INVESTORS MEETING
09/10/09
AKSA 2007-2012
THE IMPACT OF STRATEGIC
PLAN ON THE COMPANY
PROFITABILTY
1
PRODUCT COMPOSITION
%
2008-H1
2009-H1
2009-Q1
2008
STANDARD
62%
66%
66%
62%
STD VALUE ADDED
32%
29%
29%
32%
SPECIAL PRODUCTS
6%
5%
5%
6%
CARBON FIBER
0%
0%
0%
0%
100%
100%
100%
100%
TOTAL
2
EBITDA TARGET
2007
2012
2009/1H
EBITDA
%12,1
MARGIN
%6,5
%15
The reasons of the revision of the EBITDA target:
• The recovery of the spreads
• The fall in the prices of raw materials (ACN, coal, natural gas, etc.)
Fundamental Assumptions:
• Initiating sales of 1500 tpa Carbon Fiber as of second half of 2009,
• Saving up to %40 on energy costs by commissioning the new thermal
power plant,
• Rising the proportion of special fiber from %7 to %11 through new
R&D investments.
3
SPREAD ANALYSIS
Spread Analysis-$/ton
2005
2006
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Spread Change
-117
154
50
-128
64
95
95
-55
-30
274
-200
-43
Cumulative Spread
Change
-117
37
86
-42
22
117
212
157
126
401
201
158
* Spread Change reflects the change of $/ton relative to the previous period.
* Cumulative Spread Change reflects the cumulative change of $/ton relative to the average spread of 2004.
4
NEW PRODUCTS FOR
DIFFERENT INDUSTRIES:
CARBON FIBER
5
CARBON FIBER



Start-up process for the carbon fiber production plant has been
completed.
The first commercial sale is planned to be realized in the last quarter of
2009.
In order to build up and improve a strong composite sector in Turkey, the
R&D projects have been started with the universities.


It is planned to join the international fairs that will be arranged in
Chicago, Shangay, and Singapore in 2009.
AKSA has signed the distributor
agreement with the leading consulting
companies DeLong&Associates, LLC,
and BlackSun Partners in order to
promote AKSACA brand in global
markets.
6
Coal-Based Energy Production
7
05/10/2009
8
The 45th R&D Center of Turkey belongs to Aksa...
• AKSA has commissioned the R&D Center as of 2009 by combining its R&D
activities under a single roof, which has been performed for the product and
process development, to increase the productivity and decrease the costs since
the foundation.
• The registration process of the AKSA R&D Center, which has been
commissioned in March, has been completed in 14 May 2009 through the
decision meeting of the Ministry of Industry and Trade of Turkey.
•“Evaluation and Inspection Commitee of R&D Centers” has decided on the
registration of the R&D Center of AKSA as of 20 March 2009, upon the favourable
report of the arbiters after a successful performance of AKSA in the field visit.
• AKSA R&D Center will continue to perform its activities of improving the
existing products and processes continuously, developing new products to the
market with its well-qualified human resources and its infrastructure and
systems.
9
THE TRANSFER OF THE NATURAL GAS PLANT
•
AKSA has completed the operations for the transfer of the energy
production facility from Akenerji ,with the capacity of 70 MW with a
burning system of natural gas as of 30 April 2009, which exists in its
own plant site.
• Transfer value has been determined as 12.608.000 TL + VAT
considering the evaluation report of independent audit.
10
INDUSTRIAL DEVELOPMENTS
11
ACRYLIC FIBER INDUSTRY
• The increase in the demand for acrylic fiber has started as of February in
global scale especially in Far East and Middle East.
Main reasons for the increase in demand;
• The inventories of raw materials and semi-finished products have
diminished;
• The price decrease of raw materials have settled down;
• The utilization rate of acrylic fiber in the production of cotton yarn and
in the plush market has increased as a result of the shrinkage of the
margin between the prices of polyester and acrylic fiber.
• Fiber manufacturers in China, which worked with %65 CUR in the last quarter
of 2008, have increased their CUR to %80-%85.
• The capacity utilization rate of Aksa in the period of January-September 2009
is about %82. We expect that the annual CUR will exceed the rate of %80.
Despite the crisis, the production has diminished only by 6% during the first 9
months compared to the same period of the previous year.
