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) — FY2012 Earnings Presentation

30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 20, 2013

  1. Slide 1: Erdemir Group 2012 Consolidated Financial Results

    Erdemir Group 2012 Consolidated Financial Results 20 February 2013

  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 Results 3 / 29

  4. Slide 4: Crude steel production by region

    -50% -25% 25% 75% 50% 0% -50% -40% -20% -10% -30% 10% 20% 30% 40% 50% 60% 0% Dec-05 Dec-05 Mar-06 Mar-06 Jun-06 Jun-06 Sep-06 Sep-06 Dec-06 Dec-06 Source: * Worldsteel Mar-07 Mar-07 ** Bloomberg Jun-07 Jun-07 Sep-07 Sep-07 Dec-07 Dec-07 Mar-08 Mar-08 Jun-08 Jun-08 Sep-08 Sep-08 Dec-08 Dec-08 Mar-09

  5. Slide 5: Iron ore prices have been increasing after sharp decrease since July

    100 150 200 250 300 350 400 450 500 0 50 100 200 300 400 500 600 700 800 900 0 02.2009 02.2009 USD/TON USD/TON 05.2009 05.2009 08.2009 08.2009 Source: Bloomberg 11.2009 11.2009 02.2010 02.2010 05.2010 05.2010 08.2010 08.2010 EFFECTIVE PRICE 11.2010 11.2010 ERDEMIR GROUP HRC 02.2011 02.2011 05.2011 0

  6. Slide 6: Turkish steel production increased by 7% in 2012 YoY

    Turkish steel production increased by 7% in 2012 YoY PRODUCTION ( 000 TONS ) 34.277 31.943 9.039 26.300 26.684 9.075 25.133 6.629 4.421 4.543 25.238 22.868 19.671 20.712 22.141 2012 2011 2010 2009 2008 Long Flat Total CONSUMPTION ( 000 TONS ) 28.454 26.948 23.604 21.454 13.626 13.210 18.048 11.944 1

  7. Slide 7: Turkish iron and steel product exports increased by 9% in 2012 YoY

    Turkish iron and steel product exports increased by 9% in 2012 YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.563 16.806 15.239 15.861 21 14.465 94 60 218 1.859 1.368 212 1.651 2.298 1.520 2.407 2.957 2.206 2.393 3.523 11.726 11.786 12.937 10.489 9.211 2012 2011 2010 2009 2008 Long Steel Billet

  8. Slide 8: Automotive production was 1.073 thousand units in 2012

    Automotive production was 1.073 thousand units in 2012 AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 1.702 1.548 791 730 1.189 1.073 911 818 2011 2012 2011 2012 Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 76 69 2011 2012 Light Vehicles Source: Automotive Manufact

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

    White goods exports and production increased by 13% and 8% respectively in 2012 YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) %13 6.471 6.455 16.297 14.449 2011 2012 2011 2012 WHITE GOODS PRODUCTION (000 UNITS) %8 20.106 21.691 2011 2012 Source: White Goods Suppliers Ass

  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% 33,4% 32,6% 30% 22,1% 20,0% 20% 16,0% 18,3% 4,5% 8,7% 10% 6,8% 11,3% 4,3% 4,4% 7,4% 11,2% 0% -0,2% 2,5% 4,0% 7,0% 3,6% 4,0% -10% -5,0% -16,1% -20% -22,9% -30% -30,0% -40% 2009 2010 2011 2012 2013

  11. Slide 11: HRC sales prices are increasing in last quarter

    HRC sales prices are increasing in last quarter Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 900 As of February 2013, EU HRC price 800 was 666 USD, China HRC spot price is 700 675 USD, USA export HRC price is 583 600 USD. The prices were 629 USD, 637 USD, 583 USD resp

  12. Slide 12: Agenda

    Agenda 2012 Market Overview 2012 Results 12 / 29

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2012 2011 2010 Liquid Steel Production (000 Tons) 8.042 7.656 7.311 (1) Slab Production (000 Tons) 6.329 6.660 5.674 (2) Flat Steel Production (000 Tons) 5.983 6.119 5.373 Long Steel Production (000 Tons) 1.519 794 1.420 Flat Steel Shipments (000 Tons) 5.980 5.856 5.123 Lon

  14. Slide 14: Liquid steel production was 8,0 million tons in 2012

    Liquid steel production was 8,0 million tons in 2012 LIQUID STEEL PRODUCTION ( 000 TONS ) 8.042 7.656 7.311 2.037 1.837 2.101 2.218 1.924 1.966 1.929 1.686 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2010 1. Quarter 2. Quarter 3. Quarter 4. Quarter 14 / 29

  15. Slide 15: Production increased by 9% in 2012 YoY

    Production increased by 9% in 2012 YoY PRODUCTION VOLUMES ( 000 TONS ) 7.501 6.913 6.793 1.519 794 1.420 1.598 1.652 1.501 1.784 1.692 1.693 1.787 2.132 278 1.686 1.899 167 1.741 4.384 4.467 187 127 509 3.872 326 406 313 370 418 396 410 413 414 404 425 1.136 1.087 956 1.170 1.083 1.207 1.209 1.003 2

