PINAR ENTEGRE ET VE UN SAN. A.. Earnings Presentation, 2014 Q1 - PowerPoint PPT Presentation

PINAR ENTEGRE ET VE UN SAN. A.Ş. Earnings Presentation, 2014 Q1

Highligths • Innovative and pioneer • Among most admired • Hygenic and EU standard • More than 300 SKUs companies in Turkey* production •Among Turkey’s • Technical expertise & sectoral • R&D expertise Superbrands** know how • One of the top ten most reputable brands *** Product Brand Production Portfolio Equity • Food safety and quality at • YBP – Turkey’s biggest • Purchase operations spread every stage from supply to nationwide cold and frozen out to 6 territories final product distribution chain • Strong relations with farmers • ISO 9001-2008 • More than 150.000 sales • Contractual stock farming • ISO 14001 points • Technical know-how and • ISO18001 expertise • FSSC 22000 • Synergy in the distribution of • ISO 50001 dairy and meat products Distribution Quality Supply Network * GFK&Repman 2013 ** Capital&GFK 2013 *** Superbrands 1

Market Dynamics Price of Food Products Carcass Meat Average Prices (TL) Processed Food Food Prices 2012 2013 2014 Unprocessed Food (% change) 20 A slight decline in 2014 Q1 in 15 unprocessed food prices 10 J A J O  In 2013, the red meat production was 996K tons with an increase of %8.8 and the poultry meat (chicken&turkey) production Packaged Delicatessen Share was 1798K tons with an increase of %1.8. (TUIK) 67,25% 65,15% 64,63%  Per capita red meat consumption is 13.01kg in 2013 while it was 12.11 in 2012.  Registered delicatessen market is around 67K tons (1,4 bn TL) (Nielsen)  Growth trend in the segment of small portion salami products and frozen floury products. 2 2011 2012 2013 Source: Nielsen

Ahead of Competition - I Products Share Position  Pınar Et, increasing its market share in total delicatessen, maintained its Salami 47,4% Lider leadership with 23,7% market share which Sausage 38,1% Lider is more than double of nearest competitor. (2013: %22,9) Soujouk 16,0% Lider  As the leader brand Pınar, brought new Total Delicatessen 23,7% Lider reforms to the category with new tastes. Source: Nielsen, 2014-Q1, Value Share Pazar Payı Karşılaştırması  60% Market narrowed by %11.6 in terms of Pınar Nearest Competitor volume and grew by %10.5 in terms of 40% value in 2013. Despite the contraction in the market, Pınar Et increased its market 20% shares in all delicatessen segments. 0% (Nielsen) Salami Sausage Soujouk Total Delicatessen Source: Nielsen, 2014-Q1, Value Share 3

Ahead of Competition - II 47,4% Salam (Leader) 43,9% 38,1% 37,4% 35,3% 35,2% 33,3% Sausage (Leader) 28,4% 26,8% 25,8% 23,7% 22,9% 20,6% Total Delicatessen 20,0% 19,2% 17,0% 16,2% 16,0% 15,7% (Leader) 14,7% Soujouk (Leader) 2010 2011 2012 2013 2014-Q1 Source: Nielsen – Value Share Pınar Et increased its market shares of all delicatessen segments in 2014 Q1. 4

New Products & Product Differentiations Pınar Börek Pınar Pizzato Mini Pınar Kadınbudu Meatball

Campaigns Frozen Meatballs Pınar Açbitir Salami Pınar Gourmet Soudjouk www.lezzetfikirleri.com 6

Product Groups & Sales Channels Breakdown of Net Sales (2014-Q1) Others; 4%  Continued to focus on high Fresh Meat; 7% value added products. Breakdown of Distribution Channels (2014-Q1) Processed Products; Direct; 89% 21% Export; 3% YBP; 76% 7

PINAR ENTEGRE ET VE UN SAN. A.Ş. Financial Results

Sales and profitability Net Sales (Mn TL) Gross Profit (Mn TL) 83,1 CAGR %12 72,4 479,3 64,7 416,4 59,9 60,3 383,7 352,8 307,8 %30,0 19,8 18,7 129,9 100,0 2009 2010 2011 2012 2013 1Q13 1Q14 2009 2010 2011 2012 2013 1Q13 1Q14 Net Profit (Mn TL)  In 1Q 14, the net sales grew by %30 compared 40,1 39,5 38,3 to 1Q 13, driven mainly from price and product 32,7 29,7 mix. The product prices are upwards in sector.  Although not to be able to reflect the increases in raw material totally, the better operational performance and the increase in association 9,0 7,8 revenues balanced the margins. 1Q14 9 2009 2010 2011 2012 2013 1Q13

