PLASCAR ANNOUNCES MARCH 31, 2012 RESULTS.
Quote (3/31/12)
PLAS3 - R$ 1.81
Market cap on 3/31/12
R$ 301 million
Number of shares
Ordinary: 166 MM
Campinas, SP, May 3, 2012 – Plascar Participações Industriais S.A. (Bovespa: PLAS3), Brazil’s
leading manufacturer of automotive parts for the internal and external finishing of light and heavy
vehicles in the Original Equipment Market (OEM), which supplies auto makers in Latin America and
Mercosur and exports to Argentina, Mexico, the USA, Australia and Europe, announces its 1Q2012
results. The Company’s operating and financial information, except where otherwise indicated, is
consolidated and amounts are stated in Brazilian Reais.
1Q2012 performance highlights:
− EBITDA was R$ 3.6 million (1.7% margin).
Investor Relations
Rua Pierre Simon de
Laplace, 965 – Conj.
B1,B2,B3,B4,C1,C2
Cond. Unic Sl. 2 Cj. B1
Techno Park – CampinasSP - CEP 13069-320.
− Plascar’s net revenue decreased 4.7% in 2012, to R$ 219.1 million.
− Gross margin reaches 11.7%, or R$ 25.6 million.
Plascar
Board of Directors
Wilbur L. Ross Jr.
André C. do Nascimento
Charles D. Popoff
Francisco N. Satkunas
Edson F. Menezes
Supervisory Board
Adauto Martins Costa
Mauro Cesar Leschziner
Alcides Morales Filho
Website:
www.plascargroup.com
IR - Contact
Gordiano Pessoa Filho
CFO and Investor Relations
Officer.
[email protected]
Phone: (+ 55 19) 3518 8601
(+ 55 19) 3518 8640
Performance in the Period
1Q2012
1Q2011
Change - %
Gross sales
272,082
285,194
-4.6%
Net revenue
219,090
229,893
-4.7%
Gross profit
25,586
49,532
-48.3%
Gross margin %
11.7%
21.5%
-9.8p,p,
EBITDA
3,617
28,971
-87.5%
EBITDA margin %
1.7%
12.6%
-10.9p,p,
Net income (loss)
(18,663)
1,289
-1,696.8%
5,231
5,071
(13,432)
6,360
Amounts in R$ thousand
Elimination of effect of debentures *
• Interest on debentures
Adjusted net income (loss)
These amounts include net sales of R$ 60,286 (R$ 47,639 in 2011) / EBITDA of R$ 3,473 (R$ 4,510 in 2011)/ net
income (loss) of (R$ 1,551), R$ 331 in 2011, reported by Plastal – Argentina (renamed Plascar Argentina S.A. in
August 2011).
*For analytical purposes only, accrued interest (110% of Interbank Deposit Certificate - CDI)
incurred on subscribed debentures is eliminated, as these are “mandatorily convertible into
shares”, i.e. their conversion into “Capital” will not result in any cash disbursements.
1
Background
The Company started operating in the rubber industry in the city of Jundiaí, São Paulo
State in October 1963. In 1973, it began operations in the automotive industry, and in the
mid 1980’s, after several corporate mergers and the implementation of a growth and
modernization program, the Company substantially improved its subsidiaries, and
became second to none in the automotive plastic parts industry.
Corporate
structure
IAC Group Brazil is a joint venture between WL Ross & Co. LLC (“WLR”) and Franklin
Mutual Advisers, LLC.
On April 12, 2006, Delaware-based company International Automotive Components
Group Brazil, LLC (IAC Group Brazil, LLC) acquired control of Permali do Brasil Ind. e
Com. Ltda. from Collins & Aikman Europe S.A.
Legal structure- IAC Group Brazil
Invesco
100%
WL Ross
& Co. LLC
75.7%
IAC – Group
International Automotive
Components Group Brazil
LLC
24.3%
Franklin
Mutual
Advisers,
LLC
100%
Permali do Brasil Indústria e
Comércio Ltda
56,52%
0.11%
Plascar Participações
Industriais S.A
Non-controlling
interests
43.48%
99.89%
Plascar Ind. de Comp.
Plásticos Ltda.
100%
Plascar Ind. de Comp.
Plásticos S.A. - Argentina
95%
5% *
100%
Plascar Argentina S.A
Ristolsur S.A – Uruguay
(Chery – OEM)
2
Operating
performance
After the fourth quarter of 2008, as a result of the financial crisis that initially hit the United
States, Europe and Asia, the global motor vehicle industry changed dramatically, leading
automakers and auto part manufacturers to adopt thorough restructuring and cost-cutting
initiatives.
In 1Q2012 sales decreased by 0.8% over the same prior year period (source: ANFAVEA)
and by 2.5% in Argentina (source: ADEFA).
Vehicle production in 1Q2012 dropped 10.9% over the same 2011 period (source:
ANFAVEA) and rose 3.1% in Argentina (source: ADEFA).
