Tat Gida Sanayi A.s. · BIST:TATGD
Tat Gida Sanayi A.s — Tat Gıda Sanayi A.Ş. — H1 2021 Earnings Presentation
34 slides from Tat Gida Sanayi A.s's earnings presentation, 2021
Slide 1: Tat Gıda Investor Presentation & 1H2021 Financial Results Review
TAT GIDA INVESTOR PRESENTATION & 1H2021 FINANCIAL RESULTS REVIEW
Slide 2: Agenda
AGENDA TAT Gıda at a Glance Business Overview 1H2021 Financial Results Review 2
Slide 3: Tat Gıda at a Glance
TAT GIDA AT A GLANCE 3
Slide 4: Strong Reputation in Local & International Markets
STRONG REPUTATION IN LOCAL & INTERNATIONAL MARKETS Tat, a well-established and pioneering 50+ years of company in Turkey, contributes to know-how and well- healthier lives with plant-based known brand products and sustainable agriculture & quality Strong via digital farming and responsible sharehold
Slide 5: Well-Known Brand with Leading Market Positions in Turkey
WELL-KNOWN BRAND WITH LEADING MARKET POSITIONS IN TURKEY TAT Market Share & Rank * Tat Rank Tat Others Tomato Products 61% 39% #1 Tat ranks # 1 in Turkish market* in Tomato Paste 35% 65% #1 tomato products, tomato paste, ketchup, pickels, and ready-to-eat Ketchup 26% 74% #1 food while among the top
Slide 6: Tat's Wide Product Mix with Healthy Plant-Based Choices
TAT’S WIDE PRODUCT MIX WITH HEALTHY PLANT-BASED CHOICES Tomato Paste Tomato Products Sauces Organic Products Vegetables & Beans Ready To Eat Meals & Pickles Jam & Marmalade Appetizers 6
Slide 7: 50+ Years of Know-How and Experience
50+ YEARS OF KNOW-HOW AND EXPERIENCE Tat Gıda* was established in 1967 by Koç Group’s founder Mr. Vehbi Koç. 2020s • Tat Gıda became 2010s the first company in its sector to be 2000s • The company’s name entitled to receive was changed to Tat TSE COVID-19 Safe • Tat installed a diced Gıda Sanayi A.Ş
Slide 8: Recent Divestitures and Focus on Core Categories
RECENT DIVESTITURES AND FOCUS ON CORE CATEGORIES TAT concentrated on its tomato and canned vegetables business which had 32% gross and 17% EBITDA margin in FY2020; while divested its stake in SEK (dairy products business) in 1Q2021 and Pastavilla in FY2019. SEK had 10% gross margin and 4% of EBITD
Slide 9: Strong Shareholder Structure
Other Kagome Co Ltd & Sumitomo Corp 6,4% STRONG SHAREHOLDER STRUCTURE 5,2% Koç Holding Koç Holding 43,7% Koç Holding <KCHOL>, founded in 1926 by Vehbi Koç, is Turkey’s leading investment holding company. Free-float 41,4% The only Turkish company in Fortune Global 500. Temel Ticaret Koç Holding
Slide 10: Tat in Numbers
2017-2020 Net Sales Gross Margin EBITDA performance* 30.8% CAGR 30.0% (avg) 56.4% CAGR Net Sales (TL mn)* Gross Profit (TL mn) & Gross Margin (%)* EBITDA (TL mn) & EBITDA Margin (%)* 31,6% 31,0% 803 +56% 16,6% +31% 29,1% 15,2% 28,2% 254 553 464 13,5% 134 359 172 84 135 62 35 101 9,7% 2017 2018 2019
Slide 11: Share Performance <TATGD>
Key Stok Data SHARE PERFORMANCE <TATGD> Close (Jul 30, 2021) TAT GIDA <TATGD> has been trading on Borsa Istanbul since 1993. The company is also 8.73 TL/share included in BIST Sustainability Indices. TAT Gida’s Dividend Payout Ratio was 20% in 2021 –excluding income from discontinued Mcap US$140
Slide 12: Business Overview
BUSINESS OVERVIEW 12
Slide 13: Turkey Ranks 5th in Global Tomato Processing Industry
TURKEY RANKS 5TH IN GLOBAL TOMATO PROCESSING INDUSTRY Two-thirds of the total global tomato processing amount takes place in top 5 countries, including Turkey. Turkey, with a production of 2.5 million tons of processed tomatoes in 2020, ranks 5th after the USA, China, Italy and Spain, and repres
