September 2014
Transkript
September 2014
Management Presentation September 2014 1 1. Ülker: Who we are ? 2 2. Key Investment Highlights 7 3. Financials 23 4. Appendix 28 We are the leading name in Turkish confectionery... • 70 years of experience in Turkish confectionery • Leader in biscuit and chocolate category with 46% market share in each; #2 in cake category with 33% market share – 9M14 • • • Largest production capacity in the domestic market with spread out facilities Consolidated annual net sales of TL 2.75 bn in 2013 A gateway to the Middle East, Northern Africa and EU, with exports to those regions accounting for c.20% of revenues 2 Production Facilities Istanbul Gebze Ankara Gebze Topkapı, Istanbul Biscuit & cracker Chocolate Karaman Established in 1991 Established in 1997 Capacity: 85.5k tons/year Capacity: 194k tons/year 41k sqm closed area 68k sqm closed area Ankara Biscuit Established in 1969 Capacity: 126k tons/year Karaman Silivri, Istanbul Key figures – TL mn Mcap as of 09/30/2014 Revenues (LTM) 9M 2014 2,893 EBITDA (LTM) Established in 1992 Established in 1986 Capacity: 123k tons/year Established in 1995 Capacity: 45k tons/year Capacity: 30k tons/year 27k sqm closed area Non-Ülker branded products The largest biscuit manufacturing facility in the Middle East 102k sqm closed area 75% owned by Ülker Shareholding Structure (As of 30.09.2014) 11.0% k tons TL mn † % share † Biscuits 192 805 38% Chocolate 113 1,036 49% Cake 50 257 12% Sales 9M14 Cake 12k sqm closed area 318 EBITDA margin % (LTM) 86k sqm closed area Biscuit, cake, cracker & chocolate Chocolate, chocolate covered biscuit 5,164 Hadımkoy, Istanbul † Excludes other non-confectionary sales of TL 25 mn Free Float 43,0% Yıldız Holding & Subsidiaries & Family Members 57,0% † † Yıldız Holding is Turkey’s leading food and beverages group with annual gross sales of TL15.7 bn as of 2013 ... and the “Best Recognized” FMCG brand... Best Recognized Brands Consistently ranks as one of the best recognized brands in Turkey #1 3 Brand One Feels Close To † #2 The “Brand Award” The Best in the Sweet and Salty Category #3 (International Brands Conference, 2011) (Silver Effie Award, Ülker Rondo, 2011) #4 Most Recognized Company (AC Nielsen, 2nd place, 2010) #5 • Ülker has always been the “most recognized” brand and “closest to consumers” †† • Strength of the brand is proven by national and international awards Source: ACNielsen 2011 Long lasting relationships with end users enhance brand perception • Highly-popular sub-brands are in the market for 2-3 decades † Arçelik is a household durable goods brand • Ülker brand essence and campaign theme: “Happy moments with Ülker” ...with dominant positions in growing markets Market leader in main categories Growth in Biscuit (Volume) BISCUITS CHOCOLATES CAKES 290K Tons 170K Tons 79K Tons Market Share (9M14) (Volume based) 46% 46% 33% Market Position #1 #1 #2 Market Size † (9M14 LTM) # 1 in Petit Beurre Segment Biscuit # 1 in Chocolate Covered Sandwich Segment # 1 in Special Biscuits Segment # 1 in Creamy Biscuits Segment Chocolate # 1 in Sandwich Biscuits Segment Top 3 in Chocolate Covered Segment #1 in Spread Chocolate Segment Cake #1 in Solid Chocolate Segment † Retail market #1 in Cake Segment Growth in Chocolate (Volume) * 4 Milestones of our success Revenues Mcap† 1944 Established as a small scale family run bakery 1996 Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange 2003 Ülker Gıda merged under its own title with Anadolu Gıda 2006 Appointment of Murat Ülker as Chairman of Ülker and Yıldız Holding: new generation & new vision 2007 Ülker Gıda changed its name to Ülker Bisküvi: Emphasis on core business 2008 Acquisition of 25% stake in the premium chocolatier brand Godiva US$ mn 2009 2010 2011 2012 2013 *1,340 2,266 2014 †Mcap as of year-end Ltm Revenue and September 30th 2014 closing Mcap Ülker Bisküvi investment: US$214 mn Rapid growth led to complex corporate structure – 4 sales companies, 4 production companies and minority stakes in 7 non-core assets 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 2013 Cancellation of privileged shares and founder shares New dividend policy – minimum 70% of distributable income Free Float reached 40% after Yıldız Holding’s block sale 2014: Ülker Biskuvi acquired 30% minority stake in Biskot Divested stakes in Istanbul Gıda, Birleşik Dış Ticaret and Rekor 5 6 1. Ülker: Who we are ? 