3Q 2017 ANADOLU CAM Investor Presentation

Transcription

1 3Q 2017 ANADOLU CAM Investor Presentation

2 Contents Anadolu Cam Sanayii A.Ş. Operational Results & Financial Performance Glass Packaging Business Segment Overview Appendix 23 Şişecam Group Overview 2

3 ANADOLU CAM SANAYİİ A.Ş. OPERATIONAL RESULTS & FINANCIAL PERFORMANCE 29 3

4 Key Financial Indicators TRY mn 3Q 2017 Highlights Revenue EBITDA Capex Q Q One-off Gains Q Q Q Q % YoY decrease in consolidated sales volume; a) domestic up by 1,2%, b) international down by 8% Average price increases; a) Turkey: 8% in TRY b) Russia: 9% in RUB 54% to 46% revenue split between domestic and international sales Investment decision in Eskişehir plant: 150K ton/p.a. capacity Gross Profit Net Income Free Cashflow furnace with an investment cost of USD 66mn, projected to come online in 2H 2018 Start of Ufa plant C furnace (120K ton/p.a. capacity) cold repair 223 process, to be completed in 4Q Merger of Anadolu Cam Yenişehir & Anadolu Cam Eskişehir plants under Anadolu Cam Sanayii A.Ş. As of Nov. 8th 2017; Mcap: USD 485mn, 3M Avg. Daily Trading 3Q Q Q Q M M 2017 Vol.: 3mn shares 4

5 Key Financial Indicators TRY mn Revenue Contribution by Geography Q 2016 Turkey Russia, Ukraine&Georgia 3Q 2017 TRY mn EBITDA Contribution by Geography One-off 127 gain , One-off gain 3Q 2016 Turkey Russia, Ukraine&Georgia Netherlands Reconciliations 3Q

6 0,4 5 0,4 0,3 5 0,3 0,2 5 0,2 0,1 5 0,1 0,0 5 0 Anadolu Cam Sanayii Financial Results Consolidated Financial Results TRY mn EBITDA Margins Adjusted to One-off Gains One-off gains; : TRY 100mn (Topkapı land sale) : TRY 120mn (Paşabahçe & Soda shares sale) : TRY 73mn (Soda shares sale) : TRY 342mn (Soda shares sale) + TRY 27mn (Revaluation gain Eurobond investments) - 3Q2016: TRY 2mn (Revaluation gain Eurobond investments) - 3Q2017: TRY 5mn (Revaluation gain Eurobond investments) Gross Margin EBIT Margin Q2016 3Q2017 Net Sales Gross Profit EBITDA 22% 16% 17% 21% 22% 23% 26% 9% 9% 10% 11% 28% 13% 15% EBITDA Margins 42% 22% 25% 25% 21% 21% 16% 17% 26% 27% 26% 26% Adjusted EBITDA Margins EBITDA Margin 21% 22% 25% 25% 42% 26% 27% Q2016 3Q2017 6

7 Anadolu Cam Sanayii Financial Results Consolidated EBITDA & CAPEX TRY mn 646 Consolidated EBITDA & NET DEBT TRY mn ,8 2, , , , , M2016 9M M2016 9M2017 EBITDA CAPEX NET DEBT NET DEBT/EBITDA Maturity Breakdown of Debt Currency Breakdown of Debt* 0-1 yr 9M M 2017 UAH; 3% 47% 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 0,5% 6% 22% 24% USD; 23% EUR; 24% RUB; 50% Revenues; - 52% in TRY - 34% in RUB - 4% in USD - 6% in EUR - 4% in Other currencies >5 yrs 1% *Currency breakdown of financial debt adjusted to the outstanding cross-currency and interest swaps 7

8 Anadolu Cam Sanayii Operational Results Glass Packaging Production Breakdown K Tons Consolidated Revenues Breakdown TRY mn Q2016 3Q Q2016 3Q2017 Domestic International Domestic International * 8 *International Sales include sales from foreign operations + exports from foreign operations + exports from Turkey

9 Anadolu Cam Sanayii Sales Breakdown Anadolu Cam Turkey - Value Based Sales Mix 3Q Q % 8% 35% Mineral Water Beer High Spirits 12% 10% 22% 8% Wine Food Non-alcoholic Beverages 10% 14% 21% 2% 3% 13% Exports Other 25% 4% 3% 9

