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 2022 Earnings Presentation
31 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Aug 9, 2022
Slide 1: Mining – OYAK Metallurgy
MINING OYAK | METALLURGY
Slide 2: 2022 6 Months Investor Presentation
2022 6 Months Investor Presentation 09.08.2022
Slide 3: 2022 Market Overview
e 2022 Market Overview MINING OYAK | METALLURGY
Slide 4: Crude Steel Production: EU27, CIS, China
4 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% Jun.20 Jul. 20 Aug. 20 Sep. 20 Oct. 20 Nov. 20 Dec. 20 Jan. 21 Feb. 21 Mar.21 Apr.21 -5% -35% -25% -20% -15% -10% 0% 5% -30% 10% 15% 20% May.21 Jun.20 Jun.21 Jul. 20 Jul. 21 Aug. 20 Aug. 21 Sep. 20 Sep. 21 Oct. 20 Oct. 21 Nov. 20 Nov. 21 Dec. 20 Dec. 21 E
Slide 5: Coking Coal, Iron Ore & Scrap Prices
5 0 100 300 400 600 200 500 Jul-20 USD/TON Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 200 300 400 500 600 700 Jul-21 Jul-20 Aug-21 USD/TON Aug-20 Sep-21 Coking Coal Prices Sep-20 Oct-21 Oct-20 Nov-21 Nov-20 Dec-21 Dec-20 Jan-22 Jan-21 Feb-22 (HCC Peak Downs Region F
Slide 6: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 41.4 39.0 38.6 36.8 33.7 13.1 13.4 14.6 13.9 13.5 20.9 19.8 7.6 7.6 25.9 25.2 22.9 26.8 20.2 13.3 12.2 2017 2018 2019 2020 2021 6M 2021 6M 2022 Consumption (mn tons) 35.9 33.4 30.6 29.5 17.8 26.0 14.8 17.4 15.7 17.5 17.0 15.2 9.4 9.4 18.1 1
Slide 7: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 19.9 17.8 17.6 16.6 1.1 14.4 1.0 1.3 0.7 9.3 6.7 8.5 0.8 6.1 5.8 5.8 0.6 4.3 0.5 2.8 2.6 10.7 10.5 10.1 12.1 9.3 5.9 5.4 2017 2018 2019 2020 2021 6M 2021 6M 2022 Imports (mn tons) 15.3 15.4 13.6 4.8 12.0 12.5 4.6 4.8 4.0 8.2 3.4 7.7 2.8 2.5 9.0 9.4 7
Slide 8: 2022 6M Results
2022 6M Results @ MINING OYAK | METALLURGY
Slide 9: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2020 2021 6M 2021 6M 2022 Change (6M) Liquid Steel Production (000 tons) 8,709 9,203 4,590 4,198 -8.5% Flat Steel Production* (000 tons) 7,266 7,515 3,744 3,789 1.2% Long Steel Production (000 tons) 992 857 404 479 18.6% Flat Steel Shipment
Slide 10: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) Liquid steel production increased by 6.5% QoQ in Q2 2022. 8,787 8,709 9,203 +6.5% 4,590 4,198 2,238 2,033 2,165 2019 2020 2021 6M 2021 6M 2022 Q2 2021 Q1 2022 Q2 2022 10
Slide 11: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 97% 97% 94% 91% 89% 86% 2017 2018 2019 2020 2021 6M 2022 Erdemir 11
Slide 12: Production (000 tons)
Production (000 tons) Production increased by 5.0% QoQ in Q2 2022. 8,283 8,258 8,372 1,026 992 857 +2.9% 1,637 1,775 1,907 4,148 4,268 404 479 936 935 +5.0% 2,127 2,082 2,186 196 275 204 5,620 5,491 5,608 474 470 461 2,808 2,854 1,461 1,346 1,508 2019 2020 2021 6M 2021 6M 2022 Q2 2021 Q1 2022 Q2 202
Slide 13: Sales Volume (000 tons)
Sales Volume (000 tons) 8,307 8,495 8,246 1,057 1,006 846 1,696 1,952 1,945 4,023 3,945 380 459 946 947 2,012 1,981 1,964 176 258 201 447 481 466 5,554 5,537 5,455 2,697 2,539 1,389 1,242 1,297 2019 2020 2021 6M 2021 6M 2022 Q2 2021 Q1 2022 Q2 2022 Hot Cold Long 13 Slab sales for 3rd parties were in
Slide 14: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 36.5% YoY in 6M 2022. 7,667 1,710 +36.5% 4,303 4,844 4,575 690 1,030 786 3,153 +27.1% 535 2,202 5,957 2,101 1,732 363 327 3,613 360 3,814 3,789 2,618 1,738 1,875 1,372 2019 2020 2021 6M 2021 6M 2022 Q2 2021 Q1 2022 Q2 2022 Export Domestic 14
Slide 15: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 15% 13% (426) (407) Pipe&Profile and Rolling 45% 20% 49% 23% 2,959 kton (1,364) Distribution Chains (621) 3,037 kton (1,477) (673) 6M 2022 General Manufacturing Industry 6M 2021 Automotive 18% 17% (532) (496) Long Steel Domestic Sa
Slide 16: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.3% 1,723 16.5% 1,592 15.4% 1,402 14.3% 619 563 20.2% 16.5% 406 12.1% 326 237 2019 2020 2021 6M 2021 6M 2022 Q2 2021 Q1 2022 Q2 2022 Export Share in Total Sales 16