2 2. Key Investment Highlights 7 3. Financials 23 4. Appendix 28 Key investment highlights 7 Top-line growth driven by... 1 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 Further margin improvement to be realized on the back of... 2 Simplified and efficient distribution network Effective OPEX management Increasing share of higher margin chocolate sales High barriers to entry 3 is the best recognized FMCG brand in Turkey 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 Targeting to become a regional player in markets with high growth potential 4 Geographical expansion already on the way – Saudi Arabia and Egypt Seeking further international opportunities in high growth markets Godiva: Hidden value 5 US$750 mn revenue business - Global premium chocolate brand with significant brand equity worldwide Investing in store expansion, especially in the Middle East, China, Japan, Korea and Indonesia Yıldız Holding: Strong & supportive parent 6 Biggest food and beverage group with TL 15.7bn turnover with 58 production facilities and 300 brands in 40 categories Strategic shareholdings in the leading food-retail discounters (Şok and Dia†) and cash & carry wholesaler (Bizim) in Turkey Ülker - Benefiting from Yıldız Holding’s unique distribution network, procurement power and experience in international markets 1 Favorable demographics and young target population 8 Sizeable market with a growing population Turkey has one of the youngest and fastest growing populations Attractive target consumer group CAGR 2007- 2012 Population 1.7% 29 Malaysia Youngest population in Europe 17% 65+ Turkey 1.4% 76 Indonesia 1.3% 247 7% 12% 55-64 8% 59% S.Af rica 1.2% 14% 45-54 Brazil UK France 0.9% 0.7% 0.5% 199 63 15% 35-44 Turkey median 29 yrs 14% Netherlands 0.5% 17 Czech Rep. 0.3% 11 15-24 0-14 12% 41% 17% 16% 0.2% 144 Greece 0.2% 11 82 Total population in millions EU-27 Source: Turkstat, Eurostat 59% 25% 39 Russia Source: World Bank, Turkstat 17% 61 0.5% Germany -0.1% 14% 66 Italy 0.2% 11% European median 41 yrs 25-34 Poland 41% 51 Turkey 1 Spending increases in tandem with GDP per capita Biscuits consumption vs. GDP per capita Kg per capita Turkey’s consumption of biscuits and chocolate stands at 3.5 kg and 1.9 kg per capita, respectively Increasing GDP per capita expected to fuel biscuit and chocolate consumption Chocolate consumption vs. GDP per capita Kg per capita 12.0 UK 12.0 9.0 Netherlands 10.0 R2=0.60 8.0 USA Brazil 5.0 6.0 4.0 France Russia Turkey '18 Turkey '12 Croatia 4.0 Saudi Arabia Hungary Turkey '07 Poland 2.0 Egypt Malaysia S.Af rica Indonesia 0.0 0 10,000 20,000 30,000 Germany 8.0 6.0 Italy 6.0 UK Germany UK 8.0 10.0 7.0 Germany US$ per capita 40,000 50,000 60,000 Russia Poland Russia Turkey '18 Poland Croatia Turkey '18 Hungary 4.0 3.0 Italy Croatia Italy Hungary Turkey '12 '12 2.0 Turkey Brazil Saudi Arabia 2.0 Turkey '07 Brasil Saudi Arabia 1.0Turkey '07 S.Af rica S.Af rica Indonesia Indonesia Malaysia Egypt Malaysia 0.0 0 10,000 10,000 20,000 20,000 30,000 30,000 40,000 40,000 Source: Eurostat 2 R =0.54 Netherlands USA France Netherlands France USA US$ per capita 50,000 50,000 Source: Eurostat Per capita consumption of biscuits and chocolate in Turkey grew at a CAGR of 2.3% and 7.0%, respectively, between 2008 and 2013 -still lower than peers