Investor Presentation 2013/H1

Transcription

1 Investor Presentation 2013/H1

2 Content 1. Şişecam Group Overview Executive Summary History and Development Presence in Global Glass Industry Mission, Vision and Strategy Investment Strategy Shareholding Structure Operating Territory Financial Highlights Prudent Risk Management Policies Sales Major Investments 2. Operating Profile Business Segments Appendix: H Earnings Review 2

3 1.Şişecam Group Overview 3

4 Executive Summary Şişecam is a conglomerate in Turkey Founded by İşbank in 1935 Operational in : Flat glass, Glass Packaging, Glassware and Chemicals Present in 13 countries: Turkey, Russia, Bulgaria, Egypt, Georgia, Bosnia Herzegovina, Romania, Ukraine, Italy, Germany, Slovakia, Hungary and India with exports to 150 countries Annual production of 3.7 million tons of glass and 1.98 million tons of soda ash Mcap of US$ 2.4 billion (August 2013), 28% of its shares are listed on BIST (SISE.IS) and 72% held by İşbank Annual Sales exceeding US$ 3 billion Alliances with global players Şişecam s Moody's rating is «Ba1» and S&P rating is «BB+» 4

5 History Establishment and Single Plant Stage Glassware and container production at Paşabahçe Modest Growth Strong Growth 1990 s Investment Restructuring Expansion of product range State-of-the-art technologies Institutional R&D The World is our Market Reaching world-class volumes Efficient Management Structure Investments abroad 2000 s onwards Global Vision Regional leadership achieved Higher market share regionally * To be in the Top 3 globally *JVs with St.Gobain and HNG * Acquisition of Glass Corp. in Romania *Acquisition of Richard Fritz in Germany. *Investments commenced in Russia for flat and auto glass 5

6 Presence in Global Glass Industry Market Shares (%)* Turkey Europe World Flat Glass Glassware Glass Packaging Soda Ash (*) As of August 2013 Eastern Russia & (000 tons) Turkey Europe Caucasia MENA Flat Glass Glassware World s 3 rd Largest Glassware Producer Glass Packaging Soda Ash (**) In terms of production capacity Şişecam s Position** Global Ranking* Europe World Flat Glass 4 6 Glassware 2 3 Glass Packaging 4 5 Soda Ash 4 10 (*) As of February 2013 Şişecam vs. Listed Global Glass Players Year Sales Total Glass Sales Business Rank Company Country Founded (Mil $) (Mil $) Areas ** 1 Saint Gobain France FG, GP, GF, CE 2 Asahi Japan FG,OP 3 NSG Japan FG, TG 4 Corning United States GF 5 Hoya Japan GW,OG, EL 6 NEG Japan GF, TG, EL 7 Schott Germany GP, TG, OG 8 ŞİŞECAM Turkey FG, GP, GW, CH 9 Owens Corning United States GF 10 Johns Manville United States GF, TF, CH Sales represent end figures (**) FG : Flat Glass, GP : Glass Packaging, GW: Glassware, CH : Chemicals, GF : Glassfiber, CE : Ceramics, TF : Technical Glass, OG : Optical Glass, EL : Electronics 6

7 Mission, Vision and Strategy Mission: Şişecam is a company that respects people and nature with its high quality and value added products. Vision: To be one of the leading companies in glass production and its other field of activities. Strategy: Rapid profitable growth through both inorganic & organic expansion with a wide array of product portfolio. 7

8 Group Corporate Structure İŞBANKASI ŞİŞECAM Flat Glass Glass Packaging Glassware Chemicals Trakya Cam * TR Glass Bulgaria EAD Anadolu Cam * OOO Ruscam (Gorokhovets) Paşabahçe Cam Denizli Cam * Soda Sanayii * Cam Elyaf Trakya Yenişehir Trakya Polatlı Anadolu Cam Eskişehir Anadolu Cam Yenişehir Paşabahçe Bulgaria Posuda Camiş Madencilik Solvay Sodi SGGE TRSG Autoglass OOO Ruscam Kuban OAO Ruscam Kirishi Camiş Ambalaj Paşabahçe USA Soda Lukavac Camiş Egypt TRSG Trakya Lojistik EAD Balkum (sand) Omco (moulds) Paşabahçe GMBH PB Mağazaları Camiş Elektrik Şişecam Bulgaria **Richard Fritz Germany **HNGIL India Glass Corp. Romania OOO Ruscam Holding Merafa Glass Co. OAO Ruscam Pokrovsky JSC Mina Rudnik Vijenak Oxyvit Kimya Cromital Asmaş Şişecam Shanghai Şişecam has four main lines of business and side activities that primarily support the core operations. Vertical integration guarantees stringent quality control. The group is managed by highly-experienced professionals long associated with the company. The level of institutionalization and stability is a valuable asset. Others; trading, investment, logistics and other companies. Production areas (*) Publicly Listed Companies (**) Recently joined the group. 8

