Emsteel Building Materials Pjsc · ADX:EMSTEEL
Emsteel Building Materials Pjsc — EMSTEEL Group — Investor Presentation (May 2025)
35 slides from Emsteel Building Materials Pjsc's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
Investor Presentation May 2025
Slide 2: Table of Contents
TABLE OF CONTENTS Business Overview 4 Key ESG Credentials 11 Market Context 15 Growth Strategy 20 Board and Executive Committee 24 Financial and Operational Highlights 27 Appendix 32 EMSTEEL GROUP
Slide 3: Business Overview
Business Overview EMSTEEL GROUP 4
Slide 4: Quick facts about the Group
Quick facts about the Group Key Finished Steel Products Located in UAE Steel Steel assets - Abu Dhabi production Cement plant - Al Ain capacity: 3.5 mtpa DRI + EAF Technology Revenue split FY24 10% Revenue of AED 8.3 bn Rebar Wire rod 90% EBITDA of AED 0.9 bn Steel Cement Ownership structure Cement
Slide 5: Merger Recap: Key Milestones
Merger Recap: Key Milestones • Arkan listed on ADX • ACF** construction starts Arkan Dry Mortar August 9 April 27 Arkaninception ACF Operation Starts Arkan General Assembly approves Adopting ‘Emirates Steel Arkan’ as interim brand and operation starts merger trading ticker change to EMSTEEL 2006 200
Slide 6: Our Product Lines
Our Product Lines A leading producer of high- A prominent wire rod The largest producer of heavy The only producer of Rebar in Coils provides quality rebarwith a producer in the GCC with a and jumbo sections in the GCC hot-rolled sheet piles in the greater efficiencies and production capacity of pro
Slide 7: EMSTEEL use of DRI technology
EMSTEEL use of DRI technology Different steel production routes and relative CO2 Scope 1 emission intensity (without EAF) HOT BRIQUETTED IRON (HBI) -> -> -> MATERIAL HANDLING DIRECT REDUCTION PLANT (DRP) JETTY AREA IRON PELLETS DIRECT REDUCTION PROCESS Unloading of iron pellets stocked in yards to r
Slide 8: Geographic Footprint
Geographic Footprint The Group contributes 10% of Abu Dhabi’s non-oil manufacturing United Arab Emirates output and exports steel products to • Abu Dhabi – Steel Division more than 70 countries. • Al Ain – Cement Division UAE steel market share, FY24 : 60% of rebar and wire rod. 70% of heavy section
Slide 9: Some of the projects we are proud of
Some of the projects we are proud of Burj Khalifa Sheikh Zayed Bridge Dubai Metro Khalifa Port Suez Canal Fulham Football Ground Louvre Abu Dhabi Yas Island Emirates Palace Barakah Nuclear Power Plant AD International Airport Guggenheim Museum EMSTEEL GROUP 10
Slide 10: Key ESG Credentials
Key ESG Credentials 11
Slide 11: First Steelmaker Worldwide to Capture its CO2 Emissions
First Steelmaker Worldwide to Capture its CO2 Emissions CO2 Al Reyadah CCUS Molten steel EMSTEEL is the world’s first steel company to capture its CO2 emissions. Partnership with ADNOC allows us to accumulate up to 800 kt of CO2/year as part of Carbon Capture Utilization and Storage (CCUS). This way
Slide 12: Actively implementing an industry-leading sustainability program
… Actively implementing an industry-leading sustainability program EMSTEEL is constantly working to deliver on its sustainability commitment. In 2022 we reduced Scope 1&2 emissions from our steel business by 35% YoY. This was partially driven by securing clean energy from solar and nuclear sources t
Slide 13: Well positioned for CO2-conscious market
… and well positioned for CO2-conscious market EMSTEEL is operating state-of-art, low-carbon-footprint production On the demand side, there is growing momentum in CO2-related facilities based on direct-reduced iron (DRI) initiatives led by steel buyer coalitions, such as SteelZero in EU. • SteelZero
Slide 14: Market Context
Market Context 15
Slide 15: Long-term factors influencing steel demand
Long-term factors influencing steel demand Major trends in the global steel industry UAE Growth Strategy Geopolitics The UAE steel and cement demand is Increased trade barriers supported by nation-wide strategies: Global steel overcapacity • “We, the UAE 2031” Vision • Double the country’s gross dom
Slide 16: Global market conditions impacting marginality of steel producers
Global market conditions impacting marginality of steel producers Global Steel Demand in 2024 has decreased Global Iron Ore prices remained relatively elevated over the last twelve month, including Q1’25, exerting consistent cost pressure on steel producers by ▼-2.2%, YoY Iron Ore Fines 65% Fe, CFR
Slide 17: UAE steel market outperforms within GCC
UAE steel market outperforms within GCC supported by strong pipeline of projects GCC Steel Demand in 2024 has increased by ▲+11%, YoY Buildings’ construction projects awards in the UAE have reached USD 50bn in 2024 with UAE leading the growth at ▲+20%, YoY Projects value, USD bn 17 High Rise (15+) M
Slide 18: UAE Energy Support Program (ESP)
UAE Energy Support Program (“ESP”) According to World Steel Association energy (incl. electricity) constitutes a significant portion of the cost of steel production, from 20% to 40%. In this context it’s important that Abu Dhabi Government incentivizes manufacturing entities, that suffice certain cr
Slide 19: Growth Strategy
Growth Strategy 20
Slide 20: EMSTEEL's Strategy to succeed in an evolving market
EMSTEEL’s Strategy to succeed in an evolving market Vision Strategy Pillars To be the region's steel and building materials Maximize Current Diversify Product Integrated Iron Ore champion Business Value Portfolio Value Chain To deliver value to our shareholders To invest in innovation enhancing cust
Slide 21: Maximize Current Business Value and Diversify Product Portfolio
Maximize Current Business Value and Diversify Product Portfolio Asset Enhancement Programme Phase 1 2025 - 2027 OVERVIEW • Completion scheduled for: Q2 2026 • Upgrading existing rolling mills ▪ Total CapEx: AED 625 million • Enabling production of high-strength rebars ▪ Context: Aligns with • Introd
Slide 22: Integrated Iron ore Value Chain
Integrated Iron ore Value Chain EMSTEEL has partnered with ITOCHU and JFE Steel to carry out feasibility studies to consider the construction of a ferrous raw material production facility in Abu Dhabi. Subsidiary of JFE Holdings, TYO : 8001 Inc. – TYO: 5411 One of the largest Japanese corporations L
Slide 23: Board and Executive Committee
Board and Executive Committee 24
Slide 24: Board of Directors
Board of Directors Hamad Abdulla Ahmed Ali Mohamed Eng. Saeed Ghumran Abdulaziz Abdulla Ismail Nabeel Qadir Fatima Abdulla Farah Abdulla Mohamed AlShorafa Ali Alshamsi Al Remeithi Mohamed Al Hajri Mohamed Sharif Mohamed Ali Al Hammadi Abdulla Al Fahim Al Mazrui CHAIRMAN VICE CHAIRMAN BOARD MEMBER BO
Slide 25: Executive Committee
Executive Committee Eng. Saeed Ghumran Mark Tonkens Eng. Saeed Khalfan Hugo Losada Eng. Hassan Salim Vladimir Arshinov Al Remeithi Al Ghafri Shashaa GROUP CEO GROUP CFO CEO, EMIRATES STEEL CEO, EMIRATES CEMENT GROUP CHIEF GROUP CHIEF PROJECT OFFICER TECHNOLOGY OFFICER Al Remeithi has over 21 Tonkens
Slide 26: Financial and Operational Highlights
Financial and Operational Highlights 27
Slide 27: Overview of FY 2024 results
Overview of FY 2024 results Revenue This decrease in Revenue is due to various factors, including fluctuations in global steel prices, increased AED 8.3bn competition, and changing demand trends driven by economic uncertainties in key markets. -6% YoY* EBITDA EMSTEEL’s FY24 profitability was support
Slide 28: FY 2024 Operational & Financial results
FY 2024 Operational & Financial results Steel Cement & Clinker Financial Results Production, kt Production, kt Revenue, AED bn EBITDA (AED mn) & EBITDA Margin 3,254 3,244 3,211 3,237 2,964 2,711 2,835 2,695 2,245 9.5 8.9 1.3 8.3 1.2 1,568 1,662 1,571 0.9 12.6% 14.2% 10.9% 2022 2023 2024 2022 2023 20
Slide 29: EMSTEEL strong operational performance in Q1'25
EMSTEEL strong operational performance in Q1’25 In Q1’24, EMSTEEL sold c. 100 kt of semi-finished products (billets). In Q1’ 25 EMSTEEL increased sales of finished steel products by In Q1’25, strong UAE demand and optimized capacity utilization enabled ▲+21%, YoY, supported by continued momentum in
Slide 30: Resilient financial results supported by improved capacity utilization
Resilient financial results supported by improved capacity utilization Despite decrease of average steel prices (▼-6% YoY) and the impact EBITDA reached AED 266 million, with an EBITDA margin of 12.3%. Margin from negligible sales of billets in Q1’25 (10% of Revenue in Q1’24), pressure from lower st
Slide 31: Appendix
Appendix 32
Slide 32: Consolidated statement of financial position
Consolidated statement of financial position Assets, AED mn Q1 2025 2024 2023 Equity and Liabilities Q1 2025 2024 2023 Non-current assets Net equity 8,806 8,720 8,332 PPE 6,340 6,416 6,564 Non-current liabilities Goodwill - - - Lease liabilities 321 321 333 Right-of-use assets 208 214 229 Provision
Slide 33: Consolidated statement of profit or loss
Consolidated statement of profit or loss AED mn Q1 2025 Q1 2024 2024 2023 Revenue 2,156 2,136 8,337 8,899 Cost of sales (1,916) (1,884) (7,578) (7,802) Gross profit 240 252 760 1,097 Selling and distribution expenses (11) (14) (44) (54) General and administrative expenses (120) (89) (417) (390) Othe
Slide 34: Consolidated statement of cash flows
Consolidated statement of cash flows AED mn Q1 2025 Q1 2024 2024 2023 Cash flows from operating activities Operating cash flows before movements in working capital 278 304 867 1,372 Net movements in working capital (397) (103) (174) 84 Cash generated from operations (120) 201 693 1,456 Employees' en
Slide 35: Thank You
THANK YOU Gleb Diachkov-Gertcev Director of Investor Relations ir@emsteel.com