Ciner Group - Erste Securities İstanbul
Transkript
Ciner Group - Erste Securities İstanbul
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. March 2012 Erste Securities Istanbul Turkey in Focus Conference Contents I. II. III. IV. V. VI. VII. VIII. Ciner Group in Brief Park Elektrik Overview Operations Micromine Reserve Report Planned Investments Financial Structure Evaluation of The Latest Financial Tables Corporate Governance Rating Park Elektrik March 2012 3 6 10 13 19 22 31 38 2 I. Park Elektrik Ciner Group in Brief March 2012 3 Ciner Group, Introduction Park Holding, the main shareholder of Park Elektrik, is controlled by Ciner Group, which is solely owned by Mr. Turgay Ciner. Ciner Group’s history goes back to 1978 when it was founded. Ranking among the largest Groups of Turkey, Ciner Group diversified its operations from the energy and mining sectors to tourism, media and broadcasting sectors. Ciner Group is a pioneering actor in energy and mining sector given its new and initial steps since early 1990s. In line with accelerated privatization efforts in 1990s, the Group successfully involved in mining and energy sectors which are the underlying sectors of the Group’s fast growth in recent years. Park Elektrik March 2012 4 Ciner Group, Main Line of Businesses Ciner Group Energy & Mining Group Major Companies Park Elektrik Park Termik Park Teknik Eti Soda Silopi Elektrik Park Elektrik Media Group Commerce, Industry & Services Group Major Companies & Brands Ciner Yayın Holding Haberturk Newspaper Haberturk TV, Radio, Haberturk Web Site Bloomberg HT, FHM, Marie Claire, Newsweek Major Companies Park Marine Park Aviation Lares Park Hotels Park Insurance Park Foreign Trade Denmar Logistics March 2012 5 II. Park Elektrik Park Elektrik Overview March 2012 6 The Company Established in 1994. Initially offered to public in 1997. Park Elektrik is the sole listed company within Ciner Group. Changed its commercial title in 2000. Commenced copper mining operations in late 2006. Merged with ISE-listed Group company, Ceytas, in May 2009. Added asphaltite mining into its operation line following Ceytas merger. Currently operating a copper and an asphaltite mine and plans to establish an HPP (Hydroelectricity Power Plant) in the medium term, and a NGPP (Natural Gas Power Plant) in the long term. Park Elektrik March 2012 7 Ownership Structure Others 32% Park Holding 61% Turgay Ciner 7% Park Elektrik March 2012 8 Participations, Park Termik Park Elektrik has 10% stake in Park Termik Elektrik San. ve Tic. A.S., a Ciner Group company which is involved in thermal power generation in Çayırhan, Ankara. Park Termik operates Cayirhan Thermal Power Plant which has a total production capacity of 620 MW, in four units. The plant is an integrated power generator which procures coal through its own lignite mines. Park Elektrik March 2012 9 III. Park Elektrik Operations March 2012 10 Park Elektrik’s Existing & Planned Facilities Copper Mine Siirt HPP Natural Gas Power Plant Adana Park Elektrik March 2012 Diyarbakır Asphaltite Mine Sırnak 11 I) Madenköy Copper Zone Park Elektrik acquired operation license of Madenkoy copper mine from Eti Holding, a state-owned entity engaged in mining businesses, in 2004 for TL9.4 mn. Mine operations started in late 2006 in the copper zone. So far, around 3 mn tons of ore was extracted in the copper zone. According to initial reports, proven reserves in the