Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q3 2022 Earnings Presentation
47 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2022
Slide 1: Investor Presentation 2022
INVESTOR PRESENTATION 2022
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by CIMSA reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever o
Slide 3: Çimsa Cement – History and Development
Çimsa Cement – History and Development rst A new White clinker line with Northern Cyprus second line was Became the first and Grey-White HotDisc (Waste convertible 600.000 tons/year capacity commissioned. With the terminal was acquired. Feeding and Waste only Turkish company convertible line acquisi
Slide 4: A Diversified Cement Player
A Diversified Cement Player Grey Cement White Cement Aluminate Cement Transformation & Big Data Analytics Management, Cultural Transformation and Building Sustainability www.cimsa.com.tr 4
Slide 5: Market Outlook
Market Outlook
Slide 6: Turkish Cement Market
Turkish Cement Market 1,0% growth in 2021. Increase in Turkey domestic cement consumption is recorded 6,0% in 2021. GDP Growth Rate % 23,20% 21,7% 19,4% 16,0% 11,2% 10,2% 14,0% 9,1% 9,9% 12,0% 11,1% 11,0% 4,8% 4,6% 4,7% 6,00% 9,0% 1,6% 10,0% 8,5% 8,5% 7,5% -0,1% 8,0% 7,1% 6,1% 2,1% 6,0% 5,0% 4,8% 5,
Slide 7: Turkish Cement Market
Turkish Cement Market Turkey is the biggest cement producer in Europe, with high capacity utilization rates. Turkey has also 2nd place in World cement export. 100 Mt Cement & Clinker Export (mt) production capacity is 100 Mt Cement & Clinker Domestic Sales (mt) in 2021. Cement Production Capacity (m
Slide 8: Turkish Cement Market
Turkish Cement Market 3% market share based on clinker capacity 23% 13% 13% 10% 7% 7% 6% 5% 5% 5% 5% 4% 4% 4% 3% Oyak Limak Nuh As Vicat Medcem Votorantim Others Anadolu 8
Slide 9: Global White Cement Market
Global White Cement Market Global White Cement Consumption (Mt CC) ▪ Global white cement demand has 21,0 21 decreased by ~3% annually and 20 20 20 20 20 20 20 19 20 20 estimated 20,3 Mt and 20 Mt CC 19 level in 2020 and 2021 respectively. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 10: Global White Cement Market
Global White Cement Market Regional Distribution of White Cement Consumption ▪ Global white cement production capacity reached to 33,9 Mt CC in 2019, while global Russia & white cement consumption is 20,9 Mt . Eastern Europe Northern 6% America 7% ▪ China and Middle East regions have the highest Lat
Slide 11: Overview of Çimsa
Overview of Gimsa wwwcimsacomtr 1
Slide 12: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Aluminated Cements ✓ Establishing a strong & profitable core sification ✓ Export driven revenues and product ✓ Export driven revenues and product ✓ Optimise grey operations - completed diversification diversification ✓ Becoming Global Leader in White Cement
Slide 13: Çimsa Grey – Solid Network
Çimsa Grey – Solid Network 6.2 3.6 Mt 3.6 Mt Grey Clinker Capacity AFYON 1.6 1.7 Mt 3 Integrated Plants in 1.7 Mt White Mersin, , Afyon Clinker Capacity www.cimsa.com.tr 13
Slide 14: Çimsa Grey – Operational Excellence
Çimsa Grey – Operational Excellence September 2022 December 2021 May 2021 AF Usages Afyon AF Plant operational in Feb 2022 Alternative Fuel Investment Supports Financial Performance www.cimsa.com.tr 14 14
Slide 15: The Future for Çimsa’s Business
Export Driven Revenus and Product Diversification Extensive global reach: 65 countries under its The Future for Çimsa’s Business own brand Increased focus on growing FX revenues through the investment in the first production operation abroad: White Cement Grinding Facility in Houston Diversed produc
Slide 16: Çimsa Grey – Strong Export Capabilities
Çimsa Grey – Strong Export Capabilities Export Sales Volume Trend 2018 - 2022 Grey Clinker Export Grey Cement Export 1.030 1.036 957 803 708 710 433 599 595 474 513 291 2018 2019 2020 2021 Q3-2021 Q3-2022 www.cimsa.com.tr 16
Slide 17: Çimsa White – Main Application Areas
Çimsa White – Main Application Areas White Architectural Concrete White cement is the ideal material for concrete works providing an aesthetic finish whilst maintaining high structural performance. It is a versatile and durable material requiring no external treatments or coatings and can replicate
