History Pınar Madran water packed in demijohns was introduced 2003

Transcription

1 PINAR SU SANAYİ VE TİCARET A.Ş

2 History 1984 Potable water (for the first time) in nonrecycled package... Pınar Şaşal Pınar Şaşal was exported to Germany for the first time Pınar Şaşal in PVC packages The first Madran water in plastic bottle. Turkish Standards Institution was awarded Golden Package with the plastic bottle of Madran Memba Suyu Annual production reached 100,000 tones. New resources were started to be searched TSE ISO Environmental Management System Certificate 2002 Pınar Madran water packed in demijohns was introduced 2003 Pınar, Yaşam Pınarım and Pınar Denge waters were launched in the market Marmara Water Inc. Was established upon acquisition of two springs in Adapazarı and Isparta receives natural mineral water licenses for all three of its factories Merged with Birmaş Tüketim Malları Ticaret A.Ş plant was established in İzmir, Menderes to produce first bottled water in Turkey 1989 %90 of total water exports of Turkey is realised by Pınar Su ISO 9002 Quality Management System Certificate 2003 Second factory of was established in Nazilli, Aydın and Pınar Madran water, one of the top-notch waters in the world in terms of taste, met with the customers. TS ISO Certificate TS HACCP Food Safety System Certificate site was established Order Hotline was established. Page 1

3 Market Overview Bottled water sector in Turkey reached 9 billion L and 3,1 billion TL market value in Within the same year, bottled water consumption per capita is 126 L. (37 L PET; 89 L HOD) (2008: 114 L) Tonnes Bottled water consumption per capita is 142 L in France, 176 L in Italy and 143 L in Spain Source: Nielsen Packaged non-recyclable (PET) 71% of the whole consumption is 19 L HOD segment, the remaining 29% is PET bottled water segment. In 2009, volume growth is 2% in HOD and 8% in PET segments. Average capacity usage rate of the industry is 40% Source: SUDER Page 2

4 Market Overview Growth Potential Consumption of the carbonated beverages is declining due to consumers increasing consciousness and trend towards a healthy life Tap water recognized as non-drinkable in big cities Continuously increasing consumption of bottled, branded water Turkey has an advantage in terms of spring water sources. Portion of natural water sources in use is only 30% GDP vs. Turkish Bottled Water Market Growth Rate 20% 15% 14% 13% 10% 9% 8% 7% 7% 5% 5% 5% 3% 3% 0% 1% -5% -5% -10% GDP Growth Turkish Bottled Water Market Sales Volume Growth The Bottled Water Sector in Turkey * * Production (billion lt) 5,7 6,2 7 7,8 8,1 8,7 9 9,5 Market Value (billion tl) 0,6 0,8 1 1,2 2,1 2,1 3 3,2 Per Capita Consumption (lt) * SUDER estimates are given for Page 3

5 Key Players in Turkish Bottled Water Market & Competitors Increasing investments of worldwide players like Nestle, Danone, Coca Cola due to high potential in the market (M&A, spring source investments etc.) Trend in the industry is to increase spring sources to optimize logistic costs Small sized entrepreneurs are causing fragmented market structure Other Competitors 57% Natural Mineral Water - PET Competitor 1 13% Competitor 2 8% Competitor 3 8% PINAR 7% Competitor 4 Competitor 5 4% 3% Competitor 1 Competitor 2 Competitor 3 PINAR Competitor 4 Competitor 5 Other Competitors Source: Retail Value Market Shares, Nielsen, 2009 (not inc. BIM) Page 4

6 Product Range Under the brand name of Pınar Yaşam Pınarım MADRAN; production of PET water in 0,33 lt ve 0,5 lt, 0,51 lt, NRB glass bottle, 3 lt,3,25 lt, 5 lt, 8 lt,ve 10 lt PET and policarbon demijohn water in 19 is realized. Under the brand name of Pınar Yaşam Pınarım ÇAMLICA; 0.33 lt, 0.5 lt, 1.5 lt, 5 lt PET and policarbon demijohn water in 19 lt is realized. Under the brand name of Pınar Yaşam Pınarım TOROS; 0.5 lt, 1.5 lt, 5 lt PET and policarbon demijohn water in 19 lt is realized. Page 5

