2017 Q2 TRAKYA CAM Investor Presentation

Transcription

1 2017 Q2 TRAKYA CAM Investor Presentation

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

3 Financial & Operational Overview 2017 Q2 Highlights Key Financial Indicators Operational Performance 3

4 2017 Q2 Highlights Financials Highlights Revenues up by 49% YoY, reaching TL 1 Billion in 2017 Q2 Adjusted EBITDA of TL 264 Million, up by %99 YoY with margin of 25% Developments through the first half Boosted YoY domestic revenue growth after price hike and increased auto sales Strong demand in Balkans, price hikes especially in Southern Europe, continuously increasing profitability of Romanian auto-glass unit, 35% YoY revenue growth in encapsulation Strong topline from Russian operations, further growth in operating margins Starting 2017, material contribution to topline from Italian operations Capex at TRY 38 Million. YoY Decrease in capex to sales ratio from 10% to 4% Distribution of TRY 120 Million cash dividend 4

5 Key Financial Indicators Summary Income Statement Adjustments excluded from EBIT & Net Income: TRY 13 Million revaluation gain on fixed income instruments (included in net income) in 2017 H1 TRY 12 Million revaluation loss on financial instruments (included in net income) in 2017 Q2 TRY 284 Million income from Soda Stake Sale in 2016 Q2 & 2016 H1 TRY mn 2Q Q Q 2017 YoY Growth QoQ Growth 1H H 2017 YoY Growth Revenue % 13% % Gross Profit % 13% % EBITDA % 13% % Dep.&Amortization % -3% % EBIT % 23% % 1 Gross Profit-Opex(G&A+Marketing+R&D)+Depreciation 2 Gross Profit-Opex(G&A+Marketing+R&D) EBITDA w/other Items % -5% % Adjustments NM NM NM Dep.&Amortization % -3% % EBIT w/other Items % 16% % Adjusted EBITDA w/other Items % 10% % 3 excluding adjustments 4 Including other income&expense, income from equity pick-ups & investment activities Net Income after Minority Share % 28% % Adjusted Net Income % 28% % 5 excluding adjustments Capex % 14% % Margins % Gross Profit 29% 33% 33% 338 bps 10 bps 29% 33% 319 bps EBIT 8% 13% 14% 617 bps 119 bps 8% 14% 625 bps EBITDA 17% 21% 21% 490 bps 8 bps 17% 21% 479 bps EBIT w/other Items 10% 17% 18% 749 bps 50 bps 12% 17% 571 bps Adjusted EBITDA w/other Items 18% 25% 25% 622 bps -62 bps 21% 25% 425 bps Adjusted Net Income 7% 12% 14% 678 bps 169 bps 7% 13% 650 bps Capex/Sales 10% 4% 4% -654 bps 4 bps 8% 4% -466 bps 5

6 Key Financial Indicators Summary Balance Sheet TRY mn 2016 YE 1H 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 H H 2017 Net Profit Non-cash Change in w/c Interest received,net Dividend paid Taxes paid Capex Free Cash Flow TRY mn H H 2017 FCFE Sale of tangible/intangible assets Financial Investments* Employee Termination Benefits Net Change in Financial Liabilities Disposal of Subsidiaries/Capital Increase FX Translation 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 TRY mn Breakdown of Gross Sales by Region 2Q Q % 37% 45% 38% 2Q'16 Europe Russia Domestic Export Elimination (-) 2Q'17 5% 7% 8% 9% Europe Russia Export Domestic Revenue contribution of European and Russian operations increased year on year thanks to consolidation of Italian flat glass company, rise in unit prices in Europe, ruble appreciation against TL, recovery in Russian economy 8

9 Sales by Businesses Accelerated Growth in All Businesses Revenue Breakdown by Businesses TRY mn 39% 36% 34% 40% 35% 61% 64% 66% 60% 65% 2Q Q Q H H 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 Consolidated Net Debt/EBITDA TRY mn 1,84 1,82 6,57 0,72 0,75 0,80 0,83 0,76 0,81 0,75 0, ,79 0, , ,81 3, , Q Q 2017 Capex EBITDA Maturity Breakdown of Debt 2Q years- 4-5 year 3-4 year 2-3 year 1 to 2 year within 1 year 4% 6% 5% 14% 26% 44% 0% 10% 20% 30% 40% 50% 1Q Q Q Q Q Q Q Q Q Q 2017 Net Debt EBITDA Net Debt/EBITDA Currency Breakdown of Debt 2Q 2017 USD EUR Other 10

11 Operational Performance Continued Production with High Capacity Utilization Production Volume (Flat & Frosted Glass) K tons International Domestic Q Q H H 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 first half of 2017 is due to inclusion of one float line in Italy starting 2016 year end *All figures do not include the capacities in India & Egypt 11

