2017 Q3 TRAKYA CAM Investor Presentation

Transcription

1 2017 Q3 TRAKYA CAM Investor Presentation

2 Contents 3 Financial & Operational Overview Trakya Cam Şişecam Group Overview 2

3 Financial & Operational Overview 2017 Q3 Highlights Key Financial Indicators Operational Performance 3

4 2017 Q3 Highlights Financials Highlights Revenues up by 44% YoY, reaching TL 1 Billion in 2017 Q3 Adjusted EBITDA of TL 273 Million, up by %78 YoY with margin of 27% Developments through the nine months Strong contribution to top line from Turkey on the back of price hikes in architectural glass and strong demand and pricing in auto-glass Demand and pricing levels continued to be strong in Western and Southern Europe Revenue generation of encapsulation business recorded at EUR 41 Million in Q3 17 Demand in Balkans was flattish as pricing levels stabilized in the third quarter Profitability of Romanian auto-glass unit continued to increase Share of international sales increased to 55% in Q3 17 FCFE increased to TRY 398 Million in 9M 17 Capital expenditures were TRY 37 Million, Capex to Sales at 4% 4

5 Key Financial Indicators Summary Income Statement Adjustments excluded from EBIT & Net Income: YoY QoQ 9M 9M YoY TRY mn Q3 Q2 Q3 Growth Growth Growth Revenue % -6% % Gross Profit % -12% % TRY 27 Million revaluation gain on financial instruments (included in net income) in 9M 2017 TRY 14 Million revaluation gain on financial instruments (included in net income) in 2017 Q3 TRY 12 Million revaluation loss on financial instruments (included in net income) in 2017 Q2 TRY 284 Million income from Soda Stake Sale in 9M 2016 TRY 5 Million revaluation gain on financial instruments (included in net income) in 9M 2016 and 2016 Q3 EBITDA % 3% % Dep.&Amortization % 2% % EBIT % 4% % 1 Gross Profit-Opex(G&A+Marketing+R&D)+Depreciation 2 Gross Profit-Opex(G&A+Marketing+R&D) EBITDA w/other Items % 14% % Adjustments NM NM NM Dep.&Amortization % 2% % EBIT w/other Items % 4% % Adjusted EBITDA w/other Items % 3% % 3 excluding adjustments 4 Including other income&expense, income from equity pick-ups & investment activities Net Income after Minority Share % 9% % Adjusted Net Income % 9% % 5 excluding adjustments Capex % -4% % Margins % Gross Profit 29% 33% 31% 223 bps -197 bps 29% 32% 288 bps EBIT 9% 14% 16% 717 bps 155 bps 8% 15% 654 bps EBITDA 18% 21% 24% 598 bps 216 bps 17% 22% 518 bps EBIT w/other Items 14% 18% 19% 574 bps 186 bps 12% 18% 593 bps Adjusted EBITDA w/other Items 22% 25% 27% 521 bps 248 bps 21% 26% 456 bps Adjusted Net Income 9% 14% 16% 657 bps 221 bps 9% 14% 511 bps Capex/Sales 8% 4% 4% -393 bps 9 bps 8% 4% -442 bps 5

6 Key Financial Indicators Summary Balance Sheet TRY mn 2016 YE 9M 2017 YoY Growth Total Assets % Cash & Cash Equivalents % Financial Assets % Trade Receivables % Inventories % Equity-Pickups % Property, plant and equipment % Intangible assets % Tax & Deferred Tax Assets % Other* % Total Liabilities % Interest Bearing Liabilities & Derivatives % Trade Payables % Liabilities & Provisions for employee benefits % Tax & Deferred Tax Liabilities % Provisions % Other** % Equity % Equity holders of the parent % Minority Interest % *Other Receivables, Prepaid Expenses, Other Current & Non-Current Assets **Other Payables, Deferred Income 6

7 Key Financial Indicators Liquidity Analysis TRY mn M M 2017 Net Profit Non-cash Change in w/c Interest received,net Dividend paid Taxes paid Capex Free Cash Flow TRY mn M M 2017 FCF Sale of tangible/intangible assets Financial Investments* Employee Termination Benefits Net Change in Financial Liabilities Disposal of Subsidiaries/Capital Increase FX Translation Dividends received 27 3 Other Net decrease/increase in cash and cash equivalents * Eurobond Investments, proceeds from advances & loans given 7

8 Sales by Geographies Accelerated Growth in All Operating Regions YoY Revenue Evolution through Regions Breakdown of Gross Sales by Region TRY mn 2016 Q Q % 37% 45% 38% 2016 Q3 Europe Russia Domestic Export Elimination (-) 2017 Q3 5% 8% 7% 9% Europe Russia Export Domestic Strong contribution on the back of price hikes,favorable currency effect on EUR denominated auto glass sales and increase in value added glass sales from Turkey operations Demand in Balkans was flattish as pricing levels stabilized in the third quarter Demand and pricing levels continued to be strong in Western and Southern Europe Net sales in Russia benefited from growth in sales volume while price levels were flattish across the region 8

