Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS
Akcansa Cimento Sanayi Ve Ticaret A.s — Q1 2018 Earnings Presentation
28 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2018
Slide 1: 2018 1Q Results
2018 1Q Results Şahap Sarıer, GM Steffen Schebesta, CFO Slide 1
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by Akçansa Çimento Sanayi ve Ticaret A.Ş. for the sole purpose of providing information relating to Akçansa (Information). This Presentation is based on public information and data provided by Akçansa management and basically demonstrates
Slide 3: Content
Content Page 1. Market Overview 4 2. Financial Report 12 3. Outlook 19 Slide 3
Slide 4: Key Highlights
Key Highlights ▪ 2018 Q1 ✓ Akçansa’s domestic cement volume is up 7% in Q1 driven by good weather and strong demand ✓ Higher energy costs and devalued TL compared to 1Q17 (fuel price +35%) were overcompensated by positive effect of price increase ✓ Operating income increased by 114% from 23.3 mTL to
Slide 5: Turkish Cement Industry
Turkish Cement Industry Domestic consumption increased by 9% in 2017; 2018 growth expected to be 4-5% This presentation/report demonstrates "estimated results" of market research done by Akçansa Çimento Sanayi ve Ticaret A.Ş. in addition to Turkish Cement Manufacturers’ Association figures Source: T
Slide 6: Construction Sector
Construction Sector Sector growth by +8.9% in FY17 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 1. Private Housing 57% 50% 51% 54% 52% 53% 53% 51% 45% 45% 42% 41% 2. Commercial 16% 13% 9% 11% 10% 11% 9% 10% 9% 8% 8% 7% 3. Public 5% 5% 5% 5% 5% 5% 5% 5% 7% 6% 6% 6% 4. Infrastructure/P
Slide 7: Domestic Sales Volume Change (February YTD)
Domestic Sales Volume Change (February YTD) February YTD domestic market consumption increased by 32% in Turkey 29% 34% 45% 79% 30% 13% 4% Source: TCMA and Akçansa estimates Slide 7
Slide 8: Volumes, Prices and Energy Costs
Volumes, Prices and Energy Costs Increase in both domestic and export prices Readymix 1Q18 vs 1Q17 Price Volume (TL/m3) General ▪ Increase in RMC volume and prices in Marmara all regions Aegean Black Sea Domestic Cement 1Q18 vs 1Q17 Price Volume (TL/ton) ▪ Higher domestic cement prices in 1Q due to
Slide 9: Sales Breakdown
Sales Breakdown Cement Shipments RMX Shipments [M ton] [M m3] 3.0 +22% +1% Domestic Cement Domestic Clinker 1.7 1.7 Export Cement 1.5 Export Clinker 1.3 1.4 +7% 0.8 0.6 0.0 0.2 0.0 0.3 +44% 0.2 0.0 0.0 1Q17 1Q18 1Q17 1Q18 *) Domestic cement figures include Karçimsa and transfer to RMC Source: AKC ma
Slide 10: Export Markets
Export Markets West Africa and USA are the major export markets in 1Q17 and 1Q18 1Q17 LA Cement Other Latin America 0,2 mt 0.0% 5.5% USA 40.6% 53.9% West Africa Bagged Cement 0.0% & Clinker North Africa 0,1 mt 1Q18 Other 0.1% West Africa 34.5% 65.4% 0.0% USA North Africa Source: AKC management repor
Slide 11: Content
Content Page 1. Market Overview 4 2. Financial Report 12 3. Outlook 19 Slide 11
Slide 12: Income Statement
Income Statement Company (M TL) 1Q18 1Q17 % Ch. Q Net Sales 387,6 298,1 30,0% Cost of Sales (317,8) (250,6) 26,8% Gross Margin 69,8 47,6 46,8% Marketing&Sales Expense (4,5) (5,1) -10,5% General Management Expenses (16,2) (14,9) 8,6% EBIT 49,1 27,6 77,9% Other Operating Income/Charges 0,6 (4,3) -113,
Slide 13: Net Income Bridge
Net Income Bridge Net income above PY, but in 1Q negatively impacted by lower dividend income 41 63 16 Energy Cost Other 25 (***) 5 9 4 6 42 34 1Q17 Price(*) Volume&Cost Other Dividend income Fin. Inc.&Charges Taxes 1Q18 of Sales(**) Source: CMB financials and AKC calculations *) Change in NSP/t x o
Slide 14: Cash Flow
Cash Flow Company (M TL) 1Q17 1Q18 Cash flow from operating activities Operating income before the changes in working capital 45,8 73,8 Changes in working capital (52,8) (6,9) Taxes paid (10,7) (8,9) Other items (5,4) (5,0) (23,1) 53,0 Cash flow from investing activities Sale of financial investment
