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 Growth Story 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

4 Executive Summary - Şişecam Overview ŞİŞECAM founded in 1935 by İşbank Operates in 4 business segments : -Flat glass, Glass Packaging, Glassware and Chemicals Operations expanded to 13 countries: Turkey, Russia, Bulgaria, Egypt, Georgia, Bosnia Herzegovina, Romania, Ukraine, Italy, Germany, Slovakia, Hungary and India with exports to 140 countries. Leading glass manufacturer in Turkey, aiming to be in top 3 globally 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. Net Sales of US$ 3 billion FY2012 (US$ 1.52 billion for 2013/H1.) EBITDA of US$ 530 million FY2012 (US$ 251 million for 2013/H1.) Strategic alliances with global players in the region 18,000 employees 4

5 Şişecam Overview - History & Development 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 Regional leadership achieved Higher market share regionally Establishment and Single Plant Stage Strong Growth 1990s Investments Restructuring 2000s onwards Global Vision Glassware and container production at Paşabahçe Modest Growth To be in the Top 3 globally JVs signed with St.Gobain and HNG, Acquisition in Romania MoU signed in Germany Investments commenced in Russia for flat and auto glass 5

6 Şişecam Overview - 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. 6

7 Şişecam Overview - Group Corporate Structure İŞBANKASI ŞİŞECAM Flat Glass Glass Packaging Glassware Chemicals Trakya Cam * TR Glass Bulgaria EAD Anadolu Cam * Ruscam Gorokhovetz Paşabahçe Cam Denizli Cam * Soda Sanayii * Cam Elyaf Trakya Yenişehir Trakya Polatlı Anadolu Cam Eskişehir Anadolu Cam Yenişehir Paşabahçe Bulgaria Posuda Camiş Madencilik Solvay Şişecam SGGE TRSG Autoglas s RuscamK uban 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 Glass Corp. Romania Ruscam Ufa Ruscam Pokrovsky Rudnik Vijenak Cromital **HNGIL India Merafa Glass Co. Mina Oxyvit Kimya Asmaş (*) Publicly Listed Companies (**) Recently joined the group. 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. Şişecam Shanghai

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 Şişecam Overview - Operating Territory 9

10 Şişecam Overview - Financial Highlights Group Consolidated Key Indicators $mn /H1 2013/H1 Net Sales 2,885 2,357 2,806 2, EBITDA Net Fin. Debt Şişecam has been one of the top conglomarates in global glass sector with an increasing market share and high reputation thanks to both it s conservative self-financing policy and to increasing credibility on financial sector. Current Ratio Liabilities/Assets Shareholder's Eq. 2,361 2,465 2,682 2,729 3,145 2, ,160 Şişecam historically has channeled the bulk of its cash flow to group investments. Gross Margin (%) EBITDA (%) ,5 EBIT (%) ,4 Net Income Net Income (%) Şişecam has also proven track records to access international debt capital markets at favourable rates in addition to its longstanding strong relationships with prestigious international financial institutions. Şişecam enjoys high profitability margins compared to its international peers. 10

11 Growth Story $ mio Growth is mainly driven by exports and foreign production as a result of investment strategy in the region. As of 2013/H1 year end exports reached US$ 414 million. 0 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% Domestic Export Sales from foreign prod. Consolidated Export Breakdown 2013/H1 10% 24% 12% 54% Europe Asia+Ocenia America Middle East +Africa The exports are made to 135 countries. Europe continues to be an important market for Şişecam in all segments. The export amount of top 10 countries constitute %55 of the total export amount while Top 20 s corresponds to%74 of it. The exports to Europe are approximately %50 of total export amount as of 2013/ H1. 11

12 Executive Summary - Chemicals Business Line in Şişecam Soda Sanayii Sales in Consolidated Şişecam Sales Q ,3% US$ 371 mio Chemicals Business account for 30,2% of consolidated Şişecam sales. Within chemicals segment Soda Sanayii A.Ş. is the flagship company with 24,3% share in the total sales of Şişecam. US$ mio 75,7% Soda Sanayii Şişecam (other) Soda Sanayii s EBITDA Contribution To Consolidated Şişecam EBITDA Q ,2% US$ 73 mio 70,8% US$ 177 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 - is one of the flagship companies of Şişecam. 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) with a current market cap of US$ 597 million (as of August 15th, 2013) An aggregate soda ash production capacity of 1.98 million tons per annum in Turkey, Bosnia Herzegovina and Bulgaria. 14

