Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q3 2015 Earnings Presentation
39 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2015
Slide 1: CIMSA 2015 3rd Quarter Investor Relations Presentation
CIMSA 2015 3rd 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 4.0 billion tons in 2015, reflecting -2,7 % growth YoY (CAGR 7,0 % btw. 2002-2014) 2,6% -2,7% 6,5% 4,4% 8,7% 10,7% 6,0% 7,6% 2,4% 9,9% 7,7% 7,9% 9,7% 4,0 4,1 4,0 3,6 3,8 3,3 2,8 3,0 2,6 2,8 2,2 2,3 1,8 2,0 2002 2003 2004 2005
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is expected to be around 2% in 2015 15% 10% 10% 10% 10% 9% 7% 6% 6% 6% 6% 6% 5% 3% 3% 2% 2% 2% 1% 3% 0% 2% 2% 1% 0% 0% 0% 0% -1% -1% -1% -2% -2% -5% -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 58% of the global consumption, • Steady growth is expected in emerging markets 2014 Global Regional 2015E Global Regional Consumption Consumption 3% 2% 3% 3% 3% 3% China Western Europe (*) 32% 34% Developed Far East (**) 60% North America 58% 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 lower than GDP growth in 2015. 25,0% GDP Growth 22,0% 19,4% Construction Sector Growth 20,0% 18,5% 15,7% Cement Sector Growth 18,3% 15,0% 14,1% 11,5% 13,9% 9,3% 11,2% 10,0% 10,0% 9,4% 6,8% 7,
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 decrease in 2015 as GDP per capita. 12.000 1000 GDP Per Capita ($) 10.822 Cement Consumption Per Capita (kg) 10.444 10.428 10.459 10.390 900 10.003
Slide 11: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area is decreased by 13 % to 50 mn m2, in 2015 Q2. 218 176 176 159 124 123 125 104 106 101 13% 70 58 36 50 46 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014Q2 2015Q2 Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • The total cement consumption decreased by 3% YOY in 2015 Jan-Aug. 50,0 -1% 45,0 -2% 40,0 35,0 -3% -3% 30,0 -4% -4% 25,0 20,0 15,0 -7% 10,0 5,0 0,0 Marmara Aegean Mediterranean Black Sea Central Anatolia East Anatolia South East Total Anatolia 2014 Jan-Aug 2015 Jan-Aug % Chang
Slide 13: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 90 83 76 78 80 73 75 69 72 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 20 43 45 43 43 31 36 25 27 28 10 0 2001 2002 2003 2004 2005 2006
Slide 14: Turkish Cement Market
Turkish Cement Market • 7.4 Mt cement & clinker has been exported from Turkey in Q3 2015. 2014 Jan-Sep 2015 Jan-Sep Total Export 2014: 8.2 mton 2015: 7.4 mton 51% 46% 21% 11% 9% 6% 11% 1% 7% 6% 5% 5% 5% 6% 5% 4% 1% 1% MENA West Africa North America Middle and West Europe South America East Europe CI
Slide 15: Turkish Cement Market
Turkish Cement Market • A cement market with domestic & foreign players; 52 integrated cement plants & 18 grinding stations Main foreign players: • Vicat • Cementir Main domestic players: • Votorantim • Çimsa • As Joint Venture • Oyak • Aşkale players: • Nuh • Batıçim • Akçansa & Heidelberg Source:
Slide 16: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 17% market share Akçansa; Others; 20% 9,5% Çimsa; 7,5% Votorantim; 3% Oyak; 14% Vicat; 5% Cementir; 5% Limak; 10% Sanko; 6% As; 6% Aşkale; 8% Nuh; 6% 7,5 % of the market belongs to CIMSA Source: Sabanci Cement G
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 Q3 2015 2014 Grey clinker production (kton) 3.109 3.316 White clinker production (kton) 847 776 Grey cement & clinker sales (kton) 3.960 3.883 White cement & clinker sales (kton) 964 887 ISIDAÇ-40 (kton) 23 21 RMC sales (km3) 1.646 1.912 15
Slide 22: Operational Facts
Operational Facts • Grey cement & clinker sales of 4,0 Mt, and a white cement&clinker sales of 1,0 Mt in Q3 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 0,2 0,4 4,6 4,9 4,7 0,8 0,9 4,0 4,2 0,9 0,8 0,9 0,8 0,8 0,7 0,8 3,4 3,3 3,7
