘000 units) 6= 11% R0 2–0 CAG % = 67 06 – 0 – 06 5 = (10 R 02 %) CAG 06 – 05 = 1% – 06 = 26% 9M07 117 06 = 34% 3Q07 – 6 = 6% 107 106 9M07 – 0 100 6=8 % 3Q07 – 0 79 79 69 38 39 38 28 30 28 25 13 11 10 5 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Source: Anfavea Production Export 8
    • Third Quarter 2007 November, 2007 BUSES – BRAZL (‘000 units) 1% 6=1 R02–0 CAG = 25% – 06 06 – R 02 05 = CAG ( 4%) % 06 – 06 = 7 05 = 9M07 – ( 15% ) 35 9M0 6 = 16% 34 7– 06 = 3Q07 – 0 (16% ) 30 3Q07 29 28 – 06 27 =( 21% ) 23 19 16 13 12 11 10 9 9 7 5 4 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Source: Anfavea Production Export 9
    • Third Quarter 2007 November, 2007 AGRICULTURAL MACHINERY – BRAZIL (‘000 units) CAGR 02 – 06 = (3%) = 21% 02 – 06 CAGR 06 – 05 = (13% ) 5% 69 6=3 06 – 7–0 05 = (27% 9M0 ) 59 – 06 = 19% 9M07 64% 53 06 = 52 3Q 07 – 48 46 – 06 = 40% 3Q07 36 31 31 21 22 19 19 16 12 10 8 6 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Source: Anfavea Production Export 10
    • Third Quarter 2007 November, 2007 PASSENGER CARS – BRAZIL (‘000 units) % 02 – 06 = 8 CAGR 5% 02 – 06 = 1 = 11% CAGR 06 – 05 = 4% 06 9M07 – 06 – 05 = (7%) 9M07 – 0 6= (9%) % 06 = 19 2,092 3Q07 – 2,009 1,757 1,756 3Q07 – 06 = (3 %) 1,579 1,521 1,505 684 638 635 497 536 489 445 440 363 166 161 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Source: Anfavea Production Export 11
    • Third Quarter 2007 November, 2007 RAILWAY FREIGHT CARS – BRAZIL (units) 7% 0 6=8 06 – 05 = 02 – (50% CAGR ) 7,270 5,642 9M07 – 06 = (80% ) 3Q07 3,605 – 06 = (61% 3,291 ) 2,459 656 728 294 282 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Source: Amsted Maxion estimate Production 12
    • Third Quarter 2007 November, 2007 MARKET SHARE – BRAZIL (9M07) Commercial Vehicles Railway Freight Railway Chassis Wheels Cars Castings Maxion Maxion Maxion 80% 67% 79% 62% Maxion 21% 33% Dana 12% 5% Borlem 21% 20% OEM Others Others Cruzaço Maxion 65% 55% 81% 80% 9M06 Source: Maxion Estimate 13
    • Financial and Operating Performance
    • Third Quarter 2007 November, 2007 NET OPERATING REVENUE (R$ million) 06- 05 = % (17% 06 = 32 ) 2– R0 CAG 9M07 – 0 6= (2%) 1,494 6 = 14% 1,248 3Q07 – 0 1,099 982 961 676 411 312 356 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 15
    • Third Quarter 2007 November, 2007 NET OPERATING REVENUE – 9M07 Net Operating Revenue 9M07 – R$ 960.8 million Net Operating Revenue 3T07 – R$ 355.7 million Customer - 9M07 (%) Segment - 9M07 (%) Others – 13.3% Daimler – 14.1% 2,3% 2,9% 11,7% 10,8% Caterpillar – 1.6% 7,1% ALL – 0.8% Scania – 5.9% 22,7% 8,9% MRS – 3.9% 6,6% 40,6% CVRD – 1.7% Volvo – 2.1% 31,8% Tractors – 7.0% 24,9% 29,7% Volkswagen – 16.1% 9M06 9M07 Wheels Chassis Automotive Comp. Freight Cars Castings Railway Wheels Export – 19.5% GMB – 5.6% Ford – 4.1% Fiat – 4.2% 16
    • Third Quarter 2007 November, 2007 EXPORTS (USD million) % 24 9% 5= =4 06-0 06 % 2– – 06 = 9 GR0 9M07 CA 119 3Q07 – 06 = (2 )% 96 94 87 47 33 31 31 24 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 17
    • Third Quarter 2007 November, 2007 EXPORTS – 9M07 Exports 9M07 – R$ 187.0 million (US$ 94.3 million) Exports 3T07 – R$ 58.4 million (US$ 30,8 million) Destination - 9M07 (%) Segment - 9M07 (%) Canada / Mexico – 4.7% Africa & Middle East – 16.2% 56,1% 55,9% 5,7% 0,4% 0,4% 14,2% Europe – 8.1% 37,80% 29,50% 9M06 9M07 Wheels Chassis Automotive Comp. Amsted-Maxion Latin America – 17.5% USA – 53.4% 18
