Polisan Holding As · BIST:POLHO
Polisan Holding As — Q2 2018 Earnings Presentation
31 slides from Polisan Holding As's earnings presentation, August 2018
Slide 1: Polisan Holding August 2018
Polisan HOLDING August 2018
Slide 2: Notice
NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially due to factors discussed in Polisan Holding’s prospectus filed
Slide 3: Grows via new partnerships and business lines
POLİSAN HOLDİNG: GROWS VIA NEW PARTNERSHIPS AND BUSINESS LINES * CHEMICAL PORT PAINT AGRICULTURE REAL ESTATE ACTIVITIES OPERATIONS 93% 100% 100% FOREIGN 50% 40% PARTNERSHIP 80% FOREIGN SUBSIDIARY 100% 100% 3 * The ratios in this graphic show Polisan Holding’s direct and indirect share in the related
Slide 4: Holding strategy: to maximize shareholder value
POLİSAN HOLDİNG STRATEGY: TO MAXIMIZE SHAREHOLDER VALUE Sustaining Profitable Growth of Existing Businesses Maximizing Intra-Group Synergies Forming Strategic Alliances to Expand in High Margin, New Business Lines Exploring New Markets and Becoming a Global Brand through Polisan’s Innovative Product
Slide 5: Executing strategic priorities since IPO
POLİSAN HOLDİNG: EXECUTING STRATEGIC PRIORITIES SINCE IPO CAGR 2012 - 2017 1.550 1,500.7 Revenues: 21.2% 24000,00% 22000,00% 1.350 EBITDA: 22.9% 20000,00% 14.2% 1.150 1,092.3 18000,00% 1,021.9 16000,00% 950 15.5% 868.9 14000,00% 15.0% 750 656.6 12000,00% 573.9 13.3% 10000,00% 550 8000,00% 13.6% 350
Slide 6: Strong financial results in 2017
POLİSAN HOLDİNG: STRONG FINANCIAL RESULTS IN 2017 Combined Revenues: TRY1,500.7 mln Consolidated Revenues: TRY749.6 mln Other Chemical Other 8% Operations -1% 41% Port 19% Paint Chemical 42% Port Operations 9% 82% Combined EBITDA: TRY213.3 mln (EBITDA Margin: 14.2%) Consolidated EBITDA: TRY111.4 mln
Slide 7: Turkey paint industry: 5th largest market in Europe
TURKEY PAINT INDUSTRY: 5. LARGEST MARKET IN EUROPE TURKEY PAINT INDUSTRY POLİSAN KANSAİ BOYA With ~$2.2 billion, Decorative Segment, which has Growing Production Over the Years Europe’s 5th largest market ~60% share, drives growth 3% 2%1%1% 7% 6% 5% 4% 60% 11% 1985 1987 1989 1991 1993 1995 1997 1999
Slide 8: Kansai Boya's differentiation strategy: excellence
POLİSAN KANSAİ BOYA’S DIFFERENTIATION STRATEGY: EXCELLENCE 1 PRODUCT 2 SALES 3 SERVICE 4 QUALITY § Introduced Home § Turkey’s first water based § World’s first exterior § Global brand awareness Cosmetics concept to the new generation mix system insulation insurance with quality certificates World §
Slide 9: Strategy: continue leadership with profitable growth
STRATEGY: CONTINUE LEADERSHIP WITH PROFITABLE GROWTH There are 18 million households in Turkey to be renovated and isolated Young & growing Obligation to isolate Renovation and new population exterior walls buildings Insulation Revenues Auxiliary Products Revenues INDUSTRIAL 2008-2017 CAGR: 44% FURN
Slide 10: Future: reinforcing Polisan Boya's undisputed leadership
FUTURE: REINFORCING POLİSAN BOYA’S UNDISPUTED LEADERSHIP 50% PARTNERSHIP WITH KANSAI PAINT TRIALS AT THE NEW FACILITY STARTED Ø Kansai Paint’s main products are automotive, industrial, Ø 142,000 sqm land at Gebze Chemical Specialization Organized decorative, protective, and auto refinish coatings In
Slide 11: Turkey seaborne trade: 5th in Europe
