Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS
Akcansa Cimento Sanayi Ve Ticaret A.s — Q3 2019 Earnings Presentation
28 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2019
Slide 1: 2019 Q3 Results
2019 Q3 Results Umut Zenar, CEO Steffen Schebesta, CFO
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by Akçansa Çimento Sanayi ve Ticaret A.Ş. for the sole purpose of providing information relating to Akçansa (Information). This Presentation is based on public information and data provided by Akçansa management and basically demonstrates
Slide 3: Content
Content Page 1. Market Overview 4 2. Financial Report 13 3. Outlook 19 3
Slide 4: Key Highlights
Key Highlights ▪ 2019 9M ✓ Total cement volumes down 1% vs prior year. Domestic cement volumes declined by 38%, offset by 131% increase in cement/clinker exports. ✓ Higher energy costs exerted pressure, particularly on domestic margins. Good development in the export markets offset some of the decli
Slide 5: Turkey Domestic Demand Growth 2019
Turkey Domestic Demand Growth 2019 0% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 -10% -39% -30% -20% -20% -23% -27% -29% -30% -33% -32% -32% -34% -40% -40% -35% -42% -36% -35% -40% -37% -37% -39% -38% -38% -41% -41% -51% -46% -50% -51% -60% Turkey Monthly YoY
Slide 6: Turkish Cement Market, Sales Volumes Change %
Turkish Cement Market, Sales Volumes Change % 2019 vs 2018 (July YTD) -33% -40% -20% -31% -30% -19% -37% Total cement demand in Turkey decreased by -32% as of July’19 YTD vs July’18 and reached 26.3 mt Source: TCMA 6
Slide 7: Turkish Export Volume Trend – Sep YTD 2019
Turkish Export Volume Trend – Sep YTD 2019 Increase in exports offset some of domestic market contraction in 2019 (*) OAIB data - volumes include both white and grey products Source: OAIB Only OAIB members’ data are included 7
Slide 8: Turkish Cement Industry Export Volumes (kt) – YTD Sep'19
Turkish Cement Industry Export Volumes (kt) – YTD Sep’19 Total Exports 2018 2019 ∆ '19 vs '18 Trend Ghana 934 1.988 113% Ivory Coast 388 1.213 213% Guinea 334 736 120% Clinker Colombia 267 634 137% Exports Cameroon 51 556 983% Mauretania 305 519 70% Other 1.983 3.425 73% Total Clinker
Slide 9: Akçansa Export Markets
Akçansa Export Markets West Africa and USA are the major export markets in 2019 9M18 Other 0.1% West Africa 35,8% LA Cement 64,1% 0,9 mt USA Clinker 1,4 mt 9M19 Other 15,8% 50,8% West Africa 33,4% USA 9M Exports up 131% from 1.2 to 2.8 mt 9
Slide 10: Sales Volume Breakdown
Sales Volume Breakdown Cement Shipments RMC Shipments -1% -31% [M ton] 6,0 5.5 5.5 [M m3] 2,5 2,0 4,5 2,7 -38% 1,5 4,3 3,0 2,4 1,0 +131% 1,6 1,5 2,8 Domestic 0,5 Export 1,2 0,0 0,0 9M18 9M19 9M18 9M19 [M ton] 3,0 [M m3] 1,5 +3% 1.8 1.9 1,0 -14% 1,5 0,8 -38% 1,4 0,5 +115% 0,7 1,1 0,6 0,5 0,0 0,0 3Q18
Slide 11: Energy Costs (3Q19 vs 3Q18)
Energy Costs (3Q19 vs 3Q18) 3Q19 vs Energy Price 3Q18 Coal (TL/t) Petcoke (USD/t) Petcoke (TL/t) Diesel (TL/lt) Electricity (TL/kwh) ▪ Favorable effect of purchasing price of fuel was the main positive cost driver. Increasing ▪ Negative price effect of electricity leads to strong increase in energy
Slide 12: Content
Content Page 1. Market Overview 4 2. Financial Report 13 3. Outlook 19 12
Slide 13: Income Statement
Income Statement % Ch. Company (M TL) 9M18 9M19 YTD 3Q18 3Q19 % Ch. Q Net Sales 1.319,1 1.378,8 4,5% 469,0 488,4 4,1% Cost of Sales (1.008,1) (1.185,0) 17,5% (352,4) (407,6) 15,7% Gross Margin 310,9 193,7 -37,7% 116,7 80,8 -30,7% Marketing&Sales Expense (13,6) (17,9) 31,4% (4,4) (4,1) -7,6% General
Slide 14: Cash Flow
Cash Flow Company (M TL) 9M18 9M19 Cash flow from operating activities Operating income before the changes in working capital 309,0 180,1 Changes in working capital (38,6) 39,0 Taxes paid (36,6) (5,9) Other items (4,2) (6,5) 229,6 206,7 Cash flow from investing activities Tangible and intangible fix
