Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT
Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri San. A.Ş. — Q1 2011 Earnings Presentation
27 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2011
Slide 1: Pınar Süt Mamulleri San. A.Ş
PINAR SÜT MAMULLERİ SAN. A.Ş
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 •Among Turkey’s sectoral know-how Superbrands*** Product Brand Production Portfolio Equity •Healthy, p
Slide 3: Market Dynamics
Market Dynamics Growth in Global Milk Production ► Annual raw milk production is 714 million tons in the world; about 0,4% 0,1% 2,3% 12 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
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 Spending share of Dairy products within 0
Slide 5: Ahead of competition
Ahead of competition There are national (e.g. Ulker, Sutaş) and multinational (e.g. Danone, Nestle) competitors. Products Market Share Position 3,5 17% UHT Light Milk 61% Leader Billion 16,5% TL Total UHT Milk 27% Leader 16,0% Organic Milk 100% First&Only 3,0 16% Enriched Milk (Kids) 56% Leader 15,7
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 lines)
Slide 7: New Launches
New Launches New Launches: Pınar Kido with Biscuit Pınar Kahvaltı Keyfi White Cheese Pınar Sliced Cheese 700g Pınar Çocuk with Honey Multipacking/Consumer Promotion Pınar Cream Cheese with Cheddar Pınar Cream Cheese with Thyme&Olive Pınar Triangle Cheese with Cheddar Pınar Triangle Cheese with Thyme
Slide 8: Product Groups & Sales Channels
Product Groups & Sales Channels Product Groups (1Q11) Sauce; 5% Others; 8% Fruit Juice; 6% Milk; 38% Butter; 6% Sales Channels (1Q11) Yoghurt & Ayran; 11% Direct Export 5% 8% Cheese; 26% YBP 87%
Slide 9: Growth in Sales
Growth in Sales Growth Rates of Product Groups Net Sales has grown by 20% in 2010 compared to 2009
Slide 10: 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
Slide 11: Export
Export Foreign Sales by Countries (1Q11) Pınar realizes 21% of Turkey’s Dairy Products Exports bu itself Others; 12% UAE; 10% Export to 29 countries from Middle East to Europe, from U.S.A. to Asia Bahrain; 4% Iraq; 13% Market leader in Saudi Arabia and Kuwait with Packaged Qatar; 6% Labaneh Cheese w
Slide 12: Financial Results
FINANCIAL RESULTS
Slide 13: 2006 – 2010 Performances
2006 – 2010 Performances Net Sales (Mn TL) Net Profit (Mn TL) Cagr % 13 Cagr %20 60 577 58 452 483 481 40 358 34 29 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 In accordance with our strategies, we have focused on EBITDA* (Mn TL) market investments and achieved growth in sales and market Cagr
Slide 14: Income Statement
Income Statement (Million TL) March 31, 2011 March 31, 2010 Change % Variance Net Sales 144,6 137,9 6,7 4,8 Cost of goods Sold (111,8) (112,3) 0,6 (0,5) Gross Profit 32,8 25,6 7,3 28,4 R&D Expenses (1,1) (1,1) 0,0 (2,3) Sales, Distribution and Marketing Expens (6,8) (4,7) (2,1) 43,5 General Administ
Slide 15: Profit Margins
Profit Margins Gross Profit Margins (%) Operation Profit Margins* (%) 22,1% 22,7% 13,3% 11,7% 18,5% 18,5% 19,5% 10,6% 18,0% 7,8% 8,4% 7,2% 2008 2009 2010 1Q10 1Q11 4Q10 2008 2009 2010 1Q10 1Q11 4Q10 EBITDA Margins** (%) Net Profit Margins (%) 16,0% 12,0% 12,5% 14,7% 11,3% 13,3% 10,4% 10,2% 10,8% 11,
Slide 16: Quarterly Results
Quarterly Results Net Sales (Million TL) 145 147 138 ►Net sales has grown relative to 1Q 2010, driven by volume growth and our market shares have also increased. 5% -2% ►Our profitibility has been effected positivley from both our continued selective price policies and the downward trend in raw milk
Slide 17: Basic Ratios, Net Financial Debt & Net Working Capital
Basic Ratios, Net Financial Debt & Net Working Capital March 31, 2011 March 31, 2010 (Million TL) March 31, 2011 March 31, 2010 Current ratio 2,33 2,45 Cash & Cash Equivalents 12,7 7,9 Leverage ratio 0,25 0,25 S/T Bank Borrowings 1,8 1,6 S/T Fin Debt/T. Fin Debt 0,12 0,10 L/T Bank Borrowings 13,7 13
Slide 18: Overview of 1Q 2011
Overview of 1Q 2011 ►Raw milk price increases which have started in 3Q 2009 and continued in 2010, have shown a diminution in 1Q 2011. ►Cost savings, measures to decrease expenses and projects improving efficiency in production have continued. ►Decrease in raw milk prices has effected positively our
Slide 19: 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 20: Ownership & Participation Structure – Share Performance
Ownership & Participation Structure – Share Performance Relative and Absolute Performance of Pınar Süt Shares Relative to ISE-100 200 20 Free Float 150 15 100 10 50 5 - 0 ISE-100 (Left Axis) PNSUT (Right Axis) %31,95 %44,94 %30,52 %20,00 %12,58 %5,47 %8,77
Slide 21: 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 22: Thank You
THANK YOU
Slide 23: Appendix
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Slide 24: 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 25: 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 COOL
Slide 26: 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 27: 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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