Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2016 Earnings Presentation
31 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2016
Slide 1: CIMSA 2016 2nd Quarter Investor Relations Presentation
CIMSA 2016 2nd Quarter 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 ▪ 2016 Market Overview Global Cement Market....................... Page 1-3 Turkish Cement Market.................... Page 4-10 ▪ CIMSA/ About Us Operational Facts........................... Page 11 -16 Financial Facts................................ Page 17-21 Investments....................
Slide 4: 2016 Market Overview: Global Cement Market
2016 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 2016, reflecting 0 % growth YoY (CAGR 7 % btw. 2002-2015) 6,5% 2,6% -2,7% 0,0% 4,4% 8,7% 10,7% 6,0% 7,6% 2,4% 9,9% 9,7% 7,9% 7,7% 4,0 4,1 4,0 4,0 3,6 3,8 3,3 2,8 2,8 3,0 2,3 2,6 2,0 2,2 1,8 2002 2003 2004 2
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is around 2% in 2016 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 2015E Global Regional 2016E Global Regional Consumption Consumption 3% 3% 3% 3% 3% 3% China 33% Western Europe 34% Developed Far East 58% North America 57% Rest of the
Slide 8: 2016 Market Overview: Turkish Cement Market
2016 Market Overview Turkish Cement Market
Slide 9: Turkish Cement Market
Turkish Cement Market • Cement sector growth is correlated with GDP. GDP Growth 22,0% 19,4% Construction Sector Growth Cement Sector Growth 15,7% 18,5% 18,3% 14,1% 11,5% 13,9% 9,3% 11,2% 10,0% 9,4% 6,8% 6,2% 7,8% 5,7% 9,2% 8,8% 5,3% 9,1% 8,4% 4,7% 2,1% 6,9% 7,4% 3,0% 4,0% 4,0% 5,8% 4,8% 2,1% 4,9% 4,
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 GDP Per Capita ($) 1200 Cement Consumption Per Capita (kg) 10.822 10.444 10.428 10.459 10.395 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. 220 176 184 176 159 124 123 125 104 106 101 70 36 52 46 40 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 2016 Q1 Q1 Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 100 90 90 85 75 76 78 80 72 73 69 70 63 12 13 12 11 19 14 13 60 49 51 46 20 50 40 42 41 43 15 7 8 40 11 10 11 64 65 65 67 30 9 10 56 58 45 51 20 43 43 43 31 36 25 27 28 10 0 2001 2002 2003 2
Slide 13: Turkish Cement Market
Turkish Cement Market • 6.2 Mt cement & clinker has been exported from Turkey in 2016 Q2. 2015 Jan-Jun 2016 Jan-Jun Total Export 2015: 5.4 mton 2016: 6.2 mton 50% 37% 19% 22% 14% 7% 9% 5% 6% 6% 4% 4% 5% 3% 4% 4% MENA West Africa North America South America Middle and South East Europe West Europe CI
Slide 14: 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 15: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity. Akçansa; 9% Others, 26% Çimsa; 7% Oyak, 14% Votorantim, 3% Cementir, 5% As, 5% Limak, 10% Çimko, 6% Vicat, 5% Nuh, 5% Aşkale, 7% 7,5 % of the capacity belongs to CIMSA
Slide 16: CIMSA/About Us: Operational Facts
CIMSA/About Us Operational Facts
Slide 17: Operational Facts
Operational Facts • 5,5 Mt clinker capacity (including 1,1 Mt of white clinker) 11
Slide 18: 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 12
Slide 19: 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 20: Operational Facts
Operational Facts Key Operational Figures in Q2 2016 2015 Grey clinker production (kton) 2.068 2.136 White clinker production (kton) 592 543 Grey cement & clinker sales (kton) 2.368 2.504 White cement & clinker sales (kton) 643 652 ISIDAÇ-40 (kton) 14 15 RMC sales (km3) 1.359 1.009 14
Slide 21: Operational Facts
Operational Facts • Grey cement & clinker sales of 2,3 Mt, and a white cement&clinker sales of 0,6 Mt in 2016 Q2 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 4,9 4,7 4,7 0,3 0,1 4,0 4,2 4,
Slide 22: Operational Facts
Operational Facts • CIMSA is assumed to serve around 0,6 % of the RMC market as of 2016 Q2. Ready Mix Concrete Sales Volumes (M m3) 3,5 3,0 2,6 2,7 2,6 2,4 2,4 2,3 1,4 1,0 08 09 10 11 12 13 14 15 2Q15 2Q16 There are 580 players & 1040 plants in the market, CIMSA serves with 29 RMC plants CIMSA has b
Slide 23: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 24: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated profit reached to 133,4 mn TL in 2016 Q2 Key Financial Higlights (TL) Q2-2016 Q2-2015 Paid in capital 135.084.442 135.084.442 Total equity 1.134.301.782 1.077.258.519 Net consolidated sales 586.136.444 564.180.269 Operational consolidated EBITDA (*
Slide 25: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 189 mn TL in 2016 2Q (2015 2Q: 182 mnTL) 400 32% 35% 30% 32% 350 28% 30% 300 25% 356 29% 306 25% 250 26% 25% 25% 20% 236 EBITDA 200 210 176 182 189 15% EBITDA Margin % 150 182 201 10% 100 50 5% 0 0% 2009 2010 2011 2012 2013 2014 2015 2Q15 2Q16 EBITDA
Slide 26: Financial Facts
Financial Facts Cumulative consolidated net profit is 133 mn TL in 2016 Q2 (2015 Q2: 130 mn TL). 302 38 245 14 193 140 12 231 130 133 123 115 108 104 181 7 17 108 123 115 124 123 117 104 2009 2010 2011 2012 2013 2014 2015 2Q15 2Q16 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY
Slide 27: Financial Facts
Financial Facts Total net debt increased to 654 mn TL as of 2016 Q2 (2015 : 153 mn TL) 900 800 700 654 600 292 500 349 400 300 109 213 223 474 Long Term Borrowings 200 79 83 56 153 Short Term Borrowings 106 104 258 100 6 27 41 20 158 164 Net debt 62 87 82 85 0 2009 2010 2011 2012 2013 2014 2015 Q2 2
Slide 28: 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 15,4 1,82 11,4 10,1 9,1 1,43 7,1 6,9 0,99 0,96 0,80 0,77 0,91 0,85 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % Dividend Paid
Slide 29: CIMSA/About Us: Investments
E> cIMsA/About Us = Investments
Slide 30: 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 31: 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
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