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Management Presentation

September 2014

1. lker: Who we are ?

2. Key Investment Highlights

3. Financials

23

4. Appendix

28

We are the leading name in Turkish confectionery...

70 years of experience in Turkish confectionery

Leader in biscuit and chocolate category with 46%


market share in each; #2 in cake category with 33%
market share 9M14

Largest production capacity in the domestic market with


spread out facilities
Consolidated annual net sales of TL 2.75 bn in 2013
A gateway to the Middle East, Northern Africa and EU,
with exports to those regions accounting for c.20% of
revenues

Production Facilities
Istanbul
Gebze

Ankara
Gebze

Topkap, Istanbul

Biscuit & cracker

Chocolate

Karaman

Established in 1991

Established in 1997
Capacity: 85.5k tons/year

Capacity: 194k
tons/year

41k sqm closed area

68k sqm closed area

Ankara
Biscuit
Established in 1969
Capacity: 126k tons/year

Karaman
Silivri, Istanbul

Key figures TL mn
Mcap as of 09/30/2014
Revenues (LTM)

9M 2014

2,893

EBITDA (LTM)

Established in 1992

Established in 1986
Capacity: 123k tons/year

Established in 1995

Capacity: 45k
tons/year

Capacity: 30k
tons/year

27k sqm closed area

Non-lker branded products

The largest biscuit


manufacturing facility in the
Middle East

102k sqm closed area


75% owned by lker

Shareholding Structure (As of 30.09.2014)

11.0%

k tons

TL mn

% share

Biscuits

192

805

38%

Chocolate

113

1,036

49%

Cake

50

257

12%

Sales 9M14

Cake

12k sqm closed area

318

EBITDA margin % (LTM)

86k sqm closed area

Biscuit, cake, cracker &


chocolate

Chocolate,
chocolate
covered biscuit

5,164

Hadmkoy, Istanbul

Excludes other non-confectionary sales of TL 25 mn

Free Float
43,0%

Yldz
Holding &
Subsidiaries
& Family
Members
57,0%

Yldz Holding is Turkeys leading food and beverages group


with annual gross sales of TL15.7 bn as of 2013

... and the Best Recognized FMCG brand...


Best Recognized
Brands

Consistently
ranks as one
of the best
recognized
brands in
Turkey

#1

Brand One Feels


Close To

#2

The Brand
Award

The Best in the Sweet


and Salty Category

#3

(International
Brands
Conference, 2011)

(Silver Effie Award,


lker Rondo, 2011)

#4

Most
Recognized
Company
(AC Nielsen, 2nd
place, 2010)

#5
lker has always been the most recognized
brand and closest to consumers

Strength of the brand is proven by national and


international awards

Source: ACNielsen 2011

Long lasting
relationships
with end users
enhance
brand
perception
Highly-popular sub-brands are in the market for
2-3 decades
Arelik is a household durable goods brand

lker brand essence and campaign theme:


Happy moments with lker

...with dominant positions in growing markets


Market leader in main categories

Growth in Biscuit (Volume)

BISCUITS

CHOCOLATES

CAKES

290K Tons

170K Tons

79K Tons

Market Share (9M14)


(Volume based)

46%

46%

33%

Market Position

#1

#1

#2

Market Size (9M14


LTM)

# 1 in Petit Beurre Segment

Biscuit

# 1 in Chocolate Covered Sandwich Segment


# 1 in Special Biscuits Segment
# 1 in Creamy Biscuits Segment

Chocolate

# 1 in Sandwich Biscuits Segment


Top 3 in Chocolate Covered Segment
#1 in Spread Chocolate Segment

Cake

#1 in Solid Chocolate Segment

Retail market

#1 in Cake Segment

Growth in Chocolate (Volume) *

Milestones of our success

Revenues

Mcap

1944

Established as a small scale family run bakery

1996

Numerous minority shareholders triggered the listing of Anadolu Gda on stanbul Stock Exchange

2003

lker Gda merged under its own title with Anadolu Gda

2006

Appointment of Murat lker as Chairman of lker and Yldz Holding: new generation & new vision

