PINAR SU SANAYİ VE TİCARET A.Ş.

Transcription

1 PINAR SU SANAYİ VE TİCARET A.Ş.

2 Pınar Su Highlights 2nd brandthatcomesto mindin PET andpc categories(nielsen 2009) 363PC, 168PET dealers Call Center application HACCP Food Security Management System NSF Sufficiency Certificate ISO Quality Certificates Brand Recognition Distribution Network Quality Natural spring water reaching consumers in most natural and hygenic conditions Know-How Production from 3 sources close to target markets Clean room technology Production Productionin allskusform sourcesof Madran, Torosve Gökçeağaç. Product Portfolio

3 Market Dynamics Breakdown of Turkish Bottled Water Market Sales Volume 8,11 Bn Lt 8,7 Bn Lt 9 Bn Lt 9,3 Bn Lt 26% 28% 31% 33% %14 %15 %11 74% 72% 69% 67% %5 %-1 % PC PET Per Capita Water Consumption by Countires (2010) Per Capita Water Consumption Italy Source: Suder (Packaged Water Manifacturers Association of Turkey) Germany Turkey Spain Belgium 189 Lt 165 Lt 126 Lt 123 Lt 120 Lt Resin Prices (USD/Ton) 2,25 2,00 1,75 1,50 1,25 1,00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec There are 264 firms having Ministry of Health license. Average capacity usage rate of the sector is %40. SUDER expects the per capita water consumptioninturkeytobe135lt,in2011.

4 Market Dynamics - II GDP vs. Turkish Bottled Water Market Growth Rate 15% 14% 13% 10% 9% 7% 9% 7% 8% 5% 7% 3% 3% 5% 3% 1% 0% % -5% GDP Growth Rate -10% Turkish Bottled Water Market Growth Source: TUİK, SUDER Growth rate of packaged water sectorwasbelowthatofthegdpin The Bottled Water Sector in Turkey * Production (bn Lt) 5,7 6,2 7 7,8 8,1 8,7 9 9,3 9,8 Market Value (Bn TL) 0,6 0,8 1 1,2 2,5 3 3,1 3,3 3,45 Per Capita Consumption (Lt) SUDERexpectsagrowthof%5in 2011, in the packaged water market.

5 Market Overview Increasing investments of multinational firms like nestle, Danone and Coca Cola is a sign the room for growth of the market (M&As, spring source investments etc) Trend in the market is to increase the number of spring sources in order to optimise logistic costs. Small scale local producers are causing a fragmented market structure. Natural Mineral Water - PET Others; 50% Competitor5 ; 5% Source: Volume Share, Nielsen, March 2011 Pınar Su; 5% Competitor1 ; 15% Competitor2 ; 9% Competitor3 ; 9% Competitor4 ; 7%

6 Sales and Distribution Seasonality Exports (1Q11) 1Q 2Q 3Q 4Q Cyprus; 8% Others; 15% Germany; 36% Breakdown of Sales Volume (PET/PC)(1Q11) U.K.; 18% Holland; 23% PC 52% PET 48% Share of exports in all sales for 1Q11 is 7%.

7 FINANCIAL RESULTS

8 Performances Net Sales (Million TL) Net Profit (Million TL) 75,3 69,0 8,3 48,6 60,6 61,2 6,8 5,7 6,1 3, Local and small sized producers caused aggressive price competition in the industry. EBITDA (Million TL) 16,7 Our gross margin has increased from %49 to %50,1, with operational cost improvements in ,2 10,4 10,9 On the other hand, stiff price competition in the 6,6 market and costs for the strenghtening of sales and distributionledtoafallinnetprofit

9 Income Statement (Million TL) March 31, 2011 March 31, 2010 Diff. % Change Operating Revenue 16,7 15,7 1,0 6,6 Cost of Sales (9,1) (8,1) (0,9) 11,7 Gross Profit 7,6 7,6 0,1 1,1 Selling and Marketing Expenses (5,6) (5,3) (0,4) 7,2 General and Administrative Expenses (2,1) (2,2) 0,0 (1,8) EBIT (0,1) 0,1 (0,3) (227,4) Other Income 1,5 1,3 0,3 20,5 Other Expenses (0,0) (0,1) 0,1 (59,5) Financial Income / (Expense) - (Net) 0,1 0,6 (0,4) (75,0) Income Before Tax 1,5 1,9 (0,4) (20,2) Taxes on Income (0,1) (0,3) 0,2 (58,4) Net Profit 1,4 1,6 (0,2) (13,2) EBITDA 1,1 1,2 (0,2) (15,0) Total Assets 102,1 98,4 3,6 3,7 Shareholders' Equity 74,0 72,0 2,0 2,8

