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 2020 Earnings Presentation
30 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Apr 29, 2020
Slide 1: Mining Metallurgy
MINING METALLURGY Gi @ak ))
Slide 2: 2020 3 Months Investor Presentation
2020 3 Months Investor Presentation 29.04.2020
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
ERDEMIR 2020 Market Overview
Slide 5: Crude Steel Production (% yoy)
5 -5.0% 0.0% 5.0% -25.0% -20.0% -15.0% -10.0% Mar-18 Apr.18 May-18 Jun.18 Jul. 18 Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan.19 10.0% -5.0% -10.0% 0.0% 5.0% Feb. 19 Mar-18 Mar-19 Apr.18 Apr.19 May-18 May-18 Jun.18 Jun.19 Jul. 18 Jul. 19 Aug. 18 Aug. 19 Sep. 18 Sep. 19 EU28 Crude Steel Production (%
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 100 150 200 250 300 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 150 200 250 300 350 400 Apr-18 May-19 May-18 Jun-19 Coking Coal Prices Jun-18 Jul-19 Jul-18 Aug-19 Aug-18 Sep-19 Sep-18 Oct-19 Oct-18 Nov-19 (HCC Peak Downs Region FOB Australia) Nov-18 D
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 36.9 36.9 39.0 38.6 33.7 10.4 10.9 13.1 13.9 +22.0% 13.5 6.1 5.0 2.4 26.5 26.0 25.9 24.7 2.1 20.2 2.9 3.7 2015 2016 2017 2018 2019 2M 2019 2M 2020 Consumption (mn tons) 34.4 34.1 35.9 30.7 26.0 +45.7% 16.5 16.5 17.8 15.3 5.1 15.2 3.5 3.0 17
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 17.8 17.6 1.0 1.3 14.4 -9.7% 13.1 13.4 0.8 6.1 0.3 0.3 5.8 3.1 2.8 2.6 3.1 4.3 0.3 0.2 1.2 0.9 10.2 10.0 9.3 10.7 10.5 1.6 1.7 2015 2016 2017 2018 2019 2M 2019 2M 2020 Imports (mn tons) 18.1 16.5 15.3 13.6 +41.2% 7.9 6.2 12.0 4.8 2.4 4.8 3.4 1.7 0.8
Slide 9: 2020 3M Results
ERDEMIR 2020 3M Results
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2018 2019 3M 2019 3M 2020 Growth (YoY) Liquid Steel Production (000 tons) 9,322 8,787 2,369 2,284 -3.6% Flat Steel Production* (000 tons) 7,743 7,257 1,813 1,714 -5,5% Long Steel Production (000 tons) 980 1,026 315 264 -16.2% Flat Steel Shi
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,373 9,392 9,322 8,787 +3.6% 2,369 2,204 2,284 2016 2017 2018 2019 Q1 2019 Q4 2019 Q1 2020 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 97% 96% 93% 91% 2014 2015 2016 2017 2018 2019 Q1 2020 Erdemir 12
Slide 13: Production (000 tons)
Production (000 tons) 9,041 8,644 8,723 1,328 8,283 980 1,572 1,026 1,822 1,701 1,781 1,637 2,128 2,022 1,978 6,042 315 270 264 5,891 5,620 403 5,291 449 404 1,410 1,303 1,310 2016 2017 2018 2019 Q1 2019 Q4 2019 Q1 2020 Hot Cold Long Slab production for 3rd parties was included in 13 HRC production.
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) 8,750 8,958 8,401 8,307 1,364 1,587 919 1,057 1,908 1,750 1,696 1,860 2,223 2,056 1,923 336 277 451 267 5,303 5,686 5,732 5,554 453 422 1,436 1,326 1,234 2016 2017 2018 2019 Q1 2019 Q4 2019 Q1 2020 Hot Cold Long 14 Slab sales for 3rd parties were included in HRC sales.
