Release 1Q15

Transcription

Release 1Q15
Public Disclosure - Belo Horizonte April 23, 2015. Usinas Siderúrgicas de Minas Gerais S.A. - Usiminas (BM&FBOVESPA: USIM3,
USIM5 e USIM6; OTC: USDMY and USNZY; Latibex: XUSIO and XUSI) today releases its first quarter (1Q15) results. Operational and
financial information of the Company, except where otherwise stated, are presented based on consolidated figures, in Brazilian Real,
according to International Financial Reporting Standards (IFRS). All comparisons made in this release take into consideration the
fourth quarter of 2014 (4Q14), except where stated otherwise.
Release of the 1Q15 results
The main operational and financial indicators were:





Steel sales volume of 1.3 million tons;
Iron ore sales volume of 1.1 million tons;
Consolidated Adjusted EBITDA of R$379.5 million and Adjusted EBITDA Margin of 14%;
Working Capital on 03/31/15 of R$2.7 billion;
Investments of R$232.3 million.
Main Highlights
1Q15
4Q14
1Q14
Steel Sales Volume (000 t)
Iron Ore Sales Volume (000 t)
Net Revenue
COGS
Gross Profit (Loss)
Net Income (Loss)
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)
1,256
1,139
2,680
(2,437)
244
(235)
354
13%
1,247
1,161
2,585
(2,527)
58
(117)
291
11%
1,437
1,765
3,142
(2,623)
520
222
648
21%
Chg.
1Q15/4Q14
1%
-2%
4%
-4%
319%
101%
22%
+ 200 bps
Adjusted EBITDA
Adjusted EBITDA Margin
Investments (CAPEX)
Cash Position
380
14%
232
2,621
302
12%
343
2,852
655
21%
238
2,914
26%
+ 200 bps
-32%
-8%
R$ million - Consolidated
Index
Market Data - 03/31/15
BM&FBOVESPA:
USIM5
R$ 4,97/share
USIM3
R$21,50/share
EUA/OTC:
USNZY
US$1,58/ADR
LATIBEX:
XUSI
€1,48/share
XUSIO
€6,27/share
1Q15 Results
• Consolidated Results
• Performance of the Business Units:
- Mining
- Steel
- Steel Processing
- Capital Goods
• Subsequent Events and Consolidated Highlights
• Capital Markets
• Balance Sheet, Income and Cash Flow Statements
1
Economic Scenario
The global economy is still growing at a moderate pace. The International Monetary Fund - IMF
expects a slight growth acceleration from 3.4% in 2014 to 3.5% in 2015, but with substantial
rhythm differences between advanced economies and emerging economies, whose potential
growth has proved to be lower.
In Latin America, the major economies have shown mixed performance in early 2015. The
decrease in the commodity prices has negatively impacted the performance of several
economies in that region and the more depreciated exchange rate - pressuring inflation - has
reduced the chance of stimulus, limiting these countries’ recovery.
The economy activity in Brazil has still being in a weak performance. The Brazilian Central
Bank’s economic activity index - IBC-Br, available for the first two months of the year, has
signaled a decrease in GDP for the 1Q15. The scenario of high interest rates, inflation and job
market deterioration are some of the factors that have contributed to the worsening of the
economic environment, resulting in a decline in the growth expectations for 2015, which was
0.2% at the beginning of the year, moving to -1.0% at the end of the first quarter.
In the Brazilian industry, the scenario is even more challenging. The Industrial Production in
February recorded the 12th consecutive month of retraction and declined 9.1%, if compared
with February 2014, the highest decline since 2009. The accumulated figures in the year, up to
February, represented a retraction of 7.1%. Considering high inventories and confidence
indexes at minimum levels, there are no signs of an imminent recovery. Steel intensive
industrial segments also had significant downfalls in the period. In the first two months of the
year, the capital goods production receded 21.1% and the durable goods, 20.1%.
1Q15 Results
2
Economic and Financial Performance
Comments on Consolidated Results
Net Revenue
Net revenue in the 1Q15 was R$2.7 billion, representing a growth of 3.7% against the R$2.6
billion in the 4Q14, due to higher steel sales volume in the domestic market by 10.0%.
Net Revenue Breakdown
1Q15
4Q14
1Q14
Domestic Market
88%
84%
87%
Exports
12%
16%
13%
Total
100%
100%
100%
Cost of Goods Sold (COGS)
In the 1Q15, COGS totaled R$2.4 billion, against R$2.5 billion in the 4Q14, and gross margin
was 9.1%, against 2.2% in the 4Q14, an increase of 690 basis points, as per the chart below:
Gross Margin
1Q15
4Q14
1Q15
9.1%
2.2%
16.5%
Operating Expense and Income
In the 1Q15, sales expenses were R$51.2 million, against R$72.2 million in the 4Q14, a reduction
of 29.2%, mainly due to lower distribution cost and to lower provisions for doubtful accounts.
