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TRANSCRIPT
Kılıç PresentationBodrum 2014
Kılıç highlights
Broad product portfolio
Strong and diversified geographic presence
Leading regional aquaculture player with unique scale
1
Vertically integrated and efficient platform with best-in-class operations
2
3
4
Experienced management and
established corporate governance
5Proven track record of delivering top-line growth and profitability
6
Well-defined and executable growth strategy
7
Attractive sector dynamics
8
Processing and packaging facilities
Kiılıç has expanded its operations through new investments and capacity increases by implementing a fully vertically integrated business model
Facilities are located in close proximity to each other, lowering logistics costs and making harvesting and processing flawless
Flow of operations is tracked by the SAP system(1), which was integrated in 2011
Aqua Manager(2) project has been launched and is expected to be up and running by June 2013. Aqua Manager optimizes the cage operations through accurate feeding and monitoring of biomass
In addition to the fleet used in harvesting, Kiılıç owns 3 large sea vessels to transport juveniles to Tunisia and other domestic players Hatchery: 2 months
Adaptation unit: 2 months Cages: 10-18 months (depending on
species)
Suppliers
Fish feed plants
Other aquaculture companies
EPS facility
Larvae feed Fish feed Fish feed EPS boxes
Fish feed
Hatcheries
Other aquaculture companies
Adaptation units Fish farms
Other aquaculture companies
Customers / Distributors
Juveniles
Merchandize fish
Value-addedproductsJuvenile
Sales
Fish feed ingredient suppliers
Fish meal andfish oil
Production span
Notes:1 The modules are: (i) material management, (ii) product planning, (iii) sales and distribution, (iv) financial accounting, (v)
controlling and (vi) human resources2 An integrated ERP for cages, hatcheries and adaptation units
Fresh whole fish
Harvested fish
Kılıc has a vertically integrated business model
3
2
Milas
Didim
Bodrum
Kayseri
K.Maras
GaziantepSanliurfa
executed through best-in-class operations
at multiple locations, minimizing business disruption risk
Bream/BassMeagre Production
Trout ProductionMarine cages
Freshwater hatchery
Marine hatcheries Freshwater cages
Fish feed plants Processing & packaging
Regional sales offices
Headquarters
Start of operations Location Capacity/year (tons) Closed area (sqm)
2005 Milas, Mugla 60,000 5,000
2007 Milas, Mugla 60,000 5,000
Total 120,000 10,000
Two extruder type plants capable of providing all grades of fish feed
Feed production, mostly used for internal operations, ensures quality of feed, gives control and flexibility over managing costs
• Extruder type feed plants, which use ECS(1) and VC(2) production systems, have a total capacity of 120k tons
• Feed plants are located in close proximity to the seabass and seabream facilities in Milas, Bodrum and Didim
• All grades of fish feed are produced by the feed plants for different sizes and needs of fish, except the larvae feed, which is imported
• Soybean meal, fish meal and fish oil are the three major ingredients of fish feed, accounting for c.75% of total feed cost
• The Company mainly procures fish ingredients from Morocco and Peru
• Fish feed prices are affected by the demand and supply of fish feed ingredients. Supply side is mainly influenced by weather conditions and natural disasters(3)
• Prices of fish feed ingredients are denominated in USD
Notes:1 Expansion Control System optimizes the composition and texture of the fish feed to prevent loss of ingredients, when
the feed is in the water2 Vacuum Coating concentrates fat into the inner parts of the feed to prevent loss of fat and contamination of the sea,
when the feed contacts water3 Prices increased to high levels after the earthquake in Chile in 2010
Fish Feed Facilities
Start of operations
Location Hatchery Adaptation Species
Capacity
(mn units)
Other juvenile species production capability
2008 Akarca, Mugla Seabass / Seabream / Meagre
39.0 Turbot
2008 Kahramanmaras Trout 50.0 -
2006 Yasyer, Mugla Seabass / Seabream / Meagre
39.0 -
2006 Guvercinlik, Mugla –Seabass / Seabream
/ Meagre39.5 Singarit, sharpsnout seabream
2004 Bafa, Aydin Seabass / Seabream / Meagre
146.0Striped seabream, mullet, porgy, corb, grouper
1997 Oren, Mugla –Seabass / Seabream
/ Meagre80.0 Porgy, corb, grouper
Total 6 4 393.5
Hatcheries and adaptation units in multiple locations minimize business disruption risk
Substantial juvenile production and sales to other aquaculture companies result in visibility on the market and accurate planning, control over production, quality control and higher profitability
