Anadolu Cam Sanayii A.S — Q4 2019 Earnings Presentation
40 slides from Anadolu Cam Sanayii A.S's earnings presentation, February 2020
Slide 1: 4Q 2019 Anadolu Cam Investor Presentation
4Q 2019 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 One-off 4Q 2019 Highlights 350 Gain 1.161 25 936 324 2% YoY growth in consolidated sales volume; a) domestic One-off 181 Loss down by 3,6%, b) international up by 5,8% (exports from -48 385 Turkey up by 51%, sales from other operating regio
Slide 5: Key Financial Indicators: Contribution by Geography
Key Financial Indicators Revenue Contribution by Geography TRY mn 62 1.161 163 936 4Q 2018 Turkey Russia, Ukraine&Georgia 4Q 2019 TRY mn EBITDA Contribution by Geography One-off gain 20 350 55 5 25 137 326 One-off 181 loss -48 133 4Q 2018 Turkey Russia, Ukraine&Georgia Netherlands Reconciliations 4Q
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 - 2015: TRY 73mn (Soda shares sale) 4.307 - 2016: TRY 342mn (Soda shares sale) + TRY 27mn (Revaluation gain on Eurobond investments) - 2017: TRY 32mn (OMCO stake sale
Slide 7: Anadolu Cam Sanayii – Financial Results
Anadolu Cam Sanayii – Financial Results Consolidated EBITDA & CAPEX Consolidated EBITDA & NET DEBT TRY mn 1.208 TRY mn 896 2,6 1,8 747 615 1,7 1,6 2.206 393 350 1,0 890 1.534 694 133 1.002 1.009 323 332 339 180 182 747 2015 2016 2017 2018 2019 4Q2018 4Q2019 2015 2016 2017 2018 2019 EBITDA CAPEX NET
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 3.231 2.171 2.038 2.475 1.841 1.909 2.411 1.764 1.017 1.828 1.790 940 992 1.552 899 930 1.216 818 1.161 619 936 548 573 1.832 1.441 649 970 1.047 1.153 1.195 516 865 910
Slide 9: Sales Breakdown – Turkey
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Turkey - Value Based Sales Mix 4Q 2018 4Q 2019 9% Mineral Water 9% 24% Beer 27% 20% High Spirits 25% Wine Food 15% Non-alcoholic Beverages 9% 13% 5% Exports 13% Other 14% 4% 3% 5% 5% 9
Slide 10: Sales Breakdown – Russia
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Russia – Value Based Sales Mix 4Q 2018 4Q 2019 1% 2% Mineral Water 14% 15% Beer 3% High Spirits 4% 3% Wine 3% Food Non-alcoholic Beverages 48% 49% Exports 13% 14% 14% 17% 10
Slide 11: Growing Share of Exports in Revenue Mix
Anadolu Cam Sanayii – Sales Breakdown Growing Share of Exports in Revenue Mix Anadolu Cam Turkey Anadolu Cam Russia 25% 17% 16% 18% 15% 14% 14% 12% 13% 6% 2015 FY 1Q 2016 2Q 2016 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 4Q 2016 2016 FY 11
Slide 12: Anadolu Cam Sanayii History
Anadolu Cam Sanayii History Single Plant Glass Packaging Acquisition of Merefa Plant (Ukraine) Acquisiton of Partner's Stake in Ruscam Production (International Expansion) (Modest Growth) FDI to Russia & Georgia Elimination of Non-core Assets through (International Expansion) Soda Sanayii Stake Sale
Slide 13: Corporate Structure
Corporate Structure ANADOLU CAM SANAYİİ A.Ş. 100% JSC Mina 100% 26% Camiş Elektrik AC Glass Holding Üretim A.Ş. 57% 76% BV 43% 24% Production facilities consolidated under Sisecam Glass Anadolu Cam "Anadolu Cam San. A.Ş." legal entity; Packaging BV. Investment BV. - Mersin Plant - Yenişehir (Bursa)
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 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, miner
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 Consumption Growth packaging industry ECAGR Annual glass container consumption of +455 Billion units incl. on trade sales In unit terms 86% of glass containers produ
Slide 19: Appendix
Appendix 19
Slide 20: Summary Financials
Summary Financials SUMMARY BALANCE SHEET (Million TL) 2015 2016 2017 2018 1Q 2019 1H 2019 9M 2019 2019 YoY Change Total Assets 3.750 4.417 4.183 5.002 6.062 7.135 7.367 7.274 45% Cash & Cash Equivalents 677 808 569 153 559 1.024 1.109 990 545% Financial Assets & Derivatives 437 197 257 349 378 385 4
Slide 21: Summary Financials
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 2015 2016 2017 2018 1Q 2019 1H 2019 9M 2019 2019 YoY Change Revenue 1.552 1.830 2.411 3.231 775 1.887 3.146 4.307 33% Cost of Goods Sold -1.224 -1.373 -1.748 -2.255 -518 -1.263 -2.097 -2.874 27% Gross Profit 328 457 663 976 257 624 1.049 1.434
Slide 22: Summary Financials
Summary Financials CASH FLOW STATEMENT (Million TL) 2015 2016 2017 2018 1Q 2019 1H 2019 9M 2019 2019 Net Profit 31 465 184 451 102 102 428 527 Non-cash 252 -107 428 362 157 157 463 648 Operating cash flows provided before changes w/c 283 358 612 812 259 259 891 1.176 Change in w/c 122 -105 -12 -235
