Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS
Akcansa Cimento Sanayi Ve Ticaret A.s — H1 2018 Earnings Presentation
27 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2018
Slide 1: 2018 1H Results
2018 1H Results Umut Zenar, GM Steffen Schebesta, CFO Slide 1
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 12 3. Outlook 19 Slide 3
Slide 4: Key Highlights
Key Highlights ▪ 2018 1H ✓ Akçansa’s cement exports increased by 6%, while RMC volumes were up 9% ✓ Higher energy costs and devalued TL compared to 1H17 (fuel price +33%) were overcompensated by positive effect of price increase ✓ Operating income increased by 109% from 69.9 mTL to 146.3 mTL ▪ 2018
Slide 5: Turkish Cement Industry
Turkish Cement Industry Domestic consumption increased by 9% in 2017; 2018 growth expected to be 2% This presentation/report demonstrates "estimated results" of market research done by Akçansa Çimento Sanayi ve Ticaret A.Ş. in addition to Turkish Cement Manufacturers’ Association figures Source: TCM
Slide 6: Construction Sector
Construction Sector Shift from residential sector to infrastructure expected to continue in 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 1. Private Housing 57% 50% 51% 54% 52% 53% 53% 51% 45% 45% 42% 41% 2. Commercial 16% 13% 9% 11% 10% 11% 9% 10% 9% 8% 8% 8% 3. Public 5% 5% 5%
Slide 7: Domestic Sales Volume Change (May YTD)
Domestic Sales Volume Change (May YTD) May YTD domestic market consumption increased by 9% in Turkey 3% 5% 22% 18% 21% 5% -1% Source: TCMA and Akçansa estimates Slide 7
Slide 8: Volumes, Prices and Energy Costs
Volumes, Prices and Energy Costs Increase in both domestic and export prices 1H17 vs 1H17 2Q18 vs 2Q17 Readymix Price Price Volume Volume (TL/m3) (TL/m3) Average ▪ Increase in H1 RMC volume and prices Marmara in all regions Aegean Black Sea 1H18 vs 1H17 2Q18 vs 2Q17 Domestic Cement Price Price Volum
Slide 9: Sales Breakdown
Sales Breakdown Cement Shipments RMX Shipments [M ton] [M m3] 4.5 0% 2.0 3.8 3.8 +9% 1.5 3.0 3.0 3.1 1.0 1.5 1.7 1.5 0.5 Domestic Cement Export Cement 0.5 0.5 0.0 Export Clinker 0.0 0.2 0.2 1H17 1H18 1H17 1H18 [M ton] [M m3] 3.0 1.5 -5% 2.0 1.9 1.0 0% 1.5 1.7 1.5 0.5 0.9 0.9 0.3 0.3 0.0 0.0 0.1 0.0
Slide 10: Export Markets
Export Markets West Africa and USA are the major export markets in 1H17 and 1H18 1H17 LA Cement Other 0,5 mt 2.9% West Africa 34,8% Bagged Cement 62,3% 0.0% USA North Africa & Clinker 0,2 mt 1H18 Other 0.5% West Africa 32,3% 67,2% USA Source: AKC management report Slide 10
Slide 11: Content
Content Page 1. Market Overview 4 2. Financial Report 12 3. Outlook 19 Slide 11
Slide 12: Income Statement
Income Statement % Ch. Company (M TL) 1H17 1H18 YTD 2Q17 2Q18 % Ch. Q Net Sales 689,5 850,0 23,3% 391,4 462,4 71,0 Cost of Sales (569,9) (655,8) 15,1% (319,3) (337,9) (18,6) Gross Margin 119,6 194,3 62,4% 72,0 124,5 52,4 Marketing&Sales Expense (10,4) (9,2) -12,2% (5,4) (4,6) 0,7 General Management
Slide 13: Net Income Bridge
Net Income Bridge Net income significantly above PY 139 Energy Cost 43 Other 24 (***) 4 9 2 18 8 111 56 1H17 Price(*) Volume&Cost Other OI/Exp Dividend Sale of FA Fin. Taxes 1H18 of Sales(**) income Inc.&Charges Source: CMB financials and AKC calculations *) Change in NSP/t x old volume **) Change i
Slide 14: Cash Flow
Cash Flow Company (M TL) 1H17 1H18 Cash flow from operating activities Operating income before the changes in working capital 115,9 195,0 Changes in working capital (62,1) (49,2) Taxes paid (14,9) (19,6) Other items (4,7) (3,3) 34,2 122,8 Cash flow from investing activities Tangible and intangible f
