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2016 Q2 TRAKYA CAM

Investor Presentation

Contents

Trakya Cam

3 Financial & Operational Overview

Şişecam Group Overview

11

17

2

Financial & Operational Overview

2016 Q2 Highlights

Key Financial Indicators

Operational Performance

3

Q2 2016 Highlights

Financials Highlights

Starting 2016, Bulgarian operations are fully consolidated on the financial statements

Revenues up by 38% YoY, reaching TL 723 Million in Q2’16

Excluding Bulgarian operations in 2016 Q2, consolidated revenue up by 17% YoY

EBITDA of TL 417 Million, including one-off stake sale in Soda Sanayii

Excluding one-off stake sale in Soda Sanayii and full consolidation of Bulgarian operations, EBITDA up by

%14 YoY* with a robust margin of 18%*

Developments through the second quarter

EUR 90 Million bid for Italian Sangalli Vetro Porto

TRKCM’s stake sale of Soda Sanayii A.Ş.

23% discount on Bulgarian natural gas prices effective April

Fired the furnace in Mersin in June after 2 years of cold repair

Ministry of Economy starts investigation against flat glass imports from Russia

27% of anti-dumping tax was imposed on imports from Chinese mirror

*Please see the detailed explanation of Bulgarian Operations effect on financials in Slide 6 4

Key Financial IndicatorsSummary Financials

5

Consolidated results for 2015 Q2 includes

equity pick-ups: Bulgaria, India & Egypt.

Starting 2016, Bulgarian operations are fully

consolidated on the financial statements

TRY mn 2015 Q2 2016 Q1 2016 Q2 YoY Growth QoQ Growth

Revenue 525 627 723 38% 15%

Gross Profit 134 186 212 59% 14%

EBITDA1

73 104 119 65% 14%

Dep.&Amortization 45 62 60 33% -2%

EBIT2 27 43 59 118% 39%

1 Gross Profit-Opex(G&A+Marketing+R&D)+Depreciation

2 Gross Profit-Opex(G&A+Marketing+R&D)

EBITDA w/Other Items3

95 145 417 339% 187%

One-offs 0 24 284 NM NM

Dep.&Amortization 45 62 60 33% -2%

EBIT w/Other Items 50 59 73 46% 23%

Adjusted EBITDA w/Other Items4

95 121 133 40% 10%3 excluding one-offs

4 Including other income&expense, income from equity pick-ups & investment activities

Net Income 29 68 325 1034% 378%

Adjusted Net Income5

29 44 54 89% 24%5 excluding one-offs

Capex 73 38 73 0% 94%

Margins %

Gross Profit 25% 30% 29% 390 bps -32 bps

EBIT 5% 7% 8% 302 bps 138 bps

EBITDA 14% 17% 17% 270 bps -14 bps

EBIT w/Other Items 9% 9% 10% 56 bps 58 bps

Adjusted EBITDA w/Other Items 18% 19% 18% 24 bps -94 bps

Adjusted Net Income 5% 7% 7% 203 bps 54 bps

Capex/Sales 14% 6% 10% -380 bps 409 bps

12

Higher depreciation & amortization was

recorded y-o-y mainly due to new capacity

increase in Bulgaria

One-off income was recorded in 2016 Q2

from the sale of Soda shares amounting TL

284 mn

Dividend income was recorded in 2016 Q1

from Soda Sanayii A.Ş. amounting TL 24 mn

2

1

Key Financial Indicators

Bulgarian operations are excluded from 2016 Q2

figures by:

From Revenue = Excluding the revenue coming from

Bulgarian Operations and eliminated sales from

Turkey to Bulgaria in the consolidated revenues are

added

From EBIT = After excluding the COGS & operating

expenses related to Bulgaria, adding Trakya Cam’s

share in Bulgarian net income calculated according

to equity pick-up method

6

Consolidated results for 2015 Q2 includes equity pick-

ups: Bulgaria, India & Egypt. Starting 2016, Bulgarian

operations are fully consolidated on the financial

statements

Summary Financials - Excluding Bulgarian OperationsTRY mn 2015 Q2 2016 Q1 2016 Q2 YoY Growth QoQ Growth

Revenue 525 627 723 38% 15%

Excluding Bulgaria 525 537 615 17% 15%

EBIT* 27 43 59 118% 39%


EBITDA* 73 104 119 65% 14%


EBIT* 5% 7% 8% 302 bps 138 bps

Excluding Bulgaria 5% 5% 6% 51 bps 79 bps

EBITDA* 14% 17% 17% 270 bps -14 bps

Excluding Bulgaria 14% 13% 13% -72 bps 28 bps* Gross Profit-Opex(G&A+Marketing+R&D)

