1q 2016 anadolu cam investor presentation...efficient management structure investments abroad...
TRANSCRIPT
1Q 2016
ANADOLU CAM
Investor Presentation
Contents
2
Anadolu Cam Sanayii A.Ş. Overview
Glass Packaging Business Segment Overview
3
12
Şişecam Group Overview16
ANADOLU CAM SANAYİİ A.Ş. OVERVİEW
3
29
2015 Highlights
As the 4th largest glass packaging producer, Anadolu Cam dominates 2,5% of the global
industry
Anadolu Cam kept its #1 position in Russian glass packaging market and increased its
market share from 28% at the end of 2015 to 29% in 1Q2016 while the demand was
shrinking
Anadolu Cam Mina Plant continued to be the only glass packaging production facility
located in Georgia and had a 64% market share
The company started to implement the strategy of increasing exports’ share in its
Turkey and Russia operations,
Parallel to Anadolu Cam’s strategy of divesting its non-core assets, the company sold
9,7% of its stake in Soda Sanayii and generated TRY 264mn one-off gain 4
Key Financial Indicators
5
One-off items
1Q2015
TRY 72,9mn: Sale of Soda Sanayii shares
1Q2016
TRY 264mn: Sale of Soda Sanayii shares
One-off gains are excluded from adjusted EBIT and EBITDA figures. Adjusted margin calculations are based on those figures.
TRY mn 1Q2015 1Q2016 Growth
Revenue 288 345 20%
Gross Profit 58 69 19%
EBIT 93 280 202%
Adjusted EBIT 20 16 -18%
EBITDA 141 337 139%
Adjusted EBITDA 68 73 8%
Net Income 59 254 329%
Capex 44 122 178%
Margins:
Gross Profit 20% 20% -10 bps
EBIT 32% 81% 4893 bps
Adjusted EBIT 7% 5% -219 bps
EBITDA 49% 98% 4869 bps
Adjusted EBITDA 24% 21% -244 bps
Net Income 21% 74% 5300 bps
Capex/Sales 15% 35% 2014 bps
Anadolu Cam Sanayii – Financial Results
Gross Margin 22% 16% 17% 21% 20% 20%
EBIT Margin 9% 11%* 11%* 32%* 81%*
EBITDA Margin 21% 22%* 25%* 25%* 49%* 98%*
*One-off gains; TRY 100mn from Topkapı land sale in 2013, TRY 119,5mn from Paşabahçe and Soda share sales in 2014, TRY 72,9mn from Soda share sale in 2015. In 2015 and 2016, Soda share sales tookplace in the first quarters and one-off gains generated from those share sales were TRY 72,9mn in 1Q2015 and TRY 264mn in 1Q2016. Adjusted EBIT and EBITDA margins are as follows; 2% and 16% for2013, 3% and 17% for 2014, 7% and 21% for 2015, 7% and 24% for 1Q2015 and 5% and 21% for 1Q2016, respectively
1.4591.523 1.555 1.552
288 345
323242 269 328
58 69312 341 388 393 141 337
2012 2013 2014 2015 1Q2015 1Q2016
Net Sales Gross Profit EBITDA
9%*
6
TRY mn
Consolidated Financial Results*
Anadolu Cam Sanayii – Financial Results
Revenues Breakdown
7*International Sales include sales from foreign operations + export from foreign operations + export from Turkey.
