Petkim Petrokimya Holding Anonim Sirketi · BIST:PETKM
Petkim Petrokimya Holding Anonim Sirketi — Petkim Petrochemical Holding — Investor Presentation (August 2012)
36 slides from Petkim Petrokimya Holding Anonim Sirketi's investor presentation, August 2012
Slide 1: Petkim Petrochemical Holding Corp. Investor Presentation August 2012
PETKİM PETROCHEMICAL HOLDING CORP. INVESTOR PRESENTATION August 2012
Slide 2: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 2
Slide 3: Outlook for 2012 H1
Outlook for 2012 H1 Global Petrochemical Industry Domestic Petrochemical Industry • Contraction in petrochemicals consumption due to contraction in • Drop in petrochemicals demand with the expectation of further eurozone economies decline in energy and feedstock prices • A substantial fall in crude
Slide 4: 2012 H2 Global and Domestic Petrochemical Industry
2012 H2 Global Petrochemical Industry Domestic Petrochemical Industry • 4,8% annual growth expectation for global demand in basic chemicals and plastics • A slower domestic demand growth is expected to edge • Further deterioration is expected in European economies down the global growth in 2012, com
Slide 5: Petrochemical Industry
Petrochemical Industry Global EBIT (EBIT/ton) Naphtha, Ethylene MED Prices USD/MT USD/Ton USD/Ton Contraction in margins by 33% Source: CMAI Source: Platts Ethylene Naphtha ALTHOUGH ETHYLENE-NAPHTHA SPREAD IMPROVED IN THE FIRST MODERATE IMPROVEMENT IN GLOBAL EBIT RATES. QUARTER OF 2012 COMPARED TO 2
Slide 6: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 6
Slide 7: Petkim
PETKİM STAR Refinery TÜPRAŞ PETKİM PLANTS ADDITIONAL LAND FOR EXPANSION POTENTIAL PETKİM PORT PETROL OFİSİ 7
Slide 8: Products
Products PP Knitting yarn, sacks, carpet thread, ropes and hawsers, table BUTADIENE cloths, napkins, Rubber doormats, felt, hoses, radiator Automobile tire pipes, fishing nets, brushes, C4 blankets PROPYLENE ACN Textile fibers, artificial wool, ABS (Acrylonitrile Butadiene Styrene) resins NAPHTHA ET
Slide 9: Performance in the First Half of 2012
Performance in the First Half of 2012 Net Sales (USD mn) 1.400 1,308 1.237 Net Sales 1.200 921 totaled to USD 1.000 800 1,308 mn in the 600 first half of 400 2012. 200 0 H1 10 H1 11 H1 12 Sales (th. ton ) Exports (USD mn) 1.200 600 567 Good 978 1.000 873 Exports totaled to 500 427 performance in 764
Slide 10: Company Overview
Company Overview Main Feedstock Petkim Facilities Production and Products •First complex •15 main plants, 7 •Naphtha, LPG, C4, •Gross production of established in 1965, auxiliary units Condensate 1,584 th. tons in H1 second complex •Located in Aliağa near •Main product goups: 2012 established in 198
Slide 11: Petkim's Ownership Structure
Petkim’s Ownership Structure Petkim Stock Performance Ownership Profile Source: Reuters Petkim Share Information (30 June 2012) Closing Price (TRY/Share) 2,02 • Privatization process was completed in May 2008. STEAŞ Market Cap (TRY mn) 2.020 Group acquired 51% stake in Petkim at an amount of USD Mar
Slide 12: State Oil Company of The Azerbaijan Republic (SOCAR)
State Oil Company of The Azerbaijan Republic (SOCAR) • Founded in 1992, • State Oil Company of The Azerbaijan Republic, • One of the most important oil and natural gas producer in the world, • Drilling and exploration of oil and natural gas, oil production and oil refinery activities together with o
Slide 13: Products and Capacities
