Management Presentation September 2014 1 lker: Who we are ? 1. 2 - - PowerPoint PPT Presentation

Management Presentation

September 2014

1 1. Ülker: Who we are ? 2. Key Investment Highlights 3. Financials 4. Appendix 2 7 23 28

2

We are the leading name in Turkish confectionery...

• 70 years of experience in Turkish confectionery
• Leader in biscuit and chocolate category with 46%

market share in each; #2 in cake category with 33% market share – 9M14

• Largest production capacity in the domestic market with

spread out facilities

• Consolidated annual net sales of TL 2.75 bn in 2013
• A gateway to the Middle East, Northern Africa and EU,

with exports to those regions accounting for c.20% of revenues Key figures – TL mn 9M 2014 Mcap as of 09/30/2014 5,164 Revenues (LTM) 2,893 EBITDA (LTM) 318 EBITDA margin % (LTM) 11.0%

† Excludes other non-confectionary sales of TL 25 mn

Production Facilities

Chocolate Established in 1991 Capacity: 194k tons/year 68k sqm closed area

Topkapı, Istanbul

Istanbul

Chocolate, chocolate covered biscuit Established in 1995 Capacity: 30k tons/year 12k sqm closed area

Silivri, Istanbul

Biscuit, cake, cracker & chocolate Established in 1986 Capacity: 123k tons/year 102k sqm closed area Non-Ülker branded products 75% owned by Ülker

Karaman

Cake Established in 1992 Capacity: 45k tons/year 27k sqm closed area

Hadımkoy, Istanbul

Biscuit Established in 1969 Capacity: 126k tons/year 86k sqm closed area The largest biscuit manufacturing facility in the Middle East

Ankara

Biscuit & cracker Established in 1997 Capacity: 85.5k tons/year 41k sqm closed area

Gebze

Gebze Ankara Karaman † † Yıldız Holding is Turkey’s leading food and beverages group with annual gross sales of TL15.7 bn as of 2013

Sales 9M14 k tons TL mn † % share † Biscuits 192 805 38% Chocolate 113 1,036 49% Cake 50 257 12% Shareholding Structure (As of 30.09.2014)

Yıldız Holding & Subsidiaries & Family Members 57,0% Free Float 43,0%

3

... and the “Best Recognized” FMCG brand...

Long lasting relationships with end users enhance brand perception

The Best in the Sweet and Salty Category (Silver Effie Award, Ülker Rondo, 2011) Most Recognized Company (AC Nielsen, 2nd place, 2010) The “Brand Award” (International Brands Conference, 2011) Best Recognized Brands Brand One Feels Close To # 1 # 2 # 3 # 4 # 5

• Strength of the brand is proven by national and

international awards

• Ülker has always been the “most recognized”

brand and “closest to consumers” ††

• Ülker brand essence and campaign theme:

“Happy moments with Ülker”

• Highly-popular sub-brands are in the market for

2-3 decades

Consistently ranks as one

• f the best

recognized brands in Turkey

†

† Arçelik is a household durable goods brand Source: ACNielsen 2011

4

...with dominant positions in growing markets

BISCUITS CHOCOLATES CAKES 46% 46% 33%

Market Share (9M14) (Volume based) Market Position

# 1 # 1 # 2 Biscuit Chocolate

† Retail market

# 1 in Petit Beurre Segment # 1 in Chocolate Covered Sandwich Segment # 1 in Special Biscuits Segment # 1 in Creamy Biscuits Segment # 1 in Sandwich Biscuits Segment Top 3 in Chocolate Covered Segment #1 in Spread Chocolate Segment

290K Tons 170K Tons 79K Tons

Market Size † (9M14 LTM)

Market leader in main categories Growth in Biscuit (Volume) Growth in Chocolate (Volume) *

#1 in Solid Chocolate Segment

Cake

#1 in Cake Segment

5

1996

Milestones of our success

1944 2003 2006 2007 2008 2009 2010 2011 2012 2013

• Established as a small scale family run bakery
• Ülker Gıda merged under its own title with Anadolu Gıda
• Ülker Gıda changed its name to Ülker Bisküvi: Emphasis on core business
• Acquisition of 25% stake in the premium chocolatier brand Godiva

