Türkiye Sise Ve Cam Fabrikalari A.S. (SISE) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Sisecam's Investor and Analyst Call for the first half of 2026 Results Call on the 17th of August 2026. [Operator Instructions]. Today's call will feature our presentation by the management team followed by a question-and-answer session. Without further ado, I would like to pass the line to the CEO of Sisecam, Mr. Can Yucel. Please go ahead, sir.

Hello, ladies and gentlemen, welcome to our earnings presentation for the first half of the year 2026, and I am very pleased to meet you all again to share our operational and financial results. Today, I'm together with our CFO, Gokhan Guralp and our Investor Relations Director, Hande Özbörçek. Now I would like to hand over to our CFO, Mr. Guralp for the presentation. and the review of our first half consolidated results. Gokhan, please?

Thank you very much, Mr. Yucel. Good day, ladies and gentlemen, and welcome to our webcast audio call. I hope that everyone is safe since we last spoke, and I would like to thank you all for joining us today. We will commence today's webcast by presenting our financial and operational results for the first half of 2026 with particular focus on the performance of our 4 business lines. Subsequently, we will detail our cash position and capital allocation. Following the review of operational and financial results, we will conclude today's presentation by updating you on our company's sustainability journey. As always, we will be pleased to take your questions at the end of the presentation. Please be reminded that the presentation and Q&A session may but contain some forward-looking statements. Our assumptions and projections are based on the current environment and may therefore be subject to change. Before we begin our financial review, let me briefly remark you that in line with regulatory requirements, Turkish companies, including Sisecam, continue to prepare their financial statements under IAS 29 inflationary accounting. Therefore, the first half 2026 financial results together with the comparative figures for 2025 are presented in accordance with Turkish Financial Reporting Standards and expressed in terms of the purchasing power of the Turkish lira as of June 30, 2026. As in previous periods, we have also reserved certain key financial indicators on pre-IAS 29 basis at the end of the operational and financial review section. This set of info has already been provided to our main shareholder as financial institutions are exempted from the implementation of IAS 29 standards. We concluded the reporting period with a consolidated revenue of TRY 122 million, down by 8% year-on-year. Revenue performance continued to be affected by a mismatch between the domestic inflation rate and the depreciation of TRY against the [indiscernible] currency basket. During the period, annual inflation stood at 32%, while the reporting currency depreciated by 16% against the hard currency basket, limiting its translation of our international operations into [indiscernible] revenue growth. In addition, performance varied across our business lines, infecting different market dynamics and conditions across our diversified portfolio. Core business lines sales performances were maintained by Architectural Glass and Chemicals operations offsetting softer track in Glassware and Glass Packaging. Product pricing improvements were visible across all Glass businesses and geographies in USD, but pricing in our [ shortage ] underperform the prior year, primarily reflecting persistent global oversupply conditions. Throughout the first half, geopolitical developments, particularly in the Middle East led to heightened volatility in energy markets, while inflationary pressures continue to impact production cost and consumer confidence across several regions. These challenges were not unique to our company. Across the global glass and material sectors, companies continue to operate in an environment recognized by weaker industrial demand, elevated energy market volatility and ongoing geopolitical uncertainty. At Sisecam, we maintained disciplined pricing, agile production planning and strict cost control measures, [indiscernible] with the growing contribution of value-added Architectural Glass products and efficiencies attained through ongoing initiatives, particularly in Industrial Glass business line, these actions enabled us to preserve a healthy gross profitability profile and deliver a gross margin of 27%. OpEx to sales ratio came in a 21% higher year-on-year, but growth was flat compared to the first quarter of 2026. The Increase versus the prior year mainly reflected lower product [indiscernible] in Chemicals operations higher logistic costs, primarily visible in the Glassware and chemicals operations associated with energy market volatility and elevated general and administrative expense in an inflationary environment. Nevertheless, the change in consolidated OpEx to sales was kept under [indiscernible] on a quarter-on-quarter basis, thanks to the benefits of ongoing efficiency initiatives and cost optimization measures. While the benefits are still emerging gradually, the actions implemented under the efficiency management and cost control program continue to transport operational flexibility, cost discipline and profitability across our portfolio. Our EBITDA recorded at TRY 3.7 billion, translated into a margin 3% compared to 13% in the prior year. The year-on-year decline mainly reflects the [indiscernible] of last year, [indiscernible] study on our investment portfolio results in a TRY 2.4 million revaluation gain supported by fair value increase exceeding inflation following a change in the [indiscernible]. This year, the effect most in the opposite direction. We recognized TRY 3.5 billion impairment loss in connection with the sale of our [indiscernible] investment [indiscernible]. Additionally determination of starting [indiscernible] project and the discontinuation of the partnership with [indiscernible] Global netted booking of TRY 1.2 billion