2016 q3 results - akcansa · global market trend (2/2) continuing correlation in growth performance...
TRANSCRIPT
Slide 1
2016 Q3 Results
Umut Zenar, GM
Dr. Carsten Sauerland, CFO
Slide 2
1. Market Overview Pages
Market Trends 4
Cement and Clinker Volume 17
Readymix Volume 19
Export Regions 20
2. Financial Report
Income Statement 23
Cash Flow 25
Dividend Policy 27
Capex Distribution 28
Net Debt / EBITDA 29
Balance Sheet 30
3. Outlook 32
4. Awards, PR and Other Activities 35
Agenda
Slide 3
1. Market Overview
Market Trends 4
Cement and Clinker Volume 17
Readymix Volume 19
Export Regions 20
2. Financial Report
Income Statement 23
Cash Flow 25
Dividend Policy 27
Capex Distribution 28
Net Debt / EBITDA 29
Balance Sheet 30
3. Outlook 32
4. Awards, PR and Other Activities 35
5. Appendix 42
Content
Slide 4
Source: Global Cement Report 2015 11th Edition, CemWeek Monthly Reports
4,14,04,14,03,8
3,63,3
3,02,82,8
2,62,3
2,22,0
1,8
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
2012 2011 2013 2010 2003 2002 2009 2008 2007 2006 2005 2004 2016 E
+6,2% -2,7%
+2,5%
2014 2015
Bt
Global Cement Demand
CAGR
Global Market Trend (1/2) Global cement demand is expected to be 4,1b ton in 2016
Slide 5
Source: Global Cement Report 2015 11th Edition, CemWeek Monthly Reports, Exane BNP Paribas Reports
* Developed Countries: Western Europe, North America, Developed Far East, Australia & New Zealand
-20
-15
-10
-5
0
5
10
15
2.3
2002
8.8
2001
-0.3
2.2
2000
-0.6
2006
-1.1
-8.6
5.9
1.3
2008
-17.5
2009
9.8
2007
7.1
-2.0
2005
10.2
0.1
5.6
0.9
%
1.9 2.0
6.3
10.1
2004 2003
3.5
2016 E 2015
1.2
1.1
2014 2012
-0.8
3.4
2013
1.7
2.1
-3.8
5.7 6.0
-1.8
2011
2.3
2010
2.7
Developed Countries* Rest of the World -ex China
Global Market Trend (2/2) Continuing correlation in growth performance of developed and other countries
Slide 6
This presentation/report demonstrates "estimated results" of market research done by Akçansa Çimento Sanayi ve Ticaret A.Ş. in addition to Turkish Cement Manufacturers’
Association figures
Turkish Cement Industry Domestic cement consumption is expected to increase by 5% to hit 68,4mt in 2016
Source: TCMA and AKC estimations
31,525,3 26,8 28,1 30,7
35,543,3 45,3 42,6 42,5
50,856,5 57,6
63,5 64,6 65,1 68,46,6
8,610,4 10,4
10,7
10,5
7,28,5 14,6
20,4
18,814,3 13,2
11,8 10,7 12,114,3
39,5 39,5 40,7 41,343,5
45,5
46,948,1
62,7
68,170,8 71,9 73,6
76,4 78,3
83,5
90,0
0
10
20
30
40
50
60
70
80
90
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 E
mio tons
Domestic Consumption Export Cement+Clinker
Cement Production Capacity - 90 % Cement Production Capacity - 90 % with imports
Slide 7
Turkish Cement Industry on a Map 55 integrated plants, 18 grinding mills, 72 plants, 23 players and nearly 40% of the Turkish
cement capacity hold by top 3 groups
SONMEZ
MEDCEM
Baskil
• Sabancı Cement Group is the leader of
Turkish cement market with 16% market share
based on clinker capacity.
