Turkiye Sise ve Cam Fabrikalari A.S. · BIST:SISE
Turkiye Sise ve Cam Fabrikalari A.S — Şişecam — Q3 2022 Earnings Presentation
16 slides from Turkiye Sise ve Cam Fabrikalari A.S's earnings presentation, Oct 31, 2022
Slide 1: Earnings Release: Q3 2022 results
EARNINGS RELEASE October 31, 2022 Şişecam (BIST-100: SISE) reported financial results for the third quarter ended September 30, 2022 M. Görkem Elverici, CEO of Şişecam, commented: “2022 began with negative effects both geopolitically and macroeconomically. Geopolitical tensions, hyperinflation, rece
Slide 2: Consolidated Summary Financial Results for Q3'22
Consolidated Summary Financial Results for Q3’22 Summary Financials (TL mn) 9M'21 9M'22 YoY Q3'21 Q2'22 Q3'22 QoQ YoY Revenue 21,013 66,279 215% 8,236 23,258 26,047 12% 216% Gross Profit 7,432 25,525 243% 2,880 8,789 9,883 12% 243% Gross Margin 35% 39% 314 bps 35% 38% 38% 16 bps 298 bps EBIT 5,064 1
Slide 3: Financial Highlights (Q3'22 vs Q3'21)
Financial Highlights (Q3’22 vs Q3’21)1 Revenue came in at TRY 26Bn, up by 216% YoY (EUR 1.4Bn, up by 76% YoY in EUR terms) o Organic +168%, Inorganic +48% Gross profit was at TRY 9.9Bn, up by 243% YoY with a margin of 38% o Organic +171%, Inorganic +72% Adjusted EBITDA came in at TRY 6.2Bn, up
Slide 4: Segmental Analysis (cont'd)
Segmental Analysis (cont’d) Q3'22 9M'22 Segmental Breakdown of Adjusted EBITDA (TRY Mn) 2020 Q3'21 9M'21 2021 Q1'22 Q2'22 Q3'22 9M'22 QoQ YoY YoY Architectural Glass 1,001 671 1,938 3,372 1,772 2,223 2,105 6,100 -5% 214% 215% Auto Glass 145 16 165 103 77 159 18 254 -89% 9% 54% Glassware 551 174 693
Slide 5: Operational Highlights (Q3'22 vs Q3'21)
Operational Highlights (Q3’22 vs Q3’21) 2 Flat Glass: Architectural Glass & Auto Glass o Flat glass production, down by 3%, at 748K tons o 90% capacity utilization rate (actual output/effective capacity) o Architectural Glass Division: up by 1% in sales volume o Auto Glass Business Line: up by 9%
Slide 6: Architectural Glass
Architectural Glass: 25% share in Revenue | 33% share in EBITDA | “Second Largest Contribution to Topline Growth & Highest EBITDA Margin Generator in Q3’22” Although decelerating demand growth was visible due to high inflationary environment in our operating geographies, Architectural Glass division
Slide 7: Auto Glass
Based on the targets constituting its operational strategy, the business segment has continuously worked on adding new Auto Replacement Glass distributors in overseas markets particularly in Europe and US to further strengthen this still-new channel while its was attending to the tenders of OEMs’ ne
Slide 8: Chemicals
Sisecam Chemicals Resources LLC[1], US-based natural soda ash operations, sold 626K tons natural soda ash, down by 2% YoY. Sales were particularly supported by the domestic market thanks to strong demand. ExW natural soda ash prices continued to increase given quarterly negotiated pricing scheme in
Slide 9: Regional breakdown and profitability
Based on Şişecam consolidated figures, share of international revenue stood at 64% in Q3’22 while the rest was generated from domestic sales. Q3'22 9M'22 Regional Breakdown of Revenue 2020 Q3'21 9M'21 2021 Q1'22 Q2'22 Q3'22 9M'22 QoQ YoY YoY Revenue from Turkey Operations 62% 56% 56% 57% 54% 57% 53%
Slide 10: Debt Position (9M'22 vs 2021-end)
i. TRY 2.8Bn advance payments in relation with the investments ii. TRY 300Mn cash outflow for Refel S.p.A acquisition iii. TRY 5.1Bn (EUR 302Mn) capital expenditures, mainly in relation with; o Chemicals business line expenditures; maintenance of mining operations located in Turkey and US natural so
Slide 11: FX Position (9M'22 vs 2021-end)
Net debt was TRY 17.7Bn (USD 956Mn) vs. TRY 11Bn (USD 788Mn) in 2021. Net Debt to EBITDA was at 0.75x. FX Position (9M’22 vs 2021-end) Şişecam’s net long FX position decreased to TRY 1.2Bn (USD 66Mn) as of 9M’22-end from TRY 5.9Bn in 2021 mainly due to a decline in USD assets and a rise in EUR liabi
Slide 12: Operational Developments during and after Q3'22
Excluding From Net income: 9M’21: +TRY 23 Mn o Q3’21: +TRY 4 Mn TRY 5 Mn: Sale of Paşabahçe Store (Ankara) o Q2’21: +TRY 11 Mn TRY 11 Mn: Sale of Paşabahçe Store (İstanbul) o Q1’21: +TRY 8 Mn TRY 8 Mn: Sale CO2 emission allowances Operational Developments during and after Q3’22 Chemicals o Plann
Slide 13: Important Events during and after Q3'22
Important Events during and after Q3’22 Following the downgrade of Turkey's credit rating from "B2" to "B3" and the change of outlook from "negative" to "stable" on 12/08/2022, International Credit Rating agency Moody's Ratings has downgraded the credit rating of Türkiye Şişe ve Cam Fabrikaları A.
Slide 14: Appendix
Appendix Sub-Segmental Breakdown of Revenue 2020 Q3'21 9M'21 2021 Q1'22 Q2'22 Q3'22 9M'22 Architectural 23% 28% 28% 29% 29% 27% 25% 27% Auto Glass & Encapsulation 11% 8% 11% 10% 7% 7% 5% 7% Glassware 15% 16% 15% 15% 11% 11% 10% 11% Glass Packaging 26% 24% 24% 23% 16% 18% 21% 19% Chemicals 20% 17% 18
Slide 15: Regional Breakdown Adjusted EBITDA Margin
Regional Breakdown Adjusted EBITDA Margin 2020 Q3'21 9M'21 2021 Q1'22 Q2'22 Q3'22 9M'22 Turkey 44% 28% 33% 37% 37% 33% 31% 33% Foreign Operations 19% 20% 22% 19% 19% 22% 17% 19% Russia, Ukraine and Georgia* 11% 11% 9% 9% 5% 5% 5% 5% Europe* 8% 7% 11% 9% 7% 10% 5% 7% US* 7% 6% 6% 6% Other* 0% 2% 1% 1
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