Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Q2 2021 Earnings Presentation
47 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Aug 12, 2021
Slide 1: Investor Presentation 2Q 2021
INVESTOR PRESENTATION 2Q 2021 istanbul, 12 August 2021 YVILDIZ * HOLDING :
Slide 2: Agenda
VILDIZ * HOLDING 4A AGEN Turkey Macro Economic Overview Market Growth Communication Highlights 2Q 2021 Highlights and Consolidated Operational Performance Domestic Operations Export and International Operations Balance Sheet Highlights 2021 Guidance Other GLKER
Slide 3: Turkey Macro Economic Overview
Turkey Macro Economic Overview YILDIZ * HOLDING
Slide 4: Turkey macro economic overview
Turkey macro economic overview RETAIL SALES VOLUME INDEX INDUSTRIAL PRODUCTION CONSUMER CONFIDENCE INDEX Total industry 2020(r) —0= 2019 —o—2020 —e-2021 —0=2019 —o—2020 —»—2021 —Total industry 2021(r) 130 —— Manufacture of food products ng 13 uz 2020(r) 15 “—— Manufacture of food products 2021(r) =
Slide 5: Market Growth
Market Growth YILDIZ * HOLDING
Slide 6: 2021 Year to date domestic market
2021 Year to date domest Total snacking market 21,6% Total chocolate declined by in market down by volume terms and in volume and increased by in increased by in value terms value terms E> Volume Value Total biscuit market Total cake market was contracted by decreased in in volume and volume and inc
Slide 7: Turkey snack market growth analysis January-June 2021
Turkey snack market growth analysis January-June 2021 Value Category Share % Growth % Contribution Category Share % Contribution To Growth To Growth BISCUIT & BISCUIT & WAFER WAFER J CHOCOLATE + + 1YTD20 wYTD21 Total Volume Growth 1YTD20 wYTD21 Total Value Growth = es YILDIZ x HOLDING 4,7 % 19,2 % U
Slide 8: Communication Highlights
Communication Highlights YILDIZ * HOLDING
Slide 9: Q2'2021 Communication
Q2'2021 Communication HeoLoM: GERIiYE LIYOR? bizz@kampus winners have been announced. Ulker celebrated the 2 more videos have been «May 14, World released under Farmers' Day « #GUzelUlkem [#MyBeautifulCountry) sustainability video series. 9 YILDIZ X HOLDING Utker, Milli Futbol Takimlariumizin Yanund
Slide 10: Bonds & Loans
Bonds & Loans TURKEY AWARDS | Shangri-La Bosphorus, Istanbul WINNER CORPORATE FUNDING TEAM OF THE YEAR WINNER SYNDICATED LOAN DEAL OF THE YEAR ULKER USD 110,000,000 & EUR 319,000,000 Syndicated Loan April 2020 7 mew LP YILDIZ X HOLDING Afteraa rigorous selection process Ulker Biskivi won « and » : a
Slide 11: 2Q 2021 Highlights and Consolidated Operational Performance
2Q 2021 Highlights and Consolidated Operational Performance 11 YILDIZ * HOLDING
Slide 12: Largest confectionary company in the region
Largest confectionary company in the region 77 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: 2021 First half consolidated performance highlights
2021 First half consolidated performance highlights Revenue Gross Profit Gross Margin 5.232 MTL 1.391 MTL Growth + 15,7% Growth +6,7% Net EBITDA Debt/EBITDA Free Cash Flow 809 MTL g 2021 :- 0,03x 2021 :439MTL Growth +1,8% 2020 :0.14x 2020: 64MTL 20, VILDIZ * HOLDING
Slide 14: Ulker's volume and value performance 2Q'21 vs 2Q'20
Ulker’s volume and value performance 2Q’21 vs 2Q’20 Biscuits @ Chocolate Total volume decline improved by reducing to in Q2 from 8.8% in Q1 Sales volume in biscuits and chocolates was down by respectively due to; High base impact compared to 2Q'20 ‘Sizing & Pricing activities ‘Consumption slow-down
Slide 15: Ulker's volume and value performance 1H'21 vs 1H'20
Ulker’s volume and value performance 1H’21 vs 1H’20 Biscuits @ Chocolate Biscuits @ Chocolate a Total volume decreased by Total revenue increased by ‘% with the positive contribution in all Sales volume in biscuits, chocolates and cakes was down by categories in Turkey and international operations.
