Company Presentation

1H 2018

P0 Agenda

1 in a snapshot 2

2 Operating environment 6

3 Review of historical financial performance & projections 27

P1

Migros at a Glance 64th Year!

 Operating in 3 countries Geographical Footprint — (81 cities out of 81) — Macedonia and

 1,742 (supermarkets)

 50 (upscale supermarkets)

 161 (Supermarkets and Hypermarkets)

 17 (wholesale and foodservice stores) 2,011 Stores1  41 (international stores)

 Migros Online — 1.7m members and 56% mobile orders — Acquisition and re-launch of Tazedirekt

 7.7m active households Money Club Card Innovation, Loyalty & 80% 38% +100 Customer Service  Introduced more than 100 innovations for the market of HH of HH

 Only retail company in the “BIST Sustainability Index”

 Included Corporate Governance Index since 2015

Sustainability and  27,596 employees of which 40% are women A- Corporate Governance  Best retailer of the country 14 years in a row2 2017 CDP Grade:

1 as of June 30, 2018 2 Capital Business magazine. P2

Ownership Structure

JV Structure between BC Partners & Anadolu Group

Shareholding Structure as of June 2018

AG Anadolu BC Partners Grubu Holding A.Ş. & related funds

MH Kenan Moonlight Free Float Perakendecilik Investments Capital S.A. ve Ticaret A.Ş. S.A. 26.8% 8.07% 50.00% 15.13%

Migros Ticaret A.Ş.

P3

Migros has been a leading supermarket operator since its foundation 64 years ago

 Migros was established in 1954 (as a joint venture between Swiss Migros & Municipality/State Institutions).  Throughout its history, the company had 5 different ownership structures.  Ownership changes did not interfere with the long established Company operating principles and management.

Istanbul Municipality/ State BC Partners 80.51% Institutions (49%) & Private & Public 19.49% Sector (Koç Holding 51%)

1st era 2nd era 3rd era 4th era 5th era (1954–1974) (1975–1990) (1991–2008) (2008–2015) (2015–…)

Foreign investment Private Sector BC Partners 23.2% & (Swiss Migros 50%) & (Koç Holding 51%) Anadolu Group 50.0% Istanbul Municipality/State & Public 49% Joint Venture Institutions (50%) Joint Free Float 26.8% Venture

Note: Shareholder structure as of June 30, 2018

P4 Agenda

1 Migros in a snapshot 2

2 Operating environment 6

3 Review of historical financial performance & projections 27

P5

Operating Environment

A Attractive market with significant upside potential to support future growth F B #1 supermarket operator with Experienced management an outstanding reputation

E C Flexible and efficient business Multi-channel synergistic model combined with state of offering with a footprint in 81 art facilities Turkish cities and abroad

D

Retail technology and innovation leadership

P6

A Attractive domestic market

Attractive market with significant upside potential to

support future growth

Population (m) Total Grocery Spend per Capita ($)

3,670 81 83 3,516 3,200 3,008 65 66 61

46 2,031 1,781 38 1,282

Turkish Food Retail Market MGD Grocery Market Share (%)

85%

82%

81% Unorganized Organized 66% 34% 80%

54%

43% Total Grocery Spend in 2017 [~ TL 380bn] 34%

Source: Planet Retail P7

B #1 supermarket operator with an outstanding reputation

Market Share Evolution

Market Share Gain Migros FMCG Market Share Evolution (%)

 Migros on a consolidated basis 16.1 16.0 maintained its market shares in FMCG markets.  However, Migros brand continued its market share gains. 6.8 6.8

1H17 1H18 1H17 1H18 Total FMCG Market Share Modern FMCG Market Share

Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; Modern FMCG market and total FMCG market include all food-retail formats

* including Kipa

P8

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

With a clear strategy to organically and inorganically drive growth

in the decades ahead

Proven ability to launch new, successful formats and products, achieve business transformations

Conversion of Tansas

Launch of online Launch of new concept stores into Migros Private label relaunch Launch of Migros jet in Acquisition of format petrol stations

