Emsteel Building Materials PJSC · ADX:EMSTEEL
Emsteel Building Materials PJSC — Investor Presentation (July 2025)
37 slides from Emsteel Building Materials PJSC's investor presentation, July 2025
Slide 1: Investor Presentation July 2025
EMSTEEL MSTEEL ANY Investor Presentation July 2025
Slide 2: Legal Disclaimer
Legal Disclaimer pi \\N These materials have been prepared by EMSTEEL Building Materials PJSC ("EMSTEEL" or the “Company"). The Company relies on information obtained from sources believed to be reliable. No representation, warranty or undertaking, stated or implied, is given as to the accuracy of t
Slide 3: Agenda
Business Overview 4 Key ESG Credentials 11 Market Context 15 Growth Strategy 20 Board and Executive Committee 24 Financial and Operational Highlights 27 Appendix 33 EMSTEEL GROUP
Slide 4: Business Overview
Business Overview
Slide 5: Ownership structure
10% 90% Steel Cement Ownership structure
Slide 6: Company history and milestones
• Arkan listed on ADX • ACF** construction starts Arkan Dry Mortar August 9 April 27 Arkaninception ACF Operation Starts Arkan General Assembly approves Adopting ‘Emirates Steel Arkan’ as interim brand and operation starts merger trading ticker change to EMSTEEL 2006 2007 2012 2015 Q2 2021 Q3 2021 Q
Slide 7: Our Product Lines
Our Product Lines ote = AN Aleading producer of Aprominent wire rod Thelargest producer of The only producer of Rebar in Coils high-quality rebar with a producer in the GCC witha heavy and jumbo sections hot-rolled sheet piles in provides greater production capacity of production capacity of inthe G
Slide 8: Direct Reduction Plant (DRP)
-> -> -> DIRECT REDUCTION PLANT (DRP)
Slide 9: Geographic Footprint
Geographic Footprint EMSTEEL easteet =\\\ The Group contributes 10% of ce) Abu Dhabi’s non-oil manufacturing output and exports steel products to United Arab Emirates more than 70 countries. * Abu Dhabi - Steel Division * AlAin - Cement Division UAE steel market share, FY24: & 60% of rebar and wire
Slide 10: EMSTEEL Group
EwSTEEL =\\\ EMSTEELGROUP
Slide 11: Key ESG Credentials
Slide 12: Al Reyadah CCUS
CO2 Al Reyadah CCUS Molten steel EMSTEEL is the world’s first steel company to capture its CO2 emissions. Partnership with ADNOC allows us to accumulate up to 800 kt of CO2/year as part of Carbon Capture Utilization and Storage (CCUS). This way around 45% of CO2 generated from Direct Reduction Plant
Slide 13: Emissions reduction and clean energy
… EMSTEEL is constantly working to deliver on its sustainability commitment. In 2022 we reduced Scope 1&2 emissions from our steel business by 35% YoY. This was partially driven by securing clean energy from solar and nuclear sources totalling 2 million MWH. Nuclear Volume (MWh) Solar Volume (MWh) 1
Slide 14: Carbon intensity versus peers
… On the demand side, there is growing momentum in CO2-related initiatives led by steel buyer coalitions, such as SteelZero in EU. • SteelZero members commit to procure 100% net zero steel by 2050; Interim commitment - 50% responsibly produced steel by 2030. EMSTEEL’s corporate carbon intensity is a
Slide 15: Market Context
Slide 16: Long-term factors influencing steel demand
Long-term factors influencing steel demand dua! =\\\ Major trends in the global steel industry UAE Growth Strategy OR iti im © Geopolitics = The UAE steel and cement demand is WGAgH Increased trade barriers supported by nation-wide strategies: ilk Global steel overcapacity SS + "We, the UAE 2031’ Vi
Slide 17: May-25 Mar-25 Feb-25
▼ 530 550 570 590 610 Jul-24 Jul-24 Aug-24 Sep-24 600 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 573 Apr-25 May-25 Jun-25 538
Slide 18: UAE steel market outperforms within GCC
UAE steel market outperforms within GCC jetuuwal =\\\ supported by strong pipeline of projects EMSTEEL = GCC Steel Demand in 2024 has increased by 4+11%, YoY Buildings’ construction projects awards in the UAE have reached USD 50bn in 2024 with UAE leading the growth at 4 +20%, YoY mHigh Rise (15+) m
Slide 19: UAE Standard Tariff
UAE Standard Tariff for above 1 MW Example of ESP approach: (2024) Criteria Weight Categories Economic Impact aims to build a robust value chain in the industrial sector in Abu Dhabi. Category Category Category Economic Impact 50% The following attributes are considered: A B C 27 AED fils/kWh (i) In
