2. 1
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Going forward / Our strategy
4. Financials
5. Appendix
2
7
24
27
32
3. We are the leading name in Turkish confectionery... 2
• 69 years of experience in Turkish confectionery
• Leader in biscuit and chocolate category with 48% &
49% market share; #2 in cake category with 33% market
share – 9M 2013
• Largest production capacity in the domestic market with
spread out facilities
• Consolidated annual net sales of TL 2.3 bn in 2012;
aiming to reach ~TL 2.6 bn in 2013
• A gateway to the Middle East, Northern Africa and EU,
with exports to those regions accounting for c.20% of
revenues
Key figures – TL mn 2012 YE 2013E
Mcap as of 09/30/2013 4,720
Revenues 2,341 ~2,600
EBITDA 218 285-300
EBITDA margin % 9.3% 11%-11.5%
† Excludes other non-confectionary sales of TL95 mn
Production Facilities
Chocolate
Established in 1991
Capacity: 194k
tons/year
68k sqm closed area
Topkapı, Istanbul
Istanbul
Chocolate,
chocolate
covered biscuit
Established in 1995
Capacity: 30k
tons/year
12k sqm closed area
Silivri, Istanbul Biscuit, cake, cracker &
chocolate
Established in 1986
Capacity: 123k tons/year
102k sqm closed area
Non-Ülker branded products
44% owned by Ülker
Karaman
Cake
Established in 1992
Capacity: 45k
tons/year
27k sqm closed area
Hadımkoy, Istanbul
Biscuit
Established in 1969
Capacity: 126k tons/year
86k sqm closed area
The largest biscuit
manufacturing facility in the
Middle East
Ankara
Biscuit & cracker
Established in 1997
Capacity: 85.5k tons/year
41k sqm closed area
Gebze
Gebze
Ankara
Karaman
† † Yıldız Holding is Turkey’s leading food and beverages group
with annual gross sales of TL12.4 bn as of 2012
Sales 2012 k tons TL mn † % share †
Biscuits 232 844 37%
Chocolate 134 1,137 51%
Cake 57 264 12%
Shareholding Structure (As of 01.11.2013)
4. ... and the “Best Recognized” FMCG brand... 3
Long lasting
relationships
with end users
enhance
brand
perception
The Best in the Sweet
and Salty Category
(Silver Effie Award,
Ülker Rondo, 2011)
Most
Recognized
Company
(AC Nielsen, 2nd
place, 2010)
The “Brand
Award”
(International
Brands
Conference, 2011)
Best Recognized
Brands
Brand One Feels
Close To
# 1
# 2
# 3
# 4
# 5
• Strength of the brand is proven by national and
international awards
• Ülker has always been the “most recognized”
brand and “closest to consumers” ††
• Ülker brand essence and campaign theme:
“Happy moments with Ülker”
• Highly-popular sub-brands are in the market for
2-3 decades
Consistently
ranks as one
of the best
recognized
brands in
Turkey
†
† Arçelik is a household durable goods brand
Source: ACNielsen 2011
5. 4
...with dominant positions in growing markets
BISCUITS
CHOCOLATES
CAKES
48%
49%
33%
Market Share (9M13) (Volume based)
Market Position
# 1
# 1
# 2
Biscuit
Chocolate
† Retail market
# 1 in Petit Beurre Segment
# 1 in Chocolate Covered Sandwich Segment
# 1 in Special Biscuits Segment
# 1 in Creamy Biscuits Segment
# 1 in Sandwich Biscuits Segment
# 1 in Cracker Segment
Top 3 in Chocolate Covered Segment
#1 in Spread Chocolate Segment
208K Tons
120K Tons
55K Tons
Market Size † (9M13)
Market leader in main categories
Growth in Biscuit (Volume)
Growth in Chocolate (Volume) *
6. 5
1996
Milestones of our success
1944
2003
2006
2007
2008
2009
2010
2011
2012
2013††
Established as a small scale family run bakery
Ülker Gıda merged under its own title with Anadolu Gıda
Ülker Gıda changed its name to Ülker Bisküvi: Emphasis on core business
Acquisition of 25% stake in the premium chocolatier brand Godiva Ülker Bisküvi investment: US$214 mn
2011 – 2013: Restructuring at all fronts
New top management on board
Gathering all chocolate and cake businesses under Ülker Bisküvi
Disposal of 6 non-core assets. Reduced Godiva stake to 19% - recorded TL 100mn profit
Simplified traditional channel distribution – merger of production companies with sales companies; consolidation of all sales under new sales company Horizon
SKU optimization – 502 SKUs in 2010 vs. 330 SKUs in 9M 2013
Cancellation of privileged shares and founder shares
New dividend policy – minimum 70% of distributable income
†Mcap as of year-end
†† Revenue LTM 9M2013; Mcap as of 9/30/2013
Revenues Mcap†
US$ mn
Appointment of Murat Ülker as Chairman of Ülker and Yıldız Holding: new generation & new vision
Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange
Rapid growth led to complex corporate structure – 4 sales companies, 4 production companies and minority stakes in 7 non-core assets
7. 6
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Going forward / Our strategy
4. Financials
5. Appendix
2
7
24
27
32
8. 7
Key investment highlights
Further margin improvement to be realized on the back of...