1997 2008 2010 2012 2014 2017

2013 1997 2005 2009 2011 2016

Club Card launch Acquisition of Introduction of self Launch of 1 Space optimization of Acquisition of check-out Hypermarkets

Growth Levers

Macro Product Inorganic / Format Evolution International Fundamentals Innovation Acquisitions

1 The format started operating in 2010 on a trial basis and was fully launched in 2011

P9

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

Multi-channel expertise anchored around large, full-service supermarkets

Sales Banner Key concept Supermarkets Large SPMs & HPMs Total # of stores area split (Target size) 40-800 sqm 800-7,000 sqm

Core supermarkets [333] [680] expertise anchored 67% (Migros) [23] [1,742] around large 7% (5M) [593] supermarkets [113]

Focused on the Western [69] 2 19% [47] [161] regions of Turkey [45]

Well positioned in upper 3% [50] [50] income segment

International operations 3% [21] [20] [41]

First and leading e- commerce food retail website

Wholesale & Food Service 1% [17] [17]

Total # of [1,425] [586] [2,011] stores

(#): Number of stores as of June 30, 2018

P10

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

Migros

Migros, Largest National Supermarket Chain  Number of stores: 1,742 including 469 5M, MMM & MM stores and 1,273 Migros Jet & M stores,  Penetration: 81 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded assortment of FMCG products ─ Consistent Every Day Low Pricing on commodity Private Label products ─ Fashionable, complementary and seasonal non-food selection

Focus on proximity supermarkets

 680 Migros Jet and 593 M Migros  Proximity Stores, (40*-300) sqm,  1,800* – 3,000 SKUs

Loyalty Program

 CRM applications for different customer segments ─ Customized & Differentiated Offering for Money Club Card holders ─ Club Card for 17 years

(*): including Migros Jet stores and Migros Jet 7/24 forecourt stores as of June 30, 2018 P11

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

Macrocenter

Exclusive shopping

 Number of stores: 50  400 - 2,500 sqm / 10,000 SKUs ─ Upscale gourmet store serving with strong brand loyalty ─ Wide product range in delicatessen, appetizers and spirits. Premium quality in fresh products ─ Complementary and premium non-food

 Customized service such as banquet ready meal delivery

Penetration: 6 cities

P12

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

Kipa as of June 2018

Focused on the Western regions of Turkey

 Number of stores: 161  Space optimization in 4 Kipa stores completed in 2017  Space optimization in 8 more stores completed so far in 2018, 6 more in 2018 pipeline  Product portfolio optimization is in progress

Penetration: 20 cities

(#): Number of stores as of June 30, 2018 P13

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

Wholesale & Food Service

Focus on Horeca Penetration

 Currently operating in 7 regions through dedicated sales team.

 Dedicated warehouses and customer delivery

 17 Wholesale stores

Penetration: 12 cities

P14

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

Online Business

 Turkey’s first and leading e-commerce web site in food retail

 Top-line growth is significantly higher than the Company average  Improved operational efficiency through picking automation  Direct delivery from stores (111 stores in 28 cities across Turkey)

Healthy

Organic Natural

Fresh

P15

C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad

International Operations

Kazakhstan Macedonia

 1.3% of consolidated sales from Kazakh operations  1.4% of consolidated sales from Macedonian operations

 Number of stores: 16, including 2 hypermarkets, 13 supermarkets and 1 Macrocenter.  Number of supermarkets: 25

 Owns 1 shopping mall in Almaty  Owns 1 shopping mall in  Total sales area of 23,789 sqm  Total sales area of 21,485 sqm ─ Serving in the cities of Almaty and Astana in a large

country  Operations started in 2005  Operates in multi-format since 1999

1 Shopping Mall 2 Hypermarkets 13 Supermarkets 1 Macrocenter

1 Shopping Mall 25 Supermarkets

P16

D Retail technology and innovation leadership

Innovations

Migros Mobile App & Personalized Self-Service Checkout+ Campaign Engine

BKM E-Wallet & Self-Service Sales Over Checkout ‘pin-on-receipt’ Integration Technologies

