PROUDLY TOWARDS
THE FUTURE

We continue to perform in line with our goal of becoming one of the top three players in the world in our sector. With our digital transformation projects, we shorten the distances to the target, we combine intelligent technologies with our qualified manpower, and we achieve successful results around the world.

SALES 32,1 TRY billion
INVESTMENTS 2,6 TRY billion

ALWAYS READY
TO COMPETE

While designing strategic moves for tomorrow’s market needs and conditions, we are striding into the future by taking bold and confident steps with an effective and proactive management approach. Thanks to our forward-looking decisions, we always keep Şişecam’s performance at top level. Our ever-increasing competitiveness, long-established experience, strong agility, well-qualified human resources and smart technology capabilities help us achieve our objectives.

TOTAL GLASS PRODUCTION 5,6 million tons

ABILITY TO BREAK DOWN BARRIERS
WITH COLLECTIVE WISDOM

The challenges of the pandemic, difficulties in raw materials supply, disruptions in global supply chains – none of these hindered our success. The many challenges we faced during the year were not our first, nor will they be our last. As a global company managed with collective wisdom, we are keenly aware that we will face an array of future challenges. We are moving forward based on the scenarios we developed with competent analyses against all kinds of possibilities.

EQUITY 49,4 TRY billion

TRANSFORMATION MOVES
TOWARDS THE FUTURE

Şişecam is further expanding its competencies and boundaries in R&D, with its deep experience of half a century. We are conducting efforts that make a difference in many areas at our R&D Center – one of the largest in Europe – and at our regional laboratories. At the same time, we are a key stakeholder in helping develop the industries to which we provide input. We are creating the technologies of tomorrow for a sustainable world and blending our experience with our future.

R&D EXPENDITURE 245 TRY million OVER THE LAST 3 YEARS

STRONG INFRASTRUCTURE,
HOLISTIC PERFORMANCE

As a global company that operates 45 production facilities located in 14 countries around the world, we manage our large and widespread organization holistically. Our digital transformation efforts are advancing at a rapid pace – not only in production, but also in sales-marketing, logistics, and supply chain management. We believe that our digitalization journey will empower Şişecam to grow and develop even under the most challenging conditions.

DIGITAL TRANSFORMATION INVESTMENTS 291 TRY million OVER THE LAST 3 YEARS

SUSTAINABLE
AND BALANCED PROGRESS

While we are rapidly moving towards our goals, we pay close attention to society and our environment . We always keep our planet at the forefront. We formulated the Şişecam Sustainability Strategy “CareforNext” with the participation of our stakeholders following indepth research studies and in line with UN Sustainability Development Goals. We shape all our investment, production, management, and social responsibility processes with a focused approach around this strategy. CareforNext is based on the key concepts of “Protect the Planet,” “Empower Society,” and “Transform Life.” Guided by this core strategy, we are taking major steps forward toward a sustainable future while aiming for continuous development.

ENVIRONMENTAL AND SOCIAL INVESTMENTS 130 TRY million OVER THE LAST 3 YEARS

A Şişecam facility that has been operating for 14 years and 45 years. Global studies of more than 150 evaluation selections are carried out in the world.

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Şişecam produced in 2021 5.6 million tons of glass, 2.3 million tons of soda and 4.5 million tons of industrial raw materials and increased its consolidated net sales to TL 32.1 billion as of the end of the operating period.

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Prof. Dr. Ahmet Kırman
Interview with

Chairman of the Board of Directors of Şişecam Prof. Dr. Ahmet Kırman answers the curious questions...

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ŞİŞECAM AT A GLANCE

Şişecam, International Scale
It is an Operating Industrial Company.

Şişecam operates with 45 facilities in 14 countries in the fields of flat glass, glass household appliances, glass packaging, chemicals and automotive business lines.

Glass, flat glass, glassware, glass packaging, chemicals and 22 thousand employees in 14 countries in the automotive business with an internationally operating industrial company. Şişecam exports its products to more than 150 countries in the world and makes more than half of its sales globally.

