Investor Presentation. November 2017

Transcription

1 Investor Presentation November 2017

2 Disclaimer 2 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 This presentation does not include an official offer of shares; an offering circular will not be published This presentation is not allowed to be reproduced, distributed or published without permission or agreement of Ülker The figures in this presentation are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

3 Agenda Turkey Macro Economic Overview Market Growth Ülker Operational Performance Domestic Operations International Operations Financial Highlights 3

4 Leader confectionery company in the region 4 Over 70+ years of experience in Turkey Net Sales by segment ,6% 2,3% Producer of biscuits, chocolates, chocolate covered products, crackers, wafers and cakes 40,5% 47,6% Leader in Turkey with 36% market share as of 2017 Chocolate Biscuit Cake Non-Conf Extensive sales & distribution capabilities Net Sales by region A gateway to the Middle East, Northern Africa and Central Asia 30,0% 70,0% 41.5% - Free Float & 58.5% Yıldız Holding (one of the largest conglomerate in Turkey) Domestic International Key figures TL mn 9M 2017 Sales Volume (Tonnes) EBITDA by region ,1% Net Sales ,9% EBITDA EBITDA Margin % 14.0% 4 Domestic International

5 Continous focus in value creation Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange Acquisition of 25% stake in the premium chocolatier brand Godiva Ülker Bisküvi investment: US$214 mn Rapid growth led to complex corporate structure 4 sales companies, production companies and minority stakes in 7 non-core assets : Restructuring at all fronts 2010 New top management on board Gathering all chocolate and cake businesses under Ülker Bisküvi 2011 Disposal of 6 non-core assets. Reduced Godiva stake to 19% - TL 100mn profit Simplified traditional channel distribution merger of production companies with sales companies; consolidation of all sales under new sales company Horizon 2012 SKU optimization 502 SKUs in 2010 vs. 330 SKUs in 2014 Cancellation of privileged shares and founder shares 2013 New dividend policy minimum 70% of distributable income Free Float reached 40% after Yıldız Holding s block sale : Ülker Biskuvi acquired 30% minority stake in Biskot Divested stakes in Istanbul Gıda, Birleşik Dış Ticaret and Rekor : Ülker Biskuvi acquired 51.4% majority stake in Hi-Food(Egypt) Ülker Biskuvi acquired 100% stake in Istanbul Gıda Ülker Biskuvi acquired 55% stake in FMC (Saudi Arabia) : Ülker Biskuvi acquired 100% stake in Hamle(Kazakstan) 5

6 Largest production capacity in the region with strategically located plants 6 Production in 4 countries at 9 facilities Total Production Capacity of 920K tons Turkey Egypt Saudi Arabia Kazakhstan Istanbul- Topkapı Chocolate Capacity: 195k tonnes/year Istanbul Gebze Ankara Istanbul- Silivri Chocolate, chocolate covered biscuit Capacity: 45k tonnes/year Istanbul- Hadımkoy Cake Capacity: 50k tonnes/year Karaman Ankara Karaman Biscuit, cake, cracker & chocolate Capacity: 214k tonnes/year Biscuit Capacity: 151k tonnes/year The largest biscuit manufacturing facility in the Middle East Gebze Biscuit & cracker Capacity: 119k tonnes/year Hi-Food Biscuit Capacity:44k tonnes/year FMC Biscuit & Chocolate & Cake Capacity: 57k tonnes/year Hamle Biscuit & Chocolate & Cake Capacity: 47k tonnes/year 6

7 Strong brand equity leveraging 70 years of heritage 7 Brand Recognition Ülker perception study Ülker Always «most recognized» and «closest to consumers» In its own category, Ülker is the most beloved brand name of all. Source : AC. Nielsen & Mediacat Source: Ipsos 2015 Brand Ivestments Made in 2016 Ülker address to youth Ülker present happiness Dynamic brand Social «more adressing to youth» «Only we provide joy & happiness» «becoming more dynamic every day» «Consumers find Ülker more social» +16 pp, reached 43 Since Nov pp, reached 45 Since Nov pp, reached 45 Since Nov pp, reached 42 Since Nov 2015 Source: BHT Araştırması /GFK-Nov

