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Istanbul Stock Exchange: BRISA www.brisa.com.tr
2014 Q2 BULLETIN
-6%
2%
YOY GROWTH (H1 14’ – H1 13’)*
-3%
BRISA – 2014 H1 DOMESTIC MARKETS Market Developments
Car sales in domestic market contracted by 25%, especially due to higher interest rates and increase in consumption taxes.
OEM production in line with last year, thanks to strong export.
Brisa improved product mix which contributes to profit
positively. Brisa was accepted to supply tyres to Tofaş for new Linea
starting in 2015. Technical negotiations commence officially. Honda announced that the new Civic will be produced in
Turkey starting in 2016.
Brisa started selling its third brand tyres, “Dayton” ,which is positioned as budget brand. Brand is a Bridgestone sub-brand, which is imported from Bridgestone Bari plant in Italy.
Brisa started a strategic partnership with the “Speedy” fast-
fit stores and “Lastik Vs.” tyre sales points, where Brisa tyres will be sold in more than 200 new points.
Replacement
Market
Original Equipment
Brisa Market Brisa
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thanks to the high growth in OE commercial tyres market and higher performance of Brisa in this market.
However Brisa sales in tonnage terms;
0.2%
1%
20%
Replacement OE
BRISA – 2014 Q2 EXPORT MARKETS
Key Market Developments
Consumer and light commercial vehicle sales increased by 4% globally, mainly thanks to USA, China, India and Western European markets.
In Europe, especially in England, rise on consumer confidence index leads consumer and commercial tyre
quantities to increase. In Europe, passenger car sales grew by 6.8%, commercial vehicle sales grew by 9.1%.
Compared to 2013 H1, as European tyre market grows by 8%, Brisa exports increased by nearly 20%. Brisa has increased the sales share of more profitable products in strategic markets.
Sales to Ukraine and Libya are slightly behind 2013 due to political unrest.
Despite the situation in Iraq, Libya, Iran and Ukraine, the H1 realisation in non-EU region is higher than
expectations. The new opportunities are being sought in the CIS and Africa regions. Compared to the previous year, the strategic 15” and 16” mix groups have developed by 2% in the overall
non-EU sales. Market penetration in Balkans& Baltics grows, where previously Lassa presence was limited.
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2013 Q2 2014 Q2
86 88
Net sales
2013 Q2 2014 Q2
2,245 2,410
Quantity
2013 Q2 2014 Q2
1,014 1,134
Quantity
2013 Q2 2014 Q2
818 834
Quantity
2013 Q2 2014 Q2
5170
Net sales
2013 Q2 2014 Q2
413 442
Quantity
2013 Q2 2014 Q2
29 30
Net Profit
2013 Q2 2014 Q2
66 73
EBITDA
2013 Q2 2014 Q2
210 232
Net sales
2013 Q2 2014 Q2
46 48
EBIT
2013 Q2 2014 Q2
357398
Net sales
2013 Q2 2014 Q2
90110
Gross Profit
QUARTERLY
Replacement OE Export
SALES CHANNEL BREAKDOWN
TOTAL SALES & PROFITABILITY
Key highlights
As the quantity increases by 7% in OE channel, net sales increased by 36% due to improved mix and rise on tonnage of commercial tires.
Despite the contraction in the market, Brisa Replacement channel sales grew by 2%.
Due to increase in fx rates and also decrease in raw material(RM) prices, export market performance improved.
FX hikes, hedged with forward transactions on the cost side, contributed to domestic channels profitability.