2007

lker Gda changed its name to lker Biskvi: Emphasis on core business

2008

Acquisition of 25% stake in the premium chocolatier brand Godiva

US$ mn

2009
2010

2011
2012
2013

*1,340

2,266

2014

Mcap as of year-end
Ltm Revenue and September 30th 2014 closing Mcap

lker Biskvi investment: US$214 mn


Rapid growth led to complex corporate structure 4 sales companies, 4 production
companies and minority stakes in 7 non-core assets
2011 2013: Restructuring at all fronts
New top management on board
Gathering all chocolate and cake businesses under lker Biskvi
Disposal of 6 non-core assets. Reduced Godiva stake to 19% - recorded TL 100mn profit
Simplified traditional channel distribution merger of production companies with sales companies;
consolidation of all sales under new sales company Horizon
SKU optimization 502 SKUs in 2010 vs. 330 SKUs in 2013
Cancellation of privileged shares and founder shares
New dividend policy minimum 70% of distributable income
Free Float reached 40% after Yldz Holdings block sale
2014:
lker Biskuvi acquired 30% minority stake in Biskot
Divested stakes in Istanbul Gda, Birleik D Ticaret and Rekor

1. lker: Who we are ?

2. Key Investment Highlights

3. Financials

23

4. Appendix

28

Key investment highlights

Top-line growth driven by...


1

Growing market - young population with increasing purchasing power spending more on packaged foods
lker - Regaining market share through optimization of SKU portfolio, category expansions and new product launches,
unlocking distribution power and new account additions
Further margin improvement to be realized on the back of...
2

Simplified and efficient distribution network


Effective OPEX management
Increasing share of higher margin chocolate sales
High barriers to entry
3

is the best
recognized FMCG
brand in Turkey

c.50%

market share across the main categories


Strong brand equity in Turkey and in neighboring
countries

Access

to an exclusive distribution network reaching


~200,000 sales points
Largest production capacity in the domestic market

Targeting to become a regional player in markets with high growth potential


4

Geographical expansion already on the way Saudi Arabia and Egypt


Seeking further international opportunities in high growth markets

Godiva: Hidden value


5

US$750 mn revenue business - Global premium chocolate brand with significant brand equity worldwide
Investing in store expansion, especially in the Middle East, China, Japan, Korea and Indonesia

Yldz Holding: Strong & supportive parent


6

Biggest food and beverage group with TL 15.7bn turnover with 58 production facilities and 300 brands in 40 categories
Strategic shareholdings in the leading food-retail discounters (ok and Dia) and cash & carry wholesaler (Bizim) in Turkey
lker - Benefiting from Yldz Holdings unique distribution network, procurement power and experience in international markets

Favorable demographics and young target population 8


Sizeable market with a growing population

Turkey has one of


the youngest and
fastest growing
populations
Attractive target
consumer group

CAGR 2007- 2012

Population

1.7%

29

Malaysia

Youngest population in Europe

17%

65+

Turkey

1.4%

76

Indonesia

1.3%

247

7%

12%

55-64

8%

59%

S.Af rica

1.2%

14%

45-54

Brazil

UK
France

0.9%

0.7%
0.5%

199

63

15%

35-44

Turkey median
29 yrs

14%

Netherlands

0.5%

17

Czech Rep. 0.3%

11

15-24

0-14

12%

41%

17%

16%

0.2%

144

Greece

0.2%

11
82

Total population in millions

EU-27

Source: Turkstat, Eurostat

59%

25%

39

Russia

Source: World Bank, Turkstat

17%

61

0.5%

Germany -0.1%

14%

66

Italy

0.2%

11%

European median
41 yrs

25-34

Poland

41%

51

Turkey

Spending increases in tandem with GDP per capita


Biscuits consumption vs. GDP per capita
Kg per capita

Turkeys
consumption of
biscuits and
chocolate stands
at 3.5 kg and 1.9
kg per capita,
respectively

