Iochpe-Maxion - Santander Annual Conference Presentation

Brazil Annual Conference
Santander
June, 2005

Santander | June 2005

2

IOCHPE – MAXION: BASICS

• Two major operations:
- Wheels and chassis for trucks, buses, pickups and agricultural machinery
- Equipments for the railway industry

• Third operation:
- Autoparts for passenger cars

• Plants located in the São Paulo and Minas Gerais States in Brazil


3

SHAREHOLDER COMPOSITION: MAR-05

Shareholder Agreement

Iochpe Family BNDES Participações Other
Common 75.6% Common 21.8% Common 2.6%
Preferred 0.5% Preferred 62.2% Preferred 37.3%
Total 26.5% Total 48.2% Total 25.3%

Iochpe-Maxion

Iochpe-Maxion S.A.
Issued Shares after reverse split (*)

Common 18,428,597 34.62%
Preferred 34,803,707 65.38%

Total 53,232,304 100.00%


4

CORPORATE STRUCTURE: MAR-05

Iochpe-Maxion S.A.
(14 Employees)
Consolidado =5,929 Employees
99.99%
Maxion Componentes
Estruturais Ltda.

93.7% 50%
Maxion Sistemas Amsted Maxion Fund. e
6.2%
Automotivos S.A. Equip. Ferroviários S.A.
(4,082 Employees)

50%
Wheels and Automotive
Chassis Division Comp. Division Amsted
(3,004 Employees) (870 Employees) Industries


5

CONSOLIDATED NET SALES BREAKDOWN (%)

1Q05 - R$ 352.6 MM 1Q04 – R$ 212.9 MM
Automotive
Comp. Division Automotive
Comp. Division
7% 16%

60% 58%
33%
26%
Amsted
Maxion (*) Amsted
Wheels and Maxion (*) Wheels and
Chassis Division Chassis Division

(*) Consolidated figures consider 50% of the net sales of Amsted Maxion Santander | June 2005

6

WHEELS AND CHASSIS DIVISION (*)

(*) Division of
60%


7

WHEELS AND CHASSIS DIVISION : BASICS

• Conformation of flat steel
• Focused on the commercial vehicles segment (trucks, buses, pickups and
agricultural machinery)
• Continuous capex resulting in an unique manufacturing facility in the South
American market
• Local leadership
• Export base (16% of sales)


8

WHEELS AND CHASSIS DIVISION

Chassis - 54% of the Division’s Net Sales

Heavy Medium Light
Stamped Parts Structural
Siderails Parts

Chassis


9


Wheels for Vehicles - 46% of the Division’s Net Sales


10

AUTOMOTIVE INDUSTRY – BRAZILIAN OUTPUT (THOUS. UNITS)

1Q05 1Q04 Var%

Pickups 78.4 68.2 14.9%

Trucks 27.3 23.0 18.8%

Buses 8.2 6.0 37.1%

Agricultural
Machinery 13.8 15.6 (11.6%)


11

AUTOMOTIVE INDUSTRY – EXPORT (THOUS. UNITS)

1Q05 1Q04 Var%

Pickups 30.1 21.4 40.6%

Trucks 6.5 5.1 27.9%

Buses 3.9 2.0 92.6%

Agricultural
Machinery 8.4 7.0 20.8%


12

WHEELS AND CHASSIS DIVISION (R$ MM)

1.000
Net Sales
.
% p.a 713
750 3
= 39. 626
G R
CA %
500
397 6 9,5
=
∆%
208 241 211
250 174 124

0
2000 2001 2002 2003 2004 1Q05 LTM 1Q04 1Q05
CAGR = Compounded Annual Growth Rate / LTM = Last Twelve Months


13


Chassis – 1Q05

Market Share (%) Customer Base (%)
Volks-
wagen General
Maxion 21%
69% Motors
11%

