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. — Q1 2022 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Apr 27, 2022
Slide 1: Mining – OYAK Metallurgy
MINING OYAK | METALLURGY
Slide 2: 2022 3 Months Investor Presentation
2022 3 Months Investor Presentation 27.04.2022
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: 2022 Market Overview
e 2022 Market Overview MINING OYAK | METALLURGY
Slide 5: Crude Steel Production (% yoy)
5 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% Mar.20 Apr.20 May.20 Jun.20 Jul. 20 Aug. 20 Sep. 20 Oct. 20 Nov. 20 Dec. 20 Jan. 21 -5% -20% -15% -10% 0% 5% 10% 15% 20% Feb. 21 Mar.20 Mar.21 Apr.20 Apr.21 May.20 May.21 Jun.20 Jun.21 Jul. 20 Jul. 21 Aug. 20 Aug. 21 Sep. 20 Sep. 21 EU27 Crude Steel Produ
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 0 100 300 400 600 200 500 Apr-20 USD/TON May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 200 300 400 500 600 700 Apr-21 Apr-20 May-21 USD/TON May-20 Jun-21 Coking Coal Prices Jun-20 Jul-21 Jul-20 Aug-21 Aug-20 Sep-21 Sep-20 Oct-21 Oct-20 Nov-21 (HCC Peak Downs Region F
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 41.4 39.0 38.6 36.8 33.7 13.1 13.4 14.6 13.9 13.5 6.8 6.5 2.4 2.5 25.9 25.2 22.9 26.8 20.2 4.4 4.0 2017 2018 2019 2020 2021 2M 2021 2M 2022 Consumption (mn tons) 35.9 33.4 30.6 29.5 17.8 26.0 14.8 17.4 15.7 6.0 5.9 15.2 3.1 3.4 18.1 15.8 16
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 19.9 17.8 17.6 16.6 1.1 +4.0% 14.4 1.0 1.3 0.7 2.6 6.7 2.5 0.8 6.1 5.8 5.8 0.2 0.1 4.3 0.6 0.8 10.7 10.5 10.1 12.1 9.3 1.7 1.7 2017 2018 2019 2020 2021 2M 2021 2M 2022 Imports (mn tons) 15.3 15.4 13.6 4.8 12.0 12.5 4.6 +16.7% 4.8 4.0 2.8 3.4 2.4 0.9
Slide 9: 2022 3M Results
2022 3M Results @ MINING OYAK | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2020 2021 3M 2021 3M 2022 Change (3M) Liquid Steel Production (000 tons) 8,709 9,203 2,352 2,033 -13.6% Flat Steel Production* (000 tons) 7,266 7,515 1,813 1,807 -0.3% Long Steel Production (000 tons) 992 857 208 275 32.2% Flat Steel Shipme
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,322 8,787 8,709 9,203 2,352 2,254 2,033 2018 2019 2020 2021 Q1 2021 Q4 2021 Q1 2022 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 97% 97% 94% 91% 89% 83% 2017 2018 2019 2020 2021 Q1 2022 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Production increased by 3.0% YoY in Q1 2022. 8,723 8,283 8,258 8,372 980 1,026 992 857 1,701 1,637 1,775 1,907 +3.0% 2,021 2,113 2,082 208 297 275 6,042 5,620 5,608 5,491 466 503 461 1,347 1,313 1,346 2018 2019 2020 2021 Q1 2021 Q4 2021 Q1 2022 Hot Cold Long Slab production for
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) 8,401 8,307 8,495 8,246 919 1,057 1,006 846 1,750 1,696 1,952 1,945 2,011 2,148 1,981 205 295 258 5,732 5,554 5,537 5,455 499 547 481 1,307 1,306 1,242 2018 2019 2020 2021 Q1 2021 Q4 2021 Q1 2022 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) Net sales revenue increased by 47.9% YoY in Q1 2022. 7,667 1,710 5,598 1,163 4,844 4,575 1,030 786 +47.9% 2,343 5,957 2,101 639 363 4,435 1,421 3,814 3,789 175 1,704 1,738 1,246 2018 2019 2020 2021 Q1 2021 Q4 2021 Q1 2022 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 15% 13% (215) (209) 45% Pipe&Profile and Rolling 20% 1,431 kton (641) Distribution Chains (321) 1,605 kton 50% 23% (802) (329) 3M 2022 General Manufacturing Industry 3M 2021 Automotive 17% 17% (273) (246) Long Steel Domestic Sales
