Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — H1 2023 Earnings Presentation
42 slides from Turkiye Sise Ve Cam Fabrikalari A.s's earnings presentation, 2023
Slide 1: Investor Presentation H1'23
ŞİŞECAM Investor Presentation H1’23
Slide 2: Content
Content H1'23 & Historical Key Financial Results Page 3-4 H1'23 & Historical Segmental Results Page 5-7 H1'23 & Historical Regional Results Page 8-9 H1'23 & Historical Operational Results Page 10-13 Liquidity & Capital Allocation Page 14-18 Sustainability – CareForNext 2022-2030 Vision Page 19-24 Şi
Slide 3: H1'23 Key Financial Results
H1'23 Key Financial Results Revenue (TRY Mn) Gross Profit (TRY Mn) Adjusted EBITDA* (TRY Mn) Adjusted Net Income After Minority Interest* (TRY Mn) 58,434 38% 33% 45% 28% 24% 30,069 22% 40,232 19,323 16% 23,258 15,288 14,180 9,747 11,128 8,639 7,832 8,908 9,214 28,365 6,290 5,337 5,674 16,974 9,576 6
Slide 4: Historical Financial Results
Historical Financial Results TRY Mn 95,349 28% 26% 27% 24% 23% 24% 24% 58,434 33,710 40,232 32,058 21,341 23,151 19,323 18,059 15,288 15,550 11,180 14,180 5,161 5,880 6,661 8,595 11,128 4,033 4,298 4,962 2018 2019 2020 2021 2022 H1'22 H1'23 Revenue Gross Profit Adjusted EBITDA Adjusted EBITDA Margin
Slide 5: H1'23 Segmental Revenue and EBITDA Margin
H1'23 Segmental Revenue and EBITDA Margin Architectural Glass (TRY Mn) Industrial Glass (TRY Mn) 34% 13% 24% 5% +5% +50% 11,194 11,738 5,453 -21% +26% +49% 6,013 3,624 +1% 2,635 6,322 2,073 5,726 2,818 4,871 1,551 H1’22 volume effect pricing, product H1’23 H1’22 volume effect pricing, product H1’23
Slide 6: H1'23 Segmental Revenue and EBITDA Margin
H1'23 Segmental Revenue and EBITDA Margin Chemicals (TRY Mn) Energy (TRY Mn) 5% 31% 31% 1% +58% +111% 16,296 6,587 +52% +67% 8,658 2,936 10,329 +59% -9% 3,116 5,847 1,860 7,638 3,651 4,483 1,256 H1’22 volume effect price, product H1’23 H1’22 volume effect pricing, product H1’23 mix, curr. ffect mix,
Slide 7: H1'23 Segmental Revenue and EBITDA
H1'23 Segmental Revenue and EBITDA Diversified Revenue Mix Revenue Bridge (TRY Mn) 2% 11% 20% H1'23 9% 28% 12% 18% Diversified EBITDA Mix Adjusted EBITDA Bridge (TRY Mn) 9% 21% 2% H1'23 38% 13% 17% 7
Slide 8: H1'23 Regional Results
H1'23 Regional Results Geographic Revenue Mix Regional Breakdown of Exports from Turkey 2% 8% 12%1% 14% 6% 36% 2% H1'23 6% H1'23 57% 21% 16% 19% Sales in Turkey Exports from Turkey Europe Middle East North America Europe US South America Asia North Africa Russia, Ukraine and Georgia Other Other Top
Slide 9: Historical Regional Results
Historical Regional Results 1% 3% 3% 3% 2% 2% 2% 9% 9% 8% 14% 14% 14% 15% 13% 12% 14% 23% 22% 21% 25% 20% 21% 21% 23% 20% 24% 23% 19% 18% 19% 39% 42% 37% 37% 38% 36% 34% 2018 2019 2020 2021 2022 H1'22 H1'23 Sales in Turkey Exports from Turkey Europe US Russia, Ukraine and Georgia Other 9
Slide 10: H1'23 Operational Results
H1'23 Operational Results K tons Glass Production Soda Ash Production Chromium Chemicals Sales Volume 2.867 2.508 2.402 2.288 1.214 1.060 62 1.670 1.579 42 53 1.653 1.448 35 731 709 9 8 H1'22 H1'23 H1'22 H1'23 H1'22 H1'23 Domestic International Domestic International Domestic International* * Intern
Slide 11: Historical Production Results - Glass
