Slide 1: 2017 H1 Results Investor Presentation
2017 H1 Results Investor Presentation
Slide 2: Contents
Contents 3 Financial & Operational Overview 19 Company Overview 28 Segments’ Profile 37 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: Key Financial Indicators
Key Financial Indicators 2017 H1 Financial Highlights TRY mn Y-o-Y Comparison Revenue Gross Profit EBITDA 5.344 1.490 Revenue 34% 1.651 119 4.002 Gross Profit 36% 1.212 878 1.371 Gross Margin 31% EBITDA 70% Adjusted EBITDA 56% 1H 2016 1H 2017 1H 2016 1H 2017 1H 2016 1H 2017 One-off adjustments: TRY
Slide 5: Key Financial Indicators
Key Financial Indicators Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 24% 25% 28% 18% 21% 20% 22% 34% 14% 12% 15% 8.422 13% 7% 8% 7.415 6.876 5.954 5.320 5.344 4.002 1.764 2.120 1.223 1.365 1.490 966 878 2012 2013 2014 2015 2016 1H 2016 1H 2017 Revenue EBITDA Revenue Growth Y-o-Y
Slide 6: Financial Highlights - Revenue
Financial Highlights - Revenue Segments’ Contribution to Revenue H1 2016 H1 2017 TRY mn 5.344 +272 +6 +281 +688 +107 5% 3% 19% 20% 4.002 33% 38% 21% 21% 22% 18% Flat Glass Glassware Glass Packaging Chemicals Other* H1 2016 Flat Glass Glassware Glass Chemicals Other* H1 2017 Packaging 6 * Consists of
Slide 7: Financial Highlights - EBITDA
Financial Highlights - EBITDA Segments’ Contribution to EBITDA** H1 2016 H1 2017 TRY mn +112 +1 1.371 6% 6% +84 -37 +228 +32 30% 36% 878 33% 29% 12% 10% 19% 19% Flat Glass Glassware Glass packaging Chemicals Other* H1 2016 Flat Glass Glassware Glass Chemicals Other* Elimination H1 2017 Packaging *Co
Slide 8: Revenue & Cash Generation
Revenue & Cash Generation Revenue by Geography TRY bn 1H 2016 1H 2017 8,3 7,3 6,9 22% 20% 23% 31% 22% 6,0 28% 5,3 28% 5,3 28% 23% 23% 23% 23% 4,0 35% 10% 24% 24% 30% 23% 13% 22% 49% 49% 46% 53% 47% 49% 42% 48% 42% 2012 2013 2014 2015 2016 H1 2016 H1 2017 Domestic Export from Turkey Sales from Foreig
Slide 9: Revenue & Cash Generation
Revenue & Cash Generation Exports from Turkey Top 10 Countries Exports of USD 376 Million in 2017 H1 to 146 countries Italy 14% Egypt 6% North & Middle Europe Asia China 5% America 16% 48% USA 4% 6% Middle Far East UK 4% East 1% Africa 14% France 4% Oceania 10% 1% Bulgaria 4% South Lebanon 4% Americ
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) 1.631 1.440 1.489 * 1.326 1.068 968 2012 2013 2014 2015 2016 2Q 2017 Net Debt/EBITDA 1,00 1,33 0,78 0,82 0,70 0,49 Net Debt/Equity 0,
Slide 11: Financial Highlights - Liquidity
Financial Highlights - Liquidity Solid Liquidity 5.780 5.830 TRY mn 4.614 1.085* 1.259* 29* 3.584 3.843 3.144 3.206 3.246 2.128 1.953 2.775 1.160 1.631 1.440 1.489 1.326 968 1.068 2012 2013 2014 2015 2016 2Q 2017 Net Debt Cash & Cash Equ. Marketable Securities Gross Debt (*) Including marketable sec
Slide 12: Debt Profile
Debt Profile TRY mn up to 1 years 1-5 years 5 years - Total % in Currency USD 178 1.905 2 2.085 36% EUR* 1.368 1.102 94 2.564 44% RUR* 435 352 0 788 14% UAH 37 17 54 1% TL 127 194 19 340 6% Total 2.144 3.686 5.830 % in Maturity 37% 63% Short Term Long Term Less volatility in interest rate structure
Slide 13: Free Cash Flow
Free Cash Flow TRY mn 2012 2013 2014 2015 2016 1H 2016 1H 2017 Net Profit 332 454 420 805 1.040 391 813 Non-cash 678 573 946 706 716 564 579 Change in w/c -15 -209 -218 -313 -491 -688 -314 Interest received,net -49 -94 -96 -151 -65 -47 -36 Dividend paid -57 -87 -91 -111 -341 -341 -374 Taxes paid -12
Slide 14: Free Cash Flow
