POLİSAN HOLDİNG August 2016

Transcription

1 POLİSAN HOLDİNG August 2016

2 NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially due to factors discussed in Polisan Holding s prospectus filed during the IPO of the Company in compliance with the procedures of the Capital Markets Board of Turkey. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. 2

3 POLİSAN HOLDİNG: POISED FOR GROWTH IN ALL BUSINESS LINES PAINT CHEMICAL ACTIVITIES PORT OPERATIONS AGRICULTURE REAL ESTATE 100% 100% 93% 100% 100% 100% 40% INTERNATIONAL EXPANSION 100% 3

4 POLİSAN HOLDİNG STRATEGY: TO MAXIMIZE SHAREHOLDER VALUE Sustaining Profitable Growth of Existing Businesses Maximizing Intra-Group Synergies Forming Strategic Alliances to Expand in High Margin, New Business Lines Utilizing Holding s Other Assets in its Portfolio Professional Management Dedicated to Have a High Level of Corporate Governance 4

5 POLİSAN HOLDİNG: SUSTAINABLE GROWTH ON ALL BUSİNESS LINES Holding Revenue Breakdown* (2015) Revenue and EBITDA Margin Evolution 906 Polisan Kimya 17% Polisan Hellas 17% Other 3% % 55.4% Poliport 11% Polisan Boya 52% 13.5% 14.2% 15.8% 13.8% % 9.7% Polisan Holding Polisan Boya Poliport Polisan Kimya Polisan Hellas -2.5% -10.8% 5 (*): The ratios on the pie chart do not reflect intra-group eliminations.

6 TURKEY PAINT INDUSTRY: EVER GROWING DEMAND TURKEY PAINT INDUSTRY POLİSAN BOYA With ~$2 billion, Europe s 3 rd largest market 5% Decorative Segment, which has ~60% share, drives growth 5% 5% 7% 2% 2% 1% 1% Growing Production Over the Years 11% 61% Italy Germany France Great Britain Spain Turkey 4 major players capture 70% share in the market Decorative Wood Industrial Powder Automotive Printing Ink Maintenance Coil Paints Marine Packaging Relatively lower consumption suggesting further growth Water-based Solvent-based Thinner Glue Road Marking Paint One of the Leaders in Decorative Paint Growing Faster than the Market Polisan Market 105% % US France UK Turkey China India 6

7 POLİSAN BOYA S DIFFERENTIATION STRATEGY: VALUE FOR MONEY 1 PRODUCT 2 SALES 3 Introduced Home Cosmetics concept to the World Decoart Effect Series Wall Motives Paint Perfume Turkey s first water based new generation mix system 2,500 sales points Production at factory quality with Modula system SERVICE World s first exterior insulation insurance EKO credit for insulation 4 QUALITY Global brand awareness with quality certificates Turkey s 1., Europe s 3. Environmental Product Declaration Certificate Innovative products undersigning firsts in Turkey Interior and Exterior paints Water based metal paint Plastic spray paint Road marking paint Wood protector varnish Turkey s first private label and hybrid brand producer Turkey s widest sales network 34 distributor 650 6,000 dealer Direct Retailer 1,000 EXCLUSIVE SHOPS Polisan Shop concept merchandizing First Logistic Center 3 Chain Stores 162 Shops 24/7 Call Center Turkey s first loyalty program through POS Collection through 1,150 cash register POS and Policlub TURQUALITY R&D Center Home Cosmetics brand communication for A,B,C & 25+ group Revive Me Polisan New Facility at global standards in mln investment; 550,000 ton/yr capacity 7

8 STRATEGY: CONTINUE LEADERSHIP WITH PROFITABLE GROWTH There are 18 million households in Turkey to be renovated and isolated Young & growing population Obligation to isolate exterior walls Renovation and new buildings INDUSTRIAL MARINE FURNITURE Insulation Revenues CAGR: 54% To grow in all segments in paint To be one of the leaders of growing insulation market To expand auxiliary product business 8

