Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Q3 2018 Earnings Presentation
33 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Nov 9, 2018
Slide 1: 3Q 2018 Earnings Release
ÜLKER BİSKÜVİ 3Q 2018 EARNINGS RELEASE Cenker UÇAN, CFO İstanbul, 9 November 2018
Slide 2: Agenda
Agenda • Turkey Macro Economic Overview • Market Growth • 3Q 2018 Highlights and Consolidated Operational Performance • Domestic Operations • International Operations • Balance Sheet Highlights Ülker Bisküvi 3Q 2018 Earnings Release 2
Slide 3: Turkey Macro Economic Overview
Turkey Macro Economic Overview Retail Sales Volume Index ▪ Seasonal and calendar adjusted retail sales volume with constant prices increased by 0,4% in August 2018 compared with the previous month 2016 (r) 2017 (r) 2018 (r) Industrial Production ▪ As of August 2018 Industrial Production index realiz
Slide 4: Market Growth
Market Growth Total Confectionary 4,8% 19,0% Total Confectionary market grew by 4,8 % in volume and 19,0% in value terms Volume Value Biscuits 2,2% 16,7% Biscuit market grew by 2,2 % in volume and 16,7 % in value terms Volume Value Chocolate 8,8% 21,7% Chocolate market grew by 8,8 % in volume and 21
Slide 5: 3Q 2018 Highlights and Consolidated Operational Performance
3Q 2018 HIGHLIGHTS AND CONSOLIDATED OPERATIONAL PERFORMANCE
Slide 6: Factories and capacity across countries
TR: Bisc.& Choc.& Cakes 4 in Istanbul, 1 in Karaman, 1 in Ankara total 6 Factories. Over 70+ years Total Capacity: 789k of experience in Turkey Egypt Hi-Food Production: 4 Biscuits countries, 10 Capacity: 44k tons/year facilities Total Capacity: 957K tons KSA Largest capacity FMC&IBC in the region w
Slide 7: 3Q'18 Consolidated Performance Highlights
3Q’18 Consolidated Performance Highlights Volume Revenue Gross Profit Gross Margin 130KTons TL1.46 BN 28,1 % TL 411 MN improved Growth 4,7 % Growth + 37,4 % Growth + 45,3% by 150 bps EBITDA Net Profit EBITDA Margin TL235 MN 16,1 % TL 222 MN improved Growth +38,2 % by 10 bps Growth + 161,4 % Ülker Bi
Slide 8: Continued focus on generating EBITDA and margin improvement
Continued focus on generating EBITDA and margin improvement TL ('000) 3Q 2017 3Q 2018 % 9M17 9M18 % Confectionary Volume (Ton) 123.508 129.687 5,0% 397.404 408.040 2,7% Revenue 1.062.311 1.463.183 37,7% 3.523.510 4.220.779 19,8% Confectionary Revenue 1.061.423 1.457.974 37,4% 3.447.885 4.205.138 22,
Slide 9: Maintained our strong foothold and delivered our targets in Q3
Maintained our strong foothold and delivered our targets despite the challenging market conditions in Q3. Confectionary Sales Volume (Tons) Confectionary Sales Value (TLm) 123.508 129.687 1.061 1.458 12.999 123 13.702 38.360 42.447 103 653 481 71.446 74.241 682 478 Biscuits Chocolate Cake 3Q'17 3Q'1
Slide 10: Greater discipline, speed and agility continued in 9M'18
Greater discipline, speed and agility continued in 9M’18 Confectionary Sales Volume (Tons) Confectionary Sales Value (TLm) 4.205 397.403 408.040 3.448 40.510 354 43.617 322 129.758 138.304 1.966 1.614 224.028 229.226 1.512 1.884 Biscuits Chocolate Cake 9M'17 9M'18 9M'17 9M'18 ▪ Consolidated Confecti
Slide 11: Domestic Operations
on 9 i MER 'YURDUMUN ULKER’ “OFT s0vGR tue VILDIZ * HOLDING
Slide 12: Turkey – #1 in Total Confectionary with 35% Market Share
