Anadolu Cam Sanayii A.S — Q3 2019 Earnings Presentation
40 slides from Anadolu Cam Sanayii A.S's earnings presentation, 2019
Slide 1: 3Q 2019 Anadolu Cam Investor Presentation
3Q 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 3Q 2019 Highlights Revenue Gross Profit EBITDA 1.259 11% YoY growth in consolidated sales volume; a) domestic up by One-off Gains / Losses 5%, b) international up by 16% (exports from Turkey up by 114%, 913 sales from other operating regions up by 0,5%) 425 365 38% Yo
Slide 5: Key Financial Indicators by Geography
Key Financial Indicators Revenue Contribution by Geography TRY mn 63 1.259 284 913 3Q 2018 Turkey Russia, Ukraine&Georgia 3Q 2019 TRY mn EBITDA Contribution by Geography One-off 365 loss 2,0 334 One-off 17 101 -1,2 gain -0,3 -51 264 333 3Q 2018 Turkey Russia, Ukraine&Georgia Netherlands Reconciliati
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 - 2014: TRY 120mn (Paşabahçe & Soda shares sale) 3.231 - 2015: TRY 73mn (Soda shares sale) - 2016: TRY 342mn (Soda shares sale) + TRY 27mn (Revaluation gain on Eurobo
Slide 7: Anadolu Cam Sanayii – Financial Results
Anadolu Cam Sanayii – Financial Results Consolidated EBITDA & CAPEX Consolidated EBITDA & NET DEBT TRY mn 896 TRY mn 747 2,7 2,6 615 2,3 1,7 1,9 1,5 1,6 2.231 387 393 365 341 333 694 1,0 1.718 1.534 313 323 332 339 934 1.002 1.009 221 181 137 599 747 2013 2014 2015 2016 2017 2018 3Q2018 3Q2019 2013
Slide 8: Anadolu Cam Sanayii – Operational Results
Anadolu Cam Sanayii – Operational Results Glass Packaging Production Breakdown Consolidated Revenues Breakdown K Tons TRY mn 3.231 2.411 2.038 1.841 1.909 1.790 1.703 1.745 1.764 1.828 1.523 1.555 1.552 1.216 940 992 1259 931 899 930 818 889 688 702 619 913 571 683 525 1.441 505 1.010 1.195 865 910
Slide 9: Sales Breakdown – Turkey
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Turkey - Value Based Sales Mix 3Q 2018 3Q 2019 8% Mineral Water 7% 19% 27% Beer 17% High Spirits 25% Wine Food 16% 9% Non-alcoholic Beverages 17% Exports 9% 2% 15% 3% Other 19% 4% 3% 9
Slide 10: Sales Breakdown – Russia
Anadolu Cam Sanayii – Sales Breakdown Anadolu Cam Russia – Value Based Sales Mix 3Q 2018 3Q 2019 2% 2% Mineral Water 15% 17% Beer 3% High Spirits 4% Wine 2% Food 3% Non-alcoholic Beverages Exports 13% 51% 52% 12% 13% 11% 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 30% 24% 25% 22% 25% 20% 17% 17% 17% 18% 20% 18% 18% 15% 16% 14% 14% 14% 15% 12% 13% 12% 10% 10% 8% 6% 6% 5% 2015 FY 4% 1Q 2016 2% 0% 2Q 2016 0% 2015 2016 2017 2018 9M 2018 9M 2019 2015
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 2018, 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 – Balance Sheet
Summary Financials SUMMARY BALANCE SHEET (Million TL) 2016 2017 1Q 2018 1H 2018 9M 2018 2018 1Q 2019 1H 2019 9M 2019 YoY Change Total Assets 4.417 4.183 4.389 4.803 5.590 5.002 6.062 7.135 7.367 32% Cash & Cash Equivalents 808 569 517 400 404 153 559 1.024 1.109 174% Financial Assets & Derivatives 1
Slide 21: Summary Financials – Income Statement
