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  1. Disclaimer ”This presentation may contain statements that express management’s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements, and CVRD cannot give assurance that such statements will prove correct. These risks and uncertainties include factors: relating to the Brazilian economy and securities markets, which exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore business and its dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which CVRD operates. For additional information on factors that could cause CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”

  2. Agenda • Performance highlights • Macroeconomic and business outlook

  3. Performance highlights

  4. 3Q03 highlights • Across the board strong sales performance. • Quarterly record top line - US$ 1.483 billion (+30.4% yoy) • Quarterly record cash generation - adjusted EBITDA equal to US$ 630 million (+21.2% yoy). • Bottom line - a solid US$ 468 million - 9M03 US$ 1.278 billion. • 2003 dividend distribution of US$ 675 million - (+12.1%) yoy) - US$ 1.75 per share vs. US$ 1.57 per share (average 1999/2002). • Projects on track.

  5. Excellent sales performance 3Q03 vs 3Q02 a 46.6 million tons A new record 747,000 tons A new record c b 182,000 tons A new record 7,371 million NTK a - without CAEMI = 43.2 million tons b - without CAEMI = 140,000 tons c - running above nominal capacity

  6. Iron ore and pellets - growth still constrained by capacity million tons 46.6 44.0 42.3 41.1 42.5 41.5 5.5 36.7 Caemi 37.7

  7. Railroad transportation reached a new quarterly record million ntk 7,371 6,900 6,647 6,355 6,367 5,658 5,622

  8. CVRD logistics services performance decoupled from Brazil’s GDP growth Source: CVRD and Central Bank of Brazil

  9. Sales revenues and adjusted EBITDA 3Q03 Gross Revenues US$ 1,483 million 3Q03 Adjusted EBITDA By product By market US$ 630 million

  10. A strong and stable operational performance Adjusted EBIT margin

  11. A good relative performance in the mining and metals industry Market Capitalizationas of October 31, 2003US$ billion Net Earnings 3Q03US$ million Source: Bloomberg LP and companies reports

  12. A consistent strong cash generation LTM adjusted EBITDAUS$ million 2,000 Caemi+FCA

  13. 9M03 capex reached US$ 1.5 billion

  14. 9M03 growth capex - US$ 634.2 million US$ million

  15. Macroeconomic and business outlook

  16. Leading indicators are telling us that a synchronous global economic recovery is underway JP Morgan global manufacturing PMI Source: JPMorgan

  17. Renewed global economic growth contributes to reduce reliance on Chinese-centric demand growth for minerals and metals Chinese contribution to global consumption growth Source: CVRD and AME Mineral Economics

  18. The metals & mining industry reacted to the Asian crisis by reducing project capex... Source: CVRD, Smith Barney and The Economist

  19. ... as well as mineral exploration Mineral exploration capex - non ferrous mineralsUS$ billion Source: MEG - Corporate Exploration Strategies, 2002.

  20. Therefore, the combination of capacity limitations and strong demand growth is producing shortages • Iron ore, alumina, copper concentrate and nickel markets have tightened. • Shipping industry is quoting highest ever freight rates.

  21. We expect Chinese demand for CVRD iron ore to remain very strong • Growth in steel capacity - according to the Chinese Iron and Steel Association, crude steel capacity will increase by 120 mtpy from the end of 2003 until the end of 2005. • Need for high iron content and low impurities to boost productivity and to improve quality of steel products. • CVRD commercial relationship is now supported by long term contracts, which gives us potential to optimize the steel value chain. • Dynamics of supply price elasticity is working to increase effective capesize shipping capacity.

  22. Led by Chinese import growth, global seaborne trade is expected to increase by 7.3% in 2003 and 5.8% in 2004 CAGR 99-04 545 +5.8% 515 million tons 480 454 450 +25.6% 411 World China Rest of the World +0.9% China´s share 2002 2003E 2004E in world seaborne trade 23% 29% 32% Source: CVRD Statistics

  23. CVRD iron ore capacity is also expanding CVRD mining projects Capacity Start-up Capex per ton Carajás expansion 14 mtpy 2004 US$ 10.31 Southern System expansion 3 mtpy 2004 US$ 7.14 Fabrica Nova phase 1 10 mtpy 2005 Fabrica Nova phase 2 +5 mtpy 2009 Brucutu phase 1 12 mtpy 2006 Brucutu phase 2 +6 mtpy 2008 Total increase 50 mtpy US$ 5.67 US$ 12.22 * mine depletion: 10 million tpy until 2007 Depending on demand assessment Carajás capacity can be expanded up to 100 million tpy until 2010.

  24. We believe that the current alumina shortage will last for a few more years High spot prices are feeding into contract pricing, leveraging returns on Alunorte projects. Source: Metal Bulletin, CRU and Macquarie Research

  25. Global recovery and USD weakness added better prospects to aluminum prices Aluminum LME prices and inventories Albras capacity 2002 406 kty 2003 430 kty 2004 450 kty Source: LME

  26. Despite the restart of mining capacity kept idle, declining metal inventories, USD weakness and accelerating global IP growth help to support copper prices Copper LME prices and inventories Source: LME

  27. Therefore, a good copper outlook is welcoming Sossego Tightness in copper concentrate marketTC/RC charges 1997 1998 1999 2000 2001 2002 2003 Source: CRU

  28. Appendix Reconciliation of non-GAAP information and comparable GAAP information • Adjusted EBIT (US$ million)3Q02 2Q03 3Q03 • Net operating revenues 1,098 1,170 1,432 • COGS (554) (670) (812) • SG&A expenses (65) (45) (74) • Research and development (15) (12) (22) • Employee profit sharing plan (14) (9) (2) • Others 9 (46) (21) • Operating income (Adjusted EBIT) 459 388 501 • Ajusted EBIT Margin = Operating Income / Net Operating Revenues • Adjusted EBITDA (US$ million) • Reconciliation between adjusted ebitda vs. operating cash flow • Operating Cash Flow 356 452 435 • Income tax - - (47) • Income tax paid 6 27 6 • Monetary and Foreign Exchange Losses 92 1 44 • Financial Expenses 41 32 12 • Net Working Capital (45) (31) 140 • Others (8) 9 40 • Adjusted EBITDA 442 490 630

  29. CVRD - The Best of Brazil www.cvrd.com.br e-mail: rio@cvrd.com.br

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