9 OTHER GROWTH DRIVERS: NEW PRODUCTION AND WAREHOUSE FACILITY DISCUSSIONS FOR A POSSIBLE FOREIGN PARTNERSHIP Built on 142,000 m 2 land owned by Polisan Kimya in Gebze Chemical Specialization Organized Industrial Zone The total investment amount is ~ 35 million Expected to be finalized by the end of 2016 Equipped with latest technology 550,000 ton production capacity with 3 shifts per day (in the scale of Turkey s decorative paint market) Discussions started with Kansai Paint in May 2016 to sell 50% shares of Polisan Boya Kansai Paint s main products are automotive, industrial, decorative, protective, and auto refinish coatings Kansai Paint is one of the leading paint manufacturers in Japan and among the top 10 in the world 9

10 TURKEY SEABORNE TRADE: 5. IN EUROPE GLOBALLY: AVERAGE 3.6% GROWTH BETWEEN 2006 AND 2015 TURKEY: AVERAGE 6.5% GROWTH BETWEEN 2006 AND % 7.0% 5.0% 3.0% 1.0% -1.0% -3.0% E 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% GSYİH Deniz Ticareti Poliport -5.0% Global Seaborne Trade GDP AVERAGE GROWTH: 3.9% 7.1% 11.7% TURKEY IS THE 5. IN EUROPE IN SEABORNE TRADE POLİPORT CONTINUES ITS PROFITABLE GROWTH TREND CARGO HANDLED ( ): CAGR ( ): 600, , , , , , , Holland UK Italy Spain Turkey France Germany 29% -12% -9% 14% 80% 81-9% 12% 2.6% -1.3% -0.9% 1.4% 6.0% %6,8-1.0% 1.1% % 38% 28% % 44% 49% 41% 42% Revenue EBITDA EBITDA Margin 120% 70% 20% -30% 10 Source: Republic of Turkey, Ministry of Transport, Maritime Affairs and Communications Directorate General of Merchant Marine GDP: Cargo handled in Europe: Global Seaborne Trade: UNCTAD, Clarkson Global Research

11 KOCAELİ PORT: TURKEY S LARGEST NATURAL PORT 416 mln ton/2015 TURKEY SEABORNE TRADE BY CARGO TYPES 35% 2% 21% KOCAELI PORT KOCAELİ PORT LEADS TOTAL CARGO HANDLED WITH 16% 15.5% 3.1% 2.5% 19.7% 18.8% 3.6% 8.7% 27% 416 mln ton/2015 Container General Cargo Dry Bulk Bulk Liquid Vehicles TURKEY SEABORNE TRADE BY REGIMES 15% 15% ROTTERDAM PORT 8.7% 20.7% 7.7% 11.7% Kocaeli Botaş Aliağa Mersin İskenderun Ambarlı Tekirdağ Ereğli Gemlik Others KOCAELİ PORT LEADS FOREIGN TRADE WITH 18% 17.9% 13% ANVERS PORT 3.5% 7.3% 3.0% 4.1% 72% Foreign Trade Transit Cabotage 8.0% 10.8% 10.2% Kocaeli Botaş Aliağa Mersin İskenderun Ambarlı Tekirdağ İzmir Gemlik Others 14.4% 11 Source: Republic of Turkey, Ministry of Transport, Maritime Affairs and Communications Directorate General of Merchant Marine

12 POLİPORT: THE LEADING TERMINAL IN KOCAELİ PORT Cargo handled in 2015: 4.6 mln ton TEM highway Railway Warehouse 1 Bulk Liquid Storage Dry Bulk and General Cargo Loading & Unloading Bulk Liquid Loading & Unloading CLOSE PROXIMITY TO STRATEGIC GATEWAYS HIGH MARGIN SERVICES LONG TERM GROWTH STRATEGY Close to İstanbul, Sabiha Gökçen Airport, TEM and D-100 Highways Crossed by the Railway One of EU s 10 major ports Located on an industrial zone where ~45% of Turkey s GDP generated 103 km sheltered coastline with easy access and 80 mln ton capacity Services on a 160,000 m 2 land Terminal and General Cargo Services total handling capacity: 7.5 mln ton/year Bulk liquid storage capacity: m³ Storage and logistic services at 48,000 m 2 warehouse New business opportunities with multinational companies Further capacity increase through relocation of Polisan Paint Change in the supply-demand balance in favor of Poliport Increasing revenues and profitability in the niche market 12