EBIT w/Other Items** 50 84 357 6 bps 3 bps

Excluding One-offs 50 59 73 46% 23%

Excluding One-offs & Bulgaria 50 55 68 37% 24%

EBITDA w/Other Items** 95 145 417 339% 187%

Excluding One-offs 95 121 133 40% 10%

Excluding One-offs & Bulgaria 95 97 108 14% 11%

EBIT w/Other Items** 9% 13% 49% 3986 bps 3598 bps

Excluding One-offs 9% 9% 10% 56 bps 58 bps

Excluding One-offs & Bulgaria 9% 10% 11% 160 bps 86 bps

EBITDA w/Other Items** 18% 23% 58% 3953 bps 3445 bps

Excluding One-offs 18% 19% 18% 24 bps -94 bps

Excluding One-offs & Bulgaria 18% 18% 18% -49 bps -51 bps* Including other income&expense, income from equity pick-ups & investment activities

525

723

2015 Q2 Europe Russia Domestic Export Elimination 2016 Q2

554%

YoY

Sales by Geographies

7

Accelerated Growth in All Operating Regions

2015 Q2 2016 Q2

YoY Revenue Evolution through Regions

TRY mn

Breakdown of Sales by Region

171%

YoY

94%

YoY

19%

YoY

30%

YoY

20%

4%

16%60%

Europe Russia Export Domestic

37%

5%8%

50%

• Europe’s share increased y-o-y after the inclusion of Bulgarian operations in 2016 Q2, which constitutes almost 50%

of the European revenues. Increased demand in European architectural markets also led to improved volumes and

prices

• Share of Russian operations increased thanks to the recovery in flat glass prices

• Exports’ share declined y-o-y due to full consolidation of Bulgarian operations. Starting 2016, sales from Turkey to

Bulgaria is eliminated from the consolidated revenue (Exports to Bulgaria account for over 10% of total exports)

• Elimination between the geographies increased due to full consolidation of Bulgarian operations

• Businesses benefited from improved market conditions as revenues coming from construction and automotive

industries are strong and recurring revenue streams

• Slight decrease in auto-glass contribution mostly coming from Romania & Russia where capacity utilization rates are

below optimum levels

• Starting 2016, elimination between the businesses increased due to full consolidation of Bulgaria

Sales by Businesses

8

Accelerated Growth in All Businesses

TRY mn

Revenue Breakdown by Businesses

61% 59% 61%

39% 41% 39%

-1% -7% -5%

2015 Q2 2016 Q1 2016 Q2

Basic Glass Auto-Glass & Incapsulated &Home Appliances Elimination

Financials PerformanceConsolidated EBITDA & CAPEX Consolidated Net Debt/EBITDA

TRY mn

Maturity Breakdown of Debt Currency Breakdown of Debt

TRY mn

2016 Q2

9

245

613

418

286

3873

193

269

387 391

145 133

0,79

0,44

0,93

1,37

3,84

1,81

2012 2013 2014 2015 2016 Q1 2016 Q2

Capex EBITDA

378 389 396

722813

640

1,0 1,0 1,1

1,81,8

1,3

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2

Net Debt Net Debt/EBITDA

28%

11%

10%

45%

4%

3%

0% 10% 20% 30% 40% 50%

within 1 year

1 to 2 year

2-3 year

3-4 year

4-5 year

5 years-

44%

51%

5%

2016 Q2

USD EUR TRY

Operational Performance

Continued Production with High Capacity Utilization

K tons

Production Volume (Flat & Frosted Glass)

1.5 mn

K/tonnes

per

annum

1.6 mn

K/tonnes

of Total

Annual

Capacity

1.9 mn

K/tonnes

of Total

Annual

Capacity

2 mn

K/tonnes

of Total

Annual

Capacity

2.5 mn

K/tonnes

of Total

Annual

Capacity

2.5 mn

K/tonnes

of Total

Annual

Capacity

Operations in Bulgaria, India & Egypt - not included* Bulgarian operations – included**

Operations in Bulgaria, India & Egypt - not included*Bulgaria, India & Egypt are consolidated as equity pick-ups

**Starting 2016, Bulgarian operations are fully consolidated10

1.117 1.2161.390

1.259

311 333

102191

148 146

1.491 1.450

460 479

2012 2013 2014 2015 2015 Q2 2016 Q2

International Domestic

Trakya Cam

Global & Local Presence

History

Organizational Structure

11

3,5%

3,0%

64%

Global

Europe

Turkey

Free Float31%

Sisecam69%

Trakya Cam

12

Bulgaria

Trakya Glass Bulgaria EAD

Float, & Auto Glass,

Mirror & Processed

Laminated Line

470K tons / year

#2

#1

#5

Market Shares(1)