Slide 15: Significant Increase in Free Cash Flow Generation
Significant Increase in Free Cash Flow Generation 1H18 1H17 CF From Operating Act. 172.1 96.3 Before WC changes Working Capital -49.2 -62.1 CF from -13.4 -39.9 Investing Act. Free Cash Flow 109.5 -5.7 MTL MTL CF From Operating Act. Before WC changes WC CF from Inv. Act. FCF Source: CMB financials an
Slide 16: Net Debt / EBITDA
Net Debt / EBITDA Net debt 72mTL lower than in Q2’17 -72 M TL 1,8 500 455 423 450 1,6 406 1,4 1.4 384 383 1,4 333 400 1.2 1,2 1,1 1,1 350 1,0 300 1,0 249 225 230 226 250 0,8 0.6 0,6 185 179 0,6 0,5 200 0,6 0,4 0.5 91 150 0,4 0.2 100 0,2 50 0,0 0 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Slide 17: Akçansa gross debt composition from 2017 1H to 2018 1H
Akçansa gross debt composition from 2017 1H to 2018 1H Shift to longer maturities in 2018 – currently no overnight loans Split By Days to Maturity 2017 1H 2018 1H 6m - 12m O/N 6m - 12m 12% 12% 22% >12m <3m 22% 10% 3m - <6m 66% 56% 3m - <6m Slide 17
Slide 18: Balance Sheet
Balance Sheet Variance 2018 Variance 2018 Mio TL 30.06.2017 31.12.2017 30.06.2018 vs 2017 Mio TL 31.03.2017 31.12.2017 30.06.2018 vs 2017 Current Assets 688,4 713,0 848,5 135,5 Current Liabilities 773,4 715,1 788,4 73,3 Cash & cash equivalents 41,0 52,7 90,9 38,2 Financial Liabilities 496,1 385,4 37
Slide 19: Content
Content Page 1. Market Overview 4 2. Financial Report 12 3. Outlook 19 s Slide 19
Slide 20: 2018 Outlook
2018 Outlook Expectations FY18 vs FY17 Volume Price Domestic Cement (TL/t) Compared to AC17: Export Cement ($/t) ▪ Construction sector to grow more slowly in H2 Export Clinker ($/t) ▪ Shift from domestic cement volumes to exports RMC (TL/m3) ▪ Domestic cement prices above 2017 compensating for cost
Slide 21: Overview of Major Projects
Projects 0-2 years Overview of Major Projects Projects 3-5 years Substantial number of high volume projects in Akçansa’s core region Marmara Istanbul Tunnel Major urban transformation areas in Istanbul (8m m3) North Marmara Highway (2.500k m3) Expected effect on Turkey Halkalı- 3rd Airport 3rd Airpo
Slide 22: Follow Us
Follow Us We are also rising together in the social networks. f fakcansa ® fakcansa in /company/akcansa MenDELneRS. AKGANOD Cimento sektorunutn kalbi bizimle atryor. fans reoasnc 0) OD Cy) AKGAN@Q) Slide 22
Slide 23: Contacts
Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Ülgen Eryürek Aslan, IR Manager Phone +90 216 571 30 17 ulgen.eryurek@akcansa.com.tr Fax +90 216 571 30 31 IR.info@akcansa.com.tr Esra Sulubacak Altan, IR Specialist Phone +90 216 571 30 62 esra.sulubacak@akcansa.com.tr Fa
Slide 24: Appendix
Appendix AKCAN@Q)
Slide 25: EBITDA Margins
EBITDA Margins EBITDA Margin - Quarterly % 35 31,8 31,2 31,8 30,3 30 26,5 27,0 26,9 25,0 23,6 24,2 25 22,1 20 18,1 18,2 16,0 15 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 35 29,6 30,1 29,2 29,3 30 26,5 27,9 27,9 25,0 25 22,9 19,6 20,3 20 18,1 17,2 16,0 15 10 5 0 3M 6M 9M 12M 2015 2016 2017 2018 Source
Slide 26: Dividend Paid, Dividend Yield and Payout Ratio
Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % 257,6 9,2 91,5 90,9 91,6 91,2 237,2 8,7 86,1 226,3 6,6 6,8 6,2 144,4 128,0 2014 2015 2016 2017(*) 2018 2014 2015 2016 2017 2018 2013 2014 2015 2016(*) 2017 *) Adjusted for extraordinary gain from sale of Hob
Slide 27: General Basics About Cement and RMC Production
General Basics About Cement and RMC Production Production ▪1.6 ton of limestone are consumed to produce 1 ton of clinker ▪75-90% 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 produ
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