Polisan Holding As · BIST:POLHO
Polisan Holding As — Investor Presentation (March 2018)
32 slides from Polisan Holding As's investor presentation, March 2018
Slide 1: Polisan Holding March 2018
Polisan HOLDING March 2018
Slide 2: Notice
NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially due to factors discussed in Polisan Holding’s prospectus filed
Slide 3: Polisan Holding: Grows via new partnerships and business lines
POLİSAN HOLDİNG: GROWS VIA NEW PARTNERSHIPS AND BUSINESS LINES * CHEMICAL PORT PAINT AGRICULTURE REAL ESTATE ACTIVITIES OPERATIONS 93% 100% 100% FOREIGN 50% 40% PARTNERSHIP 80% FOREIGN SUBSIDIARY 100% 100% 3 * The ratios in this graphic show Polisan Holding’s direct and indirect share in the related
Slide 4: Polisan Holding Strategy: To maximize shareholder value
POLİSAN HOLDİNG STRATEGY: TO MAXIMIZE SHAREHOLDER VALUE Sustaining Profitable Growth of Existing Businesses Maximizing Intra-Group Synergies Forming Strategic Alliances to Expand in High Margin, New Business Lines Exploring New Markets and Becoming a Global Brand through Polisan’s Innovative Product
Slide 5: Executing strategic priorities since IPO
POLİSAN HOLDİNG: EXECUTING STRATEGIC PRIORITIES SINCE IPO CAGR 2012 - 2017 1,501 Revenues: 21.2% 1,092 1,022 869 657 574 15.5% 15.0% 14.2% 13.2% 13.6% 13.3% EBITDA: 22.9% 2012 2013 2014 2015 2016 2017 Ø IPO Ø First Ø 1. Real Estate Ø 2. Real Estate Ø Strategic Ø Restructuring International Project P
Slide 6: Strong financial results in 2017
POLİSAN HOLDİNG: STRONG FINANCIAL RESULTS IN 2017 Combined Revenues: TRY1,500.7 mln Consolidated Revenues: TRY749.6 mln Other Chemical Other 8% Operations -1% 41% Port 19% Paint Chemical 42% Port Operations 9% 82% Combined EBITDA: TRY213.3 mln (EBITDA Margin: 14.2%) Consolidated EBITDA: TRY111.4 mln
Slide 7: Turkey paint industry: 5th largest market in Europe
TURKEY PAINT INDUSTRY: 5. LARGEST MARKET IN EUROPE TURKEY PAINT INDUSTRY POLİSAN KANSAİ BOYA With ~$2.2 billion, Decorative Segment, which has Growing Production Over the Years Europe’s 5th largest market ~60% share, drives growth 3% 2%1%1% 7% 6% 5% 4% 60% 11% 1985 1986 1987 1988 1989 1990 1991 1992
Slide 8: Kansai Boya's differentiation strategy: Excellence
POLİSAN KANSAİ BOYA’S DIFFERENTIATION STRATEGY: EXCELLENCE 1 PRODUCT 2 SALES 3 SERVICE 4 QUALITY § Introduced Home § Turkey’s first water based § World’s first exterior § Global brand awareness Cosmetics concept to the new generation mix system insulation insurance with quality certificates World §
Slide 9: Strategy: Continue leadership with profitable growth
STRATEGY: CONTINUE LEADERSHIP WITH PROFITABLE GROWTH There are 18 million households in Turkey to be renovated and isolated Young & growing Obligation to isolate Renovation and new population exterior walls buildings Insulation Revenues Auxiliary Products Revenues INDUSTRIAL 2008-2017 CAGR: 44% FURN
Slide 10: Future: Reinforcing Polisan Boya's undisputed leadership
FUTURE: REINFORCING POLİSAN BOYA’S UNDISPUTED LEADERSHIP 50% PARTNERSHIP WITH KANSAI PAINT NEW PRODUCTION AND WAREHOUSE FACILITY Ø Kansai Paint’s main products are automotive, industrial, Ø ~€45 mln investment (excluding land) to turn Polisan Kansai decorative, protective, and auto refinish coatings
Slide 11: Turkey seaborne trade: 5th in Europe
TURKEY SEABORNE TRADE: 5th IN EUROPE TURKEY OUTPACED THE EU PORTS WITH 76% GROWTH IN 10 YEARS 600.000 500.000 430.201 400.000 300.000 244.001 200.000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Netherlands UK Italy Spain Turkey Germany CARGO HANDLED (2006-2016): 23% -18% -8% 23% 1 76% -2%