10 Anadolu Cam Sanayii Sales Breakdown Anadolu Cam Russia Value Based Sales Mix 3Q Q % 2% 15% Mineral Water 14% 3% 4% Beer High Spirits Wine 4% 3% 16% 47% Food Non-alcoholic Beverages Exports 14% 47% 14% 15% 10

11 Anadolu Cam Sanayii Sales Breakdown Growing Share of Exports in Revenue Mix Anadolu Cam Turkey Anadolu Cam Russia 12% 10% 12% 15% 15% 6% 2015 FY 1Q Q Q M2016 9M2017 4Q FY 14% 13% M2016 9M

12 Anadolu Cam Sanayii History Single Plant Glass Packaging Production (Modest Growth) FDI to Russia & Georgia (International Expansion) Acquisition of Merefa Plant (Ukraine) (International Expansion) Acquisiton of Partner's Stake in Ruscam & Elimination of Non-core Assets through Soda Sanayii Stake Sale Acquisition of the Minority Interests in Yenişehir & Eskişehir Plants Sale of the 50% Stake in OMCO Establishment of Topkapı & Çayırova Plants Acquisition of Anadolu Cam Sanayii A.Ş. (Regional Expansion) Production started in Yenişehir Plant, (Further Expansion in Domestic Market) Closure of Topkapı Plant, Start of Production in Eskişehir Plant, Temporary Shut Down of Merefa Plant due to Modernization Process 12

13 Corporate Structure ANADOLU CAM SANAYİİ A.Ş. 100% AC Glass Holding BV 51% 75% 100% 26% JSC Mina Camiş Elektrik Üretim A.Ş. 49% 25% Balsand BV. Anadolu Cam Investment BV. LLC Ruscam Glass 100% 100% LLC Ruscam Management Co. Merefa Glass Company Ltd. CJSC Brewery Pivdenna LLC Energosystems 100% 100% 100% 100% LLC Ruscam Glass Packaging Holding 100% 100% Moscow Kirishi 100% Ufa 100% 100% Pokrovsky Gorokhovets 13

14 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 that respects people and nature with its high quality and value added products SUSTAINABILITY Anadolu Cam published its first sustainability report for the year

15 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 Strong technological know-how Financial strength Experience in developing markets Fast growth ability High quality and wide portfolio of products Experienced and qualified technical teams COMPETITIVE ADVANTAGE ANADOLU CAM will continue to enjoy its strenght and experience in the industry for its ambitious growth plans and new expansion opportunities. 15

16 GLASS PACKAGING BUSINESS SEGMENT OVERVİEW 29 16

17 Glass Packaging Anadolu Cam Operations & Global Presence Anadolu Cam, operational in 4 regions with 2,3mn 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, mineral water and pharmaceuticals sectors SHAREHOLDERS 23% F. Float Ukraine Merefa Plant 85K tons/year Russia Gorokovets, Pokrov, Ufa, Kirishi and Kuban Plants Total Capacity of 1.165K tons/year Şişecam 77% Glass Packaging Group Market Shares Global 2,5% #5 Turkey Mersin, Eskişehir and Yenişehir Plants Total Capacity of 1.025K tons/year Europe Russia 6,3% 27% #5 #1 Georgia Mina Plant 60K tons/year capacity Georgia 58% #1 17

18 Global Glass Packaging Market Industry Dynamics ~USD 45 Billion global market accounting for ~9%-10% of global packaging industry Annual glass container consumption of +450 Billion units incl. on trade sales 5 producers dominate 40% of the market High barriers to entry in small markets with highly fragmented customer base and wide range of products Asia Pacific & Europe, being the largest consumers, compose 70% of the market In unit terms 86% of glass containers produced are purchased by beverage industry and 12% by food sector Asia Pacific (including China and India) and Eastern Europe have high growth potentials on the back of increasing alcoholic beverage consumption in the former and EU accession of the latter Regional Breakdown of Glass Packaging Production Capacity 3Q 2017 Consumption Growth ECAGR Demand by Regions 3Q 2017 N. America 9% Global %4,5 M. East & Africa 4% Australia & Asia 2% E. Europe 9% Turkey* % Asia Pacific 38% Demand By Segments 3Q 2017 Pharma 14% Personal Care 9% Other 4% Food 40% North America 40 Plants M.East & Africa Europe 106 Plants Russia 38 Plants Asia Pacific 21 Plants S. America 15% W. Europe 24% Beverage 34% South America 22 Plants 5 Plants Global Players # of Plants Installed Capacity (mn tons) Market Share Owens Illinois 79 16,2 19,5% Ardagh 35 6,0 7,1% Verallia 33 5,0 6,4% BA Vidro 18 3,8 4,6% Anadolu Cam 10 2,3 2,5% 18 *Global market ECAGR is in value terms, growth figure given for Turkish glass packaging market is in volume terms

