Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — FY2014 Earnings Presentation
44 slides from Turkiye Sise Ve Cam Fabrikalari A.s's earnings presentation, March 2015
Slide 1: Investor Presentation 2014 YE
INVESTOR PRESENTATION 2014 YE
Slide 2: Content
CONTENT I. ŞİŞECAM Group Overview Executive Summary History and Development Presence in Global Glass Industry Mission , Vision and Strategy Investment Strategy Shareholding Structure Operating Territory Financial Highlights Prudent Risk Management Policies Sales Major Investments II. Operating Profi
Slide 3: I. Şişecam Group Overview
I.ŞİŞECAM GROUP OVERVIEW 3
Slide 4: 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 an
Slide 5: Şişecam History
ŞİŞECAM HISTORY 2014’s ONWARDS TO BE AMONG THE TOP 3 PRODUCERS GLOBALLY 2000’s * Regional leadership achieved GLOBAL VISION * Higher market share regionally 1990’s * Reaching world-class volumes INVESTMENT * Efficient Management Structure RESTRUCTURING * Investments abroad 1960 - 1990 * Expansion of
Slide 6: Mission, Vision and Strategy
MISSION, VISION AND STRATEGY MISSION Şişecam is a company that respects people and nature with its high quality and value added products. VISION To become the leader of its habitat covering the neighborhood countries in its activity fields. STRATEGY Rapid profitable growth through both inorganic&org
Slide 7: Group Corporate Structure
GROUP CORPORATE STRUCTURE İŞBANKASI ŞİŞECAM Glass Chemicals Flat Glass Glassware Packaging TR Glass Anadolu Paşabahçe Denizli Soda Cam Trakya OOO Ruscam Bulgaria Cam * Cam Cam * Sanayii * Elyaf Cam * EAD Anadolu Anadolu Trakya Trakya Cam Cam Paşabahçe Camiş Solvay Yenişehir Polatlı Eskişehir Bulgari
Slide 8: Presence in Global Glass Industry
PRESENCE IN GLOBAL GLASS INDUSTRY Market Shares (%)* Şişecam’s Position* Global Ranking* Eastern Russia & Europe World Turkey Europe World (000 tons) Turkey Europe Caucasia MENA Flat Glass 70 17** 5*** Flat Glass 3 6 Flat Glass 1 1 1 1 Glassware 66 26 12 Glassware 2 3 Glassware World’s 3rd Largest G
Slide 9: Peer Analysis - Şişecam at Top 5/10
PEER ANALYSIS - ŞİŞECAM AT TOP 5/10 KPI Comparison of Top 10 Global Players in the glass sector Gross Margin Net Margin Ardagh 0,11 Ardagh NEG 0,18 NSG Owens Corning 0,18 Asahi Owens Illinois 0,19 St. Gobain NSG 0,23 Owens Illinois St. Gobain 0,24 Owens Corning Şişecam 0,25 NEG Asahi 0,26 Şişecam Fu
Slide 10: Operating Territory - Turkey
OPERATING TERRITORY - TURKEY ŞİŞECAM PLANTS IN TURKEY Lüleburgaz İstanbul Kocaeli Eskişehir Polatlı Flat Glass Flat Glass Glass Fiber Paper –Cardboard Pack Glassware Automotive Glass Mould Glass Packaging Mirror Casting Paper Packaging Laminated Glass Glassware Power Plant
Slide 11: Operating Territory - International
OPERATING TERRITORY - INTERNATIONAL * OAO Ruscam Glass Packaging Holding has plants in 2 locations; namely in Ufa and in Kirishi. 2 plants in Glass Packaging segment are in pending; Pokrovsky 11 plant(since 2013 June) and Merefa plant (since 2014 December) .
