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) — H1 2011 Earnings Presentation

28 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Aug 5, 2011

  1. Slide 1: Erdemir Group 2011 6 Months Consolidated Financial Results

    Erdemir Group 2011 6 Months Consolidated Financial Results 5 August 2011

  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 2011 Market Overview 2011 6 Months Results 3 / 27

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

    -50% -25% 25% 50% 75% 0% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Jun-04 Jun-04 Sep-04 Sep-04 Dec-04 Dec-04 Mar-05 Mar-05 SOURCE: * WSA Jun-05 Jun-05 Sep-05 Sep-05 Dec-05 Dec-05 ** BLOOMBERG Mar-06 Mar-06 Jun-06 Jun-06 Sep-06 Sep-06 Dec-06 Dec-06 Mar-07 Mar-07 Jun-07 Jun-07 Sep-07 Sep-07

  5. Slide 5: Raw material prices are stable

    0 100 200 300 400 500 600 700 800 200 400 600 800 0 1.000 1.200 1.400 01.2008 01.2008 USD/TON USD/TON 04.2008 04.2008 07.2008 07.2008 10.2008 SOURCE: BLOOMBERG 10.2008 01.2009 01.2009 04.2009 04.2009 EFFECTIVE PRICE 07.2009 07.2009 ERDEMIR GROUP HRC 10.2009 10.2009 01.2010 01.2010 04.2010 04.2010 07

  6. Slide 6: Turkish steel production increased by 25% in 2011 6M YoY

    Turkish steel production increased by 25% in 2011 6M YoY PRODUCTION ( 000 TONS ) 26.684 15.390 26.067 26.295 25.133 23.359 4.257 4.543 12.349 4.460 4.421 6.629 4.122 2.909 21.810 22.141 20.712 10.930 19.237 19.666 9.440 2006 2007 2008 2009 2010 2010 6M 2011 6M Long Flat Total Long Flat Total CONSUMP

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

    Turkish Steel Market ( cont’d ) IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.806 6.533 15.861 54 94 14.486 13.795 218 5.621 1.368 1.105 12.668 1.651 212 31 35 2.407 0,1 1.519 419 1.244 2.206 906 1.394 1.625 1.500 1.630 3.523 12.937 11.786 4.467 9.645 10.890 3.671 9.232 2006 2007 2008 2009 2010 201

  8. Slide 8: Turkey's pipe export increased 7,7% in 2011 6M YoY

    Turkey’s pipe export increased 7,7% in 2011 6M YoY PIPE EXPORTS (000 TONS) %7,7 801 863 2010 6 M 2011 6M SOURCE: ERDEMİR GROUP MARKETING AND SALES COORDINATION 8 / 27

  9. Slide 9: Automotive production and sales increased in 2011 6M YoY

    Automotive production and sales increased by 14% and 25% respectively in 2011 6M YoY AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 862 %14 689 %25 417 399 622 547 445 289 2010 6M 2011 6M 2010 6M 2011 6M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 80 71 2010 6M 20

  10. Slide 10: White goods domestic sales and production increased in 2011 6M YoY

    White goods domestic sales and production increased by 21% and 11% respectively in 2011 6M YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) %6 %21 6.129 6.504 3.062 2.522 2010 6M 2011 6M 2010 6M 2011 6M WHITE GOODS PRODUCTION (000 UNITS) %11 9.566 8.584 2010 6M 2011 6M SOUR

  11. Slide 11: After the contraction in 2009, all markets are expanding

    After the contraction in 2009, all markets are expanding CHANGES IN SECTOR DEVELOPMENT INDEX (% YoY) 30,0% 25,0% 23,4% 19,6% 15,0% 20,0% 11,7% 11,0% 9,5% 18,0% 10,0% 9,0% 8,3% 6,0% 10,5% 8,5% 5,7% 9,0% -3,9% -0,7% 7,9% 0,0% 3,1% -6,2% -10,0% -8,1% -16,5% -16,3% -20,0% -24,0% -30,0% 2007 2008 2009 20

  12. Slide 12: Sales prices are going up in 2011 YoY

    Sales prices are going up in 2011 YoY Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 1.300 1.200 As of July 2011, EU HRC price is 1.100 1.000 786 USD, China HRC spot price is 750 900 USD, USA export HRC price is 763 800 USD. The prices were 661 USD, 694 700 600 USD, 515

  13. Slide 13: Agenda

    Agenda 2011 Market Overview 2011 6 Months Results 13 / 27

  14. Slide 14: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2011 1H 2010 1H 2010 2009 Liquid Steel Production (000 Tons) 3.761 3.726 7.311 6.619 (1) Slab Production (000 Tons) 3.345 2.786 5.674 4.569 (2) Flat Steel Production (000 Tons) 3.067 2.606 5.373 4.812 Long Steel Production (000 Tons) 314 827 1.420 1.869 Flat Steel Shipments

  15. Slide 15: Liquid steel production was 3,8 million tons in 2011 6M

    Liquid steel production was 3,8 million tons in 2011 6M LIQUID STEEL PRODUCTION ( 000 TONS ) 7.311 6.619 6.122 3.761 3.726 1.837 1.895 1.924 1.831 2011 2010 2011 2010 2011 2010 2010 2009 2008 1Q 2Q 1H 15 / 27

  16. Slide 16: Production was 3,4 million tons in 2011 1H

    Production was 3,4 million tons in 2011 1H PRODUCTION VOLUMES ( 000 TONS ) 6.793 6.681 6.132 1.420 Long 1.869 Long 1.950 1.502 Long Cold 1.590 3.381 3.433 Cold 1.486 314 827 Cold 813 1.685 1.795 1.696 698 127 1.638 3.871 187 473 354 3.222 418 395 2.696 335 363 2.254 1.908 1.080 987 1.174 921 Hot Hot

