Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS

Akcansa Cimento Sanayi Ve Ticaret A.s — Q4 2010 Earnings Presentation

44 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, Mar 16, 2011

  1. Slide 1: Results Q4 2010

    Results Q4 2010 Istanbul , March 16,2011 1

  2. Slide 2: Contents

    Contents  Market Overview 3  Key Figures  Overview 18  Cement and Readymix Volumes and Prices 19  Company Turnover, Operating Income and Net Income 23  Business Lines  Cement Profit and Loss Results 25  Readymix Profit and Loss Results 26  Profit and Loss Results 27  Cash Flow 28   Prosp

  3. Slide 3: Contents: Market Overview

    Contents  Market Overview  Key Figures  Financial Report  Prospects  General Issues 3

  4. Slide 4: Cement Consumption Trends: Regional Consumption 2010 Forecast

    Cement Consumption Trends : Regional Consumption 2010-Forecast +7%e excl. India & China; +2%e incl. India & China WE Asia -6% Mature EE -2% NA +8% -0% Emerging +1 % Asia MED RIM -2% (excl. -15% +10% -7% India&Chi +5% +10% na) -4% +10 +6%+5%+10% -4% +8% +7% +4% +6%+7% +5% Middle Latin East +12 Americ

  5. Slide 5: Cement Consumption Trends: Regional Consumption 2011 Estimate

    Cement Consumption Trends : Regional Consumption 2011 Estimate WE Emerging -3% Asia EE (excl. NA +14% India&Chi +6% 0% na) MED +7% RIM 0% -8 +5-7% 0% +5% +6% +8 +8% +2% +7% +5% +4% Middle East Latin America +9% +7% +8% +2% 0% Ocenia +2% Traditional Akcansa Export Africa Routes +4% " This presentatio

  6. Slide 6: Capacity Additions

    Capacity Additions New New Country Capacity Capacity Announcements Announced %2010 2010-2016 e Capacity India 92 30% Russia 73 72% Iran 50 67% Indonesia 30 64% Brazil 27 35% Nigeria 22 233% Egypt 17 33% Iraq 10 134% Saudi Arabia 6 16% Syria 6 52% Source: Exane BNP Paribas 2011 report 6

  7. Slide 7: Turkey Macroeconomic Assumptions 2007-2013

    Turkey Macroeconomic Assumptions 2007-2013 10,0% 8,9% 8,1% 8,0% 7,0% 7,0% 7,0% TR-3 Months Government 5,9% 5,9% Deposit Population 8,2% 5,0% Turkey Macroeconomic Indicators Budget 6,0% 4,8% 4,5% Rate, (mio) 4,7% Deficit/GDP Annual,% 4,0% 2007 -1,6% 17,6% 70,3 2,0% 0,7% 2008 -1,8% 20,0% 71,1 2009 -5,

  8. Slide 8: Turkish Cement Sector (1993–2011E)

    About 7% growth is expected in domestic Turkish Cement Sector (1993 – 2011E) cement demand in 2011 80 71,1 71,4 68,6 70 62,2 18,0 60 18,5 50,2 50,6 20,5 50 48,1 47,0 13,7 45,4 8,3 7,2 41,7 mio tons 40,7 41,0 39,5 39,5 40 36,5 37,3 9,7 36,1 34,9 33,2 4 10,7 31,9 4,6 6,6 31,3 3,7 4,6 10,4 4,6 10,4 3,2

  9. Slide 9: Turkish Cement Market (Expectations)

    Turkish Cement Market (Expectations) 2006 2007 2008 2009 2010E 2011E 1. Private Housing 66% 61% 53% 55% 55% 54% 2. Commercial 13% 15% 12% 8% 8% 8% 3. Public 3% 4% 4% 4% 4% 4% 4. Infrastructure/Projects 17% 20% 30% 33% 33% 34% 9 " This presentation/report demonstrates "estimated results" of market re

  10. Slide 10: Turkey Clinker Capacity Distribution

    Turkey Clinker Capacity Distribution First 3 groups form 37% of the Turkish Cement Capacity Others Akcansa Cimsa 23% 10% 7% Oyak 13% Limak 7% CRH-Eren Holdings Nuh 3% As 7% Italcementi 7% 1% Vicat 6% Cementir Cimpor 7% 4% Sanko-Barbetti 5% 10 " This presentation/report demonstrates "estimated result

