Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2022 Earnings Presentation
46 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2022
Slide 1: Investor Presentation 2022
INVESTOR PRESENTATION 2022
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by CIMSA reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever o
Slide 3: A Diversified Cement Player
A Diversified Cement Player Grey Cement White Cement Aluminate Cement Transformation & Big Data Analytics Management, Cultural Transformation and Building Sustainability www.cimsa.com.tr 3
Slide 4: Market Outlook
Market Outlook
Slide 5: Turkish Cement Market
Turkish Cement Market 2022 Q1 GDP increased by 7,3% 16,1% y-o-y* GDP Growth Rate % 23,20% 21,7% 19,4% 16,0% 11,2% 10,2% 14,0% 9,1% 9,9% 12,0% 11,1% 11,0% 4,8% 4,6% 4,7% 6,00% 9,0% 1,6% 10,0% 8,5% 8,5% 7,5% -0,1% 8,0% 7,1% 6,1% 2,1% 6,0% 5,0% 4,8% 5,2% 0,8% 3,2% 3,0% -10,8% 4,0% 1,8% -6,0% 2,0% 0,9%
Slide 6: Turkish Cement Market
Turkish Cement Market Turkey is the biggest cement producer in Europe, with high capacity utilization rates. Turkey has also 2nd place in World cement export. 100 Mt Cement & Clinker Export (mt) production capacity is 100 Mt Cement & Clinker Domestic Sales (mt) in 2021. Cement Production Capacity (m
Slide 7: Turkish Cement Market
Turkish Cement Market 3% market share based on clinker capacity 23% 13% 13% 10% 7% 7% 6% 5% 5% 5% 5% 4% 4% 4% 3% Oyak Limak Nuh As Vicat Medcem Votorantim Others Anadolu 7
Slide 8: Global White Cement Market
Global White Cement Market Global White Cement Consumption (Mt CC) 21,0 21 20 20 20 20 20 20 20 19 20 20 19 ▪ Global white cement demand is stable at around 20 Mt CC level 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 www.cimsa.com.tr 8 Source: CW Global White Cement Report, OneSt
Slide 9: 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, while global white Russia & cement consumption is around 20 Mt . Eastern Europe Northern 6% America 7% ▪ China and Middle East regions have the highest Latam
Slide 10: Overview of Çimsa
Overview of Gimsa wwwoimsacomtr
Slide 11: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Aluminated Cements ✓ Establishing a strong & profitable core sification ✓ Export driven revenues and product ✓ Export driven revenues and product ✓ Optimise grey operations - completed diversification diversification ✓ Becoming Global Leader in White Cement
Slide 12: Çimsa Grey – Solid Network with Efficient Plants
Çimsa Grey – Solid Network with Efficient Plants 6.2 3.6 Mt 3.6 Mt Grey Clinker Capacity AFYON 1.6 1.7 Mt 3 Integrated Plants in 1.7 Mt White Mersin, Eskişehir, Afyon Clinker Capacity www.cimsa.com.tr 12
Slide 13: Çimsa Grey – Operational Excellence
Çimsa Grey – Operational Excellence May 2022 December 2021 May 2021 AF Usages Afyon AF Plant operational in Feb 2022 Alternative Fuel Investment Supports Financial Performance www.cimsa.com.tr 13 13
Slide 14: The Future for Çimsa's Business
The Future for Çimsa’s Business Export Driven Revenus and Product Diversification Extensive global reach: 65 countries under its 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 15: Çimsa Grey – Strong Export Capabilities
Çimsa Grey – Strong Export Capabilities Export Sales Volume Trend 2018 - 2022 Grey Clinker Export Grey Cement Export 1.030 1.036 957 708 710 707 599 474 483 385 252 291 2018 2019 2020 2021 H1-2021 H1-2022 www.cimsa.com.tr 15
Slide 16: 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 17: Çimsa White – Market Positioning
Çimsa White – Market Positioning ▪ As of today, white cement sales network expands to over 60 countries through strategically located terminals and long-term distributors. ▪ 7mt in 2021 with the completion of the white line expansion in the plant and the commercial start of the grinding station in H
Slide 18: Çimsa White – Market Positioning
Çimsa White – Market Positioning Distribution ▪ second biggest white cement producer position as well as leader together Latin America 7% with Cementir in global white cement trade. Turkey 10% MENA 26% ▪ Northern America improved from 5,3% to 7,2% in last decade. 12% Russia & Western Europe Eastern
