Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — H1 2017 Earnings Presentation
28 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Aug 16, 2017
Slide 1: Turkey's Largest Food Company – First Half 2017 Financial Results
“Turkey’s Largest Food Company” First Half 2017 Financial Results Aug 16, 2017 Borsa Istanbul: ULKER ULKER.TI (Bloomberg) | ULKER IS (Reuters) www.ulkerbiskuvi.com.tr
Slide 2: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Ülker. This presentation contains forward-looking statements which are based on certain expectations and assumptions at the time of publica
Slide 3: Turkey Macro Economic Overview
Turkey Macro Economic Overview Retail Sales Volume Index 133,3 Retail sales volume Index (Adj.) 132,1 132,1 132,3 131,7 130,6 130,9 131,3 improved by 3.9% in 2017 over 130,1 129,8 128,6 129,4 128,3 128,3 128,1 2016 year-end 127,3 126,5 126,0 Industrial Production index averaged 126.4 in 2016, an
Slide 4: Market Growth
Market Growth Market Growth % (Volume & Value in H1 2017) Total Confectionary Confectionery market growth 11,8% 5,0% posted by 11.8% in value Volume Value terms Biscuit Biscuit market in Turkey grew 11,8% by 11.8% 6,3% Volume Value Chocolate market in Turkey Chocolate grew by 11.5% 11,5% Cak
Slide 5: Consolidated Figures
Consolidated Figures TL ('000) Q2 2016 Q2 2017 % H1 2016 H1 2017 % Volume ('000 Ton) 164,6 135,0 -18,0% 319,2 298,1 -6,6% Confectionary 129,3 126,4 -2,3% 263,1 268,3 2,0% Non-Confectionary 35,3 8,6 -75,6% 56,1 29,9 -46,7% Revenue 1.002,5 1.113,8 11,1% 2.037,9 2.345,7 15,1% Confectionary 954,9 1.085,
Slide 6: Category Breakdown
Category Breakdown 6 Sales Volume Net Sales (Tons) (TL mn) 263.087 2.270,9 268.282 1.953,1 Biscuit Biscuit Chocolate Chocolate 219,2 30.856 29.904 Cake Cake 204,9 126.372 91.963 90.262 954,9 1.085,6 129.333 1.119,4 990,6 14.543 14.288 103,5 44.400 96,5 42.776 140.268 148.115 546,1 481,9 70.390 69.30
Slide 7: Domestic Operations
7 Domestic Operations
Slide 8: #1 in total confectionery with 36% market share
8 #1 in total confectionery with 36% market share Turkey Value Biscuits – 36% Market Share Chocolate – 39% Market Share Cake – 28% Market Share # 1 in Petit Beurre # 1 in Creamy Biscuits 4 out of Top 5 in Chocolate Covered #1 in Cake # 1 in Chocolate Covered # 1 in Special Biscuits #1 in Solid Choco
Slide 9: Branded Sales Contribution of Synergy Products
9 Branded Sales Contribution of Synergy Products 2016 Synergy Products 9
Slide 10: 2017 Synergy Products
2017 Synergy Products | ae” rf) i i — // Amn ees poss SP7...*.- i —] GODIVA ; se) og THINS THINS 10
Slide 11: 2017 New Launches
2017 New Launches 11 Biscuit Cake Chocolate 11
Slide 12: Strong performance prevailed in Q2 2017
Strong performance prevailed in Q2 2017 12 Sales Volume Gross Profit EBITDA Net Sales(TL mn) (tonnes) (TL mn) (TL mn) 24.2% 21.9% 15.1% 14.2% 170,8 172,3 106,7 111,7 785,8 705,3 92.780 93.376 2016 2017 2016 2017 2016 2017 2016 2017 Delivered %3,7 growth in Branded revenue improved by Gross Profit sl
Slide 13: Strong growth in volume and net sales in H1 2017
Strong growth in volume and net sales in H1 2017 13 Sales Volume Gross Profit EBITDA Net Sales(TL mn) (tonnes) (TL mn) (TL mn) 23.9% 21.9% 14.7% 14.1% 1.604,7 352,1 1.433,5 342,4 225,8 210,3 189.886 196.165 2016 2017 2016 2017 2016 2017 2016 2017 Branded sales continue with a Branded revenue up by 1
Slide 14: Increased branded sales boosted by synergies
14 Increased branded sales boosted by synergies Branded-Non Branded-Non Branded Breakdown Branded Breakdown Volume Revenue +3.0 pp +2.1pp 88,3% 91,3% 92,9% 95,0% H1 H1 H1 H1 2016 2017 2016 2017 11,7% 5,0% 8,7% 7,1% Branded Non Branded Branded Non Branded Branded Non Branded Branded Non Branded 14
Slide 15: International Operations
15 International Operations
Slide 16: Egypt – To become #1 in biscuits, #2 in cake & top in chocolate