Products and Capacities Plant Capacities PVC 150,000 MEG 89,000 ETHYLENE 520,000 LDPE 350,000 ACN 90,000 Propylene 240,000 HDPE 96,000 PTA 70,000 C4 140,000 PP 144,000 Py-Gas 390,000 BENZENE 150,000 P-x 136,000 O-x 50,000 CHLORINE 100,000 VCM 152,000 PA 34,000 MB 10,000 Plastic Products 4,000 Power
Slide 14: Petkim: Net Sales (Volume)
Petkim: Net Sales (Volume) Net Sales (th. ton) H1 2012 Breakdown of Sales Volume H1 2012 2.000 1.800 1.745 1.638 1.600 1.400 1.200 978 1.000 873 800 491 600 487 406 400 200 0 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 14
Slide 15: Petkim: Net Sales (USD mn)
Petkim: Net Sales (USD mn) Net Sales (USD mn) H1 2012 Breakdown of Sales H1 2012 2.500 2.339 1.943 2.000 1.500 1.308 1.237 1.000 674 635 634 500 0 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 15
Slide 16: Petkim: Trading Activities
Petkim: Trading Activities Sales of Imported Products (th. ton) H1 2012 Sales of Imported Products (USD mn ) H1 2012 300 300 266 248 250 250 200 200 167 154 149 150 139 150 83 96 95 100 100 66 75 73 53 56 50 50 0 0 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 16
Slide 17: Petkim: Exports
Petkim: Exports Exports Revenues by Years and H1 2012 (USD mn) Breakdown of Export Revenues by Product in H1 2012 900 834 800 700 600 567 531 500 427 400 288 279 300 235 200 100 0 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 17
Slide 18: Petkim: Exports (Region)
Petkim: Exports (Region) Breakdown of Exports by Region H1 2012 North and Caucasus South EXPORTS and Middle America Africa 3,0% 2,4% Middle Asia East and 3,1% Gulf Countries • Products are exported to 40 different countries. 5,9% • Benzene, C4, LDPE, Py-Gas and P-X are the main exports products • Pe
Slide 19: Petkim: Product & Raw Material Prices
Petkim: Product & Raw Material Prices Petkim Thermoplastics and Naphtha Price Changes Petkim EBITDA Performance (USD mn) Index (2007 January =100) 160 145 250 136 140 200 120 110 150 100 80 100 60 42 50 40 0 20 2 5 -3 0 -20 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 THERMOPLASTICS NAPHTHA Raw Material
Slide 20: Initiatives Aiming to Improve Operational Efficiencies
Initiatives Aiming to Improve Operational Efficiencies Total Production / Energy Unit Consumption W.Europe Ethylene Capacity Utilization Rates (%) Source: CMAI Source: CMAI Efficiencies on Marketable Production Per Capita Petkim Ethylene Capacity Utilization Rates (%) Net Sales per Capita (USD th) (
Slide 21: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 21
Slide 22: Capital Expenditures and Planned Capacity Increases
Capital Expenditures and Planned Capacity Increases Capital Expenditures of Petkim (USD mn) • Moderate gearing of capital investments instead of fully 180 financing with equity 160 154 • Increasing capacities of existing plants with minor capex- 140 smart debottlenecking investments 120 • Optimizing
Slide 23: Carbon Management, Environment and Petkim
Carbon Management, Environment and Petkim • Participated in International • 700 hectares of wind energy Carbon Disclosure Project in production area next to 2012. Petkim’s production site. • Determined greenhouse gas • Project partner and main emissions. sponsor to Conversion of • Planned greenhouse
Slide 24: Petkim and EFQM Excellency Model
Petkim and EFQM Excellency Model Leadership Strategy • Corporate Ethic • Position Analysis • Petkim Suggestion System • Budget Control • Performance Assessment • Strategic Planning System • Long Term Business Plan • TS 18001 Work Health and (ValueSite 2023) Safety Management System • Strategic Risk
