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 2013 Earnings Presentation
31 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, May 15, 2013
Slide 1: Erdemir Group 2013 First Quarter Consolidated Financial Results
Erdemir Group 2013 First Quarter Consolidated Financial Results 15 May 2013
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
Slide 3: Agenda
Agenda 2013 Market Overview 2013 1Q Results 3 / 30
Slide 4: CIS and EU27 crude steel production and prices
-50% -25% 25% 50% 75% 0% -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% 0% Mar-06 Mar-06 Jun-06 Jun-06 Sep-06 Sep-06 Dec-06 Dec-06 Mar-07 Mar-07 Source: * Worldsteel Jun-07 Jun-07 ** Bloomberg 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 Mar-09 Jun-09
Slide 5: Coke prices are decreasing
200 250 350 400 450 300 350 400 450 500 550 600 650 700 750 800 300 04.2009 04.2009 USD/TON USD/TON 07.2009 07.2009 10.2009 10.2009 Source: Bloomberg 01.2010 01.2010 04.2010 04.2010 07.2010 07.2010 10.2010 10.2010 EFFECTIVE PRICE 01.2011 01.2011 ERDEMIR GROUP HRC 04.2011 04.2011 07.2011 07.2011 10.2
Slide 6: Turkish steel consumption increased by 2% in 2013 3M YoY
Turkish steel consumption increased by 2% in 2013 3M YoY PRODUCTION ( 000 TONS ) 34.277 31.943 8.518 8.778 9.039 26.300 26.684 9.075 25.133 2.525 2.321 6.629 4.421 4.543 25.238 22.868 6.457 19.671 20.712 22.141 5.993 2012 2011 2010 2009 2008 2013 3M 2012 3M Long Flat Total CONSUMPTION ( 000 TONS ) 2
Slide 7: Turkish iron and steel product imports increased by 36% in 2013 3M YoY
Turkish iron and steel product imports increased by 36% in 2013 3M YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.563 16.806 4.346 15.239 15.861 4.113 21 14.465 94 0,1 218 0,1 1.859 60 1.368 714 212 1.651 413 2.298 1.520 2.407 2.957 2.206 766 465 2.393 3.523 11.726 11.786 12.937 3.234 10.489 2.8
Slide 8: Automotive sales increased by 6% in 2013 3M YoY
Automotive sales increased by 6% in 2013 3M YoY AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) %6 366 344 205 200 281 277 144 160 2012 3M 2013 3M 2012 3M 2013 3M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 75 74 2012 3M 2013 3M Light Vehicles Source: Automotive Ma
Slide 9: White goods domestic sales and exports increased by 7% in 2013 3M YoY
White goods domestic sales and exports increased by 7% in 2013 3M YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) %7 %7 1.409 1.502 3.413 3.667 2012 3M 2013 3M 2012 3M 2013 3M WHITE GOODS PRODUCTION (000 UNITS) 4.957 5.112 2012 3M 2013 3M Source: White Goods Suppliers Asso
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% 8,7% 10% 11,3% 2,7% 5,5% 4,3% 4,4% 7,4% 11,2% 0% -0,2% 4,0% 7,0% 0,6% 3,6% 4,0% -10% -5,5% -16,1% -20% -22,9% -30% -30,0% -40% 2009 2010 2011 2012 2013
Slide 11: 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 Oct-10 Oct-11 Oct-12 Jun-12 Feb-11 Feb-12 Feb-13 Jun-10 Jun-11 Aug-10 Aug-11 Aug-12 Dec-10 Dec-11 Dec-12 Apr-10 Apr-11 Apr-12 Apr-13 CIS EXPORT HRC BLACKSEA/BALT
