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INVESTOR
RELATIONS
1
DISCLAIMER
The material that follows is a confidential presentation of general background information about Tupy S.A. and its consolidated subsidiaries (together, the "Company") as of the date of the presentation. It is information in summary form and does not purport to be complete and is not intended to be relied upon as advice to potential investors.
No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives, accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.
Data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of such data, and such data involves risks and uncertainties and is subject to change based on various factors. This presentation is strictly confidential and may not be disclosed to any other person.
This presentation contains forward-looking statements. Such statements are not statements of historical facts, and reflect the beliefs and expectations of the Company’s management. The words "anticipates,” "wishes,” "expects,” "estimates,” "intends,” "forecasts,” "plans,” "predicts,” "projects,” "targets" and similar words are intended to identify these statements. Although the Company believes that expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to the Company's management, the Company cannot guarantee future results or events. You are cautioned not to rely on forward-looking statements as actual results could differ materially from those expressed or implied in the forward-looking statements.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Any offering of securities to be made will be made solely by means of an offering memorandum. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities, and neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase securities in any offering of securities of the Company should be made solely on the basis of the information contained in the offering document which may be published or distributed in due course in connection with any offering of securities of the Company, if any. This presentation is being made only to investors that, by means of their attendance at this presentation, represent to the underwriters and the agents that they are “Qualified Institutional Buyers” as that term is defined in the Securities Act.
INVESTOR
RELATIONS HIGHLIGHTS
Gross Profit 3 R$134.2 million, down 7.8% versus 1Q16, representing 15.7% of revenues in the period.
Adjusted EBITDA 4 R$119.7 million, equals to 14,0% of revenues in 1Q17 - down 150 basis points
vs1Q16 and up 270 basis points vs 4Q16.
Net Income 5 R$47.2 million in 1Q17, representing 5.5% of revenues in the period.
Sales volume 1 135.1 Thousand tonnes, up 13,0% in relation to 1Q16, related to the growth in foreign markets.
Revenues R$855,1 milhões, decrease of 0.5% in relation to 1Q16, due to the rise of BRL
against the USD 2
Investments 6 R$18.3 million, decrease of 36.3% vs 1Q16, totaling 2.1% of revenues in the period.
INVESTOR
RELATIONS
3Q16 2Q16 4Q15 2Q15
117
3Q15 4Q16
122 142
119 128
1Q15
123
1Q16 1Q17
120 130
501
+13.0%
506
+10%
+1%
1Q17 LTM
1Q16 LTM
135
17.3%
CGI [% automotive volume]
Machining [% automotive volume]
SALES VOLUME
81% FM
19% DM
-2.8%
4Q16 1Q17 3Q16 1Q16 2Q16
14% 15%
17% 16%
15%
20%
+100 bps
1Q17 4Q16
21%
2Q16 1Q16
21% 19%
21%
3Q16
Sales volume [kton]
INVESTOR
RELATIONS
62% NAFTA
17% LatAm
8% Others
13% Europe
23% Off-road
Revenues [M BRL] Origin [% revenues]
