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

Akcansa Cimento Sanayi Ve Ticaret A.s — H1 2017 Earnings Presentation

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

  1. Slide 1: 2017 1H Results

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

  2. 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

  3. Slide 3: Content

    Content Page 1. Market Overview 4 2. Financial Report 14 3. Outlook 21 Slide 3

  4. Slide 4: Key Highlights

    Key Highlights ▪ 2017 Q2 ✓ Akçansa’s domestic volumes down 6% in Q2 impacted by Ramadan effect in June and strong comparison base ✓ May YTD domestic market consumption down by 3% in Marmara ✓ Higher energy costs and devalued TL (fuel price +54%; electricity costs +8%) put pressure on margins ✓ Q2 EB

  5. Slide 5: Turkish Cement Industry

    Turkish Cement Industry While domestic consumption decreased by 2,2% May YTD, increasing trend expected starting from July; full year growth expected to be 2% This presentation/report demonstrates "estimated results" of market research done by Akçansa Çimento Sanayi ve Ticaret A.Ş. in addition to Tu

  6. Slide 6: Construction Permits

    Construction Permits Cement consumption shifts from private housing to infrastructure 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 1. Private Housing 62% 57% 50% 51% 54% 52% 53% 53% 51% 47% 49% 45% 2. Commercial 14% 16% 13% 9% 11% 10% 11% 9% 10% 9% 8% 8% 3. Public 4% 5% 5% 5% 5% 5% 5

  7. Slide 7: Overview of Major Projects

    Projects 0-2 years 11,3 mm3 Overview of Major Projects Projects 3-5 years 27,9 mm3 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 effec

  8. Slide 8: Domestic Sales Volume Change (May YTD)

    Domestic Sales Volume Change (May YTD) 6% -3% 8% 1% -6% -14% 11% Source: TCMA Slide 8

  9. Slide 9: Volume, Price and Energy Cost vs. 1H16

    Volume, Price and Energy Cost vs. 1H16 Significant increase in energy costs vs. PY; export cement and clinker prices up in TL Export Domestic Cement 1H17 vs 1H16 Price 1H17 vs 1H16 Price Volume ($/ton) Volume (TL/ton) Export Cement Domestic Cement Export Clinker Marmara Aegean Black Sea 1H17 vs Ener

  10. Slide 10: Sales Breakdown

    Sales Breakdown Cement Shipments RMX Shipments [M ton] [M m3] -25% 1H16 4.5 -4% 3.9 1H17 3.8 Domestic Cement Domestic Clinker 3.0 Export Cement 3.2 3.0 2.0 Export Clinker 1.5 1.5 0.0 0.0 0.5 0.5 0.0 0.1 0.2 1H16 1H17 1H16 1H17 *) Domestic cement figures include Karçimsa and transfer to RMC Source: A

  11. Slide 11: Export Markets

    Export Markets Shift from Latin America and North Africa to USA with higher Low Alkali Cement margins 1H16 Other Latin America 9.5% 13.3% 23.1% West Africa 49.6% 4.5% USA North Africa 1H17 Other Latin America 0.0% 2.8% West Africa 33.8% 60.5% 0.0% USA North Africa West Africa and USA are the major e

  12. Slide 12: Akcansa has by far the highest share in export to the USA in H1

    Akcansa has by far the highest share in export to the USA in H1 Seaborne Trade June YTD EXPORT VOLUMES AKCANSA OTHERS* Volumes: k t 2016 2017 ∆ 2016 Trend 2016 2017 ∆ 2016 Trend Bulk Cement 349 407 16,9%  528 787 48,9%  - USA 335 407 21,7% 8 53 562,5% - Other Countries 14 - - 520 734 41,2% Bagged

