Slide 1: Investor Presentation Q1'24
ŞİŞECAM Investor Presentation Q1’24
Slide 2: Content
Content Q1'24 Key Financial Results Page 4 Q1'24 Segmental Results Page 5-7 Q1'24 Regional Results Page 8 Q1'24 & Historical Operational Results Page 9-12 Liquidity & Capital Allocation Page 13-16 Sustainability – CareForNext 2022-2030 Vision Page 17-21 Şişecam at a Glance & Risk Management Policies
Slide 3: Important Notice for Inflation Accounting (IAS 29)
Important Notice for Inflation Accounting (IAS 29) ▪ Turkey has economic conditions that require reporting entities in the country to follow the methodology set out in International Accounting Standards (‘IAS’) - 29 ‘Financial Reporting in Hyperinflationary Economies’. ▪ Pursuant to the decision dat
Slide 4: Q1'24 Key Financial Results
Q1'24 Key Financial Results Revenue (TRY Mn) Gross Profit (TRY Mn) EBITDA (TRY Mn) Parent Only Net Income (TRY Mn) 16% 30% 23% 20% 12% 11% 6% 48,556 40,584 14,517 9,279 9,536 4,770 5,324 2,355 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Revenue YoY Change Gross Profit ---Margin EBITDA ---Margin
Slide 5: Q1'24 Segmental Revenue and EBITDA Margin
Q1'24 Segmental Revenue and EBITDA Margin Architectural Glass (TRY Mn) Industrial Glass (TRY Mn) 22% 2% 9% -6% -12% -3% 4,806 +11% -14% 4,651 9,795 +21% -33% 8,615 Q1’23 volume effect pricing, product Q1’24 Q1’23 volume effect pricing, product Q1’24 mix, curr. effect mix, curr. effect Glassware (TRY
Slide 6: Q1'24 Segmental Revenue and EBITDA Margin
Q1'24 Segmental Revenue and EBITDA Margin Chemicals (TRY Mn) Energy (TRY Mn) 27% 18% 4% 4% -26% -32% 13,006 +11% -37% 6,327 +31% -63% 9,626 4,300 Q1’23 volume effect price, product Q1’24 Q1’23 volume effect pricing, product Q1’24 mix, curr. ffect mix, curr. effect Other (TRY Mn) 53% 42% +26% 1,056 8
Slide 7: Q1'24 Segmental Revenue and EBITDA
Q1'24 Segmental Revenue and EBITDA Diversified Revenue Mix Revenue Bridge (TRY Mn) 2% 11% 21% 24% Q1'24 11% 13% 18% Diversified EBITDA Mix EBITDA Bridge (TRY Mn) 19% 18% 5% -6% Q1'24 9% 14% 41% 7
Slide 8: Q1'24 Regional Results
Q1'24 Regional Results Geographic Revenue Mix Regional Breakdown of Exports from Turkey 2% 8% 1% 10% 10% 10% 39% 4% 52% 21% 7% 16% 20% Sales in Turkey Exports from Turkey Europe Middle East North America Europe US South America Asia North Africa Russia, Ukraine and Georgia Other Other Top 10 Export
Slide 9: Q1'24 Operational Results
Q1'24 Operational Results K tons Glass Production Soda Chemicals Production Chromium Chemicals Sales 1,323 1,277 1.185 1.104 42% 40% 66% 68% 33 58% 60% 17 89% 34% 32% 78% 22% 11% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Domestic International Domestic International Domestic International* * International
Slide 10: Historical Production & Sales Results - Glass
Historical Production & Sales Results - Glass K tons Regional Glass Production Segmental Glass Production 16% 2% -4% 3% -10% 5,781 5,619 5,052 1% 5,227 5,781 4,857 1% 5,619 1% 5,052 4,857 5,227 1% 1% 4% 42% 41% 4% 45% 42% 43% 44% 43% 41% 47% 46% 6% 6% 7% 6% 6% 1,323 1,277 1,323 58% 1,277 51% 52% 57%
Slide 11: Historical Production & Sales Results - Chemicals
