2017 Q4 TRAKYA CAM Investor Presentation

Transcription

1 2017 Q4 TRAKYA CAM Investor Presentation

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

3 Financial & Operational Overview 2017 Q4 Highlights Key Financial Indicators Operational Performance 3

4 2017 Q4 Highlights Financials Highlights Revenues up by 34% YoY, reaching TL 1.3 Billion in 2017 Q4 Adjusted EBITDA of TL 290 Million, up by %51 YoY with margin of 23% Developments in the fourth quarter Higher flat glass sales prices in Turkey, Russia and Europe Strong demand for auto-glass and encapsulation business Share of international sales at 54% in Q4 17 Revenue generation of encapsulation business at EUR 45 Million in Q4 17 FCFE increased to TRY 423 Million in 2017 Capital expenditures were TRY 124 Million, Capex to Sales at 10% Given a bid for Sangalli Manfredonia in Italy Announcement of greenfield investment for an additional float line in Polatlı 8%-10% anti-dumping tax per ton for 5 years on clear flat glass originating from Russia 4

5 Key Financial Indicators Summary Income Statement Adjustments excluded from EBIT & Net Income: TRY 80 Million revaluation gain on financial instruments (included in net income) in 2017 TRY 53 Million revaluation gain on financial instruments (included in net income) in 2017 Q4 TRY 14 Million revaluation gain on financial instruments (included in net income) in 2017 Q3 TRY 284 Million income from Soda Stake Sale in 2016 TRY 68 Million revaluation gain on financial instruments in 2016 (included in net income) TRY 63 Million revaluation gain on financial instruments (included in net income) in 2016 Q4 TRY mn 2016 Q Q Q4 YoY QoQ Growth Growth YoY Growth Revenue % 28% % Gross Profit % 37% % EBITDA % -8% % Dep.&Amortization % -1% % EBIT % -12% % Gross Profit-Opex(G&A+Marketing+R&D)+Depreciation 2 Gross Profit-Opex(G&A+Marketing+R&D) EBITDA w/other Items % 20% % Adjustments NM NM NM Dep.&Amortization % -1% % EBIT w/other Items % 28% % Adjusted EBITDA w/other Items % 6% % 3 excluding adjustments Net Income after Minority Share % 37% % Adjusted Net Income % 28% % Capex % 234% % Margins % Gross Profit 30% 31% 33% 303 bps 229 bps 29% 32% 290 bps EBIT 6% 16% 11% 484 bps -488 bps 7% 13% 607 bps EBITDA 14% 24% 17% 346 bps -657 bps 16% 21% 474 bps EBIT w/other Items 19% 21% 21% 148 bps 0 bps 24% 19% -452 bps Adjusted EBITDA w/other Items 20% 27% 23% 254 bps -447 bps 21% 25% 398 bps Adjusted Net Income 10% 16% 16% 650 bps 3 bps 9% 15% 573 bps Capex/Sales 9% 4% 10% 67 bps 593 bps 8% 5% -292 bps 5

6 Key Financial Indicators Summary Balance Sheet TRY mn 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 Free Cash Flow Net Profit Free Cash Flow Free Cash Flow Walk ( )* TRY mn Net Cash Position in FCF 423 Sale of tangible/intangible assets 24 Financial Investments* -353 Employee Termination Benefits -9 Net Change in Financial Liabilities -122 Disposal of Subsidiaries/Capital Increase 118 FX Translation 162 Dividends received 3 Other -9 Net decrease/increase in cash and cash equivalents 238 * Eurobond Investments, proceeds from advances & loans given Net Profit Non-cash Items Change in w/c Interest received,net Dividend paid Taxes paid Capex 2017 *In 2016, TRY 299 Million cash was collected from the sale of Soda Sanayii stake which was set off in non-cash items in cash flow statement. TRY 271 income was generated from this sale. For the exhibit above titled «Free Cash Flow Walk», TRY 271 Million of Soda Stake Sale was deducted from net income generated in 2016 and TRY 299 Million was added to non-cash items of

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 % 41% 39% 46% 2016 Q4 Europe Russia Domestic Export Elimination (-) 2017 Q4 6% 7% 15% 8% Domestic Export from Turkey Russia Europe Strong demand in Turkey coupled with price hikes introduced throughout the year Favorable currency conditions on EUR denominated auto glass sales Positive price effect coming from increased sales of value added glasses and strong contribution from auto glass in Europe Capturing more market share in Russia coupled with strong pricing and Ruble appreciation 8

9 Sales by Businesses Accelerated Growth in All Businesses Revenue Breakdown by Businesses TRY mn 34% 35% 34% 66% 65% 66% 2016 Q Q Q4 Basic Glass Auto-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 Consolidated Net Debt/EBITDA TRY mn , , ,93 3, ,24 1,37 1, ,83 0,76 0,81 0,75 0, , , EBITDA Capex EBITDA/Capex Maturity Breakdown of Debt 2016 Q Q Q Q Q Q Net Debt Net Debt/EBITDA Currency Breakdown of Debt % 5 years- 4-5 year 3-4 year 2-3 year 1 to 2 year within 1 year 3% 4% 5% 16% 25% 48% 58% 40% 0% 10% 20% 30% 40% 50% 60% USD EUR Other 10

