Download as PDF, PPTX
More Related Content
Ppt 1 t16 en 5 (1)
- 1. Earnings Call –1Q16 Results May 16th, 2016
- 2. The consolidated financialstatements presented here are consistent with the criteria of international accounting standards - IFRS issued by the International Accounting Standards Board – IASB, based on audited financial information. Non-financial information contained herein, as well as other operational information, were not audited by independent auditors and may include forward-looking statements and reflects the current views and perspectives of the management on the evolution of macro-economic environment, conditions of the mining and refractories industries, company performance and financial results. Any statements, projections, expectations, estimates and plans contained in this document that do not describe historical facts, and the factors or trends affecting financial condition, liquidity or results of operations, are forward-looking statements and involve several risks and uncertainties. This presentation should not be construed as legal, tax, investment or other advice. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither any part of this presentation nor any information or statement contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Under no circumstances, neither the Company nor its subsidiaries, directors, officers, agents or employees be liable to third parties (including investors) for any investment decision based on information and statements in this presentation, or for any damages resulting therefrom, corresponding or specific. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice. Magnesita has no obligation to update it or revise it in light of new information and / or in face of future events, safeguard the current regulations which we are submitted to. This presentation and its contents are proprietary information of the Company and may not be reproduced or circulated, partially or completely, without the prior written consent of the Company. Magnesita’s commercial transactions are in compliance with international trading sanctions rules Disclaimer 2
- 3. Magnesita diversified substantiallysince 2013 Several geographies and segments developed over the past 3 years Products being sold in more than 100 countries Sales outside Established markets already account for ~25% of total sales (~10% in 2012) Sales in BRL account for ~less than 20% of total sales Pursuing long term growth opportunities in markets with adequate and sustainable margins Countries where Magnesita has developed sustainable business with steel and cement industries 3
- 4. 4 Crude Steel Production¹(million tons) - Established Markets Volume (‘000 tons) Sales to Steel Segment Revenues (US$ million) 4Q15 1Q16 189199 1Q15 209 -9% -5% -15% 4Q15 166 1% 198 168 1Q15 1Q16 Refractory Solutions Sales - Steel Sales by region (in US$) -9% LTM 1Q15 LTM 1Q16 802 878 -19% LTM 1Q16 713 LTM 1Q15 885 32% 5% 23% 9% 31% 1Q16 29% 3% 39% 9% 21% 1Q15 Asia PacificNorth America MEA - CISSouth America Europe South America Source: ¹WSA USA & Canada Western Europe 9,5 -14% 1Q164Q15 10,7 1Q15 11,0 -11% 4Q15 21 1Q15 0% 1Q16 2323 +8% 34 36 1Q15 1Q164Q15 -7% 38 +6% LTM 1Q16 42 LTM 1Q15 -6% 45 99 LTM 1Q15 -8% LTM 1Q16 91 LTM 1Q15 148 141 -4% LTM 1Q16 MEA = Middle East and Africa CIS = Commonwealth of Independent States