Slide 12: Şişecam Ratings
ŞİŞECAM RATINGS Credit Rating/Outlook April 2013 May 2014 MOODY's Ba1/Stable Affirmed S&P BB+/Stable Affirmed 12
Slide 13: Corporate Governance & Sustainability
CORPORATE GOVERNANCE & SUSTAINABILITY ŞİŞECAM has received its Corporate Governance Rating*, for the first time in its history, by the end of 2014 as «9.28». As a Corporate Policy, Şişecam continues to strive for reaching the highest level of Corporate Governance practices, where its heritage of «go
Slide 14: Prudent Risk Management Policy
PRUDENT RISK MANAGEMENT POLICY RISK FINANCIAL POLICY LEVERAGE Leverage with conservative NET DEBT/EBITDA levels LIQUIDITY Maintains sufficient liquidity cushion to meet short-term funding and finance equity portion of Capex FX POSITION Minimal FX position tied to shareholder’s equity level Not only
Slide 15: Financial Highlights - Key Indicators
FINANCIAL HIGHLIGHTS - KEY INDICATORS ŞİŞECAM($ mn) 2009 2010 2011 2012 2013 2014 Net Sales 2.357 2.806 2.980 2.971 3.129 *3.139 EBITDA 446 678 758 539 643 623 Net Fin. Debt 606 254 315 543 765 460 Current Ratio 2,48 3,07 2,79 1,81 2,55 2,97 Liabilities/Assets 0,45 0,38 0,38 0,36 0,42 0,41 Sharehold
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS -%3 decrease in EBITDA on YoY basis is mainly due to TL depreciation. In real TL terms there is %12 increase in EBITDA on YOY basis 2014-2013. Being the $ mn same for Net Sales, in real TL terms, the topline increase is realized as %15. 4.000 3.123 3.139 2.806 2.980 2.984 3.000
Slide 17: Equal Segment Contribution to Sales and EBITDA
EQUAL SEGMENT CONTRIBUTION to SALES and EBITDA 2014 YE SALES(%) 2014 YE EBITDA(%) 26% 31% 33% 32% 21% 22% 12% 23% Flat Glass Glassware Glass Packaging Chemicals Flat Glass Glassware Glass Packaging Chemicals 2013 YE SALES(%) 2013 YE EBITDA (%) 23% 28% 29% 27% 25% 27% 24% 17% Flat Glass Glassware Gla
Slide 18: Şişecam's Growth - CAGR of 11% on TRY basis
ŞİŞECAM’s GROWTH - CAGR of %11 on TRY basis TL bn 6.9 %15 increase on YOY basis in TL terms 6.7 6.5 6.2 5.9 8 Remarkable expansion on 5.5 5.4 5.0 Sales from Foreign Production. 7 6 2.2 1,9 1,7 0,8 1,6 2.2 2.8 1,2 5 1,4 1,2 1,1 1,1 1,2 1 1,8 4 1,6 0,9 1,5 1,5 3 0,2 0,5 0,2 2 0,9 3,7 3,6 4,2 0,8 0,8 3
Slide 19: Sales - Export Breakdown
SALES - EXPORT BREAKDOWN Consolidated Export Breakdown as of 2014 YE Export Breakdown on regional basis 5% 1% 1% 1% 5% Italy Egypt 9% France 49% UK Bulgaria Export Breakdown on 13% Country basis 11% 48% 7% 6% 5% 14% 5% EUROPE ASIA MIDDLE EAST 4% N. AFRICA N. AMERICA S. AMERICA 4% MIDDLE AFRICA OCEAN
Slide 20: Financial Highlights - Profitability Margins
FINANCIAL HIGHLIGHTS - PROFITABILITY MARGINS(%) 35 33 29 30 26 24 25 27 24 25 25 19 20 21 20 18 16 15 13 13 10 10 8 10 7 10 8 6 7 5 3 0 2009 2010 2011 2012 2013 2014 Gross Margin EBITDA EBIT Net Income Significant improvement in Profitability Margins backed by stronger operational results achieved.
