Months Investor Presentation

Transcription

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2 Months Investor Presentation

3 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 information through its Disclosure Policy and has shared such policy with the public through the Erdemir website, in accordance with the Capital Markets Board regulations. As stated in related policy, information contained in forward-looking statements, whether verbal or written, should not include unrealistic assumptions or forecasts. It should be noted that, actual results could materially differ from estimates taking into account the fact that they are not based on historical facts but are driven from expectations, beliefs, plans, targets and other factors which are beyond the control of our Company. As a result, forwardlooking statements should not be fully trusted or taken as granted. Forward-looking statements should be considered valid only considering the conditions prevailing at the time of the announcement. In cases where it is understood that forward-looking statements are no longer achievable, such matter will be announced to the public and the statements will be revised. However, the decision to make a revision is a result of a subjective evaluation. Therefore, it should be noted that, when a party is coming to a judgement based on estimates and forward-looking statements, our Company may not have made a revision at that particular time. Our Company makes no commitment to make regular revisions which would fully cover changes in every parameter. New factors may arise in the future which may not be possible to foresee at this moment in time. 3

4 2018 Market Overview

5 Sep-16 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 Nov-17 Dec-17 Jan-18 Feb-18 Mar-16 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Sep-16 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 Nov-17 Dec-17 Jan-18 Feb-18 Mar-16 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Sep-16 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 Nov-17 Dec-17 Jan-18 Feb-18 Mar-16 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Crude Steel Production 15,0% EU28 Crude Steel Production (% yoy) 15,0% China Crude Steel Production (% yoy) 10,0% 10,0% 5,0% 5,0% 0,0% 0,0% -5,0% -5,0% -10,0% -10,0% 15,0% CIS Crude Steel Production (% yoy) 10,0% 5,0% 0,0% -5,0% -10,0% 5 Source: Worldsteel

6 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 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 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 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 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 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Coking Coal, Iron Ore & Scrap Prices Coking Coal Prices (HCC Peak Downs Region FOB Australia) Iron Ore Prices (IODEX 62% Fe CFR North China Mid) Scrap Prices (HMS CFR Turkey Mid) Source: Platts / IODEX

7 Turkish Steel Production & Consumption Production (mn tons) % M M 2018 Consumption (mn tons) % M M 2018 Flat Long 7 Source: TSPA

8 Turkish Steel Exports & Imports Exports (mn tons) % M M 2018 Imports (mn tons) % M M 2018 Slab Flat Steel Billet Long Steel 8 Source: TSPA

9 2018 9M Results

10 Operational and Financial Highlights Operational Highlights M M 2018 Growth (YoY) Liquid Steel Production (000 tons) 9,373 9,392 6,998 6, % Flat Steel Production* (000 tons) 7,072 7,713 5,728 5, % Long Steel Production (000 tons) 1,572 1, % Flat Steel Shipments (000 tons) 7,163 7,594 5,590 5, % Long Steel Shipments (000 tons) 1,587 1,364 1, % Financial Highlights M M 2018 Growth (YoY) Net Sales Revenue (USD mn) 3,855 5,115 3,701 4, % EBITDA (USD mn) 895 1,496 1,038 1, % Net Profit (USD mn) 502 1, % All figures are on IFRS consolidated basis unless stated otherwise. (*) Total flat steel production of Ereğli and İskenderun Plants. 10

11 Liquid Steel Production (000 tons) 9,122 9,373 9,392 6,998 6,949 2,318 2,316 2, M M 2018 Q Q Q

12 Crude Steel Capacity Utilization Ratio 93% 96% 100% 97% 97% 96% 78% 76% 70% 69% 72% M 2018 Erdemir World* 12 As of August 2018, Worldsteel no longer publishes global capacity utilization ratio for anti-trust reasons. Source: Worldsteel

13 Production (000 tons) HRC production increased by 7.8% YoY in Q ,963 1,563 8,644 1,572 9,041 1,328 1,820 1,781 1,822 6,721 6, ,580 5,291 5,891 1,356 4,372 1,304 4,583 2,229 2,164 2, ,416 1,528 1, M M 2018 Q Q Q Hot Cold Long 13 Slab production for 3rd parties was included in HRC production.

