Ya Y ş a a ş r a rg r G o r u o p u Ov O e v r e v r ivew e

Transcription

1 Yaşar ar Holding

2 Yaşar Group Overview

3 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, approx. 6,300 employees Consolidated Revenue of TRY 1.8 bn (USD 1.2 bn) and EBITDA of TRY 245 mn (USD 165 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 over TRY 1.1 bn * (c. USD 745 mn) Seven companies ranking among Fortune 500 of Turkey 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) * as at 30 April 2010 Page 2

4 Yaşar Group Divisions and Ownership Structure Overview Companies listed on ISE YA AR HOLDING A.. FOOD & BEVERAGES COATINGS TISSUE & OTHER 61.87% 74.17% 67.52% PINAR ET (Meat) DYO BOYA (Coatings) DESA ENERJİ (Energy) 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) 68.89% 63.87% 94.99% 61.84% PINAR SU (Beverages) DYO MATBAA (Portfolio) ÇE ME ALTIN YUNUS (Tourism) PINAR ANADOLU (Dairy & Meat) 79.71% DYO A.. (Portfolio) 44.98% 99.45% HDF FZCO (Sales & Distribution - Dubai) 64.30% PINAR FOODS (Dairy & Meat - Germany) Based on Direct + Indirect Control (Group Companies subject to consolidationpage in Yaşar 3 Holding IFRS Financial Statements)

5 Commitment to the Highest Standards of Corporate Governance YASAR HOLDING Board of Directors Major changes in management, organizational structure and processes in 2000 BoD Sub-Committees Audit, Human Resource - Governance Committees Executive, Corporate Finance, Investment, Performance, Information Security Mehmet Aktas Chief Executive Officer Yilmaz Gokoglu Secretary General of the Board Kamil Deveci Coordinator, Audit Turgut Sarioglu Coordinator, Risk Mgmt Legal Consultancy 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) Ali Sozen President, Food & Beverages Ahmet Yigitbasi President, Coatings Hasan Girenes President, Agribusiness Hikmet Altan President, Finance Levent Daghan President, Fin. Affairs Bud Cont. Sinan Gercek Vice President, Information Systems Dilek Emil Coordinator, Corporate Relations Filiz Ergin Director, Human Resources 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 subsidiaries Investor Relations Department Page 4

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 35,56% 16,42% 0,39% 47,63% Hedef Ziraat Ticaret A.S. (Owned by Selçuk Yaşar Family) DYO A.. and other Yaşar Group Companies Selçuk Yaşar Family Members Other Board of Directors Name İdil Yiğitbaşı Yılmaz Gökoğlu Mehmet Aktaş Hasan Girenes Neslihan Tonbul Mehmet Kahya Servet Topaloğlu Position Chairperson Vice Chairperson Member Member Member Member Member Key Management Team Name Mehmet Aktaş Hasan Girenes Hikmet Altan Levent Dağhan Ali Sözen Ahmet Yiğitbaşı Position CEO President, Agribusiness President, Finance President, Fin.Affairs & Budget Control President, F&B President, Coatings Industry experience 24 years 32 years 26 years 25 years 27 years 35 years 25 years Industry experience 26 years 25 years 25 years 24 years 20 years 23 years 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 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 packed dairy products plant 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 Financial Restructuring: Eurobond transaction amounting 200 mio maturing at 2011 (first corporate Eurobond for a Turkish company) Establishment of UHT Milk production line in Eskişehir and Printing Ink Plant 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 Mr Süleyman Demirel are at the opening ceremony of TUBORG, the first privately-owned beer plant 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 bottling in Turkey: PINAR SU Page 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 organic and prebiotic milks in Turkey

9 Profitability Remained Resilient also during the Economic Downturn Consolidated revenue of TRY 1.8 bn (USD 1.2 bn) and EBITDA of TRY 245 mn (USD 165 mn) in % 8% -11% Revenue decrease of 11% (2% excluding feed raw material trade business) from 2008 to 2009 is mainly due to: Global economic downturn Decline in the commodity prices and in the volume of feed raw material trade business in other segment The highest revenue and EBITDA generator, F&B 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 audited Net sales Consolidated EBITDA (RH scale) 0 OCI and lean six sigma projects Increase in the share of higher margin products, high margin products share 2007 vs 2009; Revenue: from %65.7 to %80.4 EBITDA: from %73.4 to %87.2 Page 8

10 Divisional Breakdown Revenue by Divisions Consolidated revenue of TRY 1.8 bn (USD 1.2 bn) and % 16% 5% 6% EBITDA of TRY 245 mn (USD 165 mn) in 2009 Core businesses of the Group (F&B and Coatings), % 16% 5% 16% composed c. 90% of total revenue and EBITDA in 2009 Food & Beverages is the highest revenue (73%) and % 20% 5% 14% EBITDA (77%) generator 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% F&B Coatings Tissue Other Contribution of F&B segment is gradually increasing, representing 73% of Group revenues in 2009 from 61% in 2007 EBITDA by Divisions % 12% 7% 4% Consolidated EBITDA growth of 21%, consolidated EBITDA margin of 13.9% % 11% 1% 9% Significant EBITDA growth in Coatings segment with an increase of 32.1% % 15% 12% Remarkable EBITDA growth in F&B segment with an increase of 19.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% F&B Coatings Tissue Other Page 9