Slide 19: Çimsa White - Overview of the Bunol Plant
Çimsa White - Overview of the Bunol Plant The Plant in Spain Asturias Cantabria País Galicia Vasco Foral de Navarra • The acquisiton of the plant is completed as of July 2021 with an amount of 155 MUSD La by Cimsa Sabanci Cement BV* Castilla y Rioja León Aragón Cataluña • Clinker production capacity
Slide 20: Cimsa Sabanci Cement BV - Organizational Structure
Cimsa Sabanci Cement BV - Organizational Structure Both Holding and are publicly traded companies with free float rates of 45% and 42%, respectively. None of Family Members (31 people) directly and/or indirectly controls more than 10% stake/voting rights of Holding, and Cimsa Cement BV www.cimsa.com
Slide 21: Special Products – Calcium Aluminate Cement - CAC
Special Products – Calcium Aluminate Cement - CAC Market Dynamics Main Areas of Usage Calcium Aluminate Cement provides high stability & performance with, - High early strength - Resistance to chemicals - High final strength - Resistance to abrasion Construction Chemicals 63% Refractory 29% Special
Slide 22: Special Products – CAC Capacity Increase
Special Products – CAC Capacity Increase ▪ Additional 66 kt/year capacity ▪ R&D center with global standards located in Germany ▪ Regional sales and technical support team ▪ Additional customer oriented product development ▪ Full capacity utilization in five years ▪ Reaching ~10% global market share
Slide 23: Special Products – Calcium Aluminate Cement
Special Products – Calcium Alimunate Cement Special Products CAC Sales (Kton) CAC Sales (KUSD) 13.910 12.114 51 10.525 9.974 41 8.140 34 35 7.392 27 27 2018 2019 2020 2021 H1-2021 H1-2022 2018 2019 2020 2021 H1-2021 H1-2022 www.cimsa.com.tr 23
Slide 24: Sustainability Management at Çimsa
Sustainability Management at Çimsa has restructured the Sustainability Management Committee in order to develop the sustainable business model it focuses on, to strengthen its strategy for the future and to manage it strongly within the company. The aim of the Sustainability Management Committee is
Slide 25: Sustainability Strategy
Sustainability Strategy www.cimsa.com.tr 25
Slide 26: 2021 Integrated Annual Report
2021 Integrated Annual Report 6th Integrated Annual Report, granted the Golden Stevie at the International Stevie Awards Important Highlights • Data Sets →SASB standard → GRI standard • Value creation model • Roadmap to the climate crisis • Customer experience and sustainable business models • Clima
Slide 27: Six Priority SDGs for Çimsa
SIX PRIORITY SDGS FOR ÇİMSA Sustainable Development Goals at Çimsa announced its ESG (Enviroment- Social-Governance) targets and contribution to SDG (Sustainable Development Goals). www.cimsa.com.tr 27
Slide 28: We shape today for tomorrow
Our 2030 Sustainability Climate Crisis and Governance and Targets Sustainable Business Society and Human Focus Digitalization Models 22% We create sustainable Reduction of net specific CO2 Zero emissions on cementitious product Fatal Accidents stakeholder value through basis low-carbon economy- 40%
Slide 29: Çimsa's ESG Approach - Environment
Çimsa’s ESG Approach - Environment In 2021, the CDP (Carbon Disclosure Project) In 2021, 3.1% reduction (23 kg Climate Change Report score was increased from B- to B and received B score in the CDP CO2/cementitious) was achieved in Water Report. , net specific CO 2 emissions. For 2022, CDP reports h
Slide 30: Çimsa's ESG Approach - Environment
Çimsa’s ESG Approach - Environment The autonomous crane-fed waste feeding system at the Afyon Plant Investment completed in February 2022. Facility-based IREC Certificate The solar power plant investment at the Afyon Plant, with an was obtained from EnerjiSa for installed power of 3.3 MW and an annu
Slide 31: Çimsa's ESG Approach - Social