7 Supply Brings unique gift of nature to consumers in its purest form Spring Sources; PET Preform Supply; High quality natural spring sources in 3 different regions Diversified sources in Aydın, Isparta, Sakarya provides benefits in distribution and transportation costs Long term cooperation with local multinational producers sustain quality assurance Sustainable improvement in packaging costs (short-neck, light-weight bottle) Long term agreements with the State Page 6

8 Production Quality & Hygiene in each step of production Turkey s first bottled natural spring water Modern production facilities and sources in 3 territories: Çamlıca (2003) / Adapazarı with 400,000 tonnes capacity Madran (1996) / Aydın with 490,000 tonnes capacity Toros (2003) / Isparta with 210,000 tonnes capacity Beverages segment product portfolio is composed of HOD and PET bottled water. Aydın (Madran) (9 production lines) Adapazarı (Çamlıca) (5 production lines) Starting 2010, Lean Six Sigma projects are initiated Isparta (Toros) (4 production lines) Page 7

9 Sales & Distribution Expected advantages of merger & Birmaş Seasonality To create a more effective model in sales and distribution network, 100% 90% 80% 20% 20% 20% To increase competitive strength in the national market, 70% 60% 50% 31% 31% 30% Tax optimization, 40% 30% 20% 10% 28% 27% 28% 21% 21% 22% 0% Cost savings, Quarter -1 Quarter -2 Quarter -3 Quarter -4 Sales and distribution are realized through total 420 dealers consist of 321 PC and 99 HOD. Breakdown of Sales Volume (PET/PC) PET 48% PC 52% PET PC Page 8

10 Export exports to total of 20 countries. exports reached to $ 2,5 Mn in Germany forms 47% of the total exports. Share of exports in total net sales is around 4%. Growth is expected in exports parallel to domestic market 0,39% 1,57% 7,84% 15,69% 47,06% 7,84% 19,61% GERMANY U.K. DENMARK CYPRUS U.A.E. U.S.A. OTHERS Page 9

11 Business Highlights High quality, hygienic and EU standard production uses Clean Room technology which is regarded as the most advanced technology available in the world s bottled water industry. The first Turkish beverage that has registered its quality by having been awarded with a proficiency certificate by the American National Sanitation Foundation (NSF) Brand Recognition Corporate Image and Reputation All of s activities are performed under the ISO 9000 Quality Management System, ISO Food Safety Management System and ISO Environmental Management System Consumer Loyalty Widespread and Effective Distribution Network Strong brand equity According to the Brands survey conducted every year by the independent research firm of Nielsen, Pınar ranked fifth among all the brands (both national and international) in all sectors in Turkey that consumers felt the closest to in Robust growth prospects HACCP - Food Security Management System Strong Production Technical Substructure - know-how In 2010, Turkish bottled water market is expected to grow 6% and reach to 9,5 billion L. Page 10

12 Stock Performance As of August 23, 2010 ; Price at August 23, 2010 > 5,05 TL Ownership Structure Market Capitalization > 64,1 mio TL Paid-in Capital > 12,789,345 TL Total outstanding shares in free float > 32% 32% PINSU Share Performance Relative to ISE-General 1% 9% 58% 160 5, Yaşar Holding Pınar Süt Yaşar Birleşik Pazarlama Free Float , December-08 February-09 March-09 April-09 June-09 July-09 August-09 October-09 November-09 ISE-General (Right Axis) December-09 February-10 March-10 April-10 Page 11 PINSU (Right Axis) June-10 July-10

13 Participations Yaşar Birleşik Pazarlama Dağıtım Turizm ve Ticaret A.Ş. Ownership % 4.79 Carrying Value 16.3 M TL Sales and distribution of products of Pınar Süt, Pınar Et & other food products Desa Enerji Elektrik Üretimi Otoprodüktör Grubu A.Ş. Ownership % 6.07 Carrying Value 0.7 M TL Energy & Electric generation in İzmir Yaşar Dış Ticaret A.Ş. Ownership % 1.76 Carrying Value 0.3 M TL Foreign trade Viking Kağıt ve Selüloz A.Ş. Ownership % 1,69 Carrying Value 1.15 M TL Production, sales & distribution of cleaning papers Page 12

