Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS

Akcansa Cimento Sanayi Ve Ticaret A.s — Q1 2011 Earnings Presentation

40 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, May 23, 2011

  1. Slide 1: Results Q1 2011

    Results Q1 2011 Istanbul, May 23, 2011 Invest for future 1

  2. Slide 2: Contents

    Contents  Market Overview 3  Key Figures  Financial Highlights 16  Cement and Readymix Volume Changes 17  Export Regions 18  Company Turnover, Operating Income and Net Income 19  Market Performance Trend 20  Business Lines  Cement Profit and Loss Results 22  Readymix Profit and Loss Result

  3. Slide 3: Contents: Market Overview

    Contents  Market Overview  Key Figures  Financial Report  Prospects 3

  4. Slide 4: Cement Consumption Trends: Regional Consumption 2011 Estimate

    Cement Consumption Trends : Regional Consumption 2011 Estimate WE Emerging 0% Asia EE (excl. NA +3% +14% India&Chi +1% 0% na) MED +7% RIM +1% +5% -8% +7% 0% 0% +4% +6% +8% +2% +8% +7% +5% +8% +6% Middle East Latin America +9% +7% +8% +2% 0% Ocenia +2% Traditional Akcansa Africa Export Routes +4% " T

  5. Slide 5: Turkey Macroeconomic Assumptions 2007-2013

    Turkey Macroeconomic Assumptions 2007-2013 10,0% 8,9% TR-3 Months 8,1% Government Turkey Macroeconomic Deposit Population 8,0% 7,0% 7,0% 7,0% Budget 5,9% 5,9% Indicators Rate, (mio) 8,2% 5,0% 5,5% Deficit/GDP 6,0% 4,5% Annual,% 4,7% 4,0% 2007 -1,6% 17,6% 70,3 2,0% 0,7% 2008 -1,8% 20,0% 71,1 0,0% 200

  6. Slide 6: Turkish Cement Sector (1993–2011E)

    Turkish Cement Sector (1993 – 2011E) About 7% growth is TURKEY expected in domestic cement demand in 2011 90 80 70 18,0 60 18,5 20,5 50 mio tons 8,3 13,7 7,2 40 9,7 4,6 4 10,7 3,7 4,6 6,6 4,6 10,4 3,2 10,4 30 5,2 8,6 53,8 50,3 43,0 44,5 42,7 42,8 20 32,7 34,1 35,1 29,8 30,1 32,1 31,7 31,5 30,7 26,7

  7. Slide 7: Turkish Cement Market (Expectations)

    Turkish Cement Market (Expectations) 2006 2007 2008 2009 2010 2011E 1. Private Housing 66% 61% 53% 55% 53% 54% 2. Commercial 13% 15% 12% 8% 11% 10% 3. Public 3% 4% 4% 4% 5% 4% 4. Infrastructure/Projects 17% 20% 30% 33% 30% 32% 7 " This presentation/report demonstrates "estimated results" of market r

  8. Slide 8: Turkey Clinker Capacity Distribution

    Turkey Clinker Capacity Distribution First 3 groups form 37% of the Turkish Cement Capacity Others Akcansa Cimsa 23% 10% 7% Oyak 13% Limak 7% CRH-Eren Holdings Nuh 3% As 7% Italcementi 7% 1% Vicat 6% Cementir Cimpor 7% 4% Sanko-Barbetti 5% 8 " This presentation/report demonstrates "estimated results

  9. Slide 9: Turkey Cement Sector Distribution

    Turkey Cement Sector Distribution 48 integrated plants, 17 grinding mills, 65 plants, 22 players Cimpor Limak Nuh Kipas Askale Oyak Tracim Yurt AkcanSA CimSA AS Lafarge Bursa Cementir Titan-ADO Sanko/Barbetti Source: TCMA Italcementi Vicat Sancim Integrated Plants BatıGroup Denizli-CRH Goltas Grindi

  10. Slide 10: Turkish Cement Market, Sales Volumes Change %

    Turkish Cement Market, Sales Volumes Change %, (February - YTD) +47,1% +27,7% +39,2% +8,3% +36,5% +40,1% +42,4%  Cement demand in Turkish domestic market increased by 35,7% yoy.  Marmara region had the highest growth rate in volumes in Feb-2011.  Akcansa operates in Marmara, Aegean and Black Sea

  11. Slide 11: Turkish Cement Market, Clinker Stock Volumes % change

    Turkish Cement Market, Clinker Stock Volumes % change (February - YTD) 11-10 (Feb): -28% 11-10 (Feb): -13% 2011(Feb): 442 kt 2011(Feb): 585 kt 11-10 (Feb): -29% 11-10 (Feb): +13% 2011(Feb): 379 kt 2011(Feb): 869 kt 11-10 (Feb): -46% 2011(Feb): 312 kt 11-10 (Feb): -12% 11-10 (Feb): +37% 2011(Feb): 30

  12. Slide 12: Energy is the key issue

    Energy is the key issue  Increase in alternative fuel usage target Shredded Paper Shredded Tyre  Flexibility in use of petrocoke and coal  Use of import channels of HC Trading firms  High-sulfur petrocoke usage permit Swege Sludge Industrial Oil  Hedging coal purchases to minimize cost inflatio

