Emsteel Building Materials Pjsc · ADX:EMSTEEL
Emsteel Building Materials Pjsc — Investor Presentation (August 2025)
45 slides from Emsteel Building Materials Pjsc's investor presentation, August 2025
Slide 1: Investor Presentation August 2025
Investor Presentation August 2025
Slide 2: Legal Disclaimer
Legal Disclaimer These materials have been prepared by EMSTEEL Building Materials PJSC (“EMSTEEL” or the “Company”). The Company relies on information obtained from sources believed to be reliable. No representation, warranty or undertaking, stated or implied, is given as to the accuracy of the info
Slide 3: Table of Contents
TABLE OF CONTENTS Business Overview 4 Key ESG Credentials 11 Market Context 20 Financial and Operational Highlights 25 Growth Strategy 30 Board and Executive Committee 34 Appendix 37 EMSTEEL GROUP
Slide 4: Business Overview
Business Overview Public 4
Slide 5: Quick facts about the Group
Quick facts about the Group Key Finished Steel Products Located in UAE Steel Steel assets - Abu Dhabi production Cement plant - Al Ain capacity: 3.5 mtpa DRI + EAF Technology Revenue split FY24 10% Revenue of AED 8.3 bn Rebar Wire rod 90% EBITDA of AED 0.9 bn Steel Cement Ownership structure and ADX
Slide 6: Merger Recap: Key Milestones
Merger Recap: Key Milestones • Arkan listed on ADX • ACF** construction starts Arkan Dry Mortar August 9 April 27 Arkaninception ACF Operation Starts Arkan General Assembly approves Adopting ‘Emirates Steel Arkan’ as interim brand and operation starts merger trading ticker change to EMSTEEL 2006 200
Slide 7: Our Product Lines
Our Product Lines A leading producer of high- A prominent wire rod producer in The largest producer of heavy and The only producer of Rebar in Coils provides quality rebar with a the GCC with a production capacity jumbo sections in the GCC with a hot-rolled sheet piles in the greater efficiencies an
Slide 8: EMSTEEL use of DRI technology
EMSTEEL use of DRI technology Different steel production routes and relative CO2 Scope 1 emission intensity (without EAF ) HOT BRIQUETTED IRON (HBI) -> -> -> MATERIAL HANDLING DIRECT REDUCTION PLANT (DRP) JETTY AREA IRON PELLETS DIRECT REDUCTION PROCESS Unloading of iron pellets stocked in yards to
Slide 9: Geographic Footprint
Geographic Footprint The Group contributes 10% of Abu Dhabi’s non-oil manufacturing United Arab Emirates output and exports steel products to • Abu Dhabi – Steel Division more than 70 countries. • Al Ain – Cement Division UAE steel market share, FY24 : 60% of rebar and wire rod. 70% of heavy section
Slide 10: Some of the projects we are proud of
Some of the projects we are proud of Burj Khalifa Sheikh Zayed Bridge Dubai Metro Khalifa Port Suez Canal Fulham Football Ground Louvre Abu Dhabi Yas Island Emirates Palace Barakah Nuclear Power Plant AD International Airport Guggenheim Museum EMSTEEL GROUP 10
Slide 11: Key ESG Credentials
Key ESG Credentials 11
Slide 12: Sustainability Management (1/2)
Sustainability Management (1/2) Materiality Assessment EMSTEEL’s ESG Commitments Sustainability Governance Model ESG Board Committee Environmental Social Governance ESG Steering Committee Group ESG & Sustainability Function GHG Emissions Health and Safety Business Integrity and Ethics ESG Sustainabi
Slide 13: Sustainability Management (2/2)
Sustainability Management (2/2) ESG Ratings Sustainability Rating 2023 Score 2024 Score 2025 / Latest Score ESG Rating N/A N/A AA ▲ ESG Risk Rating 32.3 ▼ 29.1 ▼ 24.2 ▼ (lower score – less risk) Climate B- ▲ B▲ B Water N/A B- ▲ B- Responsible Pass Very Good ▲ Very Good Sourcing Sustainability Manage
Slide 14: First Steelmaker Worldwide to Capture its CO2 Emissions
First Steelmaker Worldwide to Capture its CO2 Emissions CO2 Al Reyadah CCUS Molten steel EMSTEEL is the world’s first steel company to capture its CO2 emissions. Partnership with ADNOC allows us to accumulate up to 800 kt of CO2/year as part of Carbon Capture Utilization and Storage (CCUS). This way
Slide 15: Actively implementing an industry-leading sustainability program
… Actively implementing an industry-leading sustainability program Group Emissions 0.93 0.91 0.86 0.78 0.72 0.69 0.67 0.65 0.66 0.68 0.64 0.68 2,588 1,996 2,128 2,362 2,230 1,674 1 3,203 2,535 2,553 2,605 2,205 2,057 2019 2020 2021 2022 2023 2024 Emirates Cement - Scope 1 and 2 Ktonne Co2e Emirates
Slide 16: Well positioned for CO2-conscious market
