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4Q 2017 ANADOLU CAM Investor Presentation

4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

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Page 1: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

4Q 2017

ANADOLU CAM

Investor Presentation

Page 2: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Contents

2

Anadolu Cam Sanayii A.Ş. Operational Results & Financial Performance

Glass Packaging Business Segment Overview

3

16

Appendix19

Şişecam Group Overview23

Page 3: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

3

29

ANADOLU CAM SANAYİİ A.Ş.

OPERATIONAL RESULTS

&

FINANCIAL PERFORMANCE

Page 4: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Key Financial Indicators

4

4Q 2017 Highlights

14% YoY increase in consolidated sales volume; a) domestic up

by 30%, b) international up by 3%

Average price increases; a) Turkey: 8% in TRY b) Russia: 9% in

RUB

48% to 52% revenue split between domestic and international

sales

Start of the forth furnace investment with 150K ton/p.a.

capacity in Eskişehir plant Completion of Ufa plant C furnace

(120K ton/p.a. capacity) cold repair process

As of Mar. 1st; Mcap: USD 671mn, 3M Avg. Daily Trading Vol.:

2,6mn shares

TRY mn

460643

4Q 2016 4Q 2017

Revenue

111

182

4Q 2016 4Q 2017

Gross Profit

7497

4Q 2016 4Q 2017

Capex

-203

31

Free Cashflow

2016 2017

38

14

4Q 2016 4Q 2017

Net Income

76

145101

164

4Q 2016 4Q 2017

EBITDA

25

18One-offGains

Important Notice: Şişecam and its Group Companies Anadolu Cam and Soda Sanayii were reporting thirdparty logistic expenses by deducting from gross revenues. Starting from 4Q 2017, these expenses are nowbooked under S&M expenses. 2017 and 2016 financial statements were restated accordingly

Page 5: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Key Financial Indicators

5

Revenue Contribution by Geography

EBITDA Contribution by Geography

TRY mn

TRY mn

460

643100

83

4Q 2016 Turkey Russia, Ukraine&Georgia 4Q 2017

76

145

4115

-0,6

14

4Q 2016 Turkey Russia, Ukraine&Georgia Netherlands Reconciliations 4Q 2017

101

164

One-off gain

25

18One-off

gain

Page 6: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii – Financial Results

TRY mn

Consolidated Financial Results

1.459 1.523 1.555 1.5521.831

2.411

460643

323 242 269 328 457671

111 182

312 341 387 393

747615

101 164

2012 2013 2014 2015 2016 2017 4Q2016 4Q2017

Net Sales Gross Profit EBITDA

Gross Margin

EBIT Margin

EBITDA Margin

EBITDA Margins Adjusted to One-off GainsOne-off gains;

- 2013: TRY 100mn (Topkapı land sale)- 2014: TRY 120mn (Paşabahçe & Soda shares sale)- 2015: TRY 73mn (Soda shares sale)- 2016: TRY 342mn (Soda shares sale) + TRY 27mn (Revaluation gain Eurobond investments)- 2017: TRY 32mn (OMCO stake sale) + TRY 30mn (Revaluation gain Eurobond investments)- 4Q2016: TRY 25mn (Revaluation gain Eurobond investments)- 4Q2017: TRY 18mn (Revaluation gain Eurobond investments)

6

EBITDA Margins

Adjusted EBITDA Margins

22% 16% 17% 21% 25% 28% 24% 28%

9% 9% 10% 11% 27% 13% 8% 13%

21% 22% 25% 25% 41% 25% 22% 25%

21% 22%25% 25%

41%

25%

22%

25%

21%16%

17%21% 21%

23%

17%

23%

2012 2013 2014 2015 2016 2017 4Q2016 4Q2017

Page 7: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii – Financial Results