Slide 12: 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 Aug-10 Aug-11 Aug-12 Feb-11 Feb-12 Feb-13 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Oct-11 Oct-10 Oct-12 Dec-12 Apr-10 Apr-11 Apr-12 Apr-13 BILLET CHINA E
Slide 13: Agenda
Agenda 2013 Market Overview 2013 1Q Results 13 / 30
Slide 14: Erdemir Group Key Figures
ERDEMİR GROUP KEY FIGURES 2013 1Q 2012 1Q 2012 2011 Liquid Steel Production (000 Tons) 2.216 2.037 8.042 7.656 (1) Slab Production (000 Tons) 1.791 1.713 6.329 6.660 (2) Flat Steel Production (000 Tons) 1.600 1.506 5.983 6.119 Long Steel Production (000 Tons) 445 278 1.519 794 Flat Steel Shipments (
Slide 15: Liquid steel production increased by 9% in 2013 1Q YoY
Liquid steel production increased by 9% in 2013 1Q YoY LIQUID STEEL PRODUCTION ( 000 TONS ) 8.042 7.656 7.311 2.218 2.216 2.037 2012 2013 2012 2012 2011 2010 4. Quarter 1. Quarter 15 / 30
Slide 16: Production increased by 15% in 2013 1Q YoY
Production increased by 15% in 2013 1Q YoY PRODUCTION VOLUMES ( 000 TONS ) 7.501 6.913 6.793 1.519 794 1.420 1.598 1.652 1.501 2.132 2.045 1.784 4.384 4.467 509 445 3.872 278 414 439 370 1.209 1.161 1.136 2012 2013 2012 2012 2011 2010 4. Quarter 1. Quarter Hot Cold Long Total 16 / 30
Slide 17: Sales volumes increased by 10% in 2013 1Q YoY
Sales volumes increased by 10% in 2013 1Q YoY SALES VOLUMES ( 000 TONS ) 7.448 6.647 6.524 1.468 791 1.393 1.627 1.553 1.457 2.056 2.027 1.837 282 4.353 4.303 510 456 3.674 412 429 414 1.134 1.142 1.141 2012 2013 2012 2012 2011 2010 4. Quarter 1. Quarter Hot Cold Long Total 17 / 30
Slide 18: Exports revenue increased by 64% in 2013 1Q YoY
Exports revenue increased by 64% in 2013 1Q YoY NET SALES REVENUE ( MILLION USD ) 5.340 5.338 771 931 4.427 594 4.569 4.407 3.833 1.363 1.364 1.361 226 250 152 1.137 1.114 1.209 2012 2013 2012 2012 2011 2010 4. Quarter 1. Quarter Domestic Export Total 18 / 30
Slide 19: Sales to automotive industry increased in 2013 1Q YoY
Sales to automotive industry increased in 2013 1Q YoY 2013 1Q FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2012 1Q FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 179Kt; 13% 162Kt; 12% 59Kt; 4% 62Kt; 4% 486Kt; 36% 518Kt; 37% 116Kt; 8% 147Kt; 11% 1.362Kton; 1.403Kton; 87% 66Kt; 5% 90% 71Kt; 5% 150Kt; 11% 137Kt; 1
Slide 20: Flat steel sales to North America was 10% of flat export
Flat steel sales to North America countries was 10% of our flat export in 2013 1Q 2013 1Q FLAT STEEL EXPORTS BREAKDOWN (%) 2012 1Q FLAT STEEL EXPORTS BREAKDOWN (%) 9Kt; 4% 4Kt; 3% 10Kt; 5% 12Kt; 8% 20Kt; 10% 62Kt; 41% 209Kton; 152Kton; 42Kt; 27% 13% 10% 170Kt; 81% 33Kt; 21% 2013 1Q LONG STEEL EXPORT
Slide 21: Erdemir Group sales prices and cost of sales
Apr-10 Apr-10 USD/TON May-10 USD/TON 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 Jun-11 Jun-11 Jul-11 Jul-11 Aug-11 Aug-11 Erdemir Group Billet Sales Price Erdemir Group
Slide 22: Net profit increased by 85% in 2013 1Q YoY
