Borusan Birlesik Boru Fabrikalari Sanayi ve Ticaret Anonim Sirketi · BIST:BRSAN
Borusan Birlesik Boru Fabrikalari Sanayi ve Ticaret Anonim Sirketi — Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş. — 9M 2023 Earnings Presentation
17 slides from Borusan Birlesik Boru Fabrikalari Sanayi ve Ticaret Anonim Sirketi's earnings presentation, November 2023
Slide 1: Investor Presentation January - September 2023
INVESTOR PRESENTATION January - September 2023
Slide 2: Legal Disclaimer
Legal Disclaimer Some information in this presentation may contain certain “forward-looking statements”, including, without limitation BORUSAN MANNESMANN BORU SANAYİ ve TİCARET A.Ş. (Company)’s business projects, strategic objectives, future revenues, anticipated savings, financial results (includin
Slide 3: Borusan Mannesmann: Local Player of Global Markets
BORUSAN MANNESMANN: LOCAL PLAYER OF GLOBAL MARKETS ▪ Borusan Mannesman (“BMB”), is among the pioneer manufacturers in Europe’s and the world’s steel pipe sector. ▪ Founded in 1958, BMB is the first industrial company of Borusan Group. 77% 23% ▪ In 1994, the Company’s shares have been quoted on Borsa
Slide 4: Sustainable Growth in Target Markets
SUSTAINABLE GROWTH IN TARGET MARKETS FACILITY PRODUCT SECTOR YEAR CAPACITY (tons) 3 Continents TR - Halkalı ERW and Cold Drawn Pipe Industry & Construction 1958 100,000 - welded 40,000 - drawn Industry & Construction, TR - Gemlik ERW Pipe 1976 550,000 Infrastructure & Project, Energy 11 Facilities T
Slide 5: Increasing Stakeholder Value Through Growth Oriented Investments
INCREASING STAKEHOLDER VALUE THROUGH GROWTH ORIENTED INVESTMENTS 2023 2019 Berg Pipe’s LSAW 75% 2011 Gemlik Automotive Pipe Line (1979) Facility in, Florida and HSAW Gemlik HSAW Pipe established (2007) Facility in Global Market* Facility commenced Alabama acquired for Revenue Share operations $162 m
Slide 6: Four Business Lines Managing Risks with Their Potential
FOUR BUSINESS LINES MANAGING RISKS WITH THEIR POTENTIAL INFRASTRUCTURE INDUSTRIAL AUTOMOTIVE ENERGY & PROJECT & CONSTRUCTION Revenue Breakdown* 15% 19% 13% 53% • Gemlik (TR) • Gemlik (TR) • Halkalı (TR) Production • Gemlik (TR) • Panama City (USA) • Halkalı (TR) • Gemlik (TR) Centers • Houston (USA)
Slide 7: Strong Revenue Share in Global Markets
STRONG REVENUE SHARE IN GLOBAL MARKETS REGIONAL BREAKDOWN 9M22 (%) REGIONAL BREAKDOWN 9M23 (%) EXPORT REVENUES ($ mln) 328 EU 278 3% USA EU USA 41% 4% 63% 73% 75% Turkey 25% 113 Exports* Turkey Exports* 28% 27% 10% 2021 END 2022 END 9M2023 Revenue share of global markets increased to 75% as of 9M 20
Slide 8: Normalization of Revenue as a Result of Supply-Demand Balance in 3Q 2023
NORMALIZATION OF REVENUE AS A RESULT OF THE SUPPLY- DEMAND BALANCE IN 3Q 2023 SALES VOLUME (ton) REVENUE (mln $) EBITDA (mln $) &EBITDA MARGIN (%) PROFIT BEFORE TAX (mln $) NET INCOME (mln $) 9.7% 24.6% 142.8% 326.9% 327.7% 1,164 35, 00% 400 ,00 934 390 ,00 380 ,00 370 ,00 360 ,00 11.7% 5.8% 30, 00%
Slide 9: Business Lines Mitigating the Effects of Global Volatility
