Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q4 2021 Earnings Presentation
28 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, 2022
Slide 1: 4Q21 Results Investor Presentation
4Q21 Results Investor Presentation 1
Slide 2: A strong set of results reflecting the strength of Petkim’s positioning
A strong set of results reflecting the strength of Petkim’s positioning TL9.6bn TL1.7bn TL1.6bn Sales 42% QoQ EBITDA 18,3% margin Net 2.15TL/share 26% QoQ Income -5% QoQ TL3.7bn TL8.1bn Cash 2.6x current ratio Net 1.30x net debt/ EBITDA -29% QoQ Debt 83% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Tight supply and strong demand propelled to profitability to record high
Tight supply and strong demand propelled to profitability to record high Full year 2021 highlights Petrochemical prices surged to record highs, overshooting sustainable long term equilibrium price where supplies were pinched Petchem unit margins on average was USD376/ton in 2021 compared to USD126/t
Slide 4: Industry Environment
Industry Environment Global petrochemical market Petrochemical market in Turkey Hizmete Özel (Dış Taraflar) 4
Slide 5: Industry environment
Industry environment Monthly naphtha - ethylene spread (CIF MED spot prices) Monthly average Platts index* USD/tonne USD/tonne 1.188 1.303 1.433 2.300 1.180 1.229 1.294 1.187 1.256 1.254 1.259 1.194 2.100 1.147 1.143 1.213 1.116 1.900 1.138 1.132 1.116 1.109 1.110 1.114 1.115 1.700 800 1.500 1.070 1
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Global petrochemical markets eased towards more balanced position as demand easing against normalizing supply as 1300 operational reliability of crackers improved 1100 Global supply chain disruption 900 Rising feedstock and en
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Polymers 2000 Fibers 1300 1600 1200 1000 800 700 400 400 0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Jan-20 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21
Slide 8: Turkey’s petrochemical sector overview
Turkey’s petrochemical sector overview Turkey domestic demand is primarily met by imports Surplus (k ton) PVC LDPE HDPE PP ACN MEG PTA PA P-X 0 -200 -400 -600 Deficit 1Q21 2Q21 3Q21 4Q21 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (%) Domestic consumption Petkim domesti
Slide 9: Operating and Financial Results
Operating and Financial Results Hizmete Özel (Dış Taraflar) 9
Slide 10: Capacity utilization and gross production
Capacity utilization and gross production Capacity utilization rates (%) Gross production (k ton) 100% 103% 100% 98% 814 832 807 838 100% 130% 900 100% 90% 800 110% 80% 106% 80% 700 103% 331 353 325 353 70% 96% 60% 600 60% 101% 500 99% 94% 94% 100 86 103 50% 105 90% 40% 400 86% 58 67 52 48 40% 83% 3
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 4Q21 Total petchem sales: USD850mn 317 219 312 208 91 Thermoplastics 110 98 37% 35% Fiber 74 56 78 68 61 82 Aromatics 71 76 57 Other Trade 333 307 296 276 9% 11% 8% 1Q21 2Q21 3Q21 4Q21 Thermoplastics Fiber Aro
Slide 12: In 4Q21, Petkim achieved TL 9,484 mn sales via 695k ton
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 695k ton TL9,484mn 292 3.513 1.607 77 65 734 664 37 27 37 42 27 645 23 19 4 21 5 20 598 380 366 338 21 190 27 256 143 In 4Q21, Petkim achieved TL 9,484 Exports breakdown mn sales via 695k Export Revenue (TL mn) Total export: TL3,736mn
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 4Q21 total COGS: 4Q21 inventory gain: TL7,580mn USD13.4mn 750 12,0 725 693 700 10,0 43% Other 662 37% 34% 652 647 652 45% 650 8,0 Trade 609 2% 2% 2% 4% 3% 2% Depreciation 600 584 6,0 5% 2% 5% 3% 8% 552 538 5% Labour costs 550 4,
Slide 14: Feedstock vs. product prices of Petkim
Feedstock vs. product prices of Petkim Thermoplastics and naphtha spread Petchem unit margins* USD/tonne USD/tonne 3.200 1.700 1.400 800 2.071 2.020 1.959 2.800 2.017 1.956 1.871 700 1.771 1.771 1.500 1.200 1.599 1.691 1.658 2.400 1.518 509 600 1.477 1.479 1.300 1.000 473 503 437 2.000 1.371 1.294 1
Slide 15: PETKIM 4Q21 income statement
