PINAR SU SANAY VE T CARET A. . PINAR SU SANAY VE T CARET A. . - - PowerPoint PPT Presentation

PINAR SU SANAY VE TCARET A.. PINAR SU SANAY VE TCARET A.. 2011 H1 Investor Presentation

• 2nd brand that comes to

mind in PET and PC categories (Nielsen 2009)

Brand Recognition

• 366 PC, 167 PET dealers
• Call Center application

Distribution Network

• HACCP Food Security

Management System

• NSF Sufficiency

Certificate

• ISO Quality Certificates

Quality

Pınar Su Highlights

1

Recognition Network

• 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

• Production in all SKUs form

sources of Madran, Toros ve Gökçeağaç.

Product Portfolio

74% 72% 69% 67% 26% 28% 31% 33%

Market Dynamics

Breakdown of Turkish Bottled Water Market Sales Volume

%5 %-1 %0 %14 %15 %11

Resin Prices (USD/Kg)

8,11 Bn Lt 8,7 Bn Lt 9 Bn Lt 9,3 Bn Lt

1,00 1,25 1,50 1,75 2,00 2,25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2

2007 2008 2009 2010 PC PET

%5 %-1 %0

Per Capita Water Consumption by Countires (2010)

There are 264 firms having Ministry of Health license. Average capacity usage rate of the sector is %40. SUDER expects the per capita water consumption in Turkey to be 135 lt, in 2011.

Source: Suder (Packaged Water Manifacturers’ Association of Turkey)

Italy Germany Turkey Spain Belgium Per Capita Water Consumption 189 Lt 165 Lt 126 Lt 123 Lt 120 Lt

2008 2009 2010 2011

9% 8% 7% 5% 1% 9% 3% 14% 7% 13% 7% 3% 3% 0% 5% 10% 15%

2004 2005 2006 2007 2008 2009 2010

Market Dynamics - II

Growth rate of packaged water sector was below that of the GDP in 2010.

GDP vs. Turkish Bottled Water Market Growth Rate

3

• 5%
• 10%
• 5%

2004 2005 2006 2007 2008 2009 2010

GDP Growth Rate Turkish Bottled Water Market Growth

Source: TUİK, SUDER

SUDER expects a growth of %5 in 2011, in the packaged water market.

The Bottled Water Sector in Turkey 2003 – 2010

2003 2004 2005 2006 2007 2008 2009 2010 2011*

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) 81 83 93 105 96 114 122 126 135

Market Overview

Increasing investments

• f

Natural Mineral Water - PET

Pınar Su; 5,3% Competitor1 ; 15,2% Competitor2 ; 8,7% Others;

In the 1H2011, PET market has grown by %8 in volume and by %10 in value

• terms. Pınar Su has achieved a growth
• f %12 in value and %16 in volume.

(Nielsen)

4

Source: Volume Share, Nielsen, 1H 2011

Increasing investments

• f

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.

; 8,7% Competitor3 ; 8,5% Competitor4 ; 6,7% Competitor5 ; 5,4% Others; 50,0%

Seasonality Exports (1H11)

Sales and Distribution

Germany; 35% Cyprus; 7% Others; 20%

1Q 2Q 3Q 4Q

5

PET 50,2% PC 49,8%

Export sales in USD has increased by %21 YoY, in 1H2011. Share of exports in all sales for 1H11 is 7,5%. (1H10: %6,5)

Breakdown of Sales Volume (PET/PC) (1H11)

Holland; 20% U.K.; 19%

Short Neck Investment

With our short-neck investment, the weight of PET bottles is reduced and environmental effect is minimized by decreasing carbon footprint A reduction of %10 is attained in the preform cots, due to the diminished preform weights in grams in 0,5 Lt and 1,5 Lt bottles. 6

New Concept & New Product

We have emphasized our water sub-brand Yaar Pınarım on our label designs and our corporate identity has been renovated in this direction. 7 We have started 10 litre production in our Hendek facility, to meet market tendencies. The product is launched in January 2011.

Media Campaign

Consumer communication is achieved through new concept and placement. Customers are reached via different channels.

• TV
• Newspapers
• Outdoor

8 Newspaper Outdoor

Net Sales (Million TL)

Sales & Profitability

48,6 60,6 61,2 75,3 69,0 34,7 38,0

Sales rose by %10 in 1H2011 YoY. Especially marketing expenses, rising due to increased marketing investments, led to a decrease in profit margins in 2011. By growing beyond the market and with the help of seasonality, sales increases are expected to continue 10

Net Profit (Million TL)

2006 2007 2008 2009 2010 1H10 1H11 6,8 8,3 5,7 6,1 3,8 3,0 0,8 2006 2007 2008 2009 2010 1H10 1H11

Continued strngthening of sales and distribution network and investment in marketing, paralel to our strategies. Local and small sized producers caused aggressive price competition in the industry. seasonality, sales increases are expected to continue also after 3. quarter. Preform costs showed an increase in 2011, compared to 2010, causing a rise in production costs.