Ülker Bisküvi investment: US$214 mn

• 2011 – 2013: Restructuring at all fronts

 New top management on board  Gathering all chocolate and cake businesses under Ülker Bisküvi  Disposal of 6 non-core assets. Reduced Godiva stake to 19% - recorded TL 100mn profit  Simplified traditional channel distribution – merger of production companies with sales companies;

consolidation of all sales under new sales company Horizon

 SKU optimization – 502 SKUs in 2010 vs. 330 SKUs in 2013  Cancellation of privileged shares and founder shares  New dividend policy – minimum 70% of distributable income  Free Float reached 40% after Yıldız Holding’s block sale

†Mcap as of year-end Ltm Revenue and September 30th 2014 closing Mcap

Revenues Mcap†

US$ mn

• Appointment of Murat Ülker as Chairman of Ülker and Yıldız Holding: new generation & new vision
• Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange
• Rapid growth led to complex corporate structure – 4 sales companies, 4 production

companies and minority stakes in 7 non-core assets

2014

• 2014:

 Ülker Biskuvi acquired 30% minority stake in Biskot  Divested stakes in Istanbul Gıda, Birleşik Dış Ticaret and Rekor

1,340 2,266 *

6 1. Ülker: Who we are ? 2. Key Investment Highlights 3. Financials 4. Appendix 2 7 23 28

7

Key investment highlights

Further margin improvement to be realized on the back of...

• Simplified and efficient distribution network
• Effective OPEX management
• Increasing share of higher margin chocolate sales

Top-line growth driven by...

• Growing market - young population with increasing purchasing power spending more on packaged foods
• Ülker - Regaining market share through optimization of SKU portfolio, category expansions and new product launches,

unlocking distribution power and new account additions High barriers to entry Yıldız Holding: Strong & supportive parent

• Biggest food and beverage group with TL 15.7bn turnover with 58 production facilities and 300 brands in 40 categories
• Strategic shareholdings in the leading food-retail discounters (Şok and Dia†) and cash & carry wholesaler (Bizim) in Turkey
• Ülker - Benefiting from Yıldız Holding’s unique distribution network, procurement power and experience in international markets

Targeting to become a regional player in markets with high growth potential

• Geographical expansion already on the way – Saudi Arabia and Egypt
• Seeking further international opportunities in high growth markets

is the best recognized FMCG brand in Turkey

1 2 3 4 6 Godiva: Hidden value

• US$750 mn revenue business - Global premium chocolate brand with significant brand equity worldwide
• Investing in store expansion, especially in the Middle East, China, Japan, Korea and Indonesia

5

• c.50% market share across the main categories
• Strong brand equity in Turkey and in neighboring

countries

• Access to an exclusive distribution network reaching

~200,000 sales points

• Largest production capacity in the domestic market

8

16% 12% 14% 15% 14% 12% 17% 25% 17% 17% 14% 11% 8% 7% 0-14 15-24 25-34 35-44 45-54 55-64 65+ EU-27 Turkey 59% 41% 59% 41%

1.7% 1.4% 1.3% 1.2% 0.9% 0.7% 0.5% 0.5% 0.5% 0.3% 0.2% 0.2% 0.2%

• 0.1%

Malaysia Turkey Indonesia S.Africa Brazil UK France Italy Netherlands Czech Rep. Poland Russia Greece Germany

Turkey has one of the youngest and fastest growing populations Attractive target consumer group

Source: World Bank, Turkstat

Sizeable market with a growing population Youngest population in Europe

Favorable demographics and young target population

1

Total population in millions

63 29 76 247 51 199 66 61 17 11 39 144 11 82 European median 41 yrs Turkey median 29 yrs

