Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q2 2014 Earnings Presentation
40 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2014
Slide 1: CIMSA 2014 2nd Quarter Investor Relations Presentation
CIMSA 2014 2st Quarter Investor Relations Presentation
Slide 2: Disclaimer
Disclaimer “Çimsa Çimento Sanayi ve Ticaret A.Ş.” (CIMSA) may, when necessary, make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. CIMSA discloses information through its Disclosure Policy and has shared this policy with
Slide 3: Agenda
Agenda ▪ 2014 Market Overview Global Cement Market...................... Page 1-4 Turkish Cement Market.................... Page 5-12 ▪ CIMSA/ About Us Operational Facts........................... Page 13-20 Financial Facts................................ Page 21-27 Achievements.....................
Slide 4: 2014 Market Overview: Global Cement Market
2014 Market Overview Global Cement Market
Slide 5: Global Cement Market
Global Cement Market • Global consumption volume is expected to be around 4.1 billion tons in 2014, reflecting 4,7 % growth YoY (CAGR 7,1% btw. 2002-2014E) 4,7% 7,1% 8,3% 4,2% 5,8% 10,4% 6,0% 2,4% 7,6% 9,9% 7,7% 7,9% 9,7% 4,1 4,0 3,6 3,7 3,3 2,8 3,0 2,6 2,8 2,2 2,3 1,8 2,0 2002 2003 2004 2005 2006 2
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is expected to be around 8% in 2014 15% 10% 10% 10% 10% 9% 8% 7% 7% 7% 6% 6% 6% 4% 5% 3% 2% 2% 2% 2% 0% 2% 2% -3% 1% 0% 0% -1% 0% -0% -5% -2% -3% -10% -9% Developed Countries* -15% Developing Countries (Exc. China) -20% -17%
Slide 7: Global Cement Market
Global Cement Market • China’s consumption is nearly 60% of the global consumption, • Steady growth is expected in emerging markets 2013 Global Regional 2014E Global Regional Consumption Consumption 3% 2% 3% 2% 3% 3% China 34% Western Europe* 35% Developed Far East** 58% North America 57% Rest of th
Slide 8: Global Cement Market
Global Cement Market • Top 10 cement consumers (by Mt volume), • The listing is expected to be same in 2014 1 China 2.160 2.290 2 India 3 USA 4 Brazil 5 Russia 242 265 6 Iran 7 Turkey 81 83 69 63 73 67 65 8 Indonesia 59 58 55 53 51 63 59 57 54 9 Saudi Arabia 10 Egypt 2012 2013E Source: Global Cement
Slide 9: 2014 Market Overview: Turkish Cement Market
2014 Market Overview Turkish Cement Market
Slide 10: Turkish Cement Market
Turkish Cement Market • Cement sector is correlated with GDP and sector growth is expected to be parallel to GDP growth in 2014 25,0% 22,0% 19,4% 20,0% 15,7% 18,5% 18,3% 15,0% 14,1% 11,3% 13,9% 9,4% 9,3% 9,2% 11,2% 10,0% 10,0% 6,8% 6,2% 7,8% 5,7% 7,1% 3,5% 5,3% 9,1% 8,4% 8,5% 2,2% 5,0% 6,9% 4,7% 3,5
Slide 11: Turkish Cement Market
Turkish Cement Market • There is a positive correlation between GDP per capita and cement consumption • The cement consumption per capita is expected to continue rising in 2014 12.000 1000 10.782 10.444 10.428 10.459 900 10.003 10.000 9.247 8.561 800 836 771 764 700 8.000 7.597 696 7.036 645 600 624
Slide 12: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area is increased by 10% to 168 mn m2, in 2013 YoY • The increasing trend continues in 2014 176,4 168,2 153,0 122,9 125,1 123,6 106,4 103,8 100,7 69,7 63,0 45,5 36,2 33,3 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 2014 Q
Slide 13: Turkish Cement Market
Turkish Cement Market • The total cement and clinker consumption rised by 14% in 2014 Jan-May, mainly in Marmara, Mediterranean & South Eastern regions 30,0 26% 26% 22% 25,0 14% 20,0 14% 10% 15,0 4% 10,0 5,0 -6% 0,0 Marmara Aegean Mediterranean Black Sea Central East Anatolia South East Total Anatol