Slide 16: Distribution of exports
I ibution of exports SSSse @ Domestic International @ Domestic International 16 YILDIZ X HOLDING
Slide 17: Operational and financial performance
Operational and financial performance “O00) plop teyie) 2Q 2021 | %* | 1H 2020 1H 2021 | «| Volume (Ton) 137.249 130.645 -4,8% 300.022 279.120 -7,0% Revenue 2.144.641 2.542.416 18,5% 4.520.767 5.232.094 15,7% Gross Profit 587.135 617.719 5,2% 1.303.416 1.391.300 6,7% Gross Profit Margin 27,4% 24,3%
Slide 18: Domestic Operations
Domestic Operations ~“ YILDIZ * HOLDING 18
Slide 19: Turkey - Strong #1 in total snacking with 37,3% market share
Turkey - Strong #1 in total snacking with 37,3% market share in MAT’21 vs MAT’20 a) =a) #1in Creamy Biscuits Aout of Top 5 in Chocolate Covered SE + ) #1in Family Cake ie #1in Special Biscuits #1 in Cracker an #2 in Portion Muffin Coated Cake SP #1in Solid Chocolate | #1in Ch late Filled #2 in Wet C
Slide 20: 2021 New Product Launches
NPD Sales contribute 15, YILDIZ X HOLDING
Slide 21: In 2Q'21 Ulker continued
In 2Q'21 Ulker continued environment in the sna 91 18,3% 11,9% 2Q'20 2Q'21 2Q'20 2Q'21 2Q'20 2Q'21 2Q'20 2Q'21 Sales volume contracted by Revenue was up by in Gross profit increased by EBITDAdecreased by % and mainly driven by totalthanks to; Sizing activities margin contracted by 370bps Gross profi
Slide 22: Sales started to take-off in the last months
Sales started to take-off in the last 2 months January-April YILDIZ X HOLDING May-June 2020 @ 2021 H1 Net Sales Driven by pandemic, the contraction in the tradition channel, nationwide lockdowns limited the net sales growth during January- April 2021 period. Thanks to the effective pricing strategy
Slide 23: In 1H'21 Ulker continued: sales volume contracted
1H'20 1H'21 Sales volume contracted by mainly driven by Covid impact Continuous lockdowns in May Shrinkage in the snacking market Decrease in the purchasing power parity YILDIZ X HOLDING In 1H’21 Ulker continued environment in the snac All figures set out in the table above are related to products s
Slide 24: Non Branded Branded
8% 8% 92% Non 92% Branded 6% 94% Branded 24
Slide 25: Export and International Operations
Export and International Operations YILDIZ * HOLDING
Slide 26: 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 categor
Slide 27: Saudi Arabia - Stronger position
Saudi Arabia - Stronger a share — Position # 1 Sales Volume (tons) 26.982 24.761 -8,2% 14,3% aa Net Sales(SAR x000) 395.964 349.214 -11,8% = EBITDA(SAR x000) 61.864 42.432 -31,4% 6 | EBITDA Margin 15,6% 12,2% Olker Competitor 1 Competitor 2 McVitie's Sales volume decreased by 8,2% due to the signifi
Slide 28: Saudi Arabia — IBC operations efficiency
Saudi Arabia — IBC operations efficiency in all lines proves that the strategy of the acquisition is on right track IBC FINANCIAL REVIEW IBC PRODUCT PORTFOLIO 1H'20 1H'21 Change Sales Volume (Tons) 7.367 7.536 2,3% Net Sales (SAR x000) 88.814 87.245 -1,8% EBITDA (SAR x000) 24.301 22.578 -7,1% EBITDA
Slide 29: EBITDA 1H 2021 EBITDA %
▪ 20,0% ▪ 19,1% 19,1% 17,9% ▪ 16,6% 13,6% ▪ ▪ 134,6 141,1 146,5 98,2 ▪ 63,5 65,0 ▪ 2016 2017 2018 2019 2020 1H 2021 ▪ EBITDA EBITDA % 29
Slide 30: 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 1H'20 1H'21 Change 8,5% Sales Volume (tons) 16.556 18.414 11,2% 15,1% 9 Net Sales(EGPx000) 639.496 688.778 7,7% 10,5% EBITDA(EGPx000) 106.675
