Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — FY2015 Earnings Presentation
40 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, February 2016
Slide 1: CIMSA 2015 Results Investor Relations Presentation
CIMSA 2015 Results 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 2015 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: 2015 Market Overview: Global Cement Market
2015 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 2015, reflecting -2,7 % growth YoY (CAGR 7 % btw. 2002-2014) 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 200
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is around 1% in 2015 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: 2015 Market Overview: Turkish Cement Market
2015 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% Construction Sector Growth 20,0% 18,5% 15,7% Cement Sector Growth 18,3% 15,0% 14,1% 11,5% 13,9% 9,3% 11,2% 10,0% 10,0% 9,4% 6,8% 6,
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 1200 GDP Per Capita ($) 10.822 10.444 10.428 10.459 10.390 Cement Consumption Per Capita (kg) 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 decreased by 0,4 % YOY in 2015 Jan-Nov. 70,0 -0,4% 60,0 2% 50,0 1% 40,0 0% 0% 0% 30,0 20,0 -3% -3% 10,0 0,0 Marmara Aegean Mediterranean Black Sea Central Anatolia East Anatolia South East Total Anatolia 2014 Jan-Nov 2015 Jan-Nov % Change * Non-me
Slide 13: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 90 83 76 78 80 73 75 69 72 70 63 12 11 10 19 14 13 60 20 49 51 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 • 10.2 Mt cement & clinker has been exported from Turkey in 2015. 2014 2015 Total Export 2014: 10.7 mton 2015: 10.2 mton 51% 45% 22% 12% 9% 9% 7% 6% 5% 1% 6% 5% 6% 6% 5% 3% 1% 0% MENA West Africa Middle and North America South America West Europe East Europe CIS Other South Afr
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. Others; 20% Akçansa; 9,5% Çimsa; 7,5% Votorantim; 3% Oyak; 14% Vicat; 5% Cementir; 5% Limak; 10% Sanko; 6% As; 6% Aşkale; 7% Nuh; 6% 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 Q4 2015 2014 Grey clinker production (kton) 4.218 4.311 White clinker production (kton) 1.148 1.050 Grey cement & clinker sales (kton) 5.332 5.079 White cement & clinker sales (kton) 1.273 1.178 ISIDAÇ-40 (kton) 30 28 RMC sales (km3) 2.410 2.439 15
Slide 22: Operational Facts
Operational Facts • Grey cement & clinker sales of 5,2 Mt, and a white cement&clinker sales of 1,3 Mt in 2015 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 0,3 0,5 0,5 0,5 1,2 0,8 0,9 1,0 4,9 0,9 0,8 0,8 4,2 4
Slide 23: Operational Facts
Operational Facts • Grey cement average domestic price is 134 TL (Export price: 42$) • White cement average domestic price is 270 TL (Export price: 92$) in 2015 Grey Cement Domestic/Export Average Price Trend Grey Cement Domestic Sales Prices : 09-15 CAGR : 8,9% 132 134 105 111 101 80 88 Domestic Pr
Slide 24: Operational Facts
Operational Facts • CIMSA is assumed to serve around 2,4 % of the RMC market as of 2015. Ready Mix Concrete Sales Volumes (M m3) 3,5 3,0 2,7 2,6 2,4 2,3 2,6 2,4 0,5 0,8 08 09 10 11 12 13 14 15 4Q2014 4Q2015 There are 580 players & 1040 plants in the market, CIMSA serves with 28 RMC plants CIMSA has
Slide 25: Operational Facts
Operational Facts • CIMSA increased its exports to West Africa and North America in 2015 2014 2015 Total Export 2014: 1.2 mton 2015: 1.5 mton 39% 39% 29% 28% 10% 10% 8% 9% 6% 5% 7% 4% 1% 4% 0% 0% MENA West Europe West Africa North America South America CIS East Europe Other • CIMSA increased its exp
Slide 26: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 27: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated profit reached to 245 mn TL in 2015 Key Financial Higlights (TL) 2015 2014 Paid in capital 135.084.442 135.084.442 Total equity 1.187.160.498 1.118.186.038 Net consolidated sales 1.171.145.661 1.094.321.499 Operational consolidated EBITDA (*) 356.4
Slide 28: Financial Facts
Financial Facts CIMSA’s cumulative consolidated net sales reached to 1.171 mn TL in 2015 Domestic Sales: 1171 10-15 CAGR: 12% 1094 227 954 278 857 801 250 709 239 217 196 867 893 704 584 618 513 2010 2011 2012 2013 2014 2015 Domestic Export Total In 2015, 24% of the total cumulative consolidated sal
Slide 29: Financial Facts
Financial Facts CIMSA domestic cement sales constitutes 75% of the total domestic net sales in 2015 (2014; 75%) 2015 Domestic Cement & RMC Net Sales 2014 Domestic Cement & RMC Net Sales Breakdown (mn TL) Breakdown (mn TL) 24,5% 25,5% 75,5% 74,5% Cement RMC 22
Slide 30: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 356 mn TL in 2015(2014: 306 mnTL) 400 35% 30% 350 28% 30% 25% 356 300 306 29% 25% 250 26% 25% 25% 20% 236 EBITDA 200 210 176 15% EBITDA Margin % 150 182 201 10% 100 50 5% 0 0% 2009 2010 2011 2012 2013 2014 2015 EBITDA Margin is 30% in 2015 23
Slide 31: Financial Facts
Financial Facts Cumulative consolidated net profit is 245 mn TL in 2015 (2014: 193 mn TL). 302 38 245 14 193 140 12 231 123 115 108 104 181 108 123 115 124 104 2009 2010 2011 2012 2013 2014 2015 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY increase in net profit from operation
Slide 32: Financial Facts
Financial Facts Total net debt increased to 153 mn TL as of 2015 (2014: 56 mn TL) 400 349 350 109 300 213 250 223 200 79 150 153 83 258 56 6 104 Long Term Borrowings 100 27 41 20 106 158 164 Short Term Borrowings 50 62 87 82 85 Net debt 0 2009 2010 2011 2012 2013 2014 2015 • Total financial borrowin
Slide 33: 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) 17,4 2,15 2,24 14,4 1,43 1,82 7,1 9,1 6,8 2,6 10,1 0,80 0,91 0,85 0,77 2,6 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % Dividend Paid Dividend Yi
Slide 34: CIMSA/About Us: Investments
E> cIMsA/About Us = Investments
Slide 35: 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 36: 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 37: CIMSA/About Us: Achievements
CIMSA/About Us Achievements
Slide 38: 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 39: 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 40: 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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