iochpe-maxion - 3q04 presentation
DESCRIPTION
3rd Quarter 2004 PresentationTRANSCRIPT
2004 Third QuarterResults
2
Iochpe-Maxion: Fundamentals
Strong organic growth of revenues
Steady operational margins
Growing cash flow generation
Solid capital structure – debt / EBITDA ratio
Focus on equipments related to the logistics industry
Local market leadership
Capital expenditures aiming at a strong competitive position – entry barriers
Growing exports
Capacity expansion in line with demand growth
3
Iochpe-Maxion: Capital Markets and Governance
Public company since 1984
Investor relationshipQuarterly meetings
Website – exclusive IR content
Annual Reports, press releases, etc.
Dividend payout – 37% of net income and an additional 10% for non voting shares
StockGrowing liquidity and float
Board with 2 independent members and no executive officer
Audit Board (“Conselho Fiscal”) with 1 representative of the non-controlling shareholders
4
Shareholder Composition – Sept. 04
Outstanding Shares
Voting 921,429,894 34.62%Non-voting 1,740,185,376 65.38%
Total 2,661,615,270 100.00%
Iochpe FamilyVoting 75.6%Non-voting 0.5%Total 26.5%
Iochpe-Maxion S.A.
Iochpe-Maxion
BNDES ParticipaçõesVoting 21.8%Non-voting 62.2%Total 48.2%
OtherVoting 2.6%Non-voting 37.3%Total 25.3%
Other – Sept. 03Voting 3.1%Non-voting 26.6%Total 18.5%
Shareholder Agreement
5
Corporate Structure – Sept. 04
Wheels andChassis Division
(2.974 Employees)
AutomotiveComp. Division
(1.294 Employees)
Maxion SistemasAutomotivos S.A.
Maxion ComponentesEstruturais Ltda.
Amsted Maxion Fund. eEquip. Ferroviários S.A.
(3.370 Empoyees)
Iochpe-Maxion S.A.(11 Employees)
Consolidated = 5.969 Employees
7.22%
AmstedIndustries
Tecob Repr.Cobr. Ltda(3 Employees)
Iochpe Holdings, LLC(2 Employees)
100% 100%
50%
50%99.99%
92.64%
6
Net sales breakdown by company %
9M04 - R$ 786.8 MM 9M03 - R$ 494.9 MM
3 0 %
1 3 %
5 7 %
Amsted Maxion (*)
2 4 %
1 6 %
6 0 %
Wheels andChassis Division
Amsted Maxion (*)
AutomotiveComp. Division Automotive
Comp. Division
Wheels andChassis Division
(*) Consolidated figures take into consideration 50% of the net sales of Amsted Maxion
7
Automotive Industry – Brazilian Output Thousand units
3Q04 3Q03 Chg.% 9M04 9M03 Chg.%
Cars 468.7 350.4 33.8% 1,302.6 1,104.9 17.9%
Light Commercials 83.0 55.4 49.8% 223.7 153.5 45.7%
Trucks 29.1 19.6 48.5% 79.1 58.3 35.6%
Buses 7.7 7.0 10.6% 21.4 20.0 7.4%
Total Vehicles 588.6 432.4 36.1% 1,626.9 1,336.7 21.7%
Agricultural Machinery 18.9 17.5 7.7% 51.1 44.1 15.8%
Source : Anfavea
8
Automotive Industry - Export Thousand units
3Q04 3Q03 Chg.% 9M04 9M03 Chg.%
Cars 147.1 104.8 40.3% 361.3 333.9 8.2%
Light Commercials 28.5 20.1 41.8% 74.5 48.8 52.7%
Trucks 7.3 3.7 98.0% 19.0 8.4 126.2%
Buses 3.3 2.5 28.4% 8.1 6.5 23.9%
Total Vehicles 186.3 131.2 41.9% 462.9 397.7 16.4%
AgriculturalMachinery 8.5 6.3 34.5% 23.2 14.9 55.5%
Source : Anfavea
57%
WHEEL AND CHASSIS DIVISION (*)
(*) Division of
10
WHEELS AND CHASSIS DIVISION
Chassis and Siderails - 51% of net sales
SiderailsStamped Parts
Chassis
StructuralPats
Heavy Medium Light
11
WHEELS AND CHASSIS DIVISION
Wheels for Vehicles - 49% of net sales
12
WHEELS AND CHASSIS DIVISION R$ MM
1 1 2
1 7 42 0 8
2 4 1
3 9 7
5 5 2
2 9 5
4 5 0
1 1 3
1 7 3
0 0
2 0 0
4 0 0
6 0 0Net Sales
CAGR = 39.9% a.a.
