Sinan SÖZEN, BORÇELİK ÇELİK SANAYİİ TİCARET A.Ş. New Scenario in Flat Steel

Transcription

1 Sinan SÖZEN, BORÇELİK ÇELİK SANAYİİ TİCARET A.Ş. New Scenario in Flat Steel

2 Forward-Looking Statement Statements in this presentation describing either macro economic and relevant steel industry parameters or the Borçelik Çelik Sanayii Ticaret A.Ş. s ( Company or Borçelik ) objectives, financial and non-financial projections, estimates, expectations along with their underlying assumptions may be in the form of forward looking statements within the meaning of applicable securities laws and regulations. Forwardlooking statements might be identified by the words believe, expect, anticipate, target or similar expressions. Although Company s management believes that the expectations reflected in such forwardlooking statements are reasonable, readers are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of Company. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company s operations include, among others, economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which Company conducts business transactions, changes in Government regulations, tax laws and other incidental factors.

3 Content Turkish Economy Turkish Steel Industry Borçelik Borçelik Differentiation

4 Turkey s Macroeconomic Indicators CAGR Population (million) % GDP($bn) 481,5 691,5 8% GDP growth (%) 8,4 5,5 GDP per capita($) % Inflation rate (%, consumer) 7,7 7,5 US$/YTL (end of period) 1,34 1,55 3% Imports ($bn) % Exports ($bn) % Foreign Direct Investment ($bn) 9 8 Source: CBRT,Treasury, Ministry of Finance, McKinsey

5 Turkey s Macroeconomic Indicators The 17th largest economy in the world and the 7th largest economy in the EU as of 2009 (IMF WEO) Turkey is expected to recover faster from the global economic crisis compared to its emerging market peers, evidenced by 11.7% and 10,3 % growth respectively in Q1 - Q The growth rate in Q was the fastest among the Group of 20 major economies, excluding China, and compares with an average contraction of 0.03% in 14 central and eastern European countries. -4,7 5,5 4,7 5,4 5,2 5,0 5,0 Source:McKinsey F 2011F 2012F 2013F 2014F 2015F

6 Turkish Economy In Summary Near to mid-term future: More stable (economic & political) Continious growth More integrated and sophisticated markets

7 Content Turkish Economy Turkish Steel Industry Borçelik Borçelik Differentiation

8 Turkish Steel Industry ,1 Mt Steel Production Long Products 20,7 Mt Flat Products 4,4 Mt Production 20,7 Production 4,4 Import 0,8 Import 5,6 Export 11,8 Export 1,6 Consumption 9,7 Consumption 8,3 18 Mt Steel Consumption

9 HRC Consumption Kton E 2011 F 2012 F 2013 F 2014 F 2015 F HRC Consumption

10 Estimated HRC Capacity in Turkey Kton HRC / 2015 Erdemir Group Çolakoğlu MMKA Tosçelik Total Growth 21%

11 CR & HDG Consumption Kton E 2011 F 2012 F 2013 F 2014 F 2015 F CR Consumption HDG Consumption

12 Estimated CR Capacity in Turkey - Kton CR / 2015 Borçelik Erdemir Group* Tezcan MMKA Tat Metal Total Growth 28%

13 Estimated HDG Capacity in Turkey - Kton HDG / 2015 Borçelik Erdemir Group* Tezcan MMKA Tat Metal Assan Total Growth 17%

14 Content Turkish Economy Turkish Steel Industry Borçelik Borçelik Differentiation

15 Borçelik

16 Borçelik Vision Being # 1 downstream producer in Turkey

17 Borçelik Industrial Milestones 1990 Foundation of Borçelik as Turkey s first private flat steel producer 1994 Operations started with 350 kton annual CR capacity 2001 Investment decision of 140 MUSD for capacity expansion and CGL 1 Line 2003 Start up of the CGL 1 Line 2004 Start up of RCM 2 Line

18 Borçelik Industrial Milestones 2006 Start up of new pure hydrogen bases furnaces 2006 Start up of induction heated atmosphere controlled furnace system in CGL Kerim Çelik has become a company of Borçelik 2006 Investment decision of 138 MUSD for capacity expansion and CGL 3 Line 2008 Start up of new RCM 3 and CGL 3 lines on October

19 Borçelik Overview Co-management ArcelorMittal and Borusan Holding Located 200 kilometers away from Istanbul and 20 kilometers away from Bursa Logistics advantage Borusan Port m 2 of total area, m 2 of which is indoors

20 Borçelik Overview In the lists of Istanbul Chamber of Industry, displaying the largest 500 companies every year, Borçelik ranks - 31 st in rd in th in 2009 Domestic and export customers,120

21 Borçelik in Figures Sales Volume kton Projection

22 Borçelik in Figures CR + HDG Market Share %

23 Borçelik Galva Sales Automotive 54% White Goods 9% SSC 23% Construction 14%

24 Borçelik Operational Excellence STOP (safety training observation program) Lean 6 Sigma TPM Quality System Effective Use of Man Power&Equipment Effective HR Management VoC Continuous Innovation Spirit Supply Chain Management Effective Use of IT Systems

25 Borçelik Operational Excellence CustomerSatisfaction Survey Results Complaint Ratio (%) TR:M INDEX TURKEY BORÇELİK 2 1,8 1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 0 1,88 1,53 1,4 1,11 0,75 0,7 0,25 0,24 0,24 0,3 0,24 0,31 0,17 0,

26 Borçelik Operational Excellence New Product (#) New Product Designs Target

27 Borçelik Operational Excellence QUALITY SYSTEM The First Company in Turkish Steel Industry to be awarded: ISO in 1998 Environmental Management System OHSAS in 2000 Occupational Health and Safety Management System ISO/TS 16949: 2002 and ISO 9001 in September 2003 ISO in Complaints Management System ISO in 2007 Information Security Management

28 Borçelik Operational Excellence Awards 2001 EFQM Excellence Model - National Quality Award in Enterprises Category 2006 ISO Environment Award Honorable Mention JIPM Excellency Award BUSIAD Environment Award in 2009

29 Content Turkish Economy Turkish Steel Industry Borçelik Borçelik Differentiation

30 Borçelik Differentiation Products Hot Dipped Galvanized Steel Extragal Galvanneal Dual Phase Refosforized Bake Hardening Hot Dipped Galvanized Steel ( mm)

31 Borçelik Differentiation Technology & KnowHow Extragal Licence For production of Automotive-Exposed steel International Experience of Homologation - ( with Support of ArcelorMittalAuto ) SIAS - Automatic surface inspection line & software Ladle management Surface inspection line Laser welding Edge-trimming after galvanizing

32 Borçelik Differentiation Services Strong Corporation with Kerim Çelik Technical Support Innovative Approach Specific Export Markets Supply Chain Management Flexible Order Taking Process Customized Production

33 THANK YOU