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) — FY2014 Earnings Presentation

33 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 11, 2015

  1. Slide 1: Erdemir Group 2014 12 Months Consolidated Financial Results

    Erdemir Group 2014 12 Months Consolidated Financial Results 11 February 2015 1 / 33

  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 2014 Market Overview 2014 Results 3 / 33

  4. Slide 4: Crude steel production by region

    -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% -50% -25% 25% 50% 75% 0% 0% Dec-08 Dec-08 Mar-09 Mar-09 Jun-09 Jun-09 Sep-09 Sep-09 Dec-09 Dec-09 Source: * Worldsteel Mar-10 Mar-10 ** Bloomberg Jun-10 Jun-10 Sep-10 Sep-10 Dec-10 Dec-10 Mar-11 Mar-11 Jun-11 Jun-11 Sep-11 Sep-11 Dec-11 Dec-11 Mar-12

  5. Slide 5: Iron ore price was 62 USD/ton at the end of January

    Iron ore price was 62 USD/ton at the end of January COKING COAL PRICES IRON ORE PRICES USD/TON (HCC PEAK DOWNS REGION FOB AUSTRALIA) (IODEX 62% FE CFR NORTH CHINA MID) USD/TON 180 160 170 160 140 150 140 120 130 100 120 110 80 100 60 90 80 40 09.2013 01.2013 03.2013 05.2013 07.2013 11.2013 01.2014 0

  6. Slide 6: January EU HRC sales price lower than last year's same month

    January EU HRC sales price is 148 USD/ton lower than last year’s same month HRC PRICES ( USD/Ton ) 800 700 600 500 400 Mar-12 Nov-12 Nov-13 Nov-14 Mar-13 Mar-14 May-12 Jul-12 May-13 May-14 Sep-12 Jul-13 Sep-13 Jul-14 Sep-14 Jan-12 Jan-13 Jan-14 Jan-15 CIS EXPORT HRC BLACKSEA/BALTIC EU HRC CHINA SPOT

  7. Slide 7: Billet sales prices are significantly lower in China

    Billet sales prices are significantly lower in China BILLET PRICES ( USD/Ton ) 670 620 570 520 470 420 370 320 Nov-12 May-13 Nov-13 Mar-12 May-12 Mar-13 Mar-14 May-14 Nov-14 Jul-12 Jul-13 Jul-14 Jan-12 Sep-12 Sep-13 Sep-14 Jan-15 Jan-13 Jan-14 BILLET CHINA EXPORT BILLET CIS EXPORT BLACKSEA/BALTIC BI

  8. Slide 8: Turkish steel production decreased by 1% in 2014 YoY

    Turkish steel production decreased by 1% in 2014 YoY PRODUCTION ( 000 TONS ) 36.093 36.406 34.286 31.943 10.376 9.869 9.039 26.300 9.075 6.629 25.717 26.537 25.247 22.868 19.671 2014 2013 2012 2011 2010 Long Flat Total CONSUMPTION ( 000 TONS ) 30.739 31.326 28.468 26.948 23.604 14.601 14.633 13.627

  9. Slide 9: Turkish iron and steel product imports decreased by 8% in 2014 YoY

    Turkish iron and steel product imports decreased by 8% in 2014 YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.549 15.226 15.239 14.137 21 14.465 1 1.858 60 36 212 2.353 2.298 1.520 2.505 2.957 1.561 2.393 568 3.523 11.028 11.311 11.713 10.489 9.211 2014 2013 2012 2011 2010 Long Steel Semi-finish

  10. Slide 10: Contraction in the construction sector is expected

    Contraction in the construction 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% 10% 7,4% 5,5% 11,3% 5,5% 7,1% 3,9% 4,0% 2,7% 4,0% 5% 11,2% 6,8% 3,5% 0% 2,8% 2,0% 0,6% 1,4% 1,0% -5% -5,5% -10% 2010 2011 2012 2013 2014 2015 (e)

  11. Slide 11: Agenda

    Agenda 2014 Market Overview 2014 Results 11 / 33

  12. Slide 12: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2014 2013 2012 Liquid Steel Production (000 Tons) 8.693 8.447 8.042 (1) Slab Production (000 Tons) 7.363 6.865 6.329 (2) Flat Steel Production (000 Tons) 6.954 6.427 5.983 Long Steel Production (000 Tons) 1.153 1.356 1.519 Flat Steel Shipments (000 Tons) 6.933 6.338 5.980 L