Production Breakdown
K Tons
856 814814 865
221 217
1.001889
930 899
222 193
1.8571.703 1.744 1.764
443 410
2012 2013 2014 2015 1Q2015 1Q2016
Domestic International
731 835 853 933191 216
728 688 702 619
96 129
1.459 1.523 1.555 1.552
288345
2012 2013 2014 2015 1Q2015 1Q2016
Domestic International
TRY mn
**
Anadolu Cam Sanayii History
8
1969-1996
2002
2011
2013
First Foreign Direct Investment: Acquisition of Georgian Mina Plant
3 Plant Investments in Turkey; Establishment of Topkapı and Çayırova plants & Acquisition of Anadolu Cam Sanayii A.Ş.
1998
2006
2012
2014
First Investment in Russian Federation (followed by 4 additional plants until 2009
Acquisition of Ukrainian Merefa Plant
Production started in Yenişehir Plant
Closure of Topkapı Plant (at 2012 YE)
Production started in Eskişehir Plant
Modernization Process of Merefa Plant (temporarily stopped production)
1935 Initiation of Glass Packaging Production - Single Plant
Corporate Structure
9
MERSİN PLANT
UKRAINE
GLASS PACKAGING GROUP
TURKEY RUSSIA
YENİŞEHİR PLANT
ESKİŞEHİR PLANT
MEREFA PLANTGOROKHOVETZ PLANT
KIRISHI PLANT
KUBAN PLANT
POKROVSKYPLANT
UFA PLANT
GEORGIA
MİNA PLANT
Vision, Mission, Strategy & Sustainability
10
“... Being a global glass packaging company which constantly adds value to people and environment by providing
customized products and services to its customers and being a solution partner with creative processes…’’
MISSION
“Şişecam is a company that respects people and nature with its high quality and value added products’’
VISION
SUSTAINABILITY
Anadolu Cam published its first sustainability report
http://www.sisecamcamambalaj.com/camvecevre/en-US/anadolu_cam_121115.pdf
Strategy & Competitive Advantage
11
COMPETITIVE ADVANTAGE
Strong technological know-how
Financial strength
Experience in developing markets
Fast growth ability
High quality and wide portfolio of products
Experienced and qualified technical teams
ANADOLU CAM will continue to enjoy its strenght and experience in the industry for itsambitious growth plans and new expansion opportunities.
STRATEGY
Continue to be the leading glass packaging supplier in the region
Strengthen its current position in the global glass packaging market
GLASS PACKAGING BUSINESS SEGMENT OVERVİEW
12
29
Glass PackagingANACM’s Footprints
2,3mn tons of aggregate glass packaging production capacity in 4 different countries with 10 production facilities.
79%
21%
OWNERSHIP
Şişecam
Free Float
Operations & Global Presence
Industry Dynamics
Şişecam’s lead brand name in the glass packaging segment with aportfolio composed of glass containers for food, alcoholic and non-alcoholic beverages, mineral water and pharmaceuticalsPresence in 4 countries with 10 production facilities located in Turkey,Russia, Georgia and Ukraine (temporarily shut down)Şişecam glass packaging segment has 2,5% market share in globalindustry4th largest glass packaging producer in Europe and in the World
Glass packaging industry accounts for 9-10% of the global packagingindustryGlass packaging consumed is 60mn tons p.a.5 producers dominate ~40% of the global marketAsia-Pacific and Europe account for 70% of the global glass packagingindustryEastern Europe is a high-potential-growth market thanks to EU accessionGlass packaging segment has high barriers to entry in smaller marketswith highly fragmented customer base and wide range of products
13
Global Glass Packaging Market
14
North America
SouthAmerica
M. East &AfricaAsia
Pacific
Europe
34 Plants
23 Plants
5 Plants
106 Plants
21 Plants
Russia
38 Plants
Global Players # of Plants Mkt Share
Owens Illinois 80 20%
Ardagh 35 7%
Veralia 33 6%
Anadolu Cam 10 2,5%
Global Glass Packaging Market
15
Geographical Breakdown (in value terms) Industrial Breakdown (in unit terms)
42%
36%
15%
9%4%
Food Beverage Pharma Personal Care Other
38%
12%14%
4%
10%
21%
Asia Pacific Eastern Europe Latin America
Middle East and Africa North America Western Europe
ŞİŞECAM GROUP OVERVİEW
16
29
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, BosniaHerzegovina, Romania, Ukraine, Italy, Germany, Slovakia, Hungary and India withexports to 140 countries
Annual production of approx. 4,2 Million tons of Glass and 2,2 Million tons ofSoda Ash
Annual Sales reaching USD 3 Billion
Alliances with global players
Rated by Ba1/BB+ by Moody’s and S&P
17
Revenue & Cash Generation
Significant Margin Improvement
22,7%
17,8%
14,7%
19,2%
26,0%
21,6%
15,1%
23,6%
Chemicals
Glass packaging
Glassware
Flat Glass
EBITDA Margins*
1Q2016 Three-Year Average
*EBITDA figures were adjusted according to the one-time non operational income/expenses 18
Revenue & Cash Generation
Balanced Contribution of the Segments in Conformity with Previous Years’ Results
Segments’ Contribution to Revenue
* Consists of energy trade of Şişecam
33%
23%
18%
20%
5%
Flat Glass Glassware Glass Packaging Chemicals Other*
1Q20161Q2015
33%
24%
