Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM

Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q2 2020 Earnings Presentation

19 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: 2Q20 Results Investor Presentation

    2Q20 Results Investor Presentation Herkese Açık / Public 1

  2. Slide 2: Ethylene – Naphtha spread averaged US$ 255/ton in 2Q20

    Ethylene – Naphtha spread averaged US$ 255/ton in 2Q20 • Ethylene-naphtha spread decreased by 31% from US$ 369/ton in 1Q20 to US$ 255/ton in 2Q20. • Spread was quite weak in the second quarter, especially in May, as a result of petrochemicals down cycle conditions compounded by COVID-19 driving over

  3. Slide 3: PLATTs Index averaged US$ 565 per ton in 2Q20

    PLATTs Index averaged US$ 565 per ton in 2Q20 • PLATTS Global Petrochemicals Index starts to recover on a monthly basis after seeing the lowest level in April. • Index averaged at USD565/ton in 2Q20, suggesting 22% decrease Q-Q and 36% decrease Y-Y. • Despite almost all product prices were lower com

  4. Slide 4: Product group spreads over naphtha CIF MED

    Herkese Açık / Public 200 1100 1400 -100 500 800 200 0 400 600 Jan-19 Jan-19 Feb-19 Feb-19 Mar-19 Mar-19 Source: Platts, Company Paraxylene Apr-19 Apr-19 May-19 May-19 Jun-19 Jun-19 Jul-19 Jul-19 Aug-19 Aug-19 Weighted Sep-19 Sep-19 Oct-19 Oct-19 Nov-19 Nov-19 Dec-19 Dec-19 Jan-20 Jan-20 Benzene Wei

  5. Slide 5: Product groups and overall weighted spread

    Product groups and overall weighted spread (over naphtha CIF MED), USD/MT Weighted averages by product groups spreads Polymers 600 400 Fiber 200 Others Aromatics 0 Source: Platts, Company Herkese Açık / Public 5

  6. Slide 6: Feedstock vs. Product Prices

    Feedstock vs. Product Prices Petkim - Thermoplastics & Naphtha Spread • 279Kton feedstock has been supplied from STAR 1,210 1,201 1,164 1,092 1,057 Refinery in Q220. 1,034 1,053 1,013 1,043 964 1,015 1,040 927 849 903 • Thermoplastics demand still much healthier for USD/ton 537 495 492 535 459 464 4

  7. Slide 7: Costs and Operational Efficiency in 2Q20

    Costs and Operational Efficiency in 2Q20 Plant Cost Base Breakdown 2Q20* Ethylene Facility Capacity Utilization Rate 13% 105% 106% 105% 102% 100% 99% 98% 86% 92% Raw material 7% Energy 67% Labor 13% 38% Other *Cumulative figures are provided 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Total Pr

  8. Slide 8: In 2Q20 Petkim achieved TL 2,242mn sales via 548k ton volume

    In 2Q20 Petkim achieved TL 2,242mn sales via 548k ton volume Sales Volume (ton k) 2Q20 Volume: 548k ton Revenue (TL mn) 2Q20 Revenue: TL2,242mn 152 557 544 87 58 241 202 33 35 29 147 143 137 27 23 23 28 20 81 57 14 13 58 43 24 5 7 0 Export Revenue (TL mn) 2Q20 Export Revenue: TL685mn 321 122 77 58 4

  9. Slide 9: Turkey thermoplastics consumption decreased by 2% in 2Q20 compared to 1Q20

    Turkey thermoplastics consumption decreased by 2% in 2Q20 compared to 1Q20. Ton k PVC LDPE 800 600 15% 20% 18% 15% 51% 54% 51% 51% 600 400 605 546 v 400 252 279 200 137 200 246 238 75 71 111 156 33 26 140 72 0 0 68 2018 2019 2020Q1 2020Q2 2018 2019 2020Q1 2020Q2 HDPE PP 1,5 00 600 12% 13% 12% 13% 7%

