Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamülleri San. A.Ş. — H1 2011 Earnings Presentation
26 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2011
Slide 1: 2011 H1 Investor Presentation
PINAR SÜT MAMULLERİ SAN. A.Ş 2011 H1 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 1,5 16,3% 17,2% UHT Light Milk 63% Leader 15,1% 15% Total UHT Milk 28% Leader 1,0 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 (1H11) Sauce; 5% Others; 8% Fruit Juice; 7% Milk; 37% Butter; 6% Sales Channels (1H11) Yoghurt & Direct Export Ayran; 11% 5% 8% Cheese; 26% YBP 87% 6
Slide 8: Growth in Sales
Growth in Sales Growth Rates of Product Groups 1H10 1H11 Million TL Sauce Others Fruit Juice Butter Yog&Ayran Cheese Milk Net Sales has grown by 8% in 1H11, 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 (1H11) Export to 29 countries from Middle East to Europe, from Others; 12% UAE; 10% U.S.A. to Asia Azerbaijani; 4% Bahrain; 4% Market leader in Saudi Arabia and Kuwait with Packaged Labaneh Cheese with
Slide 11: Financial Results
FINANCIAL RESULTS
Slide 12: Sales & Profitability
Sales & Profitability Net Sales (Million TL) Net Profit (Million TL) 577 58 60 452 483 481 40 41 358 34 34 277 299 29 2006 2007 2008 2009 2010 1H10 1H11 2006 2007 2008 2009 2010 1H10 1H11 EBITDA* (Million TL) In 2011 our sales grew by %8 in volume terms. 71 In accordance with our strategies, we have
Slide 13: Income Statement
Income Statement (Million TL) June 30, 2011 June 30, 2010 Change % Variance Net Sales 299,5 277,4 22,1 8,0 Cost of goods Sold (234,8) (227,4) (7,4) 3,2 Gross Profit 64,7 50,0 14,7 29,4 R&D Expenses (2,6) (2,3) (0,3) 11,9 Sales, Distribution and Marketing Expens (14,5) (11,8) (2,7) 22,4 General Admin
Slide 14: Profit Margins
Profit Margins Gross Profit Margins (%) Operation Profit Margins* (%) 22,1% 21,6% 12,6% 11,7% 18,5% 18,0% 18,0% 9,2% 7,8% 8,4% 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 EBITDA Margins** (%) Net Profit Margins (%) 14,7% 15,3% 13,6% 12,0% 12,1% 11,0% 11,8% 10,4% 10,8% 7,1% 2008 2009 2010 1H10
Slide 15: Quarterly Results
Quarterly Results Net Sales (Million TL) ►Gerek 2010 yılının 2. çeyreğine ve 155 gerekse 2011 yılının 1. çeyreğine göre net 139 145 satışlarımızda sağlanan miktar artışlarıyla büyüme gerçekleştirilmiş ve 2010 yılına göre pazar paylarımız artırılmıştır. 11% 7% ►2011 yılının ilk yarısında da devam ede
Slide 16: Basic Ratios, Net Financial Debt & Net Working Capital
Basic Ratios, Net Financial Debt & Net Working Capital June 30, 2011 December 31, 2010 (Million TL) June 30, 2011 December 31, 2010 Current ratio 1,93 1,92 Cash & Cash Equivalents 1,9 17,2 Leverage ratio 0,27 0,28 S/T Bank Borrowings 1,8 1,9 S/T Fin Debt/T. Fin Debt 0,11 0,13 L/T Bank Borrowings 14,
Slide 17: Overview of 1H 2011
Overview of 1H 2011 ►Raw milk prices have diminished in 1Q11 by %15 and have remained at these levels also in 2Q. Reduction in raw material prices has effected positively our profit margins. ► Following our strategy of increasing our market shares we have focused on marketing investments and increas
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
©) Yasar for a better life te } i ‘3 PINAR “= SGercek Yasam ot ay) —--@ ~ " 3) y)
Slide 22: Appendix
5 for a better life
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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