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) — Q1 2021 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Apr 29, 2021
Slide 1: MINING
MINING OYAK, | METALLURGY
Slide 2: 2021 3 Months Investor Presentation
2021 3 Months Investor Presentation 29.04.2021
Slide 3: 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
Slide 4: 2021 Market Overview
e 2021 Market Overview MINING OYAK, | METALLURGY
Slide 5: Crude Steel Production (% yoy)
5 20.0% 10.0% 15.0% -5.0% -10.0% 0.0% 5.0% -35.0% -30.0% -25.0% -20.0% -15.0% Mar.19 Apr.19 May.19 Jun.19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 10.0% -5.0% -15.0% -10.0% 0.0% 5.0% Feb. 20 Mar.19 Mar.20 Apr.19 Apr.20 May.19 May.20 Jun.19 Jun.20 Jul. 19 Jul. 20 Aug. 19 Aug. 20 Sep. 1
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 150 200 250 Apr-19 USD/TON May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 150 200 250 300 350 400 450 500 Apr-20 Apr-19 May-20 USD/TON May-19 Jun-20 Coking Coal Prices Jun-19 Jul-20 Jul-19 Aug-20 Aug-19 Sep-20 Sep-19 Oct-20 Oct-19 Nov-20 (HCC Peak Downs Region
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) +9.2% 36.9 39.0 38.6 36.8 33.7 10.9 13.1 13.9 13.9 +9.8% 13.5 6.1 6.7 2.4 2.4 26.0 25.9 24.7 22.9 20.2 3.7 4.3 2016 2017 2018 2019 2020 2M 2020 2M 2021 Consumption (mn tons) 34.1 35.9 +13.1% 30.7 29.4 26.0 +15.7% 16.5 17.8 15.3 5.9 15.7 5.1
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 16.6 1.0 1.3 13.4 14.4 0.7 0.3 0.8 6.1 5.8 2.8 5.8 2.5 3.1 4.3 0.2 0.2 0.9 0.6 10.0 9.3 10.7 10.5 10.1 1.7 1.7 2016 2017 2018 2019 2020 2M 2020 2M 2021 Imports (mn tons) 16.5 15.3 13.6 6.2 4.8 12.0 12.5 4.8 4.0 2.4 2.4 3.4 0.8 0.9 8.7 9.0 7
Slide 9: 2021 3M Results
2021 3M Results @ MINING OYAK, | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights Growth 2019 2020 3M 2020 3M 2021 (YoY) Liquid Steel Production (000 tons) 8,787 8,709 2,284 2,352 3.0% Flat Steel Production* (000 tons) 7,257 7,266 1,714 1,813 5.8% Long Steel Production (000 tons) 1,026 992 264 208 -21.2% Flat Steel Shipm
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) Liquid steel production increased by 12.6% QoQ in Q1 2021. 9,392 9,322 8,787 +12.6% 8,709 2,284 2,089 2,352 2017 2018 2019 2020 Q1 2020 Q4 2020 Q1 2021 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 97% 91% 89% 2015 2016 2017 2018 2019 2020 1Q 2021 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Production increased by 2.2% YoY in Q1 2021. 9,041 8,723 1,328 8,283 8,258 980 1,026 992 1,822 1,701 1,637 1,775 +2.2% 1,978 2,062 2,021 264 219 208 5,891 6,042 5,620 457 5,491 404 466 1,310 1,386 1,347 2017 2018 2019 2020 Q1 2020 Q4 2020 Q1 2021 Hot Cold Long Slab production f
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales volume increased by 4.6% YoY in Q1 2021. 8,958 8,401 8,307 8,495 1,364 919 1,057 1,006 1,908 1,750 1,696 1,952 +4.6% 2,326 1,923 232 2,011 267 536 205 5,686 5,732 5,554 5,537 422 499 1,558 1,307 1,234 2017 2018 2019 2020 Q1 2020 Q4 2020 Q1 2021 Hot Cold Long 14 Sl
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 35.7% YoY in Q1 2021. 5,598 5,140 1,163 4,844 733 4,575 1,030 786 +35.7% 4,407 4,435 1,310 1,421 3,814 3,789 1,047 187 175 133 1,123 1,246 914 2017 2018 2019 2020 Q1 2020 Q4 2020 Q1 2021 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 13% 12% (209) (183) Pipe&Profile and Rolling 19% 20% (321) 1,605K ton 50% Distribution Chains (275) 1,465K ton 3M 2021 (802) 3M 2020 57% General Manufacturing Industry (827) Automotive 12% 17% (180) (273) Long Steel Domestic Sales
