Non-Deal Road Show with J.P. Morgan. MAHLE Metal Leve S.A. April 8-11, MAHLE

Transcription

1 Non-Deal Road Show with J.P. Morgan MAHLE Metal Leve S.A. April 8-11,

2 Important Notice The material that follows is a confidential presentation of general background information about MAHLE Metal Leve S.A. and its subsidiaries (collectively, MAHLE ) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. This confidential presentation may contain certain forward-looking statements and information relating to MAHLE that reflect the current views and/or expectations of MAHLE and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like anticipate, believe, estimate, expect, forecast, plan, predict, project, target or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation, including: market acceptance of MAHLE s products or services; volatility in the autoparts and automotive industry, the Brazilian economy and the financial markets; changes in legislation, accounting standards, taxation and government policies affecting the autoparts and automotive sector; ability to stay abreast of changes in technology; ability to continuously introduce competitive new products and services, while staying competitive in existing ones. In no event, neither MAHLE nor any of its affiliates, directors, officers, agents or employees, nor if applicable the selling shareholder, placement agents or underwriters, shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. All forward-looking statements in this presentation are based on information and data available as of the date they were made, and MAHLE undertakes no obligation to update them in light of new information or future developments. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MAHLE s prior written consent. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the United States Securities Act of 1933, as amended. Any offering of securities to be made in the United States will be made solely by means of a confidential offering circular that may be obtained from the placement agents or the underwriters. Such confidential offering circular will contain detailed information about MAHLE and its business and financial results, as well as its financial statements. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. 2

3 Agenda Company s Presentation and Results for the Fiscal Year The MAHLE Group Worldwide 2. The MAHLE Metal Leve S.A. Group 3. Market and Technology 4. Financials (Results for the Fiscal Year 2012) 5. Capital Market 3

4 The MAHLE Group Worldwide 4

5 The MAHLE Group Worldwide The MAHLE Group is a global leader in engine components and filters Group Highlights Revenues (EUR bn) 5,1 5,0 5,3 6,0 2,4 2,8 3,1 3,3 3,8 4,1 4,3 3, German group founded in 1920 and headquartered in Stuttgart Global Footprint One of the 3 major global suppliers of piston systems, cylinder components, valve train systems, as well as management and filtration of air and fluid systems Global leader in partnerships for engine development Over 100 production units on 4 continents 8 technology centers Close to 49,000 employees MAHLE Group Presence MAHLE Group s Technology Centers 5

6 The MAHLE Group Worldwide Locations Canada Niagra-on-the-Lake Tilbury USA Ann Arbor (MI) Atlantic (IA) Caldwell (OH) Churubusco (IN) Farmington Hills/Detroit (MI) Franklin (KY) Holland (MI) Manchester (MO) McConnelsville (OH) Morristown (TN) Murfreesboro (TN) Muskegon (MI) Novi/Detroit (MI) Olive Branch (MS) Russellville (AR) St. Johns (MI) Trumbull (CT) Winterset (IA) Argentina El talar/ Buenos Aires Rafaela Mexico Aguascalientes Naucalpan Puebla Ramos Arizpe Santa Catarina/ Monterrey Brazil Indaiatuba Itajubá Limeira Mogi Guaçu São B. Campo Jundiaí Queimados Great Britain Bathgate Kilmarnock Northampton Rugby Salisbury Telford Wellingborough Worcester Spain Alcalá de Henares/ Madrid Vilanova i la Geltrú Portugal Murtede Switzerland Grenchen Italy La Loggia Potenza Saluzzo Trento Volvera Austria Rankweil St. Michael ob Bleiburg Vöcklabruck Wolfsberg Poland Krotoszyn Germany Albershausen Alzenau Barsinghausen Eislingen/Fils Fellbach Flintbek Gaildorf Hamburg Leibertingen Lorch Markgröningen Öhringen Plettenberg Roßwein Rottweil Schorndorf Stuttgart Wölfersheim Wustermark Zell im Wiesental Turkey Krotoszyn Romania Timisoara Slovakia Dolný Kubín India Gurgaon Parwanoo Pithampur Pune Chennai China Changchun Chongqing Guangzhou Macheng Nanjing Shanghai Tianjin Yingkou Thailand Bangkok Samutprakarn Korea Hwasung Ulsan Philippines Cavite Japan Fukushima Ibaraki Kawagoe Okegawa Tochigi Tokyo Tsuruoka Yamagata Australia Laverton North/ Melbourne 6