General and administrative expenses in the 1Q15 totaled R$122.5 million, against R$134.2 million,
a decline of 8.8%, mainly due to reduction in expenses related to direct labor and third parties’
services by 9.4%. Other operating expenses and income resulted in an expense of R$34.5 million
in the 1Q15, against an income of R$105.3 million in the 4Q14, mainly in function of lower sale
revenue of surplus electric energy, which totaled R$27.9 million in the 1Q15, against R$90.4
million in the 4Q14, of higher provision for contingencies in R$27.5 million in the 1Q15 and of
asset sales in the amount of R$32.1 million in the 4Q14. Thus, net operating expenses totaled
R$208.1 million in the 1Q15, against R$101.1 million in the 4Q14. In this manner, the Company’s
operating margin is presented below:
EBIT Margin
1Q15 Results
1Q15
4Q14
1Q14
1.3%
-1.7%
10.7%
3
Adjusted EBITDA
Adjusted EBITDA is calculated from net income (loss), reversing profit (loss) from discontinued
operations, income tax and social contribution, financial result, depreciation, amortization and
depletion, and equity in the results of Associate, Joint Subsidiary and Subsidiary Companies.
The adjusted EBITDA includes the proportional participation of 70% of Unigal and others joint
subsidiary companies.
EBITDA Breakdown
Consolidated (R$ thousand)
1Q15
Net Income (Loss)
4Q14
1Q14
(235,380)
(117,330)
221,628
Income Tax / Social Contribution
(78,071)
(95,263)
141,087
Financial Result
360,900
213,761
18,057
Depreciation, Amortization
306,430
289,773
267,088
353,879
290,941
647,860
EBITDA - Instruction CVM - 527
Equity in the Results of Associate and Subsidiary
Companies
(11,971)
(44,147)
(44,284)
Joint Subsidiary Companies proportional EBITDA
37,626
55,002
51,809
379,534
301,796
655,385
Adjusted EBITDA
Adjusted EBITDA in the 1Q15 reached R$379.5 million, against R$301.8 million in the 4Q14,
25.8% higher, comparing both periods, mainly due to the better performance of the Steel Unit,
even with lower sale revenue of surplus electric energy in R$62.6 million. Adjusted EBITDA
Margin in the 1Q15 was 14.2%, against 11.7% in the 4Q14. Adjusted EBITDA margins are
shown below:
Adjusted EBITDA Margin
1Q15
4Q14
1Q14
14.2%
11.7%
20.9%
Financial Result
In the 1Q15, net financial expenses were R$360.9 million, against R$213.8 million in the
4Q14, an increase of R$147.1 million, mainly attributed to higher currency exchange losses in
R$255.0 million due to the strong Real depreciation against the Dollar of 20.8% in this quarter.
This was partially compensated by lower financial expenses in R$65.0 million in function of
lower interest expenses on loans and by higher SWAP operations market cap in R$67.1 million.
Financial Result - Consolidated
1Q15
4Q14
1Q14
Chg.
1Q15/4Q14
Currency Exchange Variation
(390,815)
(135,818)
64,830
188%
Swap Operations Market Cap.
93,983
26,912
(959)
249%
(61,212)
(35,097)
(44,148)
74%
52,539
50,559
39,052
4%
(55,395)
(120,317)
(76,832)
-54%
(360,900)
(213,761)
(18,057)
69%
R$ thousand
Inflationary Variation
Financial Income
Financial Expenses
FINANCIAL RESULT
1Q15 Results
4
Equity in the Results of Associate and Subsidiary Companies
In the 1Q15, equity in the results of associate and subsidiary companies was R$12.0 million,
against R$44.1 million in the 4Q14, a decrease of R$32.2 million, mainly due to lower
contribution of Unigal in the period, which was mainly affected by the increase in the financial
expenses on loans in Dollar due to the strong exchange rate devaluation in the period.
Net Profit (Loss)
In the 1Q15, the company accounted a net loss of R$235.4 million, higher than the net loss
recorded in the 4Q14 of R$117.3 million. Although all of the Business Units improved their
operational performance, the strong foreign exchange depreciation by 20.8% in the quarter
increased the financial expenses, affecting the Company’s results.
Working Capital
At the end of the 1Q15, the Company’s working capital was R$2.7 billion, against R$2.4 billion in
the 4Q14, representing a 12.9% increase, mainly in function of the increase in the accounts
receivable in R$133.6 million and the increase in the inventories of finished products and raw
materials in R$393.7 million, partially compensated by the increase in the accounts payable in
R$286.4 million.
Investments (CAPEX)
In the 1Q15, CAPEX totaled R$232.3 million, 32.3% lower when compared with the 4Q14,
which was R$343.1 million. The main investments were with sustaining CAPEX and technology
updating of the plants. Out of total investments, approximately 85% was applied to the Steel
Unit, 11% to the Mining Unit, 3% to the Steel Transformation Unit and 1% to the Capital
Goods Unit.
