Arcelik A.s. · BIST:ARCLK
Arcelik A.s — Q2 2021 Earnings Presentation
24 slides from Arcelik A.s's earnings presentation, 2021
Slide 1: 2Q21 Financial Results
2Q21 Financial Results Sensitivity: Public
Slide 2: 2Q21 Highlights
Demand remained strong, supported revenue growth 2Q21 together with pricing… Profitability challenged by the HIGHLIGHTS significant upsurge in the raw material prices… TRY14.5bn Robust top line growth of 86% y/y & 12% q/q Revenue Strong demand continued in many markets following 1Q21 9.8% Lower prof
Slide 3: Key Factors: Sales / Margins
2Q21 Financial Results KEY FACTORS SALES / MARGINS REVENUE GROWTH GROSS MARGIN EBITDA MARGIN 86% 30.2% 9.8% Unit growth in both Turkey & International markets Continued severe increase in raw material prices (q/q & y/y) Lower gross profit due to higher raw material cost Price increases Lower capacit
Slide 4: Operational Performance
Operational Performance 2Q21 Financial Results Sensitivity: Public
Slide 5: Arçelik Continued to Outperform Turkish MDA6 Market in 2Q21
2Q21 Financial Results ARÇELİK CONTINUED TO OUTPERFORM TURKISH MDA6 MARKET IN 2Q21 MDA6 AIR CONDITIONER TELEVISION ARÇELİK ARÇELİK ARÇELİK 23% (5%) (31%) MARKET MARKET MARKET 16% 7% (24%) TURKISH MDA6 MARKET GROWTH vs ARÇELİK (% y/y) ARÇELİK y/y growth (%) TURKEY y/y growth (%) 51% 54% 40% 44% 33% 1
Slide 6: Strong Demand Remained in 2Q21 However Normalizing After Lockdown Ends in Europe
2Q21 Financial Results STRONG DEMAND REMAINED IN 2Q21 HOWEVER NORMALIZING AFTER LOCKDOWN ENDS IN EUROPE Western Europe Eastern Europe W. Europe E. Europe* France Russia Germany U.K. Poland Italy Spain Romania Belgium Ukraine Austria -25% -15% -5% 5% 15% 25% 35% 45% -20% -10% 0% 10% 20% 30% 40% YoY U
Slide 7: Arçelik Continued to Benefit from the Strong Demand in Europe
2Q21 Financial Results ARÇELİK CONTINUED TO BENEFIT FROM THE STRONG DEMAND IN EUROPE Arçelik Western Europe Highlights Arçelik Eastern Europe Highlights 31% • Strong top-line growth in EUR terms y/y • Double-digit top-line growth in EUR terms in 2Q21 14% Share in total thanks to unit growth & pricin
Slide 8: Resilient Regional Performance Underlying the Importance of Geographical Diversification
2Q21 Financial Results RESILIENT REGIONAL PERFORMANCE UNDERLYING THE IMPORTANCE OF GEOGRAPHICAL DIVERSIFICATION 5% AFRICA 12% APAC (Share in total revenue) (Share in total revenue) • Strong unit growth resulted in more than doubled revenue growth in EUR • Higher contribution from the region vs 1Q21
Slide 9: The Upward Trend in Raw Material Prices Still Continues
2Q21 Financial Results THE UPWARD TREND IN RAW MATERIAL PRICES STILL CONTINUES Average Metal Prices Index - Market Average Plastic Prices Index - Market 2Q21 134,7 2Q21 171,5 1Q21 108,3 1Q21 139,6 Info-Text 2020 79,1 2020 98,7 4Q20 90,2 4Q20 108,5 3Q20 77,3 3Q20 96,6 2Q20 71,6 2Q20 88,5 • Supply sho
Slide 10: Sales Performance
Sales Performance 2Q21 Financial Results Sensitivity: Public
Slide 11: Strong & Balanced Growth Contribution from Domestic & International Markets
2Q21 Financial Results STRONG & BALANCED GROWTH CONTRIBUTION FROM DOMESTIC & INTERNATIONAL MARKETS TRYm 2,397 2Q21 Turkey 2,761 Info-Text 3,4% 5,4% 52.3% Western Europe 1,544 y/y 9,745 5,0% 60.2% 3,1% y/y 3,2% 2,6% 5,2% 33,0% CIS&Eastern Europe 1,9% 47.6% 5,3% 3,5% y/y 4,587 41,6% Africa 14,2% 2Q20
