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 2015 Earnings Presentation

37 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Apr 28, 2015

  1. Slide 1: Erdemir Group

    © ErdemirGroup ay FUTURE MADE OF STEEL | YEARS

  2. Slide 2: 2015 3 Months Consolidated Results

    2015 3 Months Consolidated Results 28 April 2015 2 28.04.2015

  3. Slide 3: Disclaimer

    DISCLAMIER 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

  4. Slide 4: 2015 Market Overview, 3M Results, Guidance

    ˃ 2015 Market Overview ˃ 2015 3M Results ˃ 2015 Guidance 4 28.04.2015

  5. Slide 5: Crude steel production and HRC prices by region

    -25% -50% 25% 50% 75% 0% -30% -20% -10% -40% 10% 20% 30% 50% 60% 40% 0% 5 Mar-09 Mar-09 Jun-09 Jun-09 Sep-09 Sep-09 Dec-09 Dec-09 Mar-10 Mar-10 Jun-10 Jun-10 28.04.2015 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 Mar-12 Jun-12 Jun-12 Source : * Worldste

  6. Slide 6: Iron ore price was 51 USD/ton as of April 2015

    Iron ore price was 51 USD/ton as of April 2015 COKING COAL PRICES IRON ORE PRICES USD/TON (HCC PEAK DOWNS REGION FOB AUSTRALIA) (IODEX 62% FE CFR NORTH CHINA MID) USD/TON 160 160 150 140 140 130 120 120 100 110 80 100 60 90 80 40 08.2014 04.2015 04.2013 06.2013 08.2013 10.2013 12.2013 02.2014 04.201

  7. Slide 7: HRC prices lower than last year

    April EU HRC sales price was 171 USD/ton lower than last year’s same month HRC PRICES ( USD/Ton ) 800 700 600 500 400 300 Feb-13 Feb-14 Feb-15 Jun-12 Jun-13 Jun-14 Oct-12 Oct-13 Oct-14 Aug-12 Aug-13 Aug-14 Dec-12 Dec-13 Apr-14 Dec-14 Apr-12 Apr-13 Apr-15 CIS EXPORT HRC BLACKSEA/BALTIC EU HRC CHINA S

  8. Slide 8: 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 Feb-13 Feb-14 Feb-15 Jun-12 Jun-13 Jun-14 Oct-12 Oct-13 Aug-14 Oct-14 Aug-12 Aug-13 Dec-12 Apr-13 Dec-13 Dec-14 Apr-12 Apr-14 Apr-15 BILLET CHINA EXPORT BILLET CIS EXPORT BLACKSEA/BALTIC BI

  9. Slide 9: Turkish steel production decreased by 2% in 2015 2M YoY

    Turkish steel production decreased by 2% in 2015 2M YoY PRODUCTION ( 000 TONS ) 36.093 36.406 34.286 31.943 10.376 9.869 9.039 26.300 9.075 6.629 5.756 5.665 1.538 1.676 25.717 26.537 25.247 22.868 19.671 4.127 4.080 2014 2013 2012 2011 2010 2015 2M 2014 2M Long Flat Total CONSUMPTION ( 000 TONS ) 3

  10. Slide 10: Turkish iron and steel product imports increased by 32%

    Turkish iron and steel product imports increased by 32% in 2015 2M YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.549 15.226 15.239 14.137 21 14.465 1 1.858 60 2.519 36 212 2.218 2.353 2.298 11 2.505 2.957 1.520 1.561 0,1 369 568 2.393 3.523 269 176 72 11.028 11.311 11.713 10.489 1.964 9.211 1.8

  11. Slide 11: 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)

  12. Slide 12: 2015 Market Overview, 3M Results, Guidance

    ˃ 2015 Market Overview ˃ 2015 3M Results ˃ 2015 Guidance 12 28.04.2015

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2015 3M 2014 3M 2014 2013 Liquid Steel Production (000 Tons) 2.092 2.135 8.693 8.447 (1) Slab Production (000 Tons) 1.796 1.813 7.363 6.865 (2) Flat Steel Production (000 Tons) 1.823 1.675 6.954 6.427 Long Steel Production (000 Tons) 242 317 1.153 1.356 Flat Steel Shipments

