“Turkey’s Largest Food Company”

First Half 2017

Financial Results
Aug 16, 2017

Borsa Istanbul: ULKER

ULKER.TI (Bloomberg) | ULKER IS (Reuters)
www.ulkerbiskuvi.com.tr
Disclaimer

This presentation contains information and analysis on financial statements and is prepared for the sole purpose of
providing information relating to 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 other 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 of 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an offering circular will not be published.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 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.

2
Turkey Macro Economic Overview
Retail Sales Volume Index
133,3  Retail sales volume Index (Adj.)
132,1 132,1 132,3
131,7
130,6 130,9
131,3 improved by 3.9% in 2017 over
130,1 129,8
128,6
129,4
128,3 128,3 128,1
2016 year-end
127,3
126,5
126,0

 Industrial Production index

averaged 126.4 in 2016, and 128.3
in H1 2017
2015
2016
Industrial Production
 Consumer confidence reached to 70
2017 at the end of first half of 2017

 Consumer price inflation was 10.9

% in June 2017 YOY
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Consumer Confidence Index

74,4 74,3 74,0
 Food price inflation was 14.4% in
71,6 72,8 70
66,6 67,0 68,5 68,8 69,4 67,0 68,9 67,8 71,3
63,4 66,9 65,7 June 2017 YOY
April-16

April-17
arch-16

Aug-16

May-17
Oct-16
Jan-16

June-16

July-16

Jan-17

June-17
Feb-16

Sept-16

Dec-16

Feb-17

Mar-17
May.16

Nov-16

3
Market Growth
Market Growth % (Volume & Value in H1 2017)
Total Confectionary

 Confectionery market growth

11,8%
5,0% posted by 11.8% in value
Volume Value terms
Biscuit

 Biscuit market in Turkey grew

11,8%
by 11.8%
6,3%

Volume Value
 Chocolate market in Turkey
Chocolate grew by 11.5%

11,5%  Cake market posted a growth

1,9%
Volume Value of 12.7%
Cake

12,7%
8,0%

Volume Value
Source: ACNielsen

4
Consolidated Figures

TL ('000) Q2 2016 Q2 2017 % H1 2016 H1 2017 %

Volume ('000 Ton) 164,6 135,0 -18,0% 319,2 298,1 -6,6%
Confectionary 129,3 126,4 -2,3% 263,1 268,3 2,0%
Non-Confectionary 35,3 8,6 -75,6% 56,1 29,9 -46,7%
Revenue 1.002,5 1.113,8 11,1% 2.037,9 2.345,7 15,1%
Confectionary 954,9 1.085,6 13,7% 1.953,1 2.270,9 16,3%
Non-Confectionary 47,6 28,2 -40,8% 84,8 74,7 -11,9%
Price Increase Excl. Other 16,3% 14,0%
(Per Ton)
Gross Profit 245,8 267,1 8,7% 498,4 570,3 14,4%
Gross Profit Margin 24,5% 24,0% 24,5% 24,3%
EBITDA 141,9 155,9 9,9% 284,3 331,6 16,6%
EBITDA
14,2% 14,0% 14,0% 14,1%
Margin

5
Category Breakdown 6

Sales Volume Net Sales

(Tons) (TL mn)

263.087 2.270,9
268.282
1.953,1
Biscuit Biscuit
Chocolate Chocolate 219,2
30.856 29.904
Cake Cake 204,9
126.372 91.963 90.262 954,9 1.085,6
129.333 1.119,4
990,6
14.543 14.288 103,5
44.400
96,5
42.776
140.268 148.115 546,1
481,9
70.390 69.308 757,5 932,3
376,5 436,0
2Q2016 2Q2017 H12016 H12017
2Q2016 2Q2017 H12016 H12017

Consolidated confectionary sales volume was down by 2.3% and Consolidated confectionary revenue grew by 13.7% and 16,3% in the
up by 2% in the second quarter and in the first half of 2017, second quarter and first half of 2017 ,respectively ;
respectively; • The higher growth at the top line was mainly due to;
• Consolidated biscuits sales contracted by 1.5% in Q217 and • Price adjustments
expanded by 5.6% in H117
• Fx impact
• Consolidated chocolate sales was down by 3.7% in Q217 and • New launches
1.8% in H117
• Consolidated biscuits revenue expanded by 15.8% in Q217 and
• Consolidated cake operation was down by 1.8% in Q217 and 23.1% in H117
3.1% H117
• Consolidated chocolate revenue escalated by 13.3% in Q217 and %13
in H117
• Consolidated cake sales revenue rose by 7.2% in Q217 and 7% in
H117
6
 7

