Erdemir Group 2011 First Quarter Consolidated Financial Results. 06 May 2011

Transcription

1 Erdemir Group 2011 First Quarter Consolidated Financial Results 06 May 2011

2 2 / 26 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 information through its Disclosure Policy and has shared such policy with the public through the Erdemir website, in accordance with the Capital Markets Board regulations. As stated in related policy, information contained in forward-looking statements, whether verbal or written, should not include unrealistic assumptions or forecasts. It should be noted that, actual results could materially differ from estimates taking into account the fact that they are not based on historical facts but are driven from expectations, beliefs, plans, targets and other factors which are beyond the control of our Company. As a result, forward-looking statements should not be fully trusted or taken as granted. Forward-looking statements should be considered valid only considering the conditions prevailing at the time of the announcement. In cases where it is understood that forward-looking statements are no longer achievable, such matter will be announced to the public and the statements will be revised. However, the decision to make a revision is a result of a subjective evaluation. Therefore, it should be noted that, when a party is coming to a judgement based on estimates and forward-looking statements, our Company may not have made a revision at that particular time. Our Company makes no commitment to make regular revisions which would fully cover changes in every parameter. New factors may arise in the future which may not be possible to foresee at this moment in time.

3 3 / 26 Agenda 2011 Market Overview Q Results

4 In EU, sales price was 837 USD/ton as of April 2011 Mar-04 Mar-04 Jul-04 Jul-04 Nov-04 Nov-04 SOURCE: * WSA ** BLOOMBERG Mar-05 Mar-05 Jul-05 Jul-05 Nov-05 Nov-05 Mar-06 Mar-06 Jul-06 Jul-06 Nov-06 Nov-06 Mar-07 Mar-07 Jul-07 Jul-07 Nov-07 Nov-07 Mar-08 Mar-08 Jul-08 Jul-08 Nov-08 Nov-08 Mar-09 Mar-09 Jul-09 Jul-09 Nov-09 Nov-09 Mar-10 Mar-10 Jul-10 Jul-10 Nov-10 Nov-10 Mar-11 4 / 26 Mar-11 Mar Mar Jul-04 Aug Nov Jan-05 Mar Jun-05 Jul Nov-05 Nov Mar-06 Apr Jul Sep-06 Nov-06 Feb-07 Mar-07 Jul-07 Jul Nov Dec Mar May Jul Oct-08 Nov Mar Mar Aug-09 Jul Nov Jan Mar Jun-10 Jul Nov-10 Nov-10 Apr Mar % EU27 CRUDE STEEL PRODUCTION ( YoY % )* 100% USA CRUDE STEEL PRODUCTION ( YoY % )* 50% 80% 60% 25% 40% 0% 20% 0% -25% -20% -40% -50% -60% 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% CIS CRUDE STEEL PRODUCTION ( YoY % ) * HRC PRICES ( USD/TON )** EU NORTH AMERICA CIS BLACK SEA/BALTIC EXPORT

5 Raw material prices are increasing USD/TON 800 CHINA 2ND QUALITY COKE SPOT EXPORT PRICE USD/TON 250 CHINA PORT FINE ORE PRICE CFR USD/TON ERDEMIR GROUP HRC EFFECTIVE PRICE CIS HRC BLACKSEA/BALTIC EXPORT PRICE FOB USD/TON 70 BRAZIL TUBARAO ROTTERDAM FREIGHT AUSTRALIA CAPE LAMBERT ROTTERDAM FREIGHT SOURCE: BLOOMBERG 5 / 26

6 Turkish steel consumption increased by 17% in M YoY PRODUCTION ( 000 TONS ) Long Flat Total CONSUMPTION ( 000 TONS ) M M Long Flat Total Long Flat Total M M Long Flat Total SOURCE: TISPA 6 / 26

7 Turkish Steel Market ( cont d ) IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) , , Long Steel Billet, Bloom Flat Steel Slab IRON AND STEEL PRODUCT IMPORTS ( 000 TONS ) Total M M Long Steel Billet, Bloom Flat Steel Slab Total M M SOURCE: TISPA 7 / 26

