Ülker Bisküvi

BİSKÜVİ SANAYİ A.Ş.
INVESTOR
P R E S E N TAT I O N
APRIL
2011
Long Version
Istanbul Stock Exchange: ULKER
ULKER.TI (Bloomberg) | ULKER IS (Reuters)
www.ulkerbiskuvi.com.tr
Disclaimer
This presentation contains information and analysis on financial statements and is prepared for the sole purpose of
providing information relating to Ülker Bisküvi Sanayi A.Ş. (Ülker Bisküvi).
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 Ülker Bisküvi’s 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. Ülker Bisküvi 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shares; an offering circular will not be published.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 agreement of Ülker
Bisküvi.
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 Ülker Bisküvi 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.
2
Introduction to Ülker Bisküvi
Turkey and the Biscuits Market
Review of Operations
Financial Overview
Appendix
Ülker Bisküvi: Company Profile

Founded in 1944 and headquartered in
Istanbul, Turkey;

Turkey’s leading producer of biscuits,
chocolate covered biscuits, crackers and
wafers;

The flagship brand for Yıldız Holding,
one of Turkey’s leading groups;

Unrivaled supply chain and
distribution channel management;

Production facilities strategically
located across Turkey; and

Exceptional food quality and
safety record.
In 2010, Celebrated 66 years of
“Happy Moments!”
4
Ülker Bisküvi: Shareholder Structure

Listed on the Istanbul Stock Exchange since 2004 under ticker symbol «ULKER TI*»

Yıldız Holding is one of the leading Turkish groups, with investments in business
lines, ranging from foods and beverages, personal care, retail, real estate,
packaging, IT and finance.
Ülker Family
4,6%
Dynamic
Growth Fund
27,4%
Free Float
28,2%
Yıldız Holding
39,8%
* Yıldız Group’s first company that went public was Anadolu Gıda. In 1996 it began
trading on the Istanbul Stock Exchange under the ticker symbol AGIDA.IS. Following
Anadolu Gıda's merger with Ülker Gıda on 31 December 2003, the ticker symbol was
changed to ULKER.IS.
5
Solid Financial Position
Solid top-line performance;
- 6.9% y-o-y domestic net
(in TL MM)

Net Sales
2.000
1.500
1.000
0
1.156
1.168
1.248
256
339
275
2008
2009
Domestic Sales
- Export sales as a percentage
400
net sales in 2010
379
330
306
300
200
100
0
2008

Increasing earning per share
with 81.6% y-o-y growth in
2010; and
0,8
2010
0,69
0,6
0,38
0,4
0,2
Financial flexibility to capitalize
on growth opportunities.
2009
EPS
(in TL)

2010
Export Sales
Gross Profit
(in TL MM)
- 1.1% y-o-y growth in total
1,524
500
sales growth in 2010,
of total sales in 2010 was
18%, compared to 22% in
2009
1,506
1,412
0,06
0
2008
2009
2010
6
Unrivaled Brand Recognition and Market Position
Brand
Category
Market Share by
Volume (%)
Market
Position
Plain
30%
#1
Cream Sandwich
18%
#1
Sandwich
57%
#1
Filled
44%
#1
Cookie
54%
#1
Mille-Feuille
100%
#1
Baby Biscuits
53%
#1
Source: AC Nielsen year to date report, as of 28 February 2011
7
Award-Winning Brand
For many generations, the Ülker brand has been beloved and synonymous with quality and good
taste, both in Turkey and abroad.

Silver Effie Award, «The Best in the Sweet and Salty Category» with «Ülker Rondo» (2011)

Webrazzi, 2nd place in «The Best in Digital Marketing Campaigns» with «dramalikremalihayat.com» (2010)

Grand Interactive Awards, «The Most Integrated Communication Campaign» with «dramalikremalihayat.com» (2010)

MIXX Awards, «The Best Cross Channel Integration» with «dramalikremalihayat.com» (2010)

Kırmızı Awards, «The Best Food Ad Campaign» with Krispi (2010)

MediaCat Felis Award, «The Best Magazine Application» with Krispi (2010)

Golden Award, «The Multi Media Campaign» with Ülker Rondo (2010)

Crystal Award*, «The Best Radio Ad in Fast Consumption» with Ülker Rondo (2010)

Crystal Award*, «The Best Cross Channels Campaign in Fast Consumption» with Ülker Rondo (2010)

