fertilizer presentation

7/30/2019 fertilizer presentation

http://slidepdf.com/reader/full/fertilizer-presentation 1/28

AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES



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 statementsthat address the firm’s objectives, estimates, predictions, expectations or projectionsabout the future including such statements as the company’s growth, cost reduction

and restructuring plans, expenditures and financial results are forward-lookingstatements.

These statements are based on current plans, estimates and expectations. Actualresults may differ materially from those projected in such forward-looking statementsand therefore investors should not place undue reliance on them. Gübretaşundertakes no obligation to publicly update or revise any forward-looking statement,whether as a result of new information, or otherwise.

February 20102



GÜBRE FABRİKALARI T.A.Ş

February 2010

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 76

Web Site : www.gubretas.com.tr

Mail : [email protected]

3



February 2010

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 Iranian

Privatization Organization in 2008,

Gübretaş continues to serve the Turkish agricultural sector whilepursuing its goal to become a major regional producer of

fertilizers, hence creating value for its shareholders.

INTRODUCTION

4



OWNERSHIP STRUCTURE

February 2010

77,08%

22,92%

Capital Structure

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



TURKISH AGRICULTURAL CREDIT COOPERATIVESCENTRAL UNION

Leading agricultural cooperatives

Founded in 1863

6.000 employees

23 Subsidiaries

Support farmers’ variousprocurement needs all the wayfrom fertilizers to tractors

February 2010

1.300.000

Farmer Partners

16

Regional Cooperatives

1.815

Cooperatives

Turkish Agricultural

Credit CooperativesCentral Union

Strategic Relationship with Gübretaş

Procure all fertilizer needs of its partnersfrom Gübretaş with the exclusive

agreement

6

3.000.000

Total Farmers



CURRENT BUSINESS

February 2010

TURKEY

Compound Fertilizer Production

Liquid Fertilizer Production

Marketer of fertilizer

Pesticide Production

Shipping

Port Management

IRAN

Feedstock Production

Fertilizer Production

7



CURRENT BUSINESS

February 2010

Compound FertilizerNPK 1: 200.000Ton/Year

NPK 2: 300.000Ton/Year

TSP: 185.000Ton/Year

Liquid Fertilizer

20.000Ton/Year

Regional SaleOffice

Regional SaleOffice

Regional SaleOffice

Regional SaleOffice

Regional SaleOffice

Regional SaleOffice

HeadOffice

685.000ton/year compound fertilizer 20.000ton/year liquid fertilizer 327.000 ton Warehouse Capacity

2 Ports: Yarımca & Iskenderun 6 Regional Sale Office 2.688 dealers

8



SECTOR FUNDAMENTALS

Fertilizer demand and pricing for the 2008-2009 period will mostprobably stay in the records as an aberration;

Demand for agricultural commodities will continue to expand drivenmainly by improvements in per-capita economic conditions especiallyin emerging economies;

The drive to seek greater yields from existing acreage will continue todrive increasing use of agricultural nutrients;

Competitive access to feedstock including natural gas, phosphate rock,sulphur and potassium will remain the main factors driving fertilizercompany profitability and valuations;

Gübretaş is ideally positioned to provide investors the twinbenefits of increasing fertilizer demand in Turkey and access to

one of the lowest cost feedstock for nitrogen based fertilizerproduction.

February 20109



FERTILIZER PRICES

February 2010

50

250

450

650850

1050

1250

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

World Fertilizer Prices FOB US$/Ton

DAP (TUNISIA) TSP (TUNISIA) UREA (YUZHNY) AMMONIA (YUZHNY) AS (BLACK SEA) AN (BLACK SEA)

10



TURKISH FERTILIZER OUTLOOK

Main Drivers: General financial conditions, Farmers’ purchasing power,Irrigation, Weather conditions and The government’s agricultural policiesare main drivers.

Feedstock Scarcity: Sector imports 95% of its feedstock and is therefore

highly subject to international commodity price volatility in natural gas,phosphate rock and potassium. Ultimate feedstock costs are also directlyaffected by financial conditions and volatility in currency prices andinterest rates.