US$20,000† GDP per capita target for Turkey by 2018 implies c.5% CAGR in biscuits consumption... ...and c.10% CAGR in chocolate consumption † IMF estimate 60,000 60,000 9 1 Regaining market share with portfolio management... Streamlined product portfolio and increased brand investment for improved sales # of SKU and sales 570 10,0 500 400 300 4,8 200 100 330 7,1 330 330 6,0 8,3 8,8 4,0 2,7 2,0 0 Biscuit 8,0 370 II 0,0 2010 2011 # of SKU 2012 2013 9M14(LTM) Sales per SKU (TL mn) • Portfolio restructuring started in late 2011 - Keeping star SKUs, discontinuing unprofitable ones – Reduction from 502 SKUs in 2010 to 330 SKUs in 2013 - Increased brand investments through multichannel advertising and social media / investment on star SKUs - Distribution efficiencies / declining sales returns: 2.8% in 2011 vs. 0.5% in 2013 (0.5% in 9M14 vs 1.0% in 9M13) - Increasing sales per SKUs • New launches to grasp market share: - Indulgence biscuits: Dore (launched in June 2013) - Diet biscuits (launched in September 2013) - New chocolate- Laviva- (launched in September 2013) - A new cake line ‘’O La La’’ (launched in March 2014) - New Wafer –Dido Black (launched in August 2014) - New chocolate- Bi Rüya (launched in September 2014) >50% Chocolate 600 Cake Results of portfolio restructuring reflected as increased sales performance Market Share Development, Volume Based† Source: ACNielsen, Euromonitor † Retail market, Market shares may not add up to 100% due to rounding II II 10 1 ... and unlocking distribution power ... 11 Accessibility is a key success factor Traditional retail dominates the biscuits and chocolate market Ülker benefits from Yıldız Holding’s wide distribution network throughout Turkey: • Horizon in traditional retail 665 km Marmara 30% sales points 35% of total sales Black Sea 11% sales points 10% of total sales Central Anatolia 15% sales points 20% of total sales Aegean 17% sales points 10% of total sales Mediterranean 15% sales points 10% of total sales • Pasifik in organized retail 90% Eastern Anatolia 6% sales points 8% of total sales 200k S. Eastern Anatolia 6% sales points 7% of total sales US$ 100 1,565 km Ülker domestic sales by channel Organized retail 35% Traditional retail 65% c.90% nationwide coverage widest after beverage & tobacco companies Reaching ~200k sales points throughout Turkey • 175k in traditional channel through Horizon • ~20k bullets in organized channel through Pasifik Typical distribution network in a similar FMCG network has a replacement value of c. US$100mn and requires 1,300 headcount 1 ... through newly established exclusive distribution 12 Horizon to consolidate traditional channel. Distributors sell solely Yıldız Holding brands • Biscuits • Chocolates • 3 categories 65 Brands 330 SKUs 40 categories 300 Brands • Baby products • Margarine and liquid oils • Sugar candy & gum • • Personal care Breakfast items • Drinks • 60% Ülker products – c.60% in terms of value and c.35% in terms of volume in Horizon portfolio 30% Delivering c. 30% shelf space of a small grocery - 20% with only Ülker products – excluding tobacco and alcohol Cakes Light and diabetic products • Culinary Brands Lower distribution cost Increased selling power with enhanced product portfolio Eliminating internal competition between distributors 2 Simplified route to market improving margins 13 Traditional channel - Efficiency gains from restructuring Before Simplified and consolidated route to market creates cost efficiencies paving the way for further margin improvement Previous Structure: Current Other Food & Beverage Products Distributors Completed New Structure: Other Food & Beverage Products Domestic Traditional Channel Biscuits Atlantik (Ülker brand) Chocolates Atlas (Ülker brand) Cakes Atlas Biscuits Distributors Chocolates Horizon † (New Sales Company) Distributors Cakes • Multi-channel route to