Post on 24-Jan-2015
description
EarningsEarnings CallCall 3Q133Q13
November 8November 8thth, 2013, 2013
New Strategic Vision
Vision:Be the best provider of refractoriessolutions and industrial minerals,
leveraging and developing our minerals base
Expand industrial Ensure leadership Maintain a global low Grow selectively and
On
eg
lob
al
org
an
iza
tio
n
Expand industrial minerals base
Ensure leadership in our core markets
Maintain a global low cost production base
Grow selectively andaggressively
Continue to develop high quality, low cost raw material sources to support our current
businesses as well as new businesses where
we can have a sustainable competitive
advantage
Strive to keep offering high quality and
innovative products, unrivaled services and
cost performance
Optimize production globally to improve
efficiency and support growth
Develop global supply chain management
Pursue long term growth opportunities in selected
markets where we can deliver superior value to
our customers and shareholders
▪Meritocracy▪Ethics
▪Profit▪Management and Method
▪Agility and Transparency▪Respect for Safety, Environment and Communities
▪Customer▪People
Our values
2
Talc Business Expansion
Phase I expansion:
- Increase capacity from 44kton to 60kton in 2015
- Up to R$ 20 million capex
Moving forward with our commitment to double
the Talc Business in 3 to 5 years
3
South America
Refractory Solutions Sales - Steel
Crude Steel Production¹ (million tons) - Main markets
North America EU-27
+4%
+3% 35,3 34,8
-1%
30,0 29,0 30,2
+1%
+4% 92,7
-4%
88,9
42,9
-7%
39,9
-1%
40,5
129,7 123,8
-5%
Volume (000’ tons)
Sales to Steel Segment
Revenues (R$ million)
-9%
-3%-3%
+2%
+10% +5%
3Q12 2Q13
12,111,7
3Q13
11,6
9M139M12
30,0
3Q12 2Q13
29,0
3Q13
30,2
9M139M12 2Q13
42,9
3Q133Q12
39,940,5
9M139M12
9M139M12
13%14%
4
Source: ¹WSA
-9%
3Q13
210,2
2Q13
230,6
3Q12
217,5
9M13
656,4
9M12
679,0+2%
3Q13
481,8
2Q13
473,1
3Q12
438,5
9M13
1.392,1
9M12
1.320,639%
25%
23%22%
23%
41%
North America Others
South America Europe
Sales to Industrial Segment
Refractory Solutions Sales – Industrial Segment
Volume (000’ tons) Revenues (R$ million)
-12%
+8%
3Q13
35,5
2Q13
40,2
3Q12
33,0
+6%
9M13
124,9
9M12
118,0-10%
+16%
3Q13
89,1
2Q13
98,9
3Q12
76,7
9M13
306,3
9M12
276,0
+11%
5
9M139M12
53%
17%
10%
20%11%
17%
11%
61%
North America Others
South America Europe
90,7%
Refractory Solutions Sales and Margin - Consolidated
Volumes (000’ tons)
-9%
-2%
245,7270,9250,5
-2%
781,3797,0
9M12
20%
22%
14%
44%
Revenues (R$ million)
3Q132Q133Q12 9M139M12
3Q13
-0%
+11%
570,9
2Q13
572,1
3Q12
515,2
+6%
1.596,6
9M139M12
1.698,4
9M13
42%
23%
21%
14%
22%
6
Gross profit and margin (R$ million; %)
3Q13
180,2
31,6%
2Q13
191,1
33,4%
3Q12
162,0
31,4%
9M12
562,2
509,2
9M13
31,9% 33,1%
North America Others
South America Europe
Revenues (R$ million) Gross profit and margin (R$ million; %)
Minerals
Minerals and Services Performance
-11%
+9%41,6%
49,0%45,1%+13%
114,3101,3 49,0
42,9%
42,6
42,1%
Revenues (R$ million) Gross profit and margin (R$ million; %)
ServicesServices
42,4
3Q12
34,6
3Q13
37,6
2Q13 3Q13
15,6
2Q13
20,8
3Q12
15,6
9M139M12
101,3
9M13
49,0
9M12
42,6
7
+5%
-40%
3Q13
29,7
2Q13
28,3
3Q12
49,9
6,6
13,2%
3Q13
4,2
14,0%
2Q13
4,7
16,6%
3Q12
-34%
9M13
86,1
9M12
131,0 9,8%
9M13
12,5
14,5%
9M12
12,8
Consolidated Sales (R$ million)
Quarter YTD
-1%
+6%
638,2642,7599,7
+4%
1.898,91.828,9
Per Segment
3Q13
638,2
2Q13
642,7
3Q12
599,7
9M139M12
5,5% 6,0%
9M12 9M13
8
7,2%5,5%
87,3%
4,5%6,0%
89,5%
ServicesMineralsRefractories
Gross profit, EBITDA and Net Income (R$ million)
Gross profit
200,0
31,3%
216,5
33,7%
184,1
30,7%623,7
32,8%
564,7
30,9%
EBITDA and ADJUSTED EBITDA (excluding real estate sale)
ADJUSTED ADJUSTED
3Q132Q133Q12
3Q13
76,5
12,0%
2Q13
123,2
19,2%
3Q12
84,2
14,0%
9M139M12
9M13
315,9
16,6%
9M12
277,0
15,1%15,0%12,0%
2Q13
89,9
15,7%
101,076,5
3Q133Q12
293,6
9M139M12
15,5%
282,8
15,5%
9
Net Income
3Q132Q133Q12
3Q13
-21,7
-3,4%
2Q13
23,6
3,7%
3Q12
10,7
1,8%
9M139M12
9M13
28,2
1,5%
9M12
75,8
4,1%
2Q13 3Q133Q12 9M139M12
CAPEX, Operational cash flow and working capital (R$ million)
CAPEX OCF
61,7 61,6115,4
244,6
121,1
179,8 79,471,4
Working capital
61,7
3Q13
61,6
2Q13
36,0
3Q12 9M13
115,4
9M12
34,8%38,2%
36,3%35,5%33,2%
9M139M12 3Q13
18,8
2Q133Q12
10
3Q12
835
3Q13
976
2Q13
934
1Q13
877
4Q12
811
Working Capital
% of sales
Debt and Leverage
Total Excluding Perpetual Bond
1.369
3.58x
1.205
3.04x
1.059
2.64x
1.058
2.84x
1.031
2.88x
Net debt / EbitdaEbitdaNet Debt
1.61x1.36x1.44x1.45x
803
2.10x
Net debt / EbitdaEbitdaNet Debt
*EBITDA excluding nonrecurring
Amortization Schedule (R$ million) Net Debt per currency
*EBITDA excluding nonrecurring
BRL21%
-14% Sep-13
Dec-12
3Q13
382
2Q13
397
1Q13
401
4Q12
373
3Q12
358
2Q13
397
639
1Q13
401545
4Q12
373536
3Q12 3Q13
520382
803
358
Cash positionAmortizationPerpetual bond
11
Others0%
-3%
EUR20%
13%
USD58%
104%
BRL21%
Sep-13
2018+
1.493
927
566
2017
76
2016
78
2015
129
2014
32
2013
16
Sep-13
456
Investor Relations contacts
Octavio Pereira Lopes CEO
Eduardo Gotilla Global Finance & IR Director
Daniel Domiciano SilvaInvestor Relations
12
Phone: 55 11 3152-3202/3241ri@magnesita.com
www.magnesita.com