Aksa Akrilik Kimya Sanayii A.s. · BIST:AKSA
Aksa Akrilik Kimya Sanayii A.s — Investor Presentation (March 2011)
36 slides from Aksa Akrilik Kimya Sanayii A.s's investor presentation, March 2011
Slide 1: Aksa Akrilik Kimya Sanayi
AKSA AKRILIK KIMYA SANAYI March 2011 1
Slide 2: Akkok Industrial Investment & Development Inc. Group Companies
AKKOK INDUSTRIAL INVESTMENT & DEVELOPMENT INC. Akkok Group Companies CHEMICALS AKSA, AK-KİM ENERGY AKENERJİ, SEDAŞ AKKOK (Million US$) 2006 2007 2008 2009 2010 TEXTILES Net Sales 1,314 1,337 1,514 2,166 2,400 AK-AL, AK-TOPS, AKSA EGYPT Export 342 346 326 332 372 REAL ESTATE DEVELOPMENT AKMERKEZ, AK
Slide 3: Strategic Business Units of Aksa Acrylic
STRATEGIC BUSINESS UNITS of AKSA ACRYLIC STANDARD ACRYLIC FIBER BUSINESS UNIT • Largest acrylic fiber producer under one single roof in the world; • 13.2% global market share; • Turkey’s sole local producer having 66% local market share. TECHNICAL FIBERS BUSINESS UNIT • High value-added products / D
Slide 4: Acrylic Fiber Business Unit
ACRYLIC FIBER BUSINESS UNIT 4
Slide 5: What Is Acrylic Fiber?
WHAT IS ACRYLIC FIBER? Acrylic fibre is a synthetic fibre that highly resembles wool, Wool (natural fiber) Acrylic Fiber (synthetic fiber) Used in blends with natural and other synthetic fibers or by themselves, Easily washed and keep dimensional stability/resistant against sunlight & chemical subst
Slide 6: Having 42 Years of Experience in Acrylic Fiber Industry
HAVING 42 YEARS OF EXPERIENCE IN ACRYLIC FIBER INDUSTRY... Leader in Turkey and in international markets in terms of capacity, size, pre-and post-service quality, product diversity & flexibility; Low cost leader; Production capacity : 308,000 ton/year; Capacity Utilization Rate: 85% in 2009, 86% in
Slide 7: Aksa's Development Over 40 Years
AKSA’s Development Over 40 Years AKSA 1971 AKSA Today Initial Capacity 5,000tpa Capacity 308,000tpa By the end of 2007, capacity reached 308,000 tonnes/year. 7
Slide 8: 2010 Sales Breakdown
2010 / SALES BREAKDOWN EXPORT SALES BREAKDOWN DOMESTIC SALES BREAKDOWN Others; 11% Europe; Blankets; 19% 14% Knitwear; China; 19% Handknit; 48% 10% South Mid MiddleEast; Carpets; America; 33% 29% 17% In Europe, the technical acrylic fiber market has strengthened compared to standard acrylic fiber ma
Slide 9: Acrylic Fiber Sector in Brief
ACRYLIC FIBER SECTOR IN BRIEF Acrylic fiber market accounts for 2 million tonnes in 2010, Biggest Consumption Markets China adopts self sufficiency strategy/invests on new capacity no more, During 2007-2010 China market shrank by 20%. Sector has 20% idle capacity, Europe accounts for excess capacity
Slide 10: Acrylic Fiber Industry Players
ACRYLIC FIBER INDUSTRY PLAYERS • AKSA Jilin and MonteFibre founded JiMont by forming an alliance, Jilin Qifeng and Jimont, 2 factories, • MONTEFIBRE (SPAIN) have a cumulative production capacity of 240,000 tonnes, • DRALON (GERMANY) In 2009, MonteFibre shut down the last facility in Italy, They only
Slide 11: Threat of Substitutes
THREAT OF SUBSTITUTES GLOBAL PRODUCTION OF TEXTILE FIBERS ( 1000 TONNES ) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 AGR Synthetic Fibers 32,101 31,686 33,907 35,511 37,953 38,165 41,277 44,523 42,640 44,600 3,70% Polyester 19,073 19,244 20,956 22,258 24,406 24,701 27,808 31,094 30,650 32,400
