Trakya Cam Sanayii A.S — Q3 2014 Earnings Presentation
44 slides from Trakya Cam Sanayii A.S's earnings presentation, 2014
Slide 1: Trakya Cam Sanayii A.S. Investor Relations Presentation 2014 Q3
Bi TRAKYA CAM SANAYII A.S. INVESTOR RELATIONS PRESENTATION 2014 Q3
Slide 2: Content
Content 1.Executive Summary • Şişecam Group Overview • Operating Profile 2.Trakya Cam Sanayii A.Ş. • Overview ⁻ Summary ⁻ History & Development ⁻ Vision & Strategy ⁻ Corporate Structure ⁻ Financial Highlights • Operating Profile ⁻ Flat Glass Industry Dynamics ⁻ Global Flat Glass Players ⁻ Competitiv
Slide 3: Şişecam Group Overview
I.ŞİŞECAM GROUP OVERVIEW 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY Şişecam is a conglomerate in Turkey Founded by İşbank in 1935 Operational in : Flat glass , Glass Packaging, Glassware and Chemicals Present in 13 countries: Turkey, Russia, Bulgaria, Egypt, Georgia, Bosnia Herzegovina, Romania, Ukraine, Italy, Germany, Slovakia, Hungary an
Slide 5: Şişecam History
Şişecam History 2013’s ONWARDS TO BE AMONG THE TOP 3 PRODUCERS GLOBALLY 2000’s * Regional leadership achieved GLOBAL VISION * Higher market share regionally 1990’s * Reaching world-class volumes INVESTMENT * Efficient Management Structure RESTRUCTURING * Investments abroad 1960 - 1990 * Expansion of
Slide 6: Mission, Vision and Strategy
MISSION, VISION AND STRATEGY MISSION Şişecam is a company that respects people and nature with its high quality and value added products. VISION To become the leader of its habitat covering the neighborhood countries in its activity fields. STRATEGY Rapid profitable growth through both inorganic&org
Slide 7: Group Corporate Structure
GROUP CORPORATE STRUCTURE İŞBANKASI ŞİŞECAM Glass Chemicals Flat Glass Glassware Packaging TR Glass Anadolu Paşabahçe Denizli Soda Cam Trakya OOO Ruscam Bulgaria Cam * Cam Cam * Sanayii * Elyaf Cam * EAD Anadolu Anadolu Trakya Trakya Cam Cam Paşabahçe Camiş Solvay Yenişehir Polatlı Eskişehir Bulgari
Slide 8: Presence in Global Glass Industry
PRESENCE IN GLOBAL GLASS INDUSTRY Market Shares (%)* Şişecam’s Position* Global Ranking* Eastern Russia & Turkey Europe World (000 tons) Turkey Europe Caucasia MENA Europe World Flat Glass 70 17** 5*** Flat Glass 1 1 N/A 1 Flat Glass 3 6 Glassware 67 22 11 Glassware rd World’s 3 Largest Glassware Pr
Slide 9: Top Peer Analysis - 2013 YE
TOP 10 PEER ANALYSIS - 2013 YE KPI Comparison of Top 10 Global Players in the glass sector Gross Margin(%) Net Margin(%) Guardian 0,0 NEG 17,6 Asahi 0,8 Owens Corning 18,2 Schott 1,4 Owens Illinois 19,1 St. Gobain 1,5 NSG 22,5 Owens Illinois 2,8 St. Gobain 23,9 Owens Corning 3,9 Şişecam 25,1 26,4 NE
Slide 10: Operating Territory - Turkey
OPERATING TERRITORY - TURKEY ŞİŞECAM PLANTS IN TURKEY Lüleburgaz İstanbul Kocaeli Eskişehir Polatlı Flat Glass Flat Glass Glass Fiber Paper –Cardboard Pack Glassware Automotive Glass Mould Glass Packaging Mirror Casting Paper Packaging Laminated Glass Glassware Power Plant
Slide 11: Operating Territory - International
OPERATING TERRITORY - INTERNATIONAL * OAO Ruscam Glass Packaging Holding has plants in 2 locations; namely in Ufa and in Kirishi 11
Slide 12: Şişecam Credit Ratings
ŞİŞECAM CREDIT RATINGS Rating/Outlook April 2013 May 2014 MOODY's Ba1/Stable Affirmed S&P BB+/Stable Affirmed 12
