Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrochemical Holding — Investor Presentation (March 2012)
39 slides from Petkim Petrokimya Holding Anonim Sirketi's investor presentation, Mar 23, 2012
Slide 1: Petkim Petrochemical Holding Corp. Investor Presentation
PETKİM PETROCHEMICAL HOLDING CORP. INVESTOR PRESENTATION March 23, 2012
Slide 2: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 2
Slide 3: Outlook for 2011
Outlook for 2011 Global Petrochemical Industry Domestic Petrochemical Industry • Strong growth in the first quarter of 2011 • Strong demand for petrochemical products in the first quarter • Volatile product prices and squeezed margins as of second quarter of 2011 of the year • Surge in costs due to
Slide 4: Global and Domestic Petrochemical Industry 2012+
2012+ Global Petrochemical Industry Domestic Petrochemical Industry • 5,2% annual growth expectation for global demand in basic chemicals and plastics • A slower domestic demand growth is expected to edge • Especially China, Asia and BRIC countries are the driving down the global growth in 2012, com
Slide 5: Petrochemical Industry
Petrochemical Industry Global EBIT (EBIT/ton) Naphtha, Ethylene MED Prices $/mt $/Ton $/Ton Contraction in margins Ethylene (MED) Naphtha (MED) Source: CMAI Source: Platts IMPROVEMENT IS EXPECTED IN GLOBAL EBIT RATES AS OF HIGH ETHYLENE-NAPHTHA MARGIN DURING THE FIRST QUARTER OF 2011 SIGNIFICANTLY D
Slide 6: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 6
Slide 7: Petkim
PETKİM STAR Refinery TÜPRAŞ PETKİM PLANTS ADDITIONAL LAND FOR EXPANSION POTENTIAL PETKİM PORT PETROL OFİSİ 7
Slide 8: Products
Products PP Knitting yarn, sacks, carpet thread, ropes and hawsers, table cloths, napkins, BUTADIENE PROPYLENE C4 Rubber doormats, felt, hoses, radiator pipes, fishing nets, brushes, Automobile tire blankets ACN Textile fibers, artificial wool, ABS (Acrylonitrile Butadiene Styrene) resins NAPHTHA LD
Slide 9: Performance in 2011
Performance in 2011 Net Sales (USD mn) 2,339 1,943 Petkim’s net sales are 1,342 on upward trend with USD 2.339 mn in 2011. 2009 2010 2011 Sales (th. ton ) Exports (USD mn) 1,745 834 1,638 531 Exports beat record of Sales edged up to the all time with USD 1,442 347 1,745 th. tons in 2011. 834 mn. 200
Slide 10: Company Overview
Company Overview PETKİM FACILITIES • First complex established in 1965, • 15 main plants, 7 auxiliary units second complex established in 1985 • Located in Aliağa near Izmir • The sole petrochemical producer in • Sits on a land of 19 mn sqm Turkey • Harbour, water dam, power • 25% domestic market sh
Slide 11: Petkim's Ownership Structure
Petkim’s Ownership Structure Petkim Stock Performance Ownership Profile Source: Reuters Petkim Share Information (30 December 2011) Closing Price (TRY/Share) 1,97 Market Cap (TRY mn) 1.970 • Privatization process was completed in May 2008. STEAŞ Market Cap (USD mn) 1.043 Group acquired 51% stake in
Slide 12: State Oil Company of The Azerbaijan Republic (SOCAR)
State Oil Company of The Azerbaijan Republic (SOCAR) • Founded in 1992, • State Oil Company of The Azerbaijan Republic, • One of the most important oil and natural gas producer in the world, • Oil products exported to 33 countries, including USA, China, Brazil, Chile, Thailand. • «Azerikimya», «Azer
Slide 13: Products and Capacities
Products and Capacities Plant Capacities PVC 150,000 MEG 89,000 ETHYLENE 520,000 LDPE 350,000 ACN 90,000 Propylene 240,000 HDPE 96,000 PTA 70,000 C4 140,000 PP 144,000 Py-Gas 390,000 BENZENE 150,000 P-x 136,000 O-x 50,000 CHLORINE 100,000 VCM 152,000 PA 34,000 MB 10,000 Plastic Products 4,000 Power
Slide 14: Petkim: Net Sales (Volume)