zone was determined at 13 mn tons of ore. However, based on a recent report conducted by Micromine Consulting Services, total reserves in the zone was determined at 39.8 mn tons of ore, 31.2 mn tons of which was measured. The company has a concentration facility and it produces and sells concentrated copper that includes a varying rate of copper. Currently, copper content in the concentrate varies between 19-20% levels. Although the Company does not posses a smelting facility, it recently initiated a trial production through a domestic subcontractor to produce A grade cathode copper that includes 99.9% copper content. Park Elektrik exports all of its concentrated copper and cathode copper production. Park Elektrik March 2012 12 Micromine Reserve Report Based On JORC According to a JORC compliant recent reserve estimation made by Micromine Consulting Services, based on the drilling and sampling works by Eti Holding (1981), Preussag AG Metall (1988) and Park Elektrik, the total reserves of Madenköy project was determined 39,821,000 tons of ore, 31,182,000 tons of which was set to be measured. Based on the same report, average tenor rate in Madenkoy copper mine is determined as 2.4% for the whole zone. Current tenor in the zone is lower at 1.92.0% levels. Resource Category Measured Indicated Total Measured & Indicated Inferred Project's Total Resources Tonnes Cu (%) 31,182,000 6,433,000 37,615,000 2,206,000 39,821,000 2.26 2.79 2.34 3.38 2.40 Source: JORC Resource Estimate Report by Micromine Park Elektrik March 2012 13 Capacity Expansion In parallel with growing reserves in the Madenkoy copper zone, the company increased its concentration facility’s capacity from 750k to 1.2 mn tons as of October 2011. Total capex for this investment was Euro 3.5mn. Furthermore, Park Elektrik plans to increase its concentration capacity to 1.8 mn tons in the short-mid term. The company plans to complete this second phase capacity expansion in 2013 with a planned investment amount of Euro 3.5-4mn. In line with increasing capacity, Park Elektrik revised its production targets for the coming two years. The company expects 95k and 150k wmt of production for 2012 and 2013, respectively. Capacity Expansion & Production Targets Concentration Capacity (tons) Concentrated Copper Production Estimations (wmt) Park Elektrik March 2012 2012 2013 1,200,000 1,800,000 95,000 150,000 14 2012 Production Targets Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Ore (wmt) 91,000 87,000 91,000 91,000 94,000 91,000 94,000 94,000 91,000 94,000 91,000 91,000 1,100,000 Ore (dmt) 86,450 82,650 86,450 86,450 89,300 86,450 89,300 89,300 86,450 89,300 86,450 86,450 1,045,000 Con. Copper (wmt) 7,811 7,467 7,811 7,811 8,068 7,811 8,068 8,068 7,811 8,068 7,811 7,811 94,416 Con. Copper (dmt) 7,186 6,870 7,186 7,186 7,423 7,186 7,423 7,423 7,186 7,423 7,186 7,186 86,864 wmt= wet metric ton, dmt= dry metric ton Park Elektrik March 2012 15 Zone Plan Park Elektrik March 2012 16 II) Silopi Asphaltite Zone Asphaltite is a petroleum-origin hydrocarbon with a thermal value of 5,500-5,800 kcal/kg. Park Elektrik has the operational rights of Silopi asphaltite mine until 2033. Estimated asphaltite reserve in Silopi is around 35 mn tons based on Turkish Coal Enterprise (TKI) reports. Operations in the asphaltite zone started in June 2009. The company provides asphaltite to Silopi Elektrik Üretim A.