9 Sales by Businesses Accelerated Growth in All Businesses Revenue Breakdown by Businesses TRY mn 35% 34% 34% 38% 34% 65% 66% 66% 62% 66% 2016 Q Q Q3 9M M 2017 Basic Glass Automotive Glass Starting 2017, home appliances are reported in basic glass. Before 2017, it was reported under automotive glass section Encapsulation is reported in automotive glass section 9

10 Financials Performance Consolidated EBITDA & CAPEX TRY mn 976 7,75 Consolidated Net Debt/EBITDA TRY mn 1,06 0,83 0,76 0,81 0,75 0,76 0, , , , ,81 3, , Q Q3 Capex EBITDA EBITDA/Capex Maturity Breakdown of Debt 2017 Q Q Q Q Q Q Q Q3 Net Debt EBITDA Net Debt/EBITDA Currency Breakdown of Debt 2017 Q3 2% 5 years- 4-5 year 3-4 year 2-3 year 1 to 2 year within 1 year 5% 4% 5% 14% 25% 46% 57% 41% 0% 10% 20% 30% 40% 50% USD EUR Other 10

11 Operational Performance Continued Production with High Capacity Utilization Production Volume (Flat & Frosted Glass) K tons International Domestic Q Q M M 1.8 mn K/tonnes of Total Annual Capacity 1.8 mn K/tonnes of Total Annual Capacity 2.3 mn K/tonnes of Total Annual Capacity 2.5 mn K/tonnes of Total Annual Capacity 2.7 mn K/tonnes of Total Annual Capacity Production increase year on year in the nine months of 2017 is due to inclusion of one float line in Italy starting 2016 October,31 *All figures do not include the capacities in India & Egypt 11

12 Financial Summary Consolidated Financials Consolidated Revenue Breakdown 58% 19% 18% 26% 32% 18% % 22% 28% 23% 28% 35% 26% Q Q Q Q Q2 Q3 9M 9M Q Q3 9M M 2017 Revenues EBITDA EBITDA Margin International Domestic 32% 26% 19% 18% 18% 19% 18% 19% 18% 20% 26% 26% Excluding; M: TRY 27 mn revaluation gain on fixed income securities 2016: TRY 284 mn one-off gain from the sale of SODA shares, TRY 3,8mn from building sale, TRY 68 mn revaluation gain on fixed income securities 2014:TRY 129,7mn one-off gain from the sale of Paşabahçe and SODA shares M Adjusted EBITDA Margin EBITDA Margin 12

13 Trakya Cam Global & Local Presence History Organizational Structure 13

14 Flat Glass Operations & Global Presence 1 1 Slovakia Richard Fritz Incapsulation Hungary Richard Fritz Incapsulation 2 Germany Richard Fritz Holding Incapsulation, Prototype, Spareparts 1 Şişecam Flat Glass Italy, Srl Float, Laminated Line 220K tons / year 1 indicates number of Encapsulated Automotive Glass Plant 1 Romania Glasscorp Auto-glass Turkey Egypt Float,Frosted & Auto Glass, Saint-Gobain Glass Mirror, Coated, Processed, Egypt (JV-30%) Laminated Line Float Glass Plant 1.795K tons / year 85K tons / year 2 Bulgaria Trakya Glass Bulgaria EAD Float, & Auto Glass, Mirror & Processed Laminated Line 470K tons / year 1 1 Russia, Rebuplic of Tataristan Trakya Glass Rus AO, AGAR Float & Auto Glass Mirror Line 230K tons / year 7 1 indicates number of Float Line Plant 1 1 India HNG Float Glass Limited Float Glass, Mirror Lİne 100K tons / year indicates number of Automotive Glass Plant SHAREHOLDERS 2016 Market Shares Turkey* Europe* Global** 3% 4% Sisecam; 69% Free Float; 31% Operations of Flat Glass in 10 countries with 2,7 mn tons/year installed capacity Production of Flat glass, figured glass, coated glass, mirror glass, laminated glass, solar glass, home appliances, automotive & encapsulated glass Industry Dynamics: Total flat line capacity as of 2016 is 72 million tonnes- %63 of total capacity is in Asia Pacific region Major capacity increases in 2016 were done in Europe, Turkey, India and Indonesia Growth promising geographies are India, Middle East, Africa, Turkey which have high-medium profitability ratios Top 4 producers dominate 30% market share Improved pricing environment in Europe, Russia and Turkey 69% *Calculated according to consumption data. #1 player in terms of capacity ** Trakya Cam s total flat line capacity/ Worldwide Flat Line Capacity #1 #1 #5 14