9% Ford

30% 7%
26% Export
5% Dana 6%
3% Scania
Daimler 13%
Chrysler Dana
OEM Other

14


Wheels – 1Q05

Volks-
Export wagen
Maxion 65% 23% 12%

Trailer
7%
12% OEMs
Other

7% Scania
24%
28% 6%
Borlem Tractors 4% Volvo
12%
Daimler
Other Chrysler

15

AUTOMOTIVE COMPONENTS DIVISION (*)

(*) Division of

7%


16

AUTOMOTIVE COMPONENTS DIVISION: BASICS

• Light stamping
• Assembly of parts
• Focused on passenger cars
• Local leadership in main products
• Strong trend for globalization


17

AUTOMOTIVE COMPONENTS DIVISION: MAIN PRODUCTS

HANDBRAKE PEDAL
JACKS
LEVERS SETS


18

AUTOMOTIVE INDUSTRY (THOUS. UNITS)

1Q05 1Q04 Var%

Cars

Output 451.4 405.4 11.4%

Export 131.2 96.3 36.2%


19

AUTOMOTIVE COMPONENTS DIVISION (R$ MM)

200 Net Sales
.a.
R=8.4 % p
CA G
150
140
150
114
99 94 98
100
∆% = (2
9.2%)
50 34
24

0
2000 2001 2002 2003 2004 1Q05LTM 1Q04 1Q05



20

AUTOMOTIVE COMPONENTS DIVISION – 1Q05


H and B reak Lever 43% Fiat Volks-
23% wagen
P edal S et 25% 20%

Jack 21%
13%
Latch 9% 25% Brose
8%
K nob / K ey / C ylinder 8% General 11%
Motors Ford
Other

21

AMSTED MAXION

33%


22

AMSTED MAXION : BASICS

• Integrated freight car operation: castings and car assembly
• Capex + technology resulting in an unique manufacturing facility and design
capabilities
• Steel castings
- Transformation of steel scrap
- Focused on the railway equipment and industrial businesses
- Local leadership
- Export base
• Freight car assembly
- Assembly of components and castings 30%
- Local leadership


23

AMSTED MAXION : MAIN PRODUCTS

RAILWAY RAILWAY
BOOGIES
WHEELS FREIGHT CARS

30%


24

BRAZILIAN RAILWAY EQUIPMENT MARKET

Sales 1Q05 1Q04 Var%

Freight cars – units 1,375 1,053 31%

Railway wheels – units 9,009 6,535 38%

Railway castings – tons 1,046 768 36%

30%

Figures do not include wheels and castings used in the assembly of new freight cars


25

AMSTED MAXION – 1Q05


F reig h t C ars 80%
Export
CVRD 25%
R ailw ay W h eels 33%
R ailw ay C astin g s 80% 45%

In d u strial C astin g s 50%
19%
30% ALL
11%

Other

26

AMSTED MAXION (R$ MM)

1.000
Net Sales (*)
.a.
772
800 p
%
4.5
646
5
600
G R= %
CA 5.5
= 11
400 328
∆% 236

200 122 110 120 109

0
2000 2001 2002 2003 2004 1Q05LTM 1Q04 1Q05
(*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales


27

AMSTED MAXION

Spot Orders 2005/2006 – Freight Cars – R$ 1.15 Billion (*)

CVRD / FCA – 5,758
Brasil Ferrovias – 500
Deliveries (cars)
MRC (Mitsui / Bunge / ALL) – 350
CVG Ferrominera Orinoco – 225 Delivered jan-mar 2005 1,212
Comilog – 76 To deliver apr-sept 2005 4,781
Total 2005 5,993
CBG Compagnie des
Bauxites de Guinee – 24 Total 2006 30% 1.376
MRS – 436
Total – 7,369 cars
(*) Amsted Maxion’s sales. Consolidated figures consider 50% of Amsted Maxion’s sales

28

AMSTED MAXION

Recurring Orders : R$ 271.7 MM per year (*)