Simplified and efficient distribution network
Effective OPEX management
Increasing share of higher margin chocolate sales
Top-line growth driven by...
Growing market - young population with increasing purchasing power spending more on packaged foods
Ülker - Regaining market share through optimization of SKU portfolio, category expansions and new product launches, unlocking distribution power and new account additions
High barriers to entry
Yıldız Holding: Strong & supportive parent
Biggest food and beverage group with TL 12.4bn turnover with 57 production facilities and 300 brands in 40 categories
Strategic shareholdings in the leading food-retail discounters (Şok and Dia†) and cash & carry wholesaler (Bizim) in Turkey
Ülker - Benefiting from Yıldız Holding’s unique distribution network, procurement power and experience in international markets
Targeting to become a regional player in markets with high growth potential
Geographical expansion already on the way – Saudi Arabia and Egypt
Seeking further international opportunities in high growth markets
is the best recognized FMCG brand in Turkey
1
2
3
4
6
Godiva: Hidden value
US$700 mn revenue business - Global premium chocolate brand with significant brand equity worldwide
Investing in store expansion, especially in the Middle East, China, Japan, Korea and Indonesia
5
c.50% market share across the main categories
Strong brand equity in Turkey and in neighboring countries
Access to an exclusive distribution network reaching ~200,000 sales points
Largest production capacity in the domestic market
† Şok recently acquired DiaSa, a subsidiary of Dia International
9. 8
16%
12%
14%
15%
14%
12%
17%
25%
17%
17%
14%
11%
8%
7%
0-14
15-24
25-34
35-44
45-54
55-64
65+
EU-27 Turkey
59%
59% 41%
41%
1.7%
1.4%
1.3%
1.2%
0.9%
0.7%
0.5%
0.5%
0.5%
0.3%
0.2%
0.2%
0.2%
-0.1%
Malaysia
Turkey
Indonesia
S.Af rica
Brazil
UK
France
Italy
Netherlands
Czech Rep.
Poland
Russia
Greece
Germany
Turkey has one of
the youngest and
fastest growing
populations
Attractive target
consumer group
Source: World Bank, Turkstat
Sizeable market with a growing population Youngest population in Europe
1 Favorable demographics and young target population
Total population in millions
63
29
76
247
51
199
66
61
17
11
39
144
11
82
European median
41 yrs
Turkey median
29 yrs
CAGR 2007- 2012 Population
Source: Turkstat, Eurostat
10. 9
UK
Germany
Russia Netherlands
France USA
Italy
Turkey '12
Turkey '07
Poland
Indonesia
Brazil
S.Af rica
Malaysia
Saudi Arabia
Egypt
HuCnrgoaartyia
Turkey '18
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0 10,000 20,000 30,000 40,000 50,000 60,000
UK Netherlands
Italy
USA
France
Russia
Germany
Turkey '12
Turkey '07
Poland
Indonesia
Brazil
S.Af rica
Malaysia
Saudi Arabia
Egypt
Croatia
Hungary
Turkey '18
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0 10,000 20,000 30,000 40,000 50,000 60,000
UK
Germany
Netherlands
Russia
USA
France
Italy
Turkey '12
Turkey '07
Poland
Indonesia
Brasil
S.Af rica
Malaysia
Saudi Arabia
Egypt
Croatia
Hungary
Turkey '18
2.0
4.0
6.0
8.0
10.0
12.0
10,000 20,000 30,000 40,000 50,000 60,000
...and c.10% CAGR in chocolate consumption
Biscuits consumption vs. GDP per capita Chocolate consumption vs. GDP per capita
Turkey’s
consumption of
biscuits and
chocolate stands
at 3.5 kg and 1.9
kg per capita,
respectively
Increasing GDP
per capita
expected to fuel
biscuit and
chocolate
consumption
Kg per capita
US$ per capita
Kg per capita
US$ per capita
US$20,000† GDP per capita target for Turkey by 2018 implies c.5% CAGR in biscuits consumption...
