BİSKÜVİ SANAYİ A.Ş. A P R I L Istanbul Stock Exchange: ULKER ULKER.TI (Bloomberg) ULKER IS (Reuters)

Transcription

1 BİSKÜVİ SANAYİ A.Ş. I N V E S T O R P R E S E N T A T I O N A P R I L Long Version Istanbul Stock Exchange: ULKER ULKER.TI (Bloomberg) ULKER IS (Reuters)

2 Disclaimer This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Ülker Bisküvi Sanayi A.Ş. (Ülker Bisküvi). This presentation contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this presentation and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond Ülker Bisküvi s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Ülker Bisküvi does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. This presentation merely serves the purpose of providing information. It neither represents an offer for sale nor for subscription of securities in any country, including Turkey. This presentation does not include an official offer of shares; an offering circular will not be published. This presentation is not allowed to be reproduced, distributed or published without permission agreement of Ülker Bisküvi. The figures in this presentation are rounded to provide a better overview. The calculation of deviations is based on figures including fractions. Therefore rounding differences may occur. Neither Ülker Bisküvi nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation. 2

3 Introduction to Ülker Bisküvi Turkey and the Biscuits Market Review of Operations Financial Overview Appendix

4 Ülker Bisküvi: Company Profile Founded in 1944 and headquartered in Istanbul, Turkey; Turkey s leading producer of biscuits, chocolate covered biscuits, crackers and wafers; The flagship brand for Yıldız Holding, one of Turkey s leading groups; Unrivaled supply chain and distribution channel management; Production facilities strategically located across Turkey; and Exceptional food quality and safety record. In 2010, Celebrated 66 years of Happy Moments! 4

5 Ülker Bisküvi: Shareholder Structure Listed on the Istanbul Stock Exchange since 2004 under ticker symbol «ULKER TI*» Yıldız Holding is one of the leading Turkish groups, with investments in business lines, ranging from foods and beverages, personal care, retail, real estate, packaging, IT and finance. Ülker Family 4,6% Dynamic Growth Fund 27,4% Free Float 28,2% Yıldız Holding 39,8% * Yıldız Group s first company that went public was Anadolu Gıda. In 1996 it began trading on the Istanbul Stock Exchange under the ticker symbol AGIDA.IS. Following Anadolu Gıda's merger with Ülker Gıda on 31 December 2003, the ticker symbol was changed to ULKER.IS. 5

6 (in TL) (in TL MM) (in TL MM) Solid Financial Position Solid top-line performance; ,412 Net Sales 1,506 1, % y-o-y domestic net sales growth in 2010, - Export sales as a percentage of total sales in 2010 was 18%, compared to 22% in % y-o-y growth in total net sales in Domestic Sales Export Sales Gross Profit Increasing earning per share with 81.6% y-o-y growth in 2010; and 0,8 0,6 0,4 EPS 0,38 0,69 Financial flexibility to capitalize on growth opportunities. 0,2 0 0,

7 Unrivaled Brand Recognition and Market Position Brand Category Market Share by Volume (%) Market Position Plain 30% #1 Cream Sandwich 18% #1 Sandwich 57% #1 Filled 44% #1 Cookie 54% #1 Mille-Feuille 100% #1 Baby Biscuits 53% #1 Source: AC Nielsen year to date report, as of 28 February

8 Award-Winning Brand For many generations, the Ülker brand has been beloved and synonymous with quality and good taste, both in Turkey and abroad. Silver Effie Award, «The Best in the Sweet and Salty Category» with «Ülker Rondo» (2011) Webrazzi, 2nd place in «The Best in Digital Marketing Campaigns» with «dramalikremalihayat.com» (2010) Grand Interactive Awards, «The Most Integrated Communication Campaign» with «dramalikremalihayat.com» (2010) MIXX Awards, «The Best Cross Channel Integration» with «dramalikremalihayat.com» (2010) Kırmızı Awards, «The Best Food Ad Campaign» with Krispi (2010) MediaCat Felis Award, «The Best Magazine Application» with Krispi (2010) Golden Award, «The Multi Media Campaign» with Ülker Rondo (2010) Crystal Award*, «The Best Radio Ad in Fast Consumption» with Ülker Rondo (2010) Crystal Award*, «The Best Cross Channels Campaign in Fast Consumption» with Ülker Rondo (2010) Crystal Award*, «The Best TV Ad in Confectionary» with Ülker Rondo (2010) Bronze Effie, «Sustainable Success» with Hanımeller (2009) AC Nielsen, 3rd place in «Most Recognized Brands Spontaneous» as Ülker Bisküvi (2009) AC Nielsen, 2nd place in «Brands That Consumers Feel Closest To» as Ülker Bisküvi (2009) «Kırmızı» Best in Media Advertising Awards 8

9 Key Investment Highlights Play on the Turkish Consumer One of the largest economies in the world Ranked 6th in Europe and 16th globally Per capita income has grown by 7.3% per year (CAGR of ) 1 Young population with 60% under the age of 35 years old 2 A Highly-Attractive Category Biscuits is a high-growth category The Turkish biscuits market has grown consistently in recent years 7.2% volume growth was realized in Expected to post strong future growth as per capita biscuit consumption ramps up with the increase in per capita income Unrivaled Position Number #1 in biscuits category Enjoys the strongest and increasing market position in Turkey, commanding approximately 50% share 4 Exceptional Track Record and Robust Growth Prospects Significant organic top line growth potential driven by attractive market and sector fundamentals Consistent solid financial performance despite adverse impact of recent global economic crisis A Power Brand Ülker is the brand in the Turkish confectionery market, including biscuits Consistently ranks at the top as The Most Recognized Brand of Turkey Increasing investments in marketing since 2007 Supported by smaller well-known brands of local gems Strong Management Strong and highly experienced management with a total experience of more than 300 years Committed to further grow the business and margin expansions Best in Class RTM Strong distribution capabilities with approximately 200,000 point-of-sale in Turkey Opportunity to further leverage existing distribution networks in Central East, the Middle East, North Africa and Europe Innovation / R&D Strong innovation capability as an integral part of Ülker s heritage Launched 11 and 31 new products in 2009 and 2010, respectively 1, 2: Turkish Statistical Institute 3, 4: AC Nielsen Report, February

10 Corporate Structure* as of 31 December 2010 BİSKÜVİ SANAYİ A.Ş. Subsidiaries Financial Assets Other Shareholdings Manufacturing Sales & Marketing BİM (10.05%) Retail Pendik Nişasta (23.99%) Glucose-fructose and starch producer İdeal Gıda (97.9%) Produces Ülker branded products Birleşik Dış Ticaret (69.0%) Exporting Agent of Non-Ülker branded products Fresh Cake (10%) Cake Producer Hero Gıda (39.59%) Biscuit and baby food producer Biskot Bisküvi (50.8%) Produces Non-Ülker branded products Birlik Pazarlama (99.0%) Flour producer for the Group companies Atlas Gıda (78.2%) Domestic Sales & Marketing of Ülker branded products Rekor Gıda (46.6%) Domestic Sales & Marketing of Non-Ülker branded products Besler Gıda ve Kimya (7%) Oil & Fats Producer Sağlam GYO (10.7%) REIT Godiva (25.23%) Premium chocolates, including bonbons, truffles, flavored coffees, cocoa mixes, cookies and ice cream İstanbul Gıda (83.8%) Exporting Agent of Ülker branded products Mavi Yeşil (74.4%) Sales & Marketing 10

11 Introduction to Ülker Bisküvi Turkey and the Biscuits Market Review of Operations Financial Overview Appendix

12 (in billions) The Global Biscuits Market Global size of biscuit market is estimated to grow at a CAGR of 3.1% between 2008 to Expected to reach 9.3 billion kg in volume and valued at USD 41 billion, an increase of 16.6% since 2008 Increased consumer awareness Consumers gravitate towards packaged biscuits with increased consumer awareness Worldwide Biscuits Sales 1 Global Biscuits Segmented by % Share, Value 1 $42 $41 $40 $39 $38 $37 $36 $35 $34 $33 $32 40,8 39,6 38,5 37,3 36,3 35, E 2011E 2012E 2013E Other, 27.1% Wafer biscuits, 10.7% Cream filled; 12,70% Butter-based cookies; 17% Plain cookies, 16.2% Chocolate cookies, 16.4% 1: Datamonitor Global Guide Report (February 2010) 12

13 The Turkish Biscuits Market The Turkish biscuit retail sales reached c.217k tons in 2010, a year-on-year growth of approximately 7% in terms of volume and approximately 11% in terms of value; Ülker Bisküvi, the oldest and most established biscuits producer in Turkey is the market leader as of December 31 st, 2010; commanding c.50% of the total market in terms of volume and value. Turkey Biscuits Sale by Volume 1 (tons/year) 217K 207K 202K : AC Nielsen Data covering c.70% of retail and traditional channels excluding BİM, February

