SODA SANAYİİ A.Ş. Investor Relations Presentation

Transcription

1 SODA SANAYİİ A.Ş. Investor Relations Presentation

2 Content 1. Executive Summary Şişecam Overview Chemicals Business Line in Şişecam 2. Soda Sanayii A.Ş. Overview Summary Presence in the Global Soda and Chromium Chemicals Industry History & Development Vision & Strategy Competitive Advantages Corporate Structure Financial Highlights Operating Profile Industry Dynamics Global Soda Ash Players and Capacities Operating Territory & Soda Ash Capacities Product Portfolio Production & Sales Major Investments Technology and Environment 2

3 Executive Summary Şişecam 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 Presentin 13countries: Turkey, Russia, Bulgaria, Egypt, Georgia, BosniaHerzegovina, Romania, Ukraine, Italy, Germany, Slovakia, Hungary and India with exports to 150 countries Annualproduction of3.6 milliontons of glass and 1.98 million tons of soda ash Mcap of US$ 1,95 billion (May 2014), 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 smoody'srating is «Ba1» ands&p ratingis «BB+» 4

5 History 2013 s ONWARDS TO BE AMONG THE TOP 3 PRODUCERS GLOBALLY 2000 s.. GLOBAL VISION * Regional leadership achieved * Higher market share regionally 1990 s.. INVESTMENT RESTRUCTURING * Reaching world-class volumes * Efficient Management Structure * Investments abroad STRONG GROWTH * Expansion of product range * State-of-the-art technologies, institutional R&D * TheWorld is ourmarket ESTABLISHMENT AND SINGLE * Glassware and container production at Paşabahçe * Modest Growth PLANT STAGE 5

6 Mission, Vision and Strategy Mission Şişecam is a company that respects people and nature with its high quality and value added products. Vision To become the leader of its habitat covering the neighborhood countries in its activity fields. Strategy Rapid profitable growth through both inorganic & organic expansion with a wide array of product portfolio. 6

7 Şişecam Overview - Group Corporate Structure İŞBANKASI ŞİŞECAM Flat Glass Glass Packaging Glassware Chemicals Trakya Cam * TR Glass Bulgaria EAD Anadolu Cam * OOO Ruscam 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 OOO Ruscam Glass Packaging Holding Camiş Ambalaj Paşabahçe USA Soda Lukavac Camiş Egypt TRSG Glass Corp. Romania OOO Ruscam Holding OAO Ruscam Pokrovsky Paşabahçe GMBH PB Mağazaları Camiş Elektrik Şişecam Bulgaria **Richard Fritz Germany Merefa Glass Co JSC Mina Rudnik Vijenac Cromital **HNGIL India OOO Ruscam Sibir Oxyvit Kimya ***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 are valuable assets of the group. Others; trading, investment, Production areas logistics and other companies. (*) Publicly Listed Companies (**) Recently founded. ***(In sale process). 7

8 Şişecam Overview- Operating Territory ŞİŞECAM PLANTS IN TURKEY Lüleburgaz Flat Glass Automotive Glass Mirror Laminated Glass Glassware Power Plant İstanbul Paper Cardboard Pack. Kocaeli Processed Glass Coated Glass Glass Fiber Mould Casting Eskişehir Glassware Glass Packaging Paper Packaging Polatlı 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 8

9 Operating Territory- International Flat Glass Glassware Glass Packaging Chemicals 9

10 Financial Highlights Group Consolidated Key Indicators ŞİŞECAM $mn st Q st Q Net Sales EBITDA Net Fin. Debt **827 Current Ratio 2,48 3,07 2,79 1,81 2,55 1,9 2,49 Liabilities/Assets 0,45 0,38 0,38 0,36 0,42 0,37 0,42 Shareholder's Equity *3.100 Gross Margin(%) 21,2 31,2 35,6 25,6 28,3 24,7 30,0 EBITDA (%) 21,4 24,2 25,4 18,5 20,5 16,0 22,3 Net Income Net Income Margin(%) 3,1 9,8 12,7 6,2 7,6 6,8 8 *In TL terms shareholder s equity has not decreased. **The Net Debt increase is mainly due to heavy CAPEX period held in period

11 Sales $ mio st Q 20141st Q Sales from foreign prod. Export Domestic Top 10 ExportedCountriesas of2014 1st Q Italy 12% France 7% Egypt 5% Bulgaria 5% China 5% United Kingdom 4% Germany 4% Brasil 4% USA 4% Lebanon 4% Exports of $839 million in 2013 and $206 million in st Q to more than 150 countries Eurozone still accounting for more than half of exports Top 10 countries constitute 51% of the total exports in 2013 and %54 as of st Q. Consolidated Export Breakdown st Q 13% 13% 5% 4% 5% 14% 47% Europe Asia Middle East N. Africa South America North America Other 1111

