Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrokimya Holding A.Ş. — Q4 2023 Earnings Presentation
34 slides from Petkim Petrokimya Holding Anonim Sirketi's earnings presentation, March 2024
Slide 1: 4Q23 Results Investor Presentation
4Q23 RESULTS INVESTOR PRESENTATION MARCH 2024
Slide 2: Welcome to Our Earnings Presentation
Welcome to Our Earnings Presentation Page 03-04 4Q23 FINANCIAL HIGHLIGHTS Page 05-09 INDUSTRY ENVIRONMENT Page 10-21 OPERATING & FINANCIALS RESULTS Page 22-25 Petkim ranked first in the STAR REFINERY Aegean Exporters' Association's Earnings Presentation 4Q23 "Stars of Export 2023" list, both in Page
Slide 3: Financial Highlights
Sales (W/O IAS29) FINANCIAL HIGHLIGHTS ₺14.5 BN 10% QoQ EBITDA Net Income ₺1.497 MN 10,3% Margin 4% QoQ ₺15.1 BN 7,00 TL/Share 544% QoQ Earnings Presentation 4Q23 Cash Net Debt ₺4 BN 0,7x Current Ratio 0,5% QoQ ₺25.7 BN 7,8x Net Debt / EBITDA 3% QoQ 3
Slide 4: 2023 Highlights
2023 Highlights 01 Solid performance since the second half of the year despite weak petrochemical markets Petkim’s average gross unit was USD89/ton Optimization-focused initiatives resulted in cost efficient 02 operations and improved profitability Petkim’s capacity utilization rate was 64% 03 Manag
Slide 5: Industry Environment
INDUSTRY Earnings Presentation 4Q23 ENVIRONMENT Global Petrochemical Market Petrochemical Market in Türkiye 5
Slide 6: Industry Environment: Naphtha-ethylene spread and Platts index
Monthly naphtha - ethylene spread (CIF MED spot prices) USD/ton Industry Environment 348 357 296 248 200 217 Ethylene-naphtha spread increased 150 226 220 115 118 by about 31% from USD86/ton in 50 91 70 3Q23 to USD113/ton in 4Q23 120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5-year Max-Min 202
Slide 7: Key trends in the industry
Industry Environment Key trends in the industry Product groups spread (over naphtha CIF MED) USD/MT Demand weakness and oversupply persists Red Sea related issues impacting import availability 550 Markets were broadly pressured by weak 450 demand for durable goods, which impacted margins in the prod
Slide 8: Product groups spread over naphtha
Industry Product groups spread Environment (over naphtha CIF MED), USD/MT Polymers Fibers HDPE LDPE PP PVC MEG ACN PTA DEG 800 550 600 400 400 250 200 0 100 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 -200 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Earnings Pre
Slide 9: Türkiye's Petrochemical Sector Overview
Türkiye’s Petrochemical consumption in Türkiye (k tons) Petrochemical Domestic consumption Petkim domestic sales Sector Overview 3.000 2.542 2.231 2.285 2.147 2.500 1.977 2.000 1.500 Surplus (k tons) 1.000 Türkiye domestic demand is primarily met by imports 500 225 226 230 281 248 0 Arom 4Q22 1Q23 2
Slide 10: Operating & Financial Results
OPERATING & FINANCIAL RESULTS Earnings Presentation 4Q23 10
Slide 11: Capacity Utilization & Gross Production
Capacity Utilization Capacity utilization rates (%) Thermoplastics Fiber Aromatics Ethylene Other & Gross Production 80% 87% 95% 76% 74% 85% 105% 75% 102% 99% 101% 48% 65% 87% 85% 100% 88% 87% 55% 54% 45% 40% 35% 50% 17% 18% 52% 18% 25% 32% 15% 0% 17% 8% 22% 19% 5% As part of its cost management 0%
Slide 12: Petrochemical Product Sales