Free Cash Flow TRY mn TRY mn Net Cash Position in 2017 H1 FCF Generation in 2017 H1 FCF 189 114 +579 Sale of property, plant and equipment 32 38 Financial Instruments* -206 -187 Employee Termination Benefits -21 -26 -314 -36 813 Net Change in Financial Liabilities 176 -169 Group/Subsidiary Share Sal
Slide 15: FX Position
FX Position On Balance Sheet Benefiting from net long FX position as most of the cash is held in hard currencies TRY mn 2012 2013 2014 2015 2016 2016 H1 2017 H1 1.335 1.087 788 764 532 551 242 323 16 30 27 104 56 29 56 -160 -185 -559 -747 -720 -874 USD EUR Other Currencies 15
Slide 16: Capex Analysis
Capex Analysis Capex/Revenue Sustained TRY mn 28% 8.422 7.415 6.876 5.954 17% 5.320 19% 15% 14% 14% 5.344 4.002 7% 1.665 1.158 1.008 1.136 1.106 578 398 2012 2013 2014 2015 2016 1H2016 1H2017 Revenues Capex Capex/Revenues 16
Slide 17: Capex Analysis
Capex Analysis Strong EBITDA Generation Continue to Support Our Growth Strategy TRY mn 3,89 3,75 1,60 1,83 1,82 1,69 1,52 1,20 0,96 2.120 0,73 1.764 1.490 1.2231.665 1.365 966 892 878 1.136 1.106 1.158 726 1.008 460 528 578 253 187 398 2012 2013 2014 2015 2016 1Q2016 1Q2017 1H2015 1H2016 1H2017 EBIT
Slide 18: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken 41% SODA K tons 59% 4.572 4.154 4.235 Domestic International 3.683 3.612 2.170 2.278 2.358 1.982 2.116 2.094 43% 1.816 GLASS 1.111 1.169 57% 2012 2013 2014 2015 2016 1H2016 1H2017 Domestic International Glass Soda Chemicals 1
Slide 19: Company Overview
Company Overview Executive Summary History Corporate Structure Global Presence & Peers Operating Territories Corporate Governance Sustainability Risk Management Policies 19
Slide 20: Şişecam at a Glance
Şişecam at a Glance ~$3 Billion 4,6 Million Tons 2,3 Million Tons 21.715 Presence in 13 Revenue Glass Production Soda Production Employees Countries 5th Flat Glass 3rd Glassware 5th Glass Leader Producer 10th Soda Ash 4th Chromic Acid Producer Producer Packaging in Basic Producer Producer Globally G
Slide 21: 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 22: Corporate Structure
Corporate Structure * Publicly traded at BIST 22
Slide 23: Global Presence
Global Presence Strong Global Player with Competitive Profitability Glass Revenues' Share in Total 31% NEG 100% 27% 26% 27% 25% Owens Illinois 100% 24% 28% NSG 100% 20% 18% 22% Şişecam 77% 19% 17% 18% 16% Owens Corning 32% 10% 11% Asahi Glass 50% Ardagh 40% St Gobain 26% Asahi Glass Owens Illinois S
Slide 24: Operating Territories
Operating Territories ‘Trakya Glass Rus ‘Automotive Glass Alliance Rus Posuda Ruscam - Gorokhovets Ruscam - Pokrovsky Ruscam - Uta Ruscam — Kishi Ruscam ~ Kuban SISECAM GROUP PRODUCTION PLANTS IN TURKEY ee [S'SECAM GLASSWARE TIMI SISECAM GLASS PACKAGING J SISECAMGEMICALS I ict a aes | ee « . Trakya
Slide 25: 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 26: 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 Corporate Governance Rating of Sisecam was revised to 9,44 from 9,35 in December 2016. As a Corporate Policy, Şişecam continues to strive for reaching the highest
Slide 27: Sustainability
Sustainability ope mat mn omen op nah wns Ya 0 ws tay em new nc ast a 4 “Green Point Industry Award” for Glass and Glass Again ‘Ppmcar Croum vee worthy he Gree Pant ray ‘tr, gated by CERO Feat ke ht sy, De citegany of "Ervermert heed SoridRapanabty Pacts” ‘Seip net sa ns on re a ‘vocan rae cape mes
Slide 28: Segments’ Profile
Segments’ Profile Flat Glass Glassware Glass Packaging Chemicals 28
