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PINAR ST MAMULLER SANAY A. . INVESTOR PRESENTATION INVESTOR PRESENTATION April 2008 as at 08.05.2008 1 Disclaimer This presentation does not constitute This presentation does not constitute an offer or invitation to purchase or

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PINAR SÜT MAMULLERİ SANAYİİ A.Ş.

INVESTOR PRESENTATION INVESTOR PRESENTATION

April 2008

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Disclaimer

This presentation does not constitute This presentation does not constitute an offer or invitation to purchase or an offer or invitation to purchase or subscription for any securities and no part subscription for any securities and no part of it shall form the

  • f it shall form the basis of or be relied

asis of or be relied upon in connection with any cont upon in connection with any contract or commitment whatsoever. ract or commitment whatsoever. This presentation contains forward-look This presentation contains forward-looking statements that reflect the company ing statements that reflect the company management’s current views with respect to management’s current views with respect to certain future events. Although it is certain future events. Although it is believed that the expectations reflected believed that the expectations reflected in these statements are in these statements are reasonable, they easonable, they may be affected by a variety of variab may be affected by a variety of variables and changes in underlying assumptions les and changes in underlying assumptions that could cause actual results to differ materially. Neither P that could cause actual results to differ materially. Neither Pınar Süt nor any of its nar Süt nor any of its affiliates, advisors, representatives, dire affiliates, advisors, representatives, directors, managers or employees nor any ctors, managers or employees nor any

  • ther person shall have any liability what
  • ther person shall have any liability whatsoever for any loss arising from any use

soever for any loss arising from any use

  • f this presentation or its contents or
  • f this presentation or its contents or otherwise arising in connection with it.
  • therwise arising in connection with it.

Company’s financial statements are available on Company’s financial statements are available on 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-

2006,2007)

  • 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 milk and dairy products and meat and meat products sectors (source: Kalder-2007Q3)

  • Online traceability of the production through
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DAIRY INDUSTRY

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Dairy Industry

  • Global dairy market (US$ 260 bn) growing at 3% p.a.
  • Global supply and demand is not balanced
  • Production increase 2%; Demand increase 3%

GAP

Source: Euromonitor International Source: Euromonitor International Note: Included in Others: goats milk (0.04%), chilled snacks (0.3%), coffee whiteners (0.8%), sour milk drinks (0.7%), soy drinks (0.3%), soy milk (1.0%), probiotic yoghurt (1.2%), condensed/evaporate milk (1.4%) and flavoured yoghurt (1.6%)

  • Global Sales of Dairy Products by Sector: 2005 % Value Breakdown
  • Major Markets: 2005 Value Sales and Period % Growth
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Dairy Products Sector In Turkey

1,0 Unpacked Unpacked Milk 3,6 Da Dairy iry Farm arm 6,5 So Sold ld in the in the Market arket 1,9 3,5 10 Amount Amount (billion illion kg kg) Family Family Consum Consumption ption Industr Industrial al Total Milk Total Milk Production Production

  • Dairy sector is one of the fastest growing markets with an average rate of 6%

for the last decade.

  • Annual milk production in Turkey is 10 million tons ($3 bn), only %30

registered

  • The registered milk market has grown by 12-14% in 2005. Per capita milk

consumption is 80 kg in EU and 92 kg in USA, with a total of respectively 149 kg and 320 kg.

  • The registered milk market has grown by 15-20% in 2006

Source: HTP, SETBİR (Association of Milk & Meat Producers) Industrial Production 1 860 1 860 150 150 250 250 975 975 485 485 Amount (million kg) 2,7 2,7 Butter 3,6 3,6 White Cheese 27,1 ,1 TO TOTAL 13,9 13,9 Yo Yogurt 6,9 6,9 Processed Drinking Milk Per Capita Consumption (kg) (kg)

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Milk Sources in Turkey

COW MILK 90% SHEEP MILK 7% GOAT MILK 2% BUFALO MILK 1%

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Potential Effects of EU Conformity Period

An increase in the; Registered milk production rate to 50% Dairy products export due to the start of exports to EU countries Quality of the milk collected Demand of the packaged products Quality awareness of consumers Average milk productivity Amount of milk processed in modern industrial dairies Competition in the market Demand on safe food Milk production in organised plants rather than individual milking

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PINAR SÜT Is Ready for EU

  • EU standards production plant
  • Latest technology through the whole supply chain
  • Milk procurement organisation in compliance with EU legistation
  • Advanced laboratory competence available on field
  • 252 contracted farms
  • Supplier based performance measurement
  • 100% traceability from farm to fork
  • Support and training of 21,000 milk producer, helping to boast quality under the

supervision of 110 contracted veterinarians.

