Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS
Akcansa Cimento Sanayi Ve Ticaret A.s — 9M 2017 Earnings Presentation
27 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2017
Slide 1: 2017 9M Results
2017 9M Results Şahap Sarıer, GM Steffen Schebesta, CFO Slide 1
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by Akçansa Çimento Sanayi ve Ticaret A.Ş. for the sole purpose of providing information relating to Akçansa (Information). This Presentation is based on public information and data provided by Akçansa management and basically demonstrates
Slide 3: Content
Content Page 1. Market Overview 4 2. Financial Report 14 3. Outlook 21 Slide 3
Slide 4: Key Highlights
Key Highlights ▪ 2017 Q3 ✓ Akçansa’s domestic cement volumes up 15% in Q3 driven by good weather, strong demand and easy comparison base ✓ Successful price increase in August; full effect will be visible in Q4 ✓ Higher energy costs and devalued TL (fuel price +54%; electricity costs +8%) continue to
Slide 5: Turkish Cement Industry
Turkish Cement Industry Domestic consumption increased by 7% in month of August and +3% YTD; full year domestic growth expected to be around 3% This presentation/report demonstrates "estimated results" of market research done by Akçansa Çimento Sanayi ve Ticaret A.Ş. in addition to Turkish Cement Ma
Slide 6: Construction Permits
Construction Permits Cement consumption shifts from private housing to infrastructure 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 1. Private Housing 62% 57% 50% 51% 54% 52% 53% 53% 51% 47% 49% 45% 2. Commercial 14% 16% 13% 9% 11% 10% 11% 9% 10% 9% 8% 8% 3. Public 4% 5% 5% 5% 5% 5% 5
Slide 7: Overview of Major Projects
Projects 0-2 years Overview of Major Projects Projects 3-5 years Substantial number of high volume projects in Akçansa’s core region Marmara 3rd Airport (1.500k m3) Istanbul Tunnel Major urban transformation areas in Istanbul (8m m3) North Marmara Highway (2.500k m3) Expected effect on Turkey 3rd Ai
Slide 8: Domestic Sales Volume Change (August YTD)
Domestic Sales Volume Change (August YTD) August YTD domestic market consumption increased by 5% in Marmara Region 2% 5% 10% 8% -4% -9% 14% Source: TCMA Slide 8
Slide 9: Volume, Price and Energy Cost
Volume, Price and Energy Cost 9M17/3Q17 vs. 9M16/3Q16 Significant increase in energy costs vs. PY; export cement and clinker prices up in TL 9M17 vs 9M16 3Q17 vs 3Q16 Readymix Price Price Volume Volume (TL/m3) (TL/m3) ▪ Q3 domestic price above compared to Average PY Marmara Aegean Black Sea 9M17 vs
Slide 10: Sales Breakdown
Sales Breakdown Cement Shipments RMX Shipments [M ton] +1% [M m3] -18% 5.8 5.9 6.0 4.5 4.7 4.8 3.0 2.9 2.4 1.5 0.1 0.0 Domestic Cement 0.9 0.2 0.8 0.3 Domestic Clinker 0.0 9M16 9M17 Export Cement [M ton] 9M16 9M17 Export Clinker [M m3] 3.0 +10% +3% 2.1 1.9 1.5 1.5 1.7 0.9 0.9 0.0 0.0 0.3 0.1 0.3 0.0
Slide 11: Export Markets
Export Markets Shift from Latin America to USA with higher Low Alkali Cement margins 9M16 Other Latin America West Africa 11.6% 6.4% 2.9% 25.3% North Africa 53.8% USA 9M17 Latin America Other West Africa 0.0% 0.0% North Africa 0.1% 31.0% 68.9% USA West Africa and USA are the major export markets in
Slide 12: Akcansa has by far the highest share in exports to the USA in 9M
Akcansa has by far the highest share in exports to the USA in 9M Seaborne Trade September YTD EXPORT VOLUMES AKCANSA OTHERS* Volumes: k t 2016 2017 ∆ 2016 Trend 2016 2017 ∆ 2016 Trend Bulk Cement 582 697 19,7% 437 826 89,0% USA 568 697 22,7% 8 24 200,0% Other countries 14 - - 429 802 86,9% B
Slide 13: Content
Content Page 1. Market Overview 4 2. Financial Report 14 3. Outlook 21 Slide 13
Slide 14: Income Statement