  14. Slide 14: Liquid steel production was 2.1 million tons in 2015 3M

    Liquid steel production was 2,1 million tons in 2015 3M YoY LIQUID STEEL PRODUCTION ( 000 TONS ) 8.693 8.447 8.042 2.324 2.092 2.135 2014 2015 2014 2014 2013 2012 4. Quarter 1. Quarter 14 28.04.2015

  15. Slide 15: 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% 91,9% 90% 88,4% 84,1% 85% 80,2% 80% 78,3% 77,9% 76,3% 75% 71,4% 70% 65% 2011 2012 2013 2014 2015 3M Erdemir Group World 15 28.04.2015 Source: Worldsteel

  16. Slide 16: HRC production increased by 9% in 2015 3M YoY

    HRC production increased by 9% in 2015 3M YoY PRODUCTION VOLUMES ( 000 TONS ) 8.107 7.783 7.501 1.153 1.356 1.519 1.746 1.844 1.598 2.065 2.065 1.992 5.208 242 317 4.583 4.384 334 458 446 411 1.273 1.377 1.264 2014 2015 2014 2014 2013 2012 4. Quarter 1. Quarter Hot Cold Long Total 16 28.04.2015

  17. Slide 17: CRC sales volumes increased by 5% in 2015 3M YoY

    CRC sales volumes increased by 5% in 2015 3M YoY SALES VOLUMES ( 000 TONS ) 8.096 7.684 7.448 1.163 1.346 1.468 1.741 1.778 1.627 2.007 2.023 1.992 5.192 315 242 352 4.560 4.353 442 454 432 1.250 1.296 1.239 2014 2015 2014 2014 2013 2012 4. Quarter 1. Quarter Hot Cold Long Total 17 28.04.2015

  18. Slide 18: Net sales revenue was 1.2 billion USD in 2015 3M

    Net sales revenue was 1,2 billion USD in 2015 3M YoY NET SALES REVENUE ( MILLION USD ) 5.252 5.340 5.142 627 580 771 4.625 4.562 4.569 1.277 1.324 1.179 136 174 81 1.141 1.098 1.150 2014 2015 2014 2014 2013 2012 4. Quarter 1. Quarter Domestic Export Total 18 28.04.2015

  19. Slide 19: Sales to automotive and components industry increased

    Sales to automotive and components industry increased in 2015 3M YoY 2015 3M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2014 3M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 160Kt; 10% 189Kt; 84Kt; 5% 13% 78Kt; 5% 170Kt; 10% 711Kt; 1.645Kton; 43% 140Kt; 9% 1.520Kton; 659Kt; 61Kt; 4% 94% 43% 55Kt; 4% 91% 144K

  20. Slide 20: Flat steel sales to North America was 33% of flat exports

    Flat steel sales to North America countries was 33% of our flat export in 2015 3M 2015 3M FLAT STEEL EXPORTS BREAKDOWN (%) 2014 3M FLAT STEEL EXPORTS BREAKDOWN (%) 10Kt; 10% 18Kt; 12% 33Kt; 32% 76Kt; 50% 18Kt; 18% 17Kt; 11% 104Kton; 151Kton; 6% 9% 8Kt; 7% 25Kt; 17% 34Kt; 33% 16Kt; 10% 2015 3M LONG S

  21. Slide 21: Average flat and long steel prices and cost of sales

    21 USD/TON USD/TON Mar-13 Mar-13 28.04.2015 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 Dec-13 Dec-13 Jan-14 Jan-14 Feb-14 Feb-14 Erdemir Group Long Sales Price Erdemir Group Flat Sales Price Mar-14 Mar-14 Apr-14 Apr-14 May-14 May-1

  22. Slide 22: EBITDA decreased by 12% in 2015 3M YoY

    EBITDA decreased by 12% in 2015 3M YoY EBITDA ( MILLION USD ) 1.200 1.136 48,0% 987 1.000 40,0% 800 604 32,0% 600 22,5% 21,6% 24,0% 21,1% 21,3% 19,2% 400 288 249 282 16,0% 11,3% 200 8,0% 0 0,0% 2014 2015 2014 2014 2013 2012 4. Quarter 1. Quarter EBITDA EBITDA Margin NET PROFIT ( MILLION USD ) 800 73

  23. Slide 23: EBITDA was 249 million USD in 2015 1Q

    EBITDA was 249 million USD in 2015 1Q Consolidated EBITDA => Consolidated Net Profit (Million USD) 23 28.04.2015

