September 2014

Management Presentation
September 2014
1
1. Ülker: Who we are ?
2
2. Key Investment Highlights
7
3. Financials
23
4. Appendix
28
We 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 with
spread 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% of
revenues
2
Production Facilities
Istanbul
Gebze
Ankara
Gebze
Topkapı, Istanbul
Biscuit & cracker
Chocolate
Karaman
Established in 1991
Established in 1997
Capacity: 85.5k tons/year
Capacity: 194k
tons/year
41k sqm closed area
68k sqm closed area
Ankara
Biscuit
Established in 1969
Capacity: 126k tons/year
Karaman
Silivri, Istanbul
Key figures – TL mn
Mcap as of 09/30/2014
Revenues (LTM)
9M 2014
2,893
EBITDA (LTM)
Established in 1992
Established in 1986
Capacity: 123k tons/year
Established in 1995
Capacity: 45k
tons/year
Capacity: 30k
tons/year
27k sqm closed area
Non-Ülker branded products
The largest biscuit
manufacturing facility in the
Middle East
102k sqm closed area
75% owned by Ülker
Shareholding Structure (As of 30.09.2014)
11.0%
k tons
TL mn †
% share †
Biscuits
192
805
38%
Chocolate
113
1,036
49%
Cake
50
257
12%
Sales 9M14
Cake
12k sqm closed area
318
EBITDA margin % (LTM)
86k sqm closed area
Biscuit, cake, cracker &
chocolate
Chocolate,
chocolate
covered biscuit
5,164
Hadımkoy, Istanbul
† Excludes other non-confectionary sales of TL 25 mn
Free Float
43,0%
Yıldız
Holding &
Subsidiaries
& Family
Members
57,0%
† † Yıldız Holding is Turkey’s leading food and beverages group
with annual gross sales of TL15.7 bn as of 2013
... and the “Best Recognized” FMCG brand...
Best Recognized
Brands
Consistently
ranks as one
of the best
recognized
brands in
Turkey
#1
3
Brand One Feels
Close To
†
#2
The “Brand
Award”
The Best in the Sweet
and Salty Category
#3
(International
Brands
Conference, 2011)
(Silver Effie Award,
Ülker Rondo, 2011)
#4
Most
Recognized
Company
(AC Nielsen, 2nd
place, 2010)
#5
• Ülker has always been the “most recognized”
brand and “closest to consumers” ††
• Strength of the brand is proven by national and
international awards
Source: ACNielsen 2011
Long lasting
relationships
with end users
enhance
brand
perception
• Highly-popular sub-brands are in the market for
2-3 decades
† Arçelik is a household durable goods brand
• Ülker brand essence and campaign theme:
“Happy moments with Ülker”
...with dominant positions in growing markets
Market leader in main categories
Growth in Biscuit (Volume)
BISCUITS
CHOCOLATES
CAKES
290K Tons
170K Tons
79K Tons
Market Share (9M14)
(Volume based)
46%
46%
33%
Market Position
#1
#1
#2
Market Size † (9M14
LTM)
# 1 in Petit Beurre Segment
Biscuit
# 1 in Chocolate Covered Sandwich Segment
# 1 in Special Biscuits Segment
# 1 in Creamy Biscuits Segment
Chocolate
# 1 in Sandwich Biscuits Segment
Top 3 in Chocolate Covered Segment
#1 in Spread Chocolate Segment
Cake
#1 in Solid Chocolate Segment
† Retail market
#1 in Cake Segment
Growth in Chocolate (Volume) *
4
Milestones of our success
Revenues
Mcap†
1944

Established as a small scale family run bakery
1996

Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange
2003

Ülker Gıda merged under its own title with Anadolu Gıda
2006

Appointment of Murat Ülker as Chairman of Ülker and Yıldız Holding: new generation & new vision
2007

Ülker Gıda changed its name to Ülker Bisküvi: Emphasis on core business
2008

Acquisition of 25% stake in the premium chocolatier brand Godiva
US$ mn
2009
2010


2011
2012
2013
*1,340
2,266
2014
†Mcap as of year-end
Ltm Revenue and September 30th 2014 closing Mcap