in total as investment expense. On top of this, half year as [indiscernible] studies show the remaining investment property portfolio and [indiscernible] equipment has not kept pace with inflation resulting in a further revaluation loss of TRY 2.8 billion. These non-recurring items had a total negative effect of, TRY 7.4 million on our EBITDA, leading to more than 610 basis points dilution on our EBITDA margin. Under inflation accounting, the book value of investment of purchase is first index for inflation, [indiscernible] base value comes below this inflation in next sharing value, this difference is recovered a revolution loss. At the same time, as the balance sheet values are best based on the basel value, the inflation index adjustment created a monetary gain, which partly offset the impact of these noncash valuation loss on the income statement. This outcome results consistent with broad advance in the Turkish real estate market. According to residential [indiscernible] index data, residential [indiscernible] prices continue to rise in nominal terms in 2024, 2025 and as of June 2026, but remained negative in real terms. The real decline was 10.4% in December '24 lowered to 1.4% in '25 and rising again to 5.8% as of June '26. That's what the primarily -- the EBITDA decline as the result of not operational and not [indiscernible] investment or valuation [indiscernible] rather than a deterioration in the underlying profitability of our core operations. At the same time, while market conditions remained challenging across several of our businesses, indicators that [indiscernible], including portfolio quality value-added product penetration, operational efficiency and customer diversification continues to develop in the direction during the first half. Parent Only net income was flat at TRY 5.4 million with 4% margin, thanks to nearly TRY 12 million lower net financing expenses, supported by distinct liquidity management, funding optimization measures and enhanced returns generated on cash balances. TRY 17 million recorded as [indiscernible] gains, up by 11% year-on-year, also supported the earnings. On Slide 5, we would like to demonstrate the underlying performance of our [indiscernible] excluding the impact of inflation accounting. As you are aware, for this purpose, we use adjusted EBITDA, which is defined as EBITDA adjusted for the effects of inflation accounting through the elimination of monthly gain/loss impact on P&L items. As can be seen, the cumulative impact of inflation accounting on the relevant P&L lines amounted to TRY 13.4 million, largely attributable to cost of good sold and investment activities. With the measures of our industrial capacities located in Turkiye and operating in high evasion environment, the impact of on cost is inevitable. This is reflected in higher direct [indiscernible] expenses and elevated production overheads. Inflation accounting also inflates inventory values. As define in the impact on cost, while initially high inventory turnover of our business further increases the effect of cost of goods sold. In addition to these operational impacts, this reporting period also included significant noncash valuation effects related to our investment property portfolio. Revaluation and impairment losses recorded on noncore assets reduced reported profitability. As discussed on the previous slide, under the IAS 29 framework, the revaluation loss also came with additional [indiscernible] gains in the income statement. Accordingly, adjusted EBITDA calculation indicated a consolidated profitability figure amounted to TRY 70.1 million and translated into a 14% adjusted EBITDA margin. Yes, we fully recognize that the current profitability level doesn't reflect the earnings potential of our diversified asset base, market positions and global [indiscernible]. Accordingly, improving returns, strengthening, cash generation and enhancing profitability remains of our top management priorities. We believe recently commissioned capacity, portfolio optimization initiatives and efficiency measures will act as solid basis of improving profitability and cash generation over time. Moving on to the next slide. Once again, in the reporting period, our operations portfolio maintained a well balance structure with Glass Operations accounting for 2/3 of consolidated [indiscernible]. Architectural Glass our largest glass operation operated with 5.1 million tonnes per annum gross led glass production capacity in Turkey and Bulgaria, Italy, India and Russia as well as one line in Egypt in partnership with Saint-Gobain. The [indiscernible] contributed 26% to consolidated revenue and remained the largest EBITDA contributed with 55% share. Profitability was supported by a more favorable pricing environment, improving demand for energy-efficient glass solutions and the increasing contribution of value-added products. Regulatory trends promoting higher energy efficiencies [indiscernible] building also continued to support long-term margin. The commissioning of new coated glass line in Italy, Bulgaria and Turkey, together with the ramp-up of our [indiscernible] investments further strengthened our value-added product portfolio. The contribution of the new set flat glass furnace, coated glass capacities, [indiscernible] glass furnace and solar glass processing line supported but operational efficiency and product mix improvement across the business line. Of the 3.5 million tonnes per annum plus [indiscernible] line with its 2609 furnaces at production facilities and in all countries, including Hungary remains the second largest contributor to our consolidated performance. The business line accounted for 23% of consolidated revenue and 33% of EBITDA during the reporting period. As previously announced, we commissioned our 100 greenfield investment at the beginning of 2026, marking an important milestone in the expansion of our European footprint. The facility is currently progressing through its test production. Therefore, we expect the benefits of these investments to gradually materialize