Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Q1 2022 Earnings Presentation
30 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, May 10, 2022
Slide 1: Investor Presentation 1st Quarter 2022
Investor Presentation 1st Quarter 2022 10 May 2022 1
Slide 2: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 2
Slide 3: Macro View: Another Challenging Year
Macro View Another Challenging Year Border closures in export Border&closures Russia Ukraine in export 01 FXmarkets volatility 02 markets war Commodity price Border closures in export Border High closures in export inflation 03 volatility markets 04 markets environment Border closures in export Cons
Slide 4: Focus areas to overcome the challenges
8 pillars to overcome the challenges Focus areas 01 02 03 04 05 06 07 08 Sustain Effective Cash Flow Strengthen Successful Effective Manage Continued market pricing priority the balance positioning supply chain the focus on leader strategy sheet against and consumer innovation position against compe
Slide 5: A regional power with unique performance
Despite heavy challenges we achieved outstanding results in Q 22 Market leader with #1 in macro 36% in snacking snacking business category A regional power with unique performance 21,1% consolidated 111,4% EBITDA topline margin growth 5
Slide 6: Our success has been awarded locally and globally
Our success has been awarded locally and globally We have been awarded the Top Congratulations to Mete Buyurgan, Among Turkey's Happiest Employers certificate, one of the pladis Turkey, Eastern Workplace survey leading certification Europe and Central Asia Managing sponsored by Capital programs. As
Slide 7: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 7
Slide 8: Q1 2022 Consolidated performance highlights
Q1 2022 Consolidated performance highlights Revenue 5.886 MTL 1.245 MTL EBITDA Growth + 111,4% Growth + 127,8% Gross 1.849 MTL Net Debt/ 2022: 3,22x Profit Growth + 114,4% EBITDA 2021: 3,54x 31,4% 2022: 290 MTL Gross Operating Margin Growth + 40bps Free Cash 2021: (217) MTL Flow 8
Slide 9: Strong start to the year despite all odds
Strong start to the year despite all odds 1Q 2022 1Q 2021 % 4Q 2021 % Volume (Ton) 179.138 167.404 7,0% 179.832 -0,4% Revenue 5.886.018 2.783.757 111,4% 4.118.123 42,9% Gross Profit 1.849.090 862.338 114,4% 1.234.535 49,8% Gross Profit Margin 31,4% 31,0% 0,4 ppt 30,0% 1,4 ppt EBITDA 1.244.625 546.38
Slide 10: Our solid performance driven by volume and value growth
Our solid performance driven by volume and value growth Snacking Sales Volume (Ktons) Snacking Sales Value (Mtl) 149 157 2.690 5.664 10 12 145 369 55 58 1.354 2.678 84 87 1.191 2.617 Q1'21 Q1'22 Q1'21 Q1'22 BISCUIT CHOCOLATE CAKE BISCUIT CHOCOLATE CAKE • Total snacking sales volume increased by 5,5%
Slide 11: Effective Cost Management on Track
Effective Cost Management on Track The Main Cost Indicators % 4,4% 11,6% 68,6% SG&A to Net Sales Total OPEX to Net Sales Total COGS to Net Sales 80 bps 180 bps 40 bps improvement vs PY improvement vs PY improvement vs PY ➢ Strong variable and fixed cost discipline despite highly volatile, adverse mi
Slide 12: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 12
Slide 13: Turkey Strong #1 in total snacking with 36% market share
Turkey Strong #1 in total snacking with 36% market share Biscuits 40,6% Market Share #1 Chocolate-40,2% Market Share #1 Cake-19,6% Market Share #2 #1 in Petit Beurre #1 in Creamy Biscuits 4 out of Top 5 in Chocolate Covered #1 in Family Cake #1 in Special Biscuits #2 in Cracker #2 in Portion Muffin
Slide 14: Turkey NPD sales contribute 12% of total domestic sales
Turkey-NPD sales contribute 12% of total domestic sales in 22 2022 New Product Launches BISCUITS CAKE CHOCOLATE 14