13 PORT VALUATIONS Mersin Port Samsun Port I skenderun Port Derince Port Petkim Poliport Transaction date: August 14, 2005 Cargo handled: 17.2 mln tons (2004) Transaction date: May 16, 2008 Cargo handled: 1.6 mln tons (2007) Transaction date: September 28, 2010 Cargo handled: 2.4 mln tons (2009) Transaction date: June 5, 2014 Cargo handled: 2.4 mln tons (2013) $755 mln $125 mln $372 mln $543 mln Transaction date: December 19, 2014 Greenfield Operation $250 mln Cargo handled: 4.6 mln tons (2015) Dry bulk: 3.7 $/ton General Cargo: 3.7 $/ton Bulk liquid: 20 $/ton 44% 6% 16% 34% 43% 0% 2% 55% 35% 34% 30% 0% 39% 0% 3% 57% Petkim sold 30% of Petlim Port to Goldman Sachs. 46% 28% 26% 13 Bulk Liquid Dry Bulk G. Cargo Container

14 CHEMICAL ACTIVITIES: POLISAN; FROM BASEMENT TO ROOF... POLISAN CHEMICALS Revenue breakdown (2015): Formaldehyde and resins: 69% Concrete and Cement Admixtures: 18% Aus-32/AdBlue : 7% New Products (2015): Windshield Washer Fluid Anti Freeze PCE POLISAN CONSTRUCTION CHEMICALS Marketing and sales of: Concrete and cement admixtures produced by Polisan Chemicals for the cement industry ROHM & HAAS (DOW) Polisan Chemicals is the Turkey s 1 st emulsion polymer producer Selling and marketing of emulsion polymers, their raw materials In 2004, a JV was formed with Rohm & Haas; Partnership continues with Dow Chemicals since Rohm & Haas acquitision in 2009 POLISAN HELLAS Operational in Greece The sole Polyethylene Terephthalate (PET) resin and preform producer in Greece and Balkan region 14

15 POLİSAN HELLAS: INTERNATIONAL EXPANSION TRANSACTION HIGHLIGHTS Polisan Hellas bought 100% of the assets of Artenius Hellas in Greece Polisan Hellas is being controlled by Polisan Holding The sole Polyethylene Terephthalate (PET) resin and preform producer in Greece and Balkan region Capacity: Production of over 80,000 tons/annum of PET resin or bottle preforms UTILIZING LOGISTIC SYNERGIES Over 35,000 m 2 industrial land with all required infrastructure and staff A potential market for Polisan Holding operations Chemicals distribution opportunity in the mid-term Acting as a marketing company in the EU for all products currently produced in Turkey Substantial EU grants for new industrial investments 15

16 POLİSAN HOLDİNG: CASH POSITION AND CAPITAL EXPENDITURES Balance Sheet (TRY mln) 1H Q H 2016 TRY mln* - 2Q 2016 TL FX Cash & Cash Equivalents Total Assets 1, , ,728.4 Short Term Debt Cash 36% % Long Term Debt Net Debt Total Equity Capex (TRY mln) 1H Q H 2016 ST Debt 57% % Consolidated Capex Paint % Port Chemical activities LT Debt % 16 *The figures on this slide based on IFRS report and F/X vs TRY breakdown of cash and debt breakdown is as of 2Q 2016 year end.

