Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q3 2022 Earnings Presentation
28 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, November 2022
Slide 1: 3Q22 Results Investor Presentation
3Q22 Results Investor Presentation 1
Slide 2: 3Q22 financial highlights
3Q22 financial highlights TL14.2bn TL0,8bn TL1.5bn Sales -1% QoQ EBITDA 5.3% margin Net 0,59 TL/share -46% QoQ Income -40% QoQ TL9.8bn TL13.8bn Cash 1.2x current ratio Net 2.51x net debt/ EBITDA 34% QoQ Debt 11% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Solid performance despite deteriorating market sentiment
Solid performance despite deteriorating market sentiment 3Q22 highlights Continuously higher sales of TRY14.2bn driven by higher trade volume (%48 of total sales) despite lower prices and major turnaround Margin compression due to weak demand and increased competition Petkim average unit margins dec
Slide 4: Industry Environment
Industry Environment Global petrochemical market Petrochemical market in Turkey Hizmete Özel (Dış Taraflar) 4
Slide 5: Industry environment
Industry environment Monthly naphtha - ethylene spread (CIF MED spot prices) Monthly average Platts index* USD/tonne USD/tonne 1,532 1,320 1,200 1,461 1,424 2,600 1,292 1,249 1,433 1,380 2,400 1,303 1,271 1,173 1,218 1,256 1,254 1,259 1,194 1,123 2,200 1,116 2,000 1,115 1,116 1,109 1,110 1,138 1,114
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 1050 Deteriorating economic climate 950 850 Higher energy costs 750 650 Most petrochemical prices eased on improving supply and 550 weak derivative demand 450 PE prices remained weak as escalating li
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Polymers Fibers 1550 1400 1250 1000 950 600 650 200 350 -200 HDPE LDPE PP PVC MEG ACN PTA DEG Aromatics Others 1000 1080 800 780 600 480 400 180 200 0 -120 Benzene OrthoXylene Weighted PGP Crude C4 PA PY-GAS Source: S&P Global
Slide 8: Turkey's petrochemical sector overview
Turkey’s petrochemical sector overview Turkey domestic demand is primarily met by imports Surplus (k ton) PVC LDPE HDPE PP ACN MEG PTA PA P-X 0 -200 -400 -600 -800 Deficit 3Q21 4Q21 1Q22 2Q22 3Q22 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (%) Domestic consumption Petk
Slide 9: Operating and Financial Results
Operating and Financial Results Hizmete Özel (Dış Taraflar) 9
Slide 10: Capacity utilization and gross production
Capacity utilization and gross production Capacity utilization rates (%) Gross production (k ton) 100% 98% 807 838 710 638 516 135% 91% 100% 900 100% 110% 106% 86% 81% 90% 800 103% 80% 93% 66% 700 80% 95% 66% 88% 87% 325 353 101% 70% 94% 87% 60% 600 254 308 60% 500 85% 74% 103 163 50% 69% 400 105 10
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 3Q22 Total petchem sales: USD792mn 312 392 219 267 381 28% Thermoplastics 110 98 102 106 Fiber 78 68 75 92 73 Aromatics 71 76 67 48% 57 82 Other 39 5% Trade 307 296 301 266 217 10% 9% 3Q21 4Q21 1Q22 2Q22 3Q22
Slide 12: In 3Q22, Petkim achieved TL 14,105mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 687k ton TL14,105mn 378 6,764 84 2,174 40 576 401 1,069 27 25 29 30 655 652 469 548 22 13 5 12 21 504 58 237 In 3Q22, Petkim achieved TL 14,105mn sales Exports breakdown via 687k ton sales Export Revenue (TL mn) Total export: TL7,963m
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 3Q22 total COGS: 3Q22 inventory loss: TL13,277mn USD11.8mn 826 925 890 2% 901 845 727 752 801 725 733 36% Other 693 34% 43% 701 652 647 662 652 45% 599 596 49% Trade 601 18 1% 2% 2% 2% 14 3% 501 13 2% 7% 1% Depreciation 5% 2% 8%
Slide 14: Feedstock vs. product prices of Petkim
Feedstock vs. product prices of Petkim Thermoplastics and naphtha spread Petchem unit margins* USD/tonne USD/tonne 700 3,200 2,020 1,967 1,949 1,500 1,400 1,871 1,959 1,748 1,857 600 2,800 1,658 1,771 1,771 1,730 1,682 1,200 1,559 1,300 500 2,400 1,294 1,325 1,000 1,266 1,304 1,100 406 2,000 1,209 3
Slide 15: PETKIM 3Q22 income statement
