Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2022 Earnings Presentation
46 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Dec 1, 2022
Slide 1: Investor Presentation 2022
INVESTOR PRESENTATION 20 22
Slide 2: Disclaimer
Disclaimer Th e inform at ion an d op in ion s con t ain ed in t h is d ocum en t h ave b een com p iled b y CIMSA reliab le and in good fait h , b ut n o rep resen t at ion or w arran t y, exp ressed or im p lied , is m ad e as t o t h eir accuracy, com p let eness or correct ness. No und ue relian
Slide 3: A Diversified Cement Player
A Diversified Cement Player Grey Cement White Cement Aluminate Cement Tran sform at ion & Big Dat a Analyt ics Man agem en t , Cult ural Tran sform at ion an d Build in g Sust ainab ilit y w w w .cim sa.com .t r 3
Slide 4: Market Outlook
Market Outlook
Slide 5: Turkish Cement Market
Turkish Cement Market 20 22 Q1 GDP in creased b y 7,3% 16,1% y-o-y* GDP Growth Rate % 23,20 % 21,7% 19,4% 16,0 % 11,2% 10 ,2% 14,0% 9,1% 9,9% 12,0% 11,1% 11,0% 4,6% 6,0 0 % 4,8% 1,6% 4,7% 10,0% 9,0% 8,5% 8,5% 7,5% -0 ,1% 8,0% 7,1% 6,1% 2,1% 6,0% 5,0% 4,8% 5,2% 0 ,8% 4,0% 3,2% 3,0% -10 ,8% 1,8% -6,0
Slide 6: Turkish Cement Market
Turkish Cement Market Turkey is t h e b iggest cem ent p rod ucer in Europ e, w it h h igh cap acit y ut ilizat ion rat es. Turkey h as also 2nd p lace in World cem ent exp ort . 100 Mt Cem en t & Clin ker Exp ort (m t ) p rod u ct ion cap acit y is 10 0 M t Cem en t & Clin ker Dom est ic Sales (m t
Slide 7: Turkish Cement Market
Turkish Cement Market 3% m arket sh are b ased on clin ker cap acit y 23% 13% 13% 10 % 7% 7% 6% 5% 5% 5% 5% 4% 4% 4% 3% Oyak Lim ak Nuh As Vicat Med cem Vot orant im Ot h ers Anad olu 7
Slide 8: Global White Cement Market
Global White Cement Market Global W hit e Cem ent Consum pt ion (Mt CC) 21,0 21 20 20 20 20 20 20 20 19 20 20 19 ▪ Glob al w h it e cem en t d em an d is st ab le at aroun d 20 Mt CC level 20 0 9 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 w w w .cim sa.com .t r 8 Source:
Slide 9: Global White Cement Market
Global White Cement Market Reg ion al Dist rib u t ion of Wh it e Cem en t Con su m p t ion ▪ Glob al w h it e cem ent p rod uct ion cap acit y reach ed t o 33,9 M t CC, w h ile glob al w h it e Russia & cem ent consum p t ion is around 20 M t . East ern Europ e Nort h ern 6% Am erica 7% ▪ Ch in a a
Slide 10: Overview of Çimsa
Overview of Gimsa wwwcimsacomtr 10
Slide 11: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Aluminated Cements ✓ Est ab lish in g a st rong & p rofit ab le core sificat ion ✓ Exp ort d riven reven ues an d p rod uct ✓ Exp ort d riven reven ues and p rod uct ✓ Op t im ise grey op erat ions - com p let ed d iversificat ion d iversificat ion ✓ Becom i
Slide 12: Çimsa Grey – Solid Network with Efficient Plants
Çimsa Grey – Solid Network with Efficient Plants 6.2 3.6 Mt 3.6 Mt Grey Clinker Cap acit y AFYON 1.6 1.7 Mt 3 Int egrat ed Plan t s in 1.7 Mt W hit e Mersin, Eskişehir, Afyon Clinker Cap acit y w w w .cim sa.com .t r 12
Slide 13: Çimsa Grey – Operational Excellence
Çimsa Grey – Operational Excellence May 2022 December 2021 May 2021 AF Usages Afyon AF Plant operational in Feb 2022 Alt ernat ive Fuel In vest m en t Sup p ort s Financial Perform ance w w w .cim sa.com .t r 13 13
Slide 14: The Future for Çimsa's Business
The Future for Çimsa’s Business Export Driven Revenus and Product Diversification Ext ensive glob al reach : 65 coun t ries und er it s ow n b rand Increased focus on grow in g FX revenues t h rough t h e invest m en t in t h e first p rod uct ion op erat ion ab road : Wh it e Cem en t Grind ing Fac
Slide 15: Çimsa Grey – Strong Export Capabilities
Çimsa Grey – Strong Export Capabilities Exp ort Sales Volum e Tren d 20 18 - 20 22 Grey Clin ker Exp ort Grey Cem en t Exp ort 1.0 30 1.0 36 957 70 8 710 70 7 599 474 483 385 252 291 20 18 20 19 20 20 20 21 H1-20 21 H1-20 22 w w w .cim sa.com .t r 15
Slide 16: Çimsa White – Main Application Areas
Çimsa White – Main Application Areas Wh it e Arch it ect ural Con cret e Wh it e cem en t is t h e id eal m at erial for con cret e w orks p rovid in g an aest h et ic finish w h ilst m ain t ain in g h igh st ruct ural p erform an ce. It is a versat ile an d d urab le m at erial req uirin g n o ext
Slide 17: Çimsa White – Market Positioning
Çimsa White – Market Positioning ▪ As of t od ay, w h it e cem ent sales net w ork exp an d s t o over 60 coun t ries t h rough st rat egically locat ed t erm inals and long-t erm d ist rib ut ors. ▪ 7m t in 20 21 w it h t h e com p let ion of t h e w h it e lin e exp ansion in t h e p lant and t h
Slide 18: Çimsa White – Market Positioning
Çimsa White – Market Positioning Dist rib u t ion ▪ secon d b iggest w h it e cem ent p rod ucer p osit ion as w ell as lead er t oget h er Lat in Am erica 7% w it h Cem ent ir in glob al w h it e cem en t t rad e. Turkey 10 % MENA 26% ▪ Nort h ern Am erica im p roved from 5,3% t o 7,2% in last d ec
Slide 19: Çimsa White - Overview of the Bunol Plant
Çimsa White - Overview of the Bunol Plant Th e Plan t in Sp ain Asturias Cantabria País Galicia Vasco Foral de Navarra • Th e acq uisit on of t h e p lant is com p let ed as of July 20 21 w it h an am oun t of 155 MUSD La Rioja b y Cim sa Sab anci Cem ent BV* Castilla y León Aragón Cataluña • Clin k
Slide 20: Cimsa Sabanci Cement BV - Organizational Structure
Cimsa Sabanci Cement BV - Organizational Structure Bot h Hold in g an d are p ub licly t rad ed com p an ies w it h free float rat es of 45% an d 42%, resp ect ively. None of Fam ily Mem b ers (31 p eop le) d irect ly an d /or in d irect ly cont rols m ore t h an 10 % st ake/vot in g righ t s of Hol
Slide 21: Special Products – Calcium Aluminate Cement - CAC
Special Products – Calcium Aluminate Cement - CAC M ark et Dyn am ics M ain Areas of Usag e Calcium Alum inat e Cem ent p rovid es h igh st ab ilit y & p erform ance w it h , - High early st rengt h - Resist ance t o ch em icals - High final st rengt h - Resist ance t o ab rasion Construction Chemi
Slide 22: Special Products – CAC Capacity Increase
Special Products – CAC Capacity Increase ▪ Ad d it ional 66 kt /year cap acit y ▪ R&D cent er w it h glob al st an d ard s locat ed in Germ an y ▪ Regional sales and t ech nical sup p ort t eam ▪ Ad d it ional cust om er orient ed p rod uct d evelop m ent ▪ Full cap acit y ut ilizat ion in five year
Slide 23: Special Products – Calcium Aluminate Cement
Special Products – Calcium Alimunate Cement Sp ecial Prod uct s CAC Sales (Kton) CAC Sales (KUSD) 13.910 12.114 51 10 .525 9.974 41 8.140 34 35 7.392 27 27 20 18 20 19 20 20 20 21 H1-20 21 H1-20 22 20 18 20 19 20 20 20 21 H1-20 21 H1-20 22 w w w .cim sa.com .t r 23
Slide 24: Sustainability Management at Çimsa
Sustainability Management at Çimsa h as rest ruct ured t h e Su st ain ab ilit y M an ag em en t Com m it t ee in ord er t o d evelop t h e sust ain ab le b usiness m od el it focuses on , t o st ren gt h en it s st rat egy for t h e fut ure and t o m anage it st rongly w it h in t h e com p an y. T
Slide 25: Sustainability Strategy
Su st ain ab ilit y St rat eg y w w w .cim sa.com .t r 25
Slide 26: 2021 Integrated Annual Report
2021 Integrated Annual Report 6t h Int egrat ed Annual Rep ort , grant ed t h e Gold en St evie at t h e Int ernat ional St evie Aw ard s Im p ort an t Hig h lig h t s • Dat a Set s →SASB st an d ard → GRI st an d ard • Value creat ion m od el • Road m ap t o t h e clim at e crisis • Cust om er exp
Slide 27: Six Priority SDGs for Çimsa
SIX PRIORITY SDGS FOR ÇİMSA Sustainable Development Goals at Çimsa an n oun ced it s ESG (Envirom ent - Social-Govern an ce) t arget s and con t rib ut ion t o SDG (Sust ainab le Develop m ent Goals). w w w .cim sa.com .t r 27
Slide 28: We shape today for tomorrow
Ou r 20 30 Su st ain ab ilit y Clim at e Crisis an d Govern an ce an d Targ et s Su st ain ab le Bu sin ess Societ y an d Hu m an Focu s Dig it alizat ion M od els 22% W e creat e su st ain ab le Red uct ion of n et sp ecific CO2 Zero em ission s on cem en t it ious p rod uct Fat al Accid ent s st a
Slide 29: Çimsa's ESG Approach - Environment
Çimsa’s ESG Approach - Environment In 20 21, t h e CDP (Carb on Disclosu re Project ) In 20 21, 3.1% red u ct ion (23 kg Clim at e Ch ange Rep ort score w as increased from B- t o B and received B score in t h e CDP CO 2/cem ent it ious) w as ach ieved in Wat er Rep ort . , n et sp ecific CO 2 em is
Slide 30: Çimsa's ESG Approach - Environment
Çimsa’s ESG Approach - Environment Th e au t on om ou s cran e-fed w ast e feed in g syst em at t h e Afyon Plant In vest m en t com p let ed in Feb ruary 20 22. Facilit y-b ased IREC Cert ificat e Th e solar p ow er p lan t in vest m en t at t h e Afyon Plant , w it h an w as ob t ain ed from En er
Slide 31: Çimsa's ESG Approach - Social
Çimsa’s ESG Approach - Social In 20 21, Corp orat e Social As p art of t h e follow -up , Resp on sib ilit y In vest m en t w ort h im p lem ent at ion and rew ard ing of 530 ,0 0 0 TL w as m ad e. new creat ive id eas of em p loyees In 20 21, t h e n u m b er of fem ale em p loyees in creased b y 1
Slide 32: Çimsa's ESG Approach - Governance
Çimsa’s ESG Approach - Governance is on t h e EcoVad is p lat form t o m eet cust om er 1 n ew p olicies h ave b een d em and s. Wit h new answ ers, p ub lish ed in ord er t o im p rove increased it s score from t h e ESG scoring m ech anism s in 47 t o 60 . Wit h in t h e scop e of Borsa t h e Gove
Slide 33: Operational Results
Operational Results 33 \Wwww.clmsa.com.tr
Slide 34: Operational Results
Operational Results* W hit e Cem ent & Clinker Sales Volum es (M t on) Grey Cem ent & Clinker Sales Volum es (M t on) Dom est ic sales Exp ort sales Dom est ic sales Exp ort sales 1,72 5,78 1,5 5,6 1,39 1,39 1,50 4,9 1,29 1,20 4,7 1,13 4,30 4,22 0 ,86 0 ,90 3,90 0 ,76 0 ,79 3,0 0 2,93 2,64 1,84 1,90
