Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrochemical Holding — Investor Presentation (June 2012)
37 slides from Petkim Petrokimya Holding Anonim Sirketi's investor presentation, June 2012
Slide 1: Petkim Petrochemical Holding Corp. Investor Presentation June 2012
PETKİM PETROCHEMICAL HOLDING CORP. INVESTOR PRESENTATION June 2012
Slide 2: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 2
Slide 3: Outlook for the First Quarter of 2012
Outlook for the First Quarter of 2012 Global Petrochemical Industry Domestic Petrochemical Industry • Improvement in the profitability for European ethylene crackers • Strong demand for petrochemical products in the first quarter starting from February of 2012 • Surge in costs due to rise in energy
Slide 4: Global and Domestic Petrochemical Industry Outlook 2012+
2012+ Global Petrochemical Industry Domestic Petrochemical Industry • 5,2% annual growth expectation for global demand in basic chemicals and plastics • A slower domestic demand growth is expected to edge • Especially Asia and BRIC countries are the driving force for down the global growth in 2012,
Slide 5: Petrochemical Industry
Petrochemical Industry Global EBIT (EBIT/ton) Naphtha, Ethylene MED Prices $/mt $/Ton $/Ton Contraction in margins Ethylene (MED) Naphtha (MED) Source: CMAI Source: Platts CYCLICAL AND MODERATE IMPROVEMENT IN GLOBAL EBIT ETHYLENE-NAPHTHA SPREAD CONTRACTED IN 2011 . THE SPREAD IMPROVED IN THE FIRST Q
Slide 6: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 6
Slide 7: Petkim
PETKİM STAR Refinery TÜPRAŞ PETKİM PLANTS ADDITIONAL LAND FOR EXPANSION POTENTIAL PETKİM PORT PETROL OFİSİ 7
Slide 8: Products
Products PP Knitting yarn, sacks, carpet thread, ropes and hawsers, table cloths, napkins, BUTADIENE PROPYLENE C4 Rubber doormats, felt, hoses, radiator pipes, fishing nets, brushes, Automobile tire blankets ACN Textile fibers, artificial wool, ABS (Acrylonitrile Butadiene Styrene) resins NAPHTHA LD
Slide 9: Performance in the First Quarter of 2012
Performance in the First Quarter of 2012 Net Sales (USD mn) 674 602 Petkim’s net sales are on upward trend with 451 USD 674 mn in Q1 2012. Q1 Q1 Q1 2010 2011 2012 Sales (th. ton ) Exports (USD mn) 491 288 467 192 Exports beat record of Sales edged up to 491 the all time with USD 380 118 th. tons in
Slide 10: Company Overview
Company Overview PETKİM FACILITIES • First complex established in 1965, • 15 main plants, 7 auxiliary units second complex established in 1985 • Located in Aliağa near Izmir • The sole petrochemical producer in • Sits on a land of 19 mn sqm Turkey • Harbour, water dam, power • 25% domestic market sh
Slide 11: Petkim's Ownership Structure
Petkim’s Ownership Structure Petkim Stock Performance Ownership Profile Source: Reuters Petkim Share Information (31 March 2012) Closing Price (TRY/Share) 2,22 • Privatization process was completed in May 2008. STEAŞ Market Cap (TRY mn) 2.220 Group acquired 51% stake in Petkim at an amount of USD Ma
Slide 12: State Oil Company of The Azerbaijan Republic (SOCAR)
State Oil Company of The Azerbaijan Republic (SOCAR) • Founded in 1992, • State Oil Company of The Azerbaijan Republic, • One of the most important oil and natural gas producer in the world, • Oil products exported to 33 countries, including USA, China, Brazil, Chile, Thailand. • «Azerikimya», «Azer
Slide 13: Products and Capacities