7 The MAHLE Group Worldwide Integration of the Behr Group In January, 2011, the MAHLE Group increased its stock ownership to 36.85% in the Behr Group, with a call option in order to takeover (over 50% of the capital stock) of the Behr Group for January, 2013 The Behr Group is specialized in components for thermal management of vehicles and air conditioning systems. With over 17 thousand collaborators, the Behr Group sales in 2011 were of around EUR 3.7 bn The acquisition of the Behr Group will permit to the MAHLE Group extend its portfolio of products and services with thermal management systems for engines in commercial and light vehicles The majority acquisition of Behr by MAHLE, scheduled for early next year, has been delayed. Behr Management informed MAHLE about investigation proceedings that had been initiated by European Commission in Stuttgart, Germany and local Department of Justice in USA against manufacturers of thermal systems for automobiles for suspected competition-restricting practice. MAHLE as a Company is in no way affected by this inspection The aim of acquiring the majority holding in Behr and of integrating Behr fully into the MAHLE Group is ongoing 7

8 8

9 A history of successful acquisitions and high growth Acquisitions 96 Acqusition of the control of Metal Leve S.A. by MAHLE Acquisition of 3 business units from Siemens - VDO 07 Acquisition of Dana s engine components business Acquisition of Edival in Argentina (valve manufacturing plant) 1,9 08 Joint Venture with MAHLE HIRSCHVOGEL FORJAS S.A. in Queimados, RJ 2,1 10 Acqusition of the piston ring business from MAHLE Componentes de Motores by MAHLE Metal Leve 2,0 2,3 1,7 1,7 1,7 1,7 Other Events 50 Foundation of METAL LEVE, the 1 st piston manufacturer in Brazil 98 Incorporation of the piston manufacturing plant in Mogi Guaçu, SP 71 Initial public offering at BM&F Bovespa 0,7 0,9 1,0 01 Opening of the filter manufacturing plant in Mogi Guaçu, SP 1,4 05 Opening of the bushing manufacturing plant in Itajubá, MG 08 Opening of the Technology Center in Jundiaí, SP 11 MAHLE completes its US$195 mm follo w-on offering at BM&FBovespa Net Revenues (R$ bn) 9

10 Locations in Brazil MOGI-GUAÇU Headquarters Pistons, Pins, Cylinder Liners, Camshafts, Connecting Rods and Filters ITAJUBÁ Piston Rings and Bushings LIMEIRA Distribution Center QUEIMADOS Connecting Rods and other products forged JUNDIAÍ Tech Center INDAIATUBA Sinter parts 6 Plants SÃO PAULO City Office (Investor Relations) Distribution Center Tech Center City Office SÃO BERNARDO DO CAMPO Bearings 10

11 Locations in Argentina RAFAELA Valves / Valve guides / Valve Seats BUENOS AIRES Distribution Center 1 1 Plant Distribution Center 11

12 Diversified presence in markets and products (2012) Market Breakdown Product Breakdown 9,1% 27,1% Engine Type Breakdown 33% 38% 23,4% 29% Domestic OEM Exports OEM Aftermarket 6,0% 13,9% 7,4% 13,1% Pistons / Kits Rings Bearings Valve Train Liners / Ring Inserts Other engine components Filters 12

13 Unrivaled Portfolio of Components Plastic cylinder head cover module Valve camshaft Oil filter module Aluminum cylinder head¹ Oil-mist separator with control valve Air filter module Tappet (cam follower, rocker arm)¹ Tumble flap¹ Valve guide Exhaust gas recirculation valve¹ Valve Valve seat insert Aluminum engine block¹ Turbocharger¹ Intake manifold (charged air distribution) Blow-by induction¹ Fuel filter Piston ring Cylinder liner Piston Connecting rod 13 Piston pin, Piston pin circlip Note: 1 Products not manufactured in Brazil Bearing Controlled Oil pump¹