19 Appendix 19

20 Summary Financials SUMMARY BALANCE SHEET (Million TL) YE Q H M 2017 Change Total Assets % Cash & Cash Equivalents % Financial Assets & Derivatives % Trade Receivables % Inventories % Equity-Pickups % Property, plant and equipment % Intangible assets % Tax & Deferred Tax Assets % Other* % Total Liabilities % Interest Bearing Liabilities & Derivatives % Trade Payables % Provisions % Tax & Deferred Tax Liabilities % Other** % Equity % Equity holders of the parent % Minority Interest % *Other Receivables, Prepaid Expenses, Other Current & Non-Current Assets **Other Payables, Deferred Income 20

21 Summary Financials SUMMARY INCOME STATEMENT (Million TL) 3Q Q 2017 Change 9M M 2017 Change Revenue % % Cost of Goods Sold % % Gross Profit % % Research and development % % Sales and marketing % % General and administrative % % Other income (expense), net % % Income from Equity Pick-ups % 8 8-6% Income from Investing Activities % % EBIT % % EBITDA % % Financial Expense, net % % Income before Tax % % Tax Expense, net % % Net income % % Net income after Minority Interest % % Minority Interest % % Earnings per share (TL): 0,05 0,07 0,56 0,22 21

22 Summary Financials CASH FLOW STATEMENT (Million TL) M M 2017 Net Profit Non-cash Operating cash flows provided before changes w/c Change in w/c Cash flows from operating activities Interest paid Interest received Dividend paid Taxes paid Capex Free Cash Flow Proceeds from sale of property, plant and equipment Other cash flows from operating activities Other cash flows from investing activities Proceeds from financial liabilities Repayments of financial liabilities Other cash flows from financing activities FX gain/loss on cash and cash equivalents Net decrease/increase in cash and cash equivalents

23 ŞİŞECAM GROUP OVERVIEW 29 23

24 Şişecam at a Glance ~$3 Billion Revenue 4,6 Million Tons Glass Production 2,3 Million Tons Soda Production Employees Presence in 13 Countries 5 th Flat Glass Producer Globally 3 rd Glassware Producer Globally 5 th Glass Packaging Producer Globally 10 th Soda Ash Producer Globally Leader Producer in Basic Chromium Sulfate Globally 4 th Chromic Acid Producer Globally Free Float 26% Anadolu Hayat Emeklilik 0,05% Efes Holding 8% ŞİŞECAM İşbank 66% 81 year of corporate history ~140 Export Countries 44 Production Plants $2,7 Billion Market Cap. Listed Company since

25 Key Financial Indicators Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 32% 18% 21% 20% 24% 25% 23% 28% 7% 12% 15% 14% 8% % M M 2017 Revenue EBITDA Revenue Growth Y-o-Y EBITDA Margin 25

26 Financial Highlights - Revenue Segments Contribution to Revenue 9M2016 4% 9M % TRY mn % 34% 20% 38% % 21% 21% 18% Flat Glass Glassware Glass Packaging Chemicals Other* 9M 2016 Flat Glass Glassware Glass Chemicals Other* 9M 2017 Packaging * Consists of energy trade of Şişecam 26

27 Financial Highlights - EBITDA Segments Contribution to EBITDA** 9M M 2017 TRY mn 33% 6% 30% 29% 6% 37% % 12% 19% 9% Flat Glass Glassware Glass packaging Chemicals Other* 9M 2016 Flat Glass Glassware Glass Packaging Chemicals Other* 9M 2017 *Consists of energy trade of Şişecam ** Excluding income from revaluation gain from financial instruments, sale of Eskişehir Oluklu and Omco 27