Crystal Award*, «The Best TV Ad in Confectionary» with Ülker Rondo (2010)

Bronze Effie, «Sustainable Success» with Hanımeller (2009)

AC Nielsen, 3rd place in «Most Recognized Brands – Spontaneous» as Ülker Bisküvi (2009)

AC Nielsen, 2nd place in «Brands That Consumers Feel Closest To» as Ülker Bisküvi (2009)
«Kırmızı» Best in Media
Advertising Awards
8
Key Investment Highlights
Play on the Turkish Consumer
A Highly-Attractive Category
Unrivaled Position
 One of the largest economies in the world
 Ranked 6th in Europe and 16th globally
 Per capita income has grown by 7.3% per
year (CAGR of 2005-2010)1
 Young population with 60% under the age of
35 years old 2
 Biscuits is a high-growth category
 The Turkish biscuits market has grown
consistently in recent years
 7.2% volume growth was realized in 2010 3
 Expected to post strong future growth as per
capita biscuit consumption ramps up with the
increase in per capita income
 Number #1 in biscuits category
 Enjoys the strongest and increasing market
position in Turkey, commanding
approximately 50% share 4
A Power Brand
Exceptional Track Record and Robust
Growth Prospects
 Ülker is “the” brand in the Turkish
confectionery market, including biscuits
 Consistently ranks at the top as “The Most
Recognized” Brand of Turkey
 Increasing investments in marketing since
2007
 Supported by smaller well-known brands of
‘local gems’
 Significant organic top line growth potential
driven by attractive market and sector
fundamentals
 Consistent solid financial performance
despite adverse impact of recent global
economic crisis
Strong Management
‘Best in Class’ RTM
 Strong and highly experienced management
with a total experience of more than 300
years
 Committed to further grow the business and
margin expansions
 Strong distribution capabilities with
approximately 200,000 point-of-sale in Turkey
 Opportunity to further leverage existing
distribution networks in Central East, the
Middle East, North Africa and Europe
1, 2: Turkish Statistical Institute
3, 4: AC Nielsen Report, February 2011
Innovation / R&D
 Strong innovation capability as an integral
part of Ülker’s heritage
 Launched 11 and 31 new products in 2009
and 2010, respectively
9
Corporate Structure* as of 31 December 2010
BİSKÜVİ SANAYİ A.Ş.
Financial Assets
Subsidiaries
Manufacturing
Sales & Marketing
BİM (10.05%)
Retail
İdeal Gıda (97.9%)
Produces Ülker branded products
Other Shareholdings
Pendik Nişasta (23.99%)
Glucose-fructose and starch
producer
Birleşik Dış Ticaret (69.0%)
Exporting Agent of Non-Ülker
branded products
Fresh Cake (10%)
Hero Gıda (39.59%)
Cake Producer
Biscuit and baby food producer
Biskot Bisküvi (50.8%)
Atlas Gıda (78.2%)
Produces Non-Ülker branded
products
Besler Gıda ve Kimya (7%)
Domestic Sales & Marketing of
Ülker branded products
Godiva (25.23%)
Oil & Fats Producer
Premium chocolates, including
bonbons, truffles, flavored
coffees, cocoa mixes, cookies and
ice cream
Rekor Gıda (46.6%)
Sağlam GYO (10.7%)
Domestic Sales & Marketing of
Non-Ülker branded products
REIT
Birlik Pazarlama (99.0%)
Flour producer for the Group
companies
İstanbul Gıda (83.8%)
Exporting Agent of Ülker branded
products
Mavi – Yeşil (74.4%)
Sales & Marketing
10
Introduction to Ülker Bisküvi
Turkey and the Biscuits Market
Review of Operations
Financial Overview
Appendix
The Global Biscuits Market

Global size of biscuit market is estimated to grow at a CAGR of 3.1% between
2008 to 20131


Expected to reach 9.3 billion kg in volume and valued at USD 41 billion, an increase of
16.6% since 2008
Increased consumer awareness

Consumers gravitate towards packaged biscuits with increased consumer awareness
Worldwide Biscuits Sales1
Global Biscuits Segmented by % Share, Value1
$42
40,8
$41
38,5
(in billions)
$39
$38
37,3
$37
$36
Other, 27.1%
39,6
$40
Butter-based
cookies; 17%
Chocolate
cookies,
16.4%
36,3
35,2
$35
Wafer
biscuits,
10.7%
$34
$33
$32
2008
2009
2010E
2011E
2012E
2013E
Cream filled;
12,70%
Plain cookies,
16.2%
1: Datamonitor Global Guide Report (February 2010)
12
The Turkish Biscuits Market

