Emsteel Building Materials Pjsc · ADX:EMSTEEL
Emsteel Building Materials Pjsc — Emirates Steel Arkan (EMSTEEL) — Investor Presentation (May 2023)
32 slides from Emsteel Building Materials Pjsc's investor presentation, May 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION May 2023
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER These materials have been prepared by Emirates Steel This presentation may contain, or may be deemed to Arkan (“EMSTEEL” or the “Company”). The Company relies contain, information on future plans, objectives and goals on information obtained from sources believed to be and the inclu
Slide 3: Table of Contents
TABLE OF CONTENTS Business Overview 4 Key ESG Credentials 10 Growth Strategy 15 Board and Executive Committee 19 Financial and Operational Results FY22 22 Appendix 28 3
Slide 4: Business Overview
LSi CatyLodI a1a9 emirates steel arkan BUSINESS OVERVIEW Va
Slide 5: Quick Facts About the Group
QUICK FACTS ABOUT THE GROUP EMSTEEL is among the top 30% cheapest steel Merged in Oct 2021 Crude steel Steel assets utilizing mills on the global cost curve production latest DRI capacity: technology, Steel rebar production costs $/t (2021 data) 15 years old 1000 3.5 mtpa 800 600 FY22 400 200 Revenu
Slide 6: Geographic Footprint
GEOGRAPHIC FOOTPRINT Steel sales, FY22: The Group exports UAE steel market share: steel products to 60% of rebar and wire more than rod 80% of heavy 70 countries. sections and sheet piles. 6
Slide 7: Our Product Lines
OUR PRODUCT LINES A leading producer of A prominent wire rod The largest producer of heavy The only producer of Rebar in Coils provides high-quality rebar with a producer in the GCC with and jumbo sections in the GCC hot rolled sheet piles greater efficiencies and production capacity of a production
Slide 8: Our Steel Division
OUR STEEL DIVISION Plants, Production Process and Products 01 DIRECT STEEL 03 FINISHED REDUCTION MAKING PRODUCTS PROCESS ROLLING 02 04 Three Direct Reduction Plants Three Steel Making Plants Heavy Section Mill, Three Rebar, Wire Rod, Sheet Piles with a capacity of 4.2 MTPA with a capacity of 3.6 MTP
Slide 9: Our Cement Division
OUR CEMENT DIVISION Al Ain Cement Factory 01 RAW 03 LIMESTONE GRINDING & GRINDING, QUARRY BURNING STORAGE, PACKING, DISPATCH 02 1. EXTRACTION : 1. RAW GRINDING : 1. GRINDING : The raw materials used to manufacture The raw materials are very finely The clinker and the gypsum are very finely cement (l
Slide 10: Key ESG Credentials
Lyi CayLowI 229 emirates steel arkan
Slide 11: EMSTEEL Is Well Positioned for CO2-Conscious Market
EMSTEEL IS WELL POSITIONED FOR CO2-CONSCIOUS MARKET EMSTEEL is operating state-of-art, low-carbon-footprint On the demand side, there is growing momentum in CO2-related production facilities based on direct-reduced iron (DRI) initiatives led by steel buyer coalitions, such as SteelZero in EU. • Stee
Slide 12: Actively Implementing Industry-Leading Sustainability Program
… ACTIVELY IMPLEMENTING INDUSTRY-LEADING SUSTAINABILITY PROGRAM EMSTEEL is the world’s first steel company to capture its CO2 emissions. Partnership with ADNOC and Masdar allows us to accumulate up to 800 kt of CO2/year as part of Carbon Capture Utilization and Storage (CCUS). This way around 30% of
Slide 13: Firmly Set to Further Improve Its CO2 Footprint in Future
… AND FIRMLY SET TO FURTHER IMPROVE ITS CO2 FOOTPRINT IN FUTURE EMSTEEL has joined the UAE Climate-Responsible 1st Green Steel Project in MENA region Companies Pledge, an initiative by the Ministry of Climate Change and the Environment, which aims to EMSTEEL has signed an MOU with TAQA, to develop a
Slide 14: Focus on People – The Bedrock of EMSTEEL
FOCUS ON PEOPLE – THE BEDROCK OF EMSTEEL World Steel Association Avg vs. EMSTEEL LTI Rate 1.50 1.17 EMSTEEL believes that health and safety of employees 1.01 0.97 is one of the key indicators of a successful and 1.00 0.84 0.83 0.85 0.81 0.81 0.67 0.71 0.76 balanced ESG program. 0.50 In 2022 Lost Tim
Slide 15: Growth Strategy
Lyi CayLowI 229 emirates steel arkan GROWTH STRATEGY Va
Slide 16: EMSTEEL Strategy: Vision and Value Pillars