1
† IMF estimate
Spending increases in tandem with GDP per capita
R2=0.60
R2=0.54
Per capita consumption of biscuits and chocolate in Turkey grew at a CAGR of 5.3% and 7.9%,
respectively, between 2007 and 2012 -still lower than peers
Source: Eurostat Source: Eurostat
11. 10
35%
2015E
50%
2015E
2015E
• Portfolio restructuring started in late 2011
- Keeping star SKUs, discontinuing unprofitable ones –
Reduction from 502 SKUs in 2010 to 330 SKUs in 9M
2013
- Increased brand investments through multichannel
advertising and social media / investment on star SKUs
- Distribution efficiencies / declining sales returns: 2.82% in
2011 vs. 0.99% in 9M2013
- Increasing sales per SKUs
• New launches in 2H2013 to grasp market share:
- Indulgence biscuits: Dore (launched in June 2013)
- Diet biscuits (launched in September 2013)
- Wet cake (launched in September 2013)
- Chocolate (two new products)
1 Regaining market share with portfolio management...
# of SKU and sales
Streamlined product portfolio and increased brand investment for improved sales
Market Share Development, Volume Based†
Cake Chocolate Biscuit
II
II
II
>50%
Results of portfolio
restructuring
reflected as
increased sales
performance
Source: ACNielsen, Euromonitor
† Retail market, Market shares may not add up to 100% due to rounding
12. 11
Traditional
retail
65%
Organized retail
35%
Accessibility is a key success factor
1 ... and unlocking distribution power ...
Typical distribution network
in a similar FMCG network
has a replacement value of
c. US$100mn and requires
1,300 headcount
1,565 km
Ülker domestic sales by channel
665 km
Marmara
30% sales points
35% of total sales
Aegean
17% sales points
10% of total sales
Mediterranean
15% sales points
10% of total sales
Central Anatolia
15% sales points
20% of total sales
Black Sea
11% sales points
10% of total sales
Eastern Anatolia
6% sales points
8% of total sales
S. Eastern Anatolia
6% sales points
7% of total sales
US$
100
Reaching ~200k sales points
throughout Turkey
• 175k in traditional
channel through Horizon
• ~20k bullets in
organized channel
through Pasifik
200k
c.90% nationwide coverage -
widest after beverage &
tobacco companies
90%
Traditional retail
dominates the
biscuits and
chocolate market
Ülker benefits from
Yıldız Holding’s
wide distribution
network throughout
Turkey:
• Horizon in
traditional retail
• Pasifik in
organized retail
13. 12
Horizon to consolidate traditional channel. Distributors sell solely Yıldız Holding brands
3 categories 65 Brands 330 SKUs
40 categories 300 Brands
•Biscuits
•Chocolates
•Cakes
•Baby products
•Personal care
•Light and diabetic products
•Margarine and liquid oils
•Culinary
•Drinks
•Sugar candy & gum
•Breakfast items
Ülker products – c.60% in terms of value and c.35% in terms of volume in Horizon portfolio
60%
1
Brands
... through newly established exclusive distribution
Lower distribution cost
Increased selling power with enhanced product portfolio
Eliminating internal competition between distributors
30%
Delivering c. 30% shelf space of a small grocery - 20% with only Ülker products – excluding tobacco and alcohol
14. 13
Simplified route to market improving margins
Simplified and consolidated route to market creates cost efficiencies paving the way for further margin improvement
•Multi-channel route to traditional market
•Limited to single category sales
•235 distributors
•# of points visited: 140k
•% of invoice issued by visit: 75%-80%
•Single route to traditional market – through Horizon
•Benefiting from Yıldız Holding product portfolio
•103 distributors
•# of points visited: 175k
•% of invoice issued by visit: 90%
Other Food & Beverage Products
Domestic Traditional Channel
Biscuits
Chocolates
Cakes
Horizon † (New Sales Company)
Distributors
Completed New Structure:
Before
Current
Other Food & Beverage Products
Distributors
Domestic Traditional Channel
Biscuits
Chocolates
Cakes
Atlas
(Ülker brand)
Distributors
Atlantik
(Ülker brand)
Atlas
Previous
Structure:
