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 2021 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Oct 26, 2021
Slide 1: Mining – OYAK Metallurgy
MINING OYAK | METALLURGY
Slide 2: 2021 9 Months Investor Presentation
2021 9 Months Investor Presentation 26.10.2021
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 (% yoy)
5 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 Feb. 20 Mar.20 Apr.20 May.20 Jun.20 Jul. 20 -5% -15% 0% 5% -10% 10% 15% 20% Aug. 20 Sep. 19 Sep. 20 Oct. 19 Oct. 20 Nov. 19 Nov. 20 Dec. 19 Dec. 20 Jan. 20 Jan. 21 Feb. 20 Feb. 21 Mar.20 Mar.21 EU28 Crude Steel Prod
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 200 250 300 350 400 150 Oct-19 USD/TON Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 200 300 400 500 600 Oct-20 Oct-19 Nov-20 USD/TON Nov-19 Dec-20 Coking Coal Prices Dec-19 Jan-21 Jan-20 Feb-21 Feb-20 Mar-21 Mar-20 Apr-21 Apr-20 May-21 (HCC Peak Downs Region
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 36.9 39.0 38.6 36.8 33.7 10.9 13.1 13.9 13.9 +17.9% 13.5 27.7 23.5 10.2 26.0 25.9 24.7 9.1 20.2 22.9 14.4 17.5 2016 2017 2018 2019 2020 8M 2020 8M 2021 Consumption (mn tons) 34.1 35.9 30.7 29.4 26.0 +20.4% 16.5 17.8 15.3 23.0 15.7 19.1 15.2
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 16.6 1.0 1.3 +22.1% 13.4 14.4 0.7 0.3 0.8 6.1 5.8 12.7 5.8 10.4 3.1 4.3 0.8 0.4 3.9 3.8 10.0 9.3 10.7 10.5 10.1 6.2 8.0 2016 2017 2018 2019 2020 8M 2020 8M 2021 Imports (mn tons) 16.5 15.3 13.6 6.2 4.8 12.0 12.5 +30.1% 4.8 4.0 10.8 3.4 8.3
Slide 9: 2021 9M Results
2021 9M Results @ MINING OYAK | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2019 2020 9M 2020 9M 2021 Change (9M) Liquid Steel Production (000 tons) 8,787 8,709 6,620 6,949 5.0% Flat Steel Production* (000 tons) 7,257 7,266 5,423 5,697 5.1% Long Steel Production (000 tons) 1,026 992 773 561 -27.4% Flat Steel Shipme
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) Liquid steel production increased by 5.4% QoQ in Q3 2021. +5.0% 9,322 8,787 8,709 +5.4% 6,620 6,949 2,363 2,238 2,359 2018 2019 2020 9M 2020 9M 2021 Q3 2020 Q2 2021 Q3 2021 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 95% 91% 89% 2015 2016 2017 2018 2019 2020 9M 2021 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Cold production increased by 6.4% YoY in 9M 2021. 8,723 8,283 8,258 980 1,026 992 +1.0% 1,701 1,637 1,775 6,196 6,258 773 561 1,318 1,403 2,199 2,127 2,110 323 196 157 6,042 5,620 470 467 5,491 482 4,105 4,294 1,394 1,461 1,486 2018 2019 2020 9M 2020 9M 2021 Q3 2020 Q2 2021 Q3
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales volume increased by 5.6% QoQ in Q3 2021. 8,401 8,307 8,495 919 1,057 1,006 1,750 1,696 1,952 6,169 6,147 774 551 +5.6% 1,416 1,413 2,226 2,124 2,012 321 176 171 5,732 552 447 468 5,554 5,537 3,979 4,183 1,353 1,389 1,485 2018 2019 2020 9M 2020 9M 2021 Q3 2020 Q2 2
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 90.9% YoY in Q3 2021. +63.1% 5,598 5,324 1,163 4,844 4,575 1,070 1,030 786 3,265 599 +90.9% 2,171 4,435 4,254 3,814 3,789 1,732 535 1,137 360 2,666 185 1,372 1,636 952 2018 2019 2020 9M 2020 9M 2021 Q3 2020 Q2 2021 Q3 2021 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 14% 10% (455) (618) Pipe&Profile and Rolling 19% 20% (838) 48% Distribution Chains 4,358 kton (911) 4,518 kton (2,191) 56% 9M 2021 General Manufacturing Industry 9M 2020 (2,422) Automotive 15% 18% (643) (798) Long Steel Domestic Sa
