Investor Presentation March 2018 Agenda Company Overview Domestic Operations International Operations Strategy Financial Highlights Appendix 2 Leader confectionery company in the region 3 Net Sales by Segment - 2017 Over 70+ years of experience in Turkey 9,3% 1,8% Producer of biscuits, chocolates, chocolate covered 42,4% products, crackers, wafers and cakes 46,5% Leader in Turkey with 36% market share as of 2017 Biscuit Chocolate Cake Non-Conf Extensive sales & distribution capabilities Net Sales by region - 2017 32% A gateway to the Middle East, Northern Africa and Central Asia 68% 41.5% - Free Float & 58.5% pladis and Ulker family members Domestic International EBITDA by region - 2017 Key figures – TL mn 2017 37% Sales Volume (Tonnes) 542.965 Net Sales 4.811 63% EBITDA 701.4 EBITDA Margin % 14.6% Domestic International 3 Continuous focus in value 4 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 4 5 First phase of international acquisitions completed Hi Food (1) İstanbul Gıda FMC Hamle UI MENA IBC (2) (Egypt) (Export out of Turkey) (Saudi Arabia) (Kazakhstan) (Saudi Arabia and export (Saudi Arabia) of Saudi Arabia) March2016 June2016 March2017 December 2017 Stake: 100.0% Stake: 51.4% Stake: 55.0% Stake: 100.0% Stake: 100% 2017 Net Sales: USD c.167mn 2017 Net Sales: USD c.137 mn Stake: 100% 2017 Net Sales: USD c.52mn 2017 Net Sales: USD c.29.5mn 2017 Net Sales: USD c.50mn 2017 EBITDA: USD c.15 mn 2017 EBITDA : USD c.17.5 mn 2017 Net Sales: USD c.37mn 2017 EBITDA : USD c.4 mn 2017 EBITDA : USD c. 2 mn 2017 EBITDA : USD c.15 mn 2017 EBITDA : USD c.6 mn (1) Consolidated with Ulker Egypt (2) Estimated figures and will be consolidated in Q1’18 5 Leading confectionary player in Turkey and MENACA, serving c.600 mn consumers Egypt Hi-Food Biscuits Capacity: 44k ton/year Over 70+ years of experience in Turkey * Production in 4 countries at 10 facilities Saudi Arabia Total Production FMC&IBC&UIMENA Capacity of 957K Biscuits& Chocolates tons & Cakes Capacity: 57k ton/year IBC Capacity 20k ton /year Kazakhistan Hamle Biscuits&Cakes&Chocolates Capacity: 47k ton/year Largest production capacity in the region with Turkey strategically located Biscuits& Chocolates & plants Cakes 4 in Istanbul, 1 in Karaman, 1 in Ankara total 6 Factory Total Capacity 789K (*) IBC included 6 Consolidated Performance Highlights Clear success between 2012-2017 amid several challenges 2012 2013 2014 2015 2016 2017 CAGR % Volume (‘000 tons) 422 478 480 514 526 543 5,2 6.000,0 16,0% 14,6% 13,7% 14,0% 5.000,0 12,6% 4.811 11,5% 11,5% 4.194 12,0% 4.000,0 3.794 9,3% 10,0% 2.891 3.000,0 2.748 8,0% 2.341 6,0% 2.000,0 4,0% 1.000,0 701 479 575 2,0% 218 315 332 - 0,0% 2012 2013 2014 2015 2016 2017 NET SALES EBITDA EBITDA Margin Note: EBITDA and Net Sales are expressed in million Turkish Lira 7 Strong brand equity leveraging 8 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 2015 Nov 2015 Nov 2015 Nov 2015 Source: BHT Araştırması /GFK-Nov 2017 8 Well structured route to market system 9 32% International • 95 distributors Traditional Independent • # of points visited: 183k out Channel Distributors of 200k available points • % of invoice issued by visit: 90% Domestic 68% 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 Enhanced distribution profit network Better and faster execution capability Stronger distributors with higher nominal gains 9 10 Domestic Operations 10 Domestic Operations Turkey – #1 in Total Confectionery with 36% Market Share Turkey #2 Biscuits – 36% Market Share (1) #1 Chocolate – 37% Market Share (1) #2 Cake – 27% Market Share (1) # 1 in Creamy Biscuits # 1 in Petit Beurre #1 in Family Cake 4 out of Top 5 in Chocolate Covered # 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 Wet Cake ____________________ (1) Source: AC Nielsen&Ipsos Quarterly Market Share Development, Value Based (2) Biscuits Chocolate Cake 36,6% 36,0% 36,6% 36,7% 27,4% 26,8% Q3 2017 Q4 2017 Q3'17 Q4'17 Q3'17 Q4'17 The gap between main competitor decreased by 2.3 ppt ____________________ (2) Source: AC Nielsen 11 Domestic Operations Branded Sales Contribution of Synergy Products and New Launches 2017 Synergy Products 2017 New Product