Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Investor Day (December 2024)
25 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's investor day presentation, Dec 24, 2024
Slide 1: Analyst & Investor Day
Analyst & Investor Day December 24, 2024
Slide 2: A traditional cement player, transforming to a global & diversified building materials company
A traditional cement player, transforming to a global & diversified building materials company Germany [Hamburg] [Munich] Republic of Ireland Italy [Ballyconnell] [Trieste] United States Grey Clinker: 1.2 mt [Houston] Türkiye Spain [Mersin] White Grinding : [Bunol] 300 kt [Eskişehir] White Clinker:
Slide 3: Strategic Roadmap: How We Planned The Transformation?
Strategic Roadmap: How We Planned The Transformation? Grey to Green, Local to Global, Cement to Building Materials Value Maximisation Cost Optimization Network Optimization; ▪ q Increase in Alternative Fuel Usage Asset/Carbon/Energy Optimization Close Proximity to Customers in Export Markets; New Su
Slide 4: Strategic Initiatives: What have we done so far?
Strategic Initiatives: What have we done so far? Completed Completed Completed Completed Completed Completed Completed DOMESTIC SABANCI CALCIUM BUÑOL PLANT AFYON SOLAR BUNOL SOLAR MANNOK NETWORK TECHNOLOGY ALUMINATE ACQUISITION POWER PLANT POWER PLANT ACQUISITION OPTIMISATION CENTER CEMENT • Kayseri
Slide 5: Strategic Initiatives: What's on the road?
Strategic Initiatives: What’s on the road? Q1 2025 Q2 2025 Q4 2025 H1 2026 ESKİŞEHİR SOLAR US GREY CEMENT GRINDING CAC CAPACITY INCREASE IN ESKİŞEHİR WHR INVESTMENT POWER PLANT PLANT MERSIN • Whr capacity 5.500 kWp, 40.000 • Solar power capacity 14,2 MW, 20.000 • 700 kt grey cement capacity. MWh ann
Slide 6: As a result…
As a result… EBITDA (USDmn) ~155* 142 102 84 66 55 2019 2020 2021 2022 2023 LTM Revenue ~$300m ~$750m Leverage** 4,2x 0.5x * The figure does not include Mannok contribution. 6 ** Before Mannok acquisition.
Slide 7: …now in the Great Britain & Island of Ireland: Mannok acquisition
…now in the Great Britain & Island of Ireland: Mannok acquisition Mannok; integrated manufacturer of LTM Sep’24 FINANCIAL FIGURES MANNOK cement, thermal building insulation, building materials and plastic food packaging products in GB, ROI & NI. EBITDA Headquarter # of Employee 258 Margin: 22% Repub
Slide 8: Strategy on track! From cement to building materials
Strategy on track! “from cement to building materials” Cement Precast Aircrete Thermal Blocks Roof Tiles High-quality bagged and bulk Portland Custom built precast solutions from Aircrete blocks are high-performance thermal High-quality, high performance concrete Downstream composite blended cement
Slide 9: We innovate today for tomorrow
We innovate today for tomorrow 2 “Formülhane” in Mersin “Sabancı Technology R&D Centers 5 Center” in Munich Patents 3 Commercialized Products 4 EU Supported • The first R&D Center in the cement • Established in 2023 at Technical Projects industry in Türkiye approved by the University of Munich Campu
Slide 10: Commercialized Innovation: Customer oriented innovative solutions
Commercialized Innovation Customer oriented innovative solutions RapiDome; Flycrete; quick solution for 3D house in Mersin plant damaged floors More flexible &sustainable Fast setting: faster hardening, structures high strength output in 3 hours, acceleration of project Cost reduction, fast installa
Slide 11: Commercialized Sustainability: Increased Renewable Energy Utilisation
Commercialized Sustainability Increased Renewable Energy Utilisation Mersin Afyon Eskişehir & Eskişehir Renewable WHR Solar Power Bunol WHR Energy Plant Solar Power Investments Plant 40% 20% 12% 8% 9% 2022 2023 2024 2025 2030 11
Slide 12: Commercialized Sustainability: Increased Alternative Fuel Usage
