Apresentação Usiminas 2T11 - APIMEC Usiminas Presentation 4Q11 Information Classification: Public
Agenda
2
Clique para
editar o texto
mestre
Usiminas and its
Business Units
Financial
Highlights
Market
Overview
World Production - 2011Total 1,490 million tons
3Source: World Steel * 2011 data not available yet
695.5
107.686.2 72.2 68.7 68.5
44.3 35.3 35.2 34.1
China Japan USA India Russia South
Korea
Germany Ukraine Brazil Turkey
Production per Company – 2010*
78
61 68
76 83
61 57 72
35 28 29
15
21 14
12 9
17 21
18
26 41 39
7 18 18 13 9
22 22 10
39 31 32
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Steel Iron Ore Coal
Value Transfer on the Steel Chain
Profit distribution on the steel production chain – %
4Source: Mckinsey
Brazilian MarketFlat Steel
5Source: IABR / INDA
Inventories in the Distribution Network Flat Steel Imports – thousand tons
Production – million tons Apparent Consumption – million tons
3.5 3.7 3.84.1 4.0
3.7 3.8 3.73.3 3.2
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
2.72.9
3.43.9
3.33.1 3.1 3.3 3.2 3.0
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
315 283
667
790 823 865
416 415
570500
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
775 771 7841,039
1,244 1,238 1,152 1,233 1,110 1,009
2.4 2.6 2.4
3.2
3.9 4.1
3.23.6
3.0 2.9
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Thousand tons Monthly basis
Turn over on February - 2.8 months Flat Steel Imports on January – 199,000 tons
Domestic Market
Brazilian investments during the period of 2011/2014: R$1.6 trillion (63% growth –
2006/2009)
Industry: R$614 billion
Infrastructure: R$380 billion
Housing and sport events: R$607 billion
Benefit from the Brazilian positive outlook
8
MEDIUM AND LONG TERM PROJECTS
2009-2015
~ US$ 224 Bi
2011-2016
~ R$ 12 Bi
2010-2015
~ R$ 103 Bi
Source: BNDES
2011-2014
~ R$ 955 Bi
2011-2014
~ R$ 153 Bi
4.5 milliontons ofsteel
2.7 long
1.8 flat
1.5 milliontons ofsteel
0.9 long
0.6 flat
Time lineUsiminas delivers what it promises
Foundation
of Usiminas
Operation
Start Up
Privatization
Usiminas:1991
Cosipa: 1993
Listing on
Latibex
Aquisition of
J. Mendes
iron ore
mines
Aquisition of
Zamprogna
Soluções
Usiminas, con-
solidation of
the companies
Rio
Negro, Dufer, F
asal and
Zamprogna and
industrial units
Usial and
Usicort
Single CNPJ:
Cosipa is
incorporated
by Usiminas
Creation of MineraçãoUsiminas
Port AgreementMineração
Usiminas and MMX
New Coke Plant: the
first step to Coke self-sufficiency
Optimization Plan of the Plants and
Sincron (CLC)
Selling of
Ternium shares
ADR II approval
Joint Mining
and
Cooperation
Agreement
with MMX, MBL
and Ferrous
Negociation
with J. Mendes
concluded
Acquisition of
Litigation Area
Entrance ofTechint Group in Usiminas’ ControlGroup
1956
1991
2005
2008
2009
2010
2011
2012Self-sufficiency
Iron Ore and
Energy
2015
10
Everyday Steel Application
12
Auto Industries
Cold Rolled and
Galvanized (EG and HDG)
Ship-Building
Heavy Plates
Pipelines
Heavy Plates and Hot
Rolled
Pressure Vessels
Heavy Plates
Agricultural
Machines
Heavy Plates and Hot
Rolled
Civil Construction
Heavy Plates, Cold and Hot
Rolled and Galvanized (EG
and HDG)
Autoparts
Hot Rolled
Household
Appliances
Cold Rolled and
Galvanized (EG and
HDG)
Shareholder Composition
13
Voting Capital – ON*
Control Group:
63.86% of Voting
Capital
Total Capital 1,013,786,190
Nippon Group29.45%
Ternium / Tenaris Group
27.66%
Usiminas Pension Fund
6.75%
Free Float25.70%
Previ10.44%
49.84% 50.16%
PN 508,525,506ON 505,260,684
ON PN
*Highlighted only shareholders represented on the Board of Directors.