ASF-Amsted (USA) – railway castings – R$ 162.4 MM

Caterpillar (Brazil / USA) – tractor parts – R$ 83.5 MM

Holland Group (USA) – fifth-wheel components – R$ 12.8 MM

Metso (France) – industrial castings – R$ 4.1 MM

Truck OEMs (Brazil) – fifth-wheel – R$ 4.0 MM

Komatsu / CNH (USA / Italy) – industrial castings – R$ 4.9 MM

(*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales

Consolidated Figures
1st Quarter 2005


30

CONSOLIDATED FIGURES

Net Sales Breakdown – 1Q05
By Customer (%) By Segment (%)
Volks- Daimler
wagen Chrysler OEMs producing in Brazil 58%
12% 11% Tractors
- Buses, trucks and pickups 51%
7%
CVRD - Passenger cars
15% 6% ALL
7%
5% General
Motors Brazilian railway operators 25%
4%
3% Scania
17% Ford
Export Exports 17%
20%
Other

31

CONSOLIDATED FIGURES

Exports – US$ 22.7MM / R$ 62.4 MM – 1Q05
Product Segment (%) Destination (%)
Chassis Canada
15% 20% Mexico
4%

18%
South
37% 36% America
USA
48%
Railway 1%
Wheels Asia/
Equipment 10%
for Vehicles 11% Oceania
Europe
Import 1Q05 - US$ 5.3MM / R$ 14.0MM (*)
Africa /
Middle East
(*) includes US$ 1.6MM / R$ 4.2MM of machinery and equipment

32

NET SALES - CONSOLIDATED (R$ MM)

1.600

1.238
Acquisition
1.099
1.200 Batz
Borlem

800 676
624

374 411
400

0
2000 2001 2002 2003 2004 1Q05LTM
Divestiture Divestiture Divestiture Divestiture
50% Amsted-Maxion 50% Maxion Maxion Nacam Window
Motores
Raiser

33

FIRST QUARTERS COMPARISON - CONSOLIDATED

Operational Margins - % Net Sales
24%
21% 20%
18%
17% 18%
15%
14%
13% 13%
12%
12%
9%
7%
9%
3%
5% 5%

-5% -5% Gross Profit Ebitda Ebit Operation's Res.

1Q01 1Q02 1Q03 1Q04 1Q05


34

INCOME STATEMENT - CONSOLIDATED (R$ MM)
January to March
% Net % Net Var 05/04
2,005 Sales 2,004 Sales %
Net sales 352,579 100.0% 212,872 100.0% 66%

Gross profit 71,497 20.3% 38,677 20.3% 85%

Operating Expenses (30,247) -8.6% (20,427) -8.6% 48%

Earnings before interest and taxes - EBIT 41,250 11.7% 18,250 11.7% 126%

Net financial expenses (8,700) -2.5% (8,597) -2.5% 1%

Earnings after financial result 32,550 9.2% 9,653 9.2% 237%

Non-operating result (5,284) -1.5% (1,634) -1.5% 223%

Earnings before incom e taxes 27,266 7.7% 8,019 7.7% 240%

Incom e taxes expense (12,151) -3.4% (5,925) -3.4% 105%

Net incom e of the period 15,115 4.3% 2,094 4.3% 622%

Earnings before interest, taxes,
depreciation and am ortization - EBITDA 47,660 13.5% 25,832 13.5% 84%


35

NET DEBT - CONSOLIDATED

R$ MM x EBITDA
1 8 0 .0 5 .0

1 5 6 .8
1 6 0 .0

4 .0
1 4 0 .0

1 2 0 .0 1 1 5 .0
1 0 5 .7 1 0 1 .9 3 .0
1 0 0 .0

8 0 .0
6 5 .1 2 .0
6 0 .0
1 .5
1 .3
4 0 .0 1 .1 1 .0
0 .9
2 0 .0 0 .6

0 .0 0 .0

2001 2002 2003 2004 1Q05


36

IOCHPE – MAXION: GOVERNANCE AND CAPITAL MARKETS

Public company since 1984 / ADR Level I since 1994
Board with 2 independent members and no executive officer member
Audit Board (“Conselho Fiscal”) with 1 representative of the non-
controlling shareholders
Dividend payout – 37% of net income and an additional 10% for non-
voting shares
2004 Result / Paid in April 2005 : R$ 16.1 MM / Yield – 2.3% (12.31.2004)
Reverse Split
Approved at a Shareholder Meeting of March 21, 2005
Proportion - 50:1
Price quote by unit and standard quantity of one hundred shares since April 25, 2005