† Owned by Yıldız Holding, took over all traditional sales activities of Ülker as well as Yıldız Holding’s other companies’ sales activities
2
Traditional channel - Efficiency gains from restructuring
Decreased logistics expense
More efficient route to sales points
Enhanced distribution profit
Stronger distributors with higher nominal gains
Better and faster execution capability
15. 14
Route to traditional channel in domestic market
Horizon office
Traditional channel
Small groceries
•Horizon acts as an intermediary between production companies and distributors
•Horizon does not carry either inventory or cash
Distributors
103
# of trucks: 1,545
# of SKUs delivered per truck: 226
# of points visited: 175k
% of invoice issued by visit: 90%
2
•Products are delivered to distributors’ warehouses
•Each distributor receives the whole product portfolio
175k
Factories of other Yıldız Holding companies
Sales to traditional channel consolidated under Horizon
Distributors’
warehouses
Warehouse
(leased by Ülker)
16. 15
Route to organized channel in domestic market
Pasifik office
Organized retail stores
•Pasifik acts as an intermediary between production companies and organized retailers
•Pasifik does not carry either inventory or cash
Organized retailers’ trucks
2
•Products are delivered to organized retailers’ warehouses
•Each organized retailer receives the whole product portfolio
~20k
Factories of other Yıldız Holding companies
Sales to organized channel consolidated under Pasifik
Organized retailers’
warehouses
Warehouse (leased by Ülker)
17. 16
Distribution efficiencies reflected in figures
2
Total savings from the new distribution network is expected to reach TL 350 mn between 2011 and 2013
Gross margin and OPEX/Sales improvement
Diminishing sales returns
† Proforma gross margin figure excludes Atlas and Atlantik
18. 17
22%
25%
20%
23%
Biscuit Chocolate Cake Overall
2 Growing chocolate segment favoring margins
Gross profit margin % - 2012††
48% 49%
Chocolate
share in
total
revenue
9M 2012
Chocolate
share in
total
revenue
9M 2013
Increasing share of higher margin chocolate segment
† Chocolate business consolidated in 4Q2011 following the acquisition of Ülker Çikolota
† † after depreciation
Overall margin benefits from high
growth chocolate category
Chocolate sales and total share in revenue†
Stronger growth in chocolate sales
19% Growth between 9M 2012 and 9M 2013
19. 18
15.0%
1.0%
1.8%
0.6%
11.5%
2013 EBITDA margin Reduction in sales
discounts
Category mix / New
launches
Better cost & OPEX
management
2016E EBITDA margin
Measures reflected in margins, still room to go…
Components of EBITDA margin improvement
2
11,7%
3,4%
1,3%
2,7%
4,3%
2011 EBITDA margin Distribution Restructuring Category Mix Effect Better Cost & OPEX
management
2013-9M EBITDA margin
20. 19
• Extensive and exclusive distribution network - the most relevant entry barrier in the
market
• Reaching ~200,000 points of sales throughout Turkey
• 6 facilities in 4 cities, representing the largest production capacity in the domestic
market
• Ankara biscuit factory - the largest biscuit manufacturing facility in the Middle East
• Geographically diversified production base – competitive advantage in route to
market
High barriers
to entry
Exclusive
distribution
Largest & spread-out
production
capacity in the
domestic market
3 High barriers to entry
Dominant presence in Turkey across the board
• c.50% dominant market share in biscuits and chocolate
• Significantly higher brand awareness of Ülker branded products
• Always been the “most recognized” brand and “closest to consumers”
Strong brand equity
with established
market positions
The Best in the Sweet and Salty Category
(Silver Effie Award, Ülker Rondo, 2011)
Most Recognized
Company
(AC Nielsen, 2nd
place, 2010)
The “Brand Award”
(International Brands Conference, 2011)
21. 20
Expansion started with Saudi Arabia and Egypt, focus on underpenetrated markets
Saudi Arabia
•Population of 28.3 mn growing at CAGR of 1.8% between 2007-2012
•US$ 683bn GDP growing at c.6%
•c.US$ 1.6 bn confectionary market
Established in 2000