9 Operating Territory - Turkey ŞİŞECAM PLANTS IN TURKEY Lüleburgaz İstanbul Kocaeli Eskişehir Polatlı Flat Glass Automotive Glass Mirror Laminated Glass Glassware Power Plant Paper Cardboard Pack. Processed Glass Coated Glass Glass Fiber Mould Casting Glassware Glass Packaging Paper Packaging Flat Glass Investments continue Bursa Yenişehir Glass Packaging Flat Glass Denizli Glassware Mersin Flat Glass Glassware Glass Packaging Soda Ash Chromium Chemicals Patterned Glass Cogeneration Plant Vitamin K-SMBS 9

10 Operating Territory - International 10

11 Financial Highlights Group Consolidated Key Indicators $mn /H1 2013/H1 Net Sales 2,885 2,357 2,806 2, EBITDA Net Fin. Debt Current Ratio Liabilities/Assets Shareholder's Eq. 2,361 2,465 2,682 2,729 3,145 2,911 Gross Margin (%) , EBITDA (%) ,5 EBIT (%) ,4 Net Income Net Income (%) /H1 Sisecam Main Indicators of Global Players Trakya Cam Saint Gobain NSG Asahi Anadolu Cam O-I EBITDA margins* 16,5% 16,8% 10,5% 3% 16% 17,8% 18,25% * Ref. REUTERS&Bloomberg- As of ŞİŞECAM IS AMONG THE GLOBAL PLAYERS WITH ITS; Conservative and prudent financial policies High profitability margins Access to international debt capital and Long-standing relations with international loan markets at favourable rates financial institutions 11

12 Financial Highlights Sales and EBITDA generation capacity of the group encourages Capex with conservative leverage levels $ mio /H1 Net Sales EBITDA $ mio /H1 EBITDA Capex 12

13 Financial Highlights (cont d) $ mio Leverage Position , , , ,20 1,00 0,80 0, , , /H1 - Net Debt Net Debt/EBITDA Net Debt / EBITDA 1,30x 1,36x 0,41x 0,40x 1,02x 1.56X * *Annualized EBITDA 13

14 Financial Highlights (cont d) A fairly balanced product portfolio Consolidated Sales H1/2013 Consolidated EBITDA H1/ % 21% 29% 21% 20% 28% 26% 29% Flat Glass Glassware Glass Packaging Chemicals Profitability Ratios /H1 Gross Margin (%) EBITDA (%) EBIT (%) Net Income (%) Margins on recovery path due to: - Price hikes made in Q1 and Q2 segment excepts chemicals - Increased sales in Q2 14

15 Prudent Risk Management Policies Risk Financial Policy Leverage Leverage with conservative NET DEBT/EBITDA levels Liquidity Maintains sufficient liquidity cushion to meet short-term funding and finance equity portion of Capex FX Position Minimal FX position tied to shareholder s equity level Counterparty Diversified relationship banks portfolio Interest Rate Balanced fixed and variable rate loan book Derivatives Limited to hedging only, no speculative trading 15

16 Sales $ mio Domestic Export Sales from foreign prod. Top 10 Exported Countries as of 2013/H1 Italy 12% Egypt 7% Germany 7% France 6% UK 5% Bulgaria 5% China 4% USA 4% Spain 3% Lebanon 3% Exports of $414 million in 2013/h1 to more than 150 countries Eurozone still accounting for more than half of exports Top 10 countries constitute 56% of the total exports. Consolidated Export Breakdown 2013/H1 24% 54% 10% 12% 16 Europe Asia+Ocenia America Middle East +Africa

17 Major Investments $ mio % % 25% % % % 19% 366* 20% 15% 10% Capex Capex/ Sales 100 9% 5% /H1 0% Şişecam Group has always followed a robust investment strategy in line with the global economic outlook. Major on-going investments in 2013: -2nd flat line to Trakya Bulgaria for flat glass and 2nd furnace in tableware. -Investments in Russia with the frame of JV with St. Gobain for flat glass and automotive glass. -1st float line in Polatlı, Ankara for flat glass. Modernization of Glasscorp Romania Acquisition of 50% of HNG s flat glass operations in India and 100% of Richard Fritz in Germany have been completed in H1/2013. Capex to begin in H2/2013: 2nd furnace in Mina plant (Georgia) for glass packaging and 3rd furnace in Posuda (Russia) for glassware. * Total acquisition amount of $ 65 mio for HNG and Fritz JV s is not included in the H1/2013 Capex of $ 366 mio. 17

