Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2016 Earnings Presentation
39 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2016
Slide 1: CIMSA 2016 1st Quarter Investor Relations Presentation
CIMSA 2016 1st 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 2016 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 20-26 Investments....................
Slide 4: 2016 Market Overview: Global Cement Market
2016 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 2016, reflecting 0 % growth YoY (CAGR 7 % btw. 2002-2015) 2,6% -2,7% 6,5% 0,0% 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 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 2
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is around 2% in 2016 15% 10% 10% 9% 10% 6% 7% 6% 6% 6% 6% 5% 3% 3% 2% 2% 2% 1% 1% 3% 2% 0% 2% 2% 1% 1% -1% 0% 0% -1% -1% -2% -2% -5% -4% -10% -9% -15% Developed Countries* Rest of the World -ex China -20% -17% * Developed Cou
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% 33% Developed Far East (**) 60% North America 58% Rest
Slide 8: 2016 Market Overview: Turkish Cement Market
2016 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% 20,0% Construction Sector 15,7%18,5% Growth 18,3% 15,0% 14,1% 11,5% 13,9% 9,3% 10,0% 11,2% 10,0% 9,4% 6,8% 7,8% 5,7% 6,2% 9,2% 5,3%
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 GDP Per Capita ($) 1200 10.822 Cement Consumption Per Capita (kg) 10.444 10.428 10.459 10.395 10.003 10.
Slide 11: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area is decreased by 16 % to 184 mn m2, in 2015. 16% 220 176 184 176 159 124 123 125 104 106 101 70 36 46 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • The total cement consumption increased by 1 % YOY in 2015. 1% 70,0 7% 60,0 3% 2% 2% 50,0 1% 40,0 -3% 30,0 -9% 20,0 10,0 0,0 Marmara Aegean Mediterranean Black Sea Central Anatolia East Anatolia South East Total Anatolia 2014 2015 % Change * Non-members data is included and fo
Slide 13: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 90 85 76 78 80 73 75 69 72 70 63 12 11 11 19 14 13 60 51 20 49 50 46 15 42 41 43 8 40 7 40 11 11 10 10 64 65 65 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 • 3.0 Mt cement & clinker has been exported from Turkey in 2016 Q1. 2015 Q1 2016 Q1 Total Export 2015: 2.6 mton 2016: 3.0 mton 49% 43% 21% 23% 11% 8% 5% 6% 7% 5% 5% 4% 3% 3% 3% 3% MENA West Africa North America South America Middle and South West Europe East Europe Other Africa
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 based on clinker capacity. Akçansa; 9,5% Others; 24% Çimsa; 7,5% Oyak; 14% Votorantim; 3% Cementir; 5% As; 5% Limak; 10% Vicat; 5% Nuh; 6% Aşkale; 7% Çimko; 7% 7,5 % of the capacity belongs to C
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 Q1 2016 2015 Grey clinker production (kton) 1.046 1.024 White clinker production (kton) 307 248 Grey cement & clinker sales (kton) 973 988 White cement & clinker sales (kton) 312 291 ISIDAÇ-40 (kton) 7 8 RMC sales (km3) 600 392 15
Slide 22: Operational Facts
Operational Facts • Grey cement & clinker sales of 1,0 Mt, and a white cement&clinker sales of 0,4 Mt in 2016 Q1 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) Grey Cement Domestic Sales: 09-15 CAGR: 6,2 % 0,6 0,5 0,5 0,3 0,5 0,5 1,2 4,6 4,9 4,7 4,7 0,8 0,9 1,0 4,
Slide 23: Operational Facts
Operational Facts • CIMSA is assumed to serve around 0,6 % of the RMC market as of 2016 Q1. Ready Mix Concrete Sales Volumes (M m3) 3,5 3,0 2,6 2,7 2,6 2,4 2,4 2,3 0,4 0,6 08 09 10 11 12 13 14 15 1Q15 1Q16 There are 580 players & 1040 plants in the market, CIMSA serves with 28 RMC plants CIMSA has b
Slide 24: Operational Facts
Operational Facts • CIMSA increased its exports to MENA, West Europe, CIS and North America in 2016 Q1 2015 Q1 2016 Q1 Total Export 2015: 0.34 mton 2016: 0.48 mton 42% 33% 34% 25% 23% 13% 10% 1% 4% 4% 3% 4% 3% 0% MENA West Europe North America CIS South America East Europe West Africa • CIMSA increa
Slide 25: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 26: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated profit reached to 47,4 mn TL in 2016 Q1 Key Financial Higlights (TL) Q1-2016 Q1-2015 Paid in capital 135.084.442 135.084.442 Total equity 1.045.771.538 984.140.282 Net consolidated sales 253.664.838 234.968.311 Operational consolidated EBITDA (*) 7
Slide 27: Financial Facts
Financial Facts CIMSA’s cumulative consolidated net sales reached to 254 mn TL in 2016 1Q Domestic Sales: Domestic 10-15 CAGR: 12% Export 1171 1094 Total 954 227 278 857 801 250 709 239 217 196 867 893 618 704 235 254 584 513 107 94 128 160 2010 2011 2012 2013 2014 2015 1Q15 1Q16 In 2016 1Q, 37% of
Slide 28: Financial Facts
Financial Facts CIMSA domestic cement sales constitutes 66,2% of the total domestic net sales in 2016 1Q (2015 1Q; 71%) 1Q 2016 Domestic Cement & RMC Net Sales 1Q 2015 Domestic Cement & RMC Net Sales Breakdown (mn TL) Breakdown (mn TL) 33,8% 28,9% 66,2% 71,1% Cement RMC 21
Slide 29: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 74 mn TL in 2016 1Q (2015 1Q: 59 mnTL) 400 35% 30% 350 28% 30% 356 25% 29% 300 25% 29% 306 25% 250 26% 25% 25% 20% 236 EBITDA 200 210 15% EBITDA Margin % 176 201 150 182 10% 100 50 74 5% 59 0 0% 2009 2010 2011 2012 2013 2014 2015 1Q15 1Q16 EBITDA Mar
Slide 30: Financial Facts
Financial Facts Cumulative consolidated net profit is 48 mn TL in 2016 Q1 (2015 Q1: 43 mn TL). 302 38 245 14 193 140 12 231 123 115 108 104 181 123 115 124 43 47 108 104 3 4 39 45 2009 2010 2011 2012 2013 2014 2015 1Q15 1Q16 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY increas
Slide 31: Financial Facts
Financial Facts Total net debt increased to 469 mn TL as of 2016 Q1 (2015 : 153 mn TL) 800 700 600 257 500 469 349 400 300 109 213 223 456 Long Term Borrowings 200 79 83 56 153 Short Term Borrowings 106 104 258 100 6 27 41 20 158 164 Net debt 62 87 82 85 0 2009 2010 2011 2012 2013 2014 2015 Q1 2016
Slide 32: 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 9,1 14,4 15,2 6,8 1,82 2,6 1,43 10,1 7,1 7,1 0,80 0,77 0,91 0,85 0,32 0,35 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % 250 Dividend Pa
Slide 33: CIMSA/About Us: Investments
E> cIMsA/About Us = Investments
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 : 48 million KWh (2015) Eskişehir Hot
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