Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri San. A.Ş. — Q3 2011 Earnings Presentation
26 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2011
Slide 1: 2011 3Q Investor Presentation
PINAR SÜT MAMULLERİ SAN. A.Ş 2011 3Q Investor Presentation
Slide 2: Pınar Süt Highlights
Pınar Süt Highlights • Innovator and pioneer • #1 milk brand that comes to • Hygenic and EU standard • More than 200 SKUs mind* producton • R&D expertise • Best brand in dairy ** • Technical Expertise and sectoral • Among Turkey’s Superbrands*** know-how • Among top 5 brands Turkish consumers feel c
Slide 3: Market Dynamics
Market Dynamics FMCG Growth Rate 15,0% ► Annual raw milk production is 1Q11 Turnover Growth Rate YoY 12,6% 714 million tons in the world; about 12 million tons in Turkey, 10,0% 8,4% ► Turkey is 15th in world’s league, 5,7%6,1% ► Growth is expected in the milk 5,1%5,5% 5,0% 3,7%4,0% 4,3% production/i
Slide 4: Market Dynamics - II
Market Dynamics - II FMCG Value Growth (ex. tobacco) Raw Milk Base Price in Turkey (TL/lt) 8% Real growth 7,1% 0,95 TL 6% 2009 2010 2011 4% 3,1% 0,80 TL 2,6% 2% 0,3% 0% 0,65 TL 2008 2009 2010 YTD YGB '11 Food category which has increased its share within 0,50 TL FMCG from %45 to %48 through a value
Slide 5: Ahead of competition
Ahead of competition There are national (e.g. Ulker, Sutaş) and multinational (e.g. Danone, Nestle) competitors. Total Dairy Products (bn TL) PINAR (market share) Products Market Share Position 2,5 16,3% 17,2% UHT Light Milk 64% Leader 15,1% 2,0 15% Total UHT Milk 30% Leader Organic Milk 100% First&
Slide 6: New Launches
New Launches New Launches: Pınar Kido with Biscuit Pınar Kahvaltı Keyfi White Cheese Pınar Sliced Cheese 700g Multipacking/Consumer Promotion Pınar Çocuk with Honey Pınar Cream Cheese with Cheddar Pınar Cream Cheese with Thyme&Olive Pınar Triangle Cheese with Cheddar Pınar Triangle Cheese with Thyme
Slide 7: Product Groups & Sales Channels
Product Groups & Sales Channels Products Groups (9M11) Sauce; 5% Others; 8% Fruit Juice; 7% Milk; 37% Butter; 6% Yoghurt & Sales Channels (9M11) Ayran; 11% Direct Cheese; 26% Export 5% 8% YBP 87% 6
Slide 8: Growth in Sales
Growth in Sales Growth Rates of Product Groups 11% 200 9M10 9M11 9A10 9A11 8% 150 Milyon TL TL 1% Million 100 4% 27% 45% 12% 50 0 Sauce Others Fruit Juice Butter Yog&Ayran Cheese Milk Sos Diğer Meyve Tereyağ Yoğurt ve Peynir Süt Suyu Ayran Net Sales has grown by 10,3% in 9M11, YoY. 7
Slide 9: Growth in the Number of YBP Customers
Growth in the Number of YBP Customers 2008 2009 2010 140 Thousands 120 100 80 60 40 20 0 Milk Yoghurt Cheese Butter Fruit Juice Sauce 8
Slide 10: Export
Export Pınar realizes 21% of Turkey’s Dairy Products Exports bu itself Foreign Sales by Countries (9M11) Export to 29 countries from Middle East to Europe, from Others; 14% UAE; 9% U.S.A. to Asia Bahrain; 4% Azerbaijan; Market leader in Saudi Arabia and Kuwait with Packaged 4% Qatar; 5% Labaneh Chee
Slide 11: Financial Results
FINANCIAL RESULTS
Slide 12: Sales & Profitability
Sales & Profitability Net Sales (Million TL) Net Profit (Million TL) 577 58 60 55 452 483 481 474 49 430 40 358 34 29 2006 2007 2008 2009 2010 9M10 9M11 2006 2007 2008 2009 2010 9M10 9M11 Our sales grew by %11 in volume terms, in 9M11 compared to EBITDA* (Million TL) 9M10. 71 In accordance with our
