Investor Presentation January 2018 Disclaimer 2 • This presentation contains information and analysis on financial statements and is prepared for the sole purpose of providing information relating to Ülker Bisküvi Sanayi A.Ş. (“Ülker”) • This presentation contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this presentation and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond Ülker’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators • Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Ülker does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials • This presentation merely serves the purpose of providing information. It neither represents an offer for sale nor for subscription of securities in any country, including Turkey. This presentation does not include an official offer of shares; an offering circular will not be published • This presentation is not allowed to be reproduced, distributed or published without permission or agreement of Ülker • The figures in this presentation are rounded to provide a better overview. The calculation of deviations is based on figures including fractions. Therefore rounding differences may occur • Neither Ülker nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation Agenda Company Overview Domestic Operations International Operations Strategy The impact of UI Mena & IBC Acquisition Financial Highlights Appendix 3 Leader confectionery company in the region 4 Net Sales by segment - 2017 Over 70+ years of experience in Turkey 9,6% 2,3% Producer of biscuits, chocolates, chocolate covered products, crackers, wafers and cakes 40,5% 47,6% Leader in Turkey with 36% market share as of 2017 Chocolate Biscuit Cake Non-Conf Extensive sales & distribution capabilities Net Sales by region - 2017 30,0% A gateway to the Middle East, Northern Africa and Central Asia 70,0% 41.5% - Free Float & 58.5% pladis and Ulker family members Domestic International EBITDA by region - 2017 Key figures – TL mn 9M 2017 28,1% Sales Volume (Tonnes) 389.237 Net Sales 3.358 71,9% EBITDA 468.5 EBITDA Margin % 14.0% 4 Domestic International Continuous focus in value 5 Gathering all chocolate and cake businesses under Ülker Bisküvi Ülker Biskuvi acquired 30% minority and starting disposals of 6 non-core assets stake in Biskot Simplified traditional channel distribution SKU optimization in biscuits 502 SKUs vs. 330 SKUs in 2014 Cancellation of privileged shares and founder shares 2013 2012 2014 Free Float reached 40% after Yıldız Holding’s block sale New dividend policy – minimum 70% of distributable income Our restructuring history between 2012-2014 5 6 First phase of international acquisitions completed Hi Food İstanbul Gıda FMC Hamle (Egypt) (Export out of Turkey) (Saudi Arabia) (Kazakhstan) March 2016 June 2016 March2017 Stake: 55.0% Stake: 51.4% Stake: 100.0% Stake: 100.0% 9M’17 Net Sales: USD c.96 mn 9M’17 Net Sales: USD c.30 mn 9M’17 Net Sales: USD c.115 mn 9M’17 Net Sales: USD c.20 mn 9M’17 EBITDA : USD c.12.7 mn 9M’17 EBITDA : USD c.1.3 mn 9M’17 EBITDA: USD c.8 mn 9M’17 EBITDA : USD c. 0.9 mn 6 Growing our regional footprint 7 Covered Territory c610 mn Population GDP per c7,689 USD Capita 21 mn km² Total Area Confectionery 13,3 bn USD Market Brand Positioning Turkey Saudi Arabia #1 in Total Confectionery #2 in Biscuits Egypt Kazakhstan #3 in Chocolate Countline Covered Territories #3 in Biscuits 7 Solid top line growth coupled with enhancing 8 profitability despite challenging times 2012 2013 2014 2015 2016 Sept’17 CAGR LTM % Volume (‘000tons) 422 478 480 514 501 528 4,6 13,6% 5.000,0 Net Sales EBITDA EBITDA Margin 16,0% 4.517,9 4.500,0 13,1% 12,6% 14,0% 3.921,7 4.000,0 3.793,7 11,5% 11,5% 12,0% 3.500,0 9,3% 2.891,2 10,0% 3.000,0 2.748,4 2.500,0 2.340,6 8,0% 2.000,0 6,0% 1.500,0 4,0% 1.000,0 613,7 478,5 512,7 331,9 2,0% 500,0 218,3 315,2 - 0,0% 2012 2013 2014 2015 2016 2017 LTM 2015-2016 figures do not include Hamle acquisition impact Note: EBITDA and Net Sales are expressed in million Turkish Lira 8 Largest production capacity in the region 9 with strategically located plants Production in 4 countries at 9 facilities Total Production Capacity of 920K tons Turkey Egypt Saudi Arabia Kazakhstan Istanbul- Topkapı Chocolate Istanbul Capacity: 195k Gebze tonnes/year Ankara Istanbul- Silivri Chocolate, chocolate Karaman covered biscuit Capacity: 45k tonnes/year