ANADOLU CAM SANAYİİ A.Ş. Investor Relations Presentation 2015 QI

Transcription

1 1 ANADOLU CAM SANAYİİ A.Ş. Investor Relations Presentation 2015 QI

2 CONTENT I. ŞİŞECAM 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 II. Operating Profile Business Segments Appendix: 2015 QI Earnings Review 2

3 CONTENT I. ŞİŞECAM Group Overview Executive Summary History and Development Presence in Global Glass Industry Mission, Vision Investment Strategy Shareholding Structure Operating Territory Financial Highlights Prudent Risk Management Policies Sales Major Investments II. Operating Profile Business Segments Appendix: 2015 QI Earnings Review 3

4 I.ŞİŞECAM GROUP OVERVIEW 4

5 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 approx. 4.2 Million tons of Glass and 2.1 Million tons of Soda Ash Mcap of US$ 2.18 Billion (May 2015), 26,3% of its shares are listed on BIST (SISE.IS) and 73,7% held by İşbank Annual Sales exceeding US$ 3 Billion Alliances with global players 5

6 ŞİŞECAM HISTORY 2014 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 * The World is our Market ESTABLISHMENT AND SINGLE PLANT STAGE * Glassware and container production at Paşabahçe * Modest Growth 6

7 MISSION, VISION MISSION To be a company that adds value to life through its high-quality products offering comfort and that respects people, nature and the law. VISION While racing to the top as one of the leading companies in glass and our other business lines, we will become a global company that teams up with business partnersto deliver innovative solutions, that creates a difference distinguished with high-end technology and global brands that ensures great respect to individuals and environment. 7

8 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 Glass OOO Ruscam Glass Packaging Holding Camiş Ambalaj Paşabahçe USA Soda Lukavac Camiş Egypt TRSG Glass Corp. Romania Merefa Glass Co OAO Ruscam Pokrovsky Paşabahçe GMBH PB Mağazaları Camiş Elektrik Şişecam Bulgaria Richard Fritz Germany JSC Mina Rudnik Vijenak Cromital HNGIL India Oxyvit Kimya Şişecam Shanghai Şişecam has four main lines of business and side activities that primarily support the core operations Vertical integration guarantees stringent quality control Group is managed by highly-experienced professionals long associated with the Group level of institutionalization and stability are valuable assets of the Group Others; trading, investment, logistics and other companies (*) Publicly Listed Companies Production Facilities 8

9 PRESENCE IN GLOBAL GLASS INDUSTRY Market Shares (%)* ŞİŞECAM Position * Global Ranking * Turkey Europe World Flat Glass 62 18** 4*** Glassware Glass Packaging Soda Ash (000 tons) Turkey Eastern Europe Russia & Caucasia MENA Flat Glass Glassware World s 3rd Largest Glassware Producer Glass Packaging N/A Soda Ash (*) As of 2015 Q1. (*) Based on production capacity (*) As of 2015 Q1. (**) Based on production capacity (***) Based on production capacity excluding China Europe World Flat Glass 2 6 Glassware 2 3 Glass Packaging 4 4 Soda Ash 4 10 Şişecam Versus Global Players Year Sales Total Glass Rank Company Country Founded (Mn $) (Mn $) Areas ** 1 Saint Gobain France ,795 11,434 FG, GP, GF, CE 2 Owens İllinois United States ,967 6,941 GP 3 Asahi Japan ,509 6,830 FG,OP 4 NSG Japan ,283 6,269 FG, TG 5 Guardian United States ,600 5,000 FG 6 Corning United States ,819 4,566 GF 7 Owens Corning United States ,295 3,487 GF 8 Ardagh Ireland ,368 2,724 GP 9 NEG Japan ,043 3,043 GF, TG, EL 10 ŞİŞECAM Turkey ,127 2,391 FG, GP, GW, CH Sales represent 2013 Year End Figures (**) FG : Flat Glass, GP : Glass Packaging, GW: Glassware, CH : Chemicals, GF : Glassfiber, CE : Ceramics, TF : Technical Glass, OG : Optical Glass, EL : Electronics 9