The Turkish biscuit retail sales reached c.217K tons in 2010, a year-on-year growth
of approximately 7% in terms of volume and approximately 11% in terms of value;

Ülker Bisküvi, the oldest and most established biscuits producer in Turkey is the
market leader as of December 31st, 2010; commanding c.50% of the total market in
terms of volume and value.
Turkey Biscuits Sale by Volume 1
(tons/year)
217K
207K
202K
2008
2009
2010
1: AC Nielsen Data covering c.70% of retail and traditional channels excluding BİM, February 2011
13
Introduction to Ülker Bisküvi
Turkey and the Biscuits Market
Review of Operations
Financial Overview
Appendix
Core Focus: Drive Future Growth and Shareholder Value

Improved cost structure through increased operational
efficiencies;

Focused on solid execution of core business strategy;

Disciplined approach to production and capacity
utilization;






Investments made to capacity increase, renewal and
modification of production lines
Reinforcement of brand equity, driving innovation via
new and diverse product development;
Improving
Cost Structure
Dedicated to
Corporate Social
Responsibility
Sound
Corporate
Governance
Continue building market share and enhance customer
base in all channels – domestically and internationally;
Quality controls

Retains international quality certificates
Corporate Social Responsibility as a corporate culture

Solid Execution
of Business
Strategy
Focus on
International
Markets
Indisputable Brand
Recognition
Increasing
Consumption
Trends and
Urbanization
Highest
Quality of
Standards
R&D and New
Developments
The Company as a whole, continues to build awareness of
responsibility to community and the environment through
charitable support and social contributions
Corporate Governance

Applying and continuously improving corporate
governance practices
15
World-Class Production Facilities

Ülker Bisküvi’s production facility is the largest in Turkey with an annual capacity of approximately
810 K tons (371K being the flour capacity )

Facilities are ISO 9000 and HACCP certified and adhere to the strictest and highest standards of
operation;

Minimal CapEx requirements to increase capacity production in the coming years; and

Main production facilities based in Istanbul Topkapi, Ankara, Gebze and Karaman are diversified
and strategically located throughout the country.
ISTANBUL
PLANT GEBZE
PLANT
ANKARA
PLANT
KARAMAN
PLANT
2010
Capacity (ton)
Production (ton)
Sales (ton)
CUR (%)
Ülker
Bisküvi
193.998
126.928
126.461
77
Biskot
194.751
99.311
100.358
67
İdeal
Birlik
Gıda Pazarlama
49.819 371.700
41.833 291.705
41.686 293.516
84
80
16
Sophisticated Distribution and Marketing Channels

Ülker Bisküvi’s distribution network reaches to approximately 200,000 sales
points across Turkey and is one of the widest and most sophisticated
distribution networks in the country;

Ülker Bisküvi is also able to cross-utilize the resources of the Group; and
- Atlas Pazarlama – nationwide distribution

Largest bakery distributor in Turkey, in terms of sales and sales points

10 regional offices and 109 distributors across Turkey

Provides regular, high-quality services across 170,000 points-of-sales weekly with
more than 1,000 delivery vans
- Pasifik Pazarlama – distribution and marketing




Owned by Yıldız Holding
Largest distributor to major retailers, with a portfolio of 7,000 independent
supermarkets and other key accounts
3 warehouses -2 in İstanbul, 1 in Ankara- having total pallet capacity of 30.000
In addition to the two main marketing and distribution channels, Ülker Bisküvi
uses Esas Pazarlama, Merkez Gıda Pazarlama and Rekor Pazarlama.
17
Ülker Bisküvi Export Markets and Opportunities

Turkish biscuit exports have experienced
significant growth due to modernization
of production facilities;

Ülker Bisküvi exports accounted for
approximately 22% of net revenue in
2009 and 18% in 2010;

Of the total exported biscuits from
Turkey, sweet and sugar-added biscuits
are the majority export items
commanding 58.2% of the total export
volumes in 20091;

Ülker Bisküvi’s top export countries
are Saudi Arabia, Iraq, Germany, UAE,
the US, Yemen and Senegal,

Biscuit exports were valued at USD
$229.1 million in 2009;
Export Share in Total Ülker Bisküvi's Net Sales
25%
20%