18 2.Operating Profile 18

19 Business Segments - Flat Glass Industry Dynamics: Half of the global production is in Asia-Pasific to include mainly China and India. 4 global producers, namely Saint Gobain, NSG Pilkington, Asahi and Guardian account for more than 34% of the total world production. In Eastern Europe, Russia has the largest flat glass consumption with apprx. 2 million tonnes followed by Turkey with 1.4 million tonnes. GDP growth is the main driver of flat glass consumption making Russia and the new EU countries in Eastern Europe potential growth markets. Trakya Cam Consolidated Financial Highlights $mn / H / H1 Net Sales EBITDA Net Fin. Debt Current Ratio Şişecam: Trakya Cam produces high quality float glass, figured glass, coated glass, laminated glass, mirror glass and automative glass. Flat Glass Sales by Product: Mainly building windows (75%), furnitures & interior appliances (5%) and automotive glass (20%). Flagship company Trakya Cam is 70% owned by Şişecam and the remaining 30% is traded at BIST with market cap of US $ 1 billion.(august 2013) Production capacity exceeding 1.9 million tonnes with 7,5 operating float lines (6 in Turkey and 1 in Bulgaria) and 4,5 more will be operational in the coming years. Established JVs in Egypt and Russia with St.Gobain and with HNG in India. Richard Fritz acquisition is completed. 70% of sales in Turkey and 30% international it has %14 market share in Europe. Significant capex undertaken in Turkey, Bulgaria and Russia. Vision: To become a global flat glass producer, growing rapidly with its strong brands and providing innovative solutions. Strategy: Expansion to a wider geography and increasing the product diversity with a focus on processed flat glass through strategic alliances and acquisitions. Liabilities/Assets Gross Margin (%) EBITDA (%)

20 Business Segments - Glass Packaging Industry Dynamics: 60 million tons of glass packaging consumed annually. 3 companies account for 40% of the global market where Şişecam has apprx. 3% global market share. Eastern Europe is high-potential-growth market due to EU accession. The segment has high barriers to entry in smaller markets with highly fragmented customer base and wide range of products. Glass comprises of around 30% of the whole packaging market. Advanced technology making transportation viable. Şişecam: Anadolu Cam is the lead brand name of the glass packaging segment of Şişecam. 20% of it is listed and traded at the BIST and the remaining 80% is held by Şişecam with a market cap of US $576 million (August 2013) Its product portfolio is composed of glass containers for food, beverages, mineral water, alcohol drinks and health products. Almost 2 million tonnes of production capacity 89% market share in Turkey, 7,9% in Europe and 3,7 globally. Anadolu Cam Consolidated Financial Highlights $mn / H / H1 Net Sales EBITDA Net Fin. Debt Current Ratio iabilities/assets Gross Margin (%) Vision: Being a global glass packaging company which adds value to people and environment by providing customized products and services to its customers and being a solution partner with creative processes Strategy: To add value to people and environment by providing customized products and services to its customers. To be a solution partner with creative processes. EBITDA (%)

21 Business Segments - Glassware Industry Dynamics: 6% of global glass consumption is in the glassware industry with a market value of USD 8 billion. USA and Europe consumption growth slowed down however slow recovery is expected. Russia, Middle East, Asia and other EM have high growth potentials in glassware consumption. 3 companies dominate apprx. 40% of the global glassware market and Pasabahce is one of them with a market share of 10%. There are 2 main production segments in glassware: handmade and the rest is automated. Paşabahçe produces both. Şişecam: Paşabahçe Cam is the leading brand name of the glassware segment, wholly owned by Şişecam. Its wide array of product portfolio comprises of automated, handmade, heat resistant, crystalware, paper and cardboard packaging. Production facilities are spread to 3 countries (Turkey, Russia and Bulgaria) and 5 locations. Additionally it has sales and marketing offices in all the major export markets. One third of sales are in Turkey and two third of sales are international. 67% market share in Turkey, 25% in Europe and 10% globally. Capex investments in Bulgaria and Russia. Glassware Consolidated Financial Highlights $mn H1/ Net Sales EBITDA Gross Margin (%) H1/ EBITDA (%) (*) includes Paşabahçe Cam, Posuda, Paşabahçe Bulgaria, Denizli Cam, Camiş Ambalaj Vision: To be the world leader in glassware segment. Strategy: To increase its global market share through brand recognition, segment differentiation and new export markets. 21