  17. Slide 17: HRC sales volume increased by 25% in 2011 1H YoY

    HRC sales volume increased by 25% in 2011 1H YoY SALES VOLUME ( 000 TONS ) 6.986 6.516 1.858 5.895 1.393 Long Long 1.963 1.456 1.665 Long Cold 3.351 3.188 Cold 321 1.471 727 Cold 801 1.668 1.683 197 1.685 124 1.503 681 3.667 3.464 451 415 386 276 2.461 321 360 2.229 1.780 1.056 913 1.173 867 Hot Hot

  18. Slide 18: Net sales revenue increased by 32% in 2011 6M YoY

    Net sales revenue increased by 32% in 2011 6M YoY NET SALES REVENUE ( MILLION TL ) 6.633 6.800 890 1.218 Exp. Exp. 5.266 4.217 1.217 Exp. 809 3.204 337 5.743 5.583 2.028 2.189 1.621 4.049 414 1.583 395 3.408 162 175 2.867 1.614 1.794 1.421 1.446 Dom. Dom. Dom. 2011 2010 2011 2010 2011 2010 2010 2009

  19. Slide 19: Sales to automotive sector increased by 6% in 2011 6M

    Sales to automotive sector increased by 6% in 2011 6M 2011 6M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2010 6M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 249Kt; 10% 206Kt; 9% 136Kt; 6% 128Kt; 6% 781Kt; 33% 121Kt; 5% 262Kt; 11% 952Kt; 42% 2.374Kton; 103Kt; 5% 2.246Kton; 78% 91% 100Kt; 4% 177Kt; 8% 252Kt;

  20. Slide 20: Flat steel sales to EU countries increased by 27% in 2011

    Flat steel sales to EU countries increased by 27% in 2011 2011 6M FLAT STEEL EXPORTS BREAKDOWN (%) 2010 6M FLAT STEEL EXPORTS BREAKDOWN (%) 20Kt; 3% 15Kt; 7% 4Kt; 1% 69Kt; 10% 5Kt; 2% 36Kt; 17% 656Kton; 215Kton; 22% 9% 33Kt; 15% 126Kt; 59% 564Kt; 86% 2011 6M LONG STEEL EXPORTS BREAKDOWN (%) 2010 6M

  21. Slide 21: Erdemir Group sales prices and cost of sales

    Jan-08 Jan-08 Feb-08 Feb-08 Mar-08 USD/TON Mar-08 USD/TON Apr-08 Apr-08 May-08 May-08 Jun-08 Jun-08 Jul-08 Jul-08 Aug-08 Aug-08 Sep-08 Sep-08 Oct-08 Oct-08 Nov-08 Nov-08 Dec-08 Dec-08 Jan-09 Jan-09 Feb-09 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 Erde

  22. Slide 22: Net profit increased by 37% in 2011 1H YoY

    Net profit increased by 37% in 2011 1H YoY EBITDA ( MILLION TL ) 1.600 1.420 32,0% 1.400 28,5% 1.200 21,7% 25,6% 23,7% 24,0% 1.001 23,4% 21,4% 1.000 18,3% 751 775 16,0% 800 560 11,4% 600 7,3% 8,0% 441 461 400 382 290 0,0% 200 0 -8,0% 2011 2010 2011 2010 2011 2010 2010 2009 2008 1Q 2Q 1H EBITDA EBITD

  23. Slide 23: Erdemir Group cash and cash equivalents at end of 2011 2Q

    Erdemir Group has 874 million USD cash and cash equivalents at the end of 2011 2Q BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE ST Portion of LT Debt ( MILLION USD ) Short-Term Debt 3.785 Long-Term Debt Cash and Cash Equivalents 2.998 1.368 2.767 2.816 600 124 106 90 537 581 78 2.140 20 52

  24. Slide 24: Raw materials made up 65% of cost of goods sold in 2011 6M

    Raw materials made up 65% of the cost of goods sold in 2011 6M COST OF PRODUCTION BREAKDOWN* - % 1% 6% 4% 5% 6% 4% 7% 6% 6% 6% 6% 8% 13% 12% 13% 65% 67% 66% 2011 6M 2010 2009 Raw Materials Personnel Expenses Energy Consumables Depreciation Other * EXCLUDING INVENTORY WRITEDOWNS AND PROVISION RELEASE

  25. Slide 25: Flat cost per ton excluding raw materials in 2011 2Q

    Flat cost per ton excluding raw materials was realised as 206 USD/ton in 2011 2Q FLAT PRODUCTS ( USD/TON )* 500 2.100 450 1.570 1.489 1.498 400 1.326 1.322 1.600 1.232 1.262 1.284 1.278 350 1.126 1.120 1.174 1.050 300 1.100 250 704 200 135 151 600 131 207 150 90 94 101 109 111 120 85 78 86 89 100 10

  26. Slide 26: Capital expenditures planned for 2011

    Capital expenditures of 159 million USD is planned for 2011 ( M USD ) 954 116 693 672 556 130 36 550 361 838 385 543 520 136 159 332 129 12 22 77 125 165 107 81 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 - 2014 İskenderun Investments Ereğli Investments 26 / 27

  27. Slide 27: Number of employees was 13.413 in 2011 June

    Number of employees was 13.413 in 2011 June NUMBER OF EMPLOYEES 15.063 14.637 14.056 13.553 13.413 13.161 2006 2007 2008 2009 2010 2011 June 27 / 27

  28. Slide 28: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — H1 2011 Earnings Presentation on 6ix