Historical Production Results - Glass K tons Turkey; 57% Turkey; 57% Turkey; 54% Turkey; 55% Turkey; 58% Turkey; 58% Turkey; 58% Non-Turkey; 43% Non-Turkey; 43% Non-Turkey; 46% Non-Turkey; 45% Non-Turkey; 42% Non-Turkey; 42% Non-Turkey; 42% 5,781 5,619 1% 1% 4,947 5,052 4,857 1% 1% 1% 41% 42% 41% 43
Slide 12: Historical Production & Sales Volume - Chemicals
Historical Production & Sales Volume - Chemicals K tons Soda Ash Production 4,877 70% 2,402 2,361 2,380 2,169 2,343 2,288 40% 39% 38% 37% 70% 69% 60% 61% 62% 63% 30% 30% 31% 2018 2019 2020 2021 2022 H1'22 H1'23 Domestic International K tons Soda Ash Sales K tons Chromium Chemicals Sales 4.670 158 13
Slide 13: Installed Capacities
Installed Capacities Architectural Glass Glassware Glass Packaging Soda Ash 6% 5% 3%3% 6% 19% 12% 27% 3.5Mn 565K 2.7Mn 8Mn 8% 51% tons/year 57% tons/year 55% 43% tons/year tons/year 5% 13% 68% 6% 13% Turkey Russia Ukraine* Georgia Turkey Bosnia Bulgaria USA ** Turkey Russia Bulgaria Turkey Russia Bu
Slide 14: Historical Gross Debt & Liquidity Results
Historical Gross Debt & Liquidity Results TRY Mn 62,868 7,269 46,912 4,629 21,150 27,670 25,245 4,335 15,846 17,142 12,811 34,449 8,009 2,963 3,876 8,369 9,355 17,038 2,606 10,524 3,164 4,513 2,239 3,911 2018 2019 2020 2021 2022 H1'23 Net Debt Cash and cash equivalents Marketable Securities* Net Deb
Slide 15: Debt Position
Debt Position Net Debt Bridge (TRY Mn) Net Debt: USD 1.3 Bn Net Debt/EBITDA 1.1x Term Structure of Gross Debt (TRY Mn) Fixed / Variable TRY RUB Other 1% 3% 62,868 RUB 4% 3% Interest Rate 65% USD 77% / 23% 40,738 21% EUR 31% TRY USD 35% 33% 65% 22,130 EUR 39% H1'23 Long Term Short Term *USD 1.6bn equ
Slide 16: Historical FX Position
Historical FX Position H1’23: Net Long FX Position : USD 104 Mn Original Currency (Mn) 2018 2019 2020 2021 2022 H1'23 1,337 914 813 562 616 641 289 375 275 300 176 186 113 -318 -202 -403 -367 -507 USD EUR Other Currencies corresponding TRY 16
Slide 17: FCF & Capex
FCF & Capex (TRY Mn) H1'22 H1'23 Change CAPEX Breakdown (H1'23) Net Profit 9,241 9,081 -159 Non Cash Items 4,536 8,965 4,429 10% Changes in Working Capital -7,911 -6,798 1,113 7% 31% Cashflow from operations 5,866 11,249 5,383 Interest received,net -624 -1,543 -919 Dividend paid,net -1,499 -3,065 -1
Slide 18: Historical Capex Analysis
Historical Capex Analysis TRY Mn 95,349 96,000 16% 14% 12% 9% 8% 8% 76,000 7% 58,434 56,000 40,232 36,000 32,058 23,151 21,341 18,059 15,550 14,180 16,000 10,830 8,595 7,778 7,103 4,033 4,298 2,890 4,962 2,221 1,873 2,637 2,814 -4,000 2018 2019 2020 2021 2022 H1'22 H1'23 Revenue Adjusted EBITDA Cape
Slide 19: Sustainability
SUSTAINABILITY 19
Slide 20: Şişecam 2022 Sustainability Report
Şişecam 2022 Sustainability Report Within the framework of our CareforNext approach, we aim to create positive impact and value on a global scale with applications and solutions in order to reach goals we have determined under the pillars of Protect the Planet, Empower Society and Transform Life. Wh
Slide 21: Şişecam 2022 Sustainability Report
Şişecam 2022 Sustainability Report We accept the driving force of the climate crisis as an undeniable reality in all of our sustainability practices and carry on our activities based on our 2050 Vision of "Carbon Neutral". PROTECT THE PLANET: SISECAM IN 2022 WORK THAT MAKES A DIFFERENCE PIONEERING M
Slide 22: Şişecam 2022 Sustainability Report
Şişecam 2022 Sustainability Report We know that a sustainable business life can only be achieved through inclusive, pluralistic and participatory practices. We build the future by protecting our heritage with the strength we derive from our corporate culture. EMPOWER SOCIETY: SISECAM IN 2022 ▪ We he
Slide 23: Şişecam 2022 Sustainability Report
Şişecam 2022 Sustainability Report In line with our pillar of "Transform Life", we work with the aim of being a leaner, more flexible and agile organization. In order to create resilient business models, we take steps to create data-based decision-making processes, and to develop sustainable product
Slide 24: Şişecam 2022 Sustainability Report
Şişecam 2022 Sustainability Report In addition to the Sustainability Policy, which includes our basic principles, the "Sustainability Statement", which contains our goals and commitments regarding our 11 material ESG topics and is a guide to communicate our actions, has been published on our corpora
Slide 25: Şişecam at a Glance
Şişecam at a Glance $5.8 Billion 5.8 Million Tons 4.9 Million Tons ~24K Presence in 14 Revenue in 2022 Glass Production Soda ash Production Employees Countries 5th Flat Glass Leader Producer in 2nd Glassware 5th Glass Packaging 2nd Soda Ash 4th Chromic Acid Producer Globally Basic Chromium Producer
Slide 26: Risk Management Policies
Risk Management Policies Leverage Leverage with conservative Net Debt/EBITDA levels Maintain sufficient liquidity to meet short-term funding and to finance equity portion of Liquidity Capex FX Position FX position limited to -10% to 20% of shareholder’s equity Not only a diversified relationship ban
Slide 27: Appendix
Appendix • Operating Structure • Production Facilities • FX Exposure • COGS Analysis • Natural Gas Prices & Profitability • Summary Balance Sheet • Summary Income Statement • New Implementations • Transformation for Value – One Şişecam 27
Slide 28: Şişecam Operating Structure
Şişecam Operating Structure 28
Slide 29: Şişecam Production Facilities
Şişecam Production Facilities FLAT GLASS INDUSTRIAL GLASS CHEMICALS GLASS / GLASSWARE SODA CHROMIUM PORT ENERGY OTHER* AUTO GLASS ENCAPSULATION GLASS FIBER PACKAGING ARCHITECTURAL CHEMICALS CHEMICALS MANAGEMENT TURKEY 4 PLANTS 1 PLANT 1 PLANT 3 PLANTS 3 PLANTS 1 PLANT 1 PLANT 1 PLANT 5 1 PLANT 6 BUL
Slide 30: Fx Exposure – H1'23
Fx Exposure – H1'23 Consolidated Şişecam Fx Exposure – H1'23 Revenue 38% 28% 24% 7% 3% COGS 49% 17% 25% 7% 2% TRY EUR USD RUB Other 30
Slide 31: Fx Exposure – H1'23
Fx Exposure – H1'23 Architectural Glass Industrial Glass Revenue 52% 30% 6% 5% 7% Revenue 26% 67% 6% 1% COGS 43% 37% 6% 5% 9% COGS 28% 69% 2% 1% TRY EUR USD RUB Other TRY EUR USD RUB Glassware Glass Packaging Revenue 42% 34% 8% 9% 7% Revenue 43% 19% 6% 30% 2% COGS 54% 30% 3% 9% 4% COGS 53% 3% 12% 30
Slide 32: Fx Exposure – H1'23
Fx Exposure – H1'23 Chemicals Energy Revenue 27% 73% Revenue 100% COGS 23% 21% 56% COGS 100% TRY EUR USD TRY Other Revenue 30% 57% 13% COGS 34% 51% 15% TRY EUR USD 32
Slide 33: COGS Analysis – H1'23
COGS Analysis – H1'23 Other 57% 4% 7% 19% 2% 26% 34% Şişecam 4% 11% 6% 19% Input & Materials & Packaging Ngas Electricity Labor Depreciation Outsourcing & Other Architectural Glass 37% 32% 5% 6% 4% 16% Industrial Glass 46% 2% 8% 13% 3% 28% Glassware 31% 23% 8% 26% 4% 8% Glass Packaging 43% 22% 10% 1
Slide 34: Natural Gas Prices – H1'23 & Historical
Natural Gas Prices – H1'23 & Historical Turkey Ngas Expense in total COGS ŞİŞECAM 22% 14% 12% 12% 11% 10% 2018 2019 2020 2021 2022 H1'23 H1'23 Actual Turkey Ngas Expense in total COGS 18% 20% 13% 14% 14% 14% 2% Architectural Glass Industrial Glass Glassware Glass Packaging Chemicals Energy Şişecam 3
Slide 35: Natural Gas Price & Profitability
Natural Gas Price & Profitability Turkey Ngas (base 2017-end) vs Adjusted EBITDA Margin 26% 24% 23% 27% 24% 24% 2,146 2,009 146 205 206 293 2018 2019 2020 2021 2022 H1'23 Weighted Avg. Ngas Price Index Şişecam Adj. Ebitda Margin Natural Gas Price Changes - Turkey (Year-end Effective) 2018 92% Hike f
Slide 36: Summary Balance Sheet
Summary Balance Sheet SUMMARY BALANCE SHEET (TRY Mn) 1 H1'22 H1'23 Change Total Assets 122,799 201,897 64% Cash & Cash Equivalents 15,482 21,150 37% Financial Assets & Derivatives 8,859 9,226 4% Trade Receivables 17,287 25,796 49% Inventories 13,122 25,743 96% Equity-Pickups 2,124 2,626 24% Property
Slide 37: Summary Income Statement
Summary Income Statement SUMMARY INCOME STATEMENT (TRY Mn) 1 H1'22 H1'23 Change Revenue 40,232 58,434 45% Cost of Goods Sold -24,591 -39,112 59% Gross Profit 15,642 19,323 24% General and administrative -1,883 -3,464 84% Sales and marketing -5,493 -7,708 40% Research and development -72 -158 121% Ot
Slide 38: Digital and Automated Treasury Management
Digital and Automated Treasury Management ▪ Migration of All ▪ SWIFT API ▪ Global Payment Companies to Management SAP ▪ SWIFT GPI ▪ API connections ▪ Vendor data between multiple Management in ▪ SWIFT KYC systems. a single platform As a member of SWIFT Payment Management in Establishing an identical
Slide 39: Digital and Automated Treasury Management
Digital and Automated Treasury Management Instant monitoring Daily monitoring of bank accounts of bank accounts Adapting digital developments to our company for an in Turkey. around the world effective cash management and payment system. Making payments completely trackable Fintechs MT940 from a sin
Slide 40: Transformation for Value – One Şişecam
Transformation for Value – One Şişecam Organization Structure Simplification ONE Legal Entities & Shareholding ‘New Operating Model’ ŞİŞECAM Simplification of the Remaining Corporate Structures in Group Structure (2014-2020) 30.09.2020 Operating Model and Organization Design Governance Corporate Str
Slide 41: Disclaimer
Disclaimer This information in this document has been obtained by T. Şişe ve Cam Fabrikaları A.Ş. (“Şişecam” from sources believed to be reliable, however, Şişecam cannot guarantee the accuracy , completeness, or correctness of such information. This document has been issued for information purposes
Slide 42: Contact Details
Contact Details T. Şişe ve Cam Fabrikaları Şişecam Genel Merkezi D-100 Karayolu Cad. No:44A 34947 Tuzla/İstanbul Turkey Tel : (+90) 850 206 50 50 Fax: (+90) 850 206 40 40 Gökhan Güralp, Chief Financial Officer gguralp@sisecam.com Hande Özbörçek, IR Director, hozborcek@sisecam.com Tel: (+90) 850 206