Increasing GDP
per capita
expected to fuel
biscuit and
chocolate
consumption

Chocolate consumption vs. GDP per capita


Kg per capita

12.0
UK

12.0
9.0

Netherlands

10.0

R2=0.60
8.0

USA

Brazil

5.0
6.0
4.0

France
Russia Turkey '18

Turkey '12 Croatia


4.0
Saudi Arabia
Hungary
Turkey '07
Poland
2.0
Egypt Malaysia
S.Af rica
Indonesia
0.0
0
10,000
20,000
30,000

Germany

8.0
6.0

Italy

6.0

UK Germany
UK

8.0
10.0
7.0

Germany

US$ per capita

40,000

50,000

60,000

Russia

Poland
Russia
Turkey '18
Poland
Croatia Turkey '18
Hungary
4.0
3.0
Italy
Croatia
Italy
Hungary
Turkey '12
'12
2.0 Turkey
Brazil
Saudi Arabia
2.0 Turkey '07
Brasil
Saudi Arabia
1.0Turkey '07 S.Af rica
S.Af rica
Indonesia
Indonesia
Malaysia
Egypt Malaysia
0.0
0
10,000
10,000
20,000
20,000 30,000
30,000 40,000
40,000

Source: Eurostat

R =0.54
Netherlands
USA
France
Netherlands
France
USA

US$ per capita

50,000
50,000

Source: Eurostat

Per capita consumption of biscuits and chocolate in Turkey grew at a CAGR of 2.3% and 7.0%,
respectively, between 2008 and 2013 -still lower than peers

US$20,000 GDP per capita target for Turkey by 2018 implies c.5% CAGR in biscuits consumption...

...and c.10% CAGR in chocolate consumption

IMF estimate

60,000
60,000

Regaining market share with portfolio management...


Streamlined product portfolio and increased brand investment for improved sales
# of SKU and sales
570

10,0

500
400
300

4,8

200
100

330

7,1

330

330

6,0

8,3

8,8

4,0

2,7

2,0

Biscuit

8,0
370

II

0,0
2010

2011

# of SKU

2012

2013

9M14(LTM)

Sales per SKU (TL mn)

Portfolio restructuring started in late 2011


- Keeping star SKUs, discontinuing unprofitable ones
Reduction from 502 SKUs in 2010 to 330 SKUs in 2013
- Increased brand investments through multichannel
advertising and social media / investment on star SKUs
- Distribution efficiencies / declining sales returns: 2.8% in
2011 vs. 0.5% in 2013 (0.5% in 9M14 vs 1.0% in 9M13)
- Increasing sales per SKUs
New launches to grasp market share:
- Indulgence biscuits: Dore (launched in June 2013)
- Diet biscuits (launched in September 2013)
- New chocolate- Laviva- (launched in September 2013)
- A new cake line O La La (launched in March 2014)
- New Wafer Dido Black (launched in August 2014)
- New chocolate- Bi Rya (launched in September 2014)

>50%

Chocolate

600

Cake

Results of portfolio
restructuring
reflected as
increased sales
performance

Market Share Development, Volume Based

Source: ACNielsen, Euromonitor


Retail market, Market shares may not add up to 100% due to rounding

II

II

10

... and unlocking distribution power ...

11

Accessibility is a key success factor


Traditional retail
dominates the
biscuits and
chocolate market
lker benefits from
Yldz Holdings
wide distribution
network throughout
Turkey:
Horizon in
traditional retail

665 km
Marmara
30% sales points
35% of total sales

Black Sea
11% sales points
10% of total sales

Central Anatolia
15% sales points
20% of total sales

Aegean
17% sales points
10% of total sales

Mediterranean
15% sales points
10% of total sales

Pasifik in
organized retail

90%

Eastern Anatolia
6% sales points
8% of total sales

200k

S. Eastern Anatolia
6% sales points
7% of total sales
US$
100

1,565 km
lker domestic sales by channel

Organized retail
35%

Traditional
retail
65%

c.90% nationwide coverage widest after beverage &


tobacco companies
Reaching ~200k sales points
throughout Turkey
175k in traditional
channel through Horizon
~20k bullets in
organized channel
through Pasifik
Typical distribution network
in a similar FMCG network
has a replacement value of
c. US$100mn and requires
1,300 headcount

... through newly established exclusive distribution

12

Horizon to consolidate traditional channel. Distributors sell solely Yldz Holding brands