Slide 31: UI MENA Operations to become #1 or strong #2 in all MENA
UI MENA Operations to become # 1or strong # 2in all MENA UI MENA FINANCIAL REVIEW 1H'20 1H'21 Change Sales Volume (tons) 6.175 6.047 -2,1% Net Sales(AED x000) 85.274 84.238 -1,2% EBITDA(AED x000) 28.904 33.497 15,9% EBITDA Margin 33,9% 39,8% ™ Ulker acquired Ul MENA which owns Amir Global (the owner
Slide 32: 55,3% 15,5% 13,5% 8,0% ▪ ▪ ▪ ▪ ▪
55,3% 15,5% 13,5% 8,0% ▪ ▪ ▪ ▪ ▪ 32
Slide 33: MAT 20 MAT21
MAT 20 MAT21 MAT 20 MAT21 MAT 20 MAT21 33
Slide 34: NPD Sales contributes 5,7
NPD Sales contributes 5,7 1H2021 YILDIZ X HOLDING
Slide 35: Exports and international 2Q'21
Exports and internation 20'20 20'21 Total volume decreased by driven by the decreasing consumption due to economic slowdown and Covid-19 pandemic and sizing impacts t out in the tab Allfigu YILDIZ X HOLDING above are related to products sold ino 2Q'20 2Q'21 Total revenue up by thanks to; Price adjus
Slide 36: Exports and international 1H'21
Exports and internation 741 Si Ey 396 35,9% 19,2% 1H'20 1H'21 1H'20 1H'21 1H'20 1H'21 1H'20 1H'21 Total volume decreased by Total revenue up by Gross Profit increased by EBITDA in 1H’21 realized at 396 driven by the continues impact thanks to; reflecting the mn TLwith an increase of of Covid19 Price
Slide 37: Non Branded Branded
22% 23% 15% 18% 78% 77% 85% 82% Non Branded 6% 94% Branded 37
Slide 38: Balance Sheet Highlights
Zities Saklikoy Vulafli VILDIZ * HOLDING pene WY AGENDA 38 7 Balance Sheet Highlights iiLKER
Slide 39: Net Working Capital
Net Working Capital & Ne <-> SS 31 December 2020 30 June 2021 Long Term @ Short Term 2.706MTL/79 Days 2.956MTL/91 Days “gam | 439 61 ) . = wis ea» December 2020 ~ June 2021 — A/R erp Inv June 2020 June 2021 YILDIZ X HOLDING
Slide 40: Outstanding FX position
Outstanding FX position ns) Equivalent us sure Cash Equivalents & Monetary Assets 10.926 1.192 Trade Receivables 715 Total Assets 11.641 Financial Liabilities Trade Payables Other Current Liabilities Current Liabilities Financial Liabilities Non Current Liabilities Total Liabilities Net Position D U
Slide 41: 2021 Guidance
2021 Guidance 41 YILDIZ * HOLDING
Slide 42: March 2021 Guidance vs June 2021 Guidance-Revised
March 2021 June 2021 Guidance Guidance-Revised Net Sales 15 % Growth 16 % Growth EBITDA Margin 16,6 % 16,0 % 42
Slide 43: Other
Other 43 YILDIZ * HOLDING
Slide 44: Onem Gida Acquisition
Onem Gida Acquisition Yildiz Holding Core business activities are production chocolate dough processing at Topkap! facility and hazelnut production at Giresun Kesap facility, biscuit flour at Ankara in 2012 Procurement company of confectionary business Total # of employees 537 Annual Production Capa
Slide 45: Strategic Importance of Onem Gida acquisition
Strategic Importance of Onem Gida acquisition ™ Aim is to create high-level synergies in our largest category chocolate business and add value to our company's strategic and profitable growth. Onem Gida acquisition will mean vertical integration for Ulker. Material part of purchase will be under Ulk
Slide 46: 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 47: 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. — Q2 2021 Earnings Presentation on 6ix