1999 2000 2001 2002 2003 3Q04 LTMLTM = Last 12 months / CAGR = Compounded Annually Growth Rate
Chg.% = 52.3%
9M03 9M04
Chg.% = 53.7%
3Q03 3Q04
13
WHEELS AND CHASSIS DIVISION
Chassis – Market Share %9M04 9M03
1 5 %
1 1 %7 4 %
Maxion
Dana
OEMs
1 6 %
7 4 %
Maxion
1 0 %
Dana
OEMs
14
WHEELS AND CHASSIS DIVISION
Chassis – Net sales breakdown by customer %9M04 – R$ 229.8 MM 9M03 – R$ 153.0 MM
2 8 %
2 2 %
9 %
7 %5 %
1 6 %
1 3 %
OtherDaimlerChrysler
Volks-wagen General
Motors
Export
Ford
Scania
2 2 %
2 6 %
5 %
9 %3 %
1 9 %
1 6 %
Volks-wagen
DaimlerChrysler Other
Scania
Ford
Export
GeneralMotors
15
WHEELS AND CHASSIS DIVISION
Chassis – New Orders: R$ 19.2 MM per year
P r o d u c t / C u s t o m e r C o u n t r y S t a r t i n g D a t e A n n u a l S a l e s R $ M M
L i g h t S t a m p i n g s - A r v i n M e r i t o r B r a z i l M a y . 0 5 9 . 6
M e d i u m S t a m p i n g s - D a i m l e r C h r y s l e r B r a z i l A u g . 0 4 3 . 1
C h a s s i s - V o l k s w a g e n ( C K D - M e x i c o ) B r a z i l M a r . 0 4 2 . 3
C h a s s i s - V o l k s w a g e n B r a z i l A p r . 0 4 2 . 2
L i g h t S t a m p i n g s - D a i m l e r C h r y s l e r B r a z i l J u n . 0 4 1 . 3
M e d i u m S t a m p i n g s - P e u g e o t C i t r o e n B r a z i l O c t . 0 4 0 . 4
S i d e r a i l R e i n f o r c e m e n t - D a i m l e r C h r y s l e r B r a z i l M a y . 0 4 0 . 3
16
WHEELS AND CHASSIS DIVISION
Wheels - Market Share %9M04 9M03
3 9 %
1 0 %
5 1 %
MaxionBorlem
Other
3 9
Borlem
%
1 0 %
5 1 %
Maxion
Other
17
WHEELS AND CHASSIS DIVISION
Wheels – Net sales breakdown by customer %9M04 – R$ 220.0 MM 9M03 – R$ 142.3 MM
2 6 %2 4 %
1 1 % 6 %6 %
1 1 %1 6 % Outros
ExportTractors
Volks-wagen Scania
Volvo
2 7 %2 8 %
1 2 % 6 %4 %
1 1 %1 2 %
Aftermarket
Volks-wagen Scania
Volvo
Other
Export Tractors
Aftermarket
18
WHEELS AND CHASSIS DIVISION
WHEELS – NEW ORDERS: R$ 17.4 MM per year
C U S T O M E R C o u n t r y S t a r t i n g D a t e A n n u a l S a l e s R $ M M
W o r k h o r s e U S A J u n . 0 5 6 . 5J o h n D e e r e B r a z i l N o v . 0 4 3 . 2S t i p T u n i s M a y . 0 4 2 . 3D u n l o p S o u t h A f r i c a J u n . 0 4 1 . 5K u r t L e y s e r C o r p . S o u t h A f r i c a A p r . 0 4 1 . 5M A A P M o r o c c o M a y . 0 4 1 . 0B r i d g e s t o n e S p a i n F e b . 0 4 0 . 8K r i s t a n a s S p i r o s G r e e c e J u l . 0 4 0 . 6
14%
AUTOMOTIVE COMPONENTS DIVISION (*)
(*) Division of
20
Automotive Components Division
Partial Divestiture – Sept.10 , 2004
Assets related to the window raiser mechanismBuyer: Brose do Brasil Ltda. – subsidiary of Brose International GmbHAmount: R$ 17.8 millionAsset transfer in 180 daysWindow raiser mechanisms business represents:
7% of the consolidated net sales51% of the net sales to the passenger car segment
21
Automotive Components Division
HANDBRAKELEVERS
PEDALSETS
JACKS
22
Automotive Components Division R$ MM
9 29 9
9 4 9 8
1 1 4
1 3 8
8 2
1 0 5
2 73 7
0
5 0
1 0 0
1 5 0
Net Sales
CAGR = 9.0% a.a.
