Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2023 Earnings Presentation
19 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Aug 8, 2023
Slide 1: Earnings Presentation Q2 2023
ÇİMSA EARNINGS PRESENTATION Q2 2023 Mustafa Aydın, CFO August 8, 2023
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Çimsa Çimento Sanayi ve Ticaret A.Ş. (“CIMSA”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 3: Disruptive Market Environment and Uncertainty Prevailed in 1H2023
DisruptiveMarket Environment andUncertaintyPrevailedin 1H2023 • Geopolitical challenges • Increasing energy costs • Supply risk • Growing need for sustainable energy sources • Slowdown in global growth; in developed as well as developing countries like China. GLOBAL • Macroeconomic dynamics • Social
Slide 4: Robust 1H2023 Results with Strategic Prioritization
Robust1H2023 ResultswithStrategic Prioritization • Geographic sales mix & profit optimization in domestic and export operations • Full capacity utilization at all plants • Lower energy & fuel prices with optimized procurement & global dynamics • Increasing alternative fuel usage • Optimized working
Slide 5: Strong Domestic Demand Balances Declining Export Demand
Strong Domestic Demand Balances Declining Export Demand • Domestic cement consumption increased by Cement & Clinker Export (mt) 16,7% May YTD, expected to be stable in 2023 Cement & Clinker Domestic Sales (mt) • Increase in Çimsa regions: Cement Production Capacity (mt) - Mediterranean: 20% - Centra
Slide 6: Full Capacity Utilization Continues, Sales Volume Flat YoY
Full Capacity Utilization Continues, Sales Volume FlatYoY Grey Cement & Clinker Sales Volumes (K ton) White Cement & Clinker Sales Volumes (K ton) Domestic Export Domestic Export 1.017 1.047 435 404 922 855 385 349 162 125 50 55 Q2'22 Q2'23 Q2'22 Q2'23 6
Slide 7: Lower Energy and Fuel Prices in H1 2023 Post Record Levels in 2022
Lower Energy and Fuel Prices in H1 2023 Post RecordLevelsin 2022 • Over 50% decline in electricity prices in 1H2023 compared to 2022-end. ENERGY • Petcoke prices are still higher than historical average, despite 45% decrease in 1H2023 compared to 2022-end. FUEL 7
Slide 8: Leading AF Rate and Procurement Optimization Drive EBITDA Margin Growth
LeadingAF Rate and ProcurementOptimizationDrive EBITDA Margin Growth Çimsa Alternative Fuel Usage Alternative fuel usage reached 30% in Q2, 5pp higher YoY - Turkey average : 10% 30% 25% - Global peers: 25% Q2'22 Q2'23 Fuel & Energy (% of Total Cost) Share of fuel & energy in total production cost de
Slide 9: Operational Efficiency and Effective Cash Management Yield Strong Financial Performance
OperationalEfficiencyand Effective Cash Management YieldStrong Financial Performance NET SALES (MTL) EBITDA (MTL) NET INCOME (MTL)* 51% 73% 121% 145% 5.412 1.055 1.204 36% 57% 1.029 3.595 741 3.049 608 2.240 471 545 420 Q2'22 Q2'23 H1'22 H1'23 Q2'22 Q2'23 H1'22 H1'23 Q2'22 Q2'23 H1'22 H1'23 21% 24%
Slide 10: Effective Cash Management Supports Financial Performance
EffectiveCash Management Supports Financial Performance Net Financial Income Net 0,7X 443 272 Debt/EBITDA 218 228 Financial Income from Investments 319 28 60 -67 345 Fx gain from operations -39 -136 NWC/SALES* 15% -18 -155 -82 -166 Fx Loss from Loans 13 month average NWC/ LTM Sales -28 Q2'22 Q2'23 H
Slide 11: Strong Q2 Net Income Growth Supported with Financial Income
Strong Q2 Net Income Growth Supported with Financial Income 11 * Equity Holders, Excluding one off items
Slide 12: Strategic Developments for Growth & Profitability
STRATEGIC DEVELOPMENTS FOR GROWTH & PROFITABILITY
Slide 13: Solar Energy Power Investment in Afyon Plant Continues
Solar Energy Among Turkey’s biggest solar power plant investments Power Investment inAfyon Will support sustainability targets and cost efficiency upon completion Plant Continues Million KwH 3.3 MW Capacity 4.2 Electric Energy 2000 Ton/Year CO Saving 2 2 Million Trees Neutralizing Capacity 13
Slide 14: High Profitable – Value Added Product: Calcium Aluminates Investment on Track
High Profitable –Value Added Product : Calcium AluminatesInvestment on Track 50kton Current Capacity 116 Kton 3rd largest producer in 4% Current Market share 10% Market share the World CAC Sales Volumes (ton) Domestic Export 14.253 16.720 14.476 11.451 2.802 2.244 Q2'22 Q2'23 Additional Capacity Inv
Slide 15: Focus on Increasing Shareholder Value
Focus on Increasing Shareholder Value - Growing dividend - Bonus issue with 600% from internal MTL resources is announced - CMB applications done 400 68 200 2018 0 2019 0 2020 0 2021 2022 2023 - Exsa merger with Sabancı Holding Dividend Paid - CMB approval process in progress - Çimsa to acquire SAHO
Slide 16: Q&A
Q&A
Slide 17: Financial Statement Q2'23
Financial Statement Q2’23 MTL 2023 H1 2022 YE MTL 2023 H1 2022 YE Current Assets 6.752 5.938 Current Liabilities 4.506 4.990 Cash and cash equivalents 1.910 1.603 Borrowings* 2.691 2.796 Trade receivables 2.546 1.869 Trade payables 1.185 1.829 Other receivables 1 1 Derivative financial liabilities 0
Slide 18: Income Statement H1'23
Income Statement H1’23 2023 H1 Income Statement (MTL) 2023 2022 Q2 2023 Q2 2022 Sales 5.412 3.595 3.049 2.240 Cost of sales (-) -4.171 -2.912 -2.232 -1.733 GROSS PROFIT 1.242 683 818 507 General and administrative expense (-) -256 -131 -119 -64 Marketing, selling and distribution expense (-) -14 -6
Slide 19: Cash Flow Statement H1'23
Cash Flow Statement H1’23 MTL 2023 Q2 2022 YE A. CASH FLOWS FROM OPERATING ACTIVITIES 350 152 Profit before taxation 1.402 725 Adjustments to reconcile net profit/loss for the period 316 23 Changes in working capital (1.177) (582) Cash flows from operations 540 166 Payments related to employee benef
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