Petrochemical Product Sales Breakdown of petchem sales (USD mn) Thermoplastics Fiber Aromatics Other Trade Breakdown by percentage in 4Q23 124 119 126 116 24% 211 84 79 91 87 Total petchem sales 38% Earnings Presentation 4Q23 $502mn 101 103 81 45 77 25 18 22 11 18 16 18% 182 182 174 193 4% 170 16% 4
Slide 13: Breakdown of Sales
Breakdown of Sales Total volume: Sales volume (k tons) 123 Revenue breakdown (%) 83 66 38 486k tons 35 24 34 34 31 15 1 Export 41% PVC LDPE HDPE PP ACN MEG Benzene C4 P-X Others Trade Total revenue: Revenue (TRY mn) Domestic 2.718 2.636 3.374 59% ₺14,312mn 1.170 904 846 780 852 500 508 22 2 Exports
Slide 14: Breakdown of Total COGS
Breakdown of Total COGS COGS breakdown (%) Inventory gain/loss (USD mn) Other Trade Depreciation Labour costs Energy Raw materials Inventory gain/loss Light naphtha prices 4% 1% 1% 1% 701 665 634 631 629 637 633 614 607 613 26% 24% 25% 24% 584 572 561 555 601 547 532 44% 2% 3% 3% 3% 6% 4% 6% 5% 501
Slide 15: Feedstock vs. Product Prices of Petkim
Feedstock vs. Product Prices of PETKIM Thermoplastics and naphtha spread Petchem unit margins* USD/ton USD/ton 1.200 400 2.400 750 350 1.000 1.356 1.266 1.308 1.305 1.245 1.231 700 300 1.198 1.203 1.142 1.150 1.112 2.000 1.064 1.035 1.072 1.058 800 650 217 250 1.600 600 158 600 200 723 140 140 550 1
Slide 16: Impact of Inflation Accounting on Income Statement
Impact of Inflation Accounting on Income Statement Revenues COGS Gross Profit (TRY bn) (TRY bn) (TRY bn) +18,7 +12,9 -5,7 63,0 60,4 48,9 47,5 45,0 44,0 4,1 3,4 -2,3 2022 2023 2023 (w IAS29) 2022 2023 2023 (w IAS29) 2022 2023 2023 (w IAS29) EBITDA Profit Before Tax Net Profit (TRY bn) (TRY bn) (TRY b
Slide 17: Balance Sheet (IAS29 comparison)
TRY mn 12M’23 12M’23(IAS29) PETKIM 4Q23 Cash and cash equivalents 4,040 4,040 Balance Sheet Trade receivable 7,546 7,546 Inventory 5,560 6,141 (IAS29 comparison) Other receivables 123 123 Other current assets 2,468 2,485 Current assets 19,737 20,334 Non current assets 58,294 75,457 As values of non-
Slide 18: 4Q23 Income Statement
PETKIM TRY mn Q4‘22 Q4’23 YoY Δ (%) Q3‘23 Q4’23 QoQ Δ (%) 4Q23 Sales 8,908 14,525 %63 13,189 14,525 %10 Cost of sales (8,846) (13,168) %49 (11,462) (13,168) 15% Income Gross profit 62 1,357 2091% 1,727 1,357 (21%) Statement Gross profit % Marketing and sales expenses 1% (166) 9% (286) - %73 %13 (245
Slide 19: Financial Highlights
Financial Highlights Sales tons (k tons) Revenue (TRY bn) Export Domestic 4,7 6,0 4,7 3,4 3,6 465 434 477 483 486 8,3 8,5 5,5 5,5 5,8 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 EBITDA and net income (TRY mn) EBITDA Margin (%) EBITDA margin 15.111 EBITDA 12% Earnings Presentation 4Q23 Net inco
Slide 20: EBITDA Slightly Decreased due to Negative Pricing Delta
EBITDA Slightly Decreased due to Negative Pricing Delta and Inventory Q423 segments’ results (TRY mn) (4%) Quarterly Earnings Presentation 4Q23 change in EBITDA (TRY mn) *IAS29 is not applied to these figures Pricing delta 20 -₺329mn
Slide 21: Liquidity Highlights
Liquidity Highlights Maturity profile (USD mn) 13% USD TRY EUR Long term Short term 6% 348 324 USD137 mn 216 57 34 6 81% 2024 2025 2026 2027 2028 Cash flow from operations and investment activities (USD mn) Net debt position (TRY bn) CFI CFO Net debt position Net debt/EBITDA 130 300 Earnings Present