traditional market • Limited to single category sales • 235 distributors • # of points visited: 140k • % of invoice issued by visit: 75%-80% Decreased logistics expense Domestic Traditional Channel • 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% More efficient route to sales points Better and faster execution capability Enhanced distribution profit Stronger distributors with higher nominal gains † Owned by Yıldız Holding, took over all traditional sales activities of Ülker as well as Yıldız Holding’s other companies’ sales activities 2 Growing chocolate segment favoring margins Increasing share of higher margin chocolate segment Chocolate sales and total share in revenue† Stronger growth in chocolate sales 15% Growth between 2013 and 2012 7% Growth between 9M14 and 9M13 Gross profit margin % - 2013†† 25% 48,6% 23% 22% 49,2% 20% Chocolate share in total revenue 2012 Chocolate share in total revenue 2013 Biscuit Chocolate Cake Overall † Chocolate business consolidated in 4Q2011 following the acquisition of Ülker Çikolota † † after depreciation Overall margin benefits from high growth chocolate category 14 2 Measures reflected in margins, still room to go… Components of EBITDA margin improvement 15 2 Long Term Guidance 16 EBITDA growth to surpass sales growth Sales 2013-2016 (TL mn) 1.000 4.500 Int. Growth 2016E Sales 83 399 Chocolate volume up 6 to 8% annually Biscuits and cakes volume up 4 to 6% annually Average price to be increased by ± 2% vis-avis inflation 271 2.748 CAGR 18% 2013 Sales Biscuits Chocolates Cakes By 2016, Ülker is expected to surpass TL4.5bn net sales (including inorganic growth) with an EBITDA margin of above 15% EBITDA margin 2013-2016 1.8% 0.6% 15.0% 1.0% 11.5% Capex: 2.53.0% of net sales Reductionin Category Category BetterCost cost & & 20132013 EBITDA Reduction Mix Better in sales mix effect EBITDA OPEX margin sales Effect/New OPEX discounts / New margin % management discounts Launches management launches 2016 2016E EBITDA EBITDA margin % margin Distribute minimum 70% of distributable income 3 High barriers to entry 17 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 “Brand Award” (International Brands Conference, 2011) Most Recognized Company (AC Nielsen, 2nd place, 2010) The Best in the Sweet and Salty Category (Silver Effie Award, Ülker Rondo, 2011) High barriers to entry • 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 Exclusive distribution Largest & spreadout production capacity in the domestic market 4 Platform for further growth 18 Expansion started with Saudi Arabia and Egypt, focus on underpenetrated markets Plans to expand business in underpenetrated markets with high growth potential Target regions: Middle East, North Africa, and Eastern Europe Saudi Arabia • Egypt Population of 30.2 mn growing at CAGR of 1.8% between 2007-2013 • Population of 87 mn growing at CAGR of 1.7% between 2007-2013 • US$ 924bn GDP growing at c.7% • US$ 568bn GDP growing at c.3% • c.US$ 1.9 bn confectionary market • c.US$ 1.4 bn confectionary market • c.7% market share in biscuit market • • c. 2% market share in chocolate market Less than 1% market share in biscuit market (US$ mn) Market size Growth† Per capita consumption†† (US$ mn) Market size Growth† Per capita consumption†† Chocolate 993 9.0% 1.9 Chocolate 408 5.3% 0.4 Biscuits 717 5.6% 3.7 Biscuits 957 9.4% 2.9 Source: Euromonitor Source: Euromonitor Ülker Egypt (sales) Hi Food (manufacturing) FMC (manufacturing) Established in 2000 Established in 2007 Established in 2010 42% Yıldız Holding, 58% local partner 46% Yıldız Holding, 54% local partner 100% Yıldız Holding Biscuit production Manages 12 distributors and reaches 20,000 sales points Biscuit, chocolate and cake production Capacity: 43k tons c. 100 trucks reaching c. 10,000 sales points (US$ mn) 2013 2014E Net sales 91 100 EBITDA margin 6% 9% † 2008-20113 