2014 YE EARNINGS REVIEW 4th March 2015

Transcription

1 214 YE EARNINGS REVIEW 4th March 215

2 Turkey At A Glance in 214 GDP growth outlook is estimated as 3.1% on Y-o-Y basis in Q3 GDP growth is stated as 1.7%. Over the next 3- years period, average GDP growth is expected c. 4-5%, according to the Government s Mid-Term Economic Development Plan CBRT cut the policy rate three times by an aggregate of 175 bps in 214 to level of 8.25%. With the recent rate cut decision taken in February, policyy rate is currently standing at 7.5%. TL devalued against $ + basket by 2% on Y-o-Y basis ( ). Inflation remains significantly above Central Bank s (CBRT) target of 5%. Accordingly, CBRT revised its year-end inflation forecast up by 1 pp to 7.6% in its second inflation report of the year. Inflation rate as of December 214 is 8.17%. Unemployment rate is 1.7% as of November 214. Turkey s current account deficit (CAD) has reached $ 47.8 billion (Y-o-Y) as of November 214. Sources: 2

3 Other Operational Territories At A Glance in 214 Europe: With continued slow down in inflation, sensitive consumer sentiment economy remains challenging and fragile. Euro weakened by 13% again USD in 214. Unemployment rate at 11.4%,.8% GDP Growth rate, deflationary risks, countries with huge debts, exoected recovery in the region is being postponed. Delayed structural reforms and QE of ECB have limited the growth and economic activity in Eurozone. Central & Eastern Europe: Economic activity accelerated which benefited from a pick up in investments, falling unemployment and higher public spending in Hungary. Domestic demand has strengthened in many countries on the back of rising private consumption, falling unemplyment and improving corporate and consumer credit. As a resuly GDP growth rate of the region has been 2,9% in 214*. Russia: Russian economy had a difficult yearin 214 due to 5% fall in oil prices and international economic snactions leading to devaluation of Ruble by almost 75% against USD. Central bank of Russia increased key interets rate 6 times during 214; from 1.5% to 17%. As a result S & P and Moodys downgraded the country from BBB- to BB+ and from Baa1 to Baa2 respectively (both in 215). The crisis affected the economy, consumers, companies and financial markets quire negatively. Ukraine: As a result of on-going political tension with Russia, Ukrainian economy deteriorated throughout 214. With UAH devalued by 9% against USD, inflation rate reaching 25%, GDP as of 3Q14 shrunk by 5.3%. As a result of these, economic activity has decreased significantly. 3

4 Credit Ratings Affirmed in 214 Credit Rating/Outlook April 213 May 214 MOODY's Ba1/Stable Affirmed S&P BB+/Stable Affirmed 4

5 Corporate Governance and Sustainability ŞİŞECAM has received its Corporate Governance Rating*, for the first time in its history, by the end of 214 as «9.28». 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. ŞİŞECAM has also published its first Sustainability Report**. Sustainability remains to be placed at the core of operations and strategy, with continously improved practices. (*) (**) 5

6 Solid increase in Sales TL Mn 213 YE 214 YE YE Y-o-Y (%) Revenue 5,954 6,875 15% Gross Profit 1,494 1,872 25% EBIT % EBITDA 1,223 1,364 11% Net Profit % Gross Margin 25% 27% + 2 EBIT Margin 1% 1% EBITDA Margin 2% 2% Net Profit Margin 8% 6% YE Period End: Period Average:

7 Flat Sales in $ terms due to TL depreciation USD Mn 213 YE 214 YE YE Y-o-Y (%) Revenue 3,129 3,139 Gross Profit % EBIT % EBITDA % Net Profit % Gross Margin 25% 27% + 2 EBIT Margin 1% 1% EBITDA Margin 2% 2% Net Profit Margin 8% 6% YE Period End: Period Average:

8 Continuous Growth in Revenues, EBIT and EBITDA With significant Capex completed in 214, EBIT and EBITDA continued to increase despite the ramp-up periods. TL Mn , , Net Sales EBIT EBITDA 8

9 Completed CAPEX Programme not fully reflected to 214YE results yet.. 2% EBIT Margins(%) 15% 13,5% 15,6% 1% 6,7% 8,5% 1,7% 9.9% 5% % EBITDA Margins(%) 3% 25% 2% 18,9% 24,1% 25,4% 18,1% 2,5% 19.9% 15% 1% 5% %

10 Flat Glass and Chemicals Divisions Increased Contribution to EBITDA 214 YE - SALES 26% 31% 32% 214 YE - EBITDA 33% 21% 22% 23% 12% Flat Glass Glassware Glass Packaging Chemicals Flat Glass Glassware Glass Packaging Chemicals 23% 213 YE SALES(%) 28% 29% 213 YE EBITDA (%) 27% 25% 24% 27% 17% Flat Glass Glassware Glass Packaging Chemicals Flat Glass Glassware Glass Packaging Chemicals Balanced contribution of each segment to consolidated Sales&EBITDA continues, however especially the EBITDA share of Flat Glass and Chemicals Business have slightly increased due to sales price corrections implemented in flat glass, increase in global soda ash prices as well as TL depreciation impacting Chemicals 1 divisions topline positively.

