El Ezz Aldekhela Steel-Alexandria · EGX:IRAX
El Ezz Aldekhela Steel-Alexandria — ezzsteel — FY2009 Earnings Presentation
21 slides from El Ezz Aldekhela Steel-Alexandria's earnings presentation, Mar 24, 2010
Slide 1: FY 2009 Financial Results Presentation
FY 2009 Financial Results Presentation 24 March 2010
Slide 2: Disclaimer
Disclaimer ezzsteel ( formerly: Al Ezz Steel Rebars S.A.E. ) or “ESR” give notice that: The particulars of this presentation do not constitute any part of an offer or a contract. The information contained in this presentation may contain certain projections and forward-looking statements that reflec
Slide 3: Key Highlights
Key Highlights 2009 has been challenging for the steel industry globally Lower steel prices impacted our profitability Unlike the majority of steelmakers around the globe, ezzsteel was able to operate profitably Egyptian steel demand remained strong and grew steadily Operational flexibility and mode
Slide 4: Steel Market Overview
Steel Market Overview World Crude Steel Production 1,400 1,346 1,326 1,247 1,220 1,200 1,144 270 270 1,071 256 245 1,000 970 242 124 114 904 226 120 98 Million Tonnes 848 851 213 120 119 113 88 800 202 113 116 186 189 133 125 82 112 106 132 101 113 98 100 128 139 600 111 210 198 108 134 106 103 207
Slide 5: Overview of Domestic Steel Market
Overview of Domestic Steel Market 7,500 7,307 Egypt Consumption 7,000 6,500 6,000 5,500 5,001 5,000 ‘000 Tonnes 4,500 4,124 4,000 3,354 3,504 3,462 3,500 3,131 3,085 3,055 3,000 2,700 2,500 2,000 1,500 958 1,122 901 871 1,000 515 493 602 658 664 437 500 - 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 6: Domestic Market Leader
Domestic Market Leader… FY 09 Long Product Market Share Breakdown FY 09 Flat Product Market Share Breakdown ezzsteel 44% Beshay 7% ezzsteel 41% EISCO Al Garhi 6% 14% Bourieni 2% Marakby 1% Others 7% Imports 33% Imports 45% Estimated local market size of 7,307 thousand tonnes Estimated local market s
Slide 7: Full Year 2009 Key Highlights
Full Year 2009 Key Highlights Production Revenue 5,000 4,608 24,000 21,843 4,265 20,000 4,000 '000 Tonnes EGP Millions 16,000 3,000 12,589 12,000 2,000 8,000 1,000 4,000 0 0 FY 2008 FY 2009 FY 2008 FY 2009 EBITDA Net Income 4,489 1,233 4,500 1,250 1,000 EGP Millions EGP Millions 3,500 750 2,500 500
Slide 8: Full Year 2009 Production
Full Year 2009 Production 2,000 1,812 1,806 1,480 000 Tonnes 1,500 1,373 978 '000 1,000 695 729 500 0 EZDK Long EZDK Flat ESR Long EFS Flat FY 2008 FY 2009 8 8
Slide 9: FY 2009 Sales Breakdown
FY 2009 Sales Breakdown By Product By product in EGP million By Market By market in EGP million Export 1,607 Flat 2,859 13% 23% Long 9,564 Domestic 77% 10,982 87% ezzsteel continues to generate the largest portion of its revenues in its growing domestic market, where we enjoy a leading position 9 9
Slide 10: Full Year 2009 Revenues
Full Year 2009 Revenues Consolidated revenues EGP Mn ESR/ERM EZDK EFS ezzsteel Long 4,283 5,281 9,564 Flat 2,763 96 2,859 Others 10 143 13 166 Total 4,293 8,187 109 12,589 Standalone 4,293 8,161 318 Revenues 10 10
Slide 11: Full Year 2009 Cost Breakdown
Full Year 2009 Cost Breakdown FY 09 ezzsteel ESR/ERM EZDK EFS Consolidated EGP Million Sales 4,293 8,161 318 12,589 COGS 3,969 6,734 633 11,135 Gross Profit Margin 8% 18% 12% 100% 90% 80% 70% Depreciation & Overheads 60% Labour 50% Energy 40% 30% Raw Materials 20% 10% 0% ESR/ERM EZDK Ezz Steel Conso
Slide 12: Full Year 2009 Profitability
Full Year 2009 Profitability Operational profits EBITDA breakdown by division 5,000 5,000 4,489 4,500 4,324 4,489 4,500 4,299 4,000 4,000 3,500 3,500 EGP Millions 3,000 3,000 EGP Millions 2,500 2,500 2,000 1,662 2,000 1,454 1,569 1,662 1,500 1,500 1,000 1,000 500 500 264 -179 148 21 0 0 Gross Profit
Slide 13: Commitment to Growth Strategy
Commitment to Growth Strategy Existing Capacity Domestic Expansions Post Domestic Expansion Regional Expansions Post Regional Expansion 10.0 10.0 7.0 7.0 3.0 3.0 1.2 3.8 mn tpa 5.8 3.2 Existing Existing Additional Additional Domestic Domestic Algeria Algeria Total Total DRI Finished DRI Finished DRI
Slide 14: Outlook
Outlook ezzsteel remains confident about the continued strength of the Egyptian market, which has remained largely unaffected by the global economic slowdown Local demand remains very strong, in particular house building and infrastructure projects Global steel markets have stabilised and are starti
Slide 15: Summary
Summary Strong operational flexibility helped to offset weak price environment Buoyant local market demand for long product, signs of strengthening international market for flat steel Benefit of flexible model being seen, down cycle used to install additional flexibility at EFS Growth strategy to co
Slide 16: Q&A
Q&A
Slide 17: Divisional Review: EZDK
Divisional Review: EZDK EZDK (Alexandria) Sales: FY 2008 FY 2009 Value: EGP 11.6bn EGP 8.2bn Volume: Long: 1,785 thousand ton 1,799 thousand ton Flat: 687 thousand ton 973 thousand ton Exports as % of Sales: Long: 1% 3% Flat: 41% 52% EBITDA: EGP 4.3bn EGP 1.6bn Production: Long Products: 1,812 thous
Slide 18: Divisional Review: ESR/ERM
Divisional Review: ESR/ERM ESR/ERM ( Sadat City & 10th of Ramadan) Sales: FY 2008 FY 2009 Value: EGP 6.6bn EGP 4.3bn Volume: 1,382 thousand ton 1,466 thousand ton Exports as % of Sales: 0% 0% EBITDA: EGP 148mn EGP 264mn Production: Long Products: 1,373 thousand ton 1,481 thousand ton Billets: 748 th
Slide 19: Divisional Review: EFS
Divisional Review: EFS EFS (Suez) Sales: FY 2008 FY 2009 Value: EGP 3.8bn EGP 0.318bn Volume: 771 thousand ton 42.5 thousand ton Exports as % of Sales: 80% 96% EBITDA: EGP 21mn EGP -179mn Production: Flat Products: 729 thousand ton 1 .2 thousand ton One of the few producers in the world to operate t
Slide 20: ezzsteel at a Glance
ezzsteel at a Glance Ezz Industries Free Float The largest steel producer in the Middle East and Africa with a total actual 65.7% 34.3% capacity of 5.8mn tonnes per annum 3.5mn tonnes of long products (Rebar) 2.3mn tonnes of flat products (HRC) ezzsteel is listed on the EGX and the LSE 53.24% 33.82%
Slide 21: Relative Share Performance Vs EGX30
Relative Share Performance Vs EGX30 Share Data: 52wk High on 16th of February 2010: 19.47 EGP 52wk Low on 25th of March 2009: 7.12EGP Avg. Daily Traded Volume: 2.7 mn Shares Market Cap: 10.2 bn EGP ESRS EGX30 21 21