Complete solution of services and value added
products through its Business Units
14
Mining
Steel
Steel Processing Capital Goods
UPST
REA
MD
OW
NST
REA
M
* Controled by Usiminas ** Results accounted through equity income
Ipatinga
Automotiva Usiminas *
Metform and Codeme
stake **
Cubatão
Unigal Usiminas *Mineração Usiminas *
Soluções Usiminas * Usiminas Mecânica *
Results Accounted by Business Unit
15
Income Statement per Business Units - Non Audited (R$ million)
Note: All transactions among the business units are made at market price. MRS results are accounted
through equity on Equity Income.
R$ million
4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11
Net Revenue 241 253 2,426 2,511 519 529 368 369 (739) (664) 2,815 2,998
Domestic Market 214 218 2,141 2,206 508 521 368 368 (728) (663) 2,502 2,650
Export Market 27 35 285 305 11 8 0 1 (11) (1) 313 348
COGS (78) (70) (2,439) (2,479) (494) (490) (311) (320) 735 709 (2,587) (2,650)
Gross Profit 163 184 (14) 31 25 38 58 49 (4) 45 227 348
Operating Income (Expenses) (50) (36) (81) (32) (62) (25) (24) (24) 1 1 (216) (116)
EBIT 113 148 (95) (1) (38) 13 34 25 (3) 46 11 232
EBITDA 129 156 74 83 (22) 28 41 32 (4) 45 218 343
EBITDA Margin 54% 61% 3% 3% -4% 5% 11% 9% - - 8% 11%
Capex 170 116 443 533 17 18 16 21 0 0 646 688
Mining SteelSteel
Processing
Capital
GoodsAdjustment Consolidated
Results Accounted by Business Unit
16
Income Statement per Business Units - Non Audited (R$ million)
Note: All transactions among the business units are made at market price. MRS results are accounted
through equity on Equity Income.
R$ million
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
Net Revenue 974 960 10,421 11,496 2,149 2,433 1,419 1,447 (3,061) (3,374) 11,902 12,962
Domestic Market 822 883 9,047 9,686 2,107 2,379 1,418 1,447 (3,049) (3,374) 10,345 11,022
Export Market 152 77 1,374 1,810 42 54 1 0 (12) 0 1,557 1,941
COGS (270) (288) (10,231) (10,048) (1,977) (2,190) (1,235) (1,260) 3,105 3,354 (10,608) (10,432)
Gross Profit 704 672 190 1,448 172 243 184 187 44 (20) 1,294 2,531
Operating Income (Expenses) (138) (89) (244) (230) (192) (203) (99) (107) 6 0 (668) (628)
EBIT 566 583 (54) 1,219 (21) 40 85 81 50 (20) 626 1,902
EBITDA 604 638 463 1,819 41 102 112 111 44 (20) 1,264 2,650
EBITDA Margin 62% 67% 4% 16% 2% 4% 8% 8% - - 11% 20%
Capex 365 41 1,984 3,070 72 52 69 28 0 0 2,490 3,191
Mining SteelSteel
Processing
Capital
GoodsAdjustment Consolidated
Installed Nominal Capacity : 9.5 million tons / year
Flat Steel ProductionUsiminas has a full range of flat steel products
Slabs Hot Coils Cold CoilsHeavy PlatesSlab Caster EG HDG
1,950,000t
Optmized
Rolling
Capacity
2,000,000t 1,900,000t 1,020,000t350,000t
Cubatão Plant -1,200,000t -2,100,000t 1,000,000t 4,500,000t
3,700,000t Nominal
Capacity5,650,000t 2,000,000t 9,500,000t 1,050,000t360,000t
-
Ipatinga Plant 1,050,000t360,000t 2,500,000t 3,550,000t1,000,000t5,000,000t
18
Galvanized
Domestic MarketUsiminas is focused on the domestic market with a product range to
supply different sectors
19
Sales – thousand tons
Segments Breakdown of
Sales – 4Q11
68%77%
