Ulker Biskuvi Sanayi A.s. · BIST:ULKER

Ulker Biskuvi Sanayi A.s — Q3 2022 Earnings Presentation

32 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Nov 9, 2022

  1. Slide 1: Investor Presentation 3rd Quarter 2022

    Investor Presentation 3RD Quarter 2022 9 November 2022 1

  2. Slide 2: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 2

  3. Slide 3: A regional power with unique performance

    Despite heavy challenges we achieved outstanding results in 22 Market leader with #1 in macro 36% in snacking snacking business category A regional power with unique performance 18,9% consolidated 127,8% EBITDA topline margin growth 3

  4. Slide 4: Consolidated performance highlights

    22 Consolidated performance highlights Revenue 19.179 MTL 3. 633 MTL EBITDA Growth + 127,8% Growth + 142,9% Gross 5.568 MTL Net Debt/ 2022: 2,99x Profit Growth + 134,1% EBITDA 2021: 3,54x 29,0% 2022: 563 MTL Gross Operating Margin Growth + 80bps Cash 2021: 309 MTL Flow 4

  5. Slide 5: Taking action to navigate current operating environment

    Taking action to navigate current operating environment Retail Landscape Macro Currency Environment Headwind CBRT cut the 1-week TRY depreciation (by Challenged with repo rate (policy rate) by c10% against USD and inflationary 150bps to 10.5% (Prior: c4% against EUR) and pressures 12%-3rd cut in the

  6. Slide 6: Well positioned in a challenging environment

    Well positioned in a challenging environment 9M'22 9M'21 % Q3'22 Q3'21 % Total Volume (Ton) 500.853 480.505 4,2% 163.406 165.387 -1,2% Total Revenue 19.178.880 8.418.957 127,8% 7.301.820 2.976.133 145,3% Gross Profit 5.567.702 2.377.880 134,1% 2.020.902 804.184 151,3% Gross Profit Margin 29,0% 28,2%

  7. Slide 7: Awards - Fully traceable cocoa beans from Ivory Coast

    Awards - We have fully traceable 13.000 t /year cocoa beans from Ivory Coast 100% of Cocoa from Ivory Coast is Traceable to FARM-GATE Winner of Sustainable 32.5% of Cocoa to Traceable to FARM-GATE 7

  8. Slide 8: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 8

  9. Slide 9: Strong productivity on supply chain and sales operations

    Strong productivity on supply chain and sales operations • Successful back to school period in all regions • Continue to invest in our brands • Strong momentum in innovations under key brands McVities & Godiva • Effective & balanced channel mix management • High sales performance in modern channel s

  10. Slide 10: Consolidated performance highlights

    22 Consolidated performance highlights Revenue 7.302 MTL 1.254 MTL EBITDA Growth + 145,3% Growth + 149,4% Gross 2.021 MTL Net Debt/ 2022: 2,99x Profit Growth + 151,3% EBITDA 2021: 3,54x Gross 27,7% Margin Growth + 70bps 10

  11. Slide 11: Successful quarter on the back of successful back to school period

    Successful quarter on the back of successful back to school period, change in the product mix and timely sizing/pricing activities Snacking Sales Volume (Ktons) Snacking Sales Value (Mtl) 145 144 2.899 7.078 12 13 204 566 51 51 1.383 3.164 82 80 1.312 3.348 Q3'21 Q3'22 Q3'21 Q3'22 BISCUIT CHOCOLATE

  12. Slide 12: Strong start to the year supported YTD results

    Strong start to the year supported YTD results Snacking Sales Volume (Ktons) Snacking Sales Value (Mtl) 424 439 8.131 18.483 31 505 1.355 37 158 162 4.069 8.662 235 240 3.558 8.466 9M'21 9M'22 9M'21 9M'22 BISCUIT CHOCOLATE CAKE BISCUIT CHOCOLATE CAKE • Total snacking sales volume increased by 3,5% •

  13. Slide 13: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 13

  14. Slide 14: Turkey Strong #1 in total snacking with 36% market share

    Turkey Strong #1 in total snacking with 36% market share Biscuits 40% Market Share #1 Chocolate-40% Market Share #1 Cake-22% Market Share #2 #1 in Petit Beurre #1 in Creamy Biscuits 4 out of Top 5 in Chocolate Covered #1 in Family Cake #1 in Special Biscuits #2 in Cracker #2 in Portion Muffin Coated

  15. Slide 15: Turkey NPD sales and new product launches

    Turkey-NPD sales contribute 15% of total domestic sales in 2022 New Product Launches BISCUITS CAKE CHOCOLATE KIDS 15

