9m/q3 2017 financial results - tadawul€¦ · e-mail: [email protected] office: +966 13 801...

9M/Q3 2017 FINANCIAL RESULTS

SIPCHEM Q3 2017 EARNINGS CALL

31 OCTOBER 2017, 15:30 KSA, 12:30 UK, 08:30 EST

SIPCHEM Q3 2017 EARNINGS CALL 2

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This presentation has been prepared solely for use at the investor presentation concerning the financial results of Saudi International Petrochemical Company(Sipchem). By attending the investor presentation, or by reading the presentation slides, you agree to be bound by the following limitations.This presentation has been prepared by Sipchem solely for use by you at the investor presentation, held in connection with Sipchem’s financial results. Theinformation contained in this presentation does not purport to be comprehensive and has not been independently verified. No representation or warranty,express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinionscontained in this presentation. The information set out in this presentation may be subject to updating, revision, verification and amendment and suchinformation may change materially. Sipchem is under no obligation to update or keep current the information contained in this presentation and any opinionsexpressed in it is subject to change without notice. None of Sipchem or any of its affiliates, advisers or representatives: (i) makes any representation or warranty,express or implied, as to the truth, fairness, accuracy or completeness of the information in this presentation (or whether any information has been omitted fromthis presentation); or (ii) shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation or itscontents, or otherwise arising in connection with this presentation.

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9M/Q3 2017 RESULT

Highlights

Operations

Financials


SAR Million 2014 20152016IFRS

9 MOS 2017IFRS

Capex/Depreciation (x) 1.8 1.0 0.7 0.9

Avg days on Stream-YTD % 84% 88% 90% 83%

Avg days on Stream-cur Qtr 90% 84% 90% 88%

Sales/employee 3.9 3.0 3.4 3.3

Profitability and Performance

Sustainability FocusCapabilities FocusGrowth Focus

Efficiency and Effectiveness

Capital Structure, Investment / Financial Risk

Liquidity and Stability


9 MOS 2017IFRS

Sales 4,124 3,515 3,515 3,181

EBITDA 1,747 1,234 1,165 1,163

EBITDA Margin 42.4% 35.1% 33.2% 36.6%


9 MOS 2017IFRS

Current Ratio (x) 2.60 2.01 1.58 2.34

Quick Ratio (x) 2.26 1.64 1.22 1.87

Cash from Operations 1,612 927 927 1,156


9 MOS 2017IFRS

Capital Expenditure 1,027 711 479 420

ROCE (%) 8.9% 7.5% 3.1% 6.4%

Dividend Cover (x) 1.25 0.6 0 N/A

Key Message: Improved market conditions, netback contribution and cost advantage position

SIPCHEM HIGHLIGHTS AT A GLANCE….


Plant Performance

PRODUCTIONS SALES

Q2 2017 Q3 2017 Q3 2016

CHEMICALS BUSINESS

Chemical Product Performance

Market Update:

• Most chemicals prices increased during Q3 2017 vs the previous quarter.

25% 5% 16% 48%• Methanol• Butanediol,

Tetrahydrofuran• Maleic Anhydride• Carbon Monoxide• Gamma Butyrolactone• Acetic Acid• Acetic Anhydride• Vinyl Acetate

Monomer and Ethyl / Butyl Acetate


Plant Performance

PRODUCTIONS SALES

Q2 2017 Q3 2017 Q3 2016

POLYMERS BUSINESS

Polymers Product Performance

Market Update:

• Polymer prices remained slightly down during Q3 2017 vs. Q2 2017. Polymer prices up vs. last year.

-5% -10% 32% 23%• LDPE• EVA• Cross linkable LDPE• Semi conductive LDPE


YTD 2017

OTHER

POLYMERS

CHEMICAL

REVENUESYTD 2016

OTHER

POLYMERS

CHEMICAL

MARGINYTD 2017 YTD 2016

63%

29%

8%

54%

37%

9%

Key Message: Netback contribution and low cost advantage lead the way…

SEGMENTATION OVERVIEW

Chemical: “IMC, IDC, IGC, IAC, IVC, IUC, SCC EA” Polymers: “IPC, GACI Other: “SMC & Foreign subsidiaries Sipchem , SSPC”


65%

25%

10%

66%

28%

7%

66%

26%

8%

51%41%

8%


OTHER

POLYMERS

CHEMICAL

EBITDA MARGIN

Key Message YTD 2017 SEGMENTATION

71%

22%

6%

60%31%

9%

YTD 2017 YTD 2016

Key Message: Netback contribution and low cost advantage lead the way…

SEGMENTATION OVERVIEW


70%

23%

7%

54%34%

12%

Market Update:

- Polymer volumes and margins are up YoY

- Increases in YoY methanol volumes and YoY netbacks for methanol, carbon monoxide, BDO, and THF have increased margins and EBITDA for chemicals products


FINANICAL RESULTS Income Statement


Balance Sheet

30 Sept 2017COMPARED TO PREVIOUS PERIODS

Million SAR 30 Sep 2017 30 Sep 2016 Variance %

Current Assets (excl. Inventory) 2,983 2,555 428 17%Inventory 752 754 -2 0%

Fixed Assets 11,973 12,347 -374 -3%Other Assets 423 147 275 187%

Total Assets 16,131 15,803 327 2%

Current Liabilities 1,597 2,096 -499 -24%Non-Current Liabilities 7,472 7,023 449 6%Shareholders Equity 5,537 5,264 273 5%

Minority Interests 1,526 1,421 104 7%Total Liabilities & Shareholder Equity 16,131 15,803 327 2%


Cash flow

9 MOS 2017 VS 2016 CASH FLOW

Million SAR 30 Sep 2017 30 Sep 2016 Variance %

Net Income before Minority, Zakat & Tax 469 102 367 362%

Depreciation of property, plant and equipment 475 429 46 11%

Amortization of intangibles and deferred costs 42 20 22 108%

Provision for employee benefits 24 29 -5 -16%

Loss on disposal of property, plant, and equipment 0.0 31 -31 -100%

Equity settled share based payments 0.4 0.1 0 300%

Net foreign exchange difference 0.1 -3 3 -103%

Finance charges -17 -28 11 -39%

Finance Income 219 208 11 5%

Changes in operating assets and liabilities -56 -95 39 -41%

Net cash provided by operating activities 1,156 694 462 67%

Purchase of property, plant and equipment -419 -272 -147 54%

Purchases of additional shares in subsidiaries 0 -375 375 -100%

Others Investing activities 16 36 -20 -55%

Net cash used in investing activities -403 -611 208 -34%

Changes in short term loans – net -200 -250 50 -20%

Changes in long term loans – net 38 -113 151 -134%

Changes in partners advances – net 8 0 8 100%

Interest paid -170 -184 14 -7%

Net change in Other Financing activities -51 27 -78 -290%

Net cash used in financing activities -375 -520 145 -28%

Changes in cash & cash equivalents 378 -438 815 -186%

Cash & cash equivalents at 1 Jan 1,823 2,127 -304 -14%

Exchange rate Changes Impact -1 2 -2 -133%

Cash & cash equivalents at 30 September 2,200 1,691 509 30%


For further enquiries, please contact:

Faisal Al-ModlijManager Investor Relations

E-mail: [email protected]

Office: +966 13 801 9399


Q&A

THANK YOU,

9m/q3 2017 financial results - tadawul€¦ · e-mail: [email protected] office: +966 13 801...

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