Akcansa Cimento Sanayi Ve Ticaret A.s. · BIST:AKCNS
Akcansa Cimento Sanayi Ve Ticaret A.s — Q1 2019 Earnings Presentation
29 slides from Akcansa Cimento Sanayi Ve Ticaret A.s's earnings presentation, 2019
Slide 1: AKÇANSA 2019 Q1 Results
AKÇANSA 2019 Q1 Results Umut Zenar, CEO Steffen Schebesta, CFO
Slide 2: 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
Slide 3: Content
Content Page 1. Market Overview 4 2. Financial Report 13 3. Outlook 19 3
Slide 4: Key Highlights
Key Highlights ▪ 2019 Q1 ✓ Total cement volumes roughly in line with prior year. Domestic cement volumes declined by 38%, offset by 263% increase in cement/clinker exports. ✓ Increased energy costs exerted pressure, particularly on domestic margins. Good development in the export markets offset some
Slide 5: Turkey Domestic Demand Growth 2018
Turkey Domestic Demand Growth 2018 60,0% 59% 59% +6% 40,0% 33% -24 % 20% 20,0% 16% 10% 16% 6% 5% 9% -1% -2% -5% 0,0% 5% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 -2% -8% -6% -8% -11% -20,0% -11% -28% -40,0% -32% -35% -44% -60,0% Turkey Monthly YoY Turkey YTD
Slide 6: Domestic Sales Volume Change % (Jan'19 YTD)
Domestic Sales Volume Change % (Jan’19 YTD) January YTD -51% decrease Harsh winter weather and high 2018 comparison base Source: TCMA 6
Slide 7: Turkish Export Volume Trend – FY 2018
Turkish Export Volume Trend – FY 2018 Turkish clinker exports increased by 23% in 2018 Source: TCMA and Akçansa estimations 7
Slide 8: Turkish Cement Industry Export Volumes (kt) – YTD Mar'19
Turkish Cement Industry Export Volumes (kt) – YTD Mar’19 Total exports up 78% Source: OAIB • Others don’t include land exports and white CEM+CLK exports, • Sonmez Adana exports not included above 8
Slide 9: Akçansa Export Markets
Akçansa Export Markets West Africa, USA and Israel are the major export markets in 1Q19 1Q18 Other 0.1% West Africa 37.3% LA Cement 62.6% 0,4 mt USA Clinker 0,4 mt 1Q19 Colombia Israel 8.8% 2.4% 55.1% West Africa USA 33.7% Q1 Exports up 263% from 0.3 to 0.8 mt Source: AKC management report 9
Slide 10: Sales Volume Breakdown
Sales Volume Breakdown Cement Shipments RMC Shipments [M ton] 3.0 [M m3] 1.5 -2% 1.7 1.7 1.0 -41% 1.5 0.9 -38% Domestic 1.4 0.5 Export 0.8 263% 0.8 0.5 0.3 0.0 1Q18 1Q19 0.0 1Q18 1Q19 *) Domestic cement figures include Karçimsa and transfer to RMC 10
Slide 11: Energy Costs (1Q19 vs 1Q18)
Energy Costs (1Q19 vs 1Q18) 1Q19 vs Energy Price 1Q18 Coal (USD/t) Coal (TL/t) Petcoke (USD/t) Petcoke (TL/t) Diesel (TL/lt) Electricity (TL/kwh) ▪ Higher electricity and fuel prices (in TL) lead to strong increase in Increasing energy costs in Q1 2019 Slightly increasing Flat ▪ Negative price effec
Slide 12: Content
Content Page 1. Market Overview 4 2. Financial Report 13 3. Outlook 19 12
Slide 13: Income Statement
Income Statement % Ch. Company (M TL) 1Q18 1Q19 YTD Net Sales 387,6 407,3 5,1% Cost of Sales (317,8) (373,0) 17,4% Gross Margin 69,8 34,3 -50,8% Marketing&Sales Expense (4,5) (6,2) 36,6% General Management Expenses (16,2) (20,7) 28,0% Other Operating Income/Charges 0,6 (0,3) 146,0% Operating Income
Slide 14: Cash Flow
Cash Flow Company (M TL) 1Q18 1Q19 Cash flow from operating activities Operating income before the changes in working capital 73,8 37,1 Changes in working capital (11,0) (34,3) Taxes paid (8,9) (3,0) Other items (0,9) (3,9) 53,0 (4,0) Cash flow from investing activities Tangible and intangible fixed
Slide 15: CAPEX
CAPEX M TL 60 134 140 115 113 120 42.4 44.2 98 100 40 30.9 80 20.3 60 20 40 14 2.6 20 0 0 2015 2016 2017 2018 2019 Q1 Total Capex (mTL) Total Capex in (mUSD) FY 2019 Capex to stay clearly below 2018 15
Slide 16: Net Debt / EBITDA
