Polisan Holding As · BIST:POLHO
Polisan Holding As — Q1 2021 Earnings Presentation
38 slides from Polisan Holding As's earnings presentation, April 2021
Slide 1: 1Q 2021 Investor Presentation
1Q 2021 INVESTOR PRESENTATION April 2021
Slide 2: Notice
NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially due to factors discussed in Polisan Holding’s prospectus filed
Slide 3: Polisan Holding: Grows via New Partnerships and Business Lines
POLİSAN HOLDİNG: GROWS VIA NEW PARTNERSHIPS AND BUSINESS LINES * PORT CHEMICAL PAINT REAL ESTATE OPERATIONS ACTIVITIES 100% 100% 100% FOREIGN 50% 40% PARNERSHIP 100% FOREIGN OPERATIONS 99% 3 * The ratios in this graphic show Polisan Holding’s direct and indirect share in the related subsidiary. The
Slide 4: Polisan Holding Strategy: Maximizing Value for All Stakeholders
POLİSAN HOLDİNG STRATEGY: MAXIMIZING VALUE FOR ALL STAKEHOLDERS Sustaining Profitable Growth of Existing Businesses Maximizing Intra-Group Synergies Strategic Alliances for Expansion into High Margin, New Business Lines Exploring New Markets and Becoming a Global Brand through Polisan’s Innovative P
Slide 5: Polisan Holding: Executing Strategic Priorities Since IPO
POLİSAN HOLDİNG: EXECUTING STRATEGIC PRIORITIES SINCE IPO 2012/20 CAGR TRY mln 2.500 50000,00% 48000,00% 2,176 REVENUE 46000,00% 2,011 18.1% 44000,00% 2.000 1,934 42000,00% 40000,00% 38000,00% 416; EBITDA 36000,00% 1,501 34000,00% 19.1% 23.7% 32000,00% 1.500 30000,00% 312; 28000,00% 1,092 26000,00%
Slide 6: Continued Focus on Profitability
POLİSAN HOLDİNG: CONTINUED FOCUS ON PROFITABILITY Combined Revenues: TRY2,176 mln Consolidated Revenues: TRY1,051 mln Other Chemical 6% Activities Chemical Other 38% Activities 1% 77% Paint Port 45% Operations Port 22% Operations 11% Combined EBITDA: TRY416 mln (EBITDA Margin: 19.1%) Consolidated EB
Slide 7: Polisan Home Cosmetics
«? Polisan HOME COSMETICS
Slide 8: Turkey Paint Industry: 5th Largest Market in Europe
TURKEY PAINT INDUSTRY: 5. LARGEST MARKET IN EUROPE TURKEY PAINT INDUSTRY POLİSAN KANSAİ BOYA With ~$1.6 billion, Decorative Segment, which has Growing Production Over the Years Europe’s 5th largest market ~50% share, drives growth 4%2% 2% 11% 1% 7% 7% 7% 50% 9% 1985 1987 1989 1991 1993 1995 1997 199
Slide 9: Future: Reinforcing Polisan Kansai Boya's Undisputed Leadership
FUTURE: REINFORCING POLİSAN KANSAI BOYA’S UNDISPUTED LEADERSHIP 50% PARTNERSHIP WITH KANSAI PAINT NEW FACILITY COMMENCED PRODUCTION IN 2019 Ø Kansai Paint’s main products are automotive, industrial, Ø New paint production and warehouse facility located on a decorative, protective and auto refinish c
Slide 10: Polisan Kansai Boya's Differentiation Strategy: Excellence
POLİSAN KANSAİ BOYA’S DIFFERENTIATION STRATEGY: EXCELLENCE 1 PRODUCT 2 SALES 3 SERVICE 4 QUALITY § Introduced the World to § Turkey’s first water-based § World’s first exterior § Global brand awareness the Home Cosmetics new generation mix system insulation insurance with quality certificates § Fact
Slide 11: Strategy: Continued Leadership with Profitable Growth
STRATEGY: CONTINUED LEADERSHIP WITH PROFITABLE GROWTH Young & growing population Mandatory insulation of 18 million houses to be exterior walls renovated - need for new buildings Insulation Revenues Auxiliary Products Revenues INDUSTRIAL 2010-2020 CAGR: 9.8% FURNITURE 2009-2020 CAGR: 26.4% MARINE 20
Slide 12: Port Operations
PORT OPERATIONS © Poliport
Slide 13: Turkey Seaborne Trade: 5th in Europe
TURKEY SEABORNE TRADE: 5th IN EUROPE TURKEY HAS OUTPACED EU PORTS WITH 63% GROWTH OVER 10 YEARS TURKEY RANKS 5th IN EUROPE IN SEABORNE TRADE Million Tons 650.000 608 508 497 486 478 500.000 478 295 350.000 294 200.000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Holland Italy Spain UK Turk