17 POLİSAN HOLDİNG S PROPERTIES: ~TRY817 MILLION ONGOING PROJECTS PRODUCTION FACILITIES OTHER PROPERTIES Z OFFICE PENDIK POLIPORT POLISAN INVESTMENT PROPERTIES 28 shops, 85 offices TRY63 mln** Rapid urbanization area Easy transportation Access to Çağlayan Kağıthane road DAP Yapı (58%) and Polisan Yapı (42%) commercial real estate project 49 offices and shops sold and 11 shops were leased ,821 m 2 land TRY184 mln** Next to Sabiha Gokcen Airport On the Istanbul-Ankara Fast Railway Line Construction agreement in return for land share DAP Yapı DOP Yapı JV: 66% Polisan Yapı: 34% DAP Yapı plans a TRY1.5 bln investment for 3,000-unit city 146,051 m 2 TRY300 mln* In Kocaeli Dil İskelesi Rented for 49 years 90,142 m 2 TRY122 mln In Kocaeli Dilovası Owned by Polisan Kimya Other land and real estates TRY148 mln Kocaeli GebKim: TRY71 mln Kocaeli DOSB: TRY26 mln Kocaeli Farm***: TRY14 mln Aydın****: TRY5 mln Balıkesir-İvrindi****: TRY4 mln Kocaeli-Aysan*****: TRY29 mln Source: Polisan Holding * Poliport land is not owned by Polisan Holding, but leased for 49 years, instead. ** All expertise values are as of 2014 year end except for the land in Pendik and the unsold real estates of Kağıthane Z Office Project, whose expertise values are as of 2015 year end. *** There is 1,500 decare forestry, taken care by Polisan Kimya, around the 190 decare farm in Kocaeli, Gebze. **** The value of the agricultural land in Aydın Karacasu and Balıkesir İvrindi is the total of the expertise values of the related lands as of the 2014 year end and the additional purchase cost in *** The land in Kocaeli, Aysan is purchased for 9 million in 2013 and that its value is calculated based on the Turkish Central Bank s Buying Rate (3.1776) as of December 31, 2015.

18 2000/ / / / / / / / / / / / / / / / / / / / / / / / / / / /14 POLİSAN TARIM: BUYS LAND FOR ALMOND AND WALNUT GARDENS tons 250,000 tons 100, ,000 80, ,000 60, ,000 40,000 50,000 20,000-0 Exports Imports Production WALNUT Turkey s walnut production in : 212,140 tons Exports: 14,171 tons Imports: 30,479 tons Ministry of Forestry and Water Affairs Action Plan: 5 mln walnut seedlings through 2013/16 Exports Imports Production ALMOND Turkey s almond production in : 82,850 tons Exports: 22,670 tons Imports: 30,413 tons Ministry of Forestry and Water Affairs Action Plan: 8 mln almond seedlings through 2013/17 18

19 FINANCIAL HIGHLIGHTS: PROFITABLE REVENUE GROWTH CONTINUES 19 POLISAN HOLDING FINANCIAL RESULTS TRY million 1H H 2016 YoY (%) 2Q Q Q 2016 YoY (%) QoQ (%) Revenue % % 21.5% EBITDA % % 87.1% EBITDA Margin 14.8% 18.5% 3.7 p.p. 15.0% 14.3% 22.0% 7.0 p.p. 7.7 p.p. Net Income/Loss n.m n.m. n.m. In 1H 2016, Polisan Holding recorded revenue growth on all business lines: 12.5% YoY growth: Particularly; Paint, Port, and PET producer Polisan Hellas EBITDA margin increased by 3.7 p.p. to 18.5%: Polisan Boya recorded a record high 21.8% EBITDA margin for the paint sector in 2Q 2016 Poliport s EBITDA margin bounced back up to 54.9% in 2Q 2016 after the one time payment in 1Q 2016 With 13.6%; Polisan Kimya reached above the rational EBITDA margin levels for the chemicals sector in 2Q 2016 Operational efficiency continues at Polisan Hellas so as to reach EBITDA breakeven by the end of 2016 TRY43.9 mln net income was recorded: Increasing operational profitability Positive impact of f/x rates