10 Profit Margins Gross Profit Margins (%) Operating Profit Margins* (%) 49,0% 50,1% 48,3% 45,8% 45,7% 10,6% 8,1% 33,1% 2,5% 0,7% Q10 1Q11 4Q10-0,8% Q10 1Q11 4Q10-12,4% EBITDA Margins** (%) Net Profit Margins (%) 17,1% 14,4% 9,6% 7,9% 6,3% 9,3% 8,2% 5,5% 10,2% 8,3% Q10 1Q11 4Q Q10 1Q11 4Q10-2,3% -9,7% * Ex. Other income and expenditures ** Earnings before Interest, Tax, Depreciation, and Amortization

11 Quarterly Results 15,7 Net Sales (Million TL) 16,7 6,6% 33,8% 12,5 Through restructing of the dealership system in 2010 and launch of Call Center, 1Q 2011 results reflect higher revenues driven by increased sales volumes relative to 1Q Q10 1Q11 4Q10 1,2 EBITDA (Million TL) 1,1 Due to the increase in raw material costs in 1Q 2011, relative to last year, our profibility has declined. 1Q10 1Q11 4Q10 (0,3)

12 Basic Ratios, Net Financial Debt&Net Working Capital March 31, 2011 December 31, 2010 (MillionTL) March 31, 2011 December 31, 2010 Current Ratio 1,36 1,41 Cash & Cash Equivalents 0,3 0,9 Leverage Ratio 0,28 0,24 S/T Bank Borrowings 1,9 1,7 ST Fin'al Debt/Total Fin'al Debt 0,58 0,52 L/T Bank Borrowings 1,4 1,6 Net Fin'al Debt/EBITDA 2,83 0,36 Net Financial Debt 3,0 2,4 Total Fin'al Debt/Equity 0,04 0,05 20 Million TL Continuous focus on risk management and productivity Effective working capital management Strong balance sheet and liquidity management -20 Trade Receivables Trade Payables Inventories

13 Overview of 1Q 2011 Local and small sized producers cause aggressive price competition in the industry. Year 2010, while showing signals of departure of economic crisis, was a year with similar consumer trends to crisis period. These circumstances have continued also in 1Q Our 19 Lt. Demijohn sales have surged despite the stagnant appereance of the demijohn market. The positive effects of operations performed in 2010 towards empowering sales and distribution of Pınar Su and the Call Center, have started to be observed in 1Q A strong growth has been observed in our 10 Lt sales in 1Q2011.

14 Strategies and Targets To increase our market shares in both PET and PC businesses. To maximise our profitability by improving our processes with Lean 6 Sigma, with a cost oriented approach all through the value chain and without compromising quality. To increase customer loyalty by, keeping our service quality high and improving communication with consumers (Call Center project etc.) To maintin our optimum cost distribution model regarding spring source locations. To keep human resouce in the forefront for success 2011 TARGETS Growth in Net Sales : %15 - %17 EBITDA Margin: %9 - %10 Capex: 7-9 Million TL

15 Ownership & Participation Structure Share Performance Yaşar Birleşik Pazarlama; 1% 120 Relative and Absolute Performance of Pınar Su Shares Relative to ISE-TUM 7 Free Halka Float Açık; 32% Yaşar Holding; 58% Pınar Süt; 9% - 0 ISE-TUM (Left Axis) PINSU (Right Axis) Pınar SU Yaşar Dış Ticaret (%1,76) Yaşar Birleşik Pazarlama (%4,79) DesaEnerji (%6,07) Viking Kağıt (%1,69)

16 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 Pınar Su 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: yatirimciiliskileri@pinarsu.com.tr Page 16

17 Thank You

18 History Potable water (for the first time) in non-recycled package... Pınar 1985 Şaşal Pınar Şaşal was exported to Germany for the first time 1997 Pınar Şaşal in The first Madran water in plastic PVC packagesbottle. Turkish Standards Institution was awarded Golden Package with the plastic bottle of Madran Memba Suyu 1995 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 Pınar Su receives natural mineral water licenses for all three of its factories Merged with Birmaş Tüketim Malları Ticaret A.Ş Pınar Su 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 2003 Certificate Second factory of Pınar Su was established in Nazilli, Aydın and Pınar Madran water, one of the topnotch waters in the world in terms of taste, met with the customers. TS ISO Certificate TS HACCP Food Safety System Certificate site was established Pınar Su Order Hotline was established. Pınar Su Page 18

19 Production Turkey s first bottled natural spring water Efficiency in transportation and supply Modern production facilities and sources in 3 territories: Gökçeağaç (2003) / Adapazarı with 400,000 tonnes capacity Madran (1996) / Aydın with 490,000 tonnes capacity Toros (2003) / Isparta with 210,000 tonnes capacity Long term agreements with the State Aydın - Bozdoğan Isparta - Eğirdir Sakarya - Hendek

20 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 agreements with the State Long term cooperation with local multinational producers sustain quality assurance Sustainable improvement in packaging costs (short-neck, light-weight bottle) Pınar Su Page 20