CAGR 2007- 2012 Population

Source: Turkstat, Eurostat

9

UK Germany Netherlands Russia USA France Italy Turkey '12 Turkey '07 Poland Indonesia Brazil S.Africa Malaysia Saudi Arabia Egypt Croatia Hungary Turkey '18 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10,000 20,000 30,000 40,000 50,000 60,000 Netherlands UK Italy USA France Russia Germany Turkey '12 Turkey '07 Poland Indonesia Brazil S.Africa Malaysia Saudi Arabia Egypt Croatia Hungary Turkey '18 0.0 2.0 4.0 6.0 8.0 10.0 12.0 10,000 20,000 30,000 40,000 50,000 60,000 UK Germany Netherlands Russia USA France Italy Turkey '12 Turkey '07 Poland Indonesia Brasil S.Africa Malaysia Saudi Arabia Egypt Croatia Hungary Turkey '18 0.0 2.0 4.0 6.0 8.0 10.0 12.0 10,000 20,000 30,000 40,000 50,000 60,000

...and c.10% CAGR in chocolate consumption

Biscuits consumption vs. GDP per capita Chocolate consumption vs. GDP per capita

Turkey’s consumption of biscuits and chocolate stands at 3.5 kg and 1.9 kg per capita, respectively Increasing GDP per capita expected to fuel biscuit and chocolate consumption

Kg per capita US$ per capita Kg per capita US$ per capita

US$20,000† GDP per capita target for Turkey by 2018 implies c.5% CAGR in biscuits consumption...

1

† IMF estimate

Spending increases in tandem with GDP per capita

R2=0.60 R2=0.54 Per capita consumption of biscuits and chocolate in Turkey grew at a CAGR of 2.3% and 7.0%, respectively, between 2008 and 2013 -still lower than peers

Source: Eurostat Source: Eurostat

10

• Portfolio restructuring started in late 2011
• Keeping star SKUs, discontinuing unprofitable ones –

Reduction from 502 SKUs in 2010 to 330 SKUs in 2013

• Increased brand investments through multichannel

advertising and social media / investment on star SKUs

• Distribution efficiencies / declining sales returns: 2.8% in

2011 vs. 0.5% in 2013 (0.5% in 9M14 vs 1.0% in 9M13)

• Increasing sales per SKUs
• New launches to grasp market share:
• Indulgence biscuits: Dore (launched in June 2013)
• Diet biscuits (launched in September 2013)
• New chocolate- Laviva- (launched in September 2013)
• A new cake line ‘’O La La’’ (launched in March 2014)
• New Wafer –Dido Black (launched in August 2014)
• New chocolate- Bi Rüya (launched in September 2014)

1 Regaining market share with portfolio management...

# of SKU and sales

Streamlined product portfolio and increased brand investment for improved sales

Market Share Development, Volume Based† Biscuit Chocolate Cake

II II II

>50%

Results of portfolio restructuring reflected as increased sales performance

Source: ACNielsen, Euromonitor † Retail market, Market shares may not add up to 100% due to rounding 570 370 330 330 330

2,7 4,8 7,1 8,3 8,8

0,0 2,0 4,0 6,0 8,0 10,0 100 200 300 400 500 600

2010 2011 2012 2013 9M14(LTM)

# of SKU Sales per SKU (TL mn)

11

Traditional retail 65% Organized retail 35%

Accessibility is a key success factor

... and unlocking distribution power ...

1

Typical distribution network in a similar FMCG network has a replacement value of

• c. US$100mn and requires

1,300 headcount 1,565 km Ülker domestic sales by channel 665 km Marmara 30% sales points 35% of total sales Aegean 17% sales points 10% of total sales Mediterranean 15% sales points 10% of total sales Central Anatolia 15% sales points 20% of total sales Black Sea 11% sales points 10% of total sales Eastern Anatolia 6% sales points 8% of total sales

• S. Eastern Anatolia

6% sales points 7% of total sales

US$ 100

Reaching ~200k sales points throughout Turkey

• 175k in traditional

channel through Horizon

• ~20k bullets in
• rganized channel

through Pasifik

200k

c.90% nationwide coverage - widest after beverage & tobacco companies

90%

Traditional retail dominates the biscuits and chocolate market Ülker benefits from Yıldız Holding’s wide distribution network throughout Turkey:

