Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri Sanayii A.Ş. — Investor Presentation (April 2008)
41 slides from Pinar Sut Mamulleri Sanayii A.s's investor presentation, April 2008
Slide 1: Pınar Süt Mamulleri Sanayii A.Ş. Investor Presentation
PINAR SÜT MAMULLERİ SANAYİİ A.Ş. INVESTOR PRESENTATION April 2008 08.05.2008 as at 1
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation contains forward-looking statements that refl
Slide 3: Yaşar Group At a Glance
Yaşar Group At a Glance ¾ Established in 1945 ¾ One of the Turkey’s most important and highly respected conglomerates ¾ Core businesses: Food & Beverage and Paint ¾ Non-core businesses: Tissue, Trading and Services ¾ 24 companies, 2 foundations, over 6,600 employees ¾ Consolidated revenues of approx
Slide 4: Market Leader in Food and Beverages: PINAR
Market Leader in Food and Beverages: PINAR ¾ Launched in 1975, Pınar is the market leader in many sub-segments of FMCG ¾ Pınar brand is internationally recognised, especially in the Gulf countries ¾ Selected among “Turkey’s Superbrands” in 2005 with 99% brand awareness and ranked #1 according to the
Slide 5: Dairy Industry
DAIRY INDUSTRY 08.05.2008 as at 5
Slide 6: Dairy Industry
Dairy Industry ¾ Global dairy market (US$ 260 bn) growing at 3% p.a. ¾ Global supply and demand is not balanced ¾ Production increase 2%; Demand increase 3% GAP •Global Sales of Dairy Products by Sector: 2005 % Value Breakdown •Major Markets: 2005 Value Sales and Period % Growth Source: Euromonitor
Slide 7: Dairy Products Sector In Turkey
Dairy Products Sector In Turkey ¾ Dairy sector is one of the fastest growing markets with an average rate of 6% for the last decade. ¾ Annual milk production in Turkey is 10 million tons ($3 bn), only %30 registered ¾ The registered milk market has grown by 12-14% in 2005. Per capita milk consumptio
Slide 8: Milk Sources in Turkey
Milk Sources in Turkey GOAT MILK 2% BUFALO MILK 1% SHEEP MILK 7% COW MILK 90% 08.05.2008 as at 8
Slide 9: Potential Effects of EU Conformity Period
Potential Effects of EU Conformity Period An increase in the; ¾ Registered milk production rate to 50% ¾ Dairy products export due to the start of exports to EU countries ¾ Quality of the milk collected ¾ Demand of the packaged products ¾ Quality awareness of consumers ¾ Average milk productivity ¾
Slide 10: PINAR SÜT Is Ready for EU
PINAR SÜT Is Ready for EU ¾ EU standards production plant ¾ Latest technology through the whole supply chain ¾ Milk procurement organisation in compliance with EU legistation ¾ Advanced laboratory competence available on field ¾ 252 contracted farms ¾ Supplier based performance measurement ¾ 100% tr
Slide 11: Dairy Products Sector Promises High Potential For Growth
Dairy Products Sector Promises High Potential For Growth ¾ Significant growth potential with 7-10% p.a. on average, with major drivers of this growth including favourable Turkish economic and demographic developments and close proximity to EU and Middle East markets ● Growing trends towards packaged
Slide 12: Company Overview
COMPANY OVERVIEW 08.05.2008 as at 12
Slide 13: Company History: Pioneer and Leader of Modern Turkish Dairy
Company History: Pioneer and Leader of Modern Turkish Dairy 1975... 1997 2003 2005 The first UHT milk and packed dairy products Agreement with New plant founded in First organic milk in plant in Turkey was Sodima SAS for the 1982 Eskişehir Türkiye, Pınar Organic founded (biggest milk production of f
Slide 14: Launch Of New Products-I
Launch Of New Products-I ¾ 1975 First UHT Milk in Turkey. Cheese, yoghurt, butter and milk powder ¾ 1976 First pasteurized freshcream cheese and cocoa milk ¾ 1978 Pınar Sliced Kashkaval and Spreadable Cheese ¾ 1980 Kraft Pınar cooperation. Pınar Deram, Raglet, Maribo and Cheddar ¾ 1983 First mayonna
Slide 15: Launch Of New Products-II
