Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q3 2021 Earnings Presentation
28 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, 2021
Slide 1: 3Q21 Results Investor Presentation
3Q21 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 TL6.7bn TL1.4bn TL1.7bn Sales -9% QoQ EBITDA Net 1.55 TL/share 20.5% margin -27% QoQ Income 28% QoQ TL5.2bn TL4.4bn Cash Net 0.84x net debt/ 2.42x current ratio EBITDA -16% QoQ Debt -5% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Profitability remained the upper end range achieved in last four years
Profitability remained the upper end range achieved in last four years Q321 highlights Global supply chain disruptions have been still continuing, while margins are likely to moderate due to increasing feedstock prices Petkim margin declined to USD322/ton by 33% from historical high in Q2 Petkim ann
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 1,259 1,188 1,229 1,294 1,187 1,116 1,256 1,180 1,147 1,138 1,143 1,213 1,116 1,109 1,110 2,000 1,132 1,800 1,024 1,070 80 0 989 1,600 1,400 957 712 678 677 689 747 1,200 893
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Strong margins achieved in the second quarter were broadly 1400 maintained, holding margins upper end of range achieved over last four years 1200 Global supply chain disruption 1000 Rising feedstock costs 800 600 The sharp dow
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
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 3Q20 4Q20 1Q21 2Q21 3Q21 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (% ) P-X 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) 102% 99% 100% 103% 100% 839 776 814 832 807 100 % 900 10 0% 115 % 113% 115% 110% 800 90 % 103% 80% 99% 96% 80 % 700 89% 360 331 353 325 70 % 94% 600 328 99% 94% 60% 60 % 500 83% 86% 106 100 86 105 50 %
Slide 11: Breakdown of petchem sales
Breakdown of petchem sales Breakdown of petchem sales (mn USD) Breakdown of petchem sales (%) Total petchem sales: USD785mn 317 219 208 91 110 28% Thermoplastics 156 74 56 Fiber 78 39% 123 61 82 71 Aromatics 93 57 67 44 Other 23 12 21 333 Trade 276 307 182 210 14% 10% 9% 3Q20 4Q20 1Q21 2Q21 3Q21 The
Slide 12: In 3Q21, Petkim achieved TL 6,693 mn sales via 644k ton
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 644k ton TL6,693mn 200 1,867 1,397 91 79 605 47 43 477 463 364 387 330 27 23 33 19 22 12 5 26 15 289 153 88 23 193 56 In 3Q21, Petkim achieved TL 6,693 Exports breakdown mn sales via 644k Export Revenue (TL mn) Total export: TL2,740mn
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 3Q21 total COGS: 3Q21 inventory gain: TL5,383mn USD13mn 700 8.0 662 2 652 647 7.0 650 33% Other 37% 34% 35% 45% 609 6.0 4% Trade 600 584 6% 2% 2% 5.0 3% 4% 3% 7% 4% 5% 2% 5% Depreciation 552 5% 3% 538 4.0 550 5% 6.0 Labour costs
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 2,8 00 2,071 2,017 1,956 1,871 1,7 00 800 1,771 1,599 1,691 1,658 1,5 00 120 0 700 2,4 00 1,477 1,518 100 0 600 2,0 00 1,327 1,479 1,3 00 509 503 437 1,181 473 1,6 00 974 1,010 1,072 1,
Slide 15: PETKIM 3Q21 income statement
PETKIM 3Q21 income statement FY 2Q TL mn 3Q‘20 3Q'21 YoY Δ (%) 2Q‘21 3Q'21 QoQ Δ (%) Sales 3,038 6,735 122% 7.397 6,735 (9%) Cost of sales (2,536) (5,383) 112% (5,513) (5,383) (2%) Gross profit 502 1,352 169% 1,884 1,352 (28% ) Gross profit % 16.5% 20.1% 25.5% 20.1% Marketing and sales expenses (31)
Slide 16: Strong positive pricing delta derives EBITDA growth
Strong positive pricing delta derives EBITDA growth 3Q21 segments’ results (mn TRY) 27% Quarterly change in EBITDA (mn TRY) Pricing delta -TRY539 16
Slide 17: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 3.6 2.7 1.7 Export 692 1.3 671 1.0 3.8 4.0 Domestic 638 637 644 2.8 3.3 2.0 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Financial EBITDA and net income (mn TL) Margins (% ) highlights 1,890 1,692 24.3% 25.6% 25.1% 1,325 1,382 19.2% EBITDA 1,225 17.0% 20.5%
Slide 18: Liquidity highlights
Liquidity highlights Deposits (%) Maturity profile (mn USD) USD586mn 22% USD TRY EUR Short term USD500mn Eurobond is Eurobond 46% 500 expected to refin Long term 257 104 32% 30 33 41 40 25 9 33 2 2021 2022 2023 2024 2025 2026 2027 2028 Cash flow from operations and CAPEX (mn USD) Net debt position (
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 Targets 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 & 2 1
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 performance indicators
Sustainability performance indicators Stakeholder related targets1 2021 Targets Actions Climate & Decarbonization 1% Implementation of energy efficiency and electrification initiatives to Environment decrease CO2 emission Energy Consump- 2.9 Conducting Energy Audits tion per Ton of Implementation of
Slide 23: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 23
Slide 24: PETKIM 3Q21 balance sheet
PETKIM 3Q21 balance sheet TL mn 6M'21 9M'21 Financial highlights 6M'21 9M'21 Cash and cash equivalents 6,174 5.178 Net debt position (4,687) (4,436) Trade receivable 3,408 3,300 Working capital (11) 1,238 Inventory 1,734 1,975 Days sales outstanding 45 38 Other receivables 26 12 Days payable outstan
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 140 1000 900 130 800 700 120 600 110 500 400 100 300 200 90 100 80 0 Jan-21 Jan-21 Feb-21 Mar-21 Mar-21 Apr-21 May-21 May-21 Jun-21 Jun-21 Jul-21 Aug-21 Aug-21 Sep-21 Oct-21 Oct-21 Volume PETKİM BIST 100 Closing price as of 30 September Market capitalization Free float 2021
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. — Q3 2021 Earnings Presentation on 6ix