PETKIM 3Q22 income statement FY Q2 TL mn Q3‘21 Q3'22 YoY Δ (%) Q2‘22 Q3'22 QoQ Δ (%) Sales 6,735 14,201 111% 14,369 14,201 (1%) Cost of sales (5,383) (13,277) 147% (12,910) (13,277) 3% Gross profit 1,352 924 (32%) 1,458 924 (37%) Gross profit % 20% 7% 10% 7% Marketing and sales expenses (51) (139) 1
Slide 16: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 7.4 8.0 4.7 3.7 Export 2.7 644 695 683 687 Domestic 593 6.6 7.0 5.8 6.2 4.0 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Financial EBITDA and net income (mn TL) Margins (%) highlights 2.4 25% 1.8 EBITDA 1.7 1.7 1.6 18% 1.6 1.5 17% margin 1.4 1.4 21% 15% EBIT
Slide 17: Earnings decreased mainly due to inventory and cost efficiency decline
Earnings decreased mainly due to inventory and cost efficiency decline 3Q22 segments’ results (mn TRY) -46% Quarterly change in EBITDA (mn TRY) Pricing delta TRY-95mn 17
Slide 18: Liquidity highlights
Liquidity highlights Deposits* (%) Maturity profile (mn USD) USD528mn 9% USD500mn Eurobond is planning to be refin USD TRY EUR As first publicized via an announcement by the Capital 8% Markets Board on March 31, 2022, the company continues 532 reviewing different funding alternatives, including a po
Slide 19: Sustainability and ESG
Sustainability and ESG Hizmete Özel (Dış Taraflar) 19
Slide 20: Our sustainability strategy will be built on two pillars
Our sustainability strategy will be built on two pillars Climate/CO2 Targets3 3 2 Long- term 1 2030 onwards Mid-term Achieve long term decarbonization targets Short-term 2 2025-2030 for decreased emissions: Decarbon- 2021-2025 Develop internal carbon pricing approach 40% reduction by 2035 for Scop
Slide 21: Ranking 8th among 206 players in the commodity chemicals
Petkim completed the assessment with a score of 22.7 Ranking 8th among 206 players in the commodity chemicals ESG Risk Rating 22.7 Medium Risk Sustainalytics ESG Risk Rating Ranking NEGL LOW MED HIGH SEVERE Rank Percentile (1st = lowest risk) (1st = lowest risk) 0-10 10-20 20-30 30-40 40+ Global Uni
Slide 22: Sustainability key performance indicators – 2022
Sustainability key performance indicators – 2022 Stakeholder related targets1 2022 Key Highlights Targets Climate & Decarbonization 1% Implementation of energy efficiency and electrification initiatives to Environment decrease carbon intensity (decarbonization) Energy Conducting Energy Audits consum
Slide 23: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 23
Slide 24: PETKIM 3Q22 balance sheet
PETKIM 3Q22 balance sheet TL mn 6M'22 9M'22 Financial highlights 6M'22 9M'22 Cash and cash equivalents 7,277 9,768 Net debt position (12,473) (13,815) Trade receivable Working capital (1,213) (2,912) 6,220 4,691 Inventory Days sales outstanding 38 32 5,883 4,715 Other receivables Days payable outsta
Slide 25: Diversified business profile through ancillary infrastructure and energy investments
Diversified business profile through ancillary infrastructure and energy investments Description Benefits to Petkim Turkey’s first privately constructed Refinery Lower naphtha procurement costs Target processing capacity of 10m tons p.a. Replacement of some of the heavy naphtha feedstock wit
Slide 26: Petrochemical complex flow chart
Petrochemical complex flow chart Petkim has fully integrated operations LDPE (350,000 ton/year) Bag, greenhouse covers, film, cable, toys, pipes, bottles, hose, packaging HDPE (96,000 ton/year Construction and water pipes, packaging film, toys, bottles, soft drink crates, barrels Ethylene plant MEG
Slide 27: PETKIM stock performance
PETKIM stock performance Mn unit 1,200 280 1,000 230 800 600 180 400 130 200 80 0 Jan-21 Jan-21 Mar-21 Apr-21 May-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Volume PETKM TI Equity XU100 Index Market capitalization
Slide 28: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Petkim Petrokimya Holding A.Ş. (the “Company”) or any member of its group nor should it or any part of it form
Petkim Petrokimya Holding A.Ş. — Q3 2022 Earnings Presentation on 6ix