11 Operational Performance Continued Production with High Capacity Utilization Production Volume (Flat & Frosted Glass) K tons International Turkey 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 2.7 mn K/tonnes of Total Annual Capacity Production increase year on year in 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 32% % 26% % 18% 18% Consolidated Revenue Breakdown % 59% % 66% 51% 82% 41% 41% 34% 18% % 55% Revenues EBITDA EBITDA Margin 32% 26% 19% 18% 18% 19% 18% 19% 18% 21% 26% 25% International2 Domestic Excluding; 2017: TRY 80 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 Adjusted EBITDA Margin EBITDA Margin 12

13 Trakya Cam Global & Local Presence History Organizational Structure 13

14 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 Romania Glasscorp Auto-glass 1 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 India HNG Float Glass Limited Float Glass, Mirror Lİne 100K tons / year SHAREHOLDERS 2017 Market Shares Turkey* Europe* Global** Free Float; 31% 5% 4% 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 2017YE is 74.5 million tonnes- %63 of total capacity is in Asia Pacific region Major capacity increases in 2017 were done in Asia Pacific, and Europe Growth promising geographies are India, Middle East, Africa, Turkey which have high-medium profitability ratios Top 4 producers dominate 29% market share Improved pricing environment in Europe, Russia and Turkey 66% Şişecam; 69% #1 #1 #5 indicates number of Encapsulated Automotive Glass Plant indicates number of Float Line Plant indicates number of Automotive Glass Plant *Calculated according to consumption data. #1 player in terms of capacity ** Trakya Cam s total flat line capacity/ Worldwide Flat Line Capacity 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 % Polatlı 1 Float Line (290K ton Total Capacity) Laminated Line 15% Mersin 2 Float Lines (565K ton Total Capacity) Mirror Line, Frosted Glass Line, Solar Glass Line Top Importers & Total Import Volume K tons In 2017, imports from Russia and China have decreased in volumes thanks to recovery in Russian local prices and antidumping measures against China. 8%-10% anti-dumping tax per ton was imposed on clear flat glass originating from Russia for 5 years 66% Trakya Cam Competitor Import Top 5 countries Top 5 countries Top 5 countries Top 5 countries Top 5 countries Top 5 countries Romania China China Russia Russia Russia China Romania Iran China China China Belgium Belgium Belgium Iran Iran Iran USA Iran Bulgaria Belgium Belgium Bulgaria Egypt Bulgaria Egypt 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 4,8 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 42 Production Plants $2,9 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% 28% 15% 16% 12% 8% 7% Revenue EBITDA Revenue Growth Y-o-Y EBITDA Margin 21

22 Financial Highlights - Revenue Segments Contribution to Revenue 19% % 35% 21% % 38% TRY mn % 21% 21% 17% Flat Glass Glassware Glass Packaging Chemicals Other* 2016 Flat Glass Glassware Glass Chemicals Other* 2017 Packaging * Consists of energy trade of Şişecam 22

23 Financial Highlights - EBITDA Segments Contribution to EBITDA** % % TRY mn % 33% 29% 39% % 13% 19% 10% Flat Glass Glassware Glass packaging Chemicals Other* 2016 Flat Glass Glassware Glass Packaging Chemicals Other* 2017 *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 11, ,3 6,0 23% 28% 24% 24% 6,9 28% 28% 23% 23% 8,6 37% 7,4 31% 23% 23% 53% 47% 49% 49% 46% 40% Domestic Export from Turkey Sales from Foreign Operations 23% 20% 23% 11% 46% 40% Europe Russia & Georgia & Ukraine Domestic Export 23% 14% 24

25 Revenue & Cash Generation Exports from Turkey Exports of USD 740 Million in 2017 to 150 countries North & Middle America 6% South America 5% Africa Europe 49% 10% Middle East 15% Asia 13% Far East 1% Oceania 1% Top 10 Countries Italy 13% Egypt 6% USA 5% China 4% Bulgaria 4% UK 4% France 4% Spain 4% Lebanon 4% Germany 4% 25

26 Global Presence Strong Global Player with Competitive Profitability 32% 28% 25% 27% 28% 19% 17% 17% 16% 16% 11% 10% Asahi Glass Owens Illinois St Gobain Ardagh NSG Şişecam Glass Revenues' Share in Total Owens Illinois 100% NSG 100% Şişecam 77% Asahi Glass 50% Ardagh 39% St Gobain 26% Gross Margin EBITDA Margin Calculations were made based on 2017 financials Sources: Bloomberg & Company 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 1.Şişecam, Trakya Cam and Anadolu Cam have shares on Camiş Elektrik 2.Şişecam and Trakya Cam have shares on Çayırva Cam Sanayi 3.Şişecam and Paşabahçe have shares on Camiş Ltd 4.Çayırova Cam have shares on Cam Elyaf * Publicly traded at BIST 28

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 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 9,48 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

32 Sustainability 32

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 hozborcek@sisecam.com Tel: (+90) Sezgi Eser Ayhan seayhan@sisecam.com Tel: (+90)