Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2015 Earnings Presentation
38 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2015
Slide 1: CIMSA 2015 1st Quarter Investor Relations Presentation
CIMSA 2015 1st Quarter Investor Relations 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
Slide 3: Agenda
Agenda 2015 Market Overview Global Cement Market...................... Page 1-3 Turkish Cement Market.................... Page 4-11 CIMSA/ About Us Operational Facts........................... Page 12 -19 Financial Facts................................ Page 20-27 Achievements....................
Slide 4: 2015 Market Overview: Global Cement Market
2015 Market Overview Global Cement Market
Slide 5: Global Cement Market
Global Cement Market • Global consumption volume is expected to be around 4.2 billion tons in 2015, reflecting 2,8 % growth YoY (CAGR 6,9 % btw. 2002-2015E) 2,5% 2,8% 5,3% 6,0% 8,3% 10,4% 6,0% 7,6% 2,4% 9,9% 7,7% 9,7% 7,9% 4,0 4,1 4,2 3,6 3,8 3,3 2,8 2,8 3,0 2,3 2,6 2,0 2,2 1,8 2002 2003 2004 2005 2
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is expected to be around 4% in 2015 15% 10% 10% 10% 10% 9% 7% 6% 6% 7% 6% 6% 4% 5% 2% 3% 2% 2% 2% 3% 2% 0% 2% 2% 2% 1% 0% 0% -1% 0% 0% -2% -5% -3% -4% -10% -9% -15% Developed Countries* Rest of the World -ex China -20% -17% *
Slide 7: Global Cement Market
Global Cement Market • China’s consumption is nearly 60% of the global consumption, • Steady growth is expected in emerging markets 2013 Global Regional 2014E Global Regional Consumption Consumption 3% 2% 2% 3% 3% 3% China Western Europe(*) 32% Developed Far East (**) 32% 59% North America 60% Rest
Slide 8: 2015 Market Overview: Turkish Cement Market
2015 Market Overview Turkish Cement Market
Slide 9: Turkish Cement Market
Turkish Cement Market • Cement sector growth is correlated with GDP, however sector growth is expected to be slightly lower than GDP growth in 2015. 25,0% 22,0% 19,4% 20,0% 15,7% 18,5% 18,3% 15,0% 14,1% 11,5% 13,9% 9,3% 11,2% 10,0% 10,0% 9,4% 6,8% 6,2% 7,8% 5,7% 9,2% 5,3% 9,1% 8,4% 4,7% 8,8% 2,1% 5,
Slide 10: Turkish Cement Market
Turkish Cement Market • There is a positive correlation between GDP per capita and cement consumption • The cement consumption per capita is expected to decreasing in 2015 as GDP per capita. 12.000 1000 10.807 10.444 10.428 10.459 10.404 900 10.003 823 10.000 9.247 8.561 836 840 800 764 770 9.296 7.
Slide 11: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area is increased by 24 % to 218 mn m2, in 2014. 218 175 176 159 124 123 125 104 106 101 70 36 46 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • The total cement consumption rised by 2% in 2014, mainly in Marmara, Mediterranean & Black Sea 70 60 7% 50 5% 40 2% 2% 30 -2% 20 -4% -6% 10 0 Marmara Aegean Mediterranean Black Sea Central Anatolia East Anatolia South East Total Anatolia 2013 2014 % Change * Non-members data
Slide 13: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 90 85 76 77,7 80 73 75 72 69 70 63 12 11 10 19 14 13 60 20 49 51 50 46 15 42 41 43 8 40 7 40 11 11 10 10 64 65 64 30 9 56 58 51 43 45 43 43 20 36 27 28 31 25 10 0 2001 2002 2003 2004 2005 20
Slide 14: Turkish Cement Market
Turkish Cement Market • 2.6 Mt cement & clinker has been exported from Turkey in Q1 2015. 2014 2015 Total Export 2014: 2.4 mton 2015: 2.6 mton 54% 49% 21% 13% 8% 7% 8% 5% 9% 3% 6% 0% 5% 4% 3% 3% 1% 0% MENA West Africa Central and South America Western Europe North America Eastern Europe CIS Other So
Slide 15: Turkish Cement Market
Turkish Cement Market • A cement market with domestic & foreign players; 50 integrated cement plants & 19 grinding stations Main foreign players: • Vicat • Cementir • Votorantim Main domestic players: Joint Venture • Çimsa• As players: • Oyak • Aşkale • Akçansa & Heidelberg Source: TÇMB • Nuh • Batı
Slide 16: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 17% market share Others 19% Akçansa 9.5% Çimsa 7.5% Votorantim 3% Oyak 14% Vicat 5% Cementir 5% Sanko 6% Limak 10% As 6% Nuh 6% Aşkale 8% 7,5 % of the market belongs to CIMSA Source: Sabanci Cement Group, TÇMB,
Slide 17: CIMSA/About Us: Operational Facts
CIMSA/About Us Operational Facts
Slide 18: Operational Facts
Operational Facts • 5,5 Mt clinker capacity (including 1,1 Mt of white clinker) 12
Slide 19: Operational Facts
Operational Facts • 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon • 1 grinding station in Ankara, • 2 Cement packing terminals in Marmara and Malatya Marmara Eskişehir Ankara Afyon Kayseri Malatya Denizli Niğde Mersin Antalya 2 13
Slide 20: Operational Facts
Operational Facts • One of the first top three white cement player • An international cement manufacturer with its terminals all around the world CIMSA has international terminals in Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Famagusta (TRNC), Constanta (Romania) and Novo
Slide 21: Operational Facts