Atatürk's instructions, 1935, the bank established by the founder of Turkey, 86 years with a history of being one of Turkey's oldest industrial companies in addition to expertise, superior competence and competitive activities among the most distinguished manufacturers in the world.

ŞİŞECAM CREDIT RATING
Moody’s B2/Negative
Fitch BB-/Negative
JCR Eurasia BBB-/Stable
ŞIŞECAM CORPORATE GOVERNANCE RATING
16 December 2021 9,551
Şişecam is listed on the Istanbul Stock Exchange with the SISE code.

*The ranking is as of December 21, 2021 after the US financial fixed asset acquisitions.
** The ranking for other fields of activity is determined according to production capacity, and the ranking for Automotive Windows is determined according to turnover amounts.

9,2
billion TL
Profit for the Period

ŞİŞECAM HAS RECORDED A SIGNIFICANT SUCCESS, INCREASING ITS PROFIT FOR THE PERIOD BY 226% COMPARED TO THE PREVIOUS YEAR.

* As of year-end 2021, 48% of Şişecam employees are based globally.

2022-2030 VISION

Creating positive impact and value on a global scale with applications and solutions that Protect the Planet, Empower Society and Transform Life

PROTECT the Planet

Climate Change
Water Use
Circular Production

EMPOWER Society

Corporate Heritage
Equality, Diversity and Inclusion
Talent Acquisition, Management and Development
Occupational Health and Safety

TRANSFORM Life

Digitalized Value Chain
Sustainable Products
Sustainability across the Value Chain
Value-Added Partnerships

SHAREHOLDER AND INVESTOR RELATIONS

ŞİŞECAM CONDUCTS ITS INVESTOR
RELATIONS ACTIVITIES IN A TRANSPARENT AND PROACTIVE WAY.

ABOUT 450 INVESTOR MEETINGS WERE CARRIED OUT VIA TELEPHONE, ONEON-ONE ONLINE PLATFORMS, ROADSHOWS AND CONFERENCES IN 2021.

Embracing its vision of being a global company, Şişecam is committed to implementing world class investor relations and corporate governance practices with the primary objective of constantly increasing its shareholder value.

Şişecam Investor Relations’ main responsibilities include increasing the shareholder value of Şişecam and taking necessary steps to ensure that capital market instruments issued by Şişecam trade at their fair value. In order to provide complete and accurate information on Şişecam’s financial performance and results to all relevant parties, Investor Relations uses many communications tools and platforms – such as websites, investor relations presentations, earnings reviews, webcast teleconferences, participation roadshows and conferences.

Şişecam conducts its investor relations activities in a transparent, proactive and expeditious way based on fair disclosure to all investors. In 2021, capacity constraints, logistics bottlenecks, supply chain disruptions and inflationary environment brought about by the Covid-19 pandemic on a global scale topped the world agenda. At Şişecam, the focus was on new investment decisions, organizational transformation of the company’s unified structure, and its digitalization journey.

About 450 investor meetings were carried out via telephone, one-onone online platforms, roadshows and conferences in 2021. Two webcasts were also streamed to announce the 2020 yearend and 2021 first-half financial results. These broadcasts reached an audience of more than 200 investors. Şişecam is committed to conduct webcasts regularly, at least twice a year.

Following the year 2020 when the “One Şişecam” structure was implemented, Şişecam took many important decisions in 2021. Şişecam increased its share in the USA Natural Soda Production project, the foundations for which were laid in 2019. With the acquisition completed in the last days of the year, Şişecam added a second natural soda mine development project in the USA to its operational portfolio. In addition, Şişecam became the controlling shareholder of Ciner Resources LP, a natural soda mineral producer traded on the New York Stock Exchange. As a result of its expanding production portfolio, Şişecam became one of the largest soda ash producers in the world. After the decision related to the USA Natural Soda Investment, Şişecam met more than 150 investors via two webcasts. These webcasts were held to convey the rationale for the transaction and the expected contribution of the investment to Şişecam’s operations portfolio.