as this operation becomes fully integrated into our commercial network. Chemicals operations [indiscernible] accounting for 21% of revenue. The business lines sharing EBITDA came in at 7%. Despite persistent global oversupply conditions in the soda ash market, [indiscernible] and strategic position in natural soda ash to mitigates the impact of market conditions. Industrial Glass business line, which accounted for 13% of consolidated revenue continued its profitability recovery and contributed 18% of consolidated EBITDA during the reporting period. The benefits of operational efficiency measures in Europe and in Turkey, portfolio optimization initiatives and greater focus on value creation continue to support the segment's earnings profile. From our Glassware operation with [indiscernible] tonnes per annual gross capacity we generate 11% of our consolidated revenue. However, the business line had a dilutive effect on EBITDA given the unfavorable demand trend. Energy segment's performance was primarily driven by our electricity trading activities accounted for 4% of consolidated revenue. This segment had a limited contribution to consolidated EBITDA reflecting softening spot pricing environment given the composition of electricity resources. On the next 2 slides, we aim to present the key takeaways regarding the first half performance of our core business lines on an individual basis. Provide you with concise summary of our glass and chemical unit's performance in conversion with the prior year from a operational financial perspective. Architectural Glass. Architectural Glass business line generated TRY 31 million net external revenue moving up by slightly more than the inflation rate, reflecting a [indiscernible] performance despite continued macroeconomic uncertainties, tight financing conditions and ongoing geopolitical conflicts. EBITDA margin stood at 17%, down by nearly 210 basis points year-on-year. The business line benefited from increased production capacity following ignition of North Italy furnace and the commissioning of new flat large furnace in Turkish. Even beyond the capacity contribution, these investments enhance operational flexibility [indiscernible] our various product portfolio, particularly in coated and energy-efficient glass applications. The commissioning of coated glass and energy glass investments further, [indiscernible] our ability to serve low demand in higher value-add applications in Turkey and Europe. Production performance remained strong with 8% growth year-on-year despite ongoing cost repair activities at certain facilities. Even during the ramp up phase of near commission capacity and the enlarged production base active capacity utilization rate kept [indiscernible] at 87%. Demand conditions remain mixed throughout the period. In Turkiye, the organization and renovation activities continue to support demand while value-added products further strengthen the sales [indiscernible]. Solar glass emerged as one of the key growth drivers during the period, supported by the new capacities that we commissioned back in September 2025 as well as -- while the market continues to expand, we delivered substantially stronger growth through deeper market penetration and import substitution. Result of this, we increased our market share in this product for last year's 16% level to 40% in the reporting period, leveraging our scale, operational reliability and integrated manufacturing capabilities, we continue to strengthen our role in shaping the regional ecosystem and creating a more resilient loan supply base. Coated glass products delivered a higher contribution particularly in value charts, reflecting increasing demand for energy-efficiency [indiscernible] solutions. This trend is also consistent with the increasing regulatory and industry focus on building energy efficiency in this region. Export markets remain competitive, particularly in regions affected by geopolitical developments, increasing contributions from Europe and Asia Pacific has offset softer demand in certain Middle Eastern markets, demonstrating the benefits of our diversified commercial footprint. Combined with the performance of direct exports, overall sales volume of Turkiye-based facilities grew by 5% year-on-year. In Europe, market conditions remain selective amid a cautious customer purchasing behavior and subdued construction activity. Against this backdrop, we continue to provide such value-added products and customer portfolio management. Recent coated glass investments in Europe moved up this year of coated products in our European sales mix by around 450 bps in volume and close to 600 bps in the new terms. Meanwhile, market dynamics in India and Russia remained mixed throughout the period. As a result, consolidated sales volume was flat year-on-year, yet despite mixed market conditions across regions, our average standard product glass increased by 18% in USD thanks to rising continued growth in various products, expanded production capabilities and a diversified commercial footprint. Industrial Glass. Our Industrial Glass business line consisting of automotive glass, encapsulation and glass fiber operations generated TRY 16 billion of net external revenue during the first half of 2026. EBITDA margin came in at 12% compared to minus 3% in the prior year, thanks to ongoing operational efficiency initiatives and product mix. Auto glass sales volumes evolved broadly in line with OEM production schedules and a rich product mix, partially offsetting [indiscernible] sales under performance as opposed to low double-digit decrease in unit sales. The increasing contribution of heavier and more sophisticated products help mitigate volume related ratios and support value creation. The auto [indiscernible] glass channel remains another important pillar of platforms. It's recurring demand profile and customer base continued to grow stability and partially offset softer OEM [indiscernible] period. Glassware. Glassware laser business line generated TRY 14 billion net external revenue, operating in a market