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. — 9M 2009 Earnings Presentation

19 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Oct 30, 2009

  1. Slide 1: Erdemir Group 2009 9 Months Consolidated Financial Results

    Erdemir Group 2009 9 Months Consolidated Financial Results 30 October 2009

  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: ¾2009 Market Overview ¾2009 Financial Highlights for the First Nine Months 3 / 19

  4. Slide 4: European Union crude steel production and HRC prices

    In the European Union high prices are expected to decrease. Crude steel production increased by 45.2% in September 2009 compared to December 2008. EU27 CRUDE STEEL PRODUCTION ( YoY % ) * 50% 30% 10% -10% -30% -50% -70% J J J J J J J J J J J J A A N D A A N D A A N D A A F F F F O O O S S S S M M M M

  5. Slide 5: North America crude steel production and HRC prices

    In North America production are increasing while prices are stable. Crude steel production increased by 37.3% in September 2009 compared to December 2008. US CRUDE STEEL PRODUCTION ( YoY % )* 50% 30% 10% -10% -30% -50% -70% J J J J J J J J J J J J A A N D A A N D A A N D A A F F F F O O O S S S S M

  6. Slide 6: CIS crude steel production and HRC prices

    In the CIS, high prices are expected to decrease. Crude steel production increased by 39.4% in September 2009 compared to December 2008. CIS CRUDE STEEL PRODUCTION ( YoY % ) * 50% 30% 10% -10% -30% -50% J J J J J J J J J J J A A N D A A N D A A N D A A F F F F O O O S S S S M M M M M M M M 2007 2008

  7. Slide 7: Raw material prices fluctuating, finished goods prices expected to decrease

    Raw material prices are fluctuating whereas high prices of finished goods are expected to decrease. CHINA 2ND QUALITY COKING COAL SPOT CHINA PORT FINE ORE PRICE CFR EXPORT PRICE ( USD/TON ) USD/TON ( USD/TON ) USD/TON USD/TON 800 250 700 200 600 500 150 400 300 100 200 50 100 0 0 N D N D N D F F F F

  8. Slide 8: Shut down plants are restarting their production

    Shut down plants are restarting their production. 110 W O RLD CRUDE STEEL PRO DUCTIO N W O RLD PIG IRO N PRO DUCTIO N 105 100 95 90 85 80 75 70 Au g -08 Au g -09 Jan -08 Ap r-08 M ay-08 Ju n -08 Ju l-08 O ct-08 Jan -09 Ap r-09 M ay-09 Ju n -09 Ju l-09 F eb -08 Sep -08 No v-08 F eb -09 Dec-08 Sep -09

  9. Slide 9: Turkish flat and long steel market, 8 months 2009

    During the 8 month period in 2009, production and exports have increased in the flat steel market whereas they decreased in the long steel market. (Millon Tons) TURKISH FLAT STEEL (Millon Tons) TURKISH LONG STEEL 9,0 Production Consumption 8,2 16,0 Production Consumption 13,9 8,0 14,0 13,1 7,0 12,0

  10. Slide 10: Exports and imports of steel products down in 8 months of 2009

    Exports and imports of steel products were down during the 8 months of 2009 YoY by 10% and 36% respectively whereas flat products exports increased by 30% YoY. IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.803 13.792 12.666 278 4.347 3.858 3.871 4.996 10.835 12.095 1.337 225 221 2.355 148 118 1.217

  11. Slide 11: Agenda

    AGENDA: ¾2009 Market Overview ¾2009 Financial Highlights for the First Nine Months 11 / 19

  12. Slide 12: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2009/9M 2008/9M 2008 2007 Liquid Steel Production (000 Tons) 4.713 4.928 6.121 5.486 (1) Slab Production (000 Tons) 3.176 3.234 3.994 3.680 (2) Flat Steel Production (000 Tons) 3.550 3.478 4.182 4.206 Long Steel Production (000 Tons) 1.434 1.621 2.033 1.917 Flat Steel Shipm

  13. Slide 13: Liquid steel production

    Liquid steel production in 2009 decreased by 4% compared to 2008 whereas it increased by 9% from 2Q to 3Q 2009. LIQUID STEEL PRODUCTION ( 000 TONS ) 6.121 %4 5.486 4.928 4.713 1.621 1.766 1.628 1.540 1.590 1.495 2008 2009 2008 2009 2008 2009 2008 2009 2008 2007 1.Q. 2.Q. 3.Q. 9M 13 / 19

  14. Slide 14: Production volumes

    In 3Q 2009, finished goods output increased by 9% and 6% compared to 2Q 2009 and 3Q 2008 respectively. PRODUCTION VOLUMES ( 000 TONS ) 6.214 6.123 5.099 4.985 2.033 1.917 Long Long 1.621 1.434 1.486 1.632 1.326 1.160 CRC CRC 1.656 1.732 1.852 1.693 1.560 1.591 530 570 620 330 534 471 2.390 2.696 2.5

  15. Slide 15: Sales volume increased by 7% in 2009

    The sales volume increased by 7% in 2009 compared to 2008. SALES VOLUME ( 000 TONS ) %7 5.972 6.215 5.176 4.841 1.920 2.040 Long 1.407 Long 1.558 1.688 1.214 1.471 CRC CRC 1.261 1.609 1.733 1.840 1.850 1.393 1.594 502 566 642 516 324 436 413 2.556 2.461 2.607 448 326 438 451 2.023 375 HRC 658 840 76

  16. Slide 16: Net sales revenue in Q3 2009 increased by 5% over Q2

    Net sales revenue in Q3 2009 increased by 5% compared to Q2 2009. NET SALES REVENUE ( MILLION TL ) 6.809 5.634 1.563 5.357 1.218 763 3.607 1.002 5.246 6 %5 4.594 %1 4.417 1.239 1.303 1.065 2.605 363 218 422 877 1.086 642 2009/1.Q. 2009/2.Q. 2009/3.Q. 2009 2008 2008 2007 9M DOMESTIC EXPORT TOTAL 16 /

  17. Slide 17: Flat and long steel domestic and export sales breakdown

    Sales to Steel Service Centers and Household Appliances industries increased by 91% and 195% respectively in Q3 2009 compared to Q2 2009*. FLAT STEEL DOMESTIC SALES BREAKDOWN ( %) FLAT STEEL EXPORT SALES BREAKDOWN ( %) 1% 3% 3% 13 % 3% 4% 7% 6% 7% 45 % 3% 74% 26% 4% 10% 10 % 67% 16 % PIPE and PROFIL

  18. Slide 18: EBITDA recovery in 3Q 2009 and net profit

    EBITDA had a recovery in the 3Q 2009 compared to 2Q 2009. EBITDA ( MILLION TL ) 1.999 1.097 782 136 80 -55 -1 2009/1.Q. 2009/2.Q. 2009/3.Q. 2009 2008 2008 2007 9M NET PROFIT ( MILLION TL ) 1.459 704 228 -32 -291 -164 -95 2009/1.Q. 2009/2.Q. 2009/3.Q. 2009 2008 2008 2007 9M 18 / 19

  19. Slide 19: Number of employees decreased by about 10% since 2008

    Number of employees decreased by about 10% since 2008, primarily through voluntary redundancies and retirements. NUMBER OF EMPLOYEES 15.015 15.063 14.598 14.637 14.056 13.216 2004 2005 2006 2007 2008 2009/9M In March 2009, about 800 employees have left the Group through the voluntary redundancy prog

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