8 Well structured route to market system 8 30% Intenational 95 distributors Traditional Channel Independent Distributors # of points visited: 180k out of 200k available points % of invoice issued by visit: 90% 70% Domestic Modern Channel National Retailers Cash & Carry Discounters Directly distributing to main warehouses # of points visited: c25k with c99% coverage Decreased logistics expense More efficient route to sales points Single joint sales & distribution network Enhanced distribution profit Better and faster execution capability 8 Stronger distributors with higher nominal gains

9 9 Operations 9

10 Growing our regional footprint 10 Covered Territory c610 mn c7,689 USD Population GDP per Capita 21 mn km² Total Area 13,3 bn USD Confectionery Market Brand Positioning Turkey #1 in Total Confectionery Saudi Arabia #2 in Biscuits Covered Territories 10 Egypt #3 in Biscuits Kazakhstan #3 in Chocolate Countline

11 Delivery of strong top line growth & profitability Change (CAGR 2016/2011) Volume (Tonnes) % Net Sales (mn TL) 1.788, , % EBITDA (mn TL) 76,6 512, % 11

12 Strong revenue & profitability generation 12 Change in Revenue vs Inflation & Currency* Inflation TL/USD Change Change in Revenue Change in EBITDA 569,5% 47,9% 80,7% 118,0% Inflation TL/USD Change Change in Revenue Change in EBITDA Strong growth in revenue and tremendous improvement in profitability 2011 is based on reported figures, however 2016 is based on restated figures Average TL/USD Change 12

13 Ceasing non-confectionary business 13 Sales Volume Breakdown In 9M 17 (Tons) (Tons) Sales Volume Breakdown In Q3 17 (Tons) M M 2017 Q Q Conf Non-Conf Conf Non-Conf Net Sales Breakdown In 9M 17 (mntl) Net Sales Breakdown In Q3 17 (mn TL) M M 2017 Q Q Conf Non-Conf 13 Conf Non-Conf

14 14 Market Growth Potentials 14

15 GDP Growth Forecast (in constant local) GDP Growth (in constant local) Operating in fast growing economies 15 Fast growing economies 12,0% Avg growth between ; 10,0% Turkey 6,4% Saudi Arabia 4,6% Egypt 2,9% Kazakhstan 4,1% 8,0% 6,0% 4,0% Turkey Saudi Arabia Egypt Kazakhstan EU US 2,0% 2,0% US EU 2,4% 0,0% -2,0% Source: Worldbank These economies will continue to grow faster 7,0% 6,0% Avg growth between ; Turkey 4,0% Saudi Arabia 2,2% Egypt 4,3% Kazakhstan 2,0% 5,0% 4,0% 3,0% 2,0% Turkey Saudi Arabia Egypt Kazakhstan EU US US 2,4% 1,0% EU 1,7% 15 0,0% Source: Worldbank

16 High potential of these markets underpins growth 16 EU Avg: 0,3% Kazakhstan 1,5% High population growth rates in operational countries Egypt 2,0% Saudi Arabia 2,2% Turkey 1,4% 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% Source: Euromonitor EU Avg: 39,5% Kazakhstan 56,0% Demographics Sub 35 years Egypt Saudi Arabia 63,0% 71,0% Urbanization More women in the workforce 16 Turkey 61,0% Source: Worldbank 0,0% 40,0% 80,0% Change in trend & consumption behavior

17 Rapid growth in biscuits & chocolate consumption, contrary to mature markets 17 Biscuits consumption (kg per person) Chocolate consumption Turkey 2,9 kg Turkey 2,1 kg Egypt 3,7 kg Egypt 0,4 kg Saudi Arabia 1,6 kg Saudi Arabia 2,4 kg Kazakhstan 3,7 kg Kazakhstan 3,8 kg UK 7,6 kg UK 7,7 kg US 4,0 kg US 4,4 kg EU 4,0 kg EU 4,1 kg Western Europe 5,7 kg Western Europe 7,3 kg Central Europe 3,4 kg Central Europe 5,0 kg Source: Euromonitor Source: Euromonitor c4% CAGR growth in per capita biscuits consumption in Turkey & Saudi Arabia and 5% in Egypt in the last 5 years c7% CAGR growth in per capita chocolate consumption in Turkey & Saudi Arabia and 6% in Egypt in the last 5 years 17