12
THE DEMAND FOR ACRYLIC FIBER IN CHINA
China Productions and Imports (Jan- July)
293.30
0
724.358
800,000
275,758
Quantity (ton)
Production
699.900
214,035
600,000
400,000
675.135
Imports
192,800
448,600
486.600
461,100
200,000
107,200
507,100
508.500
110,900
379,400
0
2005
397,600
2006
2007
2008
2009
Years
The period of January – July:
The production has actualized 398.000 tons with an increase of %4,79.
The import has actualized 111.000 tons with an increase of %3,45.
2008:
The production and the import has actualized 744.400 tons aggregately, 598.600 tons and 145.800 tons respectively.
13
ECRU TOW – ACN PRICES ($/ton)
EUROPE & AMERICA
3,000
2,500
2,286
(*)
2,000
1,500
-09
Q3 0 9
Q2 0 9
Q1 0 8
Q4 0 8
Q3 0 8
Q2 0 8
Q1 0 7
Q4 0 7
Q3 0 7
Q2 0 7
Q1 0 6
Q4 0 6
Q3 0 6
Q2 0 6
Q1 0 5
Q4 0 5
Q3 0 5
Q2 0 5
Q1 0 4
Q4 0 4
Q3 0 4
Q2 0 4
Q1 0 3
Q4 0 3
Q3 0 3
Q2 0 3
Q1 0 2
Q4 0 2
Q3 0 2
Q2 0 2
Q1 0 1
Q4 0 1
Q3 0 1
Q2 0 1
Q1 0 0
Q4 0 0
Q3 0 0
Q2 0 0
Q1 9 9
Q4 9 9
Q3 9 9
Q2 9 9
Q1 9 8
Q4 9 8
Q3 9 8
Q2 9 8
Q1 9 7
Q4 9 7
Q3 9 7
Q2 9 7
Q1
14
Kaynak: PCI
Margin
ACN
ECRU TOW
08 Ave.Mar.
936 $ 9M/2009
Ave.Mar.
1088 $
07 Ave.Mar.
798 $
06 Ave. Mar.
802 $
(*)
975
1,000
(*)
1,311
500
0
(*) The 3Q average values of 2009.
ECRU TOW - ACN PRICES ($/ton)
FAR EAST
3,000
2,500
(*)
2,075
2,000
1,500
1,392 (*)
1,000
683 (*)
500
-0 9
Q3 0 9
Q2 0 9
Q1 0 8
Q4 0 8
Q3 0 8
Q2 0 8
Q1 0 7
Q4 0 7
Q3 0 7
Q2 0 7
Q1 0 6
Q4 0 6
Q3 0 6
Q2 0 6
Q1 0 5
Q4 0 5
Q3 0 5
Q2 0 5
Q1 0 4
Q4 0 4
Q3 0 4
Q2 0 4
Q1 0 3
Q4 0 3
Q3 0 3
Q2 0 3
Q1 0 2
Q4 0 2
Q3 0 2
Q2 0 2
Q1 0 1
Q4 0 1
Q3 0 1
Q2 0 1
Q1 0 0
Q4 0 0
Q3 0 0
Q2 0 0
Q1 9 9
Q4 9 9
Q3 9 9
Q2 9 9
Q1 9 8
Q4 9 8
Q3 9 8
Q2 9 8
Q1 9 7
Q4 9 7
Q3 9 7
Q2 9 7
Q1
Margin
ACN
ECRU TOW
Source: PCI
9M/2009
08 Ave.Mar. Ave.Mar.
429 $
636 $
07 Ave.Mar.
418 $
06 Ave. Mar.
438 $
0
(*) The 3Q average values of 2009.
15
NET SALES / EXPORT – usd
550
500
450
400
350
300
250
200
150
100
50
0
7
50
0
18
2
53
2
67
6
20
0
67
8
25
8
26
5
68
2
37
0
25
9
22
97
/0
08
20
/0
09
20
08
20
07
20
06
20
05
20
04
20
6
6
Net Sales
0
14
Export
16
FINANCIAL RESULTS OF THE 1ST HALF YEAR OF 2009
• Aksa has turned over 229 million $ in the first half year of 2009. The
export has actualized 97,4 million $ with a share of % 42,6 of the whole
turnover.
• The prices of acrylic fiber has fallen by %33 compared to the previous
year due to the decrease in the prices of main raw material acrylonitril
depending on the fall in the oil prices .
• Sales quantity has diminished by %10,1 compared to the same period
of the previous year.
