Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — FY2014 Earnings Presentation
38 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, February 2015
Slide 1: CIMSA 2014 Results Investor Relations Presentation
CIMSA 2014 Results Investor Relations Presentation
Slide 2: Disclaimer
Disclaimer “Çimsa Çimento Sanayi ve Ticaret A.Ş.” (CIMSA) may, when necessary, make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. CIMSA discloses information through its Disclosure Policy and has shared this policy with
Slide 3: Agenda
Agenda 2014 Market Overview Global Cement Market...................... Page 1-3 Turkish Cement Market.................... Page 4-11 CIMSA/ About Us Operational Facts........................... Page 12 -19 Financial Facts................................ Page 20-27 Achievements....................
Slide 4: 2014 Market Overview: Global Cement Market
2014 Market Overview Global Cement Market
Slide 5: Global Cement Market
Global Cement Market • Global consumption volume is expected to be around 4.1 billion tons in 2014, reflecting 2,5 % growth YoY (CAGR 6,9 % btw. 2002-2014E) 2,5% 2,8% 5,3% 6,0% 8,3% 10,4% 6,0% 7,6% 2,4% 9,9% 7,7% 7,9% 9,7% 4,0 4,1 4,2 3,6 3,8 3,3 2,8 3,0 2,6 2,8 2,2 2,3 1,8 2,0 2002 2003 2004 2005 2
Slide 6: Global Cement Market
Global Cement Market • The consumption growth rate in developing countries is expected to be around 4% in 2015 15% 10% 10% 10% 10% 9% 7% 6% 6% 7% 6% 6% 4% 5% 2% 3% 2% 2% 2% 3% 2% 0% 2% 2% 2% 1% 0% 0% -1% 0% 0% -2% -5% -3% -4% -10% -9% -15% Developed Countries* Rest of the World -ex China -20% -17% *
Slide 7: Global Cement Market
Global Cement Market • China’s consumption is nearly 60% of the global consumption, • Steady growth is expected in emerging markets 2013 Global Regional 2014E Global Regional Consumption Consumption 3% 2% 2% 3% 3% 3% China Western Europe(*) 32% Developed Far East (**) 32% 59% North America 60% Rest
Slide 8: 2014 Market Overview: Turkish Cement Market
2014 Market Overview Turkish Cement Market
Slide 9: Turkish Cement Market
Turkish Cement Market • Cement sector is correlated with GDP and sector growth is expected to be parallel to GDP growth in 2014 25,0% GDP Growth 22,0% 19,4% 20,0% Construction Sector 18,5% 15,7% Growth 18,3% 15,0% 14,1% 11,3% 13,9% 9,3% 10,2% 9,4% 11,2% 10,0% 6,8% 6,2% 7,8% 5,7% 9,2% 5,3% 9,1% 8,4%
Slide 10: Turkish Cement Market
Turkish Cement Market • There is a positive correlation between GDP per capita and cement consumption • The cement consumption per capita is expected to continue rising in 2014 12.000 1000 GDP Per Capita ($) 10.807 10.444 10.428 10.459 10.400 900 Cement Consumption Per Capita (kg) 10.003 10.000 9.24
Slide 11: Turkish Cement Market
Turkish Cement Market • The construction permits by floor area is increased by 39 % to 173 mn m2, in 2014 Q3 YoY 176 175 173 159 124 124 123 125 104 106 101 70 36 46 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 2014 Q3 Q3 Source: TUİK 6
Slide 12: Turkish Cement Market
Turkish Cement Market • The total cement consumption rised by 3% in 2014, mainly in Marmara, Mediterranean & Black Sea 70,0 2014 Regional Distribution 60,0 7% 7% South 50,0 6% 6% East East Anatolia Anatolia 40,0 8% 9% Marmara 30,0 27% -3% 20,0 -4% -5% Central Anatolia 10,0 16% Aegean 8% 0,0 Black Se
Slide 13: Turkish Cement Market
Turkish Cement Market • Turkey is the biggest cement producer in Europe, with high capacity utilization rates 90 81 80 75 76 72 73 69 70 12 11 63 19 14 13 60 20 51 49 15 50 46 42 41 43 8 40 7 40 11 11 10 10 64 65 30 9 56 58 51 43 45 43 43 20 36 27 28 31 25 10 0 2001 2002 2003 2004 2005 2006 2007 200