REVENUES
3,251
1Q16 LTM
3,499
4Q16 1Q17 LTM
-7%
788
2Q15 3Q15 1Q16 3Q16
860 851
2Q16 1Q15
872 856
4Q15
911 763 782 855
+9%
-0.5%
1Q17
16% Passenger
cars
56% Commercial
vehicles1)
5% Hydraulics
83% FM
17% DM
1) Includes light, medium and heavy commercial vehicles
-0.7%
Application [% revenues]
0.2%
INVESTOR
RELATIONS
Passenger cars [M BRL] Commercial vehicles [M BRL] Off-road [M BRL]
AUTOMOTIVE DOMESTIC MARKET
35
1Q16 1Q17
44
+24%
5.1% of revenues
6.0% of revenues
2.0% of revenues
1Q17
51
1Q16
-16% 61
1Q16
17 13
+34%
1Q17
INVESTOR
RELATIONS
Passenger cars [M BRL]
Off-road [M BRL]
Med. & heavy comercial [M BRL] Light commercial [M BRL]
-34%
97
1Q16 1Q17
146
+9%
1Q17 1Q16
253 275
116
+27%
1Q17
147
1Q16
-5% 190
1Q17 1Q16
180
AUTOMOTIVE FOREIGN MARKETS
11.3% of revenues
32.1% of revenues
17.2% of revenues
21.0% of revenues
INVESTOR
RELATIONS
Domestic market
HYDRAULICS [M BRL]
Foreign market
3.4% of revenues
1.7% of revenues
4Q16
-20%
20
26
4Q15 4Q16
29
+2%
4Q15
28
INVESTOR
RELATIONS
COGS by nature 1Q17 [%] Variation of main cost inputs by nature [%]
COGS AND SG&A
7%
23%
11%
51%
1%
7%
720.9 M BRL 714.2 M BRL +0.9%
15.7 % 16.9 %
70.6 M BRL 68.4 M BRL +3.2% SG&A
Gross Margin -1.2pp
+6%
1Q17
364
1Q16
342
169
-14%
1Q17 1Q16
196
1Q17
-6%
51
1Q16
55
Materials
Labor & Profit sharing
Energy
COGS
1Q16 1Q17
Energy
Maintenance materials
Labor & Profit sharing
Others
Depreciation
Raw material
INVESTOR
RELATIONS
3Q16
9
-29
2Q16 1Q17 LTM
1Q16 LTM
177
1Q17
-152
47
1Q16 4Q16
-179
3Q15 2Q15
38
1Q15 4Q15
61 60 17 61
+173%
6.7% 7.7% 4.3% 7.1% -4.9%
5.5% 1.2% 5.0%
-22.9%
-3.4% 2.0%
Adjusted EBITDA [M BRL] and EBITDA Margin [%]
ADJUSTED EBITDA AND NET INCOME
Net income [M BRL] and net margin [%]
12.5% 16.9%
14.0% 11.3% 13.1% 11.4%
15.5% 16.0% 17.4% 15.9% 20.2%
120 138
405
3Q16 1Q17 1Q17 LTM
592
100
1Q16 LTM
2Q16 4Q16
97 88 133
+36%
-10%
-32%
1Q16 4Q15 3Q15
137 184
1Q15
137
2Q15
INVESTOR
RELATIONS
Accounts receivable [M BRL] and DSO [days] Inventories [M BRL] and DIO [days]
WORKING CAPITAL
Working capital [M BRL] and CCC [days] Accounts payable [M BRL] and DPO [days]
6047504748
+12 days
1Q17
533
419
3Q16
455
4Q16 2Q16
445
1Q16
464
4954
4840
45
+4 days
2Q16 1Q17 3Q16
372
312
1Q16 4Q16
374 410
350
43
393841
39
+4 days
302 316
1Q17
302
1Q16 3Q16
304 325
2Q16 4Q16
666260
4654
+12 days
526
2Q16 1Q16
525 582
511 441
4Q16 3Q16 1Q17
INVESTOR
RELATIONS
Investments 1Q17 vs. 1Q16 [M BRL]
INVESTMENTS
1) Includes intangibles
Significant reduction in investments, with focus on return on invested capital
14
4
Total
-36%
18 19
Estrategic¹
10
Maintenance
29
1Q17 1Q16
INVESTOR
RELATIONS FREE CASH FLOW [M BRL]
64.7
70.7
-29.4
-20.2
2Q16
-39.5
1Q16 3Q16
-26.3
176.2
-41.6 -17.7 -16.5
57.2
-22.0
155.4
-60.9 -50.9
-8.4 -29.2
40.7
4Q16
88.9
-29.4
1Q17
144.4
-49.9 -48.3
Investments FCO Taxes Net interest
-21.8 M BRL
Operating Cash Flow impacted by increase of working capital in the period
-38.6 -42.0
INVESTOR
RELATIONS
1.826
18
1.140
2019 - 2023 Up to 12 months
735
405 401
398
Cash
560
1.266
2024 - 2025
1.100
2018* Gross debt
307
13
Debt [M BRL]
DEBT STRUCTURE – MARCH/2017
Net debt/Adjusted EBITDA LTM Currency distribution [% total]
69%
31%
Cash position: 7 years of amortizations
4Q16
1.70x
1Q15
1.88x
2Q15 2Q16
1.63x
3Q16 3Q15
+0.4x
1Q17 4Q15
1.52x 1.34x
1.87x
1.26x
1.64x
1Q16
1.53x 64%
36%
De
bt
Cas
h
Foreign
Domestic
*Does not includes current portion
Domestic currency Foreign currencies
