Management Presentation. September 2014

(1)

Management Presentation

(2)

1.

Ülker: Who we are ?

2.

Key Investment Highlights

3.

Financials

4.

Appendix

2

7

23

28

(3)

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%

(4)

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 of the best recognized brands in Turkey †

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

(5)

4

...with dominant positions in growing markets

BISCUITS CHOCOLATES CAKES

46% 46% 33% Market Share (9M14) (Volume based) Market Position # 1 # 1 # 2 B is cuit Cho c ola te † Retail market

# 1in Petit Beurre Segment

# 1 in Chocolate Covered Sandwich Segment

# 1in Special Biscuits Segment

# 1in Creamy Biscuits Segment

# 1in Sandwich Biscuits Segment

Top 3in Chocolate Covered Segment

#1in 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) *

#1in Solid Chocolate Segment

Cak

e

(6)

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

(7)

1.

Ülker: Who we are ?

2.

3.

Financials

4.

Appendix

2

7

23

28

(8)

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

(9)

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.Af rica 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

(10)

9

UKGermany Netherlands Russia USA France Italy Turkey '12 Turkey '07 Poland Indonesia Brazil S.Af rica 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 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.Af rica Malaysia Saudi Arabia Egypt Croatia Hungary Turkey '18 0.0 2.0 4.0 6.0 8.0 10.0 12.0 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.Af rica Malaysia Saudi Arabia Egypt Croatia Hungary Turkey '18 0.0 2.0 4.0 6.0 8.0 10.0 12.0 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

(11)

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†

Bis c uit Cho c ola te Cak e 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 0 100 200 300 400 500 600 2010 2011 2012 2013 9M14(LTM)

(12)

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

organized 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 organized retail

(13)

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 • Drinks • Culinary

• 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 of a small grocery - 20% with only Ülker products –

(14)

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

(15)

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

(16)

15

Measures reflected in margins, still room to go…

Components of EBITDA margin improvement

(17)

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 margin Reduction in sales discounts Category Mix Effect/New Launches

Better Cost & OPEX management

2016E EBITDA

margin

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% of 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

(18)

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-out 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”

(19)

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

(20)

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 andreach

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%

(21)

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 for7%

of 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 out for co-branding

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

of 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

(22)

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

(23)

1.

Ülker: Who we are ?

2.

3.

Financials

4.

Appendix

2

7

23

28

(24)

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

(25)

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%

(26)

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 0

Cash and cash equivalents 1.268 1.164 343

(27)

26

Net debt

Net debt Development

(28)

1.

Ülker: Who we are ?

2.

3.

Financials

4.

Appendix

2

7

23

28

(29)

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

(30)

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 0

- Other short-term Receivables 17 0

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 0

Employee benefits 23 26

Deferred tax liabilities 34 28

Other non-current liabilities 0 0

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) 0

Retained earnings 106 2

Net income for the year 189 155

Non-controlling interest 138 85

(31)

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

(32)

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

(33)

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 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 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