Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — Investor Presentation (2016)
39 slides from Turkiye Sise Ve Cam Fabrikalari A.s's investor presentation, 2016
Slide 1: 2015 YE Investor Presentation
2015 YE Investor Presentation
Slide 2: Contents
Contents 3 Financial & Operational Overview 21 Company Overview 29 Segments’ Profile 2
Slide 3: Financial & Operational Overview
Financial & Operational Overview 2015 Highlights Key Financial Indicators Revenue & Cash Generation Leverage, Debt Profile & FX Risk Capex Analysis Operational Excellence Production Breakdown 3
Slide 4: 2015 Highlights
2015 Highlights Restructuring of Bulgaria operations S&P and Moody’s affirmed Şişecam’s credit ratings as BB+/Ba1 2nd Float line in Bulgaria has started production on Flat Glass as of Feb. 2015 Anadolu Cam sold 3,27% of Soda Sanayii shares on 5th March 2015 for TRY 80 Million Anadolu Cam acquired st
Slide 5: Key Financial Indicators
Key Financial Indicators TRY mn 2014 2015 Growth Revenue 6.876 7.415 8% One-off items Gross Profit 1.872 2.179 16% EBIT 677 1.026 52% 2014 Adjusted EBIT 671 856 27% EBITDA 1.365 1.764 29% TRY 5.4mn: Sale of machinery company Adjusted EBITDA 1.359 1.594 17% Asmaş A.Ş. Net Income 420 805 92% Adjusted
Slide 6: Revenue & Cash Generation
Revenue & Cash Generation Sustained Growth in Revenue with Preserved EBITDA Margin 7.415 TRY mn 6.876 5.954 5.320 4.979 4.206 1.764 1.267 1.223 1.365 1.016 966 2010 2011 2012 2013 2014 2015 Revenue EBITDA EBITDA Margin EBITDA Margin 24% 25% 18% 21% 20% 24% 6
Slide 7: Revenue & Cash Generation: Significant Margin Improvement
Revenue & Cash Generation Significant Margin Improvement 33% 29% 25% 29% 24% 27% 24% 26% 25% 21% 20% 18% 16% 13% 14% 11% 10% 8% 2010 2011 2012 2013 2014 2015 EBITDA Margin Gross Profit Margin EBIT Margin 7
Slide 8: Revenue & Cash Generation: Sustainable & Improving Margins
Revenue & Cash Generation Sustainable & Improving Margins EBITDA Margins 20% Flat Glass 20% 17% Glassware 13% 25% Glass packaging 22% 25% Chemicals 21% 2015 Three-Year Average 8
Slide 9: Segments' Contribution to Revenue
Revenue & Cash Generation Segments’ Contribution to Revenue Balanced Contribution of the Segments in Conformity with Previous Years’ Results 2015 2014 ** 4% 21% 20% 33% 34% 23% 21% 23% 22% Flat Glass Glassware Glass Packaging Chemicals Other * 9 * Consists of energy trade of Şişecam ** Share of reve
Slide 10: Segments' Contribution to EBITDA
Revenue & Cash Generation Segments’ Contribution to EBITDA Balanced Contribution of the Segments in Conformity with Previous Years’ Results 2015 2014 10% 2% 25% 32% 31% 28% 16% 12% 22% 21% Flat Glass Glassware Glass Packaging Chemicals Other * 10 * Consists of energy trade of Şişecam
Slide 11: Geographical Contribution to Revenue
Revenue & Cash Generation Geographical Contribution to Revenue TRY bn 7,4 6,7 6,5 6,8 6,2 5,9 2,1 5,5 5,4 1,9 0,8 5,0 1,9 1,7 1,2 1,4 1,2 1,1 1 1,1 1,2 1,6 2,0 1,6 2,8 0,9 1,5 2,2 1,5 1,2 0,2 0,5 4,2 0,9 3,7 3,6 0,2 0,8 3,2 3,1 3,3 3,3 2,5 2,8 0,2 1,2 1,4 0,8 2004 2005 2006 2007 2008 2009 2010 2011
Slide 12: Geographical Contribution to Revenue