Source: TCMA, Sabancı Cement Group and Annual reports
YURTÇİM
Votorantim
Other
24%
3%
Nuh
9%
Akçansa
7%
Çimsa
14% Oyak
9%
Limak 7%
Askale 5%
Cementir
6%
Sanko
5%
As
5%
Vicat
5%
Slide 8
Key Operational Highlights
Istanbul (Ambarlı)
Operation Capacity
1.600.000
Istanbul (Büyükçekmece)
Cement Production Capacity
2.600.000
Clinker Production Capacity
1.950.000
Samsun
Operation Capacity
120.000
Artvin (Hopa)
Operation Capacity
120.000
Samsun (Ladik)
Cement Production Capacity
1.050.000
Clinker Production Capacity
650.000
Karabük (Karçimsa)
Cement Production Capacity
200.000
Yalova
Operation Capacity
300.000
Kocaeli (Yarımca)
Operation Capacity
700.000
İzmir (Aliağa)
Operation Capacity
350.000
Çanakkale
Cement Production Capacity
5.500.000
Clinker Production Capacity
4.450.000
Ready-mixed concrete
Production capacity
7 million m3
Number of RMC plants
35
CEM
• 3 cement plants
• 7,0m ton clinker capacity
• 9,3m ton cement capacity
RMC
• 35 RMC plants
• 7 million m3 RMC capacity
Ports
• 2 ports
• Ambarlı & Çanakkale
Terminals
• 9 domestic terminals
• 4,0m ton total operating capacity
Kocaeli (Derince)
Operation Capacity
300.000
Tekridağ (M.Ereğlisi)
Operation Capacity
240.000
Akçansa at a Glance
Trabzon
Operation Capacity
240.000
Slide 9
-25
-20
-15
-10
-5
0
5
10
15
20
25
%
1981 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 E
5.0
0.8 1.6
-2.4
10.1
2.1
10.9
19.0
0.3
-4.2
3.6
22.6
14.4
9.1
4.8 6.9
-20.4
0.0
12.7
16.3
-4.0
Real GDP Growth Domestic Cement Demand Growth (%)
Cement Consumption & GDP Growth Relation in Turkey Expected multiplier factor again higher than «1» unlike 2014&2015
Factor: Cement consumption growth/GDP growth
Source: TCMA and AKC estimations
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E
Factor* 0,0 2,2 0,9 0,8 0,9 1,7 3,3 0,8 -6,0 -0,1 2,1 1,2 1,0 2,5 0,6 0,3 1,4
Slide 10
Source: Sabancı Holding and Akcansa assumptions
859
832837836770
764
696
590599645
624
518
453420406
0
100
200
300
400
500
600
700
800
900
3,000
8,000
4,000
5,000
6,000
7,000
9,000
10,000
11,000
2003
4,565
2002
3,492
10,380
2014
9,139
2016E 2015
10,822
2013
10,003
2010 2012
10,428
2011
9,084
10,459
7,036
2004
$
2006 2005
7,597
Kg
5,775
10,444
9,247 8,561
2008 2009 2007
GDP Per Capita ($) Cement Consumption Per Capita (kg)
Cement Consumption & GDP Per Capita in Turkey Positive correlation except 2014
Slide 11 Source: TCMB, TOKI
0,961,011,001,01
1,141,151,161,181,201,201,20
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
November
0,09
August July June May April March February January September October
Housing Loan Interest Rates Decreasing rates observed coming to the end of 2016 and expected to continue with the support
of Government
• Mortgage interest rates of many government banks
are below 0,95% (p.m.)
