Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Q2 2022 Earnings Presentation
32 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Aug 18, 2022
Slide 1: Investor Presentation 2nd Quarter 2022
Investor Presentation 2ND Quarter 2022 18 August 2022 1
Slide 2: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 2
Slide 3: A regional power with unique performance
Despite heavy challenges we achieved outstanding results in 22 Market leader with #1 in macro 35% in snacking snacking business category A regional power with unique performance 20,0% consolidated 118,2% EBITDA topline margin growth 3
Slide 4: Consolidated performance highlights
22 Consolidated performance highlights Revenue 11.877 MTL 2.379 MTL EBITDA Growth + 118,2% Growth + 139,6% Gross 3.547 MTL Net Debt/ 2022: 3,05x Profit Growth + 125,4% EBITDA 2021: 3,54x 29,9% 2022: 550 MTL Gross Operating Margin Growth + 90bps Free Cash 2021: (11) MTL Flow 4
Slide 5: Strong productivity on supply chain and sales operations
Strong productivity on supply chain and sales operations • Continue to invest in our brands • Strong momentum in innovations under key brands McVities & Godiva • Effective & balanced channel mix management • High sales performance in modern channel sales • Successful sizing and pricing activities Ou
Slide 6: Macro View
Macro View Q2 Highlights Downturn ahead, Downside Risks Dominate Global supply issues continue mainly due to Russia/Ukraine crises (Energy & Commodity) Worldwide battle against inflation Global food prices have stabilized in recent months but remained much higher than in 2021 Turkey & KSA agreed to
Slide 7: Business momentum continued in the first half
Our business momentum continued in the first half, with triple- digit sales and EBITDA growth H1'22 H1'21 % Volume (Ton) 337.447 315.485 7,0% Revenue 11.877.060 5.442.824 118,2% Gross Profit 3.546.800 1.573.696 125,4% Gross Profit Margin 29,9% 28,9% 0,9 ppt EBITDA 2.378.996 993.008 139,6% EBITDA Mar
Slide 8: Our success has been awarded locally and globally
Our success has been awarded locally and globally We have been awarded the Top Congratulations to Mete Buyurgan, Among Turkey's Happiest Employers certificate, one of the pladis Turkey, Eastern Workplace survey leading certification Europe and Central Asia Managing sponsored by Capital programs. As
Slide 9: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 9
Slide 10: Consolidated performance highlights
22 Consolidated performance highlights Revenue 5.991 MTL 1.134 MTL EBITDA Growth + 125,3% Growth + 154,0% Gross 1.698 MTL Net Debt/ 2022: 3,05x Profit Growth + 138,7% EBITDA 2021: 3,54x 28,3% 2022: 260 MTL Gross Operating Margin Growth + 160bps Free Cash 2021: 206 MTL Flow 10
Slide 11: Strong exports, new launches and synergy products drove the quarter
Strong exports, new launches and investing in synergy products were the drivers of this successful quarter Snacking Sales Volume (Ktons) Snacking Sales Value (Mtl) 131 138 2.542 5.741 155 420 10 12 51 53 1.332 2.819 70 74 1.055 2.502 Q2'21 Q2'22 Q2'21 Q2'22 BISCUIT CHOCOLATE CAKE BISCUIT CHOCOLATE C
Slide 12: We did not compromise on volume and value growth
We did not compromise on volume and value growth Snacking Sales Volume (Ktons) Snacking Sales Value (Mtl) 279 295 5.232 11.405 19 24 300 790 107 111 2.686 5.497 154 160 2.246 5.118 1H'21 1H'22 1H'21 1H'22 BISCUIT CHOCOLATE CAKE BISCUIT CHOCOLATE CAKE • Total snacking sales volume increased by 5,6% •
Slide 13: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 13
Slide 14: Turkey Strong #1 in total snacking with 35% market share
Turkey Strong #1 in total snacking with 35% market share Biscuits 40% Market Share #1 Chocolate-40% Market Share #1 Cake-20% Market Share #2 #1 in Petit Beurre #1 in Creamy Biscuits 4 out of Top 5 in Chocolate Covered #1 in Family Cake #1 in Special Biscuits #2 in Cracker #2 in Portion Muffin Coated
Slide 15: Turkey NPD sales contribute 15% of total domestic sales
Turkey-NPD sales contribute 15% of total domestic sales in 22 2022 New Product Launches BISCUITS CAKE CHOCOLATE KIDS 15
