Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q3 2021 Earnings Presentation
43 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2021
Slide 1: Investor Presentation 2021
INVESTOR PRESENTATION 2021
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: 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
Slide 4: Cimsa at a Glance
Cimsa at a Glance Grey Cement White Cement Special Products Transformation & Big Data Analytics Management, Cultural Transformation and Building Sustainability www.cimsa.com.tr 4
Slide 5: Market Outlook
Market Outlook
Slide 6: Turkish Cement Market
Turkish Cement Market -2021 . Increase in Turkey domestic cement consumption is recorded 28.8 % in H1-2021. 28,80% 21,7% 23,20% GDP Growth Rate 19,4% 16,0% 11,2% 10,2% 9,1% 9,9% 4,8% 4,6% 1,6% 4,7% -0,1% 14% 2,1% 0,8% -10,8% 11,1% -6,0% 9,0% 8,5% 7,1% 5,2% 6,1% 5,0% 8,5% 4,8% 7,5% 3,0% -28,2% 1,8% 0
Slide 7: 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. 97 Mt Cement & Clinker Export (mt) production capacity is 97 Mt in Cement & Clinker Domestic Sales (mt) 2020 Cement Production Capacity (mt)
Slide 8: Turkish Cement Market
Turkish Cement Market Cement Group is the leader of Turkish cement market with 16% market share based on clinker capacity 19% 14% 11% 16% 8% 8% 7% 5% 5% 5% 5% 4% 4% 4% 3% Oyak Limak Nuh As Vicat Medcem Votorantim Others Anadolu 8
Slide 9: Global White Cement Market
Global White Cement Market Global White Cement Consumption (Mt CC) ▪ Global white cement demand has 21,0 21 decreased by ~3% annually and 20 20 20 20 20 20 19 20 20 estimated 20,3 Mt CC level in 2020. 19 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 www.cimsa.com.tr 9 Source: CW Global
Slide 10: 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 in 2019, while global Russia & white cement consumption is 20,9 Mt . Eastern Europe Northern 6% America 7% ▪ China and Middle East regions have the highest Lat
Slide 11: Overview of Çimsa
Overview of Gimsa wwwclmsacomtr
Slide 12: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Special Products Establishing a strong & profitable core High profitable new age products Being Global Leader in White Cement • Produce new age products with R&D • Optimise grey operations • Ensure successful integration of Bunol Plant (Spain-Bunol) • Alumin
Slide 13: The Future for Çimsa's Business
Export Driven Revenus and Product Diversification Extensive global reach: 65 countries under its The Future for Çimsa’s Business 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 14: Çimsa Grey – Solid Network
Çimsa Grey – Solid Network 6.2 5.3 Mt ANKARA 5.3 Mt Grey Clinker Capacity AFYON MALATYA 1.6 1.7 Mt 5 Integrated Plants in 1 Grinding Station in 1 Cement Packing terminal in 1.7 Mt White Mersin, , Kayseri, Ankara Malatya Clinker Capacity & Afyon www.cimsa.com.tr 14
Slide 15: Çimsa Grey – Operational Excellence
Kcal / Kg 650 750 950 600 700 850 900 800 Most of Iraq Afyon #1 Nigde #1 Russia Algeria Kayseri #1 Algeria Azerbaijan Grey Kilns Comparison Algeria Nigeria Russia Switzerland Morocco Greece Nigeria Morocco Morocco Switzerland Jordan Mersin #1 Romania Eskisehir #2 Morocco Greece U.K. Serbia Moldova R
Slide 16: Çimsa Grey – Strong Export Capabilities
Çimsa Grey – Strong Export Capabilities Export Sales Volume Trend 2018 - 2021 Grey Clinker Export Grey Cement Export 1.030 1.036 931 500 803 708 710 474 513 291 2018 2019 2020 09 - 2020 YTD 09 - 2021 YTD www.cimsa.com.tr 16
Slide 17: 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 18: 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. ▪ 5mt in 2020 with the completion of the white line expansion in the plant and the commercial start of the grinding station in H
Slide 19: Çimsa White – Market Positioning
Çimsa White – Market Positioning Distribution ▪ three producers in global white cement sector. Latin America 7% Turkey ▪ 10% MENA 26% market improved from 5,3% to 7,2% in last decade. ▪ Northern America 12% biggest white cement producer position as well as leader together with Cementir in global whi
Slide 20: Çimsa White - Overview of the Bunol Transaction