Slide 23: Operational Facts
Operational Facts • Grey cement average domestic price is 135 TL (Export price: 43$) • White cement average domestic price is 268 TL (Export price: 92$) in 2015 Grey Cement Domestic/Export Average Price Trend 132 130 135 105 111 101 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 1,6 % of the RMC market as of 3Q 2015. Ready Mix Concrete Sales Volumes (M m3) 3,5 2,4 3,0 2,7 2,6 2,3 2,6 1,9 1,6 08 09 10 11 12 13 14 3Q2014 3Q2015 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 West Europe, West Africa and North America in 3Q 2015 2014 Jan-Sep 2015 Jan-Sep Total Export 2014: 0.9 mton 2015: 1.2 mton 39% 39% 25% 26% 13% 13% 9% 7% 9% 5% 5% 7% 0% 4% 0% 0% MENA West Europe West Africa North America East Europe South America CIS
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 199 mn TL in 3Q2015 Key Financial Higlights (TL) Q3-2015 Q3-2014 Paid in capital 135.084.442 135.084.442 Total equity 1.148.000.467 1.085.180.237 Net consolidated sales 865.244.646 824.224.670 Operational consolidated EBITDA (*) 2
Slide 28: Financial Facts
Financial Facts CIMSA’s cumulative consolidated net sales reached to 865 mn TL in 3Q2015 Domestic Sales: 09-14 CAGR: 14% 1094 954 274 865 857 250 824 801 709 239 233 217 181 614 196 228 820 704 618 643 632 584 513 386 Domestic Export Total 2009 2010 2011 2012 2013 2014 3Q14 3Q15 In 2015, 27% of the
Slide 29: Financial Facts
Financial Facts CIMSA domestic cement sales constitutes 76% of the total domestic net sales in 3Q2 015 (In 3Q2014; 74%) 3Q 2015 Domestic Cement & RMC Net Sales 3Q 2014 Domestic Cement & RMC Net Sales Breakdown (mn TL) Breakdown (mn TL) 24% 26% 74% 76% Cement RMC 22
Slide 30: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 283 mn TL in 3Q 2015(3Q 2014: 264 mnTL) 350 35% 31% 300 29% 29% 33% 30% 28%306 25% 26% 25% 25% 283 250 255 25% 236 200 210 20% 201 EBITDA 176 150 176 182 15% EBITDA Margin % 100 10% 50 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 3Q2014 3Q2015 EBITDA M
Slide 31: Financial Facts
Financial Facts Cumulative consolidated net profit is 199 mn TL in 3Q 2015. (3Q2014: 160 mn TL) 302 38 192 199 140 10 12 160 9 123 115 108 104 77 180 189 150 123 115 124 108 104 77 2008 2009 2010 2011 2012 2013 2014 3Q2014 3Q2015 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY in
Slide 32: Financial Facts
Financial Facts Total net debt increased to 189 mn TL as of 3Q 2015 (2014: 56 mn TL) 450 400 349 350 173 300 109 223 250 189 200 24 201 79 150 83 104 258 250 Long Term Borrowings 100 6 27 41 20 186 158 Short Term Borrowings 50 10662 56 87 82 85 Net debt 0 2008 2009 2010 2011 2012 2013 2014 Q3 2015 •
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) 2,15 2,24 17,4 16,6 1,43 1,47 7,1 9,1 6,8 0,91 0,85 1,18 2,6 10,1 0,80 0,77 2,6 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % 200 Dividend Paid Di
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: Eskişehir Plant White Cement Investment
Eskişehir Plant White Cement Investment Following its investment for a new cement plant in Afyon, Eskişehir Plant’s 1st Kiln, which currently produces grey clinker, is planned to be modified to produce both grey and white clinker (convertible) • Eskişehir Plant: currently 1.400 K tonnes grey clinker
Slide 36: CIMSA/About Us: Achievements
CIMSA/About Us Achievements
Slide 37: 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 38: 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 39: 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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