Aksa Akrilik Kimya Sanayii A.s. · BIST:AKSA
Aksa Akrilik Kimya Sanayii A.s — Investor Presentation (November 2011)
36 slides from Aksa Akrilik Kimya Sanayii A.s's investor presentation, November 2011
Slide 1: AKSA Akrilik Kimya Sanayi
AKSA AKRILIK KIMYA SANAYI November 2011 1
Slide 2: Akkok Industrial Investment & Development Inc. Group Companies
AKKOK INDUSTRIAL INVESTMENT & DEVELOPMENT INC. Akkok Group Companies CHEMICALS AKSA, AK-KİM ENERGY AKENERJİ, SEDAŞ AKKOK (Million US$) 2006 2007 2008 2009 2010 TEXTILES Net Sales 1,314 1,337 1,514 2,166 2,400 AK-AL, AK-TOPS, AKSA EGYPT Export 342 346 326 332 372 REAL ESTATE DEVELOPMENT AKMERKEZ, AK
Slide 3: Strategic Business Units of AKSA Acrylic
STRATEGIC BUSINESS UNITS of AKSA ACRYLIC STANDARD ACRYLIC FIBER BUSINESS UNIT • Largest acrylic fiber producer under one single roof in the world; • 13.2% global market share; • Turkey’s sole local producer having 70% local market share. TECHNICAL FIBERS BUSINESS UNIT • High value-added products / D
Slide 4: Acrylic Fiber Business Unit
ACRYLIC FIBER BUSINESS UNIT 4
Slide 5: What Is Acrylic Fiber?
WHAT IS ACRYLIC FIBER? Acrylic fibre is a synthetic fibre that highly resembles wool, Wool (natural fiber) Acrylic Fiber (synthetic fiber) Used in blends with natural and other synthetic fibers or by themselves, Easily washed and keep dimensional stability/resistant against sunlight & chemical subst
Slide 6: Acrylic Fiber Sector in Brief
ACRYLIC FIBER SECTOR IN BRIEF Acrylic fiber market accounts for 2 million tonnes in 2010. The global demand for acrylic fiber in 2020 is expected to be around the same level as 2 million tonnes. Biggest Consumption Market is China . During 2007-2010 shrank by 20% / adopts self sufficiency strategy/i
Slide 7: 42 Years of Experience in Acrylic Fiber Industry
HAVING 42 YEARS OF EXPERIENCE IN ACRYLIC FIBER INDUSTRY... Leader in Turkey and in international markets in terms of capacity, size, pre-and post-service quality, product diversity & flexibility; Low cost leader; Production capacity : 308,000 ton/year; Capacity Utilization Rate:86% in 2010, 90% for
Slide 8: AKSA's Development Over 40 Years
AKSA’s Development Over 40 Years AKSA 1971 AKSA Today Initial Capacity 5,000tpa Capacity 308,000tpa By the end of 2007, capacity reached 308,000 tpa. 8
Slide 9: 2011 (Jan-Oct) Sales Breakdown
2011 (Jan-Oct) / SALES BREAKDOWN EXPORT SALES BREAKDOWN DOMESTIC SALES BREAKDOWN ( 2011 Jan-Oct) ( 2011 Jan-Oct) AFRICA; OTHER; 2% Handknit; Other; 8% Knitwear; 6% EUROPE; 9% 52% USA; 20% 25% CHINA; 18% MIDDLE Carpets; EAST; 31% 31% 9
Slide 10: Acrylic Fiber Industry Players
ACRYLIC FIBER INDUSTRY PLAYERS AKSA (TURKEY) / Production Capacity: 308,000 tpa MONTEFIBRE (SPAIN) / 95,000 tpa • In 2009, MonteFibre shut down the last facility in Italy, Jilin and MonteFibre founded JiMont Jilin Qifeng and Jimont, 2 factories, have a cumulative production capacity of 240,000 tpa D
Slide 11: Threat of Substitutes
THREAT OF SUBSTITUTES GLOBAL PRODUCTION OF TEXTILE FIBERS ( 1000 TONS ) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AGR Synthetic Fibers 32.101 31.686 33.907 35.511 37.953 38.165 41.277 44.523 42.640 44.600 47.380 3,97% Polyester 19.073 19.244 20.956 22.258 24.406 24.701 27.808 31.094 30.
