Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2024 Earnings Presentation
33 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, March 2024
Slide 1: Diversified Building Materials Player – Investor Presentation
ÇİMSA Diversified Building Materials Player Investor Presentation March 2024
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Çimsa Çimento Sanayi ve Ticaret A.Ş. (“CIMSA”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 3: Diversified Global Footprint in Building Materials Industry
Diversified Global Footprint in Building Materials Industry White Clinker White Clinker 1.7 mt Grinding : 0.3 mt 0.6 mt Grey Clinker 3.6 mt CAC 0.1 mt Production Plants Port Access – R&D Center Grinding Facility International Assets Export Opportunity
Slide 4: Leading Global Positions in Lucrative Segments
Leading Global Positions in Lucrative Segments ✓A strong player with a balanced and diversified 2nd Largest product portfolio, special focus on high Player in profitable white cement and calcium White alimunated cement Cement ✓Strong local and global sales network with strategically located terminal
Slide 5: Transforming to Global Building Materials Player
✓ Strategic partnership with Sabancı Holding – Establishment of Sabancı Building Solutions B.V. Transforming to Global Building Materials Player – 2020 ✓ Acquisiton of Bunol Plant to strengthen leading position in Global White Cement Market -2021 ✓ Asset Optimisation in Domestic Market – Kayseri & N
Slide 6: Creating Value Through Portfolio Optimization
Creating Value Through Portfolio Optimization Strong & Profitable Core in Grey • Optimised grey operations through asset sales • Target excellence and efficiency for sustainable competitive advantage - Increasing alternative fuel & Focus on sustainability investments • Improve export capability in o
Slide 7: Expanded Global Footprint And Grew Market Share
Expanded Global Footprint And Grew Market Share With Cimsa Americas Investment & Bunol Plant Acquisition Germany [Hamburg] Spain [Bunol] White Clinker Italy [Trieste] 0.6 mt United States Turkey [Houston] Spain [Sevilla] [Eskisehir & Mersin] Grinding : 0.3 mt White Clinker 1.7mt 7 STRATEGIC TERMINAL
Slide 8: The World's Second Largest White Cement Player
The World’s Second Largest White Cement Player With Sales More Than 70 Countries SPAIN GREECE MOROCCO TURKEY GERMANY NETHERLANDS ITALY USA 78% of Total Sales Realised in 10 Countries BRAZIL 8
Slide 9: High Profitable–Value Added Product: Calcium Aluminates
High Profitable –Value Added Product: Calcium Aluminates • Contributes to CO2 net zero targets via good CO2 emission per strength • Lower limestone consumption Environment • Ensures efficiency and longevity • Profitable and niche product in construction Strategy chemicals market • Higher stability &
Slide 10: Flycrete – Ready to Fly Concrete
cim@® Not just ready-mixed concrete, “Ready to fly concrete” Runways ready for landing in 3 hours with Flyerete by Cimsa 25 MPa strength in 3 hours High abrasion resistance. Flycrete offers an excellent solution for airport runways and industrial floors, providing speed and durability. FLYCRETE READ
Slide 11: Sustainable Solutions and Innovative Technologies for Building Materials
Sustainable Solutions and Innovative Technologies for Building Materials Sabancı Global Technology Center GMBH is established in Technical University of Munich Campus. - R&D activities with customers and Universities - High customer satisfaction - Increasing synergy with the R&D center located in Tu
Slide 12: Dedicated Sustainability Strategy
Dedicated Sustainability Strategy Contributing to low-carbon economy transition 29,6% through strong R&D, innovation and technological Reduction in Net Specific CO2 Emissions transformation. ----------------------------------------------- 40% Alternative Fuel Usage Pioneering development of sustaina
Slide 13: SBTi Approved Science Based Targets
WE ARE COMMITTED TO PROVIDE SUSTAINABLE LIVING ENVIRONMENT: SBTi APPROVED ÇİMSA’S SCIENCE BASED TARGETS! ÇİMSA COMMITS TO… • reduce gross scope 1 and 2 GHG emissions 42.1% per ton of cementitious product by 2033, based on the year 2021*. • and within this target, Çimsa commits to reduce gross scope
Slide 14: ESG Pioneer in Cement and Building Materials Industry
ESG Pioneer in Cement and Building Materials Industry Obtaining IREC The First Cement Certificate for 351.000 The Environmental Product Company in MWh electrical energy and Declaration Certificate BIST 25 Sustainability Index. certification of Mersin WHR for 3 Products. facility production in 2023 E
Slide 15: 1Q24 Update
1Q24 Update September 2023
Slide 16: Sound Growth in Turkish Cement Market Due to Low Base
SOUND GROWTH IN TURKISH CEMENT MARKET DUE TO LOW BASE AS MACRO CHALLENGES PRESSURED INTERNATIONAL DEMAND TÜRKİYE CEMENT CONSUMPTION* ÇİMSA 1Q24 VOLUME GROWTH 35.1% y/y ❖ Strong capacity utilization of all assets contributed 27.2% 10.1 ❖ Low base impact due to eartquake in Feb. 2023. topline growth.
Slide 17: Strong Capacity Utilization and Balance Sheet Management Supported Results
STRONG CAPACITY UTILIZATION AND BALANCE SHEET MANAGEMENT SUPPORTED RESULTS DESPITE INFLATIONARY ADJUSTMENTS REVENUE EBITDA NET INCOME 10.9% 15.9% 800 10.0% 5,324 3,000 17.0% 9.0% 4,798 15.0% 700 7.4% 2,500 13.0% 600 7.1% 8.0% 10.9% 7.0% 2,000 11.0% 500 16,0% y/y 6.0% 9.0% 1,500 24.1% 400 5.0% 396 7.
