Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2023 Earnings Presentation
32 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Jun 22, 2023
Slide 1: Diversified Building Materials Player
ÇİMSA Diversified Building Materials Player Investor Presentation March 2023
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Çimsa Çimento Sanayi ve Ticaret A.Ş. (“CIMSA”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 3: Diversified Global Footprint in Building Materials Industry
Diversified Global Footprint in Building Materials Industry Production Plants Port Access – R&D Center Grinding Facility International Assets Export Opportunity
Slide 4: Leading Global Positions in Lucrative Segments
Leading Global Positions in Lucrative Segments ✓A strong player with a balanced and diversified 2nd Largest product portfolio, special focus on high Player in profitable white cement and calcium White alimunated cement Cement ✓Strong local and global sales network with strategically located terminal
Slide 5: Transforming to Global Building Materials Player
✓ Strategic partnership with Sabancı Holding Transforming to Global Building Materials Player – Establishment of Sabancı Building Solutions B.V. – 2020 ✓ Acquisiton of Bunol Plant to strengthen leading position in Global White Cement 2020 - Diversified Building Materials Company Market -2021 ✓ Asset
Slide 6: Creating Value Through Portfolio Optimization
Creating Value Through Portfolio Optimization Strong & Profitable Core in Grey • Optimised grey operations through asset sales • Target excellence and efficiency for sustainable competitive advantage - Increasing alternative fuel & Focus on sustainability investments • Improve export capability in o
Slide 7: Çimsa Optimizes Grey Operations Due to Excess Capacity
ÇİMSA OPTIMIZES GREY OPERATIONS DUE TO EXCESS CAPACITY IN THE MARKET Excess Capacity (Mt) 120 100 100 DIVESTMENTOFKAYSERI&NIGDE PLANTS 95 97 100 94 Kayseri, Niğde Plants together with Ready Mixed Concrete Plants 80 13 31 31 27 in the region sold in July 2022 at 110 m€. 60 23 40 20 67 48 59 63 58 14X
Slide 8: Expanded Global Footprint and Grew Market Share
EXPANDED GLOBAL FOOTPRINT AND GREW MARKET SHARE WITH CIMSA AMERICAS INVESTMENT & BUNOL PLANT ACQUISITION Germany [Hamburg] Spain [Bunol] White Clinker Italy [Trieste] 0.6 mt United States Turkey [Houston] Spain [Sevilla] [Eskisehir & Mersin] Grinding : 0.3 mt White Clinker 1.7mt Israel [Ashdod] 8 ST
Slide 9: World's Second Largest White Cement Player, Sales in 70+ Countries
THE WORLD’S SECOND LARGEST WHITE CEMENT PLAYER WITH SALES MORE THAN 70 COUNTRIES SPAIN GREECE MOROCCO TURKEY GERMANY NETHERLANDS ITALY ISRAEL USA 78% of Total Sales Realised in 10 Countries BRAZIL 9
Slide 10: High Profitable Value Added Product: Calcium Aluminates
High Profitable –Value Added Product : Calcium Aluminates • Contributes to CO2 net zero targets via good CO2 emission per strength • Lower limestone consumption Environment • Ensures efficiency and longevity • Profitable and niche product in construction Strategy chemicals market • Higher stability
Slide 11: Sustainable Solutions and Innovative Technologies for Building Materials
Sustainable Solutions and Innovative Technologies for Building Materials Sabancı Global Technology Center GMBH is established in Technical University of Munich Campus. - R&D activities with customers and Universities - High customer satisfaction - Increasing synergy with the R&D center located in Tu
Slide 12: Dedicated Sustainability Strategy
Dedicated Sustainability Strategy Contributing to low-carbon economy transition 22% Reduction in Net Specific CO2 Emissions through strong R&D, innovation and technological ----------------------------------------------- transformation. 40% Alternative Fuel Usage ------------------------------------
Slide 13: ESG Pioneer in Cement and Building Materials Industry
ESG Pioneer in Cement and Building Materials Industry The First Cement 140k Tons of CO2 Emissions The Environmental Product Company in were Prevented in Scope Declaration Certificate BIST 25 Sustainability Index. 2. for 3 Products. Score of “B” in CDP Climate Gold Award for Grey to "Outstanding Alte
Slide 14: Çimsa Historical Highest EBITDA & Net Income
ÇİMSA HISTORICAL HIGHEST EBITDA & NET INCOME NET SALES (MTL) EBITDA (MTL) NET INCOME (MTL) 91% 1.236 129% 8.582 238% 3.432 646 3.745 1.017 2021 2022 2021 2022 2021 2022 * Excluding one off items, net income would be 536 MTL and 1.316 MTL for 2021 and 2022 respectively with 146% growth * Equity Holde
Slide 15: Strong Cash Management with Significant Deleveraging