Revenue & Cash Generation Geographical Contribution to Revenue Operations in Turkey Foreign Operations TL 5,3bn Revenue TL 2,1bn Revenue TL 7,4bn revenue in 71% 29% 2015 2015 38% 64% Russia Ukraine Export Georgia Domestic Avrupa 36% 62% 12
Slide 13: Exports from Turkey Top Countries
Revenue & Cash Generation Exports from Turkey Top 10 Countries Exports of USD 715mn in 2015 to more than 140 countries Italy 12% Egypt 9% Asia North Europe Bulgaria 5% America 13% 49% France 5% 6% Far East Middle UK 5% East 1% Africa 13% US 4% Oceania 13% 1% China 4% South Germany 4% America Spain 4
Slide 14: Leverage
Leverage Sustained Capital Base & Conservative Leverage Net/EBITDA came within the comfort zone of 1,25 Net Debt (TRY mn) 1.800 1,50 1.600 1,00 1.400 1.631 1.470 0,50 1.200 1.000 1.068 0,00 968 800 -0,50 600 596 -1,00 400 425 200 -1,50 2010 2011 2012 2013 2014 2015 Net Debt/EBITDA 0,42 0,47 1,00 1,3
Slide 15: Leverage: Solid Liquidity
Leverage Solid Liquidity 4.614 TRY mn 3.144 3.843 3.584 2.775 1.953 2.196 2.128 1.897 1.600 1.472 1.160 1.631 1.470 1.068 968 596 425 2010 2011 2012 2013 2014 2015 Net Debt Gross Debt Cash & Cash Equivalents 15
Slide 16: Debt Profile
Debt Profile TRY mn up to 1 years 1-2 years 2-3 years 3-4 years 4-5 years 5 years - Total % in Currency USD 182 115 42 35 1.489 26 1.889 41% EUR 690 532 540 251 96 51 2.158 47% RUR 347 48 84 20 20 3 523 11% UAH 19 5 5 5 5 1 41 1% TL 4 4 0% Total 1.241 678 661 289 1.613 133 4.614 % in Maturity 27% 15
Slide 17: FX Risk
FX Risk On Balance Sheet Benefiting from long FX position as most of its cash is held in hard currency. TRY mn 2010 2011 2012 2013 2014 2015 1.087 605 551 532 344 323 242 25 -6 16 30 27 104 -160 -185 -213 -235 USD EUR Other Currencies -874 17
Slide 18: Capex Analysis
Capex Analysis Decrease in Capex to Sales in Line with the Strategy 7.415 TRY mn 6.876 5.954 5.320 4.979 4.206 1.665 1.008 1.136 1.106 830 381 2010 2011 2012 2013 2014 2015 Revenues Capex Capex/Revenues Capex/Sales 9% 17% 19% 28% 17% 15% 18
Slide 19: Capex Analysis
Capex Analysis Strong EBITDA Levels Continue to Support Our Growth Strategy 1.764 TRY mn 1.665 1.365 1.267 1.223 1.136 1.106 1.016 1.008 966 830 381 2010 2011 2012 2013 2014 2015 EBITDA Capex EBITDA/Capex 2,67 1,53 0,96 0,73 1,20 1,60 19
Slide 20: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken SODA International K tons 39% Domestic 61% 4.154 4.235 3.437 3.757 3.683 3.612 2.693 GLASS 1.347 1.696 1.894 1.827 1.968 2.110 2.171 International 42% 2009 2010 2011 2012 2013 2014 2015 Glass Soda Chemicals Domestic 58% 20
Slide 21: Company Overview
Company Overview Executive Summary History Corporate Structure Global Presence & Peers Operating Territories Corporate Governance & Sustainability Risk Management Policy 21
Slide 22: 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 23: 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 24: Group Corporate Structure
Group Corporate Structure 24 *Publicly Traded at BIST-100
Slide 25: Global Presence
Global Presence Strong Global Player with Competitive Profitability 35% 29% 30% 25% 25% 25% 22% 21% % of Glass Sales in Total Revenues 20% 24% 24% 20% 18% 18% Asahi Glass 52% 18% Owens Illinois 100% 15% 16% 16% St Gobain 13% Owens Corning 69% 10% 12% Ardagh 60% 10% 10% NSG 99% 5% 11% NEG 100% 5% 5%
