Investor Presentation September Yaşar ar Holding A..

Transcription

1 Investor Presentation September 2010 Yaşar ar Holding A..

2 Yaşar Group Overview

3 Yaşar Group Mission Our mission is to add value to the lives of consumers by providing high quality products and services, with our trusted brands. Page 2

4 Yaşar Group at a Glance Incorporated in 1945 and wholly controlled by the Selçuk Yaşar Family One of Turkey s leading and most respected consumer products group in Turkey Headquarters in İzmir, 22 companies, 2 foundations, 19 facilities, 6,640 employees Consolidated Revenue of TRY 1.8 bn (US$ 1.2 bn) and EBITDA* of TRY 245 mn (US$ 163 mn) in FY09, up 58% from FY06 Core businesses include Food & Beverages and Coatings Well established and widely recognised leading brands: PINAR and DYO Six companies listed on the Istanbul Stock Exchange with a combined market cap of TRY 1.2 bn* (c.us$ 800 mn) Five companies ranking among Fortune 500 of Turkey Joined the UN Global Compact, world s largest corporate citizenship initiative, in 2007 The food and beverages division produces and sells dairy products (milk, yoghurt, cheese, butter), processed meat products (charcuterie, ready meals, red meat, turkey, fish), natural mineral water, compound feed and other F&B products The coatings division produces and sells a variety of coatings (decorative, wood, industrial, automotive, marine) and related products (i.e. printing inks) * EBITDA is operating profit before depreciation and amortisation expenses, and other non-cash/non-recurring income and expense items ** as at 31 August 2010 Page 3

5 Yaşar Group Divisions and Ownership Structure Overview Companies listed on ISE YA AR HOLDING A.. FOOD & BEVERAGES COATINGS TISSUE & OTHER PINAR ET (Meat) 61.87% DYO BOYA (Coatings) 74.17% DESA ENERJİ (Energy) 67.49% PINAR SÜT (Dairy) 61.18% BORNOVA MATBAA (Printing Inks) 94.95% YA AR DI TİCARET (Trade Business) 88.97% YBP (Sales & Distribution) 68.56% KEMIPEX (Coatings & P.Inks - Russia) 74.17% YADEX (Trade Business Germany) % ÇAMLI YEM (Agribusiness) 75.50% DYO BALKAN (Coatings - Romania) 73.43% VİKİNG KAĞIT (Tissue) 62.22% PINAR SU (Beverages) 63.94% DYO MATBAA (Coatings) 94.99% ÇE ME ALTIN YUNUS (Tourism) 61.84% PINAR ANADOLU (Dairy & Meat) 79.71% HDF FZCO (Trade Dubai) 99.45% PINAR FOODS (Dairy & Meat - Germany) 64.30% Based on Direct + Indirect Control (Group Companies subject to consolidation Page 4 in Yaşar Holding IFRS Financial Statements)

6 Stable Shareholders Supportive of the Experienced Management Team Selçuk Yaşar Family controls more than 95% of Yaşar Holding Ultimate control has not changed substantially since the Group s establishment in 1945 Yaşar is committed to the highest standards of corporate governance (In line with the OECD corporate governance principles of 1999) with clearly defined responsibilities of the BoD, the CEO and other executive positions Board of Directors Key Management Team Name Position Industry Experience Name Position Industry Experience İdil Yiğitbaşı Yılmaz Gökoğlu Mehmet Aktaş Hasan Girenes Chairperson Vice Chairperson Member Member 24 years 32 years 26 years 25 years Strategy, Marketing, F&B Fin. Affairs, Audit, Risk Management Strategy, Budget, Corporate Finance Production, Agriculture Mehmet Aktaş Hasan Girenes Hikmet Altan Levent Dağhan Ali Sözen CEO President, Agribusiness President, Finance President, Fin. Affairs & Budget Control President, F&B 26 years 25 years 25 years 24 years 20 years Neslihan Tonbul Member 27 years International Finance, Banking Ahmet Yiğitbaşı President, Coatings 23 years Mehmet Kahya Member 35 years Finance, Coatings, Automotive Servet Topaloğlu Member 25 years Sales & Marketing, Retail, F&B Page 5