Ş., a group company which is involved in electricity production in Silopi with fluidized bed technology and has a starting capacity of 135 MW. Annual production amount in Silopi is around 450,000 currently and is subject to increase from 2014 onwards in line with capacity expansion of Silopi EUAS. With the expansion, annual asphaltite production will be tripled. Park Elektrik has a profit margin of 15% on its asphaltite sales based on recently renewed contract by two companies. The contract will be valid as long as Silopi Elektrik runs the operations. The mine will be open-pit for the first years of operation. Later on, underground mining will be done by the method of “Cut and Fill Block Caving”. Park Elektrik March 2012 17 Open-Pit Mining in Silopi Park Elektrik March 2012 18 IV. Park Elektrik Planned Investments March 2012 19 Diyarbakır HPP Installed capacity will be 50.5 MW. Production license is valid for 49 years. Estimated investment amount is US$ 60 mn according to initial feasibility studies. Park Elektrik March 2012 20 Ceyhan Natural Gas Power Plant Park Elektrik applied to Energy Market Regulatory Authority for a license to establish a NGPP in Ceyhan, Adana. Installed capacity will be 423 MW. Production license will be valid for 49 years. Estimated investment amount is Euro 250 mn. Park Elektrik March 2012 21 V. Park Elektrik Financial Structure March 2012 22 Annual Concentrate (dmt) & Cathode (ton) Sales 60,931 59,163 55,054 47,417 32,239 9,271 1,210 2006 2007 2008 2009 2010 2011 * In 2010, there was a production halt of four months. ** Cathode copper sales realized for the first time in 3Q11. *** 17.268 wmt concentrated copper were used to produce 2829 mt copper cathode. Park Elektrik March 2012 23 Annual Asphaltite Sales (ton) 476.899 434.333 204,856* 2009 2010 2011 * Asphaltite operations started in mid 2009. Park Elektrik March 2012 24 Total Sales Revenues* (TL) copper asphaltite 2007 2008 2009 151.135.664 19.314.397 64.191.660 8.211.605 69.857.081 110.713.833 80.040.645 19.709.514 2010 2011* *Revenues from other sales is 1.676.016 TL Park Elektrik March 2012 25 Net Earnings (TL mn) 100.8 74.8 37.2 19.8 2007 Park Elektrik 19.4 2008 2009 March 2012 2010 2011 26 Breakdown of COGS, as of YE11 Raw Materials 3% Maintanence 5% Machinery Rent Costs 7% Labor Costs 27% Depreciation 10% Fuel & Energy 17% Park Elektrik Machinery Spare Part Repl. Costs 20% March 2012 27 Annual Margin Comparison (TL mn) 2007 2008 2009 2010 2011 Sales Gross Profit Gross Margin EBITDA EBITDA Margin Net Earnings Net Margin 80 47 59% 43 52% 20 25% 111 73 66% 62 56% 75 68% 79 32 41% 24 30% 19 25% 84 44 52% 42 50% 37 44% 173 107 62% 112 65% 101 58% Park Elektrik March 2012 28 Sources of Financing (TL mn) Shareholders' Equity Total Debt 41 33 30 60 66 8 53 443 302 343 223 88 14 100 130 143 2004 2005 2006 2007 2008 2009 2010 2011 * Park Elektrik has no financial debt. Park Elektrik March 2012 29 VI. Evaluation of 2011 Financial Results Park Elektrik March 2012 30 Evaluation of 2011 Financial Results In 2011, Park Elektrik’s product composition changed by including cathode copper into its product range for the first time. The copper cathode production reached 2829 Mt by the end of the year. In 2011, company’s concentrated copper production in wmt increased by 107% as compared to the previous year. Concentrated copper sales were realized as 71% increase in dmt, y-o-y, as some amount of concentrated copper was utilized for cathode copper production of 2829 mt in 2011. 