SOURCE: ANFAVEA – BRAZIL
Change 1Q11
1Q12
%
SOURCE: ADEFA–ARGENTINA
Change
1Q11
1Q12
-%
VEHICLE PRODUCTION
829
738
-10.92%
159
164
3.14%
VEHICLE SALES
825
818
-0.82%
161
157
-2.46%
As a result of the decline in vehicle production, Plascar (consolidated) reported a
decrease in the Company’s net revenue by 4.7% in 1Q2012 over the same 2011 period,
reaching gross margin of 11.7% for the period.
Net revenue in 1Q2012 totaled R$ 219.1 million.
Brazil
• Gross revenue in 1Q2012: R$ 211,270
• Gross revenue in 1Q2011: R$ 236,634
% Change: -10.7%
Argentina
• Gross revenue in 1Q2012: R$ 60,812
• Gross revenue in 1Q2011: R$ 48,560
% Change: 25.2%
Consolidated (Brazil + Argentina)
• Gross revenue in 1Q2012: R$ 272,082
• Gross revenue in 1Q2011: R$ 285,194
% Change: -4.6%
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Net Revenue (in thousands of R$)
12/11
-4.7%
*
229,893
219,090*
11/10
55.6%
147,781
1Q10
1Q11
1Q12
*Including R$ 60,286 (R$ 47,639 in 2011) from Plascar Argentina S.A.
Composição da Receita Líquida no
1º Trimestre'12
R$ 219.090 mil
Composição da Receita Líquida no
1º Trimestre'11
R$ 229.893 mil
45.560
20%
25.136
11%
15.951
7%
30.267
14%
17.215
8%
9.970
5%
77.529
35%
95.497
41%
47.749
21%
84.109
38%
4
Gross profit
vs. Gross
margin (%)
In 1Q2012, gross margin was 11.7%, versus 21.5% in 2011. Gross profit, expressed in
reais, amounted to R$ 25.6 million in 1Q2012.
Some of the main reasons for this gross margin level were: a) Supply to new customers
has started (especially Japanese and French automakers); b) Entry into New Market
Niches (truck parts and “non-automotive” segment); c) Renegotiation of old contracts; e)
Compliance with clauses involving the automatic pass-through of raw material prices to
customers; and finally, the greater dilution of fixed costs, as a natural result from
expanded operations, excluding the effects from the market downturn in 1Q2009.
Amounts expressed in thousands of Reais
R$ 229,893*
R$ 219,090*
R$ 147,781
R$ 49,532*
R$ 31,355
21.2%
1Q10
R$ 25,586*
21.5%
11.7%
1Q11
1Q12
Net revenue
Gross profit
............. Gross profit - %
*Including net sales of R$ 60,286 (R$ 47,639 in 2011) and gross profit of R$ 5,881 (R$ 7,097 in 2011) from Plascar
Argentina S.A.
5
EBITDA (in R$)
vs. EBITDA (%)
EBITDA totaled R$ 3.6 million in 1Q2012. EBITDA margin was 1.7% in 1Q2012 versus
12.6% in 2011.
11/10
67.8%
R$ 28,971*
12/11
-87.5%
R$ 17,269
12.6%
11.7%
R$ 3,617*
R$ 1,289*
R$ (13)
1Q10
1Q11
1.7%
1Q12
- R$ 18,663*
EBITDA (in R$ thousand) vs. EBITDA margin (%)
Net income (loss) (in R$ thousand)
*Including EBITDA of R$ 3,473 (R$ 4,510 in 2011), loss of R$ 1,551 (net income R$ 331 in 2011) from Plascar Argentina
S.A
In 1Q2012, loss totaled R$ 18,663 thousand; in 1Q2011, net income was R$ 1,289.
Debentures
(amounts in thousands
of reais, except where
indicated otherwise)
As approved by a majority vote at the Special Shareholders’ Meeting held on April 7,
2010, the Company approved the private issuance of forty thousand (40,000)
subordinated debentures, mandatorily convertible into Company-issued shares, at a par
value of R$ 10.00 each.
Debentures mature within two years from the date of issuance, i.e. May 7, 2012.
Debentures bear interest equivalent to 110% of the CDI rate. Compensatory interest is
mandatorily payable on the maturity date, by means of payment in Company-issued
shares.
For the quarter ended March 31, 2012, there were no new debenture subscriptions.
By March 31, 2012, 14,756 debentures had been subscribed, in a total R$ 183,053
(R$ 177,823 as at December 31, 2011), including compensatory interest, recorded as
“Debentures”, in current liabilities.
The funds obtained from the transaction were substantially used to amortize existing
debts and to acquire entities.
As at March 31, 2012, the annualized effective interest rate of debentures is 10.61%.
The debenture transaction was formally completed with the notice filed with the Brazilian
Securities and Exchange Commission (CVM) on March 28, 2012, in which the Company
informed of its decision to withdraw its registration statement for initial public offering of
remaining debentures (“Remainder Auction”).
6
Human
Resources
Headcount in 1Q2012 was 4,788 employees (5,146 in 1Q2011).
Main awards received by Plascar in 2010/2011
Public acknowledgment: People Management
For the third time, Plascar is one of the “100 best companies to work in
Latina America - 2010”
For the third consecutive year, Plascar was recognized as one of the “100 best
workplaces in Latina America”, according to the list published by HSM
Management magazine (May/June issue). Plascar was also a finalist in the
“Communication - Telling the Truth” category.