10 PEER ANALYSIS KPI Comparison of Top 10 Global Players in the glass sector Gross Margin Net Margin Ardagh NEG Owens Corning Owens Illinois NSG St. Gobain Şişecam Asahi Fuyao Corning 11% 18% 18% 19% 23% 24% 25% 26% 41% 42% -8% Ardagh -6% NSG Asahi St. Gobain Owens Illinois Owens Corning NEG Şişecam Fuyao Corning 1% 2% 3% 4% 5% 8% 17% 25% EBITDA Margin ROA St. Gobain NSG Owens Corning Owens Illinois Ardagh Asahi Fuyao Şişecam NEG Corning 10% 13% 14% 14% 15% 16% 20% 21% 21% 29% -12% NSG -11% Ardagh St. Gobain NEG Owens İllinois Owens Corning Şişecam Asahi Corning Fuyao 3% 6% 8% 11% 11% 16% 22% 32% 10

11 OPERATING TERRITORY - TURKEY ŞİŞECAM PLANTS IN TURKEY Lüleburgaz Flat Glass Automotive Glass Mirror Laminated Glass Glassware Power Plant İstanbul Paper Cardboard Pack Kocaeli Glass Fiber Mould Casting Eskişehir Glassware Glass Packaging Paper Packaging Polatlı Flat Glass 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 11

12 OPERATING TERRITORY - INTERNATIONAL 11

13 ŞİŞECAM RATINGS Credit Rating / Outlook MOODY's Ba1/Stable S&P BB+/Stable 13

14 CORPORATE GOVERNANCE & SUSTAINABILITY ŞİŞECAM has obtained its first Corporate Governance Rating*, by the end of 2014 scoring «9.28». 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 continously improved practices. ŞİŞECAM has also published its first Sustainability Report**. (*)Ref. (**)Ref. 14

15 PRUDENT RISK MANAGEMENT POLICY RISK LEVERAGE FINANCIAL POLICY 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 Not only a diversified relationship banks portfolio, but also access to international debt capital and loan markets at favourable rates. INTEREST RATE Balanced fixed and variable rate loan book DERIVATIVES Limited to hedging only, no speculative trading 15

16 FINANCIAL HIGHLIGHTS - KEY INDICATORS ŞİŞECAM($ mn) Q Q1 Net Sales 2,806 2,980 2,971 3,129 3, *664 EBITDA *152 Net Fin. Debt Current Ratio Liabilities/Assets Shareholder's Equity 2,682 2,729 3,148 3,105 3,120 3,100 *2,856 Gross Margin (%) EBITDA Margin(%) Net Income Net Income Margin(%) Q Q1 Period End: Period Average: *The decrease in Net Sales, EBITDA and Equity on YoY basis is mainly due to TRY depreciation. In real TRY terms there is an increase in each item. 16

17 FINANCIAL HIGHLIGHTS $ mn st Q st Q Net Sales EBITDA $ mn Considerable decrease in CAPEX on YoY basis st Q st Q CAPEX EBITDA 17

18 EQUAL SEGMENT CONTRIBUTION to SALES and EBITDA st Q - SALES(%) st Q - EBITDA(%) 27% 32% 26% 26% 17% 24% 32% 16% Flat Glass Glassware Glass Packaging Chemicals st Q - SALES(%) st Q EBITDA(%) 28% 30% 37% 27% 20% 22% 17% 19% 18

19 ŞİŞECAM s GROWTH TRY bn ,2 0,2 0,5 0,8 0,8 0,9 1,2 1,2 1, ,4 0, ,9 1,7 0,8 1,1 1,2 3,2 3,7 3,6 1,2 4, , ,1 1,5 1, ,9 1,6 1,6 2,5 2,8 3,1 3, Domestic Export Sales From Foreign Production % increase on YOY basis in TL terms TRY bn Şişecam s growth with stable margins supports its Capex Program EBITDA CAPEX EBITDA Margin(%) Source: Consolidated audited financials prepared in accordance with CMB financial reporting standards 30% 25% 20% 15% 10% 5% 0% 19