In 2021, the number of sell-side analysts publishing research reports on publicly traded companies continued to decline. Many analysts continued to join portfolio management firms due to the effect of the Markets in Financial Instruments Directive (MIFID). Nevertheless, a total of 5 new institutions, 2 of which were foreign, were added to the list of brokerage firms covering Şişecam. More than 100 research reports on Şişecam were published throughout the year. Şişecam’s higher free float rate, which resulted from the merger completed in 2020, its inclusion to MSCI Global Standard index and the rise in its trading volume as well as the company’s balanced portfolio of operations and its strong financial performance associated with growth-oriented strategies and agile management policies and last but not least, its organizational and digital transformation were the main reasons for the increased number of research coverage

In the Institutional Investor “Emerging EMEA Management Team” survey, in which 351 publicly traded companies from 30 countries and 11 sectors were evaluated by close to 450 investors and analysts, Şişecam was ranked as the first in the category of “Best CEO” by the Buy-side and Sell-side. In addition, Şişecam was ranked as the second among industrial enterprises in the category of “Best Investor Relations Officer” by the Sell-side and the third in the “Best Investor Relations Officer” by the Buy-side and Sell-side.

Türkiye Şişe ve Cam Fabrikaları A.Ş. creates significant value added in all geographies and industries where it operates while also creating value for its investors.

As of end-2021, the BIST-100, BIST-30, BIST Holding and BIST Industrials Indices increased by 26%, 24%, 23% and 45%, respectively year-on-year. In the same period, Şişecam shares outperformed these indices with an 87% rise in value year-on-year.

In collaboration with the Financial Control and Reporting Directorate, Investor Relations ensures that Şişecam fully meets all applicable capital market regulatory requirements. Investor Relations is also responsible for ensuring coordination and communication with all related parties within and outside Şişecam about the company’s corporate governance rating and credit rating assessment processes.

A Corporate Governance Rating Periodic Revision Report dated December 16, 2020 was issued by SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş., a rating agency licensed to carry out rating assessments in accordance with the Capital Markets Board (CMB) Corporate Governance Principles. In the report, Şişecam’s Corporate Governance Rating was raised from 9.54 (9.538/10) in 2020 to 9.55 (9.551/10) in 2021. In particular, an improvement was recorded in the rating of the Public Disclosures and Transparency section. Şişecam achieved this exceptional score thanks to the importance it places on corporate governance principles, the company’s willingness to implement these principles as part of an ongoing dynamic process, and its improvement efforts since the previous rating. This rating is highly significant in terms of reaffirming Şişecam’s superior corporate governance standards.

AS OF END-2021, THE BIST-100, BIST-30, BIST HOLDING AND BIST INDUSTRY INDICES INCREASED BY 26%, 24%, 23% AND 45%, RESPECTIVELY YEAR-ON-YEAR. IN THE SAME PERIOD, ŞİŞECAM STOCK WELL OUTPERFORMED THESE INDICES WITH AN 87% GAIN YEAR-ON-YEAR.

Performance of Şişecam Shares Relative to BIST-100 Index (2021)

The breakdown of the Corporate Governance Rating based on main sections is as follows:

Shareholders 0,25 95,49
Public Disclosures and Transparency 0,25 97,48
Stakeholders 0,15 99,48
Board of Directors 0,35 92,42
Total 1,00 95,51

ŞİŞECAM’S CORPORATE GOVERNANCE RATING ROSE TO 9.55.

Investor Relations contact information:
E-mail: SC_IR@sisecam.com
Tel: +90 850 206 3374
Fax: +90 850 206 4262

ŞİŞECAM’S PRODUCTION CAPACITY

ŞİŞECAM TOUCHES EVERY ASPECT OF LIFE IN THE BUSINESS LINES OF FLAT GLASS, GLASSWARE, GLASS PACKAGING, CHEMICALS AND AUTOMOTIVE IN MORE THAN 150 COUNTRIES.

