Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — 9M 2016 Earnings Presentation
37 slides from Turkiye Sise Ve Cam Fabrikalari A.s's earnings presentation, 2016
Slide 1: 9M 2016 Results Investor Presentation
9M 2016 RESULTS Investor Presentation
Slide 2: Contents
Contents 3 Financial & Operational Overview 19 Company Overview 27 Segments’ Profile 2
Slide 3: Financial & Operational Overview
Financial & Operational Overview 9M 2016 Highlights Key Financial Indicators Revenue & Cash Generation Leverage, Debt Profile & FX Risk Capex Analysis Operational Excellence Production Breakdown 3
Slide 4: 9M 2016 Highlights
9M 2016 Highlights Flat Glass Partial division of auto-glass business in Lüleburgaz Full consolidation of Bulgarian operations EUR 90 Million bid offer for Italian Sangalli Vetro Porto TRKCM’s stake sale of Soda Sanayii A.Ş. 23% discount in April, 10% discount in July on Bulgarian natural gas prices
Slide 5: Key Financial Indicators
Key Financial Indicators TRY mn 9M2015 9M2016 YoY Growth Revenue 5.389 6.007 11% Excluding Income generated from Beyoğlu Building Sale – TRY 62 Million in 9M 2015 Gross Profit 1.579 1.821 15% EBIT 765 806 5% 9M 2015 9M 2016 Growth EBITDA 1.305 1.393 7% Adjusted EBIT 703 806 15% Adjusted EBIT Margin
Slide 6: Revenue & Cash Generation
Revenue & Cash Generation Sustained Growth in Revenue with Preserved EBITDA Margin TRY mn 7.415 6.876 4.979 5.954 6.007 5.320 5.389 1.267 1.764 1.223 1.365 1.305 1.393 966 2011 2012 2013 2014 2015 9M2015 9M2016 Revenue EBITDA EBITDA Margin EBITDA Margin 25% 18% 21% 20% 24% 25% 22% 6
Slide 7: Segments' Contribution to Revenue
Revenue & Cash Generation Segments’ Contribution to Revenue Balanced Contribution of the Segments in Conformity with Previous Years’ Results 9M2015 9M2016 4% 4% 19% 33% 19% 34% 21% 22% 22% 21% Flat Glass Glassware Glass Packaging Chemicals Other * 7 * Consists of energy trade of Şişecam
Slide 8: Segments' Contribution to EBITDA
Revenue & Cash Generation Segments’ Contribution to EBITDA Balanced Contribution of the Segments in Conformity with Previous Years’ Results 9M2015 9M2016 4% 9% 25% 30% 33% 31% 15% 19% 12% 21% Flat Glass Glassware Glass packaging Chemicals Other * 8 * Consists of energy trade of Şişecam
Slide 9: Geographical Contribution to Revenue
Revenue & Cash Generation Geographical Contribution to Revenue TRY Billion 9M 2015 9M 2016 5,0 5,3 5,9 6,9 7,4 22% 23% 28% 28% 28% 28% 30% 48% 48% 26% 24% 24% 23% 23% 24% 22% 52% 53% 49% 49% TRY 5,4 Billion TRY 6 Billion 47% 2011 2012 2013 2014 2015 Domestic Export from Turkey Sales from Foreign Ope
Slide 10: Geographical Contribution to Revenue
Revenue & Cash Generation Geographical Contribution to Revenue Operations in Turkey Foreign Operations TRY 6 bn TRY 4,2 bn TRY 1,8 bn Revenue in Revenue Revenue 9M 2016 31% 36% Russia Export Ukraine Georgia Domestic Europe 64% 69% 10
Slide 11: Exports from Turkey Top Countries
Revenue & Cash Generation Exports from Turkey Top 10 Countries Exports of USD 508 Million in 9M 2016 to more than 142 countries Italy 13% Egypt 7% North & Asia Middle Europe China 5% America 13% 49% France 5% 7% Far East Middle Bulgaria 5% East 1% Africa 15% Saudi Arabia 4% Oceania 10% UK 4% 1% Sout
Slide 12: Leverage
Leverage Sustained Capital Base & Conservative Leverage Net Debt / EBITDA came within the comfort zone of 1,25 Net Debt (TRY mn) 1.631 1.470 1.498 * 1.469 1.068 968 596 2011 2012 2013 2014 2015 9M 2015 9M 2016 Net Debt/EBITDA 0,47 1,00 1,33 0,78 0,83 0,94 0,79 Net Debt/Equity 0,12 0,17 0,25 0,15 0,1
