Gubre Fabrikalari T.a.s. · BIST:GUBRF
Gubre Fabrikalari T.a.s — Gübretaş — Investor Presentation (April 2016)
27 slides from Gubre Fabrikalari T.a.s's investor presentation, April 2016
Slide 1: Investor Presentation April 2016
INVESTOR PRESENTATION GÜBRETAŞ APRIL 2016 A SUBSIDIARY OF TURKISH AGRICULTURAL CREDIT COOPERATIVES www.gubretas.com.tr
Slide 2: History
HISTORY Ammonia Tank 2016 NPK-1A & 2012 2015 NPK-1B plants launched 2010 2009 ARYA PlantTarkim Protection Phosphoric ortaklığı Acid ETİS 2012 Logistics 2008 RAZI NARLI Petrochemical RAINTRADE Ferry 2008 International 2010 Shipping & Investment Trade ISTANBULLINES Ro-Ro 1993 TACC acquired 2010 Gübret
Slide 3: Shareholder Structure
SHAREHOLDER STRUCTURE The Central Union of Turkish Agricultural Credit 75% 25% Public Shares Cooperatives Gübre Fabrikaları T.A.Ş. Date of Establishment : 25.12.1952 Paid Capital : 334.000.000 TRY Listing : Borsa İstanbul (BIST) Ticker Symbol : GUBRF www.gubretas.com.tr 3
Slide 4: The Central Union of Turkish Agricultural Credit Cooperatives
THE CENTRAL UNION OF TURKISH AGRICULTURAL CREDIT COOPERATIVES Leading agricultural cooperative since 1863 With 7.500 employees and 21 subsidiaries; The leading agricultural cooperative of Turkey, which provides 16 Regional Unions the commodities and services in order to meet all of the requirements
Slide 5: Subsidiaries
SUBSIDIARIES Production of Fertilizer and Marine and Land Logistics Gübretaş’s Share %40 Information Technology Fertilizer Raw Materials Gübretaş’s Share %17 Gübretaş’s Share %48,88 Production of Cleaning and Security Services Ro-Ro Transportation Plant Protection Products Gübretaş’s Share %15 Inter
Slide 6: A global company that provides added-value to its stakeholders
“a global company that provides added-value to its stakeholders…” GÜBRETAŞ - Turkey RAZI PETROCHEMICAL - Iran Fertilizer Production and Sales Fertilizer and Fertilizer Raw Materials’ Production and Sales “With the responsibility of being the pioneer in the sector, we work for the production and proc
Slide 7: Turkish Fertilizer Outlook
TURKISH FERTILIZER OUTLOOK MAIN LACK OF NATURAL GROWTH DRIVERS RESOURCES POTENTIAL Fertilizer Prices Lack of main nutrients Fertilizer (nutrient based) use per Agricultural Product Prices hectare of arable land for some Natural Gas countries General Financial Conditions Phosphate (P) Turkey: 97 kg F
Slide 8: World Fertilizer Prices
WORLD FERTILIZER PRICES USD/TON (FOB) PHOSPHORIC ACID (North Africa) DAP (Tunisia) PHOSPHATE ROCK (India) AMMONIA (Middle East) 800 1200 700 1000 600 800 500 600 400 300 400 200 200 100 0 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 800 700 600 500 400 UREA (Black Sea) 300 AN (Black
Slide 9: Market Overview
MARKET OVERVIEW TURKISH FERTILIZER SECTOR (1.000 Tons) 7000 5.814 5.900 6000 5.508 5.384 5.472 5.148 5.263 4.968 4.766 5000 4.129 4.180 4000 3.750 3.661 3.674 3.400 3.577 3.548 3.114 3.007 2.961 3000 3.167 2.878 2.934 2.950 2.736 2000 2.377 2.177 2.242 2.078 2.086 1000 543 550 499 275 208 221 316 18
Slide 10: Operations in Turkey
OPERATIONS IN TURKEY TEKİRDAĞ YARIMCA SAMSUN ANKARA İZMİR DİYARBAKIR ANTALYA İSKENDERUN 2 PRODUCTION FACILITY 2 PORTS 5 LOGISTICS CENTERS 7 REGIONAL OFFICES 2.915 SALES POINTS 400.000 TONS WAREHOUSE CAPACITY www.gubretas.com.tr 10
Slide 11: Products
PRODUCTS “industry leader with a large variety of products” 370 Type of Products SOLID POWDER LIQUID PLANT PROTECTION ORNAMENT AND GARDEN PLANTS www.gubretas.com.tr 11
Slide 12: Special Products
SPECIAL PRODUCTS “high added-value” SPECIAL FERTILIZERS PLANT 15.25.10 “YEŞİL ALTIN” PISTACHIO Gübretaş is way ahead of its industry with 370 types of 23.12.9 “ALTIN ÇİÇEK” SUNFLOWER products that are consumed to cultivate the agricultural 23.12.9 “ALTIN ÇİÇEK-S” SUNFLOWER crops in Turkey. 10.25.5 “
Slide 13: Gübretaş Bahçem
“GÜBRETAŞ BAHÇEM” “we are also in the colours of city” Gübretaş carried its 64-year experience in conventional plant nutrition activities to ornamental plants. Products developed for metropolitan area customers were presented to the market under “Gübretaş Bahçem” brand. A variety of products for sta
Slide 14: Production Flow Chart
PRODUCTION FLOW CHART YARIMCA - KOCAELİ İZMİR MAIN INPUTS MAIN PRODUCTS TSP PHOSPHORIC ACID 20.20.0 PHOSPHATE ROCK 20.20.0.ZN UREA 15.15.15 AMMONIA 15.15.15.ZN AMMONIUM SULPHATE 13.24.12 SULPHURIC ACID 13.25.5 POTASSIUM 23.12.9 SOLID FERTILIZER LIQUID-POWDER PRODUCTION TSP NPK1A NPK1B NPK2 FERTILIZE
Slide 15: New Investments at Yarımca Facility
NEW INVESTMENTS AT YARIMCA FACILITY “eco-friendly and modern infrastructure for production” Completed Investments Advantages NPK 1A and 1B Plants Cost Advantage 500.000 Tons/Year Capacity Capacity Increase Ongoing Investments Eco-friendly Production Ammonia Tank NPK & DAP Production 25.000 Tons Capa
Slide 16: Market Share
MARKET SHARE “pioneer and leader” SOLID FERTILIZER SALES (1.000 Tons) 1.950 1.728 1.641 1.647 1.488 1.523 1.402 1.279 1.236 MARKET SHARE 1.103 32% 33% 31% 30% 27% 28% 28% 28% 25% 23% GÜBRETAŞ SALES 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E www.gubretas.com.tr 16
Slide 17: Production and C.U.R.