Operational Facts Key Operational Figures in Q1 2015 2014 Grey clinker production (kton) 1.024 1.138 White clinker production (kton) 248 204 ISIDAÇ-40 (kton) 7 7 Grey cement & clinker sales (kton) 988 1.079 White cement & clinker sales (kton) 291 246 RMC sales (km3) 392 579 15
Slide 22: Operational Facts
Operational Facts • Grey cement & clinker sales of 1 Mt, and a white cement&clinker sales of 0,3 Mt in Q1 2015 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) 0,6 0,5 0,3 0,5 0,5 0,9 1,2 4,6 4,9 4,7 0,9 4,0 4,2 0,9 0,9 0,8 0,8 0,8 3,4 3,3 0,8 0,0 0,2 0,9 0,8 0,2 0,
Slide 23: Operational Facts
Operational Facts • Grey cement average domestic price is 136 TL (Export price: 44$) • White cement average domestic price is 255 TL (Export price: 45$) in 2015 Grey Cement Domestic/Export Average Price Trend 132 136 111 120 101 105 85 80 88 Domestic Prices TL/t 71 Export prices $/t_FOB 50 49 48 50
Slide 24: Operational Facts
Operational Facts • CIMSA is assumed to serve around 0,4 % of the RMC market as of 1Q 2015. Ready Mix Concrete Sales Volumes (M m3) 3,5 2,4 3,0 2,7 2,6 2,3 2,6 0,6 0,4 08 09 10 11 12 13 14 1Q2014 1Q2015 There are 580 players & 1040 plants in the market, CIMSA serves with 27 RMC plants CIMSA has been
Slide 25: Operational Facts
Operational Facts • CIMSA increased its exports to Western Europe, West Africa and North America in 2015 Q1 2014 2015 Total Export 2013: 0.2 mton 2014: 0.5 mton 50% 33% 24% 26% 23% 10% 8% 3% 8% 1% 0% 3% 6% 4% 0% 0% MENA Western Europe West Africa North America South America Eastern Europe CIS Other
Slide 26: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 27: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated profit reached to 42.7 mn TL in 1Q2015 Key Financial Higlights (TL) Q1-2015 Q1-2014 Paid in capital 135.084.442 135.084.442 Total equity 984.140.282 1.006.720.368 Net consolidated sales 234.968.311 225.464.479 Operational consolidated EBITDA (*) 59
Slide 28: Financial Facts
Financial Facts CIMSA’s cumulative consolidated net sales reached to 1.094 mn TL in 2014 Domestic Sales: 1094 09-14 CAGR: 16% 954 274 857 250 801 709 239 217 614 196 228 820 704 584 618 225 235 513 386 59 107 Domestic 166 128 Export Total 2009 2010 2011 2012 2013 2014 1Q14 1Q15 In 2014, 25% of the t
Slide 29: Financial Facts
Financial Facts CIMSA cement sales constitutes 71% of the total domestic net sales in 2014 (In 2013; 70%) 1Q 2015 Cement & RMC Net Sales Breakdown 1Q 2014 Cement & RMC Net Sales Breakdown (mn TL) (mn TL) 29% 30% 70% 71% Cement RMC 22
Slide 30: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 306 mn TL in 2014 (2013: 236 mn TL) 350 32% 29% 29% 28% 25% 26% 300 26% 25% 27% 25% 306 25% 250 22% 236 200 210 17% 201 EBITDA 176 150 176 182 12% EBITDA Margin % 100 7% 50 59 59 2% 0 -3% 2008 2009 2010 2011 2012 2013 2014 1Q2014 1Q2015 EBITDA Margin
Slide 31: Financial Facts
Financial Facts Cumulative consolidated net profit is 43 mn TL in 1Q 2015. (2014: 36 mn TL) 302 38 192 140 12 123 115 108 104 20% 77 180 123 115 124 36 43 108 104 77 3 4 33 39 2008 2009 2010 2011 2012 2013 2014 1Q2014 1Q2015 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY increas
Slide 32: Financial Facts
Financial Facts Total net debt increased to 193 mn TL as of 1Q 2015 (2014: 56 mn TL) 400 349 350 109 300 223 193 250 200 62 24 201 79 150 83 104 258 100 6 27 41 20 Long Term Borrowings 186 180 158 Short Term Borrowings 50 10662 87 85 56 82 Net debt 0 2008 2009 2010 2011 2012 2013 2014 Q1 2015 Total
Slide 33: Financial Facts
Financial Facts CIMSA is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earning per share (TL/per share) 17,4 2,15 2,24 16,0 7,1 9,1 1,43 6,8 2,6 0,85 10,1 0,80 0,77 0,91 2,6 0,32 0,26 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % 2.351 Dividend Paid
Slide 34: Afyon Çimento Investment
Afyon Çimento Investment Afyon’s current production plant which is one of the oldest in the country, will be replaced with a new facility with triple capacity of 1.5mn tons • Ownership of Afyon Çimento: 51% Çimsa, 49% listed in ISE • Investment Amount: 165 mio USD • Capacity: 500 K tonnes will be re
Slide 35: CIMSA/About Us: Achievements
CIMSA/About Us Achievements
Slide 36: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Cement Sustainability Initiative CSI represents about one third of global cement production The Cement Sustainability Initiative (CSI) is a global effort by 25 leading cement producers, with operations in m
Slide 37: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Environmental Achievements Çimsa Kayseri Plant was selected as the most Environmentally Friendly industial plant in Turkey by Turkish Ministry of Enviroment and Urban Planning. Çimsa Tece, Aksaray , Misis v
Slide 38: Achievements
Achievements Mersin Waste Heat Recovery System - System definition : Electricity Production from waste heat and gases in Mersin. - Benefits : Decreasing carbon release to the air and decreasing the heat of released carbon to the air. - Net Electricity Production : 46.5 million KWh (2014) - Annual Ca
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