Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Investor Presentation (September 2023)
33 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's investor presentation, September 2023
Slide 1: Diversified Building Materials Player
ÇİMSA Diversified Building Materials Player Investor Presentation September 2023
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Çimsa Çimento Sanayi ve Ticaret A.Ş. (“CIMSA”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 3: Diversified Global Footprint in Building Materials Industry
Diversified Global Footprint in Building Materials Industry Production Plants Port Access – R&D Center Grinding Facility International Assets Export Opportunity
Slide 4: Leading Global Positions in Lucrative Segments
Leading Global Positions in Lucrative Segments ✓A strong player with a balanced and diversified 2nd Largest product portfolio, special focus on high Player in profitable white cement and calcium White alimunated cement Cement ✓Strong local and global sales network with strategically located terminal
Slide 5: Transforming to Global Building Materials Player
✓ Strategic partnership with Sabancı Holding – Transforming to Global Building Materials Player Establishment of Sabancı Building Solutions B.V. – 2020 ✓ Acquisiton of Bunol Plant to strengthen leading position in Global White Cement Market -2021 ✓ Asset Optimisation in Domestic Market – 2020 - Dive
Slide 6: Creating Value Through Portfolio Optimization
Creating Value Through Portfolio Optimization Strong & Profitable Core in Grey • Optimised grey operations through asset sales • Target excellence and efficiency for sustainable competitive advantage - Increasing alternative fuel & Focus on sustainability investments • Improve export capability in o
Slide 7: Expanded Global Footprint And Grew Market Share
Expanded Global Footprint And Grew Market Share With Cimsa Americas Investment & Bunol Plant Acquisition Germany [Hamburg] Spain [Bunol] White Clinker Italy [Trieste] 0.6 mt United States Turkey [Houston] Spain [Sevilla] [Eskisehir & Mersin] Grinding : 0.3 mt White Clinker 1.7mt 7 STRATEGIC TERMINAL
Slide 8: The World's Second Largest White Cement Player
The World’s Second Largest White Cement Player With Sales More Than 70 Countries SPAIN GREECE MOROCCO TURKEY GERMANY NETHERLANDS ITALY USA 78% of Total Sales Realised in 10 Countries BRAZIL 8
Slide 9: High Profitable Value Added Product: Calcium Aluminates
High Profitable –Value Added Product : Calcium Aluminates • Contributes to CO2 net zero targets via good CO2 emission per strength • Lower limestone consumption Environment • Ensures efficiency and longevity • Profitable and niche product in construction Strategy chemicals market • Higher stability
Slide 10: Flycrete: Ready to Fly Concrete
cim@® Not just ready-mixed concrete, “Ready to fly concrete” Runways ready for landing in 3 hours with Flyerete by Cimsa 25 MPa strength in 3 hours High abrasion resistance. Flycrete offers an excellent solution for airport runways and industrial floors, providing speed and durability. FLYCRETE READ
Slide 11: Sustainable Solutions and Innovative Technologies for Building Materials
Sustainable Solutions and Innovative Technologies for Building Materials Sabancı Global Technology Center GMBH is established in Technical University of Munich Campus. - R&D activities with customers and Universities - High customer satisfaction - Increasing synergy with the R&D center located in Tu
Slide 12: Dedicated Sustainability Strategy
Dedicated Sustainability Strategy Contributing to low-carbon economy transition 22% through strong R&D, innovation and technological Reduction in Net Specific CO2 Emissions transformation. ----------------------------------------------- 40% Alternative Fuel Usage Pioneering development of sustainabl
Slide 13: ESG Pioneer in Cement and Building Materials Industry
ESG Pioneer in Cement and Building Materials Industry Obtaining IREC The First Cement Certificate for 351.000 The Environmental Product Company in MWh electrical energy and Declaration Certificate BIST 25 Sustainability Index. certification of Mersin WHR for 3 Products. facility production in 2023 E
Slide 14: Historical Highest EBITDA & Net Income in 9M 2023
Çimsa Hıstorıcal Hıghest Ebıtda & Net Income In 9M 2023 NET SALES (MTL) EBITDA (MTL) NET INCOME (MTL)* 53% 101% 123% 125% 2.002 2.036 57% 9.220 145% 6.026 947 995 832 914 3.808 2.431 387 369 Q3'22 Q3'23 9M'22 9M'23 Q3'22 Q3'23 9M'22 9M'23 Q3'22 Q3'23 9M'22 9M'23 16% 25% 17% 22% * Equity Holders, Exc
Slide 15: Strong Cash Management With Significant Deleveraging
Strong Cash Management With Significant Deleveraging ✓Optimization of production to manage inventory levels Net 0,4X ✓Strict overdue receivable management Debt/EBITDA ✓Payment term negotiations with suppliers NWC/SALES* 15% 13 month average NWC/ LTM Sales 600 ✓ Increasing Dividend Focus 400 200 400