Biscuits

Chocolates

3 categories
65 Brands
330 SKUs

40 categories
300 Brands

Baby products

Margarine and liquid oils

Sugar candy & gum

Personal care

Breakfast items

Drinks

60%

lker products c.60% in


terms of value and c.35% in
terms of volume in Horizon
portfolio

30%

Delivering c. 30% shelf space


of a small grocery - 20% with
only lker products
excluding tobacco and alcohol

Cakes

Light and diabetic


products

Culinary

Brands

Lower distribution cost

Increased selling power with


enhanced product portfolio

Eliminating internal competition


between distributors

Simplified route to market improving margins

13

Traditional channel - Efficiency gains from restructuring


Before

Simplified and
consolidated route
to market creates
cost efficiencies
paving the way for
further margin
improvement

Previous
Structure:

Current

Other Food &


Beverage Products

Distributors

Completed New
Structure:
Other Food &
Beverage Products

Domestic
Traditional
Channel

Biscuits

Atlantik
(lker brand)

Chocolates

Atlas
(lker brand)

Cakes

Atlas

Biscuits

Distributors

Chocolates

Horizon
(New Sales
Company)

Distributors

Cakes

Multi-channel route to traditional market


Limited to single category sales
235 distributors
# of points visited: 140k
% of invoice issued by visit: 75%-80%

Decreased logistics expense

Domestic
Traditional
Channel

Single route to traditional market through Horizon


Benefiting from Yldz Holding product portfolio
103 distributors
# of points visited: 175k
% of invoice issued by visit: 90%

More efficient route to sales points

Better and faster execution


capability

Enhanced distribution profit

Stronger distributors with higher


nominal gains

Owned by Yldz Holding, took over all traditional sales activities of lker as well as Yldz Holdings other companies sales activities

Growing chocolate segment favoring margins


Increasing share of higher margin chocolate segment
Chocolate sales and total share in revenue

Stronger growth in chocolate sales

15%

Growth between 2013 and 2012

7%

Growth between 9M14 and 9M13

Gross profit margin % - 2013


25%

48,6%

23%

22%

49,2%

20%

Chocolate
share in
total
revenue
2012

Chocolate
share in
total
revenue
2013

Biscuit

Chocolate

Cake

Overall

Chocolate business consolidated in 4Q2011 following the acquisition of lker ikolota


after depreciation

Overall margin benefits from high


growth chocolate category

14

Measures reflected in margins, still room to go


Components of EBITDA margin improvement

15

Long Term Guidance

16

EBITDA growth to surpass sales growth


Sales 2013-2016 (TL mn)
1.000

4.500

Int. Growth

2016E Sales

83

399

Chocolate
volume up 6
to 8%
annually

Biscuits and
cakes
volume up 4
to 6%
annually

Average
price to be
increased by
2% vis-avis inflation

271
2.748

CAGR 18%

2013 Sales

Biscuits

Chocolates

Cakes

By 2016, lker is expected to surpass TL4.5bn net sales (including inorganic


growth) with an EBITDA margin of above 15%

EBITDA margin 2013-2016


1.8%

0.6%

15.0%

1.0%
11.5%

Capex: 2.53.0% of net


sales

Reductionin Category
Category
BetterCost
cost &
&
20132013
EBITDA Reduction
Mix Better
in
sales
mix
effect
EBITDA
OPEX
margin
sales
Effect/New
OPEX
discounts
/ New
margin %
management
discounts
Launches
management
launches

2016
2016E
EBITDA
EBITDA
margin
%
margin

Distribute
minimum 70%
of
distributable
income

High barriers to entry

17

Dominant presence in Turkey across the board

c.50% dominant market share in biscuits and chocolate

Significantly higher brand awareness of lker branded products

Always been the most recognized brand and closest to consumers

Strong brand equity


with established
market positions

The Brand Award


(International Brands Conference, 2011)

Most Recognized
Company
(AC Nielsen, 2nd
place, 2010)

The Best in the Sweet and Salty Category


(Silver Effie Award, lker Rondo, 2011)

High barriers
to entry

Extensive and exclusive distribution network - the most relevant entry barrier in the
market

Reaching ~200,000 points of sales throughout Turkey

6 facilities in 4 cities, representing the largest production capacity in the domestic


market

Ankara biscuit factory - the largest biscuit manufacturing facility in the Middle East

