CONTINENTAL CONFECTIONERY COMPANY

We make life sweeter

Chewing Gum Candy

A Joint Venture of Gumlink and Yildiz Holding • Continental Confectionery Company (CCC Gıda Sanayi ve Tic. A. Ş.) was founded by Gumlink A/S and Yıldız Holding A. Ş. as a 50/50 joint venture in April 2009.

A Joint Venture of Gumlink and Yildiz Holding A Joint Venture of Gumlink and Yildiz Holding • Çorlu Facility - Chewing Gum

• Avcılar Facility - Candy

• Gumlink Confectionery Company is a wholly owned sales subsidiary of CCC. Located in Denmark and equipped with a skilled sales and marketing force offers the best PL&PB service in the confectionery industry.

A Joint Venture of Gumlink and Yildiz Holding Chewing Gum Candy Dragee Jellies Centrefilled Gum Liquorice Stick&Mini-Stick Gum Hard Boiled Candies Sugarfree Bubble Gum Toffees Gumsticks Dragee Sugarless Gum

A Joint Venture of Gumlink and Yildiz Holding • Çorlu plant was mainly established with the lines transferred from Gumlink factory in Vejle.

• In the middle of 2010 chewing gum production started.

• CCC aims to be an important player at domestic and international markets and to increase its market share in European B2B market.

• 11.000 tons/year production capacity.

• Number of SKU:550

A Joint Venture of Gumlink and Yildiz Holding • The company joined in Yıldız Holding in 2002.

• 25.000 tons/year production capacity.

• Number of SKU:350

A Joint Venture of Gumlink and Yildiz Holding CCC Delivery to hub in CZ

Direct delivery to external & internal customer

A Joint Venture of Gumlink and Yildiz Holding CCC References

• Actavis • BİİİM • Albert Heijn • • • Kipa • Bergi • Real • • Şok • Carrefour • Dia % • Cody Kramer • Eroski • Dollar Three • GlaxoSmithKline • Kaufland • Candyking • Kesko • Leader Price • Leaf • • Nestle

A Joint Venture of Gumlink and Yildiz Holding A Joint Venture of Gumlink and Yildiz Holding Gum Technologies at Gumlink Challenges and options for Gumlink

External Internal

Over all market Challenges • Interesting growth potentials • Lack of scale • Attractive margin potentials • Low capacity utilisation • consolidation • High cost environment • Non flexible manufacturing Competition • Pure access to emerging markets • Highly consolidated industry • Global Opportunities • Good innovation skills Consumer trends • Good technology understanding • All trends are in favour of gum • Market leader in B2B chewing gum

Options • Sell • Greenfield in Low Cost Country • Joint Ventures with partners in Emerging Markets A brutal fact for Gumlink

140 Sales prices Private Label 135 Material prices 130 Labor rates

125 Weighted avg. costprices

120 114 115

110 107

105

100 Margin squeeze 95

90 88

85 81 80

75 R2004 R2005 R2006 E2007 B2008 S2009 ORGANIZATIONAL STRUCTURE YILDIZ HOLDING AROUND THE WORLD Building strong strategic partnerships with world’s renown companies

A Joint Venture of Gumlink and Yildiz Holding THE POWER OF BRANDING Turkey’s “The Best Recognized Confectionery Brand”: Ülker

The Best Recognized Brands Brand one feels close to

1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 Source: ACNielsen Brand 2009 Survey 10

A Joint Venture of Gumlink and Yildiz Holding Yıldız Holding is not the market leader in gum market

• Brand Segmentation in Turkish Gum Market

A Joint Venture of Gumlink and Yildiz Holding Fit between Yıldız Holding and Gumlink for Gum

Sales / R&D Manufacturing Branded Business Distribution

Needed

Yıld ız Holding

Gumlink

• Additional capital from partner

• Further to gum entering into a complementary category, candy

• Flexible and dynamic local management which enables fast adaptation to changes

• Cost advantages at supply chain thanks to strength of local partner

• Skilled and low cost labor with well trained and competent managers

A Joint Venture of Gumlink and Yildiz Holding • Being able to exploit brand and distribution power of local partner in big domestic market consisting of young population

• Advantages of good connections of local partner with public authorities

• Benefits of incentives on investment, export, employment and R&D

• Communication challenges due to cultural differences

A Joint Venture of Gumlink and Yildiz Holding • Additional capital from partner

• Further to candy entering into a complimentary category, gum

• Transfer of know how and technology

• Utilizing the position of foreign partner at international markets to make more export

• Learning from the business model specific to partner

• Communication challenges due to cultural differences

A Joint Venture of Gumlink and Yildiz Holding We make life sweeter

THANKS Chewing Gum Candy

A Joint Venture of Gumlink and Yildiz Holding