Polisan Holding As · BIST:POLHO

Polisan Holding As — Investor Presentation (February 2014)

29 slides from Polisan Holding As's investor presentation, February 2014

  1. Slide 1: Polisan Holding

    POLISAN HOLDING February 2014

  2. Slide 2: Notice

    NOTICE This presenta>on may contain statements that are forward looking. These statements are based on current expecta>ons and assump>ons that are subject to risks and uncertain>es which may cause actual results to differ materially due to factors discussed in Polisan Holding’s prospectus filed during

  3. Slide 3: Polisan Holding: Poised for Growth in All Business Lines

    POLISAN HOLDING: POISED FOR GROWTH IN ALL BUSINESS LINES CHEMICAL PORT PAINT AGRICULTURE REAL ESTATE ACTIVITIES OPERATIONS 100% 100% 93% 100% 99% 51% 40% INTERNATIONAL EXPANSION 100% 3

  4. Slide 4: Polisan Holding: Board of Directors

    POLISAN HOLDING: BOARD OF DIRECTORS ! High School ! Bundesau\au Gymnasium ! University of Boston ,USA ! 70 years of work experience ! Wirtscha]s Universität (BSc), Austria Produc>on Engineer (BSc) and ! Dilovası Industrial Zone Chairman ! 27 years of work experience Mechanic Engineer (MSc) ! Chairma

  5. Slide 5: Polisan Holding: Executive Committee

    POLISAN HOLDING: EXECUTIVE COMMITTEE ! University of Istanbul, Faculty of ! Saint Joseph High School ! ITU, Chemical Engineer (BSc) Law ! University of Istanbul, Chemical ! Polymers Chemistry (MSc) ! 36 years at Polisan Group Engineer (BSc) ! Research Fellow at ITU un>l 1981 ! Polisan Holding CEO si

  6. Slide 6: Holding Strategy: To Maximize Shareholder Value

    POLISAN HOLDING STRATEGY: TO MAXIMIZE SHAREHOLDER VALUE Sustaining Profitable Growth of Exis\ng Businesses Maximizing Intra-­‐Group Synergies Forming Strategic Alliances to Expand in High Margin, New Business Lines U\lizing Holding’s Other Assets in its Porfolio Professional Management Dedicated to H

  7. Slide 7: Polisan Holding: Growth Above Turkish Economy

    POLISAN HOLDING: GROWTH ABOVE TURKISH ECONOMY 30.0% 20.0% 10.0% 0.0% -­‐10.0% 2009 2010 2011 2012 Polisan Holding 6.4% 19.2% 30.4% 7.8% GDP -­‐4.7% 9.2% 8.5% 2.2% Polisan Holding GDP Source : GDP: h-p://www.imf.org/external/datamapper/index.php Polisan Holding 7

  8. Slide 8: Polisan Holding: Continuing to Grow

    POLISAN HOLDING: CONTINUING TO GROW 2012 Revenue Breakdown 2012 EBITDA Breakdown 2% 15% 1% 24% 27% 9% 58% 65% Polisan Boya (Paint) Poliport Polisan Boya (Paint) Poliport Polisan Kimya (Chemical) Other Polisan Kimya (Chemical) Other Please note pie charts represent combined figures excluding intra-­‐g

  9. Slide 9: Turkey Paint Industry: Europe's 3rd Largest Market

    TURKEY PAINT INDUSTRY: EUROPE’S 3RD LARGEST MARKET Decora\ve Segment, which Rela\vely lower consump\on ~$2 billion Market sugges\ng further growth has ~60% share, drives growth 6% 3% 2% 7% 10% 58% 22.0 17.0 7.0 1.6 19.5 0.5 14% Italy Germany France Decora>ve Wood Metal Powder US France UK Turkey Chi

  10. Slide 10: Paint: Leader in Decorative Paint Segment

    POLISAN PAINT: LEADER IN DECORATIVE PAINT SEGMENT Polisan Paint Grows Higher than Market POLISAN’S FIRSTS IN THE SECTOR Polisan Market 95% 1 INTRODUCED HOME COSMETICS CONCEPT TO THE WORLD 53% 2 PRODUCTION OF TURKEY’S FIRST WATER BASED PAINT WITH MIX MACHINES 2005 2006 2007 2008 2009 2010 2011 2012 3

