Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT

Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri San. A.Ş — Q1 2012 Earnings Presentation

24 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2012

  1. Slide 1: PINAR SÜT MAMULLERİ SAN. A.Ş 2012 1Q Earnings Presentation

    PINAR SÜT MAMULLERİ SAN. A.Ş 2012 1Q Earnings Presentation

  2. Slide 2: Pınar Süt Highlights

    Pınar Süt Highlights • Innovator and pioneer • #1 brand that comes to mind* • Hygienic and EU standard • More than 200 SKUs • Best brand in dairy ** production • R&D expertise • Most sincere milk brand *** • Technical Expertise and sectoral • Among top 4 brands Turkish know-how consumers feel closes

  3. Slide 3: Market Dynamics

    Market Dynamics ► Annual raw milk production is 714 million tons in the world; about 13 million tons in Turkey, Source:Tetrapak, National Milk Council ► Turkey is 15th in world’s league, ► Growth is expected in the milk production/import of developing and growing countries. ►Global milk market reach

  4. Slide 4: Market Dynamics - II

    Market Dynamics - II FMCG Value Growth (ex. tobacco) Raw Milk Base Price in Turkey (TL/lt) 8% Real growth 6,3% 0,95 TL 2012 2011 2010 4% 3,1% 2,6% 0,80 TL 0,3% 0% 0,65 TL 2008 2009 2010 2011  Food category which has increased its share within 0,50 TL FMCG from %46 to %48 through a value growth in 2

  5. Slide 5: Ahead of competition – I

    Ahead of competition – I  There are national (e.g. Sutas, Ulker) and multinational (e.g. Nestle) competitors. Products Market Share Position Süt Ürünleri Pazarı (milyar TL) Pınar Ciro Payı 3,0 20% UHT Light Milk 63% Leader 16,8% 18,1% 18,8% 16,1% Total UHT Milk 31% Leader 2,5 15% 2,0 Organic Milk 1

  6. Slide 6: Ahead of competition - II

    Ahead of competition - II 100% UHT Light Süt (Lider) 100% 100% 100% Toplam UHT Süt (Lider) 81% 78% 80% 75% Organik Süt (Lider&Tek) 64% Zenginleştirilmiş Süt 60% 59% (Çocuk) (Lider) 60% Tereyağı (İkinci) 54% 53% 55% 54% Homojenize Yoğurt 39% 50% (Üçüncü) 40% Sürülebilir Peynir (Lider) 41% 32% 27% 32%

  7. Slide 7: Product Groups & Sales Channels

    Product Groups & Sales Channels Products Groups (2012 1Q) Sauce; 5% Others; 7% Fruit Juice; 6% Milk; 37% Butter; 7% Yoghurt & Sales Channels (2012 1Q) Ayran; 11% Export Direct Cheese; 27% 10% 3% Net Sales YBP 87% 6 Pınar Süt

  8. Slide 8: Growth in Sales

    Growth in Sales Growth Rates of Product Groups 19% 70 1Ç11 1Ç12 26% 60 50 40 18% 30 32% 8% 20% 31% 20 10 Million TL 0 Sos Sauce Fruit Juice Tereyağ Meyve Diğer Butter Others Yoğurt ve Yog&Ayran Peynir Cheese Süt Milk Suyu Ayran Net Sales has grown by 22,1% in 2012 1Q, YoY. 7 Pınar Süt

  9. Slide 9: Export

    Export  Pınar realizes 17% of Turkey’s Dairy Products Exports bu Foreign Sales by Countries (2012 1Q) itself Others; 13% UAE; 10%  Export to 29 countries from Middle East to Europe, from Bahrain; 5% Azerbaijan; U.S.A. to Asia 6%  Market leader in Saudi Arabia and Kuwait with Packaged Qatar; 5% La

  10. Slide 10: Financial Results

    FINANCIAL RESULTS

  11. Slide 11: Sales and Profitability

    Sales and Profitability Net Sales (Mn TL) Net Profit (Mn TL) 651,1 72,9 577,1 57,8 60,1 451,6 482,8 480,7 39,7 34,2 144,6 176,5 18,1 16,1 2007 2008 2009 2010 2011 1Q11 1Q12 2007 2008 2009 2010 2011 1Q11 1Q12 EBITDA* (Mn TL)  The growth in net sales was due to price and volume 84,6 increase in 1Q 20

