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) — FY2020 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Feb 11, 2021
Slide 1: Erdemir Mining Metallurgy
MINING OYAK, | METALLURGY
Slide 2: 2020 12 Months Investor Presentation
2020 12 Months Investor Presentation 11.02.2021
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: 2020 Market Overview
e 2020 Market Overview MINING OYAK, | METALLURGY
Slide 5: Crude Steel Production by Region (% yoy)
5 10.0% 15.0% -35.0% -30.0% -25.0% -20.0% -15.0% -5.0% -10.0% 0.0% 5.0% Dec. 18 Jan.19 Feb. 19 Mar.19 Apr.19 May.19 Jun.19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 10.0% 15.0% -5.0% -15.0% -10.0% 0.0% 5.0% Nov. 19 Dec. 18 Dec. 19 Jan.19 Jan. 20 Feb. 19 Feb. 20 Mar.19 Mar.20 Apr.19 Apr.20 May.19 May.20 Jun.19
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 150 200 250 Feb-19 USD/TON Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 150 200 250 300 350 400 450 500 Feb-20 Feb-19 Mar-20 USD/TON Mar-19 Apr-20 Coking Coal Prices Apr-19 May-20 May-19 Jun-20 Jun-19 Jul-20 Jul-19 Aug-20 Aug-19 Sep-20 (HCC Peak Downs Region
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) +9.2% 36.9 36.9 39.0 38.6 36.8 33.7 10.4 10.9 13.1 13.9 13.9 13.5 26.5 26.0 25.9 24.7 22.9 20.2 2015 2016 2017 2018 2019 2020 Consumption (mn tons) 34.4 34.1 35.9 +13.1% 30.7 29.4 17.8 26.0 16.5 16.5 15.3 15.7 15.2 17.9 17.6 18.1 15.4 10.8
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 16.6 1.0 1.3 13.4 14.4 0.7 13.1 0.3 0.8 6.1 5.8 0.3 5.8 2.6 3.1 4.3 10.2 10.0 9.3 10.7 10.5 10.1 2015 2016 2017 2018 2019 2020 Imports (mn tons) 18.1 16.5 15.3 7.9 13.6 6.2 4.8 12.0 12.5 4.8 3.4 4.0 8.6 8.7 9.0 7.5 7.5 7.5 1.6 1.6 1.5 1.3 1
Slide 9: 2020 12M Results
2020 12M Results @ MINING OYAK, | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2018 2019 2020 Growth (YoY) Liquid Steel Production (000 tons) 9,322 8,787 8,709 -0.9% Flat Steel Production* (000 tons) 7,743 7,257 7,266 0.1% Long Steel Production (000 tons) 980 1,026 992 -3.3% Flat Steel Shipments (000 tons) 7,482 7,250
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,392 9,322 8,787 8,709 2,204 2,363 2,089 2017 2018 2019 2020 Q4 2019 Q3 2020 Q4 2020 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 96% 91% 89% 2014 2015 2016 2017 2018 2019 2020 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Production increased by 2.0% YoY in Q4 2020. 9,041 8,723 1,328 8,283 8,258 980 1,026 992 1,822 1,701 1,637 1,775 +2.0% 2,199 2,062 2,022 323 219 5,891 6,042 5,620 270 5,491 482 457 449 1,303 1,394 1,386 2017 2018 2019 2020 Q4 2019 Q3 2020 Q4 2020 Hot Cold Long Slab production f
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales volume increased by 13.1% YoY in Q4 2020. 8,958 8,401 8,307 8,495 1,364 919 1,057 1,006 1,908 1,750 1,696 1,952 +13.1% 2,226 2,326 2,056 232 277 321 536 5,686 5,732 5,554 5,537 453 552 1,326 1,353 1,558 2017 2018 2019 2020 Q4 2019 Q3 2020 Q4 2020 Hot Cold Long 14
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 17.7% YoY in Q4 2020. 5,598 5,140 1,163 4,844 733 4,575 1,030 786 +17.7% 4,407 4,435 1,310 3,814 3,789 1,113 1,137 187 212 185 952 1,123 901 2017 2018 2019 2020 Q4 2019 Q3 2020 Q4 2020 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 11% 13% (661) (744) 19% Pipe&Profile and Rolling 18% (1,161) 6,157K ton Distribution Chains (1,055) 5,746K ton 55% 12M 2019 57% 12M 2020 General Manufacturing Industry (3,415) (3,257) Automotive 15% 12% (920) (690) Long Steel Domes
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 16.5% 1,631 13.4% 1,402 18.5% 1,199 16.4% 13.6% 381 364 317 2017 2018 2019 2020 Q4 2019 Q3 2020 Q4 2020 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 29.1% 30.7% 20.1% 21.6% 26.5% 23.0% 11.6% 1,496 1,720 974 989 347 261 129 2017 2018 2019 2020 Q4 2019 Q3 2020 Q4 2020 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 19.6% 12.1% 10.3% 3.3% 7.2% 1,030 1,160 257 585 472 36 82 2017 2018 2019
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) 989 (214) 796 21 10 (12) (293) (29) 472 EBITDA Depreciation Share Transfer Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 12M 2020 Agreement Income Activities Inc./(Exp.) Controlling 12M 2020 Receivable Inc./(Exp.) Interests Income 19
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 25 (255) 305 989 (429) 647 12 (119) (385) (83) 60 EBITDA Changes Interest Taxes Paid Net Cash used Cash Flow Free Cash Dividend Paid Credit Usage/ Other Change 12M 2020 in Working Inc./(Exp.) in Investing from Financial Flow (Payment) Net in Cash Capital Net Activities Inves
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 172 144 141 143 139 145 119 124 117 95 103 67 Q4 2016 Q1 2017 Q2 2017 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 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2019 31.12.2020 Growth (YoY) Cash Equivalents and Financial Investments 1,800 1,850 3% Working Capital 1,729 1,424 -18% Tangible and Intangible Assets 3,581 3,657 2% Financial Liabilities (1,296) (899) -31% Provisions and Other (554) (430) -22
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 368 654 829 930 897 510 655 460 362 325 351 14 266 (190) (482) (528) (675) (984) 2015 2016 2017 2018 2019* 2020* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Debt (USD mn)
Net Debt (USD mn) (119) (72) 984 647 528 Net Cash Free Cash Flow Dividend Paid Other Net Cash Dec. 2019 Dec. 2020 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,845 531 29 395 218 4 214 37 21 19 18 107 36 1 1 1 0 20 18 18 2020 Cash 2021 2022 2023 2024 2025 2026 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 6 5 7 7 5 5 5 5 5 5 6 6 11 9 7 8 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 73 76 75 74 Other 2017 2018 2019 2020 Raw Materials Breakdown (%) 20 22 20 20 12 12 11 11 Iron Ore&Pellet 35 35 34 28 Coal Scrap 41 Other 33 31
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 306 264 242 251 208 216 200 201 171 162 162 162 159 285 113 132 216 143 82 165 107 110 93 83 80 88 84 57 55 52 43 35 21 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures are
Slide 28: Number of Employees
Number of Employees 12,659 12,277 11,975 11,607 11,538 11,428 2015 2016 2017 2018 2019 2020 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2020- 01.01.2020- Note 31.12.2020 31.12.2020 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 7.0055 Operating Profit 795,547 5,573,200 Depreciation and Amortisation Expenses 214,745 1,504,388 Cost of Sales 24 199,061 1,394,505 Marketing Expenses 26
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) — FY2020 Earnings Presentation on 6ix