Slide 29: Flat Glass
Flat Glass Operations & Global Presence SHAREHOLDERS Free Float; Bulgaria 2 1 31% Trakya Glass Bulgaria EAD 1 1 1 Float, & Auto Glass, Mirror & Processed Sisecam; 69% Slovakia Hungary Romania Laminated Line 2016 Market Shares Richard Fritz Richard Fritz Glasscorp 470K tons / year 1 1 Incapsulation I
Slide 30: Flat Glass – Trakya Cam
Flat Glass – Trakya Cam Consolidated Financial Results1 Excluding; 2017 H1: TRY 13 mn revaluation gain on fixed income securities TRY mn 2016: TRY 284mn one-off gain from the sale of SODA shares, TRY 3,8mn from building sale, TRY 68 mn revaluation gain on fixed income securities 2014:TRY 129,7mn one
Slide 31: Glassware
Glassware Ownership of Paşabahçe Operations & Global Presence Islamic Development Bank; 0,55% Operations of Şişecam’s Glassware Group: EBRD; 15% Production of automated, handmade, heat resistant, crystalware, paper and cardboard packaging Şişecam’s Glassware Group presence in 3 countries with its pr
Slide 32: Glassware
Glassware Consolidated Financial Results Revenues Breakdown TRY mn TRY mn 17% 1.803 1.728 1.616 1040 14% 14% 14% 847 1.446 13% 13% 1.803 1.348 744 1.728 12% 1.616 656 1.446 616 1.348 985 884 985 646 884 501 872 881 790 763 732 383 339 171 206 209 293 260 109 141 2012 2013 2014 2015 2016 1H2016 1H201
Slide 33: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Operations & Global Presence SHAREHOLDERS 23% F. Float Anadolu Cam, operational in 4 regions with 2,3mn tons/year installed capacity, is Şişecam Group’s leading brand name in the glass packaging segment with a Şişecam portfolio focusing on food, alcoholic and non-alcoho
Slide 34: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Excluding:; Consolidated Financial Results - 2013: TRY 100mn (Topkapı land) 70% - 2014: TRY 120mn (Paşabahçe & Soda shares) 62% - 2015: TRY 73mn (Soda shares) TRY mn 1.767 - 2016: TRY 342mn (Soda shares) + TRY 27mn 60% 1.555 1.552 (Revaluation gain on Eurobond investmen
Slide 35: Chemicals – Soda Sanayii
Chemicals – Soda Sanayii SHAREHOLDERS Operations & Global Presence 39% F. Float incl. IFC stake Soda Sanayii, being the flagships chemical company of Şişecam Chemicals, is a Şişecam leading soda and chromium chemicals producer operational in 5 different facilities 61% incl. Sodi JV and exporting pro
Slide 36: Chemicals - Soda Sanayii
Chemicals - Soda Sanayii Excluding: Consolidated Financial Results - 2014: TRY 92,7mn (subsidy/share sale; Dost Gaz & Asmaş & Paşabahçe shares) EBITDA Margins TRY mn - 2015: TRY 0,4mn (Denizli Cam shares sale) 1.983 - 2016: TRY 13,5mn (revaluation gain on 32% 32% 32% 1.772 Eurobond investments) 28%
Slide 37: Appendix
Appendix 37
Slide 38: Summary Financials
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 1H 2016 1H 2017 Change Revenue 4.002 5.344 34% Cost of Goods Sold -2.790 -3.693 32% Gross Profit 1.212 1.651 36% Sales and marketing -402 -536 -22% Research and development -38 -30 30% General and administrative -381 -351 -8% Other income (exp
Slide 39: Summary Financials
Summary Financials SUMMARY BALANCE SHEET (Million TL) YE 2016 1H 2017 Change Total Assets 19.152 19.781 3% Cash & Cash Equivalents 3.205 3.246 1% Financial Assets & Derivatives 57 70 23% Trade Receivables 2.044 2.187 7% Inventories 1.960 2.049 5% Equity-Pickups 601 599 0% Property, plant and equipme
Slide 40: 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 41: 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