Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Türkiye Şişe ve Cam Fabrikaları A.Ş. (Şişecam) — Debt Investor Presentation (March 2019)
32 slides from Turkiye Sise Ve Cam Fabrikalari A.s's debt investor presentation, March 2019
Slide 1: Investor Presentation
Investor Presentation March 2019
Slide 2: Disclaimer
Disclaimer The information and the opinions in this presentation have been prepared by Türkiye Şişe ve Cam Fabrikaları A.Ş. (the Issuer) and) solely for use at meeting(s) regarding a proposed offering (the Offering) of notes of the Issuer (the Notes) to be guaranteed on a partial and several basis b
Slide 3: Today’s speakers
Today’s speakers Görkem Elverici Barış Gökalp Başak Öge CFO Corporate Finance & IR Director Treasury Director Education: Education: Education: • MBA, Bilkent University, Turkey • Executive MBA, Bilkent University, Turkey • Bs. Economy, Istanbul University, Turkey • Bs. Civil Engineering, Middle East
Slide 4: Table of contents
Table of contents 5 Şişecam at a glance 6 Shareholder structure 7 History 8 Strategy 9 Key credit highlights 15 Group financial performance 21 Business overview 30 Appendix. financial statements 4
Slide 5: Şişecam at a glance
Şişecam at a glance Business overview Four Main Operational Segments • One of the world’s leading glass products manufacturers • Flat Glass Group is led by Trakya Cam Sanayii A.Ş. and is active in architectural glass, automotive glass, solar control glass, encapsulated • International sales amounted
Slide 6: Shareholder structure
Shareholder structure Türkiye İş Efes Holding Anadolu Hayat Publicly Traded Bankası A.Ş. A.Ş. Emeklilik A.Ş. (24.61%) Guarantors (67.11%)1 (8.23%) (0.05%) % Total Revenue3 35.1% 15.1% 19.4% 23.7% % Total EBITDA3 37.9% 9.4% 18.2% 30.1% Flat Glass Glassware Glass Packaging Chemicals Paşabahçe Soda Tra
Slide 7: Şişecam has maintained long-standing industry leadership since 1935
Şişecam has maintained long-standing industry leadership since 1935 2010s Continued prudent 2000s expansion 1990s Global vision Investments 1960-1990 structuring Strong 1935-1960 growth Establishment and Acquisition of Richard single plant stage Numerous greenfield Fritz (Germany), Reaching in
Slide 8: Strategy
Strategy Value-creating growth underpinned by operational excellence Identify and prepare Continued the Group to expand operational Corporate and Social across geographies / Technology, Responsibility at the excellence products innovation and heart of Şişecam’s Strong sales & excellent infrastructur
Slide 9: Key credit highlights
Key credit highlights 3 9
Slide 10: Key credit highlights
Key credit highlights Extensive geographical diversification International sales constituted 61% of total in 2018 Strategic shift from domestic market to a more Europe-centered distribution model Well-diversified client base served through a substantial distribution network Low cost production in Tu
Slide 11: Extensive geographical diversity
Extensive geographical diversity Substantial production and distribution network Geographical distribution of export revenues • International revenue constituted 61% of the total in 2018 North & Central Europe2 • 43 production plants in 13 countries and America exports to >150 countries 50% Asia • P
Slide 12: Diversified and complementary business segments
Diversified and complementary business segments Balanced and diversified product portfolio Vertically integrated business model • The only global company engaged in all the primary areas of • The Group benefits from significant economies of scale and glass production synergies across its business se
Slide 13: Size superiority coupled with proven track record
Size superiority coupled with proven track record Benefits of being ‘the first and Supportive revenue and Historically strong brand the biggest’ at the market distribution network recognition • Glass production requires significant • Global distribution network • Widely recognised glassware brand le
Slide 14: Reliable in-house R&D
Reliable in-house R&D Şişecam’s R&D activities • The Group has its own Science and Technology Centre • It employs 147 full-time researchers and 18 designers • Group’s research capabilities are even further amplified when Şişecam cooperates with top private & public institutions • The biggest laborat
Slide 15: Group financial performance
Group financial performance 3 15
Slide 16: Revenue & operating profit evolution
Revenue & operating profit evolution Key Financial Metrics1 31,4% TRY bn 15,55 The Group’s revenue were TRY 15,550mm for 2018, a 37.4% 27,6% increase from TRY 11,318mm in 2017. This increase was driven by a 24,7% strong pricing environment, higher revenue volume and favourable 11,32 product mix acro
Slide 17: Gradual balance sheet expansion
Gradual balance sheet expansion Balance Sheet Composition1 Assets (by Segment) TRY bn 27,8 TRY bn 6,2 21,3 19,2 4,7 7,0 4,5 4,5 5,0 3,8 4,4 4,2 4,3 3,3 3,3 16,7 10,7 7,2 8,3 -4,1 -3,7 -5,4 13,1 11,3 27,8 2016 2017 2018 21,3 Liabilities (by Segment) 19,2 11,0 TRY bn 2,9 7,8 8,2 11,0 1,6 1,7 1,6 7,8 8
