Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Q3 2021 Earnings Presentation
42 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Nov 5, 2021
Slide 1: Investor Presentation 3Q 2021
INVESTOR PRESENTATION 3Q 2021 5 November 2021 1
Slide 2: Agenda
1 Company Overview 2 3Q 2021 Highlights and Consolidated Operational Performance 3 Domestic Operations 4 Export and International Operations 5 Balance Sheet Highlights 6 Acquisition 7 2021 Guidance 2
Slide 3: Company Overview
Company Overview 2020 SALES 5 YEAR CAGR 1,5MN TON 2020 Total Production Capacity(1) 9.716 SALES 77 Years of experience MILLION TL 21% 1 M TON 2020 Production (1) 35,4% 19.8% 5 YEAR CAGR EBITDA Reduction in water use EBITDA MARGIN 32% 69 Innovation Project 2020 ₺ 65% Reduce rejected packaging ratio (
Slide 4: 4 countries, 13 facilities, 1,5 Mtons capacity
Largest confectionary company in the region TR: 77 Bisc.& Choc.& Cakes 4 in Istanbul, 2 in Karaman, 2 in Ankara and 1 in Giresun Kazakhstan Hamle Bisc.&Choc.&Cakes years Production: Total 9 Factories T.Capacity: 1.3 Mtons/year Capacity:36k tons/year of experience in Turkey 4 countries, 13 facilities
Slide 5: Sustainability at the heart of what we do
Sustainability at the heart of what we do VALUE CHAIN 1 In the value chain we work with a total of 2,250 suppliers, of which 2,138 are local 2 We achieved a 35,4% reduction in water use INNOVATION per unit production. Our carbon emissions have remained With 69 projects unchanged since 2014 completed
Slide 6: Challenges
Challenges Despite heavy challenges on market condition we are on track with our targets Border closures Increase in the in export Borderclosures Border closures inin export 01 markets 02 markets logistic costs export markets Consumption decline Decrease in the due to lockdowns Border in closures in
Slide 7: Solid strategies for continued profitable growth across the region
Solid strategies for continued profitable growth across the region A fresh reset of the Accelarating digital Attention to new price/value engagement c trend relationship Brand loyalty and Home recast as the Expectation for grow the core coffee shop, brands To lead with restaurant, and purpose and pl
Slide 8: Achieve an extraordinary success: grow volume, market share and EBITDA margin
Achieve an extra ordinary success: grow our volume, increase our market share and reach a pivotal EBITDA margins Hi Food FMC Hamle UI MENA IBC ▪ Ability to act as local producer and regional production hubs as well (EGYPT) (KSA) (KAZAKHSTAN) (UAE) (KSA) (TR) ▪ Ability to build higher scale in primar
Slide 9: 3Q 2021 Highlights and Consolidated Operational Performance
1 Company Overview 2 3Q 2021 Highlights and Consolidated Operational Performance 3 Domestic Operations 4 Export and International Operations 5 Balance Sheet Highlights 6 acquisition 7 2021 Guidance 9
Slide 10: 2021 First nine months consolidated performance highlights
2021 First nine months consolidated performance highlights Revenue Gross Profit Gross Margin 8.419 MTL 2.378 MTL 28,2% Growth + 20,7% Growth + 12,6% -200pbs EBITDA Net Free Cash Debt/EBITDA Flow 1.496 MTL 2021 :2,47x 2021 YTD:217MTL Growth +8,8% 2020 : 0,42x 2020 YTD: 184MTL Gida acquisition. All nu
Slide 11: Consolidated volume and value performance 3Q
consolidated volume and value performance vs CONFECTIONARY SALES VOLUME (KTONS) CONFECTIONARY SALES VALUE (MTL) 138 145 2.228 2.899 204 11 12 140 47 51 1.383 1.078 79 82 1.312 1.010 Biscuits Chocolate Cake Biscuits Chocolate Cake 3Q 2020 3Q 2021 3Q 2020 3Q 2021 ▪ Total confectionary revenue increase
Slide 12: Consolidated volume and value performance 9M
consolidated volume and value performance vs CONFECTIONARY SALES VOLUME (KTONS) CONFECTIONARY SALES VALUE (MTL) 438 424 6.749 8.131 31 31 391 505 160 158 4.069 3.398 247 235 2.960 3.558 Biscuits Chocolate Cake Biscuits Chocolate Cake 9M 2020 9M 2021 9M 2020 9M 2021 ▪ Total volume decreased by 3,2%.
