Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE

Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — FY2013 Earnings Presentation

33 slides from Turkiye Sise Ve Cam Fabrikalari A.s's earnings presentation, March 2014

  1. Slide 1: Investor Presentation 2013/YE

    Investor Presentation 2013/YE

  2. Slide 2: Content

    Content 1. Şişecam Group Overview  Executive Summary  History and Development  Presence in Global Glass Industry  Mission , Vision and Strategy  Investment Strategy  Shareholding Structure  Operating Territory  Financial Highlights  Prudent Risk Management Policies  Sales  Major Investmen

  3. Slide 3: 1. Şişecam Group Overview

    WS SisECAM 1.Sisecam Group Overview

  4. 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 and

  5. Slide 5: History

    History 1935 -1960  Glassware and container Establishment and production at Paşabahçe Single Plant Stage  Modest Growth 1960 - 1990  Expansion of product range Strong  State-of-the-art technologies Growth  Institutional R&D  “The World is our Market”  Reaching world-class volumes 1990’s Inves

  6. Slide 6: Presence in Global Glass Industry

    Presence in Global Glass Industry Market Shares (%)* Şişecam’s Position* Global Ranking* Eastern Russia & Europe World Turkey Europe World (000 tons) Turkey Europe Caucasia MENA Flat Glass 70 16** 5*** Flat Glass 1 1 N/A 1 Flat Glass 4 6 Glassware 65 25 12 Glassware 2 3 Glassware World’s 3rd Largest

  7. Slide 7: 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 be one of the leading companies in glass production and its other fields of activities. Strategy Rapid profitable growth through both inorganic & organi

  8. Slide 8: Group Corporate Structure

    Group Corporate Structure İŞBANKASI ŞİŞECAM Glass Flat Glass Glassware Chemicals Packaging TR Glass Anadolu Paşabahçe Denizli Soda Cam Trakya OOO Ruscam Bulgaria Cam * Cam Cam * Sanayii * Elyaf Cam * EAD Anadolu Anadolu Trakya Trakya Paşabahçe Camiş Solvay Cam Cam Yenişehir Polatlı Eskişehir Bulgari

  9. Slide 9: Operating Territory - Turkey

    Operating Territory - Turkey ŞİŞECAM PLANTS IN TURKEY Lüleburgaz İstanbul Kocaeli Eskişehir Polatlı  Flat Glass  Processed Glass  Glassware  Automotive Glass  Paper –Cardboard Pack.  Coated Glass  Glass Packaging  Flat Glass  Mirror  Glass Fiber  Paper Packaging Investments continue  Lam

  10. Slide 10: Operating Territory - International

    Operating Territory - International Flat Glass Glassware Glass Packaging Chemicals 10

  11. Slide 11: Financial Highlights

    Financial Highlights Group Consolidated Key Indicators $mn 2008 2009 2010 2011 2012 2013 Net Sales 2,885 2,357 2,806 2,980 2.971 3.133 EBITDA 664 446 678 758 539 643 Net Fin. Debt 866 606 254 315 543 765 Current Ratio 2.01 2.48 3.07 2.79 1.81 2.55 Liabilities/Assets 0.44 0.45 0.38 0.38 0.36 0.42 Sha

  12. Slide 12: Financial Highlights

    Financial Highlights Sales and EBITDA generation capacity of the group encourages Capex with conservative leverage levels $ mio 2.980 2.971 3.133 2.885 2.806 2.357 664 678 759 643 446 539 2008 2009 2010 2011 2012 2013 Net Sales EBITDA $ mio 1000 876 900 800 759 664 678 643 700 600 497 539 565 486 44

  13. Slide 13: Financial Highlights (cont’d)

    Financial Highlights (cont’d) Leverage Position $ mio 1000 1,60 900 866 1,36 1,40 800 765 1,30 1,20 700 1,33 1,01 606 1,00 600 543 500 0,80 400 315 0,60 300 254 0,40 200 0,41 0,40 0,20 100 0 - 2008 2009 2010 2011 2012 2013 Net Debt Net Debt/EBITDA Net Debt / EBITDA 1,30x 1,36x 0,41x 0,40x 1,01x 1.33

  14. Slide 14: Financial Highlights (cont’d)

    Financial Highlights (cont’d) Consolidated Sales(%) 2013 FY Consolidated EBITDA(%) 2013 FY 23% 29% 27% 28% 25% 24% 17% 27% Flat Glass Glassware Glass Packaging Chemicals Profitability Ratios(%) 35 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 14 Gross Margin (%) EBITDA (%) EBIT (%) Net Income (%)

  15. Slide 15: Prudent Risk Management Policies

    Prudent Risk Management Policies 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 Counter

  16. Slide 16: Sales

    Sales $ mio 3.133 2.879 2.980 2.971 3.500 2.806 3.000 2.351 636 525 572 615 616 2.500 357 839 2.000 816 797 880 804 751 1.500 1.000 1.447 1.528 1.552 1.658 1.243 1.484 500 0 2008 2009 2010 2011 2012 2013 Sales from Foreign Operations Exports Domestic Consolidated Export Breakdown 2013 FY Top 10 Expo

  17. Slide 17: Major Investments

    Major Investments $ mio 1000 30% 28% 900 25% 800 876 700 19% 20% 600 17% 17% 500 15% 565 400 486 12% 497 9% 10% 300 200 277 254 5% 100 0 0% 2008 2009 2010 2011 2012 2013 Capex Capex/Sales  Şişecam Group has always followed a robust investment strategy in line with the global economic outlook.  Inv

  18. Slide 18: 2. Operating Profile

    2.Operating Profile 18

  19. Slide 19: Business Segments - Flat Glass

    Business Segments - Flat Glass Industry Dynamics: Şişecam:  Trakya Cam produces high quality float glass, figured glass,  Half of the global production is in Asia-Pasific to include coated glass, laminated glass, mirror glass and automative mainly China and India. glass.  Flat Glass Sales by Prod

  20. Slide 20: Business Segments - Glass Packaging

    Business Segments - Glass Packaging Industry Dynamics: Şişecam:  60 million tons of glass packaging consumed annually .  Anadolu Cam is the lead brand name of the glass packaging  3 companies account for 40% of the global market where segment of Şişecam. Şişecam has apprx. 3% global market share.

  21. Slide 21: Business Segments - Glassware

    Business Segments - Glassware Industry Dynamics: Şişecam:  5% of global glass consumption is in the glassware industry  Paşabahçe Cam is the leading brand name of the glassware with a market value of USD 7 billion. USA and Europe segment , wholly owned by Şişecam. consumption growth slowed down ho

  22. Slide 22: Business Segments - Chemicals

    Business Segments - Chemicals Industry Dynamics: Şişecam:  Soda ash is mainly used in the glass industry, cleansing Soda Sanayii mainly produces soda ash chromium compounds. products and other chemical-related industries. Exports to 86 countries.  World soda ash demand is growing at an average an

  23. Slide 23: Appendix: 2013 FY Earnings Review

    Appendix: 2013 FY EARNINGS REVIEW

  24. Slide 24: Sales by Business Segments

    Sales by Business Segments SALES (TL Mio) 5.954 5.320 1.684 1.242 1.318 1.395 1.465 1.523 1.283 1.344 Şişecam (Cons.) Flat Glass Glassware Glass Packaging Chemicals 2012 2013  Sales across all segments have increased in TL terms in 2013 compared to previous year. 24

  25. Slide 25: Sales by Geography

    Sales by Geography (Mio TL) 3.500 3.150 3.000 2.762 2.500 2.000 1.595 1.451 1.500 1.209 1.107 1.000 500 0 2012 2013 Domestic Export Sales from Foreign Operations  The sales in Turkey have increased by 14% and the sales from foreign operations by %9 both mainly due to FX appreciation and due to stro

  26. Slide 26: Production

    Production (000 Tonnes) 3.683 3.612 1.968 1.825 Glass Soda Ash 2012 2013  Glass production in 2013 has been 4,2% lower than 2012 due to scheduled cold repairs in flat glass segment and relocation of a plant from İstanbul to Eskişehir as well as Pokrovsky’s pending production in glass packaging in R

  27. Slide 27: Profitability

    Profitability 1.223 EBITDA (TL Mio) 965 334 338 354 296 221 206 241 171 Şişecam (Cons.) Flat Glass Glassware Glass Packaging Chemicals 2012 2013 27

  28. Slide 28: Capex

    Capex Consolidated CAPEX (mio TL) 1.665 %65 1.008 2012 2013  Capex increased by %65 in 2013 in line with the investment plans.  2013 Capex includes the acquisition of 50% of HNG shares, 100 % of Fritz and increased stake at JV with St.Gobain in Egypt, approximately total of TL 160 million. 28

  29. Slide 29: Net Debt by Business Segment

    Net Debt by Business Segment NET DEBT ($ Mio) 127 36 106 17 357 448 280 33 2012 2013 Flat Glass Glass Packaging Chemicals Glassware  Debt levels of flat glass segment increased as a result of capex and M&A’s undertaken.  Debt levels of glass packaging segment decreased due to stronger cash generat

  30. Slide 30: Financials Highlights

    Financials Highlights $ mio Consolidated Net FX Position 400 171 218 200 41 31 0 -200 -223 -400 -600 -517 Currency Breakdown of Financial Liabilities 5% 4% 27% 21% 1% 3% 36% 44% 38% 21% 2012 2013 UAH RUR TL EUR USD  FX position managed by a diverse basket of currencies in line with the countries of

  31. Slide 31: Disclaimer

    Disclaimer Following USD/TL Exchange Rates have been used throughout the presentation: 2008 2009 2010 2011 2012 2013 Period End: 1.51 1.51 1.55 1.89 1.78 2.13 Period Average: 1.30 1.55 1.50 1.67 1.79 1.90 This information in this document has been obtained by T. Şişe ve Cam Fabrikaları A.Ş. (“Şişe

  32. Slide 32: Contact Details

    Contact Details T. Şişe ve Cam Fabrikaları İş Kuleleri, Kule - 3 34330 4.Levent - Istanbul Turkey Tel : (0212) 350 50 50 Fax : (0212) 350 40 40 İbrahim Babayiğit Aytaç Mutlugüller Başak Öge Emre İğdirsel Seda Akyüz Chief Financial Officer Deputy Corporate Finance & Corporate Finance & Corporate Fina

  33. Slide 33: Şişecam

    SiISECAM SISECAM

Şişecam — FY2013 Earnings Presentation on 6ix