Slide 14: Turkey Seaborne Trade: Marmara Region Handles the Bulk of Cargo
TURKEY SEABORNE TRADE: MARMARA REGION HANDLES THE BULK OF CARGO CARGO HANDLED IN TURKEY IN 2020 TOTALED 497 MILLION TONS CARGO TYPES Vehicle Dry Bulk 9% 1.8% 33.1% 39% General Cargo Black Sea 11.0% Marmara Container Bulk Liquid 24.5% 29.5% REGIMES 17% Aegean Cabotage 11.8% Foreign Trade 73.6% 35% Tr
Slide 15: Kocaeli Gulf: Pioneer in Turkey and Among Top 10 in EU
KOCAELI GULF: PIONEER IN TURKEY AND AMONG TOP 1O IN EU KOCAELİ GULF IS TURKEY’S STRATEGIC GATEWAY LOCATED WHERE 45% OF TURKEY’S GDP IS GENERATED 2. IN TOTAL CARGO HANDLED Ø Among EU’s 10 Major Ports Ø 1st in Foreign Trade (Import/Export) Ø 1st in Cargo Handled (Turkey’s total) 2019 Port Cargo Handle
Slide 16: Poliport: Poised for Profitable Growth
POLİPORT: POISED FOR PROFITABLE GROWTH POLİPORT GROWTH* EXCEEDS THAT OF TURKEY’S GDP LONG TERM GROWTH POTENTIAL CONTINUES THROUGH OPPORTUNITIES ü Ongoing commercial relations with multinational companies 8.4% ü New business opportunities with multinational companies 4.6% ü Change in the supply-deman
Slide 17: Poliport: Leading Independent Chemical Storage Terminal
POLIPORT: LEADING INDEPENDENT CHEMICAL STORAGE TERMINAL 2020 SERVICES REVENUE SHARE § Handling Turkey’s 3rd largest export item; Chemicals Reputable clientele since 1990‘s BULK LIQUID § § 271,000 m3 capacity STORAGE § 166 tanks (size: 100 m3 – 9,300 m3) 64% SERVICES § Terminal Capacity: 2.5 million
Slide 18: Poliport: Capacity Increase Continues in a Selective Manner
POLİPORT: CAPACITY INCREASE CONTINUES WITH A SELECTIVE MANNER TEM Highway Railway 3 3 Warehouse Bulk Liquid 2 1 Storage Dry Bulk and General Bulk Liquid Cargo Loading & Loading & Unloading Unloading ü Services on 280,000 m2 land ü Terminal and General Cargo Services total handling capacity: 7.5 mln
Slide 19: Kimya
© Polisan KIMYA ROHIVI HAAS w Polisan MAROC wW Polisan HELLAS
Slide 20: Chemical Activities: Expanding Internationally
CHEMICAL ACTIVITIES: EXPANDING INTERNATIONALLY... TURKEY FOREIGN PARTNERSHIP INTERNATIONAL INVESTMENT POLİSAN ROHM & HAAS POLİSAN POLİSAN KİMYA (DOW) MAROC HELLAS § International investment in § Operational in Greece § Formaldehyde and Resins § Polisan Kimya - a subsidiary Morocco § The sole Polyeth
Slide 21: Polisan Kimya: Turkey's Leading Chemicals Producer
POLİSAN KİMYA: TURKEY’S LEADING CHEMICALS PRODUCER PRODUCTS REVENUE SHARE* § 1st formaldehyde resin producer in Turkey to be used in production (wood particleboard, paper impregnation, MDF, plywood), and insulation (glass wool, rock wool) FORMALDEHYDE § Turkey ranks 5th in the world in wood panel co
Slide 22: Polisan Hellas: PET Business in Greece
POLİSAN HELLAS: PET BUSINESS IN GREECE TRANSACTION HIGHLIGHTS POISED FOR GROWTH THROUGH EXPORTS Ø Polisan Hellas purchased 100% of the assets of Artenius Ø The sole Polyethylene Terephthalate (PET) resin and preform Hellas in Greece producer in Greece and the Balkans Ø Polisan Hellas is controlled b
Slide 23: Real Estate
Slide 24: Polisan Holding: Properties
POLİSAN HOLDİNG: PROPERTIES POLİSAN YAPI’S ONGOING PROJECTS OTHER PROPERTIES PRODUCTION FACILITIES Z OFFICE PENDİK LANDS & REAL ESTATES POLİPORT POLİSAN 26 shops, 73 offices 172,980 m2 land Partially available to invest 154,672 m2 90,142 m2 TRY57 mln* TRY248 mln TRY507 mln TRY588 mln* TRY211 mln • R
Slide 25: Financial Results
1Q 2021 FINANCIAL RESULTS W® Polisan =richins HOLDING | the Future
Slide 26: 1Q 2021 Consolidated Financial Results
POLİSAN HOLDİNG: 1Q 2021 CONSOLIDATED FINANCIAL RESULTS (TRY mln) REVENUE EBITDA* & EBITDA MARGIN NET INCOME CAPEX 1,163 1,013 176 127 180 20,00% 98.4 160 16.7% 17.7% 17.3% 16,00% 140 119 120 14.9% 79.3 63.2 12,00% 100 11.8% 49.6 355 80 62.7 300 38.8 8,00% 52.0 234 60 34.7 11.2 13.7 40 9.6 4,00% 20