37

IOCHPE – MAXION: FUNDAMENTALS

Strong organic revenue growth
Steady operating margins
Growing cash generation
Solid capital structure – net debt / EBITDA ratio
Focus on businesses related to the transportation industry
Local market leadership
Capex aiming at a strong competitive position – barriers to entry
Growing exports
Capacity expansion in line with demand growth


38

STOCK PERFORMANCE

R$ MM
R$ / SHARE
30 20.0
VOLUME / MONTHLY AVERAGE PRICE
IOCHPE-MAXION PN (MYPK4)

16.3
25 23.9
14.2 16.0
22.3 14.1 15.0

12.4
20 VOLUME

PRICE 9.6
15.2
15 8.7 8.5 10.0

6.8
5.5 10.0
10
4.9 4.7
4.0 4.0 4.0 4.1 6.7 5.0
3.9 6.3
6.2 5.8
5 4.2 4.2
3.2 4.1 3.8 2.8 3.2
2.7
0.9

- -
Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-04 Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
03 04 04 04 04 04 04 04 04 04 04 04 05 05 05 05

(*) after reverse split Santander | June 2005

A d d i t i o n al I n f o r m a t i o n
1st Quarter 2005


Benchmark
1st Quarter 2005


41

BENCHMARK – GROSS PROFIT (% NET SALES)

Frasle
Gentex
Randon
Stoneridge
Eaton
Strattec
Borg Warner
Iochpe-Maxion
Nippon Denso
Titan
Cummins
Federal Mogul
Marcopolo
Autoliv
Tenneco
Johson Controls
Magna
TRW
Dura
American Axle
Valeo
Dana
Superior 1Q05 1Q04
ArvinMeritor
Lear
Visteon

0% 10% 20% 30% 40%
Average = 15.5%

Source: Companies releases
2005 First Quarter Results of each company, except for Nippon Denso with 12 months result, Strattec with 9 Santander | June 2005
months result and ArvinMeritor and Johnson Controls with 6 months results.

42

BENCHMARK – EBIT ( % NET SALES )

Gentex
Randon
Frasle
Strattec
Iochpe-Maxion
Titan
Eaton
Autoliv
Nippon Denso
Borg Warner
Stoneridge
Cummins
Marcopolo
TRW
Superior
Magna
Tenneco
Dura
American Axle
Johson Controls
Dana
Federal Mogul
Valeo
Lear 1Q05 1Q04
ArvinMeritor
Visteon

-10% 0% 10% 20% 30% 40%
Average = 6.5%


43

BENCHMARK – EBITDA ( % NET SALES )

Gentex
Randon
Strattec
Frasle
Titan
Borg Warner
Iochpe-Maxion
Autoliv
Nippon Denso
TRW
Cummins
Tenneco
American Axle
Marcopolo
Magna
Federal Mogul
Dana
Dura
Johson Controls
Lear
ArvinMeritor 1Q05 1Q04
Visteon

0% 10% 20% 30% 40% 50%
Average - 10%

New Contracts
1st Quarter 2005


45


Chassis – New Contratcs: R$ 35.2 MM per year

Product / Customer Country Starting Date Saler per year
R$ MM
Siderails and Stamped Parts - AM General E.U.A. Jan.06 19.8
Stamped Parts - ArvinMeritor Brasil May.05 9.6
Stamped Parts - DaimlerChrysler Brasil Aug.04 3.1
Stamped Parts - DaimlerChrysler Brasil Jun.04 1.3
Chassis - Scania Brasil Feb.05 0.7
Stamped Parts - Peugeot Citroen Brasil Oct.04 0.4
Siderails Reinforcements - DaimlerChrysler Brasil May.04 0.3