• Horizon in

traditional retail

• Pasifik in
• rganized retail

12 Horizon to consolidate traditional channel. Distributors sell solely Yıldız Holding brands

3 categories 65 Brands 330 SKUs 40 categories 300 Brands

• Biscuits
• Chocolates
• Cakes
• Baby products
• Personal care
• Light and diabetic

products

• Margarine and liquid oils
• Culinary
• Drinks
• Sugar candy & gum
• Breakfast items

Ülker products – c.60% in terms of value and c.35% in terms of volume in Horizon portfolio 60%

1

Brands

... through newly established exclusive distribution

Lower distribution cost Increased selling power with enhanced product portfolio Eliminating internal competition between distributors 30% Delivering c. 30% shelf space

• f a small grocery - 20% with
• nly Ülker products –

excluding tobacco and alcohol

13

Simplified route to market improving margins

Simplified and consolidated route to market creates cost efficiencies paving the way for further margin improvement

• Multi-channel route to traditional market
• Limited to single category sales
• 235 distributors
• # of points visited: 140k
• % of invoice issued by visit: 75%-80%
• Single route to traditional market – through Horizon
• Benefiting from Yıldız Holding product portfolio
• 103 distributors
• # of points visited: 175k
• % of invoice issued by visit: 90%

Other Food & Beverage Products Domestic Traditional Channel Biscuits Chocolates Cakes Horizon † (New Sales Company) Distributors Completed New Structure:

Before Current

Other Food & Beverage Products Distributors Domestic Traditional Channel Biscuits Chocolates Cakes Atlas (Ülker brand) Distributors Atlantik (Ülker brand) Atlas Previous Structure:

† Owned by Yıldız Holding, took over all traditional sales activities of Ülker as well as Yıldız Holding’s other companies’ sales activities

2

Traditional channel - Efficiency gains from restructuring

Decreased logistics expense More efficient route to sales points Enhanced distribution profit Stronger distributors with higher nominal gains Better and faster execution capability

14

22% 25% 20% 23% Biscuit Chocolate Cake Overall

2 Growing chocolate segment favoring margins

Gross profit margin % - 2013†† 48,6% 49,2% Chocolate share in total revenue 2012 Chocolate share in total revenue 2013

Increasing share of higher margin chocolate segment

† Chocolate business consolidated in 4Q2011 following the acquisition of Ülker Çikolota † † after depreciation

Overall margin benefits from high growth chocolate category Chocolate sales and total share in revenue† Stronger growth in chocolate sales 15% Growth between 2013 and 2012 7% Growth between 9M14 and 9M13

15

Measures reflected in margins, still room to go…

Components of EBITDA margin improvement

2

16

4.500 271 399 83 1.000 2.748 2013 Sales Biscuits Chocolates Cakes

• Int. Growth

2016E Sales

15.0% 1.0% 1.8% 0.6% 11.5% 2013 EBITDA Reduction in Category Mix Better Cost & 2016E

Long Term Guidance

By 2016, Ülker is expected to surpass TL4.5bn net sales (including inorganic growth) with an EBITDA margin of above 15%

EBITDA growth to surpass sales growth

Chocolate volume up 6 to 8% annually Biscuits and cakes volume up 4 to 6% annually Average price to be increased by ± 2% vis-a- vis inflation Capex: 2.5- 3.0% of net sales Distribute minimum 70%

• f

distributable income

Sales 2013-2016 (TL mn)

2013 EBITDA margin % Reduction in sales discounts Category mix effect / New launches Better cost & OPEX management 2016 EBITDA margin %

EBITDA margin 2013-2016

CAGR 18%

2

17

• Extensive and exclusive distribution network - the most relevant entry barrier in the

market

• Reaching ~200,000 points of sales throughout Turkey
• 6 facilities in 4 cities, representing the largest production capacity in the domestic

market

• Ankara biscuit factory - the largest biscuit manufacturing facility in the Middle East
• Geographically diversified production base – competitive advantage in route to

market

High barriers to entry

Exclusive distribution Largest & spread-

• ut production

capacity in the domestic market

3 High barriers to entry

Dominant presence in Turkey across the board

• c.50% dominant market share in biscuits and chocolate
• Significantly higher brand awareness of Ülker branded products
• Always been the “most recognized” brand and “closest to consumers”

