Trakya Cam Sanayii A.S — Q3 2019 Earnings Presentation
36 slides from Trakya Cam Sanayii A.S's earnings presentation, 2019
Slide 1: 2019 Q3 Results Trakya Cam Investor Presentation
2019 Q3 Results TRAKYA CAM Investor Presentation
Slide 2: Contents
Contents 3 Financial & Operational Overview 13 Trakya Cam 19 Sisecam Group Overview 2
Slide 3: Financial & Operational Overview
Financial & Operational Overview 2019 Q3 Highlights Key Financial Indicators Operational Performance 3
Slide 4: 2019 Q3 Highlights
2019 Q3 Highlights Financials Highlights Revenues down by 2% YoY, was at TRY 1.6 Billion in 2019 Q3 Adjusted EBITDA of TRY 346 Million, down by 15% YoY with a margin of 21% Adjusted Net Income of TRY 178 Million, down by 36% YoY with a margin of 11% Developments in the third quarter Share of interna
Slide 5: Key Financial Indicators: Summary Income Statement
Key Financial Indicators Summary Income Statement TRY mn 2018 Q3 2019 Q2 2019 Q3 YoY Growth QoQ Growth 2018 9M 2019 9M YoY Growth Adjustments excluded from EBIT Revenue 1.667 1.731 1.631 -2% -6% 4.214 4.896 16% 9M’19: TRY 93 Million: Revaluation gain on fixed Gross Profit 527 539 521 -1% -3% 1.370 1
Slide 6: Key Financial Indicators: Summary Balance Sheet
Key Financial Indicators Summary Balance Sheet TRY mn 2018 2019 9M YoY Growth Total Assets 10.354 12.590 22% Cash & Cash Equivalents 1.340 2.508 87% Financial Assets 1.053 1.183 12% Trade Receivables 980 956 -2% Inventories 1.090 1.311 20% Equity-Pickups 308 317 3% Property, plant and equipment 4.89
Slide 7: Key Financial Indicators: Liquidity Analysis
Key Financial Indicators Liquidity Analysis TRY mn TRY mn Net Cash Position in 2019 9M FCF* -12 Sale of tangible/intangible assets 20 Proceeds from advances & loans given -183 Employee Termination Benefits -9 Net Change in Financial Liabilities 1.245 Cash outflows regarding financial leases -17 Fx T
Slide 8: Sales by Geographies
Sales by Geographies Accelerated Growth in All Operating Regions YoY Revenue Evolution through Regions Breakdown of Sales by Region* TRY mn 2018 Q3 2019 Q3 36% 34% 43% 42% 8% 6% 5% 8% 8% 10% Domestic Export from Turkey Russia India Europe • Consolidation effect of Indian operations, topline contribu
Slide 9: Sales by Businesses
Sales by Businesses Accelerated Growth in All Businesses Revenue Breakdown by Businesses* 36% 31% 34% 66% 64% 69% 2018 Q3 2019 Q2 2019 Q3 Architectural Auto-Glass + Encapsulated • Highest contribution to topline growth from architectural glass business • Starting 2017, home appliances are reported i
Slide 10: Financials Performance
Financials Performance Consolidated EBITDA & CAPEX Consolidated Net Debt/EBITDA TRY mn 11,11 TRY mn 0,89 0,75 0,76 4,93 5,15 0,64 0,67 3,90 0,52 0,49 0,51 0,47 1.861 2,18 0,40 1,24 1,37 0,28 1.234 1.196 1.269 1.147 1.181 976 990 818 882 691 704 690 517 549 418 459 391 362 331 286 250 233 152 62 2014
Slide 11: Operational Performance
Operational Performance Continued Production with High Capacity Utilization Production Volume (Flat & Frosted Glass) K tons Turkey International 2.524 2.400 2.507 2.163 2.268 1.110 837 951 774 1.009 710 647 1.390 1.414 1.563 1.556 1.259 313 269 397 378 2014 2015 2016 2017 2018 2018 Q3 2019 Q3 2.3 mn
Slide 12: Financial Summary
Financial Summary Consolidated Financials Consolidated Revenue Breakdown* TRY mn TRY mn 25% 25% 25% 21% 21% 6.073 19% 18% 5.875 4.896 4.896 4.331 4.214 4.331 4.214 45% 39% 3.016 3.016 45% 2.118 42% 2.019 2.118 2.019 40% 1.483 1.561 976 1.147 1.119 49% 45% 55% 61% 517 391 55% 58% 57% 51% 55% 2014 201