Slide 13: Leverage: Solid Liquidity
Leverage Solid Liquidity 4.614 4.983 4.903 TRY mn 3.843 3.584 3.144 3.485 2.761 2.775 2.196 2.128 1.953 1.600 1.160 673 * 1.631 1.470 1.498 1.469 968 1.068 596 2011 2012 2013 2014 2015 9M 2015 9M 2016 Net Debt Gross Debt Cash & Cash Equivalents Cash & Cash Equ. Marketable Securities Net Debt *Invest
Slide 14: Debt Profile
Debt Profile TRY mn up to 1 years 1-2 years 2-3 years 3-4 years 4-5 years 5 years - Total % in Currency USD* 16% 1% 1% 48% 1% 1% 1.940 38% EUR* 53% 19% 11% 5% 2% 3% 2.186 40% RUR* 29% 3% 1% 1% 0% 0% 662 21% UAH 1% 0% 0% 0% 0% 0% 42 1% TL 1% 0% 0% 0% 0% 1% 74 0% Total 1.362 3.176 4.903 % in Maturity
Slide 15: FX Risk
FX Risk On Balance Sheet Benefiting from net long FX position as most of its cash is held in hard currencies TRY mn 2011 2012 2013 2014 2015 9M 2015 9M 2016 1.087 1.132 906 605 551 532 323 242 104 114 42 -6 16 30 27 -235 -160 -185 -527 -775 -874 15 USD EUR Other Currencies
Slide 16: Capex Analysis
Capex Analysis Lower Capex/Revenue Sustained After Heavy Investment Cycle TRY mn 7.415 6.876 5.954 5.320 6.007 4.979 5.389 1.665 1.008 1.136 1.106 798 799 830 2011 2012 2013 2014 2015 9M2015 9M2016 Revenues Capex Capex/Revenues Capex/ Revenues 17% 19% 28% 17% 15% 15% 13% 16
Slide 17: Capex Analysis
Capex Analysis Strong EBITDA Levels Continue to Support Our Growth Strategy TRY mn 1.764 1.665 1.365 1.393 1.267 1.305 1.223 966 1.136 1.106 1.008 830 799 798 2011 2012 2013 2014 2015 9M2015 9M2016 EBITDA Capex EBITDA/ Capex 1,53 0,96 0,73 1,20 1,60 1,63 1,74 17
Slide 18: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken SODA 40% K tons 60% 4.154 4.235 3.757 3.683 3.612 3.437 3.340 3.154 Domestic International 2.693 2.116 2.170 1.898 1.816 1.982 1.702 1.633 1.695 1.347 GLASS 43% 57% 2009 2010 2011 2012 2013 2014 2015 9M2015 9M2016 Glass Soda
Slide 19: Company Overview
Company Overview Executive Summary History Corporate Structure Global Presence & Peers Operating Territories Corporate Governance & Sustainability Risk Management Policy 19
Slide 20: Executive Summary
Executive Summary Şişecam is a conglomerate in Turkey, founded by İşbank in 1935 Operational in: Flat glass , Glass Packaging, Glassware and Chemicals Present in 13 countries: Turkey, Russia, Bulgaria, Egypt, Georgia, Bosnia Herzegovina, Romania, Ukraine, Italy, Germany, Slovakia, Hungary and India
Slide 21: Şişecam History
Şişecam History 2014’s Onwards To Be Among The Top 3 Producers Globally 2000’s Regional leadership achieved Global Vision Higher market share regionally Reaching World glass volumes 1990’s Efficient Management Structure Investment Structuring Investments Abroad Expansion of product range 1960-1990 S
Slide 22: Corporate Structure
Corporate Structure 22 *Publicly Traded at BIST-100
Slide 23: Global Presence
Global Presence Strong Global Player with Competitive Profitability 30% 26% 26% 26% Glass Revenues' Share in Total 25% NEG 100% 21% 20% Owens Illinois 100% 18% 23% 21% NSG 100% 19% 19% 19% Şişecam 77% 16% Owens Corning 64% 10% Asahi Glass 54% 10% Ardagh 51% St Gobain 25% Asahi Glass Owens Illinois S
Slide 24: Operating Territories
Trakya Polatli Plant - Ankara Trakya Plant - Luleburgaz Otocam Plant - Lileburgaz Mersin Plant Be ‘Trakya Yenisehir Cam San. A.$. Yenisehir Plant - Bursa RUS AD. _RUS AD Past 9° ‘Trakya Cam San. AS. SiSECAM GLASSWARE OQ comorsrovers a Kirklareli Plant Pasabahce Cam San. ve Tic. A.S. Mersin Plant Esk
