Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q1 2023 Earnings Presentation
27 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, May 2023
Slide 1: 1Q23 Results Investor Presentation
1Q23 Results Investor Presentation 1
Slide 2: 1Q23 financial highlights
1Q23 financial highlights TL9.2bn TL47mn TL131mn Sales 3% QoQ EBITDA 1% margin Net 0,06 TL/share -75% QoQ Income -83% QoQ TL5.7bn TL16.1bn Cash 1.4x current ratio Net 6.73x net debt/ EBITDA -60% QoQ Debt 14% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Managing the risks and opportunities during the downcycle
Managing the risks and opportunities during the downcycle 1Q23 highlights The global petrochemical industry has experienced one of the most prolonged and severe downcycles Profitability opened 2023 at lower end of historic range, facing consistent pressure from a harsh operating environment over pre
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 1.271 1.173 1.218 2.200 1.200 1.123 1.115 2.000 899 872 942 1.001 1.800 900 781 783 819 812 1.600 1.400 1.040 1.2
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 1050 Lengthening domestic supply and weak demand 950 850 Increasing feedstock prices 750 650 Margins remain at the bottom of the cycle due to combination of oversupply, weak demand and high feedstock
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 1Q22 2Q22 3Q22 4Q22 1Q23 (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) 91% 100% 710 638 516 366 572 120% 81% 80% 90% 800 100% 103% 102% 80% 700 90% 93% 66% 88% 87% 70% 80% 48% 88% 600 254 308 80% 87% 60% 70% 500 85% 54% 194 60% 69% 50% 74% 400 104 163 50% 40% 98 52% 60 80
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 1Q23 Total petchem sales: USD483mn 392 267 381 26% Thermoplastics 102 106 38% Fiber 75 126 92 73 211 Aromatics 67 87 57 82 Other 39 45 77 25 11 Trade 22 301 266 217 18% 170 182 2% 16% 1Q22 2Q22 3Q22 4Q22 1Q23
Slide 12: In 1Q23, Petkim achieved TL 9,096mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 434k ton TL9,096mn 125 2.033 2.376 82 1.442 57 32 31 34 35 543 737 527 437 654 6 22 6 3 136 158 52 In 1Q23, Petkim achieved TL 9,096mn sales via Exports breakdown 434k ton sales Export Revenue (TL mn) Total export: TL3,597mn Revenue b
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 1Q23 total COGS: 1Q23 inventory gain: TL9,217mn USD7.2mn 826 925 890 2% 4% 901 845 801 727 752 36% 26% Other 733 665 599 596 634 614 631 629 701 45% 49% 44% 2% Trade 601 18 555 1% 6% 2% 501 14 13 7% 1% 10% Depreciation 2% 401 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 500 3.200 1.967 1.949 1.100 1.400 450 1.748 1.857 2.800 1.730 1.682 1.000 1.200 400 1.559 2.400 1.325 900 304 350 1.304 1.356 1.266 1.245 1.308 1.305 293 1.000 1.003 2.000 1.042 1.059 1
Slide 15: PETKIM 1Q23 income statement
PETKIM 1Q23 income statement FY Q1 TL mn Q1‘22 Q1’23 YoY Δ (%) Q4‘22 Q1’23 QoQ Δ (%) Sales 11,421 9,198 (19%) 8,908 9,198 3% Cost of sales (9,746) (9,217) (5%) (8,846) (9,217) 4% Gross profit 1,675 (19) (101%) 62 (19) (131%) Gross profit % 15% 0% 1% (0%) Marketing and sales expenses (83) (171) 105%
Slide 16: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 7,4 8,0 4,7 3,4 3,6 Export 593 683 687 Domestic 465 6,6 7,0 6,2 434 5,5 5,5 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Financial EBITDA and net income (k TL) Margins (%) highlights 2.520 EBITDA 18% margin 1.603 1.753 1.508 15% 1.392 EBITDA Net income 11% 9
Slide 17: Earnings driven by negative pricing delta boosted by raw material prices
Earnings driven by negative pricing delta boosted by raw material prices 1Q23 segments’ results (mn TRY) -75% Quarterly change in EBITDA (mn TRY) Pricing delta: negative 17 TRY434mn
Slide 18: Liquidity highlights
Liquidity highlights Deposits* (%) Maturity profile (mn USD) ▪ USD500mn 2023 Eurobonds have been USD300mn redeemed due in January 2023 10% USD TRY EUR ▪ USD300mn credit facility with 3 years maturity has been utilized from JP Morgan due in 2026 12% 524 133 340 78%* 21 33 41 25 2 2023 2024 2025 2026
Slide 19: Sustainability and ESG
Sustainability and ESG Hizmete Özel (Dış Taraflar) 19
Slide 20: 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 21: Ranking 8th among 206 players in 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 22: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 22
Slide 23: PETKIM 1Q23 balance sheet
PETKIM 1Q23 balance sheet TL mn 12M'22 3M’23 Financial highlights 12M'22 3M’23 Cash and cash equivalents 14,227 5,743 Net debt position (14,074) (16,099) Trade receivable Working capital (7,613) (4,135) 4,735 4,182 Inventory Days sales outstanding 33 40 4,383 4,361 Other receivables Days payable out
Slide 24: 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 25: 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 26: 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 Feb-23 Mar-23 Apr-23 Volume PETKM TI Equity XU100 Index Market capitalization Free float Closing price (TL/share) (TL mn) (%
Slide 27: 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. — Q1 2023 Earnings Presentation on 6ix