Ülker Bisküvi investment: US$214 mn
Rapid growth led to complex corporate structure – 4 sales companies, 4 production
companies and minority stakes in 7 non-core assets
2011 – 2013: Restructuring at all fronts
 New top management on board
 Gathering all chocolate and cake businesses under Ülker Bisküvi
 Disposal of 6 non-core assets. Reduced Godiva stake to 19% - recorded TL 100mn profit
 Simplified traditional channel distribution – merger of production companies with sales companies;
consolidation of all sales under new sales company Horizon
 SKU optimization – 502 SKUs in 2010 vs. 330 SKUs in 2013
 Cancellation of privileged shares and founder shares
 New dividend policy – minimum 70% of distributable income
 Free Float reached 40% after Yıldız Holding’s block sale
2014:
 Ülker Biskuvi acquired 30% minority stake in Biskot
 Divested stakes in Istanbul Gıda, Birleşik Dış Ticaret and Rekor
5
6
1. Ülker: Who we are ?
2
2. Key Investment Highlights
7
3. Financials
23
4. Appendix
28
Key investment highlights
7
Top-line growth driven by...
1

Growing market - young population with increasing purchasing power spending more on packaged foods
 Ülker - Regaining market share through optimization of SKU portfolio, category expansions and new product launches,
unlocking distribution power and new account additions
Further margin improvement to be realized on the back of...
2

Simplified and efficient distribution network
 Effective OPEX management
 Increasing share of higher margin chocolate sales
High barriers to entry
3
is the best
recognized FMCG
brand in Turkey
 c.50%
market share across the main categories
 Strong brand equity in Turkey and in neighboring
countries
 Access
to an exclusive distribution network reaching
~200,000 sales points
 Largest production capacity in the domestic market
Targeting to become a regional player in markets with high growth potential
4
Geographical expansion already on the way – Saudi Arabia and Egypt
 Seeking further international opportunities in high growth markets

Godiva: Hidden value
5

US$750 mn revenue business - Global premium chocolate brand with significant brand equity worldwide
 Investing in store expansion, especially in the Middle East, China, Japan, Korea and Indonesia
Yıldız Holding: Strong & supportive parent
6