Slide 12: Cost Structure of Acrylic Fiber
COST STRUCTURE OF ACRLYIC FIBER The key cost component is the raw material Acrylonitrile • Acrlyonitrile prices fluctuates depending on the oil prices and the demand –supply balance; • 30% of ACN locally sourced from PETKIM, The rest is heavily imported from Europe . The other important cost compone
Slide 13: Ecru Tow - ACN Price Margin
ECRU TOW - ACN PRICE MARGIN (US$/ton) Source: PCI Average of US/Europe/Far East Prices 13
Slide 14: Carbon Fiber Business Unit
CARBON FIBER BUSINESS UNIT 14
Slide 15: What Is Carbon Fiber?
WHAT IS CARBON FIBER? human hair , (50-70 μ) • Carbon fibers are extremely fine fibers (typ, 5-7 µ in dia,) consisting mostly of carbon atoms, carbon fiber (5-7 μ) • Carbon fiber is >95% carbon, a carbon fiber and a human hair (source: wikipedia) • The structure of carbon fiber is similar to graphit
Slide 16: Carbon Fiber, Composite Materials & Composites Is a $10 Billion Industry
CARBON FIBER, COMPOSITE MATERIALS & COMPOSITES IS A $10 BILLION INDUSTRY Capital Intensity* Facilities Required: Facilities Required: Facilities Required: Precursor Facility Weavers/Looms, Fabric Layup Carbonization Prepreg Lines Curing Equipment Facility *Investment required in technology and produ
Slide 17: Uses / Current Market for Carbon Fiber
USES / CURRENT MARKET FOR CARBON FIBER AKSA is targeting Industrial Applications 17
Slide 18: Carbon Fibre Market Is Early in Its Development
THE CARBON FIBRE MARKET IS EARLY IN ITS DEVELOPMENT COMPARED TO OTHER STRUCTURED MATERIALS 30 • Carbon Fiber is a structural reinforcement with high specific strength and stiffness, Carbon Fiber 20 Aramid Fiber • High specific tensile strength S-glass • High specifif elastic modulus 10 E-glass • Lig
Slide 19: Expected Growth in Demand for Carbon Fiber
EXPECTED GROWTH IN DEMAND FOR CARBON FIBER Industrial Apps 2010 vs 2020: Wind: 5,000t 15,000-50,000t Compounding: 5,000t 15,000-50,000t Pressure Vessels: 3,000t 15,000-50,000t Autos: 2,500t 20,000-100,000t Carbon fibre demand was around 20,000 tonnes in 2004, The demand than doubled in the f
Slide 20: Expected Growth in Demand for Carbon Fiber in Turkey
EXPECTED GROWTH IN DEMAND FOR CARBON FIBER IN TURKEY • Infrastructure • Pressure Vessels • Wind Blades Demand for Carbon Fiber in 10 years is expected to be 1,000- 1,500 tpa in Turkey. Aksa’s target is to support the increased use of carbon fiber based composites in Turkey. Considering the very unde
Slide 21: The Un-Met Need for Carbon Fiber
THE “UN-MET NEED” FOR CARBON FIBER Market Research; • Carbon fiber has been available commercially since the 1970’s, • Demand has grown irregularly depending on new applications, • Tight supply conditions have occurred every few years • There appears to be an “un-met need” in the market for–high qua
Slide 22: AKSA's Potential Strength in Carbon Fiber
AKSA’S POTENTIAL STRENGTH IN CARBON FIBER Having the world’s largest capacity for acrylic fiber production under a single roof, AKSA’s infrastructure is unmatched by any carbon fiber producer. Acrylic Fiber and Precursor Capacity of Carbon Fiber Producers (000mt) Aksa Toray MRC Zoltek Cytec AKSA’s i