Launches Biscuits 2016 Synergy Products Cakes Chocolates 12 Domestic Operations Despite base impact, growth in financial and operational metrics in Q4 2017 continued Sales Volume Net Sales (TL m) (thousand tons) Gross Profit (TL m) EBITDA (TL m) 22,0% 22,2% 12,4% 12% 784 851 189 101 101 172 97 101 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Branded volume growth Branded revenue up by 8,7% Gross Profit up by 9,6% driven EBITDA was up by 4,6% remained flat. - Effective pricing strategy by the effective cost resulting an EBITDA margin of Slight increase mainly driven management despite rising 12 % - Successful new launches by input costs - Lucrative mix impact the growth in biscuits Total price per tonnes Slight improvement in gross improved by 8,2% profit margin Overall revenue up by 8,5% ________________________________ All figures set out in the table above are related to products sold in Turkey 13 Domestic Operations Continue to grow in core market Sales Volume Net Sales (TL m) Gross Profit (TL m) EBITDA (TL m) (thousand tons) 14,2% 22,8% 22,0% 13,7% 3.201 2.850 373 388 651 704 404 438 2016 2017 2016 2017 2016 2017 2016 2017 Branded volume continues Branded revenue up by 14,1% Gross Profit up by 8,2% EBITDA was improved by 8,6 with a good performance and % realised as TL 438,4m, Effective pricing strategy Gross Profit margin impacted up by - representing 13,7% EBITDA due to high base impact - New launches margin 6,4 % thanks to - Mix impact - New product launches Total price per tonnes 360o active marketing - improved by 8,2% investments Overall revenue up by 12,3% Overall volume increased by 3,8% ________________________________ All figures set out in the table above are related to products sold in Turkey 14 Domestic Operations Continue to increase the share of Branded Domestic Products In line with our strategy, we focused on branded product sales and continue to enjoy significant contribution improvement at the operational front. Branded & Non-Branded Volume Branded & Non-Branded Revenue Breakdown Breakdown 2016 2017 2016 2017 Non Non Non Non Branded Branded Branded Branded 5% 10% 8% 6% +2 pp +1 pp 92% 90% 94% 95% Branded Branded Branded Branded 15 International Operations 16 International Operations Saudi Arabia – stay strong #1 with higher market share Ülker’s presence: Biscuit market share(3) 14,1% 13,5% 13,1% 11,2% Snapshot of Saudi Arabia (2017) 6,1% Population 31m Competitor 1 Ülker Competitor 2 Competitor 3 McVitie’s Population Growth Rate (1) c2.2% GDP (2) US$653.8bn #1 19,6% 14,1% 13,1 % 11,2% Size of Confectionery Market US$2.8bn Ülker Competitor 1 Competitor 2 Competitor 3 FMC Financial Review 2016 2017 Change % Sales Volume (tonnes) 27.744 38.902 40.2% Net Sales (SAR x000) 343.377 514.177 49,7% EBITDA (SAR x000) 46.582 64.975 39,5% EBITDA Margin 13.6% 12.6% In line with our acquisition plan, our company has started to distribute McVitie’s& Rana products in Saudi Arabia. The total contribution of this change to the volume is 8 ktons and 135 MSAR in terms of revenue. Along with McVitie’s and ULKER brands our business has grown tremendously year over year. Along with this new initiation, Ülker gained market leader position in Saudi Arabia. ____________________ (1) Source: Worldbank . (2) Source: IMF (3) AC Nielsen 17 International Operations Egypt – Target #1 in Biscuits, #2 in Cake & Top 5 in Chocolate Ülker’s presence: Biscuit market share(3) Snapshot of Egypt (2017) Significant opportunity to expand McVitie’s Population 90m #3 18.0% footprint in the region 15,9% 13,7% Population Growth Rate (1) c2.0% GDP (2) US$330.8bn 0.3% Traditional Channel c80% Competitor 1 Competitor 2 Ülker McVitie's Size of Confectionery Market US$1.0bn Ülker holds #1 position in filled & digestive and #2 in plain segment HI-FOOD & Ulker Egypt Consolidated Financial Review 2016 2017 Change % Sales Volume (tonnes) 29.540 29.963 1,4% Net Sales (EGP x000) 545.135 934.874 71.5% EBITDA (EGP x000) 49.979 64.803 29.7% EBITDA Margin 9.2% 6.9% Despite heavy economic environment, our business in Egypt has grown rapidly in terms of volume and value with support of new launches and marketing investments.