8 Automotive production and sales increased by 18% and 31% respectively in M YoY SOURCE: AUTOMOTIVE MANUFACTURERS ASSOCIATION 8 / 26 AUTOMOTIVE PRODUCTION (000 UNITS) AUTOMOTIVE SALES (000 UNITS) % 31% M M M M Domestic Sales Export AUTOMOTIVE CAPACITY UTILIZATION RATIO (%) M M Light Vehicles

9 White goods domestic sales and production increased by 26% and 12% respectively in M YoY SOURCE: WHITE GOODS SUPPLIERS ASSOCIATION 9 / 26 WHITE GOODS DOMESTIC SALES (000 UNITS) WHITE GOODS EXPORTS (000 UNITS) 26% M M M M WHITE GOODS PRODUCTION (000 UNITS) 12% M M

10 After the contraction in 2009, all markets are expanding CHANGES IN SECTOR DEVELOPMENT INDEX (% YoY) 30,0% 25,0% 23,4% 20,0% 19,6% 15,0% 11,7% 10,0% 0,0% 9,5% 8,3% 5,7% 3,1% 6,0% -3,9% -6,2% -0,7% 18,0% 10,5% 9,0% 11,0% 9,0% 8,5% 7,9% -10,0% -8,1% -16,5% -20,0% -16,3% -30,0% -24,0% (e) 2012 (e) Construction White Goods Mechanical Machinery Automotive SOURCE: TURKSTAT and ERDEMİR GROUP ANALYSES 10 / 26

11 Sales prices are going up in 2011 YoY Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 HRC PRICES ( USD/Ton ) Çin 2.Kalite Kok Kömürü Spot İhraç Fiyatı ( USD/TON ) As of April 2011, EU HRC price is 837 USD, China HRC spot price is 757 USD, USA export HRC price is 763 USD. The prices were 661 USD, 694 USD, 515 USD respectively by the end of CIS EXPORT HRC BLACKSEA/BALTIC CHINA SPOT HRC WORLD HRC PRICE TRACKER BILLET PRICES ( USD/Ton ) EU HRC USA IMPORT HR ERDEMIR GROUP As of April 2011, Turkey export price is 635 USD while it was 615 USD in December SOURCE: BLOOMBERG BILLET CHINA EXPORT BILLET EXPORT TURKEY BILLET CIS EXPORT BLACKSEA/BALTIC ERDEMIR GROUP 11 / 26

12 12 / 26 Agenda 2011 Market Overview Q Results

13 13 / 26 ERDEMİR GROUP KEY FIGURES Q Q Liquid Steel Production (000 Tons) Slab Production (1) (000 Tons) Flat Steel Production (2) (000 Tons) Long Steel Production (000 Tons) Flat Steel Shipments (000 Tons) Long Steel Shipments (000 Tons) Net Sales Revenue (M. USD) EBITDA (M. USD) Net Profit For The Year (M. USD) All figures are on IFRS consolidated basis unless stated otherwise. (1) Total slab production of Ereğli and İskenderun Plants. (2) Total flat steel production of Ereğli and İskenderun Plants.

14 Liquid steel production was 1,8 million tons in M 14 / 26 LIQUID STEEL PRODUCTION ( 000 TONS ) Q 1Q

15 Production was 1,7 million tons in M 15 / 26 PRODUCTION VOLUMES ( 000 TONS ) Long Cold Long Cold Long Cold Hot Hot Hot Q 1Q Hot Cold Long Total

16 CRC sales volume increased by 29% in Q YoY 16 / 26 SALES VOLUME ( 000 TONS ) Long Long Cold Cold Hot Hot Long Cold Hot Q 1Q HRC CRC Long Total

17 Net sales revenue increased by 28% in Q YoY 17 / 26 NET SALES REVENUE ( MILLION TL ) Exp Exp Exp Dom. Dom. Dom Q 1Q Domestic Export Total