15 Local Presence High Concentration in the Local Market Trakya Cam s Capacities in Domestic Market Lüleburgaz 2 Float Lines (440K ton Total Capacity) Mirror, Autoglass Yenişehir 2 Float Lines (500K ton Total Capacity) Coated, Laminated Line Competition in Domestic Market Market Shares - Consumption 20% 2016 Polatlı 1 Float Line (290K ton Total Capacity) Laminated Line 11% Mersin 2 Float Lines (565K ton Total Capacity) Mirror Line, Frosted Glass Line, Solar Glass Line Top Importers & Total Import Volume K tons % Trakya Cam Competitor Import In the nine months of 2017, imports from Russia and China have decreased in volumes thanks to recovery in Russian local prices and anti-dumping measures against China M M 2017 Top 5 countries Top 5 countries Top 5 countries Top 5 countries Top 5 countries Top 5 countries Top 5 countries Romania China China Russia Russia Russia Russia China Romania Iran China China China China Belgium Belgium Belgium Iran Iran Iran Bulgaria USA Iran Bulgaria Belgium Belgium Belgium Iran Egypt Bulgaria Egypt Bulgaria Bulgaria Bulgaria Belgium Bulgarian imports include the sales coming from Trakya Cam s operation unit 15

16 Operating Profile Architectual Glass Clear Float -Glass Heat Control Glass (Low-E Coated Glass) Solar Control Glass (Online Coated Glass) Safety and Security Glasses Noise Control Glasses Decorative Glasses (Mirror, Patterned Glass) Related Industries Automotive Glass Home Appliances - Solar Glass Movable Door Glasses Fixed, Encapsulated Fixed Side Glasses Flush (Glass-in-Glass) Side Windows Backlites (Back Door Glasses) Sunroofs Double-glazed Bus Sidelites Bullet-proof Glass for Military Vehicles Combat Ship Glasses Encapsulated Glasses Refrigerator and Oven Glasses Solar Thermal Collector and Photovoltaics 16

17 History Trakya Cam was founded in Lüleburgaz, Turkey Automotive glass production started in Bulgaria. JV with Saint Gobain for Egypt and Russia Projects Polatlı and Russia Plants resumed production Takeover of the assets of Italian Sangalli Vetro Porto Lüleburgaz Automotive Glass Plant resumed production Mersin plant resumed production Yenişehir Plant resumed production Acquisition of Glasscorp in Romania 2nd float line in Bulgaria resumed production Laminated line in Polatlı became online in Lüleburgaz plant resumed production, being the first in the region to use float technology 2nd float line in Mersin resumed production First float line production in Bulgaria and added mirror and tempered glass to its portfolio Projects in Russia, Romania, India, Germany with the aim of expanding our operations to become a global player Acquisition of Fritz Group in Germany. JV with HNG Float Glass Ltd in India Cold repair of the 2nd float line in Mersin Restructuring of Bulgarian operations Wholly owned autoglass unit in Romania with the purchase of the remaining 10% shares in Glasscorp 17

18 Organizational Structure TRAKYA CAM SANAYİİ A.Ş. Trakya Yenişehir Cam Sanayii A.Ş. Trakya Polatlı Cam Sanayii A.Ş. Şişecam Flat Glass Holding BV TRSG Glass Holding BV HNG Float Glass Limited (JV) Trakya Investment B.V. Şişecam Otomotiv A.Ş. %85 %85 %100 %70 %50 %100 %100 Trakya Glass Bulgaria EAD Sisecam Flat Glass Italy SRL Saint Gobain Glass Egypt (JV) Trakya Glass Rus AO Trakya Glass Rus Trading AO Richard Fritz Holding GmbH Glasscorp SA Şişecam Automotive Bulgaria EAD Automotive Glass Alliance Rus AO AGAR Trading AO %100 %100 %30 %100 %100 %100 %100 %100 %100 %100 Richard Fritz Prototype + Spare Parts Gmbh Richard Fritz KFT Richard Fritz Spol S.R.O. %100 %100 %100 18

19 Şişecam Overview Executive Summary Revenue & Cash Generation Company Overview 29 19

20 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

21 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 26

22 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 27

23 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 28

24 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% 29

25 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% 25

26 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 + Company web sites 31

27 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 32

28 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 33

29 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 34

30 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 35

31 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

32 Sustainability 37

33 Trakya Cam Sanayi 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 Kayaer hozborcek@sisecam.com Tel: (+90) Sezgi Eser Ayhan seayhan@sisecam.com Tel: (+90)