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Management PresentationSeptember 2014
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1
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Financials
4. Appendix
2
7
23
28
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2We are the leading name in Turkish confectionery...
• 70 years of experience in Turkish confectionery
• Leader in biscuit and chocolate category with 46%market share in each; #2 in cake category with 33%market share – 9M14
• Largest production capacity in the domestic market withspread out facilities
• Consolidated annual net sales of TL 2.75 bn in 2013
• A gateway to the Middle East, Northern Africa and EU,with exports to those regions accounting for c.20% ofrevenues
Key figures – TL mn 9M 2014
Mcap as of 09/30/2014 5,164
Revenues (LTM) 2,893
EBITDA (LTM) 318
EBITDA margin % (LTM) 11.0%
† Excludes other non -confectionary sales of TL 25 mn
Production Facilities
ChocolateEstablished in 1991Capacity: 194ktons/year68k sqm closed area
Topkapı, Istanbul
Istanbul
Chocolate,chocolatecovered biscuitEstablished in 1995Capacity: 30ktons/year12k sqm closed area
Silivri, Istanbul Biscuit, cake, cracker &chocolateEstablished in 1986Capacity: 123k tons/year102k sqm closed areaNon- Ülker branded products75% owned by Ülker
Karaman
CakeEstablished in 1992Capacity: 45ktons/year27k sqm closed area
Hadımkoy, Istanbul
BiscuitEstablished in 1969
Capacity: 126k tons/year86k sqm closed areaThe largest biscuitmanufacturing facility in theMiddle East
Ankara
Biscuit & crackerEstablished in 1997Capacity: 85.5k tons/year41k sqm closed area
Gebze
Gebze
Ankara
Karaman
† † Yıldız Holding is Turkey’s leading food and beverages groupwith annual gross sales of TL15.7 bn as of 2013
Sales 9M14 k tons TL mn † % share †
Biscuits 192 805 38%
Chocolate 113 1,036 49%
Cake 50 257 12%
Shareholding Structure (As of 30.09.2014)
Yıldız Holding &
Subsidiaries& FamilyMembers
57,0%
Free Float43,0%
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3... and the “Best Recognized” FMCG brand...
Long las t ing
relat ionships
wi th end usersenhance
brand
perception
The Best in the Sweetand Salty Category
(Silver Effie Award,Ülker Rondo, 2011)
MostRecognized
Company(AC Nielsen, 2 nd
place, 2010)
The “Brand Award”
(InternationalBrands
Conference, 2011)
Best RecognizedBrands
Brand One FeelsClose To
# 1
# 2
# 3
# 4
# 5
• Strength of the brand is proven by national andinternational awards
• Ülker has always been the “most recognized”brand and “closest to consumers” ††
• Ülker brand essence and campaign theme:“Happy moments with Ülker”
• Highly-popular sub-brands are in the market for2-3 decades
Consistent ly
ranks as one
of the best
recognized
brands in
Turkey
†
† Arçelik is a household durable goods brand
Source: ACNielsen 2011
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4...with dominant positions in growing markets
BISCUITS CHOCOLATES CAKES
46% 46% 33%Market Share (9M14)(Volume based)
Market Position # 1 # 1 # 2
B i s c u
i t
C h o c o
l a t e
† Retail market
# 1 in Petit Beurre Segment
# 1 in Chocolate Covered Sandwich Segment
# 1 in Special Biscuits Segment
# 1 in Creamy Biscuits Segment
# 1 in Sandwich Biscuits Segment
Top 3 in Chocolate Covered Segment
#1 in Spread Chocolate Segment
290K Tons 170K Tons 79K TonsMarket Size † (9M14LTM)
Market leader in main categories Growth in Biscuit (Volume)
Growth in Chocolate (Volume) *
#1 in Solid Chocolate Segment
C a
k e
#1 in Cake Segment
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5
1996
Milestones of our success
1944
2003
2006
2007
2008
2009
2010
2011
2012
2013
Established as a small scale family run bakery
Ülker Gıda merged under its own title with Anadolu Gıda
Ülker Gıda changed its name to Ülker Bisküvi: Emphasis on core business
Acquisition of 25% stake in the premium chocolatier brand Godiva
Ülker Bisküvi investment: US$214 mn
2011 – 2013: Restructuring at all frontsNew top management on boardGathering all chocolate and cake businesses under Ülker Bisküvi Disposal of 6 non-core assets. Reduced Godiva stake to 19% - recorded TL 100mn profitSimplified traditional channel distribution – merger of production companies with sales companies;consolidation of all sales under new sales company HorizonSKU optimization – 502 SKUs in 2010 vs. 330 SKUs in 2013Cancellation of privileged shares and founder sharesNew dividend policy – minimum 70% of distributable incomeFree Float reached 40% after Yıldız Holding’s block sale
†Mcap as of year-endLtm Revenue and September 30th 2014 closing Mcap
Revenues Mcap †
US$ mn
Appointment of Murat Ülker as Chairman of Ülker and Yıldız Holding: new generation & new vision
Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange
Rapid growth led to complex corporate structure – 4 sales companies, 4 productioncompanies and minority stakes in 7 non-core assets
2014 2014:Ülker Biskuvi acquired 30% minority stake in BiskotDivested stakes in Istanbul Gıda, Birleşik Dış Ticaret and Rekor
1,340 2,266*
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6
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Financials
4. Appendix
2
7
23
28
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7Key investment highlights
Further margin improvement to be realized on the back of...Simplified and efficient distribution networkEffective OPEX managementIncreasing share of higher margin chocolate sales
Top-line growth driven by...Growing market - young population with increasing purchasing power spending more on packaged foodsÜlker - Regaining market share through optimization of SKU portfolio, category expansions and new product launches,unlocking distribution power and new account additions
High barriers to entry
Yıldız Holding: Strong & supportive parentBiggest food and beverage group with TL 15.7bn turnover with 58 production facilities and 300 brands in 40 categoriesStrategic shareholdings in the leading food-retail discounters ( Şok and Dia †) and cash & carry wholesaler (Bizim) in TurkeyÜlker - Benefiting from Yıldız Holding’s unique distribution network, procurement power and experience in international markets
Targeting to become a regional player in markets with high growth potentialGeographical expansion already on the way – Saudi Arabia and EgyptSeeking further international opportunities in high growth markets
is the bestrecognized FMCG
brand in Turkey
1
2
3
4
6
Godiva: Hidden valueUS$750 mn revenue business - Global premium chocolate brand with significant brand equity worldwideInvesting in store expansion, especially in the Middle East, China, Japan, Korea and Indonesia
5
c.50% market share across the main categoriesStrong brand equity in Turkey and in neighboringcountries
Access to an exclusive distribution network reaching~200,000 sales pointsLargest production capacity in the domestic market
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8
16%
12%
14%
15%
14%
12%
17%
25%
17%
17%
14%
11%
8%
7%
0-14
15-24
25-34
35-44
45-54
55-64
65+
EU-27 Turkey
59%
41%59%
41%
1.7%
1.4%
1.3%
1.2%
0.9%
0.7%
0.5%
0.5%
0.5%
0.3%
0.2%
0.2%
0.2%
-0.1%
Malaysia
Turkey
Indonesia
S.Africa
Brazil
UK
France
Italy
Netherlands
Czech Rep.
Poland
Russia
Greece
Germany
Turkey has one of
the youngest andfastest growing populations
Attractive targetconsumer group
Source: World Bank, Turkstat
Sizeable market with a growing population Youngest population in Europe
Favorable demographics and young target population1
Total population in millions
63
29
76
247
51
199
66
61
17
11
39
144
11
82
European median41 yrs
Turkey median29 yrs
CAGR 2007- 2012 Population
Source: Turkstat, Eurostat
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9
UKGermany
NetherlandsRussia
USAFrance
Italy
Turkey '12Turkey '07
Poland
Indonesia
BrazilS.Africa
Malaysia
Saudi Arabia
Egypt
CroatiaHungaryTurkey '18
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0 10,000 20,000 30,000 40,000 50,000 60,000
NetherlandsUK
ItalyUSA
FranceRussia
GermanyTurkey '12
Turkey '07Poland
Indonesia
Brazil
S.AfricaMalaysia
Saudi Arabia
Egypt
CroatiaHungary
Turkey '18
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0 10,000 20,000 30,000 40,000 50,000 60,000
UK
Germany
NetherlandsRussiaUSAFrance
ItalyTurkey '12
Turkey '07
Poland
IndonesiaBrasil
S.AfricaMalaysia
Saudi Arabia
Egypt
CroatiaHungary
Turkey '18
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0 10,000 20,000 30,000 40,000 50,000 60,000
...and c.10% CAGR in chocolate consumption
Biscuits consumption vs. GDP per capita Chocolate consumption vs. GDP per capita
Turkey’s
consumption ofbiscuits andchocolate standsat 3.5 kg and 1.9kg per capita,respectively
Increasing GDP per capita
expected to fuelbiscuit andchocolateconsumption
Kg per capita
US$ per capita
Kg per capita
US$ per capita
US$20,000 † GDP per capita target for Turkey by 2018 implies c.5% CAGR in biscuits consumption...
1
† IMF estimate
Spending increases in tandem with GDP per capita
R 2 =0.60
R 2 =0.54
Per capita consumption of biscuits and chocolate in Turkey grew at a CAGR of 2.3% and 7.0%, respectively, between 2008 and 2013 -still lower than peers
Source: Eurostat Source: Eurostat
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10
• Portfolio restructuring started in late 2011- Keeping star SKUs, discontinuing unprofitable ones –
Reduction from 502 SKUs in 2010 to 330 SKUs in 2013- Increased brand investments through multichannel
advertising and social media / investment on star SKUs- Distribution efficiencies / declining sales returns: 2.8% in
2011 vs. 0.5% in 2013 (0.5% in 9M14 vs 1.0% in 9M13)- Increasing sales per SKUs
• New launches to grasp market share:- Indulgence biscuits: Dore (launched in June 2013)- Diet biscuits (launched in September 2013)- New chocolate- Laviva- (launched in September 2013)- A new cake line ‘’O LaLa’’ (launched in March 2014) - New Wafer –Dido Black (launched in August 2014)- New chocolate- Bi Rüya (launched in September 2014)
1 Regaining market share with portfolio management...
# of SKU and sales
Streamlined product portfolio and increased brand investment for improved sales
Market Share Development, Volume Based †
B i s c u
i t
C h o c o
l a t e
C a
k e
II
II
II
>50%
Results of portfoliorestructuringreflected asincreased sales
performance
Source: ACNielsen, Euromonitor† Retail market, Market shares may not add up to 100% due to rounding
570
370330 330 330
2,74,8
7,1 8,3 8,8
0,0
2,0
4,0
6,0
8,0
10,0
0
100
200
300
400
500600
2010 2011 2012 2013 9M14(LTM)
# of SKU Sales per SKU (TL mn)
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11
Traditionalretail65%
Organized retail35%
Accessibility is a key success factor
... and unlocking distribution power ...1
Typical distribution networkin a similar FMCG networkhas a replacement value ofc. US$100mn and requires1,300 headcount
1,565 km
Ülker domestic sales by channel
665 km
Marmara 30% sales points35% of total sales
Aegean 17% sales points10% of total sales
Mediterranean
15% sales points10% of total sales
Central Anatolia 15% sales points20% of total sales
Black Sea 11% sales points10% of total sales
Eastern Anatolia 6% sales points8% of total sales
S. Eastern Anatolia 6% sales points7% of total sales
US$100
Reaching ~200k sales pointsthroughout Turkey
• 175k in traditionalchannel through Horizon
• ~20 k bullets inorganized channelthrough Pasifik
200k
c.90% nationwide coverage -
widest after beverage &tobacco companies90%
Traditional retail
dominates thebiscuits andchocolate market
Ülker benefits fromYıldız Holding’swide distributionnetwork throughoutTurkey:
• Horizon in traditional retail
• Pasifik in organized retail
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13Simplified route to market improving margins
Simplified andconsolidated routeto market createscost efficiencies
paving the way forfurther marginimprovement
• Multi-channel route to traditional market• Limited to single category sales• 235 distributors• # of points visited: 140k• % of invoice issued by visit: 75%-80%
• Single route to traditional market – through Horizon• Benefiting from Yıldız Holding product portfolio • 103 distributors• # of points visited: 175k• % of invoice issued by visit: 90%
Other Food &Beverage Products
Domestic
TraditionalChannel
Biscuits
Chocolates
Cakes
Horizon †
(New SalesCompany) Distributors
Completed NewStructure:
Before Current
Other Food &Beverage Products Distributors
Domestic
TraditionalChannel
Biscuits
Chocolates
Cakes
Atlas(Ülker brand) Distributors
Atlantik(Ülker brand)
Atlas
PreviousStructure:
† Owned by Yıldız Holding, took over all traditional sales activities of Ülker as well as Yıldız Holding’s other companies’ s ales activities
2
Traditional channel - Efficiency gains from restructuring
Decreased logistics expense More efficient route to sales points Enhanced distribution profit
Stronger distributors with highernominal gains
Better and faster executioncapability
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14
22%25%
20%
23%
Biscui t Chocolate Cake Overal l
2 Growing chocolate segment favoring margins
Gross profit margin % - 2013 ††
48,6% 49,2%
Chocolate
share intotalrevenue2012
Chocolate
share intotalrevenue2013
Increasing share of higher margin chocolate segment
† Chocolate business consolidated in 4Q2011 following the acquisition of Ülker Çikolota † † af ter depreciation
Overall margin benefits from highgrowth chocolate category
Chocolate sales and total share in revenue †
Stronger growth in chocolate sales
15% Growth between 2013 and 2012
7% Growth between 9M14 and 9M13
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15Measures reflected in margins, still room to go…
Components of EBITDA margin improvement
2
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16
4.500
271
399 83
1.000
2.748
2013 Sales Biscuits Chocolates Cakes Int. Growth 2016E Sales
15.0%
1.0%1.8% 0.6%
11.5%
Long Term Guidance
By 2016, Ülker is expected to surpass TL4.5bn net sales (including inorganicgrowth) with an EBITDA margin of above 15%
EBITDA growth to surpass sales growth
Chocolatevolume up 6
to 8%annually
Biscuits andcakes
volume up 4to 6%
annually
Average
price to beincreased by± 2% vis-a-
vis inflation
Capex: 2.5-3.0% of net
sales
Distributeminimum 70%
ofdistributable
income
Sales 2013-2016 (TL m n)
2013EBITDA
margin %
Reductionin sales
discounts
Categorymix effect
/ Newlaunches
Better cost &OPEX
management
2016EBITDA
margin %
EBITDA marg in 2013-2016
CAGR 18%
2
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17
• Extensive and exclusive distribution network - the most relevant entry barrier in themarket
• Reaching ~200,000 points of sales throughout Turkey
• 6 facilities in 4 cities, representing the largest production capacity in the domesticmarket
• Ankara biscuit factory - the largest biscuit manufacturing facility in the Middle East
• Geographically diversified production base – competitive advantage in route tomarket
High barriersto entry
Exclusivedistribution
Largest & spread-out productioncapacity in the
domestic market
3 High barriers to entry
Dominant presence in Turkey across the board
• c.50% dominant market share in biscuits and chocolate
