Pinar Sut Mamulleri Sanayii A.s. · BIST:PNSUT

Pinar Sut Mamulleri Sanayii A.s — Pınar Süt Mamulleri Sanayii A.Ş. — Q3 2016 Earnings Presentation

19 slides from Pinar Sut Mamulleri Sanayii A.s's earnings presentation, 2016

1. Slide 1: 2016-Q3 Earnings Presentation

   investorrelations@pinarsut.com.tr PINAR SÜT MAMULLERİ SANAYİİ A.Ş. 2016-Q3 Earnings Presentation

2. Slide 2: 2016-Q3 Highlights

   1 2016-Q3 │ Highlights 2016-9M Dairy Consumer Raw Milk Financial Market* Price Index Prices Summary  In 2016-9M,  Annual consumer  The raw milk  Net sales; market turnover price Index (CPI) is prices which is 798.4 million TL grew by 3.4%, YoY 7.28% set by National  EBITDA;  In 2016-9M, its 

3. Slide 3: 2016-Q3 Market Dynamics: Annual Milk Production in Turkey

   2 2016-Q3 │ Market Dynamics Annual Milk Production in Turkey Food Prices (Annual Pct. Change) (m ton) Processed Food Unprocessed Food Source: TSI Food excl. Fresh Fruits and Vegetables In the third quarter of 2016, Year Milk Production both processed food inflation 2002 8.4 and unprocessed food 2003

4. Slide 4: 2016-Q3 Market Dynamics: Raw Milk Prices

   3 2016-Q3 │ Market Dynamics 2014 2015 2016 1.15 TL Raw Milk Prices 1.20 TL  The raw milk base price which is set by National 1.00 TL Milk Council has remained stable since Source: National Milk Council, liter July, 2014. 0.80 TL In the third quarter of 2016, the raw milk base price remained at the

5. Slide 5: 2016-Q3 Market

   4 2016-Q3 │ Market Dairy Market* 2,500m TL 17.5% 16.3% 17.0%  In the first nine months of 2016, 15.0% 2,400m TL measurable dairy market grew by 3.4% and 13.0% 2,300m TL 2,376 m 2,457 m its volume increased to 1.6%. 11.0% TL *milk, yoghurt, spreadable cheese, ayran, butter. 2,200m TL TL 9.0% (BIM&A1

6. Slide 6: 2016-Q3 New Products

   5 2016-Q3│ New Products  The new series including Cheddar, Mozzarella Cheese and Kashkaval Cheese in 20 gram packages launched. Pınar Go Portion Cheese

7. Slide 7: 2016-Q3 Income Statement

   6 2016-Q3 │ Income Statement (Million TL) 30.09.2016 30.09.2015 Difference % Change Net Sales 798.4 750.4 48.1 6.4 Cost of Goods Sold (653.6) (631.5) (22.2) 3.5 Gross Profit 144.8 118.9 25.9 21.8 R&D Expenses (7.9) (6.7) (1.1) 16.9 Sales, Distribution and Marketing (53.7) (49.6) (4.0) 8.1 Expenses G

8. Slide 8: 2016-Q3 Sales Breakdown

   7 2016-Q3 │ Sales Breakdown Product Growth in traditional cheese segment Portfolio 2015-9M Net Sales 2016-9M  In the first nine months of 2016, total net sales turnover grew by 6.4% and volume increased by 4.6%

9. Slide 9: 2016-Q3 Sales Breakdown: Channels

   8 2016-Q3 │ Sales Breakdown│ Channels 2016-9M 83% 11% 6% Sales YBP EXPORT DIRECT Channels Net Sales 85% 12% 3% 2015-9M

10. Slide 10: 2016-Q3 Sales Breakdown: Export

    9 2016-Q3 │ Sales Breakdown│ Export Exports Breakdown by Country (%)  The export revenue 27.4 was $ 31.0 million in 24.6 the first nine months of 2016 accounting for a 12.9 0.9% increase in terms 11.7 10.8 of TRY by the 5.3 comparison with the 3.7 3.5 same period of 2015. S.Arabia Kuwait UAE Iraq C

11. Slide 11: 2016-Q3 Sales and Profitability

    10 2016-Q3│ Sales and Profitability Net Sales (m TL) Gross Profit (m TL) 200.0 180.0 18.6% 16.1% 18.1% 160.0 16.8% 15.8% 20.0% 140.0 15.0% 120.0 100.0 1,011 162.4 10.0% 940 80.0 150.9 157.7 144.8 810 750 798 60.0 118.9 5.0% 40.0 20.0 0.0 0.0% 2013 2014 2015 2015 9M 2016 9M 2013 2014 2015 2015 9M 201

12. Slide 12: 2016-Q3 Profit Margins

    11 2016-Q3 │ Profit Margins Gross Profit EBIT 18.6% 19.0% 16.8% 6.7% 6.7% 16.1% 15.4% 14.1% 5.8% 5.3% 5.2% 3.7% 2013 2014 2015 2Q16 3Q16 3Q15 2013 2014 2015 2Q16 3Q16 3Q15 EBITDA* Net Profit 8.9% 9.2% 9.3% 7.7% 8.0% 8.3% 7.7% 6.1% 6.2% 6.6% 4.8% 2.9% 2013 2014 2015 2Q16 3Q16 3Q15 2013 2014 2015 2Q16

13. Slide 13: 2016-Q3 Plants and Investments

    12 2016-Q3 │ Plants and Investments  710 m liter annual capacity of raw milk processing in Plants 3 plants. Pınar Süt Şanlıurfa Plant Capital  In the first nine months of 2016, 27.2 million TL Expenditures capital expenditures were realized.

14. Slide 14: 2016-Q3 Financial Ratios

    13 2016-Q3 │ Financial Ratios Balance Sheet Ratios 2012/12 2013/12 2014/12 2015/12 2016/09 Current Ratio 1.64 1.51 1.42 1.16 1.25 Leverage Ratio 0.29 0.30 0.32 0.34 0.36 0.99 Current Borrowings/Total Borrowings 1.00 0.55 0.93 0.48 Net Borrowings/EBITDA 0.17 0.05 0.16 0.35 0.61 Net Borrowings/Equity

15. Slide 15: Strategy and Targets

    14 Strategy and Targets  Effective price management  Widespread distribution network  Efficient utilization of social media  Developments in Away From Home channel  Increasing export sales  Continuous marketing investments  Growing above market growth rates in the segments we operate in

16. Slide 16: Ownership, Participations, Auditors

    15 Ownership │ Participations│ Auditors Ownership Structure Auditors Financial Affairs Yaşar Holding A.Ş. 61% Price Waterhouse Coopers Free Float 39% Ernst&Young Production TSE Participations Breau Veritas İştirak Participation Share in Capital İştirak Oranı %% Yaşar Birleşik Pazarlama A.Ş. 31,8 Foo

17. Slide 17: Stock Performance

    Stock Performance 200 25.00 14.48 20.00 150 100.00 15.00 100 10.00 101.99 50 12.61 5.00 - 0.00 Relative to XUTUM BİST-TÜM'e göre (sol eksen) PNSUT (Sağ eksen) (TL) Corporate Governance Rating: 9.18 Borsa İstanbul Ticker Symbol: PNSUT Date of Listing: 03.02.1986 16

18. Slide 18: Disclaimer and Contact Information

    17 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-l

19. Slide 19: Thank you

    Thank you

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