85% 83% 85%
32%23%
15% 17% 15%
4Q10 1Q11 2Q11 3Q11 4Q11
Domestic Market Export Market
1,4061,579 1,588 1,583 1,340
Investments
Total amount for 2011R$ 2.5 billion
Strategic focus on enhancing competitiveness of current operations
Ongoing Projects
Coke Plant 3
750,000 tons
(Usiminas
Ipatinga)
CLC
500,000 tons
(Usiminas
Ipatinga)
Galvanizing
Line
550,000 tons
(Unigal)
Hot Strip Mill
2.3 million tons
(Usiminas
Cubatão)
Mining
Production
Reach total
capacity of
29 million
tons
Up to 2015
In operation
3Q10 4Q10 2Q11
Foundry
24,000 tons
(Usiminas
Mecânica)
4Q11 1Q12 Energy self
sufficiency
Reach total
capacity of
500 MW
20
Hot Run
Mining and Logistics
Belo Horizonte Sabará
Itabira
Ipatinga
MarianaJeceaba
Três Rios
Barra do Piraí
B. Mansa
São
Paulo
Santos
Itaúna
Itaguaí
Vitória
Cubatão
TUBARÃO
Port
ITAGUAÍ Port
CUBATÃO
Port
21
Logistics
22
Tubarão PortItaguaí Port
(Ingá)
MODAL
Mineração
Usiminas
EFVM
Existing Routes
CUBATÃO Plant / Port
New Routes
TCS / TSA
Trammel
Sepetiba Port
ExportsExports Exports
40 Km
60 Km
IPATINGA Mill
Mining and LogisticsCurrent status
4 mining sites, acquired from J. Mendes
Group in Feb/2008
Reserves of 2.6 billion tons
Located in Serra Azul-MG, one of the richest
iron ore sites in Brazil
23
4Q11: production of 1.7 million tons
MRS: 20% of voting shares and part of the
Control Group
Land in Itaguaí-RJ, acquired in 2008
Production – MM ton:
23
5.56.8 6.3
2009 2010 2011
24
Mining and LogisticsStrategic partnership
US$ 6.4 billionMineração Usiminas S.A Estimated Market Value
Acquisition by Sumitomo Corporation of
30% of Mineração Usiminas S.A., through
the subscription of new shares, up to the
total amount of US$ 1.9 billion.
24
Expansion PlanMining
25
Capex until 2015 is estimated at R$4.5 billion including new processing
lines/plants, industrial facilities projects, equipment, loading terminals, etc.
Lifetime until 2045
Iron Ore Production Capacity – million tons by the end of the year
AgreementsMining
26
Agreements signed to allow the expansion plan:
MMX Port and Joint Mining Agreements
MBL Joint Mining Agreement
New mine acquired from Mineração Ouro Negro (former litigation
area)
Conclusion of the negotiation with J. Mendes
Right of way agreement with Ferrous
Mineração Usiminas
27
MBL
Arcelor Mittal
Ferrous(Santanense)
Comisa Emicon
MMX
Ferrous
MUSAPau de Vinho
MUSAEast
Minerita
MUSACentral
MUSAWest
Itatiaiuçu
Igarapé São JoaquimDe Bicas
Serra Azul
29
Camaçari
Cachoeirinha
Porto Alegre
Campo Limpo Paulista
São PauloGuarulhos
Taubaté
Recife
Serra
Betim
Santa Luzia
Steel Processing
Soluções Usiminas
30
Soluções Usiminas
11 industrial units in MG, SP, RS, ES and PE.
Processing capacity of 2 million tons/year.
4Q11 Gross Revenues of R$557 million
Leadership:
– Is the leader in the steel distribution sector
since 2010, according to INDA.
Steel Processing
32
Automotiva Usiminas
Pouso Alegre – MG
– Close to major auto makers. Full service
company.
4Q11 Gross Revenues of R$118 million
Major Clients:
– Ford, Mercedes Benz, Fiat, Volkswagen,
Volvo, General Motors, International Trucks,
Honda Toyota, PSA Peugeot Citroën, Scania.