7

Consolidated EBITDA & CAPEX Consolidated EBITDA & NET DEBT

TRY mn

0,7%

0,5%

22%

19,7%

10,6%

46,5%

>5 yrs

4-5 yrs

3-4 yrs

2-3 yrs

1-2 yrs

0-1 yr

Maturity Breakdown of Debt Currency Breakdown of Debt*2017 2017

312 341387

393

747

615

101164

308 313221

323 332 33974 97

2012 2013 2014 2015 2016 2017 4Q2016 4Q2017

EBITDA CAPEX

867 934

599

1.002747

1.009

2,8 2,7

1,5

2,6

1,01,6

2012 2013 2014 2015 2016 2017

NET DEBT NET DEBT/EBITDA

Revenues;- 50% in TRY- 35% in RUB- 4% in USD- 6% in EUR- 5% in Other currencies

RUB; 51%

EUR; 24%

USD; 23%

UAH; 3%

*Currency breakdown of financial debt adjusted to the outstanding cross-currency and interest swaps

TRY mn

Page 8: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii – Operational Results

Consolidated Revenues Breakdown

8

*International Sales include sales from foreign operations + exports from foreign operations + exports from Turkey

Glass Packaging Production Breakdown

K Tons TRY mn

856 814 814 865 910 970

237 256

1.001889 931 899 930 940

250 245

1.8571.703 1.745 1.764 1.841 1.909

486 501

2012 2013 2014 2015 2016 2017 4Q2016 4Q2017

Domestic International

731 835 853 933 9071.195

186 306

728688 702 619

924

1.216

274337

1.459 1.523 1.555 1.552

1.831

2.411

460643

2012 2013 2014 2015 2016 2017 4Q2016 4Q2017

Domestic International*

Page 9: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii – Sales Breakdown

4Q 20174Q 2016

Anadolu Cam Turkey - Value Based Sales Mix

23%

14%

5%5%

18%

10%

15%

11%Mineral Water

Beer

High Spirits

Wine

Food

Non-alcoholic Beverages

Exports

Other

21%

15%

6%4%15%

8%

18%

11%

9

Page 10: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii – Sales Breakdown

4Q 20174Q 2016

Anadolu Cam Russia – Value Based Sales Mix

2%

41%

17%

19%

4%

3%

15%Mineral Water

Beer

High Spirits

Wine

Food

Non-alcoholic Beverages

Exports

1%

38%

18%

20%

6%

4%

13%

10

Page 11: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii – Sales Breakdown

11

Anadolu Cam Turkey

Growing Share of Exports in Revenue Mix

Anadolu Cam Russia

2015 FY

1Q 2016

2Q 2016

3Q 2016

4Q 2016

2016 FY

6%

12% 13%

2015 2016 2017

15%14% 14%

2015 2016 2017

Page 12: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Anadolu Cam Sanayii History

12

Single Plant Glass Packaging Production (Modest Growth)

Establishment of Topkapı & Çayırova Plants Acquisition of Anadolu Cam Sanayii A.Ş.

(Regional Expansion)

FDI to Russia & Georgia (International Expansion)

Production started in Yenişehir Plant, (Further Expansion in Domestic Market)

Acquisition of Merefa Plant (Ukraine) (International Expansion)

Closure of Topkapı Plant, Start of Production in Eskişehir Plant,

Temporary Shut Down of Merefa Plant due to Modernization Process

Acquisiton of Partner's Stake in Ruscam & Elimination of Non-core Assets through Soda

Sanayii Stake Sale

Sale of the 50% Stake in OMCOAcquisition of the Minority Interests in

Yenişehir & Eskişehir PlantsYenişehir & Eskişehir Plants' Merger under

Anadolu Cam Sanayii A.Ş.

1935-1969 1960-1996 1998-2002 2006 2011 2012-2014 2015-2016 2017

Page 13: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Corporate Structure

13

ANADOLU CAM SANAYİİ A.Ş.

AC Glass Holding BV

Balsand BV.Anadolu Cam

Investment BV.

48%

100%

52% 76%

24%

LLC Energosystems

LLC Ruscam Management Co.

