Turpaz Industries Ltd · TASE:TRPZ
Turpaz Industries — Investor Presentation (March 2023)
27 slides from Turpaz Industries's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023 1
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Turpaz Industries Ltd. These forward-looking statements are included, inter alia, (the "Company") for the sole purpose of conveying information in discussions of strategy, objectives, goals, plans, events, future regarding the Company and its subsidiaries
Slide 3: Turpaz - A Leading Global F&F Company
Turpaz - A Leading Global F&F Company Founded 13 Production 400 employees Multinational fragrance in 2011 sites globally 53 in R&D (13 PhD) & flavor house with specialty fine ingredients site Fragrance, taste, specialty fine ingredients IPO on TASE in May 2021 Double digit growth via (including citr
Slide 4: Highlights 2022 (US $)
Highlights 2022 (US $) Sales Gross Profit Adjusted EBITDA $ 118.6M $ 47.7M $ 26.9M + 38.9% Sales growth + 37.2% growth + 31.2% growth + 9.9% Organic growth Enhancement and Solid balance sheet, expansion of global 5 acquisitions funding availability management to and acquisitions in 2022 support glob
Slide 5: Double Digit Growth - 2022
Double Digit Growth - 2022 Sales (M US $) Adj. EBITDA (M US $) 118.6 39% 31% 26.9 85.3 20.5 52.7 10% 14 32.2 Organic Growth 5.9 2019 2020 2021 2022 2019 2020 2021 2022 (*) Adj EBITDA - earnings before interest, taxes, depreciation, and amortization. Adjusted to reflect operating profit w/o none recu
Slide 6: Turpaz – Consolidated
Turpaz – Consolidated In K US $ / % 2021 2022 Sales 85,334 118,556 34,728 47,659 Gross profit 40.7% 40.2% 16,040 27,330 Operating profit 18.8% 23.1% 16,494 19,153 Adj. Operating profit* 16.2% 19.3% 20,475 26,862 Adj. EBITDA 24.0% 22.7% 6 * Adjusted to reflect operating profit w/o none recurring expe
Slide 7: Fragrance
Fragrance In K US $ / % 2021 2022 +41.4% Sales 19,436 27,490 6,804 7,390 Operating profit 35.0% 26.9% Organic growth +9.3% Acquisitions Lori, Klabin Highlights Lori’s and Klabin’s profitability is lower than segment profitability. Streamlining operations (including the merger of Tupraz USA with Klab
Slide 8: Taste
Taste In K US $ / % 2021 2022 +78.2% Sales 33,292 59,325 2,533 17,667 Operating profit 7.6% 29.8% Adj. Operating profit 2,533 8,873 7.6% 15.0% Organic Growth +14.6% SDA (49%), Pilpel and Balirom, Pentaor, Acquisitions Galilee Herb, FIT Aromatique * Streamlining activities and increasing synergies in
Slide 9: Specialty Ingredients
Specialty Ingredients In K US $ / % 2021 2022 +33.6% Sales 11,733 15,680 3,317 4,003 Operating profit 28.3% 25.5% Organic growth 44.1% Profitability mainly affected by Euro USD impacts and change Highlights in the product mix. Production of high added value of citrus products & aroma chemicals ingre
Slide 10: Pharma Intermediates
Pharma Intermediates In K US $ / % 2021 2022 -23.1% Sales 20,873 16,061 6,615 5,083 Operating profit 31.7% 31.6% Organic growth -19.9% The revenue decrease stems from organic decreases due to Highlights adjustment of inventory levels of some of the segment’s customers following Covid-19. Profitabili
Slide 11: Sales Breakdown By Territory
Sales Breakdown By Territory In M US $ Europe Asia & ROW 2022– 48.9 2022 – 19.0 2021 – 30.9 2021 – 8.2 North America 2022– 20.6 2021– 25.8 Middle East 2022– 19.1 2021 – 20.4 11
Slide 12: P&L – Significant Growth
P&L – Significant Growth K US $ 2019 2020 2021 2022 Revenues 32,187 52,730 85,334 118,556 Gross Profit 11,737 21,824 34,728 47,659 GP% 36.5% 41.4% 40.7% 40.2% R&D Expenses 550 862 1,949 3,607 Sales & Marketing Expenses 2,968 3,848 6,274 10,016 Management & General Expenses 6,820 6,625 10,257 15,055
Slide 13: Balance Sheet
