Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q4 2016 Earnings Presentation
31 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2017
Slide 1: CIMSA 2016 4th Quarter Investor Relations Presentation
CIMSA 2016 4th Quarter Investor Relations Presentation
Slide 2: Disclaimer
Disclaimer “Çimsa Çimento Sanayi ve Ticaret A.Ş.” (CIMSA) may, when necessary, make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. CIMSA discloses information through its Disclosure Policy and has shared this policy with
Slide 3: Agenda
Agenda ▪ 2016 Market Overview Global Cement Market....................... Page 1-3 Turkish Cement Market.................... Page 4-10 ▪ CIMSA / About Us Operational Facts........................... Page 11 -16 Financial Facts................................ Page 17-21 Investments...................
Slide 4: 2016 Market Overview: Global Cement Market
2016 Market Overview Global Cement Market
Slide 5: Global Cement Market
Global Cement Market • Global consumption volume is expected to be around 4.1 billion tons in 2017, reflecting 1 % decrease YoY (CAGR 6,2 % btw. 2002-2015) 2,5% -2,6% 2,3% -0,8% 7,7% 4,5% 8,3% 10,4% 5,9% 7,6% 2,4% 9,9% 9,7% 8,5% 7,1% 4,0 4,1 4,0 4,1 4,1 3,6 3,7 3,3 2,8 2,8 3,0 2,3 2,6 2,0 2,2 1,8 20
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is around 2% in 2017 * Developed Countries: Western Europe, North America, Developed Far East, Australia & New Zealand 2
Slide 7: Global Cement Market
Global Cement Market • China’s consumption is nearly 57% of the global consumption, • Steady growth is expected in emerging markets 2016E Global Regional 2017E Global Regional Consumption Consumption 3% 3% 3% 3% 3% 3% China 33% 34% W. Europe Developed Asia North America Rest of the World 58% 57% * U
Slide 8: 2016 Market Overview: Turkish Cement Market
2016 Market Overview Turkish Cement Market
Slide 9: Turkish Cement Market
Turkish Cement Market • Cement sector growth is correlated with GDP. Source: TUİK, TÇMB , Sabanci Cement Group 4
Slide 10: Turkish Cement Market
Turkish Cement Market • There is a positive correlation between GDP per capita and cement consumption • The cement consumption per capita is expected to increase in 2016 as GDP per capita. Source: Sabanci Cement Group, TUİK, TÇMB 5
Slide 11: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area is decreased by 16 % to 188 mn m2, in 2015. Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates At the end of 2016, Turkey’s total cement production capacity is expected to be around 90 Mt, while the total consumption is 70 Mt. The difference between the production and the consumption
Slide 13: Turkish Cement Market
Turkish Cement Market • 12.7 Mt cement & clinker has been exported from Turkey in 2016 2015 2016 Total Export 2015: 10.7 mton 2016: 12.9 mton 45% 38% 22% 21% 16% 10% 7% 3% 6% 6% 5% 4% 5% 4% 3% 3% 0% 0% MENA West Africa Middle and South North America South America West Europe East Europe CIS Other Af
Slide 14: Turkish Cement Market
Turkish Cement Market • A cement market with domestic & foreign players; 52 integrated cement plants & 18 grinding stations Main foreign players: • Vicat • Cementir Main domestic players: • Votorantim • Çimsa • As Joint Venture • Oyak • Aşkale players: • Nuh • Batıçim • Akçansa & Heidelberg Source:
Slide 15: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity. Akçansa; 9% Others, 26% Çimsa; 7% Oyak, 14% Votorantim, 3% Cementir, 5% As, 5% Limak, 10% Çimko, 6% Vicat, 5% Nuh, 5% Aşkale, 7% 7,5 % of the capacity belongs to CIMSA
Slide 16: CIMSA/About Us: Operational Facts
CIMSA/About Us Operational Facts
Slide 17: Operational Facts
Operational Facts • 5,5 Mt clinker capacity (including 1,1 Mt of white clinker) 11
Slide 18: Operational Facts