Historical Production & Sales Results - Chemicals K tons Soda Chemicals Production Soda Chemicals Sales 99% 108% 10% 0% -1% -8% 1% 8% -4% -9% 7% 4% 70% 69% 88% 90% 39% 38% 37% 77% 76% 73% 61% 63% 30% 31% 66% 68% 90% 62% 88% 34% 32% 23% 24% 27% 12% 10% 10% 12% 2019 2020 2021 2022 2023 Q1'23 Q1'24 201
Slide 12: Installed Gross Capacities
Installed Gross Capacities Flat Glass Glassware Glass Packaging* Soda Chemicals 3% 6% 9% 6% 18% 14% 10% 38% 7% 4.3Mn 526K 3.3Mn 8.3Mn 12% tons/year tons/year tons/year tons/year 5% 60% 14% 59% 63% 70% 6% Turkey Russia Bulgaria Egypt Turkey Russia Georgia Turkey Bosnia Bulgaria USA ** Turkey Russia B
Slide 13: Debt Position
Debt Position Net Debt Bridge (TRY Mn) Net Debt: USD 1.6 Bn Net Debt/EBITDA 1.6x Fixed / Variable Interest Rate Term Structure of Gross Debt (TRY Mn) 84% / 16% 94,644 RUB Other 5% 3% 59% 55,649 TRY 22% Net Long Fx Position USD TRY 36% USD 41% 21% TRY 15.6 Bn EUR 55% 23% 38,995 EUR 35% Q1'24 USD EUR
Slide 14: Gross Debt & Liquidity Results
Gross Debt & Liquidity Results TRY Mn 98,121 94,644 9,334 5,326 38,393 43,448 45,339 50,925 2023 Q1’24 Marketable Securities* Cash and cash equivalents Net Debt Net Debt/EBITDA** 1.25 1.62 Net Debt/Equity** 0.24 0.28 Credit Ratings LT FCY MOODY’s B2 Positive Rating LT FCY FITCH BB- Positive Rating (
Slide 15: FX Position
FX Position Q1'24 : Net Long FX Position : TRY 15.6 Billion Original Currency (Mn) 2023 Q1'24 1,002 682 550 457 -105 -89 USD EUR Other Currencies corresponding TRY 15
Slide 16: FCF & Capex Analysis
FCF & Capex Analysis (TRY Mn) Q1'23 Q1'24 Change CAPEX Breakdown (Q1'24) Net Profit 5,951 2,422 -3,529 Non Cash Items -655 673 1,328 9% 23% Changes in Working Capital -4,210 187 4,396 12% Cashflow from operations 1,087 3,282 2,195 Interest received,net -423 -2,100 -1,678 4% Dividend paid,net -426 -3
Slide 17: Sustainability
SUSTAINABILITY 17 17
Slide 18: Şişecam's 2030 Sustainability Strategy at a Glance
Şişecam’s 2030 Sustainability Strategy at a Glance 2022 Sustainability Report 18 18
Slide 19: Updates on Sustainability Initiatives & Projects
Updates on Sustainability Initiatives & Projects 2022 Sustainability Report WOMEN EMPOWERMENT PRINCIPLES GLASS FOR EUROPE «SÖZDEN EYLEME» PROGRAM ▪ Şişecam has rejoined the trade association Glass for Europe, which represents ▪ Şişecam took part in the «Sözden Eyleme WEPs» pilot program, which was E
Slide 20: Updates on Sustainability Initiatives & Projects
Updates on Sustainability Initiatives & Projects GLASS COLOR OPTIMIZATION PROJECT (CROP) WITH ARTIFICIAL THREE NEW COATED GLASS LINES INVESTMENTS INTELLIGENCE AND MACHINE LEARNING METHODS ▪ Sisecam is currently implementing the Glass Color Optimization Project (CROP) ▪ Şişecam announced its decision
Slide 21: Updates on Sustainability Initiatives & Projects
Updates on Sustainability Initiatives & Projects MINISTRY INCENTIVE FOR EFFICIENCY ENHANCEMENT PARTNERSHIP WITH ICRON PROJECTS (VAP) ▪ Efficiency Enhancement Projects (VAP) at Şişecam, Eskişehir and Mersin Glass ▪ Sisecam has finalized its partnership agreement with ICRON, a Turkish Packaging and So
Slide 22: Şişecam at a Glance