42% Yıldız Holding, 58% local partner
Biscuit, chocolate and cake production
Capacity: 43k tons
c. 100 trucks reaching c. 10,000 sales points
(US$ mn)
2012
2013E
Net sales
88
109
EBITDA margin
7.0%
8.0%
(US$ mn)
Market size
Growth†
Per capita consumption††
Chocolate
675
5.6%
1.6
Biscuits
510
5.8%
3.6
Cake
447
4.5%
2.3
FMC (manufacturing)
4
Platform for further growth
Egypt
•Population of 79 mn growing at CAGR of 1.7% between 2007-2012
•US$ 519bn GDP growing at c.6%
•c.US$ 0.6 bn confectionary market
Established in 2007
60% Yıldız Holding, 40% local partner
Biscuit production
Capacity: 27.5k tons
(US$ mn)
2012
2013E
Net sales
32.0
45.0
EBITDA margin
12.0%
18.0%
(US$ mn)
Market size
Growth†
Per capita consumption††
Chocolate
188
7.3%
0.4
Biscuits
268
6.1%
1.5
Cake
137
10.8%
0.5
Established in 2010
100% Yıldız Holding
Biscuit sales
Manages 12 distributors and reaches 20,000 sales points
Hi Food (manufacturing)
Ülker Egypt (sales)
Potential expansion areas
Plans to expand business in under- penetrated markets with high growth potential Target regions: Middle East, North Africa, and Eastern Europe
† 2006-2011 CAGR
†† Kg per capita - 2012
Source: Euromonitor
Source: Euromonitor
22. 21
•Leading premium chocolate producer with significant brand equity worldwide
•Entry into China, S.Korea, Indonesia, S. Arabia and Turkey since the acquisition
•Planned entry into Brazil and Russia
•Yet to reach its potential in terms of growth and margins by
•restructuring the company,
•investing in store expansion, especially in the Far East,
•closing down inefficient stores,
•reshuffling the product portfolio,
•Godiva plans to open 50 new stores per annum and reach US$1.0 bn in revenues and US$120mn EBITDA over the next three years
5
Godiva – Hidden value
Key figures
2008
2013E
2014E
# of stores
432
453
530
Revenues
US$ 370mn
US$ 760mn
US$ 830mn
EBITDA
-
US$ 60mn
US$ 76mn
•Owns and operates 430 retail boutiques in 84 countries as of 9M13 end
•Available via over 10,000 specialty retailers
Geographical presence of Godiva as of 1H13 end
198 stores in the US
32 stores in Europe
200 stores in Asia
Godiva store in Harrods, London
Godiva store in Denver, the US
Year
U.S.
Japan
China
Pac Rim
Belgium
Others
2008
262
99
-
32
8
21
2012
203
125
30
32
7
25
2013YE
200
130
52
36
6
29
Geographical store evolution
Acquired by Yıldız Holding in 2008 Ülker stake in Godiva - 19%
23. 22
Experience in managing international operations
•Operates in 6 sectors with TL12.4 bn gross sales in 2012
•The largest branded food group in CEEMEA
•57 production facilities, 300 brands in 40 categories including biscuits, chocolate, confectionary, margarine & liquid oils, culinary products, dairy products, beverages, fruit juice and frozen foods
•Benefits from its diversified business portfolio - significant distribution and purchasing synergies across the portfolio
•Increased interests in food retailing with strategic stakes in top three discounters - Bizim, Şok and Dia accounting for 7% of organized food retail sales in Turkey
6
Yıldız Holding: Strong & supportive parent
Food & Beverages
Packaging
Finance
Retail
Real Estate
Personal Care
Best recognized food brand
#1 in biscuits & chocolates
#2 in dairy products
#1 in edible oils and fats
#1 in overall baby food
#1 in culinary products
Premium segment chocolate producer acquired in 2008
In excess of 200k sales points nationwide
c.90% coverage, second best after Coca-Cola Icecek
Diversified product portfolio holding strong market shares
JVs with leading international players Sole and first brand sought out for co-branding
Turkey's first food company to establish a nationwide distribution network
Bizim and Şok -7% of Ülker’s net sales as of 2012
Dia - new account entered after the acquisition in July 2013
TL 1,974mn†
TL 1,328mn†
TL 964mn†
† 2012 revenues
24. 23
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Going forward / Our strategy
4. Financials
5. Appendix
2
7
24
27
32
25. 24
15.0%
1.0%
1.8%
0.6%
11.5%
2013 EBITDA
margin
Reduction in
sales
discounts
Category Mix
Effect/New
Launches
