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) — Q1 2011 Earnings Presentation

27 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, May 6, 2011

  1. Slide 1: Erdemir Group 2011 First Quarter Consolidated Financial Results

    Erdemir Group 2011 First Quarter Consolidated Financial Results 06 May 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 1Q Results 3 / 26

  4. Slide 4: Crude steel production and prices by region

    -50% -25% -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% 25% 50% 75% 0% 0% Mar-04 Mar-04 Jul-04 Jul-04 Nov-04 Nov-04 SOURCE: * WSA Mar-05 Mar-05 Jul-05 Jul-05 ** BLOOMBERG Nov-05 Nov-05 Mar-06 Mar-06 Jul-06 Jul-06 Nov-06 Nov-06 Mar-07 Mar-07 Jul-07 Jul-07 Nov-07 Nov-07 Mar-08 Mar-08 Jul-08 Jul-08

  5. Slide 5: Raw material prices are increasing

    0 100 200 300 400 500 600 700 800 200 400 600 800 1.000 1.200 1.400 0 10.2007 USD/TON 10.2007 USD/TON 01.2008 01.2008 04.2008 04.2008 SOURCE: BLOOMBERG 07.2008 07.2008 10.2008 10.2008 01.2009 01.2009 EFFECTIVE PRICE 04.2009 04.2009 ERDEMIR GROUP HRC 07.2009 07.2009 10.2009 10.2009 01.2010 01.2010 04

  6. Slide 6: Turkish steel consumption increased by 17% in 2011 3M YoY

    Turkish steel consumption increased by 17% in 2011 3M YoY PRODUCTION ( 000 TONS ) 7.510 26.067 26.684 26.295 25.133 23.359 1.961 4.257 4.543 5.544 4.421 6.629 4.122 1.275 21.810 22.141 20.712 5.549 19.237 19.666 4.269 2006 2007 2008 2009 2010 2010 3M 2011 3M Long Flat Total Long Flat Total CONSUMPTI

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

    Turkish Steel Market ( cont’d ) IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.806 3.713 15.861 20 94 14.486 13.795 218 3.192 1.368 578 12.668 1.651 212 0,1 35 2.407 0,1 1.519 214 1.244 2.206 561 1.394 1.625 880 1.630 3.523 12.937 11.786 10.890 2.554 9.645 9.232 2.098 2006 2007 2008 2009 2010 2010 3

  8. Slide 8: Automotive production and sales increased by 18% and 31% in 2011 3M YoY

    Automotive production and sales increased by 18% and 31% respectively in 2011 3M YoY AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 406 18% 310 31% 214 203 304 258 192 107 2010 3M 2011 3M 2010 3M 2011 3M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 78 67 2010 3M 20

  9. Slide 9: White goods domestic sales and production increased by 26% and 12%

    White goods domestic sales and production increased by 26% and 12% respectively in 2011 3M YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) 26% 1.395 2.880 2.990 1.106 2010 3M 2011 3M 2010 3M 2011 3M WHITE GOODS PRODUCTION (000 UNITS) 12% 4.578 4.080 2010 3M 2011 3M SOURCE:

  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) 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

  11. Slide 11: 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 April 2011, EU HRC price is 1.100 1.000 837 USD, China HRC spot price is 757 900 USD, USA export HRC price is 763 800 USD. The prices were 661 USD, 694 700 USD, 515 US

  12. Slide 12: Agenda

    Agenda 2011 Market Overview 2011 1Q Results 12 / 26

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2011 1Q 2010 1Q 2010 2009 Liquid Steel Production (000 Tons) 1.837 1.895 7.311 6.619 (1) Slab Production (000 Tons) 1.598 1.362 5.674 4.569 (2) Flat Steel Production (000 Tons) 1.498 1.322 5.373 4.812 Long Steel Production (000 Tons) 187 473 1.420 1.869 Flat Steel Shipments

  14. Slide 14: Liquid steel production was 1,8 million tons in 2011 3M

    Liquid steel production was 1,8 million tons in 2011 3M LIQUID STEEL PRODUCTION ( 000 TONS ) 7.311 6.619 6.122 1.884 1.895 1.837 2010 2011 2010 2010 2009 2008 4Q 1Q 14 / 26

  15. Slide 15: Production was 1,7 million tons in 2011 3M

    Production was 1,7 million tons in 2011 3M PRODUCTION VOLUMES ( 000 TONS ) 6.793 6.681 6.132 1.420 Long 1.869 Long 1.950 1.502 Long Cold 1.590 Cold 1.486 Cold 1.842 1.685 1.795 187 3.871 353 473 3.222 443 418 2.696 335 1.046 1.080 987 Hot Hot Hot 2010 2011 2010 2010 2009 2008 4Q 1Q Hot Cold Long Tot