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) 5,598 5,140 1,163 4,844 733 1,030 3,855 517 4,407 4,435 1,333 3,814 352 1,113 1,047 3,338 212 133 981 901 914 2016 2017 2018 2019 Q1 2019 Q4 2019 Q1 2020 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 12% 14% (183) (200) 19% Pipe&Profile and Rolling 17% (275) 1,465K ton (242) 1,427K ton Distribution Chains 54% 3M 2020 57% 3M 2019 (775) (827) General Manufacturing Industry 12% Automotive 15% (180) (210) Long Steel Domestic Sales
Slide 17: Export Volume (000 tons)
Export Volume (000 tons) 20.7% 19.4% 1,723 1,631 13.4% 12.4% 1,199 25.5% 1,086 18.5% 567 10.9% 381 209 2016 2017 2018 2019 Q1 2019 Q4 2019 Q1 2020 Export Share in Total Sales 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 29.1% 30.7% 23.2% 20.1% 24.3% 16.7% 11.6% 1,496 1,720 974 323 895 129 175 2016 2017 2018 2019 Q1 2019 Q4 2019 Q1 2020 Net Profit* (USD mn) Net Profit Margin (%) 20.0% 20.7% 13.0% 12.1% 14.0% 4.7% 3.3% 1,030 1,160 186 502 585 36 49 2016 2017 2018
Slide 19: EBITDA to Net Profit
EBITDA Net Profit 175 (49) 125 21 (1) (2) (91) (4) 49 EBITDA Depreciation Interest Operating Investing Finance Tax Inc./(Exp.) Non- Net Profit 3M 2020 Inc./(Exp.) Income Activities Inc./(Exp.) Controlling 3M 2020 on Other Inc./(Exp.) Interests Operating Inc./(Exp.) 19
Slide 20: EBITDA to Net Cash
EBITDA Net Cash (14) (36) (65) 197 (10) 247 (36) (23) 188 175 EBITDA Changes Interest Taxes Paid Net Cash used Cash Flow Free Cash Credit Usage/ Other Change 3M 2020 in Working Inc./(Exp.) in Investing from Financial Flow (Payment) Net in Cash Capital Net Activities Investments 3M 2020 20
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 172 138 141 143 139 145 124 95 85 119 67 43 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 Q2 2019 Q3 2019 Q4 2019 Q1 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 31.03.2020 Growth (YoY) Cash Equivalents and Financial Investments 1,800 1,996 11% Working Capital 1,729 1,532 -11% Tangible and Intangible Assets 3,581 3,569 0% Financial Liabilities (1,296) (1,246) 4% Provisions and Other (554) (552) 0%
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 368 654 829 930 897 900 655 460 362 325 307 266 14 (190) (482) (528) (675) (763) 2015 2016 2017 2018 2019* 1Q 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) 763 (12) 247 528 Net Cash Free Cash Flow Other Net Cash Dec. 2019 Mar. 2020 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,970 818 29 391 258 398 24 125 234 4 27 11 9 121 1 1 1 26 10 8 Mar. 2020 Apr. - Dec. 2021 2022 2023 2024 2025 Cash 2020 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 3M 2020 Raw Materials Breakdown (%) 20 22 20 20 12 12 11 11 Iron Ore&Pellet 35 35 34 31 Coal Scrap Other 33 31
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures* (USD mn) 264 251 242 208 216 200 201 171 162 162 162 159 113 132 216 143 82 165 107 110 46 93 83 80 88 84 57 55 52 43 42 35 4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3M 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 11,428 11,394 2015 2016 2017 2018 2019 Mar.2020 28
Slide 29: Appendix – EBITDA Detail
Appendix – EBITDA Detail 01.01.2020- 01.01.2020- Note 31.03.2020 31.03.2020 (Thousand USD) (Thousand TRY) Presentation Currency Translation 2.1 6.0924 Operating Profit 125,397 763,970 Depreciation and Amortisation Expenses 49,058 298,881 Cost of Sales 13 45,213 275,456 Marketing Expenses 14 1,682 10
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 2020 Earnings Presentation on 6ix