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) — FY2019 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 11, 2020
Slide 1: Mining Metallurgy
MINING METALLURGY Gi @ak ))
Slide 2: 2019 12 Months Investor Presentation
2019 12 Months Investor Presentation 11.02.2020
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: 2019 Market Overview
ERDEMIR 2019 Market Overview
Slide 5: Crude Steel Production (% yoy)
5 10.0% -5.0% 0.0% 5.0% -10.0% Dec-17 Jan-18 Feb-18 Mar-16 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 10.0% -5.0% -10.0% 0.0% 5.0% Nov-18 Dec-17 Dec-18 Jan-18 Jan-19 Feb-18 Feb-19 Mar-16 Mar-19 Apr-18 Apr-19 May-18 May-19 Jun-18 Jun-19 EU28 Crude Steel Production (% yoy) Crude Steel Production
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 100 150 200 250 300 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 150 200 250 300 350 400 Jan-18 Feb-19 Feb-18 Mar-19 Coking Coal Prices Mar-18 Apr-19 Apr-18 May-19 May-18 Jun-19 Jun-18 Jul-19 Jul-18 Aug-19 (HCC Peak Downs Region FOB Australia) Aug-18 S
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) -12.7% 36.9 36.9 39.0 38.6 36.1 33.7 10.4 10.4 10.9 13.1 13.9 13.5 25.7 26.5 26.0 25.9 24.7 20.2 2014 2015 2016 2017 2018 2019 Consumption (mn tons) 34.4 34.1 35.9 -15.3% 30.8 30.7 17.8 26.0 16.5 16.5 14.6 15.3 15.2 16.2 17.9 17.6 18.1 15.4
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 1.0 1.3 14.1 13.4 14.4 13.1 0.6 0.3 0.8 6.1 5.8 2.5 0.3 2.6 3.1 4.3 11.0 10.2 10.0 9.3 10.7 10.5 2014 2015 2016 2017 2018 2019 Imports (mn tons) 18.1 16.5 -11.8% 15.3 13.0 7.9 13.6 6.2 4.8 12.0 4.8 4.8 3.4 8.6 8.7 9.0 7.5 6.7 7.5 1.5 1.6 1.
Slide 9: 2019 12M Results
ERDEMIR 2019 12M Results
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2017 2018 2019 Growth (YoY) Liquid Steel Production (000 tons) 9,392 9,322 8,787 -5.7% Flat Steel Production* (000 tons) 7,713 7,743 7,257 -6.3% Long Steel Production (000 tons) 1,328 980 1,026 4.7% Flat Steel Shipments (000 tons) 7,594 7,4
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,373 9,392 9,322 8,787 +6.6% 2,372 2,067 2,204 2016 2017 2018 2019 Q4 2018 Q3 2019 Q4 2019 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 96% 93% 91% 78% 76% 72% 70% 69% 2013 2014 2015 2016 2017 2018 2019 Erdemir World* 12 As of August 2018, Worldsteel no longer publishes global capacity utilization ratio for anti-trust reasons. Source: Worldsteel
Slide 13: Production (000 tons)
Production (000 tons) 9,041 8,644 8,723 1,328 8,283 980 1,572 1,026 1,822 1,701 1,781 1,637 2,152 1,999 2,022 296 234 270 5,891 6,042 5,620 398 407 449 5,291 1,458 1,358 1,303 2016 2017 2018 2019 Q4 2018 Q3 2019 Q4 2019 Hot Cold Long Slab production for 3rd parties was included in 13 HRC production.
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) 8,750 8,958 8,401 8,307 1,364 1,587 919 1,057 1,908 1,750 1,696 1,860 2,154 2,056 263 1,929 240 277 5,732 468 453 5,303 5,686 5,554 390 1,423 1,299 1,326 2016 2017 2018 2019 Q4 2018 Q3 2019 Q4 2019 Hot Cold Long 14 Slab sales for 3rd parties were included in HRC sales.