Slide 13: Prudent Risk Management Policy
PRUDENT RISK MANAGEMENT POLICY RISK FINANCIAL POLICY LEVERAGE Leverage with conservative NET DEBT/EBITDA levels LIQUIDITY Maintains sufficient liquidity cushion to meet short-term funding and finance equity portion of Capex FX POSITION Minimal FX position tied to shareholder’s equity level Not only
Slide 14: Financial Highlights - Key Indicators
Financial Highlights - Key Indicators ŞİŞECAM ($Million) 2009 2010 2011 2012 2013 9M 2013 9M 2014 Net Sales 2.357 2.806 2.980 2.971 3.133 2.289 2.355 EBITDA 446 678 758 539 643 429 499 Net Fin. Debt 606 254 315 543 765 790 796 Current Ratio 2,48 3,07 2,79 1,81 2,55 2,31 2,66 Liabilities/Assets 0,45
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS As a result of completion of major CAPEX programme undertaken, the EBITDA generation of the Group has increased. $ mio %16 increase in EBITDA on 4.000 3.133 YoY basis 2.806 2.980 2.984 3.000 2.357 2.289 2.355 2.000 678 759 643 1.000 446 539 429 499 0 2009 2010 2011 2012 2013 9M
Slide 16: Equal Segment Contribution to Sales and EBITDA
EQUAL SEGMENT CONTRIBUTION to SALES and EBITDA Q3 2013 SALES(%) Q3 2013 EBITDA(%) 25% 31% 27% 27% 17% 25% 23% 25% Flat Glass Glassware Glass Packaging Chemicals Flat Glass Glassware Glass Packaging Chemicals Q3 2014 SALES(%) Q3 2014 EBITDA(%) 30% 26% 32% 31% 22% 21% 22% 16% Flat Glass Glassware Glas
Slide 17: Şişecam's Growth - CAGR of 11% on TRY basis
ŞİŞECAM’s GROWTH - CAGR of %11 on TRY basis 6.0 TRY Bn 8 6.7 %20 increase on YOY basis in TRY terms 6.5 6.2 7 5.5 5.0 5.4 5.0 6 1,9 0,8 1,7 5 2.1 1,2 4.2 2.8 1,4 1,2 1,1 2.2 2.2 1,1 1 1,4 4 1,2 1,6 0,9 1,5 0,9 3 0,5 1,5 1,2 0,1 0,2 0,2 1,1 2 0,9 3,7 4,2 0,7 0,8 0,8 3,2 3,6 3,2 2,5 2,8 2,4 1 2,2 1,3
Slide 18: Sales
SALES As a result of growing foreign operations, sales generated from them have exceeded exports from Turkey. $ mio 3.133 3.500 2.980 2.971 2.806 3.000 2.351 636 2.317 572 615 2.500 525 2.289 357 2.000 839 484 880 804 664 797 751 1.500 622 540 1.000 1.528 1.552 1.658 1.484 1.243 1.183 1.113 500 0 20
Slide 19: Sales - Export Breakdown
SALES - EXPORT BREAKDOWN Consolidated Export Breakdown as of Q3 2014 5% 1% 1% 1% 6% 9% 50% Export Breakdown on Country basis 11% 7% 13% 6% 14% 48% 5% Europe Asia Middle East N. Africa N. America S. America C. Africa Oceania S. Asia 5% 4% 4% 4% 4% 4% Exports reached $630 Million as of Q3 2014 Italy
Slide 20: Financial Highlights - Profitability Margins
FINANCIAL HIGHLIGHTS - PROFITABILITY MARGINS(%) % 35 33 30 29 28 26 25 25 25 25 24 24 21 21 20 19 16 19 18 15 13 13 10 11 10 8 8 10 7 8 8 7 5 6 3 0 2009 2010 2011 2012 2013 9M 2013 9M 2014 Gross Margin EBITDA EBIT Net Income Significant improvement in Profitability Margins backed by stronger operati
Slide 21: Leverage Position - Net Debt & EBITDA
LEVERAGE POSITION - NET DEBT&EBITDA $ mio 900 1,6 800 1,4 796 700 790 1,2 600 765 606 1 500 0,8 543 400 0,6 300 0,4 200 254 315 100 0,2 0 0 2009 2010 2011 2012 2013 9M 2013 9M 2014 Net Debt Net Debt/EBITDA NET DEBT/ EBITDA: 1,36X 0,37X 0,42X 1,01X 1,19X 1,52*X 1,19*X Leverage Ratio has improved in Q
Slide 22: Investments & Capex Strategy
