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 2018 Earnings Presentation
29 slides from Eregli Demir Ve Celik Fabrikalari T.a.s's earnings presentation, Oct 25, 2018
Slide 1: ING METALLURGY
ING METALLURGY UP @vx) |
Slide 2: 2018 9 Months Investor Presentation
2018 9 Months Investor Presentation 25.10.2018
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: 2018 Market Overview
e 2018 Market Overview @ x) MINING METALLURGY YAK |e ROUP
Slide 5: Crude Steel Production by Region (% yoy)
5 10,0% 15,0% -5,0% 0,0% 5,0% -10,0% Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 10,0% 15,0% -5,0% 0,0% 5,0% -10,0% Aug-17 Sep-16 Sep-17 Oct-16 Oct-17 Nov-16 Nov-17 Dec-16 Dec-17 Jan-17 Jan-18 Feb-17 Feb-18 Mar-17 Mar-16 EU28 Crude Steel Production (% yoy) Crude Stee
Slide 6: Coking Coal, Iron Ore & Scrap Prices
6 100 150 200 250 300 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 150 200 250 300 350 400 Oct-16 Nov-17 Nov-16 Dec-17 Coking Coal Prices Dec-16 Jan-18 Jan-17 Feb-18 Feb-17 Mar-18 Mar-17 Apr-18 Apr-17 May-18 (HCC Peak Downs Region FOB Australia) May-17 J
Slide 7: Turkish Steel Production & Consumption
Turkish Steel Production & Consumption Production (mn tons) 36.9 36.9 39.2 36.4 36.1 9.9 10.4 10.4 10.9 13.0 +4.7% 25.6 26.8 8.4 10.3 26.5 25.7 26.5 26.0 26.2 17.2 16.5 2013 2014 2015 2016 2017 8M 2017 8M 2018 Consumption (mn tons) 36.1 34.4 34.1 31.3 30.8 17.7 +0.4% 14.6 16.5 16.5 14.6 23.0 23.1 11
Slide 8: Turkish Steel Exports & Imports
Turkish Steel Exports & Imports Exports (mn tons) 15.2 14.4 14.1 +6.1% 2.3 13.1 13.4 0.1 1.6 2.5 4.3 9.9 10.5 0.6 2.6 3.1 0.0 0.3 0.3 0.7 0.1 3.0 3.6 0.5 0.3 11.3 11.0 10.2 10.0 9.3 6.3 6.6 2013 2014 2015 2016 2017 8M 2017 8M 2018 Imports (mn tons) 18.1 16.5 2.9 1.6 15.3 14.0 +4.1% 13.0 2.4 2.3 1.8
Slide 9: 2018 9M Results
2018 9M Results @ @ x) MINING METALLURGY YAK |e ROUP
Slide 10: Operational and Financial Highlights
Operational and Financial Highlights Operational Highlights 2016 2017 9M 2017 9M 2018 Growth (YoY) Liquid Steel Production (000 tons) 9,373 9,392 6,998 6,949 -0.7% Flat Steel Production* (000 tons) 7,072 7,713 5,728 5,887 2.8% Long Steel Production (000 tons) 1,572 1,328 993 684 -31.1% Flat Steel Sh
Slide 11: Liquid Steel Production (000 tons)
Liquid Steel Production (000 tons) 9,122 9,373 9,392 6,998 6,949 2,318 2,316 2,233 2015 2016 2017 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 11
Slide 12: Crude Steel Capacity Utilization Ratio
Crude Steel Capacity Utilization Ratio 100% 97% 97% 96% 96% 93% 78% 76% 72% 70% 69% 2013 2014 2015 2016 2017 9M 2018 Erdemir World* 12 As of August 2018, Worldsteel no longer publishes global capacity utilization ratio for anti-trust reasons. Source: Worldsteel
Slide 13: Production (000 tons)
Production (000 tons) HRC production increased by 7.8% YoY in Q3 2018. 8,963 9,041 8,644 1,563 1,328 1,572 1,822 1,820 6,721 6,571 1,781 993 684 1,356 1,304 2,229 2,164 2,197 366 201 232 5,891 447 435 438 5,580 5,291 4,372 4,583 1,416 1,528 1,527 2015 2016 2017 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 201
Slide 14: Sales Volume (000 tons)
Sales Volume (000 tons) HRC sales increased by 3.3% YoY in 9M 2018. 8,781 8,750 8,958 1,364 1,552 1,587 1,908 6,596 1,845 1,860 6,247 1,006 656 1,418 1,282 2,220 2,013 2,048 362 173 234 5,686 464 429 395 5,384 5,303 4,172 4,309 1,394 1,411 1,419 2015 2016 2017 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018
Slide 15: Net Sales Revenue (USD mn)
Net Sales Revenue (USD mn) Net sales revenue increased by 14.2% YoY in 9M 2018. 5,115 4,382 733 435 3,855 +14,2% 517 4.225 3.701 812 557 +10,6% 4,382 1.423 1.380 3,947 1.248 3,338 114 282 326 3.144 3.413 1.134 1.141 1.054 2015 2016 2017 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 Export Domestic 15