Slide 15: CAPEX
CAPEX M TL 60 134 140 115 113 120 42,4 44,2 98 100 40 30,9 80 20,3 50 60 20 40 8,8 20 0 0 2015 2016 2017 2018 2019 9M Total Capex (mTL) Total Capex in (mUSD) FY 2019 Capex to stay clearly below 2018 15
Slide 16: Net Debt / EBITDA
Net Debt / EBITDA M TL 2,1 500 455 423 426 450 1,8 406 384 383 383 400 1,5 1,4 350 1,5 333 350 304 1,3 1,2 290 1,2 1,2 1,1 1,1 300 1,2 1,0 250 0,9 0,8 0,7 200 0,6 150 100 0,3 50 0,0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Net debt Net Debt/EBITDA* (LTM) (*) EBITDA = Operating Income
Slide 17: Balance Sheet
Balance Sheet Variance 2019 Variance Mio TL 30.09.2018 31.12.2018 30.09.2019 vs 2018 Mio TL 30.09.2018 31.12.2018 30.09.2019 2019 vs 2018 Current Assets 996,1 713,0 805,7 92,7 Current Liabilities 864,8 715,1 860,4 145,4 Cash & cash equivalents 275,4 52,7 122,4 69,6 Financial Liabilities 461,5 385,4
Slide 18: Content
Content Page 1. Market Overview 4 2. Financial Report 13 3. Outlook 19 18
Slide 19: Global Cement Consumption
Global Cement Consumption [bn ton] 5 China -2% Global without China 4.1 4.1 4.1 4.1 4.2 4.1 4.0 4 3.8 3.6 3.3 3.0 3 2.8 2.8 2,3 2,2 2,4 2,5 2,3 2,4 2,3 2,1 2,2 1,9 1,3 1,4 1,6 2 1 1,9 2,0 1,6 1,6 1,6 1,6 1,8 1,7 1,8 1,4 1,5 1,4 1,5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e
Slide 20: 2019 Outlook
2019 Outlook Compared to 2018: ▪ Total cement volumes expected to be in line with prior year, driven by doubling of export volumes 2019e Energy Price ▪ Domestic demand decrease expect to be less severe in Q4 FY (base effect) Coal (TL/t) ▪ Increase in alternative fuel usage from 13.1% (in 2018) to ab
Slide 21: Follow Us
ons AKCAN@Q®) Gy INVESTORS | = 4, IN PEOPLE af Follow Us We are also rising together in the social networks. f fakcansa D> fakcansa = in /company/akcansa = Gs HEIDELBERGCEMENT | QQBANCI WS SI 21 "Onin es
Slide 22: Contacts
Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Dr.Barış Ergen, FPA & IR Manager Phone +90 216 571 30 50 baris.ergen@akcansa.com.tr Fax +90 216 571 30 31 IR.info@akcansa.com.tr Banu Üçer, Corporate Communication Manager Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr F
Slide 23: Appendix
HEIDELBERGCEMENT | QQBANCI Appendix 23 a Oy INVESTORS | 54 4,2 IN PEOPLE
Slide 24: EBITDA Margins
EBITDA Margins EBITDA Margin - Quarterly % 30 27.0 24.0 24.5 25 22.0 20 18.1 19.4 17.3 14.7 14.8 15.7 15.3 15 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 25 23.0 23.5 21.2 19.0 19.8 20 18.1 16.2 16.7 14.7 14.8 15.3 15 10 5 0 3M 6M 9M 12M 2017 2018 2019 24
Slide 25: Dividend Paid, Dividend Yield and Payout Ratio
Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % 257.6 11.2 90.9 91.6 91.2 89.8 237.2 86.1 226.3 9.2 8.7 152.8 6.6 6.8 128.0 2015 2016 2017(*) 2018 2019 2014 2015 2016 2017 2018(**) 2014 2015 2016(*) 2017 2018 *) Adjusted for extraordinary gain from sale o
Slide 26: Annual Mortgage Interest Rates
-9,8 13,0 Sep 2019 14,0 Aug 2019 21,0 Jul 2019 22,0 Jun 2019 20,0 May 2019 17,0 Annual Mortgage Interest Rates Apr 2019 21,0 Mar 2019 Feb 2019 Jan 2019 27,8 2018Q4 22,8 2018Q3 26 13,2 2018Q2 15,0 2018Q1 13,0 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 % 2015Q4 24 14 28 26 22 20 18 16 12
Slide 27: General Basics About Cement and RMC Production
General Basics About Cement and RMC Production Production ▪75-85% clinker is consumed to produce 1 ton of cement ▪250-300 kg of cement in 1 m3 RMC produced ▪1.5-2.0 ton of aggregate in 1 m3 RMC produced depending on the type of RMC produced ▪Distribution of cement production cost : 80-85% variable a
Slide 28: AKCANCGY,)
AKCANCGY,) is DUNYASI ALE ici SIDDETE KARSI DRIVING SUSTAINABLE ECONOMIES DOGRU BILESENLER T bl | BASARIMIZIN CIMENTOSU AKCAN@Q) ie SUSTAINABILITY REPORT 2 0 1 6 \ Pile Akgansa Sirdiriilebilirlik Raporu 2014 - 2015
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