Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri Sanayii A.Ş. — H1 2007 Earnings Presentation
38 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, October 2007
Slide 1: Pınar Süt Mamulleri Sanayii A.Ş. Investor Presentation
PINAR SÜT MAMULLERİ SANAYİİ A.Ş. INVESTOR PRESENTATION October 2007 28.01.2008 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: Macro Economic Review of Turkey
Macro Economic Review of Turkey ¾ Successful implementation of structural reforms and sound CPI Development in Turkey economic policies 50 7 ¾ Inflation declined to single 6 40 digits after 35 years 5 CPI, % yoy 30 4 ¾ Turkey turned into a favorite FDI 20 3 PPI, % yoy CPI target destination (20,1 Bi
Slide 4: 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, 3 foundations, over 6,700 employees ¾ Consolidated revenues of approx
Slide 5: 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 6: Dairy Industry
DAIRY INDUSTRY 28.01.2008 as at 6
Slide 7: 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 8: 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 9: Milk Sources in Turkey
Milk Sources in Turkey GOAT MILK 2% BUFALO MILK 1% SHEEP MILK 7% COW MILK 90% 28.01.2008 as at 9
Slide 10: 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 11: 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 12: 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 13: Company Overview
COMPANY OVERVIEW 28.01.2008 as at 13
Slide 14: 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 15: 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 16: 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 17: 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 September 19,2007 Æ TRY 7.60 Yaşar Holding A.Ş. ¾ Market Cap ($mn) : 276 61% The Foreign Stake in the Float (%) 70 60 59 59 61 57 57 57 58 58 58 58 60 48 47 48 48 51 53
Slide 18: Raw Milk Collection
Raw Milk Collection INDIVIDUAL PRODUCERS 252 FARMS 34% 240 VILLAGE %25 70 COOPS % 21 17 TRADERS %20 362 COOLLING PROCESSOR TRANSPORTATION CENTERS 28.01.2008 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% 22.1 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 Carrying Value Production of processed Ownership % Un Sanayii A.Ş. and frozen meat products- 12.58% 16.9 M YTL open to public Çamlı Yem, Besicilik Ownership % Carrying Value Agribusiness- Feed San. ve Tic. A.Ş. production, fish, cattle 5.59% 8.4 M YTL
Slide 21: Market Position
Market Position PRODUCT MARKET SHARE POSITION (%) UHT LIGHT MILK 67 LEADER UHT MILK 26 LEADER SPREADABLE CHEESE 47 LEADER *Labaneh 64 LEADER *Fresh Cheese 80 LEADER FLAVORED MILK 21 SECOND MAYONNAISE 24 LEADER BRICK BUTTER 13 SECOND Market Share Comparison 90% 80% PINAR Nearest Competitor 70% 60% 50
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 1,600,000 16.0% 1,400,000 1,200,000 15.5% 1,000,000 800,000 15.0% Total Dairy 600,000 Products- ('000 YTL) 400,000 14.5% Pınar Share % 200,000 - 14.0% 2003 YT
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 Country Dairy Product Exports SAUDI ARABIA ¾ %45 market share, in the countries it 4% 3% 2% 4% KUWAIT 6% exports to 38% IRAK 10% T.R.N.C. ¾ 26 countries from Middle East to U.A. EMIRATES Europe, from U.S.A.
Slide 24: Financial Performance
FINANCIAL PERFORMANCE 28.01.2008 as at 24
Slide 25: Gross Profit Margin & Sales by Product & Seasonality
Gross Profit Margin & Sales by Product & Seasonality GROSS PROFIT & GROSS MARGIN 80 25.0% 70 60 20.0% Gross 50 15.0% Profit 40 10.0% Gross 30 Margin % 20 5.0% SALES BY PRODUCTS 10 - 0.0% 31/12/2002 31/12/2003 31/12/2004 31/12/2005 31/12/2006 UHT MILK YOGURT-YOGURT DRINK CHEESE SAUCE-POWDER BUT TER F
Slide 26: Performance Highlights
Performance Highlights NET PROFITS (YTL) EBITDA (YTL) 28,585,922 36,360,237 30,000,000 40,000,000 22,189,767 29,960,577 30,379,779 25,000,000 30,000,000 20,000,000 19,401,913 15,000,000 20,000,000 10,000,000 3,421,708 5,073,191 10,000,000 5,000,000 0 0 2003 2004 2005 2006 2003 2004 2005 2006 DIVIDEN
Slide 27: Consolidated Income Statement (Mn YTL)
Consolidated Income Statement (Mn YTL) 1H07 2Q07 1Q07 FY06 1H06 2Q06 1Q06 FY05 OPERATING REVENUE 218 110 108 357 169 90 80 321 Net Sales 218 110 108 357 169 90 80 321 Cost of Sales (169) (87) (82) (289) (135) (71) (64) (252) GROSS PROFIT 49 23 26 68 34 19 16 69 Operating Expenses (26) (14) (12) (50)
Slide 28: Financial Overview
Financial Overview ¾ Consolidated net sales of app. YTL 218 mn and EBITDA of YTL 29mn ¾ EBITDA margin of 13.4% ¾ Pınar Süt has increased its net sales over the years KEY PERFORMANCE INDICATORS (IFRS-CONSOLIDATED) 30.06.2007 30.06.2006 Change (%) NET SALES (YTL) 217,703,033 169,152,757 29% COST OF GO
Slide 29: Key Ratios & Net Financial Debt: Improved Financial Standing
Key Ratios & Net Financial Debt: Improved Financial Standing June 30, 2007 June 30, 2006 Current Ratio 1.54 1.15 Leverage Ratio 36% 67% Interest Coverage Ratio 18.85 3.29 S/T Financial Debt/Total 0.29 0.73 Financial Debt Net Financial Debt /EBITDA 0.28 4.46 Total Financial Debt / Equity 0.08 0.31 (M
Slide 30: 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 YAŞAR HOLDİNG 8% 3% OTHER A.Ş. 8% 22% YBP EXPORT DIRECT PINAR ET 38% PINAR SÜT 89% 32% 28.01.2008 as at 30
Slide 31: 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$ 500 Th/year turnover, 1000 employees with 7 profit centers ¾ 132 distributors with warehouses covering
Slide 32: 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 33: 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 34: Appendices
APPENDICES 28.01.2008 as at 34
Slide 35: 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 36: PINAR SUT – PINARBAŞI / İZMİR SITE
PINAR SUT – PINARBAŞI / İZMİR SITE ¾ Total area 130.118 sqms ¾ Closed area 40.854 sqms 28.01.2008 as at 36
Slide 37: PINAR SUT-ESKİŞEHİR SITE
PINAR SUT-ESKİŞEHİR SITE ¾ Total area 149.976 sqms ¾ Closed area 16.650 sqms 28.01.2008 as at 37
Slide 38: YBP Regions
YBP Regions Region Sales Directors Area Sales Managers 28.01.2008 as at 38
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