Chg. % = 28.9%
Chg. % = 38.6%
1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04LTM = Last 12 months / CAGR = Compounded Annually Growth Rate
23
Automotive Components Division
Market Share % 9M04 9M03
W indow raiser mechanism
42% 43%
Hand break lever 43% 46%
Pedal Set 27% 27%
Jack 20% 15%
Latch 9% 10%
Knob / Key / Cylinder 7% 10%
24
Automotive Components Division
Net sales breakdown by customer %9M04 – R$ 105.3 MM 9M03 – R$ 81.7 MM
3 1 %
2 5 %
1 4 %
7 %4 %
4 %
1 5 %
Fiat
Volks-wagen
GeneralMotors
SAS
FordAfter
Market
2 9 %
2 3 %
1 2 %
7 %8 %2 %
1 9 %
SAS
GeneralMotors
Fiat
AfterMarket
Ford
Volks-wagen
OtherOther
25
Automotive Components Division
New Orders: R$ 1,2 MM per year (*)
M o d e l - C u s t o m e r s P r o d u c t S t a r t i n g D a t e
A n n u a l S a l e s R $ M M
F o x - V W J a c k O c t . 0 3 0 . 9P i c k - u p M o n t a n a - G M L a t c h N o v . 0 3 0 . 3
(*) Does not include new orders of window raiser mechanisms, due to the disposal of this business
26
Brazilian market of railroad equipment
Sale 3Q04 3Q03 Chg.% 9M04 9M03 Chg.%
Railroad freight cars – units 1,579 511 209% 4,195 1,339 213%
Railroad wheels – thous. units 13.6 8.9 53% 30.4 27.0 13%
Railroad castings – thous. tons 0.7 0.7 0% 2.7 1.6 69%
Does not include wheels and castings used in the assembly of new freight cars
AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS
30%
Subsidiaries :
28
Amsted Maxion
RAILROADWHEELS
RAILROADFREIGHT CARS
BOOGIES
29
Amsted Maxion R$ MM
9 51 2 2 1 1 0 1 2 0
3 2 8
5 5 6
2 3 6
4 6 4
8 9
1 8 9
0
2 0 0
4 0 0
6 0 0
Net Sales (*)
CAGR = 45.2% a.a.
1999 2000 2001 2002 2003 3Q04 LTM
Chg. % = 96.5%
9M03 9M04
Chg. % = 111.5%
3Q03 3Q04
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s salesLTM = Last 12 months / CAGR = Compounded Annually Growth Rate
30
Amsted Maxion
Market Share % 9M04 9M03
R a i l r o a d F r e ig h t C a r s 7 5 %
1 0 0 %
R a i l r o a d W h e e ls
4 0 %
6 0 %
R a i l r o a d C a s t in g s
8 0 %
8 0 %
In d u s t r ia l C a s t in g s
5 0 %
6 0 %
31
Amsted Maxion
Net sales breakdown by customer %9M04 – R$ 231,8 MM(*) 9M03 – R$ 118,0 MM(*)
5 7 %1 4 %
7 %3 %3 %
4 %
1 2 %
Other Ferronorte
CVRD
Export
MRS
6 8 %
2 %
5 % 3 %2 2 %
Caterpillar
CVRD
Export
MRS
FCAFCA
Caterpillar
(*) Accounts for 50% of the net sales of Amsted Maxion
32
Amsted Maxion
Spot Orders 2004 : R$ 580.0 MM (*)
CVRD / FCA – 2,878 cars
MRS - 630 cars
ADM - 140 cars
Mineração Serra do Sossego - 42 cars
MRS / ALL - 50 boxes
MRC (Mitsui) – 150 cars
Total = 3,840 cars and 50 boxes
Delivered
As of Sept. 30 – 3,116 carsand 30 boxes
Still in 2004 – 724 cars and 20 boxes
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
33
Amsted Maxion
Spot Orders 2005 : R$ 130.0 MM (*)
MRC (Mitsui) – 350 cars
C.V.G. Ferrominera Orinoco - (Venezuela) - 225 cars
Comilog S.A. (Gabon) - 76 cars
CBG – Compagnie des Bauxites de Guinee (Guinee) - 24 cars
