PINAR SU SANAY
İ
VE T
İ
CARET A.
Ş
.
Pınar Su Highlights
• 2nd brand that comes to mind in PET and PC categories (Nielsen 2009)
Brand
Recognition
• 363 PC, 168 PET dealers • Call Center application
Distribution
Network
• HACCP Food Security Management System • NSF Sufficiency
Certificate
• ISO Quality Certificates
Quality
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/Ton) 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
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
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
-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 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)
Natural Mineral Water - PET
Pınar Su; 5%
Competitor1 ; 15%
Competitor2 ; 9%
Source: Volume Share, Nielsen, March 2011 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. ; 9% Competitor3 ; 9% Competitor4 ; 7% Competitor5 ; 5% Others; 50%
Seasonality Exports (1Q11)
Sales and Distribution
Germany; 36% Cyprus; 8% Others; 15% 1Q 2Q 3Q 4Q
Share of exports in all sales
for 1Q11 is 7%.
Breakdown of Sales Volume (PET/PC) (1Q11)
Holland; 23% U.K.; 18% PET 48% PC 52%
FINANCIAL
RESULTS
FINANCIAL
RESULTS
RESULTS
RESULTS
Net Sales (Million TL) Net Profit (Million TL) 48,6 60,6 61,2 75,3 69,0 6,8 8,3 5,7 6,1 3,8
2006 – 2010 Performances
EBITDA (Million TL) 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 11,2 16,7 10,4 10,9 6,6 2006 2007 2008 2009 2010Local and small sized producers caused aggressive price competition in the industry.
Our gross margin has increased from %49 to %50,1, with operational cost improvements in 2010.
On the other hand, stiff price competition in the market and costs for the strenghtening of sales and distribution led to a fall in net profit.
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
Profit Margins
Gross Profit Margins (%) Operating Profit Margins* (%)
33,1% 49,0% 50,1% 48,3% 45,8% 45,7% 10,6% 8,1% 2,5% 0,7% -0,8% 2008 2009 2010 1Q10 1Q11 4Q10
EBITDA Margins** (%) Net Profit Margins (%)
* Ex. Other income and expenditures ** Earnings before Interest, Tax, Depreciation, and Amortization
2008 2009 2010 1Q10 1Q11 4Q10 -12,4% 17,1% 14,4% 9,6% 7,9% 6,3% -2,3% 2008 2009 2010 1Q10 1Q11 4Q10 9,3% 8,2% 5,5% 10,2% 8,3% -9,7% 2008 2009 2010 1Q10 1Q11 4Q10
15,7 16,7
12,5
Quarterly Results
Net Sales (Million TL)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 2010. 6,6% 33,8% 1,2 1,1 (0,3) 1Q10 1Q11 4Q10 1Q10 1Q11 4Q10 EBITDA (Million TL)
Due to the increase in raw material costs
in 1Q 2011, relative to last year, our profibility has declined.
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
►Continuous focus on risk management and productivity
►Effective working capital management
►Strong balance sheet and liquidity management
-20 -10 0 10
Trade Receivables Trade Payables Inventories
M ill io n T L
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 2011.
have continued also in 1Q 2011.
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 2011.
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
Yaşar Holding; 58% Halka Açık; 32% Yaşar Birleşik Pazarlama; 1%
Ownership & Participation Structure –
Share Performance
Free Float 1 2 3 4 5 6 7 20 40 60 80 100 120Relative and Absolute Performance of Pınar Su Shares Relative to ISE-TUM 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) 0
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.
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Company’s financial statements are available onwww.kap.gov.tr andwww.pinar.com.tr websites.
Investor Relations Department
Tel: 90 232 482 22 00 Fax: 90 232 484 17 89
History
1984
Potable water (for the first time) in non-recycled package... Pınar Şaşal 1985-86 Pınar Şaşal in PVC packages 1997
The first Madran water in plastic bottle. 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. 1985
Pınar Şaşal was exported to Germany for the first time
2001 TSE ISO 14001 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. 2003
Marmara Water Inc. Was established upon acquisition of two springs in Adapazarı and Isparta 2007-2008
Pınar Su receives natural mineral water licenses for all three of its factories.
2010 Merged with Birmaş Tüketim Malları Ticaret A.Ş. Page 18
1984 ’85 ’90 ’95 ’00 ’02 ’04 ’06 ’08 ’09
2010
1984Pınar 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
1996
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.
1999 ISO 9002 Quality Management System Certificate market. 2003 TS ISO 9001-2000 Certificate 2004 www.pinarmutfagi.com site was established. 2005 TS 13001 HACCP Food Safety System Certificate
2010
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:
Gökçeağaç (2003) / Adapazarı with 400,000 tonnes capacity Madran (1996) / Aydın with
Long term agreements with the State
Aydın - Bozdoğan Isparta - Eğirdir Sakarya - Hendek
Madran (1996) / Aydın with 490,000 tonnes capacity
Toros (2003) / Isparta with 210,000 tonnes capacity
Supply
Brings unique gift of nature to consumers in its purest form
Spring Sources; PET Preform Supply;
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Long term cooperation with local
multinational producers sustain quality assurance
Sustainable improvement in packaging costs
(short-neck, light-weight bottle)
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
