About the Acquisition of Shares of Subsidiaries of … · Subsidiaries of Turkish Manufacturer...
Transcript of About the Acquisition of Shares of Subsidiaries of … · Subsidiaries of Turkish Manufacturer...
Next StageChallenge
About the Acquisition of Shares of Three Beverage Manufacturing
Subsidiaries of Turkish Manufacturer Yildiz Holding A.Ş. by DyDo DRINCO
DyDo DRINCO, Incorporated
September 24, 2015
(First Section of the Tokyo Stock Exchange: 2590)
<The presentation materials>
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
• Turkey has the largest market of any country in the Middle East.
GDP of countries in the EU, Middle East, and North Africa
2
Size of the Turkish market
(Unit: USD 1 million)
0
1,000,000
2,000,000
3,000,000
4,000,000
Ger
man
yFr
ance
Uni
ted
Kin
gdom Ita
lyR
ussi
an F
eder
atio
nS
pain
Net
herla
nds
Turk
eyS
audi
Ara
bia
Sw
itzer
land
Sw
eden
Pola
ndB
elgi
umN
orw
ayAu
stria
Uni
ted
Ara
b E
mira
tes
Den
mar
kIs
rael
Finl
and
Egy
ptG
reec
eIre
land
Por
tuga
lC
zech
Rep
ublic
Alg
eria
Qat
arIra
qR
oman
iaU
krai
neK
uwai
tH
unga
ryM
oroc
coS
lova
kia
Om
anLi
bya
Aze
rbai
jan
Bel
arus
Luxe
mbo
urg
Cro
atia
Sud
anB
ulga
riaS
love
nia
Leba
non
Tuni
sia
Lith
uani
aS
erbi
aS
yria
n A
rab
Rep
ublic
Yem
enJo
rdan
Bah
rain
Turkey’s economy is second only to that of Europe’s economic powerhouses, and it is the largest in the Middle East.
Source: Compiled by DyDo DRINCO based on United Nations data.
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
• The Turkish market is growing at one of the fastest rates of any OECD member country.
Nominal GDP growth rates of OECD member countries (2016 outlook)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
India
Turkey
Indo
nesia
Russian Fede
ratio
nSouth Africa
China
Chile
Brazil
Colombia
Mexico
Iceland
Latvia
Estonia
Ireland
Poland
Hungary
Australia
Slovak Rep
ublic
Swed
enKo
rea
Israel
United States
New
Zealand
Luxembo
urg
Canada
Norway
Czech Re
public
Germany
Denm
ark
Spain
Nethe
rland
sUnited Kingdo
mAu
stria
Belgium
Japan
France
Italy
Greece
Portugal
Switzerland
Finland
Sloven
ia
(%)
3
Rate of growth in the Turkish market
Source: Compiled by DyDo DRINCO based on the OECD Economic Outlook.
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
Trend in breakdown of Turkey’s nominal GDP and trend in per capita GDP
4
Breakdown of principal components of Turkey’s GDP
• The principal driver of growth in Turkey’s GDP is rising consumer spending, which accounts for 70% of GDP.
• The proportion of consumer spending is high despite per capita GDP in excess of $10,000.
Left axis: Turkeyʼs nominal GDP(TRY 1million) Right axis: Per capita GDP (USD)
Source: Compiled by DyDo DRINCO based on United Nations data.
0
2,000
4,000
6,000
8,000
10,000
12,000
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net exports
Gross capitalformation
General governmentfinal consumptionexpenditure
Householdconsumptionexpenditure
Per capita GDP
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
• Young people make up a large proportion of the population in Turkey, which can be expected to exhibit additional growth in the future. The average age is about 30 years (Japan: about 47 years). The population is expected to increase by an average of at least 500,000 people per year
(from 2015 to 2040). Production-age people (age 15 to 64 years) make up a large proportion of the total population. Participation of women in the labor force is rising (at an annual rate of 3.7% [averaged over
the last 5 years]).
Population by gender and age in 2014Trend in population by age group
(including outlook)
5
Turkey’s population
Source: Compiled by DyDo DRINCO based on United Nations data.
0~45~9
10~1415~1920~2425~2930~3435~3940~4445~4950~5455~5960~6465~6970~7475~7980~8485~8990~9495~99
100+
Mail Female
4 3 2 1 4321(millions of people)
0
1
2
3
4
5
6
7
8
9
10Populationof seniorcitizens(65 andover) (leftaxis)
Populationofproduction-age people(15 to 64)(left axis)
Populationof youth (0to 14) (leftaxis)
Source: Compiled by DyDo DRINCO based on United Nations data.
(Tens of millions of people)
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
• Turkey’s beverage market can be expected to continue to grow thanks to support from growth in the larger Turkish market.The beverage market has grown at an average annual rate of 2.3% over the last
five years.The beverage market as a whole is expected to grow at an annual rate of at
least 1.9% over the next five years.
TL 2.6 BN, 39%
TL 3.0 BN, 46%
TL 1.0 BN, 15%
CSD*
Water
Juice
Size of Turkey’s beverage market (billions of TRY)
Size of the CSD market (millions of liters) Size of the water market (millions of liters)
Size of the fruit juice market (millions of liters)
6
Growth in Turkey’s beverage market
*Carbonated Soft Drinks
Source: Compiled by DyDo DRINCO based on data provided by Yildiz.