Slide 14: Turkish Cement Market
Turkish Cement Market • 10.7 Mt cement & clinker has been exported from Turkey in Q4 2014. 6,7 5,5 2013 2014 Total Export 2013: 12.4 mton 2014: 10.7 mton 54% 51% 1,2 1,2 1,5 1,0 0,9 0,9 0,7 0,7 0,6 0,5 0,5 0,6 0,2 0,2 12% 10% 12% 9% 7% 9% 5% 6% 6% 6% 4% 5% 2% 2% MENA West Africa CIS Central and Sout
Slide 15: Turkish Cement Market
Turkish Cement Market • A cement market with domestic & foreign players; 49 integrated cement plants & 18 grinding stations Main foreign players: • Vicat • Cementir Main domestic players: • Votorantim • As • Çimsa Joint Venture • Aşkale • Oyak players: • Batıçim • Nuh • Akçansa & Heidelberg Source:
Slide 16: Turkish Cement Market
Turkish Cement Market • Sabancı Cement Group is the leader of Turkish cement market with 17% market share Others 19% Akçansa 9.5% Çimsa 7.5% Votorantim 3% Oyak 14% Vicat 5% Cementir 5% Sanko 6% Limak 10% As 6% Nuh 6% Aşkale 8% 7,5 % of the market belongs to CIMSA Source: Sabanci Cement Group, TÇMB,
Slide 17: CIMSA/About Us: Operational Facts
CIMSA/About Us Operational Facts
Slide 18: Operational Facts
Operational Facts • 5,5 Mt clinker capacity (including 1,1 Mt of white clinker) 12
Slide 19: Operational Facts
Operational Facts • 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyon • 1 grinding station in Ankara, • 2 Cement packing terminals in Marmara and Malatya Marmara Eskişehir Ankara Afyon Kayseri Malatya Denizli Niğde Mersin Antalya 2 13
Slide 20: Operational Facts
Operational Facts • One of the first top three white cement player • An international cement manufacturer with its terminals all around the world CIMSA has international terminals in Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Famagusta (TRNC), Constanta (Romania) and Novo
Slide 21: Operational Facts
Operational Facts Key Operational Figures in Q4 2014 2013 Grey clinker production (kton) 4.310 4.427 White clinker production (kton) 1.050 1.041 ISIDAÇ-40 (kton) 28 28 Grey cement & clinker sales (kton) 5.079 5.361 White cement & clinker sales (kton) 1.178 1.089 RMC sales (km3) 2.439 2.636 15
Slide 22: Operational Facts
Operational Facts • Grey cement & clinker sales of 4,9 Mt, and a white cement&clinker sales of 1,2 Mt in 2014 Grey Cement & Clinker Sales Volumes (Mt) White Cement & Clinker Sales Volumes (Mt) Grey Cement Domestic Sales: 08-14 CAGR: 6% 0,6 0,5 0,3 0,5 0,5 0,9 1,2 4,6 4,9 4,7 0,9 4,0 4,2 0,9 0,9 0,8
Slide 23: Operational Facts
Operational Facts • Grey cement average domestic price is 132 TL (Export price: 48$) • White cement average domestic price is 240 TL (Export price: 98$) in 2014 Grey Cement Domestic/Export Average Price Trend Grey Cement Domestic Sales Prices: 132 08-14 CAGR: 8% 111 101 105 85 88 80 Domestic Prices
Slide 24: Operational Facts
Operational Facts • CIMSA is assumed to serve around 2,4% of the RMC market as of 2014 (2,6% in 2013) Ready Mix Concrete Sales Volumes (M m3) 3,5 2,4 2,6 3,0 2,7 2,6 2,3 0,6 0,5 08 09 10 11 12 13 14 4Q2013 4Q2014 There are 540 players & 980 plants in the market, CIMSA serves with 28 RMC plants CIMSA
Slide 25: Operational Facts
Operational Facts • CIMSA increased its exports to Western Europe, South and North America in 2014 0,6 2013 2014 0,5 Total Export 2013: 1.3 mton 0,4 2014: 1.2 mton 0,3 43% 0,2 39% 0,1 0,1 0,1 29% 0,1 0,1 0,0 0,1 0,0 22% 0,0 14% 11% 10% 8% 7% 6% 4% 5% 0% 2% MENA Western Europe Eastern Europe North Am
Slide 26: CIMSA/About Us: Financial Facts
CIMSA/About Us Financial Facts
Slide 27: Financial Facts