Growth potential: Per hectare fertilizer consumption is still modest inTurkey and presents a 40% growth potential for a 7.2 million ton annual

demand level.

February 201011



GÜBRETAŞ PRESENCE IN THE TURKISH MARKET

Gübretaş supplies compound and liquid fertilizers for the specificrequirements of the Turkish farmers. The firm benefits from a nationwidelogistic network, which enables it to realize sales at a premium to most of its competitors.

Quality, timely delivery, payment terms and trust affect salesperformance. Gübretaş produces compound fertilizers specificallyaddressing the needs of crop growers. The firm currently offers in excessof 80 products addressing the specific requirements of its farmers.

Trading performance, storage policies and currency exposuremanagement remain key factors in maintaining competitiveness in this

sector.

February 201012



MARKET OVERVIEW

February 201013

5.581

5.294

4.262

4.506

5.094 5.175 5.1995.367

5.148

4.129

5.263

3.3103.172

2.632

3.4723.318

3.192 3.158 3.133 3.1132.961 2.878

1.848

2.408

1.776 1.735

2.126

2.7102.478

2.661

2.377

2.078

3.007

1.500

3.000

4.500

6.000

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Turkish Fertilizer Sector(1.000tons)

Consumption Production Import



MARKET SHARE

February 201014

743665

566

762

898

1.204 1.238

1.354 1.371

1.120

1.3911.470

1.530

13% 13% 13%

17% 18%

23% 24%25%

27% 27% 26%28% 28%

0%

10%

20%

30%

40%

-

200

400

600

800

1.000

1.200

1.400

1.600

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0 E

2 0 1 1 E

Market Share'000 Tons

GÜBRETAŞ

Domestic

Sales Volume Market Share



PRODUCTION

February 201015

412

392

230

324

422

499 506

463

514 515

348

12% 12%

9% 9%

13%

16% 16%15%

17%17%

12%

0%

10%

20%

30%

40%

-

100

200

300

400

500

600

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

Production Share'000 Tons

GÜBRETAŞDomestic

Production Production Share



PROFITABILITY

February 2010

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 DilutedBasis

9 39 103 -72

USD Million

Revenues 336 473 935 452

Cost & Expenses 377 454 762 516

Earnings Before Tax 10 38 174 -63

Profit Available to Shareholders on a DilutedBasis

6 30 68 -46

Earning per Share (EPS) (TRY) 0,4 1,7 1,2 -0,9

EPS Growth 657% 330% 270% -217%Divident per Share (cents per Share) 15,85 38,79 12,37 0

2009* 1Q after capital increase by bonus issue

16



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 for furtherregional growth

Develop opportunities downstream with new products and services

in existing and new markets

February 201017



THE RAZI PETROCHEMICAL CO.

Established in 1968

The largest fertilizer complex

Producer of Ammonia, Urea,Sulphuric Acid, Phosphoric Acidand DAP.

Located near the Mahsahr citylocated at The Khuzestanprovince of Iran.

It is the only facility producing

DAP in Iran.

Advantage of sour and sweetnatural gas

February 201018




Our consortium purchased95.62% of Razi

Petrochemical Co. shares

for 6.072 billion Iranian

Rials from Iranian

Privatization Organization.

(approximately 656million USD).

Gübretaş has 47,81%

stake in Razi

Petrochemical Co.

3 members out of 5 at the

board.

Full consolidation

February 201019




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 508.000Total 9 3.770.500

February 201020

PLANT REVAMPING DATES

Plants Operation Revamping

Date Date

Ammonia 1 1969 1995 – 1999

Ammonia 2 1975 1995 – 1999

Ammonia 3 2008

Urea 1989

DAP 1 1970

DAP 2 1990

Phosporic Acid 1970




February 2010

Production Estimates

2009 2010E 2011E

Capacity(1.000 Tons)

