Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — FY2017 Earnings Presentation
33 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Mar 7, 2018
Slide 1: 2017 Q4 Earnings Release – Full Year 2017
2017 Q4 EARNINGS RELEASE ÜLKER BİSKÜVİ Cenker Ucan, CFO İSTANBUL, 7 MARCH 2018 FULL YEAR 2017
Slide 2: Agenda
AGENDA Turkey Macro Economic Overview Market Growth Ülker Consolidated Operational Performance Domestic Operations International Operations Financial Highlights 1
Slide 3: Turkey Macro Economic Overview
Turkey Macro Economic Overview Retail Sales Volume Index 2016 2017 131,8 132,5 130,8 131,0 131,7 130,9 131,1 130,2 131,4 Retail sales volume index (Adj.) improved by 0,4% in December 128,1 125,7 2017 over 2016 year-end 2016 Annual Avg: 129.5 2017 Annual Avg:130.8 Industrial Production Total Indust
Slide 4: Market Growth
Market Growth Market Growth % (Volume & Value in 2017) in Turkey Total Confectionary 15% 16,2% 10% 6,3% Total confectionery market grew by 6,3 % in volume and 16,2% in value 5% terms, 0% Volume Value Biscuit 15% 15,7% 10% 7,8% 5% Biscuit market grew by 7,8% in volume and 15,7% in value terms, 0% Vol
Slide 5: Consolidated Operational Performance
CONSOLIDATED OPERATIONAL PERFORMANCE 4
Slide 6: Leading confectionary player in Turkey and MENACA, serving c.600 mn consumers
Leading confectionary player in Turkey and MENACA, serving c.600 mn consumers Egypt Hi-Food Biscuits Capacity: 44k ton/year Over 70+ years of experience in Turkey Production in 4 countries at 9 facilities Saudi Arabia Total Production FMC&IBC&UIMENA Capacity of 937K tons Biscuits& Chocolates & Cakes
Slide 7: Consolidated Performance Highlights
Consolidated Performance Highlights Track Record in all metrics 2017 Volume 2017 Revenue ~ 543 Tons ~ TL4.8 BN Growth +3,2 % Growth + 14,7% EBITDA 2017 EBITDA Margin 2017 Net Profit ~ TL701 MN 14,6 % ~ TL383 MN Growth + 21,9 % improved by 90pbs Growth + 40,5% Operating Cash Flow 2017 Net ~ TL713 MN
Slide 8: Consolidated Performance Highlights
Consolidated Performance Highlights Clear success between 2012-2017 amid several challenges 2012 2013 2014 2015 2016 2017 CAGR % Volume (‘000 tons) 422 478 480 514 526 543 5,2 6.000,0 14,6% 16,0% 13,7% 12,6% 4.811 14,0% 5.000,0 11,5% 11,5% 4.194 12,0% 4.000,0 3.794 9,3% 10,0% 2.748 2.891 3.000,0 8,0
Slide 9: Consolidated Performance Highlights
Consolidated Performance Highlights Best in class financials TL ('000) Q4 2016 Q4 2017 % 2016 2017 % Confectionary Volume (Ton) 146.271 147.766 1,0% 525.999 542.965 3,2% Revenue 1.203.103 1.342.281 11,6% 4.193.775 4.811.033 14,7% Confectionary Price Increase 12,8% 13,1% Gross Profit 321.790 368.406
Slide 10: Consolidated Performance Highlights
Consolidated Performance Highlights 3,2% growth in volume & 16,7% growth in value in 2017 Confectionary Sales Volume (Tons) Net Confectionary Sales (TL m) 4.723 542.965 525.999 4.046 446 61.868 59.502 418 146.271 147.766 1.169 1.332 2.235 177.513 177.637 1.960 123 16.466 15.909 114 637 50.433 49.434
Slide 11: Domestic Operations
DOMESTIC OPERATIONS Onl 10
Slide 12: Turkey – #1 in Total Confectionery with 35,4% Market Share
Domestic Operations Turkey – #1 in Total Confectionery with 35,4% Market Share Turkey #2 Biscuits – 36% Market Share (1) #1 Chocolate – 37% Market Share (1) #2 Cake – 27% Market Share (1) # 1 in Creamy Biscuits # 1 in Petit Beurre #1 in Family Cake 4 out of Top 5 in Chocolate Covered # 1 in Special
Slide 13: Branded Sales Contribution of Synergy Products and New Launches
Domestic Operations Branded Sales Contribution of Synergy Products and New Launches 2017 Synergy Products 2017 New Product Launches Biscuits 2016 Synergy Products Cakes Chocolates 12
Slide 14: Domestic Operations Q4 2017
Domestic Operations Despite base impact, growth in financial and operational metrics in Q4 2017 continued Sales Volume Net Sales (TL m) (thousand tons) Gross Profit (TL m) EBITDA (TL m) 22,0% 22,2% 12,4% 12% 784 851 172 189 101 101 97 101 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 20
Slide 15: Continue to grow in core market
Domestic Operations Continue to grow in core market Sales Volume Net Sales (TL m) EBITDA (TL m) Gross Profit (TL m) (thousand tons) 22,0% 14,2% 13,7% 22,8% 2.850 3.201 373 388 651 704 404 438 2016 2017 2016 2017 2016 2017 2016 2017 Branded volume continues with Branded revenue up by 14,1% Gross Prof
Slide 16: Continue to increase the share of Branded Domestic Products
Domestic Operations Continue to increase the share of Branded Domestic Products In line with our strategy, we focused on branded product sales and continue to enjoy significant contribution improvement at the operational front. Branded & Non-Branded Volume Breakdown Branded & Non-Branded Revenue Bre
Slide 17: International Operations
INTERNATIONAL OPERATIONS 16
Slide 18: Ülker completed the acquisitions in MENA&CA
