Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q3 2018 Earnings Presentation
25 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Dec 4, 2018
Slide 1: 2018 Investor Presentation
2018 Investor Presentation December 4, 2018 1
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 5-7 Overview of Çimsa • History, Development and Network 9-11 Cimsa • Operational Results 13-18 • Financial Results 20-24 3
Slide 4: 2018 Market Overview: Turkish Cement Market
2018 Market Overview Turkish Cement Market 4
Slide 5: Turkish Cement Market
Turkish Cement Market Cement consumption growth is correlated with GDP Cement consumption in 2018 decreased by 9,1% and GDP growth was 3.5% 22,0% 19,4% 15,7% 10,0% 9,2% 9,4% 8,4% 11,2% 11,1% 5,3% 9,1% 8,5% 8,5% 4,7% 4,8% 4,6% 7,4% 3,5% 6,9% 6,1% 4,8% 4,6% 5,2% 0,7% 2,1% 3,2% 0,0% 2,1% 0,8% -4,7% -6,
Slide 6: Turkish Cement Market
Turkish Cement Market ➢ Turkey is the biggest cement producer in Europe, with high capacity utilization rates 120,0 98 100,0 94 89 85 78 79 73 75 14 80,0 69 72 13 14 63 12 11 12 15 13 60,0 19 48 8 18 12 40,0 74 64 65 65 68 68 57 58 51 20,0 45 43 43 0,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 7: Turkish Cement Market
Turkish Cement Market ➢ Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity CLINKER CAPACITY Medcem; 4% Sabancı 16% Çimsa has 8 % of the clinker capacity in Turkey Source: Turkish Cement Manufacturers’ Association 7
Slide 8: Overview of Çimsa
Overview of Cimsa_ ENE
Slide 9: Çimsa Cement: History and Development
Çimsa Cement: History and Development 9
Slide 10: Çimsa Network – Domestic
Çimsa Network – Domestic ➢ 5.6 Mt grey clinker capacity , 1.3 Mt white clinker capacity ▪ 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: Çimsa Network - International
Çimsa Network - International ➢ 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
Slide 12: Operational Results
Operational Results 12
Slide 13: Operational Results
Operational Results Decrease in production and sales amount compared with Q3 2017 due to long holiday in August and shrinking demand in September Decrease in ready mix sales due to slowdown in infrastructure projects Q3-17 Q3-18 Change % 9M-17 9M-18 Change % Grey clinker production (kton) 1.355 1.11
Slide 14: Operational Results-White Cement
Operational Results-White Cement White cement & clinker sales of 0.4 Mton in Q3 2018 - 5 % increase in white cement volumes due to increased exports in 9M 2018 - 0.2 Mton white clinker is produced in Eskişehir during 9M 2018, also domestic and export white cement sales has been started - 75% of the
Slide 15: Operational Results-Grey Cement
Operational Results-Grey Cement Grey cement & clinker sales of 1.4 mton in Q3 2018 - Grey cement export volume increased 17% in Q3 2018 compared to Q3 2017, whereas domestic sales volume declined by 23%, resulting in a blended decrease of 20%. - Slowdown more severe in Central Turkey. Grey Cement &
Slide 16: Operational Results
Operational Results Rapid slow down in Q3 in RMX sales, 25% decline in sales volumes Ready Mix Concrete Sales Volumes (M m3) 3,4 2,8 2,4 2,4 2,4 2,3 1,0 0,7 2014 2015 2016 2017 9M-17 9M-18 Q3-17 Q3-18 16
Slide 17: Operational Results
Operational Results Fuel costs continue to soar Petcoke (Mid-Suphur) (CIF $/ton) 118 118 107 107 97 97 99 99 99 97 97 97 87 87 87 87 87 87 83 83 83 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 ➢ Çimsa’s avarage petcoke prices increased 25% in Q3 2018 compared to Q3 2017 in USD terms, le
Slide 18: Operational Results
Operational Results 65% increase in tariffs in 2018 Electricity (TL/Mwh) 371 324 265 243 233 236 228 216 213 210 204 218 205 209 205 202 197 202 227 212 203 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2017 ➢ Average electricity costs increased by 57% to 320 TL/Mwh from 204 TL /Mwh in Q3 201
Slide 19: Financial Results
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Slide 20: Financial Results
Financial Results EBITDA increased 28 % in 9M 2018 compared to the same period in 2017, but declined by 3% in Q3 Key Financial Highlights (MTL) Q3-17 Q3-18 Change% 9M-17 9M-18 Change% Net consolidated sales 424 452 7% 1.054 1.305 24% Consolidated EBITDA (*) 124 121 -3% 272 348 28% Consolidated EBITD
Slide 21: Financial Results
Financial Results EBITDA Margin is 27% in Q3 2018 450 40% 400 35% 30% 30% 350 384 29% 28% 30% 356 27% 27% 352 26% 26% 300 306 25% 348 250 272 20% 200 15% 150 10% 100 121 124 50 5% 0 0% 2014 2015 2016 2017 Q3-17 Q3-18 9M-17 9M-18 EBITDA EBITDA Margin % 21
Slide 22: Financial Results
Financial Results Consolidated net profit excluding income from subsidiary is 73 mn TL in Q3 2018 (Q3 2017: 69 mn TL) 245 246 228 14 21 217 231 14 193 225 214 46 12 181 153 9 171 145 99 72 26 3 69 73 2014 2015 2016 2017 Q3-17 Q3-18 9M-17 9M-18 Net Profit from operations Exsa Equity Pick Up ➢ Limited
Slide 23: Financial Results
Financial Results 1.700 1.434 1.500 1.300 1.173 1.100 900 754 914 827 Short Term Borrowings 700 719 575 Long Term Borrowings 500 550 Net debt 300 153 56 213 212 100 85 20 164 -100 2014 2015 2016 2017 9M-2018 ➢ Net financial debt increased from 1,173 mn TL in 2017 year end to 1,434 mn TL in 9M 2018 d
Slide 24: Financial Results
Financial Results ➢ Çimsa is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earnings per share (TL/per share) 17,4 14,4 1,82 1,82 13,2 1,69 1,58 12,3 1,43 7,5 As of 30.11.2018 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % Dividend Paid (MTL) Dividend
Slide 25: The Future for Çimsa's Business
The Future for Çimsa’s Business Dynamic Portfolio Management ➢ Focusing on profitability and cash flow with dynamic portfolio management of assets in Turkey and abroad ➢ Increased focus on growing FX revenues through the investment in the first production operation abroad: White Cement Grinding Faci
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