18 18 Domestic Operations 18

19 #1 in total confectionery with 36% market share 19 Turkey #2 #1 #2 Biscuits 36% Market Share ( 1 ) Chocolate 38% Market Share ( 1 ) Cake 28% Market Share ( 1 ) # 1 in Petit Beurre # 1 in Creamy Biscuits 4 out of Top 5 in Chocolate Covered #1 in Family Cake # 1 in Special Biscuits # 1 in Cracker #1 in Solid Chocolate #2 in Portion Muffin Coated Cake # 1 in Sandwich Biscuits (1) Source: AC Nielsen&Ipsos LTM # 2 in Chocolate Biscuit #2 in Spread Chocolate #2 in Wet Cake Quarterly Market Share Development, Value Based Q2 17 vs Q ,0% Biscuits 36,6% Chocolate Cake 36,6% 36,6% 28,2% 27,4% ULKER ULKER ULKER Q2 17 Q3 17 *Source: AC Nielsen 19

20 Branded Sales Contribution of Synergy Products & New Launches Synergy Products 2017 New Product Launches Biscuits 2016 Synergy Products Cakes Chocolates 20

21 Domestic Operations Strong Growth in financial and operational metrics in Q Sales Volume (thousand tons) Net Sales (TL m) Gross Profit (TL m) EBITDA (TL m) 82,7 90,5 631,9 745,6 21,6% 21,9% 15,2% 14,9% 136,3 163,2 111,1 96,3 Q Q Q Q Q Q Q Q Branded volume continue with a good performance and up by 12,3% thanks to - New product launches - Marketing investments Overall volume increased by 9,4% Branded revenue up by 20% - Effective pricing strategy - Mix impact - New launch Total price per tonnes improved by 7,9% Overall revenue up by 18% Gross Profit up by 19,8% Gross Profit margin was parked at 21,9% thanks to effective cost management despite rising input costs EBITDA was reported as TL111m representing 15,5% growth with the support of ATL/BTL expenses 21

22 Domestic Operations Strong Growth in 9M 2017 Sales Volume (thousand tons) Net Sales (TL m) Gross Profit (TL m) EBITDA (TL m) 23,2% 21,9% 14,8% 14,3% 272,6 286, , ,4 478,6 515,3 306,5 336,9 9M M M M M M M M Branded sales continue with a good performance and up by 8,5 % thanks to - New product launches - Marketing investments Overall volume increased by 5.2% Branded revenue up by 16,1% - Effective pricing strategy - Mix impact - New launch Total price per tonnes improved by 8,2% Overall revenue up by 13,8% Gross Profit up by 7,7% Gross Profit margin impacted due to - Rising input costs EBITDA was reported as TL 336.9m, representing 14,3% of sales - Saving in operating expenses 22

23 Increased branded sales boosted by synergies 23 In line with our strategy, we focused on branded product sales and continue to enjoy significant contribution improvement at the operational front. Branded & Non-Branded Volume Breakdown 9M M 2017 Branded & Non-Branded Revenue Breakdown 9M M 2017 Non Branded 11% Non Brande d 8% Non Branded 7% Non Branded 5% +3 pp +2 pp 89% 92% 93% 95% Branded Branded Branded Branded 23

24 24 International Operations 24

25 Egypt To become #1 in biscuits, #2 in cake & in top 5 in chocolate 25 Snapshot of Egypt (2017) Population Population Growth Rate (1) GDP (2) Financial Review 90m c2.0% US$330.8bn Traditional Channel c80% Size of Confectionery Market US$1.0bn Market Size (Vol) k tonnes % 24% 1% F 2019F Sweet Biscuits % 18% 1% 58% 63% Savory Biscuits 9M M 2017 Change % % 14% 1% 65% Chocolate Cake Sales Volume (tonnes) ,0% Net Sales (EGP x000) % EBITDA (EGP x000) % EBITDA Margin 10.9% 4.5% Despite heavy economic environment, our business in Egypt has grown rapidly in terms of volume and value with support of new launches and marketing investments. (1) Source: Worldbank CAGR. (2) Source: IMF CAGR. * Source: Worldbank CAGR ** Source: IMF CAGR 25

