Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q2 2022 Earnings Presentation
28 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, August 2022
Slide 1: 2Q22 Results Investor Presentation
2Q22 Results Investor Presentation 1
Slide 2: Second quarter 2022 financial highlights
Second quarter 2022 financial highlights TL14.4bn TL1.4bn TL2.5bn Sales 26% QoQ EBITDA 9.7% margin Net 0,99 TL/share -13% QoQ Income 44% QoQ TL7.3bn TL12.5bn Cash 1.3x current ratio Net 2.04x net debt/ EBITDA -1% QoQ Debt 38% QoQ Hizmete Özel (Dış Taraflar) 2
Slide 3: Solid performance despite deteriorating market sentiment
Solid performance despite deteriorating market sentiment Q222 highlights Petrochemical margins retreated through the second quarter as feedstock costs firmed ahead of easing resin prices Petkim unit margins on average decreased to USD223/ton in 2Q22 from USD257/ton in 1Q22 Petkim announced its susta
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 1.532 1.320 1.200 1.461 1.424 2.600 1.433 1.380 2.400 1.292 1.249 1.303 1.271 1.229 1.294 1.187 1.116 1.256 1.254 1.259 1.194 1.123 2.200 1.218 1.173 900 2.000 1.188 1.800 1
Slide 6: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Key trends in the industry 1200 Global supply chain challenges 1000 Higher feedstock and energy costs 800 Deteriorating economic climate 600 Global petrochemical demand slowed through the second quarter as intense cost pressur
Slide 7: Industry environment
Industry environment Product groups spread (over naphtha CIF MED), USD/MT Polymers Fibers 1600 1800 1300 1400 1000 1000 600 700 200 400 -200 HDPE LDPE PP PVC MEG ACN PTA DEG Aromatics Others 1200 1000 800 900 600 600 400 300 200 0 0 Benzene Paraxylene OrthoXylene PGP Crude C4 PA PY-GAS Source: S&P G
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 -800 Deficit 2Q21 3Q21 4Q21 1Q22 2Q22 (k ton) Petrochemical consumption in Turkey (k ton) Products market share (%) Domestic consumption Petk
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) 103% 100% 98% 832 807 838 710 638 91% 100% 130% 900 100% 81% 90% 800 110% 80% 106% 80% 700 103% 353 325 353 96% 93% 600 70% 60% 254 308 60% 101% 88% 500 90% 94% 94% 87% 86 105 103 50% 40% 400 104 98 86%
Slide 11: Petrochemical product sales
Petrochemical product sales Breakdown of petchem sales (mn USD) Breakdown by percentage in 2Q22 Total petchem sales: USD913mn 317 392 219 312 267 91 110 29% Thermoplastics 98 102 56 106 Fiber 78 68 75 43% 82 92 Aromatics 71 76 67 57 Other 6% Trade 333 307 296 301 266 10% 12% 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 12: In 2Q22, Petkim achieved TL 14,286mn sales
Sales volume (ton k) Total volume: Revenue (TL mn) Total revenue: 683k ton TL14,286mn 331 6.063 2.088 68 63 857 559 1.337 21 33 34 42 639 664 628 26 19 5 17 24 649 62 260 473 5 In 2Q22, Petkim achieved TL 14,286mn sales Exports breakdown via 683k ton sales Export Revenue (TL mn) Total export: TL7,36
Slide 13: Breakdown of total COGS
Breakdown of total COGS COGS breakdown (%) Inventory gain/loss (mn USD) 2Q22 total COGS: 2Q22 inventory gain: TL12,910mn USD-13.3mn 826 925 890 901 845 727 801 725 36% Other 693 752 34% 43% 701 652 647 662 652 45% 45% 584 609 Trade 601 538 18 1% 2% 2% 2% 14 3% 501 13 2% 7% 1% Depreciation 2% 5% 3% 8
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 600 3.200 2.020 1.967 1.949 1.700 1.400 2.017 1.956 1.871 1.959 1.748 1.857 509 503 550 2.800 1.691 1.658 1.771 1.771 1.730 1.682 1.500 1.200 500 2.400 437 1.479 1.300 1.000 406 450 2.0
Slide 15: PETKIM 2Q22 income statement
PETKIM 2Q22 income statement FY Q2 TL mn Q2‘21 Q2'22 YoY Δ (%) Q1‘22 Q2'22 QoQ Δ (%) Sales 7,397 14,369 94% 11,421 14,369 26% Cost of sales (5,513) (12,910) 34% (9,746) (12,910) 32% Gross profit 1,884 1,458 (23%) 1,675 1,458 (13%) Gross profit % 25% 10% 15% 10% Marketing and sales expenses (42) (130
Slide 16: Financial highlights
Sales tonnes (k ton) Revenue (bn TL) 7,4 4,7 3,7 Export 3,6 2,7 692 644 695 683 Domestic 593 6,6 7,0 5,8 3,8 4,0 2Q21 3Q21 4Q21 1Q22 2Q22 2Q21 3Q21 4Q21 1Q22 2Q22 Financial EBITDA and net income (mn TL) Margins (%) highlights 2,4 26% 25% 1,9 1,8 1,7 1,7 1,6 EBITDA 1,6 1,3 1,4 1,4 18% margin EBITDA 2
Slide 17: Earnings decreased mainly due to sales volume and efficiency decline
Earnings decreased mainly due to sales volume and efficiency decline 2Q22 segments’ results (mn TRY) -13% Quarterly change in EBITDA (mn TRY) Pricing delta TRY-51mn 17
Slide 18: Liquidity highlights
Liquidity highlights Deposits (%) Maturity profile (mn USD) USD437mn USD500mn Eurobond is planning to be refin As first publicized via an announcement by the Capital USD TRY EUR Markets Board on March 31, 2022, the company continues 339 32% reviewing different funding alternatives, including a possi
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 approach 40% reduction by 2035 for Scop
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 2022 Key Highlights Targets Climate & Decarbonization 1% Implementation of energy efficiency and electrification initiatives to Environment decrease carbon intensity (decarbonization) Energy Conducting Energy Audits
Slide 23: Supporting Slides
Supporting Slides Hizmete Özel (Dış Taraflar) 23
Slide 24: PETKIM 2Q22 balance sheet
PETKIM 2Q22 balance sheet TL mn 3M'22 6M'22 Financial highlights 3M'22 6M'22 Cash and cash equivalents 7,330 7,277 Net debt position (9,018) (12,473) Trade receivable Working capital (2,272) (1,213) 5,680 6,220 Inventory Days sales outstanding 43 38 4,960 5,883 Other receivables 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 1.200 220 1.000 200 180 800 160 600 140 400 120 200 100 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 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Volume PETKM TI Equity XU100 Index Market capitalization Free floa
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. — Q2 2022 Earnings Presentation on 6ix