  13. Slide 13: Steam Coal Prices vs. Petroleum Coke and Oil

    Steam Coal Prices vs. Petroleum Coke and Oil API2 VS API 4 VS PACE VS OIL 140,00 128,3 130,00 126,8 123,6 123,0 120,2 118,0 118,0 123,1 120,00 122,1 121,0 123,0 118,0 117,0 116,7 114,4 110,00 106,4 108,9 USD/MT 99,8 104,0 100,00 102,7 101,1 94,7 94,0 93,1 94,0 98,6 92,6 96,0 89,5 89,3 94,8 94,0 90,0

  14. Slide 14: Baltic Supramex Index

    Baltic Supramex Index Stable transportation costs 14 Source: Bloomberg

  15. Slide 15: Contents: Key Figures

    Contents  Market Overview  Key Figures  Financial Report  Prospects 15

  16. Slide 16: Financial Highlights

    Financial Highlights  Q1 turnover is up by 23,7% to 215 mio TL which is at the highest Q1 level.  Increase in domestic demand and higher prices lead to increased revenue.  Margins improved despite higher cost of sales due to input price inflation, notably in fuel prices. – Fuel prices increased s

  17. Slide 17: Akçansa Sales Volumes (Q1 2011 vs. Q1 2010)

    Akçansa Sales Volumes (Q1 2011 vs. Q1 2010) Domestic – Cement & Clinker Export – Cement & Clinker 23% Change 22% Change 3% 2% 2% 52% 29% 98% 97% 48% 71% 2010 2011 2010 2011 DOMESTIC CLINKER SALES EXPORT CLINKER SALES DOMESTIC CEMENT SALES EXPORT CEMENT SALES RMC 14% Change 2010 2011 READYMIX SALES V

  18. Slide 18: Akçansa Export Regions 2011

    Akçansa Export Regions 2011 <70 k ton >100; <70 k ton >100 kton 18

  19. Slide 19: Key Figures (million TL) (Q1 2011 vs. Q1 2010)

    Key Figures (million TL) (Q1 2011 vs. Q1 2010) 215,0 17,8 173,8 8,3 2010 2011 2010 2011 Turnover Operating Income Better volume and prices reflected on operating income and net profit. 9,5 Doubled operating income in 2011; • volume and price growth, • upward trend in the cost structure, 3,9 • Fuel

  20. Slide 20: Market Performance Trend 2011

    Market Performance Trend 2011 Cement 2011 Price Volume Cement (TL/ton) 2011 Price Domestic Cement Volume ($/ton) North Marmara Export Cement South Marmara Export Clinker East Marmara (*) Compared to 2010 Q1 Aegean Black Sea (*) Compared to 2010 Q1 Readymix 2011 Price Volume Energy (TL/m3) 2011 Gener

  21. Slide 21: Contents: Financial Report

    Contents  Market Overview  Key Figures  Financial Report  Prospects 21

  22. Slide 22: Cement B/L Profit and Loss Accounts YTD

    Cement B/L Profit and Loss Accounts YTD Operating Income Analysis Mio TL YTD - 2011 vs 2010 26,9 -16,6 -0,9 1,2 17,1 6,4 2010 Q1 YTD Net Sales Cost of Sales Operat. Other 2011 Q1 YTD Expenses Inc.&Exp. * These figures include only Akçansa and Karçimsa results. These figures represent the management

  23. Slide 23: Readymix B/L Profit and Loss Accounts YTD

    Readymix B/L Profit and Loss Accounts YTD Operating Income Analysis YTD - 2011 vs 2010 Mio TL 21,3 -21,9 1,9 -0,3 -0,3 0,7 2010 Q1 YTD Net Sales Cost of Sales Operat. Other 2011 Q1 YTD Expenses Inc.&Exp. * These figures include only Akçansa and Karçimsa results. These figures represent the managemen

  24. Slide 24: Company B/L Profit and Loss Accounts YTD

    Company B/L Profit and Loss Accounts YTD Net Income Analysis Mio TL YTD - 2011 vs 2010 40,1 -30,4 -1,1 0,9 2,6 1,2 9,5 3,9 2010 Q1 Net Sales Cost of Operat. Exp. Other Fin. Taxes 2011 Q1 YTD Sales Inc.&Exp. Inc.&Loss YTD * These figures include only Akçansa and Karçimsa results. These figures repres

  25. Slide 25: Cash Flow Statement Jan-Mar 2011 and 2010

    Cash Flow Statement Jan - Mar 2011 and 2010 YTD YTD Company Mio TL 2011 2010 Cash flow from operating activities (12,9) (13,6) Investment activities for operating purposes (5,2) (4,3) Free Cash Flow (18,1) (17,9) Improvement projects (6,5) (1,2) Cash Flow After Investments (24,6) (19,1) Financial pr