Slide 25: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 25
Slide 26: Growth Plan and Strategy
Growth Plan and Strategy DOWNSTREAM • ADVANTAGES OF WIDE PRODUCT RANGE • HIGH VALUE ADDED SPECIALTY CHEMICALS • CLUSTER MODEL (PETKİM “VALUE-SITE”) UPSTREAM 5 PILLARS OF GROWTH PLAN STAR Refinery ENERGY (SOCAR Turkey) PRODUCTION DISTRIBUTION (SOCAR Turkey) LOGISTICS 26
Slide 27: Short Term Growth Plans
Short Term Growth Plans Capacity Increase Energy Logistics Capacity increase by: • Energy optimization study with KBC • New distribution centers • Debottlenecking and (steam and energy opt.) • Strategic partnership in port modernization investments • Fuel flexibilty in energy production business (AP
Slide 28: Mid to Long Term Growth Plans
Mid to Long Term Growth Plans “UPSTREAM” INVESTMENTS SECURING FEEDSTOCK WITH THE REFINERY INTEGRATION To reach 40% market STAR Rafinery studies carrtied share with “Downstream” out by SOCAR Turkey investments –Value Site • Allocation of 138 ha area for the refinery investment •Available infrastructu
Slide 29: 2023 Petkim
2023 Petkim STAR Refinery Petrochemical Production Capacity: 10 MMTPA New Petrochemical Products; BDX, XLPE Capacity Increase of Current Plants; PA, PTA, 600.000 MTPA Ethylene Production WIND ENERGY Min 25 MW Energy Production PETKİM Port Min. 1,5 million TEU Container Handling Terminal Capacity 29
Slide 30: Petkim: Growth Strategy
PETKİM: Growth Strategy GROWTH WITH LOGISTICS INVESTMENTS Details of Head of Terms - Operating rights of port for 28 years, - Option to extend by 4 years, - 1.5 million TEU Container Handling capacity, - 42 hectare main port area, - 11 hectare off-dock service area, - Starting the container handling
Slide 31: Agenda
AGENDA 1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials 31
Slide 32: Financial Structure and Profitability
Financial Structure and Profitability (USD mn) Shareholders’ Equity EBITDA H1 H1 887 2012 2 2012 H1 H1 1,048 2011 110 2011 H1 H1 975 2010 68 2010 Total Assets Net Sales H1 H1 1,498 2012 1,308 2012 H1 H1 1,459 2011 1,237 2011 H1 H1 1,382 2010 921 2010 32
Slide 33: Financial Tables
Financial Tables Income Statement (USD mn)(IFRS ) 2010 2011 H1 11 H1 12 Q2 11 Q1 12 Q2 12 Net Sales 1.943 2.339 1.237 1.308 635 674 634 Cost of Goods Sold (-) (1.790) (2.224) (1.112) (1.299) (585) (662) (637) Gross Profit (Loss) 153 114 125 9 50 12 (3) Gross Profit (Loss) Margin 7,9% 4,9% 10,1% 0,0%
Slide 34: Financial Tables
Financial Tables Balance Sheet (USD mn) (IFRS) Cash&Bank Debt (USD mn) 31/12/2010 31/12/2011 30/06/2012 Cash&Cash Equivalents 130 77 54 200 182 168 147 137 131 Trade Receivables 268 309 365 150 86 77 100 63 61 71 Inventories 281 245 247 54 50 28 Other Current Assets 35 75 71 0 Current Assets 715 706
Slide 35: Disclaimer
Disclaimer This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Petkim Petrokimya Holdings A.Ş. (the “Company”) or any member of its group nor should it o
Slide 36: Investor Relations
Investor Relations We welcome your questions, comments and suggestions. Our corporate headquarters office address is: Petkim Petrochemical Holding Corp. PO. Box.12 Aliağa, 35800 İzmir/ TURKEY To contact us with respect to shareholding relations for individual and corporate investors, please call dir
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