Slide 1: Investor Presentation 9M'21
ŞİŞECAM Investor Presentation 9M’21
Slide 2: Content
Content 9M’21 & Historical Key Financial Results Page 3-4 9M’21 & Historical Segmental Results Page 5-7 9M’21 & Historical Regional Results Page 8-9 9M’21 & Historical Operational Results Page 10-13 Liquidity & Capital Allocation Page 14-18 Sustainability Page 19-27 Şişecam at a Glance & Risk Manage
Slide 3: 9M'21 Key Financial Results
9M’21 Key Financial Results Revenue (TRY mn) Gross Profit (TRY mn) EBITDA (TRY mn) Net Income After Minority Interest (TRY mn) 44% 21,013 8,236 14,632 35% 31% 27% 5,798 19% 7,432 23% 7,091 5,711 2,880 4,072 4,220 4,470 2,000 9% 3,389 1,348 1,888 2,617 1,525 2,085 1,384 5,686 1,384 4,615 1,086 720 86
Slide 4: Historical Financial Results
Historical Financial Results TRY mn 27% 0.3 25% 26% 24% 23% 23% 22% 0.25 21,341 21,013 0.2 18,059 15,550 14,632 0.15 11,318 8,569 0.1 4,962 5,711 4,033 4,298 3,389 0.05 1,919 2,810 0 2016 2017RS 2018 2019 2020 9M'20 9M'21 Revenue Adjusted EBITDA Adjusted EBITDA Margin 2016 2017RS 2018 2019 2020 9M'2
Slide 5: 9M'21 Segmental Revenue and EBITDA
9M’21 Segmental Revenue and EBITDA Architectural Glass Auto Glass Glassware Glass Packaging Chemicals (TRY mn) (TRY mn) (TRY mn) (TRY mn) (TRY mn) 31% 31% 31% 5,965 29% 25% 5,054 22% 15% 2,338 15% 2,338 3,887 3,981 3,255 7% 3,054 3,161 1,434 1,424 3% 1,434 1,987 2,227 1,306 1,090 2,109 1,813 1,535 6
Slide 6: 9M'21 Segmental Revenue and EBITDA
9M’21 Segmental Revenue and EBITDA Diversified Revenue Mix Revenue Bridge (TRY mn) 3% 19% 28% 9M '21 24% 11% 15% Diversified EBITDA Mix Adjusted EBITDA Bridge (TRY mn) 1% 27% 34% 9M '21 3% 23% 12% 6
Slide 7: Historical Segmental Financial Results
Historical Segmental Financial Results Flat Glass (TRY mn)* Glassware (TRY mn) 32% 33% 37% 30% 7,407 29% 34% 34% 33% 27% 31% 25% 6,651 25% 5,875 21% 20% 15% 4,331 18% 17% 15% 15% 14% 3,016 3,205 3,080 2,529 1,920 2,025 2,000 1,956 1,400 1,482 1,414 1,803 1,100 1,142 888 1,069 617 943 1,036 564 661 5
Slide 8: 9M'21 Regional Results
9M’21 Regional Results Geographic Revenue Mix Regional Breakdown of Exports from Turkey 3% 2% 15% 10% 33% 9% 9M '21 5% 9M'21 52% 26% 9% 23% 13% Sales in Turkey Exports from Turkey Europe Middle East North America Europe Russia, Ukraine and Georgia South America Asia North Africa Other Other Top 10 E
Slide 9: Historical Regional Results
Historical Regional Results TRY mn 21,341 21,013 3% 3% 18,059 21% 3% 26% 15,550 2% 22% 14% 23% 15% 14% 11,318 0% 22% 14% 22% 8,569 23% 24% 0% 14% 23% 20% 11% 24% 23% 40% 37% 33% 39% 40% 46% 2016 2017 2018 2019 2020 9M'21 Sales in Turkey Exports from Turkey Russia, Ukraine and Georgia Europe Other 9
Slide 10: 9M'21 Operational Results
9M’21 Operational Results Glass Production Soda Ash Production Soda Ash Sales Volume Chromium Chemicals K tons K tons Sales Volume K tons 1,675 1,746 K tons 4,138 1,741 1,590 3,529 611 655 1,881 1,617 1,280 102 1,206 92 1,064 1,091 89 1,912 2,257 81 384 461 11 13 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21
Slide 11: Historical Production Results - Glass
Historical Production Results - Glass K tons Turkey; 58% Turkey; 58% Turkey; 57% Turkey; 57% Turkey; 54% Non-Turkey; 42% Non-Turkey; 42% Non-Turkey; 43% Non-Turkey; 43% Non-Turkey; 46% 5,052 Turkey; 55% 4,947 Non-Turkey; 45% 1% 4,857 4,791 1% 1% 1% 4,464 1% 4,138 1% 41% 43% 40% 47% 41% 42% 7% 8% 7%
Slide 12: Historical Production & Sales Volume - Chemicals