• Aksa has obtained 27,7 million $ EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) in the 1st half year of 2009. Net
profit has actualized 13,3 million $.
• Total assets have been 730,5 million $.
• Trade Receivables have realized 215,6 million $ with a decrease of
%14,2.
• Short-term liabilities have actualized 150 million $ with a decrease of
%9,2 compared to the end of 2008.
• Inventories have actualized 44 millions of $ with a decrease of %31
compared to the end of 2008 as a result of both the efficient inventory
management and the decrease in commodity prices.
17
EBIT/EBITDA/NET PROFIT MARGIN %
25%
20%
15%
20,1%
14,9%
13,9%
12,1%
8,9%
10%
6,0%
5%
10,4%
7,2%
4,3%
6,5%
2,9%
2,5%
1,9%
9,3%
8,4%
9,8%
5,8%
5,4%
9,2%
6,5%
6,3%
0%
2004
2005
2006
EBIT
2007
EBITDA
2008
2009/06
2008/06
NET PROFIT MARGIN
18
EBIT/EBITDA/NET PROFIT - usd
120
102
93
100
80
76
70
48
60
64
49
57
43
37
40
30 23
17
10
20
22
19
34
28
23
24
13
0
2004
2005
2006
EBIT
2007
EBITDA
2008
2009/06
2008/06
NET PROFIT
19
INVESTMENTS – PROFIT - DIVIDEND
2002-2009/06:
Total Investment
Total Net Profit
Total Cash Dividend
:
:
356,30 million USD
243,50 million USD
:
38,30 million USD
90,0
88
80,0
70,0
60,0
50,0
67,4
52,3
48,5
38,7
40,0 34,0
30,0
30,3
23,8
20,0
10,0
57 58
6,5
19,0
13,2
8,7
27,4
10,2
9,6
19
13,5
13
0,0
2002 2003 2004 2005 2006 2007 2008 2009/06
Investments
Net Profit
Dividend
20
INCOME STATEMENT - usd
INCOME STATEMENT
Net Profit
USD
2006
USD
2007
USD
2008
USD
2009/06
672,371,857 669,506,931 684,847,738 228,954,363
EBITDA
93,415,012
43,285,720
63,609,612
27,718,979
EBIT
69,813,449
16,555,040
36,778,846
22,430,439
Profit Before Tax
52,428,609
18,897,385
69,662,756
15,559,576
Profit After Tax
48,528,619
19,458,393
57,236,868
13,220,189
21
BALANCE SHEET - usd
BALANCE SHEET
USD
2006
USD
2007
USD
2008
USD
2009/06
ASSETS
Current Assets
Liquid Assets
Receivables
Inventories
Other
656,485,433
415,291,680
22,165,507
251,615,192
83,215,080
58,295,901
748,069,541
423,002,372
42,097,275
235,965,992
114,514,101
30,425,004
723,569,279
383,400,399
39,846,007
251,120,874
63,737,622
28,695,896
730,478,871
345,041,979
31,997,073
215,565,041
44,061,685
53,418,181
Long Term Assets
Long Term Trade Receivables
Financial Assets
Tangible Assets
Intangible Assets
Other Long Term Assets
241,193,753
6,492
30,369,488
210,548,946
263,439
5,388
325,067,169
8,034
23,334,970
301,437,193
286,273
699
340,168,879
8,374,931
17,945,031
290,451,931
128,483
23,268,504
385,436,892
8,663,959
17,736,272
335,884,055
4,283,942
18,868,664
LIABILITIES
Current Liabilities
Financial Liabilities
Trade Payables
Other Short Term Liabilities
656,485,433
195,051,386
76,555,324
79,265,881
39,230,181
748,069,541
170,915,214
56,150,882
104,650,684
10,113,648
723,569,279
165,349,548
66,719,223
75,028,919
18,367,005
730,478,871
150,068,175
48,640,046
71,434,388
29,993,740
22,721,677
0
10,787,777
11,933,899
41,097,617
18,588,950
8,733,328
13,775,339
96,441,783
80,070,000
0
16,371,783
110,114,057
92,950,000
0
17,164,057
438,712,370
536,056,710
461,777,947
470,296,639
Long Term Liabilities
Financial Liabilities
Provisions for Debt and Expenses
Deferred Tax Liabilities
Shareholders' Equity
22
Thank You..
23