Slide 23: AKSA in Carbon Fiber
AKSA IN CARBON FIBER Development of AKSACA carbon fiber Capital Intensive – Initial 2008 Startup of Carbon Fiber Pilot Production capital cost of a precursor Line and carbon fiber production facility is very high, 2009 Startup of 1.500 tpa Carbon Fiber depreciation is significant, Production Line Ha
Slide 24: AKSA's Target in Carbon Fiber
AKSA’S TARGET IN CARBON FIBER Targeting industrial applications where high quality, reliably supplied; competitively priced carbon fiber is wanted; Intending to further develop our portfolio of products over time; Support the increased use of carbon fiber based composites in Turkey; AKSA and the Dow
Slide 25: AKSA + Dow Carbon Fiber Joint Venture
AKSA + DOW Carbon Fiber Joint Venture The Dow Chemical Company Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company’s diversified industry-leading portfolio delivers a broad range of technology-based produ
Slide 26: Long-Term Main Strategic Goals (2015)
LONG-TERM MAIN STRATEGIC GOALS (2015) Generate at least US$1.2 billion sustainable revenue in its Strategic Business Areas, Achieve at least 15% EBITDA margin, Maintain capacity utilization in Acrylic Fiber Business and low-cost leadership through cost saving projects, Target 5% market share in Carb
Slide 27: Energy Business Unit
b* > ENERGY BUSINESS UNIT
Slide 28: Energy Production & Turnover
ENERGY PRODUCTION & TURNOVER PRODUCTION (JAN-OCT 2011) 19% Electiricity-Kwh Steam-Kwh 81% ENERGY TURNOVER(JAN-OCT 2011) 11% 4% Group Turkish Electricity Transmission Company Non-group Energy Turnover 86% US$ 22 million 28
Slide 29: 2012 Budget Figures
2012 BUDGET FIGURES 2012 Budget 2011 Year-end Forecasts Net Sales US$900-950 Million US$950-1.000 Million AF US$750-770 US$850-880 Tecnical Fibers US$67-72 US$60-65 CF US$40-45 US$25-28 Energy US$50-56 US$40-45 Exports US$340-360 Million US$350-375 Million AF CUR %85-%90 85%-90% EBITDA margin 10%-12
Slide 30: Net Sales & Export (FOB)
NET SALES & EXPORT (FOB) (US$ million) 30
Slide 31: EBIT - EBITDA - Net Profit
EBIT - EBITDA - NET PROFIT (US$ million) 31
Slide 32: EBIT - EBITDA - Net Profit (%)
EBIT -EBITDA - NET PROFIT (%) 32
Slide 33: Investment-Profit-Dividend
INVESTMENT-PROFIT-DIVIDEND 2000-Q32011: • Total Investment : US$ 619,9 million • Total Net Profit : US$ 428,7 million • Total Dividend : US$ 81,9 million 33
Slide 34: Summary Income Statement
SUMMARY INCOME STATEMENT Income Statement 2007 2008 2009 Q32010 2010 Q32011 (US$ Million) Net Sales 670 678 557 602 851 742 EBITDA 43 60 74 52 85 89 EBIT 17 33 43 27 51 69 NET PROFIT 19 45 26 18 37 53 34
Slide 35: Balance Sheet
BALANCE SHEET Balance Sheet (US$ Million) 2008 2009 2010 Q32011 ASSETS 707 809 836 859 Current Assets 376 391 388 410 Liquid Assets 27 64 37 37 Receivables 264 218 212 197 Inventories 64 74 89 133 Other 22 35 51 44 Long Term Assets 331 418 448 449 Long Term Trade Receivables 8 8 6 5 Financial Assets
Slide 36: Thank You
AKSA AKKOK ///// ZZ AKSA THANK YOU http://www.aksa.com http :// www.aksaca.com.tr
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