International Operations Ülker completed the acquisitions in MENA&CA Hi Food FMC Hamle UI MENA IBC* (EGYPT) (KSA) (KAZAKHSTAN) March June March December 2016 2016 2017 2017 (*) SPA completed in 2017,awating for SAGIA approval 17
Slide 19: Saudi Arabia – stay strong #1 with higher market share
International Operations Saudi Arabia – stay strong #1 with higher market share Ülker’s presence: Biscuit market share(3) 14,1% 13,5% 13,1% Snapshot of Saudi Arabia (2017) 11,2% 6,1% Population 31m Competitor 1 Ülker Competitor 2 Competitor 3 McVitie’s (1) Population Growth Rate c2.2% (2) GDP US$653
Slide 20: Egypt – Target #1 in Biscuits, #2 in Cake & Top 5 in Chocolate
International Operations Egypt – Target #1 in Biscuits, #2 in Cake & Top 5 in Chocolate Ülker’s presence: Biscuit market share(3) Snapshot of Egypt (2017) Significant opportunity #3 to expand McVitie’s Population 90m 18.0% footprint in the region 15,9% 13,7% Population Growth Rate (1) c2.0% GDP (2)
Slide 21: To Become #1 or strong #2 in all MENA Countries
International Operations To Become # 1 or strong #2 in all MENA Countries UI MENA operations Ülker acquired UI MENA which owns Amir Global (the owner of McVitie’s distribution / production rights in MENA and Saudi Arabia along with sales company in Egypt) Sales operations in Egypt (Ülker Egypt- cons
Slide 22: Kazakhstan – A Bridge from East to West and our gate to Central Asia
International Operations Kazakhstan – A Bridge from East to West and our gate to Central Asia Ülker’s presence: Chocolate market share(3) Snapshot of Kazakhstan (2017) Population 17.5m 62,3% (1) Population Growth Rate c.1.5% #3 GDP (2) US$185bn 12,6% 8,9% 4,5% Traditional Channel c.80% Competitor 1
Slide 23: Continue to gain market share in operating territories
International Operations Continue to gain market share in operating territories with acquisition synergies Egypt Saudi Arabia Kazakhstan #3 #1 #3 Biscuits – 14% Market Share Biscuits – 19,6% Market Share Chocolate– 8,9% Market Share # 4 in countline # 1 in Plain # 1 in Filled # 1 in Filled (Biskrem
Slide 24: 2017 New Launches & Synergy Products
International Operations 2017 New Launches & Synergy Products EGYPT KAZAKHISTAN SAUDI ARABIA SYNERGY PRODUCTS 23
Slide 25: Strong performance prevailed in Q4 2017 with profitability focus
International Operations Strong performance prevailed in Q4 2017 with profitability focus Confectionary Sales Volume Confectionary Net Sales Gross Profit* (TL m) EBITDA* (TL m) (thousand tons) (TL m) 35,7% 15,3% 18,3% 36,5% 481 180 90 46 47 385 150 64 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017
Slide 26: Excellent contribution to both sales and profitability in 2017
International Operations Excellent contribution to both sales and profitability in 2017 Confectionary Sales Volume Confectionary Net Sales (thousand tons) Gross Profit* (TL m) EBITDA* (TL m) (TL m) 31,5% 35,6% 12,8% 16,3% 1.522 573 263 153 155 1.197 423 172 2016 2017 2016 2017 2016 2017 2016 2017 Ac
Slide 27: Strategy to Focus in Branded Confectionery Products
International Operations Strategy to Focus in Branded Confectionery Products Confectionery Branded & Non-Branded Volume Breakdown Confectionery Branded & Non-Branded Revenue Breakdown 2016 2017 2016 2017 Non Non Non Non Branded Branded Branded Branded 29% 25% 22% 19% +4 pp +3 pp 75% 81% 78% 71% Bran
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS Oral 27
Slide 29: Effective Cash Cycle
Financial Highlights Effective Cash Cycle Average Working Capital Days & Net Working Capital 518 mnTL 576 mnTL Cash Cycle of 38 days in 2017 (47 days in 2016) Working capital requirement over sales ratio was 10,8% in 2017 and 13,7 % in 2016 10 % decline in the Net Working Capital need 76 69 58
Slide 30: Net Debt Management
Financial Highlights Net Debt Management Net Debt (TL m) Maturity breakdown as of December 2017 21% short term 1.111 79% long term 657 2016 2017 Net Debt / EBITDA 79% of our debt structure is through long term In 2017, we completed 2 successful syndication facilities amounting to ~ 825mUSD 1,58
Slide 31: Net Position – One of the unique companies in Turkey
Financial Highlights NET POSITION - One of the unique companies in Turkey The FX net position of B/S has been minimized through derivative instruments (Million TL/$/€/£) TL USD EURO GBP Cash Equivalents & Monetary Assets 3.310 327 460 0,5 Trade Receivables 132 22 10 0,5 Total Assets 3.442 348 470 1
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 a
Slide 33: Ülker Bisküvi A.Ş. Investor Relations
ÜLKER BİSKÜVİ A.Ş. Investor Relations Tel : +90 216 524 25 00 @ : ir@ulker.com.tr Verda Beste Taşar Head of Investor Relations Tel: +90 216 524 2556 beste.tasar@ulker.com.tr Borsa Istanbul: ULKER.IS - Bloomberg: ULKER.TI - Reuters: ULKER.IS
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