Indebtedness
Consolidated gross debt was R$7.1 billion on 03/31/15, against R$6.7 billion on 12/31/14,
representing an increase of 6.7%, mainly due to the Real depreciation against the Dollar of
20.8%, which directly impacted the debt portion denominated in Dollar, which accountted for
40.0% of the total debt. Debt composition by maturity was 24% in the short term and 76% in
the long term. The net debt/EBITDA ratio on 03/31/15 was 2.9 times. The chart below
demonstrates consolidated debt by index:
Total Indebtedness by Index - Consolidated
R$ thousand
Local Currency
31-Mar-15
Short Term
Long Term
TOTAL
%
TOTAL
Change
Mar15/Dec14
31-Mar-14
TOTAL
Change
Mar15/Mar14
1,159,719
3,126,634
4,286,353
4,265,226
0%
4,500,164
-5%
TJLP
188,293
375,470
563,763
-
618,078
-9%
807,936
-30%
CDI
943,915
2,699,106
3,643,021
-
3,573,921
2%
3,589,301
27,511
52,058
79,569
-
73,227
9%
102,927
-23%
571,372
2,291,058
2,862,430
40%
2,436,521
17%
2,157,597
33%
1,731,091
5,417,692
7,148,783
100%
6,701,747
7%
6,657,761
7%
Others
Foreign Currency (*)
Gross Debt
60%
31-Dec-14
1%
Cash and Cash Equivalents
-
-
2,621,043
-
2,851,903
-8%
2,913,979
-10%
Net Debt
-
-
4,527,740
-
3,849,844
18%
3,743,782
21%
(*) 99% of total foreign currency is US dollars denominated
1Q15 Results
5
The graph below shows the consolidated debt profile and cash position in R$ million on
03/31/15:
Duration: R$ : 31 monthes
US$:29 monthes
2,621
1,256
1,723
1,599
1,531
1,357
523
605
330
821
1,333
68
1,365
1,027
1,076
926
118
753
390
3
114
Cash
2015
2016
2017
2018
Local Currency
2019
2020 on
Foreign Currency
Performance of the Business Units
Intercompany transactions are on an arm’s-length basis (market prices and conditions).
Usiminas - Unidades de Negócios
Mineração
Transformação do
Aço
Siderurgia
Mineração Usiminas
Usina de Ipatinga
Usina de Cubatão
Unigal
Bens de Capital
Soluções Usiminas
Usiminas Mecânica
Income Statement per Business Units - Non Audited - Quarterly
R$ million
Mining
1Q15
Net Revenue
Steel
Processing
Steel*
4Q14
1Q15
4Q14
1Q15
Capital Goods
4Q14
1Q15
4Q14
Adjustment
1Q15
Consolidated
4Q14
1Q15
4Q14
118
87
2,556
2,457
540
574
211
190
(744)
(723)
2,680
2,585
Domestic Market
118
87
2,230
2,033
536
573
211
190
(744)
(723)
2,350
2,160
Exports
-
327
424
4
1
(2,316)
(2,364)
(527)
(573)
COGS
-
(111)
Gross Profit (Loss)
Operating Income
(Expenses)
6
(100)
(12)
(15)
(4)
EBIT
(9)
(16)
Adjusted EBITDA
43
24
Adj.EBITDA Margin
36%
27%
(185)
(176)
241
93
13
(152)
(66)
(24)
(17)
88
27
(11)
(16)
8
(2)
337
268
(4)
(6)
14
5
13%
11%
-1%
1
-
-1%
26
14
(18)
(16)
7%
2%
-
-
331
425
702
685
(2,437)
(2,527)
(42)
(38)
1
2
(41)
(208)
(36)
(11)
-
244
35
11
380
-
14%
*Consolidates 70% of Unigal
1Q15 Results
6
58
(101)
(43)
302
12%
I) M I N I N G
The reduction in the Chinese demand and the abundant supply of iron ore have continued to
pressure PLATTS prices, which reached, on average, US$62.4/t in the 1Q15, against US$74.3/t in
the 4Q14 (62% Fe, CFR China). At the end of the 1Q15, the iron ore price reached even lower
levels, achieving US$51.3/t.
Operational and Sales Performance - Mining
In the 1Q15, production volume was 1.5 million tons, stable in relation to the 4Q14. Sales volume
recorded in the 1Q15 was 1.1 million tons, also stable in relation to the 4Q14. There was lower
sales volume to the Ipatinga and Cubatão plants, partially compensated by higher sales to third
parties in the domestic market.
Production and sales volumes are shown in the following chart:
Iron Ore
Thousand tons
Production
Sales - Third Parties - Domestic Market
Sales - Exports
Sales to Usiminas
Total Sales
1Q15
4Q14
1Q14
Chg.
1Q15/4Q14
1,461
1,452
1,618
1%
91
39
298
133%
0
0
509
-
1,048
1,122
957
-7%
1,139
1,161
1,765
-2%
Comments on the Business Unit Results - Mining
Net revenue in the Mining Unit was R$117.9 million, against R$87.3 million in the 4Q14, a 35.0%
increase, due to lower payments regarding freight contracts with take or pay conditions in R$37.2
million which are accounted for as a reduction of the gross revenue. Although in the quarterly
comparison, the PLATTS iron ore price reference (62%, FE, CFR China), adjusted for the period
sales pricing regarding Mineração Usiminas, had recorded a decrease of 16.3%, this was partially
compensated by an average exchange devaluation of 12.8% in the period.
Cash cost per ton decreased 4.1% due to lower costs with direct labor, third parties’ services,
electric energy and fuels. Cost of Goods Sold (COGS) per ton increased 14.0% in the 1Q15, if
compared with the 4Q14, as a result of a revision in the useful life of some assets, which caused
increase in depletion.
Net operating expenses were R$15.1 million, against R$4.0 million in the 4Q14. Although a
reduction in direct labor and third parties’ services was achieved, there was provision for freight
contracts with take or pay conditions in R$8.4 million and lower sale revenue of surplus electric
energy, that was R$9.1 million in the 1Q15, against R$22.0 million in the 4Q14.