7 Yaşar s Key Competitive Advantages Well diversified business and product portfolio Strong track record as an innovator and pioneer Strong presence in the high growth potential F&B and Coatings industries Leading brands with leading market positions: PINAR & DYO * Significant marketing and R&D expertise, strong brand portfolio Widespread distribution network Page 6 * supported by

8 Strong Track Record as an innovator in Turkey Mr Durmuş Yaşar is a merchant from Rhodes. He opened a shop to sell paint in Kemeraltı, Izmir : Durmuş Yaşar Paint and Ship Riggings Establishment With leadership and efforts of his son Mr Selçuk Yaşar, Mr Durmuş Yaşar established the first paint production plants in Bornova. This was at the same time the birth of a new brand: DYO ALTIN YUNUS, the first 1100 bed capacity hotel in Turkey, started to serve for Turkish tourism The first UHT milk and modern dairy company in Turkey was founded (biggest milk production facility in the Middle East): PINAR SÜT PINAR ET started producing processed meat products in the first integrated meat processing plant in Turkey The university started its first academic year: YA AR UNIVERSITY Debut Eurobond Transaction representing the first Euro denominated Corporate Eurobond issuance out of Turkey Printing Ink Plant relocation in Manisa Mr Durmuş Yaşar initiated the first paint production in Turkey. This at the same time generated the first paint brands of Turkey: Yaşarin & Hazırlanmış Boya Mr Selçuk Yaşar and Prime Minister of Turkey are at the opening ceremony of TURK TUBORG, the first privately-owned beer company in Turkey YA AR EDUCATION & CULTURE FOUNDATION, was founded to serve for social solidarity, respect for moral values and contribution to community First spring water non returnable bottling in Turkey: PINAR SU Yaşar Group started with its new fish farming business which is the first in Turkey SELÇUK YA AR PAINTING MUSEUM & ART GALLERY was opened as the first private sector art museum Innovative product launches continue: launches of first nanotechnologic paints, and first organic UHT milk in Turkey Page 7

9 Profitability Remained Resilient also during the Economic Downturn Consolidated revenue of TRY 1.8 bn (US$ 1.2 bn) and EBITDA of TRY 245 mn (US$ 163 mn) in Revenue decrease of 11% (2% excluding feed raw material trade business) from 2008 to 2009 is mainly due to: Global economic downturn % % -11% Decline in the commodity prices and in the volume of feed raw material trade business in other segment The highest revenue and EBITDA generator, Food & Beverages division, remained solid in 2009 with a 3.5% increase in revenue EBITDA increase of 21% (31% excluding feed raw material trade business) in 2009 mainly comes from increase in the profitability of Food & Beverages, Coatings and Tissue segments Effective cost and opex control OCI and lean six sigma projects audited 0 Increase in the share of higher margin products Net sales Consolidated EBITDA (RH scale) * UHT Milk, Page 8

10 Significant Increase in Net Sales in the first half of 2010 Consolidated revenue of TRY 998 mn (US$ 663 mn) and EBITDA of TRY 109 mn (US$ 72 mn) in 2010 H1, completely in line with the budgets 1, ,000 25% 998 Revenue increase of 25% from 2009H1 to 2010H1 is mainly due to: 801 Global economic recovery Increase in the revenue of the Group s core businesses; Food & Beverages division by 22% due to the volume and price increases in the dairy and meat products Coatings division by 36% due to the 200 demand increase and the ability of the Group to respond rapidly to this demand with its diversified portfolio H H1 100 Net sales Consolidated EBITDA (RH scale) Page 9

11 Divisional Breakdown Revenue by Divisions Consolidated revenue of US$ 1.2 bn (TRY 1.8 bn) and 2010 H % 73% 18% 16% 5% 4% 5% 6% EBITDA of US$ 163 mn (TRY 245 mn) in 2009 Core businesses of the Group (F&B and Coatings), composed c. 90% of total revenue and EBITDA in % 16% 5% 16% % 20% 5% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% F&B Coatings Tissue Other EBITDA by Divisions 2010 H1 72% 13% 3% 12% % 12% 7% 4% % 11% 1% 9% % 15% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Food & Beverages is the highest revenue and EBITDA generator Contribution of F&B segment is gradually increasing, representing 73% of Group revenues in 2009 from 61% in 2007 In 2009; Consolidated EBITDA growth of 21%, consolidated EBITDA margin of 13.9% Significant EBITDA growth in Coatings segment with an increase of 32.1% Remarkable EBITDA growth in F&B segment with an increase of 19.3% F&B Coatings Tissue Other Page 10