Mkolay Scan&Go

Migros Intelligent Office

Mi-Fi Me- Supplier Information Center Electronic Smart Tag

Migros R&D Center

P17

D Retail technology and innovation leadership

Money Club & CRM

6 Life Style 75% Segments 10.3 Million of Loyalty Card Active Cards Sales Advanced Turkey’s 48.0 Million Programme With Segmentation largest loyalty Money Points Highest Customer Customer Value programme Interaction Model 1.7 Million 7.7 Million Money Winning Customer

Active Households Store 900k customer benefited "Just For You" campaigns Segmentation

Partnerships Effective Communication With Strong Network 6.1 Million 305 k Brands 25 Mobile Phones Communication & CampaignChannels 887 k 1.1 Million Followers 1 Money = 20 Miles E-Mails P18

D Retail technology and innovation leadership

Self-service technologies

Self-service revolution in retail Mkolay – Scan&Go

2018:  Turkey’s First In-store self scanning experience Million 250 stores  Statistical fraud and security algorithm (860 SSCO1) transactions  Hassle free direct bagging and payment 3.5 per month  System will be available over 20 stores by the end of the year

% average transaction 30% ratio2

Top 10 stores’ average 2014: 61% transaction 1 189 stores ratio % (603 SSCO)

Generation cash 3. register

2009: 1 pilot store (4 SSCO)

1 SSCO stands for Self Service Check Out 2 Share of transactions made via self-service checkouts in equipped stores P19

D Retail technology and innovation leadership

Mi-Beacon, Migros mobile apps and Mi-Fi

Highlights of Mi-Beacon, Migros mobile apps Highlights of Mi-Beacon, Migros mobile apps

 Personalized – Customer Communication Channel  Free wireless internet access during shopping – a  At the right place– At the right time first in Turkey  New I-beacon technology  Available for 200 5M and MMM stores in large cities, stores where pedestrian traffic and tourist potential are high

 IOS & Android platform  4,5 M downloads  Core functionalities ‒ Mkolay –self scan shopping BKM E-Wallet & Self-Service Checkout Integration experience ‒ ‘Just For You’ campaign offers  Turkey’s First Mobile wallet integration on a physical store payment ‒ Closest store finder  Currently available on 860 self service checkout ‒ Migros Wi-Fi access and will be available over 6400+ regular checkouts ‒ Easy access to Migros TV Q2 2018 ‒ Migros ‘İyi Gelecek Elçileri’ platform ‒ Call center

P20

E Flexible and efficient business model

Flexible / capital light model with preferred tenant status

Flexible / capital light model Capex as a percentage of sales 2017 (%)¹

 Largely rented business model  Flexible lease terms 6.9% ‒ Leases can be exited on average with a 1-3 month notice ‒ Termination rights of landlords more limited (selected leases locally registered with the Land Registry) 4.6%  Well-invested facilities and low capex requirements 4.0% ‒ One of the lowest capex as a percentage of sales amongst 3.7% peers 2.9% 2.9% 2.9% 2.7% 2.8% ‒ The meat plant, the distribution center sorter system and 2.5% 2.6% 2.6% a centralized control systems on energy savings are examples of major one off investments realized over the last years  Leveraging “must have” anchor tenant position in malls and in the high street

‒ Preferred relationship status X5

Dixy

Tesco

Casino

Migros

Magnit Ahold

‒ Power to (re-)negotiate size of the store Colruyt

Shoprite

Delhaize

Morrison

Carrefour Sainsbury

Source: Company estimates, Reuters ¹ Latest reported fiscal year

P21

E Flexible and efficient business model

Unparalleled capabilities in fresh categories

Highlights

 Focusing on fresh products (vegetables, fruit, fresh meat, etc.)  Renewed meat production facility  Exclusive licensing from Ministry of Agriculture: “Good Agricultural Practice”, covering now poultry & red meat  Broader range of bakery products and self service bakery model.  Fresh and ready to cook fish range in MAP packaging (modified atmosphere packaging),

