Brisa Sunum 2016_F_27
Transcription
Brisa Sunum 2016_F_27
brisa.com.tr INVESTOR PRESENTATION 2016 1 WHY BRISA IS A GREAT COMPANY TO INVEST 1 2 3 4 • Fast growing market: o Increasing capacity and new investments of automotive manufacturers o Continued growth potential in the domestic market • Continued leadership in the market o Strong brands o Strong & loyal sales network o Balanced channel and customer portfolio • Potential to grow internationally • Further expansion with second plant TURKEY VEHICLE PRODUCTION & SALES VEHICLE PRODUCTION * Thousand vehicles 2005-2015 CAGR : 4,2% ** *PC: Passenger Car **LCV: Light Commercial Vehicle VEHICLE SALES 2005-2015 CAGR : 2,9% Thousand vehicles • Record sales & production in 2015 • Turkey is becoming a manufacturing hub • Sustained strong sales expand the pool SOURCE: OSD 2 VEHICLE DENSITY IS THE MAJOR INDICATOR FOR GROWTH POTENTIAL OF TYRE MARKET Vehicle Pool 16,0 6,3% CAGR Mn Units 14,0 12,0 10,0 8,0 7,8 6,1 6,3 6,4 8,4 9,1 9,7 10,2 10,6 11,3 12,1 12,8 13,6 14,3 15,3 HCV LCV Car 6,6 6,0 *HCV : Heavy Commercial Vehicle (Bus, truck & work machinery) *LCV: Light Commercial Vehicle (Minibus, small truck) 4,0 2,0 0,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • High new vehicle entrance – growing vehicle pool (from 15 M to 20 M in 5 years; CAGR 5,6%) 3 PASSENGER CAR OWNERSHIP IS LOW COMPARED WITH PEERS Passenger Car / 1000 people* 621 542 539 512 487 486 476 472 465 464 448 EU average: 487 385 301 224 127 Older PC fleet compared to EU +21 0-5 Average Age 12 years 16-20 11-15 EU 6-10 ~ 9,5 years * (2014 est.) • Low auto scrapping, high enterance drives the pool 4 RIM SIZES TEND TOWARDS HIGHER INCHES DRIVING REVENUE AND PROFITABILITY Rim popularity in new registered vehicles btw. 2006 - 2015 *UHP: Ultra High Performance *TB: Truck and Bus *RFT: Run Flat Tyre *LT: Light Truck *AG: Agricultural *PSR: Passenger Radial (PSR 13 stands for PSR tyre with 13 inch rim size) 5 TYRE MARKET IN TURKEY GROWING FASTER THAN WORLD AVERAGE In Turkey; Total Tyre Market Average Growth: 7,3% (World Average: 4,3%) OE Tyre Market Average Growth: 7,8% (World Average: 5,8%) Replacement Tyre Market Average Growth: 7,1 % (World Average: 3,8%) Million tyres 7,3% CAGR 22.1 20,3 17,3 18,8 20,2 18,1 14,5 2015 Market 22,1 million units 2015 TR 7% growth 2020 Market Forecast: 29,3 million units Total Demand 2015 World 1% growth 6 BRISA-THE MARKET LEADER AT A GLANCE • TWO STRONG PARTNERS: BRIDGESTONE CORPORATION & SABANCI GROUP • 27 YEARS OF PARTNERSHIP SHAREHOLDER STRUCTURE Core Business Tyre Manufacturing & Sales Plant Established: 1974 Covered area: 361.000 m 2 Employees: 2.600 Production volume: 11 m units Financials Net Sales: 1.803 Million TL (2015) Net Profit: 192 Millon TL (2015) • Turkey’s leading tyre manufacturer and market leader: 33% market share • 7th largest tyre producer in Europe • 70 countries, with 80 distributors,through 5000 sales points of which more than 130 are under Lassa signboard 7 BALANCED PORTFOLIO WITH B2B, B2C AND EXPORT WITH A DIVERSIFIED CUSTOMER BASE MAIN BRANDS PRODUCT RANGE Light Truck and Commercial Vehicle Passenger Truck and Bus Agricultural Motorcycle Off the road SALES CHANNELS 60 % OF SALES HP UHP RFT 4X4 WINTER CONSUMER REPLACEMENT • • • • Dealer Fast-fits Fleet OE Plaza • • • • Key accounts Retail e-Commerce Customer Service COMMERCIAL REPLACEMENT • Customer Service • Fleet Solutions • Mobile Service • Retread • Retail 15% OF SALES 25 % OF SALES ORIGINAL EQUIPMENT INTERNATIONAL SALES • Vehicle Manufacturers • Technical properties determined together with the customer • Technical complexity LASSA • 70 Country • 80 Distributors BRIDGESTONE OFF-TAKE 8 9 BRISA IS THE MARKET LEADER REPLACEMENT MARKET SHARE* New project Current • Industry capacity utilization > 80% • Out of total tyre production of 27.5 mn in TR 13 mn is sold domestically, ≈9 mn is imported for domestic sales 14.5 million is exported *: Brisa estimation 10 COMMERCIAL PLATFORM OF BRISA: AN EXAMPLE Customer Value Propositions are designed in 5 key blocks to ensure a structured and specialized approach to fleets STRONGEST DEALER NETWORK IN TURKEY A KEY COMPETITIVE ADVANTAGE INCREASING GEOGRAPHIC COVERAGE IS A PRIORITY POINT OF SALES 1276 SUB DEALER (lastigim) 575 Speedy & Lastik Vs 138 OTOPRATIK 38 LASSA / BRIDGESTONE 521 PROPRATIK 4 11 12 STRONG BRANDS “Safety Tyre” • Bridgestone is known as the safe and trustworthy brand • Bridgestone brand awareness is now 72% with an increase of 14% in 5 years at “the Total Spontaneous Brand Awareness” category “Durability & Strength” • According to the User Behaviors Research, Lassa is the leader at the