Strong brand equity with established market positions

The Best in the Sweet and Salty Category (Silver Effie Award, Ülker Rondo, 2011) Most Recognized Company (AC Nielsen, 2nd place, 2010) The “Brand Award” (International Brands Conference, 2011)

18 Expansion started with Saudi Arabia and Egypt, focus on underpenetrated markets

Saudi Arabia

• Population of 30.2 mn growing at CAGR of 1.8%

between 2007-2013

• US$ 924bn GDP growing at c.7%
• c.US$ 1.9 bn confectionary market
• c.7% market share in biscuit market
• c. 2% market share in chocolate market
• Established in 2000
• 42% Yıldız Holding, 58% local partner
• Biscuit, chocolate and cake production
• Capacity: 43k tons
• c. 100 trucks reaching c. 10,000 sales

points

(US$ mn) 2013 2014E Net sales 91 100 EBITDA margin 6% 9%

(US$ mn) Market size Growth† Per capita consumption†† Chocolate 993 9.0% 1.9 Biscuits 717 5.6% 3.7

FMC (manufacturing)

4 Platform for further growth

Egypt

• Population of 87 mn growing at CAGR of

1.7% between 2007-2013

• US$ 568bn GDP growing at c.3%
• c.US$ 1.4 bn confectionary market
• Less than 1% market share in biscuit

market

• Established in 2007
• 46% Yıldız Holding, 54%

local partner

• Biscuit production
• Capacity: 27.5k tons

(US$ mn) 2013 2014E Net sales 36 45 EBITDA margin 18% 12%

(US$ mn) Market size Growth† Per capita consumption†† Chocolate 408 5.3% 0.4 Biscuits 957 9.4% 2.9

• Established in 2010
• 100% Yıldız Holding
• Biscuit sales
• Manages 12 distributors and

reaches 20,000 sales points Hi Food (manufacturing) Ülker Egypt (sales)

Potential expansion areas

Plans to expand business in under- penetrated markets with high growth potential Target regions: Middle East, North Africa, and Eastern Europe

† 2008-20113 CAGR-Volume †† Kg per capita - 2013

Source: Euromonitor Source: Euromonitor

19

• Leading premium chocolate producer with significant brand

equity worldwide

• Entry into China, S.Korea, Indonesia, S. Arabia and Turkey

since the acquisition

• Yet to reach its potential in terms of growth and margins by
• restructuring the company,
• investing in store expansion, especially in the Far

East,

• closing down inefficient stores,
• reshuffling the product portfolio,
• Godiva plans to open 50 new stores per annum and reach

US$1.0 bn in revenues and US$120mn EBITDA in 2016

5 Godiva – Hidden value

Key figures 2008 2013 2014E # of stores 432 439 463 Revenues US$ 490mn US$ 704mn US$ 769mn EBITDA

• US$ 49mn

US$ 56mn

• Owns and operates 439 retail boutiques in 84 countries

as of 2013 year end

• Available via over 10,000 specialty retailers

Geographical presence of Godiva as of 2013 year end 195 stores in the US &Canada 35 stores in Europe 209 stores in Asia

Godiva store in Harrods, London Godiva store in Denver, the US

Year U.S. Japan China Pac Rim Belgium Others 2008 262 99

• 32

8 21 2013 195 128 46 35 5 30 2014YE 199 135 54 38 5 32

Geographical store evolution Acquired by Yıldız Holding in 2008 Ülker stake in Godiva - 19%

20

Experience in managing international operations

• Operates in 6 sectors with TL15.7 bn gross sales in 2013
• The largest branded food group in CEEMEA
• 58 production facilities, 300 brands in 40 categories including biscuits, chocolate, confectionary, margarine & liquid oils,

culinary products, dairy products, beverages, fruit juice and frozen foods

• Benefits from its diversified business portfolio - significant distribution and purchasing synergies across the portfolio
• Increased interests in food retailing with strategic stakes in top three discounters - Bizim, Şok and Dia accounting for 7%
• f organized food retail sales in Turkey