Domestic Operations
 8
#1 in total confectionery with 36% market share
Turkey Value

Biscuits – 36% Market Share Chocolate – 39% Market Share Cake – 28% Market Share

# 1 in Petit Beurre # 1 in Creamy Biscuits

4 out of Top 5 in Chocolate Covered #1 in Cake

# 1 in Chocolate Covered # 1 in Special Biscuits #1 in Solid Chocolate #2 in Portion Cake

Sandwich

# 1 in Cracker
#1 in Spread Chocolate #2 in Wet Cake

# 1 in Sandwich Biscuits
# 2 in Chocolate Biscuit Ulker Biskuvi
Market Share Development,
Value Based* - Last 12
Month

39,5%
35,8% 38,7% 28,4%
35,7% 28,0%

2016 2017 2016 2017 2016 2017

*Source: AC Nielsen – LTM Value Share 8

 9
Branded Sales Contribution of Synergy Products

2016 Synergy Products

9
2017 Synergy Products 10

10
2017 New Launches 11

Biscuit

Cake Chocolate

11
Strong performance prevailed in Q2 2017 12

Sales Volume Gross Profit EBITDA

Net Sales(TL mn)
(tonnes) (TL mn) (TL mn)

24.2% 21.9% 15.1% 14.2%

170,8 172,3 106,7 111,7

785,8
705,3

92.780 93.376

2016 2017 2016 2017 2016 2017 2016 2017

Delivered %3,7 growth in
branded sales
 Strong growth in branded
cakes sales ,by %9,8
Branded revenue improved by
13.8%
 Predominately driven by price
increase and mix effect
Gross Profit slighty grew to Thanks to tight opex
172,3 mTL management, EBITDA parked
at %14,2, 111.7 mTL
 Rising input costs

Overall volume was inline with  Priced increase showed

last Q2 2016 positive development by %9,7

Overall growth was up by 11.4%

12
Strong growth in volume and net sales in H1 2017 13

Sales Volume Gross Profit EBITDA

Net Sales(TL mn)
(tonnes) (TL mn) (TL mn)

23.9% 21.9% 14.7% 14.1%

1.604,7 352,1
1.433,5 342,4 225,8
210,3
189.886 196.165

2016 2017 2016 2017 2016 2017 2016 2017

Branded sales continue with a
good performance and up by
by 6.8%;
 New launch
 Powerful media investment
Overall volume increased by
3.3%
Branded revenue up by 14.4%;
 Effective pricing strategy
 Mix impact
 New launch
Price per tonnes improved by 7.1%
Overall revenue up by 11.9%
Gross Profit up by 2.8%;
Gross Profit margin was parked
at 21,9%
 Rising input costs
EBITDA was reported as 225,8
m TL, representing 14.1% of
sales
 Saving in operating
expenses

13
 14
Increased branded sales boosted by synergies
Branded-Non Branded-Non
Branded Breakdown Branded Breakdown
Volume Revenue

+3.0 pp +2.1pp

88,3% 91,3% 92,9% 95,0%

H1 H1 H1 H1
2016 2017 2016 2017
11,7% 5,0%
8,7% 7,1%

Branded Non Branded Branded Non Branded Branded Non Branded Branded Non Branded

14
 15

International Operations
Egypt – To become #1 in biscuits, #2 in cake & in 16

top 5 in chocolate

Snapshot of Egypt (2017) 400 Market Size (Vol) 385

350
Population 90 mn 321
300 20%
260 18%
Population Growth Rate* c2.0% 250 14%
17% 18% 1%
200 1%
GDP** 330.8 bn USD 24%
Cake
150 1%
Chocolate
Traditional Channel c80% 100 64% 65%
Savory Biscuits
58%
50 Sweet Biscuits
Size of Confectionery Market ($) 1,0 bn 0
2013 2016F 2019F

FINANCIAL REVIEW H1 2016 H1 2017 Change

Sales Volume (tonnes) 15.256 14.311 -6,2%
Net Sales
219.894 343.164 56,1%
(EGP x000)
EBITDA(*)
30.641 17.710 -42,2%
(EGP x000)
EBITDA Margin 13,9% 5,2%

*Had ATL+BTL spendings would be inline with previous year , EBITDA of the
company would be 23 M EGP, 6.9% margin.