  16. Slide 16: Turkey: supported by back to school period and channel & mix optimisation

    Turkey : supported by back to school period and strong channel & mix optimisation Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 762 101 105 4.588 1.093 1.751 432 292 Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 • Snacking sales volume up by • Snacking revenue wa

  17. Slide 17: Strong start of H1 with excellent Q3 drive exceptional 9M results

    Strong Start of H1 with excellent Q3 drive exceptional 9M 22 results Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 307 11.434 2.875 289 2.070 25,0% 25,1% 4.921 1.230 855 24,1% 26,6% 26,1% 23,4% 9M'21 9M'22 9M'21 9M'22 9M'21 9M'22 9M'21 9M'22 • Snacking sales volume

  18. Slide 18: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 18

  19. Slide 19: International: Maintained the strong position in the market

    International : Maintained the strong position in the market Biscuits 25,5% M.Share (*) #1 Biscuits-17,0% M.Share (*) #1 Chocolate-15,5% M.Share (*)#2 #1 in Plain #1 in Filled #1 in Filled (Biskrem and Tamr brands) #1 in Biscuits with Filling #1 Coated #2 in Filled Wafer #4 in Wafer #1 in Digestives

  20. Slide 20: NPD Sales contributes

    NPD Sales contributes Saudi Arabia Egypt Kazakhstan 20

  21. Slide 21: Stable results and strong financial position in troubled times

    Stable results and strong financial position in troubled times Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 135 132 7.049 2.693 1.562 3.210 1.148 641 9M'21 9M'22 9M'21 9M'22 9M'21 9M'22 9M'21 9M'22 • Snacking volume decreased by • Snacking revenue up by 119,6% • G

  22. Slide 22: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 22

  23. Slide 23: Acquisition Highlights: reach pivotal EBITDA margins

    Acquisition Highlights : reach a pivotal EBITDA margins Hi Food FMC Hamle UI MENA IBC (EGYPT) (KSA) (KAZAKHSTAN) (UAE) (KSA) (TR) March June March December May August 2016 2016 2017 2017 2018 2021 EBITDA Contribution of Acquisitions-9M 2022 • Ability to act as local producer and regional production

  24. Slide 24: Acquisition Highlights: EBITDA % development in years

    Acquisition Highlights : EBITDA % development in years NORTH AFRICA (HIFOOD) MIDDLE EAST (FMC-IBC-UI MENA) %15,4 %16,7 %24,5 %22,7 %23,9 %23,1 %22,6 %14,8 %18,3 %11,7 %9,2 %9,8 2017 2018 2019 2020 2021 9M 22 2016 2018 2019 2020 2021 9M 22 Current EBITDA % Total EBITDA Contribution Current EBITDA % T

  25. Slide 25: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 25

  26. Slide 26: Stronger balance sheet with improved ratios

    Stronger balance sheet with improved ratios (*)Covenant Based Net Debt/Ebitda (X) Maturity Breakdown as of September 2022 3,67 2,91 2,84 47% 3,54x 3,54x 3,22x 0,42x December June September 53% 2021 2022 2022 Short Term Long Term Average Working Capital Days & Net Working Capital FX Hedge strategy 5.

  27. Slide 27: Agenda

    01 Management Overview AGENDA 02 Quarterly Update 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights 07 2022 Guidance 27

  28. Slide 28: 2022 Consolidated Guidance

    2022 Consolidated Guidance Net EBITDA Sales Margin 2021 REALISED 12,5BNTL 18,6% 2022 GUIDANCE 22,0BNTL 18,6% 2022 GUIDANCE revised 26,5BNTL 18,6% 28

  29. Slide 29: Strong growth and profitability continues

    Strong growth and profitability continues VOLUME 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (‘000 ton) 422 478 480 514 646 670 644 674 681 660 28.001,0 26.500 27.001,0 26.001,0 25.001,0 19,8% 19,8% 24.001,0 19,7% 18,6% 18,6% 23.001,0 22.001,0 17,4% 21.001,0 20.001,0 15,0% 19.001,0 18.001,0 17

  30. Slide 30: Next few quarters are critical to deliver on what matters most

    Next few quarters are critical to deliver on what matters most Strengthening the Snacking Company of Choice. 01 02 03 04 Continue to Retain Grow Drive Share Gains Support Our Volumes & Values in Absolute Terms Brands

  31. Slide 31: Investor relations contact

    Investor relations contact For further E-Mail Phone information please e-mail ir@ulker.com.tr +90 (216) 524 25 56 or call 31

  32. Slide 32: Disclaimer

    Disclaimer This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Ülker Bisküvi Sanayi A.Ş. (“Ülker”) This presentation contains forward-looking statements which are based on certain expectations and assum

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