  10. Slide 10: Fiber consumption in Turkey increased by 2% in 2Q20 compared to 1Q20

    Fiber consumption in Turkey increased by 2% in 2Q20 compared to 1Q20. Ton k ACN MEG 400 30% 36% 36% 41% 18% 380 15% 19% 20% 360 340 320 300 280 200 260 v v 240 220 302 200 187 180 270 160 150 86 140 79 120 58 78 100 19 21 80 60 91 15 83 18 33 30 40 20 0 0 2018 2019 2020Q1 2020Q2 2018 2019 2020Q1 202

  11. Slide 11: Turkish Market – Others

    Turkish Market – Others Ton k PX 200 PA 30% 32% 29% 25% 63% 65% 170 71% 57% 140 110 v 80 35 37 v 130 10 117 8 51 60 28 50 13 41 10 6 20 31 14 4 2020Q1 2020Q2 (10) 2018 2019 2020Q1 2020Q2 2018 2019 Turkey’s Import Domestic Consumption Petkim/Domestic Sale Domestic Market Share % Source: TURKSTAT, Com

  12. Slide 12: PETKIM 2Q20 Income Statement

    PETKIM 2Q20 Income Statement TL mn 6M'19 6M'20 Sales 5,941 5,008 Cost of sales (5,062) (4,411) Gross Profit 879 597 Gross profit % 14.8% 11.9% Marketing and sales expenses (46) (56) General admin. Expenses (151) (171) R&D Expenses (12) (14) Operating profit 670 356 Other income / (expenses) 50 114 F

  13. Slide 13: PETKIM 2Q20 Balance Sheet

    PETKIM 2Q20 Balance Sheet TL mn 12M19 6M20 Cash and cash equivalents 4,037 4,560 Trade receivables 1,552 1,334 Inventory 929 746 Other receviables 13 8 Other current assets 3,015 3,510 Current assets 9,547 10,159 Non current assets 5,255 5,581 Total Assets 14,801 15,739 Short term borrowings 4,037 3

  14. Slide 14: Financial Performance

    Financial Performance Revenue (mn TL) EBITDA, Net Income and EBITDA Margin (mn TL) 2,000 18% 20% 16% 18% 4,666 1,500 14% 16% 3,797 1,523 1,589 14% 1,000 12% 10% 6,889 836 7% 5,759 1,044 761 8% 685 50 0 412 1,710 1,528 205 -10 145 6% - 4% 2018 2019 Q120 Q220 2018 2019 Q120 Q220 2% (500) 0% Domestic S

  15. Slide 15: Balance Sheet Analysis

    Balance Sheet Analysis Out st anding Out st anding principial Loan Ty pe Loan Ty pe Currency principial Deposits - by currency (Original (USD) Maturity Profile* (mn US$) currency ) Inv estm ent Credit EUR 33 37 559 Inv estm ent Credit USD 71 71 Long-term loan Project Finance Loan USD 1 89 1 89 TRY 1

  16. Slide 16: 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

  17. Slide 17: Appendix 1. Petrochemical Complex Flow Chart

    Appendix 1. Petrochemical Complex Flow Chart Petkim has fully integrated operations LDPE Bag, greenhouse covers, film, cable, toys, pipes, (350,000 ton/year) bottles, hose, packaging HDPE Construction and water pipes, packaging film, Ethylene Plant (96,000 ton/year toys, bottles, soft drink crates,

  18. Slide 18: Appendix 2. PETKIM Stock Performance

    Appendix 2. PETKIM Stock Performance PETKIM STOCK PERFORMANCE 350 Th Unit 500,000 330 450,000 310 290 400,000 270 350,000 250 300,000 230 210 250,000 190 200,000 170 150 150,000 130 100,000 110 50,000 90 70 0 12/16 06/17 12/17 06/18 12/18 06/19 12/19 06/20 Volume Petkim BİST 100 Closing Price as of

  19. Slide 19: 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

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