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) — FY2013 Earnings Presentation

33 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 13, 2014

  1. Slide 1: Erdemir Group 2013 Consolidated Financial Results

    Erdemir Group 2013 Consolidated Financial Results 13 February 2014 1 / 32

  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 2013 Market Overview 2013 Results 3 / 32

  4. Slide 4: Crude steel production and prices

    -50% -25% 25% 50% 75% 0% -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% 0% Dec-06 Dec-06 Mar-07 Mar-07 Jun-07 Jun-07 Sep-07 Sep-07 Dec-07 Dec-07 Source: * worldsteel Mar-08 Mar-08 ** Bloomberg Jun-08 Jun-08 Sep-08 Sep-08 Dec-08 Dec-08 Mar-09 Mar-09 Jun-09 Jun-09 Sep-09 Sep-09 Dec-09 Dec-09 Mar-10

  5. Slide 5: Crude steel capacity utilization ratio of Erdemir Group is increasing

    Crude steel capacity utilization ratio of ERDEMİR Group is increasing CRUDE STEEL CAPACITY UTILIZATION RATIO 94,0% 92,8% 92,0% 90,0% 88,4% 88,0% 86,0% 84,1% 84,0% 82,0% 80,2% 80,0% 78,3% 77,9% 78,0% 76,0% 2011 2012 2013 Erdemir Group World Source: worldsteel 5 / 32

  6. Slide 6: Coking coal and iron ore prices are decreasing

    Coking coal and iron ore prices are decreasing COKING COAL PRICES IRON ORE PRICES USD/TON (HCC PEAK DOWNS REGION FOB AUSTRALIA) (IODEX 62% FE CFR NORTH CHINA MID) USD/TON 240 160 USD/TON 220 150 200 140 130 180 120 160 110 140 100 120 90 100 80 05.2012 11.2012 01.2012 03.2012 07.2012 09.2012 01.2013

  7. Slide 7: Turkish steel consumption increased by 10% in 2013 YoY

    Turkish steel consumption increased by 10% in 2013 YoY PRODUCTION ( 000 TONS ) 36.405 34.286 31.943 9.869 9.039 26.300 9.075 25.133 6.629 4.421 26.536 25.247 22.868 20.712 19.671 2013 2012 2011 2010 2009 Long Flat Total CONSUMPTION ( 000 TONS ) 31.301 28.468 26.948 23.604 14.630 13.627 13.210 18.048

  8. Slide 8: Turkish iron and steel product imports increased by 26% in 2013 YoY

    Turkish iron and steel product imports increased by 26% in 2013 YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.549 15.861 15.247 21 15.239 14.465 218 1 1.858 60 212 1.651 2.356 2.298 1.520 2.957 2.206 1.562 2.393 3.523 11.328 11.713 11.786 10.489 9.211 2013 2012 2011 2010 2009 Long Steel Billet

  9. Slide 9: Contraction in the automotive sector is expected

    Contraction in the automotive sector is expected CHANGES IN SECTOR DEVELOPMENT INDEX (% YoY) 40% 35% 33,4% 30% 32,6% 25% 22,1% 20% 20,0% 18,3% 15% 16,0% 7,3% 10% 11,3% 5,5% 6,8% 2,7% 3,0% 5% 11,2% 2,5% 2,5% 2,5% 5,5% 0% 1,0% 0,6% 1,3% 1,0% 0,0% -5% -5,5% -5,0% -10% 2010 2011 2012 2013 2014 (e) 2015

  10. Slide 10: HRC sales prices are lower than last year

    HRC sales prices are lower than last year Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 900 800 700 600 500 Mar-11 Mar-12 Mar-13 Nov-11 Nov-12 Nov-13 Jan-11 Jan-12 Jan-13 Jan-14 May-11 Sep-11 Jul-11 May-12 Jul-12 May-13 Sep-12 Jul-13 Sep-13 CIS EXPORT HRC BLACKSEA/BALT

  11. Slide 11: Billet sales prices are lower than last year

    Billet sales prices are lower than last year Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) BILLET PRICES ( USD/Ton ) 750 700 650 600 550 500 450 Nov-11 Nov-12 Nov-13 Mar-11 Mar-12 Mar-13 May-11 May-12 May-13 Jul-11 Sep-11 Jul-12 Sep-12 Jul-13 Sep-13 Jan-11 Jan-13 Jan-12 Jan-14 BILLET CHINA E