Slide 21: Leverage Position - Net Debt & EBITDA
LEVERAGE POSITION - NET DEBT&EBITDA $ mn 900 1,6 800 765 1,4 700 1,2 606 600 543 1 500 460 0,8 400 315 0,6 300 254 0,4 200 100 0,2 0 0 2009 2010 2011 2012 2013 2014 Net Debt Net Debt/EBITDA NET DEBT/ EBITDA: 1,36X 0,37X 0,42X 1,01X 1,33X 0,78*X *Leverage Ratio has improved in 2014YE upon completion
Slide 22: Investments & Capex Strategy
INVESTMENTS & CAPEX STRATEGY The major part of heavy CAPEX Cycle is completed… In 2012-2014, Şişecam Group has followed a robust investment strategy in line with its growth strategy to maximize shareholder’s value Total investments realized in 2014 is $ 529 Million. Investments completed in 2014: -1
Slide 23: Capex
CAPEX Gradually decreasing CAPEX.. $ mn 1.000 %30 decrease in CAPEX on YoY basis in TL terms and %40 in $terms respectively. 30% 900 876 25% 800 700 20% 600 565 497 500 529 15% 400 277 10% 300 254 200 5% 100 0 0% 2009 2010 2011 2012 2013 2014 CAPEX CAPEX/Sales 23
Slide 24: II. Operating Profile
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Slide 25: Business Segment - Flat Glass
BUSINESS SEGMENT - FLAT GLASS ŞİŞECAM INDUSTRY DYNAMICS Flagship company of Flat Glass segment isTrakya Cam of Half of the global production is in Asia-Pasific to include which 70% owned by Şişecam and the remaining 30% is mainly China and India. traded at BIST with market cap of US $ 1 Billion
Slide 26: Business Segment - Flat Glass
BUSINESS SEGMENT - FLAT GLASS Trakya Cam Consolidated Financial Highlights Trakya Cam $mn 2010 2011 2012 2013 2014 %YoY Net Sales 698 751 577 782 922 18% EBITDA 204 216 107 141 236 67% Net Fin. Debt -88 -105 -55 144 50 -65% Current Ratio 5,72 4,84 4,45 2,86 2,60 -0,26 Liabilities/Assets 0,24 0,24 0,
Slide 27: Business Segment - Glass Packaging
BUSINESS SEGMENT - GLASS PACKAGING ŞİŞECAM INDUSTRY DYNAMICS Anadolu Cam, being the flagship company of the glass packaging 60 Million tons of glass packaging consumed annually. segment is 20% listed at the BIST and the remaining 80% is held by Şişecam with a market cap of US $350 Million(March 2
Slide 28: Business Segment - Glass Packaging
BUSINESS SEGMENT - GLASS PACKAGING Anadolu Cam Consolidated Financial Highlights Anadolu Cam $mn 2010 2011 2012 2013 2014 %YoY Net Sales 745 771 814 800 711 -11% EBITDA 176 190 174 179 177 -0,01% Net Fin. Debt 263 403 486 491 258 -47% Current Ratio 1,70 1,32 0,86 1,58 2,80 1,22 Liabilities/Assets 0,
Slide 29: Business Segment - Glassware
BUSINESS SEGMENT - GLASSWARE ŞİŞECAM INDUSTRY DYNAMICS Paşabahçe Cam is the leading brand name of the glassware Although the weak economic growth led to the contraction segment of which majority shares are owned by Şişecam. of the glassware market in 2014, it is expected that the market conditio
Slide 30: Business Segment - Glassware
BUSINESS SEGMENT - GLASSWARE Glassware Consolidated Financial Highlights Glassware (*) 2010 2011 2012 2013 2014 %YoY Net Sales 765 787 753 761 738 -3% EBITDA 180 172 96 108 96 -11,1% Gross Margin (%) 36,1 38,4 32,7 30,0 31,2 1,2 EBITDA (%) 23,5 21,9 12,7 14,2 13,0 -1,2 (*) includes Paşabahçe Cam, Po
Slide 31: Business Segment - Chemicals
BUSINESS SEGMENT - CHEMICALS ŞİŞECAM INDUSTRY DYNAMICS Soda Sanayii being the flagship company of Chemicals Soda ash is mainly used in the glass industry, powder segment, is 16% listed at the BIST and the remaining 84% is detergents and other chemical-related industries. held by Şişecam with a m
Slide 32: Business Segment - Chemicals