Launch Of New Products-II ¾ 1996 Feta cheese, İzmir "tulum" cheese, Roll of butter ¾ 1997 Kido milk family, Light Feta Cheese, Mozzarella, Shredded Cheese, Camambert Goat Chees ¾ 1999 Functional Milk (Lactose-free milk; Pınar Denge Calcium+ Vitamins A, D, E Milk) ¾ 2000 First automatical process for
Slide 16: Ownership Structure
Ownership Structure ¾ Listed in Istanbul Stock Exchange Free Float ¾ % 39 of total outstanding shares in free float 39% ¾ Price at April 21,2008 Æ TRY 6,15 Yaşar Holding A.Ş. ¾ Market Cap ($mn) : 210 61% The Foreign Stake in the Float (%) 62 6 0,8 6 60 5 8 ,8 6 5 8 ,8 4 5 8,3 8 58 5 6,6 6 5 6,6 4 56
Slide 17: Relative Performance to ISE-100
De - ce 20 40 60 80 100 120 140 160 mb er 08.05.2008 Ja -0 6 nu ar Fe y -0 br 7 ua ry -0 7 Ma rc h -0 7 Ma y -0 7 Ju ne - 07 Ju ly - 07 Au gu Se s t- p te 07 mb er - as at Oc 0 7 to be No r -0 ve 7 mb De er - ce 07 mb er J a -0 7 nu ar y -0 Fe br 8 ua ry -0 Ma 8 rc h -0 8 Relative Performance to ISE
Slide 18: Raw Milk Collection
Raw Milk Collection INDIVIDUAL PRODUCERS 295 FARMS 38% 231 VILLAGE %22 75 COOPS % 28 9 TRADERS %12 431 COOLLING PROCESSOR TRANSPORTATION CENTERS 08.05.2008 as at 18
Slide 19: Notable Participation Value
Notable Participation Value Yaşar Birleşik Sales and distribution of Ownership % Carrying Value Pazarlama Dağıtım products of Pınar Süt, Turizm ve Ticaret 31.95% 24.5 M YTL Pınar Et & other food A.Ş. (YBP) products Pınar Foods GmbH, Ownership % Carrying Value Production and Germany distribution of w
Slide 20: Notable Participation Value
Notable Participation Value Pınar Entegre Et ve Production of processed Ownership % Carrying Value Un Sanayii A.Ş. and frozen meat products- 12.58% 23.9 M YTL open to public Çamlı Yem, Besicilik Ownership % Carrying Value Agribusiness- Feed San. ve Tic. A.Ş. production, fish, cattle 5.59% 6.3 M YTL
Slide 21: Market Position
Market Position PRODUCT” MARKET POSITION SHARE (%) UHT LIGHT MILK 67 LEADER UHT MILK 26 LEADER SPREADABLE CHEESE 46 LEADER *Triangle Cheese 64 LEADER *Fresh Cheese 86 LEADER FLAVORED MILK (CHILDREN) 21 SECOND ENRICHED MILK (ADULT) 33 LEADER MAYONNAISE 24 LEADER BRICK BUTTER 13 SECOND Market Share Co
Slide 22: Marketing Expertise
Marketing Expertise ¾ The market is continuously growing ¾ Pınar Süt is maintaining the leadership in the market without loosing market share 2,500 16.0% 2,000 15.0% Total Dairy 1,500 Products- ('mio YTL) Pınar Share % 1,000 14.0% 500 - 13.0% 2004 2005 2006 2007 08.05.2008 as at 22
Slide 23: Export Success: Target Market Tastes Are Met
Export Success: Target Market Tastes Are Met ¾ PINAR SÜT realizes 40% of Turkey’s Exports by Countries Dairy Product Exports SAUDI ARABIA ¾ %45 market share, in the countries it 4% 3% 8% KUWAIT exports to 7% 4% 40% IRAK T.R.N.C. ¾ 26 countries from Middle East to U.A. EMIRATES Europe, from U.S.A. To
Slide 24: Financial Performance
FINANCIAL PERFORMANCE 08.05.2008 as at 24
Slide 25: Gross Profit Margin & Sales by Product & Seasonality
Gross Profit Margin & Sales by Product & Seasonality Gross P rofit & Gross Marg in 100 25,0% Gros s 80 20,0% P rofit 60 15,0% Gros s 40 10,0% M argin % 20 5,0% - 0,0% Sales By Products 02 03 04 05 06 07 0 0 0 0 0 0 /2 /2 /2 /2 /2 /2 1 1 1 1 1 1 /3 /3 /3 /3 /3 /3 12 12 12 12 12 12 UHT M ILK YOGURT-YO
Slide 26: Performance Highlights
Performance Highlights NET PROFITS (YTL) EBITDA 39.660.157 57.146.458 40.000.000 60.000.000 28.585.922 50.000.000 30.000.000 36.360.237 22.189.767 40.000.000 29.960.577 30.379.779 20.000.000 30.000.000 19.401.913 Net Prof its (YTL) EBITDA (YTL) 20.000.000 10.000.000 5.073.191 3.421.708 10.000.000 0
Slide 27: 2007 Sales & Production Breakdown
2007 Sales & Production Breakdown Sales by Product Groups ('000 YTL) Production by Product Gropus (Tonnes) 1,810 11,893 Milk- Fruit juice- 16,874 Cream- Pudding Milk- Fruit juice- 50,014 205,779 Cream- Pudding Butter- Mayonnaise- 12,337 Butter- Honey- Sauce- Jaw Mayonnaise- Ayran- Yogurt- Honey- Sau
