Oyak Cimento Fabrikalari A.s. · BIST:OYAKC
Oyak Cimento Fabrikalari A.s — OYAK Çimento Fabrikaları A.Ş. — FY2023 Earnings Presentation
42 slides from Oyak Cimento Fabrikalari A.s's earnings presentation, 2024
Slide 1: Financial Results
ne ; FINANCIAL | RESULTS POT CC | Gam |cemenr THe =UTURE [5 WORTH IT
Slide 2: TCC at a Glance and Global Operations
Taiwan Cement Corporation · Building a Green Future TCC at a Glance TCC Global Operations • Founded on May 1, 1946 850 MWh Energy Storage Capacity • Reorganized as Taiwan Cement Corporation (TCC) on January 1, 1951 Italy France Spain Australia US • Privatized in 1954 and management was taken over by
Slide 3: Global Footprint
Global Footprint Cement Capacity Clinker Capacity Taiwan 77.0 m ton 65.8 m ton China Netherlands Cement Capacity Clinker Capacity 35.0 m ton 18.0 m ton Portugal Romania Integrated Grinding Calcined Clay Türkiye Facility Facility Facility 10 7 3 TRNC RMX Aggregates Paper & Concrete Paper Bag Cape Ver
Slide 4: Most admired cement company, extensive know-how
0 Most admired cement company award according to Capital Magazine Wide Product Portfolio Extensive know-how for building material sector with international portfolio and companies (CIMPOR) Market Leader in Türkiye One of the Leading BIST-30 and MSCI white cement producer Unique player in the World T
Slide 5: What changed from 2016 to 2023?
What changed from 2016 to 2023? Merger of 5 listed cement companies and concrete The first Turkish cement company of OYAK company to make the "Net-Zero" commitment Merger of OYAK Çimento, A big step towards Acquisition of CIMPOR Denizli Çimento and OYAK becoming a global brand and it's global tradem
Slide 6: Shareholding Structure
Shareholding Structure % % % % } 100% 100% 100% 100% TAIWAN CEMENT DUTCH HOLDINGS BV OYAK CAPITAL INVESTMENT B.V. TAIWAN CEMENT DUTCH HOLDINGS BV OYAK CAPITAL INVESTMENT B.V. (TCC) (Netherlands) (OCI) (Netherlands) (TCC) (Netherlands) (OCI) (Netherlands) 40% % 60% CIMPOR GLOBAL HOLDINGS BV % 60% % %
Slide 7: Key Messages & Financial Highlights
01 Key Messages & Financial Highlights 2023 Financial Results
Slide 8: Key Messages & Financial Highlights · 2023 vs 2022
01 Key Messages & Financial Highlights · 2023 vs 2022 The first cement company in Türkiye to make a “Net Zero” Domestic Cement Sales Price Domestic Cement Sales Volume 0 commitment 58,0% ~+56% +14,1% 25,2% 17,4% 95.9 RMC RMC 6,4% Sales Price Sales Volume ~+80% +15,4% AF (%) 2016 2020 2023 2030 Susta
Slide 9: Key Messages & Investments · 2024 vs Beyond
01 Key Messages & Investments · 2024 vs Beyond 2024 Alternative Fuels & Growth & Renewable Energy Modernization ∙ WHR > Adana, Mardin, Ankara plants ∙ İskenderun Cement Mill ∙ Solar Energy > Adana, Mardin, Denizli plants ∙ New White Cement investment ∙ Solar Energy Power Plant in Beypazarı ∙ Denizli
Slide 10: AF Usage Trend in EU
01 Key Messages & Financial Highlights · AF* Usage Trend in EU 50 45 40 35 20 years 30.5 30 25 20 15 10 5 0 1990 1993 1996 1999 2002 2005 2008 2010 2013 2016 2019 2022 EU Cement Industry - Thermal Substitution Rate (TSR) Historical Trend 58.0% Europe achieved to get to 30% thermal substitution rate