EMSTEEL STRATEGY: VISION AND VALUE PILLARS Vision: ➢ To be the region's steel and building materials champion ➢ To deliver value to our shareholders ➢ To invest in innovation enhancing customers possibilities ➢ To lead from the front towards a sustainable and circular economy Maximize Diversify Inte
Slide 17: Strategy: Maximize Current Business Value
STRATEGY: MAXIMIZE CURRENT BUSINESS VALUE Case study: Namaa’ Sustainability projects in 2022 Vivid example of this Value Pillar is the Namaa’ project: • Namaa’ project is part of business transformation process which consolidates all of company’s business improvement ideas (operational and commercia
Slide 18: Strategy: Integrated Iron Ore Value Chain
STRATEGY: 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. TYO : 8001 Subsidiary of JFE Holdings, Inc. – TYO: 5411 One of the largest Japanese corp
Slide 19: Board and Executive Committee
BOARD AND EXECUTIVE COMMITTEE
Slide 20: Board of Directors
BOARD OF DIRECTORS Hamad Abdulla Jamal Eng. Saeed Mohamed Salem Al Ghumran Nabeel AlShorafa Alhammadi Dhaheri Alremeithi Qadir CHAIRMAN VICE CHAIRMAN BOARD MEMBER BOARD MEMBER GROUP CEO • Alhammadi brings a wealth of expertise in • Al Dhaheri has more than 25 years of • Alremeithi has extensive expe
Slide 21: Executive Committee
EXECUTIVE COMMITTEE Eng. Saeed Stephen Jasem Ghumran J Pope Mohamed Al Eng. Hassan Salim Alremeithi Khateri Shashaa CHIEF STRATEGY & GROUP CEO CHIEF FINANCIAL CHIEF HUMAN TRANSFORMATIO OFFICER CAPITAL N OFFICER OFFICER • Alremeithi has a vast experience spanning • Pope brings a wealth of experience
Slide 22: Financial and Operational Results FY22
FINANCIAL AND OPERATIONAL RESULTS FY22
Slide 23: Overview of FY 2022 Results
OVERVIEW OF FY 2022 RESULTS Revenue The growth of Group’s Revenue was supported by efforts to diversify sources AED 9.5bn of income, driven by an expansion of Company’s international footprint to +10% YoY 70 countries from 56 in 2021, a 25% increase EBITDA AED 1.2bn “Namaa” cost reduction and transf
Slide 24: FY 2022 Operational & Financial Results
FY 2022 OPERATIONAL & FINANCIAL RESULTS STEEL CEMENT & CLINKER FINANCIAL RESULTS Production, kt Production, kt Revenue, AED bn EBITDA (AED mn) & EBITDA +10% Margin 3,211 3,244 +51% 3,021 2,894 2,722 2,711 2,653 9.5 2,486 8.6 1.2 2,275 2,141 1,832 5.8 0.8 1,568 0.2 12.6% 3.4% 9.3% 2020 2021 2022 2020
Slide 25: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets, AED mn 2022 2021 Equity and Liabilities, AED mn 2022 2021 Non-current assets Net equity 7,728 7,179 PPE 6,904 7,239 Non-current liabilities Goodwill - 14 Lease liabilities 461 480 Right-of-use assets 381 451 Provision for employees' end of service
Slide 26: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AED mn 2022 2021 Revenue 9,453 3,022 Cost of sales (8,483) (2,745) Gross profit 969 277 Selling and distribution expenses (53) (51) General and administrative expenses (358) (163) Other income 28 8 Share of profit/(loss) of associates 8 (23) Impairment of los
Slide 27: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS AED mn 2022 2021 Cash flows from operating activities Operating cash flows before movements in working capital 1,179 316 Net movements in working capital 303 513 Cash generated from operations 1,482 829 Employees' end of service benefit paid (12) (6) Net cash gen
Slide 28: Appendix
Lyi CayLowI 229 emirates steel arkan APPENDIX /
Slide 29: Merger Recap
MERGER RECAP In October 2021,Emirates Steel and Arkan merged to create the UAE’s largest listed steel and building materials group with potential for growth internationally. The Group leverages cutting-edge rolling mill technologies to supply the domestic and international markets with high quality
Slide 30: Merger Recap: Key Milestones
MERGER RECAP: KEY MILESTONES • Arkan listed on ADX • ACF* construction starts Arkan Dry Mortar ACF April 27 Arkan Operation Starts operation starts August 9 Adopting ‘Emirates Steel Arkan’ inception Arkan General Assembly as interim brand and trading approves merger ticker change to EMSTEEL 2006 200
Slide 31: 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 Ferrari World AD International Airport Guggenheim Museum 31
Slide 32: Thank You
THANK YOU Investor Relations: Gleb Diachkov-Gertcev Head of Investor Relations ir@emiratessteel.com
Emirates Steel Arkan (EMSTEEL) — Investor Presentation (May 2023) on 6ix