Slide 1: 2018 Q1 Results – Investor Presentation
2018 Q1 Results Investor Presentation
Slide 2: Contents
Contents 3 Financial & Operational Overview 18 Company Overview 27 Segments’ Profile 36 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 2018 Q1 Financial Highlights TRY mn Y-o-Y Comparison EBITDA Revenue 18% Revenue Gross Profit 3.086 Gross Profit 11% 1.006 One-off One-off Gross Margin 33% 2.621 831 907 116 114 EBITDA 9% 908 Adjusted EBITDA 11% One-off adjustments in Q1'18: TRY 114 Million in Q1 2018 Revalua
Slide 5: Key Financial Indicators
Key Financial Indicators Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 32% 32% 29% 28% 24% 25% 29% 21% 20% 18% 18% 15% 16% 12% 11.318 8% 7% 8.569 6.876 7.415 5.954 3.120 5.320 1.365 1.764 2.120 966 1.223 907 2.621 831 3.086 2012 2013 2014 2015 2016 2017 1Q 2017 1Q 2018 Revenue EBIT
Slide 6: Financial Highlights - Revenue
Financial Highlights - Revenue Segments’ Contribution to Revenue 1Q 2017 TRY mn 1Q 2018 3.086 +143 +52 +263 +15 4% 5% 2.621 -9 21% 36% 22% 39% 20% 18% 19% 16% Flat Glass Glassware Glass Packaging Chemicals Other* 1Q 2017 Flat Glass Glassware Glass Chemicals Other* 1Q 2018 Packaging 6 * Consists of e
Slide 7: Financial Highlights - EBITDA
Financial Highlights - EBITDA Segments’ Contribution to EBITDA** 1Q 2017 1Q 2018 TRY mn 7% 1% 33% 31% 39% 29% +69 +23 +28 715 793 -9 -32 13% 19% 18% 10% 1Q 2017 Flat Glass Glassware Glass Chemicals Other* 1Q 2018 Packaging Flat Glass Glassware Glass packaging Chemicals Other* *Consists of energy tra
Slide 8: Revenue & Cash Generation
Revenue & Cash Generation Revenue by Geography TRY bn 11,3 1Q 2017 1Q 2018 8,6 21% 37% 24% 23% 24% 7,4 6,9 6,0 37% 5,3 31% 28% 23% 28% 23% 28% 23% 23% 3,1 24% 23% 2,6 12% 13% 40% 37% 46% 40% 35% 47% 49% 49% 24% 21% 41% 42% 41% 42% 2012 2013 2014 2015 2016 2017 1Q 2017 1Q 2018 Domestic Export from Tu
Slide 9: Revenue & Cash Generation
Revenue & Cash Generation Exports from Turkey Top 10 Countries Exports of USD 190 Million in 1Q 2018 to 150 countries Italy 14% Egypt 7% North & Asia Bulgaria 5% Middle Europe America 50% 12% France 4% 7% Far East Lebanon 4% Middle East 1% USA 4% Africa 14% Oceania 10% Saudi Arabia 4% 0.1% South Spa
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 * 1.068 968 736 580 2012 2013 2014 2015 2016 2017 1Q 2018 Net Debt/EBITDA 1,00 1,33 0,78 0,82 0,70 0,19 0,23 Net D
Slide 11: Financial Highlights - Liquidity
Financial Highlights - Liquidity Solid Liquidity TRY mn 6.433 5.780 5.897 1.085* 1.980* 4.614 1.878* 29* 3.843 3.584 3.144 3.206 2.128 1.953 2.775 3.717 3.439 1.160 1.631 1.440 1.489 968 1.068 736 580 2012 2013 2014 2015 2016 2017 1Q 2018 Net Debt Cash & Cash Equ. Marketable Securities Gross Debt (*
Slide 12: Debt Profile
Debt Profile TRY mn up to 1 years 1-5 years 5 years - Total % in Currency USD 87 2.008 18 2.208 34% EUR 1.637 1.268 70 2.896 45% RUR 470 358 0 837 13% UAH 56 14 0 70 1% EGP 14 0 0 14 0% TL 182 196 6 408 6% Total 2.446 3.987 6.433 % in Maturity 38% 62% Short Term Long Term Less volatility in interest
Slide 13: Free Cash Flow