Historical Production & Sales Volume - Chemicals K tons K tons Soda Ash Production Soda Ash Sales Volume 2,278 2,343 2,361 2,380 2,327 2,307 2,169 2,223 2,273 2,127 39% 1,675 1,746 1,741 40% 41% 40% 1,590 38% 64% 76% 77% 36% 38% 78% 76% 73% 76% 60% 59% 60% 61% 62% 64% 62% 36% 22% 24% 23% 24% 24% 27%
Slide 13: Installed Capacities
Installed Capacities Architectural Glass Glassware Glass Packaging Soda Ash 6% 3%2% 5% 6% 12% 34% 28% 3,5mn 558K 2,7mn 3,6mn 39% tons/year tons/year 44% tons/year 51% tons/year 57% 54% 13% 6% 13% 10% 17% Turkey Russia Bulgaria Turkey Russia Bulgaria Egypt Turkey Russia Ukraine Georgia Turkey Bosnia
Slide 14: Debt Position
Debt Position Liquidity and Debt Structure (TRY mn) Net Debt Bridge (TRY mn) 18,554 Net Debt: USD 318mn 2,815 Net Debt Net Debt/EBITDA 3,359 0.35x Marketable Sec. 12,380 Cash & Cash Equ. 62% Fixed Int. Rate vs. 38% Variable Int. Rate 9M'21 Term Structure of Gross Debt (TRY mn) 18,554 USD 1% RUB 72%
Slide 15: Historical Debt & Liquidity Results
Historical Debt & Liquidity Results TRY mn 18,554 17,142 15,846 3,359* 3,876* 2,963* 8,009 8,369 9,355 12,380 5,779 5,897 2,606* 1,085* 1,878* 3,164 3,205 3,439 4,513 3,911 2,239 2,815 1,489 580 2016 2017 2018 2019 2020 9M'21 Net Debt Cash and cash equivalents Marketable Securities Net Debt/EBITDA**
Slide 16: Historical FX Position
Historical FX Position 9M’21 USD 1,352 mn TRY 587 mn EUR -342 mn TRY mn 2016 2017 2018 2019 2020 9M'21 11,957 9,814 5,431 1,540 1,522 788 587 56 73 678 176 186 375 -747 -378 -2,115 -3,626 -3,522 USD EUR Other Currencies 16
Slide 17: FCF & Capex
FCF & Capex (TRY mn) 9M'20 9M'21 Change CAPEX Breakdown (9M’21) Net Profit 2,148 4,152 2,004 Non Cash Items 1,073 1,541 468 8% Changes in Working Capital -899 -1,828 -929 Cashflow from operations 2,322 3,865 1,543 28% 19% Interest received,net -667 -690 -23 Dividend paid,net -397 -395 1 Taxes paid -
Slide 18: Historical Capex Analysis
Historical Capex Analysis TRY mn 16% 14% 14% 9% 8% 7% 6% 21,341 21,013 18,059 15,550 14,632 11,318 8,569 5,989 6,528 4,884 4,868 4,430 3,120 2,221 2,890 2,120 1,873 1,158 897 1,091 1,339 2016 2017 2018 2019 2020 9M'20 9M'21 Revenue EBITDA Capex Capex/Revenues Adjusted EBITDA/ 1.8 3.5 2.2 1.7 3.2 3.1
Slide 19: Sustainability
+ We published our first GRI (Global Reporting Initiative) Sustainability + We established the Sustainability Committee + We were established to respond to the needs of WE oieccam a + We formed our Climate Change Coordination Board + We ranked 19
Slide 20: Our Sustainability Strategy in 3 pillars
Our Sustainability Strategy in 3 pillars 20
Slide 21: Our Impacts on Priority Areas
Our Impacts on Priority Areas Şişecam’s New Policy on Circular Economy and Waste #1: Continuously improve Şişecam’s Standard in Waste Management #2: Value Circular Economy and Saving Opportunities Saved 256,000 Circular #3: Treat waste as a material or energy resource tons of glass cullet Economy #4
Slide 22: Our Impacts on Priority Areas
Our Impacts on Priority Areas Women Employees: Women Women on BoD: 23 % at Every 30 % Leader in the Glass Process Diversity & Inclusion at Sector Workplace • 18,830 people have been provided • Şişecam Çayırova Sports Club in Turkey with healthcare services in India has supported 8,000 children from
Slide 23: Our Impacts on Priority Areas
Our Impacts on Priority Areas Combatting Climate Change Sustainable • Strategy on Combatting • Lightweight-Glass Packaging Products Climate Change Design • Low-e Glass Products • 14% less CO2 • Roof-top Solar Energy Digitalized Projects Production • V-Block Chain with Healthy Living & Social Comfort