Slide 12: Turkey seaborne trade: Marmara handles the foremost cargo
TURKEY SEABORNE TRADE: MARMARA HANDLES THE FOREMOST CARGO CARGO HANDLED IN TURKEY IN 2017 TOTALED 471 MILLION TONS CARGO TYPES Bulk Vehicle Liquid 2% Container 33% 8% 23% 39% Black Sea Marmara General Dry Bulk Cargo 27% 15% 16% REGIMES Aegean Transit 13% Cabotage 13% 37% Mediterranean Foreign Trade
Slide 13: Kocaeli Port: Pioneer in Turkey and among top 10 in EU
KOCAELI PORT: PIONEER IN TURKEY AND AMONG TOP 1O IN EU KOCAELİ PORT IS TURKEY’S STRATEGIC GATEWAY LOCATED WHERE 45% OF TURKEY’S GDP IS GENERATED 2. IN TOTAL CARGO HANDLED Ø Among EU’s 10 Major Ports Ø 1st in Foreign Trade (Import/Export) Ø 1st in Cargo Handled (Turkey’s total) 471 mln ton/2017 2017
Slide 14: Poliport: Leading independent chemical storage terminal 2017
POLIPORT: LEADING INDEPENDENT CHEMICAL STORAGE TERMINAL 2017 REVENUE SHARE § Handling Turkey’s 3. export item; Chemicals § Reputable clientele since 1990‘s BULK LIQUID § 237,000 m3 capacity STORAGE 59% § 165 tanks (size: 100 m3 - 6,200 m3) SERVICES § Terminal Capacity: 2.5 million tons § Jetty: 250
Slide 15: Poliport: Poised for profitable growth
POLIPORT: POISED FOR PROFITABLE GROWTH TEM highway 3 Railway Warehouse 1 Bulk Liquid Storage 2 3 Dry Bulk and General Cargo Loading & Bulk Liquid Unloading Loading & Unloading KEY FEATURES OPPORTUNITIES Ø Services on a 160,000 m2 land Ø New business opportunities with multinational Ø Terminal and Ge
Slide 16: Chemical activities: Expanding internationally
CHEMICAL ACTIVITIES: EXPANDING INTERNATIONALLY... TURKEY FOREIGN INTERNATIONAL PARTNERSHIP INVESTMENT POLISAN KİMYA POLİSAN YAPI ROHM & HAAS POLİSAN POLİSAN (Chemicals) KİMYASALLARI (DOW) HELLAS MAROC SA (Construction Chemicals) § Formaldehyde and resins § Marketing and sales of: § Polisan Kimya is
Slide 17: Polisan Kimya: One of Turkey's leading producers
POLİSAN KİMYA: ONE OF TURKEY’S LEADING PRODUCERS PRODUCTS REVENUE SHARE* § 1st formaldehyde resin producer in Turkey to be used in production (wood particleboard, paper impregnation, MDF, FORMALDEHYDE plywood), and insulation (glass wool, rock wool) 56% § Turkey is ranked the 5 in the world in wood
Slide 18: Polisan Hellas: PET business in Greece
POLİSAN HELLAS: PET BUSINESS IN GREECE TRANSACTION HIGHLIGHTS UTILIZING LOGISTIC SYNERGIES Ø Polisan Hellas bought 100% of the assets of Artenius Ø Facility established on a 75,000 m2 land with all Hellas in Greece required infrastructure and staff Ø Polisan Hellas is being controlled by Polisan Hol
Slide 19: Polisan Holding's properties: ~TRY1,104 million
POLİSAN HOLDİNG’S PROPERTIES: ~TRY1,104 MILLION ONGOING PROJECTS PRODUCTION FACILITIES OTHER PROPERTIES Z OFFICE PENDIK POLIPORT POLISAN LANDS & REAL ESTATES 26 shops, 77 offices 178,720 m2 land 154,672 m2 90,142 m2 Partially available to invest TRY55 mln*** TRY212 mln TRY418 mln* TRY161 mln TRY258
Slide 20: Polisan Tarim: Trial studies continue
POLİSAN TARIM: TRIAL STUDIES CONTINUE WALNUT OLIVE STEVIA ü Cooperation with Atatürk ü On 4.4 million square ü On 2.5 million square University, Faculty of meter land in Balıkesir meter land in Karacasu Agriculture ü Development of a 100% native variety including high useful glycoside BUSINESS LINE
Slide 21: Strong combined financials in 2017