… and well positioned for CO2-conscious market On the demand side, there is growing momentum in CO2-related EMSTEEL is operating state-of-art, low-carbon-footprint production initiatives led by steel buyer coalitions, such as SteelZero in EU. facilities based on direct-reduced iron (DRI) • SteelZero
Slide 17: ESG in Practice: Case Study of projects launched in 2025
ESG in Practice: Case Study of projects launched in 2025 Solar PV Rooftop Project 1st of-a-kind MENA region Green Hydrogen to Green Steel Pilot facility In partnership with Yellow Door Energy, EMSTEEL will develop the largest industrial In 2024 EMSTEEL together with Masdar have successfully launched
Slide 18: In 2025 EMSTEEL launched Green Finance Framework
In 2025 EMSTEEL launched Green Finance Framework Framework is based on: 11. EMSTEEL website Use of Proceeds 2 Project Selection and Evaluation Assets, CapEx, and/or OpEx associated with: A dedicated “Green Finance Committee” in place, formed by members of finance, investor relations, legal sustainab
Slide 19: Moody's Second Party Opinion on the Framework
Moody’s Ratings provided a Second Party Opinion (SPO), awarding the Framework a Sustainability Quality Score of SQS2 (Very Good) Alignment with Green Bond Principles and Green Loan Principles: Contribution to Sustainability Manufacture of Steel Process for Project Evaluation “The decarbonization of
Slide 20: Market Context
Market Context 20
Slide 21: Long-term factors influencing steel demand
Long-term factors influencing steel demand Major trends in the global steel industry UAE Growth Strategy Geopolitics The UAE steel and cement demand is Increased trade barriers supported by nation-wide strategies: Global steel overcapacity • “We, the UAE 2031” Vision • Double the country’s gross dom
Slide 22: Global market conditions impacting marginality of steel producers
Global market conditions impacting marginality of steel producers Global Steel Demand in 2024 has decreased Global Iron Ore prices in Q2’25 were shaped by seasonal steel demand slowdown in China, relatively high steel inventories and low margins of steel producers ➔ lower demand for iron ore by ▼-2.
Slide 23: UAE steel market outperforms within GCC
UAE steel market outperforms within GCC supported by strong pipeline of projects GCC Steel Demand in 2024 has increased by ▲+11%, YoY Buildings’ construction projects awards in the UAE have reached USD 50bn in 2024 with UAE leading the growth at ▲+20%, YoY Projects value, USD bn 17 High Rise (15+) M
Slide 24: UAE Energy Support Program (ESP)
UAE Energy Support Program (“ESP”) According to World Steel Association energy (incl. electricity) constitutes a significant portion of the cost of steel production, from 20% to 40%. In this context it’s important that Abu Dhabi Government incentivizes manufacturing entities, that suffice certain cr
Slide 25: Financial and Operational Highlights
Financial and Operational Highlights 25
Slide 26: Overview of H1 2025 results
Overview of H1 2025 results Revenue Despite a 4% YoY decline in average steel prices and a strategic shift towards prioritising sales of finished products AED 4.3bn and phasing out sales of semi-finished products in H1 2025 - which accounted for 9% of the steel division’s revenue in H1 2024 – EMSTEE
Slide 27: EMSTEEL strong operational performance in H1'25
EMSTEEL strong operational performance in H1’25 In Q1’24, EMSTEEL sold c. 100 kt of semi-finished products (billets). In H1’25 EMSTEEL increased sales of finished steel products by In H1’25, strong UAE demand and optimized capacity utilization enabled ▲+24%, YoY, supported by continued momentum in f
Slide 28: Resilient financial results supported by improved capacity utilization
Resilient financial results supported by improved capacity utilization Despite decrease of average steel prices (▼-4% YoY) and a strategic shift In H1’25 EBITDA reached AED 540 million, up ▲+6% YoY. towards prioritising sales of finished products and phasing out sales of EBITDA margin of 12.6%. Marg
Slide 29: Resilient FCF generation setting up foundation for future Growth
Resilient FCF generation setting up foundation for future Growth EMSTEEL has consistently generated healthy FCF through cycles, Since the merger in October 2021, EMSTEEL has steadily improved its despite volatility in the global steel industry leverage position clearing the road for Growth Strategy
Slide 30: Growth Strategy
Growth Strategy 30
