brisa investor presentation 2014
TRANSCRIPT
Investor Presentation
Istanbul Stock Exchange: BRISA www.brisa.com.tr
TURKISH TYRE MARKET GROWING FASTER THAN WORLD AVERAGE BRISA IS THE MARKET LEADER WITH TWO BRANDS
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Current
2013 TR Replacement Tyre Market (Quantity)* Turkish Tyre Market (k units)
•Brisa leads the market with two brands: Lassa&Bridgestone. • Out of total tyre production of 27,5 mn in TR :
13,5 mn is sold domestically; in addition 6,8 mn is imported for domestic sales
14 million is exported • Between 2005 and 2013 CAGR is 5.2%
(World average is 2.6%)
New project
*Brisa estimates
5,2% CAGR
BRİSA; 30,5%
COMPETITOR; 16,2%
COMPETITOR; 10,4%
COMPETITOR; 11,5%
Others; 31,4%
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CAR DENSITY IS A MAJOR INDICATOR FOR GROWTH POTENTIAL
Mn
NEW CAR REGISTRATIONS
Passenger Car
Total Growth
2003 227.276
2004 451.209 99%
2005 438.597 -3%
2006 373.219 -15%
2007 357.465 -4%
2008 305.998 -14%
2009 369.819 21%
2010 509.784 38%
2011 593.519 16%
2012 556.280 -6%
2013 664.655 19%
VEHICLE PARK
604 598 546 530 508 495 483 481 481 477 469 444
297 212
120
0100200300400500600700
PASSENGER CAR / 1000 people ( 2013 est.)
*TB : Truck and Bus *LT: Light Truck *AG : Agricultural *PSR: Passenger Radial
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4
6
8
10
12
14
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
PSR LT TB AG Total
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RIM SIZES TEND TOWARDS HIGHER INCHES VEHICLE PARK IS EXPANDING
*TB : Truck and Bus *LT: Light Truck *AG : Agricultural *PSR: Passenger Radial *UHP: Ultra High Performance *RFT: Run Flat Tyre * OOGATA : 16 inch rim size PSR 13 stands for, PSR tyre with 13 inch rim size
Rim Popularity in New Registered Vehicles btw. 2006 - 2013
6.8
30.7
38.7
9.5
3.1
11.3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2006 2007 2008 2009 2010 2011 2012 2013
PSR 13
PSR 14
PSR 15
PSR 16
UHP
RFT
4x4
BRISA AT A GLANCE
Turkey’s leading tyre manufacturer and market leader
7th largest tyre producer in Europe
37th largest tyre producer in the world 11 brands: LASSA, BRIDGESTONE, OTOPRATİK, PROPRATİK, PROFLEET, MOBİLFIX, FİLOFİX, BANDAG, LASTİĞİM, LASTİK.COM.TR, DAYTON. 2013 Net Sales: USD 800 Million Plant’s Covered area: 361,000 m2
Total Employees: 2,187
Point of Sales: 930
Total capacity: 11mn tyres
Exporting all over the world: 5 continents, 60 countries
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43.63%43.63%
10.11% 2.63%
SHAREHOLDER STRUCTURE
BridgestoneCorporation
Sabancı Group
Free Float
Others
PRODUCT RANGE
Passenger
Light Truck and
Commercial Vehicle
Truck and Bus
Agricultural Motorcycle Off the road Other
SALES CHANNEL
REPLACEMENT
•Dealer •Fast-fits •Fleet •OE Plaza •Key accounts •Customer Service •Mobile Service •Fleet Solutions •Retread
ORIGINAL
EQUIPMENT
•Vehicle Manufacturers •Technical properties determined together with the customer
•Technical complexity
INTERNATIONAL SALES
•60 Country •80Distributors
MAIN BRANDS
OUR BUSINESS INCLUDES B2B, B2C AND EXPORT WITH A DIVERSIFIED CUSTOMER BASE
HP
UHP
RFT
4*4
Winter
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60% of sales ($500 mn)
15% of sales ($100 mn)
25% of sales ($200 mn)
• Forwarding to all cities • %100 Land Transport • Over 3,000 destination
BRISA FULLY COVERS TURKISH DOMESTIC MARKET
NOT ONLY FOR SELLING TYRES, BUT ALSO FOR PROVIDING SERVICE
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POINT OF SALES FLEET APPROACH IN COMMERCIAL TYRES # of Dealers Selling TBR to fleets : 280 # of Reached Fleets Through Dealers in a Year: 8,000 # of Total Fleets in TR : 12,000
998
Direct Dealers Sub-Dealers
485
34 478 1
513
LASSA/BRIDGESTONE OTOPRATİK PROPRATİK LASTİĞİM
BRISA HAS THE HIGHEST(*) MARKET SHARE IN SALES TO OEMS
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• Market leader in OEM companies by 30% market share on average • New production shifts to Turkey leading to OEM tyre market growth
*Brisa estimate
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STRATEGY SETTING WITH TWO BRANDS
“Safety Tyre” Image Campaign
Image campaign based on “Durability”
Premium Positioning
Mid range Positioning
102 96120
157 144 136
0
20
40
60
80
100
120
140
160
180
2008 2009 2010 2011 2012 2013
GROWING FURTHER IN EXPORT MARKETS
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• Over 60 Countries
• 5000 sales points with 80 distributors
• Profitable growth in international sales by mix management (product & country)
• Growth via high potential countries, new countries/customers
• Balanced customer portfolio (currency effect)
• 33% increase in sales between 2008 and 2013
• New export markets in 2011, 2012 and 2013
• Constitutes %20 of total Brisa sales (2013)
Lassa Export (mn USD)
Lassa sold countries
MARKETING ACTIVITIES IN INTERNATIONAL BUSINESS
Currently 100 shops in more than 21 countries
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Official sponsorships
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.
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20
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35.3
51.4
71.2
12 2
01
3
77.7
* 100% of distributable profit is paid as dividend in all years
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126.8
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SECOND PLANT INVESTMENT
• Around $300mn of investment
• Construction starts in 2015, production starts in 2018
• Max. capacity reached in 2023
• 4,2 million of tyre production at max. capacity (Assigned land (960K m2) enables further expansion in the future)
• 520 employees at max. capacity
• PSR-LT focused production for replacement and Lassa export market
• Building area of 120,000 m2
• Under ‘Big Projects’ Incentive Scheme; 60% tax incentive.
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WHY INVEST IN BRISA... Fast growing market: • Increasing capacity of automotive manufacturers • Continued growth potential in the domestic market due to aged vehicle park.
Further expansion with second plant
Access to new export markets
Strong brands, likely to benefit more strongly from growth
Focus on channel management and end-customer to secure and increase profitability
Diversified channel and customer portfolio
Continued leadership in market share, new products and services
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.
THANK YOU…
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Contacts: Bora Çermikli Chief Financial Officer
+90 (262) 316 56 00 [email protected]
Reşat Oruç Budget and Finance Manager +90 (262) 316 57 00
[email protected] 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.
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