• TOKİ’s campaign and support of government banks
still continue with lower interest rates and attractive
payment schedules
• Housing stocks are expected to be decreased with
the decreasing trend of rates and government
incentives
Slide 12
Source: TUIK and TCMA
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E
1. Private Housing 62% 57% 50% 51% 54% 52% 53% 53% 51% 45% 45%
2. Commercial 14% 16% 13% 9% 11% 10% 11% 9% 10% 9% 9%
3. Public 4% 5% 5% 5% 5% 5% 5% 5% 5% 7% 7%
4. Infrastructure/Projects 20% 22% 32% 35% 30% 33% 31% 33% 34% 39% 39%
Total cement consumption 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Cement Consumption Components in Turkey Shift from private housing to infrastructure and big ticket projects
Slide 13
Taşdelen – Çekmekoy Metro Project (1.500k m3)
3rd Bridge Connecting Highway (1.000k m3)
Sinpaş Küçükçekmece (150k m3)
Çatalca TOKI Project (250k m3)
Istanbul Finance Center Project (2.000k m3)
Özak GYO – Zeytinburnu Housing Project (400k m3)
Eurasia Tunnel Project (450 m3)
3rd Airport (2.000k m3) Major urban transformation areas in Istanbul
• Expected effect on Turkey • Conversion of 6.500k housing units in 20 years • 260.000k m3 RMC consumption
Major Investments on a Map Akcansa is a big beneficiary of increasing large infrastructure projects in Marmara region because
it’s located closer than the peers
Çanakkale Bridge (1.500k m3)
Izmit Bridge Connections & Highways (500k m3)
Mahmutbey Meto Project (1.000k m3)
Büyükçekmece Port Project (200k m3)
Göztepe-Ataşehir Metro Project
(1.000k m3)
Sancaktepe Sabiha Gökçen Project
(600k m3)
Güneşli TOKI Project (500k m3)
North Marmara Highway (2.500k m3)
Bostancı Metro Project (1.200k m3)
Slide 14
Akçansa Port Operations Akçansa is sustainably increasing revenues from its Ambarlı port through container handling,
general cargo, Ro-Ro operations and bulk handling
Slide 15
9%
9%
-11%
10%
12%
6%
12%
Domestic Sales Volume Change (September YTD) Cement demand in Turkish domestic market increased by 8% as at September 2016
Source: TCMA
Slide 16
16-15(August): -2% 2016(August):1,094kt
16-15(August): -0% 2016(August):445kt
16-15(August): -18% 2016(August): 503kt 16-15(August): +89%
2016(August): 556kt
16-15(May): +7% 2016(May): 347kt
16-15(August): -58% 2016(August): 362kt
16-15(August): -10% 2016(August): 1,533kt
Source: TCMA
Clinker Stock Level Change (September YTD) Total clinker stocks are 4,8mt with a 10% decrease in stock level compared to the last year’s figure
Slide 17
Akçansa continues to benefit from
lower energy costs
We are in fully hedged position in
petrocoke supply for FY16
Volume, Price and Energy Cost Trends of Akçansa Increase in domestic cement sales and shift from export clinker to export cement
Source: AKC management report
Domestic Cement
Marmara
Aegean
Black Sea
VolumePrice
(TL/ton)
Domestic Cement
9M16 vs 9M15
Export Cement
Export Clinker
VolumePrice
($/ton)
9M16 vs 9M15
Export
VolumePrice
(TL/m3)
General
Marmara
Aegean
Black Sea
9M16 vs 9M15
Readymix
Coal (USD / ton)
Petrocoke (USD / ton)
Diesel (TL / Lt)
Electricity (TL / kwh)
9M16 vs
9M15Energy Costs
Slide 18
Domestic
Export
*) Domestic cement figures include Karçimsa and transfer to RMC
100%
80%
60%
40%
20%
0%
[%]
+19%
+81%
9M2016
4.0%
14.8%
1.1%
80.1%
9M2015
7.9%
10.3% 0.1%
81.6%
Product Mix
Export Clinker
Export Cement
Domestic Clinker
Domestic Cement
0,9
4,54,7
0,4
0,6
0,0
1,5
3,0
4,5
6,0
[M ton]
9M2016
5,8
0,2
0,1
9M2015
5,5
0,0
Shipments
Cement Sales Breakdown Higher domestic cement and total CEM&CLK volume in 9M16 due to the expanding operations of
terminals
Source: AKC management report
Slide 19
3,2
2,8
[M m3]
-13%
RMC Sales
9M16
9M15
15
10
5
0
[%] -2.4
Vertical Integration Ratio
11.5
13.9
9M15
9M16
*) RMC figures include RMC sales of Karçimsa
**) Vertical integration ratio is calculated by dividing transfer of cement to RMX business line to total cement sales volume
* **
Ready Mix Concrete Sales Breakdown More strategic, innovation and pricing oriented sales strategy rather than volume in RMC
Source: AKC management report
Slide 20
<50 k ton >50; <100k ton >100 k ton
West Africa
has been
keeping its
importance in
total export
Major export
market is USA
in 9M16
LATAM
12.2%
North Africa
2.9%
USA
50.6%
West Africa
32.2%
2.1%
Other
9M15
9M16
Export Markets Shift from West Africa to USA
Source: AKC management report
63.0%
5.0%
USA
North Africa
32.0%
West Africa
Slide 21
Index Value
Baltic Dry Index Index is still lower than the 5 year average with an increasing trend in 9M16
Source: Bloomberg
Index Value
Last 5-year period
Last 12 month period
Slide 22
Content
1. Market Overview
Market Trends 4
Cement and Clinker Volume 17
Readymix Volume 19
Export Regions 20
2. Financial Report
Income Statement 23
Cash Flow 25
Dividend Policy 27
Capex Distribution 28
Net Debt / EBITDA 29
Balance Sheet 30
3. Outlook 32
4. Awards, PR and Other Activities 35
5. Appendix 42
Slide 23
Source: CMB financials and AKC calculations
Income Statement
Company (M TL)3Q15 3Q16
Var. 3Q16 vs.
