Ulker Biskuvi Sanayi A.s. · BIST:ULKER

Ulker Biskuvi Sanayi A.s — Q2 2018 Earnings Presentation

33 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Aug 9, 2018

  1. Slide 1: Ülker Bisküvi 2Q 2018 Earnings Release

    ÜLKER BİSKÜVİ 2Q 2018 EARNINGS RELEASE Cenker UÇAN, CFO İstanbul, 9 August 2018

  2. Slide 2: Agenda

    Agenda • Turkey Macro Economic Overview • Market Growth • 2Q 2018 Highlights and Consolidated Operational Performance • Domestic Operations • International Operations • Balance Sheet Highlights Ülker Bisküvi 2Q 2018 Earnings Release 2

  3. Slide 3: Turkey Macro Economic Overview

    Turkey Macro Economic Overview Retail Sales Volume Index 2016 (r) 2017 (r) 2018 (r)  Seasonal and calendar adjusted retail sales volume with 113,2 112,2 112,9 113,6 112,1 constant prices decreased by 1,3% in May 2018 compared with the previous month Industrial Production  As of May 2018 Industrial

  4. Slide 4: Market Growth

    Market Growth Total Confectionary 3,2% 16,7% Total Confectionary market grew by 3,2 % in volume and 16,7% in value terms Volume Value Biscuits 0,5% 14,1% Biscuit market grew by 0,5 % in volume and 14,1 % in value terms Volume Value Chocolate 6,9% 18,7% Chocolate market grew by 6,9 % in volume and 18

  5. Slide 5: 2Q 2018 Highlights and Consolidated Operational Performance

    2Q 2018 HIGHLIGHTS AND CONSOLIDATED OPERATIONAL PERFORMANCE

  6. Slide 6: Factories and capacity across Turkey and international operations

    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-FMC&IBC Largest capacity Bisc.& Choc.& C

  7. Slide 7: 2Q'18 Consolidated Performance Highlights

    2Q’18 Consolidated Performance Highlights Volume Revenue Gross Profit 130KTons TL1.3 BN TL 345 MN Growth + 13,9 % Growth + 12,5 % Growth + 0,9 % EBITDA EBITDA Margin Net Profit 15,1 % TL200 MN TL 242 MN improved Growth + 21,8 % by 100bps Growth + 168 % Ülker Bisküvi 2Q 2018 Earnings Release 7

  8. Slide 8: Another successful quarter with exceeding 15% EBITDA Margin

    Another successful quarter with exceeding 15% EBITDA Margin TL ('000) 2Q 2017 2Q 2018 % 1H17 1H18 % Confectionary Volume (Ton) 128.928 130.129 0,9% 273.896 278.353 1,6% Revenue 1.167.137 1.329.525 13,9% 2.461.199 2.757.596 12,0% Confectionary Revenue 1.138.965 1.324.278 16,3% 2.386.462 2.747.164 15,

  9. Slide 9: Growth momentum continued in 2Q'18

    Growth momentum continued in 2Q’18 Confectionary Sales Volume (Tons) Confectionary Value (TLm) 130.129 1.324 128.928 1.139 14.298 12.582 111 104 43.347 46.047 645 552 71.283 71.500 484 568 Biscuits Chocolate 2Q'17 2Q'18 Cake 2Q'17 2Q'18  Consolidated Confectionary volume improved by 0,9%  Confecti

  10. Slide 10: Strong performance prevailed in 1H'18 with profitability focus

    Strong performance prevailed in 1H’18 with profitability focus Confectionary Sales Volume (Tons) Confectionary Value (TLm) 2.747 273.896 278.353 2.386 231 29.915 27.512 219 91.399 95.857 1.314 1.133 152.582 154.984 1.202 1.034 Biscuits Chocolate Cake 1H'17 1H'18 1H'17 1H'18  Consolidated Confection

  11. Slide 11: Domestic Operations

    on 9 i MER 'YURDUMUN ULKER’ “OFT s0vGR tue VILDIZ * HOLDING

  12. Slide 12: Turkey – #1 in Total Confectionary with 35% Market Share

    Turkey – #1 in Total Confectionary with 35% Market Share Biscuits – 36,8% Market Share Chocolate – 35,5% Market Share Cake – 25,5% 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 Biscuits # 1 in Cracker 4 out of Top 5

  13. 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 2Q 2018 Earnings Release 13

  14. Slide 14: Pursuing profitable growth in Domestic Operations

    Pursuing profitable growth in Domestic Operations Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 786 883 111 121 93 94 172 187 2Q'17 2Q'18 2Q'17 2Q'18 2Q'17 2Q'18 2Q'17 2Q'18  Branded volume slightly  Branded revenue was up by  Gross Profit was up by 8,5 %  EBITDA repre

  15. Slide 15: Solid top-line growth driven by effective pricing & product mix

    Solid top-line growth driven by effective pricing & product mix and new launches in 1H’18 Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 196 200 1.605 1.819 226 252 353 393 1H'17 1H'18 1H'17 1H'18 1H'17 1H'18 1H'17 1H'18  Branded volume increased by  Branded revenue was u

