PINAR ENTEGRE ET VE UN SANAY A. . INVESTOR PRESENTATION April - - PowerPoint PPT Presentation

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PINAR ENTEGRE ET VE UN SANAYİİ A.Ş.

INVESTOR PRESENTATION

April 2008 April 2008

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Disclaimer

This This presentation presentation does

• es not constitute

not constitute an offer an offer or invitation nvitation to purchase

• purchase or

subscription subscription for for any any securities securities and and no part

• part of it shall
• f it shall form the
• rm the basis

asis of or

• f or be relied

be relied upon upon in connection in connection with with any any contract

• ntract or
• r commitment

commitment whatsoever. whatsoever. This This presentation presentation contains

• ntains forward-looking
• rward-looking statements

tatements that hat reflect eflect the the company

• mpany

management’s management’s current current views views with ith respect espect to ce

• certain

rtain future uture events. Although

• vents. Although it is

it is believed believed that hat the the expectations xpectations reflected eflected in in these these statements tatements are re reasonable, they reasonable, they may may be affected be affected by by a variety a variety of variables f variables and nd changes changes in underlying in underlying assumptions ssumptions that that could could cause ause actual actual results results to differ

• differ materially. Neither
• aterially. Neither Pınar Süt nor

nar Süt nor any any of its

• f its

affiliates, advisors, representatives, directors, managers affiliates, advisors, representatives, directors, managers or

• r employees

employees nor nor any any

• ther
• ther person

person shall shall have have any ny liability liability whatsoever hatsoever for for any any loss loss arising arising from rom any any use use

• f this
• f this presentation

presentation or its ts contents contents or otherwise therwise arising arising in connection n connection with with it. it. Company’s Company’s financial inancial statements tatements are re available available on

• n www.imkb.gov.tr

www.imkb.gov.tr and and www.pinar.com.tr/investorrelations www.pinar.com.tr/investorrelations websites. websites.

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Yaşar Group At a Glance

Established in 1945 One of the Turkey’s most important and highly respected conglomerates Core businesses: Food & Beverage and Paint Non-core businesses: Tissue, Trading and Services 24 companies, 2 foundations, over 6,600 employees Consolidated revenues of approx. US$ 1,1 bn and EBITDA of US$ 109 mn in FY2006. Six subsidiaries listed on the Istanbul Stock Exchange, combined market cap* YTL 800 mn. Prominenty in Turkish economy with 5 companies ranking among top private 500 of Turkey Widespread and effective distribution network in FMCG market R&D expertise, proven product innovation capabilities Strong track record as an “innovator” in Turkey Marketing expertise, strong brand portfolio Strong presence in Turkish food & beverage and paint industries IT Systems Signed the UN Global Compact on 12 November 2007

* As of April 21,2008

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Market Leader in Food and Beverages: PINAR

• Launched in 1975, Pınar is the market leader in many sub-segments of FMCG
• Pınar brand is internationally recognised, especially in the Gulf countries
• Selected among “Turkey’s Superbrands” in 2005 with 99% brand awareness and

ranked #1 according to the brand potential index (source: GFK-2005)

• #1 Turkish brand that comes to mind in “milk“, “processed meat“ and “water“

(bottled and home&office delivery) categories (source: ACNielsen-2006)

• 6th most valuable brand in Turkey with an estimated brand value of $802 million

(source: Brand Finance-2005)

• As one of the most valuable Turkish brand, part of the Turquality project

supported by the Turkish government

• According to the “Turkey Customer Satisfaction Index”, selected the best brand

in meet and meet products sector (source: Kalder-2007)

• Online traceability of the production through

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MEAT & MEAT PRODUCTS SECTOR

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Meat and Meat Products Industry

• Global meat market expected to increase by 50% in the next 20 years
• Brazil, Argentina and India are expected to control the meat supply
• Custom barriers are expected to decrease
• Agricultural and export supports will decrease together with the increasing functionality
• f WTO.