LLC Ruscam Glass Packaging Holding

Merefa Glass Company Ltd.

CJSC Brewery Pivdenna

JSC Mina

Camiş Elektrik Üretim A.Ş.

26%

100%

100%

100%

100%

100%

90% 10%

Production facilities consolidated under

"Anadolu Cam San. A.Ş." legal entity;- Mersin Plant

- Yenişehir (Bursa) Plant - Eskişehir Plant

Production facilities consolidated under "LLC Ruscam Glass Packaging Holding"

legal entity;- Gorokhovets Plant

- Pokrovsky Plant

- Ufa Plant- Kirishi Plant- Kuban Plant

Page 14: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Vision, Mission, Strategy & Sustainability

14

“... 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 for the year 2016

http://www.sisecamcamambalaj.com/sites/catalogs/en/Documents/sustainability/anadolucam_eng.pdf

Page 15: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Strategy & Competitive Advantage

15

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

Page 16: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

GLASS PACKAGING BUSINESS SEGMENT OVERVİEW

16

29

Page 17: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Glass Packaging – Anadolu Cam

17

Turkey – Mersin, Eskişehir and Yenişehir Plants

Total Capacity of 1.025K tons/year

Ukraine – Merefa Plant85K tons/year

#5

#5

Glass Packaging Group Market Shares

57%

30%

6,3%

2,5%

Georgia

Russia

Europe

Global

77%

23% F. Float

Şişecam

SHAREHOLDERSOperations & Global Presence

Anadolu Cam, operational in 4 regions with 2,3mn tons/year installed capacity, is Şişecam Group’s leading brand name in the glass packaging segment with a

portfolio focusing on food, alcoholic and non-alcoholic beverages, mineral water and pharmaceuticals sectors

Russia – Gorokovets, Pokrov, Ufa, Kirishiand Kuban Plants

Total Capacity of 1.165K tons/year

Georgia – Mina Plant60K tons/year capacity

#1

#1

Page 18: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Global Glass Packaging Market

18

~USD 45 Billion global market accounting for ~9%-10% of global packaging industry

Annual glass container consumption of +450 Billion units incl. on trade sales

In unit terms 86% of glass containers produced are purchased by beverage industry and 12% by food sector

5 producers dominate 40% of the market

Asia Pacific & Europe, being the largest consumers, compose 70% of the market

While Asia Pacific (including China and India) and Eastern Europe have high growth potentials on the back of increasing alcoholic beverage consumption in the former and EU accession of the latter, Middle East & Africa region is also promising with young population and growing disposible income

High barriers to entry in small markets with highly fragmented customer base and wide range of products

Consumption GrowthECAGR

Demand by Regions4Q 2017

Demand By Segments4Q 2017

Global Turkey*

North America

SouthAmerica

Russia

M.East & Africa

Asia Pacific

Europe

40 Plants

22 Plants

5 Plants

38 Plants

106 Plants

21 Plants

Regional Breakdown of Glass Packaging Production Capacity4Q 2017

Industry Dynamics

*Global market ECAGR is in value terms, growth figure given for Turkish glass packaging market is in volume terms