Slide 11: Industrial Digitalisation
01 Key Messages & Financial Highlights · Industrial Digitalisation Online monitoring of 18 different facilities in 3 different continents More than 800 billions individual records per year Quality predictions of manufactured cement with high accuracy: No need to wait 28 days Predictive maintenance s
Slide 12: Cement Sector
02 Cement Sector 2023 Financial Results
Slide 13: Global Cement Consumption · 2023 vs 2022
02 Global Cement Consumption · 2023 vs 2022 Cement demand trends are challenging in 2023 with a visible decline in mature markets and muted growth in emerging ones 11M Prod: +38% (5.8mt) FY: -0.9% FY: +5% (65mt) Increase ( +%3) 11M: Slight increase (%0-2) FY: -2.7% (14.5mt) FY: -12% Stable Prod. FY:
Slide 14: Global Cement Price · 2023 vs 2022
02 Global Cement Price · 2023 vs 2022 While sales volumes are declining, prices are on an upward trend due to inflationary pressures CIS: CEE: Nort America Latam MENA South East Asia: South West Asia Sub-Saharan Africa: +22% +22% +14% +6% +1% 0% -4% -7% +35% East Asia: West Europe +20% +22% +21% +13
Slide 15: Turkish Cement Sector · 2023, 2022 and 2021
02 Turkish Cement Sector · 2023,2022 and 2021 Cement Production (million ton) Export (million ton) 2021-2022 2021-2022 30.8 -7% 27.3 -11% 78.9 81.5 2022-2023 19.7 2022-2023 73.7 18.3 +11% 18.7 -28% 15.7 12.5 8.6 Cement 4.0 Clinker 2021 2022 2023 2021 2022 2023 Domestic Cement Consumption (million to
Slide 16: Turkish Cement Sector · Annual
02 Turkish Cement Sector · Annual 118 114 115 115 110 111 102 97 92 82 83 77 79 73 76 65 13 12 11 14 20 50 11 11 49 14 31 47 14 31 27 43 46 19 43 8 7 15 20 23 11 11 10 10 million tons 27 28 31 36 43 45 43 43 51 56 58 66 65 65 69 75 67 48 60 63 58 69 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 17: Turkish Cement Sector · Domestic Consumption Change
02 Turkish Cement Sector · 2023 vs 2022 Domestic Cement Consumption (change %) Türkiye +19.0% +4.1% +14.9% +28.5% +17.7% +6.6% +36.1% +32.8% OYAK Cement Plants (integrated) Source: TCMB 16
Slide 18: Turkish Cement Sector · Clinker Stocks
02 Turkish Cement Sector · 2023 vs 2022 Clinker Stocks (change %) Türkiye -2.5% +62.3% +23.0% -19.3% +22.1% +11.6% -21.2% -32.8% OYAK Cement Plants (integrated) Source: TCMB 17
Slide 19: Turkish Cement Sector · Exports
02 Turkish Cement Sector · 2023 vs 2022 Cement Exports (‘000 ton) Clinker Exports (‘000 ton) -16% -53% 2022 2023 2022 2023 18,713 8,609 15,652 -27% 9,405 +2% 4,046 6,853 -28% -15% -47% +38% -1% -8% -34% -35% 2,622 2,673 1,404 758 1,013 665 420 401 482 668 554 550 567 400 342 316 279 262 USA Israel S
Slide 20: OYAK Cement · Türkiye
02 OYAK Cement · Türkiye Cement Capacity 24.0 m ton İstanbul Kocaeli Zonguldak Ordu Rize 1 4 1 1 3 Concrete Capacity 1 Bolu 3 12.5 mm 7 1 1 3 1 Ankara 8 Aggregates Capacity 6.8 m ton 2 1 4 1 1 Denizli 2 1 2 1 3 1 6 2 Hatay Mardin 1 OYAK Cement operates 7 integrated and Adana 3 grinding cement facili
Slide 21: Cement Product Portfolio
02 Cement Product Portfolio ∙ CEM II/A-LL 42.5 R ∙ CEM II/B-M (S-L) 42.5 R ∙ CEM II/C-M (P-LL) 32.5 N ∙ CEM I 52.5 R ∙ CEM II/A-LL 52.5 R ∙ CEM VI (S-LL) 32.5 R ∙ CEM II/A-M (S-L) 42.5 R ∙ CEM II/B-M (S-V) 42.5 R ∙ CEM VI (S-L) 32.5 N ∙ CEM II/A-M (P-LL) 42.5 R ∙ CEM II/B-LL 32.5R ∙ CEM II/A-S 42.5