12 International Operations Domestic sales 90% Group Sales Breakdown Export & global sales 10% Export & Global Sales by Divisions Tissue 11% Revenue from international operations US$ 115 mn in % of the Group s consolidated sales, or US$ 1.1 bn (TRY 1.6 bn), represent sales in Turkey in 2009, and the remainder 10% represent sales relating to international operations Pınar, who launched the first Turkish labneh in the Gulf countries, is the market leader in labneh in Saudi Arabia and Kuwait, with 30% and 48% market shares in 2010 H1, respectively (source: Nielsen H1 retail data). Export by Regions Others 17% Coatings 27% F&B 62% Asia 12% Gulf Countries 42% Page 11 Europe 29%

13 Market Leader Brand in Food and Beverages Since its launch in 1975, leading position in dairy and meat markets Internationally recognised, especially in the Gulf countries Many sub-brands with high recognition (Kido, Beyaz, İlk Adım, Denge, Doyum, etc) #1 Turkish brand that comes to mind in milk and processed meat categories in 2009, unchanged position since the first year of the survey, 1995 (Nielsen-2010) #1 Food brand in top of mind awareness (IPSOS Brand Tracking-Dec 09) ¾ of all households in Turkey bought at least one Pınar product in 2009 (IPSOS Household Panel-Dec 09) Selected among Turkey s Superbrands (SuperbrandsInternational-2008) Best brand in dairy and meat sectors acc. to Turkey Customer Satisfaction Index (Kalder-2008) Most trustworthy brand (Synovate-2007) and Golden Brand in food category (TPI-2007) Rank Leader Based on the Same Category Comparison * Pınar Comp-1 Comp-2 (multinational) Comp-3 * Comparison based on the categories where PINAR operates in (UHT milk, spreadable cheese, charcuterie, water, etc) Source: Nielsen Page 12 PINAR 26% Others 32% UHT Milk Comp-1 15% Comp-5 5% Comp-1 15% Comp-2 PINAR 8% 58% Comp-3 6% Others 13% Source: Nielsen YTD Jun 10 Market Shares Comp-2 8% Comp-3 8% Comp-4 6% Frozen Ready Meals (meat based) PINAR 39% Spreadable Cheese PINAR 20% Others 46% Others 20% Comp-1 14% Comp-5 4% Charcuterie Comp-2 14% Comp-3 5% Comp-4 4% Comp-1 9% Comp-2 8% Comp-3 7% Comp-4 5% Comp-5 5%

14 Market Leader Brand in Coatings Launched in 1954 First local brand in the Turkish coatings industry Market leader in industrial coatings (34%) and printing inks (34%), among top 3 players in decorative (23%) and wood coatings (14%) Leader in brand awareness with 29% among deco-brands (Nielsen-2009) Many sub-brands with high recognition (Nanotex, Teknotex, Klimatherm, Dr.Dyo, etc) Dyo Nano coatings series granted patent in 2007 Decorative Coatings Industrial Coatings Printing Inks Others 27% DYO 23% Others 37% DYO 34% Comp-3 11% Others 18% DYO 34% Comp-2 24% Comp-1 26% Comp-2 5% Comp-1 24% Comp-2 13% Comp-1 24% Source: Company data YTD Jun 10 Page 13

15 Unmatched Marketing and R&D Expertise Well diversified brand and product portfolio, maximum committment to marketing, brand management and R&D Continuous marketing campaigns focused on innovative, value added and strategic categories New product launches every year supported with effective marketing campaigns Mediacat Felis Award 2009 and Chrystal Apple Award 2009/ 2010 granted to Pınar Çocuk interactive media campaign Silver Effie 2009 award in basic food category granted to Pınar Beyaz campaign Golden Effie 2007 award in basic food category granted to Pınar Show campaign New product launches in food and beverages New product launches in coatings Nano technology coatings range in 2005 (first in Turkey), approval of the patent application by European Patent Office in 2008 With fire-proof, very high scratch resistance, anti-bacterial, self cleaning and antifinger print properties Page 14