Net Debt / EBITDA M TL 2.1 500 455 423 426 450 1.8 406 384 383 400 1.5 1.5 1.4 333 350 1.2 304 1.2 290 300 1.2 1.1 1.1 1.0 250 0.9 0.8 0.7 200 0.6 150 100 0.3 50 0.0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Net debt Net Debt/EBITDA* (LTM) Source: CMB financials (*) EBITDA = Operating Income +
Slide 17: Balance Sheet
Balance Sheet Variance 2019 Variance Mio TL 31.12.2018 31.03.2019 vs 2018 Mio TL 31.12.2018 31.03.2019 2019 vs 2018 Current Assets 996,0 918,5 (77,5) Current Liabilities 864,8 1.026,1 161,3 Cash & cash equivalents 275,4 136,7 (138,7) Financial Liabilities 461,5 562,2 100,7 Trade receivables 443,9 44
Slide 18: Content
Content Page 1. Market Overview 4 2. Financial Report 13 3. Outlook 19 s 18
Slide 19: Global Cement Consumption
Global Cement Consumption [bn ton] 5 China -2% Global without China 4.1 4.1 4.1 4.1 4.2 4.1 4.0 4 3.8 3.6 3.3 3.0 3 2.8 2.8 2.3 2.2 2.4 2.5 2.3 2.4 2.3 2.1 2.2 1.9 1.3 1.4 1.6 2 1 1.9 2.0 1.6 1.6 1.6 1.6 1.8 1.7 1.8 1.4 1.5 1.4 1.5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e
Slide 20: Overview of Major Projects in the Marmara
Overview of Major Projects in the Marmara Major urban transformation areas in Istanbul Tunnel Istanbul (8m m3) North Marmara Highway (2.500k m3) 3rd Airport – Expected effect on Turkey Gayrettepe Metro Halkalı- 3rd Airport Cendere Region • Conversion of 6.500k housing units in 20 years Line (1m m3)
Slide 21: 2019 Outlook
2019 Outlook Compared to 2018: ▪ Total cement volumes expected to increase, driven by roughly doubling of export volumes 2019e Energy Price ▪ Increase in alternative fuel usage from 13.1% (in 2018) to FY above 20% will partially offset increased energy costs Coal (TL/t) ▪ Increased energy costs and
Slide 22: Follow Us
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Slide 23: Contacts
Contacts Steffen Schebesta, CFO Phone +90 216 571 30 20 Fax +90 216 571 30 21 Dr.Barış Ergen, FPA & IR Manager Phone +90 216 571 30 50 baris.ergen@akcansa.com.tr Fax +90 216 571 30 31 IR.info@akcansa.com.tr Banu Üçer, Corporate Communication Manager Phone +90 216 571 30 13 banu.ucer@akcansa.com.tr F
Slide 24: Appendix
HEIDELBERGCEMENT | QQBANCI Appendix 24 ia) yy INVESTORS Gold 4” IN PEOPLE oh” © ed
Slide 25: EBITDA Margins
EBITDA Margins EBITDA Margin - Quarterly % 35 31.8 31.2 31.8 30.3 30 26.5 27.0 26.9 25.0 23.6 24.6 24.2 25 22.1 20 18.1 18.2 16.0 14.8 15 11.1 10 5 0 Q1 Q2 Q3 Q4 EBITDA Margin - YTD % 35 29.6 30.1 29.2 29.3 30 26.5 27.9 27.9 25.0 23.5 25 22.9 19.6 20.3 20.7 20 18.1 17.2 16.0 14.8 15 10 5 0 3M 6M 9M
Slide 26: Dividend Paid, Dividend Yield and Payout Ratio
Dividend Paid, Dividend Yield and Payout Ratio Dividend Paid Dividend Yield % Payout Ratio % 257.6 11.2 90.9 91.6 91.2 89.8 237.2 86.1 226.3 9.2 8.7 152.8 6.6 6.8 128.0 2015 2016 2017(*) 2018 2019 2014 2015 2016 2017 2018 2014 2015 2016(*) 2017 2018 (**) *) Adjusted for extraordinary gain from sale
Slide 27: Annual Mortgage Interest Rate
Annual Mortgage Interest Rate as of Apr 19 % 27,8 28 26 24 22,8 22 21,0 20 18 17,0 16 15,0 +2,0 14 13,0 13,2 12 10 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 Jan 2019 Feb 2019 Mar 2019 Apr 2019 Source: TCMA and TBB 27
Slide 28: General Basics About Cement and RMC Production
General Basics About Cement and RMC Production Production ▪75-85% clinker is consumed to produce 1 ton of cement ▪250-300 kg of cement in 1 m3 RMC produced ▪1.5-2.0 ton of aggregate in 1 m3 RMC produced depending on the type of RMC produced ▪Distribution of cement production cost : 80-85% variable a
Slide 29: Sabancı Foundation
Sabancı Foundation guided by love for humanity for 45 years, continues its activities for women, youth and persons with disabilities in 3 areas: EDUCATION CULTURE-ARTS SOCIAL CHANGE SABANCI FOUNDATION SHORT FILM COMPETITION 190 SABANCI UNIVERSITY CHANGEMAKERS SABANCI INTERNATIONAL 20 MN+ GRANTS ADAN
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