Egypt – To become #1 in biscuits, #2 in cake & in 16 top 5 in chocolate Snapshot of Egypt (2017) 400 Market Size (Vol) 385 350 Population 90 mn 321 300 20% 260 18% Population Growth Rate* c2.0% 250 14% 17% 18% 1% 200 1% GDP** 330.8 bn USD 24% Cake 150 1% Chocolate Traditional Channel c80% 100 64% 65
Slide 17: Saudi Arabia – To become a strong challenger in biscuit & confectionery market
Saudi Arabia – To become a strong challenger in the17 biscuit & confectionery market 160,0 Snapshot of Saudi Arabia (2017) Market Size (Vol) 140,0 150 120,0 133 5% Population 31 mn 4% 100,0 115 33% 5% 80,0 31% 3% Candy Population Growth Rate* c2.2% 3% 60,0 28% Cakes 2% 65% Savoury Biscuits 40,0 GDP*
Slide 18: Kazakhstan – A bridge from East to West
Kazakhstan– A bridge from East to West 18 80,0 Snapshot of Kazakhstan (2017) 69 70,0 12 Population 17.5 mn 56 60,0 45 2% 12% Population Growth Rate* c1.5% 50,0 2% 24% 12% 40,0 22% 3% GDP** 185 bn USD 2% 3% 22% 2% Cakes 30,0 Traditional Channel c80% Savoury Biscuits 20,0 64% 62% Size of Confectionery
Slide 19: Strong brand recognition in operating territories
Strong brand recognition in operating territories 19 Egypt Saudi Arabia Kazakhstan Biscuits – 13.4% Market Share Chocolate–8.4% Market Share Biscuits – 13.4% Market Share # 1 in Filled # 1 in Filled # 1 in Plain (Biskrem and Tamr brands) # 2 in Plain # 4 in Sandwich #1 in Coated (Teabiscuits and Fin
Slide 20: 2017 New Launches
2017 New Launches 20 EGYPT KAZAKHSTAN *Source: AC Nielsen 20
Slide 21: 2017 New Launches
2017 New Launches 21 SAUDI ARABIA *Source: AC Nielsen 21
Slide 22: Improvements on the ground led higher profitability in Q2 2017
Improvements on the ground led higher profitability22 in Q2 2017 Confectionery Confectionery Gross Profit* EBITDA* Sales Volume Net Sales (TL mn) (TL mn) (tonnes) (TL mn) 25.3 % 28.9% 11.8% 13.5% 36.553 32.996 94,8 75,0 44,2 299,8 35,2 249,6 2016 2017 2016 2017 2016 2017 2016 2017 Overall volume was
Slide 23: Strong performance prevailed in H1 2017 with profitability focus
Strong performance prevailed in H1 2017 with 23 profitability focus Confectionery Confectionery Gross Profit* EBITDA* Sales Volume Net Sales (TL mn) (TL mn) (tonnes) (TL mn) 25.8% 29.4% 12.2% 14.3% 73.200 72.117 666,2 519,5 218,2 105,8 156,0 74,0 2016 2017 2016 2017 2016 2017 2016 2017 Branded sales
Slide 24: Strategy to focus in branded confectionery products
Strategy to focus in branded confectionery products24 Confectionery Confectionery Branded-Non Branded-Non Branded Breakdown Branded Breakdown Volume Revenue +4.0 pp +2.0 pp 70,6% 74,6% 79,8% 77,7% 29,4% H1 H1 H1 H1 2016 2017 22,3% 2016 2017 25,4% 20,2% Branded Non Branded Branded Non Branded Branded
Slide 25: Cash Cycle and Net Debt
Cash Cycle and Net Debt Average working capital days Cash Cycle of 38 days in H1 TL 545,6 mn TL 616,3 mn 2017 (40 days in H1 2016) 60 Working capital requirement 58 over sales ratio was 14.2% in 55 59 43 H1 2017 and 13.6 in H1 2016. 39 Net debt stands at TL 754 mn as of June 30, 2017 H1 2016
Slide 26: Net Position
Net Position (Million TL/$/€) TL Equivalent USD EUR GBP Cash and cash equivalent 3.122,3 422,6 409,0 0,6 Trade Receivables 116,4 22,5 8,6 0,7 Other non-current Asset 0,1 0,0 - - Total Assets 3.238,8 445,1 417,6 1,4 Financial Liabilities 2.242,4 356,1 248,2 - Trade Payables 73,4 12,1 7,4 0,3 Other 0,
Slide 27: Financials-Reported
Financials-Reported 27 Consolidated Income Statement 2Q 2016 H1 2016 Income Statement(TL mn) 2Q 2017 H1 2017 Restated Restated Sales Revenues 1.002,5 1.113,76 2.037,9 2.345,66 Growth (%) 11,1% 15,1% Gross Profit 245,8 267,1 498,4 570,3 Growth (%) 8,7% 14,4% Gross Profit Margin 24,5% 24,0% 24,5% 24,3
Slide 28: Questions & Answers
“Turkey’s Largest Food Company” Questions & Answers
Ülker Bisküvi Sanayi A.Ş. — H1 2017 Earnings Presentation on 6ix