    • Third Quarter 2007 November, 2007 EXPORTS (USD million) 94.3 86.7 31.3 30.8 52.8 16.2 48.6 17.9 0.4 0.1 0.4 1.6 5.0 0.2 13.4 4.1 32.8 13.4 27.7 8.6 9M06 9M07 3Q06 3Q07 Wheels Chassis Wheels Chassis Automotive Comp, Amsted Maxion Automotive Comp. Amsted-Maxion Variance 9M07 - 06 (%) Variance 3T07 - 06 (%) Wheels – (15.5%) Wheels – (35.8%) Chassis – 170.7% Chassis – 159.7% Automotive Comp. – 8.2% Automotive Comp. – 26.1% Amsted-Maxion – 8.7% Amsted-Maxion – 10.5% 19
    • Third Quarter 2007 November, 2007 GROSS PROFIT (R$ million) 21% 20% 21% 20% 19% 19% 19% 18% 18% 228 289 219 185 184 137 87 72 56 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Gross Profit % Net Sales 20
    • Third Quarter 2007 November, 2007 OPERATING INCOME – EBIT (R$ million) 12% 12% 12% 14% 11% 10% 9% 9% 11% 178 127 136 119 107 58 49 36 30 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 EBIT % Net Sales 21
    • Third Quarter 2007 November, 2007 EBITDA* (R$ million) 17% 16% 14% 14% 14% 14% 13% 13% 12% 205 156 163 139 130 89 69 57 36 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 EBITDA % Net Sales (*) 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. 22
    • Third Quarter 2007 November, 2007 NET FINANCIAL EXPENSES (R$ million) 13% 6% 54 38 3% 2% 2% 2% 33 2% 37 1% 21 1% 16 10 6 2 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Financial Exp. % Net Sales 23
    • Third Quarter 2007 November, 2007 NET INCOME (R$ million) 72 58 56 55 51 9% 6% 6% 5% 5% 5% 5% 30 14 -1% (24) (5) -6% 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 Net Income % Net Sales 24
    • Third Quarter 2007 November, 2007 NET BANK DEBT (R$ million) 1.5 1.3 1.1 1.0 0.8 174 184 0.6 0.6 115 132 106 102 125 2002 2003 2004 2005 2006 9M06 9M07 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. 25
    • Third Quarter 2007 November, 2007 INDEBTEDNESS – sep 07 (R$ million) SHORT LONG LINES TOTAL TERM TERM Trade Finance / Export 24.2 35.7 59.9 Equipment Finance / EXIM 76.3 83.1 159.4 100.5 118.8 219.3 (-) Cash & Marketable Securities 45.7 45.7 Net Debt 54.8 118.8 173.6 Debt Indexation Average Cost (Sep 07) 76% Index by TJLP, CDI e IGPM in R$ 78% CDI 2% 22% Index by Dollar in US$ 8.1% per year TJLP Dólar IGP-M At the end of Sep 07, the company had contracted US$ 62.8 million of non-deliverable forward contracts at R$ 2.0113 average FX rate, for the period of Oct 07 to Sep 08 Forward positive impact to expire is not accounted, only the positive impact expired According to Brazilian GAAP, if at any end of a month a negative future impact is foreseen on the contracts, the full negative impact must be provisioned 26
    • Third Quarter 2007 November, 2007 CAPEX (R$ million) 84 73 68 54 46 47 41 20 10 2002 2003 2004 2005 2006 9M06 9M07 3Q06 3Q07 27
    • Third Quarter 2007 November, 2007 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
    • Additional Information