Biggest food and beverage group with TL 15.7bn turnover with 58 production facilities and 300 brands in 40 categories
 Strategic shareholdings in the leading food-retail discounters (Şok and Dia†) and cash & carry wholesaler (Bizim) in Turkey
 Ülker - Benefiting from Yıldız Holding’s unique distribution network, procurement power and experience in international markets
1
Favorable demographics and young target population 8
Sizeable market with a growing population
Turkey has one of
the youngest and
fastest growing
populations
Attractive target
consumer group
CAGR 2007- 2012
Population
1.7%
29
Malaysia
Youngest population in Europe
17%
65+
Turkey
1.4%
76
Indonesia
1.3%
247
7%
12%
55-64
8%
59%
S.Af rica
1.2%
14%
45-54
Brazil
UK
France
0.9%
0.7%
0.5%
199
63
15%
35-44
Turkey median
29 yrs
14%
Netherlands
0.5%
17
Czech Rep. 0.3%
11
15-24
0-14
12%
41%
17%
16%
0.2%
144
Greece
0.2%
11
82
Total population in millions
EU-27
Source: Turkstat, Eurostat
59%
25%
39
Russia
Source: World Bank, Turkstat
17%
61
0.5%
Germany -0.1%
14%
66
Italy
0.2%
11%
European median
41 yrs
25-34
Poland
41%
51
Turkey
1
Spending increases in tandem with GDP per capita
Biscuits consumption vs. GDP per capita
Kg per capita
Turkey’s
consumption of
biscuits and
chocolate stands
at 3.5 kg and 1.9
kg per capita,
respectively
Increasing GDP
per capita
expected to fuel
biscuit and
chocolate
consumption
Chocolate consumption vs. GDP per capita
Kg per capita
12.0
UK
12.0
9.0
Netherlands
10.0
R2=0.60
8.0
USA
Brazil
5.0
6.0
4.0
France
Russia Turkey '18
Turkey '12 Croatia
4.0
Saudi Arabia
Hungary
Turkey '07
Poland
2.0
Egypt Malaysia
S.Af rica
Indonesia
0.0
0
10,000
20,000
30,000
Germany
8.0
6.0
Italy
6.0
UK Germany
UK
8.0
10.0
7.0
Germany
US$ per capita
40,000
50,000
60,000
Russia
Poland
Russia
Turkey '18
Poland
Croatia Turkey '18
Hungary
4.0
3.0
Italy
Croatia
Italy
Hungary
Turkey '12
'12
2.0 Turkey
Brazil
Saudi Arabia
2.0 Turkey '07
Brasil
Saudi Arabia
1.0Turkey '07 S.Af rica
S.Af rica
Indonesia
Indonesia
Malaysia
Egypt Malaysia
0.0
0
10,000
10,000
20,000
20,000 30,000
30,000 40,000
40,000
Source: Eurostat
2
R =0.54
Netherlands
USA
France
Netherlands
France
USA
US$ per capita
50,000
50,000
Source: Eurostat
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
US$20,000† GDP per capita target for Turkey by 2018 implies c.5% CAGR in biscuits consumption...
...and c.10% CAGR in chocolate consumption
† IMF estimate
60,000
60,000
9
1
Regaining market share with portfolio management...
Streamlined product portfolio and increased brand investment for improved sales
# of SKU and sales
570
10,0
500
400
300
4,8
200
100
330
7,1
330
330
6,0
8,3
8,8
4,0
2,7
2,0
0
Biscuit
8,0
370
II
0,0
2010
2011
# of SKU
2012
2013
9M14(LTM)
Sales per SKU (TL mn)
• 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 La La’’ (launched in March 2014)
- New Wafer –Dido Black (launched in August 2014)
- New chocolate- Bi Rüya (launched in September 2014)
>50%
Chocolate
600
Cake
Results of portfolio
restructuring
reflected as
increased sales
performance
Market Share Development, Volume Based†
Source: ACNielsen, Euromonitor
† Retail market, Market shares may not add up to 100% due to rounding
II
II
10
1
... and unlocking distribution power ...
11
Accessibility is a key success factor
Traditional retail
dominates the
biscuits and
chocolate market
Ülker benefits from
Yıldız Holding’s
wide distribution
network throughout
Turkey:
• Horizon in
traditional retail
665 km
Marmara
30% sales points
35% of total sales
Black Sea
11% sales points
10% of total sales
Central Anatolia
15% sales points
20% of total sales
Aegean
17% sales points
10% of total sales
Mediterranean
15% sales points
10% of total sales
• Pasifik in
organized retail
90%
Eastern Anatolia
6% sales points
8% of total sales
200k
S. Eastern Anatolia
6% sales points
7% of total sales
US$
100
1,565 km
Ülker domestic sales by channel
Organized retail
35%
Traditional
retail
65%
c.90% nationwide coverage widest after beverage &
tobacco companies
Reaching ~200k sales points
throughout Turkey
• 175k in traditional
channel through Horizon
• ~20k bullets in
organized channel
through Pasifik
Typical distribution network
in a similar FMCG network
has a replacement value of
c. US$100mn and requires
1,300 headcount
1
... through newly established exclusive distribution
12
