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) — H1 2020 Earnings Presentation
32 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Aug 7, 2020
Slide 1: Mining Metallurgy
MINING METALLURGY Gi @ak ))
Slide 2: 2020 6 Months Investor Presentation
2020 6 Months Investor Presentation 07.08.2020
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: 2020 Market Overview
ERDEMIR 2020 Market Overview
Slide 5: Crude Steel Production (% yoy)
5 -30.0% -25.0% -20.0% -5.0% -15.0% -10.0% 0.0% 5.0% Jun.18 Jul. 18 Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan.19 Feb. 19 Mar.19 Apr.19 -5.0% -15.0% -10.0% 0.0% 5.0% May.19 Jun.18 Jun.19 Jul. 18 Jul. 19 Aug. 18 Aug. 19 Sep. 18 Sep. 19 Oct. 18 Oct. 19 Nov. 18 Nov. 19 Dec. 18 Dec. 19 EU28 Crude Steel
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 150 200 250 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 150 200 250 300 350 400 Jul-18 Aug-19 Aug-18 Sep-19 Coking Coal Prices Sep-18 Oct-19 Oct-18 Nov-19 Nov-18 Dec-19 Dec-18 Jan-20 Jan-19 Feb-20 (HCC Peak Downs Region FOB Australia) Feb-19 Ma
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 36.9 36.9 39.0 38.6 33.7 10.4 10.9 13.1 13.9 +2.4% 13.5 16.4 16.8 6.6 6.6 26.5 26.0 25.9 24.7 20.2 9.8 10.2 2015 2016 2017 2018 2019 6M 2019 6M 2020 Consumption (mn tons) 34.4 34.1 35.9 30.7 26.0 +8.9% 16.5 16.5 17.8 15.3 12.3 13.4 15.2 7.0
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 1.0 1.3 13.4 14.4 13.1 0.3 0.8 6.1 5.8 9.1 0.3 7.9 2.6 3.1 4.3 0.9 0.4 3.1 2.8 10.2 10.0 9.3 10.7 10.5 5.1 4.7 2015 2016 2017 2018 2019 6M 2019 6M 2020 Imports (mn tons) 18.1 16.5 15.3 7.9 13.6 +10.9% 6.2 4.8 12.0 4.8 5.5 6.1 3.4 1.4 2.0 8.
Slide 9: 2020 6M Results
ERDEMIR 2020 6M Results
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2018 2019 6M 2019 6M 2020 Growth (YoY) Liquid Steel Production (000 tons) 9,322 8,787 4,516 4,257 -5.7% Flat Steel Production* (000 tons) 7,743 7,257 3,740 3,546 -5.2% Long Steel Production (000 tons) 980 1,026 522 450 -13.8% Flat Steel Shi
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,392 9,322 8,787 4,516 4,257 2,147 2,284 1,973 2017 2018 2019 6M 2019 6M 2020 Q2 2019 Q1 2020 Q2 2020 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 96% 91% 87% 2014 2015 2016 2017 2018 2019 6M 2020 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) 9,041 8,723 1,328 8,283 980 1,026 1,822 1,701 1,637 4,262 3,996 522 450 781 +2.0% 836 2,133 2,018 207 1,978 6,042 264 186 5,891 5,620 377 432 404 2,959 2,710 1,549 1,310 1,400 2017 2018 2019 6M 2019 6M 2020 Q2 2019 Q1 2020 Q2 2020 Hot Cold Long Slab production for 3rd parties w
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) 8,958 8,401 8,307 1,364 919 1,057 1,908 1,750 1,696 4,322 540 3,943 453 +5.0% 853 863 2,100 2,020 204 1,923 186 402 267 5,732 441 5,686 5,554 422 2,929 2,627 1,494 1,234 1,393 2017 2018 2019 6M 2019 6M 2020 Q2 2019 Q1 2020 Q2 2020 Hot Cold Long 14 Slab sales for 3rd parties w
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) 5,598 5,140 1,163 4,844 733 1,030 2,601 620 2,128 414 +3.2% 4,407 4,435 1,267 3,814 267 1,047 1,081 133 281 1,981 1,714 1,000 914 800 2017 2018 2019 6M 2019 6M 2020 Q2 2019 Q1 2020 Q2 2020 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 13% 19% (386) (541) Pipe&Profile and Rolling 18% 10% (526) 2,916K ton (282) 2,803K ton Distribution Chains 6M 2020 57% 6M 2019 57% (1,592) General Manufacturing Industry (1,652) 14% Automotive 12% (388) (352) Long Steel Domestic Sa