* Source: Worldbank – 2006-2016 CAGR 16

** Source: IMF – 2010-2015 CAGR
Saudi Arabia – To become a strong challenger in the17
biscuit & confectionery market
160,0
Snapshot of Saudi Arabia (2017) Market Size (Vol)
140,0 150
120,0 133 5%
Population 31 mn 4%
100,0 115 33%
5%
80,0 31% 3% Candy
Population Growth Rate* c2.2% 3%
60,0 28% Cakes
2% 65% Savoury Biscuits
40,0
GDP** 653.8 bn USD 56% Sweet Biscuits
20,0 46% Chocolate
Size of Confectionery Market ($) 2,8 bn -
2013
30% 2016F
30% 2019F
29%

FINANCIAL REVIEW H1 2016 H1 2017 Change

Sales Volume (tonnes) 14.278 19.875 39,2%

Net Sales
182.956 258.535 41,3%
(SAR x000)

EBITDA
25.614 35.512 38,6%
(SAR x000)

EBITDA Margin 14,0% 13,7%

* Source: Worldbank – 2006-2016 CAGR

** Source: IMF – 2010-2015 CAGR
17
Kazakhstan– A bridge from East to West 18

80,0
Snapshot of Kazakhstan (2017) 69
70,0
12
Population 17.5 mn 56
60,0 45
2%
12%
Population Growth Rate* c1.5% 50,0 2% 24%
12%
40,0 22% 3%
GDP** 185 bn USD 2%
3%
22% 2% Cakes
30,0
Traditional Channel c80% Savoury Biscuits
20,0 64% 62%
Size of Confectionery Market 1,3 bn 64% Sweet Biscuits
10,0
($) 30% 30% 29Chocolate
%
-
2013 2016F 2019F

FINANCIAL REVIEW H1 2016 H1 2017 Change

Sales Volume (tons) 6.073 5.539 -8,8%
Net Sales
4.445 4.327 -2,7%
(KZT x000000)

EBITDA
329,8 271,4 -17,7%
(KZT x000000)

EBITDA Margin 7,4% 6,3%

* Source: Worldbank – 2006-2016 CAGR

** Source: IMF – 2010-2015 CAGR
18
 Strong brand recognition in operating territories 19

Egypt Saudi Arabia Kazakhstan

Biscuits – 13.4% Market Share Chocolate–8.4% Market Share

Biscuits – 13.4% Market Share

# 1 in Filled # 1 in Filled
# 1 in Plain
(Biskrem and Tamr brands)

# 2 in Plain # 4 in Sandwich #1 in Coated

(Teabiscuits and Finger

biscuits)
# 3 in Wafer

Ulker Biskuvi
Market Share Development, Value Based*
Last 12 Month

13,2% 13,4% 13,3% 13,4%

8,2% 8,4%

2016 2017 2016 2017 2016 2017

*Source: AC Nielsen Value Market Share

19
 2017 New Launches 20

EGYPT KAZAKHSTAN

*Source: AC Nielsen

20
 2017 New Launches 21

SAUDI ARABIA

*Source: AC Nielsen

21
Improvements on the ground led higher profitability22
in Q2 2017
Confectionery Confectionery
Gross Profit* EBITDA*
Sales Volume Net Sales
(TL mn) (TL mn)
(tonnes) (TL mn)

25.3 % 28.9% 11.8% 13.5%

36.553
32.996
94,8
75,0 44,2
299,8 35,2
249,6

2016 2017 2016 2017 2016 2017 2016 2017

Overall volume was contracted
by 9.7%, mainly due to
nonbranded sales
 Low performance in export
channel, mainly in Central
Asia and Iraq
Branded revenue up by 21.6%
Overall revenue was up by
20,2% in Q2 2017
Gross Profit was confirmed
positive growth momentum by
26.3%
Continued EBITDA grow by
25,8%
EBITDA margin increased to
13.5% with rise of 1.8 pp

• Includes non-confectionery Gross Profit & EBITDA

22
Strong performance prevailed in H1 2017 with 23

profitability focus
Confectionery Confectionery
Gross Profit* EBITDA*
Sales Volume Net Sales
(TL mn) (TL mn)
(tonnes) (TL mn)

