Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM

Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q3 2020 Earnings Presentation

19 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, November 2020

  1. Slide 1: 3Q20 Results Investor Presentation

    3Q20 Results Investor Presentation Herkese Açık / Public 1

  2. Slide 2: Ethylene – Naphtha spread averaged US$ 321/ton in 3Q20

    Ethylene – Naphtha spread averaged US$ 321/ton in 3Q20 • Ethylene-naphtha spread increased by 26% from US$ 255/ton in 2Q20 to US$ 321/ton in 3Q20. • Feedstock prices were correlated directly to oil prices in the third quarter. • The naphtha market has continued to strike a balance between limited su

  3. Slide 3: PLATTs Index averaged US$ 700 per ton in 3Q20

    PLATTs Index averaged US$ 700 per ton in 3Q20 • PLATTS Index has continued to recover on a monthly basis after seeing the lowest level in April. • Index averaged at USD700/ton in 3Q20, suggesting 24% increase M-M and 17% decrease Y-Y. • The recent strength in polymer prices is being seen as an indic

  4. Slide 4: Product group spreads

    200 0 600 400 750 1350 150 350 950 1150 -50 550 Herkese Açık / Public Jan-19 Jan-19 Feb-19 Feb-19 Mar-19 Weighted Mar-19 Apr-19 Apr-19 May-19 Source: Platts, Company May-19 Jun-19 Jun-19 Jul-19 Jul-19 Aug-19 Aug-19 Paraxylene Sep-19 Sep-19 Oct-19 Oct-19 Nov-19 Nov-19 Dec-19 Dec-19 Jan-20 Jan-20 Weig

  5. Slide 5: Product groups and overall weighted spread

    Product groups and overall weighted spread (over naphtha CIF MED), USD/MT Weighted averages by product groups spreads Polymers 600 Fiber 400 Others 200 Aromatics 0 Source: Platts, Company Herkese Açık / Public 5

  6. Slide 6: Feedstock vs. Product Prices

    Feedstock vs. Product Prices Petkim - Thermoplastics & Naphtha Spread • 361Kton naphtha has been supplied from STAR 1,092 1,057 1,053 1,034 1,013 964 1,015 1,040 1,043 1,010 1,072 Refinery in Q320. 927 903 974 849 • Thanks to the uninterrupted feedstock procurement USD/ton 472 502 502 507 482 492 45

  7. Slide 7: Costs and Operational Efficiency in 3Q20

    Costs and Operational Efficiency in 3Q20 Plant Cost Base Breakdown 3Q20 Ethylene Facility Capacity Utilization Rate 8% 105% 106% 105% 8% 99% 98% 102% 92% Raw material Energy 12% Labor Other 72% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Total Production & Energy Consumption Sellable Production (Ton K) 650 4

  8. Slide 8: In 3Q20 Petkim achieved TL 3,038mn sales via 638k ton volume

    In 3Q20 Petkim achieved TL 3,038mn sales via 638k ton volume Sales Volume (ton k) 3Q20 Volume: 638k ton Revenue (TL mn) 3Q20 Revenue: TL3,038mn 210 892 634 85 86 393 297 44 236 40 22 33 22 19 30 15 21 153 73 60 84 97 54 3 8 16 16 34 Export Revenue (TL mn) 3Q20 Export Revenue: TL1,022mn 538 145 84 97

  9. Slide 9: Turkey thermoplastics consumption increased by 10%

    Turkey thermoplastics consumption increased by 10%, while Petkim domestic sale increased by 16% in 3Q20 compared to 2Q20 Ton k PVC LDPE 18% 15% 19% 51% 51% 54% 156 170 72 75 71 69 79 140 68 33 26 40 2020Q1 2020Q2 2020Q3 2020Q1 2020Q2 2020Q3 HDPE PP 12% 13% 13% 7% 7% 7% 547 489 489 169 182 173 23 27