14 Market Overview 14

15 LV Production x MAHLE OE Sales to LV Customers (Feb Actual) Source: Anfavea/ Adefa/ Company 15

16 MH Vehicle Production x MAHLE OE Sales to MH Customers (Feb Actual) Source: Anfavea/ Adefa/ Company 16

17 Vehicle Production Europe x MAHLE Sales (Feb Actual) Source: IHS/ Company 17

18 Vehicle Production Nafta x MAHLE Sales (Feb Actual) Source: IHS/ Company 18

19 Domestic and Export Vehicle Production / Actual Feb 13 x Actual Feb 12 Source: Anfavea/ Adefa/ IHS 19

20 Customer Investments (I) Automaker (City/State) SOP* Qty th/year Plant R$ mio Eur mio Last Status Light Vehicle VW All 2016 Expansion R$ Confirmed investiment Fiat Betim - MG Expansion R$ Confirmed investiment Fiat Goiana - PE New R$ Building construction started PSA (Including Engines) Resende - RJ Expansion R$ Confirmed investiment VW Taubaté - SP Expansion R$ Confirmed investiment Nissan (Vehicle & Engine) Resende - RJ New R$ Building construction started Ford Camaçari - BA Expansion R$ Confirmed investiment Great Wall Santa Catarina New R$ Confirmed investiment Mitsubishi Catalão - GO Expansion R$ Confirmed investiment Toyota (Engines) Porto Feliz - SP New R$ Announced on Aug/12 Renault (Including Engines) SJP² - PR 2015 Expansion R$ Toyota Sorocaba - SP New R$ The production of Etios already started Hyundai Piracicaba - SP New R$ The production of HB20 already started JAC Camaçari - BA New R$ Inaugurated the foundation stone Chery Jacareí - SP New R$ Building construction started Chery (Engines) Jacareí - SP TBD** TBD** New TBD** TBD** Announced on Apr/13 Changan/SsangYong Linhares - ES TBD** New TBD** TBD** Waiting the New automotive Regime rules Changan/Haima(Districar) Anápolis - GO 2015 TBD** New TBD** TBD** Waiting the New automotive Regime rules Foton Camaçari - BA 2013 TBD** New TBD** TBD** Announced on Sep/12 Ford (Engines) Taubaté - SP 2014 TBD** Expansion R$ Confirmed investiment Fiat (Engines) Goiana - PE 2015 TBD** New R$ Announced on Dec/12 BMW Araquari - RS New R$ Announced on Oct/12 Ford (Engines) Camaçari - BA New R$ Start of production announced to 1st Sem 14 Nissan(Development) SP or RJ 2014 New R$ TBD GM Joinville - SC New R$ Building construction finished. SOP Jan/13 CAOA Anápolis - GO 2013 TBD** Expansion R$ CN Auto(Hafei) Linhares - ES 2014 TBD** New R$ Confirmed investiment Honda Sumaré - SP 2014 TBD** Expansion R$ Announced on Oct/12 Suzuki Itumbiara - GO New R$ Building construction started 20

21 Customer Investments (II) Heavy 196 R$ MBB SBC¹ - SP Expansion R$ Confirmed investiment MAN Resende - RJ 2012 TBD** Expansion R$ Started in 2012 ultil 2016 Volvo Curitiba - PR 2015 TBD** Expansion R$ Shacman Caruaru - PE New R$ Waiting the New automotive Regime rules Ford SBC¹ - SP 2013 TBD** Expansion R$ Foton Group Camaçari - BA New R$ Announced on Sep/12 MBB Juíz de Fora - MG New R$ Already in Production Navistar Canoas -RS New R$ Waiting the New automotive Regime rules Paccar/ DAF Ponta Grossa - PR New R$ Start of production announced to 1st Sem 13 Sinotruck Lages - SC TBD** 5 New R$ Waiting the New automotive Regime rules Foton Aumark TBD - Brasil New R$ Waiting the New automotive Regime rules Shiyan Yulihong Camaquã - RS TBD** 5 New R$ Waiting the New automotive Regime rules Iveco Sete lagoas - MG 2014 TBD** Expansion R$ To produce "Guarani" Comil Lorena - SP New R$ Land leveling started Iveco Sete lagoas - MG 2014 New R$ 9 4 Agrale Caxias do Sul 2013 TBD** Expansion R$ Navistar(Development) Jaguariuna - SP 2013 New R$ 4 2 Confirmed investiment Agricultural/ Industrial J.Deere Indaiatuba - SP 2013 TBD** New R$ Land leveling started Caterpillar Campo Largo - PR 2012 TBD** New R$ Already in Production Hyundai Heavy Ind. Itatiaia - RJ New R$ Start of production confirmed to Mar/13 XCMG Pouso Alegre - MG 2012 New TBD** TBD** Sany Jacareí - SP 2013 New TBD** TBD** CNH Montes Claros - MG2014 TBD** New TBD** TBD** TBD AGCO Argentina ,5 Expansion R$ TBD Mahindra Dois Irmãos- RS 2013 New TBD** TBD** John Deere Rosario - AR TBD** TBD** Expansion TBD** TBD** TBD Volvo CE/SDLG Pederneiras - SP New R$ Confirmed investiment LS Mtron Garuva - SC New R$ Start of production announced to 1st Sem 13 Caterpillar Piracicaba - SP TBD** TBD** Expansion R$ 20 9 Confirmed investiment KMW Santa Maria - RS 2013 TBD** New TBD** TBD** Military Total R$