  • Raw milk collection twice a day
  • Sustainable qualified human resources
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Dairy 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

(i.e. functional products)

  • Branded Products: Pınar is ahead of competition on brand recognition, product

quality, corporate image and reputation, customer loyalty and consistency of supply

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COMPANY OVERVIEW

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Company History: Pioneer and Leader of Modern Turkish Dairy

1975 ’80 ’85 ’90 ’95 ’00 ’02 ’04 ’06 2007

1975...

The first UHT milk and packed dairy products plant in Turkey was founded (biggest milk production facility in the Middle East): PINAR SÜT

1997

New plant founded in Eskişehir

1978

Pınar Sliced Kaşar Cheese and Cream Cheese were introduced

1980

Kraft-Pınar Cooperation was established

1982

Milk, cheese, butter, yoghurt amd milk with tarwberry began to be exported the Central European and Middle East countries and the TRNCyprus.

1983

Pınar Fodder was established

1984

Production of Labne cheese, honey and marmelade began. Export of many products to Kuwait, Cyprus and germany began.

1985

Labne was introduced in the domestic market

1994

Light mayonnaise was introduced

1999

Functional milk was introduced

2004

Pınar Kafela, Karamela and Çikola were introduced

  • www.pinarmutfagi.com

was established

2005

First organic milk in Türkiye, Pınar Organic Milk, First prebiotic/probiotic products, Pınar Prebiotic/Probiotic Light Yoghurts were introduced

2001

UHT plastic bottled milk introduced

2007

YOPİ is introduced

2003

Agreement with Sodima SAS for the production of fruit yogurt under Yoplait brand

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Launch Of New Products-I

  • 1975 First UHT Milk in Turkey. Cheese, yoghurt, butter and milk powder
  • 1976 First pasteurized freshcream cheese and cocoa milk
  • 1978 Pınar Sliced Kashkaval and Spreadable Cheese
  • 1980 Kraft Pınar cooperation. Pınar Deram, Raglet, Maribo and Cheddar
  • 1983 First mayonnaise, salad sauce, Pınar Feta cheese and Pınar whipped topping
  • 1984 "Labaneh" cheese, honey, marmelade.
  • 1986 Ketchup; black berry juice and lemonade
  • 1987 Dairy products, cheese, sweetened sauces and syrups for Mc Donald’s
  • 1988 Salep, flavored and cocoa pudings
  • 1992 First low-fat Form Milk in Turkey and Çikolasüt (milk with real chocolate)
  • 1994 Light mayonnaise
  • 1995 UHT Fruit yoghurt and deserts, Light, exstra light yoghurt and light triangular

process cheese

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Launch Of New Products-II

  • 1996 Feta cheese, İzmir "tulum" cheese, Roll of butter
  • 1997 Kido milk family, Light Feta Cheese, Mozzarella, Shredded Cheese, Camambert

Goat Chees

  • 1999 Functional Milk (Lactose-free milk; Pınar Denge Calcium+ Vitamins A, D, E Milk)
  • 2000 First automatical process for "Fat On Top Yoghurt"
  • 2003 Yoplait fruit yoghurt in cooperation with Yoplait
  • 2004 Pınar Swiss Chocolate and Canım Çekti Danish Butter Cookies

Enjoyable Milk for the Big Ones:Kafela, Karamela and Çikola

  • 2005 First organic milk in Turkey: Pınar Organic Milk

First Pınar Prebiotic Milk and Pınar Prebiotic/Probiotic Yoghurt

  • 2005 Ezine cheese
  • 2006 Pomegranate Huice
  • 2007 Functional 100% Fruit Juices
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Ownership Structure

