Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM

Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q4 2019 Earnings Presentation

19 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: 4Q19 Results Investor Presentation

    4Q19 Results Investor Presentation Herkese Açık / Public 1

  2. Slide 2: Ethylene – Naphtha spread averaged US$ 336/ton in 4Q19

    Ethylene – Naphtha spread averaged US$ 336/ton in 4Q19 • Ethylene-naphtha spread decreased by 30% from US$ 480/ton in 3Q19 to US$ 336/ton in 4Q19. • In the last quarter of 2019, naphtha prices continued upward trend following the lead of crude oil. Rising feedstock costs have dragged down naphtha-et

  3. Slide 3: PLATTs Index averaged US$ 785 per ton in 4Q19

    PLATTs Index averaged US$ 785 per ton in 4Q19 • European olefins market ended a weak year with December prices stable at November’s level while sluggish downstream demand persisted. • Propylene market also experienced declining margins in 2019. Price spreads between propylene and feedstock were on a

  4. Slide 4: Product group spreads (Over naphtha CIF MED), USD/MT

    Product group spreads (Over naphtha CIF MED), USD/MT Aromatics group spread Polymers group spread 600 Paraxylene OrthoXylene 400 800 PP 750 300 600 600 400 HDPE Overall Overall 200 450 400 LDPE Weighted (right) Weighted 200 (right) 300 Benzene 100 200 PVC 150 0 - 0 - Fibres group spread Others group

  5. Slide 5: Product groups and overall weighted spread

    Product groups and overall weighted spread (over naphtha CIF MED), USD/MT 800 500 400 600 Fibres 300 Overall Polymers 400 Others 200 200 Aromatics 100 0 - Source: Platts, Company Herkese Açık / Public 5

  6. Slide 6: Feedstock vs. Product Prices

    Feedstock vs. Product Prices Petkim - Thermoplastics & Naphtha Spread • 846kton feedstock has been supplied from STAR 1,165 1,201 1,210 1,164 Refinery in 2019. 1,143 1,127 1,092 1,057 1,034 1,053 1,013 964 • Thanks to successful major maintenance in 4Q18 and USD/ton 483 495 535 537 495 492 459 464 4

  7. Slide 7: Costs and Operational Efficiency in 4Q19

    Costs and Operational Efficiency in 4Q19 Plant Cost Base Breakdown 4Q19 Ethylene Facility Capacity Utilization Rate 3% 5% 102% 98% 102% 100% 105% 106% 105% 9% 99% 86% Raw material Energy Labor 38% Other 83% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Total Production & Energy Consumption Sella

  8. Slide 8: In 4Q19 Petkim achieved TL 2,748mn sales via 587k ton volume

    In 4Q19 Petkim achieved TL 2,748mn sales via 587k ton volume Sales Volume (ton k) 4Q19 Volume: 587k ton Revenue (TL mn) 4Q19 Revenue: TL2,748mn 574 128 479 79 67 231 259 253 45 224 42 38 29 31 141 152 26 21 26 21 115 19 16 70 70 69 72 39 Export Revenue (TL mn) 4Q19 Export Revenue: TL999mn 276 168 15

  9. Slide 9: Turkey thermoplastics consumption in 2019 increased by 4.4%

    Turkey thermoplastichs consumption in 2019 increased by 4.4% in paralel with the 3.4% growth in Turkish plastic production. Ton k PVC LDPE 14% 19% 17% 15% 20% 57% 56% 54% 51% 54% 70000% 60000% 50000% 725 726 40000% 641 605 310 305 296 252 279 546 30000% 20000% 123 147 145 111 137 234 235 250 246 238

  10. Slide 10: PTA domestic consumption increased by 23% in Turkey

    PTA domestic consumption increased by 23% in Turkey. Ton k ACN MEG 34% 33% 35% 30% 36% 29% 20% 23% 18% 20% 300 38% 400 30% 36% 28% 26% 34% 300 24% 200 32% 302 22% 30% 265 275 270 175 187 200 239 20% 165 87 166 88 28% 18% 84 79 150 86 98 84 100 26% 66 78 16% 24% 100 58 14% 22% 12% 0 20% 0 10% 2015 20

