Polisan Holding As · BIST:POLHO
Polisan Holding As — Q1 2019 Earnings Presentation
31 slides from Polisan Holding As's earnings presentation, March 2019
Slide 1: Polisan Holding March 2019
Polisan HOLDING March 2019
Slide 2: Notice
NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially due to factors discussed in Polisan Holding’s prospectus filed
Slide 3: Polisan Holding: Grows via new partnerships and business lines
POLİSAN HOLDİNG: GROWS VIA NEW PARTNERSHIPS AND BUSINESS LINES * CHEMICAL PORT PAINT REAL ESTATE AGRICULTURE ACTIVITIES OPERATIONS 93% 100% 100% FOREIGN 50% 40% PARTNERSHIP LIQUIDATION 80% IN PROGRESS FOREIGN SUBSIDIARY AS OF 100% APRIL 16, 2019 100% 3 * The ratios in this graphfic show Polisan Hold
Slide 4: Polisan Holding Strategy: Maximizing Shareholder Value
POLİSAN HOLDİNG STRATEGY: MAXIMIZING SHAREHOLDER VALUE Sustaining Profitable Growth of Existing Businesses Maximizing Intra-Group Synergies Forming Strategic Alliances for Expansion into High Margin, New Business Lines Exploring New Markets and Becoming a Global Brand through Polisan’s Innovative Pr
Slide 5: Executing Strategic Priorities Since IPO
POLİSAN HOLDİNG: EXECUTING STRATEGIC PRIORITIES SINCE IPO CAGR 2012 - 2018 Revenue: 22.4% 1,934 28000,00% 26000,00% 261.3 EBITDA: 22.9% 24000,00% 1,501 22000,00% 20000,00% 1,092 213.3 18000,00% 1,022 16000,00% 169.8 14000,00% 869 153.3 12000,00% 657 574 116.0 10000,00% 8000,00% 89.6 6000,00% 76.0 40
Slide 6: Strong Revenue Growth in 2018
POLİSAN HOLDİNG: STRONG REVENUE GROWTH IN 2018 Combined Revenues: TRY1,934.4 mln Consolidated Revenues: TRY1,163.3 mln Other Other 7% 5% Chemical Operations Paint Port 49% 36% 14% Port Chemical 8% Operations 81% Combined EBITDA: TRY261.3 mln (EBITDA Margin: 13.5%) Consolidated EBITDA: TRY150.9 mln (
Slide 7: Turkey Paint Industry: 5th Largest Market in Europe
TURKEY PAINT INDUSTRY: 5. LARGEST MARKET IN EUROPE TURKEY PAINT INDUSTRY POLİSAN KANSAİ BOYA With ~$2.2 billion, Decorative Segment, which has Growing Production Over the Years Europe’s 5th largest market ~60% share, drives growth 2% 2% 1%1% 8% 6% 5% 4% 61% 10% 1985 1987 1989 1991 1993 1995 1997 199
Slide 8: Polisan Kansai Boya's Differentiation Strategy: Excellence
POLİSAN KANSAİ BOYA’S DIFFERENTIATION STRATEGY: EXCELLENCE 1 PRODUCT 2 SALES 3 SERVICE 4 QUALITY ü Introduced the World to § Turkey’s first water-based § World’s first exterior § Global brand awareness the Home Cosmetics new generation mix system insulation insurance with quality certificates concep
Slide 9: Strategy: Continued Leadership with Profitable Growth
STRATEGY: CONTINUED LEADERSHIP WITH PROFITABLE GROWTH There are 18 million households in Turkey to be renovated and insulated Young & growing Mandatory insulation of Renovation and new population exterior walls buildings Insulation Revenues Auxiliary Products Revenues INDUSTRIAL 2008-2018 CAGR: 40%
Slide 10: Future: Reinforcing Polisan Boya's Undisputed Leadership
FUTURE: REINFORCING POLİSAN BOYA’S UNDISPUTED LEADERSHIP 50% PARTNERSHIP WITH KANSAI PAINT PRODUCTION AT THE NEW FACILITY HAS COMMENCED Ø Kansai Paint’s main products are automotive, industrial, Ø 142,000 sqm land: at Gebze Chemical Specialization Organized decorative, protective and auto refinish c
Slide 11: Turkey Seaborne Trade: 5th in Europe
