Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q4 2022 Earnings Presentation
28 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, February 2023
Slide 1: 4Q22 Results Investor Presentation
4Q22 Results Investor Presentation 1
Slide 2: 4Q22 financial highlights
4Q22 financial highlights TL8.9bn TL189mn TL0.8bn Sales -37% QoQ EBITDA 2.1% margin Net 0,30 TL/share -75% QoQ Income -49% QoQ TL14.2bn TL14.1bn Cash 1.1x current ratio Net 3.57x net debt/ EBITDA 46% QoQ Debt 2% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Solid performance despite deteriorating market sentiment
Solid performance despite deteriorating market sentiment 4Q22 highlights Petkim completed the scheduled major maintenance earlier than planned and in line with budget Productivity is expected to improve after completion of maintenance Lower product profitability due to soft demand and customer desto
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 1.320 1.532 1.461 1.424 2.600 1.292 1.249 1.433 1.380 2.400 1.303 1.271 1.173 1.218 1.200 1.254 1.123 2.200 1.194 1.115 2.000 1.138 1.114 899 872 1.800 900 781 783 819 812 1
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 1050 Deteriorating economic climate 950 850 Continuing soft demand 750 650 Margins bottomed out due to weaker demand with ample supply and customer destocking 550 450 Polyolefin prices tumbled to a t
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT 1700 Polymers Fibers 1500 1400 1100 1100 800 700 500 300 200 -100 HDPE LDPE PP PVC MEG ACN PTA DEG Aromatics Others 1100 900 1080 700 780 500 480 300 180 100 -120 Benzene OrthoXylene Weighted PGP Crude C4 PA PY-GAS Source: S&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 -800 Deficit 4Q21 1Q22 2Q22 3Q22 4Q22 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (cumulative) Domestic consump
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) 98% 91% 100% 838 710 638 516 366 135% 81% 90% 900 100% 106% 86% 800 90% 103% 80% 93% 66% 70% 700 80% 95% 88% 87% 353 101% 70% 600 254 308 60% 87% 48% 60% 500 85% 50% 103 163 50% 69% 74% 40% 400 104 68%
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 4Q22 Total petchem sales: USD473mn 312 392 267 381 Thermoplastics 98 102 36% 106 Fiber 68 75 92 73 211 44% Aromatics 76 67 57 82 Other 39 45 25 Trade 22 296 301 266 217 170 5% 5% 10% 4Q21 1Q22 2Q22 3Q22 4Q22 T
Slide 12: In 4Q22, Petkim achieved TL 8,796mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 465k ton TL8,796mn 243 3.926 79 26 1.952 23 18 18 489 210 727 15 18 8 1 11 5 305 411 14 189 239 224 111 In 4Q22, Petkim achieved TL 8,796mn sales via Exports breakdown 465k ton sales Export Revenue (TL mn) Total export: TL3,427mn Reve
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 4Q22 total COGS: 4Q22 inventory loss: TL8,846mn USD3.2mn 826 925 890 2% 4% 901 845 727 752 801 725 733 36% Other 693 43% 652 599 596 634 614 701 45% 49% 44% Trade 601 18 555 1% 2% 2% 501 14 13 2% 7% 1% Depreciation 8% 2% 401 8 6
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 700 3.200 2.020 1.967 1.949 1.500 1.400 1.959 1.748 1.857 600 2.800 1.771 1.730 1.682 1.200 1.559 1.300 1.356 500 2.400 1.294 1.325 1.266 1.304 1.266 1.100 1.000 406 2.000 1.198 388 400
Slide 15: PETKIM 4Q22 income statement
PETKIM 4Q22 income statement FY Q4 TL mn Q4‘21 Q4'22 YoY Δ (%) Q3‘22 Q4'22 QoQ Δ (%) Sales 9,550 8,908 (7%) 14,201 8,908 (37%) Cost of sales (7,580) (8,846) 17% (13,277) (8,846) (33%) Gross profit 1,971 62 (97%) 924 62 (93%) Gross profit % 21% 1% 7% 1% Marketing and sales expenses (156) (166) 6% (13
Slide 16: PETKIM 2021-2022 FY income statement
PETKIM 2021-2022 FY income statement FY TL mn 2021 2022 YoY Δ (%) Sales 28,716 48,898 70% Cost of sales (22,298) (44,779) 101% Gross profit 6,417 4,119 (36%) Gross profit % 22% 8% Marketing and sales expenses (281) (519) 85% General administrative expenses (586) (1,116) 90% Operating profit 5,550 2,
Slide 17: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 7,4 8,0 4,7 3,7 3,4 Export 695 683 687 Domestic 593 6,6 7,0 465 5,8 6,2 5,5 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 Financial EBITDA and net income (mn TL) Margins (%) highlights 2,4 1,8 EBITDA 1,7 18% 1,6 1,6 1,5 18% margin 1,4 15% EBITDA Net income 17
Slide 18: Earnings decreased due to maintenance and negative pricing delta
Earnings decreased due to maintenance and negative pricing delta 4Q22 segments’ results (mn TRY) -75% Quarterly change in EBITDA (mn TRY) Pricing delta: negative 18 TRY375mn
Slide 19: Liquidity highlights
Liquidity highlights Deposits* (%) Maturity profile (mn USD) USD761mn 1% 10% USD TRY EUR ▪ Petkim has redeemed USD500mn 2023 Eurobonds and coupon due in January 2023 799 ▪ Petkim has utilized 3 year USD300mn credit facility from JP Morgan due in 2026 500 29 33 41 40 25 2 89%* 2023 2024 2025 2026 202
Slide 20: Sustainability and ESG
Sustainability and ESG Hizmete Özel (Dış Taraflar) 20
Slide 21: Our sustainability strategy will be built on two pillars
Our sustainability strategy will be built on two pillars Climate/CO2 Targets 3 2 Long- term3 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 approach 40% reduction by 2035 for Scop
Slide 22: 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 23: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 23
Slide 24: PETKIM 4Q22 balance sheet
PETKIM 4Q22 balance sheet TL mn 9M'22 12M'22 Financial highlights 9M'22 12M'22 Cash and cash equivalents 9,768 14,227 Net debt position (13,815) (14,074) Trade receivable Working capital (2,912) (7,613) 4,691 4,735 Inventory Days sales outstanding 32 33 4,715 4,383 Other receivables Days payable out
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 Mn unit 600 280 500 230 400 300 180 200 130 100 80 0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Volume PETKM TI Equity XU100 Index Market capitalization Free float Closing price (TL/share) (TL mn) (%) 16,84TL TL 42,679 4
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. — Q4 2022 Earnings Presentation on 6ix