Slide 1: 2018 Results Investor Presentation
2018 Results Investor Presentation
Slide 2: Contents
Contents 3 Financial & Operational Overview 18 Company Overview 27 Segments’ Profile 36 Appendix 2
Slide 3: Financial & Operational Overview
Financial & Operational Overview Key Financial Highlights Revenue & Profitability Leverage, Debt Structure& FX Position Capex Operational Excellence Production Breakdown 3
Slide 4: Financial Highlights
Financial Highlights Key Financial Indicators: 2018 Financial Highlights Y-o-Y Comparison TRY mn Revenue 37% Gross Profit 42% Revenue Gross Profit EBITDA Gross Margin 33% 4.890 One-off 15.550 5.157 EBITDA 57% 11.318 3.630 855 Adjusted EBITDA 44% 3.120 One-off adjustments in 2018 TRY 855 Million in 2
Slide 5: Financial Highlights
Financial Highlights Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 31% 28% 24% 25% 20% 25% 26% 20% 21% 22% 15.550 11.318 8.569 6.876 7.415 4.890 3.120 1.365 1.764 2.120 2014 2015 2016 2017 2018 Revenue Growth (yoy) 15% 8% 16% 32% 37% Revenue EBITDA EBITDA Margin Adjusted EBITDA Mar
Slide 6: Financial Highlights - Revenue
Financial Highlights - Revenue Segments’ Contribution to Revenue 2018 TRY mn 2017 3% 4% 21% 22% 38% 37% 21% 21% 17% 16% Flat Glass Glassware Glass Packaging Chemicals Other* 6 * Consists of energy trade of Şişecam
Slide 7: Financial Highlights - EBITDA
Financial Highlights - EBITDA Segments’ Contribution to EBITDA** 2018 TRY mn 2017 2% 3% 31% 29% 37% 39% 19% 19% 11% 10% Flat Glass Glassware Glass packaging Chemicals Other* *Consists of energy trade of Şişecam 7 ** Excluding one-off incomes
Slide 8: Revenue & Cash Generation
Revenue & Cash Generation Revenue by Geography TRY bn 2017 2018 15,6 0,1% 2% 23% 22% 23% 23% 11,3 39% 8,6 7,4 37% 6,9 22% 31% 14% 28% 28% 23% 14% 23% 23% 23% 39% 49% 46% 40% 40% 49% 39% Europe Russia & Georgia & Ukraine Domestic Export Other 2014 2015 2016 2017 2018 Domestic Export from Turkey Sales
Slide 9: Revenue & Cash Generation
Revenue & Cash Generation Exports from Turkey Top 10 Countries Exports of USD 757 Million in 2018 to 150 countries Italy 14% North & Asia Egypt 7% Middle Europe America 11% France 4% 50% 7% USA 4% Far East Middle Bulgaria 4% East 1% Africa 14% Germany 4% Oceania 10% Lebanon 4% 1% South United Kingdo
Slide 10: Financial Highlights - Leverage
Financial Highlights - Leverage Sustained Capital Base & Conservative Leverage Net Debt / EBITDA continues to remain within the comfort zone of 1,25 Net Debt (TRY mn)* 2.239* 1.489 * 1.440 1.068 580 2014 2015 2016 2017 2018 Net Debt/EBITDA 0,78 0,82 0,70 0,19 0,46 Net Debt/Equity 0,15 0,15 0,13 0,04
Slide 11: Financial Highlights - Liquidity
Financial Highlights - Liquidity Solid Liquidity TRY mn 8.009 5.897 5.780 2.606* 4.614 3.843 1.085* 1.878* 29* 3.164 3.144 3.206 2.775 3.439 2.239 1.068 1.440 1.489 580 2014 2015 2016 2017 2018 Net Debt Cash and cash equivalents Marketable Securities Gross Debt (*) Marketable securities (Eurobond in
Slide 12: Debt Profile
Debt Profile TRY mn up to 1 years 1-5 years 5 years - Total % in Currency USD 78 2.750 12 2.840 35% EUR 2.191 967 51 3.209 40% RUR 827 497 1.323 17% UAH 95 11 106 1% EGP 46 46 1% TL 439 46 484 6% Total 3.675 4.333 8.009 100% % in Maturity 46% 54% Short Term Long Term Less volatility in interest rate
Slide 13: Free Cash Flow