Slide 23: Şişecam Group Overview
ŞİŞECAM GROUP OVERVIEW 29 23
Slide 24: Şişecam at a Glance
Şişecam at a Glance $3,2 Billion 5 Million Tons 2,4 Million Tons 21.886 Presence in 12 Revenue Glass Production Soda Production Employees Countries 5th Flat Glass 3rd Glassware 5th Glass Leader Producer 11th Soda Ash 4th Chromic Acid Producer Producer Packaging in Basic Producer Producer Globally Gl
Slide 25: Key Financial Highlights
Key Financial Highlights Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 31% 28% 27% 24% 25% 25% 26% 24% 21% 22% 18.059 15.550 11.318 8.569 7.415 4.884 4.868 3.120 1.764 2.120 2015 2016 2017 2018 2019 Revenue Growth (YoY) 8% 16% 32% 37% 16% Revenue EBITDA EBITDA Margin Adjusted EBITD
Slide 26: Revenue
Revenue Segments’ Contribution to Revenue 2018 2019 TRY mn 4% 2% 20% 22% 37% 36% 21% 24% 16% 17% Flat Glass Glassware Glass Packaging Chemicals Other* 26 * Consists of energy trade of Şişecam
Slide 27: EBITDA
EBITDA Segments’ Contribution to EBITDA** 2019 2018 TRY mn 2% 4% 31% 27% 32% 37% 11% 19% 11% 26% Flat Glass Glassware Glass packaging Chemicals Other* *Consists of energy trade of Şişecam 27 ** Excluding one-off incomes
Slide 28: Revenue by Geography
Revenue by Geography TRY bn 2018 2019 18,1 2% 3% 15,6 23% 22% 22% 39% 24% 11,3 39% 8,6 7,4 37% 24% 14% 22% 13% 31% 28% 23% 23% 23% 39% 37% 39% 37% 49% 46% 40% 2015 2016 2017 2018 2019 Europe Russia, Ukraine and Georgia Domestic Export Other Domestic Export from Turkey Sales from Foreign Operations 2
Slide 29: Exports from Turkey
Exports from Turkey Exports of USD 786 Million in 2019 to 150 countries Top 10 Countries Italy 17% North & Asia Egypt 8% Middle Europe France 5% America 12% 51% 6% Lebanon 4% Far East Middle USA 4% East 1% Africa Bulgaria 4% 14% Oceania 10% Germany 3% 1% Saudi Arabia 3% South America Brazil 3% 5% Ch
Slide 30: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken K tons 39% SODA 4.791 4.947 4.950 61% 4.464 4.127 Domestic International* 2.170 2.278 2.343 2.361 2.380 42% 2015 2016 2017 2018 2019 GLASS Glass Soda Chemicals 58% Domestic International* 30 *Production numbers are adjusted t
Slide 31: Şişecam vs. Competitors
Şişecam vs. Competitors Strong Global Player with Competitive Profitability 33% 27% 27% Glass Revenues’ Share in Total 26% 25% Owens Illinois 100% 18% NSG 100% 16% 16% 17% Şişecam 77% 11% 11% Asahi Glass 49% Ardagh 49% St Gobain* N/A -4% * Due to the change in reporting system of St Gobain, segmenta
Slide 32: Şişecam History
Şişecam History Glassware and container production – Paşabahçe Reaching World glass volumes, To Be Among The Top 3 (Modest Growth) Efficient Management Structure Producers Globally Investments Abroad Investment Structuring 1935-1960 1960-1990 1990’s 2000’s 2014’s Onwards Expansion of product range S
Slide 33: Corporate Structure
Corporate Structure İŞ BANKASI ŞİŞECAM Flat Glass Glass Packaging Glassware Chemicals Other Trakya Cam Paşabahçe Camiş Soda Camiş Anadolu Denizli Şişecam Enerji Sanayii* Cam Sanayii Madencilik Sanayii* Elektrik1 Cam Sanayii* Cam Sanayii* Şişecam Flat Camiş Egypt Şişecam Elyaf Paşabahçe Şişecam Şişec
Slide 34: Operating Territories
Operating Territories PRODUCTION PLANTS IN TURKEY ŞİŞECAM FLAT GLASS ŞİŞECAM GLASSWARE Trakya Cam Sanayii A.Ş. Paşabahçe Cam San. Ve Tic. A.Ş. Trakya Plant - Kırklareli Kırklareli Plant Mersin Plant - Mersin Eskişehir Plant Trakya Yenişehir Cam Sanayii A.Ş. Denizli Cam San. Ve Tic. A.Ş. Yenişehir Pl
Slide 35: 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 36: Credit & Corporate Governance Ratings
Credit & Corporate Governance Ratings Credit Ratings MOODY’s LT FCY Rating B1 Negative FITCH LT FCY Rating BB- Stable Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,534 from 9,528 in December 2019. As a Corporate Policy, Şişecam continues to strive for reaching the high
Slide 37: Sustainability
Sustainability Key Sustainability Achievements The Group is among the first 100 in “Best Emerging Markets Performers” Viego Eiris Sustainability Index • 1.100 ton waste reduction PRESERVE NATURAL RESOURCE MANAGEMENT • 175 bin ton glass recycled and used as raw material • 2,6 million m3 water re used
Slide 38: Şişecam's Sustainability Targets & Planned Actions
Sustainability Şişecam’s Sustainability Targets & Planned Actions 38
Slide 39: 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 40: 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
Anadolu Cam Sanayii A.Ş. — Q4 2019 Earnings Presentation on 6ix