Slide 22: OYAK Concrete · Big Ticket Projects in Türkiye
02 OYAK Concrete · The Brand Name of Big Ticket Projects in Türkiye OYAK Concrete, the main field of activity of which is production and sales of ready-mix concrete, also intended to produce the aggregate, which has outpaced the cement in some plants and taken the first place among the concrete prod
Slide 23: Earthquake and Regional Cement Consumption Dynamics
02 Earthquake and Regional Cement Consumption Dynamics Provinces affected Heavily and Moderately Damaged Structures Number of current tenders by the earthquake Identified in the Region (thousand #) held in the region As of January 2024; Total Housing 518 Numbers ~650,000 649,586 Total Building Numbe
Slide 24: Earthquake and Regional Cement Consumption Dynamics
02 Earthquake and Regional Cement Consumption Dynamics Actual Projection According to the forecast, The cement volume needed for the mentioned cities to be during the reconstruction process, reconstructed again between 2023-2026 and the volume of cement an additional 15.6 mn tonnes of related to oth
Slide 25: Earthquake Region Capacity and Market Share
02 Earthquake and Regional Cement Consumption Dynamics Clinker Cement Cement Company Plant Capacity Capacity Capacity number (mn ton/year) (mn ton/year) Share Limak 3 4.1 5.0 20% Seza Çimento Çimentaş OYAK Cement has a cement capacity of 7.5mn Kipaş tonnes with its Adana, Mardin and İskenderun Çimko
Slide 26: Financial Results
03 Financial Results 2023 Financial Results
Slide 27: Profit margin continues its upward trend
03 Financial Results · Profit margin continues its upward trend SALES REVENUE (m TL) EBITDA (m TL) +17% 29.0% 32.8% 26.7% 29.4% +28% +76% 30,700 +99% 24,845 26,313 9,034 2,206 8,151 7,032 906 14,100 1,393 4,093 22,640 578 7,245 12,707 3,515 FY22 (*) FY23 (*) FY22 FY23 FY22 (*) FY23 (*) FY22 FY23 OYA
Slide 28: EBITDA margin trend
03 Financial Results · EBITDA margin trend 30,700 7,848 Sales Revenue (m TL) 7,070 765 26,313 5,441 519 4,995 448 4,486 474 FY22-FY23 494 3,820 +17% 3,438 4Q22-4Q23 2Q22-2Q23 343 3Q22-3Q23 +57% 387 6,552 +85% 7,082 1,846 1Q22-1Q23 +58% 4,993 189 3,992 +143% 4,521 3,052 3,477 1,658 1Q22 1Q23 2Q22 2Q2
Slide 29: Peer Analysis
03 Peer Analysis +17% % % % % +12% -2% -9% Sales Revenue FY22 FY23 OYAKC Competitor 1 Competitor 2 Competitor 3 +28%% EBITDA +3% % +144% % +72% % OYAKC Competitor 1 Competitor 2 Competitor 3 EBITDA Margin (%) OYAKC Competitor 1 Competitor 2 Competitor 3 Source: KAP and investor presentations 28
Slide 30: Net Working Capital (NWC)
03 Net Working Capital (NWC) Sustainable level with highest collateralization NWC as a % of Sales Revenue (LTM) 21% % 19% % 4,932 16% % 4,792 3,512 4,342 4,502 NWC (m TL) 3,644 3,761 4,092 2,799 Trade receivables 2,931 3,332 3,641 Inventories Trade payables FY21 FY22 FY23 * Net working capital: Trad
Slide 31: Net Cash (Debt)
