Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri San. A.Ş. — H1 2010 Earnings Presentation
27 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2010
Slide 1: Pınar Süt Mamulleri San. A.Ş.
PINAR PINAR SÜT SÜT MAMULLERİ MAMULLERİ SAN. SAN. A.Ş A.Ş
Slide 2: Company History
Company History Pioneer and Leader of Modern Turkish Dairy 1975... 1997 2003 2005 2010 The first UHT milk and Pınar SÜT new plant founded Agreement with First organic milk in Pınar Kido with packaged dairy products in Eskişehir Sodima SAS for the Türkiye, Pınar Organic Biscuit, Pınar plant in Turkey
Slide 3: Distribution & Growth of Fast-Moving Consumer Goods
Distribution & Growth of Fast-Moving Consumer Goods X Food & Beverage have 45,4 % of all FMCG 1H 2009 1H 2010 Size of Total Market (000 TL) 15,2 % Fast-Moving Cosumer Goods 24,554,000 28,285,000 Share of Size % 1H 2010 CLEANING; 4,4 PERSONAL CARE; 7,7 OTHER; 0,6 FOOD ; 45,4 CIGARETTE; 41,9 Source: N
Slide 4: Product Categories in terms of Consumer Spending & Growth
Product Categories in terms of Consumer Spending & Growth SPENDING SHARE % 1H 2009 1H2010 FAST-MOVING CONSUMER GOODS 100 100 Food & Beverage 86.0 85.2 General Food Products 15.7 15.4 Meat & Meat Products 17.4 17.1 Oils 6.3 5.8 Dairy Products 15.6 16.0 X Dairy Products reaches 16 % share in market Sn
Slide 5: Market Overview: Dairy Products Sector in Turkey
Market Overview Dairy Products Sector In Turkey MILK PRODUCTION MILK CONSUMPTION X A market volume of about 6,9 bn TL (HTP, 2009 Packaged & (Th. Tons) (kg/per capita) Unpackaged Total Market) 2007 2016 2007 2016 X Annual raw milk production is 714 million tons in the world; EU (25) 130.167 129.643 7
Slide 6: Market Overview: Growth Potential
Market Overview Growth Potential X The total of packaged dairy products in the dairy market, as tonnage, remains constant in the last six months. (While packaged cheese grows by 4%; packaged yoghurt is shrinking by 3%. Packaged milk is constant) Dairy 1H 2010 (TL mn) Shift From Unpackaged to Package
Slide 7: Key Players in Turkish Dairy Market
Key Players in Turkish Dairy Market Pınar is ahead of competition and the market leader of dairy sector X There are national (e.g. Ulker, Sutas) and multinational (e.g. Danone, Nestle) competitors PRODUCT MARKET POSITION SHARE (%) 1.700 20,0% UHT LIGHT MILK 59,5 LEADER 16,4% 1.600 TOTAL UHT MILK 26,
Slide 8: Marketing Campaigns
Marketing Campaigns Continuous marketing campaigns in profitable and strategic categories Major campaigns in 2010 : Pınar Çocuk Interactive Campaign won “Kristal Elma” Award X “Pınar Kido” and “Pınar Çocuk” X “Kristal Elma” is a contest where original and creative works are X “Pınar Kido” reached se
Slide 9: New Launches
New Launches Several new products are launched in key product categories New Launches: X Pınar Lemonade X Multipacking/Consumer Promotion X Pınar Kido with Biscuit X Pınar Kahvaltı Keyfi White Cheese X Pınar Sliced Cheese 700g X Pınar Çocuk with Honey X New package designs The new packaging diversif
Slide 10: Pınar Süt Highlights
Pınar Süt Highlights One of the leading businesses in the FMCG business in Turkey... X Strong brand equity, market leader in many sub-segments of FMCG X High quality, hygienic and EU standard production X Distribution network power (reaching 155,000 sales points) X More than 200 SKUs X 1352 employee
Slide 11: Product Groups & Sales Channels
Product Groups & Sales Channels Product Groups Y OGURT & AY RAN 13% UHT MILK 38% CHEESE 27% OTHERS SAUCE-POW DER FRUIT JUICE BUTTER 3% PRODUCT 7% 7% 5% Sales Channels YBP 91% DIRECT EXPORT 2% 7% Calculated according to net sales of the first six months of 2010 Page 10 Pınar Süt
Slide 12: Export
Export Success in export: Reached Customer Preferences of Target Markets Ülke Bazında Export İhracat by Countries X PINAR SÜT realizes 24% of Turkey’s Dairy Product Exports by itself 4% 8% X Export to 26 countries, from Middle East to Europe, from U.S.A. to 4% 5% China 45% X Market leader in Saudi A
Slide 13: Supply - Raw Milk Collection Process