TURKEY SEABORNE TRADE: 5th IN EUROPE TURKEY OUTPACED THE EU PORTS WITH 62% GROWTH IN 10 YEARS 600.000 500.000 471,174 400.000 300.000 291,573 200.000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Netherlands UK Italy Spain Turkey Germany CARGO HANDLED (2007-2017): 11.9% -17.1% 3.2% 12.2% 1
Slide 12: Turkey seaborne trade: Marmara handles the foremost cargo
TURKEY SEABORNE TRADE: MARMARA HANDLES THE FOREMOST CARGO CARGO HANDLED IN TURKEY IN 2017 TOTALED 471 MILLION TONS CARGO TYPES Bulk Vehicle Liquid 2% Container 33% 8% 23% 39% Black Sea Marmara General Dry Bulk Cargo 27% 15% 16% REGIMES Aegean Transit 13% Cabotage 13% 37% Mediterranean Foreign Trade
Slide 13: Kocaeli Port: pioneer in Turkey and among top 10 in EU
KOCAELI PORT: PIONEER IN TURKEY AND AMONG TOP 1O IN EU KOCAELİ PORT IS TURKEY’S STRATEGIC GATEWAY LOCATED WHERE 45% OF TURKEY’S GDP IS GENERATED 2. IN TOTAL CARGO HANDLED Ø Among EU’s 10 Major Ports Ø 1st in Foreign Trade (Import/Export) Ø 1st in Cargo Handled (Turkey’s total) 471 mln ton/2017 2017
Slide 14: Poliport: leading independent chemical storage terminal
POLIPORT: LEADING INDEPENDENT CHEMICAL STORAGE TERMINAL 2017 REVENUE SHARE § Handling Turkey’s 3. export item; Chemicals § Reputable clientele since 1990‘s BULK LIQUID § 237,000 m3 capacity STORAGE 59% § 165 tanks (size: 100 m3 - 6,200 m3) SERVICES § Terminal Capacity: 2.5 million tons § Jetty: 250
Slide 15: Poliport: poised for profitable growth
POLIPORT: POISED FOR PROFITABLE GROWTH TEM highway 3 Railway Warehouse 1 Bulk Liquid Storage 2 3 Dry Bulk and General Cargo Loading & Bulk Liquid Unloading Loading & Unloading KEY FEATURES OPPORTUNITIES Ø Services on a 160,000 m2 land Ø New business opportunities with multinational Ø Terminal and Ge
Slide 16: Chemical activities: expanding internationally
CHEMICAL ACTIVITIES: EXPANDING INTERNATIONALLY... FOREIGN INTERNATIONAL TURKEY INVESTMENT PARTNERSHIP POLİSAN ROHM & HAAS POLİSAN POLİSAN KİMYA (DOW) MAROC HELLAS (Chemicals) (Construction Chemicals) § Polisan Kimya - a subsidiary § International investment in § Operational in Greece § Formaldehyde
Slide 17: Polisan Kimya: Turkey's leading chemicals producer
POLİSAN KİMYA: TURKEY’S LEADING CHEMICALS PRODUCER PRODUCTS § 1st formaldehyde resin producer in Turkey to be used in production (wood particleboard, REVENUE SHARE* paper impregnation, MDF, plywood), and insulation (glass wool, rock wool) § Turkey is ranked the 5th in the world in wood panel consump
Slide 18: Polisan Hellas: PET business in Greece
POLİSAN HELLAS: PET BUSINESS IN GREECE TRANSACTION HIGHLIGHTS UTILIZING LOGISTIC SYNERGIES Ø Polisan Hellas bought 100% of the assets of Artenius Ø Facility established on a 75,000 m2 land with all Hellas in Greece required infrastructure and staff Ø Polisan Hellas is being controlled by Polisan Hol
Slide 19: Holding's properties: ~TRY1,104 million
POLİSAN HOLDİNG’S PROPERTIES: ~TRY1,104 MILLION ONGOING PROJECTS PRODUCTION FACILITIES OTHER PROPERTIES Z OFFICE PENDIK POLIPORT POLISAN LANDS & REAL ESTATES 26 shops, 77 offices 178,720 m2 land 154,672 m2 90,142 m2 Partially available to invest TRY55 mln*** TRY212 mln TRY418 mln* TRY161 mln TRY258
Slide 20: Polisan Tarım: trial studies continue
POLİSAN TARIM: TRIAL STUDIES CONTINUE WALNUT OLIVE STEVIA ü Cooperation with Atatürk ü On 4.4 million square ü On 2.5 million square University, Faculty of meter land in Balıkesir meter land in Karacasu Agriculture ü Development of a 100% native variety including high useful glycoside BUSINESS LINE
