Gubre Fabrikalari T.A.S. · BIST:GUBRF

Gubre Fabrikalari T.A.S — Gübre Fabrikaları T.A.Ş. — Investor Presentation (February 2010)

28 slides from Gubre Fabrikalari T.A.S's investor presentation, February 2010

  1. Slide 1: An Affiliate of the Turkish Agricultural Credit Cooperatives

    AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of securities laws which may by their nature involve risk and uncertainty. All statements that address the firm’s objectives, estimates, predictions, expectations or projections about the future in

  3. Slide 3: Gübre Fabrikaları T.A.Ş

    GÜBRE FABRİKALARI T.A.Ş Company Name : Gübre Fabrikaları T.A.Ş Date of Establishment : 25.12.1952 Share Capital : 83.500.000TL Listing : İstanbul Stock Exchange Ticker Symbol : GUBRF Address : Kasap Sk. No: 22 Esentepe 34394 Şişli - İstanbul – Türkiye Phone : +90 212 376 50 50 Fax : +90 212 288 13 7

  4. Slide 4: Introduction

    INTRODUCTION  Established in 1952 as Turkey’s first fertilizer production and distribution company,  Became listed in the Istanbul Stock Exchange as early as 1986,  Entry to Pesticide sector in 2007,  Entry to Shipping sector in 2008,  Purchased 47,81% shares of Razi Petrochemical Co. from Iran

  5. Slide 5: Ownership Structure

    OWNERSHIP STRUCTURE Capital Structure 22,92% 77,08% Turkish Agricultural Credit Cooperatives Public Shares  Main Shareholder: Turkish Agricultural Credit Cooperatives Central Union  Free Float : 25%  2,08% will be divested by TACC 5 February 2010

  6. Slide 6: Turkish Agricultural Credit Cooperatives Central Union

    TURKISH AGRICULTURAL CREDIT COOPERATIVES CENTRAL UNION Turkish Agricultural  Leading agricultural cooperatives Credit Cooperatives  Founded in 1863 Central Union  6.000 employees 16  23 Subsidiaries Regional Cooperatives  Support farmers’ various procurement needs all the way from fertilizers t

  7. Slide 7: Current Business

    CURRENT BUSINESS TURKEY Compound Fertilizer Production Liquid Fertilizer Production Marketer of fertilizer Pesticide Production Shipping Port Management IRAN Feedstock Production Fertilizer Production 7 February 2010

  8. Slide 8: Current Business

    CURRENT BUSINESS Compound Fertilizer Head NPK 1: 200.000Ton/Year Office Regional Sale NPK 2: 300.000Ton/Year Regional Sale Office TSP: 185.000Ton/Year Office Regional Sale Liquid Fertilizer Office 20.000Ton/Year Regional Sale Office Regional Sale Office Regional Sale Office  685.000ton/year compoun

  9. Slide 9: Sector Fundamentals

    SECTOR FUNDAMENTALS  Fertilizer demand and pricing for the 2008-2009 period will most probably stay in the records as an aberration;  Demand for agricultural commodities will continue to expand driven mainly by improvements in per-capita economic conditions especially in emerging economies;  The

  10. Slide 10: Fertilizer Prices

    FERTILIZER PRICES World Fertilizer Prices FOB US$/Ton 1250 1050 850 650 450 250 50 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 DAP (TUNISIA) TSP (TUNISIA) UREA (YUZHNY) AMMONIA (YUZHNY) AS (BLACK SEA) AN (BLACK SEA) 10 February 2010

  11. Slide 11: Turkish Fertilizer Outlook

    TURKISH FERTILIZER OUTLOOK  Main Drivers: General financial conditions, Farmers’ purchasing power, Irrigation, Weather conditions and The government’s agricultural policies are main drivers.  Feedstock Scarcity: Sector imports 95% of its feedstock and is therefore highly subject to international c

  12. Slide 12: Gübretaş Presence in the Turkish Market

    GÜBRETAŞ PRESENCE IN THE TURKISH MARKET  Gübretaş supplies compound and liquid fertilizers for the specific requirements of the Turkish farmers. The firm benefits from a nationwide logistic network, which enables it to realize sales at a premium to most of its competitors.  Quality, timely deliver

  13. Slide 13: Market Overview

    MARKET OVERVIEW Turkish Fertilizer Sector (1.000tons) 6.000 5.581 5.294 5.367 5.263 5.094 5.175 5.199 5.148 4.506 4.500 4.262 4.129 3.472 3.310 3.318 3.172 3.192 3.158 3.133 3.113 2.961 2.878 3.000 2.632 3.007 2.710 2.661 2.408 2.478 2.377 2.126 2.078 1.848 1.776 1.735 1.500 1999 2000 2001 2003 2005

  14. Slide 14: Market Share

    MARKET SHARE GÜBRETAŞ Domestic '000 Tons Market Share 1.600 1.530 40% 1.470 1.371 1.391 1.400 1.354 1.204 1.238 1.200 1.120 30% 1.000 27% 28% 28% 898 27% 26% 25% 762 23% 24% 800 743 20% 665 566 18% 600 17% 13% 13% 13% 400 10% 200 - 0% 2010E 2011E 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 200