INVESTMENTS & CAPEX STRATEGY Heavy CAPEX Cycle is about to be completed Şişecam Group has followed a robust investment strategy in line with its growth strategy to maximize shareholder’s value Total investments realized in Q3 2014 is $ 400 Million Investments completed in 2013 and 2014 9M: -Acquisit
Slide 23: Capex
CAPEX $ mio Gradually decreasing CAPEX 1.000 35% 900 28% 29% 30% 800 700 25% 876 19% 600 17% 20% 616 500 18% 565 15% 400 12% 497 9% 400 300 10% 277 200 254 5% 100 0 0% 2009 2010 2011 2012 2013 9M 2013 9M 2014 CAPEX Capex/Sales(%) 23
Slide 24: Trakya Cam Sanayii A.S. Overview
TRAKYA CAM SANAYVIIi A.S. Overview
Slide 25: Summary
Summary The leader in Turkish flat glass industry... The pioneer flat glass company in its region Founded in 1978, Trakya Cam is the flagship company of Şişecam engaged in flat glass production 70% Shares Owned by Şişecam, 30% Shares Quoted at BIST (ISE Ticker: TRKCM.E) with a Market Capitalization
Slide 26: History and Development
History and Development 1978 1981 1991 1996 2000 2006 Lüleburgaz plant Trakya cam was resumed Lüleburgaz 2rd float line of A single float Mersin plant resumed production founded in production, Automotive Glass Mersin Plant resumed in Bulgaria and added Lüleburgaz, being the first in Plant resumed re
Slide 27: Vision & Strategy
Vision & Strategy VISION: Towithbeitsa fast growing global flat glass company strong brands and innovative solutions - Globalization (Organic & Inorganic) - Profitable and Fast Growth Beyond Regional Leadership - Wide Product Portfolio with Value Added Products STRATEGY: - Product Innovation and Adv
Slide 28: Corporate Structure
CORPORATE STRUCTURE TRAKYA CAM SANAYİİ A.Ş. Trakya Trakya Cam Trakya Trakya HNG Float TRSG Glass Limited TRSG Glass Yenişehir Cam Investment Polatlı Cam Investment Autoglass San. A.Ş. Holding B.V. B.V. Sanayii A.Ş. B.V. (JVA with HNG) Holding B.V. 85 % 70 % 85 % 100 % 50 % 70 % 100 % Trakya Glass Tr
Slide 29: Trakya Cam's Financial Highlights
Trakya Cam’s Financial Highlights $mn 2009 2010 2011 2012 2013 2013-3Q 2014-3Q Net Sales 574 698 751 577 782 536 670 EBITDA 123 204 216 108 141 97 137 Net Fin. Debt 68 -88 -105 -55 144 120 252 Current Ratio 3,39 5,72 4,84 4,45 2,86 3,00 2,21 Liabilities/Assets 29% 24% 24% 18% 40% 40% 43% Gross Margi
Slide 30: Operating Profile
WwW Trakya Cam Sanayii A.S. TRAKYA CAM SANAYVIIi A.S. Operating Profile 30
Slide 31: Flat Glass Industry Dynamics
Flat Glass Industry Dynamics Global Glass Consumption Breakdown Globally, flat glass comprises more than 30% of the total glass consumption. Total annual production capacity is 70 million tons with 397 float lines. Glassware 4 global producers, namely Saint Gobain, Glass 4% NSG Pilkington, Asahi and
Slide 32: Flat Glass Industry Dynamics (cont'd)
Flat Glass Industry Dynamics (cont’d) Flat glass is a product of great significance for the economy in terms of its industrial magnitude and Construction applications in a wide array of industries. Electronics Automotive The main uses of flat glass are in building windows, automotive, and home appli
Slide 33: Global Flat Glass Players
Global Flat Glass Players World's Flat Glass Capacity Asahi 9% NSG- Company Furnaces Capacity Pilkington 1 ASAHİ 35,5 5.900 9% Saint Gobain 2 NSG-PILKINGTON 37,8 6.242 8% 3 SAINT GOBAIN 30 5.186 Guardian 4 GUARDIAN 28 4.735 Other 7% 61% 5 TAIWAN GLASS IND. (*) 15 2.420 Taiwan Glass Ind. 4% 6 TRAKYA