Thus, Adjusted EBITDA was R$43.0 million in the 1Q15, 82.7% higher than in the 4Q14, which
was R$23.5 million. Adjusted EBITDA margin was 36.5% in the 1Q15, against 26.9% in the 4Q14,
a growth of 950 basis points, even with lower sale revenue of surplus electric energy.
Investments (CAPEX)
Investments in the 1Q15 were R$24.7 million, against R$21.4 million in the 4Q14, related to
sustaining CAPEX.
1Q15 Results
7
Stake in MRS Logística
Mineração Usiminas holds a stake in the MRS Logística through its subsidiary UPL – Usiminas
Participações e Logística S.A.
MRS Logística is a concession that controls, operates and monitors the Brazilian Southeastern
Federal Railroad Network (Malha Sudoeste da Rede Ferroviária Federal). The company
operates in the railway transportation segment, connecting the states of Rio de Janeiro, Minas
Gerais and São Paulo, and its core business is transporting with integrated logistics of cargo in
general, such as iron ore, finished steel products, cement, bauxite, agricultural projects, pet
coke and containers.
MRS transported 38.0 million tons in the 1Q15, an increase of 5.1% over the same period of
2014. This result mainly reflected the higher iron ore flow, which increased 9.1% in the period.
There was also an increase in the transportation of steel products by 11.4%, agricultural
products by 8.3%, especially sugar and soybeans, and shipping containers by 23.0%, in
comparison with the 1Q14.
In relation to the 4Q14, MRS transported a 12.6% lower volume, due to the seasonality that
typically favors the transportation at the end of the year over the first quarter.
II)
STEEL
The World Steel Association - WSA forecasts that apparent steel consumption will reach 1.55
billion tons in 2015, an increase of 0.6% compared with 2014. For the advanced economies,
the expectation is for consumption stability. For the emerging economies, it forecasts a 2.8%
increase, driven by India, where consumption should increase 6.2%. China, the largest global
consumer, with 707.2 million tons, should reduce consumption by 0.5%, the first decrease
since 1995. Among the emerging countries, Brazil will have the worst performance. The
Brazilian Steel Institute - IABr forecasts a decline in the apparent consumption of 7.8% in
2015, with flat steel receding 6.0%.
In the 1Q15, the Brazilian flat steel market consumed 3.2 million tons, with 84% of the volume
supplied by local facilities and 16% by imports. Although import volume has not reduced in the
1Q15, the trend of a devaluated foreign exchange rate in 2015 should result in lower direct
and indirect steel imports.
Below are listed the main flat steel consuming segments and their behavior in the Brazilian
market during the 1Q15:
Automotive: Low economic activity together with high inflation, high interest rates and loss of
consumer confidence have caused the automotive industry to begin the year with poor results
and strong retraction of its main indicators. In the 1Q15, data from the National Federation of
Automobile Distributors - FENABRAVE accounted for a 31% decline in vehicles sales in relation
to the 4Q14, that was, in part, expected, since December registered strong purchasing
anticipation due to the end of the IPI tax cuts and the new rules of the PSI/FINAME from
January 2015 on. Automotive production was reduced by 13% compared with the 4Q14,
according to data from the Brazilian Automotive Manufacturers Entity - ANFAVEA.
Industrial: According to Tendências Consulting, a reduction of 13.8% is expected in the
investment rate in the 1Q15 in relation to the 4Q14, registering a decline in the last four
consecutive quarters. The Brazilian Machinery and Equipment Association - ABIMAQ will
concentrate its efforts over the year to increase exports of capital goods in order to reduce the
impact of the retraction in the domestic market.
White Goods: According to the Industrial Survey performed by the Industrial Research of
Brazilian Geography and Statistics Institute - IBGE, the Home Appliance segment registered a
decline of 23.6% in the accumulated production in 2015 in relation to the same period of the
previous year. The segment has been affected by the slower growth rate in the family income,
by the unemployment and by a more restrictive Brazilian economic policy. In the electro1Q15 Results
8
electronics segment, performance has also been poor, showing a decline of 8.8% in
production, considering the same basis of comparison.
Civil Construction: The civil construction market continues to be weak in the 1Q15, as a result
of of the poor economic performance, fiscal adjustments and low consumer confidence.
According to Tendências Consulting, production of typical inputs to civil construction is forecast
to fall 3.5% in the 1Q15 in relation to the 4Q14.
Distribution: According to the Steel Distributors National Association - INDA, flat steel sales in
the distribution network fell 19.4% in the 1Q15, against the 4Q14. Purchases had a smaller
decline, 8.1%, in comparison with the same period. Inventories remained stable at around 1.1
million tons, but the higher reduction in sales over the quarter caused inventories turnover to
increase to 3.3 times, considering March sales as the basis.
Production - Ipatinga and Cubatão Plants
In the 1Q15, crude steel production at the Ipatinga and Cubatão plants was 1.4 million tons,
stable in relation to the 4Q14.
Production (Crude Steel)
1Q15
4Q14
1Q14
Chg.
1Q15/4Q14
Ipatinga Mill
739
823
934
-10%
Cubatão Mill
640
574
718
11%
1,379
1,397
1,652
-1%
Thousand tons
Total
Sales
Total sales in the 1Q15 were 1.3 million tons of steel, stable in relation to those of 4Q14.
Domestic market sales accounted for 1.1 million tons, a 10.0% increase compared with the
4Q14. Export volume in the 1Q15 decreased 37.8% in relation to the 4Q14, totaling 150.6
thousand tons in the 1Q15. There was substantial market mix improvement, with sales volume
registering 88% in the domestic market and 12% in exports.
