Şişecam Group Achieves $320 Million in Exports

Şişecam Group's consolidated net sales for the January-June 2020 period reached TRY 8.8 billion. International sales accounted for 60% of Şişecam's total sales during this period, while the Group's total investments in the first half of the year amounted to TRY 625 million, and exports reached approximately USD 320 million. Şişecam Group Vice Chairman of the Board of Directors and Chief Executive Officer Prof. Dr. Ahmet Kırman stated that they continued to create value for all stakeholders in the first half of 2020, a year marked by extraordinary conditions as the effects of the global pandemic were felt across all sectors, saying "Our sales, which declined on a global scale in April due to the pandemic's impact, began to rise in May thanks to the swift decisions we took and our effective management actions. Particularly from June onwards, as quarantine measures were eased and the normalization process began in many geographies where we operate, particularly in our country, our sales performance made a strong recovery. June provided a very positive signal for the second half of the year. In the period ahead, with uncertainty over the extent of the global pandemic's impact, we will continue to closely monitor all developments and make necessary updates to our business processes and plans," he said.

"June's performance provided a very positive signal for the second half of the year"

Noting that in the first quarter of the year they achieved results in line with expectations and targets, and that in the second quarter the effects of the global pandemic became evident, Kırman continued as follows: "During this period, our chemicals business line serving critical sectors, particularly food and pharmaceuticals, as well as our glass packaging division demonstrated resilient performance. While our flat glass business line serving locomotive sectors such as automotive, white goods and construction showed this resilience, our glassware business, which is directly affected by tourism and household consumption, experienced significant demand contraction. However, with steps being taken to begin the normalization process in May, activity in demand began to emerge. In June, with the acceleration of the normalization process, recovery gained momentum both in domestic demand and in exports as quarantine measures were eased and borders opened in international markets.

June, when we demonstrated performance that positively revised our forecasts compared to the previous year in terms of the full year, provided a very positive signal for the second half of the year.

In the period ahead, with uncertainty over the extent of the global pandemic's impact, we will continue to closely monitor all developments and make necessary updates to our business processes and plans." Noting that the EBITDA margin, which stood at 32% in the first quarter, reached 27% for the January-June 2020 period, Kırman spoke as follows: "From the beginning of the global pandemic, we rapidly implemented cost-saving measures. Unlike other industrial sectors, based on the necessity of continuous production in our existing business lines based on melting technology, we rapidly updated our production plans and business processes, taking into account developments in the sectors we supply to. With the impact of our optimization efforts and actions taken, our consolidated EBITDA volume in the first half of the year reached TRY 2.3 billion. During this period, thanks to our strong liquidity position, we made dividend payments of approximately TRY 470 million and repaid a Eurobond with a maturity of USD 300 million. Additionally, our strong financial structure enabled us to continue necessary investments for our operations without interruption and to invest a total of TRY 625 million in the first half."

"While supporting the fight against the global pandemic, we achieved firsts in Turkey and the world"

Emphasizing that, as a global player in the glass industry as well as in the chemicals field encompassing soda and chromium compounds, Şişecam acted with the responsibility this position brings, and during the pandemic ensured uninterrupted production and services for the community's basic needs while fully meeting its duties regarding the health of employees, business partners and customers, Kırman stated: "Through the steps we took during this period, we are supporting a large ecosystem composed of our employees, customers, suppliers, business partners and all parties we interact with. We assume responsibility not only by limiting the fight against the pandemic to actions within Şişecam, but also by supporting work related to public health. In this context, with the beginning of the pandemic in our country, we provided support in procuring ventilators, video laryngoscopes, masks, coveralls, gloves and similar equipment needed by public hospitals.

In line with our corporate responsibility approach, in countries such as Italy, Bulgaria, Bosnia and Herzegovina and Georgia where we operate, we have contributed to our stakeholders to the extent of priority needs and available resources."

Expressing that Şişecam, a global player with production activities spanning 14 countries across four continents and 22,000 employees, continued to achieve firsts in Turkey and the world during the global pandemic, Kırman continued as follows: "In support of the fight against the global pandemic, we achieved a very significant first in the field of glass homeware worldwide. By combining our superior R&D capabilities and the strength gained from our production expertise, we developed Antimicrobial V-Block Technology that neutralizes viruses and bacteria on glass surfaces in just two months. In the period ahead, we plan to apply this technology to glass packaging, architectural glass and white goods glass. Since the beginning of the pandemic, with the highest level of measures and applications we have implemented to protect the health of all our employees, business partners and customers, we have also achieved the distinction of being the first glass producer to obtain the 'TSE Covid-19 Safe Production Certificate.' During this period, we have also continued to be pioneers with our competencies outside our main areas of activity, such as Treasury Management. In line with our end-to-end digital treasury management target, Şişecam was the first company in our country to implement example applications such as blockchain technology for foreign trade transactions and the Digital Fraud Detection and Control System."

"Şişecam is bringing all its operations under one roof in its 85th year"

Recalling that Şişecam embarked this year on consolidating all its operations under one roof, Kırman said, "2020, the year we celebrate Şişecam's 85th anniversary and the year we will consolidate all our operations under one roof, holds special significance for us. Our application to the Capital Markets Board regarding the merger was approved in recent days. We will also hold General Assembly meetings regarding the merger that will add strength to Şişecam's global competitiveness in August. Within the framework of applicable regulations, we expect the merger process to be completed within September. Through this merger, in the new world order following the global pandemic where agile and fast institutions will gain advantage, we will have the opportunity to create synergy in many areas. We aim to establish and maintain a legal and administrative infrastructure more conducive to global competition and to create more value for all our stakeholders in line with our sustainable growth strategy," he said.