Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Q3 2020 Earnings Presentation
42 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Nov 6, 2020
Slide 1: Investor Presentation 3Q 2020
INVESTOR PRESENTATION 3Q 2020 istanbul, 6 November 2020 YVILDIZ * HOLDING :
Slide 2: Agenda
VILDIZ * HOLDING 4A AGEN Turkey Macro Economic Overview Market Growth Communication Highlights 3Q 2020 Highlights and Consolidated Operational Performance Domestic Operations Export and International Operations Balance Sheet Highlights GLKER
Slide 3: Turkey Macro Economic Overview
Turkey Macro Economic Overview YILDIZ * HOLDING
Slide 4: Turkey industry and food manufacturing indices
Total industry 2019(r) Total industry 2020 Manufacture of food products 2019(r) Manufacture of food products 2020 119 119 116 117 115 117 112 137 110 110 112 121 107 117 118 129 103 114 113 115 113 113 115 114 114 112 112 110 109 109 109 98 119 105 106 107 106 105 91 103 104 103 114 109 115 86 111 1
Slide 5: Market Growth
Market Growth YILDIZ * HOLDING
Slide 6: Market volume and value growth
▪ ▪ Volume Value Volume Value ▪ ▪ Volume Value Volume Value 6
Slide 7: Communication Highlights
Communication Highlights YILDIZ * HOLDING
Slide 8: Q3'2020 Communication Highlights
Q3'2020 Communication Highlights Ulker 2019 Sustainability report published w«erSifira yakin israfla biiyiiyor nn ylizde sirket, yaklasik VILDIZ * HOLDING Ulker received an award in the category of snacking at the «Good Life Brand» for the third time. Award ceremony organized by Sustainable Brands “
Slide 9: Q3'2020 Communication Highlights - COVID Priorities
Q3’2020 Communication Highlights -COVID 19 Priorities y Safety and well-being is our #1 priority VILDIZ * HOLDING Continue to Build & Invest in Brands Gj Continue to keep focus on strict ! management ff forSupply | Chain resilience
Slide 10: Q3'2020 Competitive Landscape
Q3'2020 Competitive Landscape Outstanding scale, brand recognition, and consumer reach Turkey total Macrosnacks value share1 Brand recognition across sectors in Turkey? Top-of-Mind Spontaneous awareness awareness Market share KER 22.4% Competitor 1 . Competitor 1 Competitor 2 - Competitor 2 4 Compet
Slide 11: 3Q 2020 Highlights and Consolidated Operational Performance
3Q 2020 Highlights and Consolidated Operational Performance 11 YILDIZ * HOLDING
Slide 12: Largest Confectionary Company in the Region
Largest Confectionary Company the Region 75 years of experience in Turkey Production: 4 countries, 10 facilities Total Capacity: around 1Mtons Largest capacity in the region with strategically located plants
Slide 13: 2020 9M Consolidated Performance Highlights
2020 9M Consolidated Performance Highlights VILDIZ * HOLDING Revenue 6.750 MTL Growth + 19,3% EBITDA 1.181 MTL Growth + 22,6% Gross Profit 1.926 MTL Growth + 24,6% EBITDA Margin 17,5% Improved by 50 BPS Gross Margin 28,5% Improved by 120 BPS Net Debt/EBITDA 2020 : 0,48x 2019: orn
Slide 14: Another Solid Quarter Reflecting Diversified Growth and Continued Margin Execution
Another Solid Quarter Reflecting Diversified Growth and Continued Margin Execution TL (‘OOO) 3Q 2019 3Q 2020 | %* | 9M 2019 9M 2020 | «| Confectionary Volume (Ton) 137.496 1.893.109 137.665 2.228.799 622.144 Revenue Gross Profit 498.163 Gross Profit Margin 26,3% 27,9% EBITDA 314.569 386.372 EBITDA M
Slide 15: 1.079 1.010 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 15
12 11 44 48 140 147 1.079 884 81 79 1.010 845 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 15
Slide 16: 3.399 2.692 2.494 2.960 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 16
391 36 31 423 144 160 3.399 2.692 244 247 2.494 2.960 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 16
Slide 17: Distribution of exports
I ibution of exports @ Domestic International @ Domestic International 17 YILDIZ X HOLDING
Slide 18: Domestic Operations
Domestic Operations ~“ YILDIZ * HOLDING 18
Slide 19: Domestic market shares MAT'19 vs MAT'20
41,8% 41,0% 40,5% 40,4% 23,3% 22,0% MAT'19 MAT'20 MAT'19 MAT'20 MAT'19 MAT'20 19
Slide 20: Successful Innovations launched in 3Q'20
Successful Innovations- launched in 3Q’20 YILDIZ X HOLDING
Slide 21: Domestic 3Q results: volume, revenue, gross profit, EBITDA
| 95 - 3Q'19 3Q'20 Consolidated sales volume decreased by mainly driven by Market contraction due to covid in volume terms YILDIZ X HOLDING 1.311 3Q19 3Q'20 Revenue was up by in total thanks to; Portfolio optimizations Very successful launches 283 21,6% 3Q'19 3Q'20 Gross profit increased by Gross pr
Slide 22: Domestic nine months: Continue to Outperform
9M'19 9M'20 Consolidated sales volume was up by in 9M’20 attributable to: New innovative product launches in all categories Effective price campaigns in all portfolio YILDIZ X HOLDING Continue to Outperform Nine Months of the Year All figures set out in the table above are related to products sold i
Slide 23: Non Branded vs Branded