Income Statement 31.03.2014 31.03.2013 Difference % Change (Million TL) Net Sales 129,9 100,0 29,9 30,0 Cost of goods Sold (110,1) (81,3) (28,8) 35,5 Gross Profit 19,8 18,7 1,1 5,9 R&D Expenses (0,3) (0,3) (0,0) 8,9 Sales, Distribution and Marketing Expe (7,4) (6,2) (1,2) 19,6 General Administration Expenses (4,6) (4,7) 0,1 (1,1) EBIT 7,5 7,6 (0,1) (1,0) Share of Results of Investments in Associates 2,1 0,8 1,3 155,9 Other Income 1,0 0,4 0,6 163,6 Other Expenses (0,2) (0,1) (0,1) 262,0 Financial Income (Net) 0,5 0,9 (0,5) (50,7) Profit Before tax 10,9 9,6 1,2 12,6 Tax (1,8) (2,0) 0,2 (9,0) Net Profit for the Period 9,0 7,6 1,4 18,4 EBITDA 10,0 10,5 (0,5) (4,4) Total Assets 455,0 427,8 27,3 6,4 Equity 309,4 323,8 (14,4) (4,4) 10

Profit Margins Gross Margin (%) EBIT Margin *(%) 18,7% 7,9% 17,4% 7,9% 17,3% 7,6% 15,7% 15,2% 14,5% 6,3% 5,8% 5,1% 2011 2012 2013 1Q13 1Q14 4Q13 2011 2012 2013 1Q13 1Q14 4Q13 EBITDA Margin **(%) Net Profit Margin (%) 10,5% 7,8% 8,0% 10,0% 7,7% 10,1% 7,6% 6,9% 8,7% 6,6% 7,7% 7,4% 2011 2012 2013 1Q13 1Q14 4Q13 2011 2012 2013 1Q13 1Q14 4Q13 11 * Ex. Other income and expenditures ** Earnings before Interest, Tax, Depreciation, and Amortization

Quarterly Results Net Sales (Mn TL)  Despite the shrank in the market in terms of volume, Pınar Et maintained a strong growth 130 122 by %14 in terms volume and by %30 in terms of value. 100 EBITDA* (Mn TL) 10,5 10,0 9,0 1Q13 1Q14 4Q13  In 2014 Q1, we increased all profit margins with the succesful pricing strategy, QoQ. 1Q13 1Q14 4Q13 12 * Earnings (ex. other income and expenditures) before tax, dep. and amortization.

Basic Ratios, Net Financial Debt & Net Working Capital 31-Mar-14 31-Dec-13 31-Mar-14 31-Dec-13 (Million TL) Current ratio Cash & Cash Equivalents 1,29 1,70 7,21 13,78 Leverage ratio S/T Bank Borrowings 0,32 0,25 0,94 0,80 S/T Fin Debt/T. Fin Debt L/T Bank Borrowings 1,00 0,06 0,00 11,66 Net Financial Debt/EBITDA Net Financal Debt - - (6,3) (1,3) Total Fin Debt/Equity 0,00 0,04 * Finansal borç aynı koşullarda Grup Şirketlerine devredilmiştir. 80 60  40 Continuous focus on risk management and 20 productivity  Effective working capital 0 Mn TL management  Strong balance sheet and -20 liquidity management -40 -60 -80 Trade Receivables Trade Payables Inventories 13

Dividends 90,4% 90,8% 84,4% 79,0% 74,7% 61,6% 66,8% 59,9% 0,65 TL 0,62 TL 0,54 TL 0,53 TL 19,5% 0,36 TL 11,5% 9,4% 0,28 TL 0,23 TL 9,6% 8,6% 7,9% 6,9% 8,5% 0,14 TL 6,3% 0,12 TL 4,5% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dividends Per Share Payout Ratio Hisse Başı Net Temettü Temettü Ödeme Oranı Temettü Verimi* Dividend Yield (Net) 14

Overview of 2014 Q1  The raw material prices began to follow an upward trend in the end of 2013 and this situation has continued in 2014 Q1. The raw meat prices are higher by %22 when compared to 1Q 13.  Cost saving measures and projects to improve production efficiency have continued. (OMI-Lean Six Sigma Projects)  Continued to focus on high value added products and smaller packaged products suitable for purchasing power of consumers. 15

Strategies Growing above market growth rates in the segments we operate in, with;  An effective inventory management,  A product portfolio targeting needs of various segments  A wide spread distribution  An efficient utilization of social media  Developments in “Away from Home” market  Continuing marketing investment. 16

Ownership & Participation Structure Share Performance Shareholder Structure Share Performance Relative and Absolute Performance Others of Pınar Et Shares 140 8,00 6,80 7,00 120 6,00 100 5,00 80 94,76 4,00 60 3,00 40 2,00 20 1,00 - 0,00 İMKB - TÜM'e Göre (Sol Eksen) PETUN (Sağ Eksen) 31.12.2010 = 100 %38,0 %23,4 %44,9 %26,4 17

Disclaimer and Contact Information 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. This presentation contains forward-looking statements that reflect the company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Pınar Entegre Et ve Un San. A. Ş . nor any of its affiliates, advisors, representatives, directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it. Company’s financial statements are available on www.kap.gov.tr and www.pinar.com.tr websites. Investor Relations Department Tel: 90 232 482 22 00 Fax: 90 232 484 17 89 investorrelations@pinaret.com.tr 18

Thank You PINAR ENTEGRE ET VE UN SAN. A.Ş.