CAGR-Volume †† Kg per capita - 2013 Biscuit sales Capacity: 27.5k tons Potential expansion areas (US$ mn) 2013 2014E Net sales 36 45 18% 12% EBITDA margin 5 Godiva – Hidden value Acquired by Yıldız Holding in 2008 Ülker stake in Godiva - 19% • Leading premium chocolate producer with significant brand equity worldwide • Entry into China, S.Korea, Indonesia, S. Arabia and Turkey since the acquisition • 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$120mn EBITDA in 2016 19 Geographical presence of Godiva as of 2013 year end 195 stores in the US &Canada 35 stores in Europe 209 stores in Asia • Owns and operates 439 retail boutiques in 84 countries as of 2013 year end • Available via over 10,000 specialty retailers Key figures 2008 2013 2014E # of stores 432 439 463 Revenues US$ 490mn US$ 704mn US$ 769mn - US$ 49mn US$ 56mn EBITDA Geographical store evolution Godiva store in Harrods, London Year 2008 2013 2014YE Godiva store in Denver, the US U.S. 262 195 199 Japan 99 128 135 China 46 54 Pac Rim Belgium 32 8 35 5 38 5 Others 21 30 32 6 Yıldız Holding: Strong & supportive parent Bizim and Şok -7% of Ülker’s net sales as of 1H14 Dia - new account entered after the acquisition in July 2013 • Operates in 6 sectors with TL15.7 bn gross sales in 2013 • The largest branded food group in CEEMEA • 58 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 Best recognized food brand #1 in biscuits & chocolates Diversified product portfolio #2 in dairy products holding strong market #1 in edible oils and fats shares #1 in overall baby food #1 in culinary products Retail Food & Beverages Experience in managing international operations Real Estate JVs with leading international players Sole and first brand sought out for co-branding Personal Care Premium segment chocolate producer acquired in 2008 Leading international baked snacks producer acquired in 2014 Packaging Finance † 2012 revenues 20 Turkey's first food company to establish a nationwide distribution network In excess of 200k sales points nationwide c.90% coverage, second best after Coca-Cola Icecek Beyond 2016 21 Long-term ambitions Growth Productivity Brand investments Investor level • 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 • 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 • Sustain best corporate governance practices 22 1. Ülker: Who we are ? 2 2. Key Investment Highlights 7 3. Financials 23 4. Appendix 28 Increasing sales 23 Net sales by category Sales volume by category Tonnes TL mn 354.670 1,978 349.470 110.095 114.686 Consolidated sales volume was down by 4.0% in 3Q14 and was up by 1.5% in 9M14, with decline in 3Q mainly attributable to: • 2,123 673 652 Consolidated sales revenue up by 3.1% in 3Q14 & 7.3% in 9M14, the growth in 3Q was primarily as a result of: • Price increase & downsizings in Chocolate and Biscuits • Lower exports limited the growth • Lack of revenue from divested sales companies Low exports volume • Like for like basis, revenue growth of 8.3% (including sales companies) † Excluding non-confectionery sales volume †† Following acquisition of Ülker Çikolata in 2011, chocolate operations have been consolidated in figures from 4Q2011 onwards Increasing margins 24 EBITDA and margin % *** Gross profit and margin % TL mn TL mn 22.2% 18.7% 23.0% 20.8% 454,8 144,6 125,5 3Q13 3Q14 9M13 11.5% 10.8% 11.8% 11.1% 232,9 235,4 9M13 9M14 441,4 9M14 75,1 72,9 3Q13 3Q14 ***Excluding Ease in gross profit in 3Q14 is due to: • High input costs • Divesture of sales companies other income/(expense) from operations EBITDA was down to TL 73 mn in 3Q14 as a result of: • High input costs • Tight opex management • Price increases limited the margin loss Working capital and net debt 25 Net debt Average working capital days • • Average WC days 2011 2012 2013 3Q13 3Q14 Trade receivables 87 84 76 80 77 Inventory 38 34 33 34 36 Trade