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) — Q1 2019 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Apr 26, 2019
Slide 1: ING METALLURGY
ING METALLURGY UP @vx) |
Slide 2: 2019 3 Months Investor Presentation
2019 3 Months Investor Presentation 26.04.2019
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: 2019 Market Overview
e 2019 Market Overview @ x) MINING METALLURGY YAK |e ROUP
Slide 5: Crude Steel Production (% yoy)
5 10.0% -5.0% 0.0% 5.0% -10.0% Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 10.0% -5.0% -10.0% 0.0% 5.0% Feb-18 Mar-17 Mar-16 Apr-17 Apr-18 May-17 May-18 Jun-17 Jun-18 Jul-17 Jul-18 Aug-17 Aug-18 Sep-17 Sep-18 EU28 Crude Steel Production (% yoy) Crude Steel Production
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 100 150 200 250 300 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 150 200 250 300 350 400 Apr-17 May-18 May-17 Jun-18 Coking Coal Prices Jun-17 Jul-18 Jul-17 Aug-18 Aug-17 Sep-18 Sep-17 Oct-18 Oct-17 Nov-18 (HCC Peak Downs Region FOB Australia) Nov-17 D
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Flat and Long Production (mn tons) 36.9 36.9 39.0 38.6 36.1 -24.2% 6.6 5.0 2014 2015 2016 2017 2018 2M 2018 2M 2019 Flat and Long Consumption (mn tons) 34.4 34.1 35.9 -39.3% 30.8 30.6 5.6 3.4 2014 2015 2016 2017 2018 2M 2018 2M 2019 7 Source: TSPA
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17,8 1,0 23.1% 14,1 13,4 14,4 13,1 0,6 0,3 0,9 6,1 3.2 2,5 0,3 2,6 3,1 4,3 2.6 0.3 0.1 1.2 0.8 11,0 10,2 10,0 9,3 10,7 1.7 1.7 2014 2015 2016 2017 2018 2M 2018 2M 2019 Imports (mn tons) 18,1 16,5 15,3 13,0 7,9 13,6 -32.0% 6,2 4,8 4,8 2.5 4,8 0.9 1.7
Slide 9: 2019 3M Results
2019 3M Results @ @ x) MINING METALLURGY YAK |e ROUP
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2017 2018 3M 2018 3M 2019 Growth (YoY) Liquid Steel Production (000 tons) 9,392 9,322 2,401 2,369 -1.3% Flat Steel Production* (000 tons) 7,713 7,743 1,959 1,827 -6.7% Long Steel Production (000 tons) 1,328 980 251 315 25.5% Flat Steel Ship
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,122 9,373 9,392 9,322 2,401 2,372 2,369 2015 2016 2017 2018 Q1 2018 Q4 2018 Q1 2019 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 98% 96% 93% 78% 76% 72% 70% 69% 2013 2014 2015 2016 2017 2018 Q1 2019 Erdemir World* 12 As of August 2018, Worldsteel no longer publishes global capacity utilization ratio for anti-trust reasons. Source: Worldsteel
Slide 13: Production (000 tons)
Production (000 tons) 8,963 9,041 8,644 8,723 1,563 1,328 980 1,572 1,822 1,701 1,820 1,781 2,210 2,152 2,142 251 296 315 5,891 6,042 430 398 403 5,580 5,291 1,529 1,458 1,424 2015 2016 2017 2018 Q1 2018 Q4 2018 Q1 2019 Hot Cold Long Slab production for 3rd parties was included in 13 HRC production.