1,437
1,456
169
220
1,268
1,236
1T14
2T14
1,401
1,247
1,256
242
151
1,064
1,005
1,106
3T14
4T14
1T15
337
Domestic Market
1Q15 Results
Exports
9
The main export destinations are shown in the graph below:
1%
5% 2%
USA
6%
Argentina
7%
Mexico
45%
Taiwan
Venezuela
Chile
Others
34%
Sales Volume Breakdown
Thousand tons
Total Sales
1Q15
4Q14
Change
1Q15/4Q14
1Q14
1,256
100%
1,247
100%
1,437
100%
1%
Heavy Plates
287
23%
280
22%
279
19%
3%
Hot Rolled
418
33%
400
32%
517
36%
4%
Cold Rolled
312
25%
295
24%
377
26%
6%
Galvanized
214
17%
203
16%
215
15%
5%
7
1%
7
1%
26
2%
0%
19
1%
62
5%
23
2%
-69%
Processed Products
Slabs
Domestic Market
1,105
88%
1,005
81%
1,268
88%
10%
Heavy Plates
261
21%
232
19%
228
16%
12%
Hot Coils
341
27%
282
23%
465
32%
21%
Cold Coils
285
23%
268
21%
336
23%
6%
Galvanized
194
15%
183
15%
198
14%
6%
7
1%
7
1%
25
2%
-8%
19
1%
33
3%
17
1%
-42%
151
12%
242
19%
170
12%
-38%
Heavy Plates
27
2%
48
4%
51
4%
-45%
Hot Rolled
77
6%
118
9%
52
4%
-35%
Cold Rolled
27
2%
27
2%
41
3%
-1%
Galvanized
21
2%
20
2%
17
1%
2%
Processed Products
0
0%
0
0%
1
0%
-
Slabs
0
0%
29
2%
7
0%
-
Processed Products
Slabs
Exports
Comments on the Business Unit Results - Steel
In the 1Q15, net revenue in the Steel Unit was R$2.6 billion, 4.0% higher than in the 4Q14,
due to greater share of sales in the domestic market, whose volume grew 10.0% in relation to
the 4Q14. Also contributed to this result, the higher average sales price in the domestic
market by 0.5% and the better export product mix, both comparing the 1Q15 with the 4Q14,
and the Dollar appreciation of 12.8%, on average, in the period.
1Q15 Results
10
In the 1Q15, the cash cost per ton was higher by 5.0% due to the impact of the foreign
exchange rate devaluation of 12.8%, on average, in the period, which impacts around 40% of
total costs, and to higher energy costs. In the other way, in the 1Q15, COGS per ton was 2.7%
lower compared with the 4Q14, due to the sales mix.
Sales expenses were R$30.2 million in the 1Q15, 32.3% lower than those in the 4Q14, mainly
due to lower export volume and to lower provisions for doubtful accounts. General and
administrative expenses totaled R$89.1 million, against R$100.7 million in the 4Q14, a decline
of 15.6%, mainly due to the reduction of 38.4% in third parties’ services. Other operating
expenses and income totaled an expense of R$33.0 million in the 1Q15, against an income of
R$79.0 million in the 4Q14, mainly as a result of lower sale revenue of surplus electric energy,
which totaled R$18.8 million in the 1Q15, against R$68.3 million in the 4Q14, and of lower
contribution of the Reintegra Program in R$4.4 million in the period. In this manner, net
operating expenses totaled R$152.3 million, higher by R$86.0 million than those in the 4Q14.
Thus, Adjusted EBITDA in the 1Q15 was R$337.2 million, 25.6% higher than that in the 4Q14,
which was R$268.4 million. Adjusted EBITDA margin reached 13.2% in the 1Q15, against 10.9%
in the 4Q14, an increase of 230 basis points.
Investments (CAPEX)
In the 1Q15, investments totaled R$197.6 million, against R$297.9 million in the 4Q14, mainly
in function of the seasonality of the period. The main investments were with sustaining CAPEX
and the revamping of Coke Plant II in Ipatinga. The Coke Plant revamping will increase own coke
production and is forecast to start up in the 2Q15.
III)
STEEL TRANSFORMATION
Soluções Usiminas – SU
Soluções Usiminas operates in the distribution, services and small-diameter tubes markets
nationwide, offering its customers high-value added products. It serves several economic
segments, such as automotive, autoparts, civil construction, distribution, electro-electronics,
machinery and equipment and household appliances, among others.
In the 1Q15, sales of the Distribution, Services and Tubes Business Units were responsible for
53%, 40% and 7%, respectively, of the sales volume.
Comments on the Business Unit Results – Steel Processing
Net revenue in the 1Q15 totaled R$539.7 million, 5.9% lower than in the 4Q14, due to lower
sale and services volume.
In the 1Q15, cost of goods sold was R$526.5 million, 8.1% lower compared with the 4Q14,
which was R$572.9 million, as a result of lower sale and services volume, as well as in function
of operational improvements.
Operating expenses were R$24.4 million in the 1Q15, against R$16.9 million in the 4Q14, a
44.4% increase, mainly in function of the sale of an operational asset in the amount of R$23.9
million occurred in the 4Q14.