Better Cost &
OPEX
management
2016E
EBITDA
margin
4,500
417
614
128
1,000
2,341
2016 Guidance
By 2016, Ülker is expected to surpass TL4.5bn net sales
(including inorganic growth) with an EBITDA margin of
above 15%
EBITDA growth to surpass sales growth
Chocolate volume
up 6 to 8%
annually
Biscuits and
cakes volume up
4 to 6% annually
Average price to
be increased by
± 2% vis-a-vis
inflation
Gross margin to
be materialized
above 25%
Top Line
Profitability
Capex and
Dividend
Capex: 2.5-3.0%
of net sales
Distribute
minimum 70% of
distributable
income
EBITDA margin to
be materialized
above 15%
Sales 2012-2016 (TL mn)
2012
sales
Biscuits Chocolates Cakes International
growth
2016
sales
2013
EBITDA
margin %
Reduction
in sales
discounts
Category
mix effect
/ New
launches
Better cost &
OPEX
management
2016
EBITDA
margin %
EBITDA margin % 2012-2016
CAGR 18%
26. 25
Beyond 2016
Long-term ambitions
Productivity
Brand investments
•Boost product quality through operational efficiency
•Further efficiency and productivity in distribution channels
•Meet/beat international benchmarks
•Ensure the continuity of brand investments
•Offer powerhouse brands to consumers at reasonable prices
•Increase market share
Growth
•Increase operating profit by higher sales volumes and revenues
•Become a strong regional player
•Further efficiency and productivity in distribution channels
•Growth through acquiring national champions
•Sustain best corporate governance practices
Investor level
27. 26
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Going forward / Our strategy
4. Financials
5. Appendix
2
7
24
27
32
28. 27
Increasing sales
Sales volume by category
† Excluding non-confectionery sales volume †† Following acquisition of Ülker Çikolata in 2011, chocolate operations have been consolidated in figures from 4Q2011 onwards
Net sales by category
•Volume increase mainly driven by:
•Growing market
•Efficient distribution
•Improved product mix
•New product launches
•Revenue growth mostly followed volume growth
•Other sales diminishing with the restructuring of distribution channel
Tonnes
TL mn
29. 28
Increasing margins
Gross profit and margin %
EBITDA and margin % ***
145
114
370
453
11.5%
9.6%
9.9%
11.7%
TL mn
TL mn
•Margin improvement due to:
•Efficiencies from distribution restructuring
•Lower sales discounts
•Lower sales returns (9M) More effectiveness at the sales points
•Change in category mix favoring higher margin chocolate
•Better cost and opex management
•Some favorable raw material prices
***Excludes Other Nonoperating Income&Expenses
30. 29
Working capital and net debt
Average working capital days
Net debt
•Net debt as of 9M 2013 end is TL 264 mn
•Financial debt - US$ denominated due to company strategy - Maturity breakdown as of 9M 2013: - Short term 46% - Long term 54%
•Cash & cash equivalents breakdown based on currency - TL: 7 mn - US$: 835 mn† - Euro: 124 mn†
•Net working capital was TL312 mn as of 2012 end and TL461 mn as of 9M 2013
•Working capital requirement over sales ratio was 18.0% in LTM 9M 2013
•FX short position of TL 65 mn
† Amounts expressed in Turkish Lira “TRY”
Average WC days
2011
2012
9M 2013
Trade receivables
87
84
80
Inventory
38
34
34
Trade payables
80
81
72
WC - days
45
37
42
Net debt - TL mn
2012
9M 2013
Financial debt
1.501
1.242
Short term financial debt
614
572
Long term financial debt
887
670
Non-trade receivables from related parties
131
6
Cash and cash equivalents
1.268
973
Net debt
102
264
31. 30
Healthier balance sheet structure
Improving key metrics signals higher future cash generation
2011
2012
9M 2013 LTM
TL 77mn
TL 218mn
TL 280mn
Sustainable EBITDA generation
EBITDA
Working Capital Days
Net Debt / EBITDA
2011
2012
9M 2013
45 days
37 days
42 days
Improved Cash Conversion Cycle
2012
0.71x
0.47x
Net Debt/EBITDA at favorable levels
2011
Higher profitability
Through restructuring and product mix
Better working capital management
Effective use of technology in supply chain management
Sustainable & profitable growth
9M 2013 LTM
0.90x
32. 31
1. Ülker: Who we are ?