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 16.5% 1,631 13.4% 1,402 1,199 13.6% 10.9% 317 10.6% 209 213 2017 2018 2019 2020 Q1 2020 Q4 2020 Q1 2021 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 29.1% 30.7% 37.0% 20.1% 21.6% 26.5% 16.7% 1,496 1,720 974 989 526 347 175 2017 2018 2019 2020 Q1 2020 Q4 2020 Q1 2021 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 19.6% 25.0% 12.1% 10.3% 4.7% 1,030 1,160 355 585 49 257 472 2017 2018 201
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) 526 (55) 471 65 0 (1) (167) (13) 355 EBITDA Depreciation Share Transfer Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 3M 2021 Agreement Income Activities Inc./(Exp.) Controlling 3M 2021 Receivable Inc./(Exp.) Interests Income 19
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 526 (139) 24 (75) (87) 253 4 (827) 77 (297) (64) (858) EBITDA Changes Interest Taxes Paid Net Cash Cash Flow Free Cash Dividend Credit Affiliate Other Change 3M 2021 in Working Inc./(Exp.) used in from Flow Paid Usage/ Acquisition in Cash Capital Net Investing Financial (Pay
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 250 223 219 197 174 179 172 144 141 143 139 145 124 117 95 103 67 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2020 31.03.2021 Growth (YoY) Cash Equivalents and Financial Investments 1,850 984 -47% Working Capital 1,424 1,563 10% Tangible and Intangible Assets 3,657 3,863 6% Financial Liabilities (899) (960) 7% Provisions and Other 58 75 29% Goodwill -
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 654 829 897 930 510 610 460 362 325 351 315 266 (190) (58) (482) (528) (675) (984) 2016 2017 2018 2019* 2020* 1Q 2021* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Debt (USD mn)
Net Debt (USD mn) 253 984 (827) (297) (55) 58 Net Cash Free Cash Flow Dividend Paid Affiliate Other Net Cash Dec. 2020 Acquisition Mar. 2021 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 983 527 15 460 229 5 224 47 30 28 28 52 45 2 29 1 1 1 27 27 Mar. 2021 Apr.-Dec. 2022 2023 2024 2025 2026 Cash 2021 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 5 7 7 7 5 5 5 5 5 6 6 6 9 7 8 8 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 76 75 74 74 Other 2018 2019 2020 3M 2021 Raw Materials Breakdown (%) 22 20 20 16 12 11 11 12 Iron Ore&Pellet 28 24 35 34 Coal Scrap 35 41 48 Othe
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 306 264 242 251 208 216 201 171 162 162 162 159 285 113 132 216 82 165 107 110 81 93 83 80 88 84 74 55 52 43 35 21 7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3M 2021 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures are
Slide 28: Number of Employees
Number of Employees 12,277 11,975 12,273 11,607 11,428 11,538 2016 2017 2018 2019 2020 Mar. 2021 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2021- 01.01.2021- Note 31.03.2021 31.03.2021 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 7.3649 Operating Profit 471,032 3,469,104 Depreciation and Amortisation Expenses 54,923 404,492 Cost of Sales 14 50,541 372,220 Marketing Expenses 15 2,412
Slide 30: Erdemir Investor Relations
Erdemir Investor Relations investorrelations@erdemir.com.tr https://www.erdemir.com.tr/investor-relations/ +90 216 578 80 61 30
Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — Q1 2021 Earnings Presentation on 6ix