Turkiye Sise ve Cam Fabrikalari A.S. · BIST:SISE
Turkiye Sise ve Cam Fabrikalari A.S — Şişecam — Q1 2021 Earnings Presentation
14 slides from Turkiye Sise ve Cam Fabrikalari A.S's earnings presentation, May 1, 2021
Slide 1: Earnings Release: Q1 2021 Results
EARNINGS RELEASE May 1, 2021 Şişecam (BIST-100: SISE) reported financial results for the first quarter ended March 31, 2021 Prof. Dr. Ahmet Kırman, Chairman & CEO of Şişecam, commented: “First quarter of 2021 turned out to be heavier than anticipated. While we continued to experience everlasting pan
Slide 2: Consolidated Summary Financial Results for Q1'21
Consolidated Summary Financial Results for Q1’21 Summary Financials (TL mn) Q1'20 Q4'20 Q1'21 QoQ Change YoY Change Revenue 4.615 6.708 5.686 -15% 23% Gross Profit 1.496 2.191 1.936 -12% 29% Gross Margin 32% 33% 34% 138 bps 162 bps EBIT 1.114 1.097 1.684 54% 51% EBIT Margin 24% 16% 30% 1327 bps 549
Slide 3: Financial Highlights (Q1'21 vs Q1'20)
Financial Highlights (Q1’21 vs Q1’20)1 Revenue came in at TRY 5.7Bn, up by 23% YoY (EUR 640Mn, down by 7% YoY in EUR terms) Gross profit was at TRY 1.9Bn, up by 29% YoY with a margin of 34% Adjusted EBITDA came in at TRY 1.6Bn, up by 43% (EUR 184Mn, up by 8% YoY in EUR terms) with 29% margin,
Slide 4: Segmental Analysis (cont'd)
Segmental Analysis (cont’d) Q1'21 Segmental Breakdown of Adjusted EBITDA ('000 TRY) Q1'20 Q1'21 YoY Architectural Glass 225.369 577.308 156% Auto Glass 45.773 59.036 29% Glassware 141.007 228.888 62% Glass packaging 309.165 364.958 18% Chemicals 381.384 489.629 28% Other 46.787 -23.727 NM Eliminatio
Slide 5: Operational Highlights (Q1'21 vs Q1'20)
Operational Highlights (Q1’21 vs Q1’20) Flat Glass: Architectural Glass & Auto Glass o Total flat glass production at 617K tons, down by 1% YoY o 87% capacity utilization rate (actual output/effective capacity) o Architectural Glass Division: 27% YoY increase in sales volume o Auto Glass Business
Slide 6: Architectural Glass: 29% share in Revenue, 34% in EBITDA
Architectural Glass2: 29% share in Revenue | 34% share in EBITDA | “Largest Topline & EBITDA Growth Contributor in Q1’21” By being the number one producer in both Turkey and Europe, Architectural Glass business line had all the means to benefit from the strong demand for architectural glass, backed
Slide 7: Auto Glass and Glass Packaging
Topline growth was strong at 38% YoY in the quarter given the strong OEM activities in the first quarter in Turkey, client portfolio expansion and low base of last year due to the closure in March with the pandemic. Moreover, Turkish Lira depreciation supported the topline generated by Şişecam Auto
Slide 8: Chemicals and Glassware segments
Chemicals segment’s operational profitability was positively impacted from Turkish Lira depreciation in Q1’21 given that the hard currency- denominated share of COGS recorded at 52%, thanks to local currency depreciation and better raw material pricing resulting from commodity hedges. Glassware: 14%
Slide 9: Cash Flow Analysis
TRY 955Mn FX gain was recorded on Eurobond investments, trade receivables & payables and financing activities vs. TRY 398Mn in Q1’20 TRY 183Mn tax expense was recorded with an effective tax rate of 12%, TRY 11mn deferred tax income was recorded in relation with corporate tax rate decrease from 2
Slide 10: FX Position and One-Off Impacts
FX Position Şişecam’s net long FX position increased to TRY 7.5Bn (USD 898Mn) in Q1’21 from TRY 6.6Bn as of the end 2020 with the increase in EUR- denominated assets. FX position was 284Mn short in EUR and 1.2Bn long in USD in Q1’21 vs. 403Mn short in EUR and 1.3Bn long position in USD as of the end
Slide 11: 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) Glassware Production o Kırklareli furn
Slide 12: Appendix: Sub-Segmental, COGS and Opex Breakdown
Appendix Sub-Segmental Breakdown of Revenue Q1'20 Q1'21 Architectural 21% 29% Autoglass & Encapsulation 12% 13% Glassware 16% 14% Glass Packaging 24% 22% Chemicals 22% 20% Soda Chemicals & Energy 14% 13% Chromium Chemicals & Oxyvit 5% 4% Glass Fiber 2% 2% Mining & Other 2% 1% Other 6% 2% Breakdown o
Slide 13: Regional Breakdown Adjusted EBITDA Margin
Regional Breakdown Adjusted EBITDA Margin Q1'20 Q1'21 Turkey 58% 35% Foreign Operations 18% 19% Russia, Ukraine and Georgia 10% 7% Europe 8% 11% Other 0% 1%
Slide 14: 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