TURKEY SEABORNE TRADE: 5th IN EUROPE TURKEY HAS OUTPACED EU PORTS WITH 62% GROWTH OVER 10 YEARS 600.000 500.000 471,174 400.000 300.000 291,573 200.000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Netherlands UK Italy Spain Turkey Germany CARGO HANDLED (2007-2017): 11.9% -17.1% 3.2% 12.2%
Slide 12: Turkey Seaborne Trade: Marmara Region Handles the Bulk of Cargo
TURKEY SEABORNE TRADE: MARMARA REGION HANDLES THE BULK OF CARGO CARGO HANDLED IN TURKEY IN 2018 TOTALED 460 MILLION TONS CARGO TYPES Bulk Vehicle Liquid 2% Container 30% 25% 9% 40% Black Sea Marmara General Dry Bulk Cargo 29% 14% 16% REGIMES Aegean Transit 16% Cabotage 13% 35% Mediterranean Foreign
Slide 13: Kocaeli Port: Pioneer in Turkey and Among Top 10 in EU
KOCAELI PORT: PIONEER IN TURKEY AND AMONG TOP 1O IN EU KOCAELİ PORT IS TURKEY’S STRATEGIC GATEWAY LOCATED WHERE 45% OF TURKEY’S GDP IS GENERATED 2. IN TOTAL CARGO HANDLED Ø Among EU’s 10 Major Ports Ø 1st in Foreign Trade (Import/Export) Ø 1st in Cargo Handled (Turkey’s total) 329 mln ton/2018 460 m
Slide 14: Poliport: Leading Independent Chemical Storage Terminal
POLIPORT: LEADING INDEPENDENT CHEMICAL STORAGE TERMINAL 2018 REVENUE SHARE § Handling Turkey’s 3rd largest export item; Chemicals § Reputable clientele since 1990‘s BULK LIQUID § 237,000 m3 capacity STORAGE 58% § 165 tanks (size: 100 m3 - 6,200 m3) SERVICES § Terminal Capacity: 2.5 million tons § Je
Slide 15: Poliport: Poised for Profitable Growth
POLİPORT: POISED FOR PROFITABLE GROWTH TEM Highway Railway 3 3 Warehouse Bulk Liquid 2 1 Storage Dry Bulk and General Cargo Bulk Liquid Loading & Loading & Unloading Unloading KEY FEATURES OPPORTUNITIES Ø Services on 160,000 m2 land Ø New business opportunities with multinational Ø Terminal and Gene
Slide 16: Chemical Activities: Expanding Internationally
CHEMICAL ACTIVITIES: EXPANDING INTERNATIONALLY... FOREIGN INTERNATIONAL TURKEY INVESTMENT PARTNERSHIP POLİSAN ROHM & HAAS POLİSAN POLİSAN KİMYA (DOW) MAROC HELLAS (Chemicals) (Construction Chemicals) § Polisan Kimya - a subsidiary § International investment in § Operational in Greece § Formaldehyde
Slide 17: Polisan Kimya: Turkey's Leading Chemicals Producer
POLİSAN KİMYA: TURKEY’S LEADING CHEMICALS PRODUCER PRODUCTS § 1st formaldehyde resin producer in Turkey to be used in production (wood particleboard, REVENUE SHARE* paper impregnation, MDF, plywood), and insulation (glass wool, rock wool) § Turkey ranks 5th in the world in wood panel consumption whe
Slide 18: Polisan Hellas: PET Business in Greece
POLİSAN HELLAS: PET BUSINESS IN GREECE TRANSACTION HIGHLIGHTS UTILIZING LOGISTIC SYNERGIES Ø Polisan Hellas purchased 100% of the assets of Ø Facility established on 75,000 m2 land with all Artenius Hellas in Greece required infrastructure and staff Ø Polisan Hellas is controlled by Polisan Holding
Slide 19: Holding's Properties
POLİSAN HOLDİNG’S PROPERTIES ONGOING PROJECTS PRODUCTION FACILITIES OTHER PROPERTIES Z OFFICE PENDIK POLIPORT POLISAN LANDS & REAL ESTATES 26 shops, 73 offices 178,720 m2 land 154,672 m2 90,142 m2 Partially available to invest TRY53 mln*** TRY206 mln TRY418 mln* TRY161 mln TRY266 mln • Rapid urbaniz
Slide 20: Polisan Tarim: Liquidation in Progress as of April 16, 2019
POLİSAN TARIM: LIQUIDATION IN PROGRESS AS OF APRIL 16, 2019 WALNUT OLIVE STEVIA ü Cooperation with Atatürk ü On 4.4 million square ü On 2.5 million square University, Faculty of meter land in Balıkesir meter land in Karacasu Agriculture ü Development of 100% native variety including highly useful gl