Slide 13: Trakya Cam
Trakya Cam Global & Local Presence History Organizational Structure 13
Slide 14: Operations & Global Presence
Operations & Global Presence Shareholder Structure Operations of Flat Glass in 10 countries with 3,2 mn tons/year installed capacity Free Float; Bulgaria 2 1 30% Trakya Glass Bulgaria EAD Şişecam; 1 1 1 Float, & Auto Glass, Mirror & Processed 70% Hungary Romania Laminated Line Flat Glass Market Outl
Slide 15: Local Presence
Local Presence High Concentration in the Local Market Competition in Domestic Market Market Shares - Consumption Trakya Cam’s Capacities in Domestic Market 2018 Lüleburgaz 2 Float Lines (440K ton Total Capacity) Mirror, Autoglass Yenişehir 2 20% Float Lines (500K ton Total Capacity) Coated, Laminate
Slide 16: Operating Profile
Operating Profile Clear Float -Glass Architectual Heat Control Glass (Low-E Coated Glass) Solar Control Glass (Online Coated Glass) Related Industries Glass Safety and Security Glasses Noise Control Glasses Decorative Glasses (Mirror, Patterned Glass) Movable Door Glasses Fixed, Encapsulated Fixed S
Slide 17: History
History Automotive glass production started in Trakya Cam was founded in Lüleburgaz, Turkey Bulgaria. JV with Saint Gobain for Egypt Takeover of the assets of Italian Sangalli and Russia Projects Polatlı and Russia Plants resumed production Vetro Porto Lüleburgaz Automotive Glass Plant resumed produ
Slide 18: Organizational Structure
Organizational Structure TRAKYA CAM SANAYİ A.Ş. Sisecam Flat Trakya Sisecam TRSG Glass Sisecam Flat Glass Glass Holding BV Investment B.V. Otomotiv A.Ş. Holding BV India Private Limited 100% 100% 100% 70% 100% Trakya Glass Saint Gobain Sisecam Flat Richard Fritz Glasscorp SA Sisecam Automotive AGAR
Slide 19: 2019 9M Results: Şişecam Overview
WS SISECAM 2019 9M Results Overview
Slide 20: Şişecam at a Glance
Şişecam at a Glance $3,2 Billion 4,9 Million Tons 2,4 Million Tons 21.968 Presence in 13 Revenue Glass Production Soda Production Employees Countries 5th Flat Glass 3rd Glassware 5th Glass Leader Producer 11th Soda Ash 4th Chromic Acid Producer Producer Packaging in Basic Producer Producer Globally
Slide 21: Key Financial Highlights
Key Financial Highlights Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 39% 31% 28% 26% 24% 25% 20% 28% 25% 25% 24% 20% 21% 22% 15.550 13.216 11.318 11.083 8.569 6.876 7.415 4.890 4.339 3.120 3.436 1.365 1.764 2.120 2014 2015 2016 2017 2018 9M'18 9M'19 Revenue Growth (YoY) 15% 8% 16
Slide 22: Revenue
Revenue Segments’ Contribution to Revenue 9M'18 9M'19 TRY mn 4% 2% 22% 20% 38% 37% 20% 24% 16% 17% Flat Glass Glassware Glass Packaging Chemicals Other* 22 * Consists of energy trade of Şişecam
Slide 23: EBITDA
EBITDA Segments’ Contribution to EBITDA** 9M'18 9M'19 TRY mn 1% 6% 33% 33% 32% 27% 10% 14% 19% 25% Flat Glass Glassware Glass packaging Chemicals Other* *Consists of energy trade of Şişecam 23 ** Excluding one-off incomes
Slide 24: Revenue by Geography
Revenue by Geography TRY bn 9M’18 9M’19 15,6 3% 1% 13,2 22% 22% 24% 24% 11,3 39% 11,2 40% 8,6 37% 39% 7,4 6,9 22% 31% 14% 28% 23% 14% 28% 23% 22% 23% 23% 23% 39% 40% 39% 37% 39% 37% 49% 49% 46% 2014 2015 2016 2017 2018 9M'18 9M'19 Europe Russia, Ukraine and Georgia Domestic Export Other Domestic Exp
Slide 25: Exports from Turkey
Exports from Turkey Exports of USD 590 Million in 9M 2019 to 150 countries Top 10 Countries Italy 15% North & Asia Egypt 8% Middle Europe France 6% America 11% 52% Spain 5% 6% Middle Far East USA 5% East 1% Saudi Arabia 5% Africa 14% Bulgaria 4% Oceania 10% Brazil 4% 1% South Germany 4% America Sout
