Investor Presentation May 2018 NOTICE This presentation does not - - PowerPoint PPT Presentation

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2018 Q1 Investor Presentation May 2018 NOTICE This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it shall form the basis of or be relied upon in connection with any

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2018 Q1 Investor Presentation

May 2018

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NOTICE

This presentation does not constitute an offer or invitation to purchase or subscription for any

securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

 The

information contained in this document has not been independently verified. No representation or warranty express or implied is made as to and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information or opinions contained herein. Neither the company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (for negligence or otherwise) with respect to any loss howsoever arising from any use by third parties of this presentation or its contents or otherwise arising in connection with it.

 Turkish ad market figures are estimates of DOHOL; based on currently available data. Ad market

statistics may show inconsistency with IFRS figures.

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Highlights- 2018 Q1

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CHANGE IN SHAREHOLDER STRUCTURE OF THE COMPANY Transfer of shares from Doğan Holding to Demirören Medya after the reporting date PRESENTATION OF SOME SUBSIDIARIES AS ASSET HELD FOR SALE (Glokal, Projeland, Doruk factoring) MARKET LEADERSHIP AD MARKET (34%) CIRCULATION (10%) STARTED TO USE ADVANTAGES OF “R&D CENTER” CERTIFICATE DISCONTINUE OF OUR DIGITAL OPERATIONS IN RUSSIA (To increase operational efficiency and improve cash flow)

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Zweigneiderlassung GmbH

TURKEY GERMANY HOLLAND RUSSIA & Others (**) *Hürriyet Invest BV *Publishing Int. Holding BV

HURRIYET WORLD Hürriyet World @ a Glance

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(*) (*) (*) Our main shareholder, Doğan Holding announced that the shares of those Companies would be transferred to the direct and indirect subsidiaries of Doğan Holding after the reporting date. (**) Based on the announcement made on November 2017, total net loss from PMH, which is reported under Russian operations, are presented as “Discontinued Operations” in the profit/loss statement as of 31 March 2018 and 31 March 2017.

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2018 Q1 News

Glokal, %92 owned by Hurriyet, incorporated new joint stock company with «Prof Estate Ltd», named as “ProjeLand”

2 Jan 2018

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6 April 2018

A a result of negotiations held with Demirören Medya, Doğan Holding sign an agreement to sell the shares of Hürriyet Gazetecilik, except Glokal, Projeland and Doruk Factoring

7 May 2018

Turkish Competition Board gave permission for the takeover of full control of Hurriyet indirectly and finally by Erdoğan Demirören through Demirören Medya Yatırımları Ticaret A.Ş.

11 May 2018 Hürriyet announced that the Extraordinary Meeting will be held on 6 June.

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Ad Market in Turkey

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195 217 180 143 373 423 510 540

  • 200

400 600 800 1.000 1.200 1.400 1.600 1.800 2.000

2015 Q1 2016 Q1 2017 Q1 2018 Q1

Print Ad Other Internet Ad

AD MARKET IN TURKEY: Market Leader in Print Ad Market with 34 % market share

+ 10%

  • 7%

+ 2% PRINT INTERNET OTHER GROWTH in AD MARKET (CAGR)  +3% growth in total Ad Market in 4 yrs

  • Solid growth of 10% in Internet
  • 7% decline in Print
  • 34% market share in Print Ad Market
  • 6% market share in Internet Ad Market

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CIRCULATION : Market Leader in Circulation

Average Daily Newspaper Circulation (thousand units) Circulation Market Share of Hürriyet Despite the decrease in circulation Market, Hürriyet is the still the market leader.

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4.748 5.077 4.914 4.508 3.634 3.295 3.293 3.232

2012 2013 2014 2015 2016 2017 2017 Q1 2018 Q1

  • 1.9%

Market (Exc-Hürriyet) Hürriyet Circulation

90% 10%

  • Newspaper circulation market is decreased

by %1.9 when compared to 2017 Q1

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9

Digital Content

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BOOSTING DIGITAL AD REVENUES THRU INVESTMENT ON DIGITAL AD TECHNOLOGIES

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Native Ad Model 360 Ad Model Video Header Bidding

  • Focus and realignment with rapid advances in technology and dramatic shifts in consumer behavior.
  • Engaging the right audience, with the right message, at the right time
  • Using of data management platforms (DMPs) to manage the scale of data, while exploring new ways to

increase customer engagement

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DIGITAL CONTENT : Above market revenue growth

  • Focused growth and monetization via

new Ad Formats (ie: SporArena)

  • Increase traffic and customer

engagement thru technical innovation and audience focus strenghting mobile conversion

  • Focus on content enrichment and

technology investment for digital premium subscription model

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11,3 15,5

  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50%

  • 2,0

4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0

2017 Q1 2018 Q1

DIGITAL REVENUE

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DIGITAL CONTENT : Hürriyet is among the top players in the market PAGEVIEW (PV- million) SESSION (million)

  • Hürriyet is the top local player in the market, including Facebook and Google with page

views 1.8 bio and 257 mio visitor monthly.