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 19.3% 1,723 16.5% 1,631 1,592 1,402 23.4% 16.5% 502 10.6% 326 213 2018 2019 2020 2021 Q1 2021 Q4 2021 Q1 2022 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 30.7% 39.4% 20.1% 21.6% 39.7% 37.0% 33.0% 3,021 1,720 931 526 693 974 989 2018 2019 2020 2021 Q1 2021 Q4 2021 Q1 2022 Net Profit* (USD mn) Net Profit Margin (%) 20.7% 22.8% 12.1% 10.3% 25.0% 17.5% 19.3% 1,745 409 405 1,160 355 585 472 2018 2019 2
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) (55) (211) 0,1 (2) (6) (229) Corp.Tax 18 Defr.Tax (15) 693 638 405 EBITDA Depreciation Interest Inc. Operating Investing Finance Tax Inc./(Exp.) Non-Controlling NET PROFIT (3M 2022) (Exp.) in Other Income Activities Inc./(Exp.) Interests (3M 2022) Operating Inc. Inc./(Exp.
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 693 (66) 40 (321) (146) 200 (1,025) (136) 303 (658) EBITDA Changes Interest Taxes Paid Net Cash used Free Cash Dividend Paid Credit Usage/ Other Change 3M 2022 in Working Inc./(Exp.) in Investing Flow (Payment) Net in Cash Capital Net Activities 3M 2022 20
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 413 418 336 335 250 223 219 197 172 144 139 145 124 117 95 103 67 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 Q2 2021 Q3 2021 Q4 2021 Q1 2022 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2021 31.03.2022 Change Cash Equivalents and Financial Investments 1,741 1,106 -36% Working Capital 2,508 2,574 3% Tangible and Intangible Assets 4,154 4,174 0.5% Financial Liabilities (1,249) (1,537) 23% Provisions and Other (100) 51 - Goodwil
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 1,012 829 930 723 897 510 499 499 432 362 266 325 351 (482) (528) (518) (675) (984) 2017 2018 2019* 2020* 2021* Q1 2022* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Cash (USD mn)
Net Cash (USD mn) 200 518 (1,025) (125) (432) Net Cash Free Cash Flow Dividend Paid Other Net Cash Dec. 2021 Mar. 2022 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,079 823 29 200 332 594 41 206 7 128 291 4 199 53 53 3 2 124 50 51 Mar. 2022 Apr.-Dec. 2023 2024 2025 2026 2027 and after Cash 2022 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 7 7 6 5 4 5 5 5 8 6 6 5 7 8 6 4 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 75 74 78 79 Other 2019 2020 2021 3M 2022 Raw Materials Breakdown (%) 20 20 19 21 11 11 11 11 Iron Ore&Pellet 34 28 23 Coal 35 Scrap Other 35 41 4
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 434 306 242 251 208 216 392 201 162 162 162 159 285 113 132 216 82 165 107 110 85 83 80 88 84 75 55 52 43 35 42 21 10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3M 2022 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures are
Slide 28: Number of Employees
Number of Employees 12,788 12,714 11,975 11,607 11,538 11,428 2017 2018 2019 2020 2021 Mar. 2022 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2022- 01.01.2022- Note 31.03.2022 31.03.2022 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 13.9020 Operating Profit 638,037 8,869,994 Depreciation and Amortisation Expenses 55,054 765,343 Cost of Sales 13 50,339 699,785 Marketing Expenses 14 2,312
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. — Q1 2022 Earnings Presentation on 6ix