Slide 20: Growth Strategy
Growth Strategy
Slide 21: EMSTEEL's Strategy to succeed in an evolving market
EMSTEEL's Strategy to succeed in an evolving market eet =\\\ Vision Strategy Pillars Cy) To be the region's steel . @ and building materials Maximize Current Diversify Product Integrated Iron champion Business Value Portfolio Ore Value Chain +. ny To deliver valueto our & | shareholders mnUNy id’ /T
Slide 22: Maximize Current Business Value and Diversify Product Portfolio
Maximize Current Business Value and OW Diversify Product Portfolio _ Asset Enhancement Programme Phase 1 2025 - 2027 OVERVIEW = Total CapEx: AED 625 million Completion scheduled for: Q@2 2026 Upgrading existing rolling mills Enabling production of high-strength rebars Introducing QST & TMCP technolo
Slide 23: Integrated Iron Ore Value Chain
Integrated Iron ore Value Chain EMSTEEL has partnered with ITOCHU and JFE Steel to carry out feasibility studies to consider the construction of a ferrous raw material production facility in Abu Dhabi Envisioned split of mandates ITOCHU: sourcing high-grade iron ore through established trading netwo
Slide 24: Board and Executive Committee
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Slide 25: Board of Directors
Hamad Abdulla Ahmed Ali Mohamed Eng. Saeed Ghumran Abdulaziz Abdulla Ismail Nabeel Qadir Fatima Abdulla Farah Abdulla Mohamed AlShorafa Ali Alshamsi Al Remeithi Mohamed Al Hajri Mohamed Sharif Mohamed Ali Al Hammadi Abdulla Al Fahim Al Mazrui CHAIRMAN VICE CHAIRMAN BOARD MEMBER BOARD MEMBER BOARD ME
Slide 26: Executive Committee
Eng. Saeed Ghumran Mark Tonkens Hugo Losada Eng. Hassan Salim Vladimir Arshinov Al Remeithi Shashaa GROUP CEO GROUP CFO CEO, EMIRATES CEMENT GROUP CHIEF GROUP CHIEF PROJECT OFFICER TECHNOLOGY OFFICER Al Remeithi has over 21 Tonkens has over 30 years’ With over 21 years of Shashaa brings 41 years in
Slide 27: Financial and Operational Highlights
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Slide 28: FY2024 financial highlights
Revenue AED 8.3bn -6% YoY EBITDA AED 892m -29% YoY Net Profit (After Tax) AED 392m Cash in hand AED 823m +93% YoY
Slide 29: Production, sales, revenue and EBITDA
Production, kt Production, kt Revenue, AED bn EBITDA (AED mn) & EBITDA Margin Sales, kt Sales, kt Net bank cash / (debt), AED bn
Slide 30: H1 2025 financial highlights
Revenue AED 4.3bn – +9% YoY EBITDA AED 540m +6% YoY Net Profit (After Tax) AED 188m Net Cash Position AED 372m +10% YoY
Slide 31: EMSTEEL strong operational performance in H1'25
EMSTEEL strong operational performance in H1'25 emsTeet =\\\ In Q1'24, EMSTEEL sold c. 100 kt of semi-finished products (billets). InH1'25 EMSTEEL increased sales of finished steel products by InH1'25, strong UAE demand and optimized capacity utilization enabled 4+24%, YoY, supported by continued mo
Slide 32: ▼ ▲ ▲ 4,000 ▲ ▲ 3,500 3,000 2,500 2,000 250 200 1,500 150
▼ ▲ ▲ 4,000 500 ▲ ▲ 450 3,500 400 3,000 350 2,500 300 2,000 250 200 1,500 150 1,000 100 500 50 0 0
Slide 33: Appendix
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Slide 34: Consolidated statement of financial position
Consolidated statement of financial position doe =\\\ Assets, AED mn 1H2025 2024 2023 Equity and Liabilities 1H 2025 2024 2023 Non-current assets Net equity 8,908 8720 8,332 PPE 6,254 6416 6,564 Non-current liabilities Goodwill - - - Lease liabilities 322 321 333 Right-of-use assets 214 214 229 Prov
Slide 35: Consolidated statement of profit or loss
Consolidated statement of profit or loss wet =\\\ AED mn 1H 2025 1H 2024 2024 2023 Revenue 4,300 3,957 8,337 8,899 Cost of sales (3,787) (3,517) (7,578) (7,802) Gross profit 514 440 760 1,097 Selling and distribution expenses (29) (22) (44) (54) General and administrative expenses (247) (200) (417)
Slide 36: Consolidated statement of cash flows
Consolidated statement of cash flows wet =\\\ AED mn 1H 2025 1H 2024 2024 2023 Cash flows from operating activities Operating cash flows before movements in working capital 569 565 867 1,372 Net movements in working capital (344) (213) (174) 84 Cash generated from operations 225 352 693 1,456 Employ
Slide 37: Thank You
EMSTEEL Building Materials PJSC — Investor Presentation (July 2025) on 6ix