Non Branded 6% 94% Branded 23 17
Slide 24: Export and International Operations
Export and International Operations 24 YILDIZ * HOLDING
Slide 25: M&A Track Record - Well positioned for future growth
M&A Track Record —- Well positioned for future growth Ability to act as local producer and regional production hubs as well Ability to build higher scale in primary markets Access higher growth in confectionary adjacencies in biscuit category Potential to add new business capabilities in core catego
Slide 26: Market share versus competitors
16,2% 14,3% 10,7% 8,2% Ülker Competitor 1 Competitor 2 McVitie's ▪ 24,4% ▪ ▪ 14,3% ▪ 10,7% ▪ Ülker Competitor 1 Competitor 2 26
Slide 27: Saudi Arabia - IBC Operations Efficiency in All Lines
Saudi Arabia - IBC Operations Efficiency in All Lines Proves That The Strategy of the Acquisition is on Right Track Ew 9M'19 9M'20 Change Sales Volume (Tons) 10.159 10.309 1,5% Net Sales (SAR x000) 126.800 125.185 -1,3% EBITDA (SAR x000) 35.024 36.673 4,7% EBITDA Margin 27,6% 29,3% ONS IN A NUT SHEL
Slide 28: Leading the Market in Our Second Largest Market KSA
Leading the Market in Our Second Largest Market KSA AL REVIEW() —— Ulker became strong number #1 in the region in terms of market share 19,9% 19,1% Increased our market share each consecutive quarter in a contracting market We increased the shelf visibility and we have large presence in modern chann
Slide 29: Egypt - Achieved Number #1 Position in Biscuits
Egypt - Achieved Number #1 Position in Biscuits, Target to be #2 in Cake & Top 5 in Chocolate HI-FOOD & ULKER EGYPT FINANCIAL REVIEW BISCUITS MARKET SHARE #1 9M'19 9M'20 Change Sales Volume (tons) 25.996 25.138 -3,3% Net Sales(EGPx000) 983.333 973.705 -1,0% 17,6% 15,0% 10,3% EBITDA(EGPx000) 171.285
Slide 30: UI MENA Operations to Become #1 or Strong #2 in All MENA
UI MENA Operations to Become # 1 or Strong # 2in All MENA UI MENA FINANCIAL REVIEW 9M'19 9M'20 Change Sales Volume (tons) 8.014 9.076 13,3% Net Sales(AED x000) 114.271 124.746 9,2% EBITDA(AED x000) 36.822 44.173 20,0% EBITDA Margin 32,2% 35,4% ™ Ulker acquired Ul MENA which owns Amir Global (the own
Slide 31: 55,3% 16,7% 12,9% 7,5% ▪ ▪ ▪ ▪ ▪
55,3% 16,7% 12,9% 7,5% ▪ ▪ ▪ ▪ ▪ 31
Slide 32: Market shares MAT19 vs MAT20
24,0% 24,4% 16,9% 17,6% 12,2% 12,9% MAT 19 MAT20 MAT 19 MAT20 MAT 19 MAT20 32
Slide 33: 2019 & 2020 New Launches
2019&2020 New Launches & YILDIZ X HOLDING
Slide 34: International 3Q results: volume, revenue, gross profit, EBITDA
3Q'19 3Q'20 Total confectionary volume was up by Higher volume mainly resulted from new launches and improved penetration Positive contribution of synergy products and strong sales in all categories continued t out in the tab Allfigu YILDIZ X HOLDING Positive Contribution Fra Operations Continued i
Slide 35: International nine months: Strong Performance
Strong Performance with 9M'19 9M'20 Total confectionary volume was up by Higher volume mainly resulted from positive contribution of synergy products and strong sales in all categories Positive impact of McVities’ on the back of new launches figures s YILDIZ X HOLDING t out in the 2.702 2.109 9M'19
Slide 36: Non Branded vs Branded
21% 19% 16% 15% 79% 81% 84% 85% Non Branded 6% 94% Branded 36
Slide 37: Balance Sheet Highlights
Zities Saklikoy Vulafli VILDIZ * HOLDING pene WY AGENDA 37 7 Balance Sheet Highlights iiLKER
Slide 38: Ulker issued first Eurobond in the food manufacturing industry in Turkey
Ulker issued first Eurobond in the food manufacturing industry in Turkey with strong demand from investors Transaction Conditions Transaction Highl ESI U lker BiskiiviSanayi A.S. ESTeacrii i B+ by S&P (stable) / BB-by Fitch (negative) v We issued our first Eurobond with an amount of $650mm at a yiel
Slide 39: Net Working Capital
Net Working Capital & N 726 48% 31 December 2019 30 September 2020 Long Term @ Short Term 2.172MTL/76 Days 3.070MTL/91 Days [) [ j i l j — " September2019 ~ September 2020 A/R @ap Inv YILDIZ X HOLDING
Slide 40: Outstanding FX Position
Outstanding FX Position nTs/6) Equivalent eRe Cash Equivalents & Monetary Assets 7.870 Trade Receivables Total Assets Financial Liabilities Trade Payables Other Current Liabilities Current Liabilities Financial Liabilities Non Current Liabilities Total Liabilities Net Position Derivative Transaction
Slide 41: Investor Relations Contact
Investor Relations Contact For further information please e-mail [ 2 routkercomt: or call | Ulker Investor Relations & +90 (216) 524 25 56 Beste Tasar Investor Relations Director +90 (216) 524 25 56 a & beste.tasar@ulker.com.tr ® http:/ulkerbiskuviyatirimciiliskileri.com VILDIZ * HOLDING
Slide 42: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Ulker BiskUvi SanayiA.S. (“Ulker”) This presentation contains forward-looking statements which are based on certain expectations and assump
Ülker Bisküvi Sanayi A.Ş. — Q3 2020 Earnings Presentation on 6ix