12 Executive Summary-Chemicals Business Line in Şişecam Soda Sanayii Non Intercompany Sales in Consolidated Şişecam Sales 2014 Q1 19,9% US$ 147 mio Chemicals Business account for %22,8 of consolidated Şişecam sales. Within chemicals segment Soda Sanayii A.Ş. is the flagship company with %20 share in the total sales of Şişecam. US$ 592 mio 80,1% Soda Sanayii Şişecam (other) Soda Sanayii s EBITDA Contribution To Consolidated Şişecam EBITDA 2014 Q1 67,2% 32,8% US$ 54 mio US$ 110 mio Soda Sanayii Şişecam (other) 12

13 SODA SANAYİİ A.Ş. Overview 13

14 Summary Soda Sanayii - engaged in production of soda ash, chromium compounds and derivatives - isoneoftheflagshipcompaniesofşişecam. It is the 4 th largest soda ash producer in Europe and 10 th globally. Soda Sanayii is the biggest Sodium Dichromate and Basic Chromium Sulphate producer in the world. 90% owned by Şişecam and group companies, 10% listed at BIST (ticker symbol SODA) withacurrentmarketcapofus$760million(asofmay23rd,2014) An aggregate soda ash production capacity of 2.06 million tons per annum in Turkey, Bosnia Herzegovina and Bulgaria. 14

15 Presence in Global Soda Ash andchromiumchemicals Market Annual Sales Distribution(%)* Turkey Export Soda Ash** Chromium Chemicals*** Global Ranking Europe World Soda Ash 4 10 Chromium Chemicals 1 1 (*) As of March 2014 (**) Including inter-company sales (***) BCS 15

16 History and Development Soda Sanayii established in 1969 and production started in Kromsan established in 1979 and production started in Soda Sanayii and Kromsan merged JV established with Italian partners Cromital SpA, in Italy in Acquisitionof majorityof Soda Lukavac in Bosnia&Herzegovina in In 1996, Oxyvit established as a JV between Şişecam and Cromital andproductionjv established with Solvay in Sodi plant in Bulgaria in IPO of Soda Sanayii at BIST In 2008, purchaseof 82,53% of the shares of Asmaşfrom T. İş Bankası. In 2011remaining50% shares of Cromital acquired by Soda Sanayii Mersin 252 MW co-generation power plant merged into Soda Sanayii

17 Vision& Strategy VISION: Soda Sanayii is a major soda ash supplier, aiming to strengthen its position in global soda ash market and leading chromium chemicals supplier, targeting strong leadership in its all activities in global chromium chemicals market. STRATEGIES: - Sustainable and profitable growth - Strengthening our position among the leading players - Geographical expansion - Utilization of synergies from acquisitions and strategic partnerships - Supporting profitability with continuous cost reduction -Improving the product portfolio with value added products - Partnership approach and reliable solution provider for customers 17

18 Competitive Advantages Strong technological know-how Financial strength Market generation experience in developing markets Wide distribution channels Consistent high quality products and services Experienced and qualified technical teams Own raw material supply for Soda Ash production Environmentally friendly processes and high HSE performances. Soda Sanayiiwill continue to be one of the most reliable global suppliers. 18

19 Corporate Structure of Soda Sanayii SODA SANAYİİ A.Ş. TURKEY NETHERLANDS CHINA OXYVIT KİMYA SAN. & TİC. A.Ş. ŞİŞECAM CHEM INVESTMENT B.V. Ş/C SHANGHAI LTD. ASMAŞ AĞIR SANAYİ MAKİNALARI A.Ş. BOSNIA ITALIA BULGARIA AUSTRIA DOST GAZ DEPOLAMA A.Ş. Ş/C SODA LUKAVAC D.O.O. CROMITAL S.P.A. Ş/C BULGARIA LTD. SOLVAY Ş/C HOLDING A.G. 19

20 Soda Sanayii s Financial Highlights Soda Sanayii Consolidated Financial Highlights $mn Q Q1 Net Sales EBITDA Net Financial Debt , Current Ratio 1,54 1,54 2,08 1,96 1,75 2,78 1,88 3,23 Liabilities/Assets 0,43 0,41 0,35 0,35 0,29 0,31 0,28 0,28 Gross Margin (%) 20,1 23,2 23,2 28,7 20,5 20,5 19,1 27,6 EBITDA (%) 16,6 18,6 20,7 26,6 18,9 23,2 18,7 29,2 20

21 SODA SANAYİİ A.Ş. Operating Profile 21

22 Global Soda Ash Industry Dynamics Global Soda Ash Consumption Global Soda Ash Consumption by Segment Other 28% U.S.A.; 9% Mining; 6% Other Glass; 6% Chemicals; 9% Pulp&Paper; 1% Glass packaging; 21% Germany;3% Italy 2% Brazil; 2% Turkey; 2% India; 6% Russia;5% France 2% China; 41% Other; 18% STTP, Soap and Detergent; 14% Float glass; 25% Annual soda ash production is 56 million tons and apprx. 41% is consumed by China. China is the largest soda ash producer. 22

