Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM

Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q2 2021 Earnings Presentation

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

  1. Slide 1: 2Q21 Results Investor Presentation

    2Q21 Results Investor Presentation 1

  2. 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 TL7.4bn TL1.9bn TL1.3bn Sales 47% QoQ EBITDA 25.6% margin Net 0.88 TL/share 54% QoQ Income 49% QoQ TL6.2bn TL4.7bn Cash Net 1.06x net debt/ 2x current ratio EBITDA 4% 1Q21 Debt -2% 1Q21 Hizmete Özel (Dış Taraflar) 2

  3. Slide 3: Record quarterly earnings driven by strong demand and tight supply

    Record quarterly earnings driven by strong demand and tight supply Q221 highlights Further prices increases across Cost savings and integrated the portfolio especially co- production significantly products supported earnings 20% QoQ increase in USD11.4mn inventory prices gain Higher trading share in

  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 1,294 1,187 1,180 1,147 1,143 1,213 2,000 1,116 1,116 1,132 1,800 1,024 1,070 800 989 1,600 1,400 957 712 678 677 689 747 893 616 1,200 710 634 590 644 663 758 1,

  6. Slide 6: Industry environment

    Industry environment Product groups spread (over naphtha CIF MED), USD/MT The positive market dynamics observed in the first quarter 1400 carried well in to 2Q21 1200 Industry supply constraints 1000 Strong consumer-driven demand 800 Recovery in various end markets 600 Pricing momentum and integrate

  7. Slide 7: Industry environment

    Industry environment Product groups spread (over naphtha CIF MED), USD/MT 1500 Polymers 2000 Fibers 1200 1600 1200 900 800 600 400 300 0 HDPE LDPE PP PVC MEG ACN PTA DEG Aromatics Others 1000 1300 800 1000 600 700 400 400 200 100 0 -200 Benzene Paraxylene OrthoXylene PGP Crude C4 PA PY-GAS Source: P

  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 2Q20 3Q20 4Q20 1Q21 2Q21 (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) 102% 99% 100% 103% 729 839 776 814 832 91% 100% 900 100% 115% 113% 115% 800 90% 103% 80% 99% 96% 80% 700 93% 89% 360 331 353 328 70% 600 99% 94% 60% 290 60% 90% 86% 500 100 86 50% 75% 83% 40% 400 86 106

  11. Slide 11: Breakdown of petchem sales

    Breakdown of petchem sales Breakdown of petchem sales (mn USD) Breakdown of petchem sales (%) Total petchem sales: USD880mn 317 208 91 Thermoplastics 156 74 56 36% Fiber 38% 123 61 82 Aromatics 81 93 57 67 44 Other 33 17 23 12 40 21 Trade 333 276 182 210 151 11% 9% 6% 2Q20 3Q20 4Q20 1Q21 2Q21 Thermo

  12. Slide 12: In 2Q21, Petkim achieved TL7,356mn sales

    Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 692k ton TL7,356mn 257 2,649 1,346 82 72 40 26 26 21 42 600 571 35 23 14 17 19 17 490 488 285 95 100 263 92 212 126 38 In 2Q21, Petkim achieved Export Revenue (TL mn) Total export: Revenue breakdown (%) Exports breakdown TL7,356mn sal

  13. Slide 13: Breakdown of total COGS

    Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 2Q21 total COGS: 2Q21 inventory gain: TL5,513mn USD11.4mn 630 8.0 609 610 7.0 9% 2 584 590 33% 37% 6.0 35% 45% 570 29% 552 Other 538 4% 550 522 5.0 6% 2% 5% 3% 4% 7% 4% 5% 2% Trade 530 4.0 7% 5% 3% 5% Depreciation 510 11% 3.0 4.

  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 2,017 1,956 1,700 800 1,599 1,691 1200 700 2,400 1,500 1,477 1000 600 2,000 1,327 1,300 509 503 437 473 1,600 974 1,010 1,072 1,116 1,181 1,518 1,100 800 500 927 903 1,479 4

  15. Slide 15: PETKIM 2Q21 income statement

    PETKIM 2Q21 income statement FY 2Q TL mn 2Q‘20 2Q'21 YoY Δ (%) 1Q‘21 2Q'21 QoQ Δ (%) Sales 2,242 7,397 230% 5,034 7,397 47% Cost of sales (1,857) (5,513) 197% (3,823) (5,513) 44% Gross profit 385 1,884 389% 1,210 1,884 56% Gross profit % 17.2% 25.5% 24.0% 25.5% Marketing and sales expenses (27) (42)

  16. Slide 16: Strong positive pricing delta derives EBITDA growth

    Strong positive pricing delta derives EBITDA growth 2Q21 segments’ results (mn TRY) 54% Quarterly change in EBITDA (mn TRY) Pricing delta +227 16

  17. Slide 17: Financial highlights

    Sales tonnes (k ton) Revenue (bn TL) 3.6 1.7 Export 671 692 1.3 638 637 1.0 548 Domestic 0.7 3.3 3.8 2.0 2.8 1.5 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Financial EBITDA and net income (mn TL) Margins (%) highlights 1,890 24.3% 25.6% 1,325 18.4% 19.2% 1,225 17.0% EBITDA margin 892 EBITDA 1

  18. Slide 18: Liquidity highlights

    Liquidity highlights Deposits (%) Maturity profile (mn USD) USD708mn 9% USD TRY EUR Short term USD500mn 22% Eurobond is Eurobond 500 expected to refin 335 Long term 69% 178 15 33 30 33 41 40 25 2 2021 2022 2023 2024 2025 2026 2027 2028 Cash flow from operations and CAPEX (mn USD) Net debt position (

  19. Slide 19: Supporting Slides

    Supporting Slides Hizmete Özel (Dış Taraflar) 19

  20. Slide 20: PETKIM 2Q21 balance sheet

    PETKIM 2Q21 balance sheet TL mn 3M'21 6M'21 Financial highlights 3M'21 6M'21 Cash and cash equivalents 5,942 6,174 Net debt position (4,766) (4,687) Trade receivable 2,605 3,408 Working capital (177) (11) Inventory 1.222 1,734 Days sales outstanding 52 45 Other receivables 7 26 Days payable outstand

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: PETKIM stock performance

    PETKIM stock performance Mn unit 140 1000 900 130 800 700 120 600 110 500 400 100 300 200 90 100 80 0 01/01/21 01/21/21 02/10/21 03/02/21 03/22/21 04/11/21 05/01/21 05/21/21 06/10/21 06/30/21 07/20/21 08/09/21 Volume PETKİM BIST100 Closing price as of 30 June 2021 Market capitalization Free float (T

  24. Slide 24: 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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