Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri Sanayii A.Ş. — Q1 2007 Earnings Presentation
38 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, August 2007
Slide 1: Pınar Süt Mamulleri Sanayii A.Ş. Investor Presentation
PINAR SÜT MAMULLERİ SANAYİİ A.Ş. INVESTOR PRESENTATION August 2007 23/08/2007 as at 1
Slide 2: Disclaimer
Disclaimer 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-looking statements that refl
Slide 3: Macro Economic Review of Turkey
Macro Economic Review of Turkey Successful implementation of structural reforms and sound Turkish CPI Development CPI, %yoy economic policies WPI, %yoy CPI target Inflation declined to single 50 40 digits after 35 years 30 20 Turkey turned into a favorite FDI 10 destination (20,1 Billion USD in 0 20
Slide 4: Yaşar Group At a Glance
Yaşar Group At a Glance Established in 1945 One of the Turkey’s most important and highly respected conglomerates Core businesses: Food & Beverage and Paint Non-core businesses: Tissue, Trading and Services 24 companies, 3 foundations, over 6,700 employees Consolidated revenues of approx. US$ 1,1 bn
Slide 5: Market Leader in Food and Beverages: PINAR
Market Leader in Food and Beverages: PINAR Launched in 1975, Pınar is the market leader in many sub-segments of FMCG Pınar brand is internationally recognised, especially in the Gulf countries Selected among “Turkey’s Superbrands” in 2005 with 99% brand awareness and ranked #1 according to the brand
Slide 6: Dairy Industry
DAIRY INDUSTRY 23/08/2007 as at 6
Slide 7: Dairy Industry
Dairy Industry Global dairy market (US$ 260 bn) growing at 3% p.a. Global supply and demand is not balanced Production increase 2%; Demand increase 3% GAP •Global Sales of Dairy Products by Sector: 2005 % Value Breakdown •Major Markets: 2005 Value Sales and Period % Growth Source: Euromonitor Intern
Slide 8: Dairy Products Sector In Turkey
Dairy Products Sector In Turkey Dairy sector is one of the fastest growing markets with an average rate of 6% for the last decade. Annual milk production in Turkey is 10 million tons ($3 bn), only %30 registered The registered milk market has grown by 12-14% in 2005. Per capita milk consumption is 8
Slide 9: Milk Sources in Turkey
Milk Sources in Turkey GOAT MILK 2% BUFALO MILK 1% SHEEP MILK 7% COW MILK 90% 23/08/2007 as at 9
Slide 10: Potential Effects of EU Conformity Period
Potential Effects of EU Conformity Period An increase in the; Registered milk production rate to 50% Dairy products export due to the start of exports to EU countries Quality of the milk collected Demand of the packaged products Quality awareness of consumers Average milk productivity Amount of milk
Slide 11: Pınar Süt Is Ready for EU
PINAR SÜT Is Ready for EU EU standards production plant Latest technology through the whole supply chain Milk procurement organisation in compliance with EU legistation Advanced laboratory competence available on field 252 contracted farms Supplier based performance measurement 100% traceability fro
Slide 12: Dairy Products Sector Promises High Potential For Growth
Dairy Products Sector Promises High Potential For Growth Significant growth potential with 7-10% p.a. on average, with major drivers of this growth including favourable Turkish economic and demographic developments and close proximity to EU and Middle East markets ● Growing trends towards packaged p
Slide 13: Company Overview
COMPANY OVERVIEW 23/08/2007 as at 13
Slide 14: Company History: Pioneer and Leader of Modern Turkish Dairy