26 Saudi Arabia To become a strong challenger in the biscuit & confectionery market 26 Snapshot of Saudi Arabia (2017) Population 31m Population Growth Rate (1) c2.2% GDP (2) Size of Confectionery Market Financial Review US$653.8bn US$2.8bn Market Size (Vol) k tonnes % 25% 27% 2% 133 2% 26% 24% 2% 150 4% 25% 22% 2% 41% 46% 47% F 2019F Chocolate Sweet Biscuits Savory Biscuits Cake 9M M 2017 Change % Candy Sales Volume (tonnes) % Net Sales (SAR x000) ,0% EBITDA (SAR x000) ,5% EBITDA Margin 11.9% 13.3% In line with our acquisition plan, our company has started to distribute McVities & Rana products in Saudi. The total contribution of this change to the volume is 5.6 ktons and 93 M SAR in terms of revenue. Along with McVities and ULKER brands our business has grown tremendously year over year. (1) Source: Worldbank CAGR. (2) Source: IMF CAGR. * Source: Worldbank CAGR ** Source: IMF CAGR 26

27 Kazakhstan A bridge from East to West 27 Snapshot of Kazakhstan (2017) Market Size (Vol) Population 17.5m Population Growth Rate (1) c.1.5% GDP (2) Traditional Channel Size of Confectionery Market Financial Review US$185bn c.80% US$1.3bn % 1% 26% 56 3% 1% 26% 69% 70% 69 4% 1% 71% F 2019F Chocolate 24% 1% Sweet Biscuits Savory Biscuits Cake 9M M 2017 Change Sales Volume (tonnes) % Net Sales (KZT x000000) ,1% EBITDA (KZT x000000) ,7% EBITDA Margin 6,1% 4,0% After acquisition of the company, SKU optimization project has been started in order to attain sustainable growth and expand the profitability strategy. Within the scope of this project, low profitable products are started to be delisted. (1) Source: Worldbank CAGR. (2) Source: IMF CAGR. * Source: Worldbank CAGR ** Source: IMF CAGR 27

28 Strong brand recognition in operating territories 28 Continue to gain market share in Operating territories Egypt Saudi Arabia Kazakhstan #3 Biscuits 13.8% Market Share #2 Biscuits 13.4% Market Share #3 Chocolate 8.8% Market Share # 1 in Filled (Biskrem and Tamr brands) # 1 in Plain # 1 in Filled # 4 in countline # 4 in Sandwich #1 in Coated # 1 in Biscuits with filling # 2 in Plain (Teabiscuits and Finger biscuits) # 3 in Wafer Market Share Development, Value Based (1) 13,2% 13,8% 13,3% 13,4% 8,8% 8,8% (1) Source: AC Nielsen-LTM *Source: AC Nielsen Value Market Share

29 2017 New Launches & Synergy Products 29 EGYPT KAZAKHISTAN SAUDI ARABIA SYNERGY PRODUCTS 29

30 Strong performance prevailed in Q with profitability focus 30 Confectionary Sales Volume (thousand tons) Confectionary Net Sales (TL m) Gross Profit* (TL m) EBITDA* (TL m) 20,4% 26,4% 6,4 % 9,7 % 25,6 30,5 182,2 264,0 42,8 70,4 13,4 25,8 Q Q Q Q Q Q Q Q Branded sales volume up by 29,1% Overall volume was up by 18,7 % * Includes non-confectionary Gross Profit / EBITDA Includes non-confectionery Gross Profit & EBITDA Accelerated branded revenue growth by 55,6% Overall revenue was up by 44,9% in Q thanks to - Effective pricing strategy - New initiatives - Distribution of McVities &Rana in Saudi - FX impact - New Ulker launches 30 Gross Profit was up by 64,4% Continued gross margin increased to 26,4%, gains of 6 pp thanks to - New Launches, - Effective Cost Management - New Initiatives- Distribution of McVities &Rana in Saudi - Improved raw material sourcing EBITDA growth by 92,4% and margin improvement of 3,3 pp to %9,7