Sales Quantity: K units Financial Indicators: M TL
4
12% 10%
7% 36%
2% 2%
7% 12%
12%
23%
4% 5%
2013 1H 2014 1H
1,907 1,939
Quantity
2013 1H 2014 1H
120161
EBITDA
2013 1H 2014 1H
5580
Net Profit
2013 1H 2014 1H
86120
EBIT
2013 1H 2014 1H
173231
Gross Profit
2013 1H 2014 1H
4,398 4,749
Quantity
2013 1H 2014 1H
676787
Net sales
2013 1H 2014 1H
171217
Net sales
2013 1H 2014 1H
406 439
Net sales
2013 1H 2014 1H
99131
Net sales
2013 1H 2014 1H
801 806
Quantity
2014 H1
Replacement OE Export
SALES CHANNEL BREAKDOWN
TOTAL SALES & PROFITABILITY
Sales Quantity: K units Financial Indicators: M TL
5
2%
8%
1% 32%
19%
27%
8% 16%
34% 34%
41% 47%
Strong quantity growth, especially driven by export channels, together with lower RM prices, leads to profit growth. Growth in export markets via high potential countries, new countries and customers.
Key highlights
2013 1H 2014 1H
1,690 2,004
Quantity
BRISA – 2014 H1
Hedging Policy
In principle, no FX position is carried on Balance Sheet. FX receivables and FX payables are neutrally matched.
With regards to cash flow FX position; a systematic hedging policy is implemented to mitigate the impact of FX volatility and thereby the impact on P/L.
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USD EURO
NET POSITION 2.7 (6.1)
BALANCE SHEET POSITION 2014
(Million in own Currency)
INCOME STATEMENT
(000 TL)2014 1H 2013 1H %
Net Sales Revenue 786,997 675,858 16%
Gross Profit 231,587 172,600 34%
29.4% 25.5%
EBITDA 161,374 120,067 34%
20.5% 17.8%
EBIT 120,347 85,620 41%
15.3% 12.7%
Net Profit 80,617 54,729 47%
10.2% 8.1%
BALANCE SHEET
(000 TL)
30
June
2014
31
December
2013
%
Cash 9,608 7,968 21%
Trade Receivables 435,288 454,204 -4%
Inventory 289,113 281,134 3%
Fixed Assets 553,560 536,617 3%
Other 122,255 125,502 -3%
Assets 1,409,825 1,405,425 0%
Bank Borrowings 628,995 581,750 8%
Trade Payables 165,843 190,324 -13%
Other 121,598 64,905 87%
Shareholders Equity 493,389 568,446 15%
Liabilities 1,409,825 1,405,425 0%Cash Flow (000 TL)2014
1H
2013
1H
EBITDA 161,374 120,067
Change in Net Working Capital (13,621) 5,498
Operational Cash Flow 147,753 125,565
Investment (64,745) (35,829)
Free Cash Flow 83,008 89,736
Dividend (126,892) (77,742)
Credit undertaken (Paid Back) 46,944 (14,500)
Financial expenses (11,907) (11,384)
Tax / Other 10,487 9,490
Beginning Balance 7,968 11,569
Ending Balance 9,608 7,169
BRISA – LAST 5 YEARS PERFORMANCE
QUANTITY K Units
8,020
9,311 9,557
9,074
9,526
2009 2010 2011 2012 2013Net Sales M TL
776
980
1,348 1,424 1,489
2009 2010 2011 2012 2013
Net Profit M TL
39
57 72
95
144
2009 2010 2011 2012 2013
Gross Profit M TL
160
203
256
325
391
2009 2010 2011 2012 2013
21% 21%19%
23% 26%
EBITDA M TL
117 134
187
231
284
2009 2010 2011 2012 2013
15%14% 14%
16%19%
EBIT M TL
60 76
124
161
205
2009 2010 2011 2012 2013
8% 8%9%
11%
14%
5%6% 5%
7%
10%
: Margin %
7
BRISA – SHARE PERFORMANCE (YOY)
Jan 2, 2014 =100 June 30, 2014
8
82.0
86.0
90.0
94.0
98.0
102.0
106.0
110.0
114.0
118.0
122.0
126.0
130.0
134.0
138.0
142.0
146.0
150.0
BRISA XU100 XUSIN
148
115
116
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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