Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2018 Earnings Presentation
25 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2018
Slide 1: 2018 Q1 Investor Presentation
2018 Q1 Investor 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 t
Slide 3: Contents
Contents Market Overview • Turkish Cement Market 5-8 Cimsa • Operational Results 10-17 • Financial Results 16-23 • Çimsa Dividend Performance 24 • Investments 25
Slide 4: 2018 Market Overview: Turkish Cement Market
2018 Market Overview Turkish Cement Market
Slide 5: Turkish Cement Market Development in Q1 2018
Turkish Cement Market Development in Q1 2018 • Turkey’s total cement comsumption has increased by 8.1 % YoY (from 66.8 mton to 77.2 mton). • 2.9 mton of cement & clinker has been exported from Turkey in Q1 2018, a decrease of 15 % YoY. • The average grey cement price increased by 22% YoY. • Compared
Slide 6: Turkish Cement Market: Cement sector growth correlated with GDP
Turkish Cement Market Cement sector growth is correlated with GDP Cement consumption in 2017 increased by 8.1% (Projected: 6%) and GDP growth was 7.4% (Projected: 6.5%) 22.0% 19.4% 15.7% 9.4% 8.9% 10.0% 11.2% 10.8% 8.1% 5.9% 9.1% 8.8% 8.9% 5.0% 7.4% 5.0% 7.3% 4.7% 4.6% 6.1% 4.8% 4.6% 5.0% 4.5% 0.9%
Slide 7: Turkish Cement Market: GDP per capita and cement consumption
Turkish Cement Market There is usually a positive correlation between GDP per capita and cement consumption . The cement consumption per capita increased slightly in 2017 while GDP per capita declined by 2%. 14.000 1.400 12.480 12.112 11.588 12.000 10.931 11.205 11.014 10.807 1.200 10.560 10.597 9.6
Slide 8: Çimsa is the main exporter of white cement & clinker
Turkish Cement Market 2.9 mton of cement & clinker has been exported from Turkey in Q1 2018 (2017: 3.5 mton) Çimsa is the main exporter of white cement&clinker with 69% share in total exports. MENA and West Africa are the top export regions in Q1 2018 in total exports. Grey Clinker Exports by Region
Slide 9: Operational Results
Operational Results [iI
Slide 10: Operational Results: Clinker capacity
Operational Results 6.6 Mt clinker capacity (including 1.3 Mt of white clinker) 10
Slide 11: Operational Results: Plants and terminals
Operational Results 6.6 Mt clinker capacity (including 1.3 Mt white clinker) 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon 1 grinding station in Ankara 2 Cement packing terminals in Marmara and Malatya 11
Slide 12: Operational Results: International presence
Operational Results One of the top three white cement players globally An international cement manufacturer with terminals around Europe Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Famagusta (TRNC), Constanta (Romania), Novorossiysk (Russia) First productio
Slide 13: Operational Results: Production and sales increase
Operational Results Significant rise on both production and sales amount compared with Q1 2017 due to capacity increase in Afyon and Niğde plants, strong demand due to favorable weather. Sales of RMC increased by 20% in Q1 2018 compared to the same period in 2017. Q1-2017 Q1-2018 Change % Grey clink
Slide 14: Grey and white cement & clinker sales volumes
Operational Results Grey cement & clinker sales of 1.2 mton, and white cement & clinker sales of 0.3 mton in Q1 2018 Grey Cement & Clinker Sales Volumes (mton) White Cement & Clinker Sales Volumes (mton) Grey Cement Domestic Sales: White Cement Export Sales: 2014-17 CAGR: 3.2 % 2014-17 CAGR: 4.6 % 0
Slide 15: Ready Mix Concrete sales volumes
Operational Results Growth maintained in both urban and projects RMC volume. Ready Mix Concrete Sales Volumes (M m3) 3,4 2,8 2,4 2,4 0,6 0,7 14 15 16 2017 Q1-2017 Q1-2018 Increased RMC volume YoY 20% in Q1. Urban RMC sales maintained momentum. 15
Slide 16: Increasing petcoke prices in Q1 2018
Operational Results Increasing petcoke prices in Q1 2018. Petcoke (Mid-Suphur) (CIF $/ton) Çimsa 2017 Çimsa 2018 Turkey 107 97 100 97 99 97 97 97 97 87 87 87 87 87 87 83 83 83 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Çimsa’s avarage petcoke prices increased 4% in Q1 2018 compared to Q1 2017
Slide 17: 8.8% increase in electricity tariffs in January 2018
Operational Results 8.8% increase in tariffs in January 2018. Electricity (TL/Mwh) 233 228 216 218 213 209 209 204 205 205 212 202 202 197 203 2018 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average electricity costs increased by 3% from 206 TRY to 213 TRY compared to Q1 2017. Ex-post
Slide 18: Financial Results
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Slide 19: Financial Results: Key financial highlights
Financial Results EBITDA increased 66% in Q1 2018 compared to the same period in 2017. Key Financial Highlights (MTL) Q1-2017 Q1-2018 Change% Net consolidated sales 248 361 45% Consolidated EBITDA (*) 56 93 66% Consolidated EBITDA Margin % 22% 26% 4 pp Net consolidated profit 31 37 19% Strong dema
Slide 20: Consolidated EBITDA and EBITDA margin
Financial Results Consolidated EBITDA increased by 66% compared to the same period in 2017. EBITDA Margin is 26% in Q1 2018 450 40% 400 35% 30% 30% 350 28% 384 356 30% 352 26% 300 306 26% 25% 22% 250 20% 200 15% 150 10% 100 93 50 5% 56 0 0% 2014 2015 2016 2017 Q1-2017 Q1-2018 EBITDA EBITDA Margin %
Slide 21: Consolidated net profit
Financial Results Consolidated net profit is 37 mn TL in Q1 2018 (Q1 2017 : 31 mn TL) 245 246 14 228 21 231 14 193 225 214 12 181 31 37 3 5 29 32 2014 2015 2016 2017 Q1-2017 Q1-2018 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up Due to favorable weather, robust demand, and strateg
Slide 22: Financial borrowings and net debt
Financial Results 1,367 1,400 1,173 1,200 1,000 800 754 827 762 Short Term Borrowings 600 636 575 Long Term Borrowings 550 400 Net debt 153 200 56 213 212 164 85 0 20 2014 2015 2016 2017 Q1-2018 Total financial borrowings increased from 1,377 mn TL at Q1 2018 to 1,397 mn TL. Total financial borr
Slide 23: Çimsa among top dividend payers in BIST
Financial Results Çimsa is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earnings per share (TL/per share) 13,9 13,5 1,82 1,82 13,2 1,69 1,59 1,43 12,3 11,9 (*) As of 30.03.2018 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % 2.351 2.161 2.310 Divide
Slide 24: Çimsa Dividend Performance
Çimsa Dividend Performance Dividend Paid (Gross, TL mn) Dividend Yield Payout Ratio % 9% 84 82 8% 201.3 191.8 4% 32 67.5 2016 2017 2018 2016 2017 2018 2016 2017 2018 (*) 24
Slide 25: Investments
Investments With the beginning of 2018, all capacity expansion projects were completed. Afyon Çimento Operational in April 2017 Capacity (m ton) 2016 2018 Investment: 170 mUSD Grey Clin. 4.4 5.3 Capacity: 1.500 K tonnes (increasing from 500 K tonnes White Clin. 1.1 1.3 previously) Total 5.5
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