31 Excellent contribution to both sales and profitability in 9M Confectionary Sales Volume (thousand tons) Confectionary Net Sales (TL m) Gross Profit* (TL m) EBITDA* (TL m) 24,4% 28,6% 10,7% 13,1% 98,8 102,6 701,7 930,2 198,9 288,6 87,4 131,6 9 M M M M M M M M Branded sales volume up by 10,4% Overall volume was up by 3,8% in 9M 2017 * Includes non-confectionary Gross Profit / EBITDA Accelerated branded revenue growth by 37,6% Overall revenue was up by 32,6% in 9M 2017 thanks to - Effective pricing strategy - FX impact - New Distribution of McVities &Rana in Saudi - New launches Gross Profit was realized as 28,6% Continued gross margin increased with a gains of 4.2 pp thanks to - New Launches, - Effective Cost Management - New Initiatives- Distribution of McVities &Rana in Saudi - Improved raw material sourcing EBITDA growth by 50,5 % and margin improvement of 2.4 pp to %13,1 31

32 Strategy to focus in branded confectionery products 32 Confectionery Branded & Non-Branded Volume Breakdown Confectionery Branded & Non-Branded Revenue Breakdown 9M M M M 2017 Non Branded 30% Non Branded 26% Non Branded 23% Non Branded 20% 70% Branded +4 pp +3 pp 74% 77% Branded Branded 80% Branded 32

33 33 Strategy 33

34 Market Cake Chocolate Biscuits Solid strategies for continued profitable growth across the region 34 Turkey Saudi Arabia & Middle East Egypt & North Africa Kazakhstan & Central Asia Regain market leader position in all biscuits segments Maintain undisputed leadership in the chocolate segment Broaden the portfolio and become strong #2 Focus to grow share in traditional trade and ensure «in-store excellence» Continue to maintain cost advantages To become #1 in biscuits and a strong challenger in the confectionery market Creating a production hub for the whole Middle East market Leveraging on Ülker's know-how Introduce new formats in the market Improving distribution network in modern sales channel Deeper penetration in the traditional channel To become #1 in biscuits, #2 in cake & in top 5 in chocolate Creating a production hub for the whole North African market Room for organic growth in the cake & chocolate segments Entry to the wafer segment Increase traditional trade business share Deeper penetration in the traditional channel To become #3 position in biscuits & Confectionary market» Production hub for Central Asia, the Urumqi region, and certain regions of Russia Strengthen position in chocolate category in different occasions & formats Balanced portfolio of packed and bulk products Optimization of cost across the value chain 34

35 35 Inorganic Growth Opportunities 35

36 Synergies via pladis will boost operational capabilities 36 Efficiencies in direct & indirect procurement Creating business potential and focus on value added products MENAT Operations Pladis synergies New export opportunities through pladis network widening product umbrella Having global & regional & local brands, competitive edge R&D Capabilities 36

37 37 Godiva Global Premium Chocolate Producer 37

38 Godiva A Valuable Financial Asset 38 Leading premium chocolate producer with significant brand equity worldwide Geographical presence of Godiva as of 2016 year-end including franchise stores Entry into China, S.Korea, Indonesia, S. Arabia, Thailand and Turkey since the acquisition Strong further growth potential through investing in store expansion, especially in the Far East, increasing on-line presence and development of the FDM business in partnership with pladis product portfolio innovation, entry into new geographies. Godiva plans to open 50 new stores per annum. 203 stores in the US & Canada 31 stores in Europe 45 stores in Middle East 473 stores in Asia Evolution of Company Owned Stores Year U.S. Japan China Pac Rim Belgium Others Godiva store in Harrods, London 38

39 39 Financials 39

40 Effective Cash Cycle and Net Debt Management 40 Average Working Capital Days TL 665m TL 675m M M 2017 Net Debt (TL m) A/R A/P Inv Cash Cycle of 43 days in 9M 2017 (49 days in 9M 2016) Working capital requirement over sales ratio was 15,0% in 9M 2017 and 16,5% in 9M 2016 Net debt stands at TL 773 mn as of Sept 30, 2017 Net debt to EBITDA is 1,26x in 9M 2017 and 1,22x as of 31 December Maturity breakdown as of September 30, 2017: Short term 62,0% Long term 38,0% 40