Slide 18: Leverage Maintained at Healthy Levels
LEVERAGE MAINTAINED AT HEALTHY LEVELS Net Debt NWC 5,000 4,500 1.5x 3,326 4,000 0.5x 0.8x 1.0x TRY MILLION 3,500 0.5x 3,000 3,406 2,500 0.0x NWC/Sales 2,000 1,500 1,932 -0.5x 12% 1,000 -1.0x 500 0 -1.5x 2023 1Q24 vs 16% as of 2023YE Net Debt Leverage Cash Currency Breakdown Debt Currency Breakdown D
Slide 19: Appendix: Market & Operations
APPENDIX: Market & Operations December 2023
Slide 20: Turkish Cement Market
Turkey’s GDP growth realized 4,5% growth in 2023. 11.1% 11.4% 9.0% 8.5% 8.5% 7.1% 7.5% 6.1% 5.5% 5.0% 4.8% 5.2% 4.5% 3.2% 3.0% 1.9% 0.9% 0.9% -4.7% GDP Growth Rate % Increase in Turkey domestic cement consumption is recorded 18,2% in 2023. 21.7% 19.4% 18.20% 16.0% 23.20% 11.2% 10.2% 9.9% 9.1% 4.8% 4
Slide 21: 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. Cement & Clinker Export (mt) Cement & Clinker Domestic Sales (mt) Cement Production Capacity (mt) 100 100 101 95 97 94 87 84 78 80 75 76 13 73 31 20 69 70 11 14 31
Slide 22: Global White Cement Market
Global white cement demand is forecasted to be around 21 mt in 2021 & 2022 21 21 21 21 20 20 20 20 21 20 19 20 20 19 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *2022 Northern Russia & America Eastern • Global white cement production capacity 7% Europe Latam 6% reached to 33,9 M
Slide 23: Çimsa White Market Positioning
MARKET POSITIONING ÇİMSA WHITE MARKET Latin POSITIONING America 11% MENA 24% Turkey 11% Northern America 14% Western Eastern Europe Europe 28% 12% Çimsa’s market share in global white cement market improved Çimsa’s white cement sales network expands to from 5,3% to 7,2% in last decade. over 70 count
Slide 24: Çimsa Grey: Integrated Plants in Mersin, Eskişehir, Afyon
3 INTEGRATED PLANTS IN MERSİN, ESKİŞEHİR, AFYON ÇİMSA GREY SOLID NETWORK ESKİŞEHİR AFYON MERSİN 3.6 Mt GREY 1.7 Mt WHITE 0.1 Mt CAC Clinker Capacity Clinker Capacity Clinker Capacity
Slide 25: Special Products: Calcium Aluminate Cement
SPECIAL PRODUCTS CalciumAlimunateCement CAC Sales (Kton) CAC Sales (KUSD) 19,476 15,209 13,910 61 12,114 51 54 10,525 9,974 41 34 35 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
Slide 26: 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 1,39 1,39 1,50 1,72 1,68 1,52 4,90 4,70 5,60 5,78 5,07 4,64 1.50 1.47 1.29 1.31 4.30 4.22 1.20 3.90 1.13 3.80 3.54 3.00 1.70 1.70 1.56
Slide 27: Çimsa Grey Clinker Variable Cost Structure
ÇİMSA GREY CLINKER VARIABLE COST STRUCTURE 2022 Q4 2023 Q4 3% 5% 8% 11% 27% 28% 62% 57% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other
Slide 28: Balance Sheet
BALANCE SHEET TRY ('000) March-24 December-24 TRY ('000) March-24 December-24 Current Assets 11,696,077 13,906,769 Current Liabilities 8,245,661 10,214,026 Cash and cash equivalents 5,060,573 7,256,721 Borrowings* 3,901,320 4,151,541 Trade receivables 3,203,018 2,697,756 Trade payables 2,669,214 3,6
Slide 29: Income Statement
INCOME STATEMENT TRY ('000) 1Q23 1Q24 Revenue 4,798,491 5,323,692 Cost of sales (3,983,233) (4,614,996) Gross Profit 815,258 708,696 General and administrative expense (406,193) (480,662) Marketing, selling and distribution expense (23,404) (27,010) Research and development expense (7,299) (8,295) O
Slide 30: Cash Flow
CASH FLOW TRY ('000) March-23 March-24 A. CASH FLOWS FROM OPERATING ACTIVITIES (949,750) (234,680) Profit before taxation 52,706 505,264 Adjustments to reconcile net profit/loss for the period 1,447,964 2,105,085 Changes in working capital (2,362,750) (2,774,016) Cash flows from operations (862,080)
Slide 31: Appendix: Sustainability
APPENDIX: SUSTAINABILITY December 2023
Slide 32: Overview of Çimsa's Sustainability Roadmap & Targets
OVERVIEW OF ÇİMSA’S SUSTAINABILITY ROADMAP & TARGETS The main targets included in Çimsa's agenda within the scope of Sabancı Holding's sustainability roadmap are given below: Reaching zero work Being Net Zero Reviewing our Developing accident with Emissions and processes with a sustainable internati
Slide 33: Thank You
THANK YOU December 2023
Çimsa Çimento Sanayi ve Ticaret A.Ş. — Q1 2024 Earnings Presentation on 6ix