Slide 27: 1Q 2021 Combined Financial Results
POLİSAN HOLDİNG: 1Q 2021 COMBINED FINANCIAL RESULTS 1Q 2021 Combined Revenues 800 1Q 2020 – 2021 Revenue and EBITDA Margin Evolution 752 58,00% 700 48,00% Chemical Port 50.0% 48.2% 519 600 Activities Operations 38,00% 7.6% 500 40.0% 355 Other 400 28,00% 2.4% 234 14.3% 300 11.3% 18,00% 17.7% 16.8% 17
Slide 28: 1Q 2021 Consolidated Balance Sheet & FX Position
POLİSAN HOLDİNG: 1Q 2021 CONSOLIDATED BALANCE SHEET & FX POSITION BALANCE SHEET FX – LOCAL CURRENCY BREAKDOWN (TRY mln) (TRY mln) 1Q 2020 4Q 2020 1Q 2021 Cash ST Debt LT Debt Cash & Cash Equivalents 228.8 288.5 303.8 23% 12% 13% Other Current Assets 474.1 506.2 561.3 Non-Current Assets 1,666.2 2,011
Slide 29: Effectively Managing COVID-19 Pandemic
POLİSAN HOLDİNG: EFFECTIVELY MANAGING COVID-19 PANDEMIC PRIORITIZED OUR PEOPLE ENSURED BUSINESS CONTINUITY TOOK STRATEGIC ACTIONS ü Instantly implemented the statements of the ü Established an effective communication ü Initiated actions to prevent a possible liquidity Ministry of Health and authorit
Slide 30: Back Up
BACK UP W Polisan | erichins HOLDING | the Future
Slide 31: Polisan Holding: Milestones
POLİSAN HOLDİNG: MILESTONES “Polisan of the Future” Transformation Program 2019 2018 Polisan Boya 2017 New paint facility EPD Certificate commenced 2016 production 2015 50% Partnership 2014 Pendik Project 2013 Z Office Project Launch of Polisan POS 2012 Loyalty Program 2011 Introduced «Home Cosmetic
Slide 32: Polisan Holding: Poised for Further Growth
POLİSAN HOLDİNG: POISED FOR FURTHER GROWTH PORT CHEMICAL REAL PAINT OPERATIONS ACTIVITIES ESTATE Revenue CAGR: Revenue CAGR: Revenue CAGR: Z Office Project: 14.1% 22.4% 24.2% Completed in 2014 EBITDA CAGR: EBITDA CAGR: EBITDA CAGR: 26 Shops, 22.9% 26.7% 12.5% 73 Offices on Sale 50% stake Capacity In
Slide 33: Polisan Holding: Board of Directors
POLİSAN HOLDİNG: BOARD OF DIRECTORS Bundesaufbau Gymnasium University of Boston ,USA Production Engineer (BSc) and Deutsche High School Wirtschafts Universität (BSc), Austria Mechanic Engineer (MSc) Bosphorus University, Industrial Engineer (BSc) Chairman of the Board of Polisan Holding, Polisan Cha
Slide 34: Polisan Holding: Senior Management
POLİSAN HOLDİNG: SENIOR MANAGEMENT Boğaziçi University, Civil Engineering İstanbul Technical University, Business Business Administration at Eskişehir Anadolu University Post-graduate degree in International Business at Istanbul Engineering Faculty of Economics and Administrative Sciences University
Slide 35: Global Targets for Sustainable Development
POLİSAN HOLDİNG: GLOBAL TARGETS FOR SUSTAINABLE DEVELOPMENT • Number of employees: 1,155 • Decrease in water gray footprint in 2020: 59% • Polisan Kansai Boya: 44% blue collar, 56% white collar • Decrease in water consumed per product produced/handled • Poliport: 77% blue collar, 23% white collar •
Slide 36: Global Targets for Sustainable Development
POLİSAN HOLDİNG: GLOBAL TARGETS FOR SUSTAINABLE DEVELOPMENT •Equal Opportunity and Compliance at Polisan Group: Equal opportunities for •Decrease in hazardous waste in production/cargo handled in 2020 by: employment, wages and fringe benefits as well as career and development as •5% at Polisan Kansa
Slide 37: Social Responsibility and Sponsorship Projects
POLİSAN HOLDİNG: SOCIAL RESPONSIBILITY AND SPONSORSHIP PROJECTS WOMEN YOUTH ENVIRONMENT/ART/OCCUPATION Ø EVERY VOICE, ONE BREATH Ø POLİSAN SCHOOLS Ø 100,000 trees Ø Since 2012 Ø M. Emin Bitlis Primary School Ø International İstanbul Biennial Official Ø Has been granted 3 prestigious Ø Polisan Second
Slide 38: Thank You
THANK YOU [Telephone [0 216 5785600 Fax }0 2165737792 | | E-mail W Polisan | =vichins HOLDING | the Future