Anadolu Cam Sanayii A.S — Q2 2020 Earnings Presentation
43 slides from Anadolu Cam Sanayii A.S's earnings presentation, 2020
Slide 1: 2Q 2020 Anadolu Cam Investor Presentation
2Q 2020 ANADOLU CAM Investor Presentation
Slide 2: Contents
Contents 3 Anadolu Cam Sanayii A.Ş. Operational Results & Financial Performance 16 Glass Packaging Business Segment Overview 19 Appendix 23 Şişecam Group Overview 2
Slide 3: Operational Results & Financial Performance
ANADOLU CAM SANAYİİ A.Ş. OPERATIONAL RESULTS & FINANCIAL PERFORMANCE 29 3
Slide 4: Key Financial Indicators
Key Financial Indicators TRY mn Revenue Gross Profit EBITDA 2Q 2020 Highlights 1.320 1.112 One-off 3% YoY growth in consolidated sales volume; 375 451 283 One-off Gain Gain 367 27 a) domestic up by 6%, 14 269 348 b) international up by 2% (exports from Turkey up by 2Q2019 2Q2020 2Q2019 2Q2020 2Q2019
Slide 5: Key Financial Indicators
Key Financial Indicators Revenue Contribution by Geography TRY mn TRY mn EBITDA Contribution by Geography 27 14 5
Slide 6: Anadolu Cam Sanayii – Financial Results
Anadolu Cam Sanayii – Financial Results Consolidated Financial Results EBITDA Margins Adjusted to One-off Gains One-off gains; TRY mn 4.307 - 2015: TRY 73 mn (Soda shares sale) - 2016: TRY 342 mn (Soda shares sale) + TRY 27mn (Revaluation gain on Eurobond investments) - 2017: TRY 32 mn (OMCO stake s
Slide 7: Anadolu Cam Sanayii – Financial Results
Anadolu Cam Sanayii – Financial Results Consolidated EBITDA & CAPEX Consolidated EBITDA & NET DEBT TRY mn TRY mn 1.208 2,6 1,6 1,7 1,8 1,8 1,0 896 747 615 393 375 2.490 2.206 890 283 694 1.534 1.002 1.009 323 332 339 385 89 747 2015 2016 2017 2018 2019 2Q2019 2Q2020 2015 2016 2017 2018 2019 2Q2020 E
Slide 8: Anadolu Cam Sanayii – Operational Results
Anadolu Cam Sanayii – Operational Results Glass Packaging Production Breakdown Consolidated Revenues Breakdown K Tons TRY mn 4.307 2.171 1.909 2.038 3.231 1.764 1.841 2.411 2.475 1.017 940 992 899 930 1.828 1.790 1.552 1.216 1.112 1.320 508 548 619 818 970 1.047 1.153 1.832 806 865 910 256 255 1.441
Slide 9: Anadolu Cam Sanayii – Sales Breakdown
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Turkey - Value Based Sales Mix 2Q2019 2Q2020 6% 9% 20% Mineral Water 19% Beer High Spirits 24% 34% Wine 10% 14% Food 2% Non-alcoholic 3% 2% Beverages 12% 5% Exports 7% 19% 15% Other 9
Slide 10: Anadolu Cam Sanayii – Sales Breakdown
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Russia – Value Based Sales Mix 2Q2019 2Q2020 2% 2% Mineral Water 15% 20% Beer 3% High Spirits 1% 4% 11% Wine 2% 54% Food 10% 58% Non-alcoholic 11% Beverages 9% Exports 10
Slide 11: Anadolu Cam Sanayii – Sales Breakdown
Anadolu Cam Sanayii – Sales Breakdown Growing Share of Exports in Revenue Mix Anadolu Cam Turkey Anadolu Cam Russia 34% 20% 17% 16% 25% 24% 15% 15% 14% 14% 18% 12% 13% 6% 2015 FY 1Q 2016 2Q 2016 2015 2016 2017 2018 2019 2Q2019 2Q2020 2015 2016 2017 2018 2019 2Q2019 2Q2020 4Q 2016 2016 FY 11
Slide 12: Anadolu Cam Sanayii History
Anadolu Cam Sanayii History 12
Slide 13: Corporate Structure
Corporate Structure ANADOLU CAM SANAYİİ A.Ş. 100% 100% Production facilities consolidated under JSC Mina "Anadolu Cam San. A.Ş." legal entity; Sisecam Glass - Mersin Plant - Yenişehir (Bursa) Plant Packaging BV. - Eskişehir Plant 100% 26% Camiş LLC Ruscam Glass Production facilities consolidated und
Slide 14: Vision, Mission, Strategy & Sustainability
Vision, Mission, Strategy & Sustainability VISION “... Being a global glass packaging company which constantly adds value to people and environment by providing customized products and services to its customers and being a solution partner with creative processes…’’ MISSION “Şişecam is a company tha
Slide 15: Strategy & Competitive Advantage
Strategy & Competitive Advantage STRATEGY Continue to be the leading glass packaging supplier in the region Strengthen its current position in the global glass packaging market COMPETITIVE ADVANTAGE Strong technological know-how Financial strength Experience in developing markets Fast growth ability
