Platts European Steel Summit 23 May, 2013 London, UK. Elena Dimitrova

Transcription

1 Platts European Steel Summit 23 May, 2013 London, UK METINVEST`S STRATEGY ON EUROPEAN MARKET Elena Dimitrova

2 1 Agenda Global and European Steel Industry: upper level overview Metinvest s role in the European market Metinvest s initiatives Summary 2

3 1 Global and European Steel Industry: upper level overview Metinvest s role in the European market Metinvest s initiatives Summary 3

4 1 Global & European GDP dynamics Real GDP growth, Y-o-Y % World 1.3 EU F 2014F Source: IMF, Eurofer 4

5 1 Global & European consumption ramping Apparent consumption, mln. t X% - Y-o-Y change Others Europe Total: ,3% Total: ,2% Total: ,9% Total: ,2% -6,9% +0,8% +3,4% f 2014f Source: WSA, April

6 1 European steel consuming segments development SWIP dynamics, % Y-o-Y 6 X% - share in total consumption Construction Tubes % 12% Q `13 2Q `13 3Q `13 4Q `13 1Q `14 2Q `14 3Q `14 4Q `14 Source: Eurofer 6

7 2 Global and European Steel Industry: upper level overview Metinvest s role in the European market Metinvest s initiatives Summary 7

8 2 Vertical integrated company with global presence USA Canada Lithuania Russia UK Belgium Switzerland Italy Germany Ukraine Serbia Bulgaria Tunisia Turkey Lebanon Turkmenistan China UAE Dominican rep. Sales offices Singapore Sales markets Potential markets One of the top steel producers in the world (2012 crude steel output: 12.5 Mt) 25 Steel & mining assets in Ukraine, Europe and the US KEY FACTS Self-sufficient in raw materials Wide products range (flats, longs & sections, pipes, semis, raw materials) Wide sales and distribution network, presence in 100 countries 8

9 2 Metinvest at a glance Trametal 4% Khartsyzsk 3% Promet Steel 2% Spartan 1% By Mills Total, % = 12,5 mln t 1 Ferreira Valsider 5% Zaporozhstal I&SW 16% Ilyich I&SW 30% Yenakiieve I&SW 16% Azovstal I&SW 26% Source: Metinvest 12% OF STEEL - MADE IN EUROPE 9

10 2 Metinvest at a glance By Product Local vs. Export Sales Total Sales, 2012 Total Sales, % = 12,5 mln t 2 100% = 12,5 mln t 2,3 Pipe 4% 24% Pig Iron 17% Semis 18% Flat 32% Export 47% Local 53% Longs 29% Source: Metinvest 1 Sales to third parties 2 Local sales mean sales from the mill to the same regional market 10

11 2 European market is one of our priorities Others 14 % Total Sales, % = 12,5 mln t CIS 17 % MENA 20 % Ukraine 23 % Europe 26 % Source: Metinvest Our European buyers consume 50% of material ex Metinvest assets in Europe... and 50 % - from Ukrainian assets 11

12 2 European market is one of our priorities Sales offices network of 30 sales offices & warehouses Production & sales Sales market 1 rerolling site network of 20 SSC & sales offices 12 production sites 2 rerolling sites 1 rerolling site Metinvest in Europe: 4 production sites in EU-27, 3 mln t capacity Supplying to all European countries 1600 clients 11 sales offices 12

13 2 Metinvest presence at European market by Products by Top Countries Total Sales to Europe 1, % = 3,2 mln t Total Sales to Europe 1, % = 3,2 mln t Semis 16% Others 3% Greece 3% Others 1 16% Longs 12% UK 5% Germany 6% Italy 45% Flats 69% Bulgaria 6% Romania 10% Poland 9% 1 25 European countries Source: Metinvest 13

14 3 Global and European Steel Industry: upper level overview Metinvest s role in the European market Metinvest s initiatives Summary 14

15 3 Metinvest s initiatives Our target: Environment: High level of competition, stagnating demand Pure buyer`s market, especially in commodities segments Increased customer`s demand for pre and post sales service Client`s reluctance to take risk and big stocks To become preferable steel supplier for our key segments, clients To create value of the product together with our clients To enable customers to get maximum effect from cooperation with Metinvest Our initiatives: To enhance the cooperation with end-users To provide wide product range To provide effective logistics, faster/flexible delivery time, smaller/combined lots To develop client service system 15

16 4 Summary Our competitive advantages Raw materials self-sufficiency Stable positions on the market Background for sustainable growth Competitive cost positions Wide range of product Possibility to supply combined lots of products Flexibility to demand changes within production chain Long-term market positioning Client-oriented strategy incl. enhancing of service & logistics Sustainable product strategies Constant improvements in production efficiency High costs of shifting BF production High involvement into vulnerable international trade Risk of MENA to be self-sufficient in steel production Metinvest`s strategy is to become a preferable steel supplier for our clients in Europe and worldwide and to deliver sustainable growth and profitability resilient to business cycles. 16

17 Elena Dimitrova Head of Marketing Department THANK YOU!