6 Yıldız Holding: Strong & supportive parent

Food & Beverages Packaging Finance Retail Real Estate Personal Care Best recognized food brand #1 in biscuits & chocolates #2 in dairy products #1 in edible oils and fats #1 in overall baby food #1 in culinary products Premium segment chocolate producer acquired in 2008 In excess of 200k sales points nationwide c.90% coverage, second best after Coca-Cola Icecek Diversified product portfolio holding strong market shares JVs with leading international players Sole and first brand sought

• ut for co-branding

Turkey's first food company to establish a nationwide distribution network Bizim and Şok -7%

• f Ülker’s net sales

as of 1H14 Dia - new account entered after the acquisition in July 2013

† 2012 revenues

Leading international baked snacks producer acquired in 2014

21

Beyond 2016

Long-term ambitions

Productivity Brand investments

• Boost product quality through operational efficiency
• Further efficiency and productivity in distribution

channels

• Meet/beat international benchmarks
• Ensure the continuity of brand investments
• Offer powerhouse brands to consumers at

reasonable prices

• Increase market share

Growth

• Increase operating profit by higher sales volumes

and revenues

• Become a strong regional player
• Further efficiency and productivity in distribution

channels

• Growth through acquiring national champions
• Sustain best corporate governance practices

Investor level

22 1. Ülker: Who we are ? 2. Key Investment Highlights 3. Financials 4. Appendix 2 7 23 28

23

Increasing sales

Sales volume by category

† Excluding non-confectionery sales volume †† Following acquisition of Ülker Çikolata in 2011, chocolate operations have been consolidated in figures from 4Q2011 onwards

Net sales by category

Consolidated sales volume was down by 4.0% in 3Q14 and was up by 1.5% in 9M14, with decline in 3Q mainly attributable to:

• Low exports volume

Consolidated sales revenue up by 3.1% in 3Q14 & 7.3% in 9M14, the growth in 3Q was primarily as a result of:

• Price increase & downsizings in Chocolate and

Biscuits

• Lower exports limited the growth
• Lack of revenue from divested sales companies
• Like for like basis, revenue growth of

8.3% (including sales companies) Tonnes TL mn

114.686 110.095 349.470 354.670 652 673 1,978 2,123

24

75,1 72,9 232,9 235,4

3Q13 3Q14 9M13 9M14

144,6 125,5 454,8 441,4

3Q13 3Q14 9M13 9M14

Increasing margins

Gross profit and margin % EBITDA and margin % ***

18.7% 23.0% TL mn TL mn Ease in gross profit in 3Q14 is due to:

• High input costs
• Divesture of sales companies

***Excluding other income/(expense) from operations

EBITDA was down to TL 73 mn in 3Q14 as a result of:

• High input costs
• Tight opex management
• Price increases limited the margin loss

20.8% 22.2% 10.8% 11.8% 11.1% 11.5%

25

Working capital and net debt

Average working capital days Net debt

• Net debt as of 3Q14: TL 492 mn
• Net debt to EBITDA (LTM) is 1.55x
• Financial debt
• US$ denominated due to company strategy
• Maturity breakdown as of 9M14:
• Short term 100%
• Long term –

Cash & cash equivalents breakdown based on currency

• TL: 6 mn
• US$: 335 mn†
• Euro: 2 mn†
• Net working capital was TL 413 mn as of 3Q14 and TL

325 mn at the end of 2013

• Working capital requirement over sales ratio was

14.3% in 3Q14 (LTM)

• FX short position of TL 447 mn

† Amounts expressed in Turkish Lira “TRY”

Average WC days 2011 2012 2013 3Q13 3Q14 Trade receivables 87 84 76 80 77 Inventory 38 34 33 34 36 Trade payables 79 81 77 73 68 WC - days 46 37 32 41 45 Net debt - TL mn 2012 2013 3Q14 Financial debt 1.501 1.260 835 Short term financial debt 614 1.250 835 Long term financial debt 887 10