  16. Slide 16: Sales volumes increased by 12% in 2012 YoY

    Sales volumes increased by 12% in 2012 YoY SALES VOLUMES ( 000 TONS ) 7.448 6.647 6.516 1.468 791 1.393 1.627 1.551 1.456 1.849 1.667 1.730 1.684 1.682 2.057 282 1.812 1.614 4.353 4.305 197 257 125 139 510 3.667 419 330 416 415 403 386 389 412 396 361 1.151 1.055 1.070 1.173 998 1.154 1.134 923 2012

  17. Slide 17: Domestic sales revenue increased by 11% in 2012 YoY

    Domestic sales revenue increased by 11% in 2012 YoY NET SALES REVENUE ( MILLION TL ) 9.570 8.921 1.382 1.556 6.633 890 8.188 7.365 2.435 2.350 2.189 2.350 2.448 2.435 2.256 2.028 5.743 294 359 325 415 404 332 414 395 2.141 1.991 1.794 2.025 2.033 2.031 1.924 1.614 2012 2011 2012 2011 2012 2011 2012

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

    Sales to pipe and profile industry increased in 2012 YoY 2012 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2011 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 710Kt; 13% 548Kt; 11% 230Kt; 4% 250Kt; 5% 1.628Kt; 2.006Kt; 34% 37% 516Kt; 10% 517Kt; 11% 5.404Kton; 4.807Kton; 90% 82% 242Kt; 5% 208Kt; 4% 490Kt; 9% 510

  19. Slide 19: Flat steel sales to North America was 12% of flat export

    Flat steel sales to North America countries was 12% of our flat export in 2012 2012 FLAT STEEL EXPORTS BREAKDOWN (%) 2011 FLAT STEEL EXPORTS BREAKDOWN (%) 54Kt; 5% 57Kt; 10% 42Kt; 4% 15Kt; 3% 129Kt; 12% 90Kt; 15% 576Kton; 1.049Kton; 10% 18% 71Kt; 12% 344Kt; 60% 824Kt; 79% 2012 LONG STEEL EXPORTS BRE

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

    Jan-10 Jan-10 Feb-10 USD/TON USD/TON Feb-10 Mar-10 Mar-10 Apr-10 Apr-10 May-10 May-10 Jun-10 Jun-10 Jul-10 Jul-10 Aug-10 Aug-10 Sep-10 Sep-10 Oct-10 Oct-10 Nov-10 Nov-10 Dec-10 Dec-10 Jan-11 Jan-11 Feb-11 Feb-11 Mar-11 Mar-11 Apr-11 Apr-11 May-11 May-11 Erdemir Group Flat Sales Price Jun-11 Jun-11 2

  21. Slide 21: Net profit was 424 million TL in 2012

    Net profit was 424 million TL in 2012 EBITDA ( MILLION TL ) 2.500 32,0% 2.039 27,5% 2.000 25,6% 24,0% 21,7% 22,9% 21,4% 1.500 16,1% 1.420 16,0% 13,5% 1.026 10,3% 10,8% 10,7% 1.000 8,4% 8,0% 560 674 500 441 318 364 0,0% 204 241 263 0 -8,0% 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2010 1. Qua

  22. Slide 22: EBITDA was 1.026 million TL in 2012

    EBITDA was 1.026 million TL in 2012 Consolidated EBITDA => Consolidated Net Profit (Million TL) 22 / 29

  23. Slide 23: EBITDA to consolidated net cash

    EBITDA was 1.026 million TL in 2012 Consolidated EBITDA => Consolidated Net Cash (Million TL) 23 / 29

  24. Slide 24: Reasons of the decline in 4Q EBITDA

    The reasons of the decline in 4Q EBITDA are provisions and employee termination benefits 24 / 29

  25. Slide 25: Cash and cash equivalents at the end of 2012

    Erdemir Group has 1.026 million USD cash and cash equivalents at the end of 2012 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 2.767 600 2.529 2.479 537 691 2.140 20 579 608 648

  26. Slide 26: Raw materials made up 74% of cost of goods sold in 2012

    Raw materials made up 74% of the cost of goods sold in 2012 COST OF PRODUCTION BREAKDOWN* - % 5% 3% 4% 4% 6% 6% 11% 12% 74% 75% 2012 2011 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Other * Excluding inventory writedowns and provision released 26 / 2

  27. Slide 27: Flat cost per ton excluding raw materials in 2012

    Flat cost per ton excluding raw materials was realised as 173 USD/ton in 2012 FLAT 500 PRODUCTS ( USD/TON )* 2.100 450 1.565 1.621 1.624 1.489 1.505 1.428 1.506 1.493 400 1.326 1.322 1.284 1.278 1.360 1.600 1.174 1.262 350 1.050 300 1.100 250 200 600 150 111 120 103 116 116 104 90 85 78 94 85 101 10

  28. Slide 28: Capital expenditures planned for 2013

    Capital expenditures of 138 million USD is planned for 2013 ( M USD ) 954 116 693 672 555 130 35 361 838 284 543 520 136 163 151 138 332 130 265 12 22 60 103 107 125 107 103 49 31 20 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 - 2016 İskenderun Investments Ereğli Investments 28 / 29

  29. Slide 29: Number of employees was 13.045 as of December 2012

    Number of employees was 13.045 as of December 2012 NUMBER OF EMPLOYEES 15.063 14.637 13.553 13.433 13.161 13.045 2007 2008 2009 2010 2011 2012 29 / 29

  30. Slide 30: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — FY2012 Earnings Presentation on 6ix