  • Listed in Istanbul Stock Exchange
  • % 39 of total outstanding shares in free float
  • Price at April 21,2008 TRY 6,15
  • Market Cap ($mn) : 210

The Foreign Stake in the Float (%)

Yaşar Holding A.Ş. 61% Free Float 39%

50 ,8 7 6 0,8 6 5 6,6 6 5 8 ,8 4 5 6,6 4 5 8,3 8 5 8 ,8 6 5 3 ,9 4 4 4 6 4 8 5 0 5 2 5 4 5 6 5 8 6 0 6 2 1 9 . 1 . 2 7 1 5 . 3 . 2 7 2 5 . 5 . 2 7 2 9 . 6 . 2 7 2 4 . 8 . 2 7 5 . 9 . 2 7 2 4 . 9 . 2 7 8 . 1 . 2 7 1 9 . 1 . 2 7 3 1 . 1 . 2 7 1 6 . 1 1 . 2 7 3 . 1 2 . 2 7 1 4 . 1 2 . 2 7 2 8 . 1 2 . 2 7 1 1 . 1 . 2 8 2 5 . 1 . 2 8 8 . 2 . 2 8 2 2 . 2 . 2 8 7 . 3 . 2 8 2 1 . 3 . 2 8 4 . 4 . 2 8 1 7 . 4 . 2 8

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Relative Performance to ISE-100

  • 20

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

  • 8

F e b r u a r y

  • 8

M a r c h

  • 8

A p r i l

  • 8
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Raw Milk Collection

295 FARMS 38% INDIVIDUAL PRODUCERS 431 COOLLING CENTERS 75 COOPS % 28 9 TRADERS %12 TRANSPORTATION PROCESSOR 231 VILLAGE %22

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Notable Participation Value

Yaşar Birleşik Pazarlama Dağıtım Turizm ve Ticaret A.Ş. (YBP) Ownership % 31.95% Carrying Value 24.5 M YTL 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 0.9 M YTL Production of dairy and meat products in Yozgat

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Notable Participation Value

Pınar Entegre Et ve Un Sanayii A.Ş. Ownership % 12.58% Carrying Value 23.9 M YTL Production of processed and frozen meat products-

  • pen to public

Çamlı Yem, Besicilik

  • San. ve Tic. A.Ş.

Ownership % 5.59% Carrying Value 6.3 M YTL Agribusiness- Feed production, fish, cattle and turkey farming Pınar Su Sanayi ve Ticaret A.Ş. Ownership % 8.81% Carrying Value 7.6 M YTL Bottling of drinking water and water products- open to public

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Market Position

LEADER 33 ENRICHED MILK (ADULT) SECOND 13 BRICK BUTTER LEADER 24 MAYONNAISE SECOND 21 FLAVORED MILK (CHILDREN) LEADER LEADER LEADER 46 64 86 SPREADABLE CHEESE *Triangle Cheese *Fresh Cheese LEADER 26 UHT MILK LEADER 67 UHT LIGHT MILK POSITION POSITION MARKET MARKET SHARE (%) SHARE (%) PRODUCT” PRODUCT”

Source: AC Nielsen

Market Share Comparison

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

UHT Plain Milk UHT Light Milk Spreadable Cheese Labneh Fresh Cheese

PINAR Nearest Competitor

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Marketing Expertise

The market is continuously growing Pınar Süt is maintaining the leadership in the market without loosing market share

  • 500

1,000 1,500 2,000 2,500 2004 2005 2006 2007 13.0% 14.0% 15.0% 16.0% Total Dairy Products- ('mio YTL) Pınar Share %

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Export Success: Target Market Tastes Are Met

  • PINAR SÜT realizes 40% of Turkey’s

Dairy Product Exports

  • %45 market share, in the countries it

exports to

  • 26 countries from Middle East to

Europe, from U.S.A. To China

  • Leader in Saudi Arabia and Kuwait with

Labaneh Cheese

  • Target market tastes are met through

marketing and packaging

  • Exports sales increased at 50% from

2003 to 2006

32 21 23 36 29 7% 7% 9% 10% 7%

  • 5

10 15 20 25 30 35 40 2003 2004 2005 2006 2007 4% 6% 8% 10% 12% 14% Export Revenues (YTL Mn) Share in Total Sales