Slide 14: Turkey Is Among the Top Tomato Paste Exporters
TURKEY IS AMONG THE TOP TOMATO PASTE EXPORTERS Turkey ranked 7th worldwide among tomato paste exporters. Turkey’s tomato paste exports was 160K tons in 2020, commanding 5% share in global total exports. Global Exports of tomato paste (mn tons) Breakdown of Tomato Paste Exports in 2020 +3,7% US 3,4
Slide 15: Tat Gıda Ranks #7 Among European Tomato Processing Groups
TAT GIDA RANKS #7 AMONG EUROPEAN TOMATO PROCESSING GROUPS 2020 Top European Tomato Processing Groups (000 tons) 1.467 1.068 710 660 577 520 381 Sugal Group Conesa /Spain Agrofusion Mutti /Italy Italtom /Italy Consorzio Tat Gida /Portugal /Ukraine Casalasco /Italy /Turkey Source: TomatoNews 15
Slide 16: Process from Seed to Table
PROCESS FROM SEED TO TABLE All local sales are distributed via Düzey Tüketim; a Koç Group sales & distribution company, specialized on FMCG in Turkey. Düzey also distributes world brands such as Ferrero and Pringles to over 70K outlets. PRODUCTION PROCESSING DISTRIBUTION CONSUMPTION Tat’s production
Slide 17: Seasonality in Production, Sales Spread over the Whole Year
SEASONALITY IN PRODUCTION, SALES SPREAD OVER THE WHOLE YEAR Purchasing Soil Drip irrigation Seedlings Plant Harvesting & Supply Preparation installments Planting Growing Sales of the new harvest takes place from Agreements made with farmers; seedlings, September till the next fertilizers & advance p
Slide 18: Tat Processed 381K Tons of Tomatoes and Produced 106K Tons in 2020
TAT PROCESSED 381K TONS OF TOMATOES AND PRODUCED 106K TONS OF PRODUCTS IN 2020 Tat’s Tomato Process & Production amounts (000 tons) 401 381 326 339 323 319 Tomato Processed 105 106 Tomato Paste 97 94 95 87 210 Tomato Products 66 Vegetable & Other products 73 64 62 57 60 62 35 4 6 8 5 5 4 6 25 27 29
Slide 19: Exports on a Growing Trend
EXPORTS ON A GROWING TREND Export 16% Tat Gıda had a lucrative export year in 2020, delivering goods to consumers in 37 countries by adding Palestine, Romania, Ukraine, Oman, Italy and Israel to its export market. 2019 84% Domestic Export 26% 2020 Domestic 74% 19
Slide 20: Innovation in Agriculture: Digital Farming
INNOVATION IN AGRICULTURE: DIGITAL FARMING With a shift to digital farming, Tat raised its agricultural productivity to around 10 decare/ton vs. 7-8 decare/ton in the region. Tat planted around 2K decares land on average in 2019 and 2020. 20
Slide 21: Financial Results: 1H2021 Highlights
FINANCIAL RESULTS 1H2021 HIGHLIGHTS 21
Slide 22: Investing to Strengthen Portfolio
INVESTING TO STRENGTHEN PORTFOLIO 1H21 Highlights Net Sales* Finalized previously announced disposal of non-core TL 454 mn (15% yoy growth) business (SEK) in 1Q2021 and focus further on continuing operations. Exports Share* 24% of total sales Top-line growth was 15% yoy in 1H21 and 25% yoy in (v
Slide 23: Net Sales Up by 25% YoY in 2Q21
NET SALES UP BY 25% YOY IN 2Q21 Net sales reached TL454 mn; representing a 15% year-on-year growth, despite strong sales performance in March and April 2020 due to the initial outbreak of Covid-19. In 2Q21, net sales growth was 25% yoy. Total sales volume in 1H21 increased by 4% year-on-year and
Slide 24: Strong Export Volumes