CUR Production CUR Production CUR Production

Ammonia 1.336 55% 738.834 75% 1.000.000 82% 1.100.000

Sulphuric Acid627

11% 70.134 53% 330.000 64% 400.000

Urea594

52% 307.642 67% 400.000 76% 450.000

DAP450

2% 10.713 22% 100.000 22% 100.000

Sulphur 508 83% 420.197 79% 400.000 86% 435.000

Phosphoric Acid 255 0% - 0% - 0% -

Total 3.770 41% 1.547.520 59% 2.230.000 66% 2.485.000

21




February 2010

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)

2009E* 2010E 2011E Ammonia 290 290 290

Sulphuric Acid 30 50 50

Urea 265 280 280

DAP 440 470 470

Sulphur 45 100 1002009E* For the 4th Quarter

Sales Revenues (USD Mln)

2009E 2010E 2011E

Ammonia 129 207 226Sulphuric Acid 3 17 20

Urea 48 112 126

DAP 4 47 47

Sulphur 20 29 30

204 411 450

22




February 2010

Operating Proforma2009E 2010E 2011E

Avg. CapacityUtilization

%41% 59% 66%

Production '000 Tons 1.548 2.230 2.485

Product Sold '000 Tons 1.317 1.833 2.032Sales Revenues US$ Mil. 204 411 450EBITDA US$ Mil. 82 198 231EBITDA Margin % 40% 48% 51%Period Net Income US$ Mil. 22 134 168Net Income Margin % 11% 33% 37%Estimated Capex US$ Mil. 4 8 9

23



2003-2011 ECONOMIC PROFILE

February 2010

Consolidated Income StatementIn TRY Million 2003 2004 2005 2006 2007 2008 2009E 2010E 2011ERevenues 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 81 469 110 378 449

Gross margin 12% 13% 10% 12% 13% 33% 10% 26% 28%

G & A Expenses 22 36 36 38 42 72 79 106 109G & A / Sales 8% 9% 9% 8% 7% 5% 7% 7% 7%

Operating income 10 18 7 22 39 398 31 272 340

Operating IncomeMargin 4% 4% 2% 5% 6% 28% 3% 19% 21%

Financial Exp. (Inc.) 5 9 1 2 -7 140 73 38 32

Earnings Before Tax 11 11 1 15 49 262 -42 234 308

Net income 7 7 1 9 39 282 -42 234 288

Net income Diluted 7 7 1 9 39 103 -60 111 152

EBITDA 11 19 8 24 46 454 108 345 414

EBITDA Diluted 11 19 8 24 46 242 41 188 228

EBITDA Margin 4,45% 4,42% 2,03% 4,93% 7,57% 32,15% 10,14% 24,09% 25,91%

24



OPERATING PERFORMANCE

Figures are consolidated from March 19, 2008 .

February 2010

254428 414 481

610

1.412

1.064

1.4311.600

170285 307 336

473

933

688

9421.032

0

250

500

750

1000

1250

1500

1750

2003 2004 2005 2006 2007 2008 2009E 2010E 2011E

Net Sales Revenue

TRY USD

Sales in Million

8 13 6 17 32

297

70

227267

0%

5%

10%

15%

20%

25%

30%35%

0

50

100

150

200

250

300350

2003 2004 2005 2006 2007 2008 2009E 2010E 2011E

Operating Profitability(Million USD)

EBITDA EBITDA Margin

25



SUBSIDIARIES

Negmar Shipping Company

%40 Stake

33.000DWT with 2 vessels

Mid-term objective: To establish fleet including 10 vessels

February 2010

Tarkim Pesticide Company

Partnership with Turkish Agricultural Credit Cooperatives

%40 Stake

11.700Ton/year production capacity

Mid-term objective: To have 10% market share with 40 million TRY

revenues

26



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 gas

- Ideal geographic positioning and logistic capabilities

- Improvement opportunities at the newly acquired facilities.

February 201027



AN AFFILIATE OF THE TURKISH AGRICULTURAL CREDIT COOPERATIVIES

THANK YOU!

Date post:	04-Apr-2018
Category:	Documents
Upload:	kenan-cosguner
View:	217 times
Download:	0 times

fertilizer presentation

Documents