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 16.5% 1,631 1,402 17.6% 17.7% 1,085 1,091 22.2% 16.4% 20.2% 472 406 364 2018 2019 2020 9M 2020 9M 2021 Q3 2020 Q2 2021 Q3 2021 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 30.7% 39.3% 20.1% 21.6% 19.7% 39.3% 40.7% 23.0% 1,720 2,090 974 989 883 681 642 261 2018 2019 2020 9M 2020 9M 2021 Q3 2020 Q2 2021 Q3 2021 Net Profit* (USD mn) Net Profit Margin (%) 20.7% 25.1% 12.1% 22.1% 27.6% 10.3% 6.6% 7.2% 1,160 1,336 598 58
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) 2.090 (161) 1.929 43 0 0 (580) (57) 1.336 EBITDA Depreciation Interest Inc. Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 9M 2021 (Exp.) in Other Income Activities Inc./(Exp.) Controlling 9M 2021 Operating Inc. Inc./(Exp.) Interests (Exp.) 19
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 2,090 (899) 22 (388) (339) 486 (827) 365 (294) (108) (378) EBITDA Changes Interest Taxes Paid Net Cash Free Cash Dividend Credit Usage/ Subsidiary Other Change 9M 2021 in Working Inc./(Exp.) used in Flow Paid (Payment) Acquisition in Cash Capital Net Investing Net 9M 2021 Ac
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 404 336 250 223 219 197 179 172 143 144 139 145 124 117 95 103 67 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 Q4 2020 Q1 2021 Q2 2021 Q3 2021 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2020 30.09.2021 Change Cash Equivalents and Financial Investments 1,850 1,465 -21% Working Capital 1,424 2,323 63% Tangible and Intangible Assets 3,657 3,951 8% Financial Liabilities (899) (1,256) 40% Provisions and Other 58 17 -71% Goodwill -
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 654 829 930 725 897 510 460 362 325 351 494 266 (190) (245) (482) (528) (675) (984) 2016 2017 2018 2019* 2020* 9M 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) 486 984 (827) (294) (104) 245 Net Cash Free Cash Flow Dividend Paid Subsidiary Other Net Cash Dec. 2020 Acquisition Sept. 2021 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,464 575 45 17 180 513 203 6 122 7 155 11 196 48 47 19 111 45 3 45 2 Sept. 2021 Oct.- Dec. 2022 2023 2024 2025 2026 Cash 2021 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 7 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 76 75 74 77 Other 2018 2019 2020 9M 2021 Raw Materials Breakdown (%) 22 20 20 16 12 11 11 12 Iron Ore&Pellet 28 24 35 34 Coal Scrap 35 41 48 Othe
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 306 288 264 242 251 208 216 201 171 162 162 162 159 285 264 113 132 216 82 165 107 110 93 83 80 88 84 55 52 43 35 21 24 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M 2021 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures a
Slide 28: Number of Employees
Number of Employees 12,277 12,534 11,975 11,607 11,538 11,428 2016 2017 2018 2019 2020 Sept. 2021 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2021- 01.01.2021- Note 30.09.2021 30.09.2021 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 8.0877 Operating Profit 1,929,066 15,601,696 Depreciation and Amortisation Expenses 161,453 1,305,788 Cost of Sales 14 148,151 1,198,199 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
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