Exports by Countries

40% 20% 6% 8% 7% 4%4%3% 8% SAUDI ARABIA KUWAIT IRAK T.R.N.C. U.A. EMIRATES BAHRAIN AZERBAIJAN QATAR OTHER

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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 Süt

Sales By Products

UHT M ILK YOGURT-YOGURT DRINK CHEESE SAUCE-POWDER BUTTER FRUIT JUICE OTHERS

Gross Profit & Gross Margin

  • 20

40 60 80 100 1 2 / 3 1 / 2 2 1 2 / 3 1 / 2 3 1 2 / 3 1 / 2 4 1 2 / 3 1 / 2 5 1 2 / 3 1 / 2 6 1 2 / 3 1 / 2 7 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% Gross Profit Gross Margin %

23,6% 26,8% 24,0% 25,6% 22,8% 24,3% 25,3% 27,6% 22,8% 23,7% 25,1% 28,3% 24,8% 24,9% 25,7% 24,5% 22,3% 25,1% 26,1% 26,6% 23,9% 24,3% 26,2% 25,6%

0,0% 20,0% 40,0% 60,0% 80,0% 100,0% 2002 2003 2004 2005 2006 2007

Sales % in each quarter

Q4 Q3 Q2 Q1

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Performance Highlights

10% 4% 8% 8% 0% 2% 4% 6% 8% 10% 2003 2004 2005 2006

DIVIDEND YIELD

Dividend Yield 2,340,376 4,045,595 15,732,867 19,778,460 5,000,000 10,000,000 15,000,000 20,000,000 2003 2004 2005 2006

DIVIDENDS

Dividens Paid (YTL) 3.421.708 5.073.191 22.189.767 28.585.922 39.660.157 10.000.000 20.000.000 30.000.000 40.000.000 2003 2004 2005 2006 2007

NET PROFITS (YTL)

Net Profits (YTL) 19.401.913 29.960.577 36.360.237 30.379.779 57.146.458 10.000.000 20.000.000 30.000.000 40.000.000 50.000.000 60.000.000 2003 2004 2005 2006 2007

EBITDA

EBITDA (YTL)

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2007 Sales & Production Breakdown

Sales by Product Groups ('000 YTL) 57,858 298,690 205,779 11,893 16,874 Milk- Fruit juice- Cream- Pudding Butter- Mayonnaise- Honey- Sauce- Jaw Ayran- Yogurt- Cheese Pow der Products Other Production by Product Gropus (Tonnes) 187,131 12,337 50,014 1,810 Milk- Fruit juice- Cream- Pudding Butter- Mayonnaise- Honey- Sauce- Jaw Ayran- Yogurt- Cheese Pow der Products

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Consolidated Income Statement (Mn YTL)

FY07 FY06 FY05 FY04 OPERATING REVENUE 452 357 321 311 Net Sales 452 357

321 311

Cost of Sales

  • 361
  • 289
  • 252
  • 261

GROSS PROFIT 91 68 69 50 Operating Expenses

  • 47
  • 50
  • 43
  • 34

Research & Development Cost

  • 4
  • 3
  • 3
  • 2

S elling & Market ing Expenses

  • 27
  • 34
  • 29
  • 21

General % Administ rat ive expenses

  • 16
  • 12
  • 11
  • 11

NET OPERATING PROFIT 44 18 26 17 Other Income 23 25 22 13 Other Expenses

  • 7
  • 6
  • 4
  • 10

Financial Expenses

  • 7
  • 12
  • 11
  • 11

OPERATING PROFIT 53 25 32 8 PROFIT BEFORE TAXATION ON INCOME 53 25 32 8 Taxes on Income

  • 13

3

  • 10
  • 7

NET PROFIT FOR THE YEAR 40 28 22 1 EBITDA 57 30 36 30

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Improving Margins

FY07 FY06 FY05 FY04 EBITDA 57 30 36 30 EBITDA % 12.6% 8.5% 11.3% 9.6% EBIT 9.7% 5.1% 8.1% 5.4% GROSS MARGIN 20.1% 19.0% 21.5% 16.2% NET PROFIT MARGIN 8.8% 7.9% 6.9% 0.3%