PRODUCTION AND C.U.R. SOLID FERTILIZER PRODUCTION (1.000 Tons) 688 683 515 521 507 523 501 482 461 C.U.R. 78% 78% 343 76% 80% 77% 79% 79% 74% 73% 53% GÜBRETAŞ PRODUCTION 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E www.gubretas.com.tr 17
Slide 18: Razi Petrochemical Co.
RAZI PETROCHEMICAL CO. “from local leadership to being a global player” The consortium led by Gübretaş acquired it from Iranian Privatization Organization in 2008. This acquisition left Gübretaş’s mark in history as the biggest foreign investment by a Turkish company. Products Ammonia, Urea, Sulphur
Slide 19: Razi Production Capacity
Razi Petrochemical Co. PRODUCTION CAPACITY PLANT NUMBER CAPACITY (Ton) OF PLANTS AMMONIA 3 1.336.000 UREA 1 594.000 DAP 2 450.000 SULPHURIC ACID 2 627.000 SULPHUR 1 508.000 PHOSPHORIC ACID (ARYA) 1 126.000 TOTAL 10 3.641.000 www.gubretas.com.tr 19
Slide 20: Razi Production Chart
Razi Petrochemical Co. PRODUCTION CHART “fully integrated production” SWEET GAS AMMONIA UREA SULPHUR SOUR GAS SULPHURIC ACID PHOSPHATE PHOSPHORIC DAP ROCK (ARYA) ACID (ARYA) www.gubretas.com.tr 20
Slide 21: Razi Production - Sales
Razi Petrochemical Co. PRODUCTION - SALES PRODUCTION (1.000 Tons) SALES (1.000 Tons) 2500 2.152 1.999 2000 1.816 1.771 1.633 1.713 1.548 1.581 1500 1.336 1.632 1.487 1.460 1000 1.315 1.251 1.246 1.326 1.153 1.150 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016E * Being a fully integrated facility
Slide 22: Razi 2016 Objectives
Razi Petrochemical Co. 2016 OBJECTIVES “aiming for records in production” PRODUCTION ESTIMATES (TON) SALES ESTIMATES (TON) PRODUCT C.U.R. 2016E PRODUCT 2016E AMMONIA 71 % 950.000 AMMONIA 677.600 UREA 67 % 400.000 UREA 400.000 SULPHUR 62 % 315.000 SULPHUR 208.920 SULPHURIC ACID 50 % 312.000 SULPHURIC
Slide 23: Razi 2016 Financial Objectives
Razi Petrochemical Co. 2016 FINANCIAL OBJECTIVES FINANCIAL ESTIMATES (Million TRY) 2016E Sales Revenues 1.693 EBITDA 452 Net Income 434 MARGINS 2016E EBITDA Margin 27 % Net Income Margin 26 % INVESTMENTS (Million USD) 2016E Capex 62 www.gubretas.com.tr 23
Slide 24: 2016 Consolidated Financial Objectives
2016 CONSOLIDATED FINANCIAL OBJECTIVES CONSOLIDATED INCOME STATEMENT (Million TRY) 2016E Sales Revenues 4.044 Gross Profit 953 Operating Profit 545 EBITDA 626 Adjusted EBITDA 395 Net Income 456 Adjusted Net Income 234 MARGINS 2016E EBITDA Margin 15 % Net Income Margin 11 % Adjusted EBITDA Margin 10
Slide 25: We grow with change and transformation
“we grow with change and transformation” PERFORMANCE- NEW PRODUCT BASED MANAGEMENT RANGE HR processes are re-engineered An exclusivity agreement was signed with in order to establish a our affiliate Tarkim for plant protection performance-based HR products. Gübretaş entered to ornamental infrastruct
Slide 26: Our advantages on the road to new targets
“our advantages on the road to new targets” SUPPLY CHAIN VAT YARIMCA LIFTING OF IRAN OPTIMIZATION EFFECT FACILITIES SANCTIONS With the optimization of The VAT exception in The completion of the With the lifting of the sanctions; supply chain processes, from fertilizers will expand the ammonia tank c
Slide 27: Thank You
THANK YOU INVESTOR RELATIONS Phone : +90 216 468 50 50 Fax : +90 216 407 10 11 Web Site : www.gubretas.com.tr E-mail : ir@gubretas.com.tr Address : Nida Kule, Göztepe Kavşağı 34732 Kadıköy İstanbul DISCLAIMER This presentation may contain forward-looking statements within the meaning of securities l