payables 79 81 77 73 68 WC - days 46 37 32 41 45 Net working capital was TL 413 mn as of 3Q14 and TL 325 mn at the end of 2013 Working capital requirement over sales ratio was 14.3% in 3Q14 (LTM) Net debt - TL mn 2012 2013 3Q14 Financial debt 1.501 1.260 835 Short term financial debt 614 1.250 835 Long term financial debt 887 10 - 131 3 0 1.268 1.164 343 102 92 492 Non-trade receivables from related parties Cash and cash equivalents Net debt • Net debt as of 3Q14: TL 492 mn • Net debt to EBITDA (LTM) is 1.55x • Financial debt - US$ denominated due to company strategy - Maturity breakdown as of 9M14: - Short term 100% – - Long term Cash & cash equivalents breakdown based on currency - TL: 6 mn • FX short position of TL 447 mn - US$: 335 mn† - Euro: 2 mn† † Amounts expressed in Turkish Lira “TRY” Net debt 26 Net debt Development † Amounts expressed in Turkish Lira “TRY” 27 1. Ülker: Who we are ? 2 2. Key Investment Highlights 7 3. Financials 23 4. Appendix 28 Financials 28 Consolidated income statement Income statements (TL mn) 2012 2013 Growth 13-12 9M13 9M14 Growth 9M14-9M13 2.343 (1.838) 2.748 (2.115) 17% 15% 1.978 (1.524) 2.123 (1.682) 7% 10% 505 21,6% 633 23,0% 25% 454 23,0% 441 20,8% (3%) OPEX Marketing, Sales and Distribution Expenses General Administration Expenses Research Expense (332) (227) (96) (9) (370) (263) (94) (13) 11% 16% (2%) 51% (178) (177) (73) (10) (180) (170) (67) (10) (5%) (4%) (8%) 4% EBIT EBIT Margin 173 7,4% 263 9,6% 52% 195 9,8% 194 9,1% - Depreciation (48) (52) 8% (39) (41) 7% 221 9,4% 315 11,5% 43% 233 11,8% 235 11,1% 1% 73 256 251% 145 88 (3) (240) n.m. (148) (95) 244 279 15% 191 187 Tax Charge From Continued Operations (48) (52) 8% (39) (20) Net Profit (Equity holders of the parent) 167 189 13% 123 155 Sales Revenue Cost of Sales Gross Profit Gross Profit Margin % EBITDA EBITDA Margin Other Operating Income / Expense* & Inc/Exp From Inv. Activities Finance Incomes / Expenses* Profit Before Taxation 27% Financials (cont’d) 29 Consolidated balance sheet Balance sheet (TL mn) 2013 3Q14 2.129 1.164 1 1.413 343 1 Trade receivables 649 645 - Trade Receivables from related Parties 447 606 - Other Trade Receivables Other receivables - Non-trade Receivables - Other short-term Receivables Inventories Other current assets 202 20 3 17 198 96 39 1 0 0 256 168 Non-Current Assets Financial investments Investment properties Tangible assets Intangible assets Deferred tax assets Other non-current assets 1.033 465 10 533 1 4 21 1.051 467 10 546 1 9 18 Total Assets 3.162 2.463 Current Assets Cash and cash equivalents Financial investments Balance sheet (TL mn) 2013 3Q14 1.827 1.250 508 273 235 1 11 23 18 16 1.305 835 413 212 201 1 13 17 18 7 67 10 23 34 0 54 0 26 28 0 Shareholders' Equity Share capital Inflation adjustments to share capital Valuation funds Restricted reserves Actuarial gain / loss Retained earnings Net income for the year Non-controlling interest 1.268 342 108 260 126 (1) 106 189 138 1.104 342 108 262 150 0 2 155 85 Total Liabilities and S.E. 3.162 2.463 Current Liabilities Financial liabilities Derivative financial liabilities Trades payables - Trade payables to related parties - Other trade payables Other payables Corporate tax payable Debt provisions Employee benefits Other current liabilities Non-Current Liabilities Financial liabilities Employee benefits Deferred tax liabilities Other non-current liabilities Cost Structure 30 Components of Cost of Goods Sold (Consolidated) Cacao 15% Other 35% • • Raw Material 65% Wheat 20% Raw Material Breakdown Palm Oil 15% Palm Oil and Cacao are imported in USD terms Wheat and Sugar is procured from domestic sources in TL terms Sugar 15% Price Performance of Cocoa & Palm Oil 31 Price of 2,822 on 21.10.2014 Cocoa Palm Oil Price of 2,235 on 21.10.2014 Source: Bloomberg, in USD 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 32