Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2018 Earnings Presentation
22 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2018
Slide 1: 2018 Q2 Results Presentation
2018 Q2 Results Presentation
Slide 2: Disclaimer
Disclaimer “Çimsa Çimento Sanayi ve Ticaret A.Ş.” (CIMSA) may when necessary make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. CIMSA discloses information through its Disclosure Policy and has shared this policy with t
Slide 3: Contents
Contents Market Overview • Turkish Cement Market 5-8 Cimsa • Operational Results 8-17 • Financial Results 18-22
Slide 4: 2018 Market Overview: Turkish Cement Market
2018 Market Overview Turkish Cement Market
Slide 5: Turkish Cement Market Development in 6M 2018
Turkish Cement Market Development in 6M 2018 • Turkey’s total cement consumption has increased by 6.5 % YoY (from 67 mton to 71.3 mton). • 6.7 mton of cement & clinker has been exported from Turkey in 6M 2018, a decrease of 5.7 % YoY. • The average grey cement price increased by 28% YoY. • Compared
Slide 6: Turkish Cement Market: Cement sector growth correlated with GDP
Turkish Cement Market Cement sector growth is correlated with GDP Cement consumption in 2017 increased by 8.1% and GDP growth was 7.4% 22.0% 19.4% 15.7% 9.4% 8.9% 10.0% 11.2% 10.8% 8.1% 5.9% 9.1% 8.8% 8.9% 5.0% 7.4% 5.0% 7.3% 4.7% 4.6% 6.1% 4.8% 4.6% 5.0% 4.5% 0.9% 2.1% 2.9% 0.0% 2.1% 0.8% -4.8% -6.
Slide 7: Turkish Cement Market: GDP per capita and cement consumption
Turkish Cement Market There is usually a positive correlation between GDP per capita and cement consumption . The cement consumption per capita increased slightly in 2017 while GDP per capita declined by 2%. 14.000 1.400 12.480 12.112 11.588 12.000 10.931 11.205 11.014 10.807 1.200 10.560 10.597 9.6
Slide 8: Operational Results
Operational Results |i
Slide 9: Operational Results: 6.6 Mt clinker capacity
Operational Results ➢ 6.6 Mt clinker capacity (including 1.3 Mt of white clinker) 9
Slide 10: Operational Results: plants and terminals
Operational Results ➢ 6.6 Mt clinker capacity (including 1.3 Mt white clinker) ▪ 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon ▪ 1 grinding station in Ankara ▪ 2 Cement packing terminals in Marmara and Malatya 10
Slide 11: Operational Results: white cement and international terminals
Operational Results ➢ One of the top three white cement players globally ➢ An international cement manufacturer with terminals around Europe ▪ Hamburg (Germany), ▪ Trieste (Italy), ▪ Seville (Spain), Alicante (Spain), ▪ Famagusta (TRNC), ▪ Constanta (Romania), ▪ Novorossiysk (Russia) First productio
Slide 12: Operational Results: clinker production and sales
Operational Results Strong clinker production and sales amount compared with Q2 2017 due to capacity increase in Afyon and Niğde plants . Decrease in ready mix sales due to infrastructural projects. Q2-17 Q2-18 6M-17 6M-18 Change % Grey clinker production (kton) 1.155 1.337 2.251 2.603 16% White cli
Slide 13: Operational Results - White Cement
Operational Results-White Cement ➢ White cement & clinker sales of 0.4 Mton Q2 2018 - 11 % increase in white cement volumes due to increased exports - 0.1 Mton white clinker is produced in Eskişehir during 6M 2018, also domestic and export white cement sales has been started - Total annual Capacity
Slide 14: Operational Results - Grey Cement
Operational Results-Grey Cement ➢ Grey cement & clinker sales of 1.5 mton Q2 2018 - Thanks to soft weather condition, domestic grey cement sales increased in Q2 2018 - Total annual capacity is 5.3 Mton - 6 production facilities located in Southern, Central and Western Interior Turkey - 7% Market sha
Slide 15: Operational Results: Ready Mix Concrete sales volumes
Operational Results RMX business maintained consistent growth; notched up 11% growth in sales volumes Ready Mix Concrete Sales Volumes (M m3) 3,4 2,8 2,4 2,4 1,4 1,6 0,8 0,9 14 15 16 2017 Q2-17 Q2-18 6M-17 6M-18 15
Slide 16: Operational Results: petcoke prices and energy costs
Operational Results Higher petcoke, coal and diesel prices led to sharp rise in energy costs Petcoke (Mid-Suphur) (CIF $/ton) 107 97 97 99 99 99 97 97 97 87 87 87 87 87 87 83 83 83 Çimsa 2017 Çimsa 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ➢ Çimsa’s avarage petcoke prices increased 17% in
Slide 17: Operational Results: electricity tariffs
Operational Results 4,6% increase in tariffs in April 2018 Electricity (TL/Mwh) 243 236 233 228 216 227 218 213 210 209 205 204 205 212 202 202 197 203 2018 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ➢ Average electricity costs increased by 4% from 226 TRY to 235 TRY compared to Q2 2017 ➢
Slide 18: Financial Results
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Slide 19: Financial Results: Key Financial Highlights
Financial Results EBITDA increased 45% in Q2 2018 compared to the same period in 2017 Key Financial Highlights (MTL) Q2-2017 Q2-2018 Change% 6M-2017 6M-2018 Change% Net consolidated sales 382 493 29% 630 853 35% Consolidated EBITDA (*) 92 133 45% 148 226 53% Consolidated EBITDA Margin % 24% 27% 12%
Slide 20: Financial Results: Consolidated EBITDA
Financial Results Consolidated EBITDA increased by 45% compared to the same period in 2017 EBITDA Margin is 27% in Q2 2018 450 40% 400 35% 30% 30% 350 28% 384 356 27% 30% 26% 27% 300 352 24% 306 23% 25% 250 20% 200 226 15% 150 148 10% 100 133 50 92 5% 0 0% 2014 2015 2016 2017 Q2-17 Q2-18 6M-17 6M-18
Slide 21: Financial Results: Consolidated net profit
Financial Results Consolidated net profit is 65 mn TL in Q2 2018 (Q2 2017 : 47 mn TL) 245 246 14 228 21 231 14 193 225 214 12 181 117 20 80 81 6 97 50 15 3 76 65 47 2014 2015 2016 2017 Q2-17 Q2-18 6M-17 6M-18 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up ➢ Robust demand, and strate
Slide 22: Financial Results: borrowings and net debt
Financial Results 1.387 1.400 1.173 1.200 1.000 800 754 870 827 Short Term Borrowings 600 575 597 Long Term Borrowings 550 400 Net debt 153 200 56 213 212 164 85 20 0 2014 2015 2016 2017 6M-2018 ➢ Total financial borrowings increased from 1,367 mn TL at Q2 2018 to 1,387 mn TL. ➢ Total financial borr
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