The survey that elects the 100 Best Companies to Work For is conducted by the
Great Place to Work Institute on an annual basis. This year, 1,400 companies
from 12 Latin American countries were surveyed.
Overall, 17 Brazilian companies are part of the list.
th
Plascar is considered the 13 Best Company to Work For in Brazil
th
For the 4 consecutive year, Plascar ranked among the “100 Best Companies to Work
For in Brazil”, according to the ranking published by Época magazine and the Great
Place to Work Institute.
This year, the survey received a record 770 registrations. Out of that total, 100
companies were classified, representing 11% of the Brazilian GDP.
th
This time, Plascar ranked 13 .
Additionally, Plascar excelled in the following survey categories:
•
5 best manufacturing company; and
•
15 most sought after company.
th
th
Plascar ranks among the “150 Best Companies to Work for”
Once again, Plascar is among the “150 Best Companies to Work for”, a traditional
ranking prepared by Exame and Você S.A., two renowned magazines published by
Editora Abril, in partnership with Fundação Instituto de Administração (FIA) of São Paulo
th
University (USP), which had its 14 edition in 2010.
th
For the 5 consecutive year, Plascar was certified as having one of the best working
environments in Brazil among the 541 companies that participated in this year’s survey.
Plascar is granted the "Outstanding Performance in Social Responsibility"
award
Based on the outcome of the survey it conducts annually using the method developed by
the Great Place to Work Institute Brasil, specialized magazine “Melhor Gestão de
Pessoas” granted Plascar the “Outstanding Performance in Social Responsibility” award.
This is the third year Plascar has been acknowledged by the magazine, having received
the "Outstanding Performance - Reliability" award in 2008 and 2009.
Acknowledgment: Corporate Governance
7
Plascar ranks 1st in Sustainable Growth – Vehicles and Spare Parts – in the
Valor 1000 survey
st
Plascar ranked 1 in the “Sustainable Growth” category among the companies in the
vehicles and spare parts sector classified in the Valor 1000 survey, an annual publication
of Valor Econômico newspaper that ranks the 1000 largest companies in Brazil.
th
Plascar ranked 9 in the ranking of the companies in the vehicles and spare parts sector,
coming in 467th place in the overall ranking, up 13 positions from 2009 .
Plascar is once again recognized as one of the best at “Melhores da
Dinheiro” ranking
In 2010, Plascar achieved the following rankings on this important list, published annually
by “IstoÉ Dinheiro” magazine:
- The best company in the auto parts sector in terms of Human Resources;
- The third best company in the auto parts sector;
- The third best company in the auto parts sector in terms of Financial Sustainability,
Innovation and Quality.
Plascar goes up 59 positions in the “Maiores e Melhores” raking published
by Exame Magazine
nd
In 2011, Plascar came in 442 place in this select ranking published by Exame
magazine, up 59 positions compared to 2010.
Plascar among the 200 greatest companies published by Valor magazine
th
Plascar came in 196 place in this ranking published by Valor Econômico newspaper in
December 2011.
Acknowledgment: Technological Innovation
Plascar is granted the SAE Brasil 2010 Technological Innovation award
For the third consecutive year, Plascar received the “Technological Innovation Highlight”
award from SAE BRASIL, an international entity that brings together and represents
engineers from several transportation sectors.
th
The award was presented during the 19 International Congress and Exhibition of
Mobility Technology organized by SAE BRASIL in São Paulo between October 5 and 7,
which received more than 12,000 visitors.
At the congress, Plascar presented its “sustainable car,” a project that was fully designed
by the Company's engineers and presents several solutions to challenges faced by the
automotive industry.
The award was rceived by Plascar’s CEO André Nascimento, its Engineering Director
José Donizeti da Silva, its Advanced Engineering and Materials Manager Márcio
Tiraboschi, and its Product Development Manager Marcos Julio, who represented all
Plascar professionals involved in the project.
The SAE BRASIL award ceremony was attended by Brazil’s Minister of Development,
Industry and Commerce Miguel Jorge, representing president Luís Inácio Lula da Silva.
The Minister received the SAE BRASIL 2010 prize, the highest honor granted by the
entity.
8
Plastal Argentina
Beginning August 2011 Plastal was renamed Plascar Argentina S.A.
Shareholders’ compensation - Dividends
At the Annual General Meeting held on April 27, 2012 was approved the retention of part
of net income for the year ended 2011, recorded under heading Retained Profits Reserve
for Expansion in the amount of R$ 7,735, to be used in future investments in expansion
projects in accordance with the Company's capital budget.
The mandatory minimum dividends amounting to R$ 2,578 recorded as of December 31,
2011 on net income for the year ended on that date shall be paid by June 30, 2012.
Subsequent Event
At the Ordinary and Extraordinary General Meeting held on April 27, 2012 was approved
the Company's capital increase in the amount of R$ 4,068 (from R$ 289,080 to R$
293,148) as approved by the Board of Directors meeting held on 16 April 2012.
9