Transcript Vale SA

Vale SA
Presented by:
Harpreet Singh
Johannes Tannert
Telecom Speciality,
0.81%
Services, 1.39%
Commodities,
4.88%
Healthcare,
15.72%
Information
Technology,
Consumer
9.22%
Discretionary,
7.45%
Consumer
Staples,
7.97%
Materials,
7.45%
Utilities,
12.42%
Industrials,
4.99%
Financials,
20.66%
Energy, 7.05%
North America
USA
Canada
Mexico
South America
Brazil
Others
Asia
China
Japan
South Korea
Taiwan
Others
Europe
Germany
Belgium
France
UK
Italy
Others
Rest of the World
Total
In billions
18
16
14
12
10
8
6
4
2
0
1Q11
2Q11
3Q11
Ratio
Vale
Industry
P/E
4.60
9.90
EPS
$ 5.30
n.a.
Current Ratio
2.15
1.70
Quick ratio
1.50
1.20
Dividend Yield
0.20% , this year: 9.99%
3.1%
Return on Assets
18.2%
11.9%
Return on Equity
33.73%
n.a.
Profit Margin
40%
26%
Debt/Equity ratio
40%
34%
Return on Investment
23.50
17.20
Price/Operating Profit
3.48
7.45
By Mineral
Production in ‘000 metric tons
Iron-ore
312,000
Pellets
50,000
Coal
16,600
Nickel
300
Copper
340
Potash
650
Phosphate Rock
8,000
12
10
8
6
2009
2010
2011
2012
4
2
0
-2
US
-4
-6
Source: IMF
Euro Area
China
India
Brazil
Source: McKinsey & Company
Source: PwC
Source: McKinsey & Company
Source: McKinsey & Company
14.00%
12.00%
World
China
India
US
C&S America
Europe
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2011
Source: Short Range Outlook by World Steel Association
2012
Price per mt
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0
Price per mt
End of 2011
2012
2013
2014
Source: Goldman Sachs & Partners Australia Pty Ltd
• Iron ore shortage 2012 and 2013
• Over-Supply from 2014 on
2015
Source: Macquarie Research, September 2011
• Nickel prices
fell from over
$29,000 to
under $17,000
Source: McKinsey & Company
Recommendation: Buy