16 Excellent Production, Distribution and Logistics Capabilities Modern and efficient production processes employing the latest technology, including 13 production plants & facilities in food and beverages, 4 production plants in coatings Food and Beverages division: Turkey s biggest nationwide cold & frozen distribution chain, 155,000 sales points, c. 1,100 salespeople, 445 distributors (exclusive distributor of Ferrero in Turkey, sole meat supplier of McDonald s in Turkey) Coatings division: 13,000 sales points, 295 salespeople, 570 distributors Advanced use of technology in logistics management (satellite link technology in truck tracing, datalogger applications, double-decker trailers -unique in Turkish FMCG sector-) Lean six sigma and OCI projects to realise cost savings Page 15

17 Commitment to the Highest Standards of Corporate Governance BoD Sub-Committees Audit, Human Resource - Governance Committees Executive, Corporate Finance, Investment, Performance, Information Security Ali Sozen President, Food & Beverages Ahmet Yigitbasi President, Coatings Hasan Girenes President, Agribusiness YASAR HOLDING Board of Directors Mehmet Aktas Chief Executive Officer Hikmet Altan President, Finance Levent Daghan President, Fin. Affairs Bud Cont. Yilmaz Gokoglu Secretary General of the Board Sinan Gercek Vice President, Information Systems Kamil Deveci Coordinator, Audit Turgut Sarioglu Coordinator, Risk Mgmt Legal Consultancy Dilek Emil Coordinator, Corporate Relations Filiz Ergin Director, Human Resources Major changes in management, organizational structure and processes in 2000 With the consultancy of McKinsey In line with the OECD corporate governance principles of 1999 Also in line with the framework of corporate governance principles issued by the Capital Markets Board of Turkey (CMBT) Clearly defined responsibilities of the BoD, the CEO and other executive positions Clear definitions in the Yaşar Group Governance Handbook Yaşar Group Code of Ethics, putting forward standards of professional and ethical conduct Audit and Corporate Governance Committees Yaşar Holding Annual Report Corporate Governance Compliance Reports and Annual Reports for ISE listed Investor Relations Department subsidiaries Page 16

18 Long-standing Support for Education, Sports, Arts and Culture Contributions to Contemporary Education 6 Educational Institutions throughout Turkey, including: Primary School in Diyarbakır Multi-Program High School in Alaçatı Scholarships to over 5,000 students Contribution to congress, seminars and scientific studies Contributions to Sports Pınar KSK Basketball Team Dyo KSK Volleyball Contributions to Arts Dyo Painting Contest (since1967) Pınar Kido Painting Contest (since1981) Pınar Kido Children s Theatre (since1987) TOBAV Sponsorship Yaşar University 7 faculties 2 institutes 12 vocational high schools Over 4,200 students Over 450 academic and administrative personnel New campus located on 30,000 sqm in Bornova Foundations Selçuk Yaşar Spor ve Eğitim Vakfı Yaşar Eğitim ve Kültür Vakfı Contributions to Cultural Heritage Archaeological excavations: Nysa, Urartu, Eryhrai Page 17

19 Key Strategies & Objectives Market driven, sustainable, profitable growth in the core food and beverages and coatings businesses Continue to invest in brands and pursue effective marketing campaigns Position to benefit from growing Turkish consumer preferences for high quality packaged food and beverage products and technologically advanced coatings Emphasise and leverage on product innovation capabilities and focus on quality Maintain and enhance operational excellence Strengthen position in international markets Maintain financial flexibility Continue to implement sustainable and socially responsible business practices Page 18

20 Thank You

21 Disclaimer This presentation does not constitute an offer or invitation to purchase or subscription for any securities or other similar instruments 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-looking statements that reflect the company management s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they maybe affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Yaşar Holding nor any of its affiliates, advisors, representatives, directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it. Page 20