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 2017 Earnings Presentation
29 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Aug 8, 2017
Slide 1: 1
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Slide 2: 2017 6 Months Consolidated Results
2017 6 Months Consolidated Results 8 August 2017 2
Slide 3: Disclaimer
DISCLAMIER 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: 2017 Market Overview, 2017 6M Results
˃ 2017 Market Overview ˃ 2017 6M Results 4
Slide 5: EU28, CIS and China crude steel production YoY
5 -5% -10% 0% 5% 10% 15% Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 in June (YoY) Oct-15 Dec-15 -8% -6% -12% -10% -4% -2% 0% 2% 4% 6% 8% 10% Feb-16 Jun-14 Apr-16 Aug-14 Jun-16 Oct-14 Aug-16 Dec-14 Oct-16 Feb-15 Dec-16 EU28 CRUDE STEEL PRODUCTION ( YoY % ) Apr-15 Feb-17 Jun-15 Apr-17 Aug
Slide 6: Coking coal price increased to 180 USD/ton at end of July 2017
Coking coal price increased to 180 USD/ton at the end of July 2017 COKING COAL PRICES IRON ORE PRICES USD/TON (HCC PEAK DOWNS REGION FOB AUSTRALIA) USD/TON (IODEX 62% FE CFR NORTH CHINA MID) 310 100 90 260 80 210 70 160 60 50 110 40 60 30 01.2016 03.2016 05.2016 07.2016 09.2016 11.2016 01.2017 03.20
Slide 7: Turkish steel consumption decreased by 10% in 2017 6M YoY
Turkish steel consumption decreased by 10% in 2017 6M YoY PRODUCTION ( MILLION TONS ) 36,9 36,9 36,1 36,4 34,3 10,9 10,4 10,4 9,9 9,0 18,8 18,8 6,3 5,2 26,0 26,5 25,7 26,5 25,3 12,5 13,6 2016 2015 2014 2013 2012 2017 6M 2016 6M Long Flat CONSUMPTION ( MILLION TONS ) 34,1 34,4 30,8 31,3 28,5 16,5 16,
Slide 8: Turkish iron and steel product exports increased by 21% in 2017 6M YoY
Turkish iron and steel product exports increased by 21% in 2017 6M YoY IRON AND STEEL PRODUCT EXPORTS ( MILLION TONS ) 16,5 15,2 14,1 0,02 13,4 13,1 0,00 0,04 1,8 0,00 0,00 2,3 8,0 2,5 3,0 6,6 3,1 2,6 0,6 1,6 0,1 0,3 0,3 2,3 0,00 1,3 0,5 0,1 10,0 10,2 11,0 11,3 11,7 5,1 5,2 2016 2015 2014 2013 2012
Slide 9: 2017 Market Overview, 2017 6M Results
˃ 2017 Market Overview ˃ 2017 6M Results 9
Slide 10: Erdemir Group Key Figures
ERDEMİR GROUP KEY FIGURES 2017 6M 2016 6M 2016 2015 Liquid Steel Production (000 Tons) 4.680 4.604 9.373 9.122 (*) Flat Steel Production (000 Tons) 3.865 3.540 7.072 7.400 Long Steel Production (000 Tons) 627 789 1.572 1.563 Flat Steel Shipments (000 Tons) 3.723 3.670 7.163 7.229 Long Steel Shipment
Slide 11: Liquid steel production was 4,7 million tons in 1H 2017
Liquid steel production was 4,7 million tons in 1H 2017 LIQUID STEEL PRODUCTION ( 000 TONS ) 9.373 9.122 8.693 4.680 4.604 2.350 2.362 2.330 2.242 2017 2016 2017 2016 2017 2016 2016 2015 2014 1. Quarter 2. Quarter 1. Half 11
Slide 12: Crude steel capacity utilization ratio higher than world average
Crude steel capacity utilization ratio of Erdemir is higher than the world average CRUDE STEEL CAPACITY UTILIZATION RATIO 105% 100% 100% 97% 97% 96% 95% 93% 90% 88% 85% 80% 78% 78% 76% 75% 72% 70% 69% 70% 65% 2012 2013 2014 2015 2016 2017 6M Erdemir World 12 Source: Worldsteel
Slide 13: Production was 4,5 million tons in 1H 2017
Production was 4,5 million tons in 1H 2017 PRODUCTION VOLUMES ( 000 TONS ) 8.963 8.644 8.107 1.563 1.572 1.153 1.820 1.781 1.746 4.492 4.329 627 789 909 919 2.215 2.217 2.277 2.112 5.291 5.580 5.208 298 396 329 393 466 458 443 461 2.956 2.621 1.451 1.363 1.505 1.258 2017 2016 2017 2016 2017 2016 201
Slide 14: Sales volume was 4,4 million tons in 1H 2017
Sales volume was 4,4 million tons in 1H 2017 SALES VOLUMES ( 000 TONS ) 8.750 8.781 8.096 1.587 1.552 1.163 1.860 1.845 1.788 4.366 4.452 643 782 944 996 2.289 2.296 2.163 5.303 5.384 5.145 2.070 398 343 384 300 485 459 502 494 2.779 2.674 1.311 1.389 1.468 1.285 2017 2016 2017 2016 2017 2016 2016 2
Slide 15: Net sales revenue increased by 36% in 1H 2017 YoY
