2Q 2018 ANADOLU CAM Investor Presentation

Transcription

1 2Q 2018 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 2Q 2018 Highlights Revenue EBITDA Capex One-off Gains % YoY growth in consolidated sales volume; a) domestic up by 4%, b) international up by 17% (exports from Turkey up by 72%, whereas sales from other operating regions up by 11%) 2018 annual average price increases on a YoY basis ; a) Turkey: 12%-13% in TRY terms implemented in the beginning of 2018 b) Russia: 4% in RUB in 2Q2018 2Q Q Q Q Q Q % to 56% revenue split between domestic and international Gross Profit Net Income Free Cashflow sales (vs. 48%/52% in 2Q2017) Investment process of the fourth furnace in Eskişehir Plant continued during the quarter and became online on July 24th 222 TRY 60mn cash dividend distribution in May USD 481mn Market capitalization as of July 26th and 3-month average daily trading volume of 3,8mn shares 2Q Q Q Q H H 2018 Important Notice: Şişecam and its Group Companies were reporting third party logistic expenses by deducting from gross revenues. Starting from 4Q 2017, these expenses are now booked under S&M expenses. 2Q 2017 financial results were restated accordingly 4

5 Key Financial Indicators TRY mn Revenue Contribution by Geography Q 2017 Turkey Russia, Ukraine&Georgia 2Q 2018 TRY mn EBITDA Contribution by Geography One-off gain , One-off gain 2Q 2017 Turkey Russia, Ukraine&Georgia Netherlands Reconciliations 2Q

6 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 & Anadolu Cam shares sale) : TRY 73mn (Anadolu Cam shares sale) : TRY 342mn (Anadolu Cam shares sale) + TRY 27mn (Revaluation gain Eurobond investments) : TRY 32mn (OMCO stake sale) + TRY 30mn (Revaluation gain Eurobond investments) - 2Q2017: TRY 32mn (OMCO stake sale) - TRY 5mn (Revaluation loss Eurobond investments) - 2Q2018: TRY 45mn (Revaluation gain Eurobond investments) EBITDA Margins 41% Q2017 2Q2018 Gross Margin EBIT Margin Net Sales Gross Profit EBITDA 16% 17% 21% 25% 28% 27% 30% 9% 10% 11% 27% 13% 13% 17% 25% 25% 22% 21% 21% 16% 17% 25% 24% 27% 23% 20% 22% Adjusted EBITDA Margins EBITDA Margin 22% 25% 25% 41% 25% 24% 27% Q2017 2Q2018 6

7 Anadolu Cam Sanayii Financial Results Consolidated EBITDA & CAPEX Consolidated EBITDA & NET DEBT TRY mn 747 TRY mn , , , , ,0 2,0 1, Q2017 2Q H2017 1H2018 EBITDA CAPEX NET DEBT NET DEBT/EBITDA Maturity Breakdown of Debt Currency Breakdown of Debt 0-1 yr 1H H 2018 UAH; 4% 50% 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 0,4% 9% 17% 23% USD; 23% EUR; 21% RUB; 51% Revenues; - 44% in TRY - 37% in RUB - 10% in EUR - 5% in USD - 4% in Other currencies >5 yrs 0,6% 7

8 Anadolu Cam Sanayii Operational Results Glass Packaging Production Breakdown K Tons Consolidated Revenues Breakdown TRY mn Q2017 2Q Q2017 2Q2018 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 2Q Q % Mineral Water 9% 12% 26% Beer High Spirits 20% 24% Wine 12% 14% Food Non-alcoholic Beverages 8% 14% 19% 4% 3% Exports Other 18% 3% 4% 9

10 Anadolu Cam Sanayii Sales Breakdown Anadolu Cam Russia Value Based Sales Mix 2Q Q % 3% 16% Mineral Water Beer 19% 3% 3% 10% 56% High Spirits Wine Food Non-alcoholic Beverages Exports 4% 3% 9% 54% 9% 9% 10

11 Anadolu Cam Sanayii Sales Breakdown Growing Share of Exports in Revenue Mix Anadolu Cam Turkey Anadolu Cam Russia 12% 13% 12% 20% 15% 14% 14% 16% 19% 6% 2015 FY 1Q Q Q Q2017 2Q2018 4Q FY Q2017 2Q

