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ARÇELİK A.Ş. Investor Presentation 2024
5890_rns_2024-03-01_a7df012f-b644-4c5f-bb09-c52829c7e378.pdf
Investor Presentation
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2023 Financial Results
March 1, 2024
Sensitivity: Public
With the Capital Markets Board of Turkey's Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions.
Accordingly, this presentation on 2023 year-end financial results contain the Company's audited financial information prepared according to Turkish Accounting / Financial Reporting Standards by application of IAS 29 inflation accounting provisions, in accordance with CMB's decision dated 28.12.2023. In addition to these, given that the guidance information and the 2023 interim financial results announced so far were presented without the application of inflation accounting, in order to enable investors and analysts to conduct a full-fledged analysis, supplementary historical information for selected key performance indicators used in prior periods' investor presentations were provided. Such supplementary information is made available only for this period, and contains unaudited financial information prepared for management reporting purposes.
This presentation does contain forward-looking statements and figures that reflect the Company management's current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable under current conditions, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ. Neither Arçelik nor any of its directors, managers, or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.
2023 HIGHLIGHTS
TRY257.1bn
Revenue
7.8%
EBITDA Margin
24.8%
OPEX/Sales
24.2%
NWC/Sales
2.67x
Leverage
Resilient demand in Türkiye, weakness in international markets. Margin expansion at all lines thanks to eased costs in 2023.
Consolidated revenues were flattish in 2023 compared to 2022.
Wholesale & retail demand in Türkiye was solid throughout 2023 while the demand in international markets remained weak.
EBITDA margin was 7.8% in 2023, up by 145 bps y/y thanks to declined raw material costs.
Net Working Capital/Sales was 24.2% as of 2023.
Leverage was 2.67x as of 2023.
Key Factors Sales/Margins
2023 Financial Results
- Strong unit growth in Türkiye
- Strategic pricing initiatives
- Declined international MDA6 unit sales
Sensitivity: Public
7.8%
Operational Performance
2023 Financial Results
Türkiye in 2023: Another year of sustained strong leadership as consumer demand remained robust throughout the year 2023 Financial Results
Türkiye Revenue Growth
Türkiye Share in Total Revenue
Sensitivity: Public *MDA6 and A/C data (sell-in, in unit terms) is based on WGMA for the given periods. **TV market reflects the data of a retail panel market for the given period in unit terms. ***Adjusted with the rate of 1. 64773.
Europe in 2023: Consumer demand contracted progressively at declining rates in Western Europe towards the end of the year, as it improved in Eastern Europe
2023 Financial Results
16% Share in total revenue
7
Ukraine
Romania
Poland
Russia
E. Europe
9M23 2023
14% Share in total revenue
Africa & Middle East Asia-Pacific
- Revenues generated from Africa & Middle East decreased by c.6% y/y in 2023 in EUR terms.
- Defy's domestic unit sales increased c.4% y/y in 2023 while export units declined by c.8%.
- Defy's net sales increased by 3% in ZAR terms in 2023 y/y. In EUR terms, net sales were contracted at low-teens percentage, as a result of depreciated ZAR against EUR.
- South African MDA6 market was contracted by c.6% y/y in 2023. Defy maintained its strong market leadership in 2023.
- In Egypt, MDA6 market was down by c.9% y/y in 2023 in unit terms. Beko Egypt outperformed the market and gained market share in unit terms in 2023.
- Beko Egypt posted a solid revenue growth of %27 in EUR terms y/y in 2023 thanks mainly to increased white goods sales.
- Revenues generated from APAC were down by c.18% in EUR terms in 2023 y/y. The contraction was primarily as a result of weak demand environment throughout 2023.
- In Pakistan, net sales decreased by c.2% y/y in 2023 in PKR terms due to lower units sold given the unfavorable economic conditions impacting the demand negatively. In EUR terms, net sales were contracted by c.30%, reflecting the depreciation of PKR and contracted sales units.
- In Bangladesh, net sales were flattish in BDT terms in 2023 y/y. As a result of depreciated BDT against EUR, net sales contracted by c.16% y/y in EUR terms.
Softened raw material prices throughout 2023 2023 Financial Results
• Metal raw material prices contracted in 2023 on a yearly basis mainly due to declined global demand, increased policy rates and decreased energy & input costs.
Average Plastic Prices Index - Market
• Plastic raw material prices declined on a yearly basis in 2023 as a result of lower demand and decreased energy and transportation costs.
Sensitivity: Public
Source: ICIS - Chemical Industry News & Chemical Market Intelligence Index includes: ABS, Polystyrene, Polyurethane, Polypropylene
Sales Performance
Resilient revenue composition through diversification 2023 Financial Results
Sales Bridge Sales Breakdown by Geography
Financial Performance
2023 Financial Results
| TRYmn | 2022 | 2023 | y/y |
|---|---|---|---|
| Revenue | 257,172 | 257,104 | (0%) |
| Gross Profit | 68,671 | 75,378 | 10% |
| EBIT* | 8,295 | 11,362 | 37% |
| Net Financial Income/Expense | (11,960) | (12,354) | 3% |
| Monetary Gain/Loss | 7,928 | 9,888 | 25% |
| Profit Before Tax | 7,239 | 7,158 | (1%) |
| Net Income** | 7,008 | 8,395 | 20% |
| EBITDA | 16,358 | 20,077 | 23% |
| Gross Profit Margin | 26.7% | 29.3% | 262 bps |
| EBIT Margin | 3.2% | 4.4% | 119 bps |
| Monetary Gain(Loss)/Revenue | 3.1% | 3.8% | 76 bps |
| Net Income Margin | 2.7% | 3.3% | 54 bps |
| EBITDA Margin | 6.4% | 7.8% | 145 bps |
* EBIT was calculated by deducting the impact of FX gains and losses arising from trade receivables & payables, credit finance income and charges and cash discount expense and adding income & expenses from sale of property plant and equipment. ** Net income before minority.
Leverage maintained at healthy levels 2023 Financial Results
Sensitivity: Public *Total financial debt is equal to TRY75.8bn when cash pool and company credit card balances are excluded. **Average effective TRY, EUR, USD funding (loans + bonds) rate was 41.0%, 4.1% and 8.6%, respectively. ***The average duration of the consolidated debt portfolio was 2 years.
Key Performance Indicators 2023 Financial Results
Guidance
2023 Financial Results
| Guidance | ||
|---|---|---|
| Revenue | ||
| Turkey (in TRY) | Flattish | |
| International (in FX) | c.2% | |
| EBITDA Margin | c.8% | |
| NWC/Sales | <25% | |
| CAPEX | c.300 EUR mio |
Appendix
| Guidance | Actual | |
|---|---|---|
| Revenue | ||
| Turkey (in TRY) | c.75% growth | 87% |
| International (in FX) | c. (-) 4% | (-) 6% |
| EBITDA Margin | c.10.5% | 9.8% |
| NWC/Sales | <25% | 23.4% |
| CAPEX | c.300 mio EUR | 314 mio EUR |
Summary financial KPI's w/o application of IAS 29 2023 Financial Results
Sensitivity: Public *EBITDA was calculated by deducting the impact of FX gains and losses arising from trade receivables & payables, credit finance income and charges and cash discount expense and adding income & expenses from sale of property plant and equipment. **Net income before minority.
2022 2023
Özkan Çimen Chief Financial Officer (+90) 212 314 34 34 Öktem Söylemez Investor Relations Senior Lead (+90) 212 705 96 81 Mine Şule Yazgan Finance & Enterprise Risk Executive Director (+90) 212 314 30 60
www.arcelikglobal.com
Thank You!
