Randoncorp S.a. · BMFBOVESPA:RAPT3
Randoncorp — Q1 2019 Earnings Presentation
45 slides from Randoncorp's earnings presentation, 2019
Slide 1: Institutional Profile 1Q2019
INSTITUTIONAL PROFILE 1Q2019
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements are based on Management's beliefs and assumptions, as well as on currently available information. Forward-looking statements include information on our current in
Slide 3: Randon Profile
RANDON PROFILE Foundation IPO Employees Market Cap 1949 1974 11,220 R$ 3.1 bi LEADERSHIP COMPETITIVENESS GROWTH RECOGNITION leader in the 4th largest automotive market in the complementary products world; and integrated industrial one of the most respected present in all Brazilian parts; bra
Slide 4: Randon Profile: Vehicles, Auto Parts, Financial Services
RANDON PROFILE Among the 10 largest manufacturers of road equipment in the world; VEHICLES Second largest manufacturer of railcars in Brazil; AND Largest Brazilian manufacturer of specialty vehicles up to 30 tons; TRAILERS One of the largest manufacturers of backhoe loaders in Brazil. One
Slide 5: Operating Structure and International Offices
RANDON PROFILE OPERATING STRUCTURE INTERNATIONAL OFFICES 5
Slide 6: Governance
RANDON PROFILE GOVERNANCE Board of Directors David Abramo Randon– Chairman Alexandre Randon – Vice-Chairman Hugo E. I. Ferreira – Board Member Tag Along Pedro Ferro Neto – Board Member 80.0% Ruy Lopes Filho – Board Member Executive Committee Daniel Raul Randon CEO Alexandre Gazzi Sergio L. M. de Car
Slide 7: Corporate Structure
RANDON PROFILE CORPORATE STRUCTURE 7
Slide 8: Vehicles and Trailers
VEHICLES AND TRAILERS TRAILERS RAIL CARS SPECIALTY VEHICLES 8
Slide 9: Semi-Trailers
VEHICLES AND TRAILERS SEMI-TRAILERS MARKET CHARACTERISTICS Trailers Sold (units) Fragmented base of clients 1Q19 1Q18 Δ% Strong distribution dealers in all main markets; 5,135 3,759 36.6% Import barriers 1Q19 4Q18 Δ% Logistics costs, regulation, import tax and financing; 5,135 6,061 -15.3% Exposure
Slide 10: Semi-Trailers: Leader in Brazil
VEHICLES AND TRAILERS SEMI-TRAILERS| LEADER IN BRAZIL Data from the last 12 months 5,082 4,720 4,105 4,475 3,475 3,537 3,714 4,392 3,979 3,651 4,187 4,567 45.7% 40.5% 42.1% 37.4% 39.0% 37.4% 36.5% 35.0% 34.8% 32.5% 32.0% 30.5% 1,587 1,506 1,552 1,989 1,564 1,600 1,430 1,428 1,434 1,551 1,322 1,333 a
Slide 11: Semi-Trailers: Competitors and Market Size
VEHICLES AND TRAILERS SEMI-TRAILERS| LEADER IN BRAZIL 54,401 40,493 59,284 59,435 52,537 70,161 56,452 29,620 23,075 24,927 44,589 13,949 17% 18% Others (Units Sold – Brazil) 21% Size of Market 33% 42% 41% 43% 39% 38% 38% 40% 39% 2% 3% 3% Sergomel 3% 7% 3% Noma 13% 12% 1% 3% 13% Librelato 0% 1% 2% 1
Slide 12: Railcars
VEHICLES AND TRAILERS RAILCARS Railcar Production 5,616 4,703 4,608 MARKET CHARACTERISTICS 2,888 3,903 Concentrated Base of Clients 45.4% 2,878 2,327 32.0% Large industries or railway companies. 30.4% 39.7% 2,105 26.1% 3,256 29.8% 28.8% 28.6% Long order-to-delivery cycle 1,300 Long commercial/indust
Slide 13: Specialty Vehicles
VEHICLES AND TRAILERS SPECIALTY VEHICLES Specialty Vehicles 25 dealers in Brazil MARKET (units) Construction and Mining Industries 1Q19 1Q18 Δ% Civil Construction; ACTIVITY 97 68 42.6% Lessors; Development, manufacturing, sale and technical assistance. 1Q19 4Q18 Δ% Public Bodies; Agriculture. 97 95