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 Establishment of Topkapı & Çayırova Plants Acquisition of Anadolu Cam Sanayii A.Ş. (Regional Expansion) Sale of the 50% Stake in OMCO Acquisition of the Minority Interests in Yenişehir & Eskişehir Plants Yenişehir & Eskişehir Plants' Merger under Anadolu Cam Sanayii A.Ş. 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 52% 76% 100% 26% JSC Mina Camiş Elektrik Üretim A.Ş. 48% 24% LLC Ruscam Management Co. Merefa Glass Company Ltd. CJSC Brewery Pivdenna LLC Energosystems 100% 100% 100% 100% Balsand BV. 90% 10% LLC Ruscam Glass Packaging Holding Anadolu Cam Investment BV. Production facilities consolidated under "Anadolu Cam San. A.Ş." legal entity; - Mersin Plant - Yenişehir (Bursa) Plant - Eskişehir Plant Production facilities consolidated under "LLC Ruscam Glass Packaging Holding" legal entity; - Gorokhovets Plant - Pokrovsky Plant - Ufa Plant - Kirishi Plant - Kuban Plant 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 strength 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 2,5mn 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 1.055K tons/year (1.205K tons/year with the inclusion of Eskişehir Plant 4th furnace in July) Europe Russia 6,4% 33% #5 #1 Georgia Mina Plant 60K tons/year capacity Georgia 57% #1 17

18 Global Glass Packaging Market Industry Dynamics As of 2017, USD 50 Billion global market accounting for 7% of global packaging industry Annual glass container consumption of +450 Billion units incl. on trade sales In unit terms 86% of glass containers produced are purchased by beverage industry and 12% by food sector 5 producers dominate 40% of the market Asia Pacific & Europe, being the largest consumers, compose 70% of the market While 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, Middle East & Africa region is also promising with young population and growing disposible income High barriers to entry in small markets with highly fragmented customer base and wide range of products Consumption Growth ECAGR Demand by Regions 2Q 2018 Global %4,5 M. East & Africa 4% Australia & Asia 2% E. Europe 9% Turkey* 5,1% Demand By Segments 2Q 2018 Personal Care 9% Other 4% Regional Breakdown of Glass Packaging Production Capacity 2Q 2018 N. America 9% Asia Pacific 37% Pharma 14% Food 40% North America 39 Plants South America 22 Plants M.East & Africa 5 Plants Europe 105 Plants Russia 38 Plants Asia Pacific 21 Plants S. America 15% Anadolu Cam 10 2,3 2,5% *Global market ECAGR is in value terms, growth figure given for Turkish glass packaging market is in volume terms W. Europe 24% Beverage 34% Global Players # of Plants Installed Capacity (mn tons) Market Share Owens Illinois 78 16,6 20,0% Ardagh 34 5,7 6,9% Verallia 33 5,3 6,4% BA Vidro 18 3,8 4,6% 18

19 Appendix 19

20 Summary Financials SUMMARY BALANCE SHEET (Million TL) Q H M Q H 2018 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) Q H M Q H 2018 YoY 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 % 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): 0,61 0,05 0,15 0,22 0,24 0,08 0,31 105% 21

22 Summary Financials CASH FLOW STATEMENT (Million TL) H H 2018 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 4,8 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% 82 year of corporate history 150 Export Countries 43 Production Plants $2,3 Billion Listed Company Market Cap. since

25 Financial Highlights Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 33% 24% 25% 28% 27% 21% 20% 19% 20% 22% 24% 26% 25% 26% H H Revenue Growth (yoy) 12% 15% 8% 16% 32% 36% 24% Revenue EBITDA Adjusted EBITDA Margin EBITDA Margin 25

26 Financial Highlights - Revenue Segments Contribution to Revenue 21% H % 37% 22% H % 37% TRY mn % 18% 20% 17% H Flat Glass Glassware Glass Chemicals Other* H Packaging Flat Glass Glassware Glass Packaging Chemicals Other* * Consists of energy trade of Şişecam 26

27 Financial Highlights - EBITDA Segments Contribution to EBITDA** H H TRY mn 29% 6% 36% 31% 1% 38% % 10% 19% 12% H Flat Glass Glassware Glass Packaging Chemicals Other* H Flat Glass Glassware Glass packaging Chemicals Other* *Consists of energy trade of Şişecam ** Excluding one-off incomes 27