Horizon to consolidate traditional channel. Distributors sell solely Yıldız Holding brands
•
Biscuits
•
Chocolates
•
3 categories
65 Brands
330 SKUs
40 categories
300 Brands
•
Baby products
•
Margarine and liquid oils
•
Sugar candy & gum
•
•
Personal care
Breakfast items
•
Drinks
•
60%
Ülker products – c.60% in
terms of value and c.35% in
terms of volume in Horizon
portfolio
30%
Delivering c. 30% shelf space
of a small grocery - 20% with
only Ülker products –
excluding tobacco and alcohol
Cakes
Light and diabetic
products
•
Culinary
Brands
Lower distribution cost
Increased selling power with
enhanced product portfolio
Eliminating internal competition
between distributors
2
Simplified route to market improving margins
13
Traditional channel - Efficiency gains from restructuring
Before
Simplified and
consolidated route
to market creates
cost efficiencies
paving the way for
further margin
improvement
Previous
Structure:
Current
Other Food &
Beverage Products
Distributors
Completed New
Structure:
Other Food &
Beverage Products
Domestic
Traditional
Channel
Biscuits
Atlantik
(Ülker brand)
Chocolates
Atlas
(Ülker brand)
Cakes
Atlas
Biscuits
Distributors
Chocolates
Horizon †
(New Sales
Company)
Distributors
Cakes
• Multi-channel route to traditional market
• Limited to single category sales
• 235 distributors
• # of points visited: 140k
• % of invoice issued by visit: 75%-80%
Decreased logistics expense
Domestic
Traditional
Channel
• 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%
More efficient route to sales points
Better and faster execution
capability
Enhanced distribution profit
Stronger distributors with higher
nominal gains
† Owned by Yıldız Holding, took over all traditional sales activities of Ülker as well as Yıldız Holding’s other companies’ sales activities
2
Growing chocolate segment favoring margins
Increasing share of higher margin chocolate segment
Chocolate sales and total share in revenue†
Stronger growth in chocolate sales
15%
Growth between 2013 and 2012
7%
Growth between 9M14 and 9M13
Gross profit margin % - 2013††
25%
48,6%
23%
22%
49,2%
20%
Chocolate
share in
total
revenue
2012
Chocolate
share in
total
revenue
2013
Biscuit
Chocolate
Cake
Overall
† Chocolate business consolidated in 4Q2011 following the acquisition of Ülker Çikolota
† † after depreciation
Overall margin benefits from high
growth chocolate category
14
2
Measures reflected in margins, still room to go…
Components of EBITDA margin improvement
15
2
Long Term Guidance
16
EBITDA growth to surpass sales growth
Sales 2013-2016 (TL mn)
1.000
4.500
Int. Growth
2016E Sales
83
399
Chocolate
volume up 6
to 8%
annually
Biscuits and
cakes
volume up 4
to 6%
annually
Average
price to be
increased by
± 2% vis-avis inflation
271
2.748
CAGR 18%
2013 Sales
Biscuits
Chocolates
Cakes
By 2016, Ülker is expected to surpass TL4.5bn net sales (including inorganic
growth) with an EBITDA margin of above 15%
EBITDA margin 2013-2016
1.8%
0.6%
15.0%
1.0%
11.5%
Capex: 2.53.0% of net
sales
Reductionin Category
Category
BetterCost
cost &
&
20132013
EBITDA Reduction
Mix Better
in
sales
mix
effect
EBITDA
OPEX
margin
sales
Effect/New
OPEX
discounts
/ New
margin %
management
discounts
Launches
management
launches
2016
2016E
EBITDA
EBITDA
margin
%
margin
Distribute
minimum 70%
of
distributable
income
3
High barriers to entry
17
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 equity
with established
market positions
The “Brand Award”
(International Brands Conference, 2011)
Most Recognized
Company
(AC Nielsen, 2nd
place, 2010)
The Best in the Sweet and Salty Category
(Silver Effie Award, Ülker Rondo, 2011)
High barriers
to entry
•
Extensive and exclusive distribution network - the most relevant entry barrier in the
market
•
Reaching ~200,000 points of sales throughout Turkey
•
6 facilities in 4 cities, representing the largest production capacity in the domestic
market
•
Ankara biscuit factory - the largest biscuit manufacturing facility in the Middle East
•
Geographically diversified production base – competitive advantage in route to
market
Exclusive
distribution
Largest & spreadout production
capacity in the
domestic market
4
Platform for further growth
18
Expansion started with Saudi Arabia and Egypt, focus on underpenetrated markets
Plans to expand
business in underpenetrated
markets with high
growth potential