Free Cash Flow TRY mn TRY mn Net Cash Position in 1Q 2018 FCF Generation in 1Q 2018 Change in Net Change FCF -133 Non Cash Working in Interest Net Profit Items Capital Income Taxes Paid Capex* FCF Sale of property, plant and equipment 14 Employee Termination Benefits -13 +235 Net Change in Financial
Slide 14: FX Position
FX Position On Balance Sheet Benefiting from USD 324 Million net long FX position in 1Q 2018 as most of cash is held in hard currencies TRY mn 2012 2013 2014 2015 2016 2017 1Q 2018 1.692 1.540 1.087 788 532 551 242 323 82 104 56 73 16 30 27 -160 -185 -378 -493 -747 -874 USD EUR Other Currencies 14
Slide 15: Capex Analysis
Capex Analysis Capex/Revenue Sustained TRY mn 28% 11.318 19% 8.569 17% 7.415 15% 6.876 14% 5.954 5.320 9% 7% 10% 3.086 2.621 1.008 1.665 1.136 1.106 1.158 1.015* 187 323* 2012 2013 2014 2015 2016 2017 1Q2017 1Q2018 Revenues Capex Capex/Revenues (*) Including advances given related to capex 15
Slide 16: Capex Analysis
Capex Analysis Strong EBITDA Generation Continue to Support Our Growth Strategy TRY mn 3,89 3,07 2,81 1,83 1,60 3.120 1,20 0,96 0,73 2.120 1.764 1.223 1.665 1.365 966 907 1.136 1.158 726 1.008 1.106 1.015* 187 323* 2012 2013 2014 2015 2016 2017 1Q2017 1Q2018 EBITDA Capex EBITDA/Capex (*) Including a
Slide 17: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken 40% SODA 60% K tons 4.791 4.464 Domestic International 4.045 4.127 3.683 3.612 2.116 2.170 2.278 2.343 44% 1.816 1.982 GLASS 56% 1.154 1.199 580 594 2012 2013 2014 2015 2016 2017 1Q2017 1Q2018 Domestic International Glass Sod
Slide 18: Company Overview
Company Overview Executive Summary History Corporate Structure Global Presence & Peers Operating Territories Corporate Governance Sustainability Risk Management Policies 18
Slide 19: Şişecam at a Glance
Şişecam at a Glance $3 Billion 4,8 Million Tons 2,3 Million Tons 21.727 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 Gl
Slide 20: 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 21: Corporate Structure
Corporate Structure 1.Şişecam, Trakya Cam and Anadolu Cam have shares on Camiş Elektrik 2.Şişecam and Trakya Cam have shares on Çayırva Cam Sanayi 3.Şişecam and Paşabahçe have shares on Camiş Ltd * Publicly traded at BIST 21 4.Çayırova Cam have shares on Cam Elyaf
Slide 22: Global Presence
Global Presence Strong Global Player with Competitive Profitability 33% Glass Revenues' Share in Total 28% 27% Owens Illinois 100% 25% 26% 29% NSG 100% 18% 20% 16% Şişecam 73% 18% 17% 17% Asahi Glass 50% 11% 11% Ardagh 36% St Gobain 26% Asahi Glass Owens Illinois St Gobain Owens Corning Ardagh NSG Ş
Slide 23: Operating Territories
Operating Territories PRODUCTION PLANTS IN TURKEY ŞİŞECAM FLAT GLASS ŞİŞECAM GLASSWARE ŞİŞECAM GLASS PACKAGING ŞİŞECAM CHEMICALS Trakya Cam Sanayii A.Ş. Paşabahçe Cam San. Ve Tic. A.Ş. Anadolu Cam Sanayi A.Ş. Soda Sanayi A.Ş. Trakya Plant - Kırklareli Kırklareli Plant Mersin Plant Soda Plant - Mersi
Slide 24: 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 25: Credit & Corporate Governance Ratings
Credit & Corporate Governance Ratings Credit Ratings MOODY’S LT FCY Rating Ba1 Stable S&P LT FCY Rating BB- Stable Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,48 from 9,44 in December 2017. As a Corporate Policy, Şişecam continues to strive for reaching the highest l