3Q15 % Ch. Q 9M15 9M16
Var 9M16
vs.9M15 % Ch. YTD
Net Sales 360,6 352,3 (8,3) -2,3% 1.070,6 1.088,2 17,6 1,6%
Cost of Sales (250,8) (241,0) 9,9 -3,9% (752,1) (770,1) (18,0) 2,4%
Gross Margin 109,8 111,3 1,5 1,4% 318,5 318,1 (0,4) -0,1%
M&S Expenses (3,6) (3,6) (0,0) 0,3% (12,1) (13,1) (1,0) 7,9%
G&A Expenses (11,3) (14,4) (3,1) 27,7% (36,6) (42,9) (6,3) 17,2%
EBIT 94,9 93,3 (1,6) -1,7% 269,8 262,1 (7,7) -2,8%
Other Operating Income/(Charges) (1,0) (2,4) (1,5) 156,8% (4,3) (6,7) (2,4) 55,9%
Operating Income 94,0 90,9 (3,1) -3,3% 265,5 255,4 (10,1) -3,8%
Income/(Losses) from Investment Activities 0,6 26,9 26,3 4060,3% 20,6 51,0 30,4 147,0%
Financial Income/(Charges) (6,0) (8,8) (2,8) 46,3% (18,2) (25,1) (6,9) 37,7%
Profit/Loss before Taxes 88,6 109,0 20,4 23,0% 267,9 281,3 13,4 5,0%
Tax Expenses (17,5) (17,1) 0,4 -2,5% (49,4) (47,4) 2,0 -4,1%
Net Income/Loss 71,1 91,9 20,8 29,3% 218,5 233,9 15,4 7,1%
Gross Margin % 30,4% 31,6% 1,1% 29,7% 29,2% -0,5%
EBITDA Margin % 31,3% 31,7% 0,4% 30,1% 29,1% -1,0%
EBIT Margin % 26,3% 26,5% 0,2% 25,2% 24,1% -1,1%
Net Income Margin % 19,7% 26,1% 6,4% 20,4% 21,5% 1,1%
Slide 24
2,0
6,930,4
2,4
7,3
18,017,6
230
235
225
240
220
0
215
210
Income&Loss
from
Investments
Fin. Inc.&Loss 9M15 Cost of Sales Net Sales
233,9
9M16 Operat. Exp. Other
Inc.&Exp.
Taxes
M TL
218,5
Net Income Bridge
Source: CMB financials and AKC calculations
Slide 25
Cash Flow
Source: CMB financials and AKC calculations
9M15 9M16
Cash flow from operating activities
Operating income before the changes in working capital 326,9 345,5
Changes in working capital (75,2) (109,3)
Taxes paid (42,2) (45,9)
Other items (13,7) 5,6
195,8 195,9
Cash flow from investing activities
Tangible and intangible fixed assets (66,0) (74,1)
Financial assets (0,1) -
Proceeds from fixed asset disposals 3,7 3,1
Dividends Received 19,9 23,1
(42,5) (47,9)
Cash flow from financing activities
Dividend payments (227,6) (259,2)
Net proceeds from bonds and loans 173,8 148,6
Interest paid (9,4) (26,1)
Other items 0,6 0,3
(62,6) (136,4)
Net change in cash and cash equivalents - continuing operations 90,6 11,6
Change in cash & cash equivalents 90,6 11,6
Cash & cash equivalents at 1 January 13,3 21,9
Cash & cash equivalents at 30 September 103,9 33,5
Company (M TL)
Slide 26
MTL
259.2 74.1 -136.9
196.4
Net debt reduction CAPEX Dividend paid Adj. operating cash flow *
M TL
227.6 66.0 -83.1
210.5
Cash Flow Usage
9M15 9M16
*) Operating cash flow is adjusted for dividends received, interest paid and other items
Source: CMB financials and AKC calculations
Slide 27
226,3
144,4
110,0
88,7
257,6
+14% +31%
+24%
+31%
+57%
2016 2015 2014 2013 2012
Dividend Paid, gross M TL
2016
8.7
2015
6.8
2014
6.6
2013
5.2
2012
5.6
Dividend Yield, %
2015
91.6
2014
90.9
2013
91.5
2012
91.2
2011
88.5
Payout Ratio %
**
Dividend Paid, Dividend Yield and Payout Ratio
**) CAGR (Compound Annual Growth) of dividend paid amount for the last four years
There has not been any change in dividend payment policy throughout years