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Financial Overview

Consolidated net sales of app. YTL 452 mn and EBITDA of YTL 57mn EBITDA margin of 12,7% Pınar Süt has increased its net 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) 88% 30,379,779 57,146,458 49% 8.5% 12.7% 5% 19.2% 20.1% 32% 68,547,735 90,764,373 25% (288,573,653) (360,856,274) 26% 357,121,388 451,620,647 Change (%) 31.12.2006 31.12.2007

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Key Ratios & Net Financial Debt: Improved Financial Standing

Total Financial Total Financial Debt ebt / Equity Equity Net Financial Net Financial Debt ebt /EBITDA /EBITDA S/T Financial S/T Financial Debt/Total ebt/Total Financial Financial Debt ebt Interest Interest Coverage Coverage Ratio Ratio Leverage Leverage Ratio atio Current Current Ratio Ratio 0.52 0.10 0.12 0.06 0.48 0.31 5.96 11.22 37% 33% 1.53 1.70 December December 31, 31, 2006 2006 December December 31, 31, 2007 2007 (Mn (Mn YTL) YTL) 14.6 12.4 L/T Borrowings L/T Borrowings Net Financial Net Financial Debt ebt S/T Borrowings S/T Borrowings Cash Cash & Cash & Cash Equivalents Equivalents 20.9 7.4 13.5 5.6 7.2 10.6

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Sales and Distribution

  • Domestic sales of Pınar Süt are realised through Yaşar Birleşik Pazarlama

A.Ş. (YBP)

SALES CHANNELS

YB P 89% D irect 3% E xports 8% YBP E xport D irect

Y B P STR U C TU R E

Y aşar H

  • ld

in g 22% P ın ar S u t 32% P ın ar E t 38% O th er 8%

Yaşar H

  • lding

P ınar S ut P ınar E t O ther

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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$ 640 Th/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)

► 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 (Various 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

Modern and efficient production processes employing the latest technology Wide-spread distribution network, strong brands with very high brand awareness Leader in Turkish Dairy Products Sector Advanced R&D facilities with competencies in product development Innovative product launches every year supported with aggressive marketing High quality, hygenic and EU standard production Competitive cost structure Evident growth in consumer wealth and Turkey’s favourable demographics are expected to expand the market State-of-the-art technology in logistics management with satellite link technology, datalogger applications, double-deck loading systems. Increasing export potential Advanced IT structure Group synergies

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APPENDICES

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Awards and Certificates

  • 2000 “Golden Packaging Award” by TSI (Turkish Standart Institute) for 3 products
  • 2000 World Star Award by WPO (World Packaging Organisation) for Pınar Kido Mini

Cheese

  • 2001 The Research and Development Encouragement Award from TUBİTAK
  • 2002 The Aegian Region Quality Award by KALDER (Turkish Quality Assosiation)

(Evaluated against EFQM Exellence Model)

  • 2003 ISO 14001 Environmental Management System Certification
  • 2003 “10’th year with ISO 9000 Standart Award” by TSI
  • 2004 “Golden Packing Award” by TSI for 2 products. The first prize in the

“Eating/Drinking Sector” category of Altın Örümcek (Golden Spider) web contest for its www.pinarmutfagi.com website

  • 2004 Worldstar Award by WPO (World Packaging Organisation) for Kafela and Yoplait

Fruit yoghurt

  • 2004 TSE 13001 HACCP (Food Safety System Certification)
  • 2005 The Consumer Quality Award in meat, milk and products category
  • According to the “Turkey Customer Satisfaction Index”, selected the best brand in

milk and dairy products and meat and meat products sectors (source: Kalder-2007Q3)

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PINAR SUT – PINARBAŞI / İZMİR SITE

  • Total area

130.118 sqms

  • Closed area

40.854 sqms

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PINAR SUT-ESKİŞEHİR SITE

  • Total area

149.976 sqms

  • Closed area

16.650 sqms

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YBP Regions

Region Sales Directors Area Sales Managers

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Financial Objectives

2008 expected revenue growth 20% - 25% Lean 6 Sigma Focus on operating efficiencies Continued product mix improvement Stepped up productivity projects Successful offsetting of input cost pressure through selective price increases