ŞİŞECAM
Analyst & Investor Call H1'24
September 2, 2024
Content
H1'24 Key Financial Results
Liquidity & Capital Allocation
Key Financials w/o IAS 29
Sustainability
2
Important Notice on Inflation Accounting (IAS 29)
- Turkey has economic conditions that require reporting entities in the country to follow the methodology set out in International Accounting Standards ('IAS') - 29 'Financial Reporting in Hyperinflationary Economies'.
- Pursuant to the decision dated December 12, 2023, and numbered 10744 by the BRSA, banks, financial leasing, factoring, financing, savings financing, and asset management companies are not subject to inflation adjustments required under TAS-29 in their financial statements as of December 31, 2023.
- IAS 29 requires the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy to be restated for changes in the general purchasing power of that currency. Comparative figures for prior period(s) should be restated into the same current measuring unit.
- According to IAS 29.3, hyperinflation is indicated by the characteristics of an economy, which include but are not limited to the followings:
oThe cumulative inflation rate over three years is approaching, or exceeds, 100 percent.
oThe general population prefers to keep its wealth in non-monetary assets or in a relatively stable foreign currency
oThe general population regards monetary amounts in terms of a relatively stable foreign currency
oPricing of credit compensates for the expected loss of purchasing power, even in short credit periods
oInterest rates, wages and prices are linked to a price index
- Pursuant to the Capital Markets Board Decision dated 28.12.2023 and numbered 81/1820, Sisecam is subject to IAS 29 inflationary accounting provisions, starting from its 2023-year end earnings disclosure. Thus, H1'24 and comparative H1'23 financial results, stated in this presentation, contain Sisecam's audited financial information prepared according to Turkish Financial Reporting Standards by application of IAS-29 inflation accounting provisions and financial figures expressed in terms of purchasing power of the TRY at 30 June 2024.
- Non-monetaryassets and liabilities are restated
- Non-monetaryitems carried at current value are not restated
- Monetary items (ie cash, financial assets) are not subject to indexation and thus not restated
- All items in P&L are expressed by monthly indexation through consumer price index from the dates when the incomes and expenses accounted and up until the reporting date. Cost of goods sold, depreciation, and deferred tax items are subject to recalculation based on respective restated B/S items.
- Application of IAS-29 inflationary accounting provisions of Sisecam's financial figures is expected to continue until Türkiye's economic conditions no longer met the above stated IAS 29 criteria.
- Please refer to slide Appendix section of this presentation for Sisecam's unadited key financials without IAS 29 impact.
3
H1'24 Key Financial Results
Revenue (TRY Mn) | Gross Profit (TRY Mn) | EBITDA (TRY Mn) |
Parent Only Net Income (TRY Mn)
17%
103,568
85,792
50,931
41,797
28%
23%
29,344
22%
9%
22,639
10%
6%
52,637
43,995
13,606
15,738
19,887
9,828
10,059
12,301
7,777
10,3382,606
5,171
10,660
4,889 | 4,928 |
5,771 | 2,375 |
2,553 | |
H1'23H1'24
Q1 | Q2 | YoY Change | ||
H1'23H1'24
Q1 | Q2 | ---Margin | |
H1'23H1'24
Q1 | Q2 | ---Margin | |
H1'23 | H1'24 | ||
Q1 | Q2 | ---Margin | |
4
H1'24 Segmental Revenue and EBITDA
Diversified Revenue Mix | Revenue Bridge (TRY Mn) |
2%
11% 22%
23% H1'24 11%
13%
18%
Diversified EBITDA Mix | EBITDA Bridge (TRY Mn) |
1%
8%
30%
H1'24
48%-6%
18%
1%
5
H1'24 Segmental Revenue and EBITDA Margin
Architectural Glass (TRY Mn) | Industrial Glass (TRY Mn) | |
19% | 2% | |