Net sales revenue increased by 36% in 1H 2017 YoY NET SALES REVENUE ( MILLION USD ) 5.252 627 4.382 3.855 435 517 2.442 443 4.625 1.797 3.947 1.135 1.307 211 3.338 875 180 263 922 93 1.999 118 1.586 955 782 1.044 804 2017 2016 2017 2016 2017 2016 2016 2015 2014 1. Quarter 2. Quarter 1. Half Domestic
Slide 16: 13% of flat steel sales are made to automotive sector
13% of flat steel sales are made to automotive sector in 1H 2017 6M 2017 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 6M 2016 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 369Kt; 371Kt; 13% 11% 538Kt; 609Kt; 17% 19% 3.078Kton 1.616Kt; 3.289Kton 1.701Kt; 52% 52% 555Kt; 18% 608Kt; 18% 6M 2017 LONG STEEL DOMESTIC
Slide 17: Main product sales to EU countries was 64% of export
Main product sales to EU countries was 64% of our export in 1H 2017 6M 2017 STEEL EXPORTS BREAKDOWN (%) 6M 2016 STEEL EXPORTS BREAKDOWN (%) 55Kt; 15Kt; 7% 3% 41Kt; 54Kt; 5% 11% 81Kt; 11% 207Kt; 16Kt 2% 43% 759Kton 483Kton 83Kt; 163Kt; 11% 483Kt 34% 64% 44Kt; 9% 17
Slide 18: Net profit increased by 195% in 1H 2017 YoY
Net profit increased by 195% in 1H 2017 YoY 1.200 EBITDA ( MILLION USD ) 40,0% 1.000 32,0% 31,6% 1.136 800 28,7% 26,2% 895 24,0% 23,2% 770 21,6% 600 20,6% 702 17,5% 17,6% 16,0% 400 14,2% 200 359 343 314 8,0% 124 190 0 0,0% 2017 2016 2017 2016 2017 2016 2016 2015 2014 1. Quarter 2. Quarter 1. Half EB
Slide 19: EBITDA was 702 million USD in 1H 2017
EBITDA was 702 million USD in 1H 2017 Consolidated EBITDA => Consolidated Net Profit (Million USD) 19
Slide 20: 391 million USD dividend was paid on April 7, 2017
391 million USD dividend was paid on April 7, 2017 Consolidated EBITDA => Consolidated Net Cash (Million USD) 20
Slide 21: EBITDA per ton for main product was 141 USD/ton in 2Q
EBITDA per ton for main product was 141 USD/ton in 2017 2Q EBITDA PER TON (USD/TON) * 174 143 137 137 138 128 119 141 120 105 96 85 51 43 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2014 2015 2016 2017 Main Product 21 * One-off income/expense items are excluded.
Slide 22: Net assets were 4,5 billion USD as of June 2017
Net assets were 4,5 billion USD as of June 2017 CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD) 22
Slide 23: Despite high dividend payments, there is no net debt
Despite the high dividend payments, there is no net debt BORROWINGS (MILLION USD) 2.479 1.135 1.640 1.452 1.472 693 1.283 891 1.023 1.114 1.001 368 654 1.344 625 947 529 581 655 460 376 14 (64) (190) 2012 2013 2014 2015 2016 2017 June Long-Term Debt Short-Term Debt Net Debt 23
Slide 24: Net debt was positive at the end of 1H 2017
Net debt was positive at the end of 1H 2017 NET DEBT (MILLION USD) 24
Slide 25: Erdemir has 1.065 million USD cash at end of 1H 2017
Erdemir has 1.065 million USD cash and cash equivalents at the end of 1H 2017 BORROWINGS MATURITY PROFILE (MILLION USD) 1.065 369 333 9 12 176 150 147 8 100 3 34 184 171 139 2 97 32 June 17 2017 2018 2019 2020 2021 Cash July-Dec. Principal Revolving Trade Financing Loans Interest 25
Slide 26: Raw materials made up 74% of the cost of sales
Raw materials made up 74% of the cost of sales COST OF SALES BREAKDOWN* - % 5% 0,2% 6% 5% 0,3% 5% 5% 0,2% 5% 5% 0,7% 5% 7% 8% 7% 7% 11% 12% 12% 14% 74% 70% 71% 65% 2017 6M 2016 2015 2014 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expen
Slide 27: Capital expenditures of 595 million USD planned for 2017
Capital expenditures of 595 million USD is planned for 2017* ( M USD ) 1.017 718 634 595 961 445 675 458 576 264 242 377 200 201 158 162 162 162 171 159 143 113 107 82 110 68 140 137 68 59 93 83 80 88 52 46 43 56 57 55 22 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 (B) 6
Slide 28: Number of employees was 12.019 as of June 2017
Number of employees was 12.019 as of June 2017 NUMBER OF EMPLOYEES 13.045 12.872 12.801 12.659 12.277 12.019 2012 2013 2014 2015 2016 2017 June 28
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