Slide 28: Consolidated Income Statement (Mn YTL)
Consolidated Income Statement (Mn YTL) FY07 FY06 FY05 FY04 OPERATING REVENUE 452 357 321 311 Net Sales 452 357 321 311 Cost of Sales -361 -289 -252 -261 GROSS PROFIT 91 68 69 50 Operating Expenses -47 -50 -43 -34 Research & Development Cost -4 -3 -3 -2 Selling & Marketing Expenses -27 -34 -29 -21 Ge
Slide 29: Improving Margins
Improving Margins FY07 FY06 FY05 FY04 EBITDA 57 30 36 30 EBITDA % 12.6% 8.5% 11.3% 9.6% EBIT 9.7% 5.1% 8.1% 5.4% GROSS MARGIN 20.1% 19.0% 21.5% 16.2% NET PROFIT MARGIN 8.8% 7.9% 6.9% 0.3% 08.05.2008 as at 29
Slide 30: Financial Overview
Financial Overview ¾ Consolidated net sales of app. YTL 452 mn and EBITDA of YTL 57mn ¾ EBITDA margin of 12,7% ¾ Pınar Süt has increased its net sales over the years KEY PERFORMANCE INDICATORS (IFRS-CONSOLIDATED) 31.12.2007 31.12.2006 Change (%) NET SALES (YTL) 451,620,647 357,121,388 26% COST OF GO
Slide 31: Key Ratios & Net Financial Debt: Improved Financial Standing
Key Ratios & Net Financial Debt: Improved Financial Standing December 31, December 31, 2007 2006 Current Ratio 1.70 1.53 Leverage Ratio 33% 37% Interest Coverage Ratio 11.22 5.96 S/T Financial Debt/Total 0.31 0.48 Financial Debt Net Financial Debt /EBITDA 0.10 0.52 Total Financial Debt / Equity 0.06
Slide 32: Sales and Distribution
Sales and Distribution ¾ Domestic sales of Pınar Süt are realised through Yaşar Birleşik Pazarlama A.Ş. (YBP) SALES CHANNELS YBP STRUCTURE Pınar Sut 32% Pınar Et Direct YBP 38% 3% 89% Exports 8% Yaşar Holding Other YBP Export Direct 8% 22% Yaşar Holding Pınar Sut Pınar Et Other 08.05.2008 as at 32
Slide 33: YBP – Yaşar Birleşik Pazarlama A.Ş.
YBP – Yaşar Birleşik Pazarlama A.Ş. ¾ The second biggest food sales & distribution network in Turkey ¾ Specialised in one-way, packaged, high-quality, fast moving consumer goods ¾ Approximately US$ 640 Th/year turnover, 1000 employees with 7 profit centers ¾ 132 distributors with warehouses covering
Slide 34: YBP Product Portfolio
YBP Product Portfolio ¾ DAIRY (PINAR SÜT&PINAR ¾ PROCESSED MEAT (PINAR ANADOLU) ET&PINAR ANADOLU) ► Milk (UHT, Pasteurized, Flavoured) ► Meat & meat products ► Yoghurt (Plain, Fruit, yoghurt drink) ► Frozen meat balls ► Functional dairy products ► Turkey based products ► Butter ► RTE meat&turkey pro
Slide 35: Investment Highlights
Investment Highlights ¾ Modern and efficient production processes employing the latest technology ¾ Wide-spread distribution network, strong brands with very high brand awareness ¾ Leader in Turkish Dairy Products Sector ¾ Advanced R&D facilities with competencies in product development ¾ Innovative
Slide 36: Appendices
APPENDICES 08.05.2008 as at 36
Slide 37: Awards and Certificates
Awards and Certificates ¾ 2000 “Golden Packaging Award” by TSI (Turkish Standart Institute) for 3 products ¾ 2000 World Star Award by WPO (World Packaging Organisation) for Pınar Kido Mini Cheese ¾ 2001 The Research and Development Encouragement Award from TUBİTAK ¾ 2002 The Aegian Region Quality Aw
Slide 38: PINAR SUT – PINARBAŞI / İZMİR SITE
PINAR SUT – PINARBAŞI / İZMİR SITE ¾ Total area 130.118 sqms ¾ Closed area 40.854 sqms 08.05.2008 as at 38
Slide 39: PINAR SUT-ESKİŞEHİR SITE
PINAR SUT-ESKİŞEHİR SITE ¾ Total area 149.976 sqms ¾ Closed area 16.650 sqms 08.05.2008 as at 39
Slide 40: YBP Regions
YBP Regions Region Sales Directors Area Sales Managers 08.05.2008 as at 40
Slide 41: Financial Objectives
Financial Objectives ¾ 2008 expected revenue growth 20% - 25% ¾ Lean 6 Sigma ¾ Focus on operating efficiencies ¾ Continued product mix improvement ¾ Stepped up productivity projects ¾ Successful offsetting of input cost pressure through selective price increases 08.05.2008 as at 41
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