14 Introduction to Ülker Bisküvi Turkey and the Biscuits Market Review of Operations Financial Overview Appendix

15 Core Focus: Drive Future Growth and Shareholder Value Improved cost structure through increased operational efficiencies; Focused on solid execution of core business strategy; Disciplined approach to production and capacity utilization; Investments made to capacity increase, renewal and modification of production lines Dedicated to Corporate Social Responsibility Improving Cost Structure Solid Execution of Business Strategy Reinforcement of brand equity, driving innovation via new and diverse product development; Continue building market share and enhance customer base in all channels domestically and internationally; Quality controls Retains international quality certificates Corporate Social Responsibility as a corporate culture The Company as a whole, continues to build awareness of responsibility to community and the environment through charitable support and social contributions Sound Corporate Governance Highest Quality of Standards Indisputable Brand Recognition R&D and New Developments Increasing Consumption Trends and Urbanization Focus on International Markets Corporate Governance Applying and continuously improving corporate governance practices 15

16 World-Class Production Facilities Ülker Bisküvi s production facility is the largest in Turkey with an annual capacity of approximately 810 K tons (371K being the flour capacity ) Facilities are ISO 9000 and HACCP certified and adhere to the strictest and highest standards of operation; Minimal CapEx requirements to increase capacity production in the coming years; and Main production facilities based in Istanbul Topkapi, Ankara, Gebze and Karaman are diversified and strategically located throughout the country. ISTANBUL PLANT GEBZE PLANT ANKARA PLANT KARAMAN PLANT 2010 Ülker Bisküvi Biskot İdeal Gıda Birlik Pazarlama Capacity (ton) Production (ton) Sales (ton) CUR (%)

17 Sophisticated Distribution and Marketing Channels Ülker Bisküvi s distribution network reaches to approximately 200,000 sales points across Turkey and is one of the widest and most sophisticated distribution networks in the country; Ülker Bisküvi is also able to cross-utilize the resources of the Group; and - Atlas Pazarlama nationwide distribution Largest bakery distributor in Turkey, in terms of sales and sales points 10 regional offices and 109 distributors across Turkey Provides regular, high-quality services across 170,000 points-of-sales weekly with more than 1,000 delivery vans - Pasifik Pazarlama distribution and marketing Owned by Yıldız Holding Largest distributor to major retailers, with a portfolio of 7,000 independent supermarkets and other key accounts 3 warehouses -2 in İstanbul, 1 in Ankara- having total pallet capacity of In addition to the two main marketing and distribution channels, Ülker Bisküvi uses Esas Pazarlama, Merkez Gıda Pazarlama and Rekor Pazarlama. 17

18 Ülker Bisküvi Export Markets and Opportunities Turkish biscuit exports have experienced significant growth due to modernization of production facilities; Of the total exported biscuits from Turkey, sweet and sugar-added biscuits are the majority export items commanding 58.2% of the total export volumes in ; Ülker Bisküvi exports accounted for approximately 22% of net revenue in 2009 and 18% in 2010; Ülker Bisküvi s top export countries are Saudi Arabia, Iraq, Germany, UAE, the US, Yemen and Senegal, Biscuit exports were valued at USD $229.1 million in 2009; Accelerated export quantities are based on demand and targeted to the Middle East, CIS, Eastern European and North African countries; 25% 20% 15% 10% 5% 0% Export Share in Total Ülker Bisküvi's Net Sales 22% 18% 18% : Export Promotion Center of Turkey, 2010 Report 18

19 The Unrivaled Leader in All Categories Ülker Bisküvi is the undisputed market leader in biscuit sale by value and volume; Celebrating 66 years of Happy Moments ; A well-respected, beloved and a Top of Mind brand; and Category (2010) Market Share by Volume(%) Market Position Plain 38% #1 Cream Sandwich 50% #1 Cookie Sandwich 70% #1 Cookies 65% #1 Filled 50% #1 Cracker 47% #1 Mille-Feuille 100% #1 Baby Biscuits 55% #1 Piknik 25% #1 Health 6% #2 Diet 44% #2 Pies 3% #2 Source: AC Nielsen, February

20 Leadership Position Supported by Innovation Innovation driven by consumer trends, offering 250 types of biscuits, crackers and wafers and more New Launches YTD 11 New Products 31 New Products 6 New Products 20

21 Board of Directors and Management Team Years of Title Experience Murat Ülker Chairman of the Board 27 Orhan Özokur Deputy Chairman of the Board 38 Ali Ülker Board Member 24 Alain Strasser Board Member (Independent) 39 Cengiz Solakoğlu Board Member (Independent) 47 Mahmut Mahir Kuşçulu Board Member (Independent) 41 Güven Obalı Board Member (Independent) 44 Dr. Cafer Fındıkoğlu Vice President of Biscuits & Cakes 30 Dr. İrfan Demiryol General Manager 26 Bora Yalınay CFO 14 21

22 Introduction to Ülker Bisküvi Turkey and the Biscuits Market Review of Operations Financial Overview Appendix

23 (in TL MM) (in TL MM) (in TL MM) 2010 Consolidated Financial Results Summary Net Sales 1,412 1,506 1, Domestic Sales Export Sales EBITDA Net Profit Net sales increase 1.1%, to TL MM in 2010 While domestic sales increased by 6.9% in 2010, export sales decreased by 18.7% Over the history of 66 years, Ülker Bisküvi has successfully maintained its market share of around 50% EBITDA decreased to TL 67 MM in 2010, compared to TL 144 MM in 2009 EBITDA margin was 4.4% in 2010 compared to 9.5% in 2009 TL 191 MM of net profit has been realized in 2010, compared to a net profit of TL 120 MM in 2009, corresponding c.60% y-o-y growth rate 23

24 (in TL MM) Full Year 2010 Sales Summary Net Sales Ülker Bisküvi s net sales grew 1.1% in 2010 Domestic sales grew 6.9% while the export sales decreased by TL 63 MM compared to 2009 levels Domestic Sales Export Sales Lower export sales is mainly due to the currency exchange rate differences and restructuring of international operations

25 (in TL MM) Sustainable Gross Margins Gross Profits Stable revenue growth coupled with increasing raw material prices adversely affected gross margins Cost of goods sold in 2010 was TL 1,193 MM as compared to TL 1,128 MM in 2009, corresponding an increase of 5.8% Gross Margin 25.1% 21.7% 25

26 (in TL MM) EBITDA Analysis EBITDA EBITDA margin decreased to 4.4% in 2010 While net sales increased by 1.1% and cost of sales increased by 5.8%, product prices remained flat EBITDA Margin % 4.4% EBITDA margin was also affected by marketing investments and the increase of overhead costs 26

27 Balance Sheet Highlights (in TL MM) Current Assets 1,121 1,486 1,512 Non-current Assets 913 1,243 1,374 Current Liabilities Non-current Liabilities Shareholders Equity 756 1,187 1,527 Total Financial Liabilities Short-Term Long-Term Return on Equity 3% 10% 13% Net Debt EPS (TL)

28 Introduction to Ülker Bisküvi Turkey and the Biscuits Market Review of Operations Financial Overview Appendix

29 Income Statement (in TL MM) Sales Revenue 1,412 1,506 1,524 Cost of Sales (1,106) (1,128) (1,193) GROSS PROFIT Marketing, Sales and Distribution Expenses (182) (200) (228) General Administration Expenses (52) (65) (61) Research and Development Expenses (1) (1) (1) Other Operating Income Other Operating Expense (4) (3) (11) OPERATING PROFIT Share in net profit of investments accounted for under equity method (15) (3) (14) Finance Income Finance Expenses (304) (237) (235) PROFIT BEFORE TAXATION Tax Charge from Continued Operations (4) (26) (32) Current Tax Charge (4) (26) (37) Deferred tax (charge) / benefit PROFIT FOR THE PERIOD

30 Balance Sheet ASSETS (in TL MM) Current Assets 1,121 1, Cash and Cash Equivalents Financial Assets Trade Receivables - Trade Receivables from related Parties Other Trade Receivables Other Receivables - Non-trade Receivables Other short-term Receivables Inventories Other Current Assets Non-Current Assets Trade Receivables ,1 Other Receivables ,1 Financial Assets Investments accounted fro under equity method Tangible Assets Intangible Assets 2 6 0,6 Goodwill Deferred tax assets Other non-current assets TOTAL ASSETS 2,034 2,

31 Balance Sheet LIABILITIES (in TL MM) Current Liabilities Financial Liabilities Other Financial liabilities 0,8 8 6 Trade Payables - Trade payables to related parties Other trade payables Other payables - Non-trade payables from related parties Other short term payables Corporate tax payables Provisions Provisions for employee benefits Other current liabilities Non Current Liabilities Financial Liabilities Provisions for employee benefits Deferred tax liabilities Other trade payables SHAREHOLDERS' EQUITY Total equity attributable to equity holders' of parent Share capital Inflation adjustments to share capital Valuation funds Restricted reserves appropriated from profits Currency translation reserve Retained earnings Net profit for the period Minority interest TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,034 2,729 2,886 31

32 Improvement on Net Debt Position (in TL MM) Short-Term Long-Term Total Financial Liabilities Inter-company Receivables Inter-company Payables Inter-Company Net Cash and Cash Equivalents Net Debt

33 BİSKÜVİ SANAYİ A.Ş. Yıldız Holding A.Ş. Kısıklı Mahallesi Ferah Caddesi No: B. Çamlıca / Üsküdar / İstanbul + 90 (216) For more information, please contact us + 90 (216) , or us at ir@ulker.com.tr 33