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) — 9M 2012 Earnings Presentation

28 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Oct 18, 2012

  1. Slide 1: Erdemir Group 2012 9 Months Consolidated Financial Results

    Erdemir Group 2012 9 Months Consolidated Financial Results 18 October 2012

  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 2012 Market Overview 2012 9 Months Results 3 / 27

  4. Slide 4: Crude steel production YoY: CIS and EU27

    -50% -40% -30% -20% -10% 10% 20% 30% 40% 50% 60% 0% -25% -50% 25% 50% 75% 0% Aug-05 Aug-05 Nov-05 Nov-05 Feb-06 Feb-06 May-06 May-06 Aug-06 Aug-06 Source: * Worldsteel Nov-06 Nov-06 ** Bloomberg Feb-07 Feb-07 May-07 May-07 Aug-07 Aug-07 Nov-07 Nov-07 Feb-08 Feb-08 May-08 May-08 Aug-08 Aug-08 Nov-08

  5. Slide 5: Iron ore prices have been increasing after sharp decrease since July

    100 200 300 400 500 600 0 200 400 600 800 0 1.000 1.200 10.2008 10.2008 USD/TON USD/TON 01.2009 01.2009 04.2009 04.2009 Source: Bloomberg 07.2009 07.2009 10.2009 10.2009 01.2010 01.2010 04.2010 04.2010 EFFECTIVE PRICE 07.2010 07.2010 ERDEMIR GROUP HRC 10.2010 10.2010 01.2011 01.2011 04.2011 04.2011

  6. Slide 6: Turkish steel production increased by 9% in 2012 8M YoY

    Turkish steel production increased by 9% in 2012 8M YoY PRODUCTION ( 000 TONS ) 22.541 31.943 20.593 26.300 26.684 26.067 5.798 9.075 25.133 5.873 4.543 4.257 6.629 4.421 16.743 22.868 20.712 22.141 21.810 14.720 19.671 2012 8M 2011 8M 2011 2010 2009 2008 2007 Long Flat Total CONSUMPTION ( 000 TONS

  7. Slide 7: Turkish iron and steel product exports increased by 10% in 2012 8M YoY

    Turkish iron and steel product exports increased by 10% in 2012 8M YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.806 11.234 15.861 94 15.255 14.465 218 16 10.211 60 1.368 13.795 1.172 55 212 1.651 35 2.298 2.407 1.780 1.520 2.206 1.244 2.065 2.393 1.625 3.523 1.638 11.786 12.937 7.981 10.505 10

  8. Slide 8: Automotive production was 794 thousand units in 2012 9M

    Automotive production was 794 thousand units in 2012 9M AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 1.230 1.095 593 536 884 794 637 559 2011 9M 2012 9M 2011 9M 2012 9M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 75 68 2011 9M 2012 9M Light Vehicles Source: Auto

  9. Slide 9: White goods exports and production increased by 13% and 7% respectively

    White goods exports and production increased by 13% and 7% respectively in 2012 9M YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) 13% 4.324 4.282 10.330 9.110 2011 8M 2012 8M 2011 8M 2012 8M WHITE GOODS PRODUCTION (000 UNITS) 7% 13.120 14.101 2011 8M 2012 8M Source: White

  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% 22,1% 20,1% 20,0% 16,0% 6,0% 6,0% 8,0% 8,0% 10,0% 6,2% 17,1% 11,2% 11,2% 7,0% -0,2% 0,0% -4,2% 4,0% 2,0% 4,0% -6,8% -10,0% -8,1% -16,1% -20,0% -22,9% -30,0% -30,0% 2008 2009 2

  11. Slide 11: EU HRC sales prices are decreasing in last quarter

    EU HRC sales prices are decreasing in last quarter Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 900 As of October 2012, EU HRC price 800 was 628 USD, China HRC spot price is 700 596 USD, USA export HRC price is 575 600 USD. The prices were 608 USD, 670 USD, 635 USD re

  12. Slide 12: Agenda

    Agenda 2012 Market Overview 2012 9 Months Results 12 / 27

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2012 9M 2011 9M 2011 2010 Liquid Steel Production (000 Tons) 5.824 5.727 7.656 7.311 (1) Slab Production (000 Tons) 4.674 5.094 6.660 5.674 (2) Flat Steel Production (000 Tons) 4.359 4.691 6.119 5.373 Long Steel Production (000 Tons) 1.010 481 794 1.420 Flat Steel Shipments

  14. Slide 14: Liquid steel production was 5,8 million tons in 2012 9M

    Liquid steel production was 5,8 million tons in 2012 9M LIQUID STEEL PRODUCTION ( 000 TONS ) 7.656 7.311 6.619 5.824 5.727 2.037 1.837 1.924 2.101 1.966 1.686 2012 2011 2012 2011 2012 2011 2012 2011 2011 2010 2009 1. Quarter 2. Quarter 3. Quarter 9 Months 14 / 27

  15. Slide 15: Production was 5,4 million tons in 2012 9M

    Production was 5,4 million tons in 2012 9M PRODUCTION VOLUMES ( 000 TONS ) 6.913 6.793 6.681 794 1.420 5.369 5.172 1.869 1.652 1.010 481 1.501 1.227 1.590 1.184 1.784 1.692 1.693 1.787 278 1.686 1.899 167 4.467 187 127 3.872 406 3.175 3.464 3.222 326 413 370 418 396 410 404 1.136 1.087 956 1.170 1.0

  16. Slide 16: Sales volumes increased by 7% in 2012 9M YoY

    Sales volumes increased by 7% in 2012 9M YoY SALES VOLUMES ( 000 TONS ) 6.986 6.647 6.516 791 1.858 5.391 1.393 5.033 1.551 958 461 1.456 1.665 1.215 1.190 1.849 1.667 1.730 1.684 1.812 1.682 282 4.305 197 257 125 139 3.382 3.667 3.464 419 3.219 416 415 403 386 389 396 1.151 1.055 1.070 1.173 998 1.