11 Strong EBITDA Generation Encourages Capex $ Mn CAPEX EBITDA EBITDA/ CAPEX: 2,67X 1,53X,95X,73X 1,18X 11

12 Increasing Production Capacity In Line with Capex Undertaken Domestic vs International Glass Production ( tons) Domestic International Glass vs Soda Ash Production ( tons) Glass Soda

13 Sustained strong capital base and conservative debt levels TL Mn Net Debt Shareholders Equity NET DEBT/ EQUITY:,9X,11X,17X,24X,15X 13

14 Leverage Position - Net Debt&EBITDA $ Mn 9 1, , , ,8,6 2,4 1, Net Debt Net Debt/EBITDA NET DEBT/ EBITDA: 1,36X,37X,42X 1,1X 1,33X,78X As a result of prudent financial policies, declining Capex vs. strengthening cash generation from the operations, Net Debt/EBITDA level has declined significantly. 14

15 Strong Cash Position $ Mn Gross Debt Cash&cash equivalents Net Debt 15

16 Debt Profile Restructured since 212 Debt Currency Breakdown(%) % 41% 22% 1% % % 36% 21% 4% 1% % 44% 27% 5% 3% % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% USD EUR RUR UAH TL Years Debt Maturity-As of 214 YE Debt Profile- As of 214 YE 5 yrs and after 4-5 5% 32% Floating % 17% Fixed % 23% Total % 1% 2% 3% 4% We continue to maintain the currency and the maturity profile of our Debt Portfolio. 16

17 Strong FX Position $ Mn Consolidated Net FX Position We benefited from the long $ position given that the Group s cash is mostly placed in $. 61% of this long FX position is USD and the rest is in EUR. 17

18 Investments & CAPEX Strategy The major part of heavy CAPEX Cycle is completed In , Şişecam Group has followed a robust investment strategy in line with its growth strategy to maximize shareholder s value Total investments realized in 214 is $ 529 Million and a total of $1.9 billion in the last 3 years. Investments completed in 214: -1st Float Line in Polatlı, Turkey (March 214) -2nd furnace in Mina, Georgia (April 214) -1st Float Line and 1st Autoglass plant in Russia (May 214) -Modernization of Glasscorp Romania (November 214) Ongoing investments expected to be completed within the 215: -2nd Float Line in Bulgaria (Completed in February 215) -3rd Furnace in our Glass Packaging plant located in Eskişehir. 18

19 SEGMENT OVERVIEW - FLAT GLASS Trakya Cam - Consolidated TL Mn 213YE 214YE Y-o-Y Change Net Sales 1,488 2,19 36% EBITDA % Cash & Cash Eqivalents 85 1,127 4% Net Debt % Gross Margin (%) TL Mn Combined Flat Glass Segment Net Sales (*) 2,242 1,739 1,191 1,119 1, , EBIT (%) EBITDA (%) International Domestic ,2 35,6 29,2 28,8 25,6 18,5 28,3 18, 28,4 29, Tons ,548 1, Production(*) 1,453 1, , Gross Margin(%) EBITDA Margin(%) International Domestic 19 (*) excludes SGGE in Egypt

20 SEGMENT OVERVIEW - GLASSWARE Glassware - Consolidated Combined Glassware segment Net Sales TL Mn TL Mn 213 YE 214 YE YoY Change Net Sales 1,446 1,616 12% EBITDA % Gross Margin (%) EBIT (%) , ,315 1, , , EBITDA (%) ,4 36,1 32,7 3, 31,2 23,5 21,9 14,2 12,7 13, Domestic International Gross Margin EBITDA Margin 2

21 SEGMENT OVERVIEW - GLASS PACKAGING Anadolu Cam - Consolidated TL Mn 213 YE 214 YE YoY Change Net Sales 1,522 1,555 2% EBITDA % Cash & Cash Equivalents % Net Debt % Gross Margin (%) EBIT (%) TL Mn Combined Glass Packaging segment Net Sales 1, , ,459 1, International Domestic 1,584 EBITDA (%) Tons 1,611 1,723 Production 1,857 1,73 1, ,7 25,1 22,1 22,4 24,8 23,6 24,6 21,4 17,2 15, Gross Margin EBITDA Margin International Domestic 21

22 SEGMENT OVERVIEW - CHEMICALS Soda Sanayii - Consolidated TL Mn 213 YE 214 YE YoY Change Net Sales 1,44 1,66 14% EBITDA % Cash & Cash Equivalents % Net Debt Gross Margin (%) EBIT (%) EBITDA (%) TL Mn Combined Chemicals Segment Net Sales 1,769 1,985 1,618 1,466 1,187 1, International Tons Production ,2 2,7 28,7 26,6 2,5 18,9 23,1 2,5 32,1 24, ,117 1,966 1,894 1,825 1, Gross Margin(%) EBITDA Margin(%) International Domestic 22

23 DISCLAIMER Following USD/TL Exchange Rates have been used throughout the presentation: YE Period End: Period Average: This information in this document has been obtained by T. Şişe ve Cam Fabrikaları A.Ş. ( Şişecam from sources believed to be reliable, however, Şişecam 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 Şişecam to the public and the relevant corporations are accepted to be the sole material. Şişecam 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 Şişecam and can be subject to change without notice. This document cannot be interpreted as an advice to the investors and Şişecam 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. 23

24 CONTACT DETAILS T. Şişe ve Cam Fabrikaları İş Kuleleri, Kule Levent - Istanbul Turkey Tel : (212) Fax : (212) Görkem Elverici Aytaç Mutlugüller Başak Öge Emre İğdirsel Seda Akyüz Chief Financial Officer Deputy Corporate Finance & Corporate Finance & Corporate Finance & Chief Financial Officer Investor Relations Manager Investor Relations Officer Investor Relations Officer gelverici@sisecam.com amutluguller@sisecam.com boge@sisecam.com eigdirsel@sisecam.com sakyuz@sisecam.com Tel : (+9) Tel :(+9) Tel :(+9) Tel: (+9) Tel: (+9) Fax: ( +9) Fax: (+9) Fax: (+9) Fax: (+9) Fax: (+9)

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