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) — FY2021 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 10, 2022
Slide 1: OYAK Mining Metallurgy
MINING OYAK | METALLURGY
Slide 2: 2021 12 Months Investor Presentation
2021 12 Months Investor Presentation 10.02.2022
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: 2021 Market Overview
e 2021 Market Overview MINING OYAK | METALLURGY
Slide 5: Crude Steel Production: EU27, CIS, China
5 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% Dec. 19 Jan. 20 Feb. 20 Mar.20 Apr.20 May.20 Jun.20 Jul. 20 Aug. 20 Sep. 20 Oct. 20 -5% -15% 0% 5% -10% 10% 15% 20% Nov. 20 Dec. 19 Dec. 20 Jan. 20 Jan. 21 Feb. 20 Feb. 21 Mar.20 Mar.21 Apr.20 Apr.21 May.20 May.21 Jun.20 Jun.21 EU27 Crude Steel Production
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 150 200 250 300 350 400 450 Jan-20 USD/TON Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 200 300 400 500 600 Jan-21 Jan-20 Feb-21 USD/TON Feb-20 Mar-21 Coking Coal Prices Mar-20 Apr-21 Apr-20 May-21 May-20 Jun-21 Jun-20 Jul-21 Jul-20 Aug-21 (HCC Peak Downs Reg
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) +12.5% 41.4 36.9 39.0 38.6 36.8 33.7 13.1 13.4 14.6 10.9 13.9 13.5 26.0 25.9 25.2 22.9 26.8 20.2 2016 2017 2018 2019 2020 2021 Consumption (mn tons) +13.2% 34.1 35.9 33.4 30.6 29.5 17.8 26.0 16.5 17.4 14.8 15.7 15.2 17.6 18.1 15.8 16.0 10.8
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) +19.9% 19.9 17.8 17.6 16.6 1.1 14.4 1.0 1.3 0.7 13.4 6.7 0.3 0.8 6.1 5.8 5.8 3.1 4.3 10.0 10.7 10.5 10.1 12.1 9.3 2016 2017 2018 2019 2020 2021 Imports (mn tons) +23.2% 16.5 15.3 15.4 13.6 6.2 4.8 12.0 12.5 4.6 4.8 3.4 4.0 8.7 9.0 9.4 7.5 7.5 7.5 1.6
Slide 9: 2021 12M Results
2021 12M Results @ MINING OYAK | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2019 2020 2021 Change (12M) Liquid Steel Production (000 tons) 8,787 8,709 9,203 5.7% Flat Steel Production* (000 tons) 7,257 7,266 7,515 3.4% Long Steel Production (000 tons) 1,026 992 857 -13.6% Flat Steel Shipments (000 tons) 7,250 7,489
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) Liquid steel production increased by 7.9% YoY in Q4 2021. +5.7% 9,322 8,787 8,709 9,203 +7.9% 2,089 2,359 2,254 2018 2019 2020 2021 Q4 2020 Q3 2021 Q4 2021 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 94% 91% 89% 2015 2016 2017 2018 2019 2020 2021 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Cold production increased by 7.4% YoY in 2021. +1.4% 8,723 8,283 8,258 8,372 980 1,026 992 857 1,701 1,637 1,775 1,907 +2.5% 2,062 2,110 2,113 219 157 297 6,042 5,620 5,608 467 5,491 457 503 1,386 1,486 1,313 2018 2019 2020 2021 Q4 2020 Q3 2021 Q4 2021 Hot Cold Long Slab produc
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales volume increased by 3.5% QoQ in Q4 2021. 8,401 8,307 8,495 8,246 919 1,057 1,006 846 1,750 1,696 1,952 1,945 +3.5% 2,326 232 2,075 2,148 171 295 536 452 5,732 5,554 5,537 5,455 547 1,558 1,452 1,306 2018 2019 2020 2021 Q4 2020 Q3 2021 Q4 2021 Hot Cold Long 14 Slab
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 78.9% YoY in Q4 2021. +67.6% 7,667 1,710 5,598 1,163 4,844 4,575 1,030 786 +78.9% 2,171 2,343 5,957 535 639 4,435 1,310 3,814 3,789 187 1,636 1,704 1,123 2018 2019 2020 2021 Q4 2020 Q3 2021 Q4 2021 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 11% 15% (661) (849) Pipe&Profile and Rolling 19% 45% (1,161) 21% 5,825 kton (2,651) Distribution Chains 6,157 kton (1,234) 55% 12M 2021 General Manufacturing Industry 12M 2020 (3,415) Automotive 15% (920) 19% (1,091) Long Steel Dom