Turkey – #1 in Total Confectionary with 35% Market Share Value Growth in all 3 categories Biscuits – 37,9% Market Share Chocolate – 36,3% Market Share Cake – 25,6% Market Share #2 #1 #2 #1 in Family Cake # 1 in Petit Beurre # 1 in Creamy Biscuits #2 in Portion Muffin Coated Cake # 1 in Special Biscu
Slide 13: Branded Sales Contribution of Synergy Products and New Launches
Branded Sales Contribution of Synergy Products and New Launches 2018 Synergy Products 2018 New Product Launches biscuits cakes 2017 Synergy Products chocolate Ülker Bisküvi 3Q 2018 Earnings Release 13
Slide 14: Sustain our strong position with strong brands and new innovations
Sustain our strong position with our strong brands and new innovations in Domestic Operations Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 90 93 899 159 173 108 118 747 3Q'17 3Q'18 3Q'17 3Q'18 3Q'17 3Q'18 3Q'17 3Q'18 ▪ Volume increase driven by ▪ Revenue up by 20,3% in to
Slide 15: Strengthen our position with portfolio optimizations, pricing and launches in 9M'18
Strengthen our position with portfolio optimizations, effective pricing and new launches in 9M’18 Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 287 292 2.351 2.718 512 566 334 370 9M'17 9M'18 9M'17 9M'18 9M'17 9M'18 9M'17 9M'18 ▪ Volume improved by 2,0% in ▪ Revenue was up
Slide 16: Strategy to Focus in Branded Confectionary Products
Strategy to Focus in Branded Confectionary Products ✓ In line with our strategy, we focused on branded product sales and continue to enjoy significant contribution improvement at the operational front. Branded & Non-Branded Volume Breakdown Branded & Non-Branded Revenue Breakdown 9M’17 9M’18 9M’17 9
Slide 17: International Operations
INTERNATIONAL OPERATIONS
Slide 18: Great Potential to Drive Additional Growth
Great Potential to Drive Additional Growth Hi Food FMC Hamle UI IBC UI MENA IBC (EGYPT) (KSA) (KAZAKHSTAN) MENA (KSA) March June March December May 2016 2016 2017 2017 2018 ✓ Ability to act as local producer and regional production hubs as well ✓ Ability to build higher scale in primary markets ✓ Ac
Slide 19: Saudi Arabia – more and more stronger with higher market share
Saudi Arabia – more and more stronger with higher market share – position # 1 #1 FMC Financial Review Biscuits Market Share 16,2% 15,0% 9M'17 9M'18 Change 11,4% 10,4% 7,2% Sales Volume (tons) 27.293 32.284 18,3% Net Sales(SAR x000) 361.732 452.234 25,0% Ülker Competitor 1 Competitor 2 Competitor 3 M
Slide 20: Saudi Arabia IBC Operations
Saudi Arabia – IBC Operations Expansion in all lines proves that the strategy of the acquisition is on right track IBC Financial Review IBC Product Portfolio 9M '17 9M '18 Change Sales Volume (tons) 8.189 10.094 23,3% Net Sales(SAR x000) 102.702 126.962 23,6% EBITDA(SAR x000) 21.654 35.185 62,5% EBI
Slide 21: Egypt – Target #1 in Biscuits, #2 in Cake & Top in Chocolate
Egypt – Target #1 in Biscuits, #2 in Cake & Top 5 in Chocolate HI-FOOD & ULKER EGYPT Financial Review Biscuits Market Share 9M '17 9M'18 Change 18,2% 15,6% Sales Volume (tons) 22.012 24.477 11,2% 12,3% #2 Net Sales(EGPx000) 652.791 884.682 35,5% EBITDA(EGPx000) 23.924 134.158 460,8% Competitor 1 Ülk
Slide 22: UI MENA Operations
UI MENA Operations To become # 1 or strong # 2 in all MENA UI MENA Financial Review 9M '17 9M'18 Change Sales Volume (tons) 7.738 7.989 3,3% Net Sales(AED x000) 130.073 131.437 1,0% EBITDA(AED x000) 40.888 36.800 -10,0% EBITDA Margin 31,4% 28,0% Since import business has been shifted to production i