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 Negative Corporate Governance & Sustainability Şişecam was included in the BIST Sustainability Index. The index comprises publicly traded companies with a high rating on corporate sustainabilit
Slide 26: 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 27: Segments' Profile
Segments’ Profile Flat Glass Glassware Glass Packaging Chemicals 27
Slide 28: Flat Glass
Flat Glass Trakya Cam’s Footprints Operations & Global Presence 2,7mn tons of Total Basic Flat Glass Capacity Operations of Trakya Cam: Production of Flat glass, figured glass, coated with 11 operating lines glass, mirror glass, laminated glass, solar glass, home appliances, automotive & encapsulate
Slide 29: Flat Glass – Trakya Cam
Flat Glass – Trakya Cam Consolidated Financial Results* Production Breakdown* a)Excluding TRY 129,7mn b) Excluding TRY TRY mn 284mn one-off gain one-off gain from the 35% K Tons sale of Paşabahçe and from the sale of SODA shares in 2014 SODA shares on 26% May, 2016 b)21% Including Bulgarian Operatio
Slide 30: Glassware
Glassware Ownership of Paşabahçe Operations & Global Presence Islamic Development Bank; 0,55% Operations of Şişecam’s Glassware Group Glassware: Production of EBRD; 15% automated, handmade, heat resistant, crystalware, paper and cardboard packaging (not consolidated in Paşabahçe) Şişecam’s Glassware
Slide 31: Glassware
Glassware Consolidated Financial Results Revenues Breakdown TRY mn TRY mn 17% 17% 14% 1.728 14% 1.616 13% 13% 1.446 1.315 1.348 1.290 1.147 1.221 1.728 744 847 1.616 517 616 656 1.348 1.446 477 555 1.221 1.290 737 581 881 441 434 505 413 415 670 798 732 790 872 666 553 171 206 209 293 205 176 2010 2
Slide 32: Glass Packaging
Glass Packaging ANACM’s Footprints Operations & Global Presence 2,3 mn tons of aggregate glass packaging production Şişecam’s lead brand name in the glass packaging segment with a portfolio capacity in 4 different countries with 10 production composed of glass containers for food, alcoholic and non-
Slide 33: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Consolidated Financial Results* EBITDA Margins Adjusted to One-off Gains One-off gains from subsidiary and asset sales; EBITDA Margins 49% TRY mn - 2013: TRY 100mn (Topkapı land) 49% - 2014: TRY 120mn (Paşabahçe & Soda shares) - 9M 2015: TRY 73mn (Soda shares) - 9M 2016
Slide 34: Chemicals
Chemicals SODA’s Footprints Operations & Global Presence 2,2mn tons of aggregate Soda production capacity Involved in the production of Soda Ash, Soda Chemicals and Chromium in 3 different countries & Chromium Chemicals Chemicals production capacity in Italy and in Turkey Presence in 4 countries wit
Slide 35: Chemicals - Soda Sanayii
Chemicals - Soda Sanayii Consolidated Financial Results* Soda Sales Breakdown TRY mn 32% 32% 33% K Tons 28% 30% 30% 2.011 2.026 23% 1.851 1.772 1.607 1.294 1.339 1.501 1.602 1.404 1.456 1.178 1.295 1.059 991 516 500 500 562 383 430 326 492 162 372 462 148 332 288 397 475 129 153 346 429 672 717 686
Slide 36: 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 37: 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 Contact Details Görkem Elverici, Chief Financial Officer gelverici@sisecam.com Tel: (+90) 850 206 3885 Başak Öge, Investor Relations Director bog