Geographically diversified production base competitive advantage in route to


market

Exclusive
distribution

Largest & spreadout production


capacity in the
domestic market

Platform for further growth

18

Expansion started with Saudi Arabia and Egypt, focus on underpenetrated markets
Plans to expand
business in underpenetrated
markets with high
growth potential
Target regions:
Middle East, North
Africa, and Eastern
Europe

Saudi Arabia

Egypt

Population of 30.2 mn growing at CAGR of 1.8%


between 2007-2013

Population of 87 mn growing at CAGR of


1.7% between 2007-2013

US$ 924bn GDP growing at c.7%

US$ 568bn GDP growing at c.3%

c.US$ 1.9 bn confectionary market

c.US$ 1.4 bn confectionary market

c.7% market share in biscuit market

c. 2% market share in chocolate market

Less than 1% market share in biscuit


market

(US$ mn)

Market
size

Growth

Per capita
consumption

(US$ mn)

Market
size

Growth

Per capita
consumption

Chocolate

993

9.0%

1.9

Chocolate

408

5.3%

0.4

Biscuits

717

5.6%

3.7

Biscuits

957

9.4%

2.9

Source: Euromonitor

Source: Euromonitor

lker Egypt (sales)

Hi Food (manufacturing)

FMC (manufacturing)
Established in 2000

Established in 2007

Established in 2010

42% Yldz Holding, 58% local partner

46% Yldz Holding, 54%


local partner

100% Yldz Holding

Biscuit production

Manages 12 distributors and


reaches 20,000 sales points

Biscuit, chocolate and cake production


Capacity: 43k tons
c. 100 trucks reaching c. 10,000 sales
points

(US$ mn)

2013

2014E

Net sales

91

100

EBITDA margin

6%

9%

2008-20113 CAGR-Volume
Kg per capita - 2013

Biscuit sales

Capacity: 27.5k tons

Potential
expansion areas
(US$ mn)

2013

2014E

Net sales

36

45

18%

12%

EBITDA margin

Godiva Hidden value

Acquired by Yldz
Holding in 2008
lker stake in
Godiva - 19%

Leading premium chocolate producer with significant brand


equity worldwide

Entry into China, S.Korea, Indonesia, S. Arabia and Turkey


since the acquisition

Yet to reach its potential in terms of growth and margins by

restructuring the company,

investing in store expansion, especially in the Far


East,

closing down inefficient stores,

reshuffling the product portfolio,

Godiva plans to open 50 new stores per annum and reach


US$1.0 bn in revenues and US$120mn EBITDA in 2016

19

Geographical presence of Godiva as of 2013 year end


195 stores in
the US
&Canada

35 stores in
Europe

209 stores in
Asia

Owns and operates 439 retail boutiques in 84 countries


as of 2013 year end

Available via over 10,000 specialty retailers


Key figures

2008

2013

2014E

# of stores

432

439

463

Revenues

US$ 490mn

US$ 704mn

US$ 769mn

US$ 49mn

US$ 56mn

EBITDA

Geographical store evolution

Godiva store in Harrods, London

Year
2008
2013
2014YE
Godiva store in Denver, the US

U.S.
262
195
199

Japan
99
128
135

China
46
54

Pac Rim Belgium


32
8
35
5
38
5

Others
21
30
32

Yldz Holding: Strong & supportive parent

Bizim and ok -7%


of lkers net sales
as of 1H14
Dia - new account
entered after the
acquisition in July
2013

Operates in 6 sectors with TL15.7 bn gross sales in 2013

The largest branded food group in CEEMEA

58 production facilities, 300 brands in 40 categories including biscuits, chocolate, confectionary, margarine & liquid oils,
culinary products, dairy products, beverages, fruit juice and frozen foods

Benefits from its diversified business portfolio - significant distribution and purchasing synergies across the portfolio

Increased interests in food retailing with strategic stakes in top three discounters - Bizim, ok and Dia accounting for 7%
of organized food retail sales in Turkey
Best recognized food brand
#1 in biscuits & chocolates
Diversified product portfolio
#2 in dairy products
holding strong market
#1 in edible oils and fats
shares
#1 in overall baby food
#1 in culinary products
Retail

Food &
Beverages

Experience in managing
international operations

Real Estate
JVs with leading
international players
Sole and first brand sought
out for co-branding