28 Revenue & Cash Generation Revenue by Geography TRY bn 11,3 8,6 37% 7,4 6,9 6,0 31% 28% 28% 23% 28% 23% 23% 23% 24% 47% 49% 49% 46% 40% 6,8 5,3 38% 35% 21% 23% 42% 41% 42% 23% H % 13% 41% 21% H % 13% H H Domestic Export from Turkey Sales from Foreign Operations Europe Russia & Georgia & Ukraine Domestic Export 28

29 Revenue & Cash Generation Exports from Turkey Exports of USD 390 Million in H to 150 countries North & Middle America 7% South America 6% Africa 9% Europe 52% Middle East 13% Asia 11% Far East 1% Oceania 1% Top 10 Countries Italy 15% Egypt 7% Germany 5% France 4% Lebanon 4% USA 4% USA 4% Saudi Arabia 3% Spain 3% China 3% 29

30 Global Presence Strong Global Player with Competitive Profitability 33% 28% 16% 20% 18% 26% 10% 15% 16% 28% 12% 33% Glass Revenues' Share in Total Owens Illinois 100% NSG 100% Şişecam 74% Asahi Glass 51% Ardagh 37% St Gobain 14% Asahi Glass Owens Illinois St Gobain Ardagh NSG Şişecam Gross Margin EBITDA Margin Calculations were made based on 2018 H1 financials (NSG Pilkington financials are as of 2018 Q1) 30 Sources: Bloomberg & Company Websites

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* Camiş Madencilik Soda Sanayii* Şişecam Enerji Camiş Elektrik 1 Automotive Glass Rus AO Şişecam Automotive Bulgaria EAD AGAR Trading AO Trakya Yenişehir HNG Float Glass Limited Trakya Investment B.V. Glasscorp SA Richard Fritz Holding BV 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 Management 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 Pokrovsky Gorokhovets Paşabahçe Bulgaria EAD Paşabahçe (Shangai) Trading Co. Ltd. Paşabahçe Spain SL Paşabahçe Glass GmbH OOO Posuda Paşabahçe Investment B.V. Paşabahçe Srl Paşabahçe Magazaları Paşabahçe USA Inc. Istanbul Investment BV Nude Glass Investment BV Paşabahçe Egypt JSC Camiş Egypt Rudnik Vijenac Nude Design Investment BV Cam Elyaf 4 Şişecam Shanghai Soda Lukavac Şişecam Bulgaria Cromital Solvay Şişecam Holding A.G. Madencilik San. ve Tic. A.Ş. Şişecam Chem Inv. BV Şişecam Elyaf Oxyvit Şişecam Sigorta Camiş Ltd. 3 Şişecam Çevre Sistemleri Çayırova Cam Sanayi 2 Şişecam Dış Ticaret SC Glass Trading BV Camiş Ambalaj Sanayii Şişecam Flat Glass Italy S.R.L Saint Gobain Glass Egypt S.A.E. Trakya Glass Bulgaria EAD Solvay Sodi Şişecam Flat Glass South Italy S.R.L 1.Şişecam, Trakya Cam and Anadolu Cam have shares on Camiş Elektrik 2.Şişecam and Trakya Cam have shares on Çayırova Cam Sanayi 3.Şişecam and Paşabahçe have shares on Camiş Ltd 4.Çayırova Cam have shares on Cam Elyaf * 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- Stable FITCH LT FCY Rating BB+ Negative Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,48 from 9,44 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 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 only. The financial reports and statements announced by Anadolu Cam Sanayii A.Ş. to the public and the relevant corporations are accepted to be the sole material. Anadolu Cam Sanayii 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 Sanayii A.Ş. and can be subject to change without notice. This document cannot be interpreted as an advice to the investors and Anadolu Cam Sanayii 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 Q2017 2Q2018 1H2017 1H 2018 USD/TL Period End 2,13 2,32 2,91 3,52 3,77 3,51 4,56 3,51 4,56 Period Average 1,90 2,19 2,72 3,02 3,64 3,58 4,36 3,64 4,09 EUR/TL Period End 2,94 2,82 3,18 3,71 4,52 4,00 5,31 4,00 5,31 Period Average 2,53 2,90 3,02 3,34 4,11 3,93 5,20 3,93 4,94 37

38 Anadolu Cam Sanayii 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)