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. — FY2017 Earnings Presentation

29 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 2, 2018

  1. Slide 1: Maden Metalurji OYAK Grubu

    MADEN METALURJI OYAK | GRUBU

  2. Slide 2: 2017 12 Months Consolidated Results

    2017 12 Months Consolidated Results 2 February 2018 2

  3. Slide 3: Disclaimer

    DISCLAMIER 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

  4. Slide 4: 2017 Market Overview, 2017 12M Results

    ˃ 2017 Market Overview ˃ 2017 12M Results 4

  5. Slide 5: Crude steel production YoY: EU28, CIS, China

    5 -5% -10% 0% 5% 10% 15% Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 in December YoY -5% -15% -10% 0% 5% 10% Aug-16 Dec-14 Oct-16 Feb-15 Dec-16 Apr-15 Feb-17 Jun-15 Apr-17 Aug-15 Jun-17 EU28 CRUDE STEEL PRODUCTION ( YoY % ) Oct-15 Aug-17 Dec-15 Oct-17 Feb-16 Dec-17 Apr-16 J

  6. Slide 6: Iron ore price was 75 USD/ton at January 2018

    Iron ore price was 75 USD/ton at January 2018 COKING COAL PRICES IRON ORE PRICES USD/TON (HCC PEAK DOWNS REGION FOB AUSTRALIA) (IODEX 62% FE CFR NORTH CHINA MID) USD/TON 310 100 90 260 80 210 70 160 60 50 110 40 60 30 07.2016 09.2016 11.2016 01.2017 03.2017 05.2017 07.2017 09.2017 11.2017 01.2018 01

  7. Slide 7: Turkish steel production increased by 6% in 2017 YoY

    Turkish steel production increased by 6% in 2017 YoY PRODUCTION ( MILLION TONS ) 39,2 36,9 36,9 36,1 36,4 13,0 10,9 10,4 10,4 9,9 26,2 26,0 26,5 25,7 26,5 2017 2016 2015 2014 2013 Long Flat CONSUMPTION ( MILLION TONS ) 36,1 34,4 34,1 31,3 30,8 17,7 16,5 16,5 14,6 14,6 18,4 17,6 17,9 16,2 16,7 2017 2

  8. Slide 8: Turkish iron and steel product exports increased by 8% in 2017 YoY

    Turkish iron and steel product exports increased by 8% in 2017 YoY IRON AND STEEL PRODUCT EXPORTS ( MILLION TONS ) 14,4 15,2 13,4 14,1 0,00 0,1 13,1 0,04 0,00 0,00 2,3 4,3 2,5 1,6 3,1 2,6 0,6 0,7 0,3 0,3 10,0 10,2 11,0 11,3 9,3 2017 2016 2015 2014 2013 Long Steel Semi-finished (Long) Flat Steel Slab

  9. Slide 9: 2017 Market Overview, 2017 12M Results

    ˃ 2017 Market Overview ˃ 2017 12M Results 9

  10. Slide 10: OYAK Mining and Metallurgy Group Key Figures

    OYAK MINING AND METALLURGY GROUP KEY FIGURES 2017 2016 2015 Liquid Steel Production (000 Tons) 9.392 9.373 9.122 (*) Flat Steel Production (000 Tons) 7.713 7.072 7.400 Long Steel Production (000 Tons) 1.328 1.572 1.563 Flat Steel Shipments (000 Tons) 7.594 7.163 7.229 Long Steel Shipments (000 Tons)

  11. Slide 11: Liquid steel production was 9,4 million tons in 2017

    Liquid steel production was 9,4 million tons in 2017 LIQUID STEEL PRODUCTION ( 000 TONS ) 9.392 9.373 9.122 2.394 2.441 2.318 2.328 2.330 2.242 2.350 2.362 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2015 4. Quarter 3. Quarter 2. Quarter 1. Quarter 11

  12. Slide 12: Crude steel capacity utilization ratio of Erdemir is higher than world average

    Crude steel capacity utilization ratio of Erdemir is higher than the world average CRUDE STEEL CAPACITY UTILIZATION RATIO 105% 100% 100% 97% 97% 96% 95% 93% 90% 88% 85% 80% 78% 78% 76% 75% 72% 70% 69% 70% 65% 2012 2013 2014 2015 2016 2017 Erdemir World 12 Source: Worldsteel

  13. Slide 13: Production was 9 million tons in 2017

    Production was 9 million tons in 2017 PRODUCTION VOLUMES ( 000 TONS ) 9.041 8.963 8.644 1.328 1.563 1.572 1.822 1.820 1.781 2.320 2.229 2.161 5.891 5.580 2.154 2.277 2.112 2.215 2.217 5.291 335 441 366 342 329 298 396 466 443 393 466 393 447 469 461 458 1.519 1.320 1.416 1.350 1.505 1.258 1.451 1.36

  14. Slide 14: Sales volume was 9 million tons in 2017

    Sales volume was 9 million tons in 2017 SALES VOLUMES ( 000 TONS ) 8.958 8.781 8.750 1.364 1.587 1.552 1.908 1.860 1.845 2.362 2.405 2.220 2.302 2.163 2.289 5.686 5.384 2.074 5.303 358 459 363 1.893 343 398 490 384 300 484 464 346 491 494 463 502 380 1.514 1.462 1.393 1.167 1.468 1.285 1.311 1.389 2