28 Revenue & Cash Generation Revenue by Geography TRY bn 5,3 28% 6,0 28% 23% 23% 49% 49% 6,9 31% 7,3 31% 23% 23% 8,3 31% 21% 46% 46% 48% 6,0 7, , , , , , , M M 2017 Domestic Export from Turkey Sales from Foreign Operations 9M M % 20% 23% 22% 11% 48% 42% Europe Russia & Georgia & Ukraine Domestic Export 13% 28

29 Revenue & Cash Generation Exports from Turkey Exports of USD 555 Million in M to 140 countries North & Middle America 6% South America 4% Africa Europe 48% 9% Middle East 15% Asia 16% Far East 1% Oceania 1% Top 10 Countries Italy 13% Egypt 6% China 5% USA 4% UK 4% France 4% Bulgaria 4% Spain 4% Lebanon 3% Germany 3% 29

30 Global Presence Strong Global Player with Competitive Profitability 27% 17% 20% 19% 26% 10% 25% 18% 18% 17% 27% 11% 30% 28% Glass Revenues' Share in Total Owens Illinois 100% NSG 100% Şişecam 77% Owens Corning 43% Asahi Glass 51% Ardagh 39% St Gobain 26% Asahi Glass Owens Illinois St Gobain Owens Corning Ardagh NSG Şişecam Gross Margin EBITDA Margin Calculations were made based on 9M2017 financials except for St. Gobain (2017 H1 financials were the latest available data) Sources: Bloomberg 30

31 Şişecam History Glassware and container production Paşabahçe (Modest Growth) Reaching World glass volumes, Efficient Management Structure Investments Abroad To Be Among The Top 3 Producers Globally Investment Structuring s 2000 s 2014 s Onwards Expansion of product range State of the art Technologies, institutional R&D «The World is our Market» Strong Growth Global Vision Regional leadership achieved, Higher market share regionally 31

32 Corporate Structure İŞBANK ŞİŞECAM Flat Glass Glass Packaging Glassware Chemicals Other Trakya Cam Sanayii* Anadolu Cam Sanayii* Paşabahçe Cam Sanayii Denizli Cam Sanayii* Soda Sanayii* Şişecam Enerji Camiş Elektrik Automotive Glass Alliance Rus AO Şişecam Automotive Bulgaria EAD AGAR Trading AO Trakya Yenişehir HNG Float Glass Limited (JVA) Trakya Investment B.V. Glasscorp SA Fritz Holding GMBH Trakya Glass Rus AO Trakya Polatlı TRSG Glass Holding BV Şişecam Otomotiv A.Ş. Trakya Glass Rus Trading AO Şişecam Flat Glass Holding B.V. JSC Mina LLC Ruscam Glass LLC Ruscam Mgmt Co. Merefa Glass Co. Ltd. CJSC Brewery Pivdenna LLC Energosystems Balsand BV LLC Ruscam Glass Pack. Holding AC Glass Holding BV Anadolu Cam Inv. BV Moscow Kirishi Ufa Paşabahçe (Shangai) Trading Co. Ltd. Camiş Ambalaj Sanayii Paşabahçe Bulgaria EAD Paşabahçe Investment B.V. Nude Glass Investmen t BV Paşabahçe Magazaları Paşabahçe Srl Istanbul Investmen t BV Nude Design Investment BV Camiş Madencilik Camiş Egypt Rudnik Vijenac Şişecam Shanghai Soda Lukavac Şişecam Bulgaria Cromital Şişecam Elyaf Oxyvit Kimya Şişecam Chem Inv. BV Şişecam Sigorta Camiş Ltd. Şişecam Çevre Sistemleri Şişecam Dış Tİcaret SC Glass Trading BV Pokrovsky Gorokhovets OOO Posuda Paşabahçe Egypt JSC Solvay Sodi Şişecam Flat Glass İtaly S.R.L Saint Gobain Glass Egypt S.A.E. Trakya Glass Bulgaria EAD * Publicly traded at BIST 32