Slide 14: Highlights 1Q2019: Vehicles and Trailers
HIGHLIGHTS 1Q2019 | VEHICLES AND TRAILERS VEHICLES AND TRAILERS ● Strong product demand in 1Q2019, a period that is seasonally weaker; ● Sales in the Brazilian market totaled 13,949 units (+ 60.9% compared to 1Q2018); ● 4,413 Randon semitrailers were licenced in the quarter; FACCHINI LIBRELATO 27.5%
Slide 15: Highlights 1Q2019: Railcars and Specialty Vehicles
HIGHLIGHTS 1Q2019 | VEHICLES AND TRAILERS RAILCARS ● The railcar market should remain under pressure throughout 2019; ● In 1Q2019, Randon sold 86 wagons, against 355 units in the same period of the previous year (-75.8%); ● Some positive signs begin to appear, such as the north- south railroad aucti
Slide 16: Vehicles and Trailers Performance 1Q19
VEHICLES AND TRAILERS PERFORMANCE 1Q19 Consolidated Net Revenue (R$ million) Exports (US$ million) +18.4% -12.9% 23.4 +24.4% -37.5% 549.6 478.9 478.9 404.5 14.6 14.6 11.7 1Q18 1Q19 4Q18 1Q19 1Q18 1Q19 4Q18 1Q19 Consolidated EBITDA | EBITDA Margin (R$ million) Investments (R$ million) +35.1% -18.9% +
Slide 17: Auto Parts Companies
AUTO PARTS Suspensys’ erected (Master AST AQcasterte ECH ‘Companies
Slide 18: Auto Parts Sales by Segments 1Q19
AUTO PARTS SALES BY SEGMENTS 1Q19 MARKET CHARACTERISTICS SEGMENTS Exports Diversified base of clients 26% OEM Customer segmentation from OEM to aftermarket and (Original Equipment Manufacturer) exports; Commercial vehicles – trucks, buses OEM and trailers Moderated imports 50% Engineering partnershi
Slide 19: Auto Parts: Leader in Brazil
AUTO PARTS LEADER IN BRAZIL Auto Parts Market Share 93.0% 96.0% 92.0% 86.7% 82.0% 53.9% 52.9% 56.0% 50.0% 52.0% 54.0% 43.0% 43.4% 50.0% 46.0% 45.0% 48.0% 46.0% 37.0% 42.0% 2014 2015 2016 2017 2018 Fifth Wheel (OEM) Air Brakes (OEM) Brake Shoes (Aftermarket) Axles and Suspensions (OEM) Main Competito
Slide 20: Auto Parts Volumes
AUTO PARTS VOLUMES 1Q19 1Q18 1Q19 4Q18 Δ% Un. Δ% Un. Un. % CNR Un. % CNR Un. % CNR Un. % CNR Auto parts 53.8% 52.0% 53.8% 51.0% Friction Material (un.)² 27,050 20.5% 23,494 20.8% 15.1% 27,050 20.5% 24,911 20.1% 8.6% Others Material Fras-le (un.)² 5,917 6.9% 4,570 5.0% 29.5% 5,917 6.9% 6,180 8.0% -4.
Slide 21: Highlights 1Q2019: Friction and Auto Parts
HIGHLIGHTS 1Q2019 | AUTO PARTS Access the QR Code on the right to see the new video FRICTION AND AUTO PARTS of Fras-le’s brake shoes for subways and railcars ● Sales of friction materials increased by 15.1% in 1Q2019 compared to the same period last year; ● Moreover, sales of other products increase
Slide 22: Highlights 1Q2019: Auto Parts
HIGHLIGHTS 1Q2019 | AUTO PARTS AXLES AND SUSPENSIONS COUPLING SYSTEMS ● Sales of axles and suspensions ● Sales of coupling systems showed a increased by 28.3% in 1Q2019 11.5% increase in 1Q2019 compared to compared to 1Q2018; the same period of 2018; ● In 1Q19 Suspensys launched the new ● The highli
Slide 23: Auto Parts Performance
AUTO PARTS PERFORMANCE Consolidated Net Revenue (R$ million) Exports (US$ million) +27.3% -1.3% +3.0% 31.7 -18.5% 610.3 618.6 610.3 25.0 25.8 25.8 479.5 1Q18 1Q19 4Q18 1Q19 1Q18 1Q19 4Q18 1Q19 Consolidated EBITDA | EBITDA Margin (R$ million) Investments (R$ million) -33.2% +18.0% 35.1 -53.3% 26.0% +
Slide 24: Financial Services
FINANCIAL SERVICES ‘Companies
