Cimsa Cimento Sanayi Ve Ticaret A.s. · BIST:CIMSA
Cimsa Cimento Sanayi Ve Ticaret A.s — Q1 2023 Earnings Presentation
43 slides from Cimsa Cimento Sanayi Ve Ticaret A.s's earnings presentation, May 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION May 2023
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Çimsa Çimento Sanayi ve Ticaret A.Ş. (“CIMSA”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 3: Çimsa Cement – History and Development
Çimsa Cement – History and Development The World’s first A new White clinker line with Northern Cyprus Eskişehir’s 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 compan
Slide 4: Çimsa & Sabancı Building Solutions - Organizational Structure
Çimsa & Sabancı Building Solutions - Organizational Structure ✓ Both Sabancı Holding and Çimsa are publicly traded companies with free float rates of 45% and 42%, respectively. ✓ Sabancı Building Solutions is consolidated into Çimsa Financial Statements by Equity Pick Up methodology Sabancı Building
Slide 5: A Diversified Cement Player
A Diversified Cement Player Grey Cement White Cement Aluminate Cement Transformation & Big Data Analytics Management, Cultural Transformation and Building Next Generation Çimsa Sustainability www.cimsa.com.tr 5
Slide 6: Strategy Roadmap
Strategy Roadmap Grey Cement White Cement Special Products Establishing a strong & profitable core High profitable new age products Being Global Leader in White Cement • Produce new age products with R&D • Optimise grey operations • Ensure successful integration of Bunol Plant (Spain-Bunol) • Çimsa
Slide 7: 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 8: Market Outlook
Market Outlook
Slide 9: Turkish Cement Market
Turkish Cement Market Turkey’s GDP growth realized 11,0% 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% 11,4% 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,
Slide 10: 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 Turkey’s total cement Cement & Clinker Export (mt) production capacity is 100 Mt in Cement & Clinker Domestic Sales (mt) 2022. Cement
Slide 11: Turkish Cement Market
Turkish Cement Market Sabancı Cement Group is one of the leaders of Turkish cement market with 13% market share based on clinker capacity 22% 13% 14% 10% 7% 7% 6% 5% 5% 5% 4% 4% 4% 4% 3% Oyak Limak Akçansa Çimsa Aşkale Sanko Nuh As Cementir Batı Vicat Medcem Votorantim Others Anadolu 11
Slide 12: Global White Cement Market
Global White Cement Market Global White Cement Consumption (Mt CC) ▪ Global white cement demand is 21 21 forecasted to be around 21 mt in 20 20 20 21 21 21 20 20 20 20 19 19 2021 & 2022 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *2022 www.cimsa.com.tr 12 Source: CW Global White
Slide 13: 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 Latam 5% Ch
Slide 14: Overview of Çimsa
Overview of Cimsa wwwelmsacomtr 14
Slide 15: Çimsa Grey – Solid Network
Çimsa Grey – Solid Network 3.6 6.2 Mt ESKİŞEHİR 3.6 Mt Grey Clinker Capacity AFYON MERSİN 1.7 1.6 Mt 3 Integrated Plants in 1.7 Mt White Mersin, Eskişehir, Afyon Clinker Capacity www.cimsa.com.tr 15
Slide 16: Çimsa Grey – Operational Excellence
Çimsa Grey – Operational Excellence March 2023 December 2022 December 2021 May 2021 AF Usages Afyon AF Plant operational in Feb 2022 Alternative Fuel Investment Supports Financial Performance www.cimsa.com.tr 16 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, Çimsa’s white cement sales network expands to over 60 countries through strategically located terminals and long-term distributors. ▪ Çimsa sales of white cement and clinker stood at 1.7mt in 2022 with the completion of the white line expansion in the
Slide 19: Çimsa White – Market Positioning
Çimsa White – Market Positioning Çimsa White Cement & Clinker Sales Regional Distribution ▪ Çimsa is one of the top three producers in global white cement sector. Latin America 7% Turkey ▪ Çimsa’s market share in global white cement market 10% MENA 26% improved from 5,3% to 7,2% in last decade. ▪ Bu
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 Buñol plant is completed as of July 2021 with an amount of 155 MUSD La by Sabancı Building Solutions BV* Castilla y León Rioja Aragón Cataluña • Clinker product
Slide 21: 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 22: 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 23: Special Products – Calcium Alimunate Cement
Special Products – Calcium Alimunate Cement Special Products CAC Sales (Kton) CAC Sales (KUSD) 15.209 13.910 12.114 51 54 10.525 9.974 41 34 35 5.207 17 4.117 13 2018 2019 2020 2021 2022 Q1-2022 Q1-2023 2018 2019 2020 2021 2022 Q1-2022 Q1-2023 www.cimsa.com.tr 23
Slide 24: Sustainability
Sustainability 24
Slide 25: Sustainability Management at Çimsa