Slide 35: Operational Result – Grey Clinker Cost Structure
Operational Result – Grey Clinker Cost Structure 20 21 H1 20 22 H1 2% 3% 10 % 8% 25% Pet coke p urch ase p rices increased 25% sign ifican t ly accord in g t o 20 21 d ue t o in crease in p ace p rices in t h e m arket 63% 64% Raw Mat erial Fuel Elect ricit y Ot h er Raw Mat erial Fuel Elect ricit y
Slide 36: Financial Results
Financial Results wwweimsacomtr 28
Slide 37: Financial Result
Financial Result DEC-21 Key Financial Highlights (MTL) Q2-21 Q2-22 Change % JUN-21 JUN-22 Change % YTD Net Con solid at ed Sales 1002 2240 123% 1642 3595 119% 3.745 Gross Margin % 24% 23% -1,14pp 23% 19% -3,93pp 19% Con solid at ed EBITDA (*) 221 471 113% 357 608 70% 646 Con solid at ed EBITDA (*) M
Slide 38: Financial Results
Financial Results Net financial d eb t increased from 1.0 53 MTL in 20 21 year en d t o 1.595 MTL in 20 22 d ue t o h igh er TRY eq uivalen t of FX d enom in at ed b orrow in gs. Net Debt 20 22 H1 N et Deb t : 1.595 20 21 YE N et Deb t :1.0 53 Q1 Cash: 647 MTL YE Cash: 258 MTL Net Debt/EBITDA 5,4 As
Slide 39: Financial Results
Financial Results Net w orking cap it al*/ Net Sales w as at 17% for 20 22 Jun *13 m on t h average 17% ✓ Op t im izat ion of p rod uct ion t o m an agin g in ven t ory levels ✓ St rong overd ue receivab le m an agem en t ✓ Paym ent t erm n egot iat ion s w it h sup p liers 20 22 W orking Capit al 2
Slide 40: Key Investment Messages
Key Investment Messages ✓ Diversified cem ent p layer w it h sp ecial focus on w h it e cem en t an d CAC ✓ A st rong grey cem ent p layer w it h a b alan ced an d d iversified p ort folio ✓ ✓ Solid b alance sh eet w it h d iscip lin ed risk m an agem ent init iat ives ✓ ESG p ioneer in Turkish Cem
Slide 41: Appendix – Financial Statements
Appendix – Financial Statements 28
Slide 42: Balance Sheet
Balance Sheet MTL 2022 Q2 2021 YE MTL 2022 Q2 2021 YE Current Asset s 3.986 2.240 Current Liabilit ies 4.256 1.936 Cash an d cash eq uivalen t s 647 258 Borrow in g s* 2.267 957 Trad e receivab les 1.487 901 Trad e p ayab les 1.362 647 Ot h er receivab les 1 1 Derivat ive fin an cial liab ilit ies 0
Slide 43: Income Statement
Income Statement 2022 Q2 In com e St at em en t (MTL) 2022 6M 2021 6M Q2 2022 Q2 2021 Sales 3.595 1.642 2.240 1.002 Cost of sales (-) -2.912 -1.265 -1.733 -764 GROSS PROFIT 683 377 507 238 Gen eral an d ad m in ist rat ive exp en se (-) -131 -75 -64 -44 Market in g, sellin g an d d ist rib ut ion ex
Slide 44: Cash Flow
Cash Flow M TL 2022 6M 2021 6M A. CASH FLOW S FROM OPERATING ACTIV ITIES 152,5 -163,0 Profit b efore t axat ion 725,0 698,2 Ad j u st m en t s t o reco n ci l e n et p ro fi t /l o ss fo r t h e p eri o d -33,5 -313,2 Ch an g es i n w o rki n g cap i t al -581,7 -531,2 Cash fl o w s fro m o p erat i
Slide 45: Appendix
Appendix – 28
Slide 46: Çimsa Cement – History and Development
Çimsa Cement – History and Development rst A new Wh it e clinker line w it h Nort h ern Cyp rus secon d lin e w as Becam e t h e first and Grey-Wh it e Hot Disc (Wast e con vert ib le 60 0 .0 0 0 t ons/year cap acit y com m ission ed . Wit h t h e t erm inal w as acq uired . Feed ing and Wast e only
Çimsa Çimento Sanayi ve Ticaret A.Ş. — Q2 2022 Earnings Presentation on 6ix