Slide 16: APPENDIX: 2023 Q3 Market & Operations
APPENDIX: 2023 Q3 Market & Operations September 2023
Slide 17: Turkish Cement Market
Turkey’s GDP growth realized 5,6% growth in 2022. 11,1% 11,4% 9,0% 8,5% 8,5% 7,1% 7,5% 6,1% 5,6% 5,0% 4,8% 5,2% 3,2% 3,0% 1,9% 0,9% 0,9% -4,7% GDP Growth Rate % Decrease in Turkey domestic cement consumption is recorded 7,0% in 2022. 21,7% 19,4% 16,0% 23,20% 11,2% 10,2% 9,9% 9,1% 4,8% 4,6% 1,6% 4,7%
Slide 18: Turkish Cement Market
Turkey is the biggest cement producer in Europe, with high capacity utilization rates. Turkey has also 2nd place in World cement export. Cement & Clinker Export (mt) Cement & Clinker Domestic Sales (mt) Cement Production Capacity (mt) 100 100 95 97 94 87 84 78 80 75 76 13 73 31 69 70 11 14 31 63 12
Slide 19: Global White Cement Market
Global white cement demand is forecasted to be around 21 mt in 2021 & 2022 21 21 21 21 20 20 20 20 21 20 19 20 20 19 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *2022 Northern Russia & America Eastern • Global white cement production capacity 7% Europe Latam 6% reached to 33,9 M
Slide 20: Market Positioning
MARKET POSITIONING ÇİMSA WHITE MARKET Latin POSITIONING America Turkey 7% MENA 10% 26% Northern America 12% Russia & Western Eastern Europe Europe 27% 18% Çimsa’s market share in global white cement market improved Çimsa’s white cement sales network expands to from 5,3% to 7,2% in last decade. over
Slide 21: Integrated Plants in Mersin, Eskişehir, Afyon
3 INTEGRATED PLANTS IN MERSİN, ESKİŞEHİR, AFYON ÇİMSA GREY SOLID NETWORK ESKİŞEHİR AFYON MERSİN 3.6 Mt GREY 1.7 Mt WHITE Clinker Capacity Clinker Capacity
Slide 22: Special Products
SPECIAL PRODUCTS CalciumAlimunateCement CAC Sales (Kton) CAC Sales (KUSD) 51 54 15.209 13.910 41 12.114 34 35 10.525 9.974 14 13 4.399 3.889 2018 2019 2020 2021 2022 2022 2023 Q3 Q3 2018 2019 2020 2021 2022 2022 Q32023 Q3
Slide 23: Operational Results
OPERATIONAL RESULTS* White Cement & Clinker Sales Volumes (M ton) Grey Cement & Clinker Sales Volumes (M ton) Domestic sales Export sales Domestic sales Export sales 1,39 1,39 1,50 1,72 1,68 4,90 4,70 5,60 5,78 5,07 1,50 1,47 1,29 1,20 4,30 4,22 1,13 3,90 3,80 3,00 1,70 1,70 1,56 0,26 1,27 0,19 0,21
Slide 24: Operational Results - Quarterly
OPERATIONAL RESULTS* - Quarterly Grey Cement & Clinker Sales Volumes (K ton) White Cement & Clinker Sales Volumes (K ton) Domestic Export Domestic Export 1.275 1.291 423 392 981 1.031 377 335 294 260 46 57 Q3'22 Q3'23 Q3'22 Q3'23 24
Slide 25: Çimsa Grey Clinker Variable Cost Structure
ÇİMSA GREY CLINKER VARIABLE COST STRUCTURE 2022 Q3 2023 Q3 3% 5% 8% 10% 26% 28% 63% 57% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other
Slide 26: Balance Sheet
BALANCE SHEET MTL 2023 9M 2022 YE MTL 2023 9M 2022 YE Current Assets 7.249 5.938 Current Liabilities 4.443 4.990 Borrowings* 2.291 2.796 Cash and cash equivalents 1.603 1.603 Trade payables 1.274 1.829 Trade receivables 3.008 1.869 Derivative financial liabilities 0 0 Other receivables 1 1 Deferred
Slide 27: Income Statement
INCOME STATEMENT 2023 9M Income Statement (MTL) 2023 2022 Q3 2023 Q3 2022 Sales 9.220 6.026 3.808 2.431 Cost of sales (-) -6.910 -4.900 -2.740 -1.988 GROSS PROFIT 2.310 1.126 1.068 443 General and administrative expense (-) -415 -231 -159 -100 Marketing, selling and distribution expense (-) -23 -9 -
Slide 28: Cash Flow
CASH FLOW MTL 2023 9M 2022 9M A. CASH FLOWS FROM OPERATING ACTIVITIES 952 877 Profit before taxation 2.389 2.848 Adjustments to reconcile net profit/loss for the period 339 (1.610) Changes in working capital (1.553) (298) Cash flows from operations 1.175 940 Payments related to employee benefits, se
Slide 29: APPENDIX: Sustainability
APPENDIX: SUSTAINABILITY September 2023
Slide 30: Overview of Çimsa's Sustainability Roadmap & Targets
OVERVIEW OF ÇİMSA’S SUSTAINABILITY ROADMAP & TARGETS The main targets included in Çimsa's agenda within the scope of Sabancı Holding's sustainability roadmap are given below: Reaching zero work Being Net Zero Reviewing our Developing accident with Emissions and processes with a sustainable internati
Slide 31: Science Based Targets
SCIENCE BASED TARGETS Submission Validation is ongoing • On March 30 2023, a • Goal development and validation processes during Q2-Q4 • Target communication • Annual emission commitment was made to • Time to deliver target after commitment: 24 months studies after SBTi approval reporting set a near-
Slide 32: 2030 Sustainability Targets
SustainabilityTargets Our 2030 Sustainability Climate Crisis and Governance and Digitalization Targets Sustainable Business Models Society and Human Focus 22% Zero Reduction of net specific CO2 Fatal Accidents We create sustainable emissions on cementitious product stakeholder value through basis lo
Slide 33: Thank You
THANK YOU September 2023
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