Soda Sanayii A.S — Q1 2016 Earnings Presentation
34 slides from Soda Sanayii A.S's earnings presentation, 2016
Slide 1: 1Q 2016 Soda Sanayii Investor Presentation
1Q 2016 SODA SANAYİİ Investor Presentation
Slide 2: Contents
Contents 3 Soda Sanayii Overview 13 Chemicals Business Segment Overview 20 Şişecam Group Overview 2
Slide 3: Soda Sanayii Overview
SODA SANAYİİ OVERVİEW 29 3
Slide 4: 1Q 2016 Highlights
1Q 2016 Highlights Soda Lukavac plant started to utilize the capacity added (80K tons/year) in 2015 YE Mersin Plant’s capacity expansion (by 80K tons/year) investment continued in 1Q 2016 In line with the company’s strategy of increasing operational efficiency, modernization and energy saving invest
Slide 5: Key Financial Indicators
Key Financial Indicators TRY mn 1Q 2015 1Q 2016 Growth Revenue 402 476 19% Gross Profit 91 132 45% EBIT 80 106 33% EBITDA 102 131 29% Net Income 95 87 -9% Capex 19 29 52% Margins: Gross Profit 23% 28% 513 bps EBIT 20% 22% 240 bps EBITDA 25% 28% 216 bps Net Income 24% 18% -552 bps Capex/Sales 5% 6% 1
Slide 6: Soda Sanayii – Financial Results
Soda Sanayii – Financial Results Consolidated Financial Results* TRY mn 1.772 1.607 1.404 1.182 423 408 238 155 516 500 476 106 402 80 224 326 102 131 2012 2013 2014 2015 1Q2015 1Q2016 Net Sales EBIT EBITDA Gross Margin 21% 21% 25% 27% 23% 28% EBIT Margin 13% 17% 26%* 23%* 20% 22% EBITDA Margin 19%
Slide 7: Soda Sanayii – Financial Results
Soda Sanayii – Financial Results Soda Production Breakdown Soda Sanayii Consolidated Revenues Breakdown K Tons TRY mn 2.171 1.772 2.116 1.607 1.982 1.816 1.404 1.091 795 843 714 1.182 911 718 786 678 402 476 534 556 235 295 210 223 505 618 696 681 181 1.098 1.268 1.321 1.327 325 334 167 2012 2013 20
Slide 8: Soda Sanayii – Sales Breakdown
Soda Sanayii – Sales Breakdown Soda Sales by Geography (in volume terms)* Chromium Sales by Geography (in value terms) 1Q 2016 1Q 2016 14% 15% 29% 57% 85% Domestic Europe Rest Of the World Domestic Exports 8 *Excluding sales to the group companies
Slide 9: Soda Sanayii History
Soda Sanayii History 2014 Sale of Asmaş 2012 Merger of Mersin 252 MW Co-generation Power Plant 2008-2011 Acquisiton of 82.53% of Asmaş & 50% of Cromital 2005-2006 JV with Cromital & Acquisiton of Majority Shares in Soda Lukavac Plant 2000 IPO of Soda Sanayii 1997 JV with Solvay in Sodi Plant 1996 Es
Slide 10: Corporate Structure
Corporate Structure SODA SANAYİİ A.Ş. TURKEY NETHERLANDS CHINA ŞİŞECAM CHEM. Ş/C SHANGHAI INV. B.V. LTD. SODA PLANT KROMSAN PLANT BOSNIA & ITALY BULGARIA AUSTRIA HERZEGOVINA CO-GEN FACILITY Ş/C SODA Ş/C BULGARIA SOLVAY Ş/C CROMITAL S.P.A. OXYVIT LUKAVAC D.O.O. LTD. HOLDING A.G. 10
Slide 11: Vision & Strategy
Vision & Strategy VISION Strengthen current position in global soda ash market Target strong leadership in its all activities in global chromium chemicals market STRATEGY Maintain sustainable & profitable growth Strengthen the position among leading players Continue to expand geographically Creating
Slide 12: Competitive Advantage
Competitive Advantage COMPETITIVE ADVANTAGE Strong technological know-how Financial strength Market creation experience Wide distribution channels Consistent high quality products and services Experienced and qualified technical teams Own raw material supply for Soda Ash production Environmentally f
Slide 13: Chemicals Business Segment Overview
CHEMICALS BUSINESS SEGMENT OVERVİEW 29 13
Slide 14: Chemicals – Soda Sanayii
Chemicals – Soda Sanayii SODA’s Footprints Operations & Global Presence 2,2mn tons of aggregate Soda Chemicals production capacity in 3 different countries & Chromium Involved in the production of Soda Ash, Soda Chemicals and Chromium production capacity in Italy and in Turkey. Chemicals Presence in
Slide 15: Chemicals – Soda Sanayii
Chemicals – Soda Sanayii In 1Q 2016, Chemicals Segment accounted for 20% of Şişecam revenues Soda Sanayii, being the flagship chemicals company, contributed 18% of Şişecam Revenues with its non- group sales 1Q 2015 1Q 2016 SODA SANAYİİ SODA SANAYİİ 17% 18% 83% 82% OTHER ŞİŞECAM OTHER ŞİŞECAM COMPANI
Slide 16: Chemicals – Soda Sanayii
Chemicals – Soda Sanayii In 1Q 2016, Chemicals Segment accounted for 32% of Şişecam EBITDA Soda Sanayii contributed 31% of Şişecam’s EBITDA 1Q 2015 1Q 2016 SODA SANAYİİ SODA SANAYİİ 27% 31% 73% 69% OTHER ŞİŞECAM OTHER ŞİŞECAM COMPANİES COMPANİES 16
Slide 17: Global Soda Ash Production Capacities
Global Soda Ash Production Capacities CIS North Europe 3.2mn America 10.5mn tons tons Asia 12.42mn tons 31.5mn Middle tons East Africa 0.62mn tons 0.71mn tons South America 0.25mn tons 17
Slide 18: Global Soda Ash Demand
Global Soda Ash Demand Geographical Breakdown Industrial Breakdown 1% 4% 3% 6% 6% 5% 6% 19% 6% 8% 7% 11% 15% 46% 27% 12% 18% Others SE Asia CIS & Baltics Indian Subc. W. Europe Others Flat Glass Container Glass N. America NE Asia C.Europe Middle East STTP, Soap & Detergent Chemicals Other Glass Alum
Slide 19: Global Chromium Chemicals Demand
Global Chromium Chemicals Demand Geographical Breakdown of Basic Chromic Sulphate Geographical Breakdown of Chromic Acid 16% 24% 22% 1% 41% 12% 4% 7% 4% 11% 6% 24% 8% 20% China N. America S. America Africa & M. East Europe Turkey Asia Pacific China N. America S. America Africa & M. East Europe Turke
Slide 20: Şişecam Group Overview
ŞİŞECAM GROUP OVERVİEW 29 20
Slide 21: 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 India
Slide 22: Revenue & Cash Generation
Revenue & Cash Generation Significant Margin Improvement EBITDA Margins* 23,6% Flat Glass 19,2% 15,1% Glassware 14,7% 21,6% Glass packaging 17,8% 26,0% Chemicals 22,7% 1Q2016 Three-Year Average *EBITDA figures were adjusted according to the one-time non operational income/expenses 22
Slide 23: Segments’ Contribution to Revenue
Revenue & Cash Generation Segments’ Contribution to Revenue Balanced Contribution of the Segments in Conformity with Previous Years’ Results 1Q2016 1Q2015 5% 5% 20% 20% 33% 33% 18% 18% 24% 23% Flat Glass Glassware Glass Packaging Chemicals Other* 23 * Consists of energy trade of Şişecam
Slide 24: Segments’ Contribution to EBITDA
Revenue & Cash Generation Segments’ Contribution to EBITDA Balanced Contribution of the Segments in Conformity with Previous Years’ Results 1Q2016 1Q2015 6% 6% 29% 32% 29% 32% 18% 18% 14% 16% Flat Glass Glassware Glass packaging Chemicals Other* 24 * Consists of energy trade of Şişecam
Slide 25: Geographical Contribution to Revenue
Revenue & Cash Generation Geographical Contribution to Revenue Operations in Turkey Foreign Operations TRY 1,3 bn TRY 538 mn TRY 1,9 bn Revenue Revenue Revenue in 29% 1Q 2016 71% 32% 32% Russia Export Ukraine Georgia Domestic Europe 68% 68% 25
Slide 26: Exports from Turkey Top Countries
Revenue & Cash Generation Exports from Turkey Top 10 Countries Exports of USD 162 Million in 1Q 2016 to more than 150 countries Italy 14% Egypt 8% North & Europe Asia France 6% Middle America 48% 12% China 5% 6% Far East Saudi Arabia 4% Middle East 1% Bulgaria 4% Africa 16% Oceania Spain 4% 11% 2% U
Slide 27: Global Presence
Global Presence Strong Global Player with Competitive Profitability 32% 26% 25% % of Glass Sales in Total Revenues Ardagh 100% 22% 21% NEG 100% 20% 20% 24% 23% Owens Illinois 100% 17% 20% NSG 99% 18% Şişecam 74% 16% 16% Owens Corning 70% Asahi Glass 55% 12% 10% St Gobain 13% 9% 5% 5% 5% 4% 3% 0,4% 0
Slide 28: Operating Territories
Trakya Polatli Plant - Ankara Trakya Plant - Luleburgaz Otocam Plant - Lileburgaz Mersin Plant Be ‘Trakya Yenisehir Cam San. A.$. Yenisehir Plant - Bursa RUS AD. _RUS AD Past 9° ‘Trakya Cam San. AS. SiSECAM GLASSWARE OQ comorsrovers a Kirklareli Plant Pasabahce Cam San. ve Tic. A.S. Mersin Plant Esk
Slide 29: Şişecam History
Şişecam History 2014’s Onwards To Be Among The Top 3 Producers Globally 2000’s Regional leadership achieved Global Vision Higher market share regionally Reaching World glass volumes 1990’s Efficient Management Structure Investment Structuring Investments Abroad Expansion of product range 1960-1990 S
Slide 30: Group Corporate Structure
Group Corporate Structure 30 *Publicly Traded at BIST-100
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 Ba1 Stable S&P LT FCY Rating BB+ Negative Corporate Governance & Sustainability Corporate Governance Rating of Sisecam was revised to 9,35 from 9,28 on December 2015. As a Corporate Policy, Şişecam continues to strive for rea
Slide 33: Disclaimer
Disclaimer This information in this document has been obtained by Soda Sanayii A.Ş. from sources believed to be reliable, however, Soda Sanayii A.Ş. cannot guarantee the accuracy, completeness, or correctness of such information. This document has been issued for information purposes only. The finan
Slide 34: Contact Details
Soda Sanayii A.Ş. İş Kuleleri, Kule - 3 34330 4.Levent / Istanbul Turkey Tel : (+90) 212 350 50 50 Fax: (+90) 212 350 40 40 Contact Details Görkem Elverici, Chief Financial Officer gelverici@sisecam.com Tel: (+90) 212 350 3885 Başak Öge, Investor Relations Director boge@sisecam.com Tel: (+90) 212 35