Slide 15: Turkey: Successful Q1 innovations have been the main source of growth
Turkey : Successful Q1 innovations have been the main source of growth Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 107 3.382 933 692 97 25,0% 1.611 439 301 24,1% 26,6% 17,5% 26,1% 17,9% 19,7% Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 • Snacking sales volume
Slide 16: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 16
Slide 17: International: Maintained the strong position in the market
International : Maintained the strong position in the market Biscuits 25,3% M.Share #1 Biscuits-18,6% M.Share #1 Chocolate-13,1% M.Share #3 #1 in Plain #1 in Filled #1 in Filled (Biskrem and Tamr brands) #1 in Biscuits with Filling #1 Coated #2 in Filled Wafer #4 in Wafer #1 in Digestives #2 in Coun
Slide 18: NPD Sales contributes
NPD Sales contributes Saudi Arabia Egypt Kazakhstan 18
Slide 19: Strong business momentum and sound financial results
Strong business momentum and sound financial results Snacking Volume Snacking Sales Gross Profit EBITDA (X000 Tons) (Mtl) (Mtl) (Mtl) 52 50 916 553 2.282 1.079 423 246 38,8% 36,0% 38,5% 23,5% 23,2% 38,4% 22,3% 23,2% Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 • Snacking volume decreased by • Sna
Slide 20: Leadership on a winning strategy
Leadership on a winning strategy Saudi Arabia Egypt Kazakhstan FMC & IBC HI-FOOD YTD HAMLE YoY Volume Growth YoY Revenue Growth YoY Volume Growth YoY Revenue Growth YoY Volume Growth YoY Revenue Growth (2,9%) 14,0% (17,5%) 8,1% 15,3% 40,7% YoY EBITDA Growth EBITDA Margin YoY EBITDA Growth EBITDA Mar
Slide 21: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 21
Slide 22: Acquisition Highlights: reach a pivotal EBITDA margins
Acquisition Highlights : reach a pivotal EBITDA margins Hi Food FMC Hamle UI MENA IBC (EGYPT) (KSA) (KAZAKHSTAN) (UAE) (KSA) (TR) March June March December May August 2016 2016 2017 2017 2018 2021 EBITDA Contribution of Acquisitions-Q1 2022 • Ability to act as local producer and regional production
Slide 23: Acquisition Highlights: EBITDA % development in years
Acquisition Highlights : EBITDA % development in years NORTH AFRICA (HIFOOD) MIDDLE EAST (FMC-IBC-UI MENA) 14,8% 15,4% 16,7% 24,5% 23,9% 23,1% 24,5% 22,7% 10,7% 18,3% 9,2% 9,8% 2016 2018 2019 2020 2021 3M 22 2017 2018 2019 2020 2021 3M 22 Current EBITDA % Total EBITDA Contribution Current EBITDA % T
Slide 24: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 24
Slide 25: Stronger balance sheet with improved ratios
Stronger balance sheet with improved ratios Net Debt/Ebitda (X) Maturity Breakdown as of March 2022 3,53 3,22 15% 3,54x 3,54x 3,22x 85% 0,42x December 2021 March 2022 Short Term Long Term Average Working Capital Days & Net Working Capital FX Hedge strategy 5.921 MTL 7.088 MTL 142 Days 107 Days ▪ 30%
Slide 26: Agenda
01 Macro View AGENDA 02 Q 22 Financial Performance 03 Domestic Operations 04 Export and International Operations 05 Acquisitions Update 06 Balance Sheet Highlights Balance of the year priorities and 07 2022 Guidance 26
Slide 27: Balance of Year Priorities
Balance of Year Priorities KEEP ADJUSTING TOPLINE TO STRENGTHEN CHANGING GROWTH BALANCE SHEET CONDITIONS AND SUSTAIN ANDTOPLINE CASH FLOW VIA STRONG PROFITABILTY GROWTH AGILE STRUCTURE 27
Slide 28: 2022 Consolidated Guidance
2022 Consolidated Guidance Net EBITDA Sales Margin 2021 REALISED 12,5BNTL 18,6% 2022 GUIDANCE 22,0BNTL 18,6% 28
Slide 29: Investor relations contact
Investor relations contact For further E-Mail Phone information please e-mail ir@ulker.com.tr +90 (216) 524 25 56 or call 29
Slide 30: 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 assum
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