Arcelik A.s. · BIST:ARCLK
Arcelik A.s — Q3 2021 Earnings Presentation
23 slides from Arcelik A.s's earnings presentation, 2021
Slide 1: 3Q21 Financial Results
3Q21 Financial Results Sensitivity: Public
Slide 2: 3Q21 Highlights
3Q21 Operational efficiency & price increases drove better EBITDA margin vs 2Q21 (LFL).. Demand was HIGHLIGHTS normalized & raw material cost was climbed further, TRY18.1bn as expected.. Revenue Strong top line growth of 52% y/y & 25% q/q, the organic growth was 29% y/y & 6% q/q 9.8% EBITDA Margin D
Slide 3: Key Factors: Sales / Margins
3Q21 Financial Results KEY FACTORS SALES / MARGINS REVENUE GROWTH GROSS MARGIN EBITDA MARGIN 52% 28.2% 9.8% Price increases (q/q & y/y) Further increase in raw material costs (q/q & y/y) Significant improvement in OPEX/Sales ratio Inorganic unit growth (q/q & y/y) Lower capacity utilization vs 2Q21
Slide 4: Operational Performance
Operational Performance 3Q21 Financial Results Sensitivity: Public
Slide 5: Turkish MDA6 market normalized in 3Q21
3Q21 Financial Results CYCLING A STRONG GROWTH A YEAR AGO, TURKISH MDA6 MARKET WAS NORMALIZED IN 3Q21 AS IT WAS EXPECTED MDA6* AIR CONDITIONER* TELEVISION** ARÇELİK ARÇELİK ARÇELİK (9%) 18% (27%) MARKET MARKET MARKET (11%) 25% (21%) TURKISH MDA6 MARKET GROWTH vs ARÇELİK (% y/y) ARÇELİK y/y growth (%
Slide 6: Growth in Europe slowed in July-August, mainly due to high base
3Q21 Financial Results GROWTH IN EUROPE SLOWED DOWN IN JULY-AUGUST PERIOD, MAINLY ATTRIBUTABLE TO THE HIGH BASE Western Europe Eastern Europe W. Europe E. Europe France Russia Germany U.K. Poland Italy Spain Romania Belgium Ukraine Austria -5% 5% 15% 25% 35% -5% 5% 15% 25% 8M21 6M21 8M21 6M21 • All
Slide 7: Additional units from acquisition & price increases drove European performance
3Q21 Financial Results ADDITIONAL UNITS FROM ACQUISITION & PRICE INCREASES RESULTED IN STRONG PERFORMANCE IN EUROPEAN MARKETS Arçelik Western Europe Highlights Arçelik Eastern Europe Highlights 30% • Robust top-line growth in EUR terms in 3Q21 • Top-line growth at high-teens in EUR terms in 13% Shar
Slide 8: APAC gaining share with Arçelik-Hitachi while Africa cycles strong base
3Q21 Financial Results APAC GAINING MORE SHARE WITH ARÇELİK-HITACHI WHILE AFRICA CYCLING A STRONG BASE 5% AFRICA 19% APAC (Share in total revenue) (Share in total revenue) • Defy had double-digit unit growth on a quarterly basis resulted in double- • In line with our growth strategy, Arçelik-Hitachi
Slide 9: 3Q21 witnessed relatively lower raw material prices
3Q21 Financial Results 3Q21 WITNESSED RELATIVELY LOWER RAW MATERIAL PRICES Average Metal Prices Index - Market Average Plastic Prices Index - Market 3Q21 133,6 3Q21 157,5 2Q21 134,2 2Q21 171,5 Info-Text 1Q21 108,3 1Q21 139,6 2020 79,1 2020 98,7 4Q20 90,2 4Q20 108,5 3Q20 77,3 3Q20 96,6 • Supply short
Slide 10: Sales Performance
Sales Performance 3Q21 Financial Results Sensitivity: Public
Slide 11: Resilient revenue composition through diversification