Slide 12: Cost Structure of Acrylic Fiber
COST STRUCTURE OF ACRLYIC FIBER The key cost component is the raw material Acrylonitrile • Acrlyonitrile prices fluctuates depending on the oil prices and the demand – supply balance; • 30% of ACN locally sourced from PETKIM, The rest is heavily imported from Europe . The other important cost compon
Slide 13: Ecru Tow - ACN Price Margin (US$/ton)
ECRU TOW - ACN PRICE MARGIN (US$/ton) 3.500 Average Margin $/ton 2006 620 $ 3.000 2007 608 $ 2008 682 $ 2009 832 $ 2.500 2010 732 $ 2011(Avr.of Jan&Feb) 840 $ 2.000 1.500 1.000 500 0 EKRU TOW ACN Margin Source: PCI Average of US/Europe/Far East Prices 13
Slide 14: Carbon Fiber Business Unit
CARBON FIBER BUSINESS UNIT 14
Slide 15: What Is Carbon Fiber?
WHAT IS CARBON FIBER? human hair , (50-70 μ) • Carbon fibers are extremely fine fibers (typ, 5- 7 µ in dia,) consisting mostly of carbon atoms, carbon fiber (5-7 μ) • Carbon fiber is >95% carbon, a carbon fiber and a human hair (source: wikipedia) • The structure of carbon fiber is similar to graphi
Slide 16: Carbon Fiber, Composite Materials & Composites Is a $10 Billion Industry
CARBON FIBER, COMPOSITE MATERIALS & COMPOSITES IS A $10 BILLION INDUSTRY Capital Intensity* Facilities Required: Facilities Required: Facilities Required: Precursor Facility Weavers/Looms, Fabric Layup Carbonization Prepreg Lines Curing Equipment Facility *Investment required in technology and produ
Slide 17: Uses / Current Market for Carbon Fiber
USES / CURRENT MARKET FOR CARBON FIBER http://tbn0.google.com/images?q=tbn:4C_9gHoL0oC0JM:http://www.binaisletimi.com/wp-content/bozcaadarsi1.jpg AKSA is targeting Industrial Applications 17
Slide 18: The Carbon Fibre Market Is Early in Its Development
THE CARBON FIBRE MARKET IS EARLY IN ITS DEVELOPMENT COMPARED TO OTHER STRUCTURED MATERIALS 30 • Carbon Fiber is a structural reinforcement with high specific strength and stiffness, Carbon Fiber 20 Aramid Fiber • High specific tensile strength S-glass • High specifif elastic modulus 10 E-glass • Lig
Slide 19: Expected Growth in Demand for Carbon Fiber
EXPECTED GROWTH IN DEMAND FOR CARBON FIBER Industrial Apps http://tbn0.google.com/images?q=tbn:4C_9gHoL0oC0JM:http://www.binaisletimi.com/wp-content/bozcaadarsi1.jpg 2010 vs 2020: Wind: 5,000t → 15,000-50,000t Compounding: 5,000t → 15,000-50,000t Pressure Vessels: 3,000t → 15,000-50,000t Autos: 2,50
Slide 20: Expected Growth in Demand for Carbon Fiber in Turkey
EXPECTED GROWTH IN DEMAND FOR CARBON FIBER IN TURKEY http://tbn0.google.com/images?q=tbn:4C_9gHoL0oC0JM:http://www.binaisletimi.com/wp-content/bozcaadarsi1.jpg • Infrastructure • Pressure Vessels • Wind Blades Demand for Carbon Fiber in 10 years is expected to be 1,000-1,500 mt. p.a. in Turkey. Aksa
Slide 21: The "Un-Met Need" for Carbon Fiber
THE “UN-MET NEED” FOR CARBON FIBER AKSA’s observations on the carbon fiber market: • Carbon fiber has been available commercially since the 1970’s, • Demand has grown irregularly depending on new applications, • Tight supply conditions have occurred every few years, • There appears to be an “un-met