Slide 13: Contribution of exports and international operations
Contribution of exports and international operations REVENUE BREAKDOWN EBITDA BREAKDOWN 40,1% 44,5% 42,8% 38,8% 57,2% 61,2% 55,5% 59,9% Domestic International Domestic International 9M 2020 9M 2021 9M 2020 9M 2021 Gida acquisition. All numbers presented in webcast include Gida numbers unless otherwi
Slide 14: Consolidated operational and financial performance
Consolidated operational and financial performance 3Q 2020 3Q 2021 % 9M 2020 9M 2021 % Volume (Ton) 157.543 165.387 5,0% 500.075 480.505 -3,9% Confectionary Volume 137.666 144.608 5,0% 437.688 423.728 -3,2% Non - Confectionary Volume 19.877 20.779 4,5% 62.387 56.777 -9,0% Revenue 2.291.160 2.976.133
Slide 15: Domestic Operations
1 Company Overview 2 3Q 2021 Highlights and Consolidated Operational Performance 3 Domestic Operations 4 Export and International Operations 5 Balance Sheet Highlights 6 acquisition 2021 Guidance 7 15
Slide 16: 2021 year to date domestic market growth in Turkey
2021 Year to date domestic market growth in our key market -Turkey TOTAL SNACKING CHOCOLATE 21,9 23,0% % Total snacking Total chocolate market declined by market up by 0,7% in 2,4% in volume volume and terms and increased increased by 23% in -2,4% by 21,9% in value value terms 0,7% terms Volume Valu
Slide 17: Turkey strong #1 in total snacking with 37% market share
Turkey Strong #1 in total snacking with 37% market share BISCUITS 41,4% MARKET SHARE #1 CHOCOLATE 41,4% MARKET SHARE #1 CAKE 20,5% 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 #1 in Cracker #2 in Portion Muffin
Slide 18: Turkey 2020 & 2021 Synergy products
Turkey-2020&2021 Synergy products 18
Slide 19: Turkey NPD sales contribute 14,4% of domestic sales
Turkey-NPD Sales contribute 14,4% of total domestic sales in 9M2021 2021 NEW PRODUCT LAUNCHES BISCUITS CAKE CHOCOLATE 19
Slide 20: Domestic results in Turkey 3Q
in Turkey CONFECTIONARY VOLUME (X000 TONS) CONFECTIONARY SALES (MTL) GROSS PROFIT (MTL) EBITDA (MTL) 292 1.751 432 237 101 1.311 334 95 16,0% 23,7% 17,7% 24,9% 3Q'20 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 ▪ Confectionary sales volume ▪ Confectionary revenue was up ▪ Gross profit increased by ▪ EB
Slide 21: Domestic results in Turkey 9M
In 9M environment in the snacking market in Turkey CONFECTIONARY VOLUME (X000 TONS) CONFECTIONARY SALES (MTL) GROSS PROFIT (MTL) EBITDA (MTL) 1.230 855 4.921 763 301 289 1.066 4.047 23,9% 16,6% 25,5% 18,2% 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21 ▪ Confectionary sales volume ▪ Confectionary r
Slide 22: Strategy to focus on branded products
Strategy to focus on branded products BRANDED & OTHER VOLUME BREAKDOWN BRANDED & OTHER REVENUE BREAKDOWN 8% 6% 6% 9% 92% 94% 94% 91% Non Branded 6% Branded Other Branded Other 94% Branded 3Q 2020 3Q 2021 3Q 2020 3Q 2021 22
Slide 23: Export and International Operations
1 Company Overview 2 3Q 2021 Highlights and Consolidated Operational Performance 3 Domestic Operations 4 Export and International Operations Balance Sheet Highlights 5 6 acquisition 7 2021 Guidance 23
Slide 24: Saudi Arabia - stronger with higher market share, position #1
Saudi Arabia - Stronger and stronger with higher market share Position # 1 FMC FINANCIAL REVIEW BISCUITS MARKET SHARE #1 9M'20 9M'21 Change 15,8% Sales Volume (tons) 38.222 35.521 -7,1% 14,3% 11,4% Net Sales(SAR x000) 565.754 513.072 -9,3% + 7,5% EBITDA(SAR x000) 79.764 54.683 -31,4% + EBITDA Margin
Slide 25: Saudi Arabia IBC operations efficiency
Saudi Arabia IBC operations efficiency in all lines proves that the strategy of the acquisition is on right track IBC FINANCIAL REVIEW IBC PRODUCT PORTFOLIO 9M'20 9M'21 Change Sales Volume (Tons) 10.309 10.429 1,2% Net Sales (SAR x000) 125.185 124.698 -0,4% EBITDA (SAR x000) 36.673 30.036 -18,1% EBI
Slide 26: Egypt achieved #1 position in biscuits
Egypt Achieved number #1 position in biscuits, target to be #2 in cake & top 5 in chocolate HI-FOOD & ULKER EGYPT FINANCIAL REVIEW BISCUITS MARKET SHARE #1 9M'20 9M'21 Change Sales Volume (tons) 25.138 28.476 13,3% Net Sales(EGPx000) 973.705 1.087.072 11,6% 18,8% 14,9% 10,5% EBITDA(EGPx000) 168.244
Slide 27: UI MENA operations
UI MENA Operations to become # 1 or strong # 2 in all MENA UI MENA FINANCIAL REVIEW 9M'20 9M'21 Change Sales Volume (tons) 9.076 7.795 -14,1% Net Sales(AED x000) 124.746 113.329 -9,2% EBITDA(AED x000) 44.173 44.445 0,6% EBITDA Margin 35,4% 39,2% ▪ Volume declines mainly driven by the market contract