positionings: “The Closest Brand to me,” “The brand that I trust,” “The brand that I am proud to use.” • Lassa is the brand leader with 50% increase in 5 years on “the first brand to remember” category Base: Total Base 2015 (n: 1801); 2010 (n:1245) “New Product for Fighting Segment” 13 FURTHER INTERNATIONAL EXPANSION OPPORTUNITY Export (mn USD) • 70 Countries, 80 business partners • Continuous increase in the number of Lassa branded shops->130 Lassa shops • Profitable growth in international sales by mix management (product & country) • Growth via high potential countries, new countries/customers • Balanced customer portfolio (currency effect) • New export markets between 2011-2015 constitutes 19% of total Brisa sales (2015) LASSA MARKETS MARKETING ACTIVITIES IN INTERNATIONAL BUSINESS 14 On its way to be a global brand Currently 130 Lassa branded stores Official sponsorships • Lassa signed a contract with FC Barcelona to be “Global Official Tyre Partner” until the end of 2018-2019 season • The indoor teams (basketball, handball, futsal and roller hockey) are officially named “FC Barcelona Lassa” • Turkey’s national football player Arda Turan became “Lassa Brand Ambassador” until July 2017 15 INVESTMENT IN SECOND PLANT İstanbul İzmit Ankara Aksaray • • • • • • • • $300mn of investment Construction already started, production starts late 2017 Max. capacity will be reached in the 3 rd quarter of 2022 4,2 million of tyre production at max. capacity [Assigned land (960K m 2) enables further expansion in the future] Building area of 120,000 m 2 PSR-LT* focused production for replacement and Lassa export market Under ‘Big Projects’ Incentive Scheme; 60% tax incentive; 2pp contribution to net income margin 520 employees at max. capacity *PSR: Passenger radial LT: Light truck 16 WHY INVEST IN BRISA... • High market potential • Brisa Differentiation: > Strong market positioning > Strong brands > Strong network > Balanced portfolio • Access to new export markets • Further expansion with second plant PROVEN TRACK RECORD IN FINANCIAL PERFORMANCE LAST 7 YEARS PERFORMANCE : Margin % 17 18 PROVEN TRACK RECORD IN FINANCIAL PERFORMANCE DIVIDEND POLICY In principle; • In accordance with our dividend policy, Brisa pays at least 30% of the distributable profit to shareholders as dividend However; • In the past, in general 100% dividend was distributed 161.2 126.8 35% CAGR 77.7 71.2 51.4 35.3 2010 2011 2012 2013 2014 2015 BRISA INVESTOR BULLETIN 2015 Q4 REPLACEMENT MARKET – 60% OF BRISA’S REVENUE • Vehicle sales grow strongly: continuous replacement tire market increase in coming years • Green winter and market saturation are the main reasons for decline in Brisa winter tyre sales and the consumer market in Q4 • Significant growth going on for commercial market (11,5%) in Q4. Euro6 transition defers vehicle sales and increases tyre sales 20 OE MARKET – 15% OF BRISA’S REVENUE • Strong vehicle production increase, especially in LCV in Q4 with high demand both from Europe and Turkey • Brisa sales decrease due to postponement of some model launches to 2016 and lower sales to Russian market 21 EXPORT MARKET – 25% OF BRISA’S REVENUE • Despite the regulatory obstacles in Egypt and Libya, higher growth in the ME is realized • Political problems with Russia affected Q4 results. The overall CIS region sales show slight recovery in Q4 • Lassa branded export grew by 8,9% in Europe in 2015; whereas market grew by only 1,8% 22 TOTAL SALES AND REVENUE BREAKDOWN 23 24 INCOME STATEMENT • Standalone Q4’s performance is much better than the period Q3 in GM level (Q4:%35.9 – Q3:%30.8) • Compared to previous year same period, negative effect of stronger dollar rate on costs and lower parity level on gross margins offset with FX hedging transactions • Lower raw material prices, better sales mix and positive effect of hedging transactions contributed to the GM% 25 BALANCE SHEET 26 FINANCIAL DEBT *13m TL for Aksaray plant investment **106m TL for Aksaray plant investment 27 CASH FLOW AND CAPEX • Total 522 mn USD investment in the last 8 years • 192 mn USD of this amount is only capacity related • Other investment mainly consists of maintenance capex at the plant including efficiency improvement projects, environmental investment, IT investments and investment to sales points/dealers brisa.com.tr Disclaimer Statement The information and opinions contained in this document have been compiled or arrived at by Brisa from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Company’s judgement as of the date of this document and are subject to change without notice. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.