Slide 18: Çimsa White – Market Positioning
Çimsa White – Market Positioning ▪ As of today, white cement sales network expands to over 60 countries through strategically located terminals and long-term distributors. ▪ 7mt in 2021 with the completion of the white line expansion in the plant and the commercial start of the grinding station in H
Slide 19: Çimsa White – Market Positioning
Çimsa White – Market Positioning Distribution ▪ second biggest white cement producer position as well as leader together Latin America 7% with Cementir in global white cement trade. Turkey 10% MENA 26% ▪ Northern America improved from 5,3% to 7,2% in last decade. 12% Russia & Western Europe Eastern
Slide 20: Çimsa White - Overview of the Bunol Plant
Çimsa White - Overview of the Bunol Plant The Plant in Spain Asturias Cantabria País Galicia Vasco Foral de Navarra • The acquisiton of the plant is completed as of July 2021 with an amount of 155 MUSD La by Cimsa Sabanci Cement BV* Castilla y Rioja León Aragón Cataluña • Clinker production capacity
Slide 21: Cimsa Sabanci Cement BV - Organizational Structure
Cimsa Sabanci Cement BV - Organizational Structure Both Holding and are publicly traded companies with free float rates of 45% and 42%, respectively. None of Family Members (31 people) directly and/or indirectly controls more than 10% stake/voting rights of Holding, and Cimsa Cement BV www.cimsa.com
Slide 22: Special Products – Calcium Aluminate Cement - CAC
Special Products – Calcium Aluminate Cement - CAC Market Dynamics Main Areas of Usage Calcium Aluminate Cement provides high stability & performance with, - High early strength - Resistance to chemicals - High final strength - Resistance to abrasion Construction Chemicals 63% Refractory 29% Special
Slide 23: Special Products – CAC Capacity Increase
Special Products – CAC Capacity Increase ▪ Additional 66 kt/year capacity ▪ R&D center with global standards located in Germany ▪ Regional sales and technical support team ▪ Additional customer oriented product development ▪ Full capacity utilization in five years ▪ Reaching ~10% global market share
Slide 24: Special Products – Calcium Aluminate Cement
Special Products – Calcium Alimunate Cement Special Products CAC Sales (Kton) CAC Sales (KUSD) 13.910 12.114 12.091 51 10.525 9.974 10.258 41 39 41 34 35 2018 2019 2020 2021 Q3-2021 Q3-2022 2018 2019 2020 2021 Q3-2021 Q3-2022 www.cimsa.com.tr 24
Slide 25: Sustainability Management at Çimsa
Sustainability Management at Çimsa has restructured the Sustainability Management Committee in order to develop the sustainable business model it focuses on, to strengthen its strategy for the future and to manage it strongly within the company. The aim of the Sustainability Management Committee is
Slide 26: Sustainability Strategy
Sustainability Strategy www.cimsa.com.tr 26
Slide 27: 2021 Integrated Annual Report
2021 Integrated Annual Report Our 6th Integrated Annual Report, which includes 2025 and 2030 targets, has been published. Important Highlights • Data Sets →SASB standard → GRI standard • Value creation model • Roadmap to the climate crisis • Customer experience and sustainable business models • Clim
Slide 28: Six Priority SDGs for Çimsa
SIX PRIORITY SDGS FOR ÇİMSA Sustainable Development Goals at Çimsa announced its ESG (Enviroment- Social-Governance) targets and contribution to SDG (Sustainable Development Goals). www.cimsa.com.tr 28
Slide 29: We shape today for tomorrow
Our 2030 Sustainability Climate Crisis and Governance and Targets Sustainable Business Society and Human Focus Digitalization Models 22% We create sustainable Reduction of net specific CO2 Zero emissions on cementitious product Fatal Accidents stakeholder value through basis low-carbon economy- 40%
Slide 30: Çimsa’s ESG Approach - Environment
Çimsa’s ESG Approach - Environment In 2021, the CDP (Carbon Disclosure Project) In 2021, 3.1% reduction (23 kg Climate Change Report score was increased from B- to B and received B score in the CDP CO2/cementitious) was achieved in Water Report. , net specific CO 2 emissions. For 2022, CDP reports h
Slide 31: Çimsa’s ESG Approach - Environment