Slide 17: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 39.4% 20.1% 21.6% 38.3% 39.3% 32.2% 33.0% 31.4% 3,021 1,207 1,385 693 692 681 974 989 2019 2020 2021 6M 2021 6M 2022 Q2 2021 Q1 2022 Q2 2022 Net Profit* (USD mn) Net Profit Margin (%) 22.8% 12.1% 10.3% 22.1% 19.3% 19.2% 23.4% 19.2% 1,745 422 738
Slide 18: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) (110) (397) 0,3 0,2 (18) (393) Corp.Tax (4) Defr.Tax (33) 1,385 1,275 827 EBITDA Depreciation Interest Inc. Operating Investing Finance Tax Inc./(Exp.) Non-Controlling NET PROFIT (6M 2022) (Exp.) in Other Income Activities Inc./(Exp.) Interests (6M 2022) Operating Inc. Inc
Slide 19: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 1,385 (691) 47 (521) (283) (63) (1,062) 263 (151) (1,013) EBITDA Changes Interest Taxes Paid Net Cash used Free Cash Dividend Paid Credit Usage/ Other Change 6M 2022 in Working Inc./(Exp.) in Investing Flow (Payment) Net in Cash Capital Net Activities 6M 2022 19
Slide 20: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 413 418 336 335 329 250 223 219 172 139 145 144 124 117 95 103 67 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 Q1 2022 Q2 2022 20 *One-off income/expense items are excluded.
Slide 21: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2021 30.06.2022 Change Cash Equivalents and Financial Investments 1,741 747 -57% Working Capital 2,508 3,199 28% Tangible and Intangible Assets 4,154 4,237 2% Financial Liabilities (1,249) (1,480) 18% Provisions and Other (100) 85 - Goodwill 1
Slide 22: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 967 829 930 723 897 510 733 362 325 351 499 486 266 (482) (528) (518) (675) (984) 2017 2018 2019* 2020* 2021* 6M 2022* Net Debt Short-Term Debt Long-Term Debt 22 *TFRS 16 Leases are excluded.
Slide 23: Net Cash (Debt) (USD mn)
Net Cash (Debt) (USD mn) 518 (63) (1,062) (126) (733) Net Cash Free Cash Flow Dividend Paid Other Net Cash Dec. 2021 Jun. 2022 23
Slide 24: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 720 576 23 532 64 200 468 209 10 353 134 8 199 55 55 5 4 126 50 51 June 2022 Jul.-Dec. 2022 2023 2024 2025 2026 2027 and after Cash Principal Revolving Trade Financing Loans Interest 24
Slide 25: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 7 7 6 4 4 5 5 5 9 6 6 5 7 8 6 4 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 75 74 78 79 Other 2019 2020 2021 6M 2022 Raw Materials Breakdown (%) 20 20 19 22 11 11 11 11 Iron Ore&Pellet 34 28 23 Coal 37 Scrap Other 35 41 4
Slide 26: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 434 306 242 251 208 216 392 218 201 162 162 162 159 285 113 132 216 82 165 198 107 110 83 80 88 84 55 52 43 35 42 21 20 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 6M 2022 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures a
Slide 27: Number of Employees
Number of Employees 12,788 12,788 11,975 11,607 11,538 11,428 2017 2018 2019 2020 2021 Jun. 2022 27
Slide 28: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2022- 01.01.2022- Note 30.06.2022 30.06.2022 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 14.8297 Operating Profit 1,274,934 18,906,905 Depreciation and Amortisation Expenses 110,102 1,632,775 Cost of Sales 13 100,675 1,492,982 Marketing Expenses
Slide 29: Sustainability
Sustainability We shape our approach to value generation on the basis of three basic concepts as follows: sustainable growth, responsible production, approach that puts people at the center. Sustainable Responsible People-Centered Growth Production Approach 29
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
Slide 31: 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
Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — H1 2022 Earnings Presentation on 6ix