Slide 24: CareforNext 2022-2030
CareforNext ~ “2 “Of .2022-2030 .. — EMPOWER SOCIETIES VISION: = |.) .. 3 STRANSFORM L}VES PROTECT the Planet ¢ Climate Change ¢ Water Use * Circular Production
Slide 25: Sustainability: Corporate Governance
Sustainability: Corporate Governance Corporate Governance Rating of Sisecam was revised to 9.538 from 9.534 in December 2020. As a Corporate Policy, Şişecam continues to strive for reaching the highest level of Corporate Governance practices, where its heritage of «good corporate governance practice
Slide 26: Sustainability: Progress
Sustainability: Progress Şişecam Sustainability Strategy Unit 2020 (2017-2022) Reuse of 5% of treated industrial wastewater % Above target Using at least 20% recycled (outer cullet) glass in Glass Packaging production % Above target Reduction NOx emissions through primary measures in at least 10 gla
Slide 27: Activities in 2021 4th Quarter
Activities in 2021 4th Quarter ŞİŞECAM Products’ Life Cycle Science-based Emission Analysis (LCA): Reduction Target: Şişecam has established Project teams and initiated studies to Şişecam has initiated a project to specify science-based targets on obtain an "Environmental Product Declaration" to it’
Slide 28: Şişecam at a Glance
Şişecam at a Glance $3 Billion 4.9 Million Tons 2.4 Million Tons ~22K Presence in 14 Revenue Glass Production Soda Production Employees Countries 8th Synthetic Soda Leader Producer in 5th Flat Glass 2nd Glassware 5th Glass Packaging 4th Chromic Acid Ash Producer Basic Chromium Producer Globally Prod
Slide 29: 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 30: Appendix
Appendix • Operating Structure • Production Facilities • FX Exposure • COGS Analysis • Natural Gas Prices & Profitability • Summary Balance Sheet • Summary Income Statement • Covid-19 Impact & Our Response • Post Covid Potential Benefits • New Implementations • V-Block Technology – Paşabahçe • One Ş
Slide 31: Şişecam Operating Structure
Şişecam Operating Structure İŞ BANK ŞİŞECAM Architectural Glass Auto Glass Glassware Glass Packaging Chemicals Other Şişecam Flat Glass India Şişecam Glass Şişecam Otomotiv A.Ş. Paşabahçe Camiş Madencilik Şişecam Enerji Private Ltd. Packaging B.V. Mağazaları Mina Oxyvit Trakya Investment B.V. Paşaba
Slide 32: Şişecam Production Facilities
Şişecam Production Facilities FLAT GLASS AUTO GLASS CHEMICALS GLASS / GLASSWARE SODA CHROMIUM AUTO GLASS ENCAPSULATION PACKAGING GLASS FIBER ARCHITECTURAL GLASS CHEMICALS CHEMICALS TURKEY 4 PLANTS 1 PLANT 4 PLANTS 3 PLANTS 1 PLANT 2 2 PLANTS 5 1 PLANT BULGARIA 1 PLANT 1 PLANT 1 PLANT 1 PLANT ITALY 2
Slide 33: Fx Exposure – 9M'21
Fx Exposure – 9M’21 Architectural Glass Auto Glass Revenue 13% 32% 43% 4% 8% Revenue 79% 13% 7% 1% COGS 14% 44% 34% 7% 1% COGS 7% 68% 18% 4% 3% USD EUR TRY RUB Other USD EUR TRY RUB Other Glassware Glass Packaging Revenue 12% 22% 47% 11% 8% Revenue 6% 19% 39% 32% 4% COGS 2%4% 45% 12% 37% COGS 22% 40
Slide 34: COGS Analysis- 9M'21
COGS Analysis- 9M’21 Architectural Glass 41% 30% 6% 7% 10% 6% Auto Glass 58% 7% 17% 5% 13% Glassware 43% 13% 7% 30% 7% Glass Packaging 38% 13% 9% 11% 13% 16% Chemicals 38% 38% 16% 5% 9% 16% 6% 5% 9%26% 6% 26% 12% 42% 9% Şişecam 13% 7% 17% Input & Materials & Packaging Ngas Electricity Labor Deprecia
Slide 35: Natural Gas Prices & Profitability – 9M'21