14
COUNTRİES
45
Production Facilities
5,6
million tons
Glass Production
2,3
million tons
Soda Production
4,2
million tons
Industrial Raw Material Production

2021 IN NUMBERS

SALES TO MORE THAN 150 COUNTRIES
TRY 19.2 BILLION INTERNATIONAL SALES

DOMESTIC-INTERNATIONAL DISTRIBUTION OF SALES

TURKEY-INTERNATIONAL DISTRIBUTION OF SALES

CHAIRMAN’S MESSAGE

Interview With Prof. Dr. Ahmet Kırman

Şişecam Chairman of the Board of Directors and General Manager Prof. Dr. Ahmet Kırman answers the curious questions.

Question

How was 2021 in terms of Şişecam's financial performance?

Question

In 2021 you experienced the results of the merger, what advantages emerged by the merger and the new structure?

Question

What were the most significant developments of the year for Şişecam in 2021?

Question

Can you tell us about Şişecam’s global growth vision?

Question

Can you tell us about comprehensive and effective risk management, including the supply chain, of an organization with operations on four continents and in 14 countries?

Question

Where is Şişecam currently in its comprehensive
digital transformation process for its whole structure?

Question

What does sustainability mean for Şişecam? what is at the center of Şişecam’s 2030 sustainability strategy?

Question

What kind of year will 2022 be for Şişecam?

Question

What are your future growth targets in line with the many organic and inorganic investment decisions announced last year?

Question

What does R&D mean for Şişecam's future vision? What are your current R&D projects?

ŞİŞECAM FLAT GLASS

EUROPE’S 1ST WORLD’S 5TH
LARGEST FLAT GLASS PRODUCER

Şişecam operates with 45 facilities in 14 countries in the fields of flat glass, glass household appliances, glass packaging, chemicals and automotive business lines.

AN OVERVIEW OF 2021

The Covid-19 pandemic affecting the whole world for the last two years, supply problems in different sectors on a global scale and increasing production costs, as well as the sudden and high demand increases experienced with the removal of pandemic restrictions have led to the growth of the flat glass market globally. By adapting to the rapidly changing market conditions and developing proactive approaches, the demand was met at the maximum level as per capacities both in the markets with local production and in nearby geographies, and the high sales performance was maintained increasingly.

While the construction sector, one of the main sectors in which flat glass is consumed in Turkey, is expected to close the year without growth despite the signs of recovery in the first half of 2021, the construction materials industry is estimated to grow by 20% due to the increase in domestic consumption and export demands. In addition, with Turkey’s new position as an alternative supplier of construction materials, exports in the processed glass industry increased by 42% and its share in Turkey’s flat glass consumption rose to 15%. Apart from construction materials, the high flat glass demand seen in the automotive, white goods, and furniture industries was met at an optimum level thanks to commissioning two flat glass lines that were in cold repair during the year.

In Europe, which has entered economic recovery after the pandemic, there is an expectation of 5% growth in 2021. In Europe, which is one of the most important global flat glass consumption geographies, significant increases were recorded in demands and, accordingly, sales prices.

Likewise, with the effect of the increase in energy and oil prices in Russia, the Russian economy is expected to close 2021 with a significant growth rate of 4.3%. In the country, there was a significant increase in demand, especially in the architectural glass sector, and a high increase in sales prices was observed.

The post-pandemic economic recovery process has continued in the Middle East and Africa Region as well.

The impacts of the pandemic continued in India in 2021, however, there was an economic recovery and an increase in demand. Demographically, the country’s a high consumption potential and tendency towards value-added products is an indication that the market will promise high growth in the future.

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Şişecam Flat Glass Sales Revenues

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ŞİŞECAM GLASSWARE

EUROPE’S AND THE WORLD’S 2ND
LARGEST GLASSWARE MANUFACTURER

Şişecam operates with 45 facilities in 14 countries in the fields of flat glass, glass household appliances, glass packaging, chemicals and automotive business lines.

AN OVERVIEW OF 2021

The Covid-19 pandemic continued to affect the entire world in 2021. Supply chain disruptions were experienced worldwide due to the ongoing pandemic. While the blow to the global supply chain impacted all sectors, Şişecam saw demand grow in its glassware business thanks to its wide product range, effective sales network, and strong infrastructure. As always, Şişecam recorded sustainable profit with its customer satisfaction and digitaloriented communication approach and effective pricing strategies.