Thus, in the 1Q15, Adjusted EBITDA was a negative R$3.6 million, against a negative R$5.7
million in the 4Q14. Adjusted EBITDA margin was -0.7% in the 1Q15, against -1.0% in the
4Q14.
1Q15 Results
11
IV)
CAPITAL GOODS
Usiminas Mecânica S.A.
Usiminas Mecânica is a capital goods company in Brazil which operates in the following
business areas: steel structures, shipbuilding and offshore, oil and gas, industrial equipment
and assembly and foundry and railcars.
Main Contracts
In the 1Q15, amendment contracts with Vale and Usiminas were signed for complementary
services, allowing that its book of orders be kept in a level above R$800.0 million, even though
in a scenario of lack of investments in the country.
Comments on the Business Unit Results – Capital Goods
In the 1Q15, net revenue was R$210.8 million, 10.8% higher than in the 4Q14, which was
R$190.2 million, due to higher volume supplied by the assembly, equipment and railcar
segments.
Gross profit was R$25.7 million in the 1Q15, 81.7% higher than that of the 4Q14, due to
higher profitability of its projects portfolio in this period due to productivity gains and costs and
expenses reduction.
Thus, Adjusted EBITDA in the 1Q15 totaled R$14.2 million, against R$4.5 million in the 4Q14.
Adjusted EBITDA margin in the 1Q15 was 6.7%, against 2.4% in the 4Q14, a growth of 430
basis points.
Events Subsequent to the End of the Quarter
Extraordinary Shareholders’ Meeting (ESM): The ESM was held on 04/06/15 and elected
the Members of the Board and their substitutes for a mandate until the Ordinary Shareholders’
Meeting of the Company in 2016, as well as, the Chairman of the Board. Such documents are
available
on
the
websites
of
CVM
(www.cvm.gov.br),
BM&FBOVESPA
(www.bmfbovespa.com.br) and the Company (www.usiminas.com/ri).
Annual Shareholders Meeting (ASM): At 1:00PM on 04/28/15, the ASM of Usiminas will be
held to deliberate on the following issues: (1) “tomar as contas dos administradores”, analyze,
discuss and vote for the financial statements and the annual report referring to the fiscal year
ending on 12/31/14; (2) proposal of the net profit application accounted for in the fiscal year
of 2014 and approval of the capital budget for the fiscal year of 2015; (3) proposal by the
Executive Board for dividend payment and definition of the date of the respective payment; (4)
definition of the global compensation amount of the Management for the period up to the 2016
ASM of the Company; (5) election of the members of the Fiscal Council and their substitutes
for a mandate up to the 2016 ASM of the Company, as well as, definition of their respective
compensation. The documents are available to shareholders at the Company headquarters and
on the websites of CVM (www.cvm.gov.br), BM&FBOVESPA (www.bmfbovespa.com.br) and the
Company itself (www.usiminas.com/ri).
1Q15 Results
12
Highlight
Usiminas is one of the finalist in the automotive industry award: Usiminas is one of the
finalists in the REI Award (Recognition of Excellence and Innovation), hosted by Automotive
Business magazine. The objective of the award is to distinguish performance and achievement
of professionals and companies in the automotive supply chain. Usiminas is competing in the
material suplier category, with the case “Development of Dual Phase 1000 steel”, which stands
out as an ultra-high strength steel, whose application is directly linked to safety and weight
reduction of the vehicle. The result will be released in June.
Capital Markets
Usiminas Performance Summary - BM&FBOVESPA (USIM5)
1Q15
Number of Deals
Daily Average
Traded - thousand shares
Daily Average
Financial Volume - R$ million
Daily Average
Maximum
Minimum
Closing
Market Capitalization - R$ million
488,983
8,016
523,965
8,590
2,237
37
5.19
3.35
4.97
5,039
4Q14
738,942
11,918
423,604
6,832
2,368
38
6.85
4.32
5.05
5,120
Change
1Q15/4Q14
-34%
-33%
24%
26%
-6%
-3%
-24%
-22%
-2%
-2%
1Q14
868,117
13,780
438,819
6,965
4,897
78
14.08
8.52
10.23
10,371
Change
1Q15/1Q14
-44%
-42%
19%
23%
-54%
-53%
-63%
-61%
-51%
-51%
Performance on the BM&F BOVESPA
Usiminas’ Common shares (USIM3) closed the 1Q15 quoted at R$21.50 and its Preferred
shares (USIM5) at R$4.97. In the quarter, USIM5 depreciated 1.6% and USIM3 appreciated
74.8%. In the same period, the IBOVESPA index appreciated 2.3%.
Foreign Stock Markets
OTC – New York
Usiminas has American Depositary Receipts (ADRs) traded on the over-the-counter market:
USDMY is backed by common shares and USNZY backed by Class A preferred shares. On
03/31/15, greater liquidity USNZY ADRs were quoted at US$1.58 and depreciated 15.1% in
the quarter.
Latibex – Madrid
Usiminas’ shares are traded on the LATIBEX – the Madrid Stock Exchange: XUSI as preferred
shares and XUSIO as common shares. On 03/31/15, XUSI closed quoted at €1.48,
depreciating 8.1% in the quarter. XUSIO shares closed quoted at €6.26, an appreciation of
61.0% in the period.