Natural Gas Prices & Profitability – 9M’21 Natural Gas Price Changes 2017- December 8% Hike for Electricity Producers 2018 - January 13.6% Hike for Industrials 2018 - January 4.8% Hike for Electricity Producers 2018 - April 9.7% Hike for Industrials 2018 - April 9.7% Hike for Electricity Producers 2
Slide 36: Historical Natural Gas Prices & Profitability
Historical Natural Gas Prices & Profitability Actual Turkey Ngas Expense % in total COGS Actual Turkey Ngas Expense % in total COGS ŞİŞECAM 13% 14% 12% 12% 12% 12% 12% 11% 10% 9% 10% Q1'19 H1'19 9M'19 2019 Q1'20 H1'20 9M'20 2020 Q1'21 H1'21 9M'21 36
Slide 37: Summary Balance Sheet
Summary Balance Sheet SUMMARY BALANCE SHEET (Million TRY) 2020 9M'21 Change Total Assets 44,228 52,242 18% Cash & Cash Equivalents 9,355 12,380 32% Financial Assets & Derivatives 3,971 3,913 -1% Trade Receivables 4,353 5,958 37% Inventories 4,181 5,401 29% Equity-Pickups 1,001 1,318 32% Property, pl
Slide 38: Summary Income Statement
Summary Income Statement SUMMARY INCOME STATEMENT (Million TRY) 9M'20 9M'21 Change Revenue 14,632 21,013 44% Cost of Goods Sold -10,162 -13,581 34% Gross Profit 4,470 7,432 66% General and administrative -842 -988 17% Sales and marketing -1,915 -2,657 39% Research and development -42 -76 79% Other o
Slide 39: Covid-19 Impact & Our Response
Covid-19 Impact & Our Response Health & Safety • Emergency Coordination Committee was established • Highest-level of preventative measures in accordance with WHO, CDC and Ministry of Health directives • Remote work, planned annual leaves and short time work Impacts on Our Operations • Supply-chain a
Slide 40: Post Covid Potential Benefits
Post Covid Potential Benefits Flat Glass Increase in potential of energy glasses and export of other flat glass products Auto Glass Replacement market in Europe and USA, OEM market in Europe Glassware Glassware produced with V-Block technology Glass Packaging Increase in export potential to Europe -
Slide 41: Şişecam: New Implementations
Şişecam: New Implementations Payment Management – Fraud Detection MT940 (Automatic Reconciliation) high secure SWIFT channel Payments are generated in ERP host to host connection After the execution approvals and fraud controls in Kyriba, payments are transmitted to the banks through high security S
Slide 42: Şişecam: New Implementations
Şişecam: New Implementations Collaboration with Fintech Firms Investor Relations Mobile Application Within the scope of digital collection solutions in Turkey; virtual pos solutions, direct debiting - Mobile toolkit to examine earnings results, system at multiple banks and instant bank account trace
Slide 43: V-Block Technology - Paşabahçe
V-Block Technology - Paşabahçe • Neutralizes viruses and bacteria on glass • Offered in Turkey & in export markets surfaces • Special chemical formula and hot coating • Further plans to implement this method technology in glass packaging, architectural glass and glass for home • Registered Trademark
Slide 44: One Şişecam – What is Next?
2014-2020 Q1-Q3 2020 Q4 2020 2021 4 = = Shareholding Corporate — SIMPLIFICATION OF THE REMAINING CORPORATE STRUCTUI Structure menue LOCATED IN & OUTSIDE OF TURKEY Simplification ONE e SISECAM Organization Supply Chain Center of Excellence eve © Sales & Marketing Organization IS LIVE Selling & Market
Slide 45: One Şişecam – Strategic Framework and Focus Areas
One Şişecam – Strategic Framework and Focus Areas 45
Slide 46: 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 47: 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 Investor Relations Team SC_IR@sisecam.com Hande Özbörçek, IR Director,