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Meat & Meat Products Industry In Turkey

• Rapid growth in delicatessen market is observed.
• Production is expected to reach 3.0 mn tons (1.8 mn tons currently)
• Per capita consumption is expected to increase from 25 kg to 39 kg.
• Today there is a
• Registered delicatessen market of 60.000 tons (1 bn USD) (Real market more than twice)
• Red meat market of 4,8 bn USD

Penetration %

86.7 7.2 63.2 72.5 90.3 8.7 67.9 75.2 94.0 5.6 83.0 87.3 95.4 4.7 88.1 90.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 Chicken Turkey Charcuterie Red Meat 2004 2005 2006 2007

Charcuterie Market

54,260 60,618 67,253 40,000 45,000 50,000 55,000 60,000 65,000 70,000 2005 2006 2007 Years Tonnes

Source: AC Nielsen

11%

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Meat & Meat Products Industry In Turkey

• Total number of cattle is around 10,5 million heads and lamp&sheep 25 million

heads.

• Annual beef production in Turkey is 800.000 tons. (half is registered.),
• Broiler production around 950.000 tons,
• Turkey meat production around 50.000 tons,
• %15 – 20 of the butcher quality cattle sourced from big farms,
• Packed meat products market is expected to grow %6 in 2007,
• Meat consumption per capita ;

6,5 6,5 12,5 12,5 9,4 9,4 Turkey Turkey 42,3 42,3 21,6 21,6 67,5 67,5 E.U E.U. (25) (25) 28,4 28,4 11,7 11,7 27,6 27,6 World World Fish Fish Pou Poultry try Meat eat Re Red Meat

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Potential Effects of EU Conformity Period

An increase in the;

Registered meat production Demand on packed meat and meat products Quality awareness of consumers Productivity Demand on safe food Quality and the quantity of the raw material at each step

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PINAR ET Is Ready for EU

Certified “turkey processing plant” by the Ministry of Agriculture and Rural Affairs to export to the E.U. Modern processing technology Advanced labroratory competence, TSE-ISO-EN 9000 : Quality Management System Certificate, TSE-ISO-EN 14000 Environmental Management System Certificate TSE-ISO-EN 22000 Food Safety Management System Certificate EFSIS “European Food Safety Inspection Service” audits, Grade A, “High Operational Standards.” Supplier based performance measurement 100% traceability from farm to fork Sustainable qualified human resources

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Meat & Meat Products Sector Promises High Potential For Growth

• Significant growth potential with 7-10% p.a. on average, with major drivers of this

growth including favourable Turkish economic and demographic developments and close proximity to EU and Middle East markets

• Growing trends towards packaged products for health and hygiene reasons
• Increase in the number of working women, leading to an increase in

demand for ready meals

• Rising education levels, affecting consumption decisions for branded and

healthy products

• Consumer trends towards value-added and enriched products
• Branded Products: Pınar is ahead of competition on brand recognition, product quality,

corporate image and reputation, customer loyalty and consistency of supply

• Reduction in VAT rates of delicatessen in June 2007 is expected to have positive effect

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COMPANY OVERVIEW

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1985 ’88 ’90 ’95 ’00 ’02 ’04 ’06 2007

1985...

Türkiye’s first private integrated modern meat plant Pınar Meat was

• established. Meat obtained

at slaughterhouse under hygienic conditions and fully-automated packages sausage flavoured with garlic, salami, sausages and other delicatessen products were appreciated by the consumers.

1987

First hamburger meatball in Türkiye was produced upon cooperation between Pınar Meat and McDonald’s. Pınar Meat introduced frozen ready food to the Turkish people.

1988

Birmaş Markets were established to sell carcase meat products by Pınar Meat.

1994

Pınar Meat became first meat production Company to which TS ISO 9002 Quality System Certificate has been awarded.