33 Operating Territories PRODUCTION PLANTS IN TURKEY ŞİŞECAM FLAT GLASS ŞİŞECAM GLASSWARE ŞİŞECAM GLASS PACKAGING ŞİŞECAM CHEMICALS Trakya Cam Sanayii A.Ş. Trakya Plant - Kırklareli Mersin Plant - Mersin Trakya Yenişehir Cam Sanayii A.Ş. Yenişehir Plant - Bursa Trakya Polatlı Cam Sanayii A.Ş. Polatlı Plant - Ankara Şişecam Otomotiv A.Ş. Şişecam Otomotiv Plant - Kırklareli Paşabahçe Cam San. Ve Tic. A.Ş. Kırklareli Plant Eskişehir Plant Denizli Cam San. Ve Tic. A.Ş. Denizli Plant Camiş Ambalaj Sanayii A.Ş. Tuzla Plant- İstanbul Anadolu Cam Sanayi A.Ş. Mersin Plant Anadolu Cam Yenişehir Sanayi A.Ş. Yenişehir Plant - Bursa Anadolu Cam Eskişehir Sanayi A.Ş. Eskişehir Plant Soda Sanayi A.Ş. Soda Plant - Mersin Kromsan Krom Bileşikleri Plant - Mersin Camiş Madencilik Cities in operation: Aydın, Balıkesir, Bilecik, İstanbul, Karabük, Kırklareli, Mersin Cam Elyaf San. A.Ş. Gebze Plant- Kocaeli Oxyvit Kimya San. ve Tic. A.Ş. Mersin Plant 33

34 Prudent Risk Management Policies Leverage Leverage with conservative NET DEBT / EBITDA levels Liquidity Maintain sufficient liquidity to meet short-term funding and finance equity portion of Capex FX Position FX position limited to +/- 25% of shareholder s equity Counterparty Not only a diversified relationship banks portfolio, but also access to international debt capital and loan markets at favorable rates. Interest Rate Derivatives Balanced fixed and variable rate loan book Limited to hedging only, no speculative trading 34

35 Credit & Corporate Governance Ratings Credit Ratings MOODY S LT FCY Rating Ba1 Stable S&P LT FCY Rating BB Negative Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,44 from 9,35 in December As a Corporate Policy, Şişecam continues to strive for reaching the highest level of Corporate Governance practices, where its heritage of «good corporate governance practices» has already been evidenced by the recent rating received. Sustainability remains at the core of operations and strategy, with continuously improved practices

36 Sustainability 36

37 Disclaimer This information in this document has been obtained by Anadolu Cam A.Ş. from sources believed to be reliable, however, Anadolu Cam A.Ş. cannot guarantee the accuracy, completeness, or correctness of such information. This document has been issued for information purposes only. The financial reports and statements announced by Anadolu Cam A.Ş. to the public and the relevant corporations are accepted to be the sole material. Anadolu Cam A.Ş. does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents due to the misleading information in this document. All estimations contained in this document are the opinions of Anadolu Cam A.Ş. and can be subject to change without notice. This document cannot be interpreted as an advice to the investors and Anadolu Cam A.Ş. cannot be held responsible for the results of investment decisions made on account of this document. This document has been issued specially to the person, whom the document is concerned and may not be reproduced, distributed or shared with third parties for any purpose. FX Rates M2016 9M2017 USD/TL Period End 1,78 2,13 2,32 2,91 3,52 3,00 3,55 Period Average 1,79 1,90 2,19 2,72 3,02 2,93 3,59 EUR/TL Period End 2,35 2,94 2,82 3,18 3,71 3,36 4,19 Period Average 2,30 2,53 2,90 3,02 3,34 3,27 4,00 37

38 Anadolu Cam A.Ş. Şişecam Genel Merkezi D-100 Karayolu Cad. No:44A Tuzla/İstanbul Turkey Tel : (+90) Fax: (+90) Contact Details Görkem Elverici, Chief Financial Officer gelverici@sisecam.com Tel: (+90) Başak Öge, Investor Relations Director boge@sisecam.com Tel: (+90) Investor Relations Team SC_IR@sisecam.com Hande Özbörçek hozborcek@sisecam.com Tel: (+90) Sezgi Eser Ayhan seayhan@sisecam.com Tel: (+90)