Products and Capacities Plant Capacities PVC 150,000 MEG 89,000 ETHYLENE 520,000 LDPE 350,000 ACN 90,000 Propylene 240,000 HDPE 96,000 PTA 70,000 C4 140,000 PP 144,000 Py-Gas 390,000 BENZENE 150,000 P-x 136,000 O-x 50,000 CHLORINE 100,000 VCM 152,000 PA 34,000 MB 10,000 Plastic Products 4,000 Power
Slide 14: Petkim: Net Sales (Volume)
Petkim: Net Sales (Volume) Net Sales (th. ton) Q1 2012 Breakdown of Sales Volume Q1 2012 2000 1800 1.745 1.638 1600 1400 1200 1000 11% increase 800 600 467 491 442 400 200 0 2010 2011 Q1 11 Q4 11 Q1 12 14
Slide 15: Petkim: Net Sales (USD mn)
Petkim: Net Sales (USD mn) Net Sales (USD mn) Q1 2012 Breakdown of Sales Revenue Q1 2012 2.500 2.339 2.000 1.943 1.500 27% rise 1.000 674 602 532 500 0 2010 2011 Q1 11 Q4 11 Q1 12 15
Slide 16: Petkim: Trading Activities
Petkim: Trading Activities Sales of Imported Products (th. ton) Q1 2012 Sales of Imported Products (USD mn ) Q1 2012 300 300 269 248 250 250 200 200 150 150 83% rise 55% rise 100 100 73 75 66 53 56 54 36 40 50 50 0 0 2010 2011 Q1 11 Q4 11 Q1 12 2010 2011 Q1 11 Q4 11 Q1 12 16
Slide 17: Petkim: Exports
Petkim: Exports Exports Revenues by Years and Q1 2012 (USD mn) Breakdown of Export Revenues by Product 2011 900 834 800 700 600 531 %44 rise 500 400 288 300 192 200 200 100 0 2010 2011 Q1 11 Q4 11 Q1 12 17
Slide 18: Petkim: Exports (Region)
Petkim: Exports (Region) Breakdown of Exports by Region Q1 2012 Caucasus and Middle Middle Africa East and Asia 4% Gulf 3% Countries 3% • Products are exported to 40 different countries. • Benzene, C4, LDPE, Py-Gas and P-X are the main exports products Asia Pacific • Petkim is the second exporter in
Slide 19: Petkim: Product & Raw Material Prices
Petkim: Product & Raw Material Prices Petkim Thermoplastics and Naphtha Price Changes Petkim EBITDA Performance (USD mn) Index (2007 January =100) 250 195 200 145 136 150 145 99 100 95 68 50 45 0 5 -5 2009 2010 2011 Q1 11 Q4 11 Q1 12 -55 -11 THERMOPLASTICS NAPHTHA Raw Material and Product Prices (US
Slide 20: Initiatives Aiming to Improve Operational Efficiencies
Initiatives Aiming to Improve Operational Efficiencies Total Production / Energy Unit Consumption W.Europe Ethylene Capacity Utilization Rates (%) Source: CMAI Efficiencies on Marketable Production Per Capita Petkim Ethylene Capacity Utilization Rates (%) Net Sales per Capita (tho USD) (Left Axis) 1
Slide 21: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 21
Slide 22: Capital Expenditures and Planned Capacity Increases
Capital Expenditures and Planned Capacity Increases Capital Expenditures of Petkim (USD mn) • Moderate gearing of capital investments instead of fully financing with equity • Increasing capacities of existing plants with minor capex- smart debottlenecking investments • Optimizing processes in the pl
Slide 23: Carbon Management, Environment and Petkim
Carbon Management, Environment and Petkim • Participated in International • 700 hectares of wind energy Carbon Disclosure Project. production area next to • Determined greenhouse gas Petkim’s production site. emissions. • Project partner and main • Planned greenhouse gas sponsor to Conversion of red
Slide 24: Operational Excellency
Operational Excellency Energy Efficiency Excellency Model - Process Optimization Modelling Improvement of Process - Application of New Management System S Technologies U Key Performance S Indicator Surveillance System T A Health, Environment, Current Situation Safety I Analysis Studies - Risk Manage
Slide 25: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 25
Slide 26: Growth Plan and Strategy