Slide 25: Financial Services Performance 1Q19
FINANCIAL SERVICES PERFORMANCE 1Q19 Coop-Payment Plan Quotas Sold It is among the leaders in coop- payment plans for commercial 1Q19 1Q18 Δ% 1Q19 4Q19 Δ% vehicles and real estate 2,794 2,534 10.3% 2,794 4,586 -39.1% SEGMENTS: 28 Thousand Customers Trailers Real estate and vehicles Quotas Accrued Mac
Slide 26: Financial Services Results
FINANCIAL RESULTS PERFORMANCE 1Q19 Consolidated Net Revenue (R$ million) Randon Bank - ROE (%) +17.7% +0.8% 9.2% 44.3 44.3 8.3% 8.0% 44.0 7.6% 7.4% 7.0% 37.7 1Q18 1Q19 4Q18 1Q19 2014 2015 2016 2017 2018 1Q19 Consolidated EBITDA| EBITDA Margin (R$ million) Randon Consórcios - ROE (%) 70.7% +87.9% +71
Slide 27: Market 1Q19: Production and Sales
HIGHLIGHTS MARKET 1Q19 CURRENT SCENARIO PRODUCTION Economy is growing at a 1Q19 1Q18 ∆% 1Q19 4Q18 ∆% High demand for trucks in moderate rate; domestic market; Trailers³ 14,733 9,309 58.3% 14,733 14,194 3.8% Market for semi-trailers Pension reform. remains strong. Trucks² 24,761 24,434 1.3% 24,761 28
Slide 28: Consolidated Results 1Q19
HIGHLIGHTS CONSOLIDATED RESULTS 1Q19 Consolidated Net Revenue by Segment +23.0% Main Figures 1Q19 1Q18 Δ% 1Q19 4Q18 Δ% 921.6 1,133.6 Total Gross Revenue (¹) 1,636,372 1,299,507 25.9% 1,636,372 1,696,805 -3.6% Domestic market 1,483,432 1,176,055 26.1% 1,483,432 1,489,708 -0.4% 37.7 44.3 Exports 152,9
Slide 29: Capital Markets
CAPITAL MARKETS RAPT4 Price/Daily Liquidity - R$ per share| R$ million 7.17 9.26 8.63 9.70 4.71 2.45 3.45 21.6 17.2 17.1 9.3 8.1 9.1 4.1 2014 2015 2016 2017 2018 1Q18 1Q19 Dividends and Interest on Equity - R$ million | R$ per share 0.19 0.10 0.04 - - 59.0 34.9 15.0 - - 2014 2015 2016 2017 2018 29
Slide 30: Gross Debt Breakdown and Working Capital
FINANCIAL RESULTS Gross Debt Breakdown 1Q19 - R$ million| % Foreign Currency Total gross debt R$ 2,605.6 19.6% Gross debt in BR currency R$ 2,093.9 Gross debt in foreign currency R$ 511.7 Domestic USD rate (March 31, 2019) R$ 3.8967 Currency 80.4% Consolidated Working Capital - R$ million 56.5 7.8 -
Slide 31: Consolidated Net Debt
FINANCIAL RESULTS Consolidated Net Debt (without Randon Bank) - R$ million – 1Q19 *Net Debt/EBITDA 1.45 x 6.93 x 2.95 x 1.19 x 1.51 x 1.70 x 1,777.8 1,882.5 1,762.7 1,859.1 1,565.0 1,564.3 -385.6 -351.9 -697.2 -880.9 -1,052.0 -824.9 -2,445.2 -2,262.2 -2,268.0 -2,114.6 -2,684.1 -2,829.9 Dec, 2014 Dec
Slide 32: Sustainability: Employees
SUSTAINABILITY Employees 10,714 11,220 + 4.7% 2018 1Q2019 Social Responsibility - Programs IDADE 6 14 18 57 60 32
Slide 33: Sustainability: Consolidated Added Value
SUSTAINABILITY Consolidated Added Value 1Q2019- R$ 481.8 million 1Q2018- R$ 390.5 million 36.0% 34.9% 32.7% 27.8% 23.8% 17.5% 11.1% 7.7% 6.6% 2.1% 0.0% 0.0% Employees Taxes Financial Institutions Interest of minority Profit Retained in the Interest on Own Capital Shareholders Period and Dividends 33
Slide 34: Outlook
Outlook ECONOMY ● ¹GDP: growth forecast of 1.49% for 2019; ● ²Grain Harvest: 7th CONAB survey estimates production of 235.3 million tons of grain in the 2018/2019 harvest; ● ¹Inflation: estimated to close 2019 at 4.04%; ● ¹Selic Rate: Selic should close the year at 6.5% p.a.; Source: ● ¹Industrial P
Slide 35: Total Gross and Net Revenue