  15. Slide 15: Production

    PRODUCTION GÜBRETAŞ Domestic '000 Tons Production Share 600 40% 506 514 515 499 500 463 412 422 30% 392 400 348 324 300 20% 230 17% 17% 200 16% 16% 15% 12% 12% 13% 12% 10% 100 9% 9% - 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Production Production Share 15 February 2010

  16. Slide 16: Profitability

    PROFITABILITY TRY Million 2006 2007 2008 2009* 9M Revenues 481 610 1.412 712 Cost & Expenses 466 561 1.150 812 Earnings Before Tax 15 49 262 -100 Profit Available to Shareholders on a Diluted 9 39 103 -72 Basis USD Million Revenues 336 473 935 452 Cost & Expenses 377 454 762 516 Earnings Before Tax

  17. Slide 17: Gübretaş Strategy

    GÜBRETAŞ STRATEGY  Build Selectively on Core Strengths  Secure long-term and diversified access to raw materials  Nitrogen based assets in Iran  Seeking new investments in the phosphate segment  Expand logistic capabilities and facilities  Fully leverage domestic distribution and market access

  18. Slide 18: The Razi Petrochemical Co.

    THE RAZI PETROCHEMICAL CO.  Established in 1968  The largest fertilizer complex  Producer of Ammonia, Urea, Sulphuric Acid, Phosphoric Acid and DAP.  Located near the Mahsahr city located at The Khuzestan province of Iran.  It is the only facility producing DAP in Iran.  Advantage of sour and

  19. Slide 19: The Razi Petrochemical Co.

    THE RAZI PETROCHEMICAL CO.  Our consortium purchased 95.62% of Razi Petrochemical Co. shares for 6.072 billion Iranian Rials from Iranian Privatization Organization. (approximately 656 million USD).  Gübretaş has 47,81% stake in Razi Petrochemical Co.  3 members out of 5 at the board.  Full cons

  20. Slide 20: The Razi Petrochemical Co. Product Capacity

    THE RAZI PETROCHEMICAL CO. PRODUCT CAPACITY Product Plant Capacity (tons) Ammonia 3 1.336.000 Urea 1 594.000 DAP 2 450.000 Sulphuric Acid 2 627.000 Phosporic Acid 1 255.000 Sulphur 508.000 Total 9 3.770.500 PLANT REVAMPING DATES Plants Operation Revamping Date Date Ammonia 1 1969 1995 – 1999 Ammonia

  21. Slide 21: The Razi Petrochemical Co. Production Estimates

    THE RAZI PETROCHEMICAL CO. Production Estimates 2009 2010E 2011E Capacity CUR Production CUR Production CUR Production (1.000 Tons) Ammonia 55% 738.834 75% 1.000.000 82% 1.100.000 1.336 Sulphuric Acid 11% 70.134 53% 330.000 64% 400.000 627 Urea 52% 307.642 67% 400.000 76% 450.000 594 DAP 2% 10.713 2

  22. Slide 22: The Razi Petrochemical Co. Sales Assumptions

    THE RAZI PETROCHEMICAL CO. Products Available for Sale (Ton) 2009A 2010E 2011E Ammonia 538.900 713.000 780.500 Sulphuric Acid 64.900 330.000 400.000 Urea 292.300 400.000 450.000 DAP 9.200 100.000 100.000 Sulphur 411.400 290.000 301.667 1.316.700 1.833.000 2.032.167 Sales Price Assumptions (US$/Ton)

  23. Slide 23: The Razi Petrochemical Co. Operating Proforma

    THE RAZI PETROCHEMICAL CO. Operating Proforma 2009E 2010E 2011E Avg. Capacity % Utilization 41% 59% 66% Production '000 Tons 1.548 2.230 2.485 Product Sold '000 Tons 1.317 1.833 2.032 Sales Revenues US$ Mil. 204 411 450 EBITDA US$ Mil. 82 198 231 EBITDA Margin % 40% 48% 51% Period Net Income US$ Mil

  24. Slide 24: 2003-2011 Economic Profile

    2003-2011 ECONOMIC PROFILE Consolidated Income Statement In TRY Million 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E Revenues 254 428 414 481 610 1.412 1.064 1.431 1.600 Sales Growth 42% 68% -3% 16% 27% 131% -25% 35% 12% COG 222 374 371 421 529 943 954 1.053 1.151 Gross income 32 54 43 60 81 469

  25. Slide 25: Operating Performance

    OPERATING PERFORMANCE Net Sales Revenue Sales in Million 1750 1.600 1.412 1.431 1500 1250 1.064 1.032 933 942 1000 688 750 610 428 414 481 473 500 307 336 250 254 170 285 Operating Profitability 0 (Million USD) 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E 350 35% 297 300 267 30% TRY USD 250 227 2

  26. Slide 26: Subsidiaries

    SUBSIDIARIES Negmar Shipping Company  %40 Stake  33.000DWT with 2 vessels  Mid-term objective: To establish fleet including 10 vessels Tarkim Pesticide Company  Partnership with Turkish Agricultural Credit Cooperatives  %40 Stake  11.700Ton/year production capacity  Mid-term objective: To hav

  27. Slide 27: Gübretaş Investment Thesis

    GÜBRETAŞ INVESTMENT THESIS Gübretaş remains well positioned for a recovery in the agricultural and chemical sectors - Strong market position and potential to become a regional market leader - TACC strategic relationship - A proven management track record - Unique assets including dedicated natural g

  28. Slide 28: Thank You!

    THANK YOU! AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES

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