BUSINESS SEGMENT - CHEMICALS Soda Sanayii Consolidated Financial Highlights Soda Sanayii $mn 2009 2010 2011 2012 2013 2014 %YoY Net Sales 403 440 522 660 738 735 0% EBITDA 75 91 139 125 171 236 38% Net Fin. Debt 75 27 0 4 44 -157 -456% Current Ratio 1,54 2,08 1,96 1,75 2,78 3,64 0,86 Liabilities/Ass
Slide 33: Appendix: 2014YE Earnings Review
APPENDIX: 2014YE EARNINGS REVIEW
Slide 34: Sales by Business Segment
SALES BY BUSINESS SEGMENT TL Mn 8.000 6.875 7.000 5.954 6.000 5.342 5.000 4.000 3.000 2.320 1.616 1.554 1.952 1.769 1.523 1.446 2.000 1.690 1.617 1.348 1.459 1.034 1.000 0 Şişecam Consolidated Flat Glass Glassware Glass Packaging Chemicals 2012 2013 2014 Sales across all segments have increased in T
Slide 35: Sales by Geography
SALES BY GEOGRAPHY TL mn 3.455 3.150 2.762 1.833 1.451 1.595 1.587 1.107 1.209 2012 2013 2014 Domestic Export Sales From Foreign Operations Remarkable increase of %30 in portion of Sales from Foreign Operations on 2013 - 2014YE YoY basis. 35
Slide 36: Production
PRODUCTION (000 Tonnes) 7.000 6.000 5.000 4.000 4.154 3.683 3.612 3.000 2.000 1.000 1.825 1.968 2.110 0 2012 2013 2014 Soda Ash Glass Glass production in 2014 has been 15% higher than 2013 due to higher CUR rate in Flat Glass segment compared to last year mainly due to completion of ramp up period
Slide 37: Profitability - EBITDA
PROFITABILITY - EBITDA TL mn 1.600 1.400 1.364 1.223 1.200 1.000 965 800 600 552 542 386 400 334 338 354 209 296 221 241 206 171 200 0 Şişecam Consolidated Flat Glass Glassware Glass Packaging Chemicals 2012 2013 2014 37
Slide 38: Şişecam Consolidated CAPEX
ŞİŞECAM Consolidated CAPEX Gradually decreasing Capex... TL mn CAPEX ( TL mn) 1.800 1.674 1.600 1.400 1.200 1.156 1.109 1.000 800 600 400 200 0 2012 2013 2014 Capex undertaken in 2014 is mainly due to the investments that have begun in 2013 which major part is already completed. 38
Slide 39: Net Debt by Business Segment
NET DEBT BY BUSINESS SEGMENT $ mn Yearly Net Debt on Segment Basis ($ mn) 1.000 800 36 85 600 17 106 132 357 400 275 448 200 280 218 0 33 2012 2013 2014 -200 Flat Glass Glass Packaging Glassware Chemicals -154 Increase in net debt in flat glass and glassware segments reflects the Capex period. 39
Slide 40: Strong FX Position
STRONG FX POSITION $ mn 389 Consolidated Net FX Position 218 171 41 31 2010 2011 2012 2013 2014 We benefited from the long $ position given that the Group’s cash is mostly placed in $. 61% of this long FX position is USD and the rest is in EUR. 40
Slide 41: Debt Profile Restructured Since 2012
DEBT PROFILE RESTRUCTURED SINCE 2012 Debt Currency Breakdown(%) 1% 2014 36% 41% 22% 0% 1% 2013 38% 36% 21% 4% 3% 2012 21% 44% 27% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% USD EUR RUR UAH TL Years Debt Maturity-As of 2014 YE Debt Profile- As of 2014 YE 5 yrs and after 32% Floating 755 4-5 5% 3-
Slide 42: Disclaimer
DISCLAIMER Following USD/TL Exchange Rates have been used throughout the presentation: 2009 2010 2011 2012 2013 2014 YE Period End: 1,51 1,55 1,89 1,78 2,13 2,32 Period Average: 1,55 1,50 1,67 1,79 1,90 2,19 This information in this document has been obtained by T. Şişe ve Cam Fabrikaları A.Ş. (
Slide 43: Contact Details
CONTACT DETAILS T. Şişe ve Cam Fabrikaları İş Kuleleri, Kule - 3 34330 4.Levent - Istanbul Turkey Tel : (0212) 350 50 50 Fax : (0212) 350 40 40 Görkem Elverici Aytaç Mutlugüller Başak Öge Emre İğdirsel Seda Akyüz Chief Financial Officer Deputy Corporate Finance & Corporate Finance & Corporate Financ
Slide 44: Şişecam
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