Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q1 2022 Earnings Presentation
28 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, May 2022
Slide 1: 1Q22 Results Investor Presentation
1Q22 Results Investor Presentation 1
Slide 2: A strong set of results reflecting the strength of Petkim's positioning
A strong set of results reflecting the strength of Petkim’s positioning TL11.4bn TL1.6bn TL1.8bn Sales 20% QoQ EBITDA 14% margin Net 0,69TL/share -8% QoQ Income 9% QoQ TL7.3bn TL9bn Cash 1.3x current ratio Net 1.36x net debt/ EBITDA 100% QoQ Debt 11% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Margins came under pressure from high feedstock costs
Margins came under pressure from high feedstock costs Q122 highlights Integrated petrochemical margins squeezed between rapidly rising feedstock costs Petkim unit margins on average decreased to USD257/ton in Q122 from USD363/ton in 4Q21 Petkim announced its sustainability strategy and decarbonizati
Slide 4: Industry Environment
Industry Environment Global petrochemical market Petrochemical market in Turkey Hizmete Özel (Dış Taraflar) 4
Slide 5: Industry environment
Industry environment Monthly naphtha - ethylene spread (CIF MED spot prices) Monthly average Platts index* USD/tonne USD/tonne 1,532 1,320 1,200 1,461 2,600 1,433 2,400 1,292 1,303 1,271 1,229 1,294 1,187 1,116 1,256 1,254 1,259 1,194 2,200 1,143 1,213 1,173 900 2,000 1,188 1,132 1,800 1,180 1,147 1
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 1200 Global supply chain challenges 1000 Higher feedstock and energy costs 800 Ongoing geopolitical tensions 600 Profitability of integrated producers was confined towards the lower end range with ma
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Polymers 2000 Fibers 1600 1600 1300 1200 1000 800 700 400 400 0 -400 HDPE LDPE PP PVC MEG ACN PTA DEG Aromatics Others 1000 900 800 600 600 400 300 200 0 0 Benzene Paraxylene OrthoXylene PGP Crude C4 PA PY-GAS Source: S&P Glob
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 -800 Deficit 1Q21 2Q21 3Q21 4Q21 1Q22 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (%) Domestic consumption Petk
Slide 9: Operating and Financial Results
Operating and Financial Results Hizmete Özel (Dış Taraflar) 9
Slide 10: Capacity utilization and gross production
Capacity utilization and gross production Capacity utilization rates (%) Gross production (k ton) 100% 103% 100% 98% 814 832 807 838 710 91% 100% 900 100% 130% 90% 800 110% 80% 106% 80% 700 103% 103% 331 353 325 353 70% 96% 60% 600 254 60% 99% 101% 88% 500 90% 94% 94% 100 86 105 103 50% 40% 400 104
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 1Q22 Total petchem sales: USD812mn 317 219 312 267 208 91 Thermoplastics 110 98 102 33% 56 37% Fiber 74 78 68 75 61 82 Aromatics 71 76 67 57 Other Trade 333 307 296 301 276 13% 8% 9% 1Q21 2Q21 3Q21 4Q21 1Q22 T
Slide 12: In 1Q22, Petkim achieved TL 11,347mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 593k ton TL11,347mn 205 3,763 2,384 96 58 806 424 1,079 40 39 17 24 34 16 25 18 16 6 494 520 277 231 623 448 238 60 In 1Q22, Petkim achieved TL 11,347mn sales Exports breakdown via 593k ton sales Export Revenue (TL mn) Total export: T
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 1Q22 total COGS: 1Q22 inventory gain: TL9,746mn USD45,8mn 950 925 20.0 900 18.0 Other 826 37% 43% 36% 850 16.0 34% 45% 800 14.0 Trade 727 1% 725 2% 2% 2% 2% 750 12.0 4% 3% 7% 693 2% 2% Depreciation 5% 652 647 662 700 10.0 5% 8%
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 1,400 800 3,200 2,020 1,967 1,700 2,071 1,959 1,748 2,017 1,956 1,871 700 1,771 1,730 2,800 1,200 1,691 1,658 1,771 1,500 1,599 2,400 1,518 1,000 600 1,477 1,479 1,300 509 503 1,294 1,2
Slide 15: PETKIM 1Q22 income statement
PETKIM 1Q22 income statement FY 4Q TL mn Q1‘21 Q1'22 YoY Δ (%) 4Q‘21 Q1'22 QoQ Δ (%) Sales 5,034 11,421 127% 9,550 11,421 20% Cost of sales (3,823) (9,746) 155% (7,580) (9,746) 29% Gross profit 1,210 1,675 38% 1,971 1,675 (15%) Gross profit % 24% 15% 21% 15% Marketing and sales expenses (33) (83) 15
Slide 16: EBITDA continues on high level despite negative pricing delta
EBITDA continues on high level despite negative pricing delta 1Q22 segments’ results (mn TRY) -8% Quarterly change in EBITDA (mn TRY) Pricing delta TRY-886mn 16
Slide 17: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 4.7 3.7 Export 3.6 2.7 637 692 644 695 1.7 Domestic 593 6.6 5.8 3.3 3.8 4.0 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Financial EBITDA and net income (mn TL) Margins (%) highlights 1.9 25.6% 1.7 1.7 1.8 24.3% 25.1% 1.6 1.6 1.3 1.4 EBITDA 1.2 18.3% margin
Slide 18: Liquidity highlights
Liquidity highlights Deposits (%) Maturity profile (mn USD) USD501mn USD500mn Eurobond is planning to be refin 6% 130 As first publicized via an announcement by the Capital USD TRY EUR Markets Board on March 31, 2022, the company continues reviewing different funding alternatives, including a possib
Slide 19: Sustainability and ESG
Sustainability and ESG Hizmete Özel (Dış Taraflar) 19
Slide 20: Our sustainability strategy will be built on two pillars
Our sustainability strategy will be built on two pillars Climate/CO2 Targets3 3 2 Long- term 1 2030 onwards Mid-term Achieve long term decarbonization targets Short-term 2 2025-2030 for decreased emissions: Decarbon- 2021-2025 Develop internal carbon pricing 40% reduction by 2035 for Scope 1 & 21
Slide 21: Ranking 8th among 206 players in the commodity chemicals
Petkim completed the assessment with a score of 22.7 Ranking 8th among 206 players in the commodity chemicals ESG Risk Rating 22.7 Medium Risk Sustainalytics ESG Risk Rating Ranking NEGL LOW MED HIGH SEVERE Rank Percentile (1st = lowest risk) (1st = lowest risk) 0-10 10-20 20-30 30-40 40+ Global Uni
Slide 22: Sustainability key performance indicators – 2021 & 2022
Sustainability key performance indicators – 2021 & 2022 Stakeholder related targets1 2021 2021 2022 Key Highlights Targets Results Targets Climate & Decarbonization 1% 4,7% 1% Implementation of energy efficiency and electrification initiatives to Environment decrease carbon intensity (decarbonizatio
Slide 23: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 23
Slide 24: PETKIM 1Q22 balance sheet
PETKIM 1Q22 balance sheet TL mn 12M'21 3M'22 Financial highlights 12M'21 3M'22 Cash and cash equivalents 3,665 7,330 Net debt position (8,106) (9,018) Trade receivable Working capital (3,362) (2,272) 5,107 5,680 Inventory 3,540 Days sales outstanding 43 43 4,960 Other receivables Days payable outsta
Slide 25: 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
Slide 26: 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
Slide 27: PETKIM stock performance
PETKIM stock performance Mn unit 1,200 220 1,000 200 180 800 160 600 140 400 120 200 100 80 0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 Volume PETKM TI Equity XU100 Index Market capitalization Free float Closing price (TL/share) (
Slide 28: 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
Petkim Petrokimya Holding A.Ş. — Q1 2022 Earnings Presentation on 6ix