Slide 22: STAR Refinery
STAR REFINERY Earnings Presentation 4Q23 22
Slide 23: STAR Refinery At a Glance
Production Capacity (mn tons) One of the most STAR Refinery digitalized refinery in the world At a Glance 0,2 0,4 0,9 1,3 6,3 Operational highlights 2,0 13mn tons 9,2 2,0 REFINING CAPACITY NELSON COMPLEXITY INDEX Diesel Jet Fuel Naphtha Reformate Petcoke LPG Sulphur 1.129 30-36 API EMPLOYEES PROCESS
Slide 24: STAR Refinery Operating and Financial Highlights
STAR Refinery Operating and Financial Highlights 2023 Figures Capacity utilization Crude processed STAR Refinery completed the year with a net 117% 13mn tons income of USD893mn, particularly with a positive net income impact in 4Q2023 Product sales Domestic sales 12mn tons 55% Earnings Presentation
Slide 25: Highlights of Rafineri Holding Share Acquisitions
Highlights of Rafineri Holding Share Acquisitions Investments by equity method – Gain on Share of profit Share of other Investments by equity method - Oct 2023 acquisition & loss comprehensive income Dec 2023 (expense) Earnings Presentation 4Q23 TRY14.5bn corresponds the TRY6.7bn gain on acquisition
Slide 26: Sustainability & ESG
SUSTAINABILITY & ESG Earnings Presentation 4Q23 26
Slide 27: Sustainability Strategy: Climate/CO2 Targets
Our Sustainability Strategy Will be Built on Two Pillars - Climate/CO2 Targets Short-term2 Mid-term Long-term 2021-2025 2025-2030 2030 onwards Decarbonization ๏ Implement energy efficiency, ๏ Develop internal carbon pricing ๏ Achieve long term decarbonization approach for future investments to targe
Slide 28: ESG Ratings and Awards
Petkim Completed the Assessment with a Score of 26.7 Best Corporate Governance World Finance 2023 26.7 Medium Risk Sustainalytics ESG Risk Rating 2023 NEGL LOW MED HIGH SEVERE 0-10 10-20 20-30 30-40 40+ Emissions, ๏ Environmental Policy Europe & Effluents and Waste ๏ Environmental Management System
Slide 29: Supporting Slides
SLIDES SUPPORTING Earnings Presentation 4Q23 29
Slide 30: Diversified Business Profile Through Ancillary Infrastructure Energy Investments
Diversified Business Profile Through Ancillary Infrastructure Energy Investments ๏ Türkiye’s first privately constructed Refinery ๏ Lower naphtha procurement costs ๏ Target processing capacity of 13m tons p.a. ๏ Replacement of some of the heavy naphtha feedstock with reformate / mixed-xylene ๏ Owned
Slide 31: Petrochemical Complex Flow Chart
Petrochemical Complex Flow Chart Petkim has fully integrated operations LDPE (350,000 ton/year) Bag, greenhouse covers, film, cable, toys, pipes, bottles, hose, packaging HDPE (96,000 ton/year) Construction and water pipes, packaging film, toys, bottles, soft drink crates, barrels Ethylene MEG (89,0
Slide 32: Petkim Stock Performance
PETKIM Stock Performance Unit mn 180 400 160 350 140 300 120 250 100 200 80 150 60 100 40 20 50 0 0 Jan-23 Jan-23 Mar-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Earning Presentation 4Q23 Volume PETKM TI Equity XU100 Index Closing price Market capita
Slide 33: 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
Slide 34: petkim.com.tr
petkim.com.tr Earnings Presentation 4Q23 Scan QR Code to See more 34
Petkim Petrokimya Holding A.Ş. — Q4 2023 Earnings Presentation on 6ix