%4,55,5%

2017-2022 2017-2022

Food 40%

Beverage34%

Pharma 14%

Personal Care 9%

Other 4%

Asia Pacific38%

W. Europe24%

S. America15%

N. America9%

E. Europe 9%

M. East & Africa 4% Australia & Asia 2%

Global Players # of Plants

Installed Capacity

(mn tons) Market Share

Owens Illinois 79 16,7 19,5%

Ardagh 35 5,9 7,1%

Verallia 33 5,3 6,4%

BA Vidro 18 3,9 4,6%

Anadolu Cam 10 2,3 2,5%

Page 19: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Appendix

19

Page 20: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Summary Financials

20

SUMMARY BALANCE SHEET (Million TL) 2016 1Q 2017 1H 2017 9M 2017 2017 YoY Change

Total Assets 4.417 4.598 4.403 4.374 4.183 -5%

Cash & Cash Equivalents 808 873 830 795 569 -30%

Financial Assets & Derivatives 197 235 201 243 257 31%

Trade Receivables 387 534 579 557 558 44%

Inventories 351 382 330 326 326 -7%

Equity-Pickups 36 32 16 16 17 -54%

Property, plant and equipment 2.046 2.151 2.115 2.123 2.192 7%

Intangible assets 4 4 4 4 4 11%

Tax & Deferred Tax Assets 188 204 234 234 192 2%

Other* 400 184 95 74 69 -83%

Total Liabilities 2.506 2.801 2.568 2.484 2.291 -9%

Interest Bearing Liabilities &

Derivatives 1.789 1.959 1.708 1.739 1.807 1%

Trade Payables 203 233 256 245 273 35%

Provisions 56 80 82 87 81 45%

Tax & Deferred Tax Liabilities 34 20 12 1 1 -97%

Other** 425 509 510 412 128 -70%

Equity 1.911 1.797 1.835 1.889 1.892 -1%

Equity holders of the parent 1.803 1.797 1.835 1.889 1.892 5%

Minority Interest 108 0 0 0 0 -100%

*Other Receivables, Prepaid Expenses, Other Current & Non-Current Assets

**Other Payables, Deferred Income

Page 21: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Summary Financials

21

SUMMARY INCOME STATEMENT (Million TL) 1Q 2017 1H 2017 9M 2017 4Q 2016 4Q 2017 YoY Change 2016 2017 YoY Change

