Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS

Akcansa Cimento Sanayi Ve Ticaret A.s — Q1 2017 Earnings Presentation

22 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2017

  1. Slide 1: 2017 1Q Results

    2017 1Q Results Şahap Sarıer, GM Steffen Schebesta, CFO Slide 1 1

  2. Slide 2: Content

    Content Page 1. Market Overview 3 2. Financial Report 10 3. Outlook 15 Slide 2 2

  3. Slide 3: Turkish Cement Industry

    Turkish Cement Industry Domestic cement consumption increased by 4.7% to 68.2mt in 2016 and expected to be 69.5mt in 2017 M Tons 100,0 96 90 90,0 83 76 78 80,0 70 73 71 13.0 13.6 68 70,0 10.7 12.1 11.8 62 14.3 13.2 60,0 18.8 46 48 20.4 50,0 45 8.5 14.6 43 7.2 41 40,0 10.5 10.7 69.5 10.4 65.1 68.2 63

  4. Slide 4: Housing Loan Interest Rates

    Housing Loan Interest Rates Extension of mortgage payment terms up to 20 years supported by continuing lower interest rates Interest Rates (*) 1.2 1.18 1.16 1.15 1.14 1.01 1.00 1.01 1.0 0.96 0.95 0.96 0.94 0.91 0.8 0.6 0.4 0.2 0.0 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17

  5. Slide 5: Overview of Major Projects

    Overview of Major Projects Akcansa is a big beneficiary of increase in large infrastructure projects in the Marmara region 3rd Airport (2.000k m3) Major urban transformation areas in Istanbul North Marmara Highway (2.500k m3) Expected effect on Turkey 3rd Airport – Gayrettepe • Conversion of 6.500k

  6. Slide 6: Domestic Sales Volume Change (January YTD)

    Domestic Sales Volume Change (January YTD) 35% -16% 110% -24% -17% -16% 85% Source: TCMA Slide 6 6

  7. Slide 7: Clinker Stock Level Change (January YTD)

    Clinker Stock Level Change (January YTD) 17-16(January): +11% 17-16(January): -15% 2017(January):908kt 2017(January):973kt 17-16(January): +18% 17-16(January): +45% 2017(January): 976kt 2017(January): 1.296kt 17-16(January): -17% 2017(January): 463kt 17-16(January): -3% 17-16(January): +22% 2016(Dec

  8. Slide 8: Volume, Price and Energy Cost Trends of Akçansa

    Volume, Price and Energy Cost Trends of Akçansa Almost same sales volume of total cement and clinker vs PY Domestic Cement Export 1Q17 vs 1Q16 Price Volume 1Q17 vs 1Q16 Price (TL/ton) Volume ($/ton) Domestic Cement Export Cement Marmara Export Clinker Aegean Black Sea 1Q17 vs Energy Costs 1Q16 Coal

  9. Slide 9: Content

    Content Page 1. Market Overview 3 2. Financial Report 10 3. Outlook 15 Slide 9 9

  10. Slide 10: Income Statement

    Income Statement 7 TL/t increase in fuel cost and lower domestic cement sales price vs PY pressured gross margin Var. 1Q167 Company (M TL) 1Q16 1Q17 vs. 1Q16 % Ch. Q Net Sales 329,0 298,1 (30,9) -9,4% Cost of Sales (246,6) (250,6) (4,0) 1,6% Gross Margin 82,4 47,6 (34,9) -42,3% M&S Expenses (4,4) (5

  11. Slide 11: Cash Flow

    Cash Flow Higher working capital and lower operating income lead to decreased cash flow from operating activities and higher borrowing Company (M TL) 1Q16 1Q17 Cash flow from operating activities Operating income before the changes in working capital 82,3 45,8 Changes in working capital (25,9) (52,8

  12. Slide 12: Net Debt / EBITDA

    Net Debt / EBITDA M TL 1.8 450 406 1.6 400 1.4 350 1.2 263 1.1 300 241 247 249 1.0 225 230 226 250 0.8 0.8 1.0 0.7 179 185 200 163 151 0.6 0.6 0.6 0.5 0.6 0.4 0.5 150 0.4 91 0.4 0.6 85 100 70 0.2 0.2 50 0.2 0.2 0.0 0 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Net debt

  13. Slide 13: Balance Sheet

    Balance Sheet Variance Variance 2017 vs 2017 vs M TL 31.12.2016 31.03.2017 2016 M TL 31.12.2016 31.03.2017 2016 Current Assets 644,3 659,0 14,7 Current Liabilities 528,2 753,1 225,0 Cash & cash equivalents 23,4 24,6 1,2 Financial Liabilities 208,5 431,0 222,5 Trade receivables 416,8 392,0 (24,8) Tra

  14. Slide 14: Content

    Content Page 1. Market Overview 3 2. Financial Report 10 3. Outlook 15 s Slide 14 14

  15. Slide 15: 2017 Outlook

    2017 Outlook Subdued demand ahead of referendum and unfavourable weather conditions in 1Q17 Recovery expected starting with 2Q17 thanks to strong underlying demand FY17 Expectations Compared to AC16: Volume Price  Gradual increase in domestic cement prices Domestic Cement (TL/t) expected Export Cem

  16. Slide 16: Regional Sales Volumes - 2017 Expectation

    Regional Sales Volumes - 2017 Expectation Cement consumption is expected to grow by 2% Marmara Black Sea 2% 2.5% East Anatolia Central Anatolia 2% Aegean 1.5% 2.5% South East Anatolia Mediterranean 1.5% 2% Source: AKC estimations based on TCMA data Slide 16 16

  17. Slide 17: Follow Us

    We are also rising together in the social networks. AKCANOD Cimento sektorunuin kalbi Boies ‘bizimle ator. @ © Slide 17 AKGCAN@£) 17

  18. Slide 18: Contacts

    Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Esra Sulubacak, IR Specialist Phone +90 216 571 30 62 esra.sulubacak@akcansa.com.tr Fax +90 216 571 30 31 Banu Üçer, Corporate Communication Executive Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr Fax +90 216 571 30 11

  19. Slide 19: 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

  20. Slide 20: Appendix

    Appendix Slide 20 AKGAN@OQ) 20

  21. Slide 21: EBITDA Margins

    EBITDA Margins EBITDA Margin - Quarterly % 35 31.8 30.3 31.8 30.1 29.9 31.2 30 26.2 26.5 25.0 27.6 26.9 22.6 23.7 23.7 24.3 25 22.0 21.8 19.2 20 16.9 16.0 14.5 15 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 35 30 28.3 29.6 27.9 28.8 30.1 29.2 27.6 29.3 27.9 26.2 26.5 25.0 25 22.7 22.5 20.1 19.7 20.8 20

  22. Slide 22: 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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