20 POLİSAN HOLDİNG: 2015 RESULTS AND 2016 GUIDANCE 2015 ACTUAL 2016 TARGETS 2016 GUIDANCE Annual Revenue Growth TRY906 mln 17% YoY Growth Revenue increase in all business lines ~15-20% growth compared to 2015 Annual EBITDA Margin 14.2% Polisan Hellas: aiming breakeven Polisan Boya, Polisan Kimya: similar levels Poliport: higher profitability A few point increase compared to 2015 Capex TRY92 mln New paint production facility, Poliport s capacity increase, and maintenance Polisan Boya: 35 mln Poliport: $15 mln Other: $5 mln 20

21 BACK UP

22 POLİSAN HOLDİNG: BOARD OF DIRECTORS Necmettin Bitlis Chairman High School 72 years of work experience Dilovası Industrial Zone Chairman Chairman of Polisan Holding, Polisan Boya, Polisan Kimya, Poliport, Polisan Tarım, Polisan Yapı and Şark Mensucat Founding member of Malatya Education Fund President of Dilovası Industrial Zone Entrepreneurs Board Member of Turkish Industry and Business Association Mehmet Emin Bitlis Deputy Chairman Bundesaufbau Gymnasium Wirtschafts Universität (BSc), Austria 29 years of work experience Deputy Chairman of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım and Polisan Yapı Board member of Poliport, Polisan Hellas, Şark Mensucat and Rohm and Haas Ahmet Ertuğrul Bitlis Board Member University of Boston,USA Production Engineer (BSc) and Mechanic Engineer (MSc) 28 years of work experience Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı and Şark Mensucat Deputy Chairman of Poliport Ahmet Faik Bitlis Board Member Deutsche High School Bosphorus University, Industrial Engineer (BSc) 27 years of work experience Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı, Şark Mensucat, Poliport and Rohm and Haas Chairman of Polisan YapıKim Member of Board of Directors at Deutsche High School Culture and Education Fund BOSAD Chairman İMMİB Board Member Fatma Nilgün Kasrat Board Member Notre Dame de Sion High School ITU, Chemical Engineer (BSc) 27 years of work experience Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı, Şark Mensucat and Poliport Erol Mizrahi Board Member University of Istanbul, Faculty of Law At Polisan Holding since 1976 Polisan Holding CEO since 2005 Board member of Polisan Holding, Polisan Boya, Poliport, Polisan Kimya, Polisan YapiKim, Polisan Hellas, Polisan Tarım, Polisan Yapı, Rohm and Haas, and Şark Mensucat Fırat Yemeniciler Board Member Saint Joseph High School University of Istanbul, Chemical Engineer (BSc) University of Brussels, Petrochemicals (MSc) General Manager of Union Carbide between At Polisan Holding since 1995 Board member of Polisan Holding, Polisan Hellas and Poliport GM of Poliport Vice President of Port Operations Committee Council Member at Chamber of Shipping İzzet Özberki Independent Board Member Galatasaray High School University of Ankara; Political Sciences (BSc) METU, Economics (MSc) Research Fellow at Gazi University for 5 years 30 years of work experience Corporate Financier (CF) degree from the Institute of Chartered Accountants of England and Wales Ahmet Temizyürek Independent Board Member University of Ankara; Political Sciences (BSc) University of Boston, Financial Economy, E-Trade, Systems and Technologies (MSc) 17 years of Auditing experience as State Officer Sworn Financial Advisor for 2 years 22