Slide 18: CAPEX enhances Group’s long-term growth
CAPEX enhances Group’s long-term growth Revenue & CAPEX Progress1 TRY bn 15,55 14,3% 13,5% 11,32 8,57 7,9% • Şişecam invests thoroughly across all the business segments, combining growth 2,22 investments with cost optimization efforts 1,16 0,90 2016 2017 2018 • The Group’s TRY 2.22bn capital expendi
Slide 19: Conservative debt profile with sustainable FX exposure
Conservative debt profile with sustainable FX exposure Maturity Profile (by Debt Type) Leverage Analysis 2,69 TRY bn TRY bn 2,30 121x 1,87 99x 1,17 79x 4,33 0,04 0,11 0,05 3,79 3,94 Less than 3 months 3-12 months 1-5 years >5 years 4,84 3,68 1,98 2,57 1,96 2,46 Bank loans Bonds (par + coupon) -3,21
Slide 20: Prudent risk management policy
Prudent risk management policy Leverage Low leverage with conservative Net Debt / EBITDA levels Prudent financial policy Maintain sufficient liquidity to meet short-term funding and finance equity portion of CAPEX FX position FX position limited to +/- 25% of shareholder’s equity Counterparties Dive
Slide 21: Business overview
Business overview W n sisECAM - ans
Slide 22: I. Flat Glass Group - Trakya Cam Sanayii
I. Flat Glass Group - Trakya Cam Sanayii • The Group’s largest business in terms of revenue 2 1 • Trakya Cam is the flagship company of the Flat Glass Group 1 Bulgaria • The first float glass producer in Turkey and in the region 1 Romania Flat, auto, coated, mirror covering Eastern Europe, Balkans,
Slide 23: I. Flat Glass Group - Trakya Cam Sanayii
I. Flat Glass Group - Trakya Cam Sanayii Shareholders Market shares1 International3 vs. domestic revenue 59,0% Architectural glass Automotive glass 55,0% 5%4 Trakya 5% Trakya 45,0% 30,5% Cam Cam 41,0% 8% Rest Rest Free Float 69,5% 44% 70% 70% Şişecam 2017 2018 International Sales Domestic Sales Flat
Slide 24: II. Glassware Group - Paşabahçe Cam Sanayii ve Ticaret
II. Glassware Group - Paşabahçe Cam Sanayii ve Ticaret Glassware Group operates in 3 segments: • Glassware production (automated, handmade, heat resistant, crystalware), design, revenue and marketing Total production • Retail distribution network of ~530K t/ year Russia • Paper-cardboard packaging S
Slide 25: II. Glassware Group - Paşabahçe Cam Sanayii ve Ticaret
II. Glassware Group - Paşabahçe Cam Sanayii ve Ticaret Shareholders of Paşabahçe Glassware Group - Key financial metrics2 Islamic TRY bn 18,2% 0,5% Development Bank 14,7% 14,4% 2,53 14,9% EBRD 1,96 1,80 84,6% Tangible market shares 0,46 0,26 0,29 Şişecam across target regions1 8% 2016 2017 2018 17%
Slide 26: III. Glass Packaging Group – Anadolu Cam Sanayii
III. Glass Packaging Group – Anadolu Cam Sanayii Russia • Produces glass packaging in various forms shapes and colours for Gorokovetz, Pokrovsky, Ufa, Kirishi foods, pharmaceuticals and cosmetics and Kuban Plants • 5th globally, 5th in Europe and 1st position in Turkey in terms of 1.165k t/year capa
Slide 27: III. Glass Packaging Group – Anadolu Cam Sanayii
III. Glass Packaging Group – Anadolu Cam Sanayii Production facilities capacity Shareholders Market shares1 breakdown (tonnes/year) 2 Ukraine Georgia 3% 23% 2% 3% Free Float Anadolu Cam 48% 58% Rest 46% Turkey Russia Şişecam 77% Glass Packaging Group - Key financial metrics3 39,9% TRY bn 3,24 2,41 2
Slide 28: IV. Chemicals Group – Soda Sanayii
IV. Chemicals Group – Soda Sanayii • Second largest business of the Group Turkey – Mersin Plants • 9th globally, 5th in Europe and 1st position in Turkey in terms of Mersin Soda Plant: 1.4m tonnes /year soda ash production capacity1 Bosnia and Herzegovina Bulgaria Kromsan Chromium Compounds Plant: S
Slide 29: IV. Chemicals Group – Soda Sanayii
IV. Chemicals Group – Soda Sanayii Shareholders Contribution to the Soda Ash Chromium: BCS Chromium: Chromic Acid Group Revenue1 market shares 3 market shares 4 market shares 4 3% 15% 15% 28% 17% Free 24% Float 61% 48% 45% 39% Şişecam 76% 72% 62% Soda Sanayii Rest Soda Sanayii Rest Soda Sanayii Re
Slide 30: Appendix. financial statements
Appendix. financial statements 30
Slide 31: Summary financials (Income Statement)
Summary financials (Income Statement) 2016 Change 2017 Change 2018 (TRY mm, except percentages) Sales 8,569.5 32.1% 11,318.5 37.4% 15,550.3 Cost of sales (5,891.6) 30.5 (7,688.2) 35.2% (10,392.9) Gross profit from trading activity 2,677.9 35.6% 3,630.3 42.1% 5,157.4 General and administration expens
Slide 32: Summary financials (Balance Sheet)
Summary financials (Balance Sheet) As of 31 December 2016 Change 2017 Change 2018 (TRY millions, except percentages) Cash and cash equivalents 3,205.4 7.3% 3,438.6 (8.0)% 3,164.0 Financial assets 56.8 67.5% 95.2 133.1% 221.9 Trade receivables 2,043.9 14.4% 2,338.3 38.3% 3,234.6 Inventories 1,959.9 9
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