- 5. 5 Sales to IndustrialSegment Refractory Solutions Sales – Industrial Segment Volume (‘000 tons) Revenues (US$ million) -6% 1Q16 30 45 43 4Q151Q15 +42% -16% 1Q16 41 4Q15 30 49 1Q15 +37% LTM 1Q16 130 LTM 1Q15 152 -15% 132 175 -25% LTM 1Q16LTM 1Q15 31% 6% 35% 17% 11% 46% 28% 9% 11% 5% South America North America Asia Pacific Europe MEA - CIS 1Q161Q15
- 6. Refractory Solutions Salesand Margin - Consolidated Volume (‘000 tons) Revenues (US$ million) Gross Profit and Margin (US$ million; %) 1Q16 +1% 229 -9% 4Q15 232 1Q15 254 84 7251 34.6% 26.2% 1Q15 34.1% -14% 4Q15 +41% 1Q16 +7% 247 1Q164Q151Q15 -15% 196 209 -9% LTM 1Q15 LTM 1Q16 932 1.030 -20% 845 LTM 1Q16LTM 1Q15 1.060 LTM 1Q15 264 334 31.5% -21% 31.2% LTM 1Q16 6 32% 32% 7%9% 21% 19% 4% 8% 29% 40% Asia Pacific MEA - CISEuropeSouth America North America 1Q161Q15 19,7% 80,3% 19,9% 80,1% 1Q161Q15 Steel Industrial Sales by region (in US$) Sales by segment (in US$)
- 7. 7 Revenues (US$ million)Gross Profit and Margin (US$ million; %) Revenues (US$ million) Minerals and Services Sales and Margin -33% 11 4Q15 16 1Q15 1Q16 -32% 16 -19% 4Q15 18 -16% 14 1Q15 1Q16 17 5,1 33,4% 37,3% 1Q16 4,1 1Q15 -21% -24% 4Q15 5,4 31,4% -50% -24% 1Q15 4,2 4Q15 2,1 14,7% 23,7% 1Q16 2,7 16,3% Minerals Services LTM 1Q16 -7% 61 LTM 1Q15 66 +10% LTM 1Q16 39.0% LTM 1Q15 33.0% 22 24 LTM 1Q15 60 -16% LTM 1Q16 71 15,2 LTM 1Q15 21,3% -41% LTM 1Q16 15,0% 9,0 Gross Profit and Margin (US$ million; %)
- 8. 8 Consolidated Sales andGross Profit Por Segmento 229 1Q15 281 1Q16 +2% -17% 234 4Q15 Gross Profit Consolidated Revenue (US$ million) 966 1.196 LTM 1Q15 -19% LTM 1Q16 +32% 4Q15 60 94 33.6% -16% 1Q16 79 26.0% 1Q15 33.3% 371 296 -20% 30.7% LTM 1Q15 31.0% LTM 1Q16 4,7% 6,1% 89,3% 6,2% 5,8% 87,9% 1Q161Q15 MineralsRefractories Services Gross Profit (US$ million)
- 9. 9 SG&A expenses Freight expenses(US$ million) G&A 373643 -3% -14% 1Q16 15.7%15.6% 4Q151Q15 15.2% Fixed SG&A % of sales 157 190 LTM 1Q16 15.9% LTM 1Q15 -18% 16.3% Fixed SG&A (US$ million) 131416 -4% 1Q15 -16% 1Q16 5.7% 6.0% 4Q15 5.6% % of sales Freight expenses 54 73 5.6% 6.1% LTM 1Q15 LTM 1Q16 -25%
- 10. 10 EBITDA +70% 1Q15 4Q15 10.0% 1Q16 49 16.7% 23 17.6% -21% 39 -19% 168 135 14.0%14.0% LTM 1Q15LTM 1Q16 ¹Excluding other income and expenses G&AAdjusted EBITDA¹ (US$ million)
- 11. 11 CAPEX and WorkingCapital Working Capital CAPEX (US$ million) 9 1Q15 4Q15 19 1Q16 -18% 11 -51% -19% 63 LTM1Q15 78 LTM1Q16 Working Capital (US$ million) 289 29,3% 2Q15 314 30,6% 1Q15 300 26,7% 1Q16 255 27,2% 4Q15 225 24,6% 3Q15 Working capitalWC/annualized quarterly sales
- 12. 12 Capital Structure (US$million) Leverage (US$ million) Net Debt per Currency Leverage Excl. Perpetual (US$ million) EUR BRL 30% 57% 14% USD *EBITDA excluding other revenues/expenses Total Excluding Perpetual Bond *EBITDA excluding other revenues/expenses Leverage ratio Leverage ratio ex-perpetual 4,1x 3,6x3,5x3,5x 3,2x 135 548 1Q164Q15 168 3Q15 527 1Q15 2Q15 152158 537551 145 532 EBITDANet Debt Net Debt / EBITDA¹ 1,9x 1,7x 2,2x 277 152 298 168 3Q15 1,9x 145 4Q15 158 1Q15 135 1Q16 1,9x 287 2Q15 301282 Net Debt / EBITDA¹EBITDANet Debt Amortization Schedule 115 10198 210 2019 2020 118 Perp. 250 58 201820172016mar-16 Amortization Perpetual BondCash position Amortization Schedule 118 20172016 210 Perp. 115 101 250 2019 58 98 2018 2020mar-16 AmortizationCash position Perpetual Bond
- 13. Octavio Pereira Lopes CEO EduardoGotilla CFO e IRO Daniel Domiciano Silva IR Manager Phone: +55 11 3152-3237/3241/3202 ri@magnesita.com www.magnesita.com/ri 13 Investor Relations