Slide 14: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 90 81 75 77 80 73 69 72 70 12 12 63 19 14 13 60 20 49 51 50 46 15 42 41 43 8 40 7 40 11 11 10 10 63 65 30 9 56 58 51 20 43 45 43 43 36 27 28 31 25 10 0 2001 2002 2003 2004 2005 2006 2007 200
Slide 15: Turkish Cement Market
Turkish Cement Market • 5.6 Mt cement & clinker has been exported from Turkey in Q2 2014, while it was 7.1 Mt in Q2 2013. 2013 January-June 2014 January-June Total Export: 2013 : 7.1 mton 2014 : 5.6 mton 58% 52% 12%10% 8% 10% 7% 9% 5% 7% 6% 5% 4% 7% MENA CIS West Africa Central and South Western Eur
Slide 16: Turkish Cement Market
Turkish Cement Market • A cement market with domestic & foreign players; 49 integrated cement plants & 18 grinding stations Main foreign players: • Vicat • Cementir Main domestic players: • Votorantim • Çimsa • As Joint Venture • Oyak • Aşkale players: • Nuh • Batıçim • Akçansa & Heidelberg Source:
Slide 17: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 18% market share Akçansa 10% Others 21% Çimsa 8% Votorantim 4% Oyak 12% Vicat 5% Cementir 6% Limak 8% Sanko 6% As 6% Aşkale 7% Nuh 6% 8% of the market belongs to CIMSA Source: Sabanci Cement Group, TÇMB, Company
Slide 18: CIMSA/About Us: Operational Facts
CIMSA/About Us Operational Facts
Slide 19: Operational Facts
Operational Facts • 5,5 Mt clinker capacity (including 1,1 Mt of white clinker) 13
Slide 20: Operational Facts
Operational Facts • 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon • 1 grinding station in Ankara, • 2 Cement packing terminals in Marmara and Malatya Marmara Eskişehir Ankara Afyon Kayseri Malatya Denizli Niğde Mersin Antalya 2 14
Slide 21: Operational Facts
Operational Facts • One of the first top three white cement player • An international cement manufacturer with its terminals all around the world CIMSA has international terminals in Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Famagusta (TRNC), Constanta (Romania) and Novo
Slide 22: Operational Facts
Operational Facts • Total clinker and cement production increased by 1 % and total cement & clinker sales decreased by 4 % when compared YoY Key Operational Figures in Q2 2014 2013 Grey clinker production (kton) 2.166 2.127 White clinker production (kton) 484 487 ISIDAÇ-40 (kton) 16 15 Grey cement &
Slide 23: Operational Facts
Operational Facts • YoY sales volume decreased by 3,8% with a grey cement&clinker sales of 2,6 Mt, and a white cement&clinker sales of 0,6 Mt in Q2 2014 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) Grey Cement Domestic Sales: 07-13 CAGR: 10% 0,6 0,5 0,5 1,2 0,5
Slide 24: Operational Facts
Operational Facts • Grey cement average domestic price is 125TL(Export price: 46$) • White cement average domestic price is 226TL(Export price: 100$) in Q12014 Grey Cement Domestic/Export Average Price Trend 105 110 106 125 99 101 85 80 88 Domestic Prices TL/t 64 71 50 52 46 Export prices $/t_FOB 49
Slide 25: Operational Facts
Operational Facts • CIMSA is assumed to serve around 2,5% of the RMC market as of 2Q 2014 (2,7% in 2012) Ready Mix Concrete Sales Volumes (M m3) 3,5 2,6 2,6 3,0 2,7 2,3 1,6 1,4 1,3 07 08 09 10 11 12 13 2Q13 2Q14 There are 540 players & 980 plants in the market, CIMSA serves with 28 RMC plants CIMSA
Slide 26: Operational Facts
Operational Facts • CIMSA increased its exports to MENA region, Western Europe, South and North America in 2014 2013 January-June 2014 January-June Total Export 2013 : 0.8 mton 2014 : 0.6 mton 43% 34% 30% 19% 18% 14%14% 8% 8% 4% 5% 2% 0% 0% MENA Western Europe CIS Eastern Europe South America North