Slide 16: Flat & Long Steel Domestic Sales Breakdown
Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 13% 11% (578) (542) 18% 19% Pipe&Profile and Rolling (838) 4,769K ton (852) 4,536K ton 51% 52% 9M 2018 (2.334) Distribution Chains 9M 2017 (2.503) General Manufacturing Industry 17% Automotive 19% (772) (886) Long Steel Domestic Sa
Slide 17: Steel Exports Breakdown By Region
Steel Exports Breakdown By Region 1% (9) 3% 4% 9% (31) 6% (34) (102) (60) 2% 6% (16) 7% (59) (83) EU MENA 10% 1,110K North America (93) 948K 9M 2018 Asia 9M 2017 South America Other 72% 80% (686) (885) 17
Slide 18: EBITDA & Net Profit
EBITDA & Net Profit EBITDA (USD mn) EBITDA Margin (%) 32.3% 28.1% 23.2% 29.2% 17.6% 33.8% 32.2% +31,4% 27.0% 1,496 1.364 770 895 1.038 481 445 337 2015 2016 2017 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 Net Profit (USD mn) Net Profit Margin (%) 20.1% 19.3% 20.2% 9.4% 13.0% 18.1% 24.7% 16.0% +19.5% 1,
Slide 19: EBITDA to Net Profit
EBITDA Net Profit 1.364 1.280 120 (140) 56 (510) (38) 852 EBITDA Depreciation Interest Inc. Operating Finance Tax Inc./(Exp.) Non-Controlling Net Profit 9M 2018 from Overdue Income Inc./(Exp.) Interests 9M 2018 Sales- Rediscount Inc./(Exp.) Net 19
Slide 20: EBITDA to Net Cash
EBITDA Net Cash 1.364 (418) 23 48 (357) (163) 497 (23) (16) (660) (66) (268) EBITDA Changes Interest Interest Taxes Paid Net Cash Free Cash Contribution Credit Dividend Other Change 9M 2018 in Working Inc. from Inc./(Exp.) used in Flow to the Usage/ Paid in Cash Capital Overdue Net Investing Capital
Slide 21: EBITDA per Ton (USD/ton)
EBITDA per Ton* (USD/ton) 223 219 197 174 179 138 141 143 120 105 96 85 119 51 43 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q3 2018 Q2 2018 Main Product 21 *One-off income/expense items are excluded.
Slide 22: Financial Figures
Financial Figures Consolidated Net Assets (USD mn) 31.12.2017 30.09.2018 Growth (Year-to-Date) Cash and Cash Equivalents 1,865 1,597 -14% Working Capital 1,740 2,158 24% Tangible and Intangible Assets 3,549 3,540 -0% Financial Liabilities (1,190) (1,175) -1% Provisions and Other (866) (904) 4% Net A
Slide 23: Financial Borrowings (USD mn)
Financial Borrowings (USD mn) 693 1,283 891 368 654 828 868 947 529 581 655 460 362 307 14 (422) (190) (675) 2013 2014 2015 2016 2017 9M 2018 Net Debt Short-Term Debt Long-Term Debt 23
Slide 24: Net Debt (USD mn)
Net Debt (USD mn) 497 (660) 675 (90) 422 Net Cash Free Cash Flow Dividend Paid Other Net Cash Dec. 2017 Sep. 2018 24
Slide 25: Borrowings Maturity Profile (USD mn)
Borrowings Maturity Profile (USD mn) 1,597 625 16 304 410 6 205 149 199 8 51 39 22 93 141 47 4 37 2 1 21 Sep. 2018 Oct.-Dec. 2019 2020 2021 2022 2023 Cash 2018 Principal Revolving Trade Financing Loans Interest 25
Slide 26: Cost of Sales Breakdown (%)
Cost of Sales Breakdown* (%) 5 7 6 6 5 7 5 5 5 7 8 4 12 11 9 Raw Materials 14 Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. 70 73 76 64 Other 2015 2016 2017 9M 2018 Raw Materials Breakdown (%) 27 24 20 21 13 12 13 13 Iron Ore&Pellet 27 27 35 34 Coal Scrap Other 33 3
Slide 27: Capital Expenditures (USD mn)
Capital Expenditures (USD mn) 1,017 634 961 576 264 242 200 201 208 158 171 162 162 162 153 159 113 143 107 82 110 165 83 140 56 59 57 93 83 55 80 88 52 43 70 17 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M 2018 Capital Expenditures Fixed Assets Acquisition 27
Slide 28: Number of Employees
Number of Employees 12,801 12,872 12,659 12,277 11,975 11,655 2013 2014 2015 2016 2017 Sep. 2018 28
Slide 29: Erdemir Investor Relations
Erdemir Investor Relations investorrelations@erdemir.com.tr https://www.erdemir.com.tr/investor-relations/ +90 216 578 80 61 29
Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) — 9M 2018 Earnings Presentation on 6ix