Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q4 2018 Earnings Presentation
14 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Feb 21, 2018
Slide 1: 2018 Q4 Results Presentation
2018 Q4 Results Presentation February 21, 2018
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 t
Slide 3: Contents
Contents • Operational Results 5-9 • Financial Results 11-14
Slide 4: Operational Results
Operational Results [iI
Slide 5: Operational Results
Operational Results Challenging market conditions, slowdown in infrastructural projects and heavy winter conditions suppressed topline. Q4-17 Q4-18 Change % 2017 2018 Change % Grey clinker production (kton) 1.284 826 -36% 4.890 4.539 -7% White clinker production (kton) 312 201 -35% 1.211 1.251 3% Gr
Slide 6: Operational Results - White Cement
Operational Results-White Cement Wide global geographical diversification resilient in periods of domestic contraction - The share of exports in total sales is 45% ( 2017: 34% ). The share of white cement in exports is 80% (2017:85% ). White Cement & Clinker Sales Volumes (Mt) 2,0 1,8 1,6 1,4 1,13 1
Slide 7: Operational Results - Grey Cement
Operational Results-Grey Cement Shrinking demand and heavy winter conditions affecting domestic market in Q4’18 - Grey cement export volume increased 25% in 2018 compared to 2017, whereas domestic sales volume declined by 17%, resulting in a blended decrease of 13%. - The share of grey cement export
Slide 8: Operational Results – Ready Mix
Operational Results – Ready Mix Slowdown in infrastructural projects resulted in a 20% decline in sales volumes in 2018. Ready Mix Concrete Sales Volumes (M m3) 4,0 3,5 20% 3,0 2,5 2,0 3,4 1,5 2,8 2,7 2,4 1,0 0,5 1,0 0,4 0,0 2015 2016 2017 2018 Q4-17 Q4-18 8
Slide 9: Operational Results – Grey Clinker Cost Structure
Operational Results – Grey Clinker Cost Structure The primary fuel cost started coming down in Q4 2018 Decrease in electricity prices in the OTC market in Q4 2018 2017 2018 5% 5% 14% 12% 22% 21% 59% 62% Raw Materials Fuel Electricity Other Raw Materials Fuel Electricity Other Çimsa’s average petco
Slide 10: Financial Results
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Slide 11: Financial Results
Financial Results Economic headwinds to slow down demand in cement sector Key Financial Highlights (MTL) Q4-17 Q4-18 Change% 2017 2018 Change% Net consolidated sales 436 395 -9% 1.491 1.700 14% Consolidated EBITDA (*) 112 41 -64% 384 388 1% Consolidated EBITDA Margin % 26% 10% 26% 23% Net consolidat
Slide 12: Financial Results
Financial Results 1.700 1.500 1.263 1.300 1.173 1.100 900 754 1.029 700 827 Short Term Borrowings Long Term Borrowings 500 575 550 Net debt 300 451 153 100 213 212 164 -100 2015 2016 2017 2018 Net financial debt increased from 1,173 mn TL in 2017 year end to 1,263 mn TL in 2018 due higher TRY equi
Slide 13: Financial Results
Financial Results 450 400 18% 350 300 250 200 383 150 314 100 217 219 50 0 2015 2016 2017 2018 Working capital Net working capital / Net Sales was at 18,5 % for 2018, down from 25,7 % for 2017, due to mainly superior collection performance. Due to decline in demand, optimization of production to
Slide 14: Future Outlook
Future Outlook Export Driven Revenues and Product Diversification Extensive global reach: 65 countries under its own brand Increased focus on growing FX revenues through the investment in the first production operation abroad: White Cement Grinding Facility in Houston Diversed product portfoli
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