1210 mt of the cathode copper has been sold by the end of 2011. Revenues from total sales more than doubled under the effect of the capacity expansion, previous year’s mine strike and soared copper prices. The company also had TL15mn of other operational income due to its realized contract in London Metal Exchange. Park Elektrik March 2012 31 Production & Sales Amount 2010 2011 % 37,426 77,510 107% - 2,829 nm 476,899 434,333 -9% 2010 2011 % 32,239 55,054 71% - 1,210 nm 476,899 434,333 -9% Production Concentrated Copper (wmt) Cathode Copper (MT) Asphaltite (ton) Sales Concentrated Copper (dmt) Cathode Copper (MT) Asphaltite (ton) Park Elektrik March 2012 32 Sales Breakdown (TL) & Gross Margin by Products 2010 2011 % 64,191,660 151,135,664 135 59% 68% - 19,314,397 19,709,514 2 29% 20% - 288,210 1,676,016 481 Total Sales Revenues 83,794,267 172,521,194 106 Overall Gross Margin 52% 62% - Copper Sales Gross Margin of Copper Asphaltite Sales Gross Margin of Asphaltite Other Sales Park Elektrik March 2012 33 Income Statement (TL) S a le s COGS G ro s s P ro fit G ro s s M a rg in M a rk e tin g S e llin g & D is t. E xp . G e n e ra l A d m . E xp e n s e s O th e r O p e ra tin g In c o m e O th e r O p e ra tin g E xp e n s e s O p e ra tin g In c o m e O p e ra tin g M a rg in N e t F in a n c ia l In c o m e /E xp P ro fit B e fo re T a x Tax N e t P ro fit N e t M a rg in E B IT D A E B IT D A M a rg in Park Elektrik 2010 8 3 ,7 9 4 ,2 6 7 -4 0 ,1 7 6 ,7 7 6 4 3 ,6 1 7 ,4 9 1 52% -5 ,4 3 8 ,0 1 4 -1 2 ,6 5 3 ,2 4 3 3 ,8 5 8 ,6 5 5 -6 ,6 3 5 ,8 6 7 2 2 ,7 4 9 ,0 2 2 27% 2 2 ,8 7 8 ,6 2 0 4 5 ,6 2 7 ,6 4 2 -8 ,4 5 9 ,2 6 5 3 7 ,1 6 8 ,3 7 7 44% 4 1 ,5 1 8 ,0 3 1 50% March 2012 2011 1 7 2 ,5 2 1 ,1 9 4 -6 5 ,6 1 5 ,4 7 8 1 0 6 ,9 0 5 ,7 1 6 62% -8 ,9 9 0 ,0 4 6 -1 7 ,3 4 4 ,7 3 7 1 6 ,0 4 2 ,7 8 0 -3 ,3 2 5 ,5 5 7 9 3 ,2 8 8 ,1 5 6 54% 3 2 ,9 4 6 ,8 4 5 1 2 6 ,2 3 5 ,0 0 1 -2 5 ,3 3 9 ,2 9 0 1 0 0 ,8 9 5 ,7 1 1 58% 1 1 2 ,2 7 0 ,5 2 6 65% % 106% 63% 145% 65% 37% 316% -5 0 % 310% 44% 177% 200% 171% 170% 34 Margins (%) 2010 2011 Gross Profit Margin 52 62 Operational Profit Margin 27 54 EBITDA Margin 50 65 Net Profit Margin 44 58 Park Elektrik March 2012 35 Summary Balance Sheets (TL) 2010 2011 273,410,595 297,678,924 96,996,526 186,424,631 370,407,121 484,103,555 Short Term Liabilities 23,590,464 34,255,807 Long Term Liabilities 4,255,816 6,391,196 Shareholders Equity 342,560,841 443,456,552 TOTAL LIABILITIES 370,407,121 484,103,555 Current Assets Fixed Assets TOTAL ASSETS Park Elektrik March 2012 36 Corporate Governance Rating Park Elektrik was rated with 8.67 as a result of the Corporate Governance study done by SAHA Kurumsal Rating Agency. According to report done by SAHA, the rating means that the company performs “very good” in terms of Capital Markets Board’s corporate governance principles. It has, to varying degrees, identified and actively managed all significant corporate governance risks through comprehensive internal controls and management systems. The company’s performance is considered to represent best practice, and it had no deficiencies in any of the areas rated. Park Elektrik March 2012 37 T H A N K Y O U. CONTACTS Yesim Bilginturan Selim Erdogan IR Manager IR Manager Phone: +90 216 531 25 33 +90 216 531 25 35 [email protected] [email protected] www.parkelektrik.com.tr www.cinergroup.com.tr Park Elektrik March 2012 38