Slide 21: Revenue Growth Supported by FX Rates
POLİSAN HOLDİNG: REVENUE GROWTH SUPPORTED BY FX RATES CONSOLIDATED (TRY mln) REVENUE EBITDA & EBITDA MARGIN NET INCOME* CAPEX 160 20,00% 81.1 1,163.3 140 76.7 14.9% 16,00% 120 13.0% 13.1% 101.1 100 12,00% 749.6 80 9.0% 8,00% 60 25.4 338.1 3.3% 20.4 40 30.3 228.8 234.1 4,00% 14.8 19.0 20 111.4 150.9
Slide 22: Adverse Base Effect in Combined Financials
POLİSAN HOLDİNG: ADVERSE BASE EFFECT IN COMBINED FINANCIALS 1Q 2019 Combined Revenues 1Q 2018 – 1Q 2019 Revenue and EBITDA Margin Evolution 700 50% 45% Other 600 43.5% 43.5% 4.1% 40% 500 35% Paint 35.5% 30% 400 25% 300 19.8% 16.7% 20% 13.1% 13.6% 11.0% 15% 10.2% 200 9.0% 7.2% 6.3% 10% 100 1.2% 05% P
Slide 23: 1Q 2019 Cash Position
POLİSAN HOLDİNG: 1Q 2019 CASH POSITION BALANCE SHEET TRY mln* - 1Q 2019 TRY FX Balance Sheet (TRY mln) 1Q 2018 1Q 2019 Cash 45% 123.6 55% Cash & Cash Equivalents 77.0 123.6 Current Assets 520.8 630.3 Non-Current Assets 1,579.1 1,580.2 7% TOTAL ASSETS 2,099.9 2,210.4 Short Term Financial Debt 173.0 3
Slide 24: Aiming to Sustain Our Performance in 2019
POLİSAN HOLDİNG: AIMING TO SUSTAIN OUR PERFORMANCE IN 2019 2017 ACTUAL 2018 TARGETS 2018 ACTUAL TRY750 mln More than Consolidated revenue Annual 35% growth growth: 55.2% Poliport: TRY140 mln Revenue Polisan Kimya: TRY300 mln Poliport: 20% Poliport: 14.4% Polisan Hellas: TRY318 mln Polisan Kimya: 30%
Slide 25: Poised for Further Growth
POLİSAN HOLDİNG: POISED FOR FURTHER GROWTH PORT CHEMICAL REAL PAINT OPERATIONS ACTIVITIES ESTATE AGRICULTURE Revenue Revenue Revenue Z Office Walnut CAGR: 12.7% CAGR: 22.5% CAGR: 36.5% Project: plantation on Completed in 4.4 mln m2 EBITDA CAGR: EBITDA CAGR: EBITDA CAGR: 2014 land 13.5% 23.8% 34.0% O
Slide 26: Back Up
Polisan HOLDING
Slide 27: Milestones
POLİSAN HOLDİNG: MILESTONES New paint facility commenced production 2018 Polisan Boya 2017 EPD Certificate 2016 50% Partnership 2015 2014 Pendik Project Z Office 2013 Project Launch of Polisan POS 2012 Loyalty Program 2011 Introduced «Home Cosmetics» concept globally 2009 2008 Production of concrete
Slide 28: Board of Directors
POLİSAN HOLDİNG: BOARD OF DIRECTORS Bundesaufbau Gymnasium University of Boston ,USA Production Deutsche High School Wirtschafts Universität (BSc), Austria Engineer (BSc) and Mechanic Engineer Bosphorus University, Industrial Engineer (BSc) Chairman of Polisan Holding, Polisan (MSc) Board member of
Slide 29: Executive Committee
POLİSAN HOLDİNG: EXECUTIVE COMMITTEE University of Istanbul, Faculty of Law Saint Joseph High School At Polisan Holding since 1976 University of Istanbul, Chemical Engineer (BSc) Polisan Holding CEO since 2005 University of Brussels, Petrochemicals (MSc) Executive Committee member of Polisan Holding
Slide 30: Social Responsibility Projects and Sponsorships
SOCIAL RESPONSIBILITY PROJECTS AND SPONSORSHIPS WOMEN YOUTH ENVIRONMENT/ART Ø EVERY VOICE, ONE BREATH Ø POLİSAN SCHOOLS Ø 100,000 trees Ø Since 2012 Ø M. Emin Bitlis Primary School Ø International İstanbul Biennial Ø Has been granted 3 Ø Polisan Secondary School Official Sponsorship prestigious awar
Slide 31: Thank You
THANK YOU Telephone 0 216 5785600 Fax 0 216 5737792 yatirimciiliskileri@polisanholding.com.tr E-mail investorrelations@polisanholding.com.tr www.polisanholding.com.tr