Target regions:
Middle East, North
Africa, and Eastern
Europe
Saudi Arabia
•
Egypt
Population of 30.2 mn growing at CAGR of 1.8%
between 2007-2013
•
Population of 87 mn growing at CAGR of
1.7% between 2007-2013
•
US$ 924bn GDP growing at c.7%
•
US$ 568bn GDP growing at c.3%
•
c.US$ 1.9 bn confectionary market
•
c.US$ 1.4 bn confectionary market
•
c.7% market share in biscuit market
•
•
c. 2% market share in chocolate market
Less than 1% market share in biscuit
market
(US$ mn)
Market
size
Growth†
Per capita
consumption††
(US$ mn)
Market
size
Growth†
Per capita
consumption††
Chocolate
993
9.0%
1.9
Chocolate
408
5.3%
0.4
Biscuits
717
5.6%
3.7
Biscuits
957
9.4%
2.9
Source: Euromonitor
Source: Euromonitor
Ülker Egypt (sales)
Hi Food (manufacturing)
FMC (manufacturing)
 Established in 2000
 Established in 2007
 Established in 2010
 42% Yıldız Holding, 58% local partner
 46% Yıldız Holding, 54%
local partner
 100% Yıldız Holding
 Biscuit production
 Manages 12 distributors and
reaches 20,000 sales points
 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%
† 2008-20113 CAGR-Volume
†† Kg per capita - 2013
 Biscuit sales
 Capacity: 27.5k tons
Potential
expansion areas
(US$ mn)
2013
2014E
Net sales
36
45
18%
12%
EBITDA margin
5
Godiva – Hidden value
Acquired by Yıldız
Holding in 2008
Ülker stake in
Godiva - 19%
•
Leading premium chocolate producer with significant brand
equity worldwide
•
Entry into China, S.Korea, Indonesia, S. Arabia and Turkey
since the acquisition
•
Yet to reach its potential in terms of growth and margins by
•
•
restructuring the company,
•
investing in store expansion, especially in the Far
East,
•
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$120mn EBITDA in 2016
19
Geographical presence of Godiva as of 2013 year end
195 stores in
the US
&Canada
35 stores in
Europe
209 stores in
Asia
•
Owns and operates 439 retail boutiques in 84 countries
as of 2013 year end
•
Available via over 10,000 specialty retailers
Key figures
2008
2013
2014E
# of stores
432
439
463
Revenues
US$ 490mn
US$ 704mn
US$ 769mn
-
US$ 49mn
US$ 56mn
EBITDA
Geographical store evolution
Godiva store in Harrods, London
Year
2008
2013
2014YE
Godiva store in Denver, the US
U.S.
262
195
199
Japan
99
128
135
China
46
54
Pac Rim Belgium
32
8
35
5
38
5
Others
21
30
32
6
Yıldız Holding: Strong & supportive parent
Bizim and Şok -7%
of Ülker’s net sales
as of 1H14
Dia - new account
entered after the
acquisition in July
2013
•
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
Best recognized food brand
#1 in biscuits & chocolates
Diversified product portfolio
#2 in dairy products
holding strong market
#1 in edible oils and fats
shares
#1 in overall baby food
#1 in culinary products
Retail
Food &
Beverages
Experience in managing
international operations
Real Estate
JVs with leading
international players
Sole and first brand sought
out for co-branding
Personal
Care
Premium segment
chocolate producer
acquired in 2008
Leading international
baked snacks producer
acquired in 2014
Packaging
Finance
† 2012 revenues
20
Turkey's first food company
to establish a nationwide
distribution network
In excess of 200k sales points
nationwide
c.90% coverage, second best after
Coca-Cola Icecek
Beyond 2016
21
Long-term ambitions
Growth
Productivity
Brand
investments
Investor level
•
Increase operating profit by higher sales volumes
and revenues
•
Become a strong regional player
•
Further efficiency and productivity in distribution
channels
•
Growth through acquiring national champions
•
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 at
reasonable prices
•
Increase market share
•
Sustain best corporate governance practices
22
1. Ülker: Who we are ?
2
2. Key Investment Highlights
7
3. Financials
23
4. Appendix
28
Increasing sales
23
Net sales by category
Sales volume by category
Tonnes
TL mn
354.670
1,978
349.470
110.095
114.686
Consolidated sales volume was down by 4.0% in 3Q14
and was up by 1.5% in 9M14, with decline in 3Q mainly
attributable to:
•
2,123
673
652
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 and
Biscuits
•
Lower exports limited the growth
•
Lack of revenue from divested sales companies
Low exports volume
•
Like for like basis, revenue growth of
8.3% (including sales companies)
† Excluding non-confectionery sales volume