  12. Slide 12: Gündem

    Gündem 2013 Market Overview 2013 Results 12 / 32

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2013 2012 2011 Liquid Steel Production (000 Tons) 8.447 8.042 7.656 (1) Slab Production (000 Tons) 6.865 6.329 6.660 (2) Flat Steel Production (000 Tons) 6.427 5.983 6.119 Long Steel Production (000 Tons) 1.356 1.519 794 Flat Steel Shipments (000 Tons) 6.338 5.980 5.856 Lon

  14. Slide 14: Liquid steel production increased by 5% in 2013 YoY

    Liquid steel production increased by 5% in 2013 YoY LIQUID STEEL PRODUCTION ( 000 TONS ) 8.447 8.042 7.656 2.209 2.377 2.217 2.216 2.037 2.101 1.686 1.645 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2011 1. Quarter 2. Quarter 3. Quarter 4. Quarter 14 / 32

  15. Slide 15: Production increased by 4% in 2013 YoY

    Production increased by 4% in 2013 YoY PRODUCTION VOLUMES ( 000 TONS ) 7.783 7.501 1.356 6.913 1.519 794 1.844 1.598 1.652 2.045 2.067 1.899 2.131 2.132 1.784 1.686 1.540 4.583 4.384 4.467 445 416 161 334 509 278 326 406 462 439 370 493 410 414 404 450 1.161 1.136 1.158 1.083 1.335 1.209 956 929 201

  16. Slide 16: Sales volumes increased by 3% in 2013 YoY

    Sales volumes increased by 3% in 2013 YoY SALES VOLUMES ( 000 TONS ) 7.684 7.448 1.346 6.647 1.468 791 1.778 1.627 1.553 2.025 1.837 2.108 1.592 1.827 1.959 2.056 1.727 4.560 4.353 4.303 420 176 294 510 456 282 464 256 420 432 429 414 403 453 398 412 1.140 1.141 1.224 1.068 963 1.009 1.233 1.134 201

  17. Slide 17: Net sales revenue was 5,1 billion USD in 2013

    Net sales revenue was 5,1 billion USD in 2013 YoY NET SALES REVENUE ( MILLION USD ) 5.340 5.338 5.142 580 771 931 4.562 4.569 4.407 1.364 1.361 1.426 1.306 1.310 1.275 1.363 1.077 249 152 176 70 181 226 212 85 1.115 1.209 1.250 1.094 1.007 1.129 1.190 1.137 2013 2012 2013 2012 2013 2012 2013 2012 20

  18. Slide 18: Sales to household appliances industry and secondary production increased

    Sales to household appliances industry and secondary production increased in 2013 YoY 2013 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2012 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 708Kt; 12% 669Kt; 12% 332Kt; 6% 263Kt; 5% 2.034Kt; 2.005Kt; 35% 37% 548Kt; 9% 494Kt; 9% 5.819Kton; 5.386Kton; 92% 242Kt; 5%

  19. Slide 19: Flat steel sales to EU countries was 70% of flat export

    Flat steel sales to EU countries was 70% of our flat export in 2013 2013 FLAT STEEL EXPORTS BREAKDOWN (%) 2012 FLAT STEEL EXPORTS BREAKDOWN (%) 36Kt; 7% 57Kt; 10% 50Kt; 10% 15Kt; 2% 28Kt; 5% 71Kt; 12% 519Kton; 594Kton; 42Kt; 8% 8% 10% 90Kt; 15% 363Kt; 70% 361Kt; 61% 2013 LONG STEEL EXPORTS BREAKDOWN

  20. Slide 20: Flat and long steel prices versus cost of sales

    Jan-11 Jan-11 Feb-11 USD/TON USD/TON Feb-11 Mar-11 Mar-11 Apr-11 Apr-11 May-11 May-11 Jun-11 Jun-11 Jul-11 Jul-11 Aug-11 Aug-11 Sep-11 Sep-11 Oct-11 Oct-11 Nov-11 Nov-11 Dec-11 Dec-11 Jan-12 Jan-12 Feb-12 Feb-12 Mar-12 Mar-12 Apr-12 Apr-12 May-12 May-12 Erdemir Group Flat Sales Price Jun-12 Jun-12 2

  21. Slide 21: Net profit increased by 92% in 2013 YoY

    Net profit increased by 92% in 2013 YoY EBITDA ( MILLION USD ) 1.400 1.241 32,0% 1.200 987 1.000 23,2% 24,0% 20,7% 20,3% 19,2% 800 18,5% 17,5% 604 16,0% 600 13,8% 12,4% 400 10,6% 11,3% 238 8,6% 294 218 236 8,0% 138 180 169 200 117 0 0,0% 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2011 1. Quar

  22. Slide 22: EBITDA was 987 million USD in 2013

    EBITDA was 987 million USD in 2013 Consolidated EBITDA => Consolidated Net Profit (Million USD) (208) 52 (11) (173) (142) 987 820 (21) 484 EBITDA Depreciation Interest inc. Impairment of Operating Finance Tax Inc./Exp. Non-Controlling NET PROFIT (1 Jan - from overdue tangible assets Income Inc./Exp.