Accelerated export quantities are based
on demand and targeted to the Middle
East, CIS, Eastern European and North
African countries;
15%
10%
18%
22%
18%
5%
0%
2008
2009
2010
1: Export Promotion Center of Turkey, 2010 Report
18
The Unrivaled Leader in All Categories

Ülker Bisküvi is the undisputed market leader in biscuit sale by value and volume;

Celebrating 66 years of “Happy Moments”;

A well-respected, beloved and a “Top of Mind” brand; and
Category
(2010)
Market Share by
Volume(%)
Market
Position
Plain
38%
#1
Cream Sandwich
50%
#1
Cookie Sandwich
70%
#1
Cookies
65%
#1
Filled
50%
#1
Cracker
47%
#1
Mille-Feuille
100%
#1
Baby Biscuits
55%
#1
Piknik
25%
#1
Health
6%
#2
Diet
44%
#2
Pies
3%
#2
Source: AC Nielsen, February 2011
19
Leadership Position Supported by Innovation

New
Launches
Innovation driven by consumer trends, offering 250 types of biscuits, crackers
and wafers and more
2009
11 New Products
2010
2011 YTD
31 New Products
6 New Products
20
Board of Directors and Management Team
Title
Years of
Experience
Murat Ülker
Chairman of the Board
27
Orhan Özokur
Deputy Chairman of the Board
38
Ali Ülker
Board Member
24
Alain Strasser
Board Member (Independent)
39
Cengiz Solakoğlu
Board Member (Independent)
47
Mahmut Mahir Kuşçulu
Board Member (Independent)
41
Güven Obalı
Board Member (Independent)
44
Dr. Cafer Fındıkoğlu
Vice President of Biscuits & Cakes
30
Dr. İrfan Demiryol
General Manager
26
Bora Yalınay
CFO
14
21
Introduction to Ülker Bisküvi
Turkey and the Biscuits Market
Review of Operations
Financial Overview
Appendix
2010 Consolidated Financial Results Summary
Net Sales
(in TL MM)
2.000
1.500
1.000
1,506
1,524
1.156
1.168
1.248
256
339
275
1,412
Net sales increase 1.1%, to TL 1.524 MM in
2010

While domestic sales increased by 6.9% in
2010, export sales decreased by 18.7%

Over the history of 66 years, Ülker Bisküvi has
successfully maintained its market share of
around 50%

EBITDA decreased to TL 67 MM in 2010,
compared to TL 144 MM in 2009

EBITDA margin was 4.4% in 2010 compared to
9.5% in 2009

TL 191 MM of net profit has been realized in
2010, compared to a net profit of TL 120 MM
in 2009, corresponding c.60% y-o-y growth
rate
500
0
2008
2009
Domestic Sales
144
150
100
2010
Export Sales
EBITDA
200
(in TL MM)

95
67
50
0
2008
2009
2010
Net Profit
(in TL MM)
250
191
200
120
150
100
50
19
0
2008
2009
2010
23
Full Year 2010 Sales Summary
Net Sales
1.600
1.506

Ülker Bisküvi’s net sales grew 1.1% in
2010

Domestic sales grew 6.9% while the
export sales decreased by TL 63 MM
compared to 2009 levels

Lower export sales is mainly due to the
currency exchange rate differences and
restructuring of international
operations.
1.524
1.400
1.200
(in TL MM)
1.000
1.168
1.248
800
Domestic Sales
Export Sales
600
400
200
339
275
2009
2010
0
24
Sustainable Gross Margins
Gross Profits
400
Stable revenue growth coupled with
increasing raw material prices adversely
affected gross margins

Cost of goods sold in 2010 was TL 1,193
MM as compared to TL 1,128 MM in 2009,
corresponding an increase of 5.8%.
379
330
350
300
(in TL MM)

250
200
150
100
50
0
2009
Gross Margin
25.1%
2010
21.7%
25
EBITDA Analysis
160

EBITDA
144
 While net sales increased by 1.1% and
140
cost of sales increased by 5.8%, product
prices remained flat
120
(in TL MM)
EBITDA margin decreased to 4.4% in 2010
100