20 SALES - EXPORT BREAKDOWN Consolidated Export Breakdown as of 2015 QI 10% 6% 5% 2% 1% 1% 1% 48% 12% 14% Italy Egypt Bulgaria France USA Export Breakdown on Country basis 46% 12% 8% EUROPE ASIA MIDDLE EAST NORTH AFRICA NORTH AMERICA SOUTH AMERICA MIDDLE AFRICA OCEANIA SOUTH ASIA FAR EAST Exports of $185 Million as of 2015 Q1 to more than 150 countries. Eurozone still accounting around half of exports. 3% 3% 4% 4% 5% 6% 5% 4% Italy Egypt Bulgaria France USA Brasil UK Germany Lebanon Spain Other 19

21 FINANCIAL HIGHLIGHTS - PROFITABILITY MARGINS (%) st Q st Q Gross EBITDA EBIT Net Income Significant improvement in Profitability Margins backed by stronger operational results achieved. 21

22 LEVERAGE POSITION - NET DEBT & EBITDA $ mn , , , ,6 0, , st Q st Q 0 Net Debt Net Debt/EBITDA NET DEBT/ EBITDA: 0.37X 0.42X 1.01X 1.33X 0.78X 1.31X* 1.27X* * Annualized 22

23 $ mn INVESTMENTS & CAPEX STRATEGY After heavy Capex of $ 2 billion in the last 3 yrs, Capex is gradually decreasing % % 22% 17% 17% % 9% st Q st Q 30% 25% 20% 15% 10% 5% 0% CAPEX CAPEX/Sales Investments completed within the 2015 QI: -2nd Float Line in Bulgaria. Ongoing investments to be completed within 2015: -3rd Furnace of 90k tons in our Glass Packaging plant located in Eskişehir. 23

24 II. OPERATING PROFILE 24

25 ANADOLU CAM SANAYİİ A.Ş. Overview 25

26 Summary Anadolu Cam Glass Packaging engaged in the production of various volumes, which is the market leader in Turkey Anadolu Cam is the world s 4th largest glass packaging producer 80% owned by Şişecam, 20% listed at Istanbul Stock Exchange (ticker symbol ANACM) with a current market cap of US $ 302 million (as of ) The Company manufactures glass containers for food, beverages, mineral water, alcohol drinks and health products for the domestic and export markets Production in Turkey, Russia, Georgia and Ukraine with an aggregate production capacity of 2,2 million tons per annum whereby its international production capacity has exceeded that of Turkey s. 26

27 History and Development 1935 Glass packaging production started in the first plant of Şişecam bottling plants investments in Turkey: Topkapı and Çayırova founded, Mersin (Anadolu Cam Sanayii A.Ş.) acquired First investment abroad: Mina was acquired in Georgia 2002 First investment made in the Russian Federation which was later followed by 4 more plants until Yenişehir plant in Turkey started operation 2011 Merefa plant in Ukriane was acquired Today : 3 plants in Turkey 5 plants in Russia 1 plant in Georgia 1 plant in Ukraine Topkapı plant in Turkey was shut down as of Eskişehir plant in Turkey started operation Merefa plant is in modernization repair as of , production stopped temporarily 27

28 Vision & Strategy 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 Mission: Şişecam is a company that respects people and nature with its high quality and value added products 28

29 Competitive Advantages Strong technological know-how Financial strength Market generation experience in developing markets Fast growth ability High quality and wide portfolio of products Experienced and qualified technical team Anadolu Cam will continue to enjoy its strengths and experience in the industry for its ambitious growth and new expansion opportunities 29

30 Corporate Structure Glass Packaging Group ( as of ) TURKEY RUSSIA GEORGIA UKRAINE Mersin Plant- Gorokhovetz Mina Plant- Merefa Plant- Mersin Plant-Vladimir Region Ksani Village Kharkov Region Yenişehir Plant- Kirishi Plant- Bursa Leningrad Region Eskişehir Plant- Kuban Plant- Eskişehir Krasnodar Region Pokrovsky Plant- Vologda Region Ufa Plant- Bashkordostan 30

31 Financial Highlights $mn Q Q Net Sales EBITDA Net Fin. Debt Current Ratio 1,70 1,32 0,86 1,58 2,80 1,60 2,57 Liabilities/Assets 0,48 0,54 0,54 0,58 0,50 0,56 0,51 Gross Margin (%) EBITDA (%)

32 ANADOLU CAM SANAYİİ A.Ş. Operating Profile 32

33 Global Glass Packaging Players (Global Positioning - Number of Plants) N. America Piramal Glass Vitro Anchor G Ardagh O-I Wheaton Verallia Vitro O-I S. America Borm. R. B&A AC Yioula Vetrop Vidrala Ardagh Verallia O-I Middle and East Europe Verallia Consol Glass Africa/Middle East 1 4 Chagoda Rus Stek Klin Stek AC Ruscam Russia Asia Pasific Asia Pasific is expected to be a fast growing market and will operate with the highest market share in 10 years. Between global drinks will grow organically with 6% CAGR with the increasing 33 consumption in beer and wine sectors Verallia Toyo Glass Nihon Yamamura HNG O-I

34 Global Glass Packaging Market COSMETICS 5% HEALTH 6% OTHER 20% SECTORAL DISTIBUTION FOOD CONTAINER 51% N.AMERICA 27% GEOGRAPHICAL DISTIBUTION S.AMERICA 5% EUROPE 34% BEVERAGES 18% ASIA PACIFIC & MIDDLE EAST 34% 34

35 Operating Territory Russian Federation 5 plants 11 furnaces Ukraine 1.2 mio tons/year capacity 1 plant 1 furnace 85 k tons/year capacity Georgia 1 plant 2 furnace 60 k tons/year capacity Turkey 3 plants 9 furnaces 920 k tons/year capacity 35

36 Product Portfolio Anadolu Cam is producing glass containers in various volumes and colors for beer, wine, water, mineral water, pharmaceuticals and cosmetics, alcoholic beverages, food and milk sectors. 36

37 Sales 000 Tons Q1 DOMESTIC 803 EXPORT Q1 37

38 Production 000 Tons Q1 DOMESTIC EXPORT Q1 38

39 Anadolu Cam in Turkey Anadolu Cam is the dominant player in the market 920,000 production capacity in 3 plants and 9 furnaces Its product portfolio is composed of glass containers for food, beverages, mineral water, alcohol drinks and health products. 39

40 Anadolu Cam in the Region: Russia Production started in 2002 and close to 23% market share is reached in 13 year s period. With rapid growth strategy implemented, 1.2 million tons of production capacity in 5 plants and 11 furnaces # 1 glass packaging producer in Russia Beer industry is the largest segment for bottle production. But its growth is slower compared to champagne, wine and mineral water after several years of high growth rates achieved in the beer industry. 40

41 Anadolu Cam in the Region: Georgia and Ukraine Georgia: Anadolu Cam s plant, Mina plant is the only glass packaging plant in the country with tons of production capacity and apprx. 42% market share, selling mainly to mineral water, beer, beverages, vodka and wine industries. Ukraine: Merefa plant is in modernization repair as of for take advantage due to recent political turmoils. 41

42 Anadolu Cam Going Forward Anadolu Cam, in line with its growth strategy, will continue to be the leading glass packaging supplier in the region and strengthen its current position in the global glass packaging market. 42

43 Contact Details Anadolu Cam Sanayii A.Ş. İş Kuleleri, Kule Levent Istanbul Turkey Tel : (0212) Fax : (0212) Abdullah Kılınç Frederic Robert Colley Sibel Koç Karacaoğlu Executive Vice President Finance Director Budget & Financial Control Manager akilinc@sisecam.com fcolley@sisecam.com sibelkoc@sisecam.com Tel : (+90) Tel : (+90) Tel: (+90) Fax: (+90) Fax: (+90) Fax: (+90)

44 Disclaimer Following USD/TL Exchange Rates have been used throughout the presentation: This information in this document has been obtained by Anadolu Cam Sanayii A.Ş. ( Anadolu Cam ) from sources believed to be reliable, however, Anadolu 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 Anadolu Cam to the public and the relevant corporations are accepted to be the sole material. Anadolu 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 Anadolu Cam and can be subject to change without notice. This document cannot be interpreted as an advice to the investors and Anadolu 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. 44

45 Diversified Strong Modern Integrated High Quality Monolithic Dependable Progressive 45