Slide 22: Aksa's Potential Strength in Carbon Fiber
AKSA’S POTENTIAL STRENGTH IN CARBON FIBER Having the world’s largest capacity for acrylic fiber production under a single roof, AKSA’s infrastructure is unmatched by any carbon fiber producer. Acrylic Fiber and Precursor Capacity of Carbon Fiber Producers (000mt) Aksa Toray MRC Zoltek Cytec AKSA is
Slide 23: Aksa in Carbon Fiber
AKSA IN CARBON FIBER Production capacity; 1,500 tpa, Publicly announced 72 Million US$ CF investments to increase capacity from 1,500 tonnes today to 3,500 tonnes by July 2012, (both increasing the capacity of current line by 300 tpa and construction of new line with 1,700 tpa ) Capital Intensive –
Slide 24: Aksa's Target in Carbon Fiber
AKSA’S TARGET IN CARBON FIBER Entered the carbon fiber market with “standard grade” small-tow products; Targeting industrial applications where high quality, reliably supplied; competitively priced carbon fiber is wanted; Intending to further develop our portfolio of products over time; Support the
Slide 25: Energy Business Unit
ENERGY BUSINESS UNIT AKKOK
Slide 26: Energy Production & Turnover
ENERGY PRODUCTION & TURNOVER 26
Slide 27: Long-Term Main Strategic Goals (2015)
LONG-TERM MAIN STRATEGIC GOALS (2015) Generate at least US$1.1 billion sustainable revenue in its Strategic Business Areas, Achieve at least 15% EBITDA margin, Maintain capacity utilization in Acrylic Fiber Business and low-cost leadership through cost saving projects, Target 5% market share in Carb
Slide 28: Breakdown of Sales with Respect to Business Units
BREAKDOWN OF SALES WRT. BUSINESS UNITS 2010 2015 28
Slide 29: 2011 Budget Figures
2011 BUDGET FIGURES Net Sales US$ 930-960 Milllion AF US$ 790-805 Technical Fibers US$ 60-65 CF US$ 25-28 Energy US$ 55-62 Exports US$ 350-375 Milllion AF CUR 85% EBITDA margin 10%-11% CAPEX US$160-170 Million 29
Slide 30: Net Sales & Export (FOB)
NET SALES & EXPORT (FOB) (US$ million) 30
Slide 31: EBIT - EBITDA - Net Profit
EBIT - EBITDA - NET PROFIT (US$ million) 31
Slide 32: EBIT - EBITDA - Net Profit (%)
EBIT -EBITDA - NET PROFIT (%) 32
Slide 33: Investment-Profit-Dividend
INVESTMENT-PROFIT-DIVIDEND 2000-2010/09: • Total Investment : US$ 472,00 million • Total Net Profit : US$ 356,87 million • Total Dividend : US$ 72,70 million 33
Slide 34: Income Statement
INCOME STATEMENT Income Statement ('000 US$) 2007 2008 2009 3Q 2009 3Q 2010 Net Sales 669,507 684,848 585,856 390,167 601,649 EBITDA 43,286 63,610 67,172 42,675 52,129 EBIT 16,555 36,779 37,291 22,953 26,821 Profit Before Tax 18,897 69,663 32,964 25,992 21,636 Profit After Tax 19,458 57,237 26,413 1
Slide 35: Balance Sheet
BALANCE SHEET Balance Sheet ( '000 US$) 2007 2008 2009 3Q 2009 3Q 2010 ASSETS 748,070 723,569 808,967 786,016 841,214 Current Assets 423,002 383,400 390,652 384,132 389,139 Liquid Assets 42,097 39,846 64,003 44,470 37,388 Receivables 235,966 251,121 218,251 228,181 208,641 Inventories 114,514 63,738
Slide 36: Thank You
THANK YOU http://www.aksa.com http :// www.aksaca.com.tr 36 2
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