Eregli Demir ve Çelik Fabrikalari T : 2023 9 Months Presentation

3 Source: Platts / IODEX

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

200

250

300

350

400

450

500

550

600

650

700

USD/TON

(HMS CFR	Scrap
Turkey	Prices
Mid)

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

0	100	200	300	400	500	Coking Coal Prices USD/TON(HCC Peak Downs Region FOB 600	COMMODITY PRICES
						Australia)

HRC Black Sea Export HRC China Export HRC S. Europe Domestic

200

400

600

800

1.000

1.200

1.400

1.600

USD/TON

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

HRC Prices

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

50

100

150

200

USD/TON 250

(IODEX 62% Fe	Iron
CFR North	Ore Prices
China Mid)

TURKISH STEEL INDUSTRY

PRODUCTION (MN TONS)

25.624.4

9.88.8

15.815.6

8M 2022

8M 2023

CONSUMPTION (MN TONS)

26.1

22.2

13.3

12.3

9.912.8

8M 2022

8M 2023

EXPORTS (MN TONS)

11.0

3.5

			6.4
6.9		2.1
			4.2
	0.6
			0.1
8M 2022	8M 2023

IMPORTS (MN TONS)

12.4

10.2

6.6

6.1

1.4

0.9

3.24.4

8M 2022

8M 2023

4

Source: TSPA

Flat Steel

Long Steel

Semi-Product (Slab+Billet)

463 Million USD	10.1%
EBITDA	EBITDA Margin

5.3 Million Tons	5.2 Million Tons	4,570 Million USD
Total Production	Total Sales	Revenue

OPERATIONAL INDICATORS

LIQUID STEEL PRODUCTION (000 TONS)

6,142

5,080

1,944 1,994 1,862

Q3 2022	Q2 2023	Q3 2023	9M 2022	9M 2023

CRUDE STEEL CAPACITY UTILIZATION RATIO

91% 89% 94%

82%

69%

2019	2020	2021	2022	9M 2023

PRODUCTION (000 TONS)
							6,110
							617	5,290
						2,040	1,335		420
1,843	1,848	1,238
220
	138			140
				431
400		402
							4,158	3,632
1,305	1,306	1,389

SALES VOLUME (000 TONS)
							5,821
							623	5,213
							1,369	410
1,877				2,007	1,298
1,653	232
	164
				102		434
422
	402
							3,829	3,505
1,291				1,341
1,149

7

Q3 2022

Q2 2023

Q3 2023

9M 2022

9M 2023

Q3 2022

Q2 2023

Q3 2023

9M 2022

9M 2023

Long Cold Hot

DOMESTIC SALES BREAKDOWN AND EXPORT

FLAT STEEL DOMESTIC SALES (000 TONS)LONG STEEL DOMESTIC SALES (000 TONS)

			9M 23						9M 23
	Automotive						Rebar and Profile Producers
		13%							12%
		(563)							(42)
				9M 22						9M 22
		(14%)						15%
		(629)					(84)
				43%	Pipe&Profile and Rolling		23%
						(1,854)			14%	General Manufacturing Industry
	23%				(46%)
	(1,012)		23%		(2,007)					(80)	(84)
		(1,026)
								71%
		17%					65%	(396)
General Manufacturing Industry	(724)				High Carbon and Special Qualities	(239)

21%

(902)

8

Distribution Chains

EXPORT VOLUME (000 TONS)

			15.0%
16.6%					9.9%
		11.4%						Export
	9.9%							Share in Total Sales
			875
312		228			517
	163
Q3 2022	Q2 2023	Q3 2023		9M 2022	9M 2023

FINANCIAL INDICATORS

NET SALES REVENUE (USD MN)

										6,343
										1,064
														4,570
2,040				1,674					535
374	1,502
		199		5,279
1,666		185					4,035
		1,475
1,317
	Q3 2022	Q2 2023	Q3 2023				9M 2022	9M 2023
								Export			Domestic
EBITDA									25.8%
12.2%	14.0%	13.8%
										1,634	10.1%
249	210		231						463
	Q3 2022	Q2 2023	Q3 2023				9M 2022	9M 2023

EBITDA (USD mn)

EBITDA Margin (%)

9

EBITDA PER TON (USD/TON)

413	418
336	335 329

250

124	117	144	124	141 111
67 95 103		48
			8

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

NET PROFIT (LOSS)

14.8%

5.3%						936
109			0.2%
				3
	(183)						(175)	(3.8%)
						9M 2022	9M 2023
Q3 2022		Q2 2023	Q3 2023
	(12.2%)
		Net Profit (USD mn)	Net Profit Margin (%)

EBITDA

NET PROFIT (USD MN)

(161)

(17)

136

(142)

(452)

463

438

(138) Corp.

Tax

(314) Defr.

Tax

(175)

(2)

EBITDA (9M 2023)

Depreciation

Consolidation

Operating

Investing

Finance

Tax Inc./(Exp.)

Non-Controlling NET PROFIT (9M 2023)

Classification

Income

Activities

Inc./(Exp.)

Interests

Inc./(Exp.)

EBITDA CHANGE IN CASH (USD MN)

93 (54) (55)

463

	(27)	(53)
(855)		(261)

651	(98)

(408)

10

EBITDA	Changes in	Interest	Taxes Paid	Net Cash used	Free Cash	Credit Usage/	Erdemir Share	Financial	Foreign Currency	CHANGE IN CASH
(9M 2023)	Working Capital	Inc./(Exp.)		in Investing	Flow	(Payment) Net	Buy-Back	Investments	Translation	(9M 2023)
		Net		Activities					Reserves, Accrual
									Adjustments and
									Other Payments