Turkiye Sise ve Cam Fabrikalari A.S. · BIST:SISE
Turkiye Sise ve Cam Fabrikalari A.S — Şişecam — Q3 2021 Earnings Presentation
16 slides from Turkiye Sise ve Cam Fabrikalari A.S's earnings presentation, Oct 27, 2021
Slide 1: Earnings Release Q3 2021
EARNINGS RELEASE October 27, 2021 Şişecam (BIST-100: SISE) reported financial results for the third quarter ended September 30, 2021 M. Görkem Elverici, CEO of Şişecam, commented: “Third quarter of 2021 has already left a mark in history with major tailwinds and headwinds that we have been through a
Slide 2: Consolidated Summary Financial Results for Q3'21 & 9M'21
Consolidated Summary Financial Results for Q3’21 & 9M’21 Summary Financials (TRY Mn) 9M'20 9M'21 YoY Q3'20 Q2'21 Q3'21 QoQ YoY Revenue 14,632 21,013 44% 5,798 7,091 8,236 16% 42% Gross Profit 4,470 7,432 66% 1,888 2,617 2,880 10% 53% Gross Margin 31% 35% 482 bps 33% 37% 35% -194 bps 241 bps EBIT 3,2
Slide 3: Financial Highlights (Q3'21 vs Q3'20)
Financial Highlights (Q3’21 vs Q3’20)1 Revenue came in at TRY 8.2Bn, up by 42% YoY (EUR 819Mn, up by 19% YoY in EUR terms) Gross profit was at TRY 2.9Bn, up by 53% YoY with a margin of 35% Adjusted EBITDA came in at TRY 2.0Bn, up by 31% (EUR 199Mn, up by 6% YoY in EUR terms) with 24% margin
Slide 4: Segmental Analysis (cont'd)
Segmental Analysis (cont’d) Q3'21 Segmental Breakdown of Adjusted EBITDA (TRY Mn) H1'20 Q3'20 Q1'21 Q2'21 Q3'21 QoQ YoY Architectural Glass 232 303 566 701 668 -5% 121% Auto Glass -9 57 59 90 16 -82% -71% Glassware 167 155 229 289 174 -40% 13% Glass packaging 657 522 365 534 409 -23% -22% Chemicals
Slide 5: Operational Highlights (Q3'21 vs Q3'20)
Operational Highlights (Q3’21 vs Q3’20) Flat Glass: Architectural Glass & Auto Glass o Total flat glass production at 768K tons, up by 33% YoY o 100% capacity utilization rate (actual output/effective capacity) o Architectural Glass Division: 4% 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 Q3’21” Architectural Glass business line extended its strong performance throughout the quarter thanks to sound demand dynamics in its local markets as well as in the regions includ
Slide 7: Auto Glass: 8% share in Revenue, 1% share in EBITDA
Auto Glass3: 8% share in Revenue | 1% share in EBITDA | As a response to the global semiconductor shortage, which has been developing since the beginning of 2021, OEMs slowed down their operations either by lowering capacity utilization or by temporarily shutting down production facilities. Given Ju
Slide 8: Chemicals: 17% share in Revenue, 28% share in EBITDA
As a result, the business line recorded a revenue growth of 29% YoY. Glass Packaging business line generated 60% of its revenue from international sales including exports from Turkey, while the share of domestic sales stood at 40% (135 bps higher YoY). Chemicals: 17% share in Revenue | 28% share in
Slide 9: Regional Breakdown of Revenue and Profitability
Share of international revenue was at 72% while domestic revenue was at 28% in Q3’21 at Şişecam consolidate level. Q3'21 Regional Breakdown of Revenue 2019 Q1'20 Q2'20 Q3'20 Q4'20 2020 Q1'21 Q2'21 Q3'21 QoQ YoY Revenue from Turkey Operations 61% 64% 64% 60% 61% 62% 60% 52% 56% 372 bps -379 bps Sales
Slide 10: Cash Flow Analysis (9M'21 vs 9M'20)
Cash Flow Analysis (9M’21 vs 9M’20) Cash inflow from operating activities increased from TRY 2.3Bn to TRY 3.9Bn mainly with better operational performance and higher net income. Working capital requirement increased by TRY 929Mn to TRY 1.8Bn Cash inflow from investing activities stood at TRY 172
Slide 11: Net Debt, FX Position and One-Off Impacts
Net debt was TRY 2.8Bn (USD 318Mn) vs. TRY 3.9Bn (USD 533Mn) in 2020-end. Net Debt to EBITDA was at 0.35x. FX Position Şişecam’s net long FX position increased to TRY 9Bn (USD 1Bn) as of September-end 2021 from TRY 6.6Bn as of the end 2020 with the increase in USD-denominated assets and decrease in
Slide 12: One-Off Impacts and Operational Developments in Q3'21
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: 9M’21: +TRY 23 Mn o Q3’21: +TRY 4 Mn: TRY 5 Mn: Sale of Pasabahce store (Ankara) o Q2’21: +TRY 11 Mn: TRY 11 Mn: Sale of P
Slide 13: Important Events during and after the Reporting Period
Important Events during and after the Reporting Period On 20/08/2021, JCR Eurasia Rating completed Şişecam’s credit rating assessment process with investment grades for international ratings. Assigned ratings were as follows; · Long-Term National Rating "AAA (Trk) / (Stable Outlook)" · Short-Term
Slide 14: Appendix: Sub-Segmental Breakdown of Revenue and Costs
Appendix Sub-Segmental Breakdown of Revenue H1'20 Q3'20 Q1'21 Q2'21 Q3'21 Architectural 21% 25% 29% 28% 28% Auto Glass & Encapsulation 10% 12% 13% 11% 8% Glassware 15% 14% 14% 15% 16% Glass Packaging 27% 27% 23% 26% 24% Chemicals 22% 19% 20% 19% 17% Soda Chemicals & Energy 14% 12% 13% 13% 10% Chromi
Slide 15: Regional Breakdown Adjusted EBITDA Margin
Regional Breakdown Adjusted EBITDA Margin H1'20 Q3'20 Q1'21 Q2'21 Q3'21 Turkey 41% 34% 35% 36% 28% Foreign Operations 18% 15% 19% 26% 20% Russia, Ukraine and Georgia* 10% 9% 7% 9% 11% Europe* 8% 7% 10% 15% 7% Other* 0% -1% 1% 2% 2% *Geography-based Contribution to Non-Turkey Margin
Slide 16: 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