  16. Slide 16: CRC sales volume increased by 29% in 2011 1Q YoY

    CRC sales volume increased by 29% in 2011 1Q YoY SALES VOLUME ( 000 TONS ) 6.986 6.516 5.895 1.858 1.393 Long Long 1.963 1.456 1.665 Long Cold Cold 1.471 Cold 1.923 1.668 197 1.685 371 3.667 3.464 457 451 415 321 2.461 1.095 1.056 913 Hot Hot Hot 2010 2011 2010 2010 2009 2008 4Q 1Q HRC CRC Long Tota

  17. Slide 17: Net sales revenue increased by 28% in 2011 1Q YoY

    Net sales revenue increased by 28% in 2011 1Q YoY NET SALES REVENUE ( MILLION TL ) 6.633 6.800 890 1.218 Exp. Exp. 5.266 1.217 Exp. 5.743 5.583 1.921 2.028 414 1.583 4.049 325 162 1.596 1.614 1.421 Dom. Dom. Dom. 2010 2011 2010 2010 2009 2008 4Q 1Q Domestic Export Total 17 / 26

  18. Slide 18: Sales to automotive sector increased in 2011 1Q

    Sales to automotive sector increased in 2011 1Q 2011 3M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2010 3M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2% 1% 6% 7% 3% 4% 1% 5% 29% 6% 4% 11% 75% 93% 50% 10% 5% 12% 7% 11% 11% 15% Pipe and Profile Industry Steel Service Centers Pipe and Profile Industry Steel

  19. Slide 19: Flat and long steel sales to EU countries increased in 2011

    Flat and long steel sales to EU countries increased in 2011 2011 3M FLAT STEEL EXPORTS BREAKDOWN (%) 2010 3M FLAT STEEL EXPORTS BREAKDOWN (%) 3% 13% 0,1% 2% 7% 20% 25% 7% 58% 13% 84% EU EU MENA MENA S. America S. America Asia Other Other 2011 3M LONG STEEL EXPORTS BREAKDOWN (%) 2010 3M LONG STEEL EX

  20. Slide 20: Flat and long steel prices increased YoY in 2011 3M

    Jan-08 Jan-08 Feb-08 USD/TON USD/TON Feb-08 Mar-08 Mar-08 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 Erdemir Group Flat Sales

  21. Slide 21: Net profit increased by 62% in 2011 1Q YoY

    Net profit increased by 62% in 2011 1Q YoY EBITDA ( MILLION TL ) 1.600 1.420 48,0% 1.400 40,0% 1.200 32,0% 1.000 775 19,2% 21,7% 21,4% 24,0% 800 18,3% 441 16,0% 600 382 369 290 11,4% 8,0% 400 7,3% 200 0,0% 0 -8,0% 2010 2011 2010 2010 2009 2008 4Q 1Q EBITDA EBITDA Margin NET PROFIT/(LOSS) ( MILLION T

  22. Slide 22: 1,3 billion USD liquid funds at the end of 2011 1Q

    1,3 billion USD liquid funds at the end of 2011 1Q BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE 3.785 ( MILLION USD ) ST Portion of LT Debt 113 Short-Term Debt Long-Term Debt 2.998 1.368 3.022 Liquid Funds 2.767 600 537 1.114 2.140 20 608 347 907 62 1.468 264 90 1.861 1.024 76 72 57 313 2.

  23. Slide 23: Raw materials made up 66% of cost of goods sold in 2011 3M

    Raw materials made up 66% of the cost of goods sold in 2011 3M COST OF PRODUCTION BREAKDOWN* - % 4% 1% 5% 6% 5% 5% 6% 7% 6% 6% 6% 8% 12% 12% 13% 66% 67% 66% 2011 3M 2010 2009 Raw Materials Personnel Expenses Energy Consumables Depreciation Other RAW MATERIALS BREAKDOWN- % 8% 9% 9% 13% 12% 10% 8% 2%

  24. Slide 24: Flat cost per ton excluding raw materials in 2011 1Q

    Flat cost per ton excluding raw materials was realised as 188 USD/ton in 2011 1Q FLAT PRODUCTS ( USD/TON )* 207 151 135 131 101 109 111 90 85 94 78 86 89 99 90 95 88 83 74 85 82 77 72 4.871 73 75 61 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2008 2009 2010 2011 Fixed Cost Per Ton Variable Cost Per Ton L

  25. Slide 25: Capital expenditures of 183 million USD is planned for 2011

    Capital expenditures of 183 million USD is planned for 2011 ( M USD ) 954 116 693 672 556 130 36 549 361 838 385 543 520 183 332 136 129 12 22 89 125 164 107 94 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 - After İskenderun Investments Ereğli Investments 25 / 26

  26. Slide 26: Number of employees was 13.609 in 2011 March

    Number of employees was 13.609 in 2011 March NUMBER OF EMPLOYEES 15.063 14.637 14.056 13.553 13.609 13.161 2006 2007 2008 2009 2010 2011 March 26 / 26

  27. Slide 27: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — Q1 2011 Earnings Presentation on 6ix