Slide 16: Turkey: supply chain management optimisation
Turkey : optimisation and supply chain management Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 91 95 3.465 848 617 25,0% 17,2% 23,7% 1.545 339 24,1% 26,6% 17,5% 230 26,1% 17,9% 19,7% 20,7% 14,0% Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 • Snacking sales volu
Slide 17: Strong drive exceptional results
Strong drive exceptional results Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 202 6.846 1.781 1.309 188 25,0% 25,1% 3.156 778 18,5% 531 24,1% 26,6% 26,1% 23,4% 16,0% 1H'21 1H'22 1H'21 1H'22 1H'21 1H'22 1H'21 1H'22 • Snacking sales volume up by • Snacking revenue w
Slide 18: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 18
Slide 19: International: Maintained the strong position in the market
International : Maintained the strong position in the market Biscuits 25,5% M.Share (*) #1 Biscuits-18,0% M.Share (*) #1 Chocolate-13,6% M.Share (*)#3 #1 in Plain #1 in Filled #1 in Filled (Biskrem and Tamr brands) #1 in Biscuits with Filling #1 Coated #2 in Filled Wafer #4 in Wafer #1 in Digestives
Slide 20: NPD Sales contributes
NPD Sales contributes Saudi Arabia Egypt Kazakhstan 20
Slide 21: Strong business momentum and sound financial results
Strong business momentum and sound financial results Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 43 849 517 39 2.276 997 372 216 38,8% 38,4% 36,0% 35,3% 38,5% 36,6% 21,2% 21,5% Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 • Snacking volume increased by • Snack
Slide 22: Balanced growth for sustainable, long-term value creation achieved
Balanced growth for sustainable, long -term value creation achieved Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 91 93 4.558 1.070 1.766 2.076 795 462 22,4% 38,8% 36,9% 37,5% 21,8% 1H'21 1H'22 1H'21 1H'22 1H'21 1H'22 1H'21 1H'22 • Snacking volume increased by • Sn
Slide 23: Leadership on a winning strategy
Leadership on a winning strategy Saudi Arabia Egypt Kazakhstan FMC & IBC HI-FOOD YTD HAMLE YoY Volume Growth YoY Revenue Growth YoY Volume Growth YoY Revenue Growth YoY Volume Growth YoY Revenue Growth (-3,8%) 17,5% (21,9%) 10,0% 5,8% 37,1% YoY EBITDA Growth EBITDA Margin YoY EBITDA Growth EBITDA Ma
Slide 24: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 24
Slide 25: Acquisition Highlights: reach pivotal EBITDA margins
Acquisition Highlights : reach a pivotal EBITDA margins Hi Food FMC Hamle UI MENA IBC (EGYPT) (KSA) (KAZAKHSTAN) (UAE) (KSA) (TR) March June March December May August 2016 2016 2017 2017 2018 2021 EBITDA Contribution of Acquisitions- 2022 • Ability to act as local producer and regional production hu
Slide 26: Acquisition Highlights: EBITDA % development in years
Acquisition Highlights : EBITDA % development in years NORTH AFRICA (HIFOOD) MIDDLE EAST (FMC-IBC-UI MENA) %14,8 %15,4 %16,7 %24,5 %22,7 %23,9 %23,1 %24,1 %10,8 %18,3 %9,2 %9,8 2016 2018 2019 2020 2021 6M 22 2017 2018 2019 2020 2021 6M 22 Current EBITDA % Total EBITDA Contribution Current EBITDA % T
Slide 27: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 27
Slide 28: Stronger balance sheet with improved ratios
Stronger balance sheet with improved ratios Net Debt/Ebitda (X) Maturity Breakdown as of June 2022 3,54 48% 3,05 3,54x 3,54x 3,22x 0,42x 52% December 2021 June 2022 Short Term Long Term Average Working Capital Days & Net Working Capital FX Hedge strategy 5.921 MTL 7.469 MTL 142 Days 110 Days ▪ ~45%
Slide 29: Agenda
01 CEO Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 29
Slide 30: 2022 Consolidated Guidance
2022 Consolidated Guidance Net EBITDA Sales Margin 2021 REALISED 12,5BNTL 18,6% 2022 GUIDANCE 22,0BNTL 18,6% 2022 GUIDANCE revised 23,5BNTL 18,6% 30
Slide 31: Investor relations contact
Investor relations contact For further E-Mail Phone information please e-mail ir@ulker.com.tr +90 (216) 524 25 56 or call 31
Slide 32: Disclaimer
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 assum
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