Turkiye Sise ve Cam Fabrikalari A.S. · BIST:SISE
Turkiye Sise ve Cam Fabrikalari A.S — Şişecam — Q2 2021 Earnings Presentation
15 slides from Turkiye Sise ve Cam Fabrikalari A.S's earnings presentation, Aug 2, 2021
Slide 1: Earnings Release Q2 2021
EARNINGS RELEASE August 2, 2021 Şişecam (BIST-100: SISE) reported financial results for the second quarter ended June 30, 2021 M. Görkem Elverici, CEO of Şişecam, commented: “Second quarter of 2021 have brought some relief with positive news flow from a global macroeconomic standpoint and seeded hop
Slide 2: Consolidated Summary Financial Results for Q2'21 & H1'21
Consolidated Summary Financial Results for Q2’21 & H1’21 YoY QoQ YoY Summary Financials (TL mn) H1'20 H1'21 Q2'20 Q1'21 Q2'21 Change Change Change Revenue 8,834 12,777 45% 4,220 5,686 7,091 25% 68% Gross Profit 2,583 4,553 76% 1,086 1,936 2,617 35% 141% Gross Margin 29% 36% 640 bps 26% 34% 37% 286 b
Slide 3: Financial Highlights (Q2'21 vs Q2'20)
Financial Highlights (Q2’21 vs Q2’20)1 Revenue came in at TRY 7.1Bn, up by 68% YoY (EUR 704Mn, up by 27% YoY in EUR terms) Gross profit was at TRY 2.6Bn, up by 141% YoY with a margin of 37% Adjusted EBITDA came in at TRY 2.1Bn, up by 190% (EUR 207Mn, up by 127% YoY in EUR terms) with 29% margi
Slide 4: Segmental Analysis (cont'd)
Segmental Analysis (cont’d) Q2'21 Segmental Breakdown of Adjusted EBITDA ('000 TRY) Q1'20 Q2'20 Q1'21 Q2'21 QoQ YoY Architectural Glass 225,369 6,700 566,308 701,147 24% 10364% Auto Glass 45,773 -54,973 59,036 89,773 52% NM Glassware 141,007 25,575 228,888 289,446 26% 1032% Glass Packaging 309,165 3
Slide 5: Operational Highlights (Q2'21 vs Q2'20)
Operational Highlights (Q2’21 vs Q2’20) Flat Glass: Architectural Glass & Auto Glass o Total flat glass production at 719K tons, up by 88% YoY o 96% capacity utilization rate (actual output/effective capacity) o Architectural Glass Division: 74% YoY increase in sales volume o Auto Glass Business L
Slide 6: Architectural Glass: 28% share in Revenue, 34% share in EBITDA
Architectural Glass2: 28% share in Revenue | 34% share in EBITDA | “Largest Contribution to Topline & EBITDA Growth in Q2’21” Architectural Glass business line continued to benefit from strong demand dynamics in and outside Turkey. Capacity utilization rate in Turkey facilities recorded at 93%, whil
Slide 7: Auto Glass and Glass Packaging segment commentary
Auto Glass segment, thanks to its presence in different locations as a producer and its strategy to widen its client portfolio, has continued to diversify individual client risks. Better capacity utilization rates, attained through new project nominations and gradually increasing aftermarket sales’
Slide 8: Chemicals and Glassware segment commentary
Chemicals operations, further supported by TL depreciation, with its hard currency-denominated revenue share standing at 87% in Q2’21, recorded a topline growth of 38% YoY. Glassware: 15% share in Revenue | 14% share in EBITDA | | “Second Largest Contribution to EBITDA Growth in Q2’21” Glassware seg
Slide 9: Income from JVs, other income, FX gain and tax
TRY 66Mn income from participated JVs, up from TRY 2Mn in Q2’20, resulting from stronger operational performance of especially the glass production JV with St Gobain in Egypt and higher translation gains arising from larger local currency devaluation 350% YoY rise in other income & investing act
Slide 10: FX Position and net debt
72% of bank loans was in hard currencies (37% EUR, 35% USD) 4 TRY 181Mn coupon payment was made in March 2021 on USD 700Mn-Şişecam 2026 Eurobonds issued back in 2019 TRY 188Mn financial lease was recorded under financial liabilities Long-term liabilities corresponded to 70% of gross debt (73
Slide 11: One-off impacts excluded from financials
H1’20: +TRY 532 Mn o Q2’20: +TRY 197 Mn: TRY 197 Mn: Revaluation gain on fixed assets o Q1’20: +TRY 336 Mn: TRY 326 Mn: Revaluation gain on fixed income instruments incl. IFRS 9 impact TRY 10 Mn: Sale of a part of the land in Çayırova Excluding From Net income: H1’21: +TRY 19 Mn o Q2’21: +TRY 11
Slide 12: Operational Developments
Operational Developments Flat Glass Production o Şişecam’s 6th float glass line (240K tons/year production capacity) located at Turkey-Yenişehir Architectural Glass Facility was ignited on 2/04/2021 after the cold repair process (investment cost ~TRY 400Mn) Chemicals Production o Bosnia Soda Ash
Slide 13: Appendix: Sub-segmental, COGS and Opex breakdowns
Appendix Sub-Segmental Breakdown of Revenue Q1'20 Q2'20 Q1'21 Q2'21 Architectural 21% 20% 29% 28% Auto Glass & Encapsulation 12% 8% 13% 11% Glassware 16% 14% 14% 15% Glass Packaging 24% 31% 22% 26% Chemicals 22% 23% 20% 19% Soda Chemicals & Energy 14% 14% 13% 13% Chromium Chemicals & Oxyvit 5% 5% 4%
Slide 14: Regional Breakdown Adjusted EBITDA Margin
Regional Breakdown Adjusted EBITDA Margin Q1'20 Q2'20 Q1'21 Q2'21 Turkey 58% 23% 35% 36% Foreign Operations 18% 17% 19% 26% Russia, Ukraine and Georgia 10% 10% 7% 9% Europe 8% 8% 10% 15% Other 0% -1% 1% 2%
Slide 15: 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