Turkiye Sise ve Cam Fabrikalari A.S. · BIST:SISE
Turkiye Sise ve Cam Fabrikalari A.S — Şişecam — Q2 2022 Earnings Presentation
16 slides from Turkiye Sise ve Cam Fabrikalari A.S's earnings presentation, Aug 2, 2022
Slide 1: Earnings Release Q2 2022
EARNINGS RELEASE August 2, 2022 Şişecam (BIST-100: SISE) reported financial results for the second quarter ended June 30, 2022 M. Görkem Elverici, CEO of Şişecam, commented: “As our environment evolves from VUCA* to BANI* in the midst of volatilities and rapid changes, the macroeconomic, geopolitica
Slide 2: Consolidated Summary Financial Results for Q2'22
Consolidated Summary Financial Results for Q2’22 YoY QoQ YoY Summary Financials (TL mn) H1'21 H1'22 Q2'21 Q1'22 Q2'22 Change Change Change Revenue 12,777 40,232 215% 7,091 16,974 23,258 37% 228% Gross Profit 4,553 15,642 244% 2,617 6,853 8,789 28% 236% Gross Margin 36% 39% 325 bps 37% 40% 38% -258 b
Slide 3: Financial Highlights (Q2'22 vs Q2'21)
Financial Highlights (Q2’22 vs Q2’21)1 Revenue came in at TRY 23.3Bn, up by 228% YoY (EUR 1.4Bn, up by 97% YoY in EUR terms) o Organic +188%, Inorganic +40% Gross profit was at TRY 8.8Bn, up by 236% YoY with a margin of 38% o Organic +178%, Inorganic +58% Adjusted EBITDA came in at TRY 6.3Bn,
Slide 4: Segmental Analysis (cont'd)
Segmental Analysis (cont’d) Q2'22 H1'22 Segmental Breakdown of Adjusted EBITDA (TRY Mn) 2020 Q1'21 Q2'21 H1'21 2021 Q1'22 Q2'22 H1'22 QoQ YoY YoY Architectural Glass 1,001 566 701 1,267 3,372 1,772 2,223 3,995 25% 217% 215% Auto Glass 145 59 90 149 103 77 159 236 108% 78% 59% Glassware 551 229 289 5
Slide 5: Operational Highlights (Q2'22 vs Q2'21)
Operational Highlights (Q2’22 vs Q2’21) 2 Flat Glass: Architectural Glass & Auto Glass o Flat glass production, up by 7%, at 771K tons o 93% capacity utilization rate (actual output/effective capacity) o Architectural Glass Division: up by 2% in sales volume o Auto Glass Business Line: up by 7% in
Slide 6: Architectural Glass
Architectural Glass: 27% share in Revenue | 34% share in EBITDA | “Second Largest Contribution to Topline Growth & Highest EBITDA Margin Generator in Q2’22” Architectural Glass business line was supported by the continued demand particularly for value added glasses. Glass output moved north by 7% Yo
Slide 7: Auto Glass and Glassware
move of German and French automakers. In light of these developments, auto component industry have processed the outlook for the main clientele. Given the cost increases, they also started re-negotiating on their backlog. Auto Glass business line, fully operational throughout the quarter, has also h
Slide 8: Chemicals business line
Sisecam Chemicals Resources LLC3, US-based natural soda ash operations, recorded 634K tons sales volume, up by 8% YoY. ExW natural soda ash prices continued to increase given the market dynamics. Region wise demand was healthy enough to ask for more soda ash volume. Furthermore, Sisecam Chemicals co
Slide 9: Adjusted EBITDA and Adjusted Net Income
Adjusted EBITDA recorded at TRY 6.4Bn with 27% Margin while Adjusted Net Income stood at TRY 5.4Bn Gross profit margin came in at 38%, up by +100bps YoY amidst local currency depreciation on top of the steep rise in raw and auxiliary material costs and energy prices thanks to a) larger scale of op
Slide 10: Cash flow, capex and cash position
o Glassware segment expenditures; cold repairs undertaken (one furnace in Bulgaria and one furnace in Turkey-Kırklareli facility) and mold expenses, corresponded to 17% of the total capex o Architectural Glass segment; greenfield Turkey-Tarsus facility investment, new automotive float line investmen
Slide 11: One-off items adjustments
H1’22: +TRY 735 Mn: TRY 735 Mn: Revaluation gain on fixed income instruments incl. IFRS 9 impact Q2’22: +TRY 364 Mn: TRY 364 Mn: Revaluation gain on fixed income instruments incl. IFRS 9 impact Q1’22: +TRY 371 Mn: TRY 371 Mn: Revaluation gain on fixed income instruments incl. IFRS 9 impact H
Slide 12: Operational Developments during and after Q2'22
Operational Developments during and after Q2’22 Chemicals o Synthetic Soda Ash Production Capacity Increase o With the completion of the 2nd phase of our Turkey-Mersin facility soda ash capacity increase project through the addition of a new sodium calcine line Şişecam’s synthetic soda ash annual
Slide 13: Fitch rating downgrade and new furnace investment
Following the downgrade of Turkey's sovereign rating from "B+" to "B" with "negative" outlook on 08/07/2022, International Credit Rating agency Fitch Ratings has downgraded the credit rating of Şişecam from "B+" to "B" and affirmed the outlook as "negative" With respect to a resolution taken by
Slide 14: Appendix: Sub-Segmental, COGS and Opex Breakdown
Appendix Sub-Segmental Breakdown of Revenue 2020 Q1'21 Q2'21 H1'21 2021 Q1'22 Q2'22 H1'22 Architectural 23% 29% 28% 28% 29% 29% 27% 28% Auto Glass & Encapsulation 11% 13% 11% 12% 10% 7% 7% 7% Glassware 15% 14% 15% 15% 15% 11% 11% 11% Glass Packaging 26% 22% 26% 24% 23% 16% 18% 17% Chemicals 20% 20%
Slide 15: Regional Breakdown Adjusted EBITDA Margin
Regional Breakdown Adjusted EBITDA Margin 2020 Q1'21 Q2'21 H1'21 2021 Q1'22 Q2'22 H1'22 Turkey 44% 35% 36% 36% 37% 37% 25% 35% Foreign Operations 19% 19% 26% 23% 19% 19% 15% 20% Russia, Ukraine and Georgia* 11% 7% 9% 8% 9% 5% 4% 5% Europe* 8% 10% 15% 13% 9% 7% 5% 8% US* 7% 5% 6% Other* 0% 1% 2% 1% 1
Slide 16: Disclaimer
Disclaimer “Certain information set forth in this document contains “forward-looking information” relating to the Company that are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. These forward-looking st