Petkim: Net Sales (Volume) Net Sales (th. ton) 2011 Breakdown of Sales Volume 2011 2000 7% increase 1800 1.745 1.638 1600 1400 1200 1000 800 600 430 430 442 400 200 0 2010 2011 Q4 10 Q3 11 Q4 11 14
Slide 15: Petkim: Net Sales (USD mn)
Petkim: Net Sales (USD mn) Net Sales (USD mn) 2011 Breakdown of Sales Revenue 2011 20% increase 2.500 2.339 2.000 1.943 1.500 1.000 532 570 532 500 0 2010 2011 Q4 10 Q3 11 Q4 11 15
Slide 16: Petkim: Trading Activities
Petkim: Trading Activities Sales of Imported Products (th. ton) 2011 Sales of Imported Products (USD mn ) 2011 259% increase 300 276% increase 300 269 248 250 250 200 200 150 150 100 100 77 61 75 66 36 40 50 22 50 25 0 0 2010 2011 Q4 10 Q3 11 Q4 11 2010 2011 Q4 10 Q3 11 Q4 11 16
Slide 17: Petkim: Exports
Petkim: Exports Exports Revenues by Years (USD mn) Breakdown of Export Revenues by Product 2011 %57 increase 900 834 800 700 600 531 500 400 300 207 200 200 165 100 0 2010 2011 Q4 10 Q3 11 Q4 11 17
Slide 18: Petkim: Exports (Region)
Petkim: Exports (Region) Breakdown of Exports by Region 2011 North and Latin Caucassus America Africa and Middle 7% 4% Asia 7% Middle • Products are exported to more than 60 different East and countries. Gulf Countries • Benzene, C4, LDPE, Py-Gas and P-X are the 15% main exports products • Petkim is
Slide 19: Petkim: Product & Raw Material Prices
Petkim: Product & Raw Material Prices Petkim Thermoplastics and Naphtha Price Changes Petkim EBITDA Performance (USD mn) Index (2007 January =100) 250 195 200 145 136 150 145 99 100 95 50 46 37 45 0 -11 -5 2009 2010 2011 Q4 10 Q3 11 Q4 11 -55 Thermoplastics Naphtha Raw Material and Product Prices (U
Slide 20: Initiatives Aiming to Improve Operational Efficiencies
Initiatives Aiming to Improve Operational Efficiencies Total Production / Energy Unit Consumption W.Europe Ethylene Capacity Utilization Rates (%) Source: CMAI Efficiencies on Marketable Production Per Capita Petkim Ethylene Capacity Utilization Rates (%) Net Sales per Capita (tho USD) (Left Axis) 1
Slide 21: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 21
Slide 22: Capital Expenditures and Planned Capacity Increases
Capital Expenditures and Planned Capacity Increases Capital Expenditures of Petkim (USD mn) • Moderate gearing of capital investments instead of fully financing with equity • Increasing capacities of existing plants with minor capex- smart debottlenecking investments • Optimizing processes in the pl
Slide 23: Investment Highlights
Investment Highlights PETKİM 2002-2011 CAGR Dominant producer Thermoplastics Demand 10.1% 25% market share GDP Growth 5.9% Growth Potential in the Domestic Market Petrochemicals Domestic Demand (th. ton) 4000 3500 3000 Thermoplastics 2500 Fiber Raw Materials 2000 1500 1000 500 0 2000 2001 2002 2003
Slide 24: Carbon Management, Environment and Petkim
Carbon Management, Environment and Petkim • Participated in International • 700 hectares of wind energy Carbon Disclosure Project. production area next to • Determined greenhouse gas Petkim’s production site. emissions. • Project partner and main • Planned greenhouse gas sponsor to Conversion of red
Slide 25: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 25
Slide 26: Growth Plan and Strategy
Growth Plan and Strategy DOWNSTREAM • ADVANTAGES OF WIDE PRODUCT RANGE • HIGH VALUE ADDED SPECIALTY CHEMICALS • CLUSTER MODEL (PETKİM “VALUE-SITE”) UPSTREAM 5 PILLARS OF GROWTH PLAN STAR Refinery ENERGY (SOCAR Turkey) PRODUCTION DISTRIBUTION (SOCAR Turkey) LOGISTICS 26
Slide 27: Short Term Growth Plans
Short Term Growth Plans Capacity Increase Energy Logistics Capacity increase by: • Energy optimization study with KBC • New distribution centers • Debottlenecking and (steam and energy opt.) • Strategic partnership in port modernization investments • Fuel flexibilty in energy production business (AP
