Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM

Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q1 2020 Earnings Presentation

20 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: 1Q20 Results Investor Presentation

    1Q20 Results Investor Presentation Herkese Açık / Public 1

  2. Slide 2: Ethylene – Naphtha spread averaged US$ 369/ton in 1Q20

    Ethylene – Naphtha spread averaged US$ 369/ton in 1Q20 • Ethylene-naphtha spread increased by 10% from US$ 336/ton in 4Q19 to US$ 369/ton in 1Q20. • As crude oil prices have collapsed, naphtha prices have fallen sharply and the competitive advantage of ethane-based producers is significantly diminis

  3. Slide 3: PLATTs Index averaged US$ 724 per ton in 1Q20

    PLATTs Index averaged US$ 724 per ton in 1Q20 • Petrochemical product prices have declined on the back of lower feedstock prices and massive change in demand due to COVID-19 • Cyclical spreads were bottom of the cycle driven by oversupply even before the potential demand hit from COVID-19 however on

  4. Slide 4: Product group spreads (over naphtha CIF MED)

    Product group spreads (Over naphtha CIF MED), USD/MT Aromatics group spread Polymers group spread 600 400 PP 800 Weighted (right) OrthoXylene 800 300 Weighted (right) 600 400 600 Overall Overall 200 PVC 400 Paraxylene 400 LDPE HDPE 200 100 200 200 Benzene 0 0 0 0 Fibres group spread Others group spr

  5. Slide 5: Product groups and overall weighted spread

    Product groups and overall weighted spread (over naphtha CIF MED), USD/MT Product groups and overall weighted spread 800 Weighted (right) 400 600 Polymers Overall Fiber 400 Others 200 200 Aromatics 0 0 Source: Platts, Company Herkese Açık / Public 5

  6. Slide 6: Feedstock vs. Product Prices

    Feedstock vs. Product Prices Petkim - Thermoplastics & Naphtha Spread • 297Kton feedstock has been supplied from STAR 1,165 1,201 1,210 1,143 1,127 1,164 1,092 1,057 Refinery in Q120. 1,034 1,053 1,013 1,015 1,040 1,043 964 • The fall in oil prices is reflected in monomer and USD/ton 483 495 535 537

  7. Slide 7: Costs and Operational Efficiency in 1Q20

    Costs and Operational Efficiency in 1Q20 Plant Cost Base Breakdown 1Q20 Ethylene Facility Capacity Utilization Rate 7% 6% 105% 106% 105% 102% 100% 99% 98% 86% Raw material 11% Energy Labor 38% Other 76% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Total Production & Energy Consumption Sellable Produ

  8. Slide 8: In 1Q20 Petkim achieved TL 2,764mn sales via 598k ton volume

    In 1Q20 Petkim achieved TL 2,764mn sales via 598k ton volume Sales Volume (ton k) 1Q20 Volume: 598k ton Revenue (TL mn) 1Q20 Revenue: TL2,764mn 141 650 533 84 74 271 42 42 208 223 36 34 29 174 24 20 18 140 148 19 18 18 113 85 60 70 61 28 Export Revenue (TL mn) 1Q20 Export Revenue: TL1,067mn 335 174

  9. Slide 9: Turkey thermoplastics consumption increased by 11% in 1Q20 compared to 4Q19

    Turkey thermoplastichs consumption increased by 11% in 1Q20 compared to 4Q19. Ton k PVC LDPE 15% 20% 22% 18% 51% 54% 52% 51% 605 546 v 252 279 246 238 75 111 137 69 42 33 72 148 156 65 2018 2019 2019Q4 2020Q1 2018 2019 2019Q4 2020Q1 HDPE PP 12% 13% 15% 7% 7% 8% 7% 12% 566 558 1,794 1,646 489 78 86 1

