Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Investor Presentation (August 2022)
39 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's investor presentation, August 2022
Slide 1: Investor Presentation 2021
INVESTOR PRESENTATION 2021
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Çimsa Çimento Sanayi ve Ticaret A.Ş. (“CIMSA”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 3: Çimsa Cement – History and Development
Çimsa Cement – History and Development The World’s first A new White clinker line with Northern Cyprus Eskişehir’s second line was Became the first and Grey-White HotDisc (Waste convertible 600.000 tons/year capacity commissioned. With the terminal was acquired. Feeding and Waste only Turkish compan
Slide 4: Cimsa at a Glance
Cimsa at a Glance Grey Cement White Cement Special Products Transformation & Big Data Analytics Management, Cultural Transformation and Building Next Generation Çimsa Sustainability www.cimsa.com.tr 4
Slide 5: Market Outlook
Market Outlook
Slide 6: Turkish Cement Market
Turkish Cement Market Turkey’s GDP growth realized 14.3% growth in H1-2021 . Increase in Turkey domestic cement consumption is recorded 28.8 % in H1-2021. 28,80% 21,7% 23,20% GDP Growth Rate 16,0% 19,4% 11,2% 10,2% 9,1% 9,9% 4,8% 4,6% 1,6% 4,7% -0,1% 14% 2,1% 0,8% -10,8% 11,1% -6,0% 9,0% 8,5% 7,1% 5
Slide 7: Turkish Cement Market
Turkish Cement Market Turkey is the biggest cement producer in Europe, with high capacity utilization rates. Turkey has also 2nd place in World cement export. 97 Mt Turkey’s total cement Cement & Clinker Export (mt) production capacity is 97 Mt in Cement & Clinker Domestic Sales (mt) 2020 Cement Pro
Slide 8: Turkish Cement Market
Turkish Cement Market Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity 19% 14% 11% 16% 8% 8% 7% 5% 5% 5% 5% 4% 4% 4% 3% Oyak Limak Akçansa Çimsa Aşkale Çimko Nuh Çimentaş As Batı Vicat Medcem Votorantim Others Anadolu 8
Slide 9: Global White Cement Market
Global White Cement Market Global White Cement Consumption (Mt CC) ▪ Global white cement demand has 21,0 20,9 decreased by ~3% annually and 19,9 19,8 20,1 20,3 19,7 20,3 19,3 19,6 19,6 18,8 estimated 20,3 Mt CC level in 2020. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 E www.cimsa.co
Slide 10: Global White Cement Market
Global White Cement Market Regional Distribution of White Cement Consumption ▪ Global white cement production capacity reached to 33,9 Mt CC in 2019, while global Russia & white cement consumption is 20,9 Mt . Eastern Europe Northern 6% America 7% ▪ China and Middle East regions have the Latam 5% Ch
Slide 11: Overview of Çimsa
Overview of Gimsa wwweilmsacomtr _g
Slide 12: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Special Products Establishing a strong & profitable core High profitable new age products Being Global Leader in White Cement • Produce new age products with R&D • Optimise grey operations • Ensure successful integration of Bunol Plant (Spain-Bunol) • Çimsa
Slide 13: The Future for Çimsa's Business
Export Driven Revenus and Product Diversification Extensive global reach: 65 countries under its The Future for Çimsa’s Business own brand Increased focus on growing FX revenues through the investment in the first production operation abroad: White Cement Grinding Facility in Houston Diversed produc
Slide 14: Çimsa Grey – Solid Network
Çimsa Grey – Solid Network 6.2 5.3 Mt ANKARA ESKİŞEHİR 5.3 Mt Grey Clinker Capacity AFYON KAYSERİ MALATYA NİĞDE MERSİN 1.6 1.7 Mt 5 Integrated Plants in 1 Grinding Station in 1 Cement Packing terminal in 1.7 Mt White Mersin, Eskişehir, Kayseri, Ankara Malatya Clinker Capacity Niğde & Afyon www.cimsa
Slide 15: Çimsa Grey – Operational Excellence
Kcal / Kg 650 750 950 600 700 850 900 800 Iraq Afyon #1 Nigde #1 Russia Algeria Kayseri #1 Algeria Azerbaijan Grey Kilns Comparison Algeria Nigeria Russia Switzerland Morocco Greece Nigeria Morocco Morocco Switzerland Jordan Mersin #1 Romania Eskisehir #2 Morocco Greece U.K. Serbia Moldova Romania P
Slide 16: Çimsa Grey – Strong Export Capabilities
Çimsa Grey – Strong Export Capabilities Export Sales Volume Trend 2018 - 2021 Grey Clinker Export Grey Cement Export 1.030 1.036 931 500 803 708 710 474 513 291 2018 2019 2020 09 - 2020 YTD 09 - 2021 YTD www.cimsa.com.tr 16
Slide 17: Çimsa White – Main Application Areas