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales increased by 3.2% QoQ in Q1 2019. 8,781 8,750 8,958 8,401 1,364 1,552 1,587 919 1,908 1,750 1,845 1,860 +3.2% 2,186 2,154 2,224 249 263 336 5,686 5,732 458 468 453 5,384 5,303 1,479 1,423 1,435 2015 2016 2017 2018 Q1 2018 Q4 2018 Q1 2019 Hot Cold Long 14 Slab sale
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Export revenue increased by 71.7% YoY in Q1 2019. +8.9% 5,598 5,140 1,163 4,382 733 435 3,855 517 1,422 1,373 1,333 4,407 4,435 205 3,947 351 352 3,338 1,217 1,022 981 2015 2016 2017 2018 Q1 2018 Q4 2018 Q1 2019 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 14% 13% (200) (220) 17% 17% (242) 1,428K ton Pipe&Profile and Rolling (282) 1,656K ton 54% 54% 3M 2019 (776) Distribution Chains 3M 2018 (890) General Manufacturing Industry 15% 16% (210) Automotive (264) Long Steel Domestic Sales
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) Total export volume increased by 94.8% YoY in Q1 2019. 19.4% 1,631 13.4% 12.4% 25.5% 24.2% 1,199 13.3% 9.7% 1,086 +94.8% 850 567 521 291 2015 2016 2017 2018 1Ç 2018 4Ç 2018 1Ç 2019 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 29.1% 30.7% 17.6% 23.2% 15.0% 30.8% 26.0% 24.3% 1,496 1,720 895 438 356 770 323 2015 2016 2017 2018 Q1 2018 Q4 2018 Q1 2019 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 9.4% 13.0% 19.6% 22.5% 14.0% +12.6% 1,030 1,160 308 279 414 502 186
Slide 19: EBITDA to Net Profit
EBITDA Net Profit 323 (51) 40 272 (0.2) 1 (119) (8) 186 EBITDA Depreciation Interest Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 3M 2019 Inc./(Exp.) Income Activities Inc./(Exp.) Controlling 3M 2019 on Other Inc./(Exp.) Interests Operating Inc./(Exp.) 19
Slide 20: EBITDA to Net Cash
EBITDA Net Cash 18 11 (52) 129 (66) 363 323 (167) 190 (6) EBITDA Changes Interest Inc. Interest Taxes Paid Net Cash Free Cash Credit Usage/ Other Change 3M 2019 in Working from Overdue Inc./(Exp.) used in Flow (Payment) Net in Cash Capital Sales Net Investing 3M 2019 Activities 20
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 172 138 141 143 139 120 105 96 85 119 51 43 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2018 31.03.2019 Growth (YoY) Cash and Cash Equivalents 1,646 1,834 11% Working Capital 2,219 2,090 -6% Tangible and Intangible Assets 3,533 3,558 1% Financial Liabilities (1,163) (1,034) -11% Provisions and Other (674) (723) 7% Dividend Payabl
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 891 368 654 829 897 764 529 655 581 460 362 266 270 14 (190) (482) (836) (675) 2014 2015 2016 2017 2018 Q1 2019 Net Debt Short-Term Debt Long-Term Debt 23
Slide 24: Net Debt (USD mn)
Net Debt (USD mn) 836 (9) 363 482 Net Cash Free Cash Flow Other Net Cash Dec. 2018 Mar. 2019 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,834 723 14 637 162 9 52 41 24 8 72 153 48 4 3 1 38 23 8 1 Mar. 2019 Apr. - Dec. 2020 2021 2022 2023 2024 Cash 2019 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 7 6 5 6 7 5 5 5 5 5 8 6 11 9 7 Raw Materials 14 Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 73 76 76 64 Other 2016 2017 2018 3M 2019 Raw Materials Breakdown (%) 24 20 22 20 13 12 12 11 Iron Ore&Pellet 27 35 35 36 Coal Scrap Other 36 33
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures (USD mn) 634 576 264 242 200 201 208 216 158 171 162 162 162 159 113 132 143 82 165 107 110 140 43 59 57 93 83 55 80 88 84 17 52 43 39 4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3M 2019 Capital Expenditures Fixed Assets Acquisition 27
Slide 28: Number of Employees
Number of Employees 12,872 12,659 12,277 11,975 11,607 11,560 2014 2015 2016 2017 2018 Mar. 2019 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2019- 01.01.2019- Note 31.03.2019 31.03.2019 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 5.3578 Operating Profit 272,414 1,459,543 Depreciation and Amortisation Expenses 50,777 272,049 Cost of Sales 14 46,743 250,439 Marketing Expenses 15 1,874
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) — Q1 2019 Earnings Presentation on 6ix