BUSINESS LINES MITIGATING THE EFFECTS OF GLOBAL VOLATILITY REVENUE SHARE INFRASTRUCTURE INDUSTRIAL & 15% CONSTRUCTION AUTOMOTİVE 53% ENERGY & PROJECT 19% 13% 93.3% -27.2% -14.8% 73.1% REVENUE ($ mln) 177 614 124.6% 314 -10.9% 0% -14.2% 170 151 229 355 88 51 217 98 87 51 48 166 142 66 98 44 60 9M22 9
Slide 10: Summary Income Statement ($ mln)
SUMMARY INCOME STATEMENT ($ MLN) CONSOLIDATED ($ mln) 9M23 9M22 Change (%) 3Q23 3Q22 Change (%) 2Q23 Revenue 1,164 934 24.6% 379 359 5.8% 391 Gross Profit 280.5 103.3 171.5% 59.5 39.1 52.4% 108 Gross Profit Margin (%) 24.1% 11.1% 13.0 p.p. 15.7% 10.9% 4.8 p.p. 27.6% Operational Expenses (69) (43) 58
Slide 11: Summary Income Statement (TRY mln)
SUMMARY INCOME STATEMENT (TRY MLN) CONSOLIDATED (TRY mln)* 9M23 9M22 Change (%) 3Q23 3Q22 Change (%) 2Q23 Revenue 25,734 14,834 73.5% 10,156 6,289 61.5% 8,151 Gross Profit 5,975 1,641 264.2% 1,594 687 132.1% 2,248 Gross Profit Margin (%) 24.1% 11.1% 13.0 p.p. 15.7% 10.9% 4.8 p.p. 27.6% Operational E
Slide 12: Summary Balance Sheet and FX Position
SUMMARY BALANCE SHEET AND FX POSITION BALANCE SHEET CASH – DEBT BREAKDOWN ($ mln) 3Q23 2Q23 2022 3Q22 ($ mln) $ CASH DEBT € Cash and Cash Equivalents 134 178 83 77 Trade Receivables 191 224 251 204 TL Inventories 526 475 335 412 82% 12% 63% 22% Current Assests 986 953 735 754 134 396 Non-Current Ass
Slide 13: Strong Cash Generation Ability Through Effective Execution
STRONG CASH GENERATION ABILITY THROUGH EFFECTIVE EXECUTION EBITDA FREE CASH FLOW ($ mln) ($ mln) 259 -51 -154 59 -76 276 -57 5 208 134 81 EBITDA Change in Net Tax and Other Investment Dividend Free Cash Cash - 2022 Cash Inflow From Cash Outflow From Cash Outflow From Cash - 9M23 Working Flow Operati
Slide 14: Our Revised 2023 Guidance
OUR REVIZED 2023 GUIDANCE 2022 ACTUAL CHANGING DYNAMICS 2Q 2023 - OLD 3Q 2023 - REVIZED 1.00 – 1.15 mln tons 1.10 – 1.30 mln tons + Contribution of Berg Pipe Sales Volume: - Falling volume in Energy 853,000 Tons business line - Limited exports $1.5 – 1.8 billion $1.7 – 2.0 billion Revenue: + Contrib
Slide 15: Our Target: Positioning BMB for the Future Growing Stakeholder Value
OUR TARGET: POSITIONING BMB FOR THE FUTURE GROWING STAKEHOLDER VALUE COMPETITIVE ADVANTAGES FOCUS FOR TRANSFORMATION STRATEGIC ACTIONS ▪ Qualified human resources with agility to ▪ ESG oriented cultural transformation ▪ Infrastructure and Project: Growth in Northern take prompt action and vision to
Slide 16: Our Environment, Social, Governance (ESG) Oriented Actions
OUR ENVIRONMENT, SOCIAL, GOVERNANCE (ESG) ORIENTED ACTIONS PRIORITIES RELATED KPI’S RELATED SDG • Occupational Health and Safety • Decrease in Frequency and Weight of Accident HUMAN • Social Contribution • Female Employee Rate • Effective People Management • Employee Loyalty • Talent Retention Rate
Slide 17: Telephone Fax E-mail
Telephone 0 212 3935800 Fax 0 212 2933165 E-mail [email protected] Sınıflandırma: Borusan Grubu Özel Classification: Borusan Group Confidential
Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş. — 9M 2023 Earnings Presentation on 6ix