23 POLİSAN HOLDİNG: EXECUTIVE COMMITTEE Erol Mizrahi Polisan Holding CEO University of Istanbul, Faculty of Law At Polisan Holding since 1976 Polisan Holding CEO since 2005 Board member of Polisan Holding, Polisan Boya, Poliport, Polisan Kimya, Polisan YapiKim, Polisan Hellas, Polisan Tarım, Polisan Yapı, Rohm and Haas, and Şark Mensucat Fırat Yemeniciler Poliport General Manager Saint Joseph High School University of Istanbul, Chemical Engineer (BSc) University of Brussels, Petrochemicals (MSc) General Manager of Union Carbide between At Polisan Holding since 1995 Board member of Polisan Holding, Polisan Hellas and Poliport GM of Poliport Vice President of Port Operations Committee Council Member at Chamber of Shipping Necati Hakoğlu Polisan Kimya General Manager ITU, Chemical Engineering IU, Institute for Excellence in Business Education (MBA) 30 years work experience at Henkel and Cognis after spin-off of Henkel At Polisan Holding since 2008 Worked as Holding Site Director, then General Manager of Sark Mensucat Kocaeli Chamber of Industry, Board Member Turkish Chemical Manufacturers Association, Board Member Ahmet Türkselçi Polisan Holding HR Director Hacettepe University; Faculty of Economics & Administrative Sciences, Department of Economics 31 years work experience, various managerial positions in Banking and Manufacturing HR Director at Polisan Holding since July 2012 Member of Peryön 23

24 POLİSAN HOLDİNG: MILESTONES Polisan Boya EPD Certificate 2015 Introduced «Home Cosmetics» concept globally Launch of Polisan POS Loyalty Programme Z Office Project Pendik Project Production of concrete additives and AdBlue Launch of Mix Centers Launch of Şark Mensucat at Kağıthane 1956 The first manufacturer of Formaldehyde in Turkey The first manufacturer of emulsion resins in Turkey First textile plant at Zeytinburnu Establishment of Poliport

25 SOCIAL RESPONSIBILITY PROJECTS AND SPONSORSHIPS WOMEN YOUTH ENVIRONMENT/ART EVERY VOICE, ONE BREATH 2015 Two Projects realized Has been granted 2 prestigious awards Bazaart / Art for Each Home POLİSAN SCHOOLS M. Emin Bitlis Primary School Polisan Secondary School Polisan Education, Culture, and Indoors Sports Facility Turkey s 7 Color İstanbul s Stars Hand in Hand with Small Hearts 100,000 trees International İstanbul Biennial Official Sponsorship İstanbul Carbon Summit Municipality Joint Projects Paint the Town Fener/Balat Rehabilitation Studies 25

26 TURKEY: 18 TH LARGEST ECONOMY IN THE WORLD 7 th largest economy in Europe GROWING ECONOMY WITH A YOUNG POPULATION Institutionalized economy fueled by $144 billion FDI in the last decade Inflation at single digits GDP (Current Prices) $800 billion $720 billion GDP Per Capita $10,404 $9,261 Population 76,667,864 76,667,864 Foreign Direct Investment $12.5 billion $16.8 billion Inflation Rate 8.2% 8.8% Current Deficit / GDP -5.8% -4.4% Unemployment 9.9% 10.2% 26 Source: Turkish Statistical Institute (TurkStat)

27 Japan Hungary USA Czech Republic Mexico Bulgaria South Africa Romania Brazil South Korea Poland Russia Slovakia Chile Turkey TURKEY: STRONG GROWTH TREND CONTINUES AVERAGE ANNUAL REAL GDP GROWTH (%) Real GDP growth of ~5% on average between Increasing role of private sector Enhancing efficiency and resiliency of the financial sector Social security system on a more solid foundation Solid macroeconomic fundamentals 27 Source:

28 TURKEY: ECONOMIC OUTLOOK Continuing GDP growth 9% 6% 8% 9% 5% 7% 9% 5% 1% 2% 4% 3% 4% -5% Foreign Direct Investment Inflows $ billion Single digit inflation 30% 18% 9% 8% 10% 8% 10% 10% 7% 6% 6% 7% 8% 9% Source: GDP: FDI: Turkish Statistical Institute (TurkStat)

29 THANK YOU Telephone Fax address: