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. — H1 2021 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Aug 9, 2021
Slide 1: Mining – OYAK Metallurgy
MINING OYAK | METALLURGY
Slide 2: 2021 6 Months Investor Presentation
2021 6 Months Investor Presentation 09.08.2021
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: 2021 Market Overview
e 2021 Market Overview MINING OYAK | METALLURGY
Slide 5: Crude Steel Production (% yoy)
5 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% Jun.19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 Feb. 20 Mar.20 Apr.20 -5% -15% 0% 5% -10% 10% 15% 20% May.20 Jun.19 Jun.20 Jul. 19 Jul. 20 Aug. 19 Aug. 20 Sep. 19 Sep. 20 Oct. 19 Oct. 20 Nov. 19 Nov. 20 Dec. 19 Dec. 20 EU28 Crude Steel Prod
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 50 100 150 200 250 Jul-19 USD/TON Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 200 300 400 500 600 Jul-20 Jul-19 Aug-20 USD/TON Aug-19 Sep-20 Coking Coal Prices Sep-19 Oct-20 Oct-19 Nov-20 Nov-19 Dec-20 Dec-19 Jan-21 Jan-20 Feb-21 (HCC Peak Downs Region FOB Australi
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 36.9 39.0 38.6 36.8 33.7 10.9 13.1 13.9 13.9 +23.2% 13.5 20.7 16.8 7.6 26.0 25.9 24.7 22.9 6.6 20.2 10.2 13.1 2016 2017 2018 2019 2020 6M 2020 6M 2021 Consumption (mn tons) 34.1 35.9 30.7 29.4 26.0 +29.9% 16.5 17.8 15.3 17.4 15.7 15.2 13.4
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 16.6 1.0 1.3 +17.7% 13.4 14.4 0.7 0.3 0.8 6.1 5.8 9.3 5.8 7.9 3.1 4.3 0.6 0.4 2.8 2.8 10.0 9.3 10.7 10.5 10.1 4.7 5.9 2016 2017 2018 2019 2020 6M 2020 6M 2021 Imports (mn tons) 16.5 15.3 13.6 6.2 4.8 12.0 12.5 +34.4% 4.8 4.0 8.2 3.4 6.1 2.8
Slide 9: 2021 6M Results
2021 6M Results @ MINING OYAK | METALLURGY
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2019 2020 6M 2020 6M 2021 Change (6M) Liquid Steel Production (000 tons) 8,787 8,709 4,257 4,590 7.8% Flat Steel Production* (000 tons) 7,257 7,266 3,546 3,744 5.6% Long Steel Production (000 tons) 1,026 992 450 404 -10.2% Flat Steel Shipme
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) Liquid steel production increased by 13.4% YoY in Q2 2021. +7.8% 9,322 8,787 8,709 +13.4% 4,257 4,590 1,974 2,352 2,238 2018 2019 2020 6M 2020 6M 2021 Q2 2020 Q1 2021 Q2 2021 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 94% 91% 89% 2015 2016 2017 2018 2019 2020 6M 2021 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) Production increased by 5.4% YoY in Q2 2021. 8,723 8,283 8,258 980 1,026 992 +3.8% 1,701 1,637 1,775 4,148 3,996 450 404 836 936 +5.4% 2,018 2,021 2,127 6,042 186 208 196 5,620 5,491 432 470 466 2,710 2,808 1,400 1,347 1,461 2018 2019 2020 6M 2020 6M 2021 Q2 2020 Q1 2021 Q2 202
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) Total sales volume increased by 2.0% YoY in 6M 2021. 8,401 8,307 8,495 919 1,057 1,006 +2.0% 1,750 1,696 1,952 3,943 4,023 453 380 863 946 2,020 2,011 2,012 186 204 176 441 499 447 5,732 5,554 5,537 2,627 2,697 1,393 1,308 1,389 2018 2019 2020 6M 2020 6M 2021 Q2 2020 Q1 2021
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 60.2% YoY in Q2 2021. 5,598 1,163 4,844 4,575 +48.2% 1,030 786 3,153 535 2,128 +60.2% 414 1,732 4,435 1,421 3,814 3,789 360 2,618 1,081 175 1,714 281 1,246 1,372 800 2018 2019 2020 6M 2020 6M 2021 Q2 2020 Q1 2021 Q2 2021 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 13% 19% (407) (541) Pipe&Profile and Rolling 20% 49% 10% (621) 3,037 kton (1,477) Distribution Chains (282) 2,803 kton 6M 2021 6M 2020 57% General Manufacturing Industry (1,592) Automotive 14% 18% (388) (532) Long Steel Domestic Sa
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 16.5% 1,631 18.3% 1,402 15.4% 721 25.3% 619 20.2% 512 10.6% 406 213 2018 2019 2020 6M 2020 6M 2021 Q2 2020 Q1 2021 Q2 2021 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 30.7% 20.1% 21.6% 38.3% 37.0% 39.3% 17.9% 19.0% 1,720 1,207 681 974 989 526 381 205 2018 2019 2020 6M 2020 6M 2021 Q2 2020 Q1 2021 Q2 2021 Net Profit* (USD mn) Net Profit Margin (%) 20.7% 12.1% 10.3% 25.0% 22.1% 23.4% 7.8% 6.3% 1,160 382 738 355
Slide 19: EBITDA to Net Profit (USD mn)
EBITDA Net Profit (USD mn) 1.207 (112) 1.096 57 0 (1) (382) (32) 738 EBITDA Depreciation Interest Inc. Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 6M 2021 (Exp.) in Other Income Activities Inc./(Exp.) Controlling 6M 2021 Operating Inc. Inc./(Exp.) Interests (Exp.) 19
Slide 20: EBITDA to Net Cash (USD mn)
EBITDA Net Cash (USD mn) 1,207 (452) 16 (175) (242) 354 (827) 177 (294) (66) (656) EBITDA Changes Interest Taxes Paid Net Cash Free Cash Dividend Credit Usage/ Subsidiary Other Change 6M 2021 in Working Inc./(Exp.) used in Flow Paid (Payment) Acquisition in Cash Capital Net Investing Net 6M 2021 Act
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 336 250 223 219 197 179 172 143 144 141 139 145 124 117 95 103 67 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 Q1 2021 Q2 2021 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2020 30.06.2021 Change Cash Equivalents and Financial Investments 1,850 1,186 -36% Working Capital 1,424 1,876 32% Tangible and Intangible Assets 3,657 3,900 7% Financial Liabilities (899) (1,075) 20% Provisions and Other 58 19 -67% Goodwill -
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 654 829 897 930 554 510 460 362 325 351 485 266 (190) (146) (482) (528) (675) (984) 2016 2017 2018 2019* 2020* 6A 2021* Net Debt Short-Term Debt Long-Term Debt 23 *TFRS 16 Leases are excluded.
Slide 24: Net Cash (USD mn)
Net Cash (USD mn) 354 984 (827) (294) (71) 146 Net Cash Free Cash Flow Dividend Paid Subsidiary Other Net Cash Dec. 2020 Acquisition Jun. 2021 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,185 366 9 267 200 13 120 150 254 10 5 157 145 46 46 110 44 2 44 2 June 2021 Jul.- Dec. 2022 2023 2024 2025 2026 Cash 2021 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 5 7 7 6 5 5 5 5 5 6 6 6 9 7 8 7 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 76 75 74 76 Other 2018 2019 2020 6M 2021 Raw Materials Breakdown (%) 22 20 20 16 12 11 11 13 Iron Ore&Pellet 34 28 24 Coal 35 Scrap 35 41 47 Othe
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 306 264 242 251 208 216 201 177 171 162 162 162 159 285 113 132 216 82 165 107 110 160 93 83 80 88 84 55 52 43 35 21 17 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 6M 2021 Capital Expenditures Fixed Assets Acquisition * Advance payments for capital expenditures a
Slide 28: Number of Employees
Number of Employees 12,277 11,975 12,341 11,607 11,428 11,538 2016 2017 2018 2019 2020 Jun. 2021 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2021- 01.01.2021- Note 30.06.2021 30.06.2021 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 7.8648 Operating Profit 1,095,523 8,616,069 Depreciation and Amortisation Expenses 111,704 878,521 Cost of Sales 14 102,824 808,685 Marketing Expenses 15 4,
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
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