in characterized but cautious consumer spending, elevated geologic uncertainties and softer demand across markets. Half of the business line revenue results from international operations. The business line has recorded minus [ 10% ] EBITDA margin. Consolidated sales volume was down by 5%, yet flat sales on a unit basis reflected our continued focus on sales mix management and higher value-added products. In Turkiye, domestic performance remained competitively strong, near [indiscernible] chain stores, wholesale retailer channels and the B2B segment all contributed positively, supporting volume growth and further strengthen our market position. According to third-party market data, the business of the underlying market growth but 700 bps through effective commercial execution and strong brand equity, with this, our market share moved up by 400 bps to 70% in unit terms. International market presents an all mixed picture. While demand was influenced by elevated customer inventories, low-cost imports and geopolitical uncertainties in certain regions, we continue to strengthen our position in select European markets. The [indiscernible] channel and [indiscernible] premium segment delivered a positive contribution while our ongoing focus on higher value-added products supported commercial performance across international operations. Pricing actions were implemented in line with regional market conditions and cost development, supported by price adjustments introduced since 2025 and a favorable sales mix average consolidated [indiscernible] increased but 3% year-on-year. Glass Packaging. Glass Packaging business line generated TRY 28 billion net external revenue compared to TRY 29 billion in the prior year. Despite softer demand conditions across several end markets, pricing remained supportive throughout this period have been offset volume weakness and reflecting our disciplined commercial approach. EBITDA margin stood at 12%, down by close to 320 bps year-on-year. During the first half, production was impacted by planned [indiscernible] activities in Turkiye and cost optimization efforts in the CIS region. Consolidated outlook was down by 6% year-on-year. Despite these temporary operational constraints, we maintained our capacity utilization levels across the network at 90% while continuing to align production with market conditions. Demand trends were mixed throughout the period in Turkiye thanks to [indiscernible] pillar and [indiscernible] motor producers were supportive, while certain alcoholic beverages categories remain muted. Export performance was strong based by geographical diversification, market share gains in Europe and a broader customer portfolio as commissioning activities at our Hungary facility progress, we continue to strengthen customer relationships and commercial presence in Europe helping offset vehicle demand in certain middle eastern markets. Market conditions were challenging throughout the first half of -- in the CIS region. In Russia, weaker consumer sentiment, helped deliver price increases and softer demand in alcoholic beverage categories continue to be the factors affecting the construction. Meanwhile, our Georgia operations delivered a strong performance, partially offsetting the limited momentum in the region. As a result, consolidated sales declined by 4% year-on-year. Nevertheless, disciplined pricing actions, favorable product mix and currency effects supported pricing performance, leading to a 11% increase in average price per tonne in U.S. Chemicals. Chemicals segment generated TRY [ 26 million ] net external revenue amid the continued pressure across global chemicals markets. EBITDA margin stood at 3% versus 14% in the first half of 2025. In soda chemicals, challenging market conditions existed throughout the reporting period. Global supply continued to increase following new soda ash and sodium bi-carbonade capacity additions in China, while demand recovery across several key end markets remain selective. As a result, [indiscernible] environment continued to move [indiscernible] weaker trend. Despite this on top of geopolitical complex, we maintained a solid sale performance supported by customer acquisitions, strong domestic demand and the flexibility provided by our geographically diversified production and sales network. Plant maintenance activities and capital operational disruptions experienced during the period at a low single-digit impact on the consolidated output to our diversified manufacturing [indiscernible]. Commercial execution remained strong throughout the period. Domestic soda ash sales increased significantly with higher deliveries to local customers as well as strategic reallocation of some clients from Turkiye-based operations to Europe-based -- European zone-based facilities in response to the implementation of the ETS supporting competitiveness across export markets. As a result, consolidated soda ash sales volume remained broadly stable despite challenging global market conditions. In Chromium Chemicals. Demand conditions remained weak throughout the first half, particularly in [indiscernible] applications, heavy competition persisted across several land markets. Despite lower sales volumes, pricing performance continued to benefit from cost pass through initiatives in addition to active product risk management. As a result, consolidated Chemical sales performance was slightly down on a year-on-year bases [indiscernible] net soda ash sales declined by 8% on average in USD. In Chromium Chemicals, average price increased by 6% compared to the same period last year, supported by [indiscernible] price actions and commercial execution. Moving on to Slide 9 with our production facilities located in [indiscernible] and 12 countries diversified operations portfolio and a broad product offering, we continue to share our customers across the globe. Despite the significant challenges caused by the disparity between TRY inflation and currency depreciation, international sales accounted for 51% of consolidated top line. Export revenues reached USD 464 million, of which 62% was generated from product shift to Europe. Including revenues generated by our European production facilities, the region accounted for 32% of consolidated revenue and remains our largest non-turkey end market. U.S. market exposure to sales from U.S. natural soda ash operations as well as exports stood at 11%. Accordingly, our developed market exposure came at 43%. On Slide 10, you may see the details on our liquidity position. We ended the reporting period with USD 608 million cash and cash equivalents, including USD 144 million financial assets of which USD 59 million [indiscernible] investment we mentioned this year. Gross debt stood at USD 3.7 billion with a term structure of 79% long term and 21% short term. 89% of the gross debt was denominated in hard currency and 96% of the remaining balance was in TRY. The interest rate structure comprised of 69% fixed to 31% variable. The hard currency share of cash and cash equivalent, excluding financial investments stood at 45%, resulting in -- our net debt position amounted to USD 3.1 billion, as a result, our net leverage ratio came in at 9.6x and monthly gain loss adjusted EBITDA figure indicates a net [indiscernible] ratio 3.9x. While leverage metrics remain elevated, the deleveraging and balance sheet strengthening remain key priorities going forward. We also continue to assess opportunities regarding noncore assets as part of our broader capital allocation and balance sheet management framework. We had a net long FX position of TRY 17 billion with TRY 578 million long in USD and EUR 160 million short in Europe. Moving into the Slide 11. Our CapEx recorded at TRY 12 billion was 38% lower than the account balance in the prior year. Our capital expenditure amounts to USD 270 million based on a period [indiscernible] close to the half of the outflow recorded in the same period of the prior year. The distribution of CapEx across business lines was as follows: 41% of total CapEx was attributable to our Architectural Glass segment, mainly in relation with the cash outflow on the newly commissioned investments as well as Coated Glass line was -- that is being constructed in India. Capital expenditures with regard to the greenfield Glass Packaging investments in Hungary, the commissioning of which was announced in the first quarter of this year and aims we made in relation with [indiscernible] repair process in Turkiye correspond to 36% of the total. Chemical segment accounted for 6% of consolidated CapEx figure with payments mainly related to operational efficiency and maintenance investments in [indiscernible]. The remaining balance was mainly related to other segments under which Sisecam efficiency enhancement investment, digitalization and R&D projects were booked. Sustainability-focused renewable energy investments carried out across the group as part of 2030 sustainability [indiscernible] were also booked under this segment. We are in a reporting period, we take cash outflow from operating activities of TRY 2.2 billion increase in working capital in connection with the ramp-up of newly commissioned facilities leading to higher inventory and the adjustments stemming from the sale of noncore, including [indiscernible], including the monetary loss on cash and cash equivalents recorded a negative free cash flow, TRY 28 million versus TRY 26 million in the prior year. Including cash collected from the land sale, free cash flow had a negative balance of TRY 200 million. Going forward, with the completion of most major expansion projects, investment-related cash outflows are expected to be moderate compared to previous periods. Working capital optimization remains a key focus area. Inventory levels associated with newly commission facilities are expected to gradually normalize as ramp-up process progress. On Slide 12, you may see our key financials without the impact of IAS 29 as provided to our main shareholders for their consolidation purchase as announced on the PTP for the information [indiscernible]. In the following section, we will update you on our sustainability journey. We have punished our second TCRS, the compliance sustainability report prepared in accordance with Turkiye Sustainability reporting standards issued by [indiscernible] accounting and auditing standards authority. In this report, we provide a comprehensive overview of our sustainable governance framework, our resilience to climate exchange and risks and opportunities arising from the business -- from our business model. We also present detailed information on our risk management at both corporate governance practices related to sustainability and the role of our product portfolio in managing the impact of climate change. The Turkish and English versions of our 2025 TCRS compliance sustainment report are available at sustainables.sisecam.com. As a separate note, on June 17, 2026, we met with sustainable-focused investors across the 3 separate sessions as a part of Barclays Emerging Market Corporate 2026 event. During the meetings attended by representatives from Sisecam's Sustainability and Investor Relations team, to provide insight into Sisecam's sustainable strategic [indiscernible] journey, targets and the progress made towards achieving this goal [indiscernible] share. Update on our ESG performance provided, investors questions were addressed, and comprehensive overview of our ongoing sustainability initiatives was offered. In line with the transparency and equal information sharing principle, presentation used during these meetings, but also made available on our website. Finally, the 14th Sisecam International Glass Conference was held in Istanbul this year, bringing together leading representatives of the glass industry, academia and technology experts. Organized under the -- under the team in order to innovate a future focused transformation of energy and glass, the event addressed key topics at the helm of the industry transformation, including decarbonization and energy efficiency and digitalization. The conference share. [indiscernible].

