Eregli Demir Ve Celik Fabrikalari T.a.s. · BIST:EREGL

Eregli Demir Ve Celik Fabrikalari T.a.s — Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — Q1 2012 Earnings Presentation

27 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, May 8, 2012

  1. Slide 1: Erdemir Group 2012 First Quarter Consolidated Financial Results

    Erdemir Group 2012 First Quarter Consolidated Financial Results 8 May 2012

  2. Slide 2: Disclaimer

    DISCLAIMER Ereğli Demir Çelik Fabrikaları T.A.Ş. (Erdemir) may, when necessary, make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. Erdemir has made the necessary arrangements about the amounts and results of such inform

  3. Slide 3: Agenda

    Agenda 2012 Market Overview 2012 1Q Results 3 / 27

  4. Slide 4: CIS and EU27 crude steel production and prices

    -50% -40% -30% -20% -10% 0% 10% 20% 40% 50% 60% 30% -50% -25% 25% 50% 75% 0% Mar-05 Mar-05 Jun-05 Jun-05 Sep-05 Sep-05 Dec-05 Dec-05 SOURCE: * WSA Mar-06 Mar-06 Jun-06 Jun-06 Sep-06 Sep-06 ** BLOOMBERG Dec-06 Dec-06 Mar-07 Mar-07 Jun-07 Jun-07 Sep-07 Sep-07 Dec-07 Dec-07 Mar-08 Mar-08 Jun-08 Jun-08

  5. Slide 5: Coke prices are decreasing

    0 100 200 300 400 600 700 800 500 200 400 600 800 0 1.000 1.200 1.400 04.2008 04.2008 USD/TON USD/TON 07.2008 07.2008 10.2008 10.2008 01.2009 01.2009 SOURCE: BLOOMBERG 04.2009 04.2009 07.2009 07.2009 10.2009 10.2009 EFFECTIVE PRICE 01.2010 01.2010 ERDEMIR GROUP HRC 04.2010 04.2010 07.2010 07.2010 10

  6. Slide 6: Turkish steel production increased by 17% in 2012 3M YoY

    Turkish steel production increased by 17% in 2012 3M YoY PRODUCTION ( 000 TONS ) 8.772 31.943 7.506 26.067 26.684 26.300 2.320 25.133 9.075 4.257 4.543 2.106 4.421 6.629 22.868 6.452 21.810 22.141 20.712 5.400 19.671 2007 2008 2009 2010 2011 2011 3M 2012 3M Long Flat Total CONSUMPTION ( 000 TONS ) 2

  7. Slide 7: Turkish Steel Market (cont'd)

    Turkish Steel Market ( cont’d ) IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.806 4.129 94 15.861 15.255 0,1 14.465 3.697 13.795 1.368 218 60 20 414 1.651 212 35 2.407 2.298 577 465 1.244 2.206 1.520 1.625 2.393 561 3.523 12.937 3.249 10.890 11.786 10.505 2.539 9.211 2007 2008 2009 2010 2011 2011 3

  8. Slide 8: Automotive production was 281 thousand units in 2012 3M YoY

    Automotive production was 281 thousand units in 2012 3M YoY AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 407 344 214 200 304 281 193 144 2011 3M 2012 3M 2011 3M 2012 3M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 78 72 2011 3M 2012 3M Light Vehicles SOURCE: AUTO

  9. Slide 9: White goods exports and production increased in 2012 3M

    White goods exports and production increased by 14% and 8% respectively in 2012 3M YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) 14% 3.413 1.395 1.409 2.990 2011 3M 2012 3M 2011 3M 2012 3M WHITE GOODS PRODUCTION (000 UNITS) 8% 4.578 4.957 2011 3M 2012 3M SOURCE: WHITE GO

  10. Slide 10: After the contraction in 2009, all markets are expanding

    After the contraction in 2009, all markets are expanding CHANGES IN SECTOR DEVELOPMENT INDEX (% YoY) 40,0% 32,6% 30,0% 33,3% 22,3% 20,1% 20,0% 16,0% 8,0% 9,5% 4,9% 10,0% 6,2% 11,7% 9,0% 17,1% 11,2% 7,0% -0,2% 0,0% 4,0% 4,5% -4,2% 6,0% -6,8% -10,0% -8,1% -16,1% -20,0% -22,9% -30,0% -30,0% 2008 2009 2

  11. Slide 11: HRC sales prices are higher than December 2011

    HRC sales prices are higher than December 2011 Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 1.300 1.200 As of April 2012, EU HRC price was 1.100 733 USD, China HRC spot price is 690 1.000 900 USD, USA export HRC price is 650 800 USD. The prices were 608 USD, 670 700 U

  12. Slide 12: Agenda

    Agenda 2012 Market Overview 2012 1Q Results 12 / 27

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2012 1Q 2011 1Q 2011 2010 Liquid Steel Production (000 Tons) 2.037 1.837 7.656 7.311 (1) Slab Production (000 Tons) 1.713 1.598 6.660 5.674 (2) Flat Steel Production (000 Tons) 1.506 1.505 6.119 5.373 Long Steel Production (000 Tons) 278 187 794 1.420 Flat Steel Shipments (

  14. Slide 14: Liquid steel production was 2.0 million tons in 2012 3M

    Liquid steel production was 2,0 million tons in 2012 3M LIQUID STEEL PRODUCTION ( 000 TONS ) 7.656 7.311 6.619 1.929 2.037 1.837 2011 2012 2011 2011 2010 2009 4Q 1Q 14 / 27