Slide 13: Income Statement
Income Statement (Million TL) 30.09.2011 30.09.2010 Change % Variance Net Sales 474,2 430,0 44,1 10,3 Cost of goods Sold (378,6) (354,9) (23,6) 6,7 Gross Profit 95,6 75,1 20,5 27,3 R&D Expenses (4,1) (3,5) (0,6) 17,5 Sales, Distribution and Marketing Expens (24,4) (18,8) (5,6) 30,0 General Administr
Slide 14: Profit Margins
Profit Margins Gross Profit Margins (%) Operation Profit Margins* (%) 22,1% 20,2% 11,7% 18,5% 18,0% 17,5% 10,4% 8,4% 8,8% 7,8% 2008 2009 2010 9M10 9M11 2008 2009 2010 9M10 9M11 EBITDA Margins** (%) Net Profit Margins (%) 14,7% 12,0% 13,0% 11,3% 11,5% 11,3% 10,4% 10,8% 11,0% 7,1% 2008 2009 2010 9M10
Slide 15: Quarterly Results
Quarterly Results Net Sales (Million TL) 175 155 ►Our net sales grew in 3Q11 compared to 153 both 2Q11 and 3Q10. %14 %13 ►Ongoing selective price policy and lower raw milk prices made a positive effect on our profit margins in 9M11. 3Q10 3Q11 2Q11 EBITDA (Million TL) ►Raw milk prices declined in 1Q1
Slide 16: Basic Ratios, Net Financial Debt & Net Working Capital
Basic Ratios, Net Financial Debt & Net Working Capital September 30, 2011 December 31, 2010 (Million TL) September 30, 2011 December 31, 2010 Current ratio 1,82 1,92 Cash & Cash Equivalents 8,77 17,21 Leverage ratio 0,30 0,28 S/T Bank Borrowings 21,78 1,93 S/T Fin Debt/T. Fin Debt 0,58 0,13 L/T Bank
Slide 17: Overview of 9M11
Overview of 9M11 ►Raw milk prices diminished in 1Q11 by %15 and remained at these levels also in 2Q. In 3Q11, raw milk prices have gone up somewhat. ►Falling raw material prices made a positive impact on our margins. ►Following our strategy of increasing our market shares we have focused on marketin
Slide 18: 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 Continued marketing investment. 2011 TARGETS Growth in Net Sales: %10-%12 EBITDA Margin:
Slide 19: Ownership & Participation Structure, Share Performance
Ownership & Participation Structure Share Performance Relative and Absolute Performance of Pınar Süt Shares 250 Relative to ISE-TUM 20 18 Free 200 16 14 Float 150 12 10 100 8 6 50 4 2 - 0 ISE-TUM (Left Axis) PNSUT (Right Axis) %31,95 %44,94 %30,52 %20,00 %12,58 %5,47 %8,77 18
Slide 20: 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
Slide 21: Thank You
THANK YOU
Slide 22: Appendix
APPENDIX 3) y)
Slide 23: Company History
Company History Pioneer and Leader of Modern Turkish Dairy 1975... 1997 2003 2005 2010 The first UHT milk and Pınar SÜT new plant Agreement with First organic milk in Pınar Kido packaged dairy products founded in Eskişehir Sodima SAS for the Türkiye, Pınar Organic with Biscuit, plant in Turkey was 1
Slide 24: 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 COOL
Slide 25: 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 trac
Slide 26: Marketing Campaigns
Marketing Campaigns Pınar Çocuk Interactive Campaign won “Kristal Elma” ve Golden Effie awards Marketing campaigns have continued in “Kristal Elma” is a contest where original and creative works are profitable and strategic categories. awarded. “Pınar Çocuk” was awarded in the Multi Channel Campaign
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