22 Business Segments - Chemicals Industry Dynamics: Soda ash is mainly used in the glass industry, cleansing products and other chemical-related industries. World soda ash demand is growing at an average annual rate of almost %3-4 per year. Chromium chemicals products are mainly used in leather, metal plating and wood preservation industries. Global chromium chemicals demand is expected to increase by 2,5% per year. Soda Sanayii Consolidated Financial Highlights Şişecam: Chemicals Group produces soda ash, chromium compounds, industrial raw materials and glass fiber with operations in 6 countries. Exports to 92 countries. 10% of Soda Sanayii A.Ş. is listed and traded at the BIST and the remaining 90% is held by Şişecam with a market cap of US $ 572 million.(august 2013) In soda ash business, the Group has a production capacity of 1.98 million tons of soda ash at its plants located in 3 countries; Turkey, Bosnia Herzegovina and Bulgaria. It has production joint venture in Solvay Sodi located in Bulgaria. In soda ash business: 4th in Europe and 10th in the world. In chromium chemicals business: 1st in Basic Chromium Sulphate, 1st in Sodium Bichromate and 3rd in Chromic Acid in the world (2013) * 71% market share in Turkey, 15% in Europe and 3,1 globally. $mn H1/ H1/ 2013 Net Sales EBITDA Net Fin. Debt ,2 5 Current Ratio Liabilities/Assets Gross Margin (%) EBITDA (%) , , Vision: To strenghten its position both in global soda ash market and in global chromium chemicals market. Strategies: Sustainable and profitable growth Strenghtening our position among the leader players Geographical expansion Creating synergies with acquisitions and strategic partnerships Improving the product portfolio with value added products Partnership approach and reliable solution provider for customers 22

23 Appendix: H EARNINGS REVIEW

24 Sales by Business Segments SALES (TL Mio) Şişecam (Cons.) Flat Glass Glassware Glass Packaging H H Chemicals Sales across all segments have increased in TL terms in H compared to last year. 24

25 Sales by Geography (Million TL) 1,368 1, H H Domestic Exports Sales From Foreign Operations While sales in Turkey increased by 6,4% and in foreign operations by %3, exports were below last year in TL terms due to the situation in Eurozone mainly. 25

26 Production (000 Tonnes) Glass Soda Ash H H Production in glass has been 5,4% lower in H compared to the same period of last year mainly due to cold repairs in flat glass and relocation of a plant in glass packaging segment. 26

27 Profitability 530 EBITDA (TL Mio) Şişecam (Cons.) Flat Glass Glassware Glass Packaging Chemicals H H EBITDA has been lower in H compared to last year, as a result of increased energy prices except for our chemicals segment due to the surge in soda ash sales price. 27

28 Profitability Improving 28

29 Capex Consolidated Capex (TL mio) 804,5 423 H H Capex almost doubled in 2013 in line with the investment plans. H capex includes the acquisition of 50% of HNG shares, 100 % of Fritz and increased stake at JV with St.Gobain in Egypt, approximately total of TL 160 million. 29

30 Net Debt by Business Segment NET DEBT (*) ($ Mio) 54,4 31,5 437,9 422,2 86,4 219,5 83,8-50,8 H H Flat Glass Glassware Glass Packaging Chemicals (*) Excluding other net debt/cash position Highest increase in indebtedness is in flat glass segment due to the heavy capex and M & A activities undertaken in H

31 Financials Highlights $ mio Consolidated Net FX Position Currency Breakdown of Debt 4% 4% 26% 21% 1% 46% 36% 24% 38% H H USD EUR TL RUR UAH FX position managed by a diverse basket of currencies $ and mix of the debt portfolio has changed after the debut Eurobond issuance 31

32 Disclaimer Following USD/TL Exchange Rates have been used throughout the presentation: H1/ H1/2013 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. 32

33 Contact Details T. Şişe ve Cam Fabrikaları İş Kuleleri, Kule Levent - Istanbul Turkey Tel : (0212) Fax : (0212) İbrahim Babayiğit 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 Specialist ibabayigit@sisecam.com amutluguller@sisecam.com boge@sisecam.com eigdirsel@sisecam.com sakyuz@sisecam.com Tel : (+90) Tel :(+90) Tel :(+90) Tel: (+90) Tel: (+90) Fax: ( +90) Fax: (+90) Fax: (+90) Fax: (+90) Fax: (+90)

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