Next StageChallenge
2. Yildiz Holding A.Ş. and Its Beverage Manufacturing
Subsidiaries and Beverage Brands
7
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
Note: Calculated based on exchange rates as of September 18 (TRY 1 = JPY 39.86, GBP1 = JPY 186.66).Sources: Ulker FY2014 Annual Report, United Biscuits Group Accounts 2014, media coverage of Yildiz’s purchase of Godiva
Net sales of ¥221.6 billion(FY2014) Listed on the
London Stock Exchange and part of the FTSE 100 Index Purchased by Yildiz in
November 2014
Purchased by Yildiz in November 2007
Turkey’s largest food products manufacturer with group Core business of sweets such as cookies and chocolates
Expanding its business globally by means of an active M&A program
Turkey’s largest manufacturer of sweets and candy with net sales of
¥115.2 billion(Listed on the Istanbul Stock
Exchange)
Beveragebusiness
Broad range of brands with CSD, water, and
juice products
In addition, Yildiz has group companies that are involved in a
broad range of businesses, including containers and
packaging, gum, real estate, frozen foods, and IT.
Target b
usin
ess
Overview of Yildiz
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
Della Gıda Sanayi ve Ticaret A.Ş.
Bahar Su Sanayi ve Ticaret A.Ş.
İlk Mevsim MeyveSuları Pazarlama A.Ş.
Business Manufacture of carbonated soft drinks and bottled mineral water
Manufacture of bottled sparkling mineral water
Manufacture of fruit juice
Net sales TRY 181,154,000 TRY 18,409,000 TRY 134,939,000
Operating income
TRY 3,861,000 TRY 687,000 TRY 5,480,000
Brands Cola Turka, Çamlıca,Saka Su, Sunny, Maltana
Eskipazar, Flores Link
Target beverage manufacturing subsidiaries and the brands they deal with
*Net sales and operating income figures reflect business results for the fiscal year ended December 2014.
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
• The companies whose businesses are being transferred have a strong line of brands fronted by Camlica, one of Turkey’s leading beverage brands.
• By adding coffee, tea, energy drinks, and other products made possible by its product development capabilities, DyDo will complement and expand the acquired companies’ product lines.
Visualization of future brand lineup
CSD Water Fruit Juice Tea OtherMineral
Sparkling
Flavored
DyDo product line (partial)
Turkey’s top-selling lemon-lime flavored CSD brand
A cola brand that has long been loved by the Turkish people
The most profitable brandA good fit with the trend in Turkey toward healthy living (high pH level)
Low-priced yet highly profitable juice products
Acquired brands
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
11
Future Image of Overseas Deployment
SHANGHAIDyDo DRINCO, INC.
DyDo MY
DyDo Rus
CIS region with Russia as the
hub
290 million people
Chinese region with China (Shanghai) as the
hub
1.38 billion people
Islamic region with
Malaysia as the hub
1.6 billion people Make shipments from overseas in
the future
Expand into the CIS region with Russia as the hub; the Islamic region with Malaysia as the hub; the Chinese region with Shanghai as the hub.
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
12
Mid-term Business Plan: “Challenge the Next Stage”
- Four Challenges to the Next Stage -Ex
isti
ng
fie
lds
Domestic Overseas
New
fie
lds
FoodProduction and Sales Division
OEM Beverage
Production Division
Development of new food and health related business
Optimized business results / Improved productivity
(Generate stable cash flow)
Market expansion through overseas business
development
Beverage Sales
Division
Challenge to establish new business foundations Challenge to
grow existing businesses
Challenge to expand overseas
businesses
Challenge to enhance product
strength
Achievement of innovative product development
FY2018Net Sales: 200 billion yenOperating margin: 4.0%
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next StageVisualization of sales breakdown for beverage sales division
13
Domestic Domestic
Overseas
Overseas
75,000
100,000
125,000
150,000
Currently After Turkish consolidation
Visualization of sales breakdown for the beverage sales division(Millions of JPY)
0
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
14
Realizing sustainable growth
Specific corporate philosophy / vision
FY2013 FY2018~~
Challenge
200 billion yen
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
16
Overseas development of DyDo’sbeverage sales division: Russia
Promoting the installation of vending machines in Moscow, Russia
DyDo vending machine inside the Aero Express station from Sheremetyevo International Airport, Russia's second-largest airport, to the central city.
Subway
Gas station
Bus terminal
Train station Cinema
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
・・・
17
・・・・・・
Overseas development of DyDo’sbeverage sales division: Malaysia
Mamee-Double Decker(M) Sdn.
Bhd.
Manufacturing company
MDD BeverageSdn. Bhd.
(MDD Bev)
Sales companiesMilk Specialities
DistributionSdn. Bhd.(MSD)
Pacific Food Products Sdn.
Bhd.
49% equity
Capital participation in the beverages business division of the Malaysian food giant Mamee, making a joint venture company
Business Overview:Manufacture and sale of snacks and confectionery, instant noodles, beverages, and chilled drinks
51% equity
Copyright (C) DyDo DRINCO. All Rights Reserved.
Next Stage
18
Overseas development of DyDo’s food production and sales division: Indonesia
Early AprilPutting on sale three types of Tarami Fruit Market jellies in Indonesia
• Production using factories of our local partner as the first step in overseas market entry
• Aiming at sales of 100 million yen in the first fiscal year
Next StageChallenge
This document includes forward-looking statements. These statements do not guarantee future performance and are subject to risk and uncertainty. Future performance may diverge from planned or anticipated levels due to changes in the business environment and other factors. This document was compiled for the sole purpose of providing information and does not constitute an invitation to participate in any financial transaction.