1Q15 Results
13
For further information:
GERÊNCIA GERAL DE RELAÇÕES COM INVESTIDORES
Cristina Morgan C. Drumond
[email protected] 31 3499-8772
Leonardo Karam Rosa
[email protected]
31 3499-8550
Diogo Dias Gonçalves
[email protected]
31 3499-8710
Renata Costa Couto
[email protected]
31 3499-8619
Press: please contact through e-mail [email protected]
Visit the Investor Relations site: www.usiminas.com/ri
or access on your mobile phone: m.usiminas.com/ri
1T15 Conference Call Results - Date 04/23/2015
In Portuguese - Simultaneous Translation into English
Brasília time: at 11:00 a.m.
New York time: at 10:00 a.m.
Dial-in Numbers:
Dial-in Numbers:
Brazil: (55 11) 3193-1001 / 2820-4001
USA: (1 786) 924-6977
Audio replay available at (55 11) 3193-1012
Pincode for replay: 2135598# - Portuguese
Pincode for replay: 1905865# - English
Audio of the conference call will be transmitted live via Internet
See the slide presentation on our website: www.usiminas.com/ri
Statements contained in this release, relative to the business outlook of the Company, forecasts of operating and financial income and
references to growth prospects are mere forecasts and were based on the expectations of Management in relation to future
performance. These expectations are highly dependent on market conduct, the economic situation in Brazil, its industry and
international markets and, therefore, are subject to change.
1Q15 Results
14
Balance Sheet - Assets - Consolidated | IFRS - R$ thousand
Assets
Current Assets
Cash and Cash Equivalents
Trade Accounts Receivable
Taxes Recoverable
Inventories
Advances to suppliers
Financial Instruments
Other Securities Receivables
31-Mar-15
31-Dec-14
8,542,517
2,621,043
1,380,296
383,123
3,910,490
22,120
72,225
153,220
8,245,211
2,851,903
1,246,694
358,418
3,516,751
17,848
65,392
188,205
Long-Term Receivable
Deferred Income Tax & Social Contribution
Deposits at Law
Accounts Receiv. Affiliated Companies
Taxes Recoverable
Financial Instruments
Others
Investments
Property, Plant and Equipment
Intangible
22,441,466
3,426,528
2,134,632
584,473
4,722
90,810
386,038
225,853
1,155,951
15,492,069
2,366,918
22,238,851
3,179,812
2,018,129
566,408
22,383
95,835
252,027
225,030
1,145,787
15,535,573
2,377,679
Total Assets
30,983,983
30,484,062
Non-Current Assets
31-Mar-14
9,241,989
2,913,979
1,736,898
305,896
4,068,636
13,052
49,372
154,156
21,849,181
2,768,902
1,851,482
565,200
21,268
109,654
39,832
181,466
1,201,463
15,481,317
2,397,499
31,091,170
Balance Sheet - Liabilities and Shareholders' Equity - Consolidated | IFRS - R$ thousand
Liabilities and Shareholders' Equity
31-Mar-15
31-Dec-14
31-Mar-14
Current Liabilities
Loans and Financing and Taxes Payable in Installments
Suppliers, Subcontractors and Freight
Wages and Social Charges
Taxes and Taxes Payables
Related Companies
Financial Instruments
Dividends Payable
Customers Advances
Others
5,048,230
1,731,091
2,235,161
280,196
133,509
241,783
135,708
38,368
101,687
150,727
4,769,426
1,713,451
1,948,744
280,284
116,949
338,357
94,045
30,937
110,179
136,480
4,921,801
1,410,723
2,330,740
259,912
163,670
144,520
54,141
1,121
133,699
423,275
Long-Term Liabilities
Loans and Financing and Taxes Payable in Installments
Actuarial Liability
Provision for Legal Liabilities
Financial Instruments
Environmental Protection Provision
Others
7,445,663
5,417,692
1,202,560
497,117
205,489
89,372
33,433
6,953,021
4,988,296
1,187,788
475,859
182,216
85,143
33,719
7,142,870
5,247,038
1,246,574
482,764
50,134
78,643
37,717
Shareholders' Equity
Capital
Hedge Accounting
Reserves & Revenues from Fiscal Year
Non-controlling shareholders participation
Total Liabilities and Shareholders' Equity
1Q15 Results
18,490,090
12,150,000
4,294,558
2,045,532
18,761,615
12,150,000
4,569,664
2,041,951
19,026,499
12,150,000
0
4,717,273
2,159,226
30,983,983
30,484,062
31,091,170
15
Income Statement - Consolidated | IFRS
R$ thousand
Net Revenues
Domestic Market
Exports
COGS
Gross Profit
Gross Margin
Operating Income (Expenses)
Selling Expenses
General and Administrative
Other Operating Income (expenses)
Reintegra Program (Brazilian Government Export Benefit)
Net Cost of Actuarial Obligations
Provision for Legal Liabilities
Result of the Non Operating Asset Sale/Write-Off
Result of the Sale of the Surplus Electric Energy
Other Operating Income (Expenses), Net
EBIT
EBIT Margin
Financial Result
Financial Income
Financial Expenses
Equity in the Results of Associate and Subsidiary Companies
Operating Profit (Loss)
Income Tax / Social Contribution
Net Income (Loss)
Net Margin
Attributable:
Shareholders
Minority Shareholders
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)
Adjusted EBITDA - Joint Subsidiary Companies proportional EBITDA
Adjusted EBITDA Margin
Depreciation and Amortization
1Q15 Results
1Q15
4Q14
1Q14
Chg.
