Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM

Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q1 2021 Earnings Presentation

23 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, 2021

  1. Slide 1: 1Q21 Results Investor Presentation

    1Q21 Results Investor Presentation 1

  2. Slide 2: Substantial jump in profitability in 1Q21

    Substantial jump in profitability in 1Q21 TL5.0bn TL1.2bn TL892mn Sales 23% QoQ EBITDA 24.3% margin Net 0.35 TL/share 56% QoQ Income 43% QoQ TL5.9bn TL4.8bn Cash Net 1.6x net debt/ 2x current ratio EBITDA 8% 2020 YE Debt 8% 2020 YE Hizmete Özel (Dış Taraflar) 2

  3. Slide 3: Downstream profitability pulling the sector margin to record levels

    Downstream profitability pulling the sector margin to record levels Q121 highlights Record high prices due to Cost savings and effective working continuing supply tightness capital management significantly and healthy demand supported earnings 38% QoQ increase in USD13.3mn inventory petchem prices g

  4. Slide 4: Industry Environment

    Industry Environment Global petrochemical market Petrochemical market in Turkey Hizmete Özel (Dış Taraflar) 4

  5. Slide 5: Industry environment

    Industry environment Monthly naphtha - ethylene spread (CIF MED spot prices) Monthly average Platts index USD/tonne USD/tonne 1,188 1,229 1,180 1,143 1,213 2,000 1,132 1,800 1,024 800 989 1,600 844 957 801 712 678 677 689 747 1,400 893 616 1,200 651 634 590 644 663 794 1,000 748 758 430 403 728 732

  6. Slide 6: Industry environment

    Industry environment Product groups spread (over naphtha CIF MED), USD/MT Petrochemical margins have surged in early 2021, with 1400 demand resilient and supply tightened by, 1200 Series of extensive supply outages 1000 Disruption in trade 800 The price gap between Europe and China has been wide. 60

  7. Slide 7: Industry environment

    Industry environment Product groups spread (over naphtha CIF MED), USD/MT Polymers Fibers 1500 2000 1600 1200 1200 900 800 600 400 300 0 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-21 Jan-20 Feb-21 Mar-21 Apr-21 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-21 Jan-20 Feb-21 Mar-21 Ap

  8. Slide 8: Turkey's petrochemical sector overview

    Turkey’s petrochemical sector overview Turkey domestic demand is primarily met by imports Surplus (k ton) PVC LDPE HDPE PP ACN MEG PTA PA P-X 0 -200 -400 -600 Deficit 1Q20 2Q20 3Q20 4Q20 1Q21 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (%) P-X Domestic consumption Petki

  9. Slide 9: Operating and Financial Results

    Operating and Financial Results Hizmete Özel (Dış Taraflar) 9

  10. Slide 10: Capacity utilization and gross production

    Capacity utilization and gross production Capacity utilization rates (%) Gross production (k ton) 98% 102% 99% 100% 802 729 839 776 814 91% 100% 900 100% 115% 113% 115% 800 90% 103% 80% 97% 99% 80% 700 93% 89% 99% 323 360 331 328 70% 600 93% 60% 290 60% 95% 90% 83% 500 97 100 50% 75% 40% 400 86 106

  11. Slide 11: Breakdown of petchem sales in 1Q21

    Breakdown of petchem sales in 1Q21 Breakdown of petchem sales (mn USD) Breakdown of petchem sales Total petchem sales: USD676mn 208 156 74 105 Thermoplastics 31% 123 61 Fiber 72 93 57 41% 81 Aromatics 48 67 44 33 23 12 Other 45 17 21 40 276 Trade 180 182 210 151 11% 9% 8% 1Q20 2Q20 3Q20 4Q20 1Q21 Th

  12. Slide 12: In 1Q21, Petkim achieved TL4,996mn sales

    Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 637k ton TL4,996mn 199 1,540 986 408 402 364 78 67 239 212 93 119 236 142 152 30 39 38 74 32 24 32 20 24 21 30 18 13 In 1Q21, Petkim achieved Export Revenue (TL mn) Total export: Revenue breakdown Exports breakdown TL4,996mn sales TL1