41 Net FX Position 41 (Million TL/$/ / ) TL USD EURO GBP Cash and Cash Equivalents 3.278,2 447,5 402,2 0,6 Trade Receivables 128,4 26,1 7,7 0,7 Total Assets 3.406,7 473,6 409,9 1,3 Other Non Current Assets 0,1 0,0 - - Total Assets 3.406,7 473,6 409,9 1,3 Financial Liabilities 2.356,6 379,7 240,4 - Trade Payables 108,2 18,5 9,6 0,4 Other 10,7 3,0-0,0 Current Liabilities 2.475,5 401,2 250,0 0,4 Financial Liabilities 1.446,9 132,9 232,5 - Non Current Liabilities 1.446,9 132,9 232,5 - Total Liabilities 3.922,4 534,1 482,5 0,4 Net Position (515,6) (60,5) (72,7) 0,9 Derivative Transactions 537, ,8 0 Net Position after derivative transactions 22,2 67,5 (52,9) 0,9 The FX net position of B/S has been minimized through derivative instruments 41

42 Income Statement Income Statement(TL mn) 3Q 2016 Restated 3Q M 2016 Restated 9M 2017 Sales Revenues 842, , , ,20 Growth (%) 20,3% 16,6% GROSS PROFIT 179,1 233,7 677,5 803,9 Growth (%) 30,5% 18,7% Gross Profit Margin 21,3% 23,1% 23,5% 23,9% Marketing, Sales & Distribution Expenses (64,2) (87,9) (251,5) (307,4) General Administration Expenses (26,1) (32,1) (89,3) (96,0) Research Expenses (1,4) (3,2) (5,7) (9,5) Other Operating Inc/Exp, net 3,9 (0,1) 8,9 4,4 OPERATING PROFIT 91,4 110,4 340,0 395,4 Income from Investments 67,7 141,7 115,5 276,8 Operating Profit before Financial Inc/Exp 159,1 252,1 455,5 672,2 Finance Inc/Exp, net (91,5) (167,5) (138,8) (336,0) Profit Before Taxation 67,6 84,6 316,7 336,2 Tax Charge from Continued Operations (12,2) (10,0) (60,8) (54,3) PROFIT FOR THE PERIOD 55,4 74,6 255,9 281,9 Non Controlling Interests 1,1 10,9 21,6 35,3 Equity Holders of the Parent 54,3 63,7 234,3 246,6 EBITDA 109,7 136,9 393,9 468,5 42

43 43 Appendix 43

44 pladis: Promise happiness to the world with every bite 44 Yıldız Food 44

45 pladis: Promise happiness to the world with every bite 45 Previously Current Target Yıldız Holding Yıldız Holding Yıldız Holding 49,9% 100% 100% 100% 100% Ulker Biskuvi United Biscuits Star Brands 28,9% pladis 21,0% 100% 51,0% pladis 100% 100% Ulker Biskuvi United Biscuits Ulker Biskuvi United Biscuits Star Brands 45

46 Corporate Governance In the heart of the company 46 Board of Directors 3 independent board members out of 9 board members, complying Capital Markets Board regulations Audit Committee Formed by 2 independent members Meet 4 times in a year Main duties are; Audit to ensure that periodic financial statements and their footnotes comply with the current legislation and international accounting standards More to be found at Early Detection of Risks Committee Corporate Governance Committee Formed by 2 independent members Meet 6 times in a year Main duties are; Identify the company's current and potential financial, operational and external risks, and provide advice on taking the necessary measures More to be found at Formed by 2 independent members + 2 company officials Meet 4 times in a year Main duties are; Work to create a transparent system to identify, assess and train appropriate candidates for the Board of Directors, and to establish policies and strategies in this regard More to be found at 46

47 Sustainability This is our world 47 6 key issues are identified Environmental Sustainability Value Chain Innovation Employees Responsibility Social Responsibility First Sustainability Released in 2016 Sustainability Practices Second Sustainability Released in 2017 Sustainability Index Listed for the first time in 2015 and become the first listed food company ever in sustainability index Detailed commitments are available at sustainability/sustainability-approach/ourcommitments.aspx 47

48 Steady improvement in operational front 48 3,6% 13,1% 1,3% 3,9% 2011 EBITDA Margin Distribution Restructuring Category Mix Effect Better Cost & Opex Management 2016 EBITDA Margin 48

49 ÜLKER BİSKÜVİ A.Ş. Investor Relations Tel : : ir@ulker.com.tr Verda Beste Taşar Head of Investor Relations Tel: beste.tasar@ulker.com.tr Borsa Istanbul: ULKER.IS - Bloomberg: ULKER.TI - Reuters: ULKER.IS