18 Sales to automotive sector increased in Q 18 / M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 5% 11% 5% 7% 3% 2% 75% 29% 1% 6% 4% 1% 6% 4% 10% 93% 50% 11% 15% 12% 7% 11% Pipe and Profile Industry Secondary Production Packaging Industry Heating Equipment General Manufacturing Steel Service Centers Wholesales Automotive and Components Household Appliances Shipbuilding & Heavy Industry Pipe and Profile Industry Secondary Production Packaging Industry Heating Equipment General Manufacturing Steel Service Centers Wholesales Automotive and Components Household Appliances Shipbuilding & Heavy Industry M LONG STEEL DOMESTIC SALES BREAKDOWN (%) M LONG STEEL DOMESTIC SALES BREAKDOWN (%) 4% 3% 19% 2% 6% 3% 21% 96% 21% 14% 13% 81% 45% 27% 5% 17% Debar Producers Construction High Carbon Qualities Other Profile Producers Commercial Qualities Special Qualities Debar Producers Construction High Carbon Qualities Other Profile Producers Commercial Qualities Special Qualities

19 Flat and long steel sales to EU countries increased in / M FLAT STEEL EXPORTS BREAKDOWN (%) 3% 13% 0,1% M FLAT STEEL EXPORTS BREAKDOWN (%) 2% 7% 20% 25% 7% 58% 84% 13% EU MENA S. America Other EU MENA S. America Asia Other M LONG STEEL EXPORTS BREAKDOWN (%) M LONG STEEL EXPORTS BREAKDOWN (%) 1% 31% 4% 19% 69% 99% EU MENA EU MENA

20 In M, Erdemir Group average flat and long steel prices were 739 USD/ton and 663 USD/ton respectively Jan-08 Jan-08 Feb-08 Feb-08 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 / 26 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-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 USD/TON Erdemir Group Flat Sales Price Erdemir Group Flat Cost of Sales USD/TON Erdemir Group Billet Sales Price Erdemir Group Billet Cost of Sales Flat steel prices increased by 16% on average in M YoY. Long steel prices increased by 34% on average in M YoY.

21 Net profit increased by 62% in Q YoY 21 / 26 EBITDA ( MILLION TL ) ,2% 21,7% ,3% ,4% 382 7,3% ,0% 40,0% 32,0% 24,0% 16,0% 11,4% 8,0% 0,0% -8,0% Q 1Q EBITDA EBITDA Margin NET PROFIT/(LOSS) ( MILLION TL ) ,8% 7,2% ,1% ,5% 160-3,2% Q 1Q Net Profit/(Loss) Net Profit/(Loss) Margin 211 3,1% 18,0% 12,0% 6,0% 0,0% -6,0% -12,0% -18,0% -24,0% -30,0%

22 1,3 billion USD liquid funds at the end of Q 22 / 26 BORROWINGS ( MILLION USD ) BORROWINGS MATURITY PROFILE ( MILLION USD ) ST Portion of LT Debt Short-Term Debt Long-Term Debt Liquid Funds , Q Principal Interest

23 Raw materials made up 66% of the cost of goods sold in M COST OF PRODUCTION BREAKDOWN* - % 5% 4% 1% 5% 5% 6% 6% 7% 6% 6% 6% 8% 12% 12% 13% 66% 67% 66% M Raw Materials Personnel Expenses Energy Consumables Depreciation Other RAW MATERIALS BREAKDOWN- % 8% 9% 9% 13% 12% 10% 8% 2% 10% 39% 42% 31% 33% 35% 40% M Coal Iron Ore Slab Scrap Other * EXCLUDING INVENTORY WRITEDOWNS AND PROVISION RELEASED 23 / 26

24 Flat cost per ton excluding raw materials was realised as 188 USD/ton in Q FLAT PRODUCTS ( USD/TON )* Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q LONG PRODUCTS ( USD/TON )* Fixed Cost Per Ton Variable Cost Per Ton Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Fixed Cost Per Ton Variable Cost Per Ton * Conversion Cost 24 / 26

25 Capital expenditures of 183 million USD is planned for / 26 ( M USD ) After İskenderun Investments Ereğli Investments

26 Number of employees was in 2011 March 26 / 26 NUMBER OF EMPLOYEES March

27 Q&A