Income Statement

(Million TL) June 30, 2011 June 30, 2010 Diff. % Change Operating Revenue

38,0 34,7 3,3 9,6

Cost of Sales

(21,1) (17,5) (3,6) 20,8

Gross Profit

16,9 17,2 (0,3) (1,7)

Selling and Marketing Expenses

(14,2) (11,6) (2,6) 22,0

General and Administrative Expenses

(4,7) (4,5) (0,3) 5,6

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EBIT

(2,0) 1,1 (3,1) (274,4)

Other Income

3,4 1,5 1,9 128,6

Other Expenses

(1,2) (0,2) (1,0) 655,8

Financial Income / (Expense) - (Net)

0,4 1,1 (0,7) (61,5)

Income Before Tax

0,7 3,6 (2,9) (80,9)

Taxes on Income

0,1 (0,6) 0,7 (117,7)

Net Profit

0,8 3,0 (2,2) (73,3)

EBITDA

0,5 3,5 (3,0) (85,5)

Total Assets

95,4 100,3 (4,9) (4,9)

Shareholders' Equity

64,2 68,6 (4,3) (6,3)

50 100 150

thousand ton

2Q10 2Q11

Growth in Volume

%35,3 %13,3 %23,8 %12,1 %8,8 %10,5

50 100 150

thousand ton

1Q11 2Q11

12 PET PC Total

50 100 150 200 250

PET PC Total

thousand ton

1H10 1H11 12

Sales have grown in volume more in PET segment following market tendencies.

%10,0 %7,6 %8,8

PET PC Total

Profit Margins

Gross Profit Margins (%) Operating Profit Margins* (%)

10,6% 8,1% 2,5% 3,3% 2008 2009 2010 1H10 1H11 33,1% 49,0% 50,1% 49,6% 44,5% 13

EBITDA Margins** (%) Net Profit Margins (%)

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

• 5,2%

17,1% 14,4% 9,6% 10,2% 1,3% 2008 2009 2010 1H10 1H11

9,3% 8,2% 5,5% 8,6% 2,1% 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11

19,0 21,3 16,7

Quarterly Results

Net Sales (Million TL) 12,1% 27,5%

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2,3 (0,5) 1,1 2Q10 2Q11 1Q11

2Q10 2Q11 1Q11

EBITDA (Million TL)

Basic Ratios, Net Financial Debt&Net Working Capital

June 30, 2011 December 31, 2010 (MillionTL) June 30, 2011 December 31, 2010

Current Ratio 1,1 1,4 Cash & Cash Equivalents 2,1 0,9 Leverage Ratio 0,3 0,2 S/T Bank Borrowings 2,3 1,7 ST Fin'al Debt/Total Fin'al Debt 0,6 0,5 L/T Bank Borrowings 1,5 1,6 Net Fin'al Debt/EBITDA 0,5 0,4 Net Financial Debt 1,7 2,4 Total Fin'al Debt/Equity 0,1 0,0

20

A 18% rise in net cash generated from operating activities

15 Continuous focus on risk management and productivity Effective working capital management Strong balance sheet and liquidity management

• 20
• 10

10

Trade Receivables Trade Payables Inventories

Million TL

generated from operating activities 1H10 1H11 3,9 Million TL 4,6 Million TL

Overview of 1H 2011

Mostly local small scale and economic brands cause an aggressive price competition in the market. Even though showing signals of recovery in economic conditions, 2010 was a period when consumers’ preferences were similar to crisis period.

16

was a period when consumers’ preferences were similar to crisis period. With the positive effects

• f

advertisement campaigns, dealer restructuring and Call Center (444 99 00), net sales have grown by %9,6 from volumes. In 1H2011, both PET and PC segments have achieved growths. 10 Lt bottle sales have contributed PET segment growth.

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

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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 : %10 - %12 EBITDA Margin: %3 - %5 Capex: 5 - 6 Million TL

1 2 3 4 5 6 7

• 20

40 60 80 100 120

Yaşar Holding; 58% Halka Açık; 32% Yaşar Birleşik Pazarlama; 1%

Ownership & Participation Structure – Share Performance

Free Float Relative and Absolute Performance of Pınar Su Shares Relative to ISE-TUM

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İMKB-Tüm'e Göre (Sol Eksen) PINSU (Sağ Eksen)

Pınar Süt; 9%

Pınar SU Pınar SU Yaşar Birleşik Pazarlama (%4,79) Yaşar Birleşik Pazarlama (%4,79) Desa Enerji (%6,07) Desa Enerji (%6,07) Yaşar Dış Ticaret (%1,76) Yaşar Dış Ticaret (%1,76) Viking Kağıt (%1,69) Viking Kağıt (%1,69)

IMKB-TUM ( Left Axis) PINSU ( Right Axis)

Disclaimer & Contact Details

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Thank You

20

• Potable water (for

the first time) in non-recycled package... Pınar aal

• Pınar aal 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.

• Pınar aal

was exported to Germany for the first time

• TSE ISO 14001

Environmental Management System Certificate

• Pınar Madran water

packed in demijohns was introduced

• Pınar, Yaam

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

Birma Tüketim Malları Ticaret A..

History

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1984 ’85 ’90 ’95 ’00 ’02 ’04 ’06 ’08 ’09 2010

• Pınar Su plant was

established in zmir, Menderes to produce first bottled water in Turkey

• %90 of total water exports
• f Turkey is realised by

Pınar Su

• Second factory of Pınar Su 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.

• ISO 9002 Quality

Management System Certificate market.

• TS ISO 9001-

2000 Certificate

• www.pinarmutfagi.com site

was established.

• TS 13001 HACCP

Food Safety System Certificate

• Pınar Su Order Hotline

444 99 00 was established.

Production

Efficiency in transportation and supply

Turkey’s first bottled natural spring water Modern production facilities and sources in 3 territories: Gökçeaaç (2003) / Adapazarı with 400,000 tonnes capacity Madran (1996) / Aydın with

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Long term agreements with the State

Aydın - Bozdoan Isparta - Eirdir Sakarya - Hendek Madran (1996) / Aydın with 490,000 tonnes capacity Toros (2003) / Isparta with 210,000 tonnes capacity

• Supply

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Brings unique gift of nature to consumers in its purest form

7!!!!! !!! ! )!!! " ! 8"!"!9 !:!!!!! #! .!!!$#%!& ! ! " !!!!! ! 7!!!!!)