Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Investor Presentation (November 2020)
34 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's investor presentation, November 2020
Slide 1: Investor Presentation 2020 Q3
INVESTOR PRESENTATION 2020 Q3
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: Market Outlook
Market Outlook
Slide 4: Turkish Cement Market
Turkish Cement Market Increase in cement consumption in 2020 Sep YTD is 18% when compared to the same period of 2019 GDP growth in 2019 is 0,9% Decrease in cement consumption in 2019 is - 29.4% Domestic Cement Consumotion Growth 11,1% 21,7% 9,4% 19,4% 8,4% 8,5% 16,0% 6,9% 8,5% 7,5% 11,2% 10,2% 10,0%
Slide 5: Turkish Cement Market
Turkish Cement Market Turkey is the biggest cement producer in Europe, with high capacity 98 Mt utilization rates Turkey’s total cement production capacity is 98 Mt in 2019 Cement & Clinker Domestic Sales (mt) Cement & Clinker Export (mt) Cement Production Capacity (mt) 71 Mt 98 98 92 Total Domestic
Slide 6: Turkish Cement Market
Turkish Cement Market Sabancı Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity 17% 13% 16% 9% 8% 8% 8% 5% 5% 5% 5% 4% 4% 4% 4% Oyak Limak Akçansa Çimsa Aşkale Çimko Nuh Çimentaş As Vicat Medcem Votorantim Batı Anadolu Others 6
Slide 7: Global White Cement Market
Global White Cement Market Global White Cement Consumption (Mt CC) Global white cement demand has 21,0 20,9 grown by ~1% annually and 19,9 19,8 20,1 20,3 19,7 19,3 19,6 19,6 reached to 20,9 Mt CC level in 2019. 18,8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 www.cimsa.com.tr 7 Source:
Slide 8: Global White Cement Market
Global White Cement Market Regional Distribution of White Cement Consumption Global white cement production capacity reached to 33,9 Mt CC in 2019, while global Russia & white cement consumption is 20,9 Mt . Eastern Europe Northern Tüketim 6% America 0% 7% China and Middle East regions have the
Slide 9: Overview of Çimsa
Overview of Cimsa wwwelmsacomtr
Slide 10: Çimsa Cement – History and Development
Çimsa Cement – History and Development The World’s first A new White clinker line with Northern Cyprus Eskişehir’s second line was Became the first and Grey-White HotDisc (Waste Feeding convertible grey/White 600.000 tons/year capacity was commissioned. With the terminal was acquired. and Waste Ener
Slide 11: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Special Products High profitable new age products Establishing a strong & profitable core Being Global Leader in White Cement • Produce new age products with R&D • Ensure successful integration of Albus (Spain- • Optimise grey operations Bunol) • Çimsa Alumi
Slide 12: Çimsa Grey – Solid Network
Çimsa Grey – Solid Network 6.2 5.3 Mt ANKARA ESKİŞEHİR 5.3 Mt Grey Clinker Capacity AFYON KAYSERİ MALATYA NİĞDE MERSİN 1.6 1.7 Mt 5 Integrated Plants in 1 Grinding Station in 1 Cement Packing terminal in 1.7 Mt White Mersin, Eskişehir, Kayseri, Ankara Malatya Clinker Capacity Niğde & Afyon www.cimsa
Slide 13: Çimsa Grey – Operational Excellence
Specific Heat Consumption (kcal/kg cli) 600 650 700 750 800 850 900 950 Iraq Afyon #1 Nigde #1 Russia Algeria Kayseri #1 Algeria Azerbaijan Algeria Nigeria Russia Switzerland Morocco Greece Nigeria Morocco Morocco Switzerland Eskisehir #2 Jordan Mersin #1 Romania Morocco Greece U.K. Çimsa Grey – Ope
Slide 14: Çimsa Grey – Strong Export Capabilities
Çimsa Grey – Strong Export Capabilities Export Sales Volume Trend 2017 - 2020 Grey Clinker Export Grey Cement Export 1.030 931 863 514 708 474 500 352 245 291 2017 2018 2019 2019 9M YTD 2020 9M YTD www.cimsa.com.tr 14 14
Slide 15: Çimsa White – Main Application Areas
Çimsa White – Main Application Areas White Architectural Concrete White cement is the ideal material for concrete works providing an aesthetic finish whilst maintaining high structural performance. It is a versatile and durable material requiring no external treatments or coatings and can replicate
Slide 16: Çimsa White – Market Positioning
Çimsa White – Market Positioning As of today, Çimsa’s white cement sales network expands to over 60 countries through strategically located terminals and long-term distributors. Çimsa sales of white cement and clinker stood at 1.3mt in 2018. Sales in this area stood 1.35mt in 2019 with the compl
Slide 17: Çimsa White – Market Positioning
Çimsa White – Market Positioning Çimsa White Cement & Clinker Sales Regional Distribution Çimsa is within first three producers in global white cement sector. Latin America 7% Turkey MENA Çimsa’s market share in global white cement market 10% [PERCENTAGE] improved from 5,3% to 7,2% in last decad
Slide 18: Çimsa White - Overview of the Bunol Transaction