SHAREHOLDERSOperations & Global Presence

Russia, Rebuplic of Tataristan

Trakya Glass Rus AO, AGAR

Float & Auto Glass

Mirror Line

230K tons / year

Slovakia

Richard Fritz

Incapsulation

Germany

Richard Fritz

Holding

Incapsulation,

Prototype,

Spareparts

Turkey

Float,Frosted & Auto Glass ,

Mirror, Coated, Processed,

Laminated Line

1.795K tons / year

India

HNG Float Glass

Limited

Float Glass,

Mirror Lİne

100K tons / year

Egypt

Saint-Gobain Glass

Egypt (JV-30%)

Float Glass Plant

85 tons / year

Flat Glass Market Shares(1) in operating regions

42%

8%

64%

Balkans

Russia

Turkey

Auto Glass Market Shares(1) in operating regions

8%

5%

66%

Europe

Russia

Turkey

2

1 1

1

7 11

1

1 1

2

Hungary

Richard Fritz

Incapsulation

Romania

Glasscorp

Auto-glass

1

indicates number of

Encapsulated Automotive Glass Plantindicates number of

Float Line Plantindicates number of

Automotive Glass Plant * Market Shares are as of 30.06.2016

Local Presence

13

High Concentration in the Local Market

2 Float Lines (440K ton Total Capacity) Mirror, AutoglassLüleburgaz

Yenişehir Float Lines (500K ton Total Capacity) Coated, Laminated Line

Float Line (290K ton Total Capacity)

Mersin Float Lines (565K ton Total Capacity) Mirror Line, Frosted Glass Line,

Solar Glass Line

2

1

2

Polatlı

Trakya Cam’s Capacities in Domestic Market

Competition in Domestic Market

64%11%

25%

H1 2016

Trakya Cam Competitor Import

Market Shares - Consumption

Top Importers – Share in Total Import Volume

Imports from China have decreased thanks to recovery in

anti-dumping measures against China

Bulgarian imports include the sales coming from Trakya

Cam’s operation unit

4%

23%

36%

14% 15%19%

19%

15%

3%6%

6%

6%

7%

1%3%

1%

3%

6%

11%11%

8%

9%

6%

2012 2013 2014 2015 1H 2016

Russia China Bulgaria Saudi Arabia Belgium

Operating ProfileClear Float -Glass

Heat Control Glass (Low-E Coated Glass)

Solar Control Glass (Online Coated Glass)

Safety and Security Glasses

Noise Control Glasses

Decorative Glasses (Mirror, Patterned Glass)

Movable Door Glasses

Fixed, Encapsulated Fixed Side Glasses

Flush (Glass-in-Glass) Side Windows

Backlites (Back Door Glasses)

Sunroofs

Double-glazed Bus Sidelites

Bullet-proof Glass for Military Vehicles

Combat Ship Glasses

Encapsulated Glasses

Refrigerator and Oven Glasses

Solar Thermal Collector and Photovoltaics

Architectual

Glass

Automotive

Glass

Home

Appliances

-

Solar Glass

Related Industries

14

History

Trakya Cam was founded in Lüleburgaz, Turkey

Lüleburgaz plant resumed production, being the first in the region to use float technology.

Lüleburgaz Automotive Glass Plant resumed

production

Mersin plant resumed

production

2nd float line in Mersin resumed

production

First float line production in Bulgaria and added mirror and tempered glass to its

portfolio

Yenişehir Plant resumed production

Automotive glass productionstarted in Bulgaria. JV with Saint Gobain for Egypt and

Russia Projects

Projects in Russia, Romania, India, Germany with the aim of expanding our operations to become a global player

Acquisition of Glasscorp in

Romania

Acquisition of Fritz Groupin Germany. JV with HNG Float Glass Ltd in India

Polatlı and Russia Plants resumed production

Cold repair of the 2nd float line in Mersin

2nd float line in Bulgaria resumed production

Restructuring of Bulgarian

Operations

1978 1981 1991 1996 2000 2006 2007 2010 2011 2012 2013 2014 2014 2015 2015

15

Organizational Structure

Trakya Yenişehir

Cam Sanayii

A.Ş.

Trakya

Investment B.V.HNG Float Glass

Limited

(JV)

TRSG Glass

Holding BV

Trakya

Autoglass

Holding BV

Automotive

Glass Alliance

Rus AO

AGAR Trading

AO

Trakya Glass

Rus AO

Trakya Glass

Rus Trading

AO

Fritz Holding

GMBH

Trakya Glass

Bulgaria

EAD

Saint Gobain

Glass Egypt

(JV)

Richard Fritz

Spol S.RO.