  15. Slide 15: Net sales revenue increased by 33% in 2017 YoY

    Net sales revenue increased by 33% in 2017 YoY NET SALES REVENUE ( MILLION USD ) 5.115 733 4.382 3.855 435 517 4.382 3.947 1.432 1.307 3.338 1.146 1.241 1.135 176 912 263 922 191 114 180 875 115 118 93 1.256 1.127 1.044 955 797 804 955 782 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2015 4. Qu

  16. Slide 16: 11% of flat steel sales are made to automotive sector

    11% of flat steel sales are made to automotive sector in 2017 2017 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 2016 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 737Kt; 703Kt; 11% 11% 1.155Kt; 1.137Kt; 18% 18% 6.553Kton 3.508Kt; 6.273Kton 3.323Kt; 53% 53% 1.153Kt; 1.110Kt; 18% 18% 2017 LONG STEEL DOMESTIC SAL

  17. Slide 17: Main product sales to EU countries was 72% of export in 2017

    Main product sales to EU countries was 72% of our export in 2017 2017 STEEL EXPORTS BREAKDOWN (%) 2016 STEEL EXPORTS BREAKDOWN (%) 36Kt; 34Kt; 74Kt; 3% 79Kt; 3% 6% 7% 17Kt 70Kt; 2% 6% 132Kt; 11% 304Kt; 556Kt; 1.199Kton 1.086Kton 870Kt 28% 51% 72% 113Kt; 11% 17

  18. Slide 18: Net profit increased by 105% in 2017 YoY

    Net profit increased by 105% in 2017 YoY 1.600 EBITDA ( MILLION USD ) 40,0% 1.400 32,0% 31,6% 32,0% 1.200 30,5% 27,1% 29,2% 1.000 26,4% 26,2% 24,0% 1.496 23,2% 800 20,6% 600 895 17,6%16,0% 14,2% 400 770 458 8,0% 200 302 336 343 359 279 190 0 124 0,0% 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016

  19. Slide 19: EBITDA was 1.496 million USD in 2017

    EBITDA was 1.496 million USD in 2017 Consolidated EBITDA => Consolidated Net Profit (Million USD) 19

  20. Slide 20: 401 million USD dividend was paid on April 7, 2017

    401 million USD dividend was paid on April 7, 2017 Consolidated EBITDA => Consolidated Net Cash (Million USD) 20

  21. Slide 21: EBITDA per ton for main product was 179 USD/ton in 2017 4Q

    EBITDA per ton for main product was 179 USD/ton in 2017 4Q EBITDA PER TON (USD/TON) * 179 174 143 143 137 137 138 128 119 141 120 105 96 85 51 43 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2014 2015 2016 2017 Main Product 21 * One-off income/expense items are excluded.

  22. Slide 22: Consolidated Net Assets were 5,1 billion USD at end of 2017

    Consolidated Net Assets were 5,1 billion USD at the end of 2017 CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD) 22

  23. Slide 23: Despite the high dividend payments, there is no net debt

    Despite the high dividend payments, there is no net debt BORROWINGS (MILLION USD) 2.479 1.135 1.452 1.640 693 1.472 1.283 1.190 891 1.023 1.114 368 654 828 1.344 947 529 581 655 460 362 14 2012 2013 2014 2015 2016 (190) 2017 (675) Long-Term Debt Short-Term Debt Net Debt 23

  24. Slide 24: There was 675 million USD Net Cash at the end of 2017

    There was 675 millon USD Net Cash at the end of 2017 NET DEBT (MILLION USD) 24

  25. Slide 25: Erdemir has 1.865 million USD cash and cash equivalents

    Erdemir has 1.865 million USD cash and cash equivalents at the end of 2017 BORROWINGS MATURITY PROFILE (MILLION USD) 845 19 1.865 500 152 135 326 10 5 37 27 142 130 2 1 35 26 Dec. 17 2018 2019 2020 2021 2022 Cash Principal Revolving Trade Financing Loans Interest 25

  26. Slide 26: Raw materials made up 73% of the cost of sales

    Raw materials made up 73% of the cost of sales COST OF SALES BREAKDOWN* - % 6% 7% 5% 0,3% 5% 0,7% 5% 0,2% 0,2% 5% 5% 5% 7% 7% 7% 8% 11% 12% 12% 14% 73% 70% 71% 64% 2017 2016 2015 2014 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expenses

  27. Slide 27: Capital expenditures was 208 million USD in 2017

    Capital expenditures was 208 million USD in 2017 ( M USD ) 1.017 718 634 961 445 675 576 264 242 377 200 201 208 158 162 162 162 171 159 143 113 165 107 82 110 140 68 56 59 57 93 83 80 88 52 43 17 55 43 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fixed Assets Acquisition and Mai

  28. Slide 28: Number of employees was 11.975 as of December 2017

    Number of employees was 11.975 as of December 2017 NUMBER OF EMPLOYEES 13.045 12.872 12.801 12.659 12.277 11.975 2012 2013 2014 2015 2016 2017 28

  29. Slide 29: Maden Metalurji OYAK Grubu

    29 @yak ) MADEN METALURJIi GRUBU

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. — FY2017 Earnings Presentation on 6ix