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. — Q1 2018 Earnings Presentation
29 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Apr 26, 2018
Slide 1: OYAK Mining Metallurgy Group
MINING METALLURGY Gay) | GROUP
Slide 2: 2018 3 Months Consolidated Results
2018 3 Months Consolidated Results 26 April 2018 2
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
Slide 4: 2018 Market Overview; 2018 3M Results
˃ 2018 Market Overview ˃ 2018 3M Results 4
Slide 5: Crude steel production by region (EU28, CIS, China)
10% 15% -5% -10% 0% 5% 5 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 in March YoY Jul-16 Sep-16 10% -5% -15% -10% 5% 0% Nov-16 Mar-15 Jan-17 May-15 Mar-17 Jul-15 May-17 Sep-15 Jul-17 Nov-15 Sep-17 EU28 CRUDE STEEL PRODUCTION ( YoY % ) Jan-16 Nov-17 Mar-16 Jan-18 May-16 Mar-18 Jul-16 Sep-
Slide 6: Iron ore price was 66 USD/ton in April 2018
Iron ore price was 66 USD/ton in April 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 04.2016 06.2016 08.2016 10.2016 12.2016 02.2017 04.2017 06.2017 08.2017 10.2017 12.2
Slide 7: Turkish steel production and consumption increased by 8% in 2018 2M YoY
Turkish steel production and consumption increased by 8% in 2018 2M 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 6,6 6,1 2,4 2,2 4,2 3,9 2017 2016 2015 2014 2013 2018 2M 2017 2M Long Flat CONSUMPTION ( MILLION TONS ) 36,1 34,4 34,1 30,8 31
Slide 8: Turkish iron and steel product exports and imports increased by 4% in 2018 2M YoY
Turkish iron and steel product exports and imports increased by 4% in 2018 2M YoY IRON AND STEEL PRODUCT EXPORTS ( MILLION TONS ) 15,2 14,4 13,4 14,1 0,0 0,1 13,1 0,0 0,0 0,0 2,3 4,3 3,1 2,5 1,6 2,6 0,6 0,7 0,3 0,3 11,0 11,3 2,7 2,6 9,3 10,0 10,2 0,1 0,8 0,1 0,5 1,8 1,9 2017 2016 2015 2014 2013 2018
Slide 9: 2018 Market Overview; 2018 3M Results
˃ 2018 Market Overview ˃ 2018 3M Results 9
Slide 10: OYAK Mining and Metallurgy Group Key Figures
OYAK MINING AND METALLURGY GROUP KEY FIGURES 2018 3M 2017 3M 2016 2015 Liquid Steel Production (000 Tons) 2.401 2.350 9.392 9.373 (*) Flat Steel Production (000 Tons) 1.959 1.917 7.713 7.072 Long Steel Production (000 Tons) 251 298 1.328 1.572 Flat Steel Shipments (000 Tons) 1.937 1.774 7.594 7.163
Slide 11: Liquid steel production was 2,4 million tons in 1Q 2018
Liquid steel production was 2,4 million tons in 1Q 2018 LIQUID STEEL PRODUCTION ( 000 TONS ) 9.392 9.373 9.122 2.394 2.401 2.350 2017 2018 2017 2017 2016 2015 4. Quarter 1. Quarter 11
Slide 12: Crude steel capacity utilization ratio of Erdemir is higher than the world average
Crude steel capacity utilization ratio of Erdemir is higher than the world average CRUDE STEEL CAPACITY UTILIZATION RATIO 105% 100% 100% 100% 97% 97% 96% 95% 93% 90% 85% 80% 78% 76% 75% 72% 72% 70% 69% 70% 65% 2013 2014 2015 2016 2017 2018 3M Erdemir World 12 Source: Worldsteel
Slide 13: Production was 2,2 million tons in 1Q 2018
Production was 2,2 million tons in 1Q 2018 PRODUCTION VOLUMES ( 000 TONS ) 9.041 8.963 8.644 1.328 1.563 1.572 1.822 1.820 1.781 2.210 2.320 2.215 5.891 5.580 251 5.291 335 298 466 430 466 1.519 1.529 1.451 2017 2018 2017 2017 2016 2015 4. Quarter 1. Quarter Hot Cold Long 13
Slide 14: Sales volume was 2,2 million tons in 1Q 2018
Sales volume was 2,2 million tons in 1Q 2018 SALES VOLUMES ( 000 TONS ) 8.958 8.750 8.781 1.364 1.587 1.552 1.908 1.860 1.845 2.362 2.186 5.686 2.074 5.303 5.384 358 249 490 458 300 463 1.514 1.479 1.311 2017 2018 2017 2017 2016 2015 4. Quarter 1. Quarter Hot Cold Long 14
Slide 15: Net sales revenue increased by 25% in 1Q 2018 YoY
Net sales revenue increased by 25% in 1Q 2018 YoY NET SALES REVENUE ( MILLION USD ) 5.115 733 4.382 3.855 435 517 4.382 3.947 1.432 1.422 3.338 176 204 1.142 181 1.256 1.218 961 2017 2018 2017 2017 2016 2015 4. Quarter 1. Quarter Domestic Export 15