P22

E Flexible and efficient business model

Meat processing/production plants – Miget and Gebze

2 meat production plants, for meat processing

Location Closed Area # of Employees

Miget Meat Production Plant Izmir Torbali 11,356 m2 249

Gebze Meat Production Plant Kocaeli GOSB 3,632 m2 43

18,455 ton production capacity per year per shift, in product groups

Service Products Special Products Packed Veal and Lamb Products Special Gourme Products Lamb Parts Packed Meatballs Vacuum Packed Meatball Patty Offal Packed Minced Meat Vacuum Packed Minced Meat Dough

P23

E Flexible and efficient business model

Distribution centers and logistics - overview

 24 Distribution Centers (including 1 Kipa DC and 7 Fruit and Vegetable DCs)  19,000 active SKUs  % of sales delivered centrally to the stores has reached 83%  Continuing to improve round trip store distances  Sorting and picking automation started

Esenyurt Samsun (F&V) Bayrampasa Gebze Gebze (Meat)

Bursa (F&V) Saray Saray (Meat) Gölbaşı

Miget (Meat) Izmir (F&V) Pinarbasi Kemalpasa Torbalı

Mugla Tarsus (F&V) Antalya (Meat) Adana (Meat) Antalya (F&V) (F&V) Kumluca (F&V)

P24

E Flexible and efficient business model

Best-in-class quality management and recognized excellence

Annual records Selected awards

1,000+ supplier audits 30,000 product analysis 7,000 approvals of new products for sales

3,200 store audits CDP Turkey Capital “Climate Leadership Award” “Most Admired Retailer” ISO Certificates

ISO 9001 Quality M.S. ISO 22000 Food Safety M.S. OHSAS 18001 Occupational Health & Safety M.S. Grand Stevie TS EN ISO 14001:2004 Environmental M.S. “Stevie Awards for Great Mobile Marketing Association Employers” “The Smarties Awards” ISO 10002 Customer Satisfaction M.S

Laboratories and Audits

13 owned laboratories 10 outsourced laboratories and audit firms Association for Talent Development “Excellence in Practice Awards” P25 Agenda

1 Migros in a snapshot 2

2 Operating environment 6

3 Review of historical financial performance & projections 27

P26

Sales in 1H 2018

. Consolidated sales turnover increased by 20.3% and reached TL 8,463 million in 1H2018

. Domestic sales growth excluding Kipa was stronger in 2Q 2018 with 19.3% vs 17.9% in 1Q 2018 19.3% Domestic sales growth w/o Kipa operations in 2Q Sales in 2Q 2018 (TL million) Sales in 1H 2018 (TL million) 2018

4,523 8,463

3,923 7,037

Strong growth

momentum despite high base

of last year

2Q 2017 2Q 2018 1H 2017 1H 2018

Sales Growth in 2Q18 15.3% Sales Growth in 1H18 20.3%

*Kipa’s financial results have been consolidated since 01 March 2017.

P27

Capital Expenditures

Capex (TL million) Kipa stores Capex as a 12 Percentage 2.2% 3.2% 2.7% 2.6% Space optimization of Sales 399 completed 271 297 154 TL 440m Targeted consolidated capex in 2018

Capex as a 1H 2017 1H 2018 2016 2017 percentage of sales is expected to remain at 2017 level at the year end

P28

Consolidated Gross Profit in 1H 2018

. Consolidated Gross profit reached TL 2,338 million with an increase of 27.6% in 1H 2018

. 2018 FY gross profit margin expansion is expected to exceed the Company’s targets for the year

Gross Profit 2Q (TL million) Gross Profit in 1H (TL million) Targets exceed in gross profit 1,261 2,338