1998

Pınar established first full- integrated turkey production facilities in Turkey and introduced white turkey meat.

2000

Pınar Meat produced sliced delicatessen varieties at full- automated modern facilities.

2001

Pınar Meat produces traditional Turkish döner food, preserving its original taste, and offered for sale throughout Turkey.

2001

Pınar Meat realised production of frozen sea products.

2003

Pınar Meat passed to TS ISO 9001-2000 Certificate.

2004

Pınar Meat was granted TS ISO 14001 Environmental Management System

2004

Nine varieties of meat balls were introduced under the concept of Türkiye’s Meat Balls.

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Company Overview

• 1985 Pınar Et established as the first private integrated processed meat factory
• 1998 Turkey’s first fully integrated Turkey meat facilities with the introduction of white

Turkey meat

• Listed in Istanbul Stock Exchange
• % 33 of total outstanding shares in free float
• 545 employees
• Price at April 21,2008 TRY 4,12
• Market Cap ($mn) : 136

Pınar Süt Mam.San. A.Ş., 13% Free Float, 35% Yaşar Holding A.Ş., 52%

1 3 , 7 4 2 3 ,5 7 2 2 , 9 1 8 ,8 7 1 4 ,8 2 7 , 1 9 4 5 1 0 1 5 2 0 2 5 1 9 . 1 . 2 7 1 5 . 3 . 2 2 5 . 5 . 2 3 1 . 7 . 2 3 1 . 8 . 2 1 . 9 . 2 7 1 . 1 . 2 7 8 . 1 . 2 1 9 . 1 . 2 3 1 . 1 . 2 1 6 . 1 1 . 2 7 3 . 1 2 . 2 7 1 4 . 1 2 . 2 2 8 . 1 2 . 2 1 1 . 1 . 2 2 5 . 1 . 2 8 . 2 . 2 2 2 . 2 . 2 8 7 . 3 . 2 8 2 1 . 3 . 2 4 . 4 . 2 1 7 . 4 . 2

Foreign Stake in the Free Float

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Relative Performance to ISE-100

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40 60 80 100 120 140 160

D e c e m b e r

• 6

J a n u a r y

• 7

F e b r u a r y

• 7

M a r c h

• 7

M a y

• 7

J u n e

• 7

J u l y

• 7

A u g u s t

• 7

S e p t e m b e r

• 7

O c t

• b

e r

• 7

N

• v

e m b e r

• 7

D e c e m b e r

• 7

J a n u a r y

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F e b r u a r y

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M a r c h

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A p r i l

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Notable Participation Value

Sales and distribution of products of Pınar Süt, Pınar Et & other food products Pınar Foods GmbH, Germany Ownership % 44.94% Carrying Value 1.4 M YTL Production and distribution of water and food products in Europe Pınar Anadolu Gıda

• San. ve Tic. A.Ş.

Ownership % 20.00% Carrying Value 1 M YTL Production of dairy and meat products in Yozgat Çamlı Yem, Besicilik

• San. ve Tic. A.Ş.

Ownership % 23.38% Carrying Value 18.5 M YTL Agribusiness- Feed production, fish, cattle and turkey farming Yaşar Birleşik Pazarlama Dağıtım Turizm ve Ticaret A.Ş. (YBP) Ownership % 38.26% Carrying Value 68.6 M YTL

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Market Position

Source: AC Nielsen

Market Share Comparison

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Soudjouk Sausages Salami Pre-cooked Ready Meals (turkey based) Frozen Ready Meals (meat based)

PINAR Nearest Competitor

LEADER 15 SOUDJOUK LEADER 30 SAUSAGES LEADER 31 SALAMI LEADER 67 FROZEN READY MEALS (MEAT BASED) POSITION POSITION MARKET MARKET SHARE SHARE (% (%) PRODUCT PRODUCT

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Marketing Expertise

The market is continuously growing Pınar Et is maintaining the leadership in the market