Çimsa White - Overview of the Bunol Transaction The Plant in Spain Asturias Cantabria País Galicia Vasco Foral de Navarra • Buñol is Cemex’s sole operational white cement factory in Europe. La Castilla y Rioja León • The plant had a major overhaul in 2007 and is currently among the most Aragón Catal
Slide 19: SPV Organizational Structure
SPV Organizational Structure Both SAHOL and ÇİMSA are publicly traded companies with free float rates of 45% and 42%, respectively. None of Sabancı Family Members (31 people) directly and/or indirectly controls more than 10% stake/voting rights of SAHOL, ÇİMSA and CSC BV SAHOL %5 4 % 40 %60 Çimsa Ci
Slide 20: Special Products – Çimsa Aluminates Family
Special Products – Çimsa Aluminates Family Refro: More durable and long lasting refractory applications Resisto: Resistant to chemicals, abrasion and heat. Rego: Achieve maximum performance from your calcium aluminate based recipes. Recipro: More stable and high performance dry-mix recipes w
Slide 21: Special Products – Calcium Aluminate Cement
Special Products – Calcium Alimunate Cement Special Products CAC Sales (Kton) CAC Sales (KUSD) 10.525 9.974 8.273 8.856 7.743 34 35 31 28 27 2017 2018 2019 2019 9M YTD 2020 9M 2017 2018 2019 2019 9M YTD 2020 9M YTD YTD www.cimsa.com.tr 21 21
Slide 22: Sustainability
Sustainabilty Çimsa’s ESG Goals & Contribution to SDG • Çimsa is the first company in Turkey having Integrated Report. This year it will publish its 5th Integrated Report. • Çimsa announced its ESG (Enviroment- Social-Governance) targets and contribution to SDG (Sustainable Development Goals). www.c
Slide 23: Environment Governance Social
ENVIRONMENT GOVERNANCE • Alternative fuel usage increase (7,5% 2019) • Sustainibilitiy Committee (meeting 4 times a year). • Between 2015 and 2019, rehabilitation activities were completed, 36.08 hectares of mining sites • Policies where operations had been conducted. • Integrated Management System
Slide 24: The Future for Çimsa's Business
Export Driven Revenus and Product Diversification Extensive global reach: 65 countries under its The Future for Çimsa’s Business own brand Increased focus on growing FX revenues through the investment in the first production operation abroad: White Cement Grinding Facility in Houston Diversed produc
Slide 25: Operational Results
Operational Results 25
Slide 26: 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 5,50 1,37 4,90 5,2 1,09 4,70 1,20 1,06 4,3 4,29 1,13 1,03 0,94 3,40 0,92 3 2,86 2,02 1,7 1,38 1,43 0,34 0,26 0,19 0,14 0,15
Slide 27: Operational Result – Grey Clinker Cost Structure
Operational Result – Grey Clinker Cost Structure The primary fuel cost lower than 2019 level Increase in electricity prices in the OTC market in 2020 2019 Q3 2020 Q3 2% 2% 12% -32% 13% 27% Çimsa’s average petcoke purchase costs decreased 32% in 2020 compared to 2019 in USD terms. 32% 53% 60% Raw Mat
Slide 28: Financial Results
Financial Results 28
Slide 29: Financial Result
Financial Result SEP 201 9 SEP 2020 Change Key Financial Highlights (MTL) Q3-1 9 Q3-20 Change % YTD YTD % Net Consolidated Sales 473 660 20% 1 .285 1 .632 27% Gross Margin % 1 8% 25% 1 8% 21 % Consolidated EBITDA (*) 76 1 65 1% 224 31 3 40% Consolidated EBITDA (*) Margin % 1 6% 25% 1 7% 1 9% Net Con
Slide 30: Financial Result
Financial Result Net financial debt decreased from 1,385 MTL in 2019 year end to 1,305 MTL in 2020 due to USA grinding facility investment and higher TRY equivalent of FX denominated borrowings. Net Debt 2020 Q3 Net Debt: 1.305 2019 YE Net Debt:1.385 Q3 Cash: 417 MTL YE Cash: 267 MTL NET DEBT/EBITDA
Slide 31: Financial Result
Financial Result 17% Net working capital*/ Net Sales was at 17% for 2020 Q3, increased from 21% for 2019, *13 month average Optimization of production to managing inventory levels. Strong overdue receivable management Payment term negotiations with suppliers Net working capital / Net Sales is
Slide 32: Balance Sheet
Balance Sheet MTL 2020 Q3 201 9 YE MTL 2020 Q3 201 9 YE Current Assets 1 .497 1 .054 Current Liabilities 2.080 1 .346 Cash and cash equivalents 41 7 267 Borrowings* 1 .401 880 Trade receivables 61 3 461 Short-term borrowings 1 .1 97 675 Trade receivables from related parties 2 2 Current portion of l
Slide 33: Income Statement
Income Statement 2020 Q3 Income Statement (MTL) 2020 9M 201 9 9M Q3 2020 Q3 201 9 Sales 1 .632 1 .285 660 473 Cost of sales (-) -1 .293 -1 .052 -494 -389 GROSS PROFIT 339 233 1 66 83 General and administrative expense (-) -1 27 -1 03 -36 -41 Marketing, selling and distribution expense (-) -1 3 -1 2
Slide 34: Cash Flow
MTL Cash Flow 2020 9M 201 9 9M A. CASH FLOWS FROM OPERATING ACTIVITIES 286,9 1 97,8 Profit before taxation 1 51 ,2 -1 ,0 Adjustments to reconcile net profit/loss for the period 243,2 262,9 Changes in working capital -91 ,7 -52,1 Short term trade receivables -1 56,4 -29,1 Inventories -54,0 -42,5 Othe
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