Growth Plan and Strategy DOWNSTREAM • ADVANTAGES OF WIDE PRODUCT RANGE • HIGH VALUE ADDED SPECIALTY CHEMICALS • CLUSTER MODEL (PETKİM “VALUE-SITE”) UPSTREAM 5 PILLARS OF GROWTH PLAN STAR Refinery ENERGY (SOCAR Turkey) PRODUCTION DISTRIBUTION (SOCAR Turkey) LOGISTICS 26
Slide 27: Short Term Growth Plans
Short Term Growth Plans Capacity Increase Energy Logistics Capacity increase by: • Energy optimization study with KBC • New distribution centers • Debottlenecking and (steam and energy opt.) • Strategic partnership in port modernization investments • Fuel flexibilty in energy production business (AP
Slide 28: Mid to Long Term Growth Plans
Mid to Long Term Growth Plans “UPSTREAM” INVESTMENTS SECURING FEEDSTOCK WITH THE REFINERY INTEGRATION To be built by SOCAR&TURCAS • Allocation of 130 ha area for the refinery investment • Start of area preparation activities • 10 million tons /year crude oil capacity • Product slate: naphtha, LPG, d
Slide 29: 2023 Petkim
2023 Petkim STAR Refinery Petrochemical Production Capacity: 10 MMTPA New Petrochemical Products; BDX, XLPE Capacity Increase of Current Plants; PA, PTA, 600.000 MTPA Ethylene Production WIND ENERGY Min 25 MW Energy Production PETKİM Port Min. 1,5 million TEU Container Handling Terminal Capacity 29
Slide 30: Petkim: Growth Strategy
PETKİM: Growth Strategy GROWING WITH LOGISTICS INVESTMENTS LOGISTICS ADVANTAGES • To become one of the key logistics main • Increasing harbor capacity and utilization terminals in the region rate • High capacity potential of container handling • Storage of various solid, liquid, and gas • High capac
Slide 31: Petkim: Growth Strategy
PETKİM: Growth Strategy GROWTH WITH LOGISTICS INVESTMENTS A Head of Terms was signed with one of the industry-leading companies, APM Terminals BV, for the development of Petkim port. Details of Head of Terms Operating rights of port for 28 years 1st phase construction of main port by 2013, Option to
Slide 32: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 32
Slide 33: Financial Structure and Profitability
Financial Structure and Profitability (USD mn) Shareholders’ Equity EBITDA Q1 Q1 956 2012 5 2012 Q1 Q1 1,084 2011 68 2011 Q1 Q1 980 2010 29 2010 Total Assets Net Sales Q1 Q1 1,604 2012 674 2012 Q1 Q1 1,614 2011 602 2011 Q1 Q1 1,344 2010 451 2010 33
Slide 34: Financial Tables
Financial Tables Income Statement (USD mn)(IFRS ) 2009 2010 2011 Q1 11 Q4 11 Q1 12 Net Sales 1.342 1.943 2.339 602 532 674 Cost of Goods Sold (-) (1.269) (1.790) (2.224) (527) (557) (662) Gross Profit (Loss) 73 153 114 75 (25) 12 Gross Profit (Loss) Margin 5,4% 7,9% 4,9% 12,5% -4,7% 1,8% Operating E
Slide 35: Financial Tables
Financial Tables Balance Sheet (USD mn) (IFRS) Cash&Bank Debt (USD mn) 31/12/2010 31/12/2011 31/03/2012 Cash&Cash Equivalents 130 77 71 200 182 147 137 Trade Receivables 268 309 402 150 131 86 Inventories 281 258 261 100 63 61 77 71 Other Current Assets 35 61 111 50 28 0 Current Assets 715 706 845 Q
Slide 36: Disclaimer
Disclaimer This presentation is confidential and 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 Holdings A.Ş. (the “Company”) or any member of its group nor should it o
Slide 37: Investor Relations
Investor Relations We welcome your questions, comments and suggestions. Our corporate headquarters office address is: Petkim Petrochemical Holding Corp. PO. Box.12 Aliağa, 35801 İzmir/ TURKEY To contact us with respect to shareholding relations for individual and corporate investors, please call dir
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