Revenue 514 1.117 1.767 460 643 40% 1.831 2.411 32%

Cost of Goods Sold -394 -852 -1.278 -349 -462 32% -1.373 -1.740 27%

Gross Profit 120 266 489 111 182 63% 457 671 47%

Research and development -1 -1 -2 -3 0 -100% -10 -2 -83%

Sales and marketing -37 -83 -188 -58 -58 0% -186 -246 32%

General and administrative -45 -93 -145 -45 -32 -29% -166 -177 7%

Other income (expense), net 13 13 26 3 -24 -1004% 15 2 -88%

Income from Equity Pick-ups 5 7 8 2 0 -91% 11 8 -23%

Income from Investing Activities 11 39 44 25 18 -26% 381 62 -84%

EBIT 67 148 232 35 86 144% 502 318 -37%

EBITDA 138 292 451 101 164 62% 747 615 -18%

Financial Expense, net -22 -66 -103 0 -32 -37364% -2 -135 6532%

Income before Tax 44 82 129 35 54 53% 500 183 -63%

Tax Expense, net -1 33 41 3 -40 1588% -35 1 102%

Net income 43 114 170 38 14 -63% 465 184 -60%

Net income after Minority Interest 41 112 167 38 14 -63% 457 181 -60%

Minority Interest 3 3 3 0 0 -100% 8 3 -69%

Earnings per share (TL): 0,09 0,25 0,22 0,05 0,02 -63% 0,61 0,24 -60%

Page 22: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Summary Financials

22

CASH FLOW STATEMENT (Million TL) 2012 2013 2014 2015 2016 2017

Net Profit 54 73 14 31 465 184

Non-cash 255 180 262 252 -107 428

Operating cash flows provided before changes w/c 308 253 276 283 358 612

Change in w/c 120 49 -255 122 -105 -12

Cash flows from operating activities 428 302 22 405 253 600

Interest paid -77 -109 -117 -117 -144 -188

Interest received 16 8 22 28 53 59

Dividend paid -19 -33 0 -8 -6 -60

Taxes paid -42 -39 -39 -48 -27 -41

Capex -308 -313 -221 -323 -332 -339

Free Cash Flow -2 -184 -332 -62 -203 31

Proceeds from sale of property, plant and equipment

20 14 21 18 22 14

Other cash flows from operating activities -6 -12 -5 -12 -5 -6

Other cash flows from investing activities -41 346 152 63 243 -137

Proceeds from financial liabilities 599 742 628 783 682 861

Repayments of financial liabilities -658 -495 -445 -667 -824 -1.069

Other cash flows from financing activities 18 26 -39 -207 0 0

FX gain/loss on cash and cash equivalents -7 18 -26 202 199 85

Net decrease/increase in cash and cash equivalents

-77 455 -45 119 113 -221

Page 23: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

ŞİŞECAM GROUP OVERVIEW

23

29

Page 24: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Şişecam at a Glance

24

$3 BillionRevenue

4,8 Million TonsGlass Production

2,3 Million TonsSoda Production

21.327Employees

Presence in 13 Countries

3rd GlasswareProducer Globally

5th GlassPackagingProducer Globally

10th Soda AshProducer Globally

Leader Producer in Basic

ChromiumSulfate Globally

4th Chromic AcidProducer Globally

5th Flat GlassProducer Globally

İşbank66%

Efes Holding

8%

Anadolu Hayat

Emeklilik0,05%

Free Float26%

42 ProductionPlants

150 ExportCountries

Listed Companysince 1986

ŞİŞECAM

82 year of corporate history

$2,9 BillionMarket Cap.

Page 25: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Key Financial Indicators

25

Sustained Growth in Revenue with Improving EBITDA Margin

5.320 5.9546.876 7.415

8.569

11.318

966 1.223 1.365 1.764 2.1203.120

7%

12%

15%

8%

16%

32%

18%21% 20%

24% 25%28%

2012 2013 2014 2015 2016 2017

Revenue EBITDA Revenue Growth Y-o-Y EBITDA Margin

TRY mn

Page 26: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

35%

21%

21%

19%

4%

2016

Flat Glass Glassware Glass Packaging Chemicals Other*

8.569

11.318

+1.312 +164+579

+656 +38

2016 Flat Glass Glassware GlassPackaging

Chemicals Other* 2017

Financial Highlights - Revenue

Segments’ Contribution to Revenue

* Consists of energy trade of Şişecam

26

38%

17%

21%

21%

3%

2017TRY mn

Page 27: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

33%

13%18%

34%

2%

2016

Flat Glass Glassware Glass packaging Chemicals Other*

39%

10%19%

29%

3%

2017

1.919

2.806

+458 +27+193

+158 +50

2016 Flat Glass Glassware GlassPackaging

Chemicals Other* 2017

Financial Highlights - EBITDA

*Consists of energy trade of Şişecam** Excluding income from revaluation gain from financial instruments, sale of Eskişehir Oluklu and Omco

27

TRY mn

Segments’ Contribution to EBITDA**

Page 28: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

23%

14%

40%

23%

2017

Revenue & Cash Generation

Revenue by Geography

28

20%

11%

46%

23%

2016

Europe Russia & Georgia & Ukraine Domestic Export

TRY bn

53% 47% 49% 49% 46% 40%

24% 24%23% 23% 23%

23%23% 28%

28% 28%31%

37%

5,36,0

6,97,4

8,6

11,3

2012 2013 2014 2015 2016 2017

Domestic Export from Turkey Sales from Foreign Operations

Page 29: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Revenue & Cash Generation

Exports from Turkey

29

North & Middle

America

SouthAmerica

Middle East

Africa

Asia

Far East

Oceania

Europe

6%

5%

10%

15%

49%13%

1%

1%

Top 10 CountriesExports of USD 740 Million in 2017 to 150 countries Italy 13%

Egypt 6%

USA 5%

China 4%

Bulgaria 4%

UK 4%

France 4%

Spain 4%

Lebanon 4%

Germany 4%

Page 30: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Global Presence

Strong Global Player with Competitive Profitability

30Sources: Bloomberg & Company Websites

Calculations were made based on 2017 financials

28%

19%

25%

17%

27%

32%

17%16%

11%

16%

10%

28%

Asahi Glass Owens Illinois St Gobain Ardagh NSG Şişecam

Gross Margin EBITDA Margin

Owens Illinois 100%

NSG 100%

Şişecam 77%

Asahi Glass 50%

Ardagh 39%

St Gobain 26%

Glass Revenues' Share in Total

Page 31: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Şişecam HistoryGlassware and container production – Paşabahçe

