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) — 9M 2017 Earnings Presentation

29 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Oct 26, 2017

  1. Slide 1: Maden Metalurji OYAK Grubu

    MADEN METALURJI OYAK | GRUBU

  2. Slide 2: 2017 9 Months Consolidated Results

    2017 9 Months Consolidated Results 26 October 2017 2

  3. 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

  4. Slide 4: 2017 Market Overview; 2017 9M Results

    ˃ 2017 Market Overview ˃ 2017 9M Results 4

  5. Slide 5: Crude steel production in EU28, CIS and China

    5 -5% -10% 0% 5% 10% 15% Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 -8% -6% -12% -10% -4% -2% 0% 2% 4% 6% 8% 10% May-16 in September YoY Sep-14 Jul-16 Nov-14 Sep-16 Jan-15 Nov-16 Mar-15 Jan-17 May-15 Mar-17 EU28 CRUDE STEEL PRODUCTION ( YoY % ) Jul-15 May-17 Sep-15 Jul-17

  6. Slide 6: Iron ore price decreased to 61 USD/ton at October 2017

    Iron ore price decreased to 61 USD/ton at October 2017 COKING COAL PRICES IRON ORE PRICES USD/TON (HCC PEAK DOWNS REGION FOB AUSTRALIA) (IODEX 62% FE CFR NORTH CHINA MID) USD/TON 310 100 90 260 80 210 70 160 60 50 110 40 60 30 04.2016 06.2016 08.2016 10.2016 12.2016 02.2017 04.2017 06.2017 08.2017 1

  7. Slide 7: Turkish steel production increased by 3% in 2017 8M YoY

    Turkish steel production increased by 3% in 2017 8M YoY PRODUCTION ( MILLION TONS ) 36,9 36,9 36,1 36,4 34,3 10,9 10,4 10,4 9,9 9,0 25,6 24,8 8,4 7,0 26,0 26,5 25,7 26,5 25,3 17,2 17,8 2016 2015 2014 2013 2012 2017 8M 2016 8M Long Flat CONSUMPTION ( MILLION TONS ) 34,1 34,4 30,8 31,3 28,5 16,5 23,0

  8. Slide 8: Turkish iron and steel product exports increased by 11% in 2017 8M YoY

    Turkish iron and steel product exports increased by 11% in 2017 8M 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 9,9 2,5 3,0 8,9 3,1 2,6 0,6 1,6 0,1 0,0 0,3 0,3 3,0 1,8 0,5 0,2 10,0 10,2 11,0 11,3 11,7 6,3 6,9 2016 2015 2014 2013 2012 2

  9. Slide 9: 2017 Market Overview; 2017 9M Results

    ˃ 2017 Market Overview ˃ 2017 9M Results 9

  10. Slide 10: Erdemir Group Key Figures

    ERDEMİR GROUP KEY FIGURES 2017 9M 2016 9M 2016 2015 Liquid Steel Production (000 Tons) 6.998 6.932 9.373 9.122 (*) Flat Steel Production (000 Tons) 5.728 5.359 7.072 7.400 Long Steel Production (000 Tons) 993 1.131 1.572 1.563 Flat Steel Shipments (000 Tons) 5.590 5.217 7.163 7.229 Long Steel Shipme

  11. Slide 11: Liquid steel production was 7,0 million tons in 9M 2017

    Liquid steel production was 7,0 million tons in 9M 2017 LIQUID STEEL PRODUCTION ( 000 TONS ) 9.373 9.122 8.693 6.998 6.932 2.350 2.362 2.330 2.242 2.318 2.328 2017 2016 2017 2016 2017 2016 2017 2016 2016 2015 2014 1. Quarter 2. Quarter 3. Quarter 9 Months 11

  12. 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% 73% 70% 69% 70% 65% 2012 2013 2014 2015 2016 2017 9M Erdemir World 12 Source: Worldsteel

  13. Slide 13: Production was 6,7 million tons in 9M 2017

    Production was 6,7 million tons in 9M 2017 PRODUCTION VOLUMES ( 000 TONS ) 8.644 8.963 8.107 1.563 1.572 1.153 6.721 6.490 1.820 993 1.781 1.746 1.131 1.356 1.388 2.215 2.217 2.277 2.112 2.229 2.161 5.291 5.580 5.208 298 396 329 366 342 4.372 3.971 443 393 466 458 447 469 461 1.451 1.363 1.505 1.258

  14. Slide 14: Sales volume was 6,6 million tons in 9M 2017

    Sales volume was 6,6 million tons in 9M 2017 SALES VOLUMES ( 000 TONS ) 8.750 8.781 8.096 1.587 1.552 1.163 6.596 6.345 1.006 1.860 1.845 1.788 1.128 1.418 1.376 2.289 2.302 2.163 2.220 5.303 5.384 2.074 1.893 5.145 398 343 384 363 4.172 300 491 346 3.841 463 502 494 464 380 1.311 1.389 1.468 1.285