  12. Slide 12: Income Statement

    Income Statement 31.03.2012 31.03.2011 Difference % Change (Million TL) Net Sales 176,5 144,6 31,9 22,1 Cost of goods Sold (139,9) (111,8) (28,1) 25,1 Gross Profit 36,6 32,8 3,8 11,6 R&D Expenses (1,6) (1,1) (0,5) 42,4 Sales, Distribution and Marketing Expens (13,6) (6,8) (6,8) 100,4 General Adminis

  13. Slide 13: Profit Margins

    Profit Margins Gross Profit Margins(%) Operating Margins* (%) 22,1% 22,7% 21,6% 13,3% 20,5% 20,8% 11,7% 18,0% 10,5% 10,7% 8,4% 8,4% 2009 2010 2011 1Q11 1Q12 4Q11 2009 2010 2011 1Q11 1Q12 4Q11 EBITDA Margins ** (%) Net Profit Margins (%) 16,0% 12,0% 12,5% 14,7% 13,0% 11,2% 13,0% 10,4% 10,3% 11,0% 9,1

  14. Slide 14: Quarterly Results

    Quarterly Results Net Sales (Mn TL) 177 177 ►The net sales grew by %22,1 in the first quarter of 145 2012, YoY. ► Percentage of General Administration expenses was %22 -%0,2 decreased in 1Q 2012, YoY. 1Q11 1Q12 4Q11 EBITDA* (Mn TL) 23 23 ►The raw milk prices remained at the level of the last 19 quar

  15. Slide 15: Basic Ratios, Net Financial Debt & Net Working Capital

    Basic Ratios, Net Financial Debt & Net Working Capital March 31, 2012 December 31, 2011 March 31, 2012 December 31, 2011 (Million TL) Current ratio 2,01 1,81 Cash & Cash Equivalents 0,91 4,99 Leverage ratio 0,28 0,30 S/T Bank Borrowings 19,39 20,45 S/T Fin Debt/T. Fin Debt 0,57 0,58 L/T Bank Borrowi

  16. Slide 16: Overview of 1Q 2012

    Overview of 1Q 2012 ►Raw milk prices diminished in 1H2011 , however gone up somewhat in the second half. Raw milk prices remained at these level in the first quarter of 2012. ► Following our strategy of increasing our market shares we have focused on marketing investments and increased our market sh

  17. Slide 17: Strategies and Targets

    Strategies and Targets Growing above market growth rates in the segments we operate in, with ; Effective price management  Product portfolio targeting consumers in various segments  Widespread distribution network Efficient utilization of social media Concentration on “Away From Home” channel 

  18. Slide 18: Ownership & Participation Structure, Share Performance

    Ownership & Participation Structure Share Performance Relative and Absolute Performance of Pınar Süt Shares 147,65 160 25 140 Free 120 20 Float 100 15 80 18,65 60 10 40 5 20 - 0 Ara 10 Mar 11 Tem 11 Eki 11 Oca 12 İMKB-100'e Göre Relative to PNSUT(left ISE-100 (sol eksen) axis) PNSUT PNSUT (sağ eksen

  19. Slide 19: Disclaimer and Contact Information

    Disclaimer and Contact Information 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-look

  20. Slide 20: Thank you

    Thank you

  21. Slide 21: Appendix

    APPENDIX (3

  22. Slide 22: Company History

    Company History 2010 Pioneer and Leader of Modern Turkish Dairy 2005 1975... 2003 Pınar Kido First organic milk in 2011 The first UHT milk and 1997 Agreement with with Biscuit, Türkiye, Pınar Organic Sodima SAS for the Pınar Çocuk Cream packaged dairy products Pınar SÜT new plant Milk, probiotic pla

  23. Slide 23: Supply - Raw Milk Collection Process

    Supply - Raw Milk Collection Process LOCAL PROUCERS Keen focus on milk collection processes: FARMS  Route optimization; increase in truck fill rate and L/km rate (TL 1m cost savings) VILLAGES COOPS TRADERS  Successful Raw milk supply constitutes an important entry barrier to potential competitors

  24. Slide 24: Sales & Distribution

    Sales & Distribution Yaşar Birleşik Pazarlama; Turkey’s biggest nationwide cold & frozen distribution chain The 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 The know-how and strong t

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