Company History: Pioneer and Leader of Modern Turkish Dairy 1975... 1997 2003 2005 The first UHT milk and packed dairy products Agreement with New plant founded in First organic milk in plant in Turkey was Sodima SAS for the 1982 Eskişehir Türkiye, Pınar Organic founded (biggest milk production of f
Slide 15: Launch Of New Products-I
Launch Of New Products-I 1975 First UHT Milk in Turkey. Cheese, yoghurt, butter and milk powder 1976 First pasteurized freshcream cheese and cocoa milk 1978 Pınar Sliced Kashkaval and Spreadable Cheese 1980 Kraft Pınar cooperation. Pınar Deram, Raglet, Maribo and Cheddar 1983 First mayonnaise, salad
Slide 16: Launch Of New Products-II
Launch Of New Products-II 1996 Feta cheese, İzmir "tulum" cheese, Roll of butter 1997 Kido milk family, Light Feta Cheese, Mozzarella, Shredded Cheese, Camambert Goat Chees 1999 Functional Milk (Lactose-free milk; Pınar Denge Calcium+ Vitamins A, D, E Milk) 2000 First automatical process for "Fat On
Slide 17: Ownership Structure
Ownership Structure Listed in Istanbul Stock Exchange Free Float % 39 of total outstanding shares in free float 39% Price at August 21,2007 TRY 6.70 Yaşar Holding A.Ş. Market Cap ($mn) : 225 61% The Foreign Stake in the Float (%) 70 61 60 55 57 58 57 58 60 48 48 51 53 48 47 50 39 34 35 35 36 40 32 3
Slide 18: Raw Milk Collection
Raw Milk Collection INDIVIDUAL PRODUCERS 252 FARMS 34% 240 VILLAGE %25 70 COOPS % 21 17 TRADERS %20 362 COOLLING PROCESSOR TRANSPORTATION CENTERS 23/08/2007 as at 18
Slide 19: Notable Participation Value
Notable Participation Value Yaşar Birleşik Sales and distribution of Ownership % Carrying Value Pazarlama Dağıtım products of Pınar Süt, Turizm ve Ticaret 31.95% 22.1 M YTL Pınar Et & other food A.Ş. (YBP) products Pınar Foods GmbH, Ownership % Carrying Value Production and Germany distribution of w
Slide 20: Notable Participation Value
Notable Participation Value Pınar Entegre Et ve Carrying Value Production of processed Ownership % Un Sanayii A.Ş. and frozen meat products- 12.58% 16.9 M YTL open to public Çamlı Yem, Besicilik Ownership % Carrying Value Agribusiness- Feed San. ve Tic. A.Ş. production, fish, cattle 5.59% 8.4 M YTL
Slide 21: Market Position
Market Position PRODUCT MARKET SHARE POSITION (%) UHT LIGHT MILK 67 LEADER UHT MILK 26 LEADER SPREADABLE CHEESE 48 LEADER *Labaneh *Fresh Cheese 64 LEADER 80 LEADER ENRICHED MILK 27 SECOND FLAVORED MILK 21 SECOND MAYONNAISE 23 LEADER BRICK BUTTER 13 SECOND Market Share Comparison 90% 80% PINAR Neare
Slide 22: Marketing Expertise
Marketing Expertise The market is continuously growing Pınar Süt is maintaining the leadership in the market without loosing market share 1,600,000 16.0% 1,400,000 1,200,000 15.5% 1,000,000 800,000 15.0% Total Dairy 600,000 Products- ('000 YTL) 400,000 14.5% Pınar Share % 200,000 - 14.0% 2003 YTD 20
Slide 23: Export Success: Target Market Tastes Are Met
Export Success: Target Market Tastes Are Met PINAR SÜT realizes 40% of Turkey’s Exports By Country Dairy Product Exports SAUDI ARABIA %45 market share, in the countries it 4% 3% 2% 4% KUWAIT 6% IRAK exports to 38% 10% T.R.N.C. 26 countries from Middle East to U.A. EMIRATES BAHRAIN Europe, from U.S.A
Slide 24: Financial Performance
FINANCIAL PERFORMANCE 23/08/2007 as at 24
Slide 25: Gross Profit Margin & Sales by Product & Seasonality
Gross Profit Margin & Sales by Product & Seasonality GROSS PROFIT & GROSS MARGIN 80 25.0% 70 60 20.0% Gross 50 15.0% Profit 40 30 10.0% Gross Margin % 20 SALES BY PRODUCTS 5.0% 10 - 0.0% 31/12/2002 31/12/2003 31/12/2004 31/12/2005 31/12/2006 UHT MILK YOGURT-YOGURT DRINK CHEESE SAUCE-POWDER BUT TER F