Slide 16: 13% of flat steel sales are made to automotive sector in 1Q 2018
13% of flat steel sales are made to automotive sector İn 1Q 2018 3M 2018 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 3M 2017 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 220Kt; 189Kt; 13% 12% 282Kt; 265Kt; 17% 17% 1.656Kton 890Kt; 1.536Kton 811Kt; 54% 53% 264Kt; 16% 271Kt; 18% 3M 2018 LONG STEEL DOMESTIC SAL
Slide 17: Main product sales to EU countries was 81% of our export in 1Q 2018
Main product sales to EU countries was 81% of our export in 1Q 2018 3M 2018 STEEL EXPORTS BREAKDOWN (%) 3M 2017 STEEL EXPORTS BREAKDOWN (%) 4Kt; 9Kt; 1% 17Kt; 3% 18Kt; 6% 6% 35Kt; 11% 18Kt; 16Kt; 5% 6% 292Kton 313Kton 60Kt; 19% 190Kt; 61% 236Kt; 81% 3Kt; 1% 17
Slide 18: EBITDA increased by 22% in 1Q 2018 YoY
EBITDA increased by 22% in 1Q 2018 YoY 1.600 40,0% EBITDA ( MILLION USD ) 1.400 32,0% 31,5% 32,0% 1.200 30,8% 29,2% 1.000 23,2% 24,0% 800 17,6% 1.496 16,0% 600 400 895 770 8,0% 200 458 438 359 0 0,0% 2017 2018 2017 2017 2016 2015 4. Quarter 1. Quarter EBITDA EBITDA Margin NET PROFIT ( MILLION USD )
Slide 19: EBITDA was 438 million USD in 1Q 2018
EBITDA was 438 million USD in 1Q 2018 Consolidated EBITDA => Consolidated Net Profit (Million USD) 19
Slide 20: EBITDA was 438 million USD in 1Q 2018
EBITDA was 438 million USD in 1Q 2018 Consolidated EBITDA => Consolidated Net Cash (Million USD) 20
Slide 21: EBITDA per ton for main product was 197 USD/ton in 1Q 2018
EBITDA per ton for main product was 197 USD/ton in 1Q 2018 EBITDA PER TON (USD/TON) * 197 174 179 141 143 138 120 119 105 96 85 51 43 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2015 2016 2017 2018 Main Product 21 * One-off income/expense items are excluded.
Slide 22: Consolidated net assets were 4,6 billion USD at the end of 1Q 2018
Consolidated net assets were 4,6 billion USD at the end of 1Q 2018 CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD) 22
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) 1.640 1.472 693 1.283 1.114 1.190 1.129 1.023 891 368 654 828 753 947 529 581 655 14 460 362 376 2013 2014 2015 2016 2017 2018 3M (190) (675) (1.094) Long-Term Debt Short-Term Debt Net Debt 23
Slide 24: There was 1.094 million USD net cash at the end of 1Q 2018
There was 1.094 millon USD net cash at the end of 1Q 2018 NET DEBT (MILLION USD) 24
Slide 25: Erdemir has 2.223 million USD cash and cash equivalents at the end of 1Q 2018
Erdemir has 2.223 million USD cash and cash equivalents at the end of 1Q 2018 BORROWINGS MATURITY PROFILE (MILLION USD) 725 2.223 15 530 166 148 12 7 50 39 21 180 154 3 2 1 141 47 37 20 Mar. 18 2018 2018 2019 2020 2021 2022 2023 Cash Apr.-Dec. Principal Revolving Trade Financing Loans Interest 25
Slide 26: Raw materials made up 75% of the cost of sales
Raw materials made up 75% of the cost of sales COST OF SALES BREAKDOWN* - % 6% 6% 7% 5% 4% 0,2% 5% 0,2% 0,2% 5% 0,3% 5% 5% 7% 7% 9% 11% 8% 12% 14% 75% 73% 70% 64% 2018 3M 2017 2016 2015 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expens
Slide 27: Capital expenditures was 39 million USD in 1Q 2018
Capital expenditures was 39 million USD in 1Q 2018 ( M USD ) 1.017 634 961 576 264 242 200 201 208 158 162 162 162 171 159 143 113 165 107 82 110 140 39 56 59 57 93 83 55 80 88 17 52 43 9 30 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3M Fixed Assets Acquisition and Maintenance Capit
Slide 28: Number of employees was 11.844 as of March 2018
Number of employees was 11.844 as of March 2018 NUMBER OF EMPLOYEES 12.872 12.801 12.659 12.277 11.975 11.844 2013 2014 2015 2016 2017 2018 March 28
Slide 29: OYAK Mining Metallurgy Group
29 @yax) | MINING METALLURGY GROUP
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