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) — 9M 2020 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Oct 22, 2020
Slide 1: Mining – OYAK Metallurgy
MINING OYAK | METALLURGY
Slide 2: 2020 9 Months Investor Presentation
2020 9 Months Investor Presentation 22.10.2020
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
e 2020 Market Overview MINING OYAK | METALLURGY
Slide 5: Crude Steel Production by Region (% yoy)
5 -5.0% 0.0% 5.0% -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan.19 Feb. 19 Mar.19 Apr.19 May.19 Jun.19 -5.0% -15.0% -10.0% 0.0% 5.0% Jul. 19 Aug. 18 Aug. 19 Sep. 18 Sep. 19 Oct. 18 Oct. 19 Nov. 18 Nov. 19 Dec. 18 Dec. 19 Jan.19 Jan. 20 Feb. 19 Feb. 20 EU28 Cru
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 150 200 250 Oct-18 USD/TON Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 150 200 250 300 350 400 Oct-19 Oct-18 Nov-19 USD/TON Nov-18 Dec-19 Coking Coal Prices Dec-18 Jan-20 Jan-19 Feb-20 Feb-19 Mar-20 Mar-19 Apr-20 Apr-19 May-20 (HCC Peak Downs Region FOB Aust
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 +5.4% 13.5 22.2 23.4 9.0 9.1 26.5 26.0 25.9 24.7 20.2 13.2 14.3 2015 2016 2017 2018 2019 8M 2019 8M 2020 Consumption (mn tons) 34.4 34.1 35.9 30.7 26.0 +13.1% 16.5 16.5 17.8 15.3 19.0 16.8 15.2 1
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 11.9 0.3 10.4 2.6 3.1 4.3 1.1 0.4 3.9 3.8 10.2 10.0 9.3 10.7 10.5 6.9 6.2 2015 2016 2017 2018 2019 8M 2019 8M 2020 Imports (mn tons) 18.1 16.5 15.3 7.9 13.6 +7.9% 6.2 4.8 12.0 4.8 7.6 8.2 3.4 2.1 2.6 8
Slide 9: 2020 9M Results
2020 9M Results @ MINING OYAK | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2018 2019 9M 2019 9M 2020 Growth (YoY) Liquid Steel Production (000 tons) 9,322 8,787 6,583 6,620 0.6% Flat Steel Production* (000 tons) 7,743 7,257 5,504 5,423 -1.5% Long Steel Production (000 tons) 980 1,026 757 773 2.1% Flat Steel Shipme
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) Liquid steel production increased by 19.8% QoQ in Q3 2020. 9,392 9,322 8,787 +19.8% 6,583 6,620 2,067 1,973 2,363 2017 2018 2019 9M 2019 9M 2020 Q3 2019 Q2 2020 Q3 2020 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 96% 91% 91% 2014 2015 2016 2017 2018 2019 9M 2020 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Total production increased by 9% QoQ in Q3 2020. 9,041 8,723 1,328 8,283 980 1,026 1,822 1,701 1,637 6,261 6,196 757 773 1,187 1,318 +9.0% 2,018 2,199 1,999 186 323 5,891 6,042 5,620 234 407 432 482 4,317 4,105 1,358 1,400 1,394 2017 2018 2019 9M 2019 9M 2020 Q3 2019 Q2 2020 Q3
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales volume increased by 10.2% QoQ in Q3 2020. 8,958 8,401 8,307 1,364 919 1,057 1,908 1,750 1,696 6,251 6,169 780 774 +10.2% 1,243 1,416 2,226 1,929 2,020 186 321 240 5,686 5,732 5,554 390 441 552 4,228 3,979 1,299 1,393 1,353 2017 2018 2019 9M 2019 9M 2020 Q3 2019 Q2
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 5.2% QoQ in Q3 2020. 5,598 5,140 1,163 4,844 733 1,030 3,731 3,265 818 599 +5.2% 4,407 4,435 1,131 1,081 1,137 3,814 198 185 281 2,913 2,666 933 800 952 2017 2018 2019 9M 2019 9M 2020 Q3 2019 Q2 2020 Q3 2020 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 10% 13% (455) (560) 19% Pipe&Profile and Rolling (838) 18% 4,358K ton Distribution Chains (792) 4,309K ton 56% 9M 2019 57% 9M 2020 General Manufacturing Industry (2,422) (2,457) Automotive 12% 15% (643) (500) Long Steel Domestic Sa
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 1,631 21.5% 13.4% 17.6% 1,199 1,343 25.3% 1,085 17.1% 16.4% 512 330 364 2017 2018 2019 9M 2019 9M 2020 Q3 2019 Q2 2020 Q3 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% 22.6% 23.0% 19.7% 19.7% 19.0% 1,496 1,720 844 974 642 222 205 261 2017 2018 2019 9M 2019 9M 2020 Q3 2019 Q2 2020 Q3 2020 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 12.1% 14.7% 12.2% 7.8% 7.2% 6.6% 1,030 1,160 549 138
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) 642 (154) 508 18 20 (37) (258) (15) 216 EBITDA Depreciation Share Transfer Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 9M 2020 Agreement Income Activities Inc./(Exp.) Controlling 9M 2020 Receivable Inc./(Exp.) Interests Income 19
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) (2) (153) 300 642 (257) 519 (11) (119) (88) (127) 185 EBITDA Changes Interest Taxes Paid Net Cash used Cash Flow Free Cash Dividend Paid Credit Usage/ Other Change 9M 2020 in Working Inc./(Exp.) in Investing from Financial Flow (Payment) Net in Cash Capital Net Activities In
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 172 138 141 143 139 145 124 117 95 103 119 67 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 Q3 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 30.09.2020 Growth (YoY) Cash Equivalents and Financial Investments 1,800 1,997 11% Working Capital 1,729 1,429 -17% Tangible and Intangible Assets 3,581 3,626 1% Financial Liabilities (1,296) (1,170) -10% Provisions and Other (554) (567)
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 368 654 829 930 897 799 655 460 362 325 337 14 266 (190) (482) (528) (675) (833) 2015 2016 2017 2018 2019* 9M 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) (119) (95) 833 519 528 Net Cash Free Cash Flow Dividend Paid Other Net Cash Dec. 2019 Sep. 2020 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,969 376 460 27 8 145 215 330 4 34 288 211 1 18 1 16 1 38 33 17 15 Sep. 2020 Oct. - 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 9M 2020 Raw Materials Breakdown (%) 20 22 20 20 12 12 11 11 Iron Ore&Pellet 35 35 34 29 Coal Scrap Other 33 31
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 264 251 242 208 216 216 200 201 171 162 162 162 159 113 132 216 143 82 165 107 110 204 93 83 80 88 84 57 55 52 43 35 12 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M 2020 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures a
Slide 28: Number of Employees
Number of Employees 12,659 12,277 11,975 11,607 11,428 11,453 2015 2016 2017 2018 2019 Sep. 2020 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2020- 01.01.2020- Note 30.09.2020 30.09.2020 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 6.7187 Operating Profit 508,380 3,415,656 Depreciation and Amortisation Expenses 154,081 1,035,229 Cost of Sales 13 142,321 956,213 Marketing Expenses 14 5,
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
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