PETKIM 4Q21 income statement FY 4Q TL mn 4Q‘20 4Q'21 YoY Δ (%) 3Q‘21 4Q'21 QoQ Δ (%) Sales 4,088 9,550 134% 6,735 9,550 42% Cost of sales (3,320) (7,580) 128% (5,383) (7,580) 41% Gross profit 768 1,971 155% 1,352 1,971 46% Gross profit % 19% 21% 20% 21% Marketing and sales expenses (37) (156) 326% (
Slide 16: Strong positive pricing delta derives EBITDA growth
Strong positive pricing delta derives EBITDA growth 4Q21 segments’ results (mn TRY) 26% Quarterly change in EBITDA (mn TRY) Pricing delta TRY100mn 16
Slide 17: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 3,7 Export 3,6 2,7 637 692 644 695 1,7 Domestic 5,8 3,3 3,8 4,0 1Q21 2Q21 3Q21 4Q21 1Q21 2Q21 3Q21 4Q21 Financial EBITDA and net income (mn TL) Margins (%) highlights 1,9 25,6% 1,7 1,7 24,3% 25,1% 1,6 1,3 1,4 EBITDA 1,2 18,3% margin 0,9 EBITDA 20,5% Net income Ne
Slide 18: Liquidity highlights
Liquidity highlights Deposits (%) Maturity profile (mn USD) USD275mn USD TRY EUR Short term USD500mn 41% 42% Eurobond is Eurobond 500 expected to refin Long term 164 33 29 33 41 40 25 2 17% 2022 2023 2024 2025 2026 2027 2028 Cash flow from operations and CAPEX (mn USD) Net debt position (mn TL) 60 1
Slide 19: Sustainability and ESG
Sustainability and ESG Hizmete Özel (Dış Taraflar) 19
Slide 20: Our sustainability strategy will be built on two pillars
Our sustainability strategy will be built on two pillars Climate/CO2 Targets3 3 2 Long- term 1 2030 onwards Mid-term Achieve long term decarbonization targets Short-term 2 2025-2030 for decreased emissions: Decarbon- 2021-2025 Develop internal carbon pricing 40% reduction by 2035 for Scope 1 & 21
Slide 21: Ranking 8th among 206 players in the commodity chemicals
Petkim completed the assessment with a score of 22.7 Ranking 8th among 206 players in the commodity chemicals ESG Risk Rating 22.7 Medium Risk Sustainalytics ESG Risk Rating Ranking NEGL LOW MED HIGH SEVERE Rank Percentile (1st = lowest risk) (1st = lowest risk) 0-10 10-20 20-30 30-40 40+ Global Uni
Slide 22: Sustainability key performance indicators – 2021 & 2022
Sustainability key performance indicators – 2021 & 2022 Stakeholder related targets1 2021 2021 2022 Key Highlights Targets Results Targets Climate & Decarbonization 1% 4,7% 1% Implementation of energy efficiency and electrification initiatives to Environment decrease carbon intensity (decarbonizatio
Slide 23: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 23
Slide 24: PETKIM 4Q21 balance sheet
PETKIM 4Q21 balance sheet TL mn 12'20 12'21 Financial highlights 12M'20 12M'21 Cash and cash equivalents 5,502 3,665 Net debt position (4,394) (8,106) Trade receivable 1,717 5,167 Working capital (528) 3,188 Inventory 959 3.540 Days sales outstanding 45 43 Other receivables 4 27 Days payable outstan
Slide 25: Diversified business profile through ancillary infrastructure and energy investments
Diversified business profile through ancillary infrastructure and energy investments Description Benefits to Petkim Turkey’s first privately constructed Refinery Lower naphtha procurement costs Target processing capacity of 10m tons p.a. Replacement of some of the heavy naphtha feedstock wit
Slide 26: Petrochemical complex flow chart
Petrochemical complex flow chart Petkim has fully integrated operations LDPE (350,000 ton/year) Bag, greenhouse covers, film, cable, toys, pipes, bottles, hose, packaging HDPE (96,000 ton/year Construction and water pipes, packaging film, toys, bottles, soft drink crates, barrels Ethylene plant MEG
Slide 27: PETKIM stock performance
PETKIM stock performance Mn unit 1200 200 1000 180 800 160 600 140 400 120 100 200 80 0 Jan-21 Jan-21 Mar-21 Apr-21 May-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Volume PETKIM BIST 100 Market capitalization Free float Closing price (TL/share) (TL mn) (%) 7.80TL TL 19,76 49.0%
Slide 28: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Petkim Petrokimya Holding A.Ş. (the “Company”) or any member of its group nor should it or any part of it form
Petkim Petrokimya Holding A.Ş. — Q4 2021 Earnings Presentation on 6ix