Çimsa White - Overview of the Bunol Transaction The Plant in Spain Asturias Cantabria País Galicia Vasco Foral de Navarra • is sole operational white cement factory in Europe. La Castilla y Rioja León • The plant had a major overhaul in 2007 and is currently among the most advanced white Aragón Cata
Slide 21: 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 SAHOL %5 4 %4
Slide 22: Special Products – Çimsa Aluminates Family
Special Products – Çimsa Aluminates Family ▪ Refro: More durable and long lasting refractory applications ▪ Resisto: Resistant to chemicals, abrasion and heat. ▪ Rego: Achieve maximum performance from your calcium aluminate based recipes. ▪ Recipro: More stable and high performance dry-mix recipes w
Slide 23: Special Products – Calcium Aluminate Cement
Special Products – Calcium Alimunate Cement Special Products CAC Sales (Kton) CAC Sales (KUSD) 12.114 11.276 10.525 9.974 41 39 34 35 31 7.927 2018 2019 2020 09 - 2020 09 - 2021 YTD YTD 2018 2019 2020 09 - 2020 09 - 2021 YTD YTD www.cimsa.com.tr 23
Slide 24: Our Six Priority SDGs
Sustainability Report and will publish its 6th Integrated Report. OUR SIX PRIORITY SDGS Enviroment-Social- Governance) targets and contribution to SDG (Sustainable Development Goals). www.cimsa.com.tr 24
Slide 25: Overview of Çimsa's Sustainability Roadmap & Targets
2 5 Overview of Çimsa’s Sustainability Roadmap & Targets The main targets included in agenda within the scope of Holding's sustainability roadmap are given below. ✓ Being Net Zero Emissions and Zero Waste by 2050 ✓ Developing sustainable products, services and business models ✓ Realizing measurable
Slide 26: Çimsa's Goals & Contribution to the Sustainable Development Goals - 2020
Çimsa’s Goals & Contribution to the Sustainable Development Goals - 2020 The new term targets will be published in the Integrated Annual Report in March 2022. Based on the water consumption per ton clinker in water consumption per ton clinker by 20% until 2030. Water consumption per clinker produced
Slide 27: Support and Contribution
Sustainability Management Committee Creation of strategy Board Members and target sets has restructured the Sustainability Management Support and Contribution Committee in order to develop the sustainable business model Resolution Process Implementation of the it focuses on, to strengthen its strate
Slide 28: Sustainability Management Committee Focus Groups
2 8 Sustainability Management Committee Focus Groups Sustainability Management Committee Focus Groups have been established in order to deal with issues and projects related to sustainability, to determine and follow up short, medium and long-term sustainability goals. Sustainability Management Comm
Slide 29: Çimsa's ESG Approach - Environment
Çimsa’s ESG Approach - Environment ➢ Alternative fuel usage increase, 12% in 2021 (7,8% 2020) ➢ has EPD (The Environmental Product Declaration) certificates for 3 products. These products are Super White, Isidac40 and Recipro40. ➢ In 2021, the CDP (Carbon Disclosure Project) Climate Change Report sc
Slide 30: Çimsa's ESG Approach - Social
Çimsa’s ESG Approach - Social ➢ Yaz since 2011 Social Return of Investment Analysis is ongoing. ➢ In Future of Work Project, 2 dimensions of 7 dimensions have been completed. Action plans are in progress in other dimensions. ➢ reached 800+ accident-free days with the working environment it has provi
Slide 31: Çimsa's ESG Approach - Governance
Çimsa’s ESG Approach - Governance ➢ sponsored the climate change attitude report with TUSIAD ➢ Strategy and target setting for 2030 and 2050 ➢ received a bronze award in the "Integrated Presentation" category in the IADA Award Program with its 2020 Integrated Annual Report. ➢ received a bronze award
Slide 32: Operational Results
Operational Results Wwwelmsacomtr 25
Slide 33: 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 1,5 5,6 1,39 1,39 4,9 1,29 1,29 1,20 1,10 4,30 1,13 1,13 4,7 3,90 4,30 4,31 0,95 3,00 2,87 3,00 1,70 1,70 1,43 1,32 0,26 0,19 0,21 0,1
Slide 34: Operational Result – Grey Clinker Cost Structure
Operational Result – Grey Clinker Cost Structure 2020 09 YTD 2021 09 YTD 2% 1% 13% 10% 25% Petcoke purchase prices increased significantly according to 2020 due to 32% increase in pace prices in the market 53% 64% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other www.cimsa.com.
