Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2017 Earnings Presentation
31 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2017
Slide 1: CIMSA 2017 Q1 Investor Presentation
CIMSA 2017 Q1 Investor Presentation
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
Slide 3: Agenda
Agenda ▪ 2017 Market Overview Global Cement Market....................Pages 1-3 Turkish Cement Market..................Pages 4-10 ▪ CIMSA Operational Data.............................Pages 11 -16 Financial Data..................................Pages 17-21 Investments.................................
Slide 4: 2017 Market Overview: Global Cement Market
2017 Market Overview Global Cement Market
Slide 5: Global Cement Market
Global Cement Market • Global cement consumption is projected to be approx. 4.1 billion tons in 2017, reflecting 1 % decrease YoY (CAGR 5.9% 2002 to 2017) 6.5% 2.6% -2.7% 2.3% -1% 4.4% 8.7% 10.7% 6.0% 2.4% 9.9% 7.6% 7.7% 7.9% 9.7% 4.0 4.1 4.0 4.1 4.1 3.6 3.8 3.3 2.8 2.8 3.0 2.3 2.6 2.0 2.2 1.8 2002
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is approx. 2% in 2017 15% 10% 10% 9% 10% 6% 7% 6% 6% 6% 6% 3% 3% 4% 5% 2% 3% 2% 1% 1% 0% 2% 2% 2% 2% 1% 2% 1% 0% -1% 0% -1% -1% -2% -5% -2% -4% -10% -9% -15% Developed Countries* Rest of the World -ex China -20% -17% * Develo
Slide 7: Global Cement Market
Global Cement Market • China’s consumption is nearly 57% of the global consumption • Steady growth is expected in emerging markets 2016 Global Regional 2017E Global Regional Consumption Consumption 3% 2016 3% 2017E 3% 3% 3% 3% 33% China 34% W. Europe (*) Developed Asia (**) North America 58% Rest of
Slide 8: 2017 Market Overview: Turkish Cement Market
2017 Market Overview Turkish Cement Market
Slide 9: Turkish Cement Market
Turkish Cement Market • Cement sector growth is correlated with GDP 30.0% 25.6% 25.0% 21.3% 24.7% 20.0% 17.7% 17.1% 22.0% 15.7% 19.4% 13.8% 14.0% 15.0% 11.2% 15.0% 9.4% 10.6% 10.0% 10.0% 8.3% 6.1% 10.8% 6.4% 8.8% 5.0% 7.2% 5.9% 9.1% 8.9% 5.0% 4.7% 8.9% 4.6% 3.5% 5.0% 5.8% 7.3% 2.1% 5.0% 4.9% 3.0% 4.
Slide 10: Turkish Cement Market
Turkish Cement Market • There is a positive correlation between GDP per capita and cement consumption • The cement consumption per capita is expected to increase in 2017 along with GDP per capita. 14,000 1,400 12,480 12,112 12,000 11,588 1,200 11,205 11,014 10,931 10,807 10,560 9,656 10,000 1,000 8,
Slide 11: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area has increased by 7 % to 202 mn m2 in 2016. 220 202 188 176 176 159 123 125 124 106 104 101 70 46 36 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 million m2 Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 100,0 95 89 90,0 85 76 78 80,0 73 75 72 14 69 13 70,0 63 12 11 12 14 13 60,0 19 51 49 20 50,0 46 15 42 41 43 8 7 40,0 11 11 68 70 10 10 64 65 65 30,0 56 58 51 43 45 43 43 20,0 36 27 28 31 10
Slide 13: Turkish Cement Market
Turkish Cement Market • 3.6 Mt of cement & clinker has been exported from Turkey in 2016 2016 Jan-Jun 2017 Jan-Jun Total Export 2016: 3 mton 2017: 3.6 mton 43% 35% 27% 23% 14% 11% 13% 8% 5% 3% 3% 3% 4% 3% 3% 3% MENA West Africa North America South America Middle and South East Europe West Europe CIS
Slide 14: Turkish Cement Market
Turkish Cement Market • A cement market with domestic & foreign players: 52 integrated cement plants & 18 grinding stations Main foreign players: • Vicat • Cementir Main domestic players: • Votorantim • Çimsa • As Joint Venture * Grinding facilities • Oyak • Aşkale players: • Nuh • Batıçim • Akçansa
Slide 15: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity. Others; 13.3% Oyak; 13.8% Batı Anadolu; 2.8% Votorantim; 3.2% Akçansa; 8.4% KÇS; 3.7% Medcem; 4.3% As; 5.0% Çimsa; 7.9% Vicat; 5.1% Limak; 9.6% Çimentaş; 5.1% Aşkale;
Slide 16: Operational Data
Operational Data
Slide 17: Operational Data
• 6.6 Mt clinker capacity (including 1.5 Mt Operational Data of white clinker) 11
Slide 18: Operational Data
Operational Data • 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon • 1 grinding station in Ankara • 2 Cement packing terminals in Marmara Region and Malatya Marmara Eskişehir Ankara Afyon Kayseri Malatya Denizli Niğde Mersin Antalya 2 12
Slide 19: Operational Data
Operational Data • One of the first top three white cement players globally • An international cement manufacturer with its terminals around Europe CIMSA has international terminals in Hamburg (Germany), Trieste (Italy), Seville and Alicante (Spain), Famagusta (Northern Cyprus), Constanta (Romania)
Slide 20: Key Operational Figures in Q1 2017
Operational Data Key Operational Figures in Q1 2017 2017 2016 Grey clinker production (kton) 1.097 1.046 White clinker production (kton) 288 307 Grey cement & clinker sales (kton) 906 973 White cement & clinker sales (kton) 275 312 ISIDAÇ-40 (kton) 7 7 RMC sales (km3) 577 600 14
Slide 21: Operational Data
Operational Data • Grey cement & clinker sales of 0.9 Mt, and white cement & clinker sales of 0.3 Mt in 2017 Q1 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) Grey Cement Domestic Sales: White Cement Export Sales: 2010-16 CAGR: 1.8 % 2010-16 CAGR: 2.5 % 0.6 0.5 0.