Personal
Care

Premium segment
chocolate producer
acquired in 2008
Leading international
baked snacks producer
acquired in 2014

Packaging

Finance

2012 revenues

20

Turkey's first food company


to establish a nationwide
distribution network

In excess of 200k sales points


nationwide
c.90% coverage, second best after
Coca-Cola Icecek

Beyond 2016

21

Long-term ambitions

Growth

Productivity

Brand
investments

Investor level

Increase operating profit by higher sales volumes


and revenues

Become a strong regional player

Further efficiency and productivity in distribution


channels

Growth through acquiring national champions

Boost product quality through operational efficiency

Further efficiency and productivity in distribution


channels

Meet/beat international benchmarks

Ensure the continuity of brand investments

Offer powerhouse brands to consumers at


reasonable prices

Increase market share

Sustain best corporate governance practices

22

1. lker: Who we are ?

2. Key Investment Highlights

3. Financials

23

4. Appendix

28

Increasing sales

23

Net sales by category

Sales volume by category


Tonnes

TL mn

354.670
1,978

349.470

110.095
114.686

Consolidated sales volume was down by 4.0% in 3Q14


and was up by 1.5% in 9M14, with decline in 3Q mainly
attributable to:

2,123

673

652

Consolidated sales revenue up by 3.1% in 3Q14 & 7.3%


in 9M14, the growth in 3Q was primarily as a result of:

Price increase & downsizings in Chocolate and


Biscuits

Lower exports limited the growth

Lack of revenue from divested sales companies

Low exports volume

Like for like basis, revenue growth of


8.3% (including sales companies)

Excluding non-confectionery sales volume


Following acquisition of lker ikolata in 2011, chocolate operations have been consolidated in figures from 4Q2011 onwards

Increasing margins

24

EBITDA and margin % ***

Gross profit and margin %


TL mn

TL mn

22.2%

18.7%

23.0%

20.8%

454,8

144,6

125,5

3Q13

3Q14

9M13

11.5%

10.8%

11.8%

11.1%

232,9

235,4

9M13

9M14

441,4

9M14

75,1

72,9

3Q13

3Q14

***Excluding

Ease in gross profit in 3Q14 is due to:

High input costs

Divesture of sales companies

other income/(expense) from operations

EBITDA was down to TL 73 mn in 3Q14 as a result of:

High input costs

Tight opex management

Price increases limited the margin loss

Working capital and net debt

25

Net debt

Average working capital days

Average WC days

2011

2012

2013

3Q13

3Q14

Trade receivables

87

84

76

80

77

Inventory

38

34

33

34

36

Trade payables

79

81

77

73

68

WC - days

46

37

32

41

45

Net working capital was TL 413 mn as of 3Q14 and TL


325 mn at the end of 2013
Working capital requirement over sales ratio was
14.3% in 3Q14 (LTM)

Net debt - TL mn

2012

2013

3Q14

Financial debt

1.501

1.260

835

Short term financial debt

614

1.250

835

Long term financial debt

887

10

131

1.268

1.164

343

102

92

492

Non-trade receivables from related


parties
Cash and cash equivalents
Net debt

Net debt as of 3Q14: TL 492 mn

Net debt to EBITDA (LTM) is 1.55x

Financial debt
- US$ denominated due to company strategy
- Maturity breakdown as of 9M14:
- Short term 100%

- Long term

Cash & cash equivalents breakdown based on currency


- TL:

6 mn

FX short position of TL 447 mn

- US$: 335 mn
- Euro: 2 mn
Amounts expressed in Turkish Lira TRY

Net debt

26

Net debt Development

Amounts expressed in Turkish Lira TRY

27

1. lker: Who we are ?