Free Cash Flow Net Change in Cash Position in 2018 TRY mn TRY mn FCF -737 Sale of property, plant and equipment 83 Employee Termination Benefits -46 Net Change in Financial Liabilities -278 Cash payments regarding acquisitions -467 Foreign Currency Translation Effect 1.132 Dividend received 119 Othe
Slide 14: FX Position
FX Position On Balance Sheet Benefiting from USD 452 million net long FX position in 2018 as most of cash is held in hard currencies TRY mn 2014 2015 2016 2017 2018 1.540 1.522 1.087 788 678 551 323 27 104 56 73 176 -378 -747 -874 USD EUR Other Currencies 14
Slide 15: Capex Analysis
Capex Analysis Investments continue diligently TRY mn 17% 15% 14% 14% 8% 15.550 11.318 8.569 6.876 7.415 4.890 3.120 1.764 2.120 2.221 1.365 1.136 1.106 1.158 897 2014 2015 2016 2017 2018 Revenue EBITDA Capex Capex/Revenues EBITDA/Capex 1,20 1,60 1,83 3,48 2,20 15
Slide 16: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken K tons 40% SODA 4.791 4.947 60% 4.464 4.045 4.127 2.278 2.343 2.361 Domestic International* 2.116 2.170 43% GLASS 57% 2014 2015 2016 2017 2018 Glass Soda Chemicals Domestic International* *Production numbers are adjusted with
Slide 17: Company Overview
Company Overview Executive Summary History Corporate Structure Global Presence & Peers Operating Territories Corporate Governance Sustainability Risk Management Policies 17
Slide 18: 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 9th Soda Ash 4th Chromic Acid Producer Producer Packaging in Basic Producer Producer Globally G
Slide 19: 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 20: Corporate Structure
Corporate Structure İŞBANK ŞİŞECAM Flat Glass Glass Packaging Glassware Chemicals Other Trakya Cam Paşabahçe Camiş Soda Camiş Anadolu Denizli Şişecam Enerji Sanayii* Cam Sanayii Madencilik Sanayii* Elektrik1 Cam Sanayii* Cam Sanayii* Trakya Paşabahçe Şişecam Trakya Polatlı Camiş Egypt Şişecam Elyaf
Slide 21: Global Presence
Global Presence Strong Global Player with Competitive Profitability 33% 31% 27% 27% 26% 23% Glass Revenues' Share in Total Owens Illinois 100% 19% NSG 100% Şişecam 74% 17% 15% 16% Asahi Glass 50% 15% Ardagh 36% 10% 11% St Gobain 14% 5% Asahi Glass Owens Illinois St Gobain Owens Corning Ardagh NSG Şi
Slide 22: Operating Territories
Operating Territories PRODUCTION PLANTS IN TURKEY ŞİŞECAM FLAT GLASS ŞİŞECAM GLASSWARE ŞİŞECAM GLASS PACKAGING ŞİŞECAM CHEMICALS Trakya Cam Sanayii A.Ş. Paşabahçe Cam San. Ve Tic. A.Ş. Anadolu Cam Sanayi A.Ş. Soda Sanayi A.Ş. Trakya Plant - Kırklareli Kırklareli Plant Mersin Plant Soda Plant - Mersi
Slide 23: 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 24: Credit & Corporate Governance Ratings
Credit & Corporate Governance Ratings Credit Ratings MOODY’s LT FCY Rating Ba2 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 hig
Slide 25: 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 26: Sustainability
Sustainability Şişecam’s Sustainability Targets & Planned Actions 26
Slide 27: Segments' Profile
Segments’ Profile Flat Glass Glassware Glass Packaging Chemicals 27
Slide 28: Flat Glass
Flat Glass Shareholder Structure Operations of Flat Glass in 10 countries with 3,2 mn tons/year installed capacity Free Float; Bulgaria 2 1 31% Trakya Glass Bulgaria EAD Şişecam; 1 1 1 Float, & Auto Glass, Mirror & Processed 69% Slovakia Hungary Romania Laminated Line Flat Glass Market Outlook Richa
Slide 29: Flat Glass – Trakya Cam