Çimsa White – Main Application Areas White Architectural Concrete White cement is the ideal material for concrete works providing an aesthetic finish whilst maintaining high structural performance. It is a versatile and durable material requiring no external treatments or coatings and can replicate
Slide 18: Çimsa White – Market Positioning
Çimsa White – Market Positioning ▪ As of today, Çimsa’s white cement sales network expands to over 60 countries through strategically located terminals and long-term distributors. ▪ Çimsa sales of white cement and clinker stood at 1.5mt in 2020 with the completion of the white line expansion in the
Slide 19: Çimsa White – Market Positioning
Çimsa White – Market Positioning Çimsa White Cement & Clinker Sales Regional Distribution ▪ Çimsa is one of the top three producers in global white cement sector. Latin America 7% Turkey ▪ Çimsa’s market share in global white cement market 10% MENA 26% improved from 5,3% to 7,2% in last decade. ▪ Bu
Slide 20: Çimsa White - Overview of the Bunol Transaction
Çimsa White - Overview of the Bunol Transaction The Plant in Spain Asturias Cantabria País Galicia Vasco Foral de Navarra • Buñol is Cemex’s sole operational white cement factory in Europe. La Castilla y Rioja León • The plant had a major overhaul in 2007 and is currently among the most advanced whi
Slide 21: Cimsa Sabanci Cement BV - Organizational Structure
Cimsa Sabanci Cement BV - Organizational Structure Both Sabancı Holding and Çimsa are publicly traded companies with free float rates of 45% and 42%, respectively. None of Sabancı Family Members (31 people) directly and/or indirectly controls more than 10% stake/voting rights of Sabancı Holding, Çim
Slide 22: Special Products – Çimsa Aluminates Family
Special Products – Çimsa Aluminates Family ▪ Refro: More durable and long lasting refractory applications ▪ Resisto: Resistant to chemicals, abrasion and heat. ▪ Rego: Achieve maximum performance from your calcium aluminate based recipes. ▪ Recipro: More stable and high performance dry-mix recipes w
Slide 23: Special Products – Calcium Aluminate Cement
Special Products – Calcium Alimunate Cement Special Products CAC Sales (Kton) CAC Sales (KUSD) 12.114 11.276 10.525 9.974 41 39 34 35 31 7.927 2018 2019 2020 09 - 2020 09 - 2021 YTD YTD 2018 2019 2020 09 - 2020 09 - 2021 YTD YTD www.cimsa.com.tr 23
Slide 24: Sustainability
Sustainability • Çimsa is the first company in Turkey having Integrated Report and will publish its 6th Integrated Report. • Çimsa announced its ESG (Enviroment-Social-Governance) targets and contribution to SDG (Sustainable Development Goals). www.cimsa.com.tr 24
Slide 25: Our Six Priority SDGs
Our Six Priority SDGs Sustainability Committee; Leader: Human Resources and Sustainability Vice President The aim of the Sustainability Committee is to achieve its corporate goals by managing sustainability on the axis of ➢ feedback from stakeholders ➢ in-house performance ➢ global and local trends
Slide 26: Çimsa's Goals & Contribution to the Sustainable Development Goals
Çimsa’s Goals & Contribution to the Sustainable Development Goals New Term Goal Based on the water consumption per ton clinker in 2020, Çimsa aims to reduce its water consumption per ton clinker by 20% until 2030. Water consumption per clinker produced in total is 0.38 m3 in 2020, and it is aimed to
Slide 27: Governance, Environment, Social
ENVIRONMENT GOVERNANCE • Sustainabilty Committee (meeting in every month). • Alternative fuel usage increase, 7,8% in 2020 (7,5% 2019) ➢Policies • Çimsa started working for the CSC certificate. ✓Integrated Management System Policy. • The Environmental Product Declaration (EPD) is renewed for white a
Slide 28: Operational Results
Operational Results 25
Slide 29: Operational Results
Operational Results* White Cement & Clinker Sales Volumes (M ton) Grey Cement & Clinker Sales Volumes (M ton) Domestic sales Export sales Domestic sales Export sales 1,5 5,6 1,39 1,39 4,9 1,29 1,29 1,20 1,10 4,30 1,13 1,13 4,7 3,90 4,30 4,31 0,95 3,00 2,87 3,00 1,70 1,70 1,43 1,32 0,26 0,19 0,21 0,1
Slide 30: Operational Result – Grey Clinker Cost Structure
Operational Result – Grey Clinker Cost Structure 2020 09 YTD 2021 09 YTD 2% 1% 13% 10% 25% Petcoke purchase prices increased significantly according to 2020 due to 32% increase in pace prices in the market 53% 64% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other www.cimsa.com.