Slide 31: EMSTEEL's Strategy to succeed in an evolving market
EMSTEEL’s Strategy to succeed in an evolving market Vision Strategy Pillars To be the region's steel and building materials Maximize Current Diversify Product Integrated Iron Ore champion Business Value Portfolio Value Chain To deliver value to our shareholders To invest in innovation enhancing cust
Slide 32: Maximize Current Business Value and Diversify Product Portfolio
Maximize Current Business Value and Diversify Product Portfolio Asset Enhancement Programme Phase 1 2025 - 2027 OVERVIEW • Completion scheduled for: Q2 2026 • Upgrading existing rolling mills ▪ Total CapEx: AED 625 million • Enabling production of high-strength rebars ▪ Context: Aligns with • Introd
Slide 33: Integrated Iron ore Value Chain
Integrated Iron ore Value Chain EMSTEEL has partnered with ITOCHU and JFE Steel to carry out feasibility studies to consider the construction of a ferrous raw material production facility in Abu Dhabi. Subsidiary of JFE Holdings, TYO : 8001 Inc. – TYO: 5411 One of the largest Japanese corporations L
Slide 34: Board and Executive Committee
Board and Executive Committee 34
Slide 35: Board of Directors
Board of Directors Hamad Abdulla Ahmed Ali Mohamed Eng. Saeed Ghumran Abdulaziz Abdulla Ismail Nabeel Qadir Fatima Abdulla Farah Abdulla Mohamed AlShorafa Ali Alshamsi Al Remeithi Mohamed Al Hajri Mohamed Sharif Mohamed Ali Al Hammadi Abdulla Al Fahim Al Mazrui CHAIRMAN VICE CHAIRMAN BOARD MEMBER BO
Slide 36: Executive Committee
Executive Committee Eng. Saeed Ghumran Mark Tonkens Hugo Losada Eng. Hassan Salim Vladimir Arshinov Al Remeithi Shashaa GROUP CEO GROUP CFO CEO, EMIRATES CEMENT GROUP CHIEF GROUP CHIEF PROJECT OFFICER TECHNOLOGY OFFICER Al Remeithi has over 21 Tonkens has over 30 years’ With over 21 years of Shashaa
Slide 37: Appendix
Appendix 37
Slide 38: Overview of FY 2024 results
Overview of FY 2024 results Revenue This decrease in Revenue is due to various factors, including fluctuations in global steel prices, increased AED 8.3bn competition, and changing demand trends driven by economic uncertainties in key markets. -6% YoY EBITDA EMSTEEL’s FY24 profitability was supporte
Slide 39: FY 2024 Operational & Financial results
FY 2024 Operational & Financial results Steel Cement & Clinker Financial Results Production, kt Production, kt Revenue, AED bn EBITDA (AED mn) & EBITDA Margin 3,254 3,244 3,211 3,237 2,964 2,711 2,835 2,695 2,245 9.5 8.9 1.3 8.3 1.2 1,568 1,662 1,571 0.9 12.6% 14.2% 10.9% 2022 2023 2024 2022 2023 20
Slide 40: H1'25 FCF affected by one-off Inventories' level normalisation
H1’25 FCF affected by one-off Inventories’ level normalisation In H1’25 EMSTEEL has normalised Inventories’ level, which had one-off In H1’25 EMSTEEL has delivered AED 74m of FCF, affected by one-off effect on FCF increase of Net Working Capital by AED 343m Revenue, Inventories, AED m AED m Recovery
Slide 41: Consolidated statement of financial position
Consolidated statement of financial position Assets, AED mn 1H 2025 2024 2023 Equity and Liabilities 1H 2025 2024 2023 Non-current assets Net equity 8,908 8,720 8,332 PPE 6,254 6,416 6,564 Non-current liabilities Goodwill - - - Lease liabilities 322 321 333 Right-of-use assets 214 214 229 Provision
Slide 42: Consolidated statement of profit or loss
Consolidated statement of profit or loss AED mn 1H 2025 1H 2024 2024 2023 Revenue 4,300 3,957 8,337 8,899 Cost of sales (3,787) (3,517) (7,578) (7,802) Gross profit 514 440 760 1,097 Selling and distribution expenses (29) (22) (44) (54) General and administrative expenses (247) (200) (417) (390) Oth
Slide 43: Consolidated statement of cash flows
Consolidated statement of cash flows AED mn 1H 2025 1H 2024 2024 2023 Cash flows from operating activities Operating cash flows before movements in working capital 569 565 867 1,372 Net movements in working capital (344) (213) (174) 84 Cash generated from operations 225 352 693 1,456 Employees' end
Slide 44: Waste and Circular Economy
Waste and Circular Economy Waste Management and Circular Economy Sustainable Material Use and Recycling Waste Handling & Compliance Sustainable Steel Production • Waste is segregated, classified, and documented • EMSTEEL integrates in-house and purchased scrap into steel • Managed by authorised prov
Slide 45: Thank You
THANK YOU
EMSTEEL Building Materials PJSC — Investor Presentation (August 2025) on 6ix