  10. Slide 10: Fiber consumption in Turkey increased by 18% in 3Q20

    Fiber consumption in Turkey increased by 18% in 3Q20 compared to 2Q20 Ton k ACN MEG 36% 41% 5% 15% 19% 17% 49 114 91 83 33 30 19 21 15 18 23 3 2020Q1 2020Q2 2020Q3 2020Q1 2020Q2 2020Q3 PTA 15% 10% 10% 220 172 189 29 25 23 2020Q1 2020Q2 2020Q3 Turkey’s Import Domestic Consumption Source: TURKSTAT, Co

  11. Slide 11: Turkish Market – Others

    Turkish Market – Others Ton k P-X PA 49% 25% 31% 63% 65% 53% 41 31 10 10 11 24 8 6 13 10 11 4 2020Q1 2020Q2 2020Q3 2020Q1 2020Q2 2020Q3 Turkey’s Import Domestic Consumption Source: TURKSTAT, Company Petkim/Domestic Sale Domestic Market Share Herkese Açık / Public 11

  12. Slide 12: PETKIM 3Q20 Income Statement

    PETKIM 3Q20 Income Statement TL mn 9M'19 9M'20 Sales 8,877 8,046 Cost of sales (7,607) (6,939) Gross Profit 1,270 1,107 Gross profit % 14.3% 13.8% Marketing and sales expenses (70) (87) General admin. Expenses (212) (254) R&D Expenses (18) (21) Operating profit 970 745 Other income / (expenses) 51 2

  13. Slide 13: PETKIM 3Q20 Balance Sheet

    PETKIM 3Q20 Balance Sheet TL mn 12M19 9M20 Cash and cash equivalents 4,037 5,317 Trade receivables 1,552 1,477 Inventory 929 992 Other receviables 13 8 Other current assets 3,015 3,997 Current assets 9,547 11,792 Non current assets 5,255 6,002 Total Assets 14,801 17,794 Short term borrowings 4,037 4

  14. Slide 14: Financial Performance

    Financial Performance Revenue (mn TL) EBITDA, Net Income and EBITDA Margin (mn TL) 1,600 18% 17% 20% 18% 4,666 1,400 16% 1,200 14% 14% 1,000 800 1,589 12% 600 7% 10% 6,889 761 8% 1,022 516 400 1,044 685 412 6% 1,988 200 205 -10 145 311 4% 1,710 1,528 - 2% 2019 Q120 Q220 Q320 (200) 2019 Q120 Q220 Q32

  15. Slide 15: Balance Sheet Analysis

    Balance Sheet Analysis Deposits - by currency Outstanding Outstanding Loan T y pe Loan T y pe Currency principial principial (Original currency ) (USD) Inv estment Credit EUR 29 34 TRY Inv estment Credit USD 71 71 12% Long-term loan Project Finance Loan USD 1 88 1 88 EUR 7% Eurobond USD 500 500 Inv

  16. Slide 16: Diversified business profile through ancillary infrastructure and energy investments

    Diversified business profile through ancillary infrastructure and energy investments Description Benefits to Petkim • Turkey’s first privately constructed Refinery • Lower naphtha procurement costs • Target processing capacity of 10m tons p.a. • Replacement of some of the heavy naphtha feedstock wit

  17. Slide 17: Appendix 1. Petrochemical Complex Flow Chart

    Appendix 1. Petrochemical Complex Flow Chart Petkim has fully integrated operations LDPE Bag, greenhouse covers, film, cable, toys, pipes, (350,000 ton/year) bottles, hose, packaging HDPE Construction and water pipes, packaging film, Ethylene Plant (96,000 ton/year toys, bottles, soft drink crates,

  18. Slide 18: Appendix 2. PETKIM Stock Performance

    Appendix 2. PETKIM Stock Performance Th Unit 150 1,400,000 140 1,200,000 130 120 1,000,000 110 800,000 100 600,000 90 400,000 80 200,000 70 60 0 01/01/19 01/04/19 01/07/19 01/10/19 01/01/20 01/04/20 01/07/20 01/10/20 Volume BIST 100 Petkim Closing Price as of 30 Sept 2020 (TRY/Share) 4,20TL Market C

  19. Slide 19: Disclaimer

    Disclaimer This presentation 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 Holding A.Ş. (the “Company”) or any member of its group nor should it or any part of it form

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