Slide 12: Financial Performance
Financial Performance 2Q21 Financial Results Sensitivity: Public
Slide 13: Summary Financials
2Q21 Financial Results SUMMARY FINANCIALS TRYm 2Q21 2Q20 Δ y/y 1Q21 Δ q/q 6M21 6M20 Δ y/y Revenue 14,534 7,832 86% 12,984 12% 27,518 15,600 76% Gross Profit 4,393 2,408 82% 4,483 (2%) 8,876 4,876 82% EBIT 1,047 572 83% 1,545 (32%) 2,591 1,161 123% Profit Before Tax 584 526 11% 1,294 (55%) 1,878 834
Slide 14: Healthy Leverage Sustained Despite the Cash Outs from Acquisitions
2Q21 Financial Results HEALTHY LEVERAGE SUSTAINED DESPITE THE CASH OUTS FROM ACQUISITIONS 2.02* Currency Effective Interest Rate Original Currency TL Equivalent Net Debt /EBITDA p.a. (%) (mn) (mn) 1.88 TL 16.2% 4,884 4,884 EUR 0.9% 248 2,567 1.54* USD 2.0% 18 154 1.42 GBP 0.7% 6 73 ZAR 5.5% 1,010 61
Slide 15: Arçelik's Approach of Placing Sustainability at the Centre of Its Business Rewarded
2Q21 Financial Results ARÇELİK’S APPROACH OF PLACING SUSTAINABILITY AT THE CENTRE OF ITS BUSINESS REWARDED Use of Proceeds Greenbond • Energy Efficient Products EUR350mn EUR1.6bn • Eco-efficient and/or Circular Economy Adapted Products Amount Issued Demand • Energy Efficiency in Production 5 Years 1
Slide 16: Raw Material Prices Hit EBITDA Margin, Improved CAPEX & Flat WC Ratio Helped FCF
2Q21 Financial Results THE UPSURGE IN THE RAW MATERIAL PRICES HIT EBITDA MARGIN, IMPROVED CAPEX & FLAT WC RATIO HELPED BETTER FCF vs. 1Q21 EBITDA Margin Working Capital / Sales* 1Q21 2Q21 2020 1Q21 2Q21 GP Margin OPEX/Sales Non-cash Receivables Inventories Payables Others Items CAPEX** / Sales Free
Slide 17: Guidance
Guidance 2Q21 Financial Results Sensitivity: Public
Slide 18: 2021 Guidance
2Q21 Financial Results 2021 GUIDANCE Revenue • Turkey (in TRY) c.30% growth • International (in FX) c.35% growth • Consolidated (in TRY) c.50% growth EBITDA Margin c.11.0% WC/Sales c.25% CAPEX c.220 mio EUR Sensitivity: Public 18
Slide 19: Appendix
Appendix 2Q21 Financial Results Sensitivity: Public
Slide 20: Margins by Segments
2Q21 Financial Results MARGINS BY SEGMENTS Consolidated 25.000 34,5 35,0 20.000 30,7 30,2 30,0 14.534 15.000 12.984 25,0 10.000 20,0 7.832 5.000 15,0 2020 Q2 2021 Q1 2021 Q2 Revenue Gross Margin (%) White Goods Consumer Electronics Other 36,5 1.984 33,6 21,7 21,3 22,0 17.484 35,0 32,9 35,0 31,4 1.78
Slide 21: Close Watch on FX Risk, Proactively Taken Actions
2Q21 Financial Results CLOSE WATCH ON FX RISK, PROACTIVELY TAKEN ACTIONS 400 3,9% 6,0% 4,0% 200 TRYm Before Hedge Hedged Position Net Position 2,0% 0 EUR (2,383) 2,533 150 0,7% 0,0% -200 0,4% 0,3% 0,3% USD (3,774) 3,542 (232) -0,5% -1,1% -1,2% -1,2% -1,2% -2,0% -400 -2,1% -2,4% GBP 1,398 (1,356) 43
Slide 22: Contacts
2Q21 Financial Results CONTACTS Polat Şen Özkan Çimen Alper Gür Öktem Söylemez CFO Finance & ERM Director Investor Relations Manager Senior Investor Relations Specialist (+90) 212 314 34 34 (+90) 212 314 39 01 (+90) 212 314 31 47 (+90) 212 705 96 81 Investor Relations App www.arcelikglobal.com inves
Slide 23: Disclaimer
2Q21 Financial Results DISCLAIMER This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are
Slide 24: Thank You!
Thank You! Sensitivity: Public