  11. Slide 11: Turkey Cement Sector Distribution

    Turkey Cement Sector Distribution 48 integrated plants, 17 grinding mills, 65 plants, 22 players Cimpor Limak Nuh Kipas Askale Oyak Tracim Yurt AkcanSA CimSA AS Lafarge Bursa Cementir Titan-ADO Sanko/Barbetti Source: TCMA Italcementi Vicat Sancim Integrated Plants BatıGroup Denizli-CRH Goltas Grindi

  12. Slide 12: Turkish Cement Market, Sales Volumes Change %

    Turkish Cement Market, Sales Volumes Change %, (November YTD) 2008: -5% 2008: -9% 2009: -9% 2009: +11% 2010(Nov): +19 % 2010(Nov): +23% 2008: +4% 2008: -3% 2009: +41% 2009: -1% 2010(Nov): +35 % 2008: -8% 2010(Nov): +21 % 2009: -15% 2010(Nov): +5% 2008: -16% 2008: +10% 2009: +7% 2009: +7% 2010(Nov):

  13. Slide 13: Turkish Cement Market, Clinker Stock Volumes % change

    Turkish Cement Market, Clinker Stock Volumes % change (November YTD) 2009: -44% 2009: +8% 2010(Nov): -6 % 2010(Nov): -67% 2009: -42% 2009: -49% 2010(Nov): -79 % 2010(Nov): -40 % 2009: -19% 2010(Nov): -17% 2009: +47% 2009: +5% 2010(Nov): -16% 2010(Nov): -23% 13 " This presentation/report demonstrates

  14. Slide 14: Coal the main Source of Energy

    Coal the main Source of Energy Source: Exane BNP Paribas 2011 report 14

  15. Slide 15: Steam Coal Prices vs. Petroleum Coke and Oil

    Steam Coal Prices vs. Petroleum Coke and Oil 130,00 API2 VS API 4 VS PACE VS OIL 122 120,00 120 API 4 (USD / MT) PACE (USD / MT) API2 (USD/MT) 118 118 117 BRENT OIL 117 109 110,00 106 103 104 100 101 100,00 USD / MT 99 95 94 94 94 96 93 95 90 93 93 93 90,00 89 92 91 86 89 89 88 84 87 86 84 87 81 82

  16. Slide 16: Baltic Supramax Index

    Baltic Supramex Index 16 Source: HC Trading Research

  17. Slide 17: Contents: Key Figures

    Contents  Market Overview  Key Figures  Financial Report  Prospects  General Issues 17

  18. Slide 18: Financial Highlights YTD'10 vs. YTD'09

    Financial Highlights YTD’10 vs. YTD’09  Turnover is up by 15% to 839,4 mio TL which is at highest level.  Cement&Clinker in total, Readymix sales volumes and Karçimsa sales at highest levels.  Highest clinker production in Çanakkale and Ladik, highest cement production in Ladik.  Higher cost of

  19. Slide 19: Akçansa Sales Volumes

    Akçansa Sales Volumes 486 122 196 995 1.039 4.950 4.813 3.956 535 651 1.495 1.775 2008 2009 2010 2008 2009 2010 DOMESTIC CLINKER SALES EXPORT CLINKER SALES DOMESTIC CEMENT SALES EXPORT CEMENT SALES 5.002 3.744 4.051 2008 2009 2010 READYMIX SALES VOLUMES 19 * These figures include Akçansa and Karçims

  20. Slide 20: Akçansa Export Regions 2010

    Akçansa Export Regions 2010 <70 k ton >100; <70 k ton >100 kton 20

  21. Slide 21: Readymix Special Product Sales %

    Readymix Special Product Sales % 8% 7% 6% 5% 4% 3% 2% 1% 0% 2003 2004 2005 2006 2007 2008 2009 2010 Sales (%) 1% 4% 3% 3% 4% 4% 6% 8% 21 * These figures include Akçansa and Karçimsa results. These figures represent the management report view.