Slide 28: Mid to Long Term Growth Plans
Mid to Long Term Growth Plans “UPSTREAM” INVESTMENTS SECURING FEEDSTOCK WITH THE REFINERY INTEGRATION To be built by SOCAR&TURCAS • Allocation of 130 ha area for the refinery investment • Start of area preparation activities • 10 million tons /year crude oil capacity • Product slate: naphtha, LPG, d
Slide 29: 2023 Petkim
2023 Petkim STAR Refinery Petrochemical Production Capacity: 10 MMTPA New Petrochemical Products; BDX, XLPE Capacity Increase of Current Plants; PA, PTA, 600.000 MTPA Ethylene Production WIND ENERGY Min 25 MW Energy Production PETKİM Port Min. 1,5 million TEU Container Handling Terminal Capacity 29
Slide 30: PETKİM: Growth Strategy
PETKİM: Growth Strategy GROWING WITH LOGISTICS INVESTMENTS LOGISTICS ADVANTAGES • To become one of the key logistics main • Increasing harbor capacity and utilization terminals in the region rate • High capacity potential of container handling • Storage of various solid, liquid, and gas • High capac
Slide 31: PETKİM: Growth Strategy
PETKİM: Growth Strategy GROWTH WITH LOGISTICS INVESTMENTS A Head of Terms was signed with one of the industry-leading companies, APM Terminals BV, for the development of Petkim port. Details of Head of Terms Operating rights of port for 28 years 1st phase construction of main port by 2013, Option to
Slide 32: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 32
Slide 33: Financial Structure and Profitability
Financial Structure and Profitability Financial Indicators (USD mn, except earning per share) 2011 2010 2009 EBITDA 136 145 99 Net Profit 67 87 75 Earning per share 0.067 0.087 0.075 Net Debt / EBITDA* 0.71x (0.48x) (0.56x) (USD mn) EBITDA 2009-2011 * Net Debt is calculated by adding short-term and
Slide 34: Financial Structure and Profitability
Financial Structure and Profitability (USD mn) Shareholders’ Equity EBITDA 901 2011 136 2011 1,035 2010 145 2010 976 2009 99 2009 Total Assets Net Profit 1,414 2011 67 2011 1,537 2010 87 2010 1,403 2009 75 2009 34
Slide 35: Financial Tables
Financial Tables Income Statement (USD mn)(IFRS ) 2008 2009 2010 2011 4Q 10 3Q 11 4Q 11 Net Sales 1,795 1,342 1,943 2,339 532 570 532 Cost of Goods Sold (-) (1,822) (1,269) (1,790) (2,224) 485 (555) (557) Gross Profit (Loss) (27) 73 153 114 47 15 25 Gross Profit (Loss) Margin -1.5% 5.4% 7.9% 4.9% 8.
Slide 36: Financial Tables
Financial Tables Balance Sheet (USD mn) (IFRS) Cash&Bank Debt (USD mn) 31/12/2009 31/12/2010 31/12/2011 Cash&Cash Equivalents 116 130 77 200 167 140 131 147 137 Trade Receivables 224 268 309 150 130 99 86 77 Inventories 208 281 258 100 57 63 61 58 57 58 50 28 Other Current Assets 19 35 61 0 Current
Slide 37: Credit Rating
Credit Rating FITCH RATINGS FOREIGN CURRENCY LOCAL CURRENCY DATE LONG TERM LONG TERM NATIONAL July, 2011 BB- (stable) BB- (stable) A+ (tur) (stable) June, 2010 BB- (negative) BB- (negative) A (tur) (negative) May, 2009 BB- (negative) BB- (negative) AA- (tur) (negative) September, 2008 BB- (stable) B
Slide 38: Disclaimer
Disclaimer This presentation is confidential and 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 Holdings A.Ş. (the “Company”) or any member of its group nor should it o
Slide 39: Investor Relations
Investor Relations We welcome your questions, comments and suggestions. Our corporate headquarters office address is: Petkim Petrochemical Holding Corp. PO. Box.12 Aliağa, 35801 İzmir/ TURKEY To contact us with respect to shareholding relations for individual and corporate investors, please call dir
Petkim Petrochemical Holding — Investor Presentation (March 2012) on 6ix