  11. Slide 11: Differentiation Strategy: Paint Is Not All About Color

    DIFFERENTIATION STRATEGY: PAINT IS NOT ALL ABOUT COLOR 1 FOCUS ON RETURN OF SALES CHANNEL 2 ENSURE LOYALTY OF PAINTERS 3 MANAGE BRAND PERCEPTION OF CONSUMERS Value for Most Extensive Best Quality & High Brand Money Sales Channel Service Awareness 11

  12. Slide 12: Growth Strategy: Continue to Lead & Profitable Growth

    GROWTH STRATEGY: CONTINUE TO LEAD & PROFITABLE GROWTH GROW IN ALL SEGMENTS IN LEAD GROWING INSULATION EXPAND AUXILIARY PAINT MARKET PRODUCT BUSINESS § Con\nue to lead decora\ve § Maintain leadership at Outsource produc\on of § paint package sales construc\on materials § Grow in other business li

  13. Slide 13: Poliport: Strategic Location with 1.2 km Berth Availability

    POLIPORT: STRATEGIC LOCATION WITH 1.2 KM BERTH AVAILABILTY TEM highway Cargo handled in 2013: 3.1 mln ton 3 Railway 1 Warehouse Bulk Liquid Storage 2 3 Dry Bulk and General Cargo Bulk Liquid Loading & Loading & Unloading Unloading Bulk Liquid Storage Stevedoring Services Warehouse Services § 168,00

  14. Slide 14: Turkey's Seaborne Trade Outlook: From 5th to 1st in Europe

    TURKEY’S SEABORNE TRADE OUTLOOK: FROM 5. TO 1. IN EUROPE 600,000 CARGO 500,000 HANDLED IN 400,000 387,426 TURKEY SURGED 300,000 213,105 BY 94% 200,000 BETWEEN 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004-­‐2012 Holland UK Italy Spain Turkey France Germany CAGR -­‐1.6% 2.6% -­‐0.5% 2% 8% 0.5% 1.

  15. Slide 15: Turkey Seaborne Trade: Growth Pace Above 1.5x GDP

    TURKEY SEABORNE TRADE: GROWTH PACE ABOVE 1.5X GDP 35.0% BY CARGO TYPE: 2% 22% 17% 30.0% 2012: One \me impact of the 25.0% Governor ‘s decision to relocate 20.0% coal importers at Kocaeli 32% 15.0% 27% 10.0% General Cargo Bulk Liquid Dry Bulk Container Cars 5.0% BY REGIMES: 14% 0.0% 2005 2006 2007 20

  16. Slide 16: Kocaeli Port: Posted Highest Growth at 12% in EU in 2012

    KOCAELİ PORT: POSTED HIGHEST GROWTH AT 12% IN EU IN 2012 KOCAELI IS AMONG TOP 10 EU TURKEY’S LARGEST PORT (2013) PORTS FOREIGN 22% 19% Rank Port Ton (2012) Change TRADE 4% 1 Roierdam 441,528 1.6% 4% 13% 2 Antwerp 184,136 -­‐1.6% 5% 3 Hamburg 130,938 -­‐1.0% 5% 11% 10% 4 Amsterdam 94,261 1.3% 8% 5 Al

  17. Slide 17: Strategy: Take the Lion's Share in Growing Seaborne Trade

    STRATEGY: TAKE THE LION’S SHARE IN GROWING SEABORN TRADE CHEMICAL INDUSTRY NEW OPPORTUNITES POLIPORT BUSINESS § Con>nuous growth in Chemical § Increasing share of Gulf Region § Engaging new business ac>vi>es Industry: products at Poliport: with mul>na>onal companies § Imports total $25 billion §

  18. Slide 18: Chemical Activities: Polisan; From Basement to Roof

    CHEMICAL ACTIVITIES: POLISAN; FROM BASEMENT TO ROOF ... POLISAN POLISAN ROHM & HAAS POLISAN CHEMICALS CONSTRUCTION (DOW) HELLAS CHEMICALS § Revenue breakdown: § Marke>ng and sales of: § Polisan Chemicals is the § Opera>onal in Greece § Formaldehyde resins § Concrete produced 1st emulsion polym

  19. Slide 19: Polisan Hellas: International Expansion

    POLISAN HELLAS: INTERNATIONAL EXPANSION TRANSACTION HIGHLIGHTS UTILIZING LOGISTIC SYNERGIES Ø Polisan Hellas bought 100% of the assets of Artenius Ø Raw material for produc>on is available at Poliport Hellas in Greece Ø Polisan Hellas is to increase Poliport’s turnover Ø Polisan Hellas will be c