  • The average monthly visit is 54% higher than the nearest competitor in news websites

as of April 2018.

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2.622 2.499 1.547 2.039

  • 500

1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000

2017 Q1 2018 Q1

Digital Content - Mobile Digital Content - Desktop

210 189 377 507

  • 100

200 300 400 500 600 700 800

2017 Q1 2018 Q1

Digital Content - Desktop Digital Content - Mobile

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67%

Internet Usage in Turkey

  • f individuals using the

internet everyday or almost everyday

87%

Top Websites Extended In Turkey (Total Traffic)

98%

Smart Phone Penetration

37%

Laptop Penetration

30%

Tablet Penetration

DIGITAL CONTENT : Impressive Growth in Traffic and unique visitor

(*) The data is obtained from Tuik web site. 76% male, 59% female

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TOP 3 MOTIVATIONS

Haber okumak için Zaman geçirmek içim Arkadaşları ile iletişimde

  • lmak için

To read news Spend time in social media

68.2% 83.7% 61% Uploading self-created content

  • Hurriyet.com.tr has reached to 1 million UV per day in social media traffic and 50 million views

monthly on facebook.

  • Hurriyet.com.tr is in the LEADER position in social media engagement on media sector.
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KEY DRIVERS OF GROWTH

Monatization via new ad formats Increase traffic and customer engagement Digital premium subscription Fit for growth (optimization

  • f costs and

integration in

  • perations)

Convergence

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MONETIZATION IN DIGITAL CONTENT FOCUSING ON DIVERSIFIED VERTICALS

Monthly average Page View doubled to 174 million Monthly average Page View is 50% bigger than 2017

The above figures does not include referral traffic from hürriyet.com.tr.

Monthly average Page View increased to 1.5 billion.

9.6 mio User 9.5 mio Pageview 174 mio Session 0.7 mio User 2 mio Pageview 47.6 mio Session 232 mio User 73 mio Pageview 1.5 bio Session

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Monthly average Page View is 37.4 million. Monthly average Page View is 11 million. Monthly average Page View is 19.6 million.

7.4 mio User 4.1 mio Pageview 37.4 mio Session 3.8 mio User 2.6 mio Pageview 11 mio Session 2.8 mio User 2.3 mio Pageview 19.6 mio Session

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Financial Performance

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FINANCIAL HIGHLIGHTS

DIGITAL CONTENT

OTHER

PRINT MEDIA REVENUE (*) 11 4 115

Q1 Q1 Q1

90 15 4 109

2017 2018 yoy

Sharp increase, thanks to our invesment on digital in 2017

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  • 9%

38%

  • 17%

TOTAL COSTS

  • 108
  • 101
  • 5%

EBITDA 8 9 13%

  • 5%

(*) As of 2018 Q1, Doğan Holding decided to transfer the shares of Glokal, indirectly Projeland, to the direct and indirect subsidiaries of Doğan

  • Holding. Due to this improvement, in addition to PMH, total net profit/loss from these operations are presented as “Discontinued Operations” in

the profit/loss statement as of 31 March 2018 and 2017.

DIGITAL CONTENT

OTHER

PRINT MEDIA 100

Increase in EBITDA, despite decrease in

  • Revenue. Thanks to cost

reduction policies..

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SOLID BALANCE SHEET  20 mtl of total asset held for sale is comprised from Cash and cash equivalents and 34 mtl trade receivables of Glokal and Projectland as of Q1 2018.  Land and Buildings including the investment properties amounts to 382 mtl as of Q1 2018.  Bank Borrowing amounts to 233 mTL:

  • of which 153mTL is short term
  • interest rates ranging between

11.83%-14.89% which is below market.

  • During 2018 Q1, 32 mtl loan is

paid back and this leads to decrease both in cash and cash equivalents and total loan.

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Investment Properties 66 208 172 174 Land and Buildings Cash and Cash Equivalents 15 Total Assets 769 726 206 2017 2018 263 Total Loan 233 Total Liabilities 466 427 Total Equity 303 299

The amounts are given in million TL.

  • Liabilities related with assets held

for sale (*)

26 Assets held for sale (*)

  • 62

(*) Due to announcement made by Doğan Holding on 6 April 2018, total assets and liabilities of Glokal and Projeland and financial investment amount of Doruk Factoring that is held by Hürriyet, is presented as “Asset held For Sale” in accordance with IFRS 5.

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More information available at investor relations:

Name Title Phone E-mail

Nihan Sena HERTAŞ Investor Relations Manager +90 212 449 60 30 nshertas@hurriyet.com.tr Elif Özcan Investor Relations Specialist +90 212 449 60 88 elifozcan@hurriyet.com.tr