(Modest Growth)

Expansion of product range State of the art Technologies,

institutional R&D «The World is our Market»

Reaching World glass volumes, Efficient Management Structure

Investments Abroad

Regional leadership achieved, Higher market share

regionally

1935-1960 1960-1990 1990’s 2000’s 2014’s Onwards

InvestmentStructuring

Strong Growth Global Vision

To Be Among The Top 3 Producers Globally

31

Page 32: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Corporate Structure

32* Publicly traded at BIST

1.Şişecam, Trakya Cam and Anadolu Cam have shares on Camiş Elektrik2.Şişecam and Trakya Cam have shares on Çayırva Cam Sanayi3.Şişecam and Paşabahçe have shares on Camiş Ltd4.Çayırova Cam have shares on Cam Elyaf

Page 33: 4Q 2017 ANADOLU CAM Investor Presentation · 2018-03-09 · Start of the forth furnace investment with 150K ton/p.a. capacity in Eskişehirplant Completion of Ufa plant C furnace

Operating Territories

33

PRODUCTION PLANTS IN TURKEY

Yenişehir Plant - Bursa

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.

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.

Tuzla Plant- İstanbul

Gebze Plant- Kocaeli

Camiş Madencilik

Cam Elyaf San. A.Ş.

Anadolu Cam Sanayi A.Ş.

Mersin Plant

Anadolu Cam Yenişehir Sanayi A.Ş.

Anadolu Cam Eskişehir Sanayi A.Ş.

Eskişehir Plant

Soda Sanayi A.Ş.

Soda Plant - Mersin

Kromsan Krom Bileşikleri Plant - Mersin

Cities in operation: Aydın, Balıkesir, Bilecik,

İstanbul, Karabük, Kırklareli, Mersin

Oxyvit Kimya San. ve Tic. A.Ş.

Mersin Plant

ŞİŞECAM FLAT GLASS ŞİŞECAM GLASSWARE ŞİŞECAM GLASS PACKAGING ŞİŞECAM CHEMICALS

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Prudent Risk Management Policies

34

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

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Credit & Corporate Governance Ratings

35

Corporate Governance Rating of Sisecam was revised to 9,48 from 9,44 in December 2017.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-overview-and-governance/corporate-governance-policieshttp://www.sisecam.com.tr/en/sustainability/sustainability-reports

Corporate Governance

MOODY’S LT FCY Rating Ba1 Stable

S&P LT FCY Rating BB Negative

Credit Ratings

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Sustainability

36

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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

37

2012 2013 2014 2015 2016 2017 4Q 2016 4Q 2017

USD/TL

Period End 1,78 2,13 2,32 2,91 3,52 3,77 3,52 3,77

Period Average 1,79 1,90 2,19 2,72 3,02 3,64 3,28 3,80

EUR/TL

Period End 2,35 2,94 2,82 3,18 3,71 4,52 3,71 4,52

Period Average 2,30 2,53 2,90 3,02 3,34 4,11 3,54 4,47

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Contact Details

Görkem Elverici, Chief Financial [email protected] Tel: (+90) 850 206 3885Başak Öge, Investor Relations [email protected] Tel: (+90) 850 206 3262

Investor Relations Team

[email protected]

Hande Özbörçek

[email protected] Tel: (+90) 850 206 3374

Sezgi Eser Ayhan

[email protected] Tel: (+90) 850 206 3791

Anadolu Cam A.Ş.Şişecam Genel MerkeziD-100 Karayolu Cad. No:44A 34947 Tuzla/İstanbul TurkeyTel : (+90) 850 206 50 50 Fax: (+90) 850 206 40 40