14 FINANCAL RESULTS

15 Income Statements (Million TL) 30 June June 2009 % Variance Operating Revenue 33,3 39,2 (15,2) Cost of Sales (17,3) (20,7) (16,4) Gross Profit 15,9 18,5 (13,8) Selling and Marketing Expenses (10,4) (10,6) (2,5) General and Administrative Expenses (4,3) (4,5) (3,6) EBIT 1,3 3,4 (62,7) Other Income 1,3 1,0 37,6 Other Expenses (0,2) (0,6) (74,1) Financial Income/(Expense)-(Net) 1,1 0,7 70,4 INCOME BEFORE TAX 3,6 4,4 (19,2) Taxes on Income (0,6) (0,8) (20,0) NET PROFIT FOR THE YEAR 3,0 3,7 (19,0) EBITDA 3,6 5,8 (37,2) Total Assets 100,3 97,2 3,1 Shareholders' Equity 68,6 67,5 1,6 As of , merged with Birmaş Tüketim Malları Ticaret A.Ş. Financial statements of previous periods were restated for comparative purposes Page 14

16 Profit Margins GROSS PROFIT MARGIN (%) EBIT MARGIN * (%) First Half 2010 First Half First Half 2010 First Half EBITDA MARGIN ** (%) First Half 2010 First Half NET PROFIT MARGIN (%) First Half 2010 First Half As of , merged with Birmaş Tüketim Malları Ticaret A.Ş. Financial statements of previous periods were restated for comparative purposes * Does not include other income and expenses ** Earnings before interest, tax, depreciation and amortization Page 15

17 Quarterly Results 22 NET SALES (Million TL) Especially in crisis period, local and small sized producers which grew in this period caused aggressive price competition in the industry. -%21 18 %12 16 In this aggressive price competition environment, there was an acceptable decline in sales in order to balance profitability. In 2010, reorganization of dealership system caused a temporary decline in sales performance II.Q 2010 II.Q 2010 I.Q EBITDA (Million TL) Profitability decreased due to decreasing sales volume and increasing costs and marketing expenses compared 2,8 to ,4 Profitability increased in second quarter of 2010 compared to first quarter of 2010, because of -%14 %104 1,2 increasing sales volume. As of , merged with Birmaş Tüketim Malları Ticaret A.Ş. Financial statements of previous periods were restated for comparative purposes 2009 II.Q 2010 II.Q 2010 I.Q Page 16

18 Ratios, Net Financial Debt & Net Working Capital 30 June June 2009 Current Ratio 1,2 1,5 Leverage Ratio 0,3 0,2 ST Fin'al Debt/Total Fin'al Debt 0,5 0,4 Net Fin'al Debt/EBITDA 0,9 0,5 Total Fin'al Debt/Equity 0,1 0,1 (Million TL) 30 June June Continuous focus on risk management and efficiency measures Effective working capital management Strong balance sheet and liquidity management Cash & Cash Equivalents 1,1 0,7 S/T Bank Borrowings 1,9 1,9 (Milyon TL) First Half 2010 First Half L/T Bank Borrowings 2,2 3,4-15 Net Financial Debt 3,1 4, Trade Receivables Trade Payables Inventories As of , merged with Birmaş Tüketim Malları Ticaret A.Ş. Financial statements of previous periods were restated for comparative purposes Page 17

19 Assessment of 2010 & Strategies The first half of 2010, consumer choice was similar to crisis period despite economic recovery trend Performance improvement is expected in the second half of 2010, because of the profitable summer period in the second half of the year. Conditions that cause an aggressive price competition in the industry are expected to change in the coming period Strategies; Increasing market shares for both HOD and Pet segments by growing more than the industry average. Cost optimization approach in whole value chain without sacrificing quality Increasing consumer loyalty with high-quality service and improving communication with consumers ( Order Hotline etc.) To continue optimized distribution model with different source locations Prioritizing human resources for sustainable success Page 18

20 Disclaimer & Contact Details 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-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 may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Sanayi ve Ticaret A.Ş. 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. Company s financial statements are available on and websites. Investor Relations Department Tel: Fax: yatirimci@pinarsu.com.tr Page 19