POLİSAN HOLDİNG: STRONG COMBINED FINANCIALS IN 2017 2016 2017 1,500.7 SHORT & MID-TERM GROWTH DRIVERS: ü Synergies yet to be derived through Kansai Paint (among top 10 global paint manufacturer) 1,092.3 Proceeds from partnership sale of Polisan Boya shares ü New paint facility to triple capacity and
Slide 22: Robust growth on all business lines
POLİSAN HOLDİNG: ROBUST GROWTH ON ALL BUSINESS LINES Annual Poliport Revenue Growth 50.2% 47.0% 48.1% 60,0% 42.8% 50,0% ü Poliport’s investments to increase capacity continue 40,0% 30,0% ü The contraction in dry cargo handled in the first half of the 33.4 33.5 37.1 35.7 20,0% 10,0% 17.3% year, chang
Slide 23: Record consolidated revenue growth in 2017
POLİSAN HOLDİNG: RECORD CONS. REVENUE GROWTH IN 2017 CONSOLIDATED (TRY mln) REVENUE EBITDA & EBITDA MARGIN NET INCOME* CAPEX 59% 30% 749.6 482.8 111.4 85.3 83.0 85.7 433.9 470.3 66.2 436.8 76.7 120% 15.3% 18.2% 42.2 14.9% 46.0 101.1 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 § 59.4%
Slide 24: 2017 cash position
POLİSAN HOLDİNG: 2017 CASH POSITION STRONG BALANCE SHEET TRY mln* - 2017 Balance Sheet (TRY mln) 2016 2017 TL FX Cash & Cash Equivalents 91.2 19.0 59% Current Assets 363.6 416.0 Cash 41% 19.0 Non-Current Assets 1,366.8 1,566.2 TOTAL ASSETS 1,730.4 1,982.2 Short Term Debt 112.7 200.0 21% Long Term De
Slide 25: 2017 results and 2018 guidance
POLİSAN HOLDİNG: 2017 RESULTS AND 2018 GUIDANCE 2017 ACTUAL 2018 TARGETS 2018 GUIDANCE TRY750 mln Annual 15% Poliport: TRY140 mln Poliport: 10% - 15% growth Revenue Polisan Kimya:TRY300 mln Polisan Kimya: 15% compared to Polisan Hellas: 10% Growth Polisan Hellas: TRY318 mln 2017 Polisan Kansai Boya*
Slide 26: Poised for further growth
POLİSAN HOLDİNG: POISED FOR FURTHER GROWTH PAINT PORT CHEMICAL REAL ESTATE AGRICULTURE OPERATIONS ACTIVITIES Revenue Revenue Revenue Z Office Walnut CAGR: 12.9% CAGR: 24.2% CAGR: 33.5% Project: plantation on Completed in 4.4 mln m2 EBITDA CAGR: EBITDA CAGR: EBITDA CAGR: 2014 land 15.4% 27.5% 25.6% O
Slide 27: Back up
Polisan HOLDING
Slide 28: Board of Directors
POLİSAN HOLDİNG: BOARD OF DIRECTORS Bundesaufbau Gymnasium University of Boston ,USA Production Deutsche High School Wirtschafts Universität (BSc), Engineer (BSc) and Mechanic Engineer Bosphorus University, Industrial Engineer (BSc) Austria (MSc) Board member of Polisan Holding, Polisan Kimya, Vice
Slide 29: Executive Committee
POLİSAN HOLDİNG: EXECUTIVE COMMITTEE University of Istanbul, Faculty of Law Saint Joseph High School At Polisan Holding since 1976 University of Istanbul, Chemical Engineer (BSc) Polisan Holding CEO since 2005 University of Brussels, Petrochemicals (MSc) Executive Committee member of Polisan Holding
Slide 30: Milestones
POLİSAN HOLDİNG: MILESTONES 2017 Polisan Boya EPD Certificate 2016 2015 50% Partnership 2014 Pendik Project 2013 Z Office Project Launch of Polisan POS 2012 Loyalty Program Introduced «Home 2011 Cosmetics» concept globally 2009 Production of concrete 2008 additives and AdBlue© 2006 Launch of Mix Cen
Slide 31: Social responsibility projects and sponsorships
SOCIAL RESPONSIBILITY PROJECTS AND SPONSORSHIPS WOMEN YOUTH ENVIRONMENT/ART Ø EVERY VOICE, ONE BREATH – Ø POLİSAN SCHOOLS Ø 100,000 trees 2015 Ø M. Emin Bitlis Primary School Ø International İstanbul Biennial Ø Two Projects realized Ø Polisan Secondary School Official Sponsorship Ø Has been granted
Slide 32: Thank you
THANK YOU Telephone 0 216 5785600 Fax 0 216 5737792 yatirimciiliskileri@polisanholding.com.tr E-mail investorrelations@polisanholding.com.tr www.polisanholding.com.tr