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

Akcansa Cimento Sanayi Ve Ticaret A.s — FY2018 Earnings Presentation

26 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2019

  1. Slide 1: AKÇANSA 2018 FY Results

    AKÇANSA 2018 FY Results Umut Zenar, GM Steffen Schebesta, CFO

  2. Slide 2: 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

  3. Slide 3: Content

    Content Page 1. Market Overview 4 2. Financial Report 11 3. Outlook 17 3

  4. Slide 4: Key Highlights

    Key Highlights ▪ 2018 FY ✓ Akçansa’s domestic cement volumes declined by 19%, while cement exports increased by 30%. ✓ Higher energy costs and devalued TL were offset by higher prices in export markets. ✓ Operating income increased by 24% from 215.2 to 266.2 mTL. ▪ 2019 Outlook ✓ Total cement volume

  5. Slide 5: Domestic Sales Volume Change % (November YTD)

    Domestic Sales Volume Change % (NovemberYTD) November YTD -8% decrease -5% -4% 3% 4% 11% -6% -5% Source: TCMA 5

  6. Slide 6: Exports Volumes Trend in Turkey – YTD December

    Exports Volumes Trend in Turkey – YTD December Total Export 16 14 13,7 12,7 +8% 12 11,2 10,5 10,1 10 8 6 Dec’14 Dec’15 Dec’16 Dec’17 Dec’18 Increased export volumes partially compensate lower volumes in domestic market Source: TCMA and Akçansa estimations 6

  7. Slide 7: Sales Breakdown

    Sales Breakdown Cement Shipments RMC Shipments -13% -12% [M ton] 9.0 8.1 [M m3] 3.5 7.5 7.1 3.0 2.5 6.0 6.8 2.0 4.5 5.5 3.4 1.5 3.0 3.0 Domestic 1.0 Export 1.5 0.5 1.4 1.7 0.0 0.0 FY17 FY18 FY17 FY18 [M m3] 1.5 [M ton] 3.0 -25% -41% 2.1 1.0 1.6 1.5 1.8 0.5 1.0 1.1 0.6 0.3 0.5 0.0 0.0 4Q17 4Q18 4Q17

  8. Slide 8: Export Markets

    Export Markets West Africa and USA are the major export markets in 2017 and 2018 FY17 Other LA Cement 0.1% 0,9 mt 37.3% West Africa 62.6% USA Bagged Cement & Clinker FY18 0,8 mt Other 0.3% 48.0% West Africa USA 51.7% Source: AKC management report 8

  9. Slide 9: Energy Costs (2018 vs 2017)

    Energy Costs (2018 vs 2017) FY18 vs Energy Price FY17 ▪ Higher electricity prices, USD energy prices and TL depreciation lead to strong increase in energy Coal (USD/t) costs in 2018, especially in H2 Petcoke (USD/t) ▪ Increase in alternative fuels ratio from 8.4% in Diesel (TL/lt) FY17 to 13.1% in F

  10. Slide 10: Content

    Content Page 1. Market Overview 4 2. Financial Report 11 3. Outlook 17 10

  11. Slide 11: Income Statement

    Income Statement % Ch. Company (M TL) FY17 FY18 YTD Net Sales 1.519,0 1.715,6 12,9% Cost of Sales (1.213,2) (1.350,0) 11,3% Gross Margin 305,8 365,5 19,5% Marketing&Sales Expense (19,6) (21,6) 10,4% General Management Expenses (60,7) (73,8) 21,6% EBIT 225,5 270,1 19,8% Other Operating Income/Charges

  12. Slide 12: Cash Flow

    Cash Flow Company (M TL) FY17 FY18 Cash flow from operating activities Operating income before the changes in working capital 307,3 355,1 Changes in working capital (28,3) (16,9) Taxes paid (30,7) (54,5) Other items (9,1) (7,1) 239,3 276,6 Cash flow from investing activities Tangible and intangible

  13. Slide 13: Significant Increase in Free Cash Flow Generation

    Significant Increase in Free Cash Flow Generation FY18 FY17 CF From Operating Act. 293.5 267.5 Before WC changes Working Capital -16.9 -28.3 CF from -37.5 -88.5 Investing Act. Free Cash Flow 239.1 150.7 MTL MTL CF From Operating Act. Before WC changes WC CF from Inv. Act. FCF Source: CMB financials

  14. Slide 14: Net Debt / EBITDA

    Net Debt / EBITDA Net debt 43mTL lower than in Q4’17 M TL 1.8 500 455 -13% 1.6 423 450 406 1.4 1.4 384 383 400 1.4 333 1.2 1.1 1.1 350 1.2 1.0 304 290 300 1.0 249 0.8 230 226 0.8 250 0.8 185 179 0.6 0.6 200 0.5 0.6 0.4 0.5 150 91 0.4 0.2 100 0.2 50 0.0 0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