3Q21 Financial Results RESILIENT REVENUE COMPOSITION THROUGH DIVERSIFICATION TRYm 3Q21 12,747 2,793 Turkey 15,3% 4,4%4,1% Western Europe 1,774 35.6% 2,8% 29,8% y/y 2,6% 2,3% CIS&Eastern Europe 346 2,8% 5,9% 34,4% 1,297 22.6% 2,0% 4.4% y/y Africa y/y 4,5% 3Q20 7,834 15,8% 31.6% Middle East y/y Pakist
Slide 12: Financial Performance
Financial Performance 3Q21 Financial Results Sensitivity: Public
Slide 13: Summary Financials
3Q21 Financial Results SUMMARY FINANCIALS TRYm 3Q21 3Q20 Δ y/y 2Q21 Δ q/q 9M21 9M20 Δ y/y Revenue 18,148 11,938 52% 14,534 25% 45,666 27,538 66% Gross Profit 5,125 4,127 24% 4,393 17% 14,002 9,003 56% EBIT 1,321 1,416 (7%) 1,047 26% 3,912 2,577 52% Profit Before Tax 770 1,285 (40%) 584 32% 2,648 2,1
Slide 14: Healthy leverage sustained despite acquisitions & share buyback
3Q21 Financial Results HEALTHY LEVERAGE SUSTAINED DESPITE ACQUISITIONS & SHARE BUYBACK Currency Effective Interest Rate Original Currency TRY Equivalent Net Debt /EBITDA p.a. (mn) (mn) 2.01 2.00 TRY 17.2% 5,931 5,931 EUR 0.9% 270 2,789 1.88* USD 2.0% 17 149 GBP 0.7% 7 85 1.24 1.72* ZAR 5.4% 1,081 63
Slide 15: Positive FCF in 3Q21
3Q21 Financial Results POSITIVE FCF IN 3Q21 THROUGH STRONG EBITDA, IMPROVED WORKING CAPITAL & FLAT CAPEX EBITDA Margin Working Capital / Sales* 1Q21 2Q21 3Q21 2020 1Q21 6M21 9M21 GP Margin OPEX/Sales Non-cash Receivables Inventories Payables Others Items CAPEX / Sales Free Cash Flow TRYm 3,5% 3,3% 2
Slide 16: Guidance
Guidance 3Q21 Financial Results Sensitivity: Public
Slide 17: 2021 Guidance
3Q21 Financial Results 2021 GUIDANCE Revenue • Turkey (in TRY) c.35% growth • International (in FX) c.35% growth • Consolidated (in TRY) c.55% growth EBITDA Margin c.11.0% WC/Sales c.25% CAPEX c.220 mio EUR Sensitivity: Public 17
Slide 18: Appendix
Appendix 3Q21 Financial Results Sensitivity: Public
Slide 19: Margins by Segments
3Q21 Financial Results MARGINS BY SEGMENTS Consolidated 40.000 34,6 35,0 35.000 30.000 30,2 28,2 30,0 25.000 20.000 18.140 25,0 15.000 14.527 11.930 20,0 10.000 5.000 15,0 2020 Q3 2021 Q2 2021 Q3 Revenue Gross Margin (%) White Goods Consumer Electronics Other 40,0 3.000 3.000 32,2 37,2 21,3 36.000 2
Slide 20: Close watch on FX risk, proactively taken actions
3Q21 Financial Results CLOSE WATCH ON FX RISK, PROACTIVELY TAKEN ACTIONS 600 6,0% 3,9% 400 4,0% TRYm Before Hedge Hedged Position Net Position 2,9% 200 2,0% EUR (900) 1,008 108 0 0,7% 0,0% 0,4% 0,3%0,3% USD (3,797) 3,818 21 -0,5% -200 -1,1% -1,2% -1,2% -1,2% -2,0% -2,1% -2,4% GBP 1,358 (1,284) 74 -2
Slide 21: Contacts
3Q21 Financial Results CONTACTS Polat Şen Özkan Çimen Alper Gür Öktem Söylemez CFO Finance & ERM Director Investor Relations Manager Senior Investor Relations Specialist (+90) 212 314 34 34 (+90) 212 314 39 01 (+90) 212 314 31 47 (+90) 212 705 96 81 Investor Relations App www.arcelikglobal.com inves
Slide 22: Disclaimer
3Q21 Financial Results DISCLAIMER This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are
Slide 23: Thank You!
Thank You! Sensitivity: Public