Turkiye Sise ve Cam Fabrikalari A.S. · BIST:SISE
Turkiye Sise ve Cam Fabrikalari A.S — Şişecam — Q4 2022 Earnings Presentation
17 slides from Turkiye Sise ve Cam Fabrikalari A.S's earnings presentation, Feb 3, 2023
Slide 1: Earnings Release Q4 2022
EARNINGS RELEASE February 3, 2023 Şişecam (BIST-100: SISE) reported financial results for the fourth quarter ended December 31, 2022 M. Görkem Elverici, CEO of Şişecam, commented: “The business world has been dealing with a climate of uncertainties globally for almost 3 years. Macroeconomic and geop
Slide 2: Consolidated Summary Financial Results for Q4'22
Consolidated Summary Financial Results for Q4’22 Important Notice: In accordance with TFRS-3 principle, provisional figures had been used for the consolidation purpose of US entities. Following the completion of valuation studies, Sisecam Q4’21 and 2021 FY consolidated financial statements and Chemi
Slide 3: Financial Highlights (Q4'22 vs Q4'21)
Financial Highlights (Q4’22 vs Q4’21)1 • Revenue came in at TRY 29.1Bn, up by 163% YoY (EUR 1.5Bn, up by 77% YoY in EUR terms) o Organic +131%, Inorganic +32% • Gross profit was at TRY 8.2Bn, up by 118% YoY with a margin of 28% o Organic +88%, Inorganic +30% • Adjusted EBITDA came in at TRY 5.8Bn, u
Slide 4: Segmental Analysis (cont'd)
Segmental Analysis (cont’d) Q4'22 2022 Segmental Breakdown of Adjusted EBITDA (TRY Mn) 2020 Q4'21 2021 Q1'22 H1'22 9M'22 Q4'22 2022 QoQ YoY YoY Architectural Glass 1,001 1,434 3,372 1,772 3,995 6,100 1,995 8,094 -5% 39% 140% Auto Glass 145 -62 103 77 236 254 -275 -21 --1,644% 342% -120% Glassware 55
Slide 5: Operational Highlights (Q4'22 vs Q4'21)
Operational Highlights (Q4’22 vs Q4’21) 2 • Flat Glass: Architectural Glass & Auto Glass o Flat glass production, flat at 758K tons o 91% capacity utilization rate (actual output/effective capacity) o Architectural Glass Division: down by 13% in sales volume o Auto Glass Business Line: up by 3% in c
Slide 6: Architectural Glass: 24% share in Revenue, 33% share in EBITDA
Architectural Glass: 24% share in Revenue | 33% share in EBITDA | “Second Largest Topline Contribution & Highest EBITDA Margin Generator in Q4’22” Glass output, recorded at 758K tons in this quarter, was almost flat YoY. Quarter wise-CUR stood at 91% with 63% of the output produced by Turkey operati
Slide 7: Auto Glass: 7% share in Consolidated Revenue
Auto Glass: 7% share in Consolidated Revenue Auto Glass operations have mirrored data flows signaling the start of a mild recovery in passenger car and light commercial vehicle markets. Product deliveries to OEMs gained pace in all regions excluding Russia. Auto replacement glass channel stayed vivi
Slide 8: Chemicals: soda ash sales and pricing
Synthetic soda ash sales were recorded at 529K tons, down by 13% YoY while average per ton prices rose sharply by 104% in USD on the back of skyrocketed production costs due to all time high natural gas spot pricing especially in Q3’22 and constant rise in raw material prices. Sales from Sisecam Che
Slide 9: Glassware and regional breakdown of revenue
warm winter season and higher mobility. Meanwhile, the operations across all regions have been challenged by the rise in imports, especially from low-cost regions. Accordingly, 89% annual rise in topline with a net external revenue of TRY 3.2Bn was recorded by Glassware operations. HORECA channel ac
Slide 10: Below-EBIT items and Cash Flow Analysis
• TRY 2.5Bn FX loss was recorded on Eurobond investments, trade receivables & payables and financing activities vs. TRY 3.3Bn gain in Q4’21 • TRY 909Mn interest expense was recorded on bank loans and issued bonds while TRY298Mn interest income was generated on derivatives • TRY 417Mn was recorded as
Slide 11: Debt Position and FX Position (2022 vs 2021)
Debt Position (2022 vs 2021) Gross debt recorded at TRY 47Bn (USD 2.5Bn) vs. TRY 28Bn (USD 2.1Bn) • 72% of bank loans was in hard currencies (34% EUR, 38% USD) 3 • TRY 802Mn total coupon payment was made in March and in September 2022 on USD 700Mn-Şişecam 2026 Eurobonds • TRY 1.5Bn financial lease w
Slide 12: One-Off Impacts excluded from Financials
One-Off Impacts excluded from Financials: Excluding From EBIT: • 2022: +TRY 5,009 Mn o Q4’22: +TRY 3.899 Mn: TRY 79 Mn: Revaluation gain on fixed income instruments incl. IFRS 9 impact TRY 3.820 Mn: Gains on revaluation of investment properties o 9M’22: +TRY 1.110 Mn: Revaluation gain on fixed incom
Slide 13: Important Events during and after Q4'22
TRY 422 Mn5: Fair value and currency translation adjustment gain on Pacific LLC (consolidation method change) TRY 22 Mn: Losses on the sale of scrap machinery and equipment TRY 1 Mn: Sale of Pasabahce office (Adana) o 9M’21: +TRY 23 Mn TRY 4 Mn: Sale of Paşabahçe Store (Ankara) TRY 11 Mn: Sale of Pa
Slide 14: Corporate governance rating, share buyback and investments
• Following the periodic revision of the Corporate Governance Rating (CGR) Report based on the CRG Agreement which was signed with SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş. on 15/11/ 2022 for a two-year period, the rating of Şişecam has been revised to 96.01 (9.60 out of 10) on 1
Slide 15: Appendix: Sub-Segmental Breakdown of Revenue
Appendix Sub-Segmental Breakdown of Revenue 2020 Q4'21 2021 Q1'22 H1'22 9M'22 Q4'22 2022 Architectural 23% 29% 29% 29% 28% 27% 24% 26% Auto Glass & Encapsulation 11% 9% 10% 7% 7% 7% 7% 7% Glassware 15% 16% 15% 11% 11% 11% 11% 11% Glass Packaging 26% 22% 23% 16% 17% 19% 20% 19% Chemicals 20% 18% 18%
Slide 16: Regional Breakdown Adjusted EBITDA Margin
Regional Breakdown Adjusted EBITDA Margin 2020 Q4'21 2021 Q1'22 H1'22 9M'22 Q4'22 2022 Turkey 44% 47% 37% 37% 35% 33% 24% 30% Foreign Operations 19% 13% 19% 19% 20% 19% 19% 19% Russia, Ukraine and Georgia* 11% 8% 9% 5% 5% 5% 4% 5% Europe* 8% 4% 9% 7% 8% 7% 8% 7% US* 7% 6% 6% 6% 6% Other* 0% 1% 1% 1%
Slide 17: Disclaimer
Disclaimer “Certain information set forth in this document contains “forward-looking information” relating to the Company that are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. These forward-looking st