FINANCIAL RESULTS Total Gross Revenue - Including Intercompany Sales - R$ million CAGR 6,044.2 +2.6% 5,457.3 +25.9% 4,236.9 4,215.6 3,680.2 1,299.5 1,636.4 2014 2015 2016 2017 2018 1Q18 1Q19 Consolidated Net Revenue - R$ million CAGR +3.0% 4,262.6 3,778.8 3,099.4 2,936.8 +23.0% 2,624.0 1,133.6 921.6
Slide 36: Exports
OPERATING RESULTS Exports - US$ million CAGR -1.2% 191.6 182.3 158.2 151.6 155.4 +9.8% 36.8 40.4 2014 2015 2016 2017 2018 1Q18 1Q19 Exports – Destination by Economic Block | US$ million 45.8% 40.0% 34.3% 34.7% 14.3% 9.5% 3.6% 6.1% 3.2% 1.6% 0.8% 1.9% 2.1% 0.5% 0.7% 0.4% 0.0% 0.4% MERCOSUR + NAFTA EU
Slide 37: Gross Profit and COGS Breakdown
FINANCIAL RESULTS Gross Profit| Gross Margin - R$ million CAGR +1.8% 25.0% 23.7% 23.8% 23.6% 23.7% 20.7% 19.9% 1,012.5 943.0 640.9 697.0 +23.8% 520.9 217.1 268.9 2014 2015 2016 2017 2018 1Q18 1Q19 Consolidated COGS Breakdown | R$ million Others 13.4% Depreciation 1.9% COGS 1Q2019 R$ 864.7 millions (
Slide 38: EBITDA and EBITDA Margin
FINANCIAL RESULTS EBITDA | EBITDA Margin - R$ million CAGR +3,4% 17.3% 13.0% 10.5% 13.1% 11.8% 5.2% 5.4% 559.8 490.5 308.2 -15.8% 161.9 142.7 159.5 134.3 2014 2015 2016 2017 2018 1Q18 1Q19 EBITDA | Quarterly EBITDA Margin - R$ million 17.3% 13.5% 12.4% 11.8% 10.3% 159.5 149.4 134.3 126.3 124.6 1Q18
Slide 39: Net Income and Net Margin
FINANCIAL RESULTS Net Income| Net Margin- R$ million 5.3% 3.6% 4.7% 2.8% -0.8% 1.6% -2.6% CAGR -6.9% 202.0 151.7 -26.7% 46.7 43.2 31.7 -24.6 -67.2 2014 2015 2016 2017 2018 1Q18 1Q19 Net Income| Quarterly Net Margin - R$ million 4.7% 3.8% 3.1% 2.9% 2.8% 43.2 41.7 35.4 31.4 31.7 1Q18 2Q18 3Q18 4Q18 1Q
Slide 40: Gross Debt Breakdown and Net Debt/EBITDA
FINANCIAL RESULTS Gross Debt Breakdown - R$ million| % Gross Debt Indexes Origin of Debt - Short and Long Term MARCH/2019 IPCA 2.3% R$ Million Fixed + Exchange Rate 2.8% Fixed 2,605.6 10.6% 1,930.8 511.7 Libor + Exchange Rate 285.4 13.3% 674.8 2,093.9 CDI 1,645.4 69.3% 226.3 448.5 BNDES Rate Short T
Slide 41: Schedule of Debt Repayment 1Q19
FINANCIAL RESULTS Schedule of Debt Repayment 1Q19 - R$ million 561.3 524.5 513.8 511.7 398.8 155.7 62.9 55.1 53.2 104.9 95.5 405.7 461.6 458.7 458.5 293.9 80.0 15.6 2019 2020 2021 2022 2023 2024 to 2033 Domestic Currency Foreign Currency 41
Slide 42: Investments and Shareholders' Equity
FINANCIAL RESULTS Investments - R$ million CAGR +2.4% 161.6 -20.5% 124.8 130.6 137.4 43.2 46.2 36.7 2014 2015 2016 2017 2018 1Q18 1Q19 Shareholders’ Equity| ROE - R$ million (without non-controlling shareholders) 15.1% 10.6% 8.9% 3.3% -1.7% -5.3% 1,571.9 1,527.3 1,431.6 1,413.2 1,432.2 1,277.3 2014
Slide 43: Consolidated Income Statement by Segment
FINANCIAL RESULTS Consolidated Income Statement by Segment - R$ million/% Vehicles and Trailers Auto Parts Financial Services Consolidated Semi-trailers 1Q19 1Q18 Δ% 1Q19 1Q18 Δ% 1Q19 1Q18 Δ% 1Q19 1Q18 Δ% Gross Revenue 583,312 482,651 20.9% 783,090 610,991 28.2% 49,139 41,678 17.9% 1,415,541 1,135,3
Slide 44: Consolidated Income Statement by Quarter
FINANCIAL RESULTS Consolidated Income Statement (by Segment/Quarterly) - R$ million/% 1Q18 2Q18 3Q18 4Q18 2018 1Q19 Consolidated Net Revenue 921.6 1,018.9 1,109.9 1,212.2 4,262.6 1,133.6 % Vehicles and Trailers 40.6% 45.3% 46.5% 45.3% 45.3% 42.3% % Auto Parts 53.1% 50.7% 49.7% 51.0% 50.8% 53.8% % Fi
Slide 45: Investor Relations Contact
Investor Relations IR Contact ri@randon.com.br +55 54 3239.2505