Now we are ready to get your questions. Let's start to the Q&A session.

[Operator Instructions] Our first question comes from Cemal Demirtas from Ata Yatirim.

My question is very much related to the outlook in the second half of the year. We see that the margins are still under pressure and it's one of the lowest levels we have seen. So what should be the catalyst in the second half of the year? Or is it early to expect any catalyst in the second half of the year to see some recovery in your -- the operating performance? That's my first question. And the second question is about the impact of this corporate tax cuts is starting by 2027 from 25% to 12.5% for the production operations in Turkey. I see that your net deferred tax asset allocation. But of course, it includes all international patients. My question is, what was your net deferred tax asset or liable to position in Turkey operations? And what was the impact of that the change in statutory tax rates on your tax position or like effective tax rate?

Thank you very much for the questions. We'll start with the first one and give a brief explanation on the second question, Gokhan will provide details more on that one. Starting with the first one, yes, it's been a challenging period first half of year, especially in the second quarter because of the change in the environment and the current tension is clearly impacting our cost base [indiscernible] which we see at the [indiscernible] side is kind of the levels and necessary price increases are currently being accepted by the market. So we will see improvements there in the second half of the year. And also, we will be seeing the support coming from our new facilities. As you know, we made our new lines operational starting from February 2026 and related [indiscernible] at the end of the first half of the year, then they are all completing their ramp-up period which we clearly see, especially [indiscernible] side, we will see their contribution in the following half of the year. And the last one is as per the other glass manufacturers globally, the Chinese competition is clearly affecting us as well, just like the other glass manufacturers, and we are taking all necessary measures on that side, especially through regulatory authorities on export restrictions. And now we actually improved or get the results that we expected, especially on the Turkey side, you will see its impact in the following half of the year as well. And going back to our deferred tax asset, yes, there is a change in the regulation, and it clearly affected us in the meantime. Our effective taxation [indiscernible] ratio was all the time over and the existing ratios due to our incentives and and the current regulation affected us on that. We expect to close [indiscernible]. And I can clearly say we will see improved on that amount in the following half of the year to the completion of the [indiscernible] and also through other means in the meantime. Gokhan, maybe you can comment on...