Slide 21: Profitable revenue growth in 2Q 2018
POLİSAN HOLDİNG: PROFITABLE REVENUE GROWTH IN 2Q 2018 CONSOLIDATED (TRY mln) REVENUE EBITDA & EBITDA MARGIN NET INCOME* CAPEX 749.6 120 20,00% 83.0 18.2% 111.4 17.4% 76.7 480.2 100 16,00% 85.7 13.1% TRY436.8 mln one time* 80 470.3 14.9% 12,00% 45.6 60 11.4% 47.2 270.6 8,00% 228.8 40 195.8 29.9 22.4
Slide 22: Strong operational performance in 1H18
POLİSAN HOLDİNG: STRONG OPERATIONAL PERFORMANCE IN 1H18 1H 2018 Combined Revenues 1H 2017 – 1H 2018 Revenue and EBITDA Margin Evolution Chemical 1200 52.2% 55,0% Activities Other 44.9% 43.0% 3.3% 1000 45,0% 800 35,0% 600 25,0% 15.4% 17.8% 16.8% 14.5% 13.3% 12.2% 400 10.6% 10.4% 15,0% 8.7% 4.2% 200 5
Slide 23: 1H 2018 cash position
POLİSAN HOLDİNG: 1H 2018 CASH POSITION STRONG BALANCE SHEET TRY mln* - 1H18 TL FX 29% Balance Sheet (TRY mln) 1H 2017 1H 2018 Cash 62.3 Cash & Cash Equivalents 45.6 62.3 71% Current Assets 366.3 537.8 Non-Current Assets 1392.7 1581.6 15% TOTAL ASSETS 1,758.9 2,119.4 Short Term Debt 159.0 187.7 ST De
Slide 24: Revised 2018 guidance
POLİSAN HOLDİNG: REVISED 2018 GUIDANCE 2017 ACTUAL 2018 TARGETS 2018 GUIDANCE TRY750 mln Annual Poliport: 10% - 15% 20%* Poliport: TRY140 mln Polisan Kimya: more than growth Revenue Polisan Kimya:TRY300 mln 15% compared to Growth Polisan Hellas: TRY318 mln Polisan Hellas: more than 2017 Polisan Kans
Slide 25: Poised for further growth
POLİSAN HOLDİNG: POISED FOR FURTHER GROWTH PAINT PORT CHEMICAL REAL ESTATE AGRICULTURE OPERATIONS ACTIVITIES Revenue CAGR: 12.9% Revenue Revenue Z Office Walnut CAGR: 24.2% CAGR: 33.5% Project: plantation on EBITDA CAGR: Completed in 4.4 mln m2 15.4% EBITDA CAGR: EBITDA CAGR: 2014 land 27.5% 25.6% O
Slide 26: Back up
Polisan HOLDING
Slide 27: Milestones
POLİSAN HOLDİNG: MILESTONES 2017 Polisan Boya EPD Certificate 2016 2015 50% Partnership 2014 Pendik Project 2013 Z Office Project Launch of Polisan POS 2012 Loyalty Program Introduced «Home 2011 Cosmetics» concept globally 2009 Production of concrete 2008 additives and AdBlue© 2006 Launch of Mix Cen
Slide 28: Board of directors
POLİSAN HOLDİNG: BOARD OF DIRECTORS Bundesaufbau Gymnasium University of Boston ,USA Production Deutsche High School Wirtschafts Universität (BSc), Austria Engineer (BSc) and Mechanic Engineer Bosphorus University, Industrial Engineer (BSc) Chairman of Polisan Holding, Polisan (MSc) Board member of
Slide 29: Executive committee
POLİSAN HOLDİNG: EXECUTIVE COMMITTEE University of Istanbul, Faculty of Law Saint Joseph High School At Polisan Holding since 1976 University of Istanbul, Chemical Engineer (BSc) Polisan Holding CEO since 2005 University of Brussels, Petrochemicals (MSc) Executive Committee member of Polisan Holding
Slide 30: Social responsibility projects and sponsorships
SOCIAL RESPONSIBILITY PROJECTS AND SPONSORSHIPS WOMEN YOUTH ENVIRONMENT/ART Ø EVERY VOICE, ONE BREATH Ø POLİSAN SCHOOLS Ø 100,000 trees Ø Since 2012 Ø M. Emin Bitlis Primary School Ø International İstanbul Biennial Ø Has been granted 3 Ø Polisan Secondary School Official Sponsorship prestigious awar
Slide 31: Thank you
THANK YOU Telephone 0 216 5785600 Fax 0 216 5737792 yatirimciiliskileri@polisanholding.com.tr E-mail investorrelations@polisanholding.com.tr www.polisanholding.com.tr