  13. Slide 13: Liquid steel production was 8,7 million tons in 2014

    Liquid steel production was 8,7 million tons in 2014 LIQUID STEEL PRODUCTION ( 000 TONS ) 8.693 8.447 8.042 2.135 2.216 1.999 2.209 2.235 2.324 2.377 1.645 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2012 1. Quarter 2. Quarter 3. Quarter 4. Quarter 13 / 33

  14. Slide 14: Crude steel capacity utilization ratio higher than world average

    Crude steel capacity utilization ratio of ERDEMİR Group is higher than world average CRUDE STEEL CAPACITY UTILIZATION RATIO 100% 95,5% 95% 92,8% 90% 88,4% 85% 84,1% 80,2% 80% 78,3% 77,9% 76,3% 75% 2011 2012 2013 2014 Erdemir Group World Source: Worldsteel 14 / 33

  15. Slide 15: HRC production increased by 14% in 2014 YoY

    HRC production increased by 14% in 2014 YoY PRODUCTION VOLUMES ( 000 TONS ) 8.107 7.783 7.501 1.153 1.356 1.519 1.746 1.844 1.598 2.045 1.910 2.140 2.131 5.208 1.992 2.067 2.065 4.583 228 274 1.539 4.384 317 445 416 334 334 467 161 411 410 458 462 439 493 449 1.264 1.161 1.272 1.158 1.399 1.273 1.33

  16. Slide 16: Sales volumes increased by 5% in 2014 YoY

    Sales volumes increased by 5% in 2014 YoY SALES VOLUMES ( 000 TONS ) 8.096 7.684 7.448 1.163 1.346 1.468 1.741 1.778 1.627 1.973 2.108 2.023 2.025 2.093 2.007 1.958 5.192 205 1.592 4.560 4.353 352 420 291 176 315 294 456 432 423 464 444 442 431 429 453 1.239 1.140 1.345 1.224 1.358 1.250 1.233 963 2

  17. Slide 17: Net sales revenue was 5,3 billion USD in 2014

    Net sales revenue was 5,3 billion USD in 2014 YoY NET SALES REVENUE ( MILLION USD ) 5.252 5.340 5.142 627 580 771 4.625 4.562 4.569 1.324 1.364 1.285 1.426 1.366 1.077 1.277 1.275 250 175 139 70 174 178 136 85 1.150 1.114 1.107 1.251 1.227 1.007 1.141 1.190 2014 2013 2014 2013 2014 2013 2014 2013 20

  18. Slide 18: Sales to automotive and components industry increased in 2014 YoY

    Sales to automotive and components industry increased in 2014 YoY 2014 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2013 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 582Kt; 9% 623Kt; 11% 335Kt; 5% 332Kt; 6% 627Kt; 10% 535Kt; 9% 2.811Kt; 6.255Kton; 45% 5.819Kton; 2.578Kt; 239Kt; 4% 44% 90% 241Kt; 4% 92% 485Kt;

  19. Slide 19: Flat steel sales to EU countries was 41% of flat export

    Flat steel sales to EU countries was 41% of our flat export in 2014 2014 FLAT STEEL EXPORTS BREAKDOWN (%) 2013 FLAT STEEL EXPORTS BREAKDOWN (%) 36Kt; 7% 66Kt; 10% 28Kt; 5% 46Kt; 7% 280Kt; 41% 42Kt; 8% 87Kt; 13% 678Kton; 519Kton; 50Kt; 10% 10% 8% 363Kt; 70% 200Kt; 29% 2014 LONG STEEL EXPORTS BREAKDOW

  20. Slide 20: Average flat and long steel prices and cost of sales

    Dec-12 Dec-12 USD/TON USD/TON Jan-13 Jan-13 Feb-13 Feb-13 Mar-13 Mar-13 Apr-13 Apr-13 May-13 May-13 Jun-13 Jun-13 Jul-13 Jul-13 Aug-13 Aug-13 Sep-13 Sep-13 Oct-13 Oct-13 Nov-13 Nov-13 Erdemir Group Flat Sales Price Dec-13 Dec-13 Erdemir Group Long Sales Price Jan-14 Jan-14 Feb-14 Feb-14 Mar-14 Mar-1

