Ppt 1 q15 en vfinal
- 1. Earnings Call – 1Q15 May 15th, 2015 LTM = “Last Twelve Months”
- 2. The consolidated financial statements 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. Changes in historical numbers For comparison purposes, 2013 figures have been adjusted to reflect accounting changes implemented by the Company in late 2013. Disclosure 2
- 3. Brazil 3 *Source: WSA Crude Steel Production* (million tons) - Established Markets Volume (‘000 tons) USA + Canada EU-28 Sales to Steel Segment Revenues (R$ million) -3% -1% 1Q15 210 4Q14 217 1Q14 211 4Q14 545 1Q14 516 5% 11% 1Q15 570 Refractory Solutions Sales - Steel 1% 1% 1Q15 8 4Q14 8 1Q14 8 -6% -6% 1Q15 23 4Q14 25 1Q14 25 43 4% -2% 1Q154Q14 41 1Q14 44 Sales by region (in R$) 34 34 1Q14 LTM -1% 1Q15 LTM 99 0% 1Q15 LTM 99 1Q14 LTM 169 0% 1Q15 LTM 169 1Q14 LTM 1Q15 LTM 3% 881 1Q14 LTM 852 1Q14 LTM 2.194 9% 1Q15 LTM 2.006 1Q15 29% 21% 38% 12% Europe OthersSouth America North America 25% 26% 37% 12% 1Q14
- 4. 4 Sales to Industrial Segment Refractory Solutions Sales – Industrial Segment Volume (‘000 tons) Revenues (R$ million) 46 34 43 1Q14 34% 7% 1Q154Q14 142 98 125 1Q14 45% 13% 1Q154Q14 154151 3% 1Q15 LTM1Q14 LTM 439424 1Q15 LTM 4% 1Q14 LTM 1Q15 29% 11% 47% 13% Europe OthersSouth America North America 26% 14% 46% 14% 1Q14
- 5. Refractory Solutions Sales and Margin - Consolidated Volume (‘000 tons) Revenues (R$ million) Gross Profit and Margin (R$ million; %) 256251254 2% 1% 1Q154Q141Q14 242183212 14% 32% 1Q15 34.1% 4Q14 28.5% 1Q14 33.1% 712643641 11% 11% 1Q154Q141Q14 Sales by region (in R$) Sales by segment (in R$) 3% 1Q15 LTM 1.036 1Q14 LTM 1.002 8% 1Q15 LTM 2.633 1Q14 LTM 2.430 831797 4% 1Q15 LTM 31.6% 1Q14 LTM 32.8% 5 1Q15 29% 19% 40% 12% Europe OthersSouth America North America 25% 24% 39% 13% 1Q14 19.9% 80.1% 19.6% 80.4% 1Q15 1Q14 Steel Industrial
- 6. 6 Revenues (R$ million) Gross Profit and Margin (R$ million; %) Revenues (R$ million) Gross Profit and Margin (R$ million; %) Minerals and Services Sales and Margin 44 32 39 4Q141Q14 37% 12% 1Q15 50 43 39 4Q141Q14 16% 29% 1Q15 14 1112 33.4% 1Q14 31.2% 29% 13% 1Q15 31.6% 4Q14 12 77 16.4% 1Q14 16.9% 71% 84% 1Q15 24.2% 4Q14 Minerals Services 1Q14 LTM 170 -12% 1Q15 LTM 150 50 64 37.8% -22% 1Q15 LTM 33.6% 1Q14 LTM 1Q14 LTM 131 35% 1Q15 LTM 176 39 20 1Q14 LTM 90% 1Q15 LTM 21.9% 15.6%
- 7. 7 Consolidated Sales and Gross Profit Por Segmento 806 718719 11% 12% 1Q154Q141Q14 Gross Profit (R$ million; %) Consolidated Sales (R$ million) 8% 1Q15 LTM 2.959 1Q14 LTM 2.731 269 201231 33% 16% 1Q15 33.3% 4Q14 28.0% 1Q14 32.1% 920881 1Q15 LTM 4% 1Q14 LTM 31.1%32.3% 6% 6% 88% 1Q15 5% 6% 89% 1Q14 Refractories Minerals Services
- 8. 8 SG&A Selling Expenses (R$ million; %) G&A (R$ million; %) 1% 9% 1Q15 61 7.6% 4Q14 61 8.5% 1Q14 56 7.8% 5% 0% 1Q15 107 13.2% 4Q14 102 14.2% 1Q14 106 14.8% Selling Expenses % of sales 2% -5% 1Q15 45 5.6% 4Q14 44 6.2% 1Q14 48 6.6% Consolidated Freight G&A % of sales Others 6% 5% 1Q15 62 7.6% 4Q14 58 8.0% 1Q14 59 8.2% -1% 1Q15 LTM 240 8.1% 1Q14 LTM 241 8.8% 4% 1Q15 LTM 409 13.8% 1Q14 LTM 392 14.2% 7% 1Q15 LTM 179 6.0% 1Q14 LTM 168 6.1% 3% 1Q15 LTM 230 7.8% 1Q14 LTM 224 8.1%
- 9. 9 EBITDA and Net Result (R$ million) Net Result (R$ million; %) 1Q15 -27 -3.3% 4Q14 -76 -10.6% 1Q14 -17 -2.3% 37% 75% 1Q15 142 17.6% 4Q14 81 11.3% 1Q14 104 14.4% 10% 1Q15 LTM 425 14.3% 1Q14 LTM 385 14.0% -107 1Q15 LTM 0.6% 15 1Q14 LTM -3.6% EBITDA ex-others* (R$ million; %) *EBITDA excluding other operating revenues / expenses
- 10. 10 CAPEX and Working Capital Working Capital (R$ million; %) CAPEX (R$ million) 4Q14 23 34 1Q15 73 1Q14 -54% 46% 30.6% 3Q14 979 34.0% 1Q14 1,017 35.4% 1Q15 961 29.8% 4Q14 878 2Q14 1,002 35.1% Working Capital % of sales 187 1Q15 LTM -8% 204 1Q14 LTM
- 11. 8,2 Net Debt per currency (as of March* 2015) 11 *EBITDA excluding other revenues/expenses Amortization Schedule (R$ million) *EBITDA excluding other revenues/expenses Leverage and Indebtedness Amortization Schedule Leverage (R$ million) Leverage ex-perpetual (R$ million) 1.7061.5961.5371.4841.494 425387404379385 1Q15 3.5x 4.1x 4Q14 3.9x 4.1x 3Q14 3.7x 3.9x 2Q14 4.0x 3.9x 1Q14 3.8x 3.9x Net Debt / EBITDA Adj by fx Net Debt / EBITDA¹ EBITDA Net Debt 887931911922914 425387404379385 1Q15 2,1x 2,1x 4Q14 2,4x 2,4x 3Q14 2,3x 2,3x 2Q14 2,5x 2,5x 1Q14 2,4x 2,4x Net Debt / EBITDA Adj by fx Net Debt / EBITDA¹ EBITDA Net Debt 88.5% Short term 11.5% Long term EUR 20% USD48% BRL 32% *Currency exposure as of March 27th, before the Swap expiration on March 30th
- 12. Octavio Pereira Lopes CEO Eduardo Gotilla CFO e IRO Daniel Domiciano IR Manager Lucas Veiga IR Analyst Phone: +55 11 3152-3237/3241/3202 ri@magnesita.com www.magnesita.com/ri 12 Investor Relations