Slide 35: Financial Results
Financial Results wwweimsacomtr 28
Slide 36: Financial Result
Financial Result DEC 2020 Key Financial Highlights (MTL) Q3-20 Q3-21 Change % SEP-20 SEP-21 Change % YTD Net Consolidated Sales 490 891 82% 1 344 2533 88% 2.076 Gross Margin % 29% 1 9% -9,30pp 22% 22% -0,63pp 23% Consolidated EBITDA (*) 1 44 1 53 7% 290 51 1 76% 431 Consolidated EBITDA (*) Margin %
Slide 37: Financial Result
Financial Result Net financial debt increased from 619 MTL in 2020 year end to 769 MTL in 2021 due to SPV investment and higher TRY equivalent of FX denominated borrowings. Net Debt 2021 Q3 Net Debt: 769 2020 YE Net Debt:619 Q3 Cash: 441 MTL YE Cash: 904 MTL Net Debt/EBITDA 5,4 1,4 1,2 2019YE 2020YE
Slide 38: Financial Result
Financial Result Net working capital*/ Net Sales was at 15% for 2021 Sep *13 month average 15% ✓ Optimization of production to managing inventory levels. ✓ Strong overdue receivable management ✓ Payment term negotiations with suppliers 2021 Working Capital 28% 21% 15% 15% 27% 15% Net working capital
Slide 39: Key Investment Messages
Key Investment Messages ✓ Differentiated 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 40: Appendix – Financial Statements
Appendix – Financial Statements 28
Slide 41: Balance Sheet
Balance Sheet MTL 2021 Q3 2020 YE MTL 2021 Q3 2020 YE Current Assets 1 .987 2.557 Current Liabilities 1 .573 2.938 Cash and cash equivalents 441 904 Borrowings* 844 1 .306 Trade receivables 775 322 Trade payables 528 572 Other receivables 1 2 Derivative financial liabilities 27 43 Derivative financi
Slide 42: Income Statement
Income Statement 2021 Q3 Income Statement (MTL) 2021 9M 2020 9M Q3 2021 Q3 2020 Sales 2.533 1 .344 891 490 Cost of sales (-) -1 .984 -1 .044 -71 9 -350 GROSS PROFIT 549 300 1 72 1 40 General and administrative expense (-) -1 23 -93 -48 -24 Marketing, selling and distribution expense (-) -9 -1 1 -2 -
Slide 43: Cash Flow
Cash Flow MTL 2021 9M 2020 9M A. CASH FLOWS FROM OPERATING ACTIVITIES -21 7,0 286,9 Profit before taxation 773,0 1 51 ,2 Adjustments to reconcile net profit/loss for the period -21 8,9 243,2 Changes in working capital -692,8 -91 ,7 Cash flows from operations -1 38,7 302,6 Interest received 1 4,5 0,4
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