11 International Operations Group Sales Breakdown Export & global sales 10% Domestic sales 90% Revenue from international operations USD 115 mn in % of the Group s consolidated sales, or TRY 1.6 bn (USD 1.1 bn), represent sales in Turkey, and the remainder 10% represent sales relating to international operations The Group's Pınar brand is the market leader in labneh cheese in Saudi Arabia and Kuwait, with 33% and 49% market shares in 2009, respectively (source: Nielsen retail data). Export & Global Sales by Divisions Tissue 11% Others 17% Export by Regions Coatings 27% F&B 62% Asia 12% Gulf Countries 42% Europe 29% Page 10

12 Market Leader Brands Stong track record as an innovator in Turkey Strong presence in Turkish food & beverages and coatings industries Strong brand portfolio Leading brands with leading market positions: PINAR & DYO; supported by * Marketing expertise (*) With the vision to Create 10 world brands in 10 years, Turquality is the first and unique branding program in the world supported by Turkish Government. Only prestigious and high potential brands are accepted within this program and supported by 50% of the brand investments realized abroad. PINAR trademark is qualified for Turquality Support Program as of 2007, and DYO & DEWILUX trademarks as of Page 11

13 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, profitable and strategic categories New product launches every year supported with effective marketing campaigns Mediacat Felis Award granted to Pınar Çocuk interactive campaign in 2010 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 12

14 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, 1,083 salespeople, 445 distributors (exclusive distributor of Ferrero in Turkey, sole meat supplier of McDonald s in Turkey) Coatings division: 13,000 sales points, 220 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 13

15 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 14

16 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 15

17 Financial Performance

18 Financial Highlights Key Income Statement Items Revenues (Net Sales) Cost of Goods Sold Gross Profit Gross Profit Margin Research and development expenses Marketing and selling expenses General administrative expenses Operating Profit * Operating Profit Margin EBITDA EBITDA Margin Net Income (loss) 2006 TRY (million) audited 1,471.5 (1,078.8) % (11.1) (205.5) (80.3) % % (51,8) 2007 TRY (million) audited 1,829.3 (1,338.0) % (11.7) (226.7) (81.5) % % 39, TRY (million) audited 1,980.7 (1,480.5) % (12.0) (252.8) (94.7) % % (127,0) 2009 TRY (million) audited 1,763.0 (1,255.5) % (10.6) (225.4) (91.3) % % 71,1 Profitability of the Group increased significantly with an EBITDA increase of 21% in the recent year Compared to 2006, increase in consolidated EBITDA is 58%; reaching TRY 245 mn in 2009 Revenue has increased by 20% in the same period * Other operating income and expense has been excluded Page 17

19 Financial Highlights (cont d) Key Balance Sheet Items 2006 TRY (million) audited 2007 TRY (million) audited 2008 TRY (million) audited 2009 TRY (million) audited Cash and Cash Equivalents Trade Receivables Inventories and Biological Assets Property, Plant, Equipment and Intangibles , Capital Expenditure Total Assets 1, , , ,679.6 Short-term Debt and Derivatives Trade Payables Long-term Debt (including / net of derivatives) Total Liabilities 1, , , ,168.1 Total Equity Page 18

20 Financial Ratios Key Ratios 2006 audited 2007 audited 2008 audited 2009 audited Current Ratio Debt to Assets Debt to EBITDA EBITDA to Interest Expense Leverage and Interest Coverage ratios have improved in 2009 as a result of: Increase in profitability and EBITDA Optimisation of consolidated cash flows Decrease in total debt Going forward, Yaşar intends to continue de-leveraging using free cash flows Page 19

21 Summary

22 Yaşar is on Positive Trajectory One of Turkey s leading and most respected consumer products group Stable ownership structure wholly controlled by the Selçuk Yaşar Family and experienced management team Strong track record as an innovator in Turkey: pioneered in the dairy, processed meat, water and coatings industries Consolidated Revenue of TRY 1.8 bn (USD 1.2 bn) and EBITDA of TRY 245 mn (USD 165 mn) in FY09 Six companies listed on the Istanbul Stock Exchange with a combined market cap of over TRY 1.1 bn (c. USD 745 mn) Strong presence and great expertise in the core businesses, Food & Beverages and Coatings Two brands with very strong brand equities: PINAR and DYO Significant marketing & R&D expertise, widespread distribution network F&B and Coatings markets have significant upside potential due to favorable economic, demographic and consumer trends Contained diversification (sales ~11% of total consolidated sales) into the non-core businesses of Tissue, Trade & Tourism Supportive economic backdrop: Turkey economy came out strengthened from the financial crisis Sovereign Ratings have been upgraded by all rating agencies Inflation has been gradually reduced to single digit Growth outlook is positive (economy is expected to grow by 6.8% in 2010 according to OECD s recent Economic Outlook) After successfully navigating through the economic turmoil: EBITDA has grown at a CAGR above 16% during the past 3 years while Substantial de-leveraging has been achieved (total debt -20%, debt to EBITDA down to 2.86x from 4.53x since 2006) Yaşar is greatly positioned to take advantage of the expected high potential of its core businesses: #1 F&B, #2 Coatings * as at 30 April 2010 Page 21

23 Thank You

24 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 23