  15. Slide 15: Balance Sheet

    Balance Sheet Variance 2018 Variance Mio TL 31.12.2017 31.12.2018 vs 2017 Mio TL 31.12.2017 31.12.2018 2018 vs 2017 Current Assets 713,0 996,1 283,1 Current Liabilities 715,1 868,4 153,3 Cash & cash equivalents 52,7 275,4 222,7 Financial Liabilities 385,4 465,2 79,7 Trade receivables 470,0 443,9 (26

  16. Slide 16: Content

    Content Page 1. Market Overview 4 2. Financial Report 11 3. Outlook 17 s 16

  17. Slide 17: Global Cement Consumption

    Global Cement Consumption [bn ton] 5 China -2% Global without China 4.1 4.1 4.1 4.1 4.2 4.1 4.0 4 3.8 3.6 3.3 3.0 3 2.8 2.8 2.3 2.2 2.4 2.5 2.3 2.4 2.3 2.1 2.2 1.9 1.3 1.4 1.6 2 1 1.9 2.0 1.6 1.6 1.6 1.6 1.8 1.7 1.8 1.4 1.5 1.4 1.5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e

  18. Slide 18: Overview of Major Projects in the Marmara

    Overview of Major Projects in the Marmara Major urban transformation areas in Istanbul Tunnel Istanbul (8m m3) North Marmara Highway (2.500k m3) 3rd Airport – Expected effect on Turkey Gayrettepe Metro Halkalı- 3rd Airport Cendere Region • Conversion of 6.500k housing units in 20 years Line (1m m3)

  19. Slide 19: 2019 Outlook

    2019 Outlook Compared to 2018: ▪ Total cement volumes expected to increase, driven by roughly doubling of export volumes ▪ Increase in alternative fuel and local coal usage to partially offset increased energy costs ▪ Increased energy costs and general cost inflation will exact pressure on margins,

  20. Slide 20: Follow Us

    ons AKC AN@Q®A Gy INVESTORS | IN PEOPLE Wo Follow Us oi = We are also rising together in the social » = Nf networks. TORKIYE’NIN EN BEGENILEN SiRKETI SEGILDIK. ‘4 $ we) : HEIDELBERGCEMENT | @Q)BANCI %G, SI 20 ain iyes™

  21. Slide 21: Contacts

    Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Dr.Barış Ergen, FPA & IR Manager Phone +90 216 571 30 50 baris.ergen@akcansa.com.tr Fax +90 216 571 30 31 IR.info@akcansa.com.tr Banu Üçer, Corporate Communication Manager Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr F

  22. Slide 22: Appendix

    HEIDELBERGCEMENT | QQBANCI Appendix 22 ia) yy INVESTORS Gold 4” IN PEOPLE oh” © ed

  23. Slide 23: EBITDA Margins

    EBITDA Margins EBITDA Margin - Quarterly % 35 31.8 31.2 31.8 30.3 30 26.5 27.0 26.9 25.0 23.6 24.6 24.2 25 22.1 20 18.1 18.2 16.0 15 11.1 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 35 29.6 30.1 29.2 29.3 30 26.5 27.9 27.9 25.0 23.5 25 22.9 19.6 20.3 20.7 20 18.1 17.2 16.0 15 10 5 0 3M 6M 9M 12M 2015 2

  24. Slide 24: Construction Sector

    Construction Sector 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 1. Private Housing 57% 50% 51% 54% 52% 53% 53% 51% 45% 45% 42% 41% 2. Commercial 16% 13% 9% 11% 10% 11% 9% 10% 9% 8% 8% 8% 3. Public 5% 5% 5% 5% 5% 5% 5% 5% 7% 6% 6% 7% 4. Infrastructure/Projects 22% 32% 35% 30% 33% 31%

  25. Slide 25: Dividend Paid, Dividend Yield and Payout Ratio

    Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % 257.6 9.2 91.5 90.9 91.6 91.2 237.2 8.7 86.1 226.3 6.6 6.8 6.2 144.4 128.0 2014 2015 2016 2017(*) 2018 2014 2015 2016 2017 2018 2013 2014 2015 2016(*) 2017 *) Adjusted for extraordinary gain from sale of Hob

  26. Slide 26: General Basics About Cement and RMC Production

    General Basics About Cement and RMC Production Production ▪75-85% 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 ▪Distribution of cement production cost : 80-85% variable a

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