Balance Sheet K US $ 31/12/2021 31/12/2022 Assets Current Assets 106,082 89,913 Non-Current Assets 84,063 124,267 Total Assets 190,145 214,180 Liabilities & Equity Current Liabilities 37,032 46,674 Turpaz’s strong equity structure, low leverage, cash flow from operations, Non-Current Liabilities 59,
Slide 14: The "Golden Triangle"
The ”Golden Triangle” Specialty fine Ingredients Fragrance Taste 14
Slide 15: Supporting every industry
Supporting every Hair Care Wet Wipes Fine Fragrances Soft Drinks Ice Cream industry Makeup Body Care & Toiletries Confectionery Dietary Supplements Bakery Cosmetics Scented Candles Coffee Pharma Dairy Home Fragrances Fabric Care Fruits Energy Bars Herbs & Spices Flavors for Oral Care CBD Products An
Slide 16: Multinational Company
Multinational Company Belgium Poland Latvia Romania 1 site – Taste 1 site – Taste 1 site – Fragrance 1 sites –Taste Sales & Fragrance Sales Sales Production Sales Production Production R&D Production R&D R&D R&D USA Vietnam 1 site – Fragrance 1 site Taste & Fragrance Sales Sales Production Productio
Slide 17: Strategy – Think Global, Act Local
Strategy – Think Global, Act Local Innovation Leverage synergies Organic growth M&A New markets New products New customers 17
Slide 18: Acquisitions Strategy
Acquisitions Strategy Small and medium size Enhance management Loyal customer Relatively low local businesses in Europe, capabilities and support base EBITDA multiples Asia and North America Revenues – Significant growth Significant synergetic Unique products up to $50 M potential advantages or tech
Slide 19: Proven Acquisitions Track Record
Proven Acquisitions Track Record 2020 2021 2022 2023 - Global acquisitions Lori pipeline SDA 100% (Fragrance) Florasynth 100% (Taste) 49% (Taste) Balirom 60% + option 40% (Taste) SDA FIT 51% (Taste) 60% + option 40% (Taste) Pentaor 100% (Taste) WFF Pilpel & Galilee Herbs Klabin Fragrances 60% + opti
Slide 20: Organic Growth Strategy
Organic Growth Strategy Strengthening research, Improving supply chain Expanding global development and production marketing & sales & innovation systems processes network deployment Fast response to Enhance Cross-selling customer needs synergies among within the group based on experience the group
Slide 21: Flavors & Fragrances Market
Flavors & Fragrances Market 21
Slide 22: F&F Market
F&F Market Projected to reach USD 44.18 billion by 2030* Competition Landscape Customers Selected Others Others ~40% 4 Main F&F players focus mainly on large Large CPGs multinational customers ~60% 3 types of customers: large multinational, mid level Mid-Sized, Small, and small local businesses Priv
Slide 23: F&F: The Key Driver Of Consumer Repurchase Decisions
F&F: The Key Driver Of Consumer Repurchase Decisions Scent & taste determine customer decisions ... ... and represent only a minor fraction of costs Fine Flavors & consumer Share of F&F ingredients in customer's COGS fragrances fragrances 78% Key 45% Key Scent decision Smell decision driver & taste
Slide 24: Trends Driving Growth
Trends Driving Growth Consumer base Living longer and Sustainability After COVID-19: E- Trend is growing more consciously is of high concern commerce, self-care and localization gain importance • More opportunities Demand for naturals, • Innovation (eg. Biotech • Accelerated digital enablement Impac
Slide 25: F&F Industry Trends
F&F Industry Trends Vegan Micro- Plant Based Allergen Free Capsulation & Vegetarian Natural Sugar, Fat Ingredients Clean Label & Salt Reduction 25
Slide 26: Summary
Summary Global F&F Dividend distribution - Double digit growth Supplying to all customers (SMB) - company with US$ 5M based on organic ONE-STOP SHOP solutions, via high profitability (4.96 cents per share) growth and M&A customer intimacy Operating in a growing industry that Management with Cash and
Slide 27: Thank You
Thank You )TURPAZ
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