  10. Slide 10: Fiber consumption in Turkey increased by 9% in 1Q20 compared to 4Q19

    Fiber consumption in Turkey increased by 9% in 1Q20 compared to 4Q19. Ton k ACN MEG 30% 36% 50% 36% 18% 20% 17% 14% 187 v 270 302 v 79 150 86 58 78 29 19 16 91 78 15 30 33 2018 2019 2019Q4 2020Q1 2018 2019 2019Q4 2020Q1 PTA 15% 20% 18% 15% 479 552 v 141 84 145 31 172 29 2018 2019 2019Q4 2020Q1 Turke

  11. Slide 11: Turkish Market – Others

    Turkish Market – Others Ton k PX PA 30% 32% 29% 71% 57% 32% 62% 32% v 35 37 v 130 117 51 60 28 10 14 13 7 31 31 14 15 6 2018 2019 2019Q4 2020Q1 2018 2019 2019Q4 2020Q1 Turkey’s Import Domestic Consumption Petkim/Domestic Sale Domestic Market Share % Source: TURKSTAT, Company Herkese Açık / Public 11

  12. Slide 12: PETKIM 1Q20 Income Statement

    PETKIM 1Q20 Income Statement TL mn 3M'19 3M'20 Sales 2,832 2,766 Cost of sales (2,499) (2,561) Gross Profit 334 205 Gross profit % 11.8% 7.4% Marketing and sales expenses (24) (28) General admin. Expenses (87) (101) R&D Expenses (6) (7) Operating profit 217 69 Other income / (expenses) 61 73 Financi

  13. Slide 13: PETKIM 1Q20 Balance Sheet

    PETKIM 1Q20 Balance Sheet TL mn 12M19 3M20 Cash and cash equivalents 4,037 3,677 Trade receivables 1,552 1,421 Inventory 929 903 Other receviables 13 7 Other current assets 3,015 3,397 Current assets 9,547 9,405 Non current assets 5,255 5,465 Total Assets 14,801 14,870 Short term borrowings 4,037 3,

  14. Slide 14: Financial Performance

    Financial Performance Revenue (mn TL) EBITDA, Net Income and EBITDA Margin (mn TL) 2,000 16% 18% 14% 16% 4,666 1,500 14% 3,797 1,523 1,589 12% 12% 1,000 10% 7% 6,889 836 761 8% 5,759 50 0 1,266 1,044 6% 1,584 1,710 338 144 205 4% -10 - 2018 2019 Q119 Q120 2018 2019 Q119 Q120 2% (500) 0% Domestic Sal

  15. Slide 15: Balance Sheet Analysis

    Balance Sheet Analysis Outstanding Outstanding principial Loan T y pe Loan T y pe Currency principial (Original Deposits - by currency currency ) (USD) Maturity Profile* (mn US$) Inv estment EUR 34.87 38.28 Inv estment USD 25.45 25.45 546 559 Long-term loan Project Finance USD 1 89.23 1 89.23 TRY Eu

  16. Slide 16: 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

  17. Slide 17: Appendix 1. Petrochemical Complex Flow Chart

    Appendix 1. Petrochemical Complex Flow Chart Petkim has fully integrated operations LDPE Bag, greenhouse covers, film, cable, toys, pipes, (350,000 ton/year) bottles, hose, packaging HDPE Construction and water pipes, packaging film, Ethylene Plant (96,000 ton/year toys, bottles, soft drink crates,

  18. Slide 18: Appendix 2. PETKIM Stock Performance

    Appendix 2. PETKIM Stock Performance PETKIM STOCK PERFORMANCE 350 Th Unit 500,000 330 450,000 310 290 400,000 270 350,000 250 300,000 230 210 250,000 190 200,000 170 150 150,000 130 100,000 110 50,000 90 70 0 12/16 05/17 09/17 01/18 06/18 10/18 02/19 07/19 11/19 03/20 Volume Petkim BİST 100 Closing

  19. Slide 19: 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, 35800 İzmir/ TURKEY To contact us with respect to shareholding relations for individual and corporate investors, please call dir

  20. Slide 20: 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

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