Source: CMB single financials and AKC calculations
Slide 28
Key Investments in 9M16:
Cement Business Line:
1. (I&G) Wind turbine investment (CNK)*
2. (L&E) Process automation of kiln, raw and coal mill
(LDK)**
3. (I&G) Dedusting of plant (BCM)***
Ready Mix Concrete (RMC) Business Line:
1. (I&G) New RMC plant investments in Gebze and Çatalca
2. (I&G) Capacity increase and relocation of RMC Plant in
BCM*** Plant
40%40%
46%40%
13%19%
100%
80%
0%
20%
40%
60%
%
9M5 9M16
Improvement & Growth (I&G) Legal & Environment (L&E) Replacement (Rep)
*) Çanakkale Plant
**) Ladik Plant
***) Büyükçekmece Plant
26,6 29,8
26,7
34,3
12,8
10,0
0
10
20
30
40
50
60
70
80
9M16
+12%
74,1
9M15
M TL
66,0
Capex Distribution
Source: CMB financials and AKC calculations
Slide 29
29
241226
249230
91
179
225
7085
151
247
163
263285
0,6
0,4
0,2
0,40,6
1,0
1,2
1,3
0,50,60,60,7
0
50
100
150
200
250
300
350
400
450
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
1,8
M TL
3Q16 2Q16 1Q16 4Q15
0,2
3Q15 2Q15 1Q15
0,2
4Q14 3Q14 2Q14 1Q14
0,8
4Q13 3Q13 2Q13
256
1Q13
Net Debt/EBITDA (LTM) Net debt
205
82
428
322
209
79
390
311
201
85
198
108
34
317
29,127,925,0
30,129,6
26,528,828,3
26,2
22,7
19,7
14,5
29,3
0
50
100
150
200
250
300
350
400
450
0
5
10
15
20
25
30
35
2Q16 1Q16 4Q15 3Q15 2Q15 1Q15 4Q14
27,6
3Q14 2Q14 1Q14 4Q13
269 22,5
3Q13 2Q13 1Q13
M TL
3Q16
EBITDA Margin EBITDA
Net Debt / EBITDA & EBITDA Margins
Slide 30
Balance Sheets
Source: CMB financials and AKC calculations
M TL 30.09.2015 31.12.2015 30.09.2016
Variance
9M16 vs
FY15 M TL 30.09.2015 31.12.2015 30.09.2016
Variance
9M16 vs
FY15
Current Assets 646,7 569,3 607,4 38,1 Current Liabilities 427,3 326,7 505,3 178,5
Cash & cash equivalents 103,9 21,9 33,5 11,7 Financial Liabilities 172,9 12,4 259,8 247,4
Trade receivables 368,1 398,9 435,6 36,7 Trade payables 214,1 271,1 196,3 (74,8)
Inventories 151,8 135,2 129,4 (5,9) Tax payable 17,1 14,0 15,9 1,9
Other current assets 22,9 13,3 8,9 (4,4) Other current liabilities 23,2 29,2 33,3 4,1
Non-current Assets 1.096,7 1.135,8 1.148,1 12,3 Non-current Liabilities 183,1 177,8 79,5 (98,3)
Financial investments 206,3 212,9 208,0 (4,9) Financial Liabilities 110,0 100,5 - (100,5)
Fixed Assets 755,2 786,4 803,8 17,4 LT provisions 27,7 30,0 32,9 2,9
Goodwill 129,5 129,5 129,5 - Deferred tax liabilities 45,5 47,2 46,6 (0,6)
Deferred tax assets 1,0 1,0 1,0 (0,0) Other non-current liablities - - - -
Other non-current assets 4,8 6,0 5,8 (0,2) - -
Shareholders Equity 1.133,0 1.200,6 1.170,7 (29,9)
Paid in Capital 191,4 191,4 191,4 -
Retained earnings 554,8 554,8 578,3 23,5
Comprehensive income 156,7 159,8 155,2 (4,6)
Net income 216,8 281,1 233,3 (47,9)
Minority interest 13,3 13,4 12,5 (0,9)
-
TOTAL ASSETS 1.743,4 1.705,1 1.755,5 50,4 TOTAL LIABLILITES & EQUITY 1.743,4 1.705,1 1.755,5 50,4
BS data and key ratios 30.09.2015 31.12.2015 30.09.2016
Variance 9M16
vs FY15
Working Capital 305,8 263,1 368,7 105,6
Work ing Capital / Net Sales (LTM) 21,8% 17,9% 24,8% 6,9%