Richard Fritz

KFTRichard Fritz

Prototype + Spare

Parts Gmbh

TRAKYA CAM SANAYİİ A.Ş.

%85 %100 %50 %100 %70

%30 %100 %100

%100 %100 %100

%100 %100 %100 %100

Trakya Polatlı

Cam Sanayii

A.Ş.

%85

Glasscorp SA

%90

Şişecam

Automotive

Bulgaria EAD

%100

Şişecam

Otomotiv

A.Ş.

%100

16

29

Şişecam

Executive Summary

Revenue & Cash Generation

Company Overview

17

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 more than 130 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

18


Sustained Growth in Revenue with Preserved EBITDA Margin

EBITDA Margin

TRY mn

4.979 5.320 5.954

6.8767.415

3.5294.002

1.267966

1.223 1.3651.764

892 878

2011 2012 2013 2014 2015 1H2015 1H2016Revenue EBITDA EBITDA Margin

25% 18% 21% 20% 24% 25% 22%19


Balanced Contribution of the Segments in Conformity with Previous Years’ Results

Segments’ Contribution to Revenue

* Consists of energy trade of Şişecam

1H20161H2015

20

33%

22%

21%

19%

5%

33%

23%

21%

19%

4%

*


Balanced Contribution of the Segments in Conformity with Previous Years’ Results

Segments’ Contribution to EBITDA

* Consists of energy trade of Şişecam

1H2015 1H2016

*

26%

16%

19%

28%

11%30%

12%

19%

33%

6%

Flat Glass Glassware Glass packaging Chemicals Other

21


Geographical Contribution to Revenue

Operations in Turkey Foreign Operations

TRY 4 bnRevenue in

1H 2016

Domestic

Export

Europe

RussiaUkraineGeorgia

22

TRY 2,8 bnRevenue

TRY 1,2 bnRevenue

69%

31%

66%

34%


Exports from Turkey

23

North & Middle

America

SouthAmerica

Middle East

Africa

Asia

Far East

Oceania

Europe

5%

4%

13%

15%

49%12%

1%

1%

Top 10 CountriesExports of USD 338 Million in 1H 2016 to more than 130 countries Italy 13%

Egypt 7%

China 5%

France 5%

Bulgaria 5%

Saudi Arabia 4%

UK 4%

Germany 4%

USA 4%

Spain 4%

Global Presence

Strong Global Player with Competitive Profitability

24Sources: Bloomberg & Companies Websites

Calculations were made based on 1H2016 financials except for Ardagh and NSG (2016 Q1 financials were the most recent data)

26%

20%

26% 25%

17%

26%

20%

30%

16%19%

10%

19%18%

9%

20%22%

Asahi Glass Owens Illinois St Gobain Owens Corning Ardagh NSG NEG Şişecam

Gross Margin EBITDA Margin

NEG 100%

Owens Illinois 100%

NSG 100%

Şişecam 76%

Owens Corning 64%

Ardagh 61%

Asahi Glass 55%

St Gobain 25%

% of Glass Sales in Total Revenues

Operating Territories

25

Şişecam History

26

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

27

*Publicly Traded at BIST-100

Prudent Risk Management Policies

28

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

29

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-overview-and-governance/corporate-governance-policieshttp://www.sisecam.com.tr/en/sustainability/sustainability-reports

Corporate Governance & Sustainability

MOODY’S LT FCY Rating Ba1 Stable

S&P LT FCY Rating BB Negative

Credit Ratings

http://www.sisecam.com.tr/en/investor-relations/corporate-overview-and-governance/corporate-governance-policies

http://www.sisecam.com.tr/en/sustainability/sustainability-reports

DisclaimerThis information in this document has been obtained by Soda Sanayii A.Ş. from sources believed to be reliable, however,Soda Sanayii 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 Soda Sanayii A.Ş. to thepublic and the relevant corporations are accepted to be the sole material. Soda Sanayii 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 Soda Sanayii A.Ş.and can be subject to change without notice. This document cannot be interpreted as an advice to the investors and SodaSanayii A.Ş. cannot be held responsible for the results of investment decisions made on account of this document. Thisdocument 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

30

2011 2012 2013 2014 2015 1H2015 1H2016

USD/TL

Period End 1,89 1,78 2,13 2,32 2,91 2,69 2,89

Period Average 1,67 1,79 1,90 2,19 2,72 2,56 2,92

EUR/TL

Period End 2,44 2,35 2,94 2,82 3,18 2,98 3,20

Period Average 2,32 2,30 2,53 2,90 3,02 2,86 3,26

Contact DetailsGörkem 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 Kayaer

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

Sezgi Eser Ayhan

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

Trakya Cam Sanayi 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

mailto:[email protected]





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