Slide 16: Glass Packaging Business Segment Overview
GLASS PACKAGING BUSINESS SEGMENT OVERVİEW 29 16
Slide 17: Glass Packaging – Anadolu Cam
Glass Packaging – Anadolu Cam Operations & Global Presence SHAREHOLDERS 21,7% Anadolu Cam, operational in 4 regions with 2,65mn tons/year installed capacity, is Şişecam Group’s leading brand name in the glass packaging segment with a portfolio focusing on food, alcoholic and non-alcoholic beverages,
Slide 18: Global Glass Packaging Market
Global Glass Packaging Market Industry Dynamics As of 2019, global glass packaging market (USD 52bn) accounting for 7% of global packaging industry Annual glass container consumption of +455 Billion units incl. on trade sales In unit terms 86% of glass containers produced are purchased by beve
Slide 19: Appendix
Appendix 19
Slide 20: Summary Financials
Summary Financials SUMMARY BALANCE SHEET (Million TL) 2019 1H2020 Change Total Assets 7.274 7.668 5% Cash & Cash Equivalents 990 863 -13% Financial Assets & Derivatives 409 487 19% Trade Receivables 1.045 1.401 34% Inventories 614 788 28% Equity-Pickups 16 17 5% Property, plant and equipment 3.476 3
Slide 21: Summary Financials
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 1H2019 1H2020 YoY Change Revenue 1.887 2.433 29% COGS -1.263 -1.587 26% Gross Profit 624 846 35% Research and development -1 -1 37% Sales and marketing -244 -355 46% General and administrative -122 -139 13% Other income (expense), net 20 62 20
Slide 22: Summary Financials
Summary Financials CASH FLOW STATEMENT (Million TL) 1H 2019 1H2020 Net Profit 102 239 Non-cash 157 492 Operating cash flows provided before changes w/c 259 732 Change in w/c -148 -443 Cash flows from operating activities 111 289 Interest paid -37 -138 Interest received 4 23 Dividend paid 0 -101 Taxe
Slide 23: Şişecam 2020 H1 Results
WS SiISECAM 2020 H1 Results
Slide 24: Rationale of the Merger
Rationale of the Merger • MAXIMIZING SHAREHOLDER VALUE • Simplification of the Group’s shareholding structure by creating only one single listed entity • Higher free float and increased depth • Optimization of costs through the centralization of o Supply Chains at Phase I – Creation of synergies bet
Slide 25: Existing Business Structure
Existing Business Structure Flagship Listed Company Flagship Listed Company Soda Sanayi Trakya Cam 43 production facilities located in 14 countries Other 68 companies established in 18 countries Flat Glass Stand-alone management of business segments Chemicals Şişecam Group Centralized IT and R&D Gla
Slide 26: Timeline
Timeline January 30th: Group began merger talks April 27th: Finalization of Expert Valuation Report & Opinion Submission of formal CMB application July 23rd: CMB approval received August 26th – 28th: Extraordinary General Assembly Meetings End of September: One Şişecam
Slide 27: A Holistic Business Approach
A Holistic Business Approach Expected to be finalized by the end of September Transformation Elimination of Merger of Russian Merger of Turkey Merger of Turkey Flat One Şişecam Cross Glass Packaging Glass Packaging Glass Production Ownerships facilities facilities Facilities Critical Enabler for Fir
Slide 28: Şişecam at a Glance
Şişecam at a Glance $3,2 Billion 5 Million Tons 2,4 Million Tons 21.848 Presence in 14 Revenue Glass Production Soda Production Employees Countries 10th Soda Ash Leader Producer in 4th Chromic Acid 5th Flat Glass 3rd Glassware 5th Glass Packaging Producer Globally Basic Chromium Producer Producer Gl
Slide 29: First-Half Financial and Operational Results
First-Half Financial and Operational Results Revenue (TL mn) Gross Profit (TL mn) EBITDA (TL mn) Net Income After 3% Minority Interest 33% (TL mn) 8.834 8.617 29% 2.806 4.220 2.583 4.695 23% 21% 1.518 1.086 11% 2.024 1.864 6% 1.039 720 961 4.615 480 3.923 1.496 518 1.288 1.144 85 984 481 433 H1'19 H