23 Global Chromium Chemicals Industry Dynamics Global Chromic Acid Market Global Basic Chromium Sulphate Market China; 50% Asia Pacific; 12% N.Americ a; 13% S.&M. America; 5% W. Europe; 7% Central and E. Europe; 5% MEA; 3% Japan; 5% Asia Pacific; 24% China; 23% N.America; 8% W. Europe; 8% MEA; 5% S.&M. America; 22% Mid.&East Europe; 10% Chromic Acid Consumption by Segment Wood Preservation 15% Other 5% Metal Plating 80% %100 of Basic Chromium Sulfate production is consumed by leather industry. %80 of Chromic Acid production is consumed by metal plating industry. 23

24 Global Soda Ash Players and Capacities (Million Tons) North America Solvay 2,5 TATA 2,7 OCI 2,8 FMC 3,6 Western Europe Ciech 0,6 TATA 0,5 Solvay 3,9 Eastern Europe & CIS: Crimean Soda 0,8 Eti Soda 1,0 Solvay 1,1 Ciech 1,5 Şişecam 2,06 Bashkim Group 2,7 Middle East & Africa TATA 0,7 Solvay 0,1 Asia Pacific TATA 1 Lianyung 1,3 Quanghai 1,1 Tangshan 2,2 Shandong 3 World Soda Ash demand is growing at an average annual rate of almost %3 per year. 24

25 Operating Territory & Soda Ash Capacities Bosnia & Herzegovina Soda Lukavac (0,42 million tons) Bulgaria Solvay Sodi S/C Bulgaria (0,36 million tons) Italy Cromital Turkey Soda Sanayii (1,28 million tons) Asmaş Oxyvit China S/C Shanghai 25

26 Soda Sanayii Products Soda Ash: Dense Soda Ash Light Soda Ash Sodium Bicarbonate Rawmaterialfor: Glass Detergents Chemicals Food Feedstock Textile Chromium and Derivatives: Sodium Bichromate Basic Chromium Sulphate Sodium Sulphate Chromic Acid Chrome III Products Rawmaterialfor: Leather Wood Preservation Metal Plating Paper Chemical Industries 26

27 Soda Sanayii - Soda Production Thousand Tons %64 %64 %60 %67 %65 % %35 %33 %36 %40 %36 %67 %62 %31 %33 % Q Q1 International Production Domestic Production With the partnerships established in Bulgaria and Bosnia, contribution of non-domestic production has increased. In2014 Q1, 38% of thetotal soda ashproductionwasrealizedoutsideturkey. Total soda production has increased approx. %10 in 2014 Q1 as compared to 2013 Q1. 27

28 Soda Sanayii A.Ş. - Sales $ million Consolidated Gross Sales Breakdown ($ mio) Tons %56 %57 %54 %66 %59 % %46 %43 %44 %56 %57 %41 %33 %34 %44 % Q Q1 Domestic Sales Export Soda Products Sales Breakdown (Tons) Thousands %47 %55 %61 %60 %63 % %53 %45 %39 %40 %37 %36 %64 %63 %36 % Q Q1 Domestic Sales (Soda) Export (Total) In 2013, sales were made in 75 countries throughout the world. 28

29 Soda Sanayii Sales(cont d) Soda Sales by Geography Africa; 10% Others; 1% Middle East; 6% Asia; 1% Domestic; 37% Chromium(BCS) Sales by Geography Europe; 45% Domestic 17% Export 83% 29

30 Major Investments 70 ktpa soda ash capacity expansion project has been completed. 35 ktpa Sodium Bicarbonate capacity expansion has been completed. New steam turbine installation for energy saving is going on. Chrome Chemicals plant capacity expansion project has been completed. 30

31 Technology and Environment SodaSanayiiiscommittedtomanagingallitsactivities,soas toprovideahighlevelofprotectiontotheenvironment and to the health and safety of its employees, customers and neighbors. Soda Sanayii applies the best available technology to utilize all kinds of sources optimally and complies with legal requirements and supports the principles of the global chemical industry's Responsible Care programme. 31

32 Contact Details Soda Sanayii A.Ş. İşKuleleri, Kule Levent İstanbul Turkey Tel : (+90) Fax : (+90) Burhan Ergene Cihan Sırmatel Chief Executive Chemicals Finance Director bergene@sisecam.com csirmatel@sisecam.com Tel :(+90) Tel :(+90) Fax: (+90) Fax: (+90)

33 Diversified Strong Modern Integrated High Quality Monolithic Dependable Progressive 33