STRONG EXPORT VOLUMES Total exports in 1H21 reached TL110 mn (US$14 mn), displaying 69% growth yoy in TL terms and 38% in US$ terms. This represents 24% share in total sales vs. 17% in 1H2020 Total Exports (in US$ mn) Exports’ Share in Total Sales +38% Exports 14,0 Domestic 10,2 6,9 2Q 4,4 83% 17%
Slide 25: Tougher Market Conditions Put Pressure on Margins
TOUGHER MARKET CONDITIONS PUT PRESSURE ON MARGINS Higher raw material prices due to inflation and weak TL depressed margins, as product prices could not be adjusted accordingly due to lower consumer demand. COGS (TL mn) Gross Profit (TL mn) & Gross Margin +19% 33% 32% 31% 319 30% 269 +8% +28% 135
Slide 26: Operating Profit Recovered by 6% in 2Q2021
OPERATING PROFIT RECOVERED BY 6% IN 2Q2021 Operating expenses were kept lower in 1H2020, due to uncertainties related to COVID In line with Tat’s domestic and export strategies; Marketing expenses were higher in 1H2021 compared to 1H2020. Thanks to strong export performance that supported over
Slide 27: Strong Sales Volume in 2Q21 Supported EBITDA Performance
STRONG SALES VOLUME IN 2Q21 SUPPORTED EBITDA PERFORMANCE EBITDA reached TL40 mn in 2Q21, displaying a year-on-year growth of 6% EBITDA (TL mn) EBITDA (TL mn) & EBITDA Margin -10% 74 18.9% 19.4% 67 16.6% +6% 16.4% 15.2% 14.7% 37 40 134 13.5% 84 74 62 67 37 40 1H20 1H21 2Q20 2Q21 FY2018 FY2019 FY202
Slide 28: Net Financial Debt Turn into Net Cash After SEK Sale
NET FINANCIAL DEBT TURN INTO NET CASH AFTER SEK SALE TL mn FY2020 1Q2021 1H2021 Net Cash position of TL93 mn as of 1H21 vs. Net Debt of TL170 mn at FY2020-end. Cash and cash equivalents 121 337 275 ST Financial Debt 116 270 182 LT Financial Debt 175 25 0 Net Financial Debt (Cash) (TL mn) Net Finan
Slide 29: Capex Investments Ongoing
CAPEX INVESTMENTS ONGOING Investment expenditures reached TL58 mn as of 1H2021 vs. TL7 mn in 1H2020. Investments on Continued Operations (TL mn) 58 Tat has initiated new capacity expansion investments as disclosed in March 2021. 37 Pickle capacity to be increased from 5K tons to 22K tons at 27
Slide 30: Net Profit from Ongoing Operations Reached TL89 mn in 1H2021
NET PROFIT FROM ONGOING OPERATIONS REACHED TL89 MN IN 1H2021 With the contribution of higher net financial income and the impact of tax incentives, Net Profit from ongoing operations reached TL 89 mn in 1H2021 vs. TL 44 mn. Net Profit (TL mn) Net Profit Bridge (TL mn) 155 155 49 66 23 Discontinued
Slide 31: Income Statement - Summary
Income Statement - Summary (TL mn) 1H20 1H21 D YoY 2Q20 2Q21 D YoY Sales 394 454 15% 193 241 25% Cost of Sales (-) 269 319 19% 129 166 28% Gross Profit 125 135 8% 63 75 18% Operating Expenses 55 73 33% 28 38 33% Operating Profit 70 62 -12% 35 37 6% EBITDA 74 67 -10% 37 40 6% Net Income(Exp) from Oth
Slide 32: Balance Sheet Summary
1H2021 FINANCIAL Balance REVIEW Sheet -Summary (TL mn) FY2017 FY2018 FY2019 FY2020 Jun 30,20 Current Assets 563 641 780 1,173 1,049 BALANCE Cash SHEET SUMMARY 13 28 10 121 275 Trade receivables 281 323 384 446 388 Inventories 232 238 338 361 296 Non-current Assets 223 223 247 136 191 Total Assets 78
Slide 33: Disclaimer
DISCLAIMER This presentation does contain information and analysis on financial statements that reflect the Company management’s current views. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by
Slide 34: Thank You
THANK YOU FOR FURTHER QUESTIONS PLEASE CONTACT: BANU ÇAMLITEPE - HEAD OF IR BANU.CAMLITEPE@TAT.COM.TR P: +90 216 430 00 00 EXT: 2015 TAT GIDA A.Ş. INVESTORRELATIONS@TAT.COM.TR TAŞDELEN MAHALLESI SIRRI ÇELIK BULVARI NO: 7 ÇEKMEKÖY - İSTANBUL 34