12% | ||
-1% | -5% |
-11% | 9,634 | +2% | 9,579 | ||||
20,825 | +16% | -27% | 18,475 | -3% | |||
4,424 | 4,538 | ||||||
10,207 | |||||||
9,136 | |||||||
10,619 | 9,340 | 5,209 | 5,042 | ||||
H1'23 | volume effect | pricing, product | H1'24 | H1'23 | volume effect | pricing, product | H1'24 |
mix, curr. effect | mix, curr. effect |
Glassware (TRY Mn)
19%
0,4%
-11%
12,405 | 11,031 | ||||
-3% | -8% | ||||
6,062 | |||||
5,369 | |||||
6,343 | |||||
5,662 | |||||
H1'23 | volume effect | pricing, product | H1'24 | ||
mix, curr. effect |
Glass Packaging (TRY Mn)
22% | |||
9% | |||
-13% | |||
18,222 | +10% | -23% | |
15,822 | |||
9,623 | 8,111 | ||
8,599 | 7,711 | ||
H1'23 | volume effect | pricing, product | H1'24 |
mix, curr. effect |
• All revenue figures showing net external sales | -----EBITDA Margin | 6 |
H1'24 Segmental Revenue and EBITDA Margin
Chemicals (TRY Mn) | Energy (TRY Mn) |
30% | 18% | 1% | 1% | ||||
-30% | -23% | ||||||
28,496 | +4% | ||||||
-34% | 12,042 | +41% | -64% | ||||
14,397 | 19,818 | ||||||
9,264 | |||||||
9,384 | 5,183 | 4,603 | |||||
14,099 | 10,435 | 6,859 | 4,661 | ||||
H1'23 | volume effect | price, product | H1'24 | H1'23 | volume effect | pricing, product | H1'24 |
mix, curr. ffect | mix, curr. effect |
Other (TRY Mn)
57% | |||||
14% | |||||
-7% | |||||
1,945 | 1,802 | ||||
1,035 | 657 | ||||
910 | 1,145 | ||||
H1'23 | H1'24 | ||||
• All revenue figures showing net external sales | -----EBITDA Margin | 7 | |||
H1'24 Regional Results
Geographic Revenue Mix
2%
9% | |
10% | |
39% | |
20% | |
20% | |
Sales in Turkey | Exports from Turkey |
Europe | US |
Russia, Ukraine and Georgia | Other |
Regional Breakdown of Exports from Turkey
11% 1%
8%
4%
6%56%
14%
Europe | Middle East | North America |
South America | Asia | North Africa |
Other |
Top 10 Export Countries
Italy, Egypt, UK, USA, Germany, Spain, France,
Romania, Bulgaria, Iraq
USD 492 Mn exports revenue
Exports to 150+ Countries
8
Debt Position
Net Debt Bridge (TRY Mn)
Net Debt: USD 1.9 Bn
Net Debt/EBITDA
2.6x
Fixed / Variable | |
Interest Rate | |
Term Structure of Gross Debt (TRY Mn) | 92% / 8% |
133,145 |
RUB | Other | ||||||||||
75% | 6% | 4% | |||||||||
TRY USD | USD | ||||||||||
14% | 14% | 99,585 | |||||||||
32% | |||||||||||
TRY | |||||||||||
25% | 25% | ||||||||||
EUR | 33,561 | EUR | |||||||||
72% | |||||||||||
33% | |||||||||||
H1'24 | |||||||||||
USD | EUR TRY | Short Term | Long Term | USD EUR | TRY RUB Other | ||||||
Net Long Fx Position
TRY 927 Mn
*USD 3 billion in long-term liabilities include post tender USD 372 Mn-Sisecam 2026 Notes and USD 1.5 Bn Sisecam UK Notes due 2029 and 2032 | |
As of the reporting period, USD 372mn - Sisecam 2026 Notes are fully denominated in USD as the related cross-currency swaps have been gradually unwound in August 2022 and in June 2024. In accordance with the cross-currency | 9 |
swaps, made in Q2'2024, on USD 1.5bn - Sisecam UK Notes due 2029 and 2032; 44% of the notes was converted to EUR, 10% to TRY while the remaining 46% was kept in USD. |
FCF & Capex Analysis
(TRY Mn) | H1'23 | H1'24 | Change |
Net Profit | 12,398 | 5,030 | -7,367 |
Non Cash Items | 13,648 | 1,482 | -12,166 |
Changes in Working Capital | -8,294 | 934 | 9,228 |
Cashflow from operations | 17,752 | 7,446 | -10,306 |
Interest received,net | -2,321 | -4,738 | -2,417 |
Dividend paid,net | -5,489 | -2,676 | 2,812 |
Taxes paid | -1,494 | -1,115 | 379 |
Capex | -13,153 | -10,784 | 2,370 |
Monetary Gain/Loss on CCE | -8,566 | -9,340 | -774 |
FCF | -13,271 | -21,207 | -7,936 |
Working Capital / Revenue
37%
CAPEX / Revenue
13%
CAPEX Breakdown (H1'24)
11%
12% | 27% | ||
6% | |||
35% | 9% | ||
Architectural Glass | Industrial Glass | Glassware | |
Glass Packaging | Chemicals | Other |
EBITDA / CAPEX
0.7x
10