Slide 15: Total Capex Distribution
Total Capex Distribution 2018 FY Capex is expected to be roughly in line with 2017 M TL % 100% 40 32 80% 47% 30 56% 25 60% 18 20 12 40% 33% 32% 10 8 10 20% 20% 13% 5 4 0% 0 1Q17 1Q18 1Q17 1Q18 Legal & Environment (L&E) Replacement (Rep) Improvement & Growth (I&G) Slide 15
Slide 16: Net Debt / EBITDA
Net Debt / EBITDA Net debt 22mTL lower than in Q1’17 M TL -5% 1.8 455 500 423 450 1.6 406 1.4 1.4 384 1.4 333 400 1.2 1.1 1.1 350 1.2 300 1.0 249 225 230 226 250 0.8 0.6 179 185 0.6 0.6 0.5 200 0.6 0.4 0.5 91 150 0.4 70 0.2 100 0.2 50 0.2 0.0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Slide 17: Balance Sheet
Balance Sheet Variance Variance Mio TL 31.03.2017 31.12.2017 31.03.2018 2018 vs 2017 Mio TL 31.03.2017 31.12.2017 31.03.2018 2018 vs 2017 Current Assets 658,9 713,0 714,0 1,0 Current Liabilities 753,1 715,1 716,2 1,2 Cash & cash equivalents 24,6 52,7 46,0 (6,8) Financial Liabilities 431,0 385,4 329,
Slide 18: Content
Content Page 1. Market Overview 4 2. Financial Report 12 3. Outlook 19 s Slide 18
Slide 19: 2018 Outlook
2018 Outlook Better performance in FY2018 Expectations LE18 vs FY17 Volume Price Compared to AC17: Domestic Cement (TL/t) ▪ GDP and construction sector outlook continue to be Export Cement ($/t) positive Export Clinker ($/t) ▪ Domestic cement volumes expected to moderately RMC (TL/m3) increase (*) 1
Slide 20: Overview of Major Projects
Projects 0-2 years Overview of Major Projects Projects 3-5 years Substantial number of high volume projects in Akçansa’s core region Marmara 3rd Airport (1.500k m3) Istanbul Tunnel Major urban transformation areas in Istanbul (8m m3) North Marmara Highway (2.500k m3) Expected effect on Turkey 3rd Ai
Slide 21: 1915 Canakkale Bridge Project
1915 Canakkale Bridge Project Akçansa provides concrete for Canakkale Bridge! Çanakkale 1915 Bridge Project Basic Info: ▪ Groundbreaking ceremony was held on 18 March 2017. ▪ Construction − The longest open suspension bridge in the world − 2X3 motorway trip − Width: 36 m − Total lenght of the bridge
Slide 22: Kanal İstanbul Project
‘Kanal İstanbul’ Project Akçansa has the closest plant to the project ▪ Channel lenght: 45 km ▪ Est. CEM cons.: ~10 mton ▪ Est. RMC cons.: ~35 mm3 ▪ Est. Project cost: ~60 bn TL Slide 22
Slide 23: Follow Us
Follow Us We are also rising together in the social networks. f fakcansa ® fakcansa in /company/akcansa MenDELneRS. AKGANOD Cimento sektorunutn kalbi bizimle atryor. fans reoasnc 0) OD Cy) AKGAN@Q) Slide 23
Slide 24: Contacts
Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Ülgen Eryürek Aslan, IR Manager Phone +90 216 571 30 17 ulgen.eryurek@akcansa.com.tr Fax +90 216 571 30 31 IR.info@akcansa.com.tr Esra Sulubacak Altan, IR Specialist Phone +90 216 571 30 62 esra.sulubacak@akcansa.com.tr Fa
Slide 25: Appendix
Appendix AKCAN@Q)
Slide 26: EBITDA Margins
EBITDA Margins EBITDA Margin - Quarterly % 35 31.8 31.2 31.8 30.3 30 26.5 26.9 25.0 23.6 24.2 25 22.1 20 18.1 18.2 16.0 15 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 35 29.6 30.1 29.2 29.3 30 26.5 27.9 27.9 25.0 25 19.6 20.3 20 18.1 17.2 16.0 15 10 5 0 3M 6M 9M 12M 2015 2016 2017 2018 Source: AKC mana
Slide 27: Dividend Paid, Dividend Yield and Payout Ratio
Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % -3% 257.6 9.2 91.5 90.9 91.6 91.2 237.2 8.7 86.1 226.3 6.6 6.8 6.2 144.4 128.0 2014 2015 2016 2017(*) 2018 2014 2015 2016 2017 2018 2013 2014 2015 2016(*) 2017 *) Adjusted for extraordinary gain from sale of
Slide 28: General Basics About Cement and RMC Production
General Basics About Cement and RMC Production Production ▪1.6 ton of limestone are consumed to produce 1 ton of clinker ▪75-90% clinker is consumed to produce 1 ton of cement ▪250-300 kg of cement in 1 m3 RMC produced ▪1.5-2.0 ton of aggregate in 1 m3 RMC produced depending on the type of RMC produ
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