Slide 23: Kazakhstan – A bridge from East to West and our gate to Asia
Kazakhstan-A bridge from East to West and our gate to Asia HAMLE Financial Review Chocolate Market Share 9M'17 9M'18 Change 61,4% #3 Sales Volume (tons) 8.119 8.750 7,8% Net Sales(KZTx000000) 6.461 7.427 14,9% 12,6% 10,9% 3,1% EBITDA(KZTx000000) 274 164 -40,1% Competitor 1 Competitor 2 Ülker Competi
Slide 24: International Operations
International Operations Making the Right Choices and Investing for Growth Egypt Saudi Arabia Kazakhstan #2 #1 #3 Biscuits – 15,6% Market Share Biscuits – 23,4% Market Share Chocolate– 10,9% Market Share # 1 in Plain # 1 in Filled # 1 in Biscuits with filling # 1 in Filled (Biskrem and Tamr brands)
Slide 25: 2018 New Launches & Synergy Products
2018 New Launches & Synergy Products EGYPT KAZAKHISTAN SAUDI ARABIA SYNERGY PRODUCTS Ülker Bisküvi 3Q 2018 Earnings Release 25
Slide 26: Positive contribution to growth and strong operational execution in Q3'18
Positive contribution to growth and strong operational execution continued in Q3’18 Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 237 33 37 559 118 315 123 62 3Q'17 3Q'18 3Q'17 3Q'18 3Q'17 3Q'18 3Q'17 3Q'18 ▪ Total volume was slightly up by ▪ Branded revenue up by 78,9% ▪
Slide 27: Investing in our full brand portfolio through acquisitions
Investing in our full brand portfolio through acquisitions Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 111 116 1.487 590 291 1.096 430 198 9M'17 9M'18 9M'17 9M'18 9M'17 9M'18 9M'17 9M'18 ▪ Total Confectionary volume ▪ Branded revenue up by 40,7% ▪ Gross profit increased
Slide 28: Strategy to Focus in Branded Confectionary Products
Strategy to Focus in Branded Confectionary Products Confectionary Branded & Non-Branded Volume Confectionary Branded & Non-Branded Revenue Breakdown Breakdown 9M’17 9M’18 9M’17 9M’18 Non Non Non Branded Branded Branded Non Branded 23% 19% 27% 22% +4 pp +3 pp 77% 78% 81% 73% Branded Branded Branded B
Slide 29: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS
Slide 30: Net Working Capital & Net Debt Position
Net Working Capital & Net Debt Position Net Debt (TLm) – Net Debt/EBITDA (x) Maturity Breakdown as of September 2018 1,78x 1,95x 7% short term 1.305 1.683 long term 93% 31 December 2017 September 30 June 2018 2018 Average Working Capital Days & Net Working Capital ▪ Net debt as of Sept 2018 : 1.683
Slide 31: Net FX Position
Net FX Position The FX net position of B/S has been minimized through derivative instruments (Million TL/$/€/£) TL Equivalent USD EURO GBP Cash Equivalents & Monetary Assets 4.785,3 794,1 3,3 0,7 Trade Receivables 170,7 20,7 6,3 0,4 Total Assets 4.955,9 814,8 9,6 1,1 Financial Liabilities 325,1 33,3
Slide 32: Investor Relations Contact
Investor Relations Contact For further information please e-mail ir@ulker.com.tr or call Ülker Investor Relations +90 (216) 524 25 56 Beste Tasar Investor Relations Director Tel: +90 (216) 524 25 56 email: beste.tasar@ulker.com.tr http://ulkerbiskuviyatirimciiliskileri.com Ülker Bisküvi 3Q 2018 Earn
Slide 33: 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 a
Ülker Bisküvi Sanayi A.Ş. — Q3 2018 Earnings Presentation on 6ix