• Non-trade receivables from related

parties 131 3 Cash and cash equivalents 1.268 1.164 343 Net debt 102 92 492

26

Net debt

Net debt Development

† Amounts expressed in Turkish Lira “TRY”

27 1. Ülker: Who we are ? 2. Key Investment Highlights 3. Financials 4. Appendix 2 7 23 28

28

Income statements (TL mn) 2012 2013 Growth 13-12 9M13 9M14 Growth 9M14-9M13 Sales Revenue 2.343 2.748 17% 1.978 2.123 7% Cost of Sales (1.838) (2.115) 15% (1.524) (1.682) 10% Gross Profit 505 633 25% 454 441 (3%) Gross Profit Margin % 21,6% 23,0% 23,0% 20,8% OPEX (332) (370) 11% (178) (180) (5%) Marketing, Sales and Distribution Expenses (227) (263) 16% (177) (170) (4%) General Administration Expenses (96) (94) (2%) (73) (67) (8%) Research Expense (9) (13) 51% (10) (10) 4% EBIT 173 263 52% 195 194

• EBIT Margin

7,4% 9,6% 9,8% 9,1% Depreciation (48) (52) 8% (39) (41) 7% EBITDA 221 315 43% 233 235 1% EBITDA Margin 9,4% 11,5% 11,8% 11,1% Other Operating Income / Expense* & Inc/Exp From Inv. Activities 73 256 251% 145 88 Finance Incomes / Expenses* (3) (240) n.m. (148) (95) Profit Before Taxation 244 279 15% 191 187 Tax Charge From Continued Operations (48) (52) 8% (39) (20) Net Profit (Equity holders of the parent) 167 189 13% 123 155 27%

Financials

Consolidated income statement

29

Financials (cont’d)

Consolidated balance sheet

Balance sheet (TL mn) 2013 3Q14 Current Assets 2.129 1.413 Cash and cash equivalents 1.164 343 Financial investments 1 1 Trade receivables 649 645

• Trade Receivables from related Parties

447 606

• Other Trade Receivables

202 39 Other receivables 20 1

• Non-trade Receivables

3

• Other short-term Receivables

17 Inventories 198 256 Other current assets 96 168 Non-Current Assets 1.033 1.051 Financial investments 465 467 Investment properties 10 10 Tangible assets 533 546 Intangible assets 1 1 Deferred tax assets 4 9 Other non-current assets 21 18 Total Assets 3.162 2.463 Balance sheet (TL mn) 2013 3Q14 Current Liabilities 1.827 1.305 Financial liabilities 1.250 835 Derivative financial liabilities

• Trades payables

508 413

• Trade payables to related parties

273 212

• Other trade payables

235 201 Other payables 1 1 Corporate tax payable 11 13 Debt provisions 23 17 Employee benefits 18 18 Other current liabilities 16 7 Non-Current Liabilities 67 54 Financial liabilities 10 Employee benefits 23 26 Deferred tax liabilities 34 28 Other non-current liabilities Shareholders' Equity 1.268 1.104 Share capital 342 342 Inflation adjustments to share capital 108 108 Valuation funds 260 262 Restricted reserves 126 150 Actuarial gain / loss (1) Retained earnings 106 2 Net income for the year 189 155 Non-controlling interest 138 85 Total Liabilities and S.E. 3.162 2.463

30

Cost Structure

Components of Cost of Goods Sold (Consolidated)

Raw Material 65% Other 35% Raw Material Breakdown

Wheat 20% Sugar 15% Palm Oil 15% Cacao 15%

• Palm Oil and Cacao are imported in USD terms
• Wheat and Sugar is procured from domestic sources in TL terms

31

Price Performance of Cocoa & Palm Oil

Price of 2,822 on 21.10.2014

Cocoa Palm Oil

Source: Bloomberg, in USD

Price of 2,235 on 21.10.2014

32

Disclaimer

• 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

• ther 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
• f 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