Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS
Akcansa Cimento Sanayi Ve Ticaret A.s — 9M 2018 Earnings Presentation
27 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2018
Slide 1: 2018 9M Results
2018 9M 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 9M ✓ Akçansa’s domestic cement volumes declined by 6%, while cement exports increased by 11%; RMC volumes were in line with the prior year. ✓ Higher energy costs and devalued TL compared to 9M17 (fuel price +18%) were overcompensated by higher prices both in domestic and export
Slide 5: Turkish Cement Industry
Turkish Cement Industry Domestic consumption increased by 9% in 2017; 2018 growth expected to be 2% Turkey Supply – Demand (mt) 67,8 This presentation/report demonstrates "estimated results" of market research done by Akçansa Çimento Sanayi ve Ticaret A.Ş. in addition to Turkish Cement Manufacturers
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 (July YTD)
Domestic Sales Volume Change (July YTD) July YTD domestic market consumption increased by 4% in Turkey 1% 1% 10% 11% 16% -1% -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 9M18 vs 9M17 3Q18 vs 3Q17 Readymix Volume Price Volume Price ▪ Q3 volumes were down in all regions (TL/m 3) (TL/m 3) after a good H1 Average ▪ Increase in 9M RMC prices in all Marmara regions to offset cost increases Aegean
Slide 9: Sales Breakdown
Sales Breakdown Cement Shipments RMC Shipments [M ton] -5% [M m3] 5.9 0% 6.0 5.5 2.5 2.0 4.5 1.5 4.8 4.3 3.0 2.4 2.4 1.0 Domestic Cement 1.5 0.5 Export Cement 0.8 0.9 0.0 Export Clinker 0.0 0.3 0.3 9M17 9M18 9M17 9M18 [M ton] [M m3] 3.0 1.5 -12% 2.1 1.0 -17% 1.8 1.5 1.7 1.3 0.5 0.9 0.7 0.3 0.4 0.0 0
Slide 10: Export Markets
Export Markets West Africa and USA are the major export markets in 9M17 and 9M18 9M17 LA Cement Other 0,7 mt 0.1% West Africa 35.8% 64.1% Bagged Cement USA & Clinker 0,5 mt 9M18 Other 0.3% West Africa 37.8% 61.9% 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) 9M17 9M18 YTD 3Q17 3Q18 % Ch. Q Net Sales 1.091,1 1.319,1 20,9% 401,6 469,0 16,8% Cost of Sales (878,9) (1.008,1) 14,7% (309,0) (352,4) 14,1% Gross Margin 212,2 310,9 46,5% 92,6 116,7 26,0% Marketing&Sales Expense (14,7) (13,6) -7,4% (4,3) (4,4) 4,2% General Man
Slide 13: Net Income Bridge
Net Income Bridge Net income significantly above PY 329 Energy Cost 97 Other (***) 144 4 9 2 24 11 172 103 9M17 Price(*) Volume&Cost Other OI/Exp Dividend Sale of FA Fin. Taxes 9M18 of Sales(**) income Inc.&Charges Source: CMB financials and AKC calculations *) Change in NSP/t x old volume **) Chang
Slide 14: Cash Flow
Cash Flow Company (M TL) 9M17 9M18 Cash flow from operating activities Operating income before the changes in working capital 212,0 309,0 Changes in working capital (86,8) (38,6) Taxes paid (21,0) (36,6) Other items (5,6) (4,2) 98,6 229,6 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 9M18 9M17 CF From Operating Act. 268.2 185.4 Before WC changes Working Capital -38.6 -86.8 CF from -23.8 -54.6 Investing Act. Free Cash Flow 205.8 44.0 MTL MTL CF From Operating Act. Before WC changes WC CF from Inv. Act. FCF Source: CMB financials a
Slide 16: Net Debt / EBITDA
Net Debt / EBITDA Net debt 119mTL lower than in Q3’17 M TL -119 500 1.8 455 423 450 1.6 406 1.4 1.4 384 383 1.4 333 400 1.2 1.1 1.1 350 1.2 1.0 304 300 1.0 249 230 226 0.8 250 0.8 179 0.6 0.6 185 0.5 200 0.6 0.4 0.5 91 150 0.4 0.2 100 0.2 50 0.0 0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q
Slide 17: Akçansa gross debt composition from 2017 9M to 2018 9M
Akçansa gross debt composition from 2017 9M to 2018 9M Shift to longer maturities and more liquidity in 2018 – currently no overnight loans Split By Days to Maturity 2018 9M 6m - 12m 34% >12m 19% 2017 9M 6m - 12m 12% O/N 19% <3m 47% Pro-forma as of 9th October 2018 >12m 42% <3m 68% 8% <3m 50% 6m - 1
Slide 18: Balance Sheet
Balance Sheet Variance Variance Mio TL 30.09.2017 31.12.2017 30.09.2018 2018 vs 2017 Mio TL 30.09.2017 31.12.2017 30.09.2018 2018 vs 2017 Current Assets 736,0 713,0 1.021,2 308,2 Current Liabilities 770,2 715,1 894,8 179,7 Cash & cash equivalents 63,0 52,7 258,1 205,4 Financial Liabilities 486,1 385
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 FY17 vs FO 18 Volume Price Domestic Cement (TL/t) Compared to AC17: Export Cement ($/t) ▪ Construction sector to grow more slowly in Q4 Export Clinker ($/t) ▪ Shift from domestic cement volume to export RMC (TL/m3) ▪ Domestic cement prices above 2017 compensating for cost i
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 • Conversion of 6.500k housing
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 Banu Üçer, Corporate Communication Manager Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr
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 24.6 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 23.5 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 2
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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