  13. Slide 13: Breakdown of total COGS in Q121

    Breakdown of total COGS in Q121 COGS breakdown (%) 1Q21 total COGS: 4% 9% 2% TL3,814mn 33% 24% 37% 35% 29% 3% 4% Other 4% 6% 2% 5% 3% 4% Trade 8% 7% 4% 5% 7% 5% Depreciation 11% Labour costs Energy 57% 55% 55% 51% Raw materials 39% -4% -3% 1Q20 2Q20 3Q20 4Q20 1Q21 Hizmete Özel (Dış Taraflar) 13

  14. Slide 14: Feedstock vs. product prices of Petkim

    Feedstock vs. product prices of Petkim Thermoplastics and naphtha spread Petchem unit margins* USD/tonne USD/tonne 2,800 2,071 1,600 800 1200 2,400 1,599 700 1,400 1,477 1000 600 2,000 1,327 1,015 1,040 1,043 1,181 1,200 473 500 974 1,010 1,072 1,116 800 1,600 927 903 1,518 1,000 400 1,200 849 1,077

  15. Slide 15: PETKIM 1Q21 income statement

    PETKIM 1Q21 income statement FY 1Q TL mn Q1‘20 Q1'21 YoY Δ (%) Q4‘20 Q1'21 QoQ Δ (%) Sales 2,766 5,034 82% 4,088 5,034 23% Cost of sales (2.561) (3,814) 49% (3.312) (3,814) 15% Gross profit 205 1,220 495% 776 1,220 57% Gross profit % 7.4% 24.2% 19.0% 24.2% Marketing and sales expenses (28) (33) 16%

  16. Slide 16: Financial highlights

    Sales tonnes (k ton) Revenue (bn TL) 1.7 1.3 Export 638 671 637 1.0 1.0 598 548 0.7 2.8 3.3 Domestic 1.7 1.5 2.0 Q120 Q220 Q320 Q420 Q121 Q120 Q220 Q320 Q420 Q121 Financial EBITDA and net income (mn TL) Margins (%) highlights 1,225 24.3 892 18.4 19.2 784 17 17.7 EBITDA margin 625 EBITDA 516 15.3 412

  17. Slide 17: Liquidity highlights

    Liquidity highlights Deposits - by currency Maturity profile (mn USD) USD712mn 4% USD TRY EUR Short term 24% USD500mn Eurobond is 473 expected to refin Eurobond 500 Long term 73% 27 24 33 41 40 25 2 83 30 2021 2022 2023 2024 2025 2026 2027 2028 Cash flow from operations and CAPEX (mn USD) Net debt p

  18. Slide 18: Supporting Slides

    Supporting Slides Hizmete Özel (Dış Taraflar) 18

  19. Slide 19: PETKIM 1Q21 balance sheet

    PETKIM 1Q21 balance sheet TL mn 12M‘20 3M'21 Financial highlights 12M‘20 3M'21 Cash and cash equivalents 5,502 5,942 Net debt position (4,394) (4,766) Trade receivable 1,717 2,605 Working capital (528) (177) Inventory 958 1.222 Days sales outstanding 45 52 Other receivables 4 7 Days payable outstand

  20. Slide 20: 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

  21. Slide 21: Petrochemical complex flow chart

    Petrochemical complex flow chart Petkim has fully integrated operations LDPE (350,000 ton/year) Bag, greenhouse covers, film, cable, toys, pipes, bottles, hose, packaging HDPE (96,000 ton/year Construction and water pipes, packaging film, toys, bottles, soft drink crates, barrels Ethylene plant MEG

  22. Slide 22: PETKIM stock performance

    PETKIM stock performance Mn unit 220 2,000 200 1,800 1,600 180 1,400 160 1,200 140 1,000 120 800 600 100 400 80 200 60 0 01/01/20 01/04/20 01/07/20 01/10/20 01/01/21 01/04/21 Volume PETKM TI equity XU100 index Closing price as of 31 Mar 2021 Market capitilization Free float (TL/share) (TL mn) (%) 5,

  23. Slide 23: 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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