Yaşar Holding H1 Results, Sep 2017

Transcription

1 Yaşar Holding 2017-H1 Results, Sep 2017

2 Yaşar Group Companies Food & Beverages The most beloved flavors, the most wholesome products, the most advanced technology Coatings Technological leadership, strong brands and distribution network Tissue, Trade & Tourism Environment friendly production, innovative products and superior service approach Pınar Süt (Dairy) Dyo Boya (Coatings) Viking (Tissue) Pınar Et (Meat) Pınar Su (Beverages) Kemipex Joint Stock Co (Coatings & Inks-Russia) Dyo Balkan Srl (Coatings-Romania) MTP Co (Coatings-Egypt) Altın Yunus (Tourism) Yaşar Dış Tic (Trade) YABİM (Information Tech.) Arev (Real Estate Development) Pınar Foods (Dairy & Meat-Germany) Dyo Africa (Coatings-Egypt) Yadex (Trade, Germany) Desa Enerji (Energy) YBP (Sales & Distribution) Çamlı Yem (Agribusiness) HDF Fzco (Sales & Dist.-Dubai)

3 Corporate Governance - Yaşar Holding Board of Directors consists of six members; three family members, two non-executive directors and the Group s CEO. There are three subcommittees that report directly to the Board: the Subcommittee for Audit; for Risk Management and for Corporate Governance Yaşar Holding adheres to the principles of transparency, fairness, responsibility, and accountability in all of its companies. For Yaşar Holding, corporate governance is a very important element of sustainability: Separate and individual audit committees and corporate governance committees have been set up in every public company Separation of responsibilities of CEO and Board of Directors in 2000 Defined all managerial and organizational roles & responsibilities in Yaşar Group Corporate Governance Handbook All Yaşar Group employees need to comply with Group s Rules of Business Ethics Guidebook Pınar Süt CGR 9,24 Pınar Et CGR 9,26 Pınar Su CGR 9,38

4 Key Strenghts Well positioned in the high growth potential F&B and Coatings industry Iconic brands with leading market positions in F&B and Coating Industries Well diversified across sectors with different risk profiles Increasing per capita income and consumption coupled with young and fast growing population Trend towards packaged and value added dairy & meat products and processed food Significant room for growth in coatings business fuelled by increasing demand and industrial production #1 market share in the Turkish milk market #1 market share in processed meat products #1 market share in decorative coatings and industrial coatings Resilient and growing F&B business High growth potential coatings business Strong supply chain and distribution network Long standing relations with suppliers; especially for dairy and meat Wide distribution network for both core businesses, reaching all over Turkey Diversified customer base Top ten customers represents less than 5% of total sales in coatings Top ten customers represents c. 18% of total sales in F&B Sustainable and healthy financial standing Profitable growth Disciplined working capital management Sustainable leverage levels

5 Key Strategies Meeting needs of customers and consumers by providing high quality products and services under trusted brands. Position to benefit from growing Turkish consumer market Provide high quality packaged food and beverage products and technologically advanced coatings Emphasize and leverage on product innovation capabilities Strong focus on quality Continued investment in brands and pursue effective marketing Maintain and enhance operational excellence Strengthen position in international markets Continue to implement sustainable and socially responsible business practices Maintain financial flexibility

6 Economic Environment «Turkey s economy: 17th largest in the world» Raw Milk Base Price Location Access to 56 countries within a 4 hours flight distance. Located between Europe, Asia, Middle East and North Africa. Economy 17 th * largest economy in the world in terms of GDP. Target is to be 10th largest by Turkey Demographics Population of 79,8 mn as of 2016 (TurkStat). Urbanizing: Top 5 cities constitute 37% of total population (TurkStat). As of H1 2017: Growth rate in Q is 5,1%. Annual inflation was 10,90%, while food inflation was 14,34% (CPI, TurkStat). Meat Prices, 2014 average as 100 *WorldBank GDP rankings, 2016

7 Sustainability Yaşar Group companies meet the needs of customers and consumers by an innovative approach, a sense of pro"ductivity and values created by their contributions to sustainability. Water Consumption at Pınar Meat by Years m3 water/tons of product 18,34 17,26 16,17 m Total Energy Consumption (Gigajoule) According to Primary Energy Source Direct Energy Consumption Indirect Energy Consumption Greenhouse Gas Emissions kg. CO2/year Scope Scope Joined the UN Global Compact, world s largest corporate citizenship initiative, in The group has ongoing projects on determination and reduction of the greenhouse gas emissions, carbon footprint and water footprint. - Aim to involve the suppliers and the customers within the system - Published its sixth Sustainability Report in Pınar Institute, established in 2012, with the mission to create public awareness on food, health and nutrition as well as on food quality

8 H Results

9 Revenue TL millions , , ,5 425,1-0,8% , , H H F&B Coatings Other

10 EBITDA TL millions 225,5 6,6 80,3 185,1 3,8 45, ,7 136,2 0 H H F&B Coatings Other

11 5,8 10,8 11,3 11,2 16,6 16,9 14,7 11,4 9,7 16,3 16,2 14,0 12,4 11,4 9,6 10,5 9,0 11,5 24,2 22,9 21,2 19,9 30,0 30,7 30,7 29,3 36,4 35,4 33,8 31,9 38,4 39,8 40,0 37,1 39,5 46,3 43,9 42,5 41,8 Market Position Dairy Meat H Nearest Competitor (H1 '17) H Nearest Competitor (H1 '17) Total UHT Milk Spreadable Cheese Cheese ("Süzme")* Butter* Soudjouk Salami Sausage Total Processed Meat * : Company is the third player in butter and second in «süzme» cheese Sources: Nielsen (value share excluding BİM)

12 Market Dynamics Dairy Meat Coatings Shift to packaged products continue, packaged cheese reached 50,8% in h vs 48,6% in h (Ipsos) UHT milk market penetration is 92,2%, compared to 91,2% in H (Ipsos) In H raw milk base price increased 5,2% on avereage, compared to H (National Milk Council) In H1 2017, dairy market grew by 11.7% in value and 4.0% in volume, YoY. (Nielsen) Competition is among local players, no major changes Red meat prices increased mainly due to domestic supply deficiency. The price of beef has gone up by 14%. The customs tax rate for carcass meat and butchery livestock has been reduced by the end of June (40% and 26% respectively). In H1 2017, annual food inflation reached up to 14.34% due to increase in unprocessed food prices. In H1 2017, processed meat market grew by 11.5% in turnover and 10.0% in volume, YoY. (Nielsen) Competition is among local players, no major changes In H1 2017, Turkish Coating Industry remained at the same level with the previous period in volume. Approximately 20 large scaled, nearly 300 medium scaled companies in the sector Chemical prices increased substantially (Monomer: 27%, Titan: 35%) in H Although average oil prices were decreasing slightly in the second quarter, in 2017-H1 the prices were higher year-onyear, in dollar basis. Dyo Boya maintains its leader position: The only coatings firm in Turkey producing in all sub-sectors.

13 Operating Profit and EBITDA (TL mn) 2016 H H1 audited audited Operating profit (before other income and expenses) 172,5 111,6-35,3% Operating profit margin 9,6% 5,8% Add back depreciation and amortization 43,9 49,0 Add back provision for ETB 7,4 8,9 Less: gain from fair value of biological assets 1,8 15,6 Consolidated EBITDA 225,5 185,1-17,9% EBITDA margin 12,5% 9,6% EBITDA by Segments F&B 138,7 136,2-1,8% Margin 11,0% 10,0% Coatings 80,3 45,1-43,8% Margin 18,7% 10,6% Other 6,6 3,8-43,0% Margin 5,5% 2,9%

14 Income Statement (TL mn) 2016 H H1 audited audited Revenue 1.805, ,4 6,3% Cost of Sales , ,6 11,7% Gross Profit 532,3 496,8-7% Gross Profit Margin 29,5% 25,9% General Administrative Expenses -87,7-94,6 8% Selling and Marketing Expenses -255,9-274,4 7% Research and Development Expenses -16,3-16,2-1% Other income (expenses) net -4,2-5,2 Operating Profit 168,3 106,4-37% Financial income (expenses) net -82,8-170,8 106% Profit before taxation on income 85,5-64,5 Taxation on income -11,0 0,0 Profit (Loss) From Continuing Operations 74,5-64,5 Profit from subsidiary sold 72,5 0,0 Profit (Loss) For the Period 147,0-64,5

15 Financial Income / Expenses - net (TL mn) 2016 H H1 audited audited Interest expense - net -67,3-86,6 28,7% Foreign exchange loss - net 2,7-7,8-394,8% Profit/Loss arising from cros currency swap transactions -8,2-67,5 Other financial income (expense) - net -10,0-8,9 - Financial Income and Expenses - net -82,8-170,8 106,3% Unrealized portion of foreign exchange loss 8,5 64,6

16 Balance Sheet (TL mn) H1 audited audited Cash and Cash Equivalents 115,8 79,0-32% Trade Receivables 693, ,8 48% Inventories and ST Biological Assets 428,4 464,1 8% Property, Plant & Equipment, Intangible Assets 1.693, ,7 3% Investment Properties 301,2 303,7 1% Total Assets 3.461, ,1 11% Short-term Debt (including other fin. liabilities) 343,2 413,1 20% Trade Payables 594,9 744,9 25% Long-term Debt 1.428, ,2-1% Total Liabilities 2.711, ,9 19% Total Equity 749,8 641,2-14% Current ratio at H is 1.2x (2016: 1.3 x)

17 Working Capital and Capex (TL mn) H1 audited audited Trade Receivables 665,8 1024,8 53,9% Inventories and ST Biological Assets 428,4 464,1 8,3% Trade Payables 594,9 744,9 25,2% Order Advances Received 48,8 200,0 310,0% Net Working Capital 450,5 544,1 20,8% % of Revenue 12,8% 28,3% (TL mn) 2016 H H1 audited audited F&B 76,0 65,0-15% Coatings 52,3 26,1-50% Other 9,1 8,2-9% Total Capital Expenditure 137,4 99,3-28% % of Revenue 7,6% 5,2%

18 Cash Flow 2016 H H1 (TL mn) audited audited EBITDA 225,5 185,1-17,9% Net cash generated from operating activities 5,2 122,4 2236,9% Net cash used in investing activities -71,7-101,0 41,0% Net cash used in financing activities 67,9-58,3-185,8% Increase in cash and cash equivalents 1,5-42,9 - Cash and cash equivalents at the end of the year* 94,4 71,7-24,1% * Excluding blocked deposits

19 Debt Profile Bank Borrowings* TL 1,790.1 mn * TL mn equivalent, principal amount only TL mn Maturity Profile at 30 June 2017 TRY; 39,9% USD; 51,6% 1.200,0 977,8 800,0 400,0 0,0 235,2 261,4 181,7 98,9 31,1 4,1 EUR; 8,5%

20