Slide 22: Operational Data
Operational Data • CIMSA is assumed to serve approx. 2.6% of the RMC market as of 2016 Ready Mix Concrete Sales Volumes (M m3) 3,5 3,0 2,7 2,8 2,3 2,6 2,6 2,4 2,4 0,6 0,6 08 09 10 11 12 13 14 15 16 1Q16 1Q17 There are 800 players and 1080 plants in the market. CIMSA has 30 plants. CIMSA has been the
Slide 23: Financial Data
— Financial Data
Slide 24: Key Financial Highlights
Financial Data Key Financial Higlights (MTL) Q1-2017 Q1-2016 Net consolidated sales 248,5 253,7 Consolidated EBITDA (*) 55,6 74,4 Consolidated EBITDA Margin % 22,4% 29,3% Net consolidated Profit 31,4 47,4 Paid in capital 135,1 135,1 Total equity 1.205,5 1.045,8 Net sales decreased by 0.2 % YoY, whil
Slide 25: Consolidated EBITDA
Financial Data Consolidated EBITDA is 56 mn TL in 2017 Q1 (2016 Q1: 74 mn TL) 400 35% 30% 30% 29% 350 28% 30% 352 25% 356 300 306 29% 22% 25% 250 26% 25% 25% 20% 236 EBITDA 200 210 176 15% EBITDA Margin % 150 182 201 10% 100 50 74 5% 56 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 1Q16 1Q17 EBITDA M
Slide 26: Consolidated net profit
Financial Data Consolidated net profit is 31 mn TL in 2017 Q1 (2016: 47 mn TL). 302 38 245 246 14 21 193 140 12 231 181 225 123 115 124 47 108 104 3 31 3 44 29 2009 2010 2011 2012 2013 2014 2015 2016 1Q16 1Q17 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY decrease in net profit
Slide 27: Total net debt
Financial Data Total net debt increased to 1,189 mn TL as of 31.03.2017 (2016 : 754 mn TL) 1.400 1.200 1.185 380 1.000 800 754 600 212 Long Term Borrowings 349 872 400 Short Term Borrowings 109 213 575 223 83 Net debt 200 79 56 106 153 6 27 104 258 41 158 20 164 62 87 82 85 0 2009 2010 2011 2012 201
Slide 28: Top dividend payer companies in BIST
Financial Data CIMSA is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earnings per share (TL/per share) 2.24 17.4 17.1 1.82 1.82 14.4 14.8 11.4 1.43 10.1 9.1 7.1 6.9 0.91 0.85 0.80 0.77 0.35 0.23 (*) As of today 31.05.2017 Market Capitalization (TL) Dividend Paid
Slide 29: Investments
— Investments
Slide 30: Afyon Çimento Investment
Afyon Çimento Investment Afyon’s former production plant which was one of the oldest in the country, was replaced with a new facility roughly tripling its capacity to 1.5 mn tons in April 2017 • Ownership of Afyon Çimento: 51% Çimsa, 49% listed in BIST • Investment Amount: 165 mio USD • Capacity: 50
Slide 31: Eskişehir Plant White Cement Investment
Eskişehir Plant White Cement Investment Eskişehir Plant’s first Kiln, which currently produces grey clinker, is to be modified into a convertible kiln, producing both grey and white clinker. • Eskişehir Plant: Current annual capacity is 1,400 K tonnes of grey clinker • Investment Amount: 55 mio USD
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