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) — H1 2012 Earnings Presentation

28 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Aug 8, 2012

  1. Slide 1: Erdemir Group 2012 6 Months Consolidated Financial Results

    Erdemir Group 2012 6 Months Consolidated Financial Results 8 August 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 6 Months Results 3 / 27

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

    -50% -25% 0% 25% 50% 75% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Jun-05 Jun-05 Oct-05 Oct-05 Feb-06 Feb-06 Jun-06 Jun-06 Source: * Worldsteel Oct-06 ** Bloomberg Oct-06 Feb-07 Feb-07 Jun-07 Jun-07 Oct-07 Oct-07 Feb-08 Feb-08 Jun-08 Jun-08 Oct-08 Oct-08 Feb-09 Feb-09 Jun-09 Jun-09 Oct-09

  5. Slide 5: Coke prices are decreasing

    100 200 300 400 500 600 700 800 0 200 400 600 800 0 1.000 1.200 1.400 07.2008 07.2008 USD/TON USD/TON 10.2008 10.2008 01.2009 01.2009 Source: Bloomberg 04.2009 04.2009 07.2009 07.2009 10.2009 10.2009 01.2010 01.2010 EFFECTIVE PRICE 04.2010 04.2010 ERDEMIR GROUP HRC 07.2010 07.2010 10.2010 10.2010 01

  6. Slide 6: Turkish steel production increased by 10% in 2012 6M YoY

    Turkish steel production increased by 10% in 2012 6M YoY PRODUCTION ( 000 TONS ) 16.938 31.943 15.382 26.300 26.684 26.067 4.297 9.075 25.133 4.466 4.543 4.257 6.629 4.421 12.641 22.868 20.712 22.141 21.810 10.916 19.671 2012 6M 2011 6M 2011 2010 2009 2008 2007 Long Flat Total CONSUMPTION ( 000 TONS

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

    Turkish Steel Market ( cont’d ) IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) 16.806 8.478 15.861 94 15.255 14.465 218 16 7.751 60 1.368 13.795 54 212 1.651 35 926 2.298 2.407 1.520 2.206 1.244 1.324 1.347 2.393 1.625 3.523 1.141 11.786 12.937 6.213 10.505 10.890 5.208 9.211 2012 6M 2011 6M 2011 2010

  8. Slide 8: Automotive production was 565 thousand units in 2012 6M

    Automotive production was 565 thousand units in 2012 6M AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) 864 753 417 394 622 565 446 360 2011 6M 2012 6M 2011 6M 2012 6M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) 80 72 2011 6M 2012 6M Light Vehicles Source: Automoti

  9. Slide 9: White goods exports and production increased in 2012 1H YoY

    White goods exports and production increased by 14% and 8% respectively in 2012 1H YoY WHITE GOODS DOMESTIC SALES WHITE GOODS EXPORTS (000 UNITS) (000 UNITS) 14% 3.104 7.434 3.062 6.504 2011 6M 2012 6M 2011 6M 2012 6M WHITE GOODS PRODUCTION (000 UNITS) 8% 9.566 10.302 2011 6M 2012 6M Source: White G

  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 higher than December 2011

    EU HRC sales prices are higher than December 2011 Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) HRC PRICES ( USD/Ton ) 900 800 As of July 2012, EU HRC price was 621 USD, China HRC spot price is 583 700 USD, USA export HRC price is 615 600 USD. The prices were 608 USD, 670 USD, 635 USD respec

  12. Slide 12: Agenda

    Agenda 2012 Market Overview 2012 6 Months Results 12 / 27

  13. Slide 13: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2012 2011 2011 2010 First Half First Half Liquid Steel Production (000 Tons) 3.723 3.761 7.656 7.311 (1) Slab Production (000 Tons) 3.030 3.345 6.660 5.674 (2) Flat Steel Production (000 Tons) 2.866 3.071 6.119 5.373 Long Steel Production (000 Tons) 604 314 794 1.420 Flat S

  14. Slide 14: Liquid steel production was 3.7 million tons in 2012 6M

    Liquid steel production was 3,7 million tons in 2012 6M LIQUID STEEL PRODUCTION ( 000 TONS ) 7.656 7.311 6.619 3.723 3.761 2.037 1.837 1.924 1.686 2012 2011 2012 2011 2012 2011 2011 2010 2009 1. Quarter 2. Quarter 1. Half 14 / 27

  15. Slide 15: Production was 3.5 million tons in 2012 1H

    Production was 3,5 million tons in 2012 1H PRODUCTION VOLUMES ( 000 TONS ) 6.913 6.793 6.681 794 1.420 1.869 1.652 1.501 1.590 3.470 3.385 604 314 1.784 814 1.692 1.693 774 4.467 278 187 1.686 127 3.872 326 3.222 370 418 396 404 2.092 2.257 1.136 1.087 956 1.170 2012 2011 2012 2011 2012 2011 2011 20

  16. Slide 16: Sales volumes increased by 7% in 2012 1H YoY

    Sales volumes increased by 7% in 2012 1H YoY SALES VOLUMES ( 000 TONS ) 6.986 6.647 6.516 791 1.858 1.393 1.551 1.456 1.665 3.579 3.351 539 322 1.849 1.667 1.730 1.684 819 801 282 4.305 197 257 125 3.667 3.464 416 415 403 386 2.221 2.228 1.151 1.055 1.070 1.173 2012 2011 2012 2011 2012 2011 2011 201

  17. Slide 17: Net sales revenue increased by 14% in 2012 6M YoY

    Net sales revenue increased by 14% in 2012 6M YoY NET SALES REVENUE ( MILLION TL ) 8.921 1.556 6.633 890 5.266 4.785 4.217 1.217 653 809 7.365 2.435 2.350 5.743 2.028 2.189 294 359 4.132 395 4.049 414 3.408 2.141 1.991 1.794 1.614 2012 2011 2012 2011 2012 2011 2011 2010 2009 1. Quarter 2. Quarter 1.

  18. Slide 18: Sales to pipe and profile industry increased in 2012 6M YoY

    Sales to pipe and profile industry increased in 2012 6M YoY 2012 6M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2011 6M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 350Kt; 13% 255Kt; 11% 141Kt; 6% 128Kt; 5% 781Kt; 33% 982Kt; 37% 251Kt; 9% 265Kt; 11% 2.691Kton; 2.374Kton; 88% 78% 133Kt; 5% 100Kt; 4% 253Kt; 9%

  19. Slide 19: Flat steel sales to North America was 15% of flat export

    Flat steel sales to North America countries was 15% of our flat export in 2012 6M 2012 6M FLAT STEEL EXPORTS BREAKDOWN (%) 2011 6M FLAT STEEL EXPORTS BREAKDOWN (%) 19Kt; 3% 32Kt; 9% 4Kt; 1% 7Kt; 2% 69Kt; 10% 53Kt; 15% 350Kton; 656Kton; 12% 22% 194Kt; 55% 65Kt; 19% 564Kt; 86% 2012 6M LONG STEEL EXPOR

  20. Slide 20: Flat and long steel prices decreased YoY in 2012 6M

    Jan-09 Jan-09 Feb-09 USD/TON Feb-09 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 Erde

  21. Slide 21: Net profit was 206 million TL in 2012 1H

    Net profit was 206 million TL in 2012 1H 2.500 32,0% EBITDA ( MILLION TL ) 2.034 2.000 25,6% 24,0% 23,7% 22,8% 21,7% 21,4% 1.500 1.420 16,0% 10,3% 1.001 1.000 9,3% 8,4% 7,3% 8,0% 560 441 445 382 500 0,0% 204 241 0 -8,0% 2012 2011 2012 2011 2012 2011 2011 2010 2009 1Q 2Q 1H EBITDA EBITDA Margin 1.200

  22. Slide 22: EBITDA was 445 million TL in 2012 1H

    EBITDA was 445 million TL in 2012 1H Million TL 1.001 445 66 33 (39) (269) (348) EBITDA Quantity, Mix Price Cost Exchange Other EBITDA 2011 1H Rate 2012 1H 22 / 27

  23. Slide 23: Erdemir Group has 892 million USD cash at end of June 2012

    Erdemir Group has 892 million USD cash and cash equivalents at the end of 2012 June 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 2.767 386 2.670 600 2.529 537 599 2.140 20 579 6

  24. Slide 24: Raw materials made up 69% of cost of goods sold in 2012 1H

    Raw materials made up 69% of the cost of goods sold in 2012 1H COST OF PRODUCTION BREAKDOWN* - % 4% 3% 4% 4% 4% 5% 6% 6% 7% 7% 6% 6% 11% 12% 12% 69% 69% 67% 2012 1H 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 in 2012 1H

    Flat cost per ton excluding raw materials was realised as 205 USD/ton in 2012 1H 500 2.100 FLAT 450 PRODUCTS ( USD/TON )* 1.621 1.489 1.505 1.565 1.506 400 1.428 1.360 1.600 1.326 1.262 1.322 1.284 1.278 350 1.174 1.050 300 1.100 250 200 600 150 111 120 103 116 116 90 85 78 85 101 109 106 100 94 86

  26. Slide 26: Capital expenditures of 208 million USD planned for 2012

    Capital expenditures of 208 million USD is planned for 2012 ( M USD ) 954 116 693 672 556 130 36 361 838 377 543 520 208 164 347 332 136 130 12 22 60 144 125 107 104 31 63 2002 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 - 2015 İskenderun Investments Ereğli Investments 26 / 27

  27. Slide 27: Number of employees was 13,371 in June 2012

    Number of employees was 13.371 in June 2012 NUMBER OF EMPLOYEES 15.063 14.637 13.553 13.433 13.371 13.161 2007 2008 2009 2010 2011 2012 June 27 / 27

  28. Slide 28: Q&A

    Q&A

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — H1 2012 Earnings Presentation on 6ix