  22. Slide 22: Market Performance Trend 2010

    Market Performance Trend 2010 Cement Readymix 2010 Price 2010 Price Volume Volume (TL/ton) (TL/m3) Domestic Cement General North Marmara Europe South Marmara Asia East Marmara Thrace Aegean Aegean Black Sea Black Sea Cement 2010 Price Volume ($/ton) Export Cement Export Clinker 22 * These figures in

  23. Slide 23: Key Figures (million TL)

    Key Figures (million TL) Q1 Q2 Q3 Q4 839,4 726,9 214,5 188,1 100,4 210,5 13,2 194,6 71,8 33,2 12,9 240,6 205,9 22,2 37,0 28,3 138,3 173,8 16,9 8,3 2009 2010 2009 2010 Turnover Operating Income Operating income in 2010; • volume and price growth, 74,5 • upward trend in the cost structure, 6,8 59,4 •

  24. Slide 24: Contents: Financial Report

    Contents  Market Overview  Key Figures  Financial Report  Prospects  General Issues 24

  25. Slide 25: Cement B/L Profit and Loss Accounts YTD & Q4

    Cement B/L Profit and Loss Accounts YTD & Q4 Operating Income Analysis Full Year - 2010 vs 2009 Mio TL 67,5 -83,6 82,4 -5,8 2,6 63,0 2009 Full Year Net Sales Cost of Sales Operat. Other 2010 Full Year Expenses Inc.&Exp. Operating Income Analysis Mio TL Q4 - 2010 vs 2009 22,2 -19,6 -1,6 0,9 10,6 12,5

  26. Slide 26: Readymix B/L Profit and Loss Accounts YTD & Q4

    Readymix B/L Profit and Loss Accounts YTD & Q4 Operating Income Analysis Mio TL Full Year - 2010 vs 2009 57,9 -68,7 18,0 -0,7 2,2 8,8 2009 Full Year Net Sales Cost of Sales Operat. Other 2010 Full Year Operating Income Analysis Mio TL Expenses Inc.&Exp. Q4 - 2010 vs 2009 5,6 -8,4 2,7 1,1 -0,5 0,5 20

  27. Slide 27: Company B/L Profit and Loss Accounts YTD & Q4

    Company B/L Profit and Loss Accounts YTD & Q4 Net Income Analysis Mio TL Full Year - 2010 vs 2009 107,8 -134,6 74,5 11,5 1,9 59,4 -6,4 4,7 2009 Full Net Sales Cost of Operat. Other Fin. Taxes 2010 Full Year Sales Exp. Inc.&Exp. Inc.&Loss Year Net Income Analysis Mio TL Q4 - 2010 vs 2009 40 25,3 -25,

  28. Slide 28: Cash Flow Statement Jan-Dec 2010

    Cash Flow Statement Jan-Dec 2010 YTD YTD Company Mio TL 2009 2010 Cash flow from operating activities Operating Income before the adjustments in Working Capital 175,0 130,0 Changes in Working Capital (12,5) (19,1) Decrease of provisions through cash payments (3,9) (2,4) 158,7 108,6 Cash flow from in

  29. Slide 29: Contents: Prospects

    Contents  Market Overview  Key Figures  Financial Report  Prospects  General Issues 29

  30. Slide 30: Prospects 2011 and beyond

    Prospects 2011 and beyond • Significant sales volume growth in the domestic market • Continuing growth expectations for the construction business • Sales prices are increasing both in cement and readymix • Electric cost reduction at Çanakkale Plant after mid 2011 following the Waste Heat project • C

  31. Slide 31: Turkey is under construction

    Turkey is under construction Marmaray Sinpaş residence projects New Metro Routes Continuing, 76 km - 320 k m3 Continuing, 500 k m3 (Project Period: 2010-13) • Kabataş - Mahmutbey Hydroelectric Power • 2,4 bio TL • Beylikdüzü – Bakırköy Plant Projects • 2,2 bio TL • As of 2009: • Üsküdar Ümraniye - O

  32. Slide 32: Projects in the Pipeline

    Projects in the Pipeline İzmit – İzmir Highway Çanakkale Bridge Third Bridge Signed, not started Project Project • Highway (421 km) • Çanakkale Bridge (2,2 km) • 1 mio ton cement excluding the • İzmit Bridge accomodation consumption • Highway (13,7 km) • Length 1,7 km • 2 mio ton cement excluding th