Slide 31: Financial Results
Financial Results wwweimsacomtr 28
Slide 32: Financial Result
Financial Result DEC 2020 Key Financial Highlights (MTL) Q3-20 Q3-21 Change % SEP-20 SEP-21 Change % YTD Net Consolidated Sales 490 891 82% 1 344 2533 88% 2.076 Gross Margin % 29% 1 9% -9,30pp 22% 22% -0,63pp 23% Consolidated EBITDA (*) 1 44 1 53 7% 290 51 1 76% 431 Consolidated EBITDA (*) Margin %
Slide 33: Financial Result
Financial Result Net financial debt increased from 619 MTL in 2020 year end to 769 MTL in 2021 due to SPV investment and higher TRY equivalent of FX denominated borrowings. Net Debt 2021 Q3 Net Debt: 769 2020 YE Net Debt:619 Q3 Cash: 441 MTL YE Cash: 904 MTL Net Debt/EBITDA 5,4 1,4 1,2 2019YE 2020YE
Slide 34: Financial Result
Financial Result Net working capital*/ Net Sales was at 15% for 2021 Sep *13 month average 15% ✓ Optimization of production to managing inventory levels. ✓ Strong overdue receivable management ✓ Payment term negotiations with suppliers 2021 Working Capital 28% 21% 15% 15% 27% 15% Net working capital
Slide 35: Key Investment Messages
Key Investment Messages ✓ Differentiated cement player with special focus on white cement and CAC ✓ A strong grey cement player with a balanced and diversified portfolio ✓ Open to growth initiatives together with Sabancı Holding through Cimsa Sabancı Cement BV ✓ Solid balance sheet with disciplined
Slide 36: Appendix – Financial Statements
Appendix – Financial Statements 28
Slide 37: Balance Sheet
Balance Sheet MTL 2021 Q3 2020 YE MTL 2021 Q3 2020 YE Current Assets 1 .987 2.557 Current Liabilities 1 .573 2.938 Cash and cash equivalents 441 904 Borrowings* 844 1 .306 Trade receivables 775 322 Trade payables 528 572 Other receivables 1 2 Derivative financial liabilities 27 43 Derivative financi
Slide 38: Income Statement
Income Statement 2021 Q3 Income Statement (MTL) 2021 9M 2020 9M Q3 2021 Q3 2020 Sales 2.533 1 .344 891 490 Cost of sales (-) -1 .984 -1 .044 -71 9 -350 GROSS PROFIT 549 300 1 72 1 40 General and administrative expense (-) -1 23 -93 -48 -24 Marketing, selling and distribution expense (-) -9 -1 1 -2 -
Slide 39: Cash Flow
Cash Flow MTL 2021 9M 2020 9M A. CASH FLOWS FROM OPERATING ACTIVITIES -21 7,0 286,9 Profit before taxation 773,0 1 51 ,2 Adjustments to reconcile net profit/loss for the period -21 8,9 243,2 Changes in working capital -692,8 -91 ,7 Cash flows from operations -1 38,7 302,6 Interest received 1 4,5 0,4
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