During the year, Şişecam carried out new product launches, various digital and traditional communication activities, and R&D studies aimed at target groups. With its globalization approach at the forefront, Şişecam participated in the Milan Fair – one of the world’s largest HoReCa fairs. Showcasing its Nude and Paşabahçe brands, Şişecam met industry professionals in-person for the first time since the onset of the pandemic at this fair

Due to normalization steps, demand in the home segment, which has remained strong since 2020, was supported by robust demand from the catering and B2B channels in 2021. This dynamic resulted in a rapid increase in sales. In the glass product group, sales jumped by 12% on a tonnage basis and by 52% on a TRY basis. With the right methods and strategies, normalization proceeded in a strong, stable, and sustainable manner.

ACHIEVEMENTS IN 2021

Şişecam successfully exited 2021 with its focus on operational excellence and lean business processes while moving forward with its digitalization efforts. By ramping up its digital transformation, Şişecam aims to manage its glassware operations more efficiently, quickly, and with higher quality output. In a prime example of digital transformation, the Tuzla Showroom was transferred to the digital environment and opened for customer use, generating great interest.

Şişecam Glassware continued efforts to improve its distribution capabilities in target markets with supply chain improvements in 2021. With these improvements, Şişecam aims to enhance brand loyalty in Turkey and globally. Effective strategies related to key customer management and focused on sales and operational planning enable Şişecam to achieve an optimal balance of production, sales and inventory. In 2021, Şişecam began to see positive results of its operational efficiency and simplification efforts. The company expanded the share of upper segment and profitable products in the current portfolio. Thanks to this modification, the upper segment accounted for a larger share of total sales with a positive impact on overall profitability.

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Şişecam Glassware Sales Revenues

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ŞİŞECAM GLASS PACKAGING

EUROPE’S AND THE WORLD’S 5TH
LARGEST GLASS PACKAGING MANUFACTURER

Şişecam operates with 45 facilities in 14 countries in the fields of flat glass, glass household appliances, glass packaging, chemicals and automotive business lines.

AN OVERVIEW OF 2021

In 2021, the global economy rebounded as a result of growing vaccination rates around the world, emerging less virulent variants of coronavirus, and ongoing stimulative measures taken by national governments. However, rapidly rising demand caused disruptions in supply chains and increased logistics costs to record levels. With longer lead times and higher logistics costs, glass packaging manufacturers focused on supply continuity.

Growing health/hygiene awareness and rising household consumption boosted demand for glass packaging across all sectors, especially the food sector. Glass packaging consumption jumped in the alcoholic beverage, soft drink-fruit juice and bottled water sectors with the recovery of the HoReCa (hotel-restaurantcatering) channel which was greatly affected during the pandemic.

Industry players focused on product weight lightening projects in addition to operational excellence and efficiency efforts in order to achieve sustainable profitability levels and offset higher energy and input prices. Investments in digitalization and sustainability, increasingly critical areas in the glass packaging industry, continued their rapid pace.

The Russian glass packaging market, after steadily contracting for years due to the government push to reduce alcohol consumption until 2018, has finally been displaying signs of recovery since 2019. In 2021, alcoholic beverage consumption rose for the first time in years. Household consumption grew despite the contraction in the HoReCa channel during the pandemic period of 2020-2021. As a result, the total glass packaging market remained at similar levels as 2019 in terms of volume. In alcoholic beverage consumption, beverages containing low alcohol content are still trending upward. Although production of alcoholic beverages is similar in all subsectors, the wine and champagne sub-sectors contracted due to the ban imposed by the government on the bottling of wines and champagnes coming from abroad. With higher prices for aluminum in 2021, demand for glass packaging expanded during the year.

In 2021, the Turkish glass packaging market experienced some negativities in parallel with downside developments in the economy, tourism and key sectors, mostly due to the pandemic. However, the market was positively affected by other factors, such as growing hygiene awareness and the expanding trend towards packaged and healthy food.