80
67
60
EBITDA margin was also affected by
marketing investments and the increase of
overhead costs
40
20
0
EBITDA
Margin
2009
2010
9.5%
4.4%
26
Balance Sheet Highlights
(in TL MM)
Current Assets
2008
2009
2010
1,121
1,486
1,512
Non-current Assets
913
1,243
1,374
Current Liabilities
901
1.254
792
Non-current Liabilities
377
289
567
Shareholders Equity
756
1,187
1,527
Total Financial Liabilities
828
782
959
- Short-Term
484
540
451
- Long-Term
345
241
508
Return on Equity
3%
10%
13%
Net Debt
201
64
48
EPS (TL)
0.06
0.38
0.69
27
Introduction to Ülker Bisküvi
Turkey and the Biscuits Market
Review of Operations
Financial Overview
Appendix
Income Statement
(in TL MM)
Sales Revenue
Cost of Sales
GROSS PROFIT
2008
1,412
(1,106)
306
2009
1,506
(1,128)
379
2010
1,524
(1,193)
330
(182)
(200)
(228)
(52)
(65)
(61)
Research and Development Expenses
(1)
(1)
(1)
Other Operating Income
30
37
30
Other Operating Expense
OPERATING PROFIT
Share in net profit of investments accounted for under equity
method
(4)
97
(3)
147
(11)
58
(15)
(3)
(14)
Finance Income
246
239
415
(304)
24
(237)
145
(235)
224
Tax Charge from Continued Operations
(4)
(26)
(32)
Current Tax Charge
Deferred tax (charge) / benefit
PROFIT FOR THE PERIOD
(4)
0
19
(26)
1
120
(37)
5
191
Marketing, Sales and Distribution Expenses
General Administration Expenses
Finance Expenses
PROFIT BEFORE TAXATION
29
Balance Sheet
ASSETS (in TL MM)
2008
2009
2010
Current Assets
Cash and Cash Equivalents
Financial Assets
Trade Receivables
- Trade Receivables from related Parties
- Other Trade Receivables
Other Receivables
- Non-trade Receivables
- Other short-term Receivables
Inventories
Other Current Assets
1,121
154
0.8
1,486
279
0.9
1.512
617
3
89
140
106
189
145
206
538
15
141
43
706
15
161
30
318
30
141
53
913
0.3
0.1
350
257
285
2
2
7
10
1.243
0.9
0.1
684
249
293
6
2
1
8
1.374
0,1
0,1
816
238
300
0,6
2
8
10
2,034
2,729
2.886
Non-Current Assets
Trade Receivables
Other Receivables
Financial Assets
Investments accounted fro under equity method
Tangible Assets
Intangible Assets
Goodwill
Deferred tax assets
Other non-current assets
TOTAL ASSETS
30
Balance Sheet
LIABILITIES (in TL MM)
2008
2009
2010
Current Liabilities
Financial Liabilities
Other Financial liabilities
Trade Payables
- Trade payables to related parties
- Other trade payables
Other payables
- Non-trade payables from related parties
- Other short term payables
Corporate tax payables
Provisions
Provisions for employee benefits
Other current liabilities
901
484
0,8
1.254
540
8
792
451
6
223
69
355
74
173
91
66
43
0
2
7
7
168
81
8
2
11
6
24
7
20
2
10
7
Non Current Liabilities
Financial Liabilities
Provisions for employee benefits
Deferred tax liabilities
Other trade payables
377
345
4
29
-
289
241
6
41
-
567
508
8
49
1
SHAREHOLDERS' EQUITY
756
1.187
1.527
Total equity attributable to equity holders' of parent
Share capital
Inflation adjustments to share capital
Valuation funds
Restricted reserves appropriated from profits
Currency translation reserve
Retained earnings
Net profit for the period
Minority interest
708
269
108
126
29
34
127
16
48
1.126
269
108
446
30
31
139
103
61
1.459
269
108
610
36
35
216
185
68
2,034
2,729
2,886
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
31
Improvement on Net Debt Position
(in TL MM)
2008
2009
2010
- Short-Term
484
540
451
- Long-Term
345
241
508
Total Financial Liabilities
828
881
959
Inter-company Receivables
538
706
318
66
168
24
Inter-Company Net
473
538
294
Cash and Cash Equivalents
154
279
617
Net Debt
201
64
48
Inter-company Payables
32
BİSKÜVİ SANAYİ A.Ş.
Yıldız Holding A.Ş.
Kısıklı Mahallesi Ferah Caddesi
No:1 34692 B.
Çamlıca / Üsküdar / İstanbul
+ 90 (216) 524 24 95
For more information, please contact us + 90 (216) 524 23 02, or email us at [email protected]
www.ulkerbiskuvi.com.tr
33