Commercialized Sustainability Increased Alternative Fuel Usage Çimsa’s Alternative Fuel Usage Rate: %40 %29 2030 %26 2023 %15 2022 Average alternative fuel usage is 12% in Türkiye cement %7 industry, 25% among global cement players. 2021 2020 12
Slide 13: ESG Pioneer in cement & building materials industry
ESG Pioneer in cement & building materials industry The First Cement Obtaining IREC The Environmental Score of “B” in CDP Entry into the Çimsa listed on the Company in BIST 25 Certificate for 351k Product Declaration Climate Change and Diversity&Inclusion FTSE4Good Emerging Sustainability Index. MWh
Slide 14: Actions have been taken to extend the debt maturity over a longer term
Actions have been taken to extend the debt maturity over a longer term • EUR 150 million • USD 20 million • USD 70 million Green • EUR 25 million bridge loan from BNP Investment Loan for Loan from IFC Sustainability Loan Paribas Fortis and Çimsa Americas from EBRD ING BANK NV • First in Sabancı • Fu
Slide 15: Operational & Financial Update
Operational & Financial Update
Slide 16: Türkiye cement consumption grew while exports remained weak
Türkiye cement consumption grew while exports remained weak Çimsa’s consolidated volumes increased thanks to strong demand in Türkiye Türkiye Cement Market (mt) Çimsa Sales Volume (kt) +12.6% 52.6 +3.2% 46.7 +9.8% 4,871 5,028 -5.4% -6.7% 3,032 2,761 2,110 1,996 14.6 13.6 Türkiye Cement Consumption T
Slide 17: 9M24: Margin expansion at all lines through volume growth & proactive cost management
9M24: Margin expansion at all lines through; volume growth & proactive cost management Net Sales EBITDA Net Income TRYmn TRYmn TRYmn -7.7% 17,9% 21.1% 20,4% 17,0% 9,5% 28,0% 13,4% -6.3% 20,022 18,490 +14.2% 1,7% +74.0% +95.4% 3,898 3,305 3,413 6,328 5,928 1,900 1,660 1,212 850 (109) 3Q23 3Q24 9M23 9
Slide 18: Deleveraging through effective working capital management and optimized business
Deleveraging through effective working capital management and optimized business Before IAS29 was effective After IAS29 was effective NWC/Sales NWC/Sales 28% 21% 15% 15% 14% 13% 13% 10% 2018 2019 2020 2021 2022 2022* 2023* 9M24* Net Debt & Leverage Net Debt & Leverage 5.14x 1.22x 0.53x 0.50x 3.29x 2
Slide 19: Increased pay-out ratio as balance sheet gets delevared
Increased pay-out ratio as balance sheet gets delevared Pay-out Ratio Dividend Yield 0 100.0% 90.0% 0 4.6% 80.0% 70.0% 3.3% 0 3.2% 60.0% 0 50.0% 40.0% 0 30.0% 0 40.1% 20.0% 19.7% 0.0% 0.0% 0.0% 11.7% 10.0% 0 0.0% 2018* 2019** 2020*** 2021 2022 2023 *Due to strengthening the financial position. **Due
Slide 20: Çimsa Global Vision
%75 Hard Currency Revenue Generation ÇİMSA %70 Sustainable Product Portfolio GLOBAL VISION A journey to become global %40 Sustainable Energy Source sustainable building materials company Global R&D Center and Organization SBTi Targets 2nd largest in White Cement globally 3rd largest player in CAC gl
Slide 21: Q&A
Q&A
Slide 22: Investor relations contacts
Mustafa Aydın Özge Özcan Tosun Öktem Söylemez CFO FP&A and IR Group Manager IR Manager m.aydin@cimsa.com.tr o.ozcantosun@cimsa.com.tr o.soylemez@cimsa.com.tr investor.relations@cimsa.com.tr yatirimci.iliskileri@cimsa.com.tr www.cimsa.com.tr 22
Slide 23: Thank You!
THANK YOU!
Slide 24: Appendix
APPENDIX
Slide 25: Portfolio of traditional, innovative and value-added products
Portfolio of traditional, innovative and value-added products GREY CEMENT WHITE CEMENT VALUE-ADDED PRODUCTS • Target excellence and efficiency • 2nd largest white cement producer • 3rd largest CAC producer globally. globally. • increasing alternative fuel • CAC; value-added and niche • focus on sust
Çimsa Çimento Sanayi ve Ticaret A.Ş. — Investor Day (December 2024) on 6ix