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2004 2005 2006 2007 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% Total Processed Meat Products- ('000 YTL) Pınar Share %

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FINANCIAL PERFORMANCE

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Gross Profit Margin & Sales by Product & Seasonality

There is no significant seasonality for sales of Pınar Et

SALES BY PRODUCTS

RE D M E AT CHARCUTE RIE TURKE Y CHARCUTE RIE RE ADY M E ALS (M E AT BASE D) RE ADY M E ALS (TURKE Y BASE D) RE D M E AT RE ADY M E ALS (FISH BASE D) OTHE R

23% 23% 28% 27% 21% 24% 27% 27% 21% 26% 28% 25% 21% 26% 29% 25% 21% 25% 29% 26%

0% 20% 40% 60% 80% 100% 2003 2004 2005 2006 2007

Sales % in each quarter

Q4 Q3 Q2 Q1

GROSS PROFIT & GROSS MARGIN

• 10

20 30 40 50 60 70

31.12.2003 31.12.2004 31.12.2005 31.12.2006 31.12.2007

0% 4% 8% 12% 16% 20% 24%

Gross Profit (Million YTL) Gross Margin %

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Performance Highlights

6,500,250 10,833,750 14,300,550 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2004 2005 2006 DIVIDE NDS Dividends P aid

13% 11% 11% 0% 2% 4% 6% 8% 10% 12% 14% 2004 2005 2006 DIVIDEND YIELD Dividend Yield

19,106,918 26,466,531 29,889,313 32,392,925 42,515,549 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 2003 2004 2005 2006 2007 E B IT D A YT L E B IT D A YT L 2,828,769 8,706,329 16,291,764 23,233,776 30,408,191 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2003 2004 2005 2006 2007 N E T P R O F IT S YT L N E T P R O F IT S YT L

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2007 Sales & Production Breakdown

2007 Sales ('000 YTL)

280,379 67,275 2,319 223 125

P roducts M eat Rendering Other sales Trade goods

2007 Production (Tonnes)

29,751 4,095 7,973

P roducts M eat Rendering

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Consolidated Income Statement (Mn YTL)

FY07 FY06 FY05 FY04 OPERATING REVENUE 281 247 21 9 2 13 Net Sales 281 247

219 213

Cost of Sales

• 219
• 196
• 177
• 176

GROSS PROFIT 62 51 4 2 3 7 Operating Expenses

• 28
• 27
• 22
• 22

Resear ch & Devel op m en t Cost

• 1
• 1
• 1

Sel l i n g & Mar k et i n g Ex p en ses

• 16
• 16
• 11
• 12

Gen er al % Ad m i n i st r at i ve ex p en ses

• 11
• 10
• 10
• 9

NET OPERATING PROFIT 34 24 2 0 1 5 Other Incom e 19 14

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Other Expenses

• 6
• 3
• 4
• 3

Financial Expenses

• 7
• 7
• 3
• 5

OPERATING PROFIT 41 27 2 5 1 3 PROFIT BEFORE TAXATION ON INCOM E 41 27 2 5 1 3 Taxes on Incom e

• 10
• 4
• 9
• 4

NET PROFIT FOR THE YEAR 30 23 1 6 8 EBITDA 43 32 30 26

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Improving Metrics

FY07 FY06 FY05 FY04 EBITDA 43 32 30 26 EBITDA % 15.1% 13.1% 13.7% 12.4% EBIT 12.3% 9.8% 9.3% 7.1% GROSS MARGIN 22.1% 20.6% 19.2% 17.5% NET PROFIT MARGIN 10.8% 9.4% 7.4% 3.9%

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FINANCIAL OVERVIEW

Consolidated net sales of app. YTL 281 mn and EBITDA

• f YTL 43mn for 2007.