Şişecam at a Glance TRY 175 Billion 5.2 Million Tons 4.7 Million Tons ~25K Production Facilities Revenue in 2023 Glass Production Soda ash Production Employees in 14 Countries 5th Flat Glass Leader Producer in 1st Glassware 5th Glass Packaging 2nd Soda Ash 4th Chromic Acid Producer Globally Basic Ch
Slide 23: Risk Management Policies
Risk Management Policies Leverage Leverage with conservative Net Debt/EBITDA levels Maintain sufficient liquidity to meet short-term funding and to finance equity portion of Liquidity Capex FX Position FX position limited to -10% to 20% of shareholder’s equity Not only a diversified relationship ban
Slide 24: Appendix
Appendix • Operating Structure • Production Facilities • FX Exposure • COGS Analysis • Summary Balance Sheet • Summary Income Statement • New Implementations - Fintech • Ongoing Investments • Transformation Journey – One Şişecam • Key Financials w/o IAS 29 • Historical Financials w/o IAS 29 24
Slide 25: Şişecam Operating Structure
Şişecam Operating Structure Production joint ventures Joint ventures ARCHITECTURAL INDUSTRIAL GLASSWARE GLASS PACKAGING CHEMICALS ENERGY OTHER GLASS GLASS Şişecam Flat Paşabahçe Şişecam TRSG Glass Şişecam Şişecam Elyaf Paşabahçe Şişecam Şişecam USA Şişecam Glass India (Shanghai) JSC Mina Shanghai Ca
Slide 26: Şişecam Production Facilities
Şişecam Production Facilities FLAT GLASS INDUSTRIAL GLASS CHEMICALS / GLASS GLASSWARE ENERGY OTHER* ARCHITECTURAL PACKAGING SODA CHROMIUM PORT AUTO GLASS ENCAPSULATION GLASS FIBER GLASS CHEMICALS CHEMICALS MANAGEMENT TURKEY 4 PLANTS 1 PLANT 1 PLANT 3 PLANTS 3 PLANTS 1 PLANT 1 PLANT 1 PLANT 5 1 PLANT
Slide 27: FX Exposure
FX Exposure Consolidated Şişecam FX Exposure – Q1'24 Revenue 39% 28% 22% 8% 3% Cogs 49% 24% 17% 7% 3% TRY EUR USD RUB Other Consolidated Şişecam FX Exposure – Q1’23 Revenue 35% 31% 23% 8% 3% Cogs 45% 29% 16% 7% 3% TRY EUR USD RUB Other 27
Slide 28: FX Exposure – Q1'24
FX Exposure – Q1'24 Architectural Glass Industrial Glass 2% Revenue 54% 27% 7% 5% 7% Revenue 23% 69% 6% 2% Cogs 43% 37% 7% 4% 9% Cogs 32% 64% 2% TRY EUR USD RUB TRY EUR USD RUB Other Glassware Glass Packaging Revenue 44% 33% 7% 7% 9% Revenue 45% 13% 6% 33% 3% Cogs 57% 29% 2% 7% 5% Cogs 48% 4% 13% 31
Slide 29: FX Exposure – Q1'24
FX Exposure – Q1'24 Chemicals Energy Revenue 28% 72% Revenue 100% Cogs 26% 9% 65% Cogs 100% TRY EUR USD TRY Other Revenue 23% 64% 13% Cogs 32% 62% 6% TRY EUR USD 29
Slide 30: COGS Analysis
COGS Analysis Şişecam Consolidated COGS Breakdown 25% 29% 29% Input & Materials & Packaging 33% Ngas Q1’23 Electricity Q1'24 Labor 6% 6% Depreciation 11% 20% Outsourcing & Other 15% 16% 5% 5% 30
Slide 31: Q1'24 Segmental COGS Analysis
Q1'24 Segmental COGS Analysis Segmental COGS Breakdown Architectural Glass 38% 32% 5% 9% 5% 11% Industrial Glass 38% 3% 5% 23% 3% 28% Glassware 28% 18% 7% 32% 5% 10% Glass Packaging 46% 17% 9% 15% 7% 6% Chemicals 40% 17% 3% 15% 11% 14% Energy 7% 1% 92% Other 52% 4% 6% 20% 3% 15% Input & Materials &
Slide 32: Natural Gas Prices – Q1'24 & Historical
Natural Gas Prices – Q1'24 & Historical Turkey Ngas Expense % in total COGS 19% 15% 12% 11% 10% 8% 3% 2% Architectural Industrial Glassware Glass Chemicals Energy Other Şişecam Glass Glass Packaging Turkey Ngas Expense % in total COGS - ŞİŞECAM 18% 12% 13% 13% 12% 11% 10% 2019 2020 2021 2022 2023 Q1