  23. Slide 23: EBITDA was 987 million USD in 2013

    EBITDA was 987 million USD in 2013 Consolidated EBITDA => Consolidated Net Cash (Million USD) (236) 21 (72) (86) 987 (166) (273) 448 (839) (669) (5) EBITDA Changes in Interest Inc. Interest Inc./ Taxes Paid Net Cash Used Free Cash Flow Dividend Paid Decrease in Foreign Exc. DECREASE IN (1 Jan - Work

  24. Slide 24: EBITDA per ton for cold product was 139 USD/ton in 4Q

    EBITDA per ton for cold product was 139 USD/ton in 2013 4Q EBITDA PER TON (USD/TON) 161 155 141 143 126 138 113 139 100 102 104 118 100 104 95 92 67 84 88 61 50 53 43 9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013 Hot Cold Long 24 / 32

  25. Slide 25: Net assets was 4,1 billion USD at the end of 2013

    Net assets was 4,1 billion USD at the end of 2013 CONSOLIDATED NET ASSETS (MILLION USD) 4.038 4.1604.079 3.694 2.158 1.921 31.12.2012 1.026 31.12.2013 357 (347) (489) (1.640) (2.479) Cash and Cash Working Capital Tangible and Financial Liabilities Provisions and NET ASSETS Equivalents Intangible Ass

  26. Slide 26: Net debt was 1.283 million USD at the end of 2013

    Net debt was 1.283 million USD at the end of 2013 BORROWINGS ( MILLION USD ) 3.785 2.998 2.767 1.976 2.529 2.479 2.354 556 1.507 1.924 787 2.059 1.135 1.640 1.945 693 2.211 1.452 1.283 1.809 1.742 1.491 1.344 947 2008 2009 2010 2011 2012 2013 Long-Term Debt Short-Term Debt Net Debt 26 / 32

  27. Slide 27: Net debt was 1.283 million USD at the end of 2013

    Net debt was 1.283 million USD at the end of 2013 NET DEBT (MILLION USD) 6 (448) 273 1.452 1.283 - - - - - Net Debt Free Cash Flow Dividend Payment Foreign Cur. Diff. Net Debt (December 2012) and Other (December 2013) 27 / 32

  28. Slide 28: Erdemir Group has 357 million USD cash and equivalents

    Erdemir Group has 357 million USD cash and cash equivalents at the end of 2013 BORROWINGS MATURITY PROFILE (MILLION USD) 698 67 277 445 42 299 22 403 172 357 354 8 277 68 164 3 35 1 9 65 9 34 0,2 Dec.13 1 2014 2015 2016 2017 2018 2019 2020 Cash Principal Revolving Trade Financing Loans Interest 28 /

  29. Slide 29: Raw materials made up 72% of the cost of sales in 2013

    Raw materials made up 72% of the cost of sales in 2013 COST OF SALES BREAKDOWN* - % 5% 5% 3% 5% 1% 4% 4% 6% 6% 7% 12% 11% 11% 72% 74% 75% 2013 2012 2011 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expenses Other RAW MATERIALS BREAKDOWN

  30. Slide 30: Flat cost per ton excluding raw materials was 163 USD/ton

    Flat cost per ton excluding raw materials was realised as 163 USD/ton in 2013 4Q FLAT 500 PRODUCTS ( USD/TON )* 1.797 2.100 450 1.621 1.624 1.600 1.651 1.489 1.505 1.565 1.428 1.506 1.360 1.493 400 1.326 1.262 1.322 1.284 1.278 1.600 350 1.174 1.050 1.378 300 1.100 250 200 600 103 116 104 150 90 85

  31. Slide 31: Capital expenditures of 377 million USD planned for 2014

    Capital expenditures of 377 million USD is planned for 2014 ( M USD ) 1.017 718 731 634 961 445 377 675 731 576 264 242 377 200 286 158 162 171 159 143 107 140 68 56 59 57 93 83 55 91 43 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 and after Fixed Assets Acquisition and Maintenance Capi

  32. Slide 32: Number of employees was 12.801 as of December 2013

    Number of employees was 12.801 as of December 2013 NUMBER OF EMPLOYEES 15.063 14.637 13.553 13.433 13.161 13.045 12.801 2007 2008 2009 2010 2011 2012 2013 32 / 32

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