14 Sales Volume (000 tons) HRC sales increased by 3.3% YoY in 9M ,781 8,750 8,958 1,552 1,587 1,364 1,845 1,860 1,908 6,596 1,006 6, ,384 5,303 5,686 1,418 4,172 1,282 4,309 2,220 2,013 2, ,394 1,411 1, M M 2018 Q Q Q Hot Cold Long 14 Slab sales for 3rd parties were included in HRC sales.

15 Net Sales Revenue (USD mn) Net sales revenue increased by 14.2% YoY in 9M ,115 4, ,947 3, , , ,2% ,6% M M 2018 Q Q Q Export Domestic 15

16 Flat & Long Steel Domestic Sales Breakdown Flat Steel Domestic Sales 13% (578) 11% (542) 19% (852) 4,536K ton 9M % (2.334) Pipe&Profile and Rolling Distribution Chains General Manufacturing Industry 18% (838) 4,769K ton 9M % (2.503) 17% (772) Automotive 19% (886) Long Steel Domestic Sales 33% (195) 601K ton 9M % (146) 43% Rebar and Profile Producers (260) General Manufacturing Industry High Carbon and Special Qualities 23% (199) 23% (207) 879K ton 9M % (473) 16

17 Steel Exports Breakdown By Region 7% (83) 1% (9) 9% (102) 3% (31) 1,110K 9M % (885) EU MENA North America Asia South America Other 10% (93) 6% (59) 6% (60) 4% (34) 2% (16) 948K 9M % (686) 17

18 EBITDA & Net Profit EBITDA (USD mn) 17.6% 23.2% EBITDA Margin (%) 29.2% 28.1% +31,4% 32.3% 33.8% 27.0% 32.2% , M M 2018 Q Q Q Net Profit (USD mn) Net Profit Margin (%) 9.4% 13.0% 20.1% 19.3% 20.2% +19.5% 18.1% 24.7% 16.0% , M M 2018 Q Q Q

19 EBITDA Net Profit (140) (510) (38) 852 EBITDA 9M 2018 Depreciation Interest Inc. from Overdue Sales- Rediscount Inc./(Exp.) Net Operating Income Finance Inc./(Exp.) Tax Inc./(Exp.) Non-Controlling Interests Net Profit 9M

20 EBITDA Net Cash (418) (357) (163) 497 (23) (16) (660) (66) (268) EBITDA 9M 2018 Changes in Working Capital Interest Inc. from Overdue Sales Interest Inc./(Exp.) Net Taxes Paid Net Cash used in Investing Activities Free Cash Flow Contribution to the Capital Increase of Linde Gaz A.Ş. Credit Usage/ (Payment) Net Dividend Paid Other Change in Cash 9M

21 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q EBITDA per Ton* (USD/ton) Main Product 21 *One-off income/expense items are excluded.

22 Financial Figures Consolidated Net Assets (USD mn) 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 Assets 5,098 5,216 2% Working Capital (USD mn) Growth (Year-to-Date) Trade Receivables % Inventories 1,336 1,553 16% Trade Payables (250) (265) 6% Other (31) % Working Capital 1,740 2,158 24% 22

23 Financial Borrowings (USD mn) , (190) (675) (422) M 2018 Net Debt Short-Term Debt Long-Term Debt 23

24 Net Debt (USD mn) (660) (90) 422 Net Cash Dec Free Cash Flow Dividend Paid Other Net Cash Sep

25 Borrowings Maturity Profile (USD mn) 1, Sep Cash Oct.-Dec Principal Revolving Trade Financing Loans Interest 25

26 Cost of Sales Breakdown* (%) Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Other M 2018 Raw Materials Breakdown (%) Iron Ore&Pellet Coal Scrap Other M * Excluding inventory writedowns and provision released.

27 Capital Expenditures (USD mn) 1, M 2018 Capital Expenditures Fixed Assets Acquisition 27

28 Number of Employees 12,872 12,801 12,659 12,277 11,975 11, Sep

29 29 Erdemir Investor Relations