PINAR ENTEGRE ET VE UN SAN. A.. Earnings Presentation, 2014 Q1 - - PowerPoint PPT Presentation

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PINAR ENTEGRE ET VE UN SAN. A.. Earnings Presentation, 2014 Q1 - - PowerPoint PPT Presentation

Dec 31, 2022 23 likes •226 views

PINAR ENTEGRE ET VE UN SAN. A.. Earnings Presentation, 2014 Q1 Highligths Innovative and pioneer Among most admired Hygenic and EU standard More than 300 SKUs companies in Turkey* production Among Turkeys Technical

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PINAR ENTEGRE ET VE UN SAN. A.Ş.

Earnings Presentation, 2014 Q1

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* GFK&Repman 2013 ** Capital&GFK 2013 *** Superbrands

1

Highligths

  • Innovative and pioneer
  • More than 300 SKUs
  • R&D expertise

Product Portfolio

  • Among most admired

companies in Turkey*

  • Among Turkey’s

Superbrands**

  • One of the top ten most

reputable brands ***

Brand Equity

  • Hygenic and EU standard

production

  • Technical expertise & sectoral

know how

Production

  • Food safety and quality at

every stage from supply to final product

  • ISO 9001-2008
  • ISO 14001
  • ISO18001
  • FSSC 22000
  • ISO 50001

Quality

  • YBP – Turkey’s biggest

nationwide cold and frozen distribution chain

  • More than 150.000 sales

points

  • Technical know-how and

expertise

  • Synergy in the distribution of

dairy and meat products

Distribution Network

  • Purchase operations spread
  • ut to 6 territories
  • Strong relations with farmers
  • Contractual stock farming

Supply

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A slight decline in 2014 Q1 in unprocessed food prices

64,63% 65,15% 67,25%

2011 2012 2013

Source: Nielsen

2

Carcass Meat Average Prices (TL) Packaged Delicatessen Share

  • In 2013, the red meat production was 996K

tons with an increase of %8.8 and the poultry meat (chicken&turkey) production was 1798K tons with an increase of %1.8. (TUIK)

  • Per capita red meat consumption is 13.01kg

in 2013 while it was 12.11 in 2012.

  • Registered delicatessen market is around

67K tons (1,4 bn TL) (Nielsen)

  • Growth trend in the segment of small

portion salami products and frozen floury products.

Market Dynamics

Price of Food Products

Food Prices (% change)

Processed Food Unprocessed Food

10 15 20

J A J O

2012 2013 2014

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0% 20% 40% 60%

Salami Sausage Soujouk Total Delicatessen

Pınar Nearest Competitor

Source: Nielsen, 2014-Q1, Value Share

Products Share Position Salami 47,4% Lider Sausage 38,1% Lider Soujouk 16,0% Lider Total Delicatessen 23,7% Lider

3

Pazar Payı Karşılaştırması

Source: Nielsen, 2014-Q1, Value Share

Ahead of Competition - I

  • Pınar Et, increasing its market share in

total delicatessen, maintained its leadership with 23,7% market share which is more than double of nearest competitor. (2013: %22,9)

  • As the leader brand Pınar, brought new

reforms to the category with new tastes.

  • Market narrowed by %11.6 in terms of

volume and grew by %10.5 in terms of value in 2013. Despite the contraction in the market, Pınar Et increased its market shares in all delicatessen segments. (Nielsen)

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33,3% 35,2% 37,4% 43,9% 47,4% 26,8% 25,8% 28,4% 35,3% 38,1% 20,0% 19,2% 20,6% 17,0% 16,0% 15,7% 14,7% 16,2% 22,9% 23,7%

2010 2011 2012 2013 2014-Q1

Salam (Leader) Sausage (Leader) Total Delicatessen (Leader) Soujouk (Leader)

4

Pınar Et increased its market shares of all delicatessen segments in 2014 Q1.

Source: Nielsen – Value Share

Ahead of Competition - II

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Pınar Börek Pınar Pizzato Mini Pınar Kadınbudu Meatball

New Products & Product Differentiations

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SLIDE 7

6

Pınar Açbitir Salami Frozen Meatballs Pınar Gourmet Soudjouk www.lezzetfikirleri.com

Campaigns

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YBP; 76% Export; 3% Direct; 21%

Processed Products; 89% Fresh Meat; 7% Others; 4%

Product Groups & Sales Channels

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Breakdown of Net Sales (2014-Q1)

Breakdown of Distribution Channels (2014-Q1)

  • Continued to focus on high

value added products.

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PINAR ENTEGRE ET VE UN SAN. A.Ş.

Financial Results

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40,1 39,5 29,7 32,7 38,3 7,8 9,0

2009 2010 2011 2012 2013 1Q13 1Q14 9

307,8 352,8 383,7 416,4 479,3 100,0 129,9

2009 2010 2011 2012 2013 1Q13 1Q14

64,7 59,9 60,3 72,4 83,1 18,7 19,8

2009 2010 2011 2012 2013 1Q13 1Q14

CAGR %12

Sales and profitability

%30,0

Net Sales (Mn TL) Net Profit (Mn TL) Gross Profit (Mn TL)

  • In 1Q 14, the net sales grew by %30 compared

to 1Q 13, driven mainly from price and product

  • mix. The product prices are upwards in sector.
  • Although not to be able to reflect the increases

in raw material totally, the better operational performance and the increase in association revenues balanced the margins.