Istanbul- Hadımkoy Cake Capacity: 50k tonnes/year Ankara Biscuit Karaman Capacity: 151k Hi-Food FMC Hamle Biscuit, cake, tonnes/year Gebze Biscuit & Chocolate & Biscuit & Chocolate & Cake cracker & chocolate The largest biscuit Biscuit Biscuit & cracker Cake Capacity: 214k manufacturing facility in Capacity:44k Capacity: 47k tonnes/year Capacity: 57k tonnes/year the Middle East Capacity: 119k tonnes/year tonnes/year tonnes/year 9 Strong brand equity leveraging 10 70 years of heritage Brand Ülker perception study Recognition Ülker – Always «most recognized» and «closest to consumers» In its own category, Ülker is the most beloved brand name of all. Source : AC. Nielsen & Mediacat Source: Ipsos 2015 Brand Ivestments Made in 2016 Ülker address to youth Ülker present happiness Dynamic brand Social «more adressing to youth» «Only we provide joy & «becoming more dynamic «Consumers find Ülker more happiness» every day» social» +16 pp, reached 43 Since +11 pp, reached 45 Since +22 pp, reached 45 Since +18 pp, reached 42 Since Nov Nov 2015 Nov 2015 Nov 2015 2015 Source: BHT Araştırması /GFK-Nov 2017 10 Well structured route to market system 11 30% International • 95 distributors Traditional Independent • # of points visited: 180k out Channel Distributors of 200k available points • % of invoice issued by visit: 90% Domestic 70% National Retailers • Directly distributing to main Modern Cash & Carry warehouses Channel • # of points visited: c25k with Discounters c99% coverage Decreased logistics expense More efficient route to sales points Single joint sales & distribution network Enhanced distribution profit Better and faster execution capability Stronger distributors with higher nominal gains 11 12 Domestic Operations 12 #1 in total confectionery with 36% 13 market share Turkey #2 Biscuits – 36% Market Share (1) #1 Chocolate – 38% Market Share (1) #2 Cake – 28% Market Share (1) # 1 in Creamy Biscuits # 1 in Petit Beurre 4 out of Top 5 in Chocolate Covered #1 in Family Cake # 1 in Special Biscuits # 1 in Cracker #2 in Portion Muffin Coated Cake #1 in Solid Chocolate # 1 in Sandwich Biscuits # 2 in Chocolate Biscuit #2 in Spread Chocolate #2 in Wet Cake ____________________ (1) Source: AC Nielsen&Ipsos – LTM Quarterly Market Share Development, Value Based – Q2’17 vs Q3’17 Biscuits 36,6% Chocolate Cake 36,6% 36,6% 35,0% 28,2% 27,4% ULKER ULKER ULKER Q2’17 Q3’17 *Source: AC Nielsen 13 Branded Sales Contribution of 14 Synergy Products & New Launches 2017 Synergy Products 2017 New Product Launches Biscuits 2016 Synergy Products Cakes Chocolates 14 Domestic Operations Strong Growth in financial and operational metrics in Q3 2017 Sales Volume Net Sales (TL m) (thousand tons) Gross Profit (TL m) EBITDA (TL m) 745,6 21,6% 21,9% 15,2% 14,9% 82,7 90,5 631,9 136,3 163,2 111,1 96,3 Q 3 2 0 1 6 Q 3 2 0 1 7 Q 3 2 0 1 6 Q 3 2 0 1 7 Q 3 2 0 1 6 Q 3 2 0 1 7 Q3 2016 Q3 2017 Branded volume continue Branded revenue up by 20% Gross Profit up by 19,8% EBITDA was reported as with a good performance and TL111m representing 15,5% - Effective pricing strategy Gross Profit margin was up by 12,3% thanks to growth with the support of - Mix impact parked at 21,9% thanks to - New product launches effective cost management ATL/BTL expenses - New launch - Marketing investments despite rising input costs Total price per tonnes Overall volume increased improved by 7,9% by 9,4% Overall revenue up by 18% 15 Domestic Operations Strong Growth in 9M 2017 Sales Volume Net Sales (TL m) Gross Profit (TL m) EBITDA (TL m) (thousand tons) 23,2% 21,9% 14,8% 14,3% 2.350,4 478,6 515,3 286,6 336,9 272,6 2.065,5 306,5 9M2016 9M 2017 9 M 2 0 1 6 9 M 2 0 1 7 9 M 2 0 1 6 9 M 2 0 1 7 9 M 2 0 1 6 9 M 2 0 1 7 Branded sales continue with Branded revenue up by Gross Profit up by 7,7% EBITDA was reported as TL a good performance and up 16,1% 336.9m, representing 14,3% Gross Profit margin by of sales - Effective pricing strategy impacted due to 8,5 % thanks to - Saving in operating - Mix impact - Rising input costs expenses - New product launches - New launch Marketing investments - Total price per tonnes Overall volume increased improved by 8,2% by 5.2% Overall revenue up by 13,8% 16 Increased branded sales boosted by 17 synergies In line with our strategy, we focused on branded product sales and continue to enjoy significant contribution improvement at the operational front.