Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2019 Earnings Presentation
22 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2019
Slide 1: 2019 Q2 Investor Presentation
2019 Q2 Investor Presentation 1
Slide 2: Disclaimer
Disclaimer “Çimsa Çimento Sanayi ve Ticaret A.Ş.” (CIMSA) may when necessary make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. CIMSA discloses information through its Disclosure Policy and has shared this policy with t
Slide 3: Contents
Contents Market Overview • Turkish Cement Market 5-7 Overview of Çimsa • History, Development and Network 9-11 Cimsa • Operational Results 13-17 • Financial Results 19-22 3
Slide 4: 2018 Market Overview: Turkish Cement Market
2018 Market Overview Turkish Cement Market 4
Slide 5: Turkish Cement Market
Turkish Cement Market Cement consumption growth is correlated with GDP Cement consumption in 2018 decreased by 10.8% and GDP growth was 3% 22,0% 19,4% 15,7% 10,0% 9,2% 9,4% 8,4% 11,2% 11,1% 5,3% 9,1% 8,5% 8,5% 4,7% 4,8% 4,6% 7,4% 6,9% 6,1% 3,0% 4,8% 4,6% 5,2% 0,7% 2,1% 3,2% 0,0% 2,1% 0,8% -4,7% -6,0
Slide 6: Turkish Cement Market
Turkish Cement Market ➢ Turkey is the biggest cement producer in Europe, with high capacity utilization rates 120,0 100 100,0 94 89 85 78 79 80,0 73 75 14 69 72 13 14 63 12 11 12 15 13 60,0 19 48 8 18 12 40,0 74 64 65 65 68 67 57 58 51 20,0 45 43 43 0,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 7: Turkish Cement Market
Turkish Cement Market ➢ Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity CLINKER CAPACITY Medcem; 4% Sabancı 16% Çimsa has 8 % of the clinker capacity in Turkey Source: Turkish Cement Manufacturers’ Association 7
Slide 8: Overview of Çimsa
Overview of Çimsa 8
Slide 9: Çimsa Cement: History and Development
Çimsa Cement: History and Development 9
Slide 10: Çimsa Network – Domestic
Çimsa Network – Domestic ➢ 6.2 Mt grey clinker capacity , 1.6 Mt white clinker capacity ▪ 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon ▪ 1 grinding station in Ankara ▪ 1 Cement packing terminal in Malatya 10
Slide 11: Çimsa Network - International
Çimsa Network - International ➢ One of the top three white cement players globally ➢ An international cement manufacturer with terminals around Europe ▪ Hamburg (Germany), ▪ Trieste (Italy), ▪ Seville (Spain), Alicante (Spain), ▪ Famagusta (TRNC), ▪ Constanta (Romania), ▪ Novorossiysk (Russia) First
Slide 12: Operational Results
Operational Results 12
Slide 13: Operational Results
Operational Results Challenging market conditions, slowdown in infrastructural projects suppressed topline. 2018 YE Q2-18 Q2-19 Change % H1-18 H1-19 Change % Grey clinker production (kton) 4.539 1.337 1.073 -20% 2.603 1.849 -29% White clinker production (kton) 1.251 324 370 14% 712 722 1% Grey cemen
Slide 14: Operational Results-White Cement
Operational Results-White Cement Wide global geographical diversification resilient in periods of domestic contraction - The share of exports in total sales is 52% ( 2018 YE: 45% ). The share of white cement export in white sales is 87% (2018:81% ). White Cement & Clinker Sales Volumes (Mt) 2,0 1,8
Slide 15: Operational Results-Grey Cement
Operational Results-Grey Cement Shrinking demand and heavy winter conditions affecting domestic market in Q1’19 - Grey cement export volume increased 44% in 2019 Q2 compared to 2018 Q2, whereas domestic sales volume declined by 46% - The share of grey cement exports in total export is 56% ( 2018 YE:
Slide 16: Operational Results
Operational Results Slowdown in infrastructural projects resulted in a 65% decline in sales volumes in 2019 Q2 compared to 2018 Q2. Ready Mix Concrete Sales Volumes (M m3) 4,0 3,5 3,0 2,5 2,0 3,4 1,5 2,8 2,7 2,4 1,0 1,6 0,5 0,9 0,3 0,6 0,0 2015 2016 2017 2018 Q2-18 Q2-19 H1-18 H1-19 16
Slide 17: Operational Results – Grey Clinker Cost Structure
Operational Results – Grey Clinker Cost Structure The primary fuel cost started coming down in Q4 2018 Decrease in electricity prices in the OTC market in Q4 2018 2017 2018 5% 5% 14% 12% 22% 21% 59% 62% Raw Materials Fuel Electricity Other Raw Materials Fuel Electricity Other 17 17
Slide 18: Financial Results
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Slide 19: Financial Results
Financial Results Economic headwinds to slow down demand in cement sector Key Financial Highlights (MTL) Q2-19 Q2-18 Change% H1-2019 H1-2018 Change% YE-18 Net consolidated sales 476 493 -3% 812 853 -5% 1.700 Gross Margin % 17% 28% 18% 27% 24% Consolidated EBITDA (*) 144 182 -21% 147 226 -35% 388 Con
Slide 20: Financial Results
Financial Results 1.700 1.500 1.476 1.263 1.300 1.173 1.100 900 754 1.029 952 669 700 827 Short Term Borrowings Long Term Borrowings 500 575 550 Net debt 300 451 100 212 -100 2016 2017 2018 2019 ➢ Net financial debt increased from 1,263 mn TL in 2018 year end to 1,476 mn TL in 2019 due higher TRY eq
Slide 21: Financial Results
Financial Results 450 30% 400 350 300 250 200 383 411 150 314 100 219 50 0 2016 2017 2018 2019 Net Working capital ➢ Net working capital / Net Sales was at 24 % for 2019, up from 19 % for 2018. 21
Slide 22: The Future for Çimsa’s Business
The Future for Çimsa’s Business Export Driven Revenues and Product Diversification ➢ Extensive global reach: 65 countries under its own brand ➢ Increased focus on growing FX revenues through the investment in the first production operation abroad: White Cement Grinding Facility in Houston ➢ Diversed
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