  20. Slide 20: Polisan Holding's Properties: ~TRY620 mln

    POLİSAN HOLDING’S PROPERTIES: ~TRY620 MLN KAĞITHANE Z OFFICE BUSINESS CENTER: ~TRY112 MLN § Rapid urbaniza>on area, easy access in terms of transporta>on § Acces to Çağlayan – Kağıthane road, commercial real estate project § Joint Project (DAP Yapı: 58%, Polisan Yapı: 42%) § Polisan Holding: 14.

  21. Slide 21: Polisan Agriculture: Revenues Expected in 7 Years

    POLISAN AGRICULTURE: REVENUES EXPECTED IN 7 YEARS Ø Polisan Holding decided to grow walnuts and almonds in 2010 Ø Polisan Holding has all the necessary cer>ficates for produc>on Ø In talks with Government to purchase and lease land so as to reach 1,000 hectares and 6,000 tons produc>on per year Ø

  22. Slide 22: Financial Highlights: Boost in Operational Profitability

    FINANCIAL HIGHLIGHTS: BOOST IN OPERATIONAL PROFITABILITY POLISAN HOLDING FINANCIAL RESULTS TRY million FY 2011 FY 2012 YoY (%) Q3 2012 Q2 2013 Q3 2013 YoY (%) QoQ (%) Revenue 471.4 507.9 7.8% 119.5 184.9 147.2 23.2% -­‐20.4% EBITDA 64.8 75.5 16.5% 18.5 35.2 25.4 37.4% -­‐27.9% EBITDA Margin 13.8% 14

  23. Slide 23: Polisan Holding: 2013 Targets

    POLISAN HOLDING: 2013 TARGETS CONSOLIDATED HOLDING TARGETS Revenue Growth mainly driven by higher Double Digit Growth Polisan Paint and Poliport revenues EBITDA Maintaining profitability at current Maintaining levels Profitability 23

  24. Slide 24: Back Up

    BACK UP

  25. Slide 25: Polisan Holding: Milestones

    POLISAN HOLDING: MILESTONES 2013 Launch of Polisan POS Loyalty Programme 2012 2011 Introduced «Home Cosme>cs» concept globally 2009 2008 Produc>on of concrete addi>ves and AdBlue© 2006 2004 Launch of Mix Centers 2000 Headquarters moved from Dilovası to Istanbul 1994 1985 1975 The first manufacturer o

  26. Slide 26: Social Responsibility Projects: Targeting Women

    SOCIAL RESPONSIBILITY PROJECTS: TARGETING WOMEN Every Voice is a Breath Dance with Polisan Everything for Lizle Hearts 26

  27. Slide 27: Turkey: 13th Most Attractive FDI Destination in the World

    TURKEY: 13TH MOST ATTRACTIVE FDI DESTINATION IN THE WORLD Ø 6th largest GROWING ECONOMY WITH A YOUNG POPULATION economy in the EU Ø Ins>tu>onalized economy fueled by $123 billion FDI in the last decade Ø Infla>on at single GDP USD 786 billion (2012-­‐Current Prices) GDP Per Capita USD 10,504 (2012

  28. Slide 28: Turkey: 16th Largest Economy in the World

    TURKEY: 16TH LARGEST ECONOMY IN THE WORLD AVERAGE ANNUAL REAL GDP GROWTH (%) 2002-­‐2012 Real GDP growth of 5% on average between 2002 -­‐ 2012: 5.0 4.7 4.5 Ø Increasing role of private sector 4.3 Ø Enhancing efficiency and resiliency of the financial sector 3.6 3.5 3.5 Social security system on a mo

  29. Slide 29: Turkey: Economy Is to Continue to Grow

    TURKEY: ECONOMY IS TO CONTINUE TO GROW 9% 8% 9% 9% 6% 7% Con\nuing 5% 5% 1% 2% 4% 4% GDP growth 1 -­‐5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E $ billion 376 389 367 334 Increasing 225 277 243 299 161 190 Foreign 88 117 Trade Volume 2002 2003 2004 2005 2006 2007 2008 2009

Polisan Holding — Investor Presentation (February 2014) on 6ix