Slide 33: Summary Balance Sheet
Summary Balance Sheet SUMMARY BALANCE SHEET (TRY Mn) 2023 Q1'24 Change Total Assets 335,080 323,097 -4% Cash & Cash Equivalents 43,448 38,393 -12% Financial Assets & Derivatives 11,546 7,584 -34% Trade Receivables 31,609 30,288 -4% Inventories 37,867 36,181 -4% Equity-Pickups 4,435 4,258 -4% Propert
Slide 34: Summary Income Statement
Summary Income Statement SUMMARY INCOME STATEMENT (TRY Mn) Q1'23 Q1'24 Change Revenue 48,556 40,584 -16% Cost of Goods Sold -34,038 -31,305 -8% Gross Profit 14,517 9,279 -36% General and administrative -2,813 -2,828 1% Sales and marketing -6,168 -6,587 7% Research and development -168 -181 8% Other
Slide 35: Digital Transformation in Treasury Management and Fintech
Digital Transformation in Treasury Management and Fintech ▪ Migration of ▪ SWIFT API ▪ Global Cash S4Hana Management ▪ Global Master ▪ SWIFT GPI ▪ Digitalized Payment Data Management Management in ▪ SWIFT KYC ▪ API connections a single platform between multiple systems. To adapt to developing by Pay
Slide 36: Digital Transformation in Treasury Management and Fintech
Digital Transformation in Treasury Management and Fintech Virtual POS and Monitoring Global credit card Cash Flow Adapting digital developments to our company for an solutions effective cash management and payment system. Supplier Financing Program Making payments completely trackable Fintechs MT940
Slide 37: Ongoing Investments
Ongoing Investments Announcement Expected P&L Business Line Investment Investment Style Post-Investment Gross Annual Capacity Location Year Impact Date Flat glass / TR-1 Float Line Cold Repair & Capacity Cold Repair + Capacity Architectural Glass 360k tons (126k tons addition) 2021 in 2027 Kırklarel
Slide 38: Transformation Journey
Transformation Journey 2020 2021 2023 2024 2025 One One Operating Şişecam Şişecam Function-Level Vision & Operating Operating Model Design Model Value Creation Execution Strategies Model ERP Transformation: Roots & Wings (1st and 2nd Wave) Information Technologies Transformation (Data & Analytics, I
Slide 39: Key Financials (w/o IAS29)
Key Financials (w/o IAS29) Revenue (TRY Mn) EBITDA (TRY Mn) Profit Before Tax (TRY Mn) Net Income for the Period* (TRY Mn) 40% 22% 16% 15% 8% 10% 10% 39,724 28,365 6,225 6,404 4,161 3,002 3,851 2,736 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1 Growth Q1 Margin Q1 Margin Q1 Margin Total Assets
Slide 40: Historical Financial Results (w/o IAS29)
Historical Financial Results (w/o IAS29) TRY Mn 36% 133,580 30% 28% 27% 26% 95,349 32,058 35,264 28,160 18,059 21,341 11,603 4,868 5,989 2019 2020 2021 2022 2023 Revenue EBITDA EBITDA Margin Revenue 2019 2020 2021 2022 2023 Change Y-o-Y 16% 18% 50% 197% 40% 40
Slide 41: 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 purposes
Slide 42: Contact Details
Contact Details T. Şişe ve Cam Fabrikaları Şişecam Genel Merkezi D-100 Karayolu Cad. No:44A 34947 Tuzla/İstanbul Turkey Tel : (+90) 850 206 50 50 Fax: (+90) 850 206 40 40 Gökhan Güralp, Chief Financial Officer gguralp@sisecam.com Hande Özbörçek, IR Director, hozborcek@sisecam.com Tel: (+90) 850 206