Slide 26: Performance Highlights
Performance Highlights NET PROFITS (YTL) EBITDA (YTL) 28,585,922 36,360,237 30,000,000 40,000,000 22,189,767 29,960,577 30,379,779 25,000,000 30,000,000 20,000,000 19,401,913 15,000,000 20,000,000 10,000,000 3,421,708 5,073,191 10,000,000 5,000,000 0 0 2003 2004 2005 2006 2003 2004 2005 2006 DIVIDEN
Slide 27: Consolidated Income Statement (Mn YTL)
Consolidated Income Statement (Mn YTL) 1Q07 FY06 4Q06 9M06 3Q06 1H06 2Q06 1Q06 FY05 OPERATING REVENUE 108 357 95 262 93 169 90 80 321 Net Sales 108 357 95 262 93 169 90 80 321 Cost of Sales (82) (289) (75) (214) (78) (135) (71) (64) (252) GROSS PROFIT 26 69 20 49 15 34 18 16 69 Operating Expenses (1
Slide 28: Financial Overview
Financial Overview Consolidated net sales of app. YTL 108 mn and EBITDA of YTL 17mn EBITDA margin of 15.5% Pınar Süt has increased its net sales over the years KEY PERFORMANCE INDICATORS (IFRS-CONSOLIDATED) 31.03.2007 31.03.2006 Change (%) NET SALES (YTL) 107,821,376 79,647,340 35% COST OF GOODS SOL
Slide 29: Key Ratios & Net Financial Debt: Improved Financial Standing
Key Ratios & Net Financial Debt: Improved Financial Standing December 31, 2006 December 31, 2005 Current Ratio 1.53 1.35 Leverage Ratio 37% 49% Interest Coverage Ratio 5.96 4.66 S/T Financial Debt/Total Debt/Total 0.48 0.64 Financial Debt Net Financial Debt /EBITDA 0.52 1.48 Total Financial Debt / E
Slide 30: Sales and Distribution
Sales and Distribution Domestic sales of Pınar Süt are realised through Yaşar Birleşik Pazarlama A.Ş. (YBP) SALES CHANNELS YBP STRUCTURE YAŞAR HOLDİNG 8% 3% OTHER A.Ş. 8% 22% YBP EXPORT DIRECT PINAR ET 38% PINAR SÜT 89% 32% 23/08/2007 as at 30
Slide 31: YBP – Yaşar Birleşik Pazarlama A.Ş.
YBP – Yaşar Birleşik Pazarlama A.Ş. The second biggest food sales & distribution network in Turkey Specialised in one-way, packaged, high-quality, fast moving consumer goods Approximately US$ 500 Th/year turnover, 1000 employees with 7 profit centers 132 distributors with warehouses covering all ove
Slide 32: YBP Product Portfolio
YBP Product Portfolio DAIRY (PINAR SÜT&PINAR PROCESSED MEAT (PINAR ANADOLU) ET&PINAR ANADOLU) ► Milk (UHT, Pasteurized, Flavoured) ► Meat & meat products ► Yoghurt (Plain, Fruit, yoghurt drink) ► Frozen meat balls ► Functional dairy products ► Turkey based products ► Butter ► RTE meat&turkey product
Slide 33: Investment Highlights
Investment Highlights Modern and efficient production processes employing the latest technology Wide-spread distribution network, strong brands with very high brand awareness Leader in Turkish Dairy Products Sector Advanced R&D facilities with competencies in product development Innovative product l
Slide 34: Appendices
APPENDICES 23/08/2007 as at 34
Slide 35: Awards and Certificates
Awards and Certificates 2000 “Golden Packaging Award” by TSI (Turkish Standart Institute) for 3 products 2000 World Star Award by WPO (World Packaging Organisation) for Pınar Kido Mini Cheese 2001 The Research and Development Encouragement Award from TUBİTAK 2002 The Aegian Region Quality Award by K
Slide 36: Pınar Süt – Pınarbaşı / İzmir Site
PINAR SUT – PINARBAŞI / İZMİR SITE Total area 130.118 sqms Closed area 40.854 sqms 23/08/2007 as at 36
Slide 37: Pınar Süt – Eskişehir Site
PINAR SUT-ESKİŞEHİR SITE Total area 149.976 sqms Closed area 16.650 sqms 23/08/2007 as at 37
Slide 38: YBP Regions
YBP Regions Region Sales Directors Area Sales Managers 23/08/2007 as at 38
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