22 Brazil OEM Vehicle Production Plants Location Mahindra - Manaus Ford - Camaçari JAC Camaçari (2014) Foton Camaçari (2017) Fiat Goiana (2014) Shacman Caruaru (2013) Currently 27 Plants (19 LV + 08 MH) Future 11 Plants (06 LV + 05 MH) Total 38 Plants (25 LV + 13 MH) Currently 22 Brands (15 LV + 07MH) Future 09 Brands (04 LV + 05MH) Total 31 Brands (19 LV + 12 MH) CAOA Anápolis Mitsubishi - Catalão Suzuki Itumbiara (2013) Honda - Sumaré Toyota Sorocaba Toyota Indaiatuba Hyundai - Piracicaba Sinotruk Lages (TBD) BMW Araquari (2014) GM - Gravataí Agrale Caxias do Sul (LV+MH) Shiyan Yunlihong Camaquã (TBD) Fiat - Betim Iveco Sete Lagoas Mercedes Juiz de Fora PSA Porto Real R/N Resende (2014) MAN Resende GM SJC VW Taubaté Chery Jacareí (2013) Ford SBC (LV+MH) Scania SBC VW SBC R/N SJP GM SCS VW SJP Mercedes - SBC Volvo Curitiba DAF/Paccar Ponta Grossa (2013) LV Light Vehicle MH Medium/Heavy Vehicle TBD To Be Defined SBC São Bernardo do Campo SJC São José dos Campos SJP São José dos Pinhais SCS São Caetano do Sul 22

23 Government measures in Brazil related to Automotive Industry - Main impacts Bigger Brazil Plan for the new industrial policy in Brazil focused on stimulating innovation and domestic production to boost the competitiveness of the Brazilian industry First Phase announced in August 2011 Reintegra program (a special tax recovery regime for exporting companies), which entitled the Company until December 2012 was extended for 1 (one) year until December 31, 2013 to a tax credit of 3% on exports (net of social contributions) Second Phase announced in early April This phase comprises the new Brazilian automotive regime: Mainly tax measures (elimination of employer pension contributions (social charges) of 20% on the payroll changed for payroll taxes with a flat 1% tax on gross domestic revenue, excluding exports The Program was regulated in October, called INOVAR-AUTO and will be described in next slides A series of measures in May 2012 for the automotive industry includes financial measures (mainly increase in the volume of loans and cut in interest rates) and tax measures (reduction in IPI rate postponed to December 31,2012) In June 2012 PAC Equipment Program, that is the expansion of the Growth Acceleration Program (PAC) through government purchases, and in mid-august 2012 the National Logistics Plan in highways and railroads The program PSI4, announced in the end of August 2012, will be maintained in Only there will be slight increase in rates before the 2,5% a year today, to 3% in the first half and 4% in the second. Agriculture in this period prescribed, are at 3.5% IPI rate reduction in force until Dec/2013 (e.g. light vehicles 1.0L the IPI rate was 0% from May to December 2012 and will be 2% in 2013) 23

24 Automotive Regime INOVAR-AUTO The Program INOVAR-AUTO announced in early October new rules to offset 30% increase on IPI rate Mandatory Requirements until 2017 Fuel Efficiency (reduction) Light Vehicle Light Vehicle Importing companies¹ 12% 12% 15.4% (-1% IPI) 15.4% (-1% IPI) Trucks/ Chassis ¹ Limited to 4.800/ year, ² Limited to 50% of new plant capacity during 2 years maximum Qualification 18.8% (-2% IPI) 18.8% (-2% IPI) Production Steps 8 of of 14/ 7 of 11 Requirements Light Vehicle Trucks/ Chassis Incentive (+2 pp) Innovation (R&D) X X X Eng. X X X Labeling X * Including Importing companies (light vehicles) limited to veh./year 24

25 Automotive Regime INOVAR-AUTO Steps Steps Inovation 0,15% 0,30% 0,50% 0,50% 0,50% Eng./ TBI* 0,50% 0,75% 1,00% 1,00% 1,00% Pass Car 6 of 12 7 of 12 7 of 12 8 of 12 8 of 12 Production trucks 8 of 14 9 of 14 9 of of of 14 Steps Chassis 5 of 11 6 of 11 6 of 11 7 of 11 7 of 11 Pass Car 1,30 1,25 1,15 1,10 1,00 Factor Trucks¹/Chassis 1,30 1,25 1,15 1,10 1,00 PV** local Trucks² 1,00 0,95 0,90 0,85 0,85 Labeling 36% 49% 64% 81% 100% Trucks¹ = Heavy and Semi Heavy Trucks² = Light and Medium * Technology Basic Industrial ** Purchase Value More spends with Inovation and Eng./TBI can be add extra IPI discount: 2,00% in Inovation -1% IPI 0,75% - 2,75% in Eng./TBI -1% IPI Increase of local content To purchase in Mercosur the same value supplies or tooling as the IPI increase Estimated purchase value increase in Mercosur 30% 25