2. Key Investment Highlights
3. Going forward / Our strategy
4. Financials
5. Appendix
2
7
24
27
32
33. 32
Income statements (TL mn)
2011
2012
Growth 11-12
9M 2012
9M 2013
Growth 9M 12-13
Sales Revenue
1.789
2.341
31%
1.707
1.978
16%
Cost of Sales
(1.433)
(1.838)
28%
(1.336)
(1.525)
14%
Gross Profit
356
503
41%
370
453
22%
Gross Profit Margin %
19,9%
21,5%
21,7%
22,9%
OPEX
(309)
(332)
7%
(236)
(260)
10%
Marketing, Sales and Distribution Expenses
(242)
(227)
-6%
(159)
(177)
12%
General Administration Expenses
(65)
(96)
49%
(72)
(73)
3%
Research and Development Expenses
(3)
(9)
232%
(6)
(10)
62%
EBIT
47
171
267%
135
193
44%
EBIT Margin
2,6%
7,3%
7,9%
9,8%
Depreciation
(30)
(48)
59%
(35)
(39)
9%
EBITDA
77
218
185%
170
232
36%
EBITDA Margin
4,3%
9,3%
9,9%
11,7%
Other Operating Income / Expense
66
32
-53%
43
146
239%
Profit / Loss from Investments
-
-
n.m.
-
-
-
Share in Net Profit of Investments
(13)
-
-100%
-
-
n.m.
Finance Incomes / Expenses
621
42
-93%
26
(148)
n.m.
Profit Before Taxation
722
244
-66%
203
191
-8%
Tax Charge From Continued Operations
(51)
(48)
-7%
(41)
(39)
-4%
Net Profit
670
196
-71%
163
152
-7%
Financials
Consolidated income statement
34. 33
Financials (cont’d)
Consolidated balance sheet
Balance sheet (TL mn)
2012
9M 2013
Current Assets
2.259
1.979
Cash and cash equivalents
1.268
973
Financial investments
3
3
Trade receivables
597
673
- Trade Receivables from related Parties
433
520
- Other Trade Receivables
164
153
Other receivables
140
10
- Non-trade Receivables
131
6
- Other short-term Receivables
8
4
Inventories
186
200
Other current assets
65
108
Non-Current Assets
898
872
Financial investments
326
325
Investment properties
30
10
Tangible assets
524
519
Intangible assets
1
1
Deferred tax assets
4
6
Other non-current assets
12
11
Total Assets
3.157
2.852
Balance sheet (TL mn)
2012
9M 2013
Current Liabilities
1.143
1.076
Financial liabilities
614
572
Other financial liabilities
-
-
Trades payables
471
413
- Trade payables to related parties
247
237
- Other trade payables
224
176
Other payables
5
1
Corporate tax payable
2
15
Debt provisions
12
34
Employee benefits
22
29
Other current liabilities
17
12
Non-Current Liabilities
934
717
Financial liabilities
887
670
Employee benefits
20
23
Deferred tax liabilities
27
24
Other non-current liabilities
0
0
Shareholders' Equity
1.080
1.059
Share capital
342
342
Inflation adjustments to share capital
108
108
Valuation funds
142
127
Restricted reserves
73
126
Actuarial gain / loss
(2)
(2)
Retained earnings
127
106
Net income for the year
167
123
Non-controlling interest
122
129
Total Liabilities and S.E.
3.157
2.852
35. 34
Disclaimer
•This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Ülker Bisküvi Sanayi A.Ş. (“Ülker”)
•This presentation contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this presentation and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond Ülker’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators
•Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Ülker does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials
•This presentation merely serves the purpose of providing information. It neither represents an offer for sale nor for subscription of securities in any country, including Turkey. This presentation does not include an official offer of shares; an offering circular will not be published
•This presentation is not allowed to be reproduced, distributed or published without permission or agreement of Ülker
•The figures in this presentation are rounded to provide a better overview. The calculation of deviations is based on figures including fractions. Therefore rounding differences may occur
•Neither Ülker nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation
