Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q4 2017 Earnings Presentation
20 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Feb 22, 2018
Slide 1: 4th Quarter and Full Year 2017 Results
4th Quarter and Full Year 2017 Results Eren Mantaş, CFO Mehmet Koç, Reporting Manager February 22, 2018
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 t
Slide 3: Contents
Contents Market Overview • Turkish Cement Market 5-8 Cimsa • Operational Results 10-14 • Financial Results 16-19
Slide 4: 2017 Market Overview: Turkish Cement Market
2017 Market Overview Turkish Cement Market
Slide 5: Turkish Cement Market Development in Q4 2017
Turkish Cement Market Development in Q4 2017 • Turkey’s total cement comsumption has increased by 6 % YoY November 2017 • 12.8 Mt of cement & clinker has been exported from Turkey in 2017, an increase of 11 % YoY • The average grey cement price increased by 24% YoY • The primary fuel cost increased
Slide 6: Turkish Cement Market: Cement sector growth is correlated with GDP
Turkish Cement Market Cement sector growth is correlated with GDP 22,0% 19,4% 15,7% 11,2% 9,4% 10,0% 10,8% 6,1% 6,4% 6,5% 5,9% 9,1% 8,8% 8,9% 8,9% 5,0% 4,7% 5,8% 7,3% 4,6% 6,0% 2,1% 5,0% 4,8% 4,6% 0,9% 2,9% 0,0% 2,1% 0,8% -6,0% -4,8% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 7: Turkish Cement Market: GDP per capita and cement consumption
Turkish Cement Market There is a positive correlation between GDP per capita and cement consumption The cement consumption per capita has declined slightly in 2017 along with GDP per capita 14.000 1.400 12.480 12.112 11.588 12.000 10.931 11.205 11.014 10.807 1.200 10.560 10.000 9.656 10.000 8.980 1.
Slide 8: Turkish Cement Market: Exports by region
Turkish Cement Market 12.8 Mt of cement & clinker has been exported from Turkey in 2017 (2016: 11.4 Mt) MENA and West Africa are the top export regions in 2017 in total exports. Grey Clinker Export by Region (Turkey) White Clinker Export by Region (Turkey) 53% 70% 68% 39% 29% 30% 20% 20% 13% 16% 11%
Slide 9: Operational Results
Operational Results [iI
Slide 10: Operational Results: Record RMC sales in 2017
Operational Results Cimsa has achieved record sales amount of RMC in 2017 There was a significant rise on both production and sales amount compared with 2016 due to seasonality and effective management 2017 Q4 2016 Q4 Change % 2017 2016 Grey clinker production (kton) 1.284 1.111 16% 4.890 4.288 Whit
Slide 11: Grey and white cement & clinker sales volumes
Operational Results Grey cement & clinker sales of 5.7 Mt, and white cement & clinker sales of 1.3 Mt in 2017 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) Grey Cement Domestic Sales: White Cement Export Sales: 2010-17 CAGR: 3.7 % 2010-17 CAGR: 2.8 % 0,6 0,6 0,5
Slide 12: Ready mix concrete sales volumes
Operational Results Strong performance in projects reflected in increasing RMC volume Ready Mix Concrete Sales Volumes (M m3) 3.5 3.4 3 2.7 2.8 2.8 2.6 2.6 2.4 2.4 2.3 0.8 1.0 08 09 10 11 12 13 14 15 16 Q4 16 Q4 17 2016 2017 Increased RMC volume YoY 38% in Q4 and 22% for full year. Demand mainta
Slide 13: Increasing petcoke prices in Q4
Operational Results Increasing petcoke prices in Q4 Petcoke (Mid-Suphur) (CIF $/ton) 2016 2017 97 97 97 87 87 87 87 87 87 83 83 83 88 85 80 50 47 47 47 43 43 39 35 35 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Our blended petcoke costs started coming down in July, thanks to the use of high su
Slide 14: Electricity prices and tariffs
Operational Results No increase in tariffs, though an increase in electricity prices in the OTC market Sharp peak in Q4 2016 due to the natural gas curtailment and severe weather: postive base effect Electricity (TL/Mwh) 233 228 216 218 216 212 211 205 207 205 203 202 202 197 209 194 204 190 197 184
Slide 15: Financial Results
ag! LJ | Be rT Pe eee! gansases: pee uenea) i 1 ERS Financial Results |
Slide 16: EBITDA increased 102% in Q4 2017
Financial Results EBITDA increased 102% in Q4 2017 compared to the same period in 2016 Key Financial Highlights (MTL) 4Q-2017 4Q-2016 Change% 12M-2017 12M-2016 Change% Net consolidated sales 436 290 51% 1.491 1.170 27% Consolidated EBITDA (*) 112 55 102% 384 352 9% Consolidated EBITDA Margin % 26% 1
Slide 17: Consolidated EBITDA and EBITDA margin
Financial Results Consolidated EBITDA is 112 mn TL in Q4 2017 (Q4 2016 : 55 mn TL) EBITDA Margin is 26% in Q4 2017 450 40% 400 35% 30% 30% 30% 350 29% 28% 26% 384 30% 26% 25% 300 25% 25% 352 25% 26% 250 356 352 19% 306 20% 200 236 210 15% 150 176 182 201 10% 100 112 50 5% 55 0 0% 2009 2010 2011 2012
Slide 18: Consolidated net profit
Financial Results Consolidated net profit is 81 mn TL in Q4 2017 (Q4 2016 :43 mn TL) 302 38 245 246 246 14 228 21 21 14 193 140 12 231 181 225 225 214 75 6 123 115 124 41 108 104 2 69 39 2009 2010 2011 2012 2013 2014 2015 2016 Q4 16 Q4 17 2016 2017 Net Profit from operations SAHOL Stake Sale Exsa Eq
Slide 19: Financial borrowings and net debt
Financial Results 1.300 1.267 1.173 1.100 900 700 754 956 500 827 Short Term Borrowings 349 223 Long Term Borrowings 300 153 550 575 Net debt 104 83 56 373 100 258 212 87 27 158 79 109 82 41 164 213 85 20 -100 2010 2011 2012 2013 2014 2015 2016 9M 2017 2017 Total financial borrowings increased fro
Slide 20: Cimsa in 2018
Cimsa in 2018 Protecting increasing momentum of sales in 2018 Cimsa's 4Q17 numbers came in above projections. We believe that 2018 will bring further improvements on the back of cement price increases and more stable fuel costs. Priority in 2018: Deleveraging 19
Çimsa Çimento Sanayi ve Ticaret A.Ş. — Q4 2017 Earnings Presentation on 6ix