EBITDA margin of 15.1% Pınar Et has increased its sales over the years EBITDA MARGIN EBITDA (YTL) GROSS PROFIT MARGIN GROSS PROFIT (YTL) COST OF GOODS SOLD (YTL) NET SALES (YTL) KEY PERFORMANCE INDICATORS (IFRS-CONSOLIDATED) 31.2% 32,392,925 42,515,549 15.5% 13.1% 15.1% 7.7% 20.6% 22.1% 22.4% 50,833,947 62,200,562 11.4% (196,392,729) (218,750,180) 13.6% 247,226,676 280,950,742 Change (%) 31.12.2006 31.12.2007

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Key Ratios & Net Financial Debt: Improved Financial Standing

0.11 0.07 Total Financial Total Financial Debt ebt / Equity Equity 0.38 0.10 Net Financial Net Financial Debt ebt /EBITDA /EBITDA 0.34 0.24 S/T Financial S/T Financial Debt/Total ebt/Total Financial Financial Debt ebt 8.91 7.99 Interest Interest Coverage Coverage Ratio Ratio 27% 21% Leverage Leverage Ratio atio 1.61 1.81 Current Current Ratio Ratio Dec Dec 31, 2006 1, 2006 Dec Dec 31, 2007 1, 2007 (Mn (Mn YTL) YTL) 11 10 L/T Borrowings L/T Borrowings Net Financial Net Financial Debt ebt S/T Borrowings S/T Borrowings Cash Cash & Cash & Cash Equivalents Equivalents 10 10 3 6 2 7 9

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Sales and Distribution

Domestic sales of Pınar Et are realised through Yaşar Birleşik Pazarlama A.Ş. (YBP)

YBP STRUCTURE YAŞAR HOLDİNG A.Ş. 22% PINAR SÜT 32% PINAR ET 38% OTHER 8% SALES CHANNELS

83% 17% 1% YBP DIRECT EXPORT

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YBP – Yaşar Birleşik Pazarlama A.Ş.

• The second biggest food sales & distribution network in Turkey
• Specialised in one-way, packaged, high-quality, fast moving consumer goods
• Approximately US$ 500 Mn/year turnover, 1000 employees with 7 profit centers
• 132 distributors with warehouses covering all over Turkey in addition to direct sales

team in major cities

• Having a distribution team fleet of 762 trucks, composed of 267 Direct Sales and 495

Sub-Distributors trucks

• 6 distribution centers in major cities, each with +4C, -18C and dry storage facilities
• Approximately 155.000 points of sale covered

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YBP Product Portfolio

DAIRY (PINAR SÜT&PINAR ANADOLU) DAIRY (PINAR SÜT&PINAR ANADOLU)

► Milk (UHT, Pasteurized, Flavoured) ► Yoghurt (Plain, Fruit, yoghurt drink) ► Functional dairy products ► Butter ► Fruit Juices ► Powder Products (Pudding, Cream, Milk Powder) ► Sauce (mayonnaise, ketchup, ► mustard, chocolate), honey, jam ► Cheese Products

OTHER (Vari OTHER (Various Supplier)

• us Supplier)

► Olive & Sunflower oil ► Honey ► Pickle ► Frozen Potato

PROCESSED MEAT (PINAR ET&PINAR ANADOLU)

► Meat & meat products ► Frozen meat balls ► Turkey based products ► RTE meat&turkey products ► RTE Fish Meals ► RTE Sea Foods

CONFECTIONARY (Ferrero)

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Investment Highlights

Leader in Turkish Processed Meat Sector Modern and efficent production processes High quality, hygenic and EU standard production Expected growth in the livestock sector Wide-spread distribution network, strong brand with very high brand awareness Advanced R&D facilities with competencies in product development Growth in consumer wealth and Turkey’s favourable demographics are expected to expand the market Group synergies Strong supply network

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APPENDICES

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PINAR ET – KEMALPAŞA / İZMİR

Total area 176,000 sqms Closed area 46,000 sqms

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YBP PROFIT CENTERS

Region Sales Directors Area Sales Managers