Net debt 178,9 91,1 226,3 135,2
Net debt / EBITDA (LTM) 0,4x 0,2x 0,5x 0,3x
Net Debt / Equity 15,8% 7,6% 19,3% 11,7%
Slide 31
s
Content
1. Market Overview
Market Trends 4
Cement and Clinker Volume 17
Readymix Volume 19
Export Regions 20
2. Financial Report
Income Statement 23
Cash Flow 25
Dividend Policy 27
Capex Distribution 28
Net Debt / EBITDA 29
Balance Sheet 30
3. Outlook 32
4. Awards, PR and Other Activities 35
5. Appendix 42
Slide 32
(*) Latest forecast compared to 9M16
(*) Latest FY forecast compared to FY15
Compared to FY15:
Higher cement volume with stable prices in
domestic market while export prices are decreasing
Decrease in volume of RMC but higher sales prices
Compared to 9M16:
Spot prices of petrocoke prices are at top level of
2016
100% of petrocoke requirement of AKC hedged for
2016
2016 Outlook – Energy price update No major change expected in sales prices and sharp movement in input spot prices
Volume Price
Domestic Cement (TL/t)
Export Cement ($/t)
Export Clinker ($/t)
RMC (TL/m3)
ExpectationsFY16
2016E
FY
Coal (USD / ton)
Petcoke (USD/ton)
Diesel (TL / Lt)
Electricity (TL / kwh)
Energy Price
Slide 33
-0,5%
6%
-10%
6%
6%
6%
4%
Marmara Black Sea
Mediterranean
Aegean
Central Anatolia
East Anatolia
South East Anatolia
Regional Sales Volumes - 2016 Expectation Strong demand in all regions except East and South East Anatolia
Source: AKC estimations based on TCMA data
Slide 34
Content
1. Market Overview
Market Trends 4
Cement and Clinker Volume 17
Readymix Volume 19
Export Regions 20
2. Financial Report
Income Statement 23
Cash Flow 25
Dividend Policy 27
Capex Distribution 28
Net Debt / EBITDA 29
Balance Sheet 30
3. Outlook 32
4. Awards, PR and Other Activities 35
5. Appendix 42
Slide 35
3rd Bridge opened! One hundred and ten thousand vehicles pass through 3rd Bridge per day
Slide 36
Awards, PR and Other Activities The American Concrete Institute (ACI) excellence reward
Slide 37
Awards, PR and Other Activities (continued) Betonik City in Minecraft entitled «Felis Success Award»
Slide 38
38
Awards, PR and Other Activities (continued) Betonik Ideas Project competition has started
Slide 39
Follow Us
Slide 40
Contacts
Dr. Carsten Sauerland, CFO
Phone +90 216 571 30 20 [email protected]
Fax +90 216 571 30 21
Eralp Tunçsoy, IR Executive
Phone +90 216 571 30 67 [email protected]
Fax +90 216 571 30 31
Banu Üçer, Corporate Communication Executive
Phone +90 216 571 30 13 [email protected]
Fax +90 216 571 30 11
Info Adress: [email protected]
Websites www.akcansa.com.tr
www.betonsa.com.tr
www.sabanci.com.tr
www.heidelbergcement.com
Slide 41
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 forward looking statements based on numerous assumptions regarding our present and future
business strategies and the environment in which we will operate in the future.
Please be aware that the forward looking statements and/or assumptions of future events declared in the
Presentation and/or in the Information may not prove to be accurate.