  33. Slide 33: Projects in the Pipeline

    Projects in the Pipeline The Bosphorus Tunnel Tunnels Construction in Luxury Housing Projects • Project - 5,4 km İstanbul • (Total value 15 bio TL, starts in • Highway • Project - 140 km 2011) • 1,1 bio USD • 2 mio ton cement • Emaar, Libadiye • Aşçıoğlu, Ali Sami Yen • Lord Norman Foster, Büyükdere

  34. Slide 34: Market and Cost Expectations Trend 2011

    Market and Cost Expectations Trend 2011 Cement Readymix 2011 2011 Price Price Volume Volume (TL/m3) (TL/ton) Domestic Cement General North Marmara Europe South Marmara Asia East Marmara Thrace Aegean Aegean Black Sea Black Sea Cement Energy 2011 2011 Price H1'11 H2'11 Volume ($/ton) Coal Export Ceme

  35. Slide 35: Contents: General Issues

    Contents  Market Overview  Key Figures  Financial Report  Prospects  General Issues 35

  36. Slide 36: Sustainability Report General Information

    Sustainability Report General Information • GRI Approved B Level Report – First Time in Cement Sector, – Second B Level Report in Turkey – This report is published by only 10 firms from different sectors. • It provides information from the period between 2007-2009. • It will be published once in eve

  37. Slide 37: Effects on stakeholders in our value chain

    We are determining and following our effects on shareholders in each level of our value chain and taking necessary actions to improve. 37

  38. Slide 38: Thanks for your attention. Questions?

    Thanks for your attention. Questions? 38

  39. Slide 39: Contacts

    Contacts Gary Whitehead CFO Phone +90 216 571 30 20 gary.whitehead@akcansa.com.tr gary.whitehead@akcansa.com.tr Fax +90 216 571 30 21 Banu Üçer Üçer Communication Officer Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr banu.ucer@akcansa.com.tr Fax +90 216 571 30 11 Info Adress: IR- IR-info@akcansa.

  40. Slide 40: Disclaimer

    Disclaimer This presentation (Presentation) has been prepared by Akçansa Çimento Sanayi ve Ticaret A.Ş. for the sole purpose of providing information relating to Akçansa (Information). This Presentation is based on public information and data provided by Akçansa management and basically demonstrates

  41. Slide 41: Appendix

    newenserccement | a1

  42. Slide 42: Cement B/L Profit and Loss Accounts YTD & Q4

    Cement B/L Profit and Loss Accounts YTD & Q4 YTD Var Q4 Var. Cement Mio TL 2010 YTD'10 vs. YTD'09 2010 Q4'10 vs. Q4'09 Net Sales 567,7 67,5 146,5 22,2 Cost of Sales -472,3 -83,6 -124,2 -19,6 Gross Margin 95,3 -16,1 22,3 2,5 Operating Expenses -27,3 -4,5 -8,1 -0,3 Other Operating Income/Charges -5,0

  43. Slide 43: Readymix Profit and Loss Accounts YTD & Q4

    Readymix Profit and Loss Accounts YTD & Q4 YTD Var Q4 Var. Readymix Mio TL 2010 YTD'10 vs. YTD'09 2010 Q4'10 vs. Q4'09 Net Sales 350,5 57,9 87,9 5,6 Cost of Sales -333,8 -68,7 -85,4 -8,4 Gross Margin 16,7 -10,7 2,5 -2,8 Operating Expenses -7,0 -0,7 -2,0 -0,5 Other Operating Income/Charges -1,0 2,2 0

  44. Slide 44: Profit and Loss Accounts YTD & Q4

    Profit and Loss Accounts YTD & Q4 YTD Var Q4 Var. Company Mio TL 2010 YTD'10 vs. YTD'09 2010 Q4'10 vs. Q4'09 Net Sales 817,4 107,8 208,7 25,3 Cost of Sales -705,3 -134,6 -183,8 -25,5 Gross Margin 112,1 -26,9 24,9 -0,2 Gross Margin % 14% 12% Operating Profit/Loss 71,8 -28,6 12,9 -0,3 Profit/Loss befo

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