15 Presence in Global Soda Ash and Chromium Chemicals Market Annual Sales Distribution (%)* Turkey Export Soda Ash** Chromium Chemicals*** Global Ranking Europe World Soda Ash 4 10 Chromium Chemicals 1 1 (*) As of June 2013 (**) 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 in Cromital SpA in Italy in Acquisition of majority of Soda Lukavac in Bosnia&Herzegovina in In 1996, Oxyvit established as a JV between Şişecam and Cromital and production JV established with Solvay in Sodi plant in Bulgaria in IPO of Soda Sanayii at BIST In 2008, purchase of 82,53% of the shares of Asmaş from T. İş Bankası. In 2011 remaining 50% 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 Sanayii will continue to be one of the most reliable global suppliers. 18

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

20 Soda Sanayii s Financial Highlights Soda Sanayii Consolidated Financial Highlights $mn Q2 2013Q2 Net Sales EBITDA Net Fin. Debt , Current Ratio 1,54 1,54 1,54 2,08 1,96 1,70 2,00 2,27 Debt/Assets 0,34 0,43 0,41 0,35 0,35 0,30 0,29 0,32 Gross Margin (%) 14 20,1 23,2 23,2 28,7 20,5 23,3 19,8 EBITDA (%) 12,1 16,6 18,6 20,7 26,6 19,0 20,1 19,7 20

21 SODA SANAYİİ A.Ş. Operating Profile 21

22 Global Soda Ash Industry Dynamics Global Soda Ash Consumption Turkey; 2% Mexico; 2% India; 6% Russia; 5% France; 2% Italy; 2% Brazil; 2% U.S.A.; 9% Global Soda Ash Consumption by Segment Chemicals; 10% Mining; 5% Other Glass; 6% Other; 13% Pulp&Paper; 1% Glass packaging; 22% Float glass; 29% China; 41% STTP, Soap and Detergent; 14% Annual soda ash production is 54 million tons and apprx. 29% is consumed by float glass. China is the largest soda ash producer. 22

23 Global Chromium Chemicals Industry Dynamics Global Chromic Acid Market Global Basic Chromium Sulphate Market India; 4% China; 50% Asia Pacific; 8% N.Americ a; 13% S. America; 5% W. Europe; 7% Central and E. Europe; 5% Japan; 5% MEA; 3% India; 12% China; 22% Chromic Acid Consumption by Segment Asia Pacific; 14% Central - E. Europe; 10% MEA; 5% N.America ; 8% S. America; 21% Western Europe; 9% 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 3,7 Western Europe Ciech 0,6 TATA 1 Solvay 4,1 Eastern Europe and CIS: Crimean Soda 0,8 Eti Soda 1,1 Solvay 1,1 Ciech 1,5 Şişecam 1,98 Sterlitamak 2,1 MEA & Africa TATA 0,7 Solvay 0,1 Asia Pacific TATA 1 Bohai 1,7 Hubei 1,8 Tangshan 2 Shandong 3 World Soda Ash demand is growing at an average annual rate of almost %3-4 per year. 24

25 Operating Territory & Soda Ash Capacities Bosnia & Herzegovina Soda Lukavac (0,37 million tons) Bulgaria Solvay Sodi S/C Bulgaria (0,36 million tons) Italy Cromital Turkey Soda Sanayii (1,25 million tons) Asmaş Oxyvit China S/C Shanghai 25

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

27 Thousand Tons Soda Sanayii - Soda Production %64 %60 % %67 %65 %69 %75 %58 %66 %33 %35 %33 %36 %40 %25 %31 %42 % Q Q2 International Production Domestic Production With the partnerships established in Bulgaria and Bosnia, contribution of non-domestic production has increased significantly. In 2013 Q2, 34% of the total soda ash production was realized outside Turkey. 27

28 Thousands Soda Sanayii A.Ş. - Sales USD million Tons Consolidated Gross Sales Breakdown ($ mio) % %54 % %53 %59 %67 %56 %53 %62 %47 %47 %46 %43 %41 %33 %34 %38 % Q Q2 Domestic Sales Export Soda Products Sales Breakdown (Tons) %60 %61 %63 %48 %47 %47 % %60 %64 %53 %52 %53 %45 %39 %40 %37 %40 % Q Q3 Domestic Sales (Soda) Export (Total) In 2012, sales were made in 81 countries throughout the world. 28

29 Soda Sanayii Sales (cont d) Soda Sales by Geography North Africa 12% Middle East 5% Asia 1% Africa 1% Domestic 36% Chromium Sales by Geography Europe 45% Domestic 14% Export 86% 29

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

31 Technology and Environment Soda Sanayii is committed to managing all its activities, so as to provide a high level of protection to the environment 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. İş Kuleleri, Kule Levent Istanbul Turkey Tel : (0212) Fax : (0212) Sabahattin Günceler Cihan Sırmatel Chief Executive Chemicals Finance Director [email protected] [email protected] Tel : (+90) Tel :(+90) Fax: (+90) Fax: (+90)

33 Diversified Strong Modern Integrated High Quality Monolithic Dependable Progressive 33