03 Net Cash (Debt) Sizable balance sheet for future acquisitions and investments Net Cash (Debt) Net Cash (Debt) / EBITDA (LTM) 4,246 957 5,300 3,190 0.47 991 657 0.14 438 536 -1,885 -1,522 FY22 FY23 -2,770 -68 0.34 -812 FY23 -1,269 -120 FY21 FY21 FY22 Cash and cash equivalents Short term liabilitie
Slide 32: Free Cash Flow
03 Free Cash Flow 9,034 139 -1,961 -1,726 5,486 FCF/ EBITDA mTL 2023 %61 EBITDA Net Working Tax Capital Free Cash Capital Change Payments Expenditures Flow 7,032 -1,420 -1,029 -1,467 FCF/ EBITDA 2022 mTL 3,116 %44 EBITDA Net Working Tax Capital Free Cash Capital Change Payments Expenditures Flow 31
Slide 33: Contact Information
Contact Information Ali Onur AYGÜN Finance Country Director Burak KÖROĞLU A&T Director Ece Nur DEVECİ FP&A Manager OYAK Cement Contact Information : iletisim@oyakcimento.com investor.relations@oyakcement.com +90 312 220 01 12
Slide 34: Appendix
04 Appendix 2023 Financial Results
Slide 35: Catalogues
04 Catalogues VAP (Value Added Products) Catalogue and White Cement Catalogue in 11 Languages • Turkish • Spanish • German • Italian • Arabic • Polish • French • Portuguese • Hebrew • Russian • English 34
Slide 36: Digital
04 Digital Turkish Cement Sector – Interactive Map Software ∙ Reviewing capacity data by country & province ∙ Marking on location ∙ Updating, adding and deleting information Mobile Application for Customers (I-DEAL) ∙ Access to all product analysis reports with QR code ∙ Access to contact informatio
Slide 37: Digital
)4 _ Digital www.oyakwhitecement.com GD | comer pas. E@D| coment +Super White Se Rom White dbtcc | @ax) CEMENT or) SnoWhite won
Slide 38: Income Statement · EBITDA growth continues
04 Income Statement · EBITDA growth continues m TL FY23 FY22 ∆% Sales revenue 30,700 26,313 17% Cost of sales -21,426 -19,856 8% Operating expenses -1,316 -1,163 13% Other operating income /(expenses) -247 426 -158% Operating profit / (loss) 7,710 5,720 35% Other income / (expenses) -87 73 -219% Fin
Slide 39: Balance Sheet
04 Balance Sheet m TL FY23 FY22 FY21 m TL FY23 FY22 FY21 Current assets 14,807 15,463 10,249 Current liabilities 6,665 8,511 5,793 Cash and cash equivalents 5,300 3,190 991 Short term borrowings 1,522 2,770 1,885 Financial investments 536 657 438 Trade payables 3,641 3,332 2,931 Trade receivables 4,
Slide 40: Cash Flow
04 Cash Flow m TL FY23 FY22 A. CASH FLOWS FROM OPERATING ACTIVITIES 7,233 3,048 Profit for the Period 8,030 8,883 Net Profit/(Loss) for the Period from Discontinued Operations 98 -60 Adjustments Related to Reconciliation of Net Profit for the Period 1,038 -2,140 Changes in Working Capital 460 -2,464
Slide 41: EBITDA · Net Profit
04 EBITDA · Net Profit 3,780 1,725 9,034 1,324 98 8,128 7,710 87 1,647 mTL EBITDA Amortization Operating Profit Investment Financial Monetary Gain Tax Net profit from Net Profit Activity Expence discontinued operations 40
Slide 42: Disclaimer · Forward-looking Statements
Disclaimer · Forward-looking Statements Bu sunum OYAK Çimento Fabrikaları A.Ş. tarafından sadece bilgi sağlamak amacıyla hazırlanmıştır. OYAK Çimento Fabrikaları A.Ş. yönetimi tarafından sağlanan kamuya açık bilgiler ve verilere dayanmaktadır ve temel olarak, mevcut ve gelecekteki iş stratejilerimiz
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