    • Third Quarter 2007 November, 2007 INCOME STATEMENT (R$ thousand) Income Statement - R$ thousand 3Q07 R.O.L 3Q06 R.O.L 9M07 R.O.L 9M06 R.O.L Net Operating Revenue 355,705 100.0% 311,739 100.0% 960,822 100.0% 982,486 100.0% Cost of Goods Sold (283,403) 79.7% (255,828) 82.1% (776,711) 80.8% (797,066) 81.1% Gross Profit 72,301 20.3% 55,911 17.9% 184,111 19.2% 185,420 18.9% Operating Expenses General and Administrative (11,678) 3.3% (12,487) 4.0% (34,934) 3.6% (34,448) 3.5% Commercial (1,333) 0.4% (1,719) 0.6% (4,209) 0.4% (4,359) 0.4% Others (9,807) 2.8% (11,946) 3.8% (37,567) 3.9% (27,274) 2.8% (22,817) 6.4% (26,152) 8.4% (76,709) 8.0% (66,081) 6.7% Operating Income (EBIT) 49,484 13.9% 29,759 9.5% 107,402 11.2% 119,339 12.1% Financial Results Financial Revenue 832 0.2% 1,017 0.3% 4,548 0.5% 3,825 0.4% Financial Expenses (2,896) 0.8% (7,149) 2.3% (14,873) 1.5% (19,738) 2.0% (2,064) 0.6% (6,132) 2.0% (10,325) 1.1% (15,913) 1.6% Earnings After Fiancial Income 47,420 13.3% 23,627 7.6% 97,077 10.1% 103,426 10.5% Non Operating Results (830) 0.2% (4,826) 1.5% (7,703) 0.8% (17,196) 1.8% Earnings Before Taxes 46,590 13.1% 18,801 6.0% 89,374 9.3% 86,230 8.8% Income Taxes (16,530) 4.6% (4,924) 1.6% (34,013) 3.5% (29,835) 3.0% Net Income 30,060 8.5% 13,877 4.5% 55,361 5.8% 56,395 5.7% EBITDA 57,455 16.2% 36,366 11.7% 130,262 13.6% 139,318 14.2% (*) 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
    • Third Quarter 2007 November, 2007 BALANCE SHEET (R$ thousand) ASSETS LIABILITIES Sep-07 Sep-06 Sep-07 Sep-06 CURRENT CURRENT Cash 45,663 26,913 Loans 100,528 180,965 Receivables 176,473 202,321 Payables 75,160 45,867 Inventory 162,080 144,727 Customers Advance 11,323 22,743 Recoverable Taxes 22,937 18,009 Wage and Charges 45,301 41,079 Others 15,089 12,765 Taxes 8,757 7,286 422,242 404,735 Provisions - 9,273 Others 21,536 10,481 262,605 317,694 LONG TERM LONG TERM Receivable 926 1,524 Loans 118,786 29,928 Deferred Income Taxes 23,197 34,785 Provisions 56,249 64,246 Others 23,623 16,544 Others 9,808 16,738 47,746 52,853 184,843 110,912 MINORITY - 216 PERMANENT EQUITY Investiments 359 359 Capital 161,463 161,463 Plants, Property and Equipment 296,717 255,085 Capital Reserves 103,472 68,468 Deferred Items 680 2,116 Retained Earnings 55,361 56,395 297,756 257,560 320,296 286,326 TOTAL ASSETS 767,744 715,148 TOTAL LIABILITIES 767,744 715,148 31
    • Third Quarter 2007 November, 2007 SHARES PERFORMANCE Average Daily Trade Volume - R$ mil Variance - LTM* 99.81% 100.00% 93.59% 182 171 175 90.00% 80.00% 67.83% 70.00% 119 60.00% 65.89% 49.23% 99 50.00% 41.90% 91 89 86 40.00% 47.67% 86 69 70 84 30.00% 25.98% 22.98% 20.00% 22.01% 25.67% 4,227 4,547 4,344 2,857 8,354 2,747 3,466 2,948 7,048 7,738 3,723 4,114 10.00% 14.57% 0.00% -10.00% Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 MYPK4 IBOV IBX-100 Volume Trade Shares Price - LTM* 35.00 33.01 32.99 * Closing price of the last business day of each month 30.00 26.49 24.00 30.85 23.99 22.70 29.89 30.10 29.00 24.80 17.69 17.00 22.30 16.19 20.80 21.91 14.75 16.11 15.13 13.18 13.18 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 MYPK4 MYPK3 32
    • Third Quarter 2007 November, 2007 SHAREHOLDERS COMPOSITION: Sep 07 Iochpe Family BNDES Participações Participações Other Voting 74.6% Voting 21.8% Voting 3.6% Non-Voting 0.4% Non-Voting 27.6% Non-Voting 72,0% Total 26.1% Total 25.6% Total 48.3% Issued Shares (*) Voting 18,428,597 34.62% Non-Voting 34,803,707 65.38% Total 53,232,304 100.00% 33
    • THIRD QUARTER 2007 November, 2007