• Significantly higher brand awareness of Ülker branded products• Always been the “most recognized” brand and “closest to consumers”
Strong brand equitywith establishedmarket positions
The Best in the Sweet and Salty Category
(Silver Effie Award, Ülker Rondo, 2011)
Most RecognizedCompany
(AC Nielsen, 2 nd place, 2010)
The “Brand Award” (International Brands Conference, 2011)
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18
Expansion started with Saudi Arabia and Egypt, focus on underpenetrated markets
Saudi Arabia• Population of 30.2 mn growing at CAGR of 1.8%
between 2007-2013
• US$ 924bn GDP growing at c.7%
• c.US$ 1.9 bn confectionary market
• c.7% market share in biscuit market
• c. 2% market share in chocolate market
Established in 2000
42% Yıldız Holding, 58% local partner Biscuit, chocolate and cake production
Capacity: 43k tons
c. 100 trucks reaching c. 10,000 sales
points
(US$ mn) 2013 2014E
Net sales 91 100
EBITDA margin 6% 9%
(US$ mn) Marketsize
Growth † Per capitaconsumption ††
Chocolate 993 9.0% 1.9
Biscuits 717 5.6% 3.7
FMC (manufacturing)
4 Platform for further growth
Egypt• Population of 87 mn growing at CAGR of
1.7% between 2007-2013
• US$ 568bn GDP growing at c.3%
• c.US$ 1.4 bn confectionary market
• Less than 1% market share in biscuitmarket
Established in 2007
46% Yıldız Holding, 54%local partner
Biscuit production
Capacity: 27.5k tons
(US$ mn) 2013 2014E
Net sales 36 45
EBITDA margin 18% 12%
(US$ mn) Marketsize
Growth † Per capitaconsumption ††
Chocolate 408 5.3% 0.4
Biscuits 957 9.4% 2.9
Established in 2010
100% Yıldız HoldingBiscuit sales
Manages 12 distributors andreaches 20,000 sales points
Hi Food (manufacturing) Ülker Egypt (sales)
Potentialexpansion areas
Plans to expandbusiness in under-
penetratedmarkets with highgrowth potential
Target regions:Middle East, North
Africa, and EasternEurope
† 200 8-20113 CAGR-Volume†† Kg per capita - 2013
Source: Euromonitor Source: Euromonitor
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19
• Leading premium chocolate producer with significant brandequity worldwide
• Entry into China, S.Korea, Indonesia, S. Arabia and Turkeysince the acquisition
• Yet to reach its potential in terms of growth and margins by
• restructuring the company,
• investing in store expansion, especially in the FarEast,
• closing down inefficient stores,
• reshuffling the product portfolio,• Godiva plans to open 50 new stores per annum and reach
US$1.0 bn in revenues and US$120mn EBITDA in 2016
5 Godiva – Hidden value
Key figures 2008 2013 2014E
# of stores 432 439 463
Revenues US$ 490mn US$ 704mn US$ 769mn
EBITDA - US$ 49mn US$ 56mn
• Owns and operates 439 retail boutiques in 84 countriesas of 2013 year end
• Available via over 10,000 specialty retailers
Geographical presence of Godiva as of 2013 year end
195 stores inthe US
&Canada
35 stores inEurope
209 stores inAsia
Godiva store in Harrods, London
Godiva store in Denver, the US
Year U.S. Japan China Pac Rim Belgium Others2008 262 99 - 32 8 212013 195 128 46 35 5 302014YE 199 135 54 38 5 32
Geographical store evolution
Acquired by YıldızHolding in 2008
Ülker stake inGodiva - 19%
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20
Experience in managinginternational operations
• Operates in 6 sectors with TL15.7 bn gross sales in 2013
• The largest branded food group in CEEMEA
• 58 production facilities, 300 brands in 40 categories including biscuits, chocolate, confectionary, margarine & liquid oils,culinary products, dairy products, beverages, fruit juice and frozen foods
• Benefits from its diversified business portfolio - significant distribution and purchasing synergies across the portfolio
• Increased interests in food retailing with strategic stakes in top three discounters - Bizim, Şok and Dia accounting for 7%of organized food retail sales in Turkey
6 Yıldız Holding: Strong & supportive parent
Food &Beverages
Packaging
Finance
Retail
Real Estate
PersonalCare
Best recognized food brand#1 in biscuits & chocolates#2 in dairy products#1 in edible oils and fats#1 in overall baby food#1 in culinary products
Premium segmentchocolate produceracquired in 2008
In excess of 200k sales pointsnationwidec.90% coverage, second best afterCoca-Cola Icecek
Diversified product portfolioholding strong market
shares
JVs with leadinginternational playersSole and first brand soughtout for co-branding
Turkey's first food companyto establish a nationwidedistribution network
Bizim and Şok -7% of Ülker’s net sales
as of 1H14
Dia - new accountentered after the
acquisition in July2013
† 2012 revenues
Leading internationalbaked snacks produceracquired in 2014
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21Beyond 2016
Long-term ambitions
Productivity
Brandinvestments
• Boost product quality through operational efficiency
• Further efficiency and productivity in distribution
channels• Meet/beat international benchmarks
• Ensure the continuity of brand investments
• Offer powerhouse brands to consumers atreasonable prices
• Increase market share
Growth
• Increase operating profit by higher sales volumesand revenues
• Become a strong regional player
• Further efficiency and productivity in distributionchannels
• Growth through acquiring national champions
• Sustain best corporate governance practicesInvestor level
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22
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Financials
4. Appendix
2
7
23
28
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23Increasing sales
Sales volume by category
† Excluding non-confectionery sales volume†† Following acquisition of Ülker Çikolata in 2011, chocolate operations have been consolidated in figures from 4Q2011 onwards
Net sales by category
Consolidated sales volume was down by 4.0% in 3Q14and was up by 1.5% in 9M14, with decline in 3Q mainlyattributable to:
• Low exports volume
Consolidated sales revenue up by 3.1% in 3Q14 & 7.3%in 9M14, the growth in 3Q was primarily as a result of:
• Price increase & downsizings in Chocolate andBiscuits
• Lower exports limited the growth
• Lack of revenue from divested sales companies
• Like for like basis, revenue growth of8.3% (including sales companies)
Tonnes TL mn
114.686
110.095
349.470
354.670
652 673
1,978 2,123
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24
75,1 72,9
232,9 235,4
3Q13 3Q14 9M13 9M14
144,6 125,5
454,8 441,4
3Q13 3Q14 9M13 9M14
Increasing margins
Gross profit and margin % EBITDA and margin % ***
18.7% 23.0%
TL mn TL mn
Ease in gross profit in 3Q14 is due to:
• High input costs
• Divesture of sales companies
*** Excluding other income/(expense) from operations
EBITDA was down to TL 73 mn in 3Q14 as a result of:
• High input costs
• Tight opex management
• Price increases limited the margin loss
20.8%22.2% 10.8% 11.8% 11.1%11.5%
25k l d d b
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25Working capital and net debt
Average working capital days Net debt
• Net debt as of 3Q14: TL 492 mn
• Net debt to EBITDA (LTM) is 1.55x
• Financial debt
- US$ denominated due to company strategy
- Maturity breakdown as of 9M14:
- Short term 100%- Long term –
Cash & cash equivalents breakdown based on currency
- TL: 6 mn
- US$: 335 mn †
- Euro: 2 mn †
• Net working capital was TL 413 mn as of 3Q14 and TL325 mn at the end of 2013
• Working capital requirement over sales ratio was14.3% in 3Q14 (LTM)
• FX short position of TL 447 mn
† Amounts expressed in Turkish Lira “TRY”
Average WC days 2011 2012 2013 3Q13 3Q14
Trade receivables 87 84 76 80 77
Inventory 38 34 33 34 36
Trade payables 79 81 77 73 68
WC - days 46 37 32 41 45
Net debt - TL mn 2012 2013 3Q14
Financial debt 1.501 1.260 835
Short term financial debt 614 1.250 835
Long term financial debt 887 10 -
Non-trade receivables from relatedparties
131 3 0
Cash and cash equivalents 1.268 1.164 343
Net debt 102 92 492
26N d b
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26Net debt
Net debt Development
† Amounts expressed in Turkish Lira “TRY”
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1. Ülker: Who we are ?
2. Key Investment Highlights
3. Financials
4. Appendix
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7
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28Fi i l
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Income statements (TL mn) 2012 2013 Growth 13-12 9M13 9M14 Growth 9M14-9M13
Sales Revenue 2.343 2.748 17% 1.978 2.123 7%Cost of Sales (1.838) (2.115) 15% (1.524) (1.682) 10%
Gross Profit 505 633 25% 454 441 (3%)Gross Profit Margin % 21,6% 23,0% 23,0% 20,8%
OPEX (332) (370) 11% (178) (180) (5%)Marketing, Sales and Distribution Expenses (227) (263) 16% (177) (170) (4%)General Administration Expenses (96) (94) (2%) (73) (67) (8%)Research Expense (9) (13) 51% (10) (10) 4%
EBIT 173 263 52% 195 194 -EBIT Margin 7,4% 9,6% 9,8% 9,1%
Depreciation (48) (52) 8% (39) (41) 7%
EBITDA 221 315 43% 233 235 1%EBITDA Margin 9,4% 11,5% 11,8% 11,1%
Other Operating Income / Expense* & Inc/ExpFrom Inv. Activities 73 256 251% 145 88
Finance Incomes / Expenses* (3) (240) n.m. (148) (95)
Profit Before Taxation 244 279 15% 191 187
Tax Charge From Continued Operations (48) (52) 8% (39) (20)
Net Profit (Equity holders of the parent) 167 189 13% 123 155 27%
Financials
Consolidated income statement
29Financials (cont’d)
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29Financials (cont d)
Consolidated balance sheet
Balance sheet (TL mn) 2013 3Q14
Current Assets 2.129 1.413Cash and cash equivalents 1.164 343Financial investments 1 1Trade receivables 649 645
- Trade Receivables from related Parties 447 606
- Other Trade Receivables 202 39Other receivables 20 1- Non-trade Receivables 3 0- Other short-term Receivables 17 0
Inventories 198 256Other current assets 96 168
Non-Current Assets 1.033 1.051Financial investments 465 467Investment properties 10 10Tangible assets 533 546Intangible assets 1 1Deferred tax assets 4 9
Other non-current assets 21 18
Total Assets 3.162 2.463
Balance sheet (TL mn) 2013 3Q14
Current Liabilities 1.827 1.305Financial liabilities 1.250 835Derivative financial liabilities - -Trades payables 508 413
- Trade payables to related parties 273 212- Other trade payables 235 201
Other payables 1 1Corporate tax payable 11 13Debt provisions 23 17Employee benefits 18 18Other current liabilities 16 7
Non-Current Liabilities 67 54Financial liabilities 10 0Employee benefits 23 26Deferred tax liabilities 34 28Other non-current liabilities 0 0
Shareholders' Equity 1.268 1.104Share capital 342 342Inflation adjustments to share capital 108 108Valuation funds 260 262Restricted reserves 126 150
Actuarial gain / loss (1) 0Retained earnings 106 2Net income for the year 189 155Non-controlling interest 138 85
Total Liabilities and S.E. 3.162 2.463
30Cost Structure
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30Cost Structure
Components of Cost of Goods Sold (Consolidated)
RawMaterial
65%
Other35%
Raw MaterialBreakdown
Wheat20%
Sugar15%
Palm Oil15%
Cacao15%
• Palm Oil and Cacao are imported in USD terms• Wheat and Sugar is procured from domestic sources in TL terms
31Price Performance of Cocoa & Palm Oil
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3Price Performance of Cocoa & Palm Oil
Price of 2,822 on 21.10.2014Cocoa
Palm Oil
Source: Bloomberg, inUSD
Price of 2,235 on 21.10.2014
32Disclaimer
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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”) • 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 differmaterially from those expressed in these materials. Many of these risks and uncertainties relate to factors that arebeyond Ülker’s ability to control or estimate precisely, such as future market and economic conditions, the behavior ofother market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savingsand 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 dateof this presentation. Ülker 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 or agreement of Ülker
• The figures in this presentation are rounded to provide a better overview. The calculation of deviations is based onfigures including fractions. Therefore rounding differences may occur
• Neither Ülker nor any of its managers or employees nor any other person shall have any liability whatsoever for any lossarising from the use of this presentation
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