Tat Gida Sanayi A.s. · BIST:TATGD
Tat Gida Sanayi A.s — Tat Gıda Sanayi A.Ş. — 9M 2021 Earnings Presentation
27 slides from Tat Gida Sanayi A.s's earnings presentation, 2021
Slide 1: Tat Gıda Investor Presentation & 9M2021 Financial Results Review
TAT GIDA INVESTOR PRESENTATION & 9M2021 FINANCIAL RESULTS REVIEW
Slide 2: Agenda
AGENDA TAT Gıda at a Glance 9M2021 Financial Results Review Appendix 2
Slide 3: Tat Gıda at a Glance
TAT GIDA AT A GLANCE 3
Slide 4: Strong Reputation in Local & International Markets
STRONG REPUTATION IN LOCAL & INTERNATIONAL MARKETS Tat, a well-established and pioneering company in Turkey, contributes to 50+ years of know-how and healthier lives with plant-based well-known products and sustainable agriculture brand & quality via digital farming and responsible Strong shareholde
Slide 5: Growth in Turkish Food Sector
GROWTH IN TURKISH FOOD SECTOR Food sector had a CAGR of 21% between 2017 and 2020, whereas Tat’s main categories has growth at a higher rate. Ready-to-Eat food and Pickles category CAGR between 2018-2020 were 48% and 31%, respectively*. Food Sector Growth mainly in TAT’s categories (%) CAGR (201
Slide 6: Continue to Enhance Its Leading Market Positions in Turkey
CONTINUE TO ENHANCE ITS LEADING MARKET POSITIONS IN TURKEY Tat ranks # 1 in Turkish market* in tomato products, tomato paste, ketchup, pickles, and ready- to-eat food while among the top 3 in most of its main production lines. TAT Market Share (%)* Tat Rank 61.2 Tomato Products 62.0 #1 34.7 Tomato
Slide 7: Tat Processed 122K Tons More Tomatoes in FY2021 than in FY2020
TAT PROCESSED 122K TONS MORE TOMATOES IN FY2021 THAN IN FY2020 With the completion of the Capex investments; Tat Gıda processed 503K tons of tomatoes in 2021 harvesting season, a record year with a 32% annual increase vs. 2020 season. Tat’s Tomato Processing (000 tons) +32% 503 401 381 323 326 339
Slide 8: Tat Ranks #7 Among European Tomato Processing Groups
TAT RANKS #7 AMONG EUROPEAN TOMATO PROCESSING GROUPS With higher processing capacities; Tat Gıda processed 503K tons of tomatoes in 2021 harvesting season bringing Tat close to top European producers. 2020 Top European Tomato Processing Groups (000 tons) 1.467 Tat Gıda processed 1.068 503K tons of
Slide 9: Financial Results: 9M2021 Highlights
FINANCIAL RESULTS 9M2021 HIGHLIGHTS 9
Slide 10: Harvesting Season Ended with Higher Volume
HARVESTING SEASON ENDED WITH HIGHER VOLUME 9M21 Highlights Finalized previously announced disposal of non-core business (SEK) in 1Q2021 and focus further on continuing operations. Net Sales* Top-line growth was 27% yoy in 9M21 and an impressive 51% yoy in TL 735 mn 3Q2021. (27% yoy growth) Cap
Slide 11: Tat Processed 481K Tons Tomatoes in 9M2021
TAT PROCESSED 481K TONS TOMATOES IN 9M2021 With higher capacity, Tat Gıda processed 481K tons tomatoes in 9M2021, a 25% increase yoy (2021 harvesting season total 503K tons). Total production volume reached 115K tons in 9M2021, displaying a yoy growth of 20%. Tat’s Production (000 tons) 9M20 9M21
Slide 12: Net Sales Increased by 51% YoY in 3Q21
NET SALES INCREASED BY 51% YOY IN 3Q21 Total sales volume in 9M21 increased by 15%; and by 41% in 3Q21, yoy; thanks to strong exports in 9M21 and better local sales performance in 2Q21 and 3Q21. Net sales reached TL735 mn; up by 27% yoy - despite strong sales performance in March and April 2020
Slide 13: Strong Export Volumes
STRONG EXPORT VOLUMES Total Exports (in US$ mn) Total exports in 9M21 reached TL194 mn (US$24 mn), displaying 67% growth yoy in TL terms and 39% +39% in US$ terms. This represents 26% share in total sales 23,9 vs. 20% in 9M2020. 17,2 Tat exported 35+ countries in 9M2021 and Europe +40% had the b
Slide 14: A Challenging Operating Environment in Terms of Costs
A CHALLENGING OPERATING ENVIRONMENT IN TERMS OF COSTS Agricultural input price index (Agricultural-IPI) increased by 28.7% compared to same month of the previous year and increased by 20.77% compared to twelve months moving averages, in August 2021. The highest annual increase was 66.71% in fert