STRONG CASH MANAGEMENT WITH SIGNIFICANT DELEVERAGING Net Working Capital/ Sales* ✓Optimization of production to manage 15% (2021) 14% (2022) inventory levels *13 month average ✓Strict overdue receivable management ✓Payment term negotiations with suppliers Net 1X (2022) 600 ✓ Increasing Dividend Focu
Slide 16: Appendix: 2023 Q1 Market & Operations
APPENDIX: 2023 Q1 Market & Operations March 2023
Slide 17: Turkish Cement Market
Turkey’s GDP growth realized 5,6% growth in 2022. 11,1% 11,4% 9,0% 8,5% 8,5% 7,1% 7,5% 6,1% 5,6% 5,0% 4,8% 5,2% 3,2% 3,0% 1,9% 0,9% 0,9% -4,7% GDP Growth Rate % Decrease in Turkey domestic cement consumption is recorded 7,0% in 2022. 21,7% 19,4% 16,0% 23,20% 11,2% 10,2% 9,9% 9,1% 4,8% 4,6% 1,6% 4,7%
Slide 18: Turkish Cement Market
Turkey is the biggest cement producer in Europe, with high capacity utilization rates. Turkey has also 2nd place in World cement export. Cement & Clinker Export (mt) Cement & Clinker Domestic Sales (mt) Cement Production Capacity (mt) 100 100 95 97 94 87 84 78 80 75 76 13 73 31 69 70 11 14 31 63 12
Slide 19: Global White Cement Market
Global white cement demand is forecasted to be around 21 mt in 2021 & 2022 21 21 21 21 20 20 20 20 21 20 19 20 20 19 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *2022 Northern Russia & America Eastern • Global white cement production capacity 7% Europe Latam 6% reached to 33,9 M
Slide 20: Çimsa White Market Positioning
MARKET POSITIONING ÇİMSA WHITE MARKET Latin POSITIONING America Turkey 7% MENA 10% 26% Northern America 12% Russia & Western Eastern Europe Europe 27% 18% Çimsa’s market share in global white cement market improved Çimsa’s white cement sales network expands to from 5,3% to 7,2% in last decade. over
Slide 21: Çimsa Grey: Integrated Plants in Mersin, Eskişehir, Afyon
3 INTEGRATED PLANTS IN MERSİN, ESKİŞEHİR, AFYON ÇİMSA GREY SOLID NETWORK ESKİŞEHİR AFYON MERSİN 3.6 Mt GREY 1.7 Mt WHITE Clinker Capacity Clinker Capacity
Slide 22: Special Products
SPECIAL PRODUCTS CalciumAlimunateCement CAC Sales (Kton) CAC Sales (KUSD) 15.209 13.910 51 54 12.114 10.525 41 9.974 34 35 5.207 13 17 4.117 2018 2019 2020 2021 2022 2022 2023 2018 2019 2020 2021 2022 Q1-2022 Q1-2023 Q1 Q1
Slide 23: Operational Results
OPERATIONAL RESULTS* White Cement & Clinker Sales Volumes (M ton) Grey Cement & Clinker Sales Volumes (M ton) Domestic sales Export sales Domestic sales Export sales 1,39 1,39 1,5 1,72 1,68 4,9 4,7 5,6 5,78 5,07 1,50 1,47 1,29 4,30 4,22 1,13 1,20 3,90 3,80 3,00 1,70 1,70 1,56 1,27 0,26 0,19 0,21 0,2
Slide 24: Çimsa Grey Clinker Variable Cost Structure
ÇİMSA GREY CLINKER VARIABLE COST STRUCTURE 2022 2023 Q1 4% 3% 7% 8% 25% 31% 56% 64% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other
Slide 25: Q1 2023 Financial Summary
Q1 2023 FINANCIAL SUMMARY Key Financial Highlights (MTL) MAR-22 MAR-23 Change % DEC-22 Net Consolidated Sales 1.355 2.363 74% 8.582 Gross Margin % 13% 18% 4,91pp 17% Consolidated EBITDA (*) 137 314 129% 1.236 Consolidated EBITDA (*) Margin % 10% 13% 3,16pp 14% Net Consolidated Profit** 124 252 102%
Slide 26: Balance Sheet
BALANCE SHEET MTL 2023 Q1 2022 YE MTL 2023 Q1 2022 YE Current Assets 5.950 5.938 Current Liabilities 4.938 4.990 Cash and cash equivalents 2.207 1.603 Borrowings* 3.011 2.796 Trade receivables 1.701 1.869 Trade payables 1.192 1.829 Other receivables 1 1 Derivative financial liabilities 0 0 Derivativ
Slide 27: Income Statement
INCOME STATEMENT 2023 Q1 Income Statement (MTL) 2023 2022 Sales 2.363 1.355 Cost of sales (-) -1.939 -1.178 GROSS PROFIT 424 177 General and administrative expense (-) -137 -67 Marketing, selling and distribution expense (-) -8 -3 Research and development expense (-) -4 -2 Other operating income 70
Slide 28: Cash Flow
CASH FLOW MTL 2023 2022 A. CASH FLOWS FROM OPERATING ACTIVITIES (240) 33 Profit before taxation 238 139 Adjus t ment s t o r ec onc ile net pr ofit /los s for t he per iod 104 4 C hanges in wor king c apit al (548) (124) C as h flows fr om oper at ions (206) 18 Interest received 16 27 Payments relat
Slide 29: Appendix: Sustainability
APPENDIX: SUSTAINABILITY March 2023
Slide 30: Sustainability Roadmap & Targets
OVERVIEW OF ÇİMSA’S SUSTAINABILITY ROADMAP & TARGETS The main targets included in Çimsa's agenda within the scope of Sabancı Holding's sustainability roadmap are given below: Reaching zero work Being Net Zero Reviewing our Developing accident with Emissions and processes with a sustainable internati
Slide 31: Science Based Targets
SCIENCE BASED TARGETS • On March 30 2023, a • Goal development and validation processes during • Target communication • Annual emission commitment was made to Q2-Q4 studies after SBTi approval reporting set a near-term reduction • Time to deliver target after commitment: 24 months target for carbon
Slide 32: Thank You
THANK YOU March 2023
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