  17. Slide 17: Domestic sales revenue increased by 13% in 2012 9M YoY

    Domestic sales revenue increased by 13% in 2012 9M YoY NET SALES REVENUE ( MILLION TL ) 8.921 1.556 7.135 6.665 6.633 978 1.224 890 5.266 1.217 7.365 6.157 2.435 2.350 2.189 2.350 2.448 5.441 5.743 294 2.028 415 359 395 325 4.049 414 2.141 1.991 1.794 2.025 2.033 1.614 2012 2011 2012 2011 2012 2011

  18. Slide 18: Sales to pipe and profile industry increased in 2012 9M YoY

    Sales to pipe and profile industry increased in 2012 9M YoY 2012 9M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2011 9M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 496Kt; 12% 384Kt; 11% 172Kt; 4% 193Kt; 5% 1.212Kt; 1.512Kt; 33% 383Kt; 10% 38% 401Kt; 11% 4.016Kton; 3.631Kton; 199Kt; 5% %91 161Kt; 4% %79 373K

  19. Slide 19: Flat steel sales to North America was 17% of flat export

    Flat steel sales to North America countries was 17% of our flat export in 2012 9M 2012 9M FLAT STEEL EXPORTS BREAKDOWN (%) 2011 9M FLAT STEEL EXPORTS BREAKDOWN (%) 29Kt; 3% 46Kt; 11% 29Kt; 3% 10Kt; 2% 101Kt; 11% 57Kt; 14% 417Kton; 941Kton; %9 %21 233Kt; 56% 71Kt; 17% 781Kt; 83% 2012 9M LONG STEEL EX

  20. Slide 20: Erdemir Group sales prices and cost of sales

    Jan-09 Jan-09 Feb-09 Feb-09 USD/TON USD/TON 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-09 Sep-09 Oct-09 Oct-09 Nov-09 Nov-09 Dec-09 Dec-09 Jan-10 Jan-10 Feb-10 Feb-10 Mar-10 Mar-10 Apr-10 Apr-10 May-10 May-10 Jun-10 Jun-10 Jul-10 Jul-10 Aug-10 Aug-10 Sep-

  21. Slide 21: Net profit was 357 million TL in 2012 9M

    Net profit was 357 million TL in 2012 9M 2.500 32,0% EBITDA ( MILLION TL ) 2.034 27,5% 2.000 25,6% 25,1% 24,0% 21,7% 1.675 22,8% 21,4% 1.500 1.420 16,0% 13,5% 10,3% 10,7% 1.000 8,4% 763 7,3% 8,0% 560 674 500 441 382 0,0% 241 318 204 0 -8,0% 2012 2011 2012 2011 2012 2011 2012 2011 2011 2010 2009 1. Q

  22. Slide 22: EBITDA was 763 million TL in 2012 9M

    EBITDA was 763 million TL in 2012 9M Million TL 318 241 145 10 39 (0,3) (116) EBITDA Quantity, Mix Price Cost Exchange Rate Other EBITDA 2012 2Q 2012 3Q Million TL 1.675 763 131 45 (95) (349) (643) EBITDA Quantity, Mix Price Cost Exchange Rate Other EBITDA 2011 9M 2012 9M 22 / 27

  23. Slide 23: Erdemir Group has 918 million USD cash and cash equivalents

    Erdemir Group has 918 million USD cash and cash equivalents at the end of 2012 September BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE ST Portion of LT Debt 3.785 ( MILLION USD ) Short-Term Debt Long-Term Debt Cash and Cash Equivalents 2.998 1.368 468 2.767 2.639 600 2.529 537 2.140 579 668

  24. Slide 24: Raw materials made up 69% of the cost of goods sold

    Raw materials made up 69% of the cost of goods sold in 2012 9M COST OF PRODUCTION BREAKDOWN* - % 4% 3% 4% 4% 4% 5% 6% 6% 7% 7% 6% 6% 11% 12% 12% 69% 69% 67% 2012 9M 2011 2010 Raw Materials Personnel Expenses Energy Consumables Depreciation Other * Excluding inventory writedowns and provision release

  25. Slide 25: Flat cost per ton excluding raw materials was 191 USD/ton

    Flat cost per ton excluding raw materials was realised as 191 USD/ton in 2012 9M 500 PRODUCTS ( USD/TON )* FLAT 2.100 450 1.565 1.621 1.489 1.505 1.428 1.506 1.493 400 1.326 1.322 1.360 1.600 1.262 1.284 1.278 350 1.174 1.050 300 1.100 250 200 600 150 120 103 116 116 105 90 85 85 101 109 111 106 78

  26. Slide 26: Capital expenditures of 187 million USD is planned for 2012

    Capital expenditures of 187 million USD is planned for 2012 ( M USD ) 954 116 693 672 555 130 35 361 838 344 543 520 164 187 136 130 293 332 12 22 60 130 125 107 104 57 50 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 - 2015 İskenderun Investments Ereğli Investments 26 / 27

  27. Slide 27: Number of employees was 13.332 as of September 2012

    Number of employees was 13.332 as of September 2012 NUMBER OF EMPLOYEES 15.063 14.637 13.553 13.433 13.332 13.161 2007 2008 2009 2010 2011 2012 September 27 / 27

  28. Slide 28: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — 9M 2012 Earnings Presentation on 6ix