Slide 15: TRY Depreciation Continues to Weigh on Costs
TRY DEPRECIATION CONTINUES TO WEIGH ON COSTS The depreciation of Turkish Lira against foreign currencies and impact of inflation lead to a challenging market environment for producers. Undervaluation of TRY against USD* - year on year change CPI annual rate of changes in some food groups (%), Sept
Slide 16: Pressure on Margins Due to Tougher Market Conditions
PRESSURE ON MARGINS DUE TO TOUGHER MARKET CONDITIONS Higher COGS due to new harvesting season’s elevated prices, increased volume of tomato purchase, combined with weak TL led to a pressure on margins. Tat increased tomato paste prices by 34% on September 20, 2021. The impact of product price ad
Slide 17: Operating Profit Remained Intact at TL25 mn in 3Q2021
OPERATING PROFIT REMAINED INTACT AT TL25 MN IN 3Q2021 Operating expenses were kept lower in FY2020, due to uncertainties related to COVID. In 9M2021, in line with Tat’s domestic and export strategies, marketing expenses were higher vs. 9M2020. Operating profit was down by 8% in 9M21, yoy; but
Slide 18: EBITDA Performance
EBITDA PERFORMANCE As a result of higher COGS and OPEX; EBITDA at TL97 mn in 9M21, displayed a year-on-year decline of 9%. The impact of higher sales prices expected to have a positive impact on profitability in 4Q2021 and FY2022. EBITDA (TL mn) EBITDA Margin -9% 107 97 18% 19% 17% 16% 12% 13% -
Slide 19: Capex Investments Finalized in 3Q2021
CAPEX INVESTMENTS FINALIZED IN 3Q2021 Investment expenditures reached TL118 mn as of 9M2021 vs. TL17 mn in 9M2020. Only in 3Q21, investment expenditures were TL60 mn. Investments on Continued Operations (TL mn) Tat has initiated new capacity expansion investments as 118 disclosed in March 2021 a
Slide 20: Net Financial Debt at TL183 mn
NET FINANCIAL DEBT AT TL183 MN Net Cash position of TL93 mn as of 1H2021 TL mn FY2020 1Q2021 1H2021 9M2021 turned into a Net Financial Debt of TL183 mn at Cash and cash equivalents 121 337 275 148 9M2021-end. This is mainly due to; ST Financial Debt 116 270 182 221 High investment expenditures (
Slide 21: Net Profit from Ongoing Operations Reached TL119 mn in 9M2021
NET PROFIT FROM ONGOING OPERATIONS REACHED TL119 MN IN 9M2021 Due to tax incentives and deferred tax income of TL7.3 mn (generated revaluation made for plant, machinery and equipment with in the scope of Law No. 7326), there was a tax income of TL7.3 mn in 9M2021, vs. tax expense of 19.7 mn in 9M2
Slide 22: Appendix
APPENDIX 22
Slide 23: Income Statement - Summary (TL mn)
Income Statement - Summary (TL mn) 9M20 9M21 ∆ YoY 3Q20 3Q21 ∆ YoY Sales 579 735 27% 186 280 51% Cost of Sales (-) 394 528 34% 125 209 67% Gross Profit 185 207 11% 60 71 18% Operating Expenses (-) 91 120 32% 35 46 31% Operating Profit 95 87 -8% 25 25 1% EBITDA 107 97 -9% 32 31 -5% Net Income(Exp) fr
Slide 24: Balance Sheet Summary
1H2021 FINANCIAL REVIEW Balance Sheet -Summary (TL mn) FY2019 FY2020 Sep 30,21 BALANCE SHEET Current Assets SUMMARY 780 1,173 1,430 Cash 10 121 148 Trade receivables 384 446 461 Inventories 338 361 730 Non-current Assets 247 136 271 Total Assets 1,026 1,309 1,701 Current Liabilities 275 411 708 Shor
Slide 25: Balance Sheet Summary Ratios
1H2021 FINANCIAL REVIEW BALANCE SHEET SUMMARY Sep 30, Sep 30, Ratios FY2019 FY2020 2020 2021 Current Ratio 2.84 2.85 2.15 2.02 Liquidity Ratio 1.61 1.97 1.18 0.99 Current Assets /Total Assets 0.76 0.90 0.83 0.84 Net Financial Debt/Equity 0.35 0.24 0.30 0.22 ST Liabilities/Total Liabilities 0.59 0.68
Slide 26: Disclaimer
DISCLAIMER This presentation does contain information and analysis on financial statements that reflect the Company management’s current views. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by
Slide 27: Thank You
THANK YOU FOR FURTHER QUESTIONS PLEASE CONTACT: BANU ÇAMLITEPE - HEAD OF IR BANU.CAMLITEPE@TAT.COM.TR P: +90 216 430 00 00 EXT: 2015 TAT GIDA A.Ş. INVESTORRELATIONS@TAT.COM.TR TAŞDELEN MAHALLESI SIRRI ÇELIK BULVARI NO: 7 ÇEKMEKÖY - İSTANBUL 27