Financial Facts CIMSA’s net cumulative consolidated profit reached to 193 mn TL in 2014 Key Financial Higlights (TL) 2014 2013 Paid in capital 135.084.442 135.084.442 Total equity 1.118.186.038 1.080.935.629 Net consolidated sales 1.094.321.499 953.724.208 Operational consolidated EBITDA (*) 305.747
Slide 28: Financial Facts
Financial Facts CIMSA’s cumulative consolidated net sales reached to 1.094 mn TL in 2014 1094 Domestic Sales: 954 09-14 CAGR: 16% 274 857 250 801 709 239 217 614 196 228 820 704 584 618 513 386 Domestic Export Total 2009 2010 2011 2012 2013 2014 In 2014, 25% of the total cumulative consolidated sale
Slide 29: Financial Facts
Financial Facts CIMSA cement sales constitutes 73% of the total domestic net sales in 2014 (In 2013; 70%) 2014 Cement & RMC Net Sales Breakdown 2013 Cement & RMC Net Sales Breakdown (mn TL) (mn TL) 27% 30% 73% 70% Cement RMC 22
Slide 30: Financial Facts
Financial Facts Cumulative consolidated EBITDA is 306 mn TL in 2014 (2013: 236 mn TL) 350 30% 28% 29% 29% 300 29% 306 28% 250 236 27% 200 26% 210 201 EBITDA 25% 26% 176 150 176 25% EBITDA Margin % 182 25% 25% 100 24% 50 23% 0 22% 2008 2009 2010 2011 2012 2013 2014 EBITDA Margin is 28% in 2014 (2013:
Slide 31: Financial Facts
Financial Facts Cumulative consolidated net profit is 192 mn TL in 2014 (2013: 302 mn TL) 302 38 192 140 12 123 115 108 104 77 180 123 115 124 108 104 77 2008 2009 2010 2011 2012 2013 2014 Net Profit from operations SAHOL Stake Sale Exsa Equity Pick Up YoY increase in net profit from operations, exc
Slide 32: Financial Facts
Financial Facts Total net debt decreased to 56 mn TL as of 2014 (2013: 84 mn TL) 400 350 349 109 300 250 223 200 24 201 79 150 258 6 41 Long Term Borrowings 100 186 27 104 20 31 62 158 83 Short Term Borrowings 50 106 56 87 85 66 41 82 Net debt 0 2007 2008 2009 2010 2011 2012 2013 2014 Total financia
Slide 33: Financial Facts
Financial Facts CIMSA is among the top 25 dividend payer companies in BIST Share performance (TL/per share) Earning per share (TL/per share) 2,15 2,15 2,24 17,4 11,4 1,43 10,1 9,1 0,91 6,2 7,1 6,8 0,85 0,80 0,77 2,6 Market Capitalization (TL) Dividend Paid (Mn TL) / Yield % 2.350 Dividend Paid Divid
Slide 34: Afyon Çimento Investment
Afyon Çimento Investment Afyon’s current production plant which is one of the oldest in the country, will be replaced with a new facility with triple capacity of 1.5mn tons • Ownership of Afyon Çimento: 51% Çimsa, 49% listed in ISE • Investment Amount: 165 mio USD • Capacity: 500 K tonnes will be re
Slide 35: CIMSA/About Us: Achievements
CIMSA/About Us Achievements
Slide 36: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Cement Sustainability Initiative CSI represents about one third of global cement production The Cement Sustainability Initiative (CSI) is a global effort by 25 leading cement producers, with operations in m
Slide 37: Achievements
Achievements Cimsa is leading for a more livable world through its sustainability initiatives Environmental Achievements Çimsa Kayseri Plant was selected as the most Environmentally Friendly industial plant in Turkey by Turkish Ministry of Enviroment and Urban Planning. Çimsa Tece, Aksaray , Misis v
Slide 38: Achievements
Achievements Mersin Waste Heat Recovery System - System definition : Electricity Production from waste heat and gases in Mersin. - Benefits : Decreasing carbon release to the air and decreasing the heat of released carbon to the air. - Net Electricity Production : 46.5 million KWh (2014) - Annual Ca
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