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) — FY2011 Earnings Presentation

27 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 16, 2012

  1. Slide 1: Erdemir Group 2011 Consolidated Financial Results

    Erdemir Group 2011 Consolidated Financial Results 16 February 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 Results 3 / 27

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

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

  5. Slide 5: Iron ore prices are decreasing

    100 200 300 400 500 600 700 800 0 200 400 600 800 0 1.000 1.200 1.400 01.2008 01.2008 USD/TON USD/TON 04.2008 04.2008 07.2008 07.2008 10.2008 10.2008 SOURCE: BLOOMBERG 01.2009 01.2009 04.2009 04.2009 07.2009 07.2009 EFFECTIVE PRICE 10.2009 10.2009 ERDEMIR GROUP HRC 01.2010 01.2010 04.2010 04.2010 07

  6. Slide 6: Turkish steel production increased by 21% in 2011 YoY

    Turkish steel production increased by 21% in 2011 YoY PRODUCTION ( 000 TONS ) 31.943 26.067 26.684 26.300 25.133 9.075 4.257 4.543 4.421 6.629 21.810 22.141 20.712 22.868 19.671 2007 2008 2009 2010 2011 Long Flat Total CONSUMPTION ( 000 TONS ) 26.931 23.771 23.604 21.454 18.048 13.209 11.661 11.944

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

    Turkish Steel Market ( cont’d ) IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.806 15.861 94 14.465 15.255 13.795 1.368 218 60 1.651 212 35 2.407 2.298 1.244 2.206 1.520 1.625 2.393 3.523 12.937 11.786 10.890 10.505 9.211 2007 2008 2009 2010 2011 Long Steel Billet Flat Steel Slab Total IRON AND STEE

  8. Slide 8: Automotive production and sales increased by 9% and 10% in 2011

    Automotive production and sales increased by 9% and 10% respectively in 2011 YoY AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 1.702 1.548 %9 %10 791 754 1.095 1.189 793 911 2010 2011 2010 2011 Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 71 76 2010 2011 Light Veh

  9. Slide 9: White goods domestic sales and production increased in 2011

    White goods domestic sales and production increased by 19% and 9% respectively in 2011 YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) %5 %19 6.471 13.731 14.449 5.425 2010 2011 2010 2011 WHITE GOODS PRODUCTION (000 UNITS) %9 18.397 20.106 2010 2011 SOURCE: WHITE GOODS SUP

  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) 40,0% 32,6% 30,0% 33,3% 22,3% 20,1% 20,0% 16,0% 8,0% 9,5% 4,9% 10,0% 6,2% 11,7% 9,0% 17,1% 11,2% 7,0% -0,2% 0,0% 4,0% 4,5% -4,2% 6,0% -6,8% -10,0% -8,1% -16,1% -20,0% -22,9% -30,0% -30,0% 2008 2009 2

  11. Slide 11: HRC sales prices are higher than December 2011

    HRC sales prices are higher than December 2011 Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 1.300 1.200 As of January 2012, EU HRC price 1.100 is 688 USD, China HRC spot price is 1.000 900 673 USD, USA export HRC price is 680 800 USD. The prices were 608 USD, 670 700

  12. Slide 12: Agenda

    Agenda 2011 Market Overview 2011 Results 12 / 27

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2011 2010 2009 Liquid Steel Production (000 Tons) 7.656 7.311 6.619 (1) Slab Production (000 Tons) 6.660 5.674 4.569 (2) Flat Steel Production (000 Tons) 6.119 5.373 4.812 Long Steel Production (000 Tons) 794 1.420 1.869 Flat Steel Shipments (000 Tons) 5.856 5.123 5.128 Lon

  14. Slide 14: Liquid steel production was 7,7 million tons in 2011

    Liquid steel production was 7,7 million tons in 2011 LIQUID STEEL PRODUCTION ( 000 TONS ) 7.656 7.311 6.619 1.837 1.895 1.924 1.831 1.966 1.929 1.884 1.701 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2009 1Q 2Q 3Q 4Q 14 / 27

  15. Slide 15: Production was 6,9 million tons in 2011

    Production was 6,9 million tons in 2011 PRODUCTION VOLUMES ( 000 TONS ) 6.913 6.793 6.681 794 1.420 1.869 1.652 1.501 1.590 1.692 1.692 1.788 1.795 1.637 1.843 4.467 167 1.741 187 127 1.518 3.872 473 313 353 3.222 395 354 414 240 418 335 425 443 362 361 1.087 987 1.170 921 1.207 917 1.003 1.047 2011