  24. Slide 24: EBITDA was 249 million USD in 2015 1Q

    EBITDA was 249 million USD in 2015 1Q Consolidated EBITDA => Consolidated Net Cash (Million USD) 24 28.04.2015

  25. Slide 25: EBITDA per ton for flat product was 124 USD/ton

    EBITDA per ton for flat product was 124 USD/ton in 2015 1Q EBITDA PER TON (USD/TON) 153 150 148 141 143 144 130 124 142 113 135 100 100 126 125 88 111 113 107 101 92 61 64 67 54 24 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2012 2013 2014 2015 Flat Long 25 28.04.2015

  26. Slide 26: Net assets was 4.0 billion USD at end of 2015 1Q

    Net assets was 4,0 billion USD at the end of 2015 1Q CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD) 26 28.04.2015

  27. Slide 27: Net debt was 154 million USD at the end of 2015 1Q

    Net debt was 154 million USD at the end of 2015 1Q BORROWINGS (MILLION USD) 3.785 1.976 2.529 2.479 1.924 787 1.945 1.135 1.640 1.472 1.452 693 1.283 891 987 1.809 1.742 384 1.344 529 947 581 602 154 2010 2011 2012 2013 2014 2015 1Q Long-Term Debt Short-Term Debt Net Debt 27 28.04.2015

  28. Slide 28: Net debt was 154 million USD at the end of 2015 1Q

    Net debt was 154 million USD at the end of 2015 1Q NET DEBT (MILLION USD) 28 28.04.2015

  29. Slide 29: Borrowings maturity profile and cash

    Erdemir Group has 833 million USD cash and cash equivalents at the end of 2015 1Q BORROWINGS MATURITY PROFILE (MILLION USD) 833 356 28 292 10 104 244 23 282 85 224 222 4 39 1 81 11 1 37 1 Mar.15 2015 Apr.-Dec. 2016 2017 2018 2019 2020 2021 Cash 2015 Principal Revolving Trade Financing Loans Interest

  30. Slide 30: Raw materials made up 71% of the cost of sales

    Raw materials made up 71% of the cost of sales COST OF SALES BREAKDOWN* - % 5% 5% 4% 5% 5% 0,2% 5% 1% 5% 1% 4% 7% 7% 7% 6% 12% 12% 11% 11% 71% 71% 73% 74% 2015 3M 2014 2013 2012 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expenses Other

  31. Slide 31: Flat cost per ton excluding raw materials and depreciation

    Flat cost per ton excluding raw materials and depreciation was realised as 130 USD/ton in 2015 1Q FLAT PRODUCTS ( USD/TON )* 500 1.797 1.867 1.731 1.823 2.100 450 1.600 1.651 1.675 1.682 400 1.378 1.600 350 300 1.100 250 200 600 150 90 85 87 82 78 80 81 87 75 100 100 50 0 67 70 72 65 60 68 63 72 55

  32. Slide 32: Capital expenditures of 479 million USD 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 21 140 6 93 83 80 122 68 43 56 59 17 57 55 15 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 2016 - 3M 2019 Fixed Assets Acq

  33. Slide 33: Number of employees was 12,666 as of March 2015

    Number of employees was 12.666 as of March 2015 NUMBER OF EMPLOYEES 13.553 13.433 13.045 12.872 12.801 12.666 2010 2011 2012 2013 2014 2015 March 33 28.04.2015

  34. Slide 34: 2015 Market Overview, 3M Results, Guidance

    ˃ 2015 Market Overview ˃ 2015 3M Results ˃ 2015 Guidance 34 28.04.2015

  35. Slide 35: 2015 Guidance

    2015 Guidance Production (Million Tons) Sales (Million Tons) 8,1 8,4 8,1 8,4 6,9 7,2 6,9 7,2 1,2 1,2 1,2 1,2 2014 Actual 2015 Budget 2014 Actual 2015 Budget Long Flat Long Flat 35 28.04.2015

  36. Slide 36: 2015 Guidance: EBITDA and Net Profit Margins

    2015 Guidance EBITDA and Net Profit Margins ˃ In 2014; EBITDA and Net Profit Margins were 21.6% and 13.9% respectively. ˃ In 2015; EBITDA and Net Profit Margins are expected to be 16-18% and 9-11% respectively. 36 28.04.2015

  37. Slide 37: Erdemir Group

    O ErdemirGroup IEA FUTURE MADE OF STEEL [YEARS 37 28.04.2015

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — Q1 2015 Earnings Presentation on 6ix