• 5 hatcheries of Kilic Deniz for marine species, 3 of which are also equipped with adaptation units, have total juvenile capacity of 343.5 mn units in seabass, seabream and meagre
• 1 freshwater hatchery with an integrated adaptation unit, located in Kahramanmaras, has a trout juvenile capacity of 50 mn units
• Bafa hatchery and adaptation unit, which accounts for 37.1% of total juvenile production capacity, benefit from significant energy cost savings as a result of the natural water reservoir under the hatchery that has a year around water temperature of 26°C, ideal temperature for juvenile fish
• Operations of hatcheries and adaptation units are supported by R&D activities and a microbiology laboratory, which ensure traceability and quality, develops new species such as the recently introduced meagre and provides after-sales service
Bafa hatchery and adaptation unit K.maras(1) hatchery and adaptation unit Akarca hatchery and adaptation unit Oren hatchery
Hatcheries and adaptation with significant capacity
Location Species License end(1) # of fish farming projects
# of cagesCapacity
(tons)Didim, Aydin Seabass / seabream / meagre 2026 2 12 4,000Milas, Mugla Seabass / seabream / meagre 2026 11 237 16,290
Bodrum, Mugla Seabass / seabream / meagre 2026 7 202 13,710
Seabass / seabream / meagre Subtotal 20 451 34,000Kahramanmaras Trout 2026 5 61 2,175Kayseri Trout 2026 4 60 2,175Gaziantep Trout 2026 2 76 1,350Sanliurfa Trout 2026 1 24 300
Trout Subtotal 12 221 6,000(2)
Total 32 672 40,000
Cages in diverse locations
The largest fish farm operator in Turkey and one of the largest in Europe with modern and efficient operations
• Kilic Deniz operates off-shore marine cages for seabream, seabass and meagre, and freshwater cages for trout in dam lakes
• The Company has 20 marine fish farming projects with a total capacity of 34,000 tons
• The 12 freshwater fish farming projects have a total licensed and operational capacity of 6,000 tons
• Licenses of all projects were renewed(1) in 2011 for 15 years
Notes:1 Marine and freshwater licenses can be renewed for a period of 15 years2 Total licensed freshwater capacity is 8,375 tons, 5,500 tons of which are
currently operational
Cages at multiple locations, with state-of-art equipment
State-of-the art processing and packaging facilities
• The processing facilities were modernized in 2011, and investments in a new IQF unit and a second MAP line were initiated
• Facilities in Milas process all species, whereas Kahramanmaras processing facility is focused on trout
• The IQF and MAP investments in Milas were completed in January 2013, significantly increasing the capacity of value-added frozen and MAP products, respectively
• Kilic Deniz produces its own EPS boxes and ice for packaging, which guarantees the hygiene of packaging materials and products
• Packaging and processing facilities are certified with international quality certificates including ISO 900, ISO 22000, BRC (British Retail Consortium Global Standards) and IFS (International Featured Standards)
• Both processing and packaging facilities follow the Codex Alimentarius Commission standards, the food trade safety standards established by WHO and FAO
Start of operations Fish type Location
Processing capacity
(tons/year)
MAP capacity
(tons/year)
Frozen Capacity
(tons/year)
Grading and EPS packaging
capacity (tons/year)
2000Seabass, seabream,trout, and meagre
Milas, Mugla 9,360 1,800 6,480 28,800
2008 Trout Kahramanmaras 2,700 – 1,800 7,200
Total 12,060 1,800 8,280 36,000
The processing and packaging facilities were recently modernized and their capacity was expanded to support the strategy of further diversifying value-added products
P&P facilities exceeding international standards
Value Added Packaging
There is one value added packaging facilities that Kılıç Deniz operates. The facility for frozen product sea bream and sea bass is located in Milas
The facility in Milas was founded in 2014 and has a capacity of 5,000 tons/year.
Overview
2014 Production Flow
Fish Farming
Feed Juvenile
Client Client
7 % 93 % 46 % 54 %
Müşteri
Processing & PackagingEPS Production
Client
Export
Wholesaler
Retailer
Sales Volume Development
2004-2014 CAGR: 26%
47%
53%
37%
33%
18%
35%
(Tons)18%
8%
Export Sales
Russia
Middle East
ItalySpain
Romania
Poland
UK
Germany
Denmark
USA&Canada
Holland
Top Five Markets Exported Fish Type
Italy Bass/Bream
Russia Trout/Bass/Bream
Holland Bass/Bream
Spain Bass/Bream
UK Bass/Bream
Export sales have been growing strongly over the years. Central Europe is the main market for exporting seabream and seabrass. In recent years, Kılıç Deniz has also entered the Russian market with the sales of trout, seabream and seabass, which have been increasing at a rapid pace.