46


Wheels – New Contracts: R$ 16.7 MM per year

Customer Country Starting Date Saler per year
R$ MM
Workhorse U.S.A. Jun.05 6.5
John Deere Brazil Nov.04 3.2
Barakat Egypt May.05 1.7
Dunlop South Africa Jun.04 1.5
Petromaster Russia Jan.05 1.2
Maxprest / Bridgestone South Africa Apr.05 0.7
Jarl El Jaouda Algeria Nov.04 0.8
Kristanas Spiros Greece Jul.04 0.6
International Trade Morocco Jan.05 0.5


47

AUTOMOTIVE COMPONENTS DIVISION

New Contracts: R$ 3.1 MM per year

Model - Customer Product Starting Sales per year
Date R$ MM
New truck - VW Knobs Nov.05 1.6
Fox Euro - VW Jacks / Door Locks Jun.05 1.1
Idea - Fiat Latches Aug.05 0.4


Debt Profile
1st Quarter 2005


49

NET DEBT BREAKDOWN – MAR05 - (R$ MM)

Lines SHORT TERM TOTAL

Trade Finance / Export 25.5 27.9 53.4
Equipment Financing 26.8 14.2 41.0
Buyers - Local 82.4 82.4
Other Local 10.3 10.3
145.0 42.1 187.1

(-) Cash and Marketable Securities 30.3 30.3

Net Debt 114.7 42.1 156.8

50

DEBT INDEXATION – MAR05 (%)

CDI
(interbank) 50% 28% Dollar

3% 19%
TJLP
IGPM (BNDES
(inflation rate)
rate)

51

FOREIGN CURRENCY EXPOSURE – MAR05 (US$ MM)

Balance Sheet

Assets denominated in foreign currency
. Marketable Securities / Investments 2.4
. Accounts Receivable 10.9
13.3

Liabilities denominated in foreign currency
. Bank Debt (Export lines / other) (20.1)
. Accounts Payable (4.1)
(24.2)

Net Position (10.9)

Balance Sheet
1st Quarter 2005


53

BALANCE SHEET – MAR05 (R$ THOOUS.)

Assets Mar/05 Mar/04 LIABILITY Mar/05 Mar/04

Cash and marketable securities 30,287 26,572 Loans and bonds 144,965 89,110
Accounts receivable 180,713 94,539 Accounts payable 73,969 56,329
Inventories 160,479 103,006 Customers' advances 69,558 8,303

Long Term Long Term
Marketable securities 3,029 Loans and bonds 42,148 83,276
Accounts receivable 4,533 4,833 Miscelaneous provisions 36,918 31,804
Deferred income taxes 40,090 42,959 Other 4,246 16,563
Other 29,872 17,879 83,312 131,643
74,495 68,700

Minority Interest 176 141

Permanent Net Worth
Investments 265 7,740 Paid-in capital 161,463 161,463
Plant, property and equipment 178,763 142,466 Profit reserve 24,770
Deferred 3,736 14,201 Accumulated results 15,115 (7,834)
182,764 164,407 201,348 153,629

TOTAL ASSET 674,219 489,537 TOTAL LIABILITY 674,219 489,537


Conferência Anual Brasil
Santander
Junho de 2005


Iochpe-Maxion - Santander Annual Conference Presentation

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a Iochpe-Maxion - Santander Annual Conference Presentation

Semelhante a Iochpe-Maxion - Santander Annual Conference Presentation (20)

Mais de Iochpe-Maxion

Mais de Iochpe-Maxion (11)

Último

Último (20)

Iochpe-Maxion - Santander Annual Conference Presentation