Slide 27: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 28: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated 6 months profit reached to 99 mn TL in 2014 Key Financial Higlights (TL) 30.06.2014 30.06.2013 Paid in capital 135.084.442 135.084.442 Total equity 1.072.786.592 1.042.967.670 Net consolidated sales 535.190.184 468.896.495 Operational consolidated
Slide 29: Financial Facts
Financial Facts CIMSA’s cumulative consolidated net sales reached to 535 mn TL in Q2 2014 Domestic Sales: 954 08-13 CAGR: 13% 857 801 250 709 239 217 611 614 196 535 210 228 469 138 135 704 584 618 513 Domestic 401 386 398 334 Export Total 2008 2009 2010 2011 2012 2013 2Q2013 2Q2014 In 2Q2014, 26% o
Slide 30: Financial Facts
Financial Facts CIMSA cement sales constitutes 79% of the total net sales in Q2 2014 (In Q2 2013; 77%) Q2 2014 Cement & RMC Net Sales Breakdown Q2 2013 Cement & RMC Net Sales Breakdown (mn TL) (mn TL) 21% 23% 79% 77% Cement RMC In Q2 2014, 21% of the total consolidated net sales is from RMC sales (I
Slide 31: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 157 mn TL in Q2 2014 (Q1 2013: 106 mn TL) 250 40% 37% 236 35% 200 214 210 29% 29% 29% 30% 26% 201 182 25% 25% 25% 176 176 23% 25% 150 157 20% 100 106 15% 10% EBITDA 50 5% EBITDA Margin % 0 0% 2007 2008 2009 2010 2011 2012 2013 2Q2013 2Q2014 EBITDA Ma
Slide 32: Financial Facts
Financial Facts Cumulative consolidated net profit is 99 mn TL in Q2 2014 (Q2 2013: 218 mn TL) 302 Exsa Equity Pick Up SAHOL Stake Sale 218 Net Profit from operations 140 36 290 99 140 8 162 108 123 115 % 116 104 91 77 42 2007 2008 2009 2010 2011 2012 2013 2Q2013 2Q2014 YoY increase in net profit fr
Slide 33: Financial Facts
Financial Facts Total net debt increased to 224 mn TL as of Q2 2014 (2013: 83 mn TL) 400 349 350 109 300 250 223 201 31 224 200 24 79 150 104 258 100 6 27 41 216 Long Term Borrowings 186 62 31 158 83 Short Term Borrowings 50 106 87 66 41 82 Net debt 0 2007 2008 2009 2010 2011 2012 2013 Q2 2014 Total
Slide 34: Financial Facts
Financial Facts CIMSA is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earning per share (TL/per share) 14,4 2,15 2,15 2,24 11,4 10,1 9,1 1,61 7,1 6,8 6,2 0,91 0,85 0,80 0,77 0,73 2,6 As of 12.08.2014 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % Div
Slide 35: CIMSA/About Us: Achievements
CIMSA/About Us Achievements
Slide 36: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives GRI A + Sustainability Report Çimsa’s GRI A+ Sustainability Report 2013 covering the 2012 results, is the first GRI Report having A+ degree in the cement sector in Turkey. The Global Reporting Initiative (G
Slide 37: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Cement Sustainability Initiative CSI represents about one third of global cement production The Cement Sustainability Initiative (CSI) is a global effort by 25 leading cement producers, with operations in m
Slide 38: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Environmental Achievements Çimsa Kayseri Plant was selected as the most Environmentally Friendly industial plant in Turkey by Turkish Ministry of Enviroment and Urban Planning. Çimsa Tece, Aksaray , Misis v
Slide 39: Achievements
Achievements Mersin Waste Heat Recovery System - System definition : Electricity Production from waste heat and gases in Mersin. - Benefits : Decreasing carbon release to the air and decreasing the heat of released carbon to the air. - Net Electricity Production : 49 million KWh (2013) - Annual Carb
Slide 40: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Social Reponsibility Çimsa Summer Camp has been completed with the age group of 11-12 at Niğde with the participation of 69 employee children and 15 children from Kolsuz Village, Niğde. Çimsa has contribute
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