Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — Investor Presentation (November 2014)
21 slides from Turkiye Sise Ve Cam Fabrikalari A.s's investor presentation, November 2014
Slide 1: Investor Relations Presentation
Investor Relations Presentation November 2014
Slide 2: Şişecam Group Overview
Şişecam Group Overview Şişecam is a conglomerate headquartered in Istanbul, Turkey Founded by İş Bank in 1935 Core business is mainly centred on glass manufacture and the chemicals industry supporting glass production, with complementary industrial and commercial operations related to glass producti
Slide 3: Soda at a Glance
Soda at a Glance An integral part of Şişecam Group and a global player in soda ash and chromium. Soda Sanayii is 90% owned by Şişecam Group, with a 10% stake on Ownership and Corporate Structure float on BIST and a Market Cap of $915mn as at November 11, 2014 Annual sales exceed $730mn, with exports
Slide 4: History and Key Developments
History and Key Developments Corporate History 1996–1997 1969–1975 1979–1984 1986 JVs: Şişecam & Cromital Soda Sanayii Kromsan Establishment Soda & Kromsan Merger and Solvay in Bulgaria Establishment Stage Stage plant 2012 2000 2005–2006 2008–2011 252 MW Mersin Soda Sanayii IPO on Soda Lukavac acqui
Slide 5: Key Investment Story Highlights
Key Investment Story Highlights A compelling story of local leadership and global scale built by a highly competent management team as part of Şişecam Group. 1 Market leader in soda ash and BCS 6 2 Market-leading margins driven Excellent cash flow generation by raw material integration and and stron
Slide 6: A Global Market Leader in Respective Segments
1 A Global Market Leader in Respective Segments Bulgaria Soda Ash Market Shares(1) Solvay Sodi S/C Bulgaria Turkey – Mersin Plants Turkey 75% #1 Şişecam Bulgaria (JV with SOLVAY;25%) Mersin Soda Plant: 1,320 tons / year 360k tons / year Kromsan Chromium Compounds Plant: Europe 16% #4 Chromic Acid 28
Slide 7: Market-leading Margins Driven by Raw Material Integration and Favourable Location
2 Market-leading Margins Driven by Raw Material Integration and Favourable Location Invested in two cogeneration units in 2006 and 2009 to source steam economically (US$120m investment) Co-generation in Mersin 252 MW / year electricity generation and over 4mn tons / year steam capacity Raw material
Slide 8: Operational Efficiency Driven by Economies of Scale
3 Operational Efficiency Driven by Economies of Scale High profitability of Soda Sanayii is supported by a favourable cost structure as well as solid customer relationships. Profitability Margins 29% 28% 27% 26% 23% 21% 22% 21% 21% 20% 20% 19% 15% 14% 11% 2011 2012 2013 2013 9M 2014 9M Gross Margin
Slide 9: Strong Support from Şişecam Group to an Industry Leading Management Team
4 Strong Support from Şişecam Group to an Industry Leading 5 Management Team, Driving Future Growth Key Management Team 2013 Burhan Ergene Chairman of Soda Sanayii Board of Directors / Head of Şişecam Chemicals Group Previously Vice President in charge of Marketing & Sales of Soda Sanayii and Key Co
Slide 10: Excellent Cash Flow Generation and Strong Balance Sheet
6 Excellent Cash Flow Generation and Strong Balance Sheet Strong EBITDA generation with limited capex and a strong balance sheet. EBITDA & CAPEX Comments TLmn Production capacity and sales volumes have been increasing over the past years 326 328 Operating profit has been trending 232 upward in the 2
Slide 11: Soda Ash Market
Soda Ash Market Key Highlights Consumption Growth CAGR 55mn ton production / demand globally Global Turkey 74% synthetic, 26% natural 5.0% 5.0% 4.5% 3.7% Demand drivers: flat glass, construction and detergents sectors Capacity utilization globally at 82% Strong growth expected to continue on the bac
Slide 12: Chromium Market
Chromium Market Key Highlights Consumption Growth Chromic Acid BCS 410kmT Basic Chromium Sulphate (“BCS”) global market, 165kmT Global Turkey Global Turkey Chromic Acid global market 3.8% Demand drivers: leather, automotive, construction, wood preservation 0.4% 0.6% 0.8% Global capacity utilization
Slide 13: Soda Sanayii Positioning in Soda Ash and Chromium Markets
Soda Sanayii Positioning in Soda Ash and Chromium Markets Soda Sanayii commands leading positions in both the soda ash and chromium markets, with its favourable locations and excellent reach to key clients. Breakdown of Soda Ash Sales Soda Market Shares Soda Ash Locations By Industry By Products Det
Slide 14: Key Financial Indicators – Revenues
Key Financial Indicators – Revenues Sales Comments TLmn 726 2014 YTD: Despite lower sales 629 661 548 prices of chromium, favourable FX 525 trends have led to an increase in 379 305 348 301 net sales 275 2013: Net sales increased by 18.7% due to soda ash price increases and increased exports 2011 20
Slide 15: Key Financial Indicators – Profitability
Key Financial Indicators – Profitability Gross Profit Comments TLmn 29% 26% 400 30% 20% 2014 YTD: Profitability improved 21% 288 21% 305 300 250 243 due to increased soda product 20% 209 200 prices, favourable FX trends and 100 10% lower input costs. A lower level of raw material use at the Lukavac
Slide 16: Strong Cash Generation
Strong Cash Generation Net Debt / EBITDA Currency Breakdown of Gross Debt(1) TLmn 150 0.4x USD 0.3x 45% 93 0.3x 100 TL 0.2x 1% 50 -- 8 0.1x -- 0.0x 0.0x 0.0x (50) EUR (0.1x) 54% (100) Total Gross Debt of TL298mn(1) (0.2x) (150) (0.3x) (171) (200) (0.4x) Maturity Breakdown of Debt(1) (0.4x) (250) (0.
Slide 17: Capital Expenditure
Capital Expenditure Capex / Sales Historical Projects TLmn RSB 34kTon / Year Capacity Expansion: Mersin Soda Plant (2013) 180 16% 15% Annual capacity of refined sodium bicarbonate (RSB), a value-added product, was increased by 34k tons 160 14% Capacity Expansion: Mersin Soda Plant (2011) 140 130 Mul
Slide 18: Key Investment Story Highlights
Key Investment Story Highlights A compelling story of local leadership and global scale built by a highly competent management team as part of Şişecam Group. 1 Market leader in soda ash and BCS 6 2 Market-leading margins driven Excellent cash flow generation by raw material integration and and stron
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Slide 20: Appendix
Appendix
Slide 21: Cash Flow Generation
Cash Flow Generation TLmn 2011 2012 2013 2013 9M 2014 9M A. Cash flow s from operating activities 140 104 19 17 312 Net profit for the period 184 133 208 139 238 Adjustm ents to reconcile net profit / (loss) to net cash provided by operating activities 58 83 58 54 43 Changes in net w orking capital