Anadolu Cam Sanayii A.S — Q1 2020 Earnings Presentation
40 slides from Anadolu Cam Sanayii A.S's earnings presentation, 2020
Slide 1: 1Q 2020 Anadolu Cam Investor Presentation
1Q 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 1Q 2020 Highlights Revenue Gross Profit EBITDA 1.112 21% YoY growth in consolidated sales volume; 775 a) domestic up by 36%, One-off One-off 359 Gain 395 242 Gain b) international up by 15% (exports from Turkey up by 257 31 50 212 98%, sales from other operating regio
Slide 5: Key Financial Indicators
Key Financial Indicators Revenue Contribution by Geography TRY mn TRY mn EBITDA Contribution by Geography 50 31 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 1,7 1,0 896 747 615 2.206 2.247 393 359 890 242 1.534 694 1.002 1.009 747 323 332 339 187 145 2015 2016 2017 2018 2019 1Q2019 1Q2020 2015 2016 2017 2018 2019 1Q2020
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 1.828 1.790 899 930 1.552 1.216 1.112 519 586 619 326 775 1.047 1.153 1.832 691 865 910 970 245 259 1.195 1
Slide 9: Anadolu Cam Sanayii – Sales Breakdown
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Turkey - Value Based Sales Mix 1Q2019 1Q2020 9% 13% 15% 16% Mineral Water Beer High Spirits 10% Wine 20% 27% Food 35% 3% Non-alcoholic Beverages 4% Exports 3% Other 5% 17% 7% 11% 6% 9
Slide 10: Anadolu Cam Sanayii – Sales Breakdown
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Russia – Value Based Sales Mix 1Q2019 1Q2020 1% 2% 16% 17% Mineral Water 3% 3% Beer 1% 3% High Spirits Wine 10% 11% 54% Food 57% Non-alcoholic Beverages 11% Exports 11% 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 35% 27% 17% 16% 17% 25% 15% 16% 14% 14% 18% 12% 13% 6% 2015 FY 1Q 2016 2Q 2016 2015 2016 2017 2018 2019 1Q2019 1Q2020 2015 2016 2017 2018 2019 1Q2019 1Q2020 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 Consumption Growth packaging industry ECAGR Annual glass container consumption of +455 Billion units incl. on trade sales Global Turkey* 4,8% In unit terms 86% of gl
Slide 19: Appendix
Appendix 19
Slide 20: Summary Financials
Summary Financials SUMMARY BALANCE SHEET (Million TL) 2019 1Q2020 Change Total Assets 7.274 7.283 0% Cash & Cash Equivalents 990 1.119 13% Financial Assets & Derivatives 409 489 20% Trade Receivables 1.045 1.085 4% Inventories 614 722 18% Equity-Pickups 16 16 3% Property, plant and equipment 3.476 3
Slide 21: Summary Financials
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 1Q2019 1H2019 9M2019 9M2019 2019 1Q2020 YoY Change Revenue 775 1.887 3.146 4.307 4.307 1.112 43% COGS -518 -1.263 -2.097 -2.874 -2.874 -718 39% Gross Profit 257 624 1.049 1.434 1.434 395 53% Research and development 0 -1 -2 -2 -2 -1 76% Sales
Slide 22: Summary Financials
Summary Financials CASH FLOW STATEMENT (Million TL) 1Q2019 1Q2020 Net Profit 102 116 Non-cash 157 219 Operating cash flows provided before changes w/c 259 335 Change in w/c -148 -47 Cash flows from operating activities 111 288 Interest paid -37 -59 Interest received 4 9 Dividend paid 0 0 Taxes paid
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 21.848 Presence in 14 Revenue Glass Production Soda Production Employees Countries 5th Flat Glass 3rd Glassware 5th Glass Leader Producer 10th 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% 30% 32% 28% 27% 24% 25% 25% 26% 24% 25% 25% 21% 22% 18.059 15.550 11.318 8.569 7.415 4.884 4.868 4.615 3.120 3.923 1.764 2.120 1.480 1.178 2015 2016 2017 2018 2019 Q1'19 Q1'20 Revenue Growth (YoY) 8% 16% 32%
Slide 26: Revenue
Revenue Segments’ Contribution to Revenue Q1'19 Q1'20 TRY mn 3% 6% 22% 22% 33% 39% 20% 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** Q1'19 Q1'20 TRY mn 8% 4% 24% 34% 25% 33% 12% 12% 21% 27% 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 Q1’19 Q1’20 18,1 3% 3% 15,6 20% 39% 25% 23% 23% 11,3 40% 8,6 37% 7,4 23% 22% 13% 31% 28% 23% 4,6 13% 23% 23% 3,9 37% 37% 39% 41% 46% 40% 23% 23% 49% 36% 41% 36% 41% 2015 2016 2017 2018 2019 Q1'19 Q1'20 Domestic Export from Turkey Sales from Foreign Operations Europe Russi
Slide 29: Exports from Turkey
Exports from Turkey Exports of USD 177 Million in Q1’20 to 150 countries Top 10 Countries Italy 22% Egypt 9% North & Asia Middle Europe USA 4% America 10% Lebanon 4% 52% 7% Far East Germany 4% Middle East 1% France 3% Africa 12% Oceania Romania 3% 12% UK 3% 1% South Israel 3% America Brazil 3% 5% 29
Slide 30: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken 38% K tons SODA 4.791 4.947 4.960 62% 4.464 4.127 Domestic International* 2.170 2.278 2.343 2.361 2.380 1.193 1.314 575 595 42% 2015 2016 2017 2018 2019 Q1 '1 9 Q1 '2 0 GLASS Glass Soda Chemicals 58% Domestic International* 3
Slide 31: Şişecam vs. Competitors
Şişecam vs. Competitors Strong Global Player with Competitive Profitability 32% 32% Glass Revenues’ Share in Total 27% 25% Owens Illinois 100% NSG 100% Şişecam 72% 17% Asahi Glass 49% 16% 16% 17% Ardagh 49% 13% 11% St Gobain* N/A 10% * Segmental revenue breakdown is no longer provided by St Gobain 5
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: Sustainability
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. — Q1 2020 Earnings Presentation on 6ix