26 Financials 26

27 Net sales revenue and margins R$ million % 38% 29% % 39% 32% Domestic OEM Exports OEM (*) takes into account an adjustment for the provision for losses on fixed and intangible assets ( Impairment ). Aftermarket 27

28 Financial statements R$ million Income statement 2012 % 2011 % Net sales revenue 2.228, ,8 Cost of goods sold (1.638,2) (1.682,6) Gross income 590,6 26,5 554,1 24,8 Selling expenses (152,2) 6,8 (147,3) 6,6 General and administrative expenses (101,4) 4,5 (89,8) 4,0 Tech and product development expenses (67,4) 3,0 (72,8) 3,3 Other operating income (expenses) 0,1 0,0 0,2 0,0 Financial income (expenses), net (24,0) 1,1 6,3 0,3 Operating income 245,7 11,0 250,7 11,2 Net income 179,2 8,0 188,7 8,4 EBITDA 381,2 17,1 374,5 16,7 EBITDA margin 17,1% 16,7% Adjusted EBITDA margin 17,3% 18,0% Assets 2012 % 2011 % Current assets 925,1 39, ,9 43,9 Cash and banks 136,3 5,8 342,2 13,5 Trade accounts receivable 384,8 16,4 349,2 13,7 Inventories 302,6 12,9 331,4 13,0 Other assets 101,4 4,3 93,0 3,7 Long-term assets 35,4 1,5 44,2 1,7 Fixed assets 1.387,3 59, ,3 54,3 Investments 0,4 0,0 0,4 0,0 Property, plant and equipment 749,5 31,9 737,6 29,0 Intangible assets 637,4 27,1 642,4 25,3 Total assets 2.347,7 100, ,4 100,0 Liabilities 2012 % 2011 % Current liabilities 578,9 24,7 795,8 31,3 Trade accounts payable 85,2 3,6 85,1 3,4 Financings 282,1 12,0 488,8 19,2 Provisions 39,7 1,7 38,8 1,5 Other liabilities 171,8 7,3 183,1 7,2 Long-term liabilities 406,6 17,3 402,5 15,8 Financings 191,3 8,2 203,6 8,0 Provisions and others 215,2 9,2 198,9 7,8 Minority interest 13,1 0,6 13,6 0,5 Shareholder's equity 1.362,2 58, ,1 52,8 Total liabilities 2.347,7 100, ,4 100,0 28

29 Capex and depreciation / Indebtedness Capex and depreciation R$ million R$ million Indebtedness Capex % Net sales 2.3% 3.7% 5.4% 5.7% % Depreciation 27.4% 50.3% 97.9% 113.2% Financial leverage Net indebtedness/adjusted EBITDA 1.1 x 1.0 x 0.9 x 0.9 x % Short term debt 21.0% 26.4% 70.6% 59.6% Estimated Capex for 2013 is R$ million, mainly for new products, capacity expansion and rationalization, and includes an increase in the amount of R$ 8.3 million related to a new filters project (R$ 4.8 million) besides a carry over 2012 (R$ 3.5 million). 29

30 Capital Market 30

31 Dividends and Interest on Equity (net of income tax) R$ million Basis of calculation for dividends: (=) Net income (+) Deemed cost ( ) Statutory reserve (5%) * Payout 46.8% 56.0% 72.6% 95.7% 95.8% Dividend yield 3.6% 6.0% 8.9% 10.3% 7.1% ** * Include additional dividends of R$ 45.0 million to be approved in the annual general meeting ** dividend yield calculation uses the average of closing prices throughout the year (2012: R$ 20.42; 2011: R$ 14.18) 31

32 Stock performance and Shareholder s profile - February, 2013 Average Daily Trading Volume (ADTV) and ADTV turnover to Free-Float Mkt Cap Period 3Q11 4Q11 1Q12 2Q12 3Q12 4Q * Trading Volume (R$ mio) Turnover (%) * Until 02/01/ % 0.37% 0.77% 0.64% 0.67% 0.59% 0.60% Shareholder Profile 32