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 1,631 13.4% 23.4% 25.3% 1,199 1,012 18.3% 21.2% +145.0% 721 512 445 10.9% 209 2017 2018 2019 6M 2019 6M 2020 Q2 2019 Q1 2020 Q2 2020 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 29.1% 30.7% 20.1% 23.9% 23.6% 17.9% 16.7% 19.0% 1,496 1,720 622 974 299 381 175 205 2017 2018 2019 6M 2019 6M 2020 Q2 2019 Q1 2020 Q2 2020 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 17.7% 12.1% 15.8% 4.7% 7.8% 6.3% 1,030 1,160 411 225
Slide 19: EBITDA to Net Profit
EBITDA Net Profit 381 (99) 302 20 (4) (5) (150) (9) 134 EBITDA Depreciation Share Transfer Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 6M 2020 Agreement Income Activities Inc./(Exp.) Controlling 6M 2020 Receivable Inc./(Exp.) Interests Income 19
Slide 20: EBITDA to Net Cash
EBITDA Net Cash (18) (96) 182 381 (172) (39) 333 105 (10) 267 EBITDA Changes Interest Taxes Paid Net Cash used Cash Flow Free Cash Credit Usage/ Other Change 6M 2020 in Working Inc./(Exp.) in Investing from Financial Flow (Payment) Net in Cash Capital Net Activities Investments 6M 2020 20
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 172 138 141 143 139 145 124 95 103 85 119 67 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 Q1 2020 Q2 2020 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2019 30.06.2020 Growth (YoY) Cash Equivalents and Financial Investments 1,800 2,143 19% Working Capital 1,729 1,547 -11% Tangible and Intangible Assets 3,581 3,576 0% Financial Liabilities (1,296) (1,385) 7% Provisions and Other (554) (511) -8
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 368 654 829 930 1,042 897 655 460 362 325 305 14 266 (190) (482) (528) (675) (769) 2015 2016 2017 2018 2019* 6M 2020* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Debt (USD mn)
Net Debt (USD mn) (28) 767 267 528 Net Cash Free Cash Flow Other Net Cash Dec. 2019 Jun. 2020 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 2,117 755 17 696 350 28 211 322 4 29 13 11 207 1 1 1 42 28 12 10 Jun. 2020 Jul. - Dec. 2021 2022 2023 2024 2025 Cash 2020 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 6 5 7 7 5 5 5 5 5 5 6 6 11 9 7 8 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 73 76 75 74 Other 2017 2018 2019 6M 2020 Raw Materials Breakdown (%) 20 22 20 19 12 12 11 11 Iron Ore&Pellet 35 35 34 30 Coal Scrap Other 33 31
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 264 251 242 208 216 200 201 171 162 162 162 159 113 132 216 143 82 165 107 107 110 99 93 83 80 88 84 57 55 52 43 35 8 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6M 2020 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures are
Slide 28: Number of Employees
Number of Employees 12,659 12,277 11,975 11,607 11,428 11,391 2015 2016 2017 2018 2019 Jun. 2020 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2020- 01.01.2020- Note 30.06.2020 30.06.2020 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 6.4761 Operating Profit 302,149 1,956,754 Depreciation and Amortisation Expenses 98,939 640,743 Cost of Sales 13 91,187 590,538 Marketing Expenses 14 3,474
Slide 30: 2020 Guidance
YAK | MINING METALLURGY 2020 Guidance
Slide 31: 2020 Guidance
2020 Guidance Sales Volume (million tons) 8,3 8,5 1,1 1,1 2019 actual 20,1% EBITDA Margin 7,2 7,4 2020 projection 16-18% 2019 2020 Actual Projection Flat Long 31
Slide 32: Erdemir Investor Relations
Erdemir Investor Relations investorrelations@erdemir.com.tr https://www.erdemir.com.tr/investor-relations/ +90 216 578 80 61 32
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