18%
20%
5%
19
Revenue & Cash Generation
Balanced Contribution of the Segments in Conformity with Previous Years’ Results
Segments’ Contribution to EBITDA
* Consists of energy trade of Şişecam
1Q20151Q2016
32%
14%16%
32%
6%
Flat Glass Glassware Glass packaging Chemicals Other
29%
18%18%
29%
6%
20*
Revenue & Cash Generation
Geographical Contribution to Revenue
71% 29%
Operations in Turkey Foreign Operations
TRY 1,9 bnRevenue in
1Q 2016
TRY 1,3 bnRevenue
TRY 538 mnRevenue
Domestic
Export
Europe
RussiaUkraineGeorgia
68%
32%
68%
32%
21
Revenue & Cash Generation
Exports from Turkey
22
North & Middle
America
SouthAmerica
Middle East
Africa
Asia
Far East
Oceania
Europe
6%
5%
11%
16%
48%12%
1%
2%
Top 10 CountriesExports of USD 162 Million in 1Q 2016 to more than 150 countries
Italy 14%
Egypt 8%
France 6%
China 5%
Saudi Arabia 4%
Bulgaria 4%
Spain 4%
UK 4%
Germany 4%
Brazil 3%
Global Presence
Strong Global Player with Competitive Profitability
23Sources: Bloomberg & Companies Websites
Calculations were made based on 1Q2016 financials except for St Gobain, NSG and NEG (2015 YE financials were the most recent data)
26%
20%
25%
22%
17%
20%21%
32%
16%
20%
12%
16%18%
10%
24% 23%
3% 5% 5% 5%0,4% 0,3%
4%
9%
Asahi Glass OwensIllinois
St Gobain OwensCorning
Ardagh NSG NEG Şişecam
Gross Margin EBITDA Margin Net Margin
Ardagh 100%
NEG 100%
Owens Illinois 100%
NSG 99%
Şişecam 74%
Owens Corning 70%
Asahi Glass 55%
St Gobain 13%
% of Glass Sales in Total Revenues
Operating Territories
24
Şişecam History
25
1935-1960Establishment and Single Plant Stage
1960-1990Strong Growth
1990’s Investment Structuring
2000’s Global Vision
2014’s OnwardsTo Be Among The Top 3 Producers
Globally
Regional leadership achievedHigher market share regionally
Reaching World glass volumesEfficient Management StructureInvestments Abroad
Expansion of product rangeState of the art Technologies, institutional R&D«The World is our Market»
Glassware and container production – PaşabahçeModest Growth
Group Corporate Structure
26
*Publicly Traded at BIST-100
Prudent Risk Management Policies
27
Leverage
Liquidity
FX Position
Interest Rate
Derivatives
Leverage with conservative NET DEBT / EBITDA levels
Maintain sufficient liquidity to meet short-term funding and financeequity portion of Capex
FX position limited to +/- 25% of shareholder’s equity
CounterpartyNot only a diversified relationship banks portfolio, but also access to international debt capital and loan markets at favorable rates.
Balanced fixed and variable rate loan book
Limited to hedging only, no speculative trading
Credit & Corporate Governance Ratings
28
Corporate Governance Rating of Sisecam was revised to 9,35 from 9,28 on December 2015.As a Corporate Policy, Şişecam continues to strive for reaching the highest level of Corporate Governancepractices, where its heritage of «good corporate governance practices» has already been evidenced by therecent rating received.Sustainability remains at the core of operations and strategy, with continuously improved practices.
http://www.sisecam.com.tr/en/investor-relations/corporate-management/http://www.sisecam.com.tr/en/our-group/environment/sustainability-reports/
Corporate Governance & Sustainability
MOODY’S LT FCY Rating Ba1 Stable
S&P LT FCY Rating BB+ Negative
Credit Ratings
DisclaimerThis information in this document has been obtained by Anadolu Cam A.Ş. from sources believed to be reliable , however,Anadolu Cam A.Ş. cannot guarantee the accuracy , completeness, or correctness of such information. This document hasbeen issued for information purposes only. The financial reports and statements announced by Anadolu Cam A.Ş. to thepublic and the relevant corporations are accepted to be the sole material. Anadolu Cam A.Ş. does not accept any liabilitywhatsoever for any direct or consequential loss arising from any use of this document or its contents due to themisleading information in this document. All estimations contained in this document are the opinions of Anadolu CamA.Ş. and can be subject to change without notice. This document cannot be interpreted as an advice to the investors andAnadolu Cam A.Ş. 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
29
2011 2012 2013 2014 2015 1Q2015 1Q2016
USD/TL
Period End 1,89 1,78 2,13 2,32 2,91 2,61 2,83
Period Average 1,67 1,79 1,90 2,19 2,72 2,46 2,94
EUR/TL
Period End 2,44 2,35 2,94 2,82 3,18 2,83 3,21
Period Average 2,32 2,30 2,53 2,90 3,02 2,77 3,24
Contact Details
Anadolu Cam Sanayii A.Ş.İş Kuleleri, Kule - 334330 4.Levent / Istanbul TurkeyTel : (+90) 212 350 50 50 Fax: (+90) 212 350 40 40
Görkem Elverici, Chief Financial [email protected] Tel: (+90) 212 350 3885Başak Öge, Investor Relations [email protected] Tel: (+90) 212 350 3262
Investor Relations Team
Hande Özbörçek Kayaer
[email protected] Tel: (+90) 212 350 3374
Sezgi Eser Ayhan
[email protected] Tel: (+90) 212 350 3791