Slide 30: Historical Financial Results
Historical Financial Results TL mn 26% 25% 24% 21% 22% 18.059 15.550 11.318 8.569 7.415 4.033 4.298 2.810 1.594 1.919 2015 2016 2017 2018 2019 Revenue Adjusted EBITDA Adjusted EBITDA Margin 2015 2016 2017 2018 2019 Revenue Growth Y-o-Y 8% 16% 32% 37% 16%
Slide 31: First Half Regional Results
First Half Regional Results Geographic Revenue Mix Regional Breakdown of Exports from Turkey 2% 7% 14% 12% 41% H1’20 10% H1’20 50% 20% 7% 14% 23% Sales in Turkey Exports from Turkey Europe Middle East North America Europe Russia, Ukraine and Georgia Asia North Africa Other Other Top 10 Export Countr
Slide 32: Historical Regional Results
Historical Regional Results TL mn 18.059 3% 15.550 2% 22% 23% 11.318 14% 14% 22% 8.569 24% 7.415 14% 20% 23% 18% 11% 10% 24% 23% 23% 37% 39% 46% 40% 48% 2015 2016 2017 2018 2019 Sales in Turkey Exports from Turkey Russia, Ukraine and Georgia Europe Other
Slide 33: Debt Position
Debt Position Liquidity and Debt Structure (TL mn) Net Debt Bridge (TL mn) 16.928 3.373* Marketable Net Debt/EBITDA Securities 1.14x 7.948 Cash and cash equivalents Net Debt 5.607 H1'20 70% Fixed Int. Rate vs Term Structure of Gross Debt (TL mn) 30% Variable Int. Rate Other USD 16.928 RUR 4% 3% 8% 7
Slide 34: Historical Debt & Liquidity Results
Historical Debt & Liquidity Results 15.846 TL mn 2.963* 8.009 8.369 5.780 5.897 2.606* 4.614 1.085* 29* 1.878* 3.164 3.144 3.205 3.439 4.513 1.440 1.489 2.239 580 2015 2016 2017 2018 2019 Net Debt Cash and cash equivalents Marketable Securities Net Debt/EBITDA** 0,82 0,70 0,19 0,46 0,93 Net Debt/Equ
Slide 35: FCF & Capex
FCF & Capex (TL mn) H1'19 H1'20 Change Realized Capex Canceleld / Delayed Portion Net Profit 1.349 862 -487 Non Cash Items 644 1.043 399 Changes in Working 70% Lower Capital -959 -1.388 -429 than Planned Cashflow from operations 1.035 518 -517 Interest received,net -52 -367 -315 Dividend paid,net -5
Slide 36: Historical Capex Analysis
Historical Capex Analysis TL mn 15% 14% 14% 16% 8% 18.059 15.550 11.318 8.569 7.415 4.884 4.868 3.120 2.890 1.764 1.106 2.120 2.221 1.158 897 2015 2016 2017 2018 2019 Revenue EBITDA Capex Capex/Revenues EBITDA/Capex 1,60 1,83 3,48 2,20 1,68
Slide 37: Şişecam: New Implementations
Şişecam: New Implementations The First Blockchain Transaction in Turkey Investor Relations Mobile Application The first trade finance transaction on Technology to increase security, speed and - Mobile toolkit to examine earnings results, Marco Polo blockchain network in operational efficiency in int
Slide 38: V-Block Technology - Paşabahçe
V-Block Technology - Paşabahçe • Neutralizes viruses and bacteria on • First to be offered in Turkey, then in glass surfaces export market • Special chemical formula and hot • Initial production is planned by coating method August • Patent process in ongoing • Further plans to implement this technol
Slide 39: Şişecam's Sustainable Strategy: CARE for NEXT
Şişecam’s Sustainable Strategy: CARE for NEXT
Slide 40: Sustainability
Sustainability Key Sustainability Achievements The Group is among the first 100 in “Best Emerging Markets Performers” Viego Eiris Sustainability Index • 5.5% re-use of waste water • 23% of cullet usage in production of container glass PRESERVE • NOx emission reduction in 8 furnaces Natural Resources
Slide 41: Sustainability: Progress Status
Sustainability: Progress Status
Slide 42: Disclaimer
Disclaimer This information in this document has been obtained by Anadolu Cam Sanayii A.Ş. from sources believed to be reliable, however, Anadolu Cam Sanayii A.Ş. cannot guarantee the accuracy, completeness, or correctness of such information. This document has been issued for information purposes o
Slide 43: Contact Details
Anadolu Cam Sanayii A.Ş. 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 [email protected] Investor Relations Team [email protected] Hande Özbörçek hozborcek@s
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