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Şişecam Glass Packaging Sales Revenues (TRY million)

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ŞİŞECAM CHEMICALS

EUROPE’S 4TH WORLD’S 2ND
LARGEST PRODUCER OF SODA(*)

Şişecam operates with 45 facilities in 14 countries in the fields of flat glass, glass household appliances, glass packaging, chemicals and automotive business lines..

AN OVERVIEW OF 2021

Şişecam Chemicals stood out among the competition thanks to its sustainability-centered focus on production, quality and sales stability in 2021. Şişecam has demonstrated a steady performance in its chemicals business even from the start of the impacts of the Covid-19 pandemic in March 2020. Soda-ChromiumOxyvit products were exported to more than 100 countries and some 700 companies worldwide.

Developments in the Soda Sector

2021 started with down trending soda contract prices, as the case with many commodities due to the negative conditions caused by the ongoing pandemic.

With the spread of mass vaccination programs, demand in the soda ash markets rebounded as of the second half of 2021. A rapid recovery was recorded in the flat glass sector, especially with the positive impact of solar glass investments.

There has also been a rapid increase in demand in the glass packaging sector with the improvement in tourism, which is the sector that has been most affected by closures under COVID-19 measures, and the lifting of bans in countries that have banned alcohol as a precaution.

Large scale investments in the lithium sector, especially in South America, also boosted demand for soda ash.

During the general recovery and normalization that started with the second year of the Covid-19 pandemic, energy costs rose to record-breaking levels globally, especially in China and Europe. In addition to rising energy costs in Europe, taxes on CO2 emissions created an additional cost burden for the industrial sector.

With the impact of growing energy costs coupled with decreasing production and falling stock levels due to the energy quotas that came into effect in China in the second half of the year, spot soda ash prices in the Chinese domestic market jumped to record highs. Logistical issues – such as high freight costs, equipment shortages, and space constraints – adversely affected the supply chain. The soda sector experienced a global supply crunch due to the mass withdrawal of Chinese producers from export markets and ongoing logistical problems. With the impact of the slowdown in liquid detergent demand, powder detergent usage and soda demand are expanding significantly.

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Şişecam Chemicals Sales Revenues

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ŞİŞECAM AUTOMOTIVE

EUROPE’S 4TH WORLD’S 8TH
LARGEST AUTO GLASS MANUFACTURER

Şişecam operates with 45 facilities in 14 countries in the fields of flat glass, glass household appliances, glass packaging, chemicals and automotive business lines..

AN OVERVIEW OF 2021

2021 was a challenging year for the automotive industry. The negative impacts of declining vehicle production due to problems in the supply chain and worsening economic conditions persisted throughout the year. Meanwhile, the effects of the pandemic were constantly felt with more intensity. During this volatile year, Şişecam Automotive focused on digitalization, Industry 4.0 migration studies, new product development efforts, simplification of quality management, and supply chain improvements

The negative impacts of the Covid-19 pandemic squeezed the automotive industry both in Turkey and Europe. In 2021, the sector turned its focus toward optimizing production fluctuations by constantly monitoring developments in the supply chain and making rapid decisions. Being able to respond quickly to changes and act with flexibility is currently the top priority for all stakeholders in the industry.

PRODUCT DEVELOPMENT

After heatable coated windshields went into mass production in 2020, development work moved forward at an accelerated rate. Mass production of HUD featured windshields, whose customer approval processes were completed in 2021, is scheduled to commence in 2022. Further development studies are underway for the HUD featured windshields and AR-HUD featured windshields

Development of antenna systems integrated into the rear glass and partnerships and feasibility studies to become a service provider gained momentum in 2021. In parallel with meetings held with customers and suppliers, Şişecam Automotive will present solutions that include emerging technologies. Serving as a service provider for identified solutions will enable automotive glass production capabilities, as well as help achieving the goal of being a technological solution partner.

During the year, Şişecam Automotive improved and supported its relations with public institutions in the defense industry, which it supplies, with new technologies. In addition to the existing product portfolio, Şişecam Automotive plans to further boost development in the sector with R&D studies

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Automotive Glass Sales Revenues

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