Operational Facts • 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon • 1 grinding station in Ankara, • 2 Cement packing terminals in Marmara and Malatya Marmara Eskişehir Ankara Afyon Kayseri Malatya Denizli Niğde Mersin Antalya 2 12
Slide 19: Operational Facts
Operational Facts • One of the first top three white cement player • An international cement manufacturer with its terminals all around the world CIMSA has international terminals in Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Famagusta (TRNC), Constanta (Romania) and Novo
Slide 20: Operational Facts
Operational Facts Key Operational Figures in 2016 2016 2015 Grey clinker production (kton) 4.288 4.218 White clinker production (kton) 1.222 1.148 Grey cement & clinker sales (kton) 4.729 5.332 White cement & clinker sales (kton) 1.250 1.273 ISIDAÇ-40 (kton) 27 30 RMC sales (km3) 2.823 2.410 14
Slide 21: Operational Facts
Operational Facts • Grey cement & clinker sales of 4,7 Mt, and a white cement&clinker sales of 1,3 Mt in 2016 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) Grey Cement Domestic Sales: White Cement Export Sales: 10-16 CAGR: 1,8 % 10-16 CAGR: 2,5 % 0,6 0,5 0,5 0,3
Slide 22: Operational Facts
Operational Facts • CIMSA is assumed to serve around 2,6% of the RMC market as of 2016 Ready Mix Concrete Sales Volumes (M m3) 3,5 3,0 2,7 2,8 2,6 2,6 2,4 2,4 2,3 2,1 1,6 08 09 10 11 12 13 14 15 16 4Q15 4Q16 There are 800 players & 1080 plants in the market, CIMSA serves with 30 RMC plants CIMSA has
Slide 23: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 24: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated profit reached to 246 mn TL in 2016 Key Financial Higlights (TL) 2016 2015 Paid in capital 135.084.442 135.084.442 Total equity 1.250.990.158 1.187.160.498 Net consolidated sales 1.170.309.931 1.171.145.661 Operational consolidated EBITDA (*) 351.5
Slide 25: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 352 mn TL in 2016 (2015: 356 mnTL) 400 35% 30% 30% 350 28% 30% 352 300 25% 356 29% 306 25% 250 26% 25% 25% 20% 236 200 EBITDA 210 15% 150 176 201 182 EBITDA Margin % 10% 100 50 5% 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 EBITDA Margin is 30% in 2
Slide 26: Financial Facts
Financial Facts Cumulative consolidated net profit is 246 mn TL in 2016 (2015: 245 mn TL). 302 38 245 246 14 21 193 140 12 231 123 115 108 104 181 225 108 123 115 124 104 2009 2010 2011 2012 2013 2014 2015 2016 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY decrease in net profi
Slide 27: Financial Facts
Financial Facts Total net debt increased to 754 mn TL as of 2016 (2015 : 153 mn TL) 900 800 754 700 212 600 500 349 400 300 109 213 575 Long Term Borrowings 223 200 79 83 Short Term Borrowings 56 153 106 104 258 100 6 27 41 20 Net debt 158 164 62 87 82 85 0 2009 2010 2011 2012 2013 2014 2015 2016 •
Slide 28: Financial Facts
Financial Facts CIMSA is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earning per share (TL/per share) 17,4 2,15 2,24 17,1 1,82 1,82 14,4 11,4 1,43 10,1 9,1 7,1 6,9 0,80 0,91 0,85 0,77 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % 2.351 2.161 2.305
Slide 29: CIMSA/About Us: Investments
E> cIMsA/About Us — Investments
Slide 30: Afyon Çimento Investment
Afyon Çimento Investment Afyon’s current production plant which is one of the oldest in the country, will be replaced with a new facility with triple capacity of 1.5 mn tons • Ownership of Afyon Çimento: 51% Çimsa, 49% listed in ISE • Investment Amount: 165 mio USD • Capacity: 500 K tonnes will be r
Slide 31: Eskişehir Plant White Cement Investment
Eskişehir Plant White Cement Investment Following its investment for a new cement plant in Afyon, Eskişehir Plant’s 1st Kiln, which currently produces grey clinker, is planned to be modified to produce both grey and white clinker (convertible) • Eskişehir Plant: currently 1.400 K tonnes grey clinker
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