Net profit increased by 85% in 2013 1Q YoY EBITDA ( MILLION USD ) 1.400 1.158 32,0% 1.200 963 1.000 24,0% 21,7% 21,8% 800 603 17,5% 16,0% 600 13,1% 11,3% 400 8,6% 238 8,0% 200 178 117 0 0,0% 2012 2013 2012 2012 2011 2010 4. Quarter 1. Quarter EBITDA EBITDA Margin NET 800 PROFIT/(LOSS) ( MILLION USD
Slide 23: EBITDA was 238 million USD in 2013 1Q
EBITDA was 238 million USD in 2013 1Q Consolidated EBITDA => Consolidated Net Profit (Million USD) (59) (11) (34) 238 (7) 180 169 128 EBITDA Depreciation Operating Finance Tax Inc./(Exp.) Non-Controlling NET PROFIT (1 Jan - Income Inc./(Exp.) Interests (1 Jan - 31 March 13) 31 March 2013) 23 / 30
Slide 24: EBITDA to net cash bridge
EBITDA was 238 million USD in 2013 1Q Consolidated EBITDA => Consolidated Net Cash (Million USD) 13 (31) 60 (199) 311 238 81 - EBITDA - Changes in - Interest - Net Cash Net Cash- Used in Net Cash- Used in INCREASE- IN (1 Jan - Working Capital Inc./(Exp.), Tax Provided by Investing Act. Financing Act
Slide 25: EBITDA 2012 4Q to 2013 1Q bridge
EBITDA was 238 million USD in 2013 1Q Consolidated EBITDA 2012 4Q => Consolidated EBITDA 2013 1Q (Million USD) (3) 69 1 (6) 238 178 EBITDA Quantity, Mix Price Cost Other EBITDA 2012, 4Q (Oct-Dec 2013, 1Q (Jan- 2012) March 2013) 25 / 30
Slide 26: Erdemir Group has 1.098 million USD cash at end of 2013 1Q
Erdemir Group has 1.098 million USD cash and cash equivalents at the end of 2013 1Q BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE ( MILLION USD ) ST Portion of LT Debt Short-Term Debt Long-Term Debt Cash and Cash Equivalents 3.785 2.998 1.368 2.767 471 600 2.529 2.479 537 2.270 20 579 608 6
Slide 27: Raw materials made up 72% of cost of goods sold
Raw materials made up 72% of the cost of goods sold in 2013 1Q COST OF PRODUCTION BREAKDOWN* - % 5% 4% 5% 3% 4% 4% 4% 5% 6% 6% 6% 7% 10% 11% 12% 11% 77% 74% 75% 72% 2013 1Q 2012 1Q 2012 2011 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Other * Excludi
Slide 28: Flat cost per ton excluding raw materials
Flat cost per ton excluding raw materials was realised as 182 USD/ton in 2013 1Q 500 2.100 FLAT 450PRODUCTS ( USD/TON )* 1.621 1.624 1.600 1.489 1.505 1.565 1.428 1.506 1.493 400 1.326 1.262 1.322 1.284 1.278 1.360 1.600 350 1.174 1.050 300 1.100 250 200 600 150 111 120 103 116 116 104 90 85 85 101
Slide 29: Capital expenditures of 255 million USD planned for 2013
Capital expenditures of 255 million USD is planned for 2013 ( M USD ) 1.017 718 634 961 445 423 675 576 264 242 255 377 200 158 423 171 159 199 143 140 35 23 68 56 59 57 93 83 55 43 17 12 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q 2013 2014+ Fixed Assets Investments Capital Expenditures 29 / 30
Slide 30: Number of employees was 12.833 as of March 2013
Number of employees was 12.833 as of March 2013 NUMBER OF EMPLOYEES 15.063 14.637 13.553 13.433 13.161 13.045 12.833 2007 2008 2009 2010 2011 2012 2013 March 30 / 30
Slide 31: Q&A
Q&A
Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — Q1 2013 Earnings Presentation on 6ix