25.8% 29.4% 12.2% 14.3%

73.200 72.117

666,2
519,5 218,2 105,8
156,0 74,0

2016 2017 2016 2017 2016 2017 2016 2017

Branded sales volume up by Accelerated branded revenue Gross Profit was up by 39.8% EBITDA growth by 43%
4.1% growth by 31.5% and margin improvement of
Continued gross margin 2.1 pp to %14.3
Overall volume was lower in H1 Overall revenue was up by increased to 29.4%, gains of
2017 by 1.5% 28.2% in H1 2017; 3.6 pp

 Effective pricing strategy  Efficiencies gained from

 Fx impact capex investments
 New launches  Improved raw material
sourcing

• Includes non-confectionery Gross Profit & EBITDA

23
Strategy to focus in branded confectionery products24

Confectionery Confectionery
Branded-Non Branded-Non
Branded Breakdown Branded Breakdown
Volume Revenue

+4.0 pp +2.0 pp

70,6% 74,6% 79,8%

77,7%
29,4%
H1 H1 H1 H1
2016 2017 22,3% 2016 2017
25,4%
20,2%

Branded Non Branded Branded Non Branded Branded Non Branded Branded Non Branded

24
Cash Cycle and Net Debt

Average working
capital days
 Cash Cycle of 38 days in H1
TL 545,6 mn TL 616,3 mn 2017 (40 days in H1 2016)

60
 Working capital requirement
58 over sales ratio was 14.2% in
55
59
43 H1 2017 and 13.6 in H1 2016.
39
 Net debt stands at TL 754 mn
as of June 30, 2017

H1 2016
 Net debt to EBITDA is 1.28x in
H1 2017
A/R A/P Inv H1 2017 and 1.2x as of 31
December 2016.
Net Debt (TL mn)
 Maturity breakdown as of Jun
30, 2017:
- Short term 61.0%
754,0 - Long term 39.0%
656,8

2016 2017

25
Net Position

(Million TL/$/€) TL Equivalent USD EUR GBP

Cash and cash equivalent 3.122,3 422,6 409,0 0,6
Trade Receivables 116,4 22,5 8,6 0,7
Other non-current Asset 0,1 0,0 - -
Total Assets 3.238,8 445,1 417,6 1,4
Financial Liabilities 2.242,4 356,1 248,2 -
Trade Payables 73,4 12,1 7,4 0,3
Other 0,9 0,2 0,1 0,0
Current Liabilities 2.316,8 368,4 255,7 0,3
Financial Liabilities 1.425,7 136,1 236,9 -
Non-Current Liabilities 1.425,7 136,1 236,9 -
Total Liabilities 3.742,4 504,5 492,6 0,3
Net Position (503,6) (59,4) (75,0) 1,1
Derivative Transactions 526,9 127,4 20,0 -
Net Position after Derivative Transactions 23,3 68,0 (55,0) 1,1

The net effect of short fx position is minimized through derivative instruments.

26
Financials-Reported 27

Consolidated Income Statement

2Q 2016 H1 2016
Income Statement(TL mn) 2Q 2017 H1 2017
Restated Restated
Sales Revenues 1.002,5 1.113,76 2.037,9 2.345,66
Growth (%) 11,1% 15,1%
Gross Profit 245,8 267,1 498,4 570,3
Growth (%) 8,7% 14,4%
Gross Profit Margin 24,5% 24,0% 24,5% 24,3%

Marketing, Sales & Distribution Expenses (87,1) (97,3) (187,3) (219,5)

General Administration Expenses (34,9) (36,4) (63,2) (63,9)
Research Expenses (2,2) (3,4) (4,3) (6,3)
Other Operating Inc/Exp, net 4,1 (4,5) 5,0 4,5
Operating Profit 125,8 125,5 248,6 285,0
Income from Investments 54,9 26,6 47,8 135,1
Operating Profit before Financial Inc/Exp 180,7 152,1 296,4 420,1
Finance Inc/Exp, net (54,0) (39,3) (47,3) (168,5)
Profit Before Taxation 126,7 112,8 249,1 251,6
Tax Charge from Continued Operations (23,5) (17,9) (48,6) (44,3)
PROFIT FOR THE PERIOD 103,3 94,9 200,5 207,3
Non – Controlling Interests 10,2 10,8 20,5 24,4
Equity Holders of the Parent 93,0 84,1 180,0 182,9
25
“Turkey’s Largest Food Company”

Questions & Answers