El Ezz Aldekhela Steel-Alexandria · EGX:IRAX
El Ezz Aldekhela Steel-Alexandria — Al Ezz Steel Rebars S.A.E. — H1 2009 Earnings Presentation
22 slides from El Ezz Aldekhela Steel-Alexandria's earnings presentation, Aug 27, 2009
Slide 1: H1 2009 Financial Results Presentation
Al Ezz Steel Rebars S.A.E. H1 2009 Financial Results Presentation 27 August 2009
Slide 2: Disclaimer
Di l i Disclaimer Al Ezz Steel Rebars S.A.E. (“ezzsteel” or “ESR”) give notice that: The particulars of this presentation do not constitute any part of an offer or a contract. The information contained in this presentation may contain certain projections and forward‐looking statements that reflect t
Slide 3: Key Highlights
K Hi Key hli ht Highlights Global steel industry is slowly recovering from the economic downturn The continued growth of the Egyptian market has been a fundamental strength for the company Strong financial position Choice of technology provides flexibility to ezzsteel’s operations Continued commitme
Slide 4: Steel Market Overview
St l Market Steel M k t Overview O i Milllion Tonnes 4 Source: World Steel Association
Slide 5: Overview of Domestic Steel Market
O Overview i off D Domestic ti St Steell M Market k t Source: Company estimates. 5
Slide 6: Domestic Market Share
D Domestic ti MMarket k t Sh Share H1 2009 Flat Products H1 2009 Longg Products Market size: 553 thousand tonnes Market size: 4,240 thousand tonnes 6
Slide 7: H1 2009 Key Highlights
H1 2009 Key K Hi hli ht Highlights Production Revenue EBITDA Net Income 7
Slide 8: H1 2009 Production
H1 2009 Production P d ti 1,000 953 877 735 '000 Tonnes 656 470 461 500 399 0 0 EZDK Long EZDK Flat ESR Long EFS Flat H1 2008 H1 2009 8
Slide 9: H1 2009 Sales Breakdown
H1 2009 Sales S l B Breakdown kd By Product By Market Export Flat EGP 801mn EGP 1,412mn 13% 22% Long Domestic EGP 4,909mn EGP 5,521mn 78% 87% Ezzsteel ggenerates the largest g portion p of its revenues in its ggrowingg domestic market, where it enjoys a leading position 9
Slide 10: H1 2009 Revenues
H1 2009 Revenues R Consolidated revenues EGP Mn ESR/ESM EZDK EFS ezzsteel Long 2 052 2,052 2 857 2,857 4909 Flat 1,347 65 1,412 Others 64 2 66 Total 2 052 2,052 4 268 4,268 67 6 388 6,388 Standalone Sales 2,052 4,285 256 10
Slide 11: H1 2009 Cost Breakdown
H1 2009 Cost C t Breakdown B kd EGP Mn H1 2008 H1 2009 S l Sales 11 054 11,054 6 387 6,387 COGS 8,323 5,656 COGS/Sales 75% 89% 11
Slide 12: H1 2009 Profitability
H1 2009 Profitability P fit bilit Operational profits EBITDA breakdown by division Profitability per tonne Profitability hit by lower steel prices and fixed costs EZDK EBITDA hit by low HRC prices but ESR / ESM EBITDA supported by strong operational performance Q2 2009 profitability per tonne up vs
Slide 13: Robust balance sheet
R b tb Robust balance l sheet h t Successful EGP2.5bn refinancing of EZDK debt EFS capital increase successfully completed Cash on hand at the end of the p period amounted to EGP2.4 billion ezzsteel’s net debt at end of period EGP5.4 billion 13
Slide 14: Commitment to Growth Strategy
C it t to Commitment t Growth G th Strategy St t ezzsteel’s expansion to continue Vertical integration Capacity expansion Prioritisation of projects to ensure optimal economic returns Ultimate objective is to ensure that EZDK’s performance is replicated at all other business units 14
Slide 15: Outlook
O tl k Outlook ezzsteel remains confident about the continued strength of the Egyptian market, which has remained largely unaffected by the global economic slowdown Local demand remains very strong, in particular house building and infrastructure projects Starting to see some signals that there is a
Slide 16: Summary
Summary Buoyant local market demand for long product, signs of strengthening international market for flat steel Strong operational performance helped to offset weak price environment Growth strategy to continue Benefit of flexible model being seen, down cycle being used to repurpose EFS 16
Slide 17: Q&A
Q&A
Slide 18: Divisional Review: EZDK (Alexandria)
Di i i Divisional l Review: R i EZDK EZDK (Alexandria) Sales: H1 2008 H1 2009 Value: EGP 6.0 bn EGP 4.3 bn Volume: Long: 890 thousand ton 925 thousand ton Flat: 445 thousand ton 492 thousand ton E Exports t as % off Sales: S l Long: 2% 2% Flat: 40% 55% EBITDA: EGP 2.3bn EGP 0.8bn Production: LLong P
Slide 19: Divisional Review: ESR/ESM (Sadat City & 10th of Ramadan)
Di i i Divisional l Review: R i ESR/ESM ESR/ESM ( Sadat City & 10th of Ramadan) Sales: H1 2008 H1 2009 Value: EGP 3.0 bn EGP 2.1 bn Volume: 657 thousand ton 657 thousand ton Exports as % of Sales: 1% 0% EBITDA: EGP 303 mn EGP 207mn Production: Long Products: 655 thousand ton 734 thousand ton Billets
Slide 20: Divisional Review: EFS (Suez)
Di i i Divisional l Review: R i EFS EFS (Suez) Sales: H1 2008 H1 2009 Value: EGP2.1 bn EGP 0.3 bn Volume: 494 thousand ton 30 thousand ton E Exports t as % off SSales: l 82% 100% EBITDA: EGP 89 mn EGP ‐129 mn Production: Flat Products: 460 thousand ton 0 thousand ton technology to produce thin gauge
Slide 21: ezzsteel at a Glance
ezzsteel t l att a Glance Gl Ezz Industries Free Float 65.7% 34.3% The largest steel producer in the Middle East and Africa with a total actual capacity of 5.3mn 5 3mn tonnes per annum 3.1mn tonnes of long products (Rebar) 2.2mn tonnes of flat products (HRC) 53.24% 90.73% ezzsteel is listed on the E
Slide 22: Relative Share Performance Vs. EGX30
Relative l i Share h Performance f Vs. EGX30 Share Data: YTD High: 15.1 EGP YTD Low: 4.7 EGP Av. Daily Traded Volume: 3.7 mn Shares 200 Av. Daily Traded Value: 37.2 mn EGP 180 Relattive performance (rebased to 100) 160 140 120 100 80 60 40 20 0 2009/01/04 / / 2009/02/09 / / 2009/03/17 / / 2009/04/23
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