Summary Financials SUMMARY INCOME STATEMENT (Million TL) 2016 2017 1Q 2018 1H 2018 9M 2018 2018 1Q 2019 1H 2019 9M 2019 YoY Change Revenue 1.830 2.411 545 1.382 2.294 3.231 775 1.887 3.146 37% Cost of Goods Sold -1.373 -1.748 -379 -969 -1.601 -2.255 -518 -1.263 -2.097 31% Gross Profit 457 663 166 41
Slide 22: Summary Financials – Cash Flow Statement
Summary Financials CASH FLOW STATEMENT (Million TL) 2014 2015 2016 2017 2018 1Q 2019 1H 2019 9M 2019 Net Profit 14 31 465 184 451 102 257 428 Non-cash 262 252 -107 428 362 157 291 463 Operating cash flows provided before changes w/c 276 283 358 612 812 259 548 891 Change in w/c -255 122 -105 -12 -23
Slide 23: Şişecam Group Overview
ŞİŞECAM GROUP OVERVIEW 29 23
Slide 24: Şişecam at a Glance
Şişecam at a Glance $3,2 Billion 4,9 Million Tons 2,4 Million Tons 21.968 Presence in 13 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
Slide 25: Key Financial Highlights
Key Financial Highlights Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 39% 31% 28% 26% 24% 25% 20% 28% 25% 25% 24% 20% 21% 22% 15.550 13.216 11.318 11.083 8.569 6.876 7.415 4.890 4.339 3.120 3.436 1.365 1.764 2.120 2014 2015 2016 2017 2018 9M'18 9M'19 Revenue Growth (YoY) 15% 8% 16
Slide 26: Revenue
Revenue Segments’ Contribution to Revenue 9M'18 9M'19 TRY mn 4% 2% 22% 20% 38% 37% 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** 9M'18 9M'19 TRY mn 1% 6% 33% 33% 32% 27% 10% 14% 19% 25% 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 9M’18 9M’19 15,6 3% 1% 13,2 22% 22% 24% 24% 11,3 39% 11,2 40% 8,6 37% 39% 7,4 6,9 22% 31% 14% 28% 23% 14% 28% 23% 22% 23% 23% 23% 39% 40% 39% 37% 39% 37% 49% 49% 46% 2014 2015 2016 2017 2018 9M'18 9M'19 Europe Russia, Ukraine and Georgia Domestic Export Other Domestic Exp
Slide 29: Exports from Turkey
Exports from Turkey Exports of USD 590 Million in 9M 2019 to 150 countries Top 10 Countries Italy 15% North & Asia Egypt 8% Middle Europe France 6% America 11% 52% Spain 5% 6% Middle Far East USA 5% East 1% Saudi Arabia 5% Africa 14% Bulgaria 4% Oceania 10% Brazil 4% 1% South Germany 4% America Sout
Slide 30: Operational Excellence
Operational Excellence Increasing Production In Line with Capex Undertaken K tons 39% SODA 4.791 4.947 61% 4.464 4.045 4.127 3.650 3.620 2.116 2.170 2.278 2.343 2.361 Domestic International* 1.770 1.778 42% 2014 2015 2016 2017 2018 9 M '1 8 9 M '1 9 GLASS Glass Soda Chemicals 58% Domestic Internatio
Slide 31: Şişecam vs. Competitors
Şişecam vs. Competitors Strong Global Player with Competitive Profitability 33% 27% 26% 26% Glass Revenues’ Share in Total 25% Owens Illinois 100% 18% NSG 100% 16% 16% 17% Şişecam 77% 11% 12% Asahi Glass 50% Ardagh 37% 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 1.Şişecam, Trakya Cam and Anadolu Cam have shares on Camiş Elektrik 2.Şişecam and Trakya Cam have shares on Çayırova Cam Sanayi 3.Çayırova Cam have shares on Cam Elyaf * Publicly traded at BIST 33
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- Negative Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,53 from 9,48 in December 2018. 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] Tel: (+90) 850 206 3885 Başak Öge, Investor Relations Director boge@
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