  13. Slide 13: Content

    Content Page 1. Market Overview 4 2. Financial Report 14 3. Outlook 21 Slide 13

  14. Slide 14: Income Statement

    Income Statement Company (M TL) 2Q16 2Q17 % Ch. Q 1H16 1H17 % Ch. YTD Net Sales 406,9 391,4 -3,8% 735,9 689,5 -6,3% Cost of Sales (282,6) (319,3) 13,0% (529,2) (569,9) 7,7% Gross Margin 124,3 72,0 -42,0% 206,7 119,6 -42,1% Marketing&Sales Expense (5,1) (5,4) 5,9% (9,5) (10,4) 9,9% General Management

  15. Slide 15: Net Income Bridge

    Net Income Bridge M TL 180 170 160 150 3 9 81 142 140 130 Energy 120 Cost 28 110 ~46m FX of 100 Energy 18 90 Cost 80 Other 70 (****) 35 60 8 22 56 50 13 40 30 20 10 0 1H16 Price(*) Volume(**) Cost of Sales(***) Other Fin. Taxes 1H17 Inc.&Charges Source: CMB financials and AKC calculations *) Change

  16. Slide 16: Cash Flow

    Cash Flow Company (M TL) 1H16 1H17 Cash flow from operating activities Operating income before the changes in working capital 207,0 115,9 Changes in working capital (43,6) (59,9) Taxes paid (26,9) (14,9) Other items 4,1 (7,0) 140,5 34,2 Cash flow from investing activities Tangible and intangible fix

  17. Slide 17: Total Capex Distribution

    Total Capex Distribution 2017 capex target is 125 mTL, 8 mTL lower than 2016 AC M TL % 60 59 100% 50 48 80% 43% 40% 24 40 Key Growth Investments in 1H17: 21 60% 1. (I&G) Purchasing of professional cargo loaders for 30 Ambarlı Port 2. (I&G) Purchasing of mobile crane for Ambarlı Port 40% 43% 25 44% 2

  18. Slide 18: Net Debt / EBITDA

    Net Debt / EBITDA M TL 1.8 455 500 1.6 406 450 1.4 1.4 400 1.1 350 1.2 241 300 1.0 247 249 0.8 225 230 226 250 0.8 0.7 185 163 0.6 179 0.6 0.6 200 151 0.5 0.6 0.4 0.5 0.4 91 150 0.4 0.6 85 70 0.2 100 0.2 50 0.2 0.2 0.0 0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Net

  19. Slide 19: Balance Sheet

    Balance Sheet Variance Variance Mio TL 30.06.2016 31.12.2016 30.06.2017 2017 vs 2016 Mio TL 30.06.2016 31.12.2016 30.06.2017 2017 vs 2016 Current Assets 614,9 644,3 688,5 73,6 Current Liabilities 555,5 528,2 773,4 217,9 Cash & cash equivalents 46,5 23,4 41,0 (5,6) Financial Liabilities 250,3 208,5 4

  20. Slide 20: Content

    Content Page 1. Market Overview 4 2. Financial Report 14 3. Outlook 21 s Slide 20

  21. Slide 21: 2017 Outlook

    2017 Outlook Full year volumes expected to be above prior year; H2 comparison base easier Expectations FY17 Compared to AC16: Volume Price ▪ Gradual increase in domestic cement prices in H2 Domestic Cement (TL/t) Export Cement ($/t) ▪ Export cement prices in TL expected to stay clearly Export Clinke

  22. Slide 22: Follow Us

    We are also rising together in the social networks. AKCANOD Cimento sektorunuin kalbi Boies ‘bizimle ator. @ oO) Slide 22 AKGCAN@£)

  23. Slide 23: 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

  24. Slide 24: Appendix

    Appendix AKCAN@Q)

  25. Slide 25: 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 18.2 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

  26. Slide 26: Dividend Paid, Dividend Yield and Payout Ratio

    Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % +21% 257.6 9.2 91.2 91.5 90.9 91.6 91.2 8.7 237.2 226.3 6.6 6.8 144.4 5.2 110.0 2013 2014 2015 2016 2017(*) 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 *) Adjusted for extraordinary gain from sale of H

  27. Slide 27: 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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