  16. 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 1H’17 1H’18 1H’17 1

  17. Slide 17: International Operations

    INTERNATIONAL OPERATIONS

  18. Slide 18: Ülker completed the acquisitions in MENACA

    Ülker completed the acquisitions in MENACA Hi Food FMC Hamle UI IBC UI MENA IBC (EGYPT) (KSA) (KAZAKHSTAN) MENA (KSA) March June March December May 2016 2016 2017 2017 2018 Ülker Bisküvi 2Q 2018 Earnings Release 18

  19. Slide 19: Saudi Arabia – stay strong #1 with higher market share

    Saudi Arabia – stay strong #1 with higher market share #1 FMC Financial Review Biscuits Market Share 14,8% 14,2% 11,8% 10,7% 1H'17 1H'18 Change 6,8% Sales Volume (tons) 19.875 22.754 14,5% Net Sales(SAR x000) 258.535 314.097 21,5% Competitor 1 Ülker Competitor 2 Competitor 3 McVitie's EBITDA(SAR x00

  20. Slide 20: Saudi Arabia – IBC Operations

    Saudi Arabia – IBC Operations IBC Financial Review IBC Product Portfolio 1H '17 1H '18 Change Sales Volume (tons) 5.217 7.312 40,2% Net Sales(SAR x000) 66.669 88.393 32,6% EBITDA(SAR x000) 11.530 24.985 116,7% EBITDA Margin 17,3% 28,3% Purpose of Aquisition & Operations in a nut shell  Ülker acquir

  21. 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 1H '17 1H'18 Change 18,5% 14,7% 13,6% Sales Volume (tons) 14.516 15.584 7,4% #2 Net Sales(EGPx000) 414.758 570.254 37,5% Competitor 1 Ülker Competitor 2 EBITDA(EGPx000) 16.701

  22. Slide 22: UI MENA Operations

    UI MENA Operations To become # 1 or strong # 2 in all MENA UI MENA Financial Review 1H '17 1H'18 Change Sales Volume (tons) 5.242 5.193 -0,9% Net Sales(AED x000) 85.984 87.924 2,3% EBITDA(AED x000) 19.159 23.391 22,1% EBITDA Margin 22,3% 26,6% Since import business has been shifted to production in

  23. 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 1H'17 1H '18 Change 61,4% #3 Sales Volume (tons) 5.539 5.770 4,2% Net 4.327 4.930 13,9% 12,6% Sales(KZTx000000) 10,1% 3,1% EBITDA(KZTx000000) 271 283 4,3% Competitor 1 Competitor 2 Ülker Competit

  24. Slide 24: International Operations

    International Operations Continue to gain market share in operating territories through acquisition synergies Egypt Saudi Arabia Kazakhstan #2 #1 #3 Biscuits – 14,7% Market Share Biscuits – 21% Market Share Chocolate– 9,3% Market Share # 4 in countline # 1 in Plain # 1 in Filled # 1 in Filled (Biskr

  25. Slide 25: 2018 New Launches & Synergy Products

    2018 New Launches & Synergy Products EGYPT KAZAKHISTAN SAUDI ARABIA SYNERGY PRODUCTS Ülker Bisküvi 2Q 2018 Earnings Release 25

  26. Slide 26: IBC acquisition continued in 2Q'18

    Positive contribution driven by UI Mena and IBC acquisition continued in 2Q’18. Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 36 36 442 134 158 80 353 54 2Q'17 2Q'18 2Q'17 2Q'18 2Q'17 2Q'18 2Q'17 2Q'18  Total volume was slightly up by  Branded revenue up by 28,9%  Gross

  27. Slide 27: Broad-based growth across regions cont'd in 1H'2018

    Broad-based growth across regions cont’ in 1H’2018 Sales Volume Gross Profit (TLm) EBITDA (TLm) (x000 tons) Net Sales (TLm) 78 79 928 353 173 782 307 135 1H'17 1H'18 1H'17 1H'18 1H'17 1H'18 1H'17 1H'18  Total Confectionary volume  Branded revenue up by 23,2%  Gross profit increased by  EBITDA re

  28. 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 1H’17 1H’18 1H’17 1H’18 Non Non Non Branded Branded Branded Non Branded 22% 18% 25% 21% +3 pp +3 pp 78% 79% 82% 75% Branded Branded Branded B

  29. Slide 29: Balance Sheet Highlights

    BALANCE SHEET HIGHLIGHTS

  30. 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 June 2018 1,8x 1,9x 9% short term 1.305 1.526 long term 91% 31 December 2017 30 June 2018 Average Working Capital Days & Net Working Capital  Net debt as of June 2018 : 1.526 TLm 812mTL 1.216mTL 

  31. Slide 31: Net Position

    Net 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 3.554,5 776,9 2,0 0,2 Trade Receivables 139,8 20,7 7,7 0,8 Total Assets 3.694,3 797,5 9,7 0,9 Financial Liabilities 315,8 48,6 17

  32. 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 2Q 2018 Earn

  33. 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

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