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(Million TL) 31.03.2014 31.03.2013 Difference % Change

Net Sales 129,9 100,0 29,9 30,0 Cost of goods Sold (110,1) (81,3) (28,8) 35,5 Gross Profit 19,8 18,7 1,1 5,9 R&D Expenses (0,3) (0,3) (0,0) 8,9 Sales, Distribution and Marketing Expe (7,4) (6,2) (1,2) 19,6 General Administration Expenses (4,6) (4,7) 0,1 (1,1) EBIT 7,5 7,6 (0,1) (1,0) Share of Results of Investments in Associates 2,1 0,8 1,3 155,9 Other Income 1,0 0,4 0,6 163,6 Other Expenses (0,2) (0,1) (0,1) 262,0 Financial Income (Net) 0,5 0,9 (0,5) (50,7) Profit Before tax 10,9 9,6 1,2 12,6 Tax (1,8) (2,0) 0,2 (9,0) Net Profit for the Period 9,0 7,6 1,4 18,4 EBITDA 10,0 10,5 (0,5) (4,4) Total Assets 455,0 427,8 27,3 6,4 Equity 309,4 323,8 (14,4) (4,4)

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Income Statement

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15,7% 17,4% 17,3% 18,7% 15,2% 14,5% 2011 2012 2013 1Q13 1Q14 4Q13

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6,3% 7,9% 7,9% 7,6% 5,8% 5,1% 2011 2012 2013 1Q13 1Q14 4Q13 8,7% 10,0% 10,1% 10,5% 7,7% 7,4% 2011 2012 2013 1Q13 1Q14 4Q13 7,7% 7,8% 8,0% 7,6% 6,9% 6,6% 2011 2012 2013 1Q13 1Q14 4Q13

Profit Margins

Gross Margin (%) EBIT Margin *(%) Net Profit Margin (%) EBITDA Margin **(%)

* Ex. Other income and expenditures ** Earnings before Interest, Tax, Depreciation, and Amortization

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  • In 2014 Q1, we increased all profit margins with the

succesful pricing strategy, QoQ.

Quarterly Results

12

100 130 122

1Q13 1Q14 4Q13

10,5 10,0 9,0

1Q13 1Q14 4Q13

Net Sales (Mn TL) EBITDA* (Mn TL)

* Earnings (ex. other income and expenditures) before tax, dep. and amortization.

  • Despite the shrank in the market in terms of

volume, Pınar Et maintained a strong growth by %14 in terms volume and by %30 in terms

  • f value.
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Basic Ratios, Net Financial Debt & Net Working Capital

Mn TL

13

31-Mar-14 31-Dec-13 (Million TL) 31-Mar-14 31-Dec-13

Current ratio 1,29 1,70 Cash & Cash Equivalents 7,21 13,78 Leverage ratio 0,32 0,25 S/T Bank Borrowings 0,94 0,80 S/T Fin Debt/T. Fin Debt 1,00 0,06 L/T Bank Borrowings 0,00 11,66 Net Financial Debt/EBITDA

  • Net Financal Debt

(6,3) (1,3) Total Fin Debt/Equity 0,00 0,04

* Finansal borç aynı koşullarda Grup Şirketlerine devredilmiştir.

  • 80
  • 60
  • 40
  • 20

20 40 60 80

Trade Receivables Trade Payables Inventories

  • Continuous focus on risk

management and productivity

  • Effective working capital

management

  • Strong balance sheet and

liquidity management

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Dividends

14

0,14 TL 0,23 TL 0,28 TL 0,36 TL 0,12 TL 0,62 TL 0,65 TL 0,53 TL 0,54 TL

74,7% 66,8% 61,6% 59,9% 19,5% 79,0% 84,4% 90,4% 90,8% 11,5% 7,9% 6,9% 8,5% 4,5% 9,6% 8,6% 9,4% 6,3%

2004 2005 2006 2007 2008 2009 2010 2011 2012

Hisse Başı Net Temettü Temettü Ödeme Oranı Temettü Verimi*

Dividends Per Share (Net)

Payout Ratio Dividend Yield

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Overview of 2014 Q1

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  • The raw material prices began to follow an upward trend in the end of

2013 and this situation has continued in 2014 Q1. The raw meat prices are higher by %22 when compared to 1Q 13.

  • Cost saving measures and projects to improve production efficiency have
  • continued. (OMI-Lean Six Sigma Projects)
  • Continued to focus on high value added products and smaller packaged

products suitable for purchasing power of consumers.

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Strategies

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Growing above market growth rates in the segments we operate in, with;

  • An effective inventory management,
  • A product portfolio targeting needs of various segments
  • A wide spread distribution
  • An efficient utilization of social media
  • Developments in “Away from Home” market
  • Continuing marketing investment.
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94,76 6,80 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00

  • 20

40 60 80 100 120 140

İMKB-TÜM'e Göre (Sol Eksen) PETUN (Sağ Eksen)

%38,0 %23,4 %44,9 %26,4

Ownership & Participation Structure Share Performance

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31.12.2010 = 100

Shareholder Structure Share Performance

Relative and Absolute Performance

  • f Pınar Et Shares

Others

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Disclaimer and Contact Information

18 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 Entegre Et ve Un San. 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 www.kap.gov.tr and www.pinar.com.tr websites. Investor Relations Department Tel: 90 232 482 22 00 Fax: 90 232 484 17 89 investorrelations@pinaret.com.tr

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PINAR ENTEGRE ET VE UN SAN. A.Ş.

Thank You