Slide 34: Competitive Landscape
Competitive Landscape Represents Trakya Cam float lines Represents other float lines Iran 34
Slide 35: Operating Territory
Operating Territory RUSSIA TARGOVISHTE - 1 Float Line - 1 Float Line INDIA - Mirror Line LÜLEBURGAZ - 1 Float Line - Processed Line - 2 Float Lines JVA - Laminated Line - Mirror Line %50 Trakya Cam - Automotive Glass Line - Automotive Glass Line %50 HNG Glass LTD. - Coated Glass Line YENİŞEHİR POLAT
Slide 36: Major Investments
Major Investments Romania Autoglass Plant Balkans - Bulgaria 1 float line Russia 1 automotive glass plant 1 mirror plant • All the invesments shown above are carried out simultaneously. 36
Slide 37: Product Portfolio
Product Portfolio Architectural Glass Automotive Glass Home Appliances Glass ● Clear Float -Glass Windshields Cooking Glasses ● Heat Control Glass (Low-E Coated Movable Door Glasses Cooling Glasses Glass) Fixed, Encapsulated Fixed Side Commercial Refrigerator Glasses ● Heat and Solar Control Glass G
Slide 38: Production & Sales
Production & Sales Ww Trakya Cam Sanayii A.S. 120% 100% 80% 60% 40% 20% 0% Sales (ocousp) % 782 670 120% 1.108 1.404 1.282 2009 2010 2011 1.800 1.600 1.400 1.200 1.000 2012 2009 100% Sales (oootonnes) 1.104 1.171 992 1.119 80% 60% 40% 20% 0% 2013 2013-3Q 2014-3Q 2009 2010 2011 Production (oootownes)
Slide 39: Technology
Technology R&D Center established in 1979 (ISO 17025 Accreditation of laboratories) In-house research and development in areas of; glass compositions melting technologies raw materials coatings on glass sputter (vacuum) coatings for temperable and bendable low-e for architectural and autom
Slide 40: Technology – Flat Glass
Technology – Flat Glass Technological excellence and continous development is… … one of the main priorities of Trakya Cam Employs state-of-the-art technologies Excellent quality with regards to homogenization, surface properties and color All major equipment supplied from world class specifications
Slide 41: Technology - Automotive Glass
Technology - Automotive Glass Meets the technical capability and quality expectations of all OEM segments Technological diversity Technological know-how Press and sag bending for windshields Best available technology Acoustic, wire-heated windshields • Glasstech and Glassrobots Camera and ra
Slide 42: Contact Details
Contact Details www.trakyacam.com.tr İş Kuleleri Kule 3 Kat:13 34330 4.Levent – İstanbul Turkey Tel : (+90) 212 350 3707 Fax: (+90) 212 350 4707 •Reha Akçakaya •Tel : (+90) 212 350 3707 CHAIRMAN •Fax: (+90) 212 350 4707 •rakcak@sisecam.com •Beyza Genç •Tel : (+90) 212 350 3687 FINANCE •Fax: (+90) 21
Slide 43: Disclaimer
Disclaimer Following Exchange Rates have been used throughout the presentation: 2008 2009 2010 2011 2012 2013-3H 2012-3H 2013 2013-3Q 2014-3Q Period End 1,51 1,51 1,55 1,89 1,89 1,78 1,78 2,13 1,81 2,16 Period Average 1,30 1,55 1,50 1,67 1,79 1,90 1,92 2,13 This information in this document has be
Slide 44: Modern Strong Diversified
Modern Strong Diversified Integrated High Quality Dependable Progressive Monolithic 44
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