Flat Glass – Trakya Cam Excluding; Consolidated Financial Results1 2014: TRY 129,7 Million TRY 129,7 mn one-off gain from the sale of Paşabahçe and SODA shares 2016: TRY 352 Million TRY 284 mn one-off gain from the sale of SODA shares, TRY 68 mn revaluation gain on fixed income securities TRY mn 201
Slide 30: Glassware
Glassware Ownership of Paşabahçe Contribution to Group Revenue Paşabahçe, operational in 4 regions, is Şişecam Group’s leading brand name in the 2018 glassware segment with a portfolio focusing on production of automated, Islamic Glassware; handmade, heat resistant, crystalware, paper and packaging
Slide 31: Glassware
Glassware Consolidated Financial Results Geographical Revenues Breakdown TRY mn TRY mn 2.529 17% 18% 13% 14% 15% 1.956 1.728 1.803 2.529 1.616 1.644 1.803 1.956 1.616 1.728 847 1.040 1.238 872 744 881 763 718 885 209 293 260 288 461 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Revenue EBITDA EB
Slide 32: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Operations & Global Presence SHAREHOLDERS Free Float Anadolu Cam, operational in 4 regions with 2,5mn tons/year installed capacity, is 23% Şişecam Group’s leading brand name in the glass packaging segment with a Şişecam portfolio focusing on food, alcoholic and non-alco
Slide 33: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Excluding: Consolidated Financial Results - 2014: TRY 120mn (Sale of Paşabahçe & Soda shares) 3.231 - 2015: TRY 73mn (Sale of Soda shares) - 2016: TRY 342mn (Sale of Soda shares) + TRY 27mn (Revaluation gain on Eurobond investments) TRY mn - 2017: TRY 32mn (Sale of OMCO
Slide 34: Chemicals – Soda Sanayii
Chemicals – Soda Sanayii SHAREHOLDERS Operations & Global Presence Free Float Soda Sanayii, being the flagship company of Şişecam Chemicals, is a leading soda & IFC 39% Şişecam and chromium chemicals producer operational in 5 different facilities incl. Sodi JV 61% and exporting products to +85 count
Slide 35: Chemicals - Soda Sanayii
Chemicals - Soda Sanayii Consolidated Financial Results Excluding: - 2014: TRY 92,7mn (subsidy/share sale; Dost Gaz & Asmaş & Paşabahçe shares) TRY mn - 2015: TRY 0,4mn (Denizli Cam shares sale) 3.430 - 2016: TRY 13,5mn (Revaluation gain on Eurobond investments) - 2017: TRY 43mn (Revaluation gain on
Slide 36: Appendix
Appendix 36
Slide 37: Summary Financials
Summary Financials SUMMARY BALANCE SHEET (Million TL) 2017 2018 Change Total Assets 21.307 27.768 30% Cash & Cash Equivalents 3.439 3.164 -8% Financial Assets & Derivatives 1.881 2.606 39% Trade Receivables 2.338 3.235 38% Inventories 2.141 3.007 40% Equity-Pickups 712 627 -12% Property, plant and e
Slide 38: Summary Financials
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 2017 2018 Change Revenue 11.318 15.550 37% Cost of Goods Sold -7.688 -10.393 35% Gross Profit 3.630 5.157 42% General and administrative -725 -884 22% Sales and marketing -1.370 -1.863 36% Research and development -57 -75 32% Other operating i
Slide 39: Disclaimer
Disclaimer This information in this document has been obtained by T. Şişe ve Cam Fabrikaları A.Ş. (“Şişecam” from sources believed to be reliable , however, Şişecam cannot guarantee the accuracy , completeness, or correctness of such information. This document has been issued for information purpose
Slide 40: Contact Details
T. Şişe ve Cam Fabrikaları Şişecam Genel Merkezi D-100 Karayolu Cad. No:44A 34947 Tuzla/İstanbul Turkey Tel : (+90) 850 206 32 62 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 bog