Supply - Raw Milk Collection Process Sectoral know how, strong relations with farmers and high quality milk supply LOCAL PROUCERS FARMS Keen focus on milk collection processes: X Route optimization; increase in truck fill rate and L/km VILLAGES COOPS TRADERS rate (TL 1m cost savings) X Successful Ra
Slide 14: Supply - The average price development of raw milk
Supply - The average price development of raw milk 2008-2010 Turkey Raw Milk Base Price (L) 0,900 0,85 0,85 0,850 0,800 0,73 0,73 0,73 0,73 0,750 0,700 0,73 0,66 0,63 0,63 0,63 0,63 0,63 0,63 0,650 0,66 0,66 0,600 0,57 0,57 0,57 0,57 0,57 0,550 0,59 0,59 0,59 0,500 0,52 0,52 0,52 0,52 0,52 0,52 0,45
Slide 15: Production - Dairy
Production - Dairy Quality & Hygiene in each step of production X Turkey’s first long life milk producer X Modern facilities in: İzmir (1975) and Eskişehir(1997) İzmir Eskişehir (38 production lines) (30 production lines) X Continuous quality assurance efforts awarded with ; ISO 9001-2008 ISO 14001
Slide 16: Sales & Distribution
Sales & Distribution Yaşar Birleşik Pazarlama; Turkey’s biggest nationwide cold & frozen distribution chain XThe distribution of food & beverage products are realized in -18˚C vehicles for frozen products, +4˚C vehicles for fresh products and classic vehicles for the rest XThe know-how and strong tr
Slide 17: Shareholders Structure of Pınar Süt
Shareholders Structure of Pınar Süt As of August 23, 2010 ; X Share price > 9,75 TL X Market value > 438 mn TL Free Float %39 X Paid-in capital > 44.951.000 TL X Free float > %39 Yaşar X Foreign shares in free float > 44% Holding 61% Relative And Absolute Performance Of Pınar Süt Shares Relative to
Slide 18: Participations
Participations Yaşar Birleşik Pazarlama Ownership % Carrying Value Sales&distribution of Pınar Süt, Dağıtım Turizm ve Ticaret Pınar Et & other food products A.Ş. (YBP) 31.95% 27.2 M TL Ownership % Carrying Value Sales and Distribution of Pınar Pınar Foods GmbH, branded Meat and Dairy products German
Slide 19: Financial Results
FINANCIAL FINANCIAL RESULTS RESULTS
Slide 20: 2005-2009 Performances
2005-2009 Performances GROSS PROFIT NET PROFIT (Million TL) (Million TL) 107 58 91 90 69 69 40 34 29 22 CAGR + %11 CAGR + %27 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 EBITDA (Million TL) 71 X Diversified product portfolio 57 52 X Efficiency cost control in all process, X Training, OMI-cost
Slide 21: Income Statement
Income Statement 30 June 2010 30 June 2009 Difference % Variance (Million TL) Net Sales 277,4 227,1 50,3 22,1 Cost of Good Solds (227,4) (170,0) (57,4) 33,7 Gross Profit 50,0 57,1 (7,1) (12,5) R&D Expenses (2,3) (1,9) (0,5) 24,1 Sales, Distribution and Marketing Expenses (11,8) (12,9) 1,1 (8,3) Gene
Slide 22: Profit Margins
Profit Margins GROSS PROFIT MARGINS (%) OPERATING PROFIT MARGINS* (%) 30,00 25,1 16,00 15,0 25,00 22,2 14,00 11,7 20,00 18,5 18,0 12,00 10,00 9,2 15,00 7,8 8,00 10,00 6,00 4,00 5,00 2,00 0,00 0,00 2008 2009 2009 1H 2010 1H 2008 2009 2009 1 H 2010 I H EBITDA MARGINS ** NET PROFIT MARGINS (%) (%) 20,0
Slide 23: Second Quarter Results
First Quarter Results NET SALES (Million TL) X Growth in sales and increase in market share 139 138 X Increase in net sales compared to last year which is mainly due to price increases 114 %23 %1 EBITDA (Million TL) 2009 II.Q 2010 II.Q 2010 I.Q %16 %13 X High profit margins compared to previous year
Slide 24: Basic Ratios, Net Financial Debts & Net Working Capital
Basic Ratios, Net Financial Debts & Net Working Capital 30 June 2010 31 December 2009 30 June 2010 31 December 2009 (Million TL) Current Ratio 1,68 2,17 Cash & Cash Equivalents 5,1 3,3 Leverage Ratio 0,32 0,27 S/T Bank Borrowings 3,5 5,3 S/T Fin. Debt/T Fin Debt 0,21 0,26 L/T Bank Borrowings 12,7 14
Slide 25: Evaluation of the first half of 2010
Evaluation of the first half of 2010 X High profit margins compared to previous years because of the low price of raw milk in the first term of 2009 X Raw milk price increases which have started in the 3rd quarter of 2009, continued also in 2010 X Part of raw material price increases have been refle
Slide 26: 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 27: Thank You
Thank You Questions & Answers Page 26 Pınar Süt
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