  26. Slide 26: Contents: Prospects

    Contents  Market Overview  Key Figures  Financial Report  Prospects 26

  27. Slide 27: Prospects 2011 and beyond

    Prospects 2011 and beyond Operations • Significant sales volume growth in the domestic market • Continuing growth expectations for the construction business • Sales prices are increasing both in cement and readymix • Evaluating possible inorganic growth opportunities Energy • Electric cost reduction

  28. Slide 28: Thanks for your attention

    newenserccement | Thanks for your attention 28

  29. Slide 29: Contacts

    Contacts Gary Whitehead CFO Phone +90 216 571 30 20 gary.whitehead@akcansa.com.tr gary.whitehead@akcansa.com.tr Fax +90 216 571 30 21 Banu Üçer Üçer Communication Officer Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr banu.ucer@akcansa.com.tr Fax +90 216 571 30 11 Info Adress: IR- IR-info@akcansa.

  30. Slide 30: Disclaimer

    Disclaimer This presentation (Presentation) has been prepared by Akçansa Çimento Sanayi ve Ticaret A.Ş. for the sole purpose of providing information relating to Akçansa (Information). This Presentation is based on public information and data provided by Akçansa management and basically demonstrates

  31. Slide 31: Appendix

    newenserccement | 31

  32. Slide 32: Cement B/L Profit and Loss Accounts Q1

    Cement B/L Profit and Loss Accounts Q1 YTD Var Cement Mio TL 2011 YTD'11 vs. YTD'10 Net Sales 147,3 26,9 Cost of Sales (122,0) (16,6) Gross Margin 25,2 10,3 Operating Expenses (7,4) (0,9) Other Operating Income/Charges (0,7) 1,2 Operating Profit/Loss 17,1 10,7 • Turnover is still increasing in Q1’11

  33. Slide 33: Readymix Profit and Loss Accounts Q1

    Readymix Profit and Loss Accounts Q1 YTD Var Readymix Mio TL 2011 YTD'11 vs. YTD'10 Net Sales 90,2 21,3 Cost of Sales -87,4 -21,9 Gross Margin 2,8 -0,6 Operating Expenses -1,9 -0,3 Other Operating Income/Charges -0,3 -0,3 Operating Profit/Loss 0,7 -1,3 • Parallel increase in both sales and cost of s

  34. Slide 34: Profit and Loss Accounts Q1

    Profit and Loss Accounts Q1 YTD Var Company Mio TL 2011 YTD'11 vs. YTD'10 Net Sales 209,7 40,1 Cost of Sales (181,6) (30,4) Gross Margin 28,1 9,7 Gross M argin % 13,4% 2,6% Marketing&Sales Expense (2,1) (0,2) General Management Expenses (7,2) (1,0) Other Operating Income/Charges (1,0) 0,9 Operating

  35. Slide 35: Cash Flow Statement Q1 2011 and 2010

    Cash Flow Statement Q1 2011 and 2010 YTD YTD Company Mio TL 2011 2010 Cash flow from operating activities Operating Income before the adjustments in Working Capital 33,8 23,8 Changes in Working Capital (46,2) (36,5) Decrease of provisions through cash payments (0,5) (0,8) (12,9) (13,6) Cash flow fro

  36. Slide 36: Dividend Yield and Dividend Paid

    Dividend Yield and Dividend Paid Mio TL % 128 125 10,4% 8,7% 70 65 6,9% 39 4,1% 2,4% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Dividend Paid Dividend Yield There has not been any change in dividend payment policy throughout years 36 * These figures include only Akçansa and Karçimsa results.

  37. Slide 37: EBITDA Margins

    EBITDA Margins EBITDA Margin - Quarterly 2010 2011 18,5% 18,1% 15,3% 14,2% 13,5% Q1 Q2 Q3 Q4 EBITDA Margin - YTD 2010 2011 16,7% 17,2% 16,2% 15,3% 14,2% Q1 Q2 Q3 Q4 37 * These figures include only Akçansa and Karçimsa results. These figures represent the management report view.

  38. Slide 38: Construction Projects in Turkey

    Construction Projects in Turkey Ongoing Projects Projects in the Pipeline Akcansa •İzmit – İzmir Highway; signed, not started •Marmaray (Continuing, 76 km, 320 k m3) •Highway (421 km) •Sinpaş Residence Projects (Continuing, 500 k m3) •İzmit Bridge; Length 1,7 km;Cost : 2 bio TL •Varyap Meridian Proj

  39. Slide 39: General Basics About Cement and RMC Production

    General Basics About Cement and RMC Production Production •1,6 ton limestone is consumed to produce 1 ton of clinker •75-90% clinker is consumed to produce 1 ton of cement •250-300 kg of cement in 1 m3 RMC produced •1,5-2,0 ton of aggregate in 1 m3 RMC produced depending on the type of RMC produced

  40. Slide 40: Akcansa at a glance

    Akcansa at a glance Key Operational Highlights Operations in Turkey 3 cement plants 6,5 m ton clinker capacity 9 m ton cement capacity 38 RMC terminals 8,5 million m3 RMC capacity 6 domestic terminals 3,2 m ton total operating capacity 2 jetties (Ambarlı & Çanakkale) Key Financial Highlights Export

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