2. Key Investment Highlights

3. Financials

23

4. Appendix

28

Financials

28

Consolidated income statement


Income statements (TL mn)

2012

2013

Growth 13-12

9M13

9M14

Growth 9M14-9M13

2.343
(1.838)

2.748
(2.115)

17%
15%

1.978
(1.524)

2.123
(1.682)

7%
10%

505
21,6%

633
23,0%

25%

454
23,0%

441
20,8%

(3%)

OPEX
Marketing, Sales and Distribution Expenses
General Administration Expenses
Research Expense

(332)
(227)
(96)
(9)

(370)
(263)
(94)
(13)

11%
16%
(2%)
51%

(178)
(177)
(73)
(10)

(180)
(170)
(67)
(10)

(5%)
(4%)
(8%)
4%

EBIT
EBIT Margin

173
7,4%

263
9,6%

52%

195
9,8%

194
9,1%

Depreciation

(48)

(52)

8%

(39)

(41)

7%

221
9,4%

315
11,5%

43%

233
11,8%

235
11,1%

1%

73

256

251%

145

88

(3)

(240)

n.m.

(148)

(95)

244

279

15%

191

187

Tax Charge From Continued Operations

(48)

(52)

8%

(39)

(20)

Net Profit (Equity holders of the parent)

167

189

13%

123

155

Sales Revenue
Cost of Sales
Gross Profit
Gross Profit Margin %

EBITDA
EBITDA Margin

Other Operating Income / Expense* & Inc/Exp


From Inv. Activities
Finance Incomes / Expenses*
Profit Before Taxation

27%

Financials (contd)

29

Consolidated balance sheet


Balance sheet (TL mn)

2013

3Q14

2.129
1.164
1

1.413
343
1

Trade receivables

649

645

- Trade Receivables from related Parties

447

606

- Other Trade Receivables


Other receivables
- Non-trade Receivables
- Other short-term Receivables
Inventories
Other current assets

202
20
3
17
198
96

39
1
0
0
256
168

Non-Current Assets
Financial investments
Investment properties
Tangible assets
Intangible assets
Deferred tax assets
Other non-current assets

1.033
465
10
533
1
4
21

1.051
467
10
546
1
9
18

Total Assets

3.162

2.463

Current Assets
Cash and cash equivalents
Financial investments

Balance sheet (TL mn)

2013

3Q14

1.827
1.250
508
273
235
1
11
23
18
16

1.305
835
413
212
201
1
13
17
18
7

67
10
23
34
0

54
0
26
28
0

Shareholders' Equity
Share capital
Inflation adjustments to share capital
Valuation funds
Restricted reserves
Actuarial gain / loss
Retained earnings
Net income for the year
Non-controlling interest

1.268
342
108
260
126
(1)
106
189
138

1.104
342
108
262
150
0
2
155
85

Total Liabilities and S.E.

3.162

2.463

Current Liabilities
Financial liabilities
Derivative financial liabilities
Trades payables
- Trade payables to related parties
- Other trade payables
Other payables
Corporate tax payable
Debt provisions
Employee benefits
Other current liabilities
Non-Current Liabilities
Financial liabilities
Employee benefits
Deferred tax liabilities
Other non-current liabilities

Cost Structure

30

Components of Cost of Goods Sold (Consolidated)

Cacao
15%

Other
35%

Raw
Material
65%

Wheat
20%

Raw Material
Breakdown
Palm Oil
15%

Palm Oil and Cacao are imported in USD terms


Wheat and Sugar is procured from domestic sources in TL terms

Sugar
15%

Price Performance of Cocoa & Palm Oil

31

Price of 2,822 on 21.10.2014

Cocoa

Palm Oil
Price of 2,235 on 21.10.2014

Source: Bloomberg, in
USD

Disclaimer

This presentation contains information and analysis on financial statements and is prepared for the sole purpose of
providing information relating to lker Biskvi Sanayi A.. (lker)

This presentation contains forward-looking statements which are based on certain expectations and assumptions at the
time of publication of this presentation and are subject to risks and uncertainties that could cause actual results to differ
materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are
beyond lkers ability to control or estimate precisely, such as future market and economic conditions, the behavior of
other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings
and productivity gains as well as the actions of government regulators
Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date
of this presentation. lker does not undertake any obligation to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date of these materials
This presentation merely serves the purpose of providing information. It neither represents an offer for sale nor for
subscription of securities in any country, including Turkey. This presentation does not include an official offer of shares;
an offering circular will not be published
This presentation is not allowed to be reproduced, distributed or published without permission or agreement of lker
The figures in this presentation are rounded to provide a better overview. The calculation of deviations is based on
figures including fractions. Therefore rounding differences may occur
Neither lker nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss
arising from the use of this presentation

32