Total = 675 cars
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
34
Amsted Maxion
Recurring Orders : R$ 132.2 MM per year (*)
Caterpillar (Brazil and USA) – tractor parts - R$ 54.0MM
ASF-Amsted (USA) – railroad castings – R$ 44.7MM
C.V.G. Ferrominera Orinoco (Venezuela) – railroad castings – R$ 10.1MM
Truck OEMs (Brazil) – fifth-wheels – R$ 8.5MM
ConMet-Amsted (USA) – fifth-wheels components - R$ 7.7MM
Metso (France) – industrial castings - R$ 3.6MM
Komatsu / CNH (USA and Italy) – industrial castings - R$ 3.6MM
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
CONSOLIDATEDFIGURES
36
Consolidated
Net sales breakdown by customer %9M04 – R$ 786.8 MM 9M03 – R$ 494.9 MMM
1 7 %
1 3 %
9 %7 %
7 %5 %4 %
4 %
2 2 %
1 2 %
CVRD
Volks-wagen
DaimlerChrysler
Fiat
Other
Export
GeneralMotors
Tractors
AfterMarket
1 6 %
1 6 %
1 0 %8 %
8 %
5 %5 %1 %
1 6 %
1 5 %
CVRD
Volks-wagen
DaimlerChrysler
Fiat
Other
Export
GeneralMotors
Tractors
AfterMarketMRS
MRS
37
Consolidated – Net sales breakdown by segment %
Customer Segment 9M04 9M03
OEMs producing in the country
- Bus, truck and light commercial - Passanger cars
61%
48% 13%
65%
49% 16%
Brazilian railroad operators 26% 19%
Export 13% 16%
38
Consolidated – Export by product segment %
9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM
5 3 % 1 7 %
1 % 2 9 %
5 2 %
AutomotiveComp.
Chassis
RailroadEquipment
AutomotiveWheels
AutomotiveComp.
AutomotiveWheels
1 8 %
2 %2 8 %
Chassis
RailroadEquipment
Import 9M04
US$ 8.0MM / R$ 23.6MM (*)
Import 9M03
US$ 6.6MM / R$ 20.9MM(*) includes US$ 3.4MM / R$ 10.0MM of machineryand equipment
39
Consolidated – Export by destination %
9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM
5 3 %1 0 %
1 9 %
1 %7 %7 %
3 %3 8 %
1 7 %
1 5 %
3 %8 %
1 7 %
2 %Mexico
USA
Canada
SouthAmerica
Asia /Oceania
Europe
Africa / Middle East
Mexico
USA
Canada
SouthAmerica
Asia /Oceania
EuropeAfrica / Middle East
40
Consolidated R$ MM
1999 2000 2001 2002 2003 3Q04 LTM
6 1 5 , 4 6 2 4 , 0
3 7 3 , 7 4 1 1 , 2
6 7 5 , 7
9 6 8
4 9 5
7 8 7
1 8 4
3 0 5
0
2 5 0
5 0 0
7 5 0
1 0 0 0
Net Sales
CAGR = 41.3% a.a.
Disposals
Chg.% = 59.0%
Chg.% = 65.6%
9M03 9M04 3Q03 3Q04
LTM = Last 12 months / CAGR = Compounded Annually Growth Rate
41
Consolidated - First Nine Months % net sales
1 9 %2 1 % 2 2 % 2 2 %
8 %
- 2 %
2 3 %
1 7 %1 5 %1 5 % 1 5 %
1 6 %
9 %7 %
1 0 %1 3 %
4 %
- 5 %
- 1 %
1 0 %
G r o s s P r o f i t E B I T D A E B I T O p e r a t i o n R e s u lt
9M00 9M01 9M02 9M03 9M04
Operational Margins
42
Consolidated - First Nine Months R$ MM
8 5 , 3
6 2 , 6
1 0 7 , 3
1 7 4 , 6
3 6 , 1
( 1 0 , 1 )
6 8 , 2
5 0 , 8 4 5 , 1
6 7 , 4 7 3 , 7
1 2 6 , 4
2 7 , 62 0 , 7
4 9 , 3
1 0 4 , 1
( 3 , 4 )
2 0 , 2
( 1 4 , 8 )
7 7 , 7
G r o s s P r o f i t E B I T D A E B I T O p e r a t i o n R e s u lt
9M00 9M01 9M02 9M03 9M04
Operational Margins
43
R$ thous.