Slide 26: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken K tons 39% SODA 4.791 4.947 61% 4.464 4.045 4.127 3.650 3.620 2.116 2.170 2.278 2.343 2.361 Domestic International* 1.770 1.778 42% 2014 2015 2016 2017 2018 9 M '1 8 9 M '1 9 GLASS Glass Soda Chemicals 58% Domestic Internatio
Slide 27: Şişecam vs. Competitors
Şişecam vs. Competitors Strong Global Player with Competitive Profitability 33% 27% 26% 26% Glass Revenues’ Share in Total 25% Owens Illinois 100% 18% NSG 100% 16% 16% 17% Şişecam 77% 11% 12% Asahi Glass 50% Ardagh 37% St Gobain* N/A -4% * Due to the change in reporting system of St Gobain, segmenta
Slide 28: Şişecam History
Şişecam History Glassware and container production – Paşabahçe Reaching World glass volumes, To Be Among The Top 3 (Modest Growth) Efficient Management Structure Producers Globally Investments Abroad Investment Structuring 1935-1960 1960-1990 1990’s 2000’s 2014’s Onwards Expansion of product range S
Slide 29: Corporate Structure
Corporate Structure 1.Şişecam, Trakya Cam and Anadolu Cam have shares on Camiş Elektrik 2.Şişecam and Trakya Cam have shares on Çayırova Cam Sanayi 3.Çayırova Cam have shares on Cam Elyaf * Publicly traded at BIST 29
Slide 30: Operating Territories
Operating Territories PRODUCTION PLANTS IN TURKEY ŞİŞECAM FLAT GLASS ŞİŞECAM GLASSWARE Trakya Cam Sanayii A.Ş. Paşabahçe Cam San. Ve Tic. A.Ş. Trakya Plant - Kırklareli Kırklareli Plant Mersin Plant - Mersin Eskişehir Plant Trakya Yenişehir Cam Sanayii A.Ş. Denizli Cam San. Ve Tic. A.Ş. Yenişehir Pl
Slide 31: Prudent Risk Management Policies
Prudent Risk Management Policies Leverage Leverage with conservative NET DEBT / EBITDA levels Maintain sufficient liquidity to meet short-term funding and finance Liquidity equity portion of Capex FX Position FX position limited to +/- 25% of shareholder’s equity Not only a diversified relationship
Slide 32: Credit & Corporate Governance Ratings
Credit & Corporate Governance Ratings Credit Ratings MOODY’s LT FCY Rating B1 Negative FITCH LT FCY Rating BB- Negative Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,53 from 9,48 in December 2018. As a Corporate Policy, Şişecam continues to strive for reaching the high
Slide 33: Sustainability
Sustainability Key Sustainability Achievements The Group is among the first 100 in “Best Emerging Markets Performers” Viego Eiris Sustainability Index • 1.100 ton waste reduction PRESERVE NATURAL RESOURCE MANAGEMENT • 175 bin ton glass recycled and used as raw material • 2,6 million m3 water re used
Slide 34: Sustainability Targets & Planned Actions
Sustainability Şişecam’s Sustainability Targets & Planned Actions 34
Slide 35: Disclaimer
Disclaimer This information in this document has been obtained by Trakya Cam Sanayii A.Ş. from sources believed to be reliable , however, Trakya Cam Sanayii A.Ş. cannot guarantee the accuracy , completeness, or correctness of such information. This document has been issued for information purposes o
Slide 36: Contact Details
Trakya Cam Sanayi A.Ş. Sisecam Genel Merkezi D-100 Karayolu Cad. No:44A 34947 Tuzla/İstanbul Turkey Tel : (+90) 850 206 50 50 Fax: (+90) 850 206 40 40 Contact Details Görkem Elverici, Chief Financial Officer gelverici@sisecam.com Tel: (+90) 850 206 3885 Başak Öge, Investor Relations Director boge@si
Trakya Cam Sanayii A.Ş. — Q3 2019 Earnings Presentation on 6ix