12 Financial Summary Consolidated Financials 19% 18% % % % % Q % 18% 23% Q 2017 Revenues EBITDA EBITDA Margin 26% 19% 18% 19% 18% 20% H1 18% 32% 42% % 25% 25% H H Consolidated Revenue Breakdown Excluding; TRY 13 mn revaluation gain on fixed income securities in 1H 2017 TRY 284mn one-off gain from the sale of SODA shares, TRY 3,8mn from building sale TRY 68 mn revaluation gain on fixed income securities in 2016 TRY 129,7mn one-off gain from the sale of Paşabahçe and SODA shares in Q 2016 International Q 2017 Domestic 1H H 2017 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 2016YE 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 H H 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 Iran Belgium Belgium Belgium Iran Iran Bulgaria China USA Iran Bulgaria Belgium Belgium Belgium Bulgaria Egypt Bulgaria Egypt Bulgaria Bulgaria Iran Belgium % Trakya Cam Competitor Import In the first half of 2017, imports from Russia and China have decreased in volumes thanks to recovery in Russian local prices and anti-dumping measures against China 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 ~150 Export Countries 44 Production Plants $2,8 Billion Listed Company Market Cap. since

21 Key Financial Indicators Sustained Growth in Revenue with Improving EBITDA Margin TRY mn 18% 21% 20% 7% 12% 15% % 25% 14% 8% % 22% 28% 13% H H 2017 Revenue EBITDA Revenue Growth Y-o-Y EBITDA Margin 21

22 Financial Highlights - Revenue Segments Contribution to Revenue H % H % TRY mn % 33% 20% 38% % 21% 22% 18% Flat Glass Glassware Glass Packaging Chemicals Other* H Flat Glass Glassware Glass Chemicals Other* H Packaging * Consists of energy trade of Şişecam 22

23 Financial Highlights - EBITDA Segments Contribution to EBITDA** H H TRY mn 33% 6% 30% 29% 6% 36% % 12% 19% 10% Flat Glass Glassware Glass packaging Chemicals Other* H Flat Glass Glassware Glass Chemicals Other* Elim. H Packaging *Consists of energy trade of Şişecam ** Excluding income from revaluation gain from financial instruments, sale of Eskişehir Oluklu and Omco 23

24 Revenue & Cash Generation Revenue by Geography TRY bn 5,3 23% 6,0 28% 24% 24% 53% 47% 6,9 28% 7,3 28% 23% 23% 23% 49% 49% 46% 22% 23% 49% 42% H H Domestic Export from Turkey Sales from Foreign Operations 8,3 31% 4,0 30% 5,3 35% 22% 48% 1H H % 23% 22% 10% 42% Europe Russia & Georgia & Ukraine Domestic Export 13% 24

25 Revenue & Cash Generation Exports from Turkey Exports of USD 376 Million in 2017 H1 to 146 countries North & Middle America 6% South America 4% Africa Europe 48% 10% Middle East 14% Asia 16% Far East 1% Oceania 1% Top 10 Countries Italy 14% Egypt 6% China 5% USA 4% UK 4% France 4% Bulgaria 4% Lebanon 4% Spain 3% Germany 3% 25

26 Global Presence Strong Global Player with Competitive Profitability 31% 27% 27% 26% 24% 25% 28% 20% 18% 22% 19% 16% 17% 18% 10% 11% Asahi Glass Owens Illinois St Gobain Owens Corning Ardagh NSG NEG Şişecam Glass Revenues' Share in Total NEG 100% Owens Illinois 100% NSG 100% Şişecam 77% Owens Corning 32% Asahi Glass 50% Ardagh 40% St Gobain 26% Gross Margin EBITDA Margin Calculations were made based on 1Q2017 financials except for NSG and St. Gobain (2016 financials were the latest available data) Sources: Companies Websites 26

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 27

28 Corporate Structure * Publicly traded at BIST 28

29 Operating Territories 29

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 30

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 Social Responsibility 32

33 Disclaimer This information in this document has been obtained by Trakya Cam Sanayi A.Ş. ( Trakya Cam from sources believed to be reliable, however, Trakya Cam 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 Trakya Cam to the public and the relevant corporations are accepted to be the sole material. Trakya Cam 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 Trakya Cam and can be subject to change without notice. This document cannot be interpreted as an advice to the investors and Trakya Cam 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 H12016 H12017 USD/TL Period End 1,78 2,13 2,32 2,91 3,52 2,89 3,51 Period Average 1,79 1,90 2,19 2,72 3,02 2,92 3,64 EUR/TL Period End 2,35 2,94 2,82 3,18 3,71 3,20 4,00 Period Average 2,30 2,53 2,90 3,02 3,34 3,26 3,93 33

34 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)