  11. Slide 11: Turkish Market – Others, 2015-2019

    Turkish Market – Others, 2015-2019 Ton k P-X PA 80 61% 55% 60% 71% 57% 80% 36% 24% 33% 30% 32% 70% 60 60% 50% 35 35 35 37 40 32 40% 139 136 130 66 117 60 30% 107 60 51 44 20 27 28 20% 22 23 14 10% 0 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Turkey’s Import Domestic Consumption Petkim/Dome

  12. Slide 12: PETKIM 4Q19 Income Statement

    PETKIM 4Q19 Income Statement TL mn 12M18 12M19 Sales 9,315 11,672 Cost of sales (7,736) (10,071) Gross Profit 1,579 1,601 Gross profit % 17% 14% Marketing and sales expenses (78) (96) General admin. Expenses (244) (285) R&D Expenses (22) (25) Operating profit 1,235 1,195 Other income / (expenses) (2

  13. Slide 13: PETKIM 4Q19 Balance Sheet

    PETKIM 4Q19 Balance Sheet TL mn 12M18 12M19 Cash and cash equivalents 3,009 4,037 Trade receivables 1,194 1,552 Inventory 1,130 929 Other receviables 5 13 Other current assets 2,656 3,015 Current assets 7,995 9,547 Non current assets 4,593 5,255 Total Assets 12,588 14,801 Short term borrowings 3,019

  14. Slide 14: Financial Performance

    Financial Performance Revenue (mn TL) EBITDA and EBITDA Margin (mn TL) 14,000 2,000 30% 12,000 24% 1,800 25% 10,000 1,600 20% 4,859 1,400 16% 20% 3,797 8,000 1,200 14% 6,000 2,754 1,000 1,791 15% 800 1,523 1,589 4,000 1,367 1,389 10% 6,993 600 4,727 5,759 890 836 764 2,000 400 732 5% 3,207 200 0 - 0

  15. Slide 15: Diversified business profile through ancillary infrastructure and energy investments

    Diversified business profile through ancillary infrastructure and energy investments Description Benefits to Petkim • Turkey’s first privately constructed Refinery • Lower naphtha procurement costs • Target processing capacity of 10m tons p.a. • Replacement of some of the heavy naphtha feedstock wit

  16. Slide 16: Appendix 1. Petrochemical Complex Flow Chart

    Appendix 1. Petrochemical Complex Flow Chart Petkim has fully integrated operations LDPE Bag, greenhouse covers, film, cable, toys, pipes, (350,000 ton/year) bottles, hose, packaging HDPE Construction and water pipes, packaging film, Ethylene Plant (96,000 ton/year toys, bottles, soft drink crates,

  17. Slide 17: Appendix 2. PETKIM Stock Performance

    Appendix 2. PETKIM Stock Performance PETKIM STOCK PERFORMANCE 250 Th Unit 230 250,000 210 200,000 190 170 150,000 150 100,000 130 110 50,000 90 70 0 12/16 06/17 12/17 06/18 11/18 05/19 11/19 Volume Petkim BİST 100 Closing Price as of 31 December 2019 (TRY/Share) 3,81TL Market Cap (TRY mn) TL 8,047 F

  18. Slide 18: Investor Relations

    Investor Relations We welcome your questions, comments and suggestions. Our corporate headquarters office address is: Petkim Petrochemical Holding Corp. PO. Box.12 Aliağa, 35800 İzmir/ TURKEY To contact us with respect to shareholding relations for individual and corporate investors, please call dir

  19. Slide 19: Disclaimer

    Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Petkim Petrokimya Holding A.Ş. (the “Company”) or any member of its group nor should it or any part of it form

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