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

Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri San. A.Ş. — FY2010 Earnings Presentation

27 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2011

  1. Slide 1: Pınar Süt Mamulleri San. A.Ş

    PINAR SÜT MAMULLERİ SAN. A.Ş

  2. Slide 2: Pınar Süt Highlights

    Pınar Süt Highlights • Innovator and pioneer • #1 milk brand that comes • Hygenic and EU standard • More than 200 SKUs to mind* producton • R&D expertise • Best brand in dairy ** • Technical Expertise and • Among Turkey’s sectoral know-how Superbrands*** Product Brand Production Portfolio Equity • H

  3. Slide 3: Market Dynamics

    Market Dynamics Growth in Global Milk Production ► Annual raw milk production is 714 million tons in the world; about 12 0,4% 0,1% 2,3% million tons in Turkey, 1% 0,8% 4% -0,1% ► Turkey is 15th in world’s league, 3,3% ► Growth is expected in the milk production/import of developing and 1,6% growing

  4. Slide 4: Market Dynamics - II

    Market Dynamics - II FMCG Growth Raw Milk Base Price in Turkey (TL/lt) 1,00 2008 2009 2010 • FMCG market(exclud. tobacco) has grown by 8,9% in 2010 and reached 34 billion TL. 0,80 • Share of F&B within FMCG has reached 78,2% 0,60 in 2010. Source:Nielsen 0,40 0,20 Spending share of Dairy products wit

  5. Slide 5: Ahead of competition

    Ahead of competition  There are national (e.g. Ulker, Sutaş) and multinational (e.g. Danone, Nestle) competitors. Product Market Share (%) Position 3,5 17% Billion 16,5% UHT LIGHT MILK 59% LEADER TL TOTAL UHT MILK 27% LEADER 16,0% ORGANIC MILK 100% FIRST&ONLY 3,0 16% ENRICHED MILK (KIDS) 50% LEADER

  6. Slide 6: Investment to Eskişehir Plant

    Investment to Eskişehir Plant  With the invesment made to our Eskişehir Plant Eskişehir (30 production lines) Factory’s closed area increased to 22.000m2  The dairy capacity of the plant increased by %30 to 300 million litres  New employment provided for the plant and sector İzmir (38 production

  7. Slide 7: 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 Camp

  8. Slide 8: New Launches

    New Launches New Launches:  Pınar Lemonade  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

  9. Slide 9: Product Groups & Sales Channels

    Product Groups & Sales Channels Product Groups CHEESE; 27% UHT MILK; 37% YOGHURT & AYRAN; 12% Sales Channel YBP 87% OTHERS; 5% BUTTER; 7% SAUCE&POWDER PRODUCT; 6% FRUIT JUICE; 6% DIRECT 5% EXPORT 8%

  10. Slide 10: Growth in Sales

    Growth in Sales Growth Rates of Product Groups Net Sales has grown by 20% in 2010 compared to 2009

  11. Slide 11: 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

  12. Slide 12: Export

    Export Qatar; 4% Bahrain; 4%  Pınar realizes 21% of Turkey’s Dairy Products Exports bu itself Azerbaijan;  Export to 29 countries from Middle East to Europe, from 4% U.S.A. to Asia S.Arabia; 29% Iraq; 8%  Market leader in Saudi Arabia and Kuwait with Packaged Labaneh Cheese with 45% market share

  13. Slide 13: Financial Results

    FINANCIAL RESULTS

  14. Slide 14: 2006 – 2010 Performances

    2006 – 2010 Performances Net Sales (Million TL) Net Profit (Million TL) Cagr % 13 70 Cagr %20 700 58 60 60 600 577 452 483 481 50 500 40 400 358 40 34 30 29 300 200 20 100 10 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 In accordance with our strategies, we have focused on EBITDA (Million

  15. Slide 15: Income Statement

    Income Statement December 31, 2010 December 31, 2009 Change % Varriance (Million TL) Net Sales 577,1 480,7 96,3 20,0 Cost of goods Sold -473,2 -374,3 -99,0 26,4 Gross Profit 103,8 106,5 -2,6 -2,5 R&D Expenses -4,7 -3,8 -0,9 23,2 Sales, Distribution and Marketing Expens -28,5 -26,3 -2,2 8,2 General A

  16. Slide 16: Profit Margins

    Profit Margins Gross Profit Margins (%) Operation Profit Margins* (%) 22,2% 11,7% 18,5% 19,5% 18,0% 17,9% 16,5% 7,8% 8,4% 7,9% 6,7% 7,2% 2008 2009 2010 4Q09 4Q10 3Q10 2008 2009 2010 4Q09 4Q10 3Q10 EBITDA Margins** (%) Net Profit Margins (%) 14,7% 12,0% 10,4% 9,9% 10,8% 11,0% 9,6% 9,6% 10,2% 10,3% 7,

  17. Slide 17: Quarterly Results

    Quarterly Results Net Sales (Million TL) ►Growth is realised when compared with 153 last year’s last quarter, due to growth in 147 sales in both value and volume terms and our market shares have also increased. ► Selective price policies, which have 13,6 % -3,7% continued in 2010, have resulted in l

  18. Slide 18: Basic Ratios, Net Financial Debt & Net Working Capital

    Basic Ratios, Net Financial Debt & Net Working Capital December 31, 2010 December 31, 2009 (Million TL) December 31, 2010 December 31, 2009 Current ratio 1,92 2,17 Cash & Cash Equivalents 17,2 3,3 Leverage ratio 0,28 0,27 S/T Bank Borrowings 1,9 5,3 S/T Fin Debt/T. Fin Debt 0,13 0,26 L/T Bank Borrow

  19. Slide 19: Overview of 2010

    Overview of 2010  Raw milk price increases which have started in the 3rd quarter of 2009, continued also in 2010  Part of raw material price increases have been reflected to the product prices and sales volume increases have been achieved ► New Product Launches and New Packaging Diversifications b

  20. Slide 20: 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

  21. Slide 21: Ownership & Participation Structure – Share Performance

    Ownership & Participation Structure – Share Performance Free Relative to ISE-100 Float %31,95 %44,94 %30,52 %20,00 %12,58 %5,47 %8,77

  22. Slide 22: 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

  23. Slide 23: Thank You

    THANK YOU

  24. Slide 24: Appendix

    APPENDIX

  25. Slide 25: 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

  26. Slide 26: Supply - Raw Milk Collection Process

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

  27. Slide 27: 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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