  16. Slide 16: HRC sales volume increased by 17% in 2011 YoY

    HRC sales volume increased by 17% in 2011 YoY SALES VOLUME ( 000 TONS ) 6.986 6.647 6.516 791 1.858 1.393 1.551 1.456 1.665 1.667 1.683 1.683 1.685 1.503 1.405 1.923 4.305 197 124 140 1.614 276 371 3.667 3.464 451 295 330 415 386 389 457 321 360 318 361 1.055 913 1.173 867 1.154 923 1.095 792 2011 2

  17. Slide 17: Net sales revenue increased by 34% in 2011 YoY

    Net sales revenue increased by 34% in 2011 YoY NET SALES REVENUE ( MILLION TL ) 8.921 1.556 6.633 890 5.266 1.217 7.365 2.189 2.448 2.256 5.743 2.028 415 1.921 1.583 395 1.621 1.509 332 4.049 414 325 162 175 228 1.794 2.033 1.924 1.614 1.421 1.446 1.281 1.596 2011 2010 2011 2010 2011 2010 2011 2010

  18. Slide 18: Sales to automotive sector increased by 4% in 2011

    Sales to automotive sector increased by 4% in 2011 2011 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2010 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 523Kt; 11% 392Kt; 9% 216Kt; 5% 270Kt; 6% 1.640Kt; 34% 326Kt; 7% 1.703Kt; 510Kt; 11% 39% 4.807Kton; 211Kt; 5% 4.389Kton; 82% 86% 201Kt; 4% 355Kt; 8% 505Kt; 10%

  19. Slide 19: Flat steel sales to EU countries increased by 4% in 2011

    Flat steel sales to EU countries increased by 4% in 2011 2011 FLAT STEEL EXPORTS BREAKDOWN (%) 2010 FLAT STEEL EXPORTS BREAKDOWN (%) 24Kt; 2% 34Kt; 5% 30Kt; 3% 26Kt; 3% 42Kt; 4% 43Kt; 6% 129Kt; 12% 82Kt; 11% 1.049Kton; 733Kton; 18% 14% 824Kt; 79% 548Kt; 75% 2011 LONG STEEL EXPORTS BREAKDOWN (%) 2010

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

    Jan-08 Jan-08 Feb-08 Feb-08 USD/TON USD/TON 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 Jul-09 Aug-09 Aug-09 Sep-

  21. Slide 21: Net profit increased by 31% in 2011 YoY

    Net profit increased by 31% in 2011 YoY EBITDA ( MILLION TL ) 2.500 32,0% 28,5% 27,5% 2.034 2.000 21,7% 25,6% 24,0% 19,1% 22,8% 21,4% 18,3% 20,0% 1.500 1.420 16,0% 15,9% 1.000 560 674 7,3%8,0% 441 461 500 290 302 359 367 382 0,0% 0 -8,0% 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2009 1Q 2Q 3

  22. Slide 22: Erdemir Group has 584 million USD cash at end of 2011

    Erdemir Group has 584 million USD cash and cash equivalents at the end of 2011 BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE ( MILLION USD ) ST Portion of LT Debt 3.785 Short-Term Debt Long-Term Debt Cash and Cash Equivalents 121 2.998 1.368 2.767 600 2.529 537 2.140 20 579 98 608 73 347 90

  23. Slide 23: Raw materials made up 69% of the cost of goods sold in 2011

    Raw materials made up 69% of the cost of goods sold in 2011 COST OF PRODUCTION BREAKDOWN* - % 1% 3% 4% 4% 6% 5% 6% 6% 7% 6% 8% 6% 12% 12% 13% 69% 67% 66% 2011 2010 2009 Raw Materials Personnel Expenses Energy Consumables Depreciation Other * EXCLUDING INVENTORY WRITEDOWNS AND PROVISION RELEASED 23 /

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

    Flat cost per ton excluding raw materials was realised as 206 USD/ton in 2011 500 2.100 FLAT PRODUCTS ( USD/TON )* 450 1.505 1.565 1.621 400 1.489 1.428 1.600 1.326 1.262 1.322 1.284 1.278 350 1.232 1.174 1.126 1.120 1.050 300 1.100 250 704 200 151 600 135 131 207 150 101 109 111 120 103 116 90 85 7

  25. Slide 25: Capital expenditures of 227 million USD planned for 2012

    Capital expenditures of 227 million USD is planned for 2012 ( M USD ) 954 116 693 672 556 130 36 361 838 333 543 520 227 136 159 332 129 308 12 55 159 22 125 107 104 26 68 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 - 2015 İskenderun Investments Ereğli Investments 25 / 27

  26. Slide 26: Number of employees was 13.433 in December 2011

    Number of employees was 13.433 in December 2011 NUMBER OF EMPLOYEES 15.063 14.637 14.056 13.553 13.433 13.161 2006 2007 2008 2009 2010 2011 26 / 27

  27. Slide 27: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — FY2011 Earnings Presentation on 6ix