Sustainability Management at Çimsa 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 Committ
Slide 26: Overview of Çimsa’s Sustainability Roadmap & Targets
Overview of Çimsa’s Sustainability Roadmap & Targets The main targets included in Çimsa's agenda within the scope of Sabancı Holding's sustainability roadmap are given below: ✓ Reaching zero work accident with international standards in Occupational Health and Safety practices ✓ Being Net Zero Emiss
Slide 27: Sustainability Targets
Sustainability Targets Our 2030 Sustainability Climate Crisis and Governance and Digitalization Targets Sustainable Business Models Society and Human Focus 22% Reduction of net specific CO2 Zero We create sustainable emissions on cementitious product Fatal Accidents stakeholder value through basis l
Slide 28: Science Based Targets
Science Based Targets • On March 30 2023, a • Goal development and validation processes during • Target communication • Annual emission commitment was made to Q2-Q4 studies after SBTi approval reporting set a near-term reduction • Time to deliver target after commitment: 24 months target for carbon
Slide 29: Positive Impact Focused on People and Society
Positive Impact Focused on People and Society Disaster Management Studies Marmara Region Risk Situation Analysis The advantages and disadvantages of the company were determined. In 2023, the scope of the projects will Workshop on Management of Natural be expanded and will continue. Hazards Su Nefest
Slide 30: Governance
Governance 2022 Integrated Annual ESG Ratings Policy/Procedure CDP Report Report Çimsa raised to the A score in the Çimsa's 7th Integrated Annual Supplier Engagement Rating (SER), Report was published in March 2023. Evaluation studies for BIST ✓ Responsible Purchasing Policy, which is evaluated with
Slide 31: Operational Results
Operational Results 3 \Wwww.clmsa.com.tr
Slide 32: Operational Results
Operational Results* White Cement & Clinker Sales Volumes (M ton) Grey Cement & Clinker Sales Volumes (M ton) Domestic sales Export sales Domestic sales Export sales 1,39 1,39 1,50 1,72 1,68 0,45 0,33 4,90 4,70 5,60 5,78 5,07 1,03 0,91 1,50 1,47 1,29 4,30 4,22 1,20 3,90 3,80 1,13 3,00 1,70 1,70 1,56
Slide 33: Grey Clinker Cost Structure
Grey Clinker Cost Structure 2022 2023 4% 3% 7% 8% 25% 31% 56% 64% Raw Material Fuel Electricity Other Raw Material Fuel Electricity Other www.cimsa.com.tr 33
Slide 34: Financial Results
Financial Results wwweimsacomtr 28
Slide 35: Financial Result
Financial Result Key Financial Highlights (MTL) MAR-22 MAR-23 Change % DEC-22 Net Consolidated Sales 1.355 2.363 74% 8.582 Gross Margin % 13% 18% 4,91pp 17% Consolidated EBITDA (*) 137 314 129% 1.236 Consolidated EBITDA (*) Margin % 10% 13% 3,16pp 14% Net Consolidated Profit** 124 252 102% 3.432 (*)
Slide 36: Financial Results
Financial Results 2023 Q1 Net Debt: 1.022 2022 YE Net Debt: 110 YE Cash*: 2.207 MTL YE Cash: 1.603 MTL Net Debt/EBITDA 5,4 1,6 1,4 0,09 0,7 2019YE 2020YE 2021YE 2022YE 2023 Q1 36 *Financial investments (FX Protected Deposits & Eurobonds) have been included.
Slide 37: Financial Results
Financial Results Net working capital*/ Net Sales was at 15% for 2023 Q1 *13 month average ✓ Optimization of production to managing inventory levels ✓ Strong overdue receivable management ✓ Payment term negotiations with suppliers 15% Net working capital / Net Sales is at 15% for 2023 Q1 Working Cap
Slide 38: 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 ✓ Open to growth initiatives together with Sabancı Holding through Sabancı Building Solutions BV ✓ Solid balance sheet with disciplin
Slide 39: Appendix – Financial Statements
Appendix – Financial Statements 28
Slide 40: Balance Sheet
Balance Sheet MTL 2023 Q1 2022 Q1 MTL 2023 Q1 2022 Q1 Current Assets 5.950 5.938 Current Liabilities 4.938 4.990 Cash and cash equivalents 2.207 1.603 Borrowings* 3.011 2.796 Trade receivables 1.701 1.869 Trade payables 1.192 1.829 Other receivables 1 1 Derivative financial liabilities 0 0 Derivativ
Slide 41: Income Statement
Income Statement 2023 Q1 Income Statement (MTL) 2023 2022 Sales 2.363 1.355 Cost of sales (-) -1.939 -1.178 GROSS PROFIT 424 177 General and administrative expense (-) -137 -67 Marketing, selling and distribution expense (-) -8 -3 Research and development expense (-) -4 -2 Other operating income 70
Slide 42: Cash Flow
Cash Flow MTL 2023 2022 A. CASH FLOWS FROM OPERATING ACTIVITIES (240) 33 Profit before taxation 238 139 Adjus t ment s t o r ec onc ile net pr ofit /los s for t he per iod 104 4 C hanges in wor king c apit al (548) (124) C as h flows fr om oper at ions (206) 18 Interest received 16 27 Payments relat
Slide 43: wwweimsacomtr
wwweimsacomtr 28
Çimsa Çimento Sanayi ve Ticaret A.Ş. — Q1 2023 Earnings Presentation on 6ix