Steel Processing
Usiminas Mecânica
Ipatinga – MG
– It is one of the largest capital goods’ company in the
country.
4Q11 Gross Revenues of R$427 million
Market Sectors:
– Industrial Assembly
– Structures / Metal Bridges and Blanks
– Industrial Equipment
– Industrial Erection
– Foundry and Railcars
Highlights:
– Supply of steel structures for the Maracanã Stadium’s
grandstand and pipe racks of the petrochemical complex
of Rio de Janeiro – COMPERJ.
– Usiminas Mecânica made industrial maintenance services
at the Ipatinga and Cubatão plants.
– Signing of an agreement for the building of a railway car
factory at Congonhas.
Capital Goods
34
35
Usiminas Mecânica
Capital Goods – some of its projects
Ship Block
3rd Bridge in Brasília
Ship Blocks Plant Design
4Q11 Consolidated ResultsHighlights*
37
EBITDA – R$ Million Net Income – R$ Million
Sales – thousand tons (steel products) Net Revenues – R$ Million
1,406 1,340
6,5655,916
3Q11 4Q11 2010 2011
2,998 2,815
12,96211,902
3Q11 4Q11 2010 2011
343 218
2,650
1,264
3Q11 4Q11 2010 2011
154 77
1,584
404
3Q11 4Q11 2010 2011
2011 Results – Consolidated Basis
EBITDA / EBITDA Margin
38*IFRS
9541,344
1,547
2,429
3,072
5,624 5,525
4,368
5,003
6,008
1,485
2,650
1,264
40%
34%32%
37%35%
46%
42%
35% 36%38%
14%
20%
11%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EBTIDA (R$) EBITDA Margin (%)(R$ million)
Results 4Q11 – Steel Business Unit
39*Iron Ore at Market price **IFRS
EBITDA / ton – US$*
91126
98 101 119
227
291236
299
420
111158
47
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009** 2010** 2011**
EBITDA / ton - R$*
166 231 230
294 367
664 709
513 581
771
221 277
78
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009** 2010** 2011**
Debt Profile
40
Debt - R$ million
2,794
679 802 923 902733
331 29834 168
2,397
522
817 584451 672
248
950
21
Cash 2012 2013 2014 2015 2016 2017 2018 2019 2020 on
Foreign Currency Local Currency
1,201
5,191
1,6191,507 1,353
1,405
579
1,248
169
36
Total Debt: R$8,943 million
Duration: R$: 48 months
US$: 55 months
Strong cash position and comfortble debt profile (R$ Million)
0.8
0.1
-0.1 -0.1
-1.0
0.7 0.6
1.6
3.2
4.3
3.8
3.12.9
3.3
4.1
4.9
3.6
2.3
2.8
3.4
3.9
0.2 0.0 0.0 0.0 -0.20.1 0.1 0.3 0.5
0.8 1.01.3
1.9 1.7 1.5 1.6 1.41.0
1.6
2.53.1
4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q08 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Net Debt (R$ bi) Net Debt/EBITDA (x)
Leverage – Consolidated Basis
41
Net Debt / EBITDA
Balance Sheet Structure4Q11
42
Capital Employed Funded By
Total: 22,941 Million
Net Working Capital
Net Fixed Assets
Shareholders Equity
Net Debt
Cristina Morgan C. DrumondHead of IR
[email protected]: 55-31-3499.8772
Fax: 55-31-3499.9357
www.usiminas.com/ri
ADR
Level I
Luciana Valadares dos [email protected]
Phone: 55-31-3499.8619
Leonardo Karam [email protected]
Phone: 55-31-3499.8056
Diogo Dias Gonç[email protected]
Phone: 55-31-3499.8710
Mariana Paes [email protected]
Phone: 55-31-3499.8617
Declarations relative to business perspectives of the Company, operating and
financial results and projections, and references to the growth of the
Company, constitute mere forecasts and were based on Management’s
expectations in relation to future performance. These expectations are highly
dependent on market behavior, on Brazil’s economic situation, on the
industry and on international markets, and are therefore subject to change.