  15. Slide 15: Net sales revenue increased by 36% in 9M 2017 YoY

    Net sales revenue increased by 36% in 9M 2017 YoY NET SALES REVENUE ( MILLION USD ) 5.252 627 4.382 3.855 435 3.683 517 557 2.709 326 4.625 3.947 1.135 1.307 1.241 3.126 3.338 875 180 263 922 114 912 2.383 93 118 115 955 1.044 804 1.127 782 797 2017 2016 2017 2016 2017 2016 2017 2016 2016 2015 2014

  16. Slide 16: 11% of flat steel sales are made to automotive sector

    11% of flat steel sales are made to automotive sector in 9M 2017 9M 2017 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 9M 2016 FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 542Kt; 520Kt; 11% 11% 838Kt; 879Kt; 18% 19% 4.769Kton 2.503Kt; 4.656Kton 2.459Kt; 52% 53% 886Kt; 19% 798Kt; 17% 9M 2017 LONG STEEL DOMESTIC

  17. Slide 17: Main product sales to EU countries was 72% of export

    Main product sales to EU countries was 72% of our export in 9M 2017 9M 2017 STEEL EXPORTS BREAKDOWN (%) 9M 2016 STEEL EXPORTS BREAKDOWN (%) 34Kt; 22Kt; 59Kt; 4% 67Kt; 3% 6% 10% 16Kt 60Kt; 2% 6% 93Kt; 342Kt; 10% 948Kton 707Kton 48% 686Kt 208Kt; 72% 29% 68Kt; 10% 17

  18. Slide 18: Net profit increased by 114% in 9M 2017 YoY

    Net profit increased by 114% in 9M 2017 YoY 1.200 EBITDA ( MILLION USD ) 40,0% 1.000 1.136 32,0% 31,6% 30,5% 800 26,2% 27,1% 28,2% 895 23,2% 770 24,0% 1.038 21,9% 21,6% 600 20,6% 17,6% 16,0% 400 14,2% 593 200 359 343 8,0% 190 336 279 0 124 0,0% 2017 2016 2017 2016 2017 2016 2017 2016 2016 2015 2014

  19. Slide 19: EBITDA was 1.038 million USD in 9M 2017

    EBITDA was 1.038 million USD in 9M 2017 Consolidated EBITDA => Consolidated Net Profit (Million USD) 19

  20. 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

  21. Slide 21: EBITDA per ton for main product was 143 USD/ton in 2017 3Q

    EBITDA per ton for main product was 143 USD/ton in 2017 3Q EBITDA PER TON (USD/TON) * 174 143 143 137 137 138 128 119 141 120 105 96 85 51 43 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2014 2015 2016 2017 Main Product 21 * One-off income/expense items are excluded.

  22. Slide 22: Net assets were 4,8 billion USD as of September 2017

    Net assets were 4,8 billion USD as of September 2017 CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD) 22

  23. 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 1.099 891 1.023 1.114 368 654 1.344 707 947 529 581 655 460 392 14 (190) (408) 2012 2013 2014 2015 2016 2017 Sep. Long-Term Debt Short-Term Debt Net Debt 23

  24. Slide 24: Net debt was positive at the end of 9M 2017

    Net debt was positive at the end of 9M 2017 NET DEBT (MILLION USD) 24

  25. Slide 25: Erdemir has 1.506 million USD cash at end of 9M 2017

    Erdemir has 1.506 million USD cash and cash equivalents at the end of 9M 2017 BORROWINGS MATURITY PROFILE (MILLION USD) 524 1.506 16 231 290 6 150 134 116 9 5 36 218 109 141 129 2 34 Sep. 17 2017 2018 2019 2020 2021 Cash Oct.- Dec. Principal Revolving Trade Financing Loans Interest 25

  26. Slide 26: Raw materials made up 73% of the cost of sales

    Raw materials made up 73% of the cost of sales COST OF SALES BREAKDOWN* - % 6% 6% 5% 0,3% 5% 0,7% 5% 0,2% 0,2% 5% 5% 7% 5% 8% 7% 7% 11% 12% 12% 14% 73% 70% 71% 65% 2017 9M 2016 2015 2014 Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expen

  27. Slide 27: Capital expenditures was 115 million USD in 9M 2017

    Capital expenditures was 115 million USD in 9M 2017 ( M USD ) 1.017 718 634 961 445 675 576 264 242 377 200 201 158 162 162 162 171 159 143 113 115 107 82 110 140 83 68 56 59 57 93 83 55 80 88 52 32 43 17 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M Fixed Assets Acquisition an

  28. Slide 28: Number of employees was 11.943 as of September 2017

    Number of employees was 11.943 as of September 2017 NUMBER OF EMPLOYEES 13.045 12.872 12.801 12.659 12.277 11.943 2012 2013 2014 2015 2016 2017 Sep. 28

  29. Slide 29: Maden Metalurji OYAK Grubu

    29 MADEN METALURJIi OYAK) | crusu

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — 9M 2017 Earnings Presentation on 6ix