No warranty or representation, express or implied, as to the accuracy, reliability, completeness, or timeliness of this
Information is made by Akçansa.
No profitability or any other warranty is claimed by the Information provided either on company or sectoral basis.
No liability/responsibility is accepted by Akçansa for any loss or damages of any kind, incurred by any person for any
information howsoever arising from any use of this Presentation or the Information.
The Information contained at this Presentation has been included for general informational purposes only and no
person should make any investment decisions in reliance upon the information contained herein.
Akçansa shall not be held responsible for any kinds of losses that may rise from investments and/or transactions based on this Presentation or Information or from use of this Information and/or Presentation.
Slide 42
Appendix
Slide 43
Turkey Clinker Capacity Distribution
Source: TCMA
First 3 groups form nearly 40% of the Turkish Cement Capacity
Others 24%
Votorantim 3%
Nuh Cement
5%
Vicat
5%
As
5%
Sanko
6% Cementir
5% Askale
7%
Limak 9%
Oyak
14%
Çimsa
7%
Akçansa
9%
Slide 44
Akçansa Port Operations Port operations contribute for higher profit
Ro-Ro Operation:
International U.N RO-RO operation will enhance the
profitability of port business line
Maersk Partnership:
Akçansa started collaborating with Maersk in
container handling. This business partnership is
expected to grow in the upcoming future
Slide 45
Akçansa Port Operations Akçansa Port joined Logitrans International Lojistics Expo and attracted many new customers for
potential business opportunities
Slide 46
Energy Always Matters
To increase efficiency on energy
usage
Flexibility in use of petrocoke and coal
Use of import channels of HC Trading
firms
High-sulfur petrocoke usage permit
Hedging coal purchases to minimize cost
inflation risk
Active electricity portfolio management
Canakkale Plant has been using shreded
tire as alternative fuel since 2012
To increase alternative fuel usage
Alternative fuel feeding system investment
in Canakkale Plant
Agreement with Recydia Waste
Management Company
Continue to import shredded tire
Planned to have RDF import license like
shredded tire
Primary Alternative
Slide 47
EBITDA Margins
EBITDA Margin* - Quarterly
0
5
10
15
20
25
30
35 31.7
Q4
26.9 23.6
21.8 19.3
Q3
31.2 30.0 27.6
21.9
Q2
30.2 31.7 30.0
23.7 22.5
Q1
24.9 26.4
%
26.2
14.4 16.8
2016 2015 2014 2013 2012
EBITDA Margin* - YTD
0
5
10
15
20
25
30
35
%
29.1
12M
29.2 27.6
22.4 20.3
9M
30.1 28.8
22.6 20.7
6M
27.8 29.5 28.3
19.7 20.1
3M
24.9 26.4 26.2
14.4 16.8
*) Excludes the depreciation and amortization amount attributable to other operating expenses.
Source: AKC management report
Slide 48
Akçansa Sustainability Approach
Sustainability
Committee
Biodiversity Sustainable
Construction
Energy
&
Fuel
CO2 Reporting
• GRI Approval, January 2011
• First report in its sector
• 2nd report was approved as of June 2012
• 3rd report was approved as of November 2014
• Microalg pool in Canakkale Plant
Slide 49
General Basics About Cement and RMC Production
Production
1,6 ton limestone is consumed to produce 1 ton of clinker
75-90% 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 : 75-80 variable and 20-25% fixed costs
Fuel
A cement plant of 1 mio ton clinker capacity may consume 100 k ton petrocoke or 130 k ton coal, or a mix of both
7.500 kcal/ton in petrocoke vs. 6.000 kcal/ton in coal.
Fuel accounts for 30-35% of the variable cost of producing 1 ton of cement
1% increase in alternative fuel usage have 1,5-2 mTL cost advantage per year
Electricity
Electricity accounts 25-30% of the variable cost of producing 1 ton of cement.
0,01 TL increase in cost of 1 kwh electricity corresponds to 1-1,5 TL cost increase in 1 ton of cement.
Contribution of waste heat project
33% of Çanakkale Plant electricity consumption
Monthly contribution to P&L of Akcansa will be around 1-1,5m TL based on current electricity prices
Contribution of one windmill
1,7% of Çanakkale Plant electricity consumption
1,4-1,6m TL saving
Capacity is 3,5 MW