Income Statement Company (M TL) 3Q16 3Q17 % Ch. Q 9M16 9M17 % Ch. YTD Net Sales 352,3 401,6 14,0% 1.088,2 1.091,1 0,3% Cost of Sales (240,9) (309,0) 28,2% (770,1) (878,9) 14,1% Gross Margin 111,3 92,6 -16,8% 318,0 212,2 -33,3% Marketing&Sales Expense (3,6) (4,3) 19,0% (13,1) (14,7) 12,4% General Man
Slide 15: Net Income Bridge
Net Income Bridge M TL 320 72 13 164 300 280 Energy 260 Cost 50 ~77m 240 234 FX of Energy 27 220 Cost 200 Other 180 (****) 87 160 140 7 25 120 28 103 22 100 80 60 40 20 0 9M16 Price(*) Volume(**) Cost of Other Income from Fin. Taxes 9M17 Sales(***) investments Inc.&Charges (*****) Source: CMB financ
Slide 16: Cash Flow
Cash Flow Company (M TL) 9M16 9M17 Cash flow from operating activities Operating income before the changes in working capital 345,5 212,0 Changes in working capital (109,3) (86,2) Taxes paid (45,9) (21,0) Other items 5,6 (6,2) 195,9 98,6 Cash flow from investing activities Tangible and intangible fi
Slide 17: Total Capex Distribution
Total Capex Distribution 2017 capex target reduced further to <120 mTL, at least 18 mTL lower than 2016 AC M TL % 100% 80 78 74 13% 16% 70 12 10 80% 60 Key Growth Investments in 9M17: 46% 45% 50 35 60% 34 1. (I&G) Purchasing of professional cargo loaders for 40 Ambarlı Port 2. (I&G) Purchasing of mo
Slide 18: Net Debt / EBITDA
Net Debt / EBITDA M TL 1.8 455 500 423 450 1.6 406 1.4 1.4 1.4 400 1.1 350 1.2 300 1.0 247 249 225 230 226 250 0.8 0.7 185 0.6 179 0.6 0.6 200 151 0.5 0.6 0.4 0.5 0.4 91 150 0.4 85 0.2 100 70 0.2 50 0.2 0.2 0.0 0 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Net debt Net Debt
Slide 19: Balance Sheet
Balance Sheet Variance Variance Mio TL 30.09.2016 31.12.2016 30.09.2017 2017 vs 2016 Mio TL 30.09.2016 31.12.2016 30.09.2017 2017 vs 2016 Current Assets 607,4 644,3 736,1 128,7 Current Liabilities 505,3 528,2 770,2 265,0 Cash & cash equivalents 33,5 23,4 63,0 29,4 Financial Liabilities 259,8 208,5 4
Slide 20: Content
Content Page 1. Market Overview 4 2. Financial Report 14 3. Outlook 21 s Slide 20
Slide 21: 2017 & 2018 Outlook
2017 & 2018 Outlook Good finish to the year expected in Q4, assuming normal weather patterns Expectations Compared to AC16: FY17 Volume Price ▪ Domestic cement prices expected to be substantially Domestic Cement (TL/t) above PY in Q4 after price increase in August Export Cement ($/t) ▪ Export cement
Slide 22: Follow Us
We are also rising together in the social networks. AKCANOD Cimento sektorunuin kalbi Boies ‘bizimle ator. @ oO) Slide 22 AKGCAN@£)
Slide 23: Contacts
Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Ülgen Eryürek Aslan, IR Manager Phone +90 216 571 30 17 ulgen.eryurek@akcansa.com.tr Fax +90 216 571 30 31 IR.info@akcansa.com.tr Esra Sulubacak Altan, IR Specialist Phone +90 216 571 30 62 esra.sulubacak@akcansa.com.tr Fa
Slide 24: Appendix
Appendix AKCAN@Q)
Slide 25: EBITDA Margins
EBITDA Margins EBITDA Margin - Quarterly % 35 31.8 30.3 31.8 30.1 29.9 31.2 30 26.2 26.5 25.0 27.6 26.9 22.6 23.7 23.6 23.7 24.3 25 22.0 21.8 18.2 19.2 20 16.9 16.0 14.5 15 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 35 30 28.3 29.6 27.9 28.8 30.1 29.2 27.6 29.3 27.9 26.2 26.5 25.0 25 22.7 22.5 20.1 19
Slide 26: Dividend Paid, Dividend Yield and Payout Ratio
Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % +21% 257.6 9.2 91.2 91.5 90.9 91.6 91.2 8.7 237.2 226.3 6.6 6.8 144.4 5.2 110.0 2013 2014 2015 2016 2017(*) 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 *) Adjusted for extraordinary gain from sale of H
Slide 27: General Basics About Cement and RMC Production
General Basics About Cement and RMC Production Production ▪1.6 ton of limestone are consumed to produce 1 ton of clinker ▪75-90% clinker is consumed to produce 1 ton of cement ▪250-300 kg of cement in 1 m3 RMC produced ▪1.5-2.0 ton of aggregate in 1 m3 RMC produced depending on the type of RMC produ
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