1Q15/4Q14
2,680,422
2,349,706
330,716
(2,436,800)
243,622
9.1%
(208,144)
(51,154)
(122,471)
(34,519)
7,525
(3,954)
(31,284)
373
27,865
(35,044)
35,478
1.3%
(360,900)
368,863
(729,763)
11,971
(313,451)
78,071
(235,380)
-8.8%
2,585,195
2,160,261
424,934
(2,527,044)
58,151
2.2%
(101,130)
(72,235)
(134,241)
105,346
11,920
(1,276)
(3,831)
24,814
90,429
(16,710)
(42,979)
-1.7%
(213,761)
200,542
(414,303)
44,147
(212,593)
95,263
(117,330)
-4.5%
3,142,318
2,722,815
419,503
(2,622,623)
519,695
16.5%
(183,207)
(83,594)
(128,161)
28,548
(1,289)
(8,187)
3,607
74,973
(40,556)
336,488
10.7%
(18,057)
47,178
(65,235)
44,284
362,715
(141,087)
221,628
7.1%
4%
9%
-22%
-4%
319%
+690 b.p
106%
-29%
-9%
-37%
210%
717%
-98%
-69%
110%
-183%
+300 b.p
69%
84%
76%
-73%
47%
-18%
101%
+420 b.p
(247,460)
12,080
353,879
13.2%
379,534
14.2%
306,430
(143,382)
26,052
290,941
11.3%
301,796
11.7%
289,773
184,614
37,014
647,860
20.6%
655,385
20.9%
267,088
73%
-54%
22%
+190 b.p
26%
+250 b.p
6%
16
Cash Flow - Consolidated | IFRS
R$ thousand
Operating Activities Cash Flow
Net Income (Loss) in the Period
Financial Expenses and Monetary Var. / Net Exchge Var.
Interest Expenses
Depreciation and Amortization
Losses/(Gains) on Sale of Property, Plant and Equipment
Equity in the Results of Subsidiaries/Associated Companies
Difered Income Tax and Social Contribution
Constitution (Reversal) of Provisions
Actuarial Gains and losses
Stock Option Plan
Total
(Increase)/Decrease of Assets
Accounts Receivables Customer
Inventories
Recovery of Taxes
Judicial Deposits
Accounts Receiv. Affiliated Companies
Others
Total
Increase (Decrease) of Liabilities
Suppliers, Contractors and Freights
Amounts Owed to Affiliated Companies
Customers Advances
Tax Payable
Actuarial Liability Payments
Others
Total
Cash Generated from Operating Activities
1Q15
4Q14
(235,380)
538,807
17,148
306,430
(446)
(11,971)
(97,727)
23,824
4,054
2,049
546,788
(117,330)
222,841
42,135
289,773
(24,911)
(44,147)
(43,729)
36,958
1,276
(3,298)
359,568
(132,178)
(381,716)
(54,291)
(18,184)
17,661
24,617
(544,091)
253,204
182,524
(27,760)
(6,145)
(437)
1,931
403,317
286,417
(96,574)
(8,492)
8,576
(38,649)
19,999
171,277
(38,665)
197,509
(68,847)
(34,259)
(65,389)
(146,919)
(156,570)
173,974
606,315
(126,019)
24,899
(124,805)
(4,239)
72,854
477,271
(207,610)
0
0
(230,063)
1,566
0
1,279
(2,247)
197,443
10,486
(59,754)
(336,794)
42,402
(16,578)
83,723
(6,330)
(437,075)
(85,402)
356,819
(435,339)
(286)
18,074
(1,068)
4,327
(276,624)
(58,398)
(15,373)
(73,027)
Net Cash Generated from (Employed on) Financial Activities
(61,800)
(419,095)
Exchange Variation on Cash and Cash Equivalents
(12,449)
19,974
(438,470)
(7,252)
Cash and Cash Equivalents at the Beginning of the Period
2,109,812
2,117,064
Cash and Cash Equivalents at the End of The Period
1,671,342
2,109,812
RECONCILIATION WITH BALANCE SHEET
Cash and Cash Equivalents at the Beginning of the Period
Marketable Securities at the Beginning of the Period
Cash and Cash Equivalents at the Beginning of the Period
Net Increase (Decrease) of Cash and Cash Equivalentes
Net Increase (Decrease) of Marketable Securities
2,109,812
742,091
2,851,903
(438,470)
207,610
2,117,064
939,534
3,056,598
(7,252)
(197,443)
Cash and Cash Equivalents at the End of the Period
Marketable Securities at the End of the Period
Cash and Cash Equivalents at the End of the Period
1,671,342
949,701
2,621,043
2,109,812
742,091
2,851,903
Interest Paid
Income Tax and Social Contribution
Net Cash Generated from Operating Activities
Investments activities cash flow
Marketable Securities
Amount Received on Disposal (Acquisition) of Investments
Amount Paid on the Acquisition of Investments
Fixed Asset Acquisition
Fixed Asset Sale Receipt
Additions to / Payments of Intangible Assets
Dividends Received
Purchase of Software
Net Cash Employed on Investments Activities
Financial Activities Cash Flow
Inflow of Loans, Financing and Debentures
Payment of Loans, Financ. & Debent.
Payment of Taxes Installments
Swap Operations Liquidations
Dividends and Interest on Capital
Net Increase (Decrease) of Cash and Cash Equivalents
1Q15 Results
17