Other
France
Portugal
Libya
Ukrain
Kazakhistan
Azerbaijan
International quality certificatesFacility
Extruder fish feed plants
Bafa hatchery and adaptation unit
Oren hatchery
Kahramanmaras hatchery and adaptation unit
International quality certificatesFacility
Extruder fish feed plants
Bodrum processing and packaging facility
Fish farms / cages
Kahramanmaras processing and packaging facility
Akarca hatchery and adaptation unit
Facilities International quality certificates
Guvercinlik hatchery
Operational excellence with international certificates
Fish Format in the Market
• Whole Fresh Chilled Sea bass
• Fresh Chilled Sea bass
• Fillets Whole Frozen Sea bass
• Frozen Sea bass Fillets
• Whole Gutted Frozen Sea bass
Mediterranean Sea Bass
• Whole Fresh Chilled Sea bream
• Fresh Chilled Sea bream Fillets
• Whole Frozen Sea bream
• Frozen Sea bream Fillets
• Whole Gutted Frozen Sea bream
Gilthead Sea Bream
Royal Sea Bass
• Whole Fresh Chilled Royal Sea bass
• Fresh Chilled Royal Sea bass Fillets
• Whole Frozen Royal Sea bass
• Frozen Royal Sea bass Fillets
• Whole Gutted Frozen Royal Sea bass
Rainbow Trout
• Whole Fresh Chilled Rainbow Trout
• Whole Gutted Frozen Rainbow Trout
• Frozen Rainbow Trout Fillets
• Frozen Smoked Rainbow Trout
MAP (Modified Atmosphere Packaging)
• Longer shelf life
• Fresher taste and color.
• More hygienic products
• Easier supervision
• Lower logistics costs
• Less stocking area
• Our products are also available frozen in a variety of packaging
Frozen
Value Added Products
Factory Capacity: 5.000 tons /year
2 Production Lines, 4 Different Products:
– Boil in the Bag Products in 200g retail box• Sea bream Fillet• Sea bass Fillet
– Oven able Tray Packed Products in 250g or 300g retail box • Sea bream Fillet• Sea bass Fillet
*** Ingredients can be adjusted as required
Ingredients : Sea bream or Sea bass Fillets, Olive Oil, Lemon juice, Basil, Garlic, Salt, Onion Powder
Cooking Methods: Place the unopened bag in boiling water for 15 minutes and serve. Empty contents onto an oven proof tray and place in a preheated oven and cook for 25 minutes at 185 C
Detail: Specially designed boil in the bag vacuumed pack.
Vacuumed Packed Products in 200g retail box
Value Added Products
Ingredients :Sea bream or Sea bass Fillets, Tomato Slices, Olive Oil, Lemon juice, Garlic, Salt, Onion Powder Cooking Methods: Pierce the folio and place in microwave and cook for 10 minutes at medium level. Alternatively remove the folio and place in a preheated oven and cook for 25 minute at 180C
Detail: Specially designed packaging suitable for use in microwave or conventional oven
Ovenable & Microwaveable Tray Products in 250g or 300g retail box
Value Added Products
Value Added Products
ROYAL SEA BASSRaised in cool and clean waters of the Mediterranean, the royal sea bass is cleaned and boned before it is turned carefully into fillets. They are baked in special ovens. Then, genuine extra virgin olive oil is poured over them and black peppercorn & capers are added. The royal sea bass become even more delicious with a great flavor and enchanting taste. The pleasure you get from eating fish becomes a practical and healthy meal.
SMOKED TROUTRaised and fed in Kılıç Seafood’s farms with care, the trout is smoked and cooked in oak ovens once the oaks are reaped. The amount of water in the trout is reduced so that they become more delicious while they are preserved for a longer time in the healthiest and most natural way. Then, extravirgin olive oil, black peppercorn and capers are added to the filleted trout. Those in slices, on the other hand, are seasoned with extra virgin olive oil, corn and carrot. Kılıç Seafood presents trout
New Product Line ‘Kaptan Kılıç’
• Kılıç launched new product line «KAPTAN KILIÇ» use for ″without fin″ product
• Kaptan Kılıç will be mostly frozen and nish product line for market
THANK YOU