Slide 26: Sustainability
Sustainability 2015 204 2018 2016 |asen00 [12000 |sozieoo [3248800 |sss00. |stzzsa00 49910700 39700 400600 3267300 19400 56377700 |ssaznooo [44720 |seezeoo |szoti0 |ea200 |saeio400 soesna z7700 397700 4as7700 71200 SS46LACO [iliii, | Sustainable Energy Measurement J and Tracking System ‘By means oft
Slide 27: Segments’ Profile
Segments’ Profile Flat Glass Glassware Glass Packaging Chemicals 27
Slide 28: Flat Glass
Flat Glass Operations & Global Presence SHAREHOLDERS Bulgaria 2 1 Free Float; Trakya Glass Bulgaria EAD 31% Şişecam; 1 1 1 Float, & Auto Glass, Mirror & Processed 69% Slovakia Hungary Romania Laminated Line 2017 Market Shares Richard Fritz Richard Fritz Glasscorp 470K tons / year 1 1 Incapsulation I
Slide 29: Flat Glass – Trakya Cam
Flat Glass – Trakya Cam Excluding; Consolidated Financial Results1 Q1 2018: TRY 45 mn revaluation gain on fixed income securities Q1 2017: TRY 25 mn revaluation gain on fixed income securities TRY mn 4.331 2017: TRY 80 mn revaluation gain on fixed income securities 2016: TRY 284 mn one-off gain from
Slide 30: 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 packaging Şişecam’s Glassware Group presence in 3 countries with its production Ş
Slide 31: Glassware
Glassware Consolidated Financial Results Revenues Breakdown TRY mn TRY mn 1.956 1.728 1.803 19% 1.616 17% 17% 1.238 1.446 1040 15% 1.348 847 14% 14% 744 13% 13% 656 616 1.956 1.728 1.803 1.616 1.348 1.446 872 881 790 763 491 481 732 718 491 481 330 292 171 206 209 293 260 288 93 82 161 189 2012 2013
Slide 32: 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 portfolio focusing on food, alcoholic and non-alcoholic beve
Slide 33: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Excluding:; Consolidated Financial Results - 2013: TRY 100mn (Topkapı land) - 2014: TRY 120mn (Paşabahçe & Soda shares) - 2015: TRY 73mn (Soda shares) - 2016: TRY 342mn (Soda shares) + TRY 27mn (Revaluation gain on Eurobond investments) TRY mn - 2017: TRY 32mn (OMCO sha
Slide 34: 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 35: Chemicals - Soda Sanayii
Chemicals - Soda Sanayii Excluding: Consolidated Financial Results - 2014: TRY 92,7mn (subsidy/share sale; Dost Gaz & Asmaş & Paşabahçe shares) - 2015: TRY 0,4mn (Denizli Cam shares sale) TRY mn - 2016: TRY 13,5mn (revaluation gain on Eurobond investments) - 2017: TRY 43mn (Revaluation gain on Eurob
Slide 36: Appendix
Appendix 36
Slide 37: Summary Financials
Summary Financials SUMMARY BALANCE SHEET (Million TL) 2017 1Q 2018 Change Total Assets 21.307,5 22.875,6 7% Cash & Cash Equivalents 3.438,6 3.716,9 8% Financial Assets & Derivatives 1.879,6 1.981,2 5% Trade Receivables 2.338,3 2.530,9 8% Inventories 2.141,2 2.508,6 17% Equity-Pickups 712,1 779,1 9%
Slide 38: Summary Financials
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 1Q 2017 1Q 2018 Change Revenue 2.621 3.086 18% Cost of Goods Sold -1.713 -2.080 21% Gross Profit 908 1.006 11% General and administrative -209 -185 -11% Sales and marketing -316 -378 19% Research and development -14 -16 15% Other income (expen
Slide 39: 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 40: 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