  15. Slide 15: Production was 1.8 million tons in 2012 3M

    Production was 1,8 million tons in 2012 3M PRODUCTION VOLUMES ( 000 TONS ) 6.913 6.793 6.681 794 1.420 1.869 1.652 1.501 1.590 1.741 1.784 1.692 278 4.467 313 187 3.872 3.222 425 370 418 1.003 1.136 1.087 2011 2012 2011 2011 2010 2009 4Q 1Q Hot Cold Long Total 15 / 27

  16. Slide 16: Sales volumes increased by 11% in 2012 1Q YoY

    Sales volumes increased by 11% in 2012 1Q YoY SALES VOLUMES ( 000 TONS ) 6.986 6.647 6.516 791 1.858 1.393 1.551 1.456 1.665 1.614 1.849 1.667 282 197 4.305 330 3.667 3.464 416 415 361 923 1.151 1.055 2011 2012 2011 2011 2010 2009 4Q 1Q Hot Cold Long Total 16 / 27

  17. Slide 17: Net sales revenue increased by 20% in 2012 3M YoY

    Net sales revenue increased by 20% in 2012 3M YoY NET SALES REVENUE ( MILLION TL ) 8.921 1.556 6.633 890 5.266 1.217 7.365 2.256 2.435 5.743 2.028 332 294 4.049 414 1.924 2.141 1.614 2011 2012 2011 2011 2010 2009 4Q 1Q Domestic Export Total 17 / 27

  18. Slide 18: Sales to pipe and profile industry increased in 2012 3M YoY

    Sales to pipe and profile industry increased in 2012 3M YoY 2012 3M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2011 3M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 164Kt; 12% 112Kt; 10% 62Kt; 4% 71Kt; 7% 323Kt; 29% 518Kt; 37% 116Kt; 8% 124Kt; 11% 1.408Kton; 1.108Kton; 66Kt; 5% 90% 75% 56Kt; 5% 149Kt; 11% 14

  19. Slide 19: Flat steel sales to North America was 26% of flat export

    Flat steel sales to North America countries was 26% of our flat export in 2012 3M 2012 3M FLAT STEEL EXPORTS BREAKDOWN (%) 2011 3M FLAT STEEL EXPORTS BREAKDOWN (%) 4Kt; 2% 9Kt; 3% 12Kt; 8% 47Kt; 13% 42Kt; 26% 70Kt; 44% 160Kton; 363Kton; 10% 25% 33Kt; 20% 306Kt; 84% 2012 3M LONG STEEL EXPORTS BREAKDO

  20. Slide 20: Sales prices and cost of sales

    Jan-09 Jan-09 Feb-09 USD/TON USD/TON Feb-09 Mar-09 Mar-09 Apr-09 Apr-09 May-09 May-09 Jun-09 Jun-09 Jul-09 Jul-09 Aug-09 Aug-09 Sep-09 Sep-09 Oct-09 Oct-09 Nov-09 Nov-09 Dec-09 Dec-09 Jan-10 Jan-10 Feb-10 Feb-10 Mar-10 Mar-10 Apr-10 Apr-10 May-10 May-10 Jun-10 Jun-10 Jul-10 Erdemir Group Flat Sales

  21. Slide 21: Net profit was 124 million TL in 2012 1Q

    Net profit was 124 million TL in 2012 1Q EBITDA ( MILLION TL ) 2.500 32,0% 2.034 2.000 24,0% 21,7% 22,8% 21,4% 15,9% 1.420 1.500 16,0% 1.000 8,4% 7,3% 8,0% 359 441 382 500 0,0% 204 0 -8,0% 2011 2012 2011 2011 2010 2009 4Q 1Q EBITDA EBITDA Margin NET PROFIT/(LOSS) ( MILLION TL ) 1.200 36,0% 1.006 1.0

  22. Slide 22: Erdemir Group has 610 million USD cash at end of March 2012

    Erdemir Group has 610 million USD cash and cash equivalents at the end of 2012 March BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE ST Portion of LT Debt 3.785 ( MILLION USD ) Short-Term Debt Long-Term Debt Cash and Cash Equivalents 114 2.998 1.368 2.767 600 2.529 2.549 537 105 2.140 20 579

  23. Slide 23: Raw materials made up 71% of cost of goods sold in 2012 1Q

    Raw materials made up 71% of the cost of goods sold in 2012 1Q COST OF PRODUCTION BREAKDOWN* - % 3% 3% 4% 4% 4% 5% 6% 6% 7% 6% 6% 6% 10% 12% 12% 71% 69% 67% 2012 1Q 2011 2010 Raw Materials Personnel Expenses Energy Consumables Depreciation Other * EXCLUDING INVENTORY WRITEDOWNS AND PROVISION RELEASE

  24. Slide 24: Flat cost per ton excluding raw materials was 191 USD/ton

    Flat cost per ton excluding raw materials was realised as 191 USD/ton in 2012 1Q 500 2.100 FLAT PRODUCTS ( USD/TON )* 450 1.565 1.621 1.489 1.505 1.428 1.506 400 1.326 1.322 1.600 1.262 1.284 1.278 350 1.174 1.050 300 1.100 250 200 600 150 111 120 103 116 90 85 78 94 85 101 109 106 100 86 100 50 90

  25. Slide 25: Capital expenditures of 234 million USD planned for 2012

    Capital expenditures of 234 million USD is planned for 2012 ( M USD ) 954 116 693 672 556 130 36 361 838 360 543 520 234 136 164 330 332 130 12 60 171 22 125 107 104 30 63 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 - 2015 İskenderun Investments Ereğli Investments 25 / 27

  26. Slide 26: Number of employees was 13,405 in March 2012

    Number of employees was 13.405 in March 2012 NUMBER OF EMPLOYEES 15.063 14.637 13.553 13.433 13.405 13.161 2007 2008 2009 2010 2011 2012 March 26 / 27

  27. Slide 27: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — Q1 2012 Earnings Presentation on 6ix