44
45
46
Consolidated – Bank Debt Breakdown – Sept. 04
4 7 %
2 2 %
3 % 1 3 %
1 5 %Dollar
TJLP(equipment
line)
INPC(consumerInflation)CDI
(interbank)IGPM(generalInflation)
47
Consolidated – Foreign currency Exposure – Sept. 04
US$ MMB a l a n c e S h e e t
A s s e t s d e n o m i n a t e d i n f o r e i g n c u r r e n c y. M a r k e t a b l e S e c u r i t ie s / In v e s t m e n t s 1 . 8. A c c o u n t s R e c e iv a b l e 9 . 9
1 1 . 7
L i a b i l i t i e s d e n o m i n a t e d i n f o r e i g n c u r r e n c y. B a n k D e b t ( E x p o r t L in e s / O t h e r ) ( 2 8 . 5 ). A c c o u n t s P a y a b l e ( 2 . 6 )
( 3 1 . 1 )
N e t P o s i t i o n ( 1 9 . 4 )
48
Stock Performance
49
Consolidated – Social Report
W h e e ls a n d A u t o m o t iv e A m s t e d C o r p o r a t e a n dC h a s s is C o m p o n e n t s M a x io n O t h e r S e p t . 2 0 0 4 S e p t . 2 0 0 3
E m p lo y e e s 2 ,9 7 4 1 ,2 9 4 3 ,3 7 0 1 6 5 ,9 6 9 4 ,1 4 0
P r o d u c t iv i t y ( * )R $ t h o u s . / E m p lo y e e 1 8 5 .5 1 0 6 .6 1 6 4 .9 - 1 6 2 .1 1 4 5 .9
C o n s o l id a t e d ( * * )
(*) Last 12 months sales /Number of employees at the end of the period
(**) Consolidated ficgures take into consideration 50% of Amsted Maxion
BENCHMARK
51
Benchmark – Gross Profit % net sales
Fonte: Companies releases2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results
V i s t e o n
I o c h p e - M a x i o nS t r a t t e c
G e n t e x
T o w e r
M a r c o p o l o
E a t o n
F e d e r a l M o g u l
D a n a
T e n n e c o
S t o n e r i d g e
V a l e o
T i t a n
A m e r i c a n A x l e
D u r aS u p e r i o r
L e a r
D e l p h i
C u m m i n s
B o r g W a r n e r
J o h n s o n C o n t r o l sA u t o l i v
0 % 1 0 % 2 0 % 3 0 % 4 0 %
3 Q 0 4 3 Q 0 3
A v e r a g e = 1 6 %
52
Benchmark – EBIT % net sales
S t r a t t e cG e n t e x
A u t o l i v
A m e r i c a n A x l eS t o n e r i d g e
I o c h p e - M a x i o n
B o r g W a r n e rM a r c o p o l oE a t o n
T i t a n
S u p e r i o rT e n n e c oV a l e o
J o h n s o n C o n t r o l sC u m m i n s
D u r aD a n a
L e a rT o w e rF e d e r a l M o g u l
D e l p h iV i s t e o n
- 5 % 5 % 1 5 % 2 5 % 3 5 %
3 Q 0 4 3 Q 0 3
A v e r a g e = 7 %
Fonte: Companies releases2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results
53
Benchmark – EBITDA % net sales
G e n t e x
I o c h p e - M a x i o nS t r a t t e c
B o r g W a r n e r
M a r c o p o l oT i t a n
A u t o l i vA m e r i c a n A x l e
T e n n e c oF e d e r a l M o g u lD u r a
D a n aC u m m i n sT o w e r
J o h n s o n C o n t r o l sL e a r
D e l p h i
0 % 1 0 % 2 0 % 3 0 % 4 0 %
3 Q 0 4 3 Q 0 3
A v e r a g e = 1 1 %
Visteon
Fonte: Companies releases2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results
54
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