Çimsa’s ESG Approach - Social In 2021, Corporate Social As part of the follow-up, Responsibility Investment worth implementation and rewarding of 530,000 TL was made. new creative ideas of employees In 2021, the number of female employees increased by 16%. with Ya TutarSA, 1,534 new ideas According
Slide 32: Çimsa's ESG Approach - Governance
Çimsa’s ESG Approach - Governance is on the EcoVadis platform to meet customer 1 new policies have been demands. With new answers, published in order to improve increased its score from the ESG scoring mechanisms in 47 to 60. Within the scope of Borsa the Governance area. Istanbul Sustainability Ind
Slide 33: Operational Results
Operational Results \Wwww.clmsa.com.tr
Slide 34: 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 1,72 5,78 1,5 5,6 1,39 1,39 1,50 4,9 1,29 1,13 1,20 4,30 4,7 4,22 0,86 0,90 3,90 0,76 0,79 3,00 2,93 2,64 1,84 1,90 0,26 1,70 1,70 1,5
Slide 35: Operational Result – Grey Clinker Cost Structure
Operational Result – Grey Clinker Cost Structure 2021 H1 2022 H1 2% 3% 10% 8% 25% Petcoke purchase prices increased 25% significantly according to 2021 due to increase in pace prices in the market 63% 64% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other www.cimsa.com.tr 35
Slide 36: Financial Results
Financial Results wwweimsacomtr 28
Slide 37: Financial Result
Financial Result DEC-21 Key Financial Highlights (MTL) Q2-21 Q2-22 Change % JUN-21 JUN-22 Change % YTD Net Consolidated Sales 1 002 2240 1 23% 1 642 3595 1 1 9% 3.745 Gross Margin % 24% 23% -1 ,1 4pp 23% 1 9% -3,93pp 1 9% Consolidated EBITDA (*) 221 471 1 1 3% 357 608 70% 646 Consolidated EBITDA (*)
Slide 38: Financial Results
Financial Results Net financial debt increased from 1.053 MTL in 2021 year end to 1.595 MTL in 2022 due to higher TRY equivalent of FX denominated borrowings. Net Debt 2022 H1 Net Debt: 1.595 2021 YE Net Debt:1.053 Q1 Cash: 647 MTL YE Cash: 258 MTL Net Debt/EBITDA 5,4 As of July 2022 Cimsa is at net
Slide 39: Financial Results
Financial Results Net working capital*/ Net Sales was at 17% for 2022 Jun *13 month average 17% ✓ Optimization of production to managing inventory levels ✓ Strong overdue receivable management ✓ Payment term negotiations with suppliers 2022 Working Capital 28% 21% 15% 15% 27% 15% 17% Net working cap
Slide 40: Key Investment Messages
Key Investment Messages ✓ Diversified cement player with special focus on white cement and CAC ✓ A strong grey cement player with a balanced and diversified portfolio ✓ ✓ Solid balance sheet with disciplined risk management initiatives ✓ ESG pioneer in Turkish Cement industry
Slide 41: Appendix – Financial Statements
Appendix – Financial Statements 28
Slide 42: Balance Sheet
Balance Sheet MTL 2022 Q2 2021 YE MTL 2022 Q2 2021 YE Current Assets 3.986 2.240 Current Liabilities 4.256 1 .936 Cash and cash equivalents 647 258 Borrowings* 2.267 957 Trade receivables 1 .487 901 Trade payables 1 .362 647 Other receivables 1 1 Derivative financial liabilities 0 28 Derivative fina
Slide 43: Income Statement
Income Statement 2022 Q2 Income Statement (MTL) 2022 6M 2021 6M Q2 2022 Q2 2021 Sales 3.595 1 .642 2.240 1 .002 Cost of sales (-) -2.91 2 -1 .265 -1 .733 -764 GROSS PROFIT 683 377 507 238 General and administrative expense (-) -1 31 -75 -64 -44 Marketing, selling and distribution expense (-) -6 -7 -
Slide 44: Cash Flow
Cash Flow MTL 2022 6M 2021 6M A. CASH FLOWS FROM OPERATING ACTIVITIES 1 52,5 -1 63,0 Profit before taxation 725,0 698,2 Adjustments to reconcile net profit/loss for the period -33,5 -31 3,2 Changes in working capital -581 ,7 -531 ,2 Cash flows from operations 1 09,8 -1 46,2 Interest received 56,6 1
Slide 45: Appendix
Appendix – 28
Slide 46: Çimsa Cement – History and Development
Çimsa Cement – History and Development rst A new White clinker line with Northern Cyprus second line was Became the first and Grey-White HotDisc (Waste convertible 600.000 tons/year capacity commissioned. With the terminal was acquired. Feeding and Waste only Turkish company convertible line acquisi
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