1,015 1,832

Further synergies expected following the legal merger with Kipa

2Q 2017 2Q 2018 1H 2017 1H 2018

Margin 25.9% 27.9% Margin 26.0% 27.6%

P29

Consolidated EBITDA(R) in 1H 2018

EBITDA 2Q (TL million) EBITDA 1H (TL million)

275 486 193 348 42.9% EBITDA increase in 2Q18 2Q 2017 2Q 2018 1H 2017 1H 2018 Margin 4.9% 6.1% Margin 5.0% 5.7%

EBITDAR 2Q (TL million) EBITDAR 1H (TL million)

11.3% 512 936 EBITDAR 387 704 margin in 2Q18

2Q 2017 2Q 2018 1H 2017 1H 2018 Margin 9.9% 11.3% Margin 10.0% 11.1%

*EBITDA(R)= Operating Profit+Amortization+Employee Termination Benefits +Unused Vacation Provision-Other Income+Other Expenses+(Rent Expenses)

P30

Track Record of Deleveraging

Migros 1H 2018 Cash and Leverage Position

Cash & Debt Items Total TL m TL m EUR m

Cash & Cash equivalents 1,359 1,238 23

Financial Debt* 4,092 865 608

Net Debt 2,733

Net Debt / EBITDA LTM 2.7x

* Based on amortised costing as indicated in financial statements

 Net debt/EBITDA improved in 1H 2018 y-o-y despite hard currency appreciation

Deleveraging Profile - Net Debt / EBITDA LTM

4.0x 3.2x 3.2x 2.9x 2.7x 2.7x 2.6x

1H 2017 1H 2018 2013 2014 2015 2016 2017

Euro/TL Currency : 4.0030 5.3092 2.9365 2.8207 3.1776 3.7099 4.5155

P31

Expectations and Guidance

2018 Guidance [Consolidated]

2018E Previous Guidance New Guidance

Sales Growth 15-18% ~20%

EBITDA Margin 5.5-6.0% 5.5-6.0%

120-150 200+ Expansion Target new stores new stores

CAPEX Target TL 400 mn TL 440 mn

Management Agenda in 2018

  Merger of Migros & Kipa by the Total gross Euro debt decreased  Focus on digitalization of end of August 2018 by almost 10% in 1H18 versus physical stores and online  Space optimisation in large 2017 year-end business growth Kipa stores will continue  Migros TL bond debut with  Strengthening our pioneer TL 150 million position in Turkish Retail

P32

SUMMARY OF INCOME STATEMENT – 1H 2018

IFRS Consolidated Income Statement Summary

(TL Million) 1H 2018 1H 2017 Net Sales 8,463.4 7,036.9 Cost of sales -6,125.4 -5,205.1 Gross Profit 2,338.0 1,831.9 Operating Expenses -2,054.7 -1,667.1 Other Operating Income / (Expense) -154.3 -111.9 Operating Profit 129.0 52.8 Income / (Expense) from Investment activities 0.2 1,065.2 Operating Income Before Finance Income / (Expense) 129.2 1,118.0 Financial Income / (Expense) -631.6 -320.2 Income/Loss Before Tax From Continuing Operations -502.4 797.8 Tax Income / (Expenses) -37.9 -12.0 Deferred Tax Income 8.8 0.8 Net Profit / Loss -531.5 786.6 Net Profit / Loss - Non-controlling interest -3.3 -2.9 Net Profit / Loss - Equity holders of parent -528.2 789.5

EBITDA 486.3 348.5 EBITDAR 935.8 703.8

P33

SUMMARY OF BALANCE SHEET – 1H 2018

IFRS Consolidated Balance Sheet Summary

(TL Million) 1H 2018 2017

Current Assets 3,623.0 3,776.3 Non-current Assets 6,684.7 6,526.4 Total Assets 10,307.8 10,302.7 Current Liabilities 5,778.3 5,516.1 Non-current Liabilities 3,512.7 3,259.4 Total Liabilities 9,291.0 8,775.5 Equity 1,016.7 1,527.1 Total Liabilities and Equity 10,307.8 10,302.7

P34