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 22.2% 23.4% 16.4% 472 502 364 2018 2019 2020 2021 Q4 2020 Q3 2021 Q4 2021 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% 40.7% 39.7% 26.5% 3,021 1,720 883 931 974 989 347 2018 2019 2020 2021 Q4 2020 Q3 2021 Q4 2021 Net Profit* (USD mn) Net Profit Margin (%) 20.7% 22.8% 12.1% 19.6% 27.6% 17.5% 10.3% 1,745 257 598 1,160 409 585 472 2018 2019 2
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) (227) 0,4 (0,6) (107) (881) (694) Corp.Tax (187) Defr.Tax (62) 3.021 2.795 1.745 EBITDA Depreciation Interest Inc. Operating Investing Finance Vergi Gel./(Gid.) Non-Controlling NET PROFIT (12A 2021) (Exp.) in Other Income Activities Inc./(Exp.) Interests (12A 2021) Operati
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 3,021 (1,084) 31 (424) (450) 1,094 (907) 350 (294) (350) (107) EBITDA Changes Interest Taxes Paid Net Cash Free Cash Dividend Credit Usage/ Subsidiary Other Change 12M 2021 in Working Inc./(Exp.) used in Flow Paid (Payment) Acquisition in Cash Capital Net Investing Net 12M 2
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 413 418 336 250 223 219 197 179 172 144 139 145 124 117 95 103 67 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 Q2 2021 Q3 2021 Q4 2021 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2020 31.12.2021 Change Cash Equivalents and Financial Investments 1,850 1,741 -6% Working Capital 1,424 2,508 76% Tangible and Intangible Assets 3,657 4,154 14% Financial Liabilities (899) (1,249) 39% Provisions and Other 58 (100) -272% Goodwi
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 654 829 930 723 897 510 460 362 351 499 266 325 (190) (482) (528) (518) (675) (984) 2016 2017 2018 2019* 2020* 2021* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Cash (USD mn)
Net Cash (USD mn) (907) 1.094 984 (294) (359) 518 Net Cash Free Cash Flow Dividend Paid Subsidiary Other Net Cash Dec. 2020 Acquisition Dec. 2021 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,740 732 19 650 204 122 7 50 49 114 63 11 197 3 2 3 111 47 47 111 2021 Cash 2022 2023 2024 2025 2026 2027 and after Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 5 7 7 6 5 5 5 5 5 6 6 5 9 7 8 6 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 76 75 74 78 Other 2018 2019 2020 2021 Raw Materials Breakdown (%) 22 20 20 14 11 11 12 12 Iron Ore&Pellet 28 25 35 34 Coal Scrap 41 49 Other 31 3
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 434 306 264 251 242 208 216 392 201 171 162 162 162 159 285 113 132 216 82 165 107 110 93 83 80 88 84 55 52 43 35 42 21 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures are
Slide 28: Number of Employees
Number of Employees 12,788 12,277 11,975 11,607 11,428 11,538 2016 2017 2018 2019 2020 2021 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2021- 01.01.2021- Note 31.12.2021 31.12.2021 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 8.8989 Operating Profit 2,794,893 24,871,472 Depreciation and Amortisation Expenses 226,728 2,017,622 Cost of Sales 25 208,182 1,852,588 Marketing Expenses
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) — FY2021 Earnings Presentation on 6ix