  21. Slide 21: Net profit increased by 51% in 2014 YoY

    Net profit increased by 51% in 2014 YoY EBITDA ( MILLION USD ) 1.200 1.136 987 48,0% 1.000 40,0% 800 604 32,0% 600 24,0% 21,3% 20,7% 22,8% 20,3% 22,5% 21,6% 400 19,8% 18,5% 19,2% 17,5% 294 312 288 16,0% 282 238 254 218 236 11,3% 200 8,0% 0 0,0% 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2012

  22. Slide 22: EBITDA was 1.136 million USD in 2014

    EBITDA was 1.136 million USD in 2014 Consolidated EBITDA => Consolidated Net Profit (Million USD) 22 / 33

  23. Slide 23: EBITDA was 1.136 million USD in 2014

    EBITDA was 1.136 million USD in 2014 Consolidated EBITDA => Consolidated Net Cash (Million USD) 23 / 33

  24. Slide 24: EBITDA per ton for flat product was 144 USD/ton in 4Q

    EBITDA per ton for flat product was 144 USD/ton in 2014 4Q EBITDA PER TON (USD/TON) 153 150 148 141 143 144 130 142 113 135 100 100 126 125 88 111 113 107 101 61 64 67 54 24 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013 2014 Flat Long 24 / 33

  25. Slide 25: Net assets was 4,4 billion USD at the end of 2014

    Net assets was 4,4 billion USD at the end of 2014 CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD) 25 / 33

  26. Slide 26: Net debt was 529 million USD at the end of 2014

    Net debt was 529 million USD at the end of 2014 BORROWINGS ( MILLION USD ) 3.785 2.767 1.976 2.529 2.479 556 2.059 787 1.945 1.135 1.640 1.924 1.472 693 1.452 2.211 1.283 891 1.809 1.742 1.344 529 947 581 2009 2010 2011 2012 2013 2014 Long-Term Debt Short-Term Debt Net Debt 26 / 33

  27. Slide 27: Net debt was 529 million USD at the end of 2014

    Net debt was 529 million USD at the end of 2014 NET DEBT (MILLION USD) 27 / 33

  28. Slide 28: Erdemir Group has 943 million USD cash and cash equivalents

    Erdemir Group has 943 million USD cash and cash equivalents at the end of 2014 BORROWINGS MATURITY PROFILE (MILLION USD) 882 41 466 943 281 241 22 9 375 70 39 259 233 4 1 11 1 67 37 Dec.14 1 2015 2016 2017 2018 2019 2020 2021 Cash Principal Revolving Trade Financing Loans Interest 28 / 33

  29. Slide 29: Raw materials made up 71% of the cost of sales in 2014

    Raw materials made up 71% of the cost of sales in 2014 COST OF SALES BREAKDOWN* - % 5% 4% 5% 3% 1% 5% 1% 4% 4% 5% 6% 6% 7% 7% 11% 11% 12% 12% 71% 73% 74% 75% 2014 2013 2012 2011 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expenses Other

  30. Slide 30: Flat cost per ton excluding raw materials and depreciation was 159 USD/ton

    Flat cost per ton excluding raw materials and depreciation was realised as 159 USD/ton in 2014 4Q FLAT PRODUCTS ( USD/TON )* 500 1.797 1.866 2.100 1.651 1.675 1.682 1.731 450 1.600 400 1.378 1.600 350 300 1.100 250 200 600 150 90 85 87 87 82 78 80 81 100 100 50 67 70 72 65 60 68 63 72 0 -400 1Q 2Q 3

  31. Slide 31: Capital expenditures of 479 million USD is planned for 2015

    Capital expenditures of 479 million USD is planned for 2015 ( M USD ) 1.017 718 634 611 961 479 445 675 576 264 242 357 611 377 200 158 162 162 171 159 143 107 82 140 122 68 56 59 57 93 83 55 80 43 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 - 2019 Fixed Assets Acquisition and Mai

  32. Slide 32: Number of employees was 12.872 as of December 2014

    Number of employees was 12.872 as of December 2014 NUMBER OF EMPLOYEES 14.637 13.553 13.433 13.161 13.045 12.801 12.872 2008 2009 2010 2011 2012 2013 2014 32 / 33

  33. Slide 33: ErdemirGroup

    O ErdemirGroup POOOQOOOES

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