Slide 28: Kazakhstan - a bridge from east to west
Kazakhstan-a Bridge from east to west and our gate to Asia HAMLE FINANCIAL REVIEW CHOCOLATE MARKET SHARE #3 9M'20 9M'21 Change Sales Volume (tons) 12.141 12.798 5,4% 55,2% Net Sales(KZTx000000) 13.434 14.907 11,0% 15,3% 13,6% 8,1% EBITDA(KZTx000000) 1.959 1.822 -7,0% EBITDA Margin 14,6% 12,2% Compet
Slide 29: International operations performance
International operations performance BISCUITS 23,3% M.SHARE #1 BISCUITS 18,8% M.SHARE #1 CHOCOLATE 13,6% 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 Wafer #4 in Wafer #1 in Digestives #2 in Countline #4 in Sandwich Bisc. #2 i
Slide 30: NPD sales contribute 5,6% of international sales
NPD Sales contributes 5,6% of total international sales in 9M2021 SAUDI ARABIA EGYPT KAZAKHSTAN 30
Slide 31: Exports and international operations in 3Q
Strong results achieved in exports and international operations in 3 CONFECTIONARY VOLUME (X000 TONS) CONFECTIONARY SALES (MTL) GROSS PROFIT (MTL) EBITDA (MTL) 1.148 341 373 43 44 917 211 204 35,8% 32,3% 21,4% 18,3% 3Q'20 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 ▪ Confectionary volume increased ▪ C
Slide 32: Exports and international operations in 9M
Exports and international operations in 9M 1 CONFECTIONARY VOLUME (X000 TONS) CONFECTIONARY SALES (MTL) GROSS PROFIT (MTL) EBITDA (MTL) 136 135 3.210 1.148 612 641 2.702 1.047 37,4% 35,1% 21,9% 19,6% 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21 9M'20 9M'21 ▪ Confectionary volume ▪ Confectionary revenue up by
Slide 33: Strategy to focus on branded products
Strategy to focus on branded products BRANDED & OTHER VOLUME BREAKDOWN BRANDED & OTHER REVENUE BREAKDOWN 21% 20% 15% 14% 79% 80% 85% 86% Non Branded 6% Branded Other Branded Other 94% 3Q 2020 3Q 2021 3Q 2020 3Q 2021 Branded We focused on branded product sales and continue to enjoy significant contri
Slide 34: Balance Sheet Highlights
1 Company Overview 3Q 2021 Highlights and Consolidated 2 Operational Performance 3 Domestic Operations 4 Export and International Operations 5 Balance Sheet Highlights 6 Acquisition 2021 Guidance 7 34
Slide 35: Consolidated Net Working Capital & Net Debt Position
Consolidated Net Working Capital & Net Debt Position NET DEBT / (MTL) NET DEBT/EBITDA (X) MATURITY BREAKDOWN AS OF SEPTEMBER 2021 2,47x 17% 0,42x 5.045 813 0,14x 83% 31 December 2020 30 Sept 2021 31 December 2020 30 September 2021 Long Term Short Term AVERAGE WORKING CAPITAL DAYS & NET WORKING CAPIT
Slide 36: Acquisition
1 Company Overview 3Q 2021Highlights and Consolidated 2 Operational Performance 3 Domestic Operations Export and International Operations 4 5 Balance Sheet Highlights 6 7 2021 Guidance 36
Slide 37: Acquisition highlights
highlights integration Complementary fit to consolidated existing business model Create high-level synergy between companies and build a structure that will accelerate profitable, sustainable growth Positive contribution to EBITDA margin The acquisition was conducted with 4.373 mnTL enterprise value
Slide 38: Gida acquisition: key products and EBITDA contribution
9M 2021 9M 2021 Revenue EBITDA ▪ Headquarter in 2.315 MNTL 273 MNTL ▪ Ownership: owned by parent Holding ▪ Headcount: 474 280bps ▪ Locations: 4 manufacturing facilities contribution to in Turkey Key Products consolidated numbers as of September ▪ High quality chocolate liquid , 2021 ▪ Cocoa powder,
Slide 39: 2021 Guidance
1 Company Overview 2 3Q 2021Highlights and Consolidated Operational Performance 3 Domestic Operations 4 Export and International Operations 5 Balance Sheet Highlights 6 Acquisition 7 2021 Guidance 39
Slide 40: 2021 Consolidated Guidance
2021 Consolidated Guidance June 2021 September 2021 Guidance Guidance-Revised Net Sales 16% 11,5BNTL Growth EBITDA Margin 16,0% 18,0% 40
Slide 41: Investor relations contact
Investor relations contact For further information please e-mail ir@ulker.com.tr or call +90 (216) 524 25 56 Beste Tasar Investor Relations Director +90 (216) 524 25 56 beste.tasar@ulker.com.tr http://ulkerbiskuviyatirimciiliskileri.com 41
Slide 42: Disclaimer
Disclaimer ▪ This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Sanayi A. . ▪ This presentation contains forward-looking statements which are based on certain expectations and assumptions at the time o
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