Just Cemal also the Turkish part of the deferred tax side. If you look at the disclosure of 31 in the report, you can see directly the impact of Turkish side easily because because of the inflationary accounting allocation accreting here in Turkey, deferred tax liability -- and with the tax rate decrease, the liability part calculated from temporary differences decreased. That's why we benefited from the tax rate decrease in Turkey in terms of tax asset and we already write that, account that deferred tax income from this part. And also the main items in the disclosure are coming from Turkey. The other regions, they do not create such material differences. That's why you can see directly the impact of deferred tax especially the tax rate change in line with vis-a-vis with the decrease of especially [indiscernible] equipment and on the [indiscernible] investment for [indiscernible] and also with the return pay liability side.

Okay. It's clear from my side now. And one last question is about the EBITDA margin in the Glassware, Energy and Others are all in negative territory. And should we expect at this apart from the main operations, should we expect some recovery on those from the [indiscernible] Energy or even the Glassware site?

Actually on the business side that you mentioned as we [indiscernible] all the time, we're all committed to provide positive margins on both sides. And -- and I decided it is very evident that the current market conditions is adversely affecting our performance, which we will be [indiscernible] very soon. And on the Glassware site, it is [indiscernible], which is the trademark of Sisecam and we are creating strategies to get back to at least expected margins on that side as well, and we're trying to at least redefine the business to be online as usual.

Our next question comes from [ Evgenia DeSilva ] from Barclays.

I have a few questions. I'll start with question about liquidity and free cash flow. What is your expectation for the free cash flow for the second half of the year? And where do you see the free cash flow may be for the full year in 2026, given there was a significant cash burn in the first half of the year? And what are the maybe additional sources of liquidity that you can tap into? I know you have a portfolio of assets that you can potentially monetize. Could you please remind what is the size of the portfolio, maybe do you have any maybe comments on the timing of those asset disposals, et cetera? And my second question is about the Chemicals segment. In terms of like the margin decline, what would you say is the percentage point impact of weaker prices or weakness in pricing? And what is the impact of maybe cost pressures? And also, obviously, you mentioned that Southeast Asia is the most affected region given the Chinese oversupply. But what is going on with prices in other regions? Any color on that would be helpful. And also finally on Chemicals. Could you please elaborate on the operating issues in Wyoming operations? Did they happen, I think more specifically on the transmission line outage. Did it happen in Q2 or in Q1?

Again, thank you very much for your questions. For the liquidity side, this year is a period where Sisecam has completed all ongoing investments of the Coated lines of [indiscernible] facility in Hungary and also some other minor investments has been fully completed. Therefore, this is a year where we use our cash the most. And on top of it, the overall global economy is providing more muted margin [indiscernible] and cash liquidity is our top priority all the time. And we're always trying to make [indiscernible] cash as we do often. And as you mentioned, we have some nonoperative assets in hand, which do not provide midterm cash and [indiscernible] very clear on disposing than to create additional cash on [indiscernible]. And you see we did the first move on the assets, which was located in [indiscernible] and we have larger assets waiting for us. And especially following the capacity optimization routes as we do for the automotive loss. There are some other assets which are available for the purposes as well on top of what we have in hand, and we are very clear on selling those assets, if necessary. And we are also in discussions with possible buyers, but we are not in a rush for the moment to dispose those assets very quickly, and if necessary, than they are on our agenda. On the Chemical side, the Chemical story has its own study specific to this year, because this year it has been more characterized by oversupply coming from China, and it is affecting the U.S. export market, which is mainly towards Asia Pacific. It is a common problem for all the producers in [indiscernible]. And apart from that, our operations and margins in other fields, our margins and operations from Turkey, our margins and operations within mainland U.S. and South [indiscernible] performed pretty good, and we are expecting to see improvements on the Asian Pacific market as well because the overcapacity of supply originating from China is not sustainable in many ways, and it has to be rationalized in the future.

And on the Wyoming issues, operating issues, if you can comment on that, would be very helpful.