Çimsa’s ESG Approach - Environment The autonomous crane-fed waste feeding system at the Afyon Plant was start up in February 2022. Facility-based IREC Certificate The solar power plant investment at the Afyon Plant, with an was obtained from EnerjiSa for installed power of 3.3 MW and an annual produ
Slide 32: Çimsa’s ESG Approach - Environment
Çimsa’s ESG Approach - Environment received the "Outstanding Alternative Fuels Project" award from The Global CemFuels Awards for its project to reduce the impact of waste- derived fuel usage on the cyclone operating process. received award with From Grey to Green which its carbon management project
Slide 33: Çimsa’s ESG Approach - Social
Çimsa’s ESG Approach - Social implemented 2 projects As part of the follow-up, within the scope of implementation and rewarding of Holding new creative ideas of employees In 2021, the number of female employees increased by 16%. with Ya TutarSA, 1,534 new ideas Water awareness training for 3230 set
Slide 34: Çimsa’s ESG Approach - Governance
Çimsa’s ESG Approach - Governance is on the EcoVadis platform to meet customer Within the scope of Borsa Istanbul 1 new policies have been demands. With new answers, Sustainability Index, published in order to improve increased its score from Refinitiv system score increased to the ESG scoring mecha
Slide 35: Operational Results
Operational Results \Wwww.clmsa.com.tr
Slide 36: Operational Results
Operational Results* White Cement & Clinker Sales Volumes (M ton) Grey Cement & Clinker Sales Volumes (M ton) Domestic sales Export sales 1,72 Domestic sales Export sales 5,78 1,5 5,6 1,39 4,9 1,29 1,32 1,39 1,50 4,30 4,7 1,29 4,22 1,20 1,17 3,90 1,13 1,14 4,31 3,98 3,00 3,00 2,96 1,70 1,70 1,56 1,3
Slide 37: Grey Clinker Cost Structure
Grey Clinker Cost Structure 2021 Q3 2022 Q3 1% 3% 10% 8% 25% 26% 63% 64% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other www.cimsa.com.tr 37
Slide 38: Financial Results
Financial Results wwweimsacomtr 28
Slide 39: Financial Result
Financial Result DEC-21 Key Financial Highlight s (M TL) Q3-21 Q3-22 Change % SEP-21 SEP-22 Change % YTD Net Consolidated Sales 891 2431 173% 2533 6026 138% 3.745 Gross Margin % 19% 18% -1,11pp 22% 19% -2,98pp 19% Consolidated EBITDA (*) 153 387 152% 511 995 95% 646 Consolidated EBITDA (*) Margin %
Slide 40: Financial Results
Financial Results Net financial debt decreased from 1.053 MTL in 2021 year end to 22 MTL in 2022 with the proceeds from asset sale. Net Debt 2022 Q3 Net Debt: 22 2021 YE Net Debt:1.053 Q3 Cash: 2.002 MTL YE Cash: 258 MTL Net Debt/EBITDA 5,4 1,6 1,4 0,02 2019YE 2020YE 2021YE 2022Q1 40
Slide 41: Financial Results
Financial Results Net working capital*/ Net Sales was at 15% for 2022 Sep *13 month average 15% ✓ Optimization of production to managing inventory levels ✓ Strong overdue receivable management ✓ Payment term negotiations with suppliers 2022 Working Capital 28% 21% 15% 15% 27% 15% 15% Net working cap
Slide 42: Key Investment Messages
Key Investment Messages ✓ Diversified cement player with special focus on white cement and CAC ✓ A strong grey cement player with a balanced and diversified portfolio ✓ ✓ Solid balance sheet with disciplined risk management initiatives ✓ ESG pioneer in Turkish Cement industry
Slide 43: Appendix – Financial Statements
Appendix – Financial Statements 28
Slide 44: Balance Sheet
Balance Sheet MTL 2022 Q3 2021 YE MTL 2022 Q3 2021 YE Current Assets 5.776 2.240 Current Liabilities 4.120 1.936 Cash and cash equivalents 2.002 258 Borrowings* 2.052 957 Trade receivables 1.666 901 Trade payables 1.758 647 Other receivables 1 1 Derivative financial liabilities 0 28 Derivative finan
Slide 45: Income Statement
Income Statement 2022 Q3 Income Statement (MTL) 2022 9M 2021 9M Q3 2022 Q3 2021 Sales 6.026 2.533 2.431 891 Cost of sales (-) -4.900 -1.984 -1.988 -719 GRO SS PRO F IT 1.126 549 443 172 General and administrative expense (-) -231 -123 -100 -48 Marketing, selling and distribution expense (-) -9 -9 -3
Slide 46: Cash Flow
Cash Flow MTL 2022 9M 2021 9M A. CASH FLOWS FROM OPERATING ACTIVITIES 876,6 -217,0 Profit before taxation 2.848,1 773,0 Adju s t m ent s t o r ec onc ile net pr ofit /los s for t he per iod -1.684,0 -218,9 C hang es in wor king c apit al -297,8 -692,8 C as h flows fr om oper at ions 866,3 -138,7 Int
Slide 47: www.cimsa.com.tr
www.cimsa.comtr
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