†† Following acquisition of Ülker Çikolata in 2011, chocolate operations have been consolidated in figures from 4Q2011 onwards
Increasing margins
24
EBITDA and margin % ***
Gross profit and margin %
TL mn
TL mn
22.2%
18.7%
23.0%
20.8%
454,8
144,6
125,5
3Q13
3Q14
9M13
11.5%
10.8%
11.8%
11.1%
232,9
235,4
9M13
9M14
441,4
9M14
75,1
72,9
3Q13
3Q14
***Excluding
Ease in gross profit in 3Q14 is due to:
•
High input costs
•
Divesture of sales companies
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
Working capital and net debt
25
Net debt
Average working capital days
•
•
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 working capital was TL 413 mn as of 3Q14 and TL
325 mn at the end of 2013
Working capital requirement over sales ratio was
14.3% in 3Q14 (LTM)
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
-
131
3
0
1.268
1.164
343
102
92
492
Non-trade receivables from related
parties
Cash and cash equivalents
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
•
FX short position of TL 447 mn
- US$: 335 mn†
- Euro: 2 mn†
† Amounts expressed in Turkish Lira “TRY”
Net debt
26
Net debt Development
† Amounts expressed in Turkish Lira “TRY”
27
1. Ülker: Who we are ?
2
2. Key Investment Highlights
7
3. Financials
23
4. Appendix
28
Financials
28
Consolidated income statement
Income statements (TL mn)
2012
2013
Growth 13-12
9M13
9M14
Growth 9M14-9M13
2.343
(1.838)
2.748
(2.115)
17%
15%
1.978
(1.524)
2.123
(1.682)
7%
10%
505
21,6%
633
23,0%
25%
454
23,0%
441
20,8%
(3%)
OPEX
Marketing, Sales and Distribution Expenses
General Administration Expenses
Research Expense
(332)
(227)
(96)
(9)
(370)
(263)
(94)
(13)
11%
16%
(2%)
51%
(178)
(177)
(73)
(10)
(180)
(170)
(67)
(10)
(5%)
(4%)
(8%)
4%
EBIT
EBIT Margin
173
7,4%
263
9,6%
52%
195
9,8%
194
9,1%
-
Depreciation
(48)
(52)
8%
(39)
(41)
7%
221
9,4%
315
11,5%
43%
233
11,8%
235
11,1%
1%
73
256
251%
145
88
(3)
(240)
n.m.
(148)
(95)
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
Sales Revenue
Cost of Sales
Gross Profit
Gross Profit Margin %
EBITDA
EBITDA Margin
Other Operating Income / Expense* & Inc/Exp
From Inv. Activities
Finance Incomes / Expenses*
Profit Before Taxation
27%
Financials (cont’d)
29
Consolidated balance sheet
Balance sheet (TL mn)
2013
3Q14
2.129
1.164
1
1.413
343
1
Trade receivables
649
645
- Trade Receivables from related Parties
447
606
- Other Trade Receivables
Other receivables
- Non-trade Receivables
- Other short-term Receivables
Inventories
Other current assets
202
20
3
17
198
96
39
1
0
0
256
168
Non-Current Assets
Financial investments
Investment properties
Tangible assets
Intangible assets
Deferred tax assets
Other non-current assets
1.033
465
10
533
1
4
21
1.051
467
10
546
1
9
18
Total Assets
3.162
2.463
Current Assets
Cash and cash equivalents
Financial investments
Balance sheet (TL mn)
2013
3Q14
1.827
1.250
508
273
235
1
11
23
18
16
1.305
835
413
212
201
1
13
17
18
7
67
10
23
34
0
54
0
26
28
0
Shareholders' Equity
Share capital
Inflation adjustments to share capital
Valuation funds
Restricted reserves
Actuarial gain / loss
Retained earnings
Net income for the year
Non-controlling interest
1.268
342
108
260
126
(1)
106
189
138
1.104
342
108
262
150
0
2
155
85
Total Liabilities and S.E.
3.162
2.463
Current Liabilities
Financial liabilities
Derivative financial liabilities
Trades payables
- Trade payables to related parties
- Other trade payables
Other payables
Corporate tax payable
Debt provisions
Employee benefits
Other current liabilities
Non-Current Liabilities
Financial liabilities
Employee benefits
Deferred tax liabilities
Other non-current liabilities
Cost Structure
30
Components of Cost of Goods Sold (Consolidated)
Cacao
15%
Other
35%
•
•
Raw
Material
65%
Wheat
20%
Raw Material
Breakdown
Palm Oil
15%
Palm Oil and Cacao are imported in USD terms
Wheat and Sugar is procured from domestic sources in TL terms
Sugar
15%
Price Performance of Cocoa & Palm Oil
31
Price of 2,822 on 21.10.2014
Cocoa
Palm Oil
Price of 2,235 on 21.10.2014
Source: Bloomberg, in
USD
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 differ
materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are
beyond Ülker’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 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 on
figures 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 loss
arising from the use of this presentation
32