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) 5,598 5,140 1,163 4,844 733 1,030 3,855 517 4,407 4,435 1,373 3,814 351 1,131 1,113 3,338 198 212 1,022 933 901 2016 2017 2018 2019 Q4 2018 Q3 2019 Q4 2019 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 13% 13% (744) (748) 18% Pipe&Profile and Rolling 19% (1,055) 5,746K ton (1,111) 5,953K ton 51% 57% Distribution Chains 12M 2018 (3,058) 12M 2019 (3,257) General Manufacturing Industry 12% Automotive 17% (690) (1,036) Long Steel Dom
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) Total export volume increased by 6.0% YoY in 12M 2019. 20.7% 19.4% 1,723 1,631 13.4% 12.4% 1,199 24.2% 1,086 18.5% 521 17.1% 381 330 2016 2017 2018 2019 Q4 2018 Q3 2019 Q4 2019 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 29.1% 30.7% 23.2% 20.1% 26.0% 19.7% 11.6% 1,496 1,720 974 356 895 222 129 2016 2017 2018 2019 Q4 2018 Q3 2019 Q4 2019 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 13.0% 12.1% 22.5% 12.2% 3.3% 1,030 1,160 308 502 585 138 36 2016 2017 201
Slide 19: EBITDA to Net Profit
EBITDA Net Profit 974 (200) 772 96 (2) 14 (266) (31) 585 EBITDA Depreciation Interest Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 12M 2019 Inc./(Exp.) Income Activities Inc./(Exp.) Controlling 12M 2019 on Other Inc./(Exp.) Interests Operating Inc./(Exp.) 19
Slide 20: EBITDA to Net Cash
EBITDA Net Cash 12 (312) 490 974 (277) 882 (5) (794) (46) 130 88 EBITDA Changes Interest Taxes Paid Net Cash Cash Flow Free Cash Dividend Credit Usage/ Other Change 12M 2019 in Working Inc./(Exp.) used in from Flow Paid (Payment) in Cash Capital Net Investing Financial Net 12M 2019 Activities Invest
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 172 138 141 143 139 145 124 85 119 67 51 43 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2018 31.12.2019 Growth (YoY) Cash Equivalents and Financial Investments 1,646 1,800 9% Working Capital 2,219 1,729 -22% Tangible and Intangible Assets 3,533 3,581 1% Financial Liabilities (1,163) (1,296) 11% Provisions and Other (674) (554) -1
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 891 368 654 829 930 897 529 581 655 460 362 325 14 266 (190) (482) (528) (675) 2014 2015 2016 2017 2018 2019* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Debt (USD mn)
Net Debt (USD mn) 882 (794) 482 (42) 528 Net Cash Free Cash Flow Dividend Paid Other Net Cash Dec. 2018 Dec. 2019 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,783 967 43 598 161 125 326 19 5 26 10 9 142 120 1 1 1 25 9 8 2019 Cash 2020 2021 2022 2023 2024 2025 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 7 6 5 7 7 5 5 5 5 5 8 6 11 9 7 Raw Materials 14 Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 73 76 75 64 Other 2016 2017 2018 2019 Raw Materials Breakdown (%) 24 20 22 20 13 12 12 11 Iron Ore&Pellet 27 35 35 34 Coal Scrap Other 36 33 31
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures (USD mn) 264 251 242 208 216 200 201 171 162 162 162 158 159 113 132 216 143 82 165 107 110 140 93 83 80 88 84 57 55 52 43 35 17 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Capital Expenditures Fixed Assets Acquisition 27
Slide 28: Number of Employees
Number of Employees 12,872 12,659 12,277 11,975 11,607 11,428 2014 2015 2016 2017 2018 2019 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2019- 01.01.2019- Note 31.12.2019 31.12.2019 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 5.6695 Operating Profit 772,254 4,378,290 Depreciation and Amortisation Expenses 200,243 1,135,275 Cost of Sales 24 184,032 1,043,369 Marketing Expenses 26
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) — FY2019 Earnings Presentation on 6ix