Slide 26: Operating Territories
Trakya Polatli Plant - Ankara Trakya Plant - Loleburgaz Otocam Plant - Loleburgaz Mersin Plant Trakya Yenisehir Cam San. A.S. Yenisehir Plant - Bursa ‘THE GLASSWARE GROUP Camis a] Sanayll AS. Tuzla Plant - Istanbul Trakya Cam San. A.S. Eskisehir Plant Denizli Cam San. ve Tic. A.S. Denizli Plant Kirk
Slide 27: 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 in December 2015. As a Corporate Policy, Şişecam continues to strive for rea
Slide 28: 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 29: Segments' Profile
Segments’ Profile Flat Glass Glassware Glass Packaging Chemicals 29
Slide 30: Flat Glass
Flat Glass Trakya Cam’s Footprints Operations & Global Presence 2.7mn tons of Total Basic Flat Glass Capacity Operations of Trakya Cam: Production of Flat glass, figured glass, coated with 11 operating lines glass, mirror glass, laminated glass, solar glass, home appliances, automotive & encapsulate
Slide 31: Flat Glass – Trakya Cam
Flat Glass – Trakya Cam TRY mn Consolidated Financial Results* K Tons Production Breakdown* 2.019 2.118 1.491 1.368 1.312 1.216 1.488 1.128 1.113 102 1.255 109 1.079 1.034 566 1.390 1.259 422 565 359 338 265 323 361 517 391 193 269 2010 2011 2012 2013 2014 2015 Domestic International 2010 2011 2012
Slide 32: Glassware
Glassware Ownership of Paşabahçe Operations & Global Presence 16% Operations of Şişecam’s Glassware Group Glassware: Production of EBRD automated, handmade, heat resistant, crystalware, paper and cardboard packaging (not consolidated in Paşabahçe) Sisecam Şişecam’s Glassware Group presence in 3 coun
Slide 33: Glassware
Glassware TRY mn Consolidated Financial Results* TRY mn Revenues Breakdown 1.616 1.728 1.728 1.616 1.446 1.446 1.315 1.348 1.315 1.348 1.147 1.147 517 656 744 847 505 581 477 616 505 434 415 441 269 288 206 209 293 670 798 732 790 872 881 171 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 20
Slide 34: Glass Packaging
Glass Packaging ANACM’s Footprints Operations & Global Presence 2.3mn tons of aggregate glass packaging production Şişecam’s lead brand name in the glass packaging segment with a capacity in 4 different countries with 10 production portfolio composed of glass containers for food, alcoholic and non-
Slide 35: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam TRY mn Consolidated Financial Results* K Tons Production Breakdown 1.523 1.555 1.552 1.459 1.857 1.285 1.611 1.723 1.703 1.744 1.764 1.132 878 951 1.001 889 930 899 269 733 772 856 814 814 865 295 354 323 242 328 392 2010 2011 2012 2013 2014 2015 316 312 341 388 264 Dom
Slide 36: Chemicals
Chemicals 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. Compounds Presence in 4 countries wi
Slide 37: Chemicals – Soda Sanayii
Chemicals – Soda Sanayii Soda Production Breakdown TRY mn Consolidated Financial Results* K Tons 1.772 2.116 2.171 1.898 1.982 1.607 1.702 1.816 1.404 689 714 795 843 1.182 566 718 872 660 397 475 288 1.136 1.209 1.098 1.268 1.321 1.327 153 250 243 516 500 2010 2011 2012 2013 2014 2015 132 224 224 3
Slide 38: 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 39: Contact Details
T. Şişe ve Cam Fabrikaları 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 :(+9