Investor Presentation

Transcription

1 Investor Presentation September 2016 happy moments

2 2 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

3 Leading Name In Turkish Confectionery 3 70 years of experience in Turkish confectionery Turkey s leading producer of biscuits, chocolates, chocolate covered products, crackers, wafers and cakes Largest production capacity in Turkey with spread out facilities and 2 facilities in Egypt & Saudi Arabia Leader in chocolate category with 42% market share, and strong #2 in biscuit & cake categories with 34% and 29% market share 9M16 (LTM) Extensive sales & distribution capabilities covering 90% of traditional channel Consolidated annual net sales of TL 3.1 bn in 2015 A gateway to the Middle East, Northern Africa and CA, with int l volume forming c.27% of revenues in 9M16 Key figures TL mn 9M2016 Mcap as of 09/30/2016 7,312 Revenue EBITDA 372 EBITDA Margin % 13.3% Topkapı, Istanbul Chocolate Established in 1991 Capacity: 223k tons/year 68k sqm closed area Silivri, Istanbul Chocolate, chocolate covered biscuit Established in 1995 Capacity: 30k tons/year 12k sqm closed area Production Facilities Istanbul Gebze Hadımkoy, Istanbul Cake Established in 1992 Capacity: 45k tons/year 27k sqm closed area Saudi Arabia 50k tons/year Egypt 30k tons/year Karaman Ankara Karaman Biscuit, cake, cracker & chocolate Established in 1986 Capacity: 185k tons/year 102k sqm closed area Non-Ülker branded products 74% owned by Ülker Biscuit Gebze Biscuit & cracker Established in 1997 Capacity: 72k tons/year 41k sqm closed area Ankara Established in 1969 Capacity: 120k tons/year 86k sqm closed area The largest biscuit manufacturing facility in the Middle East Shareholding Structure (As of ) Sales 9M2016 k tons 9M2016 TL mn 9M2016 Excludes other non-confectionary sales of TL 84.8mn in 1H16 % share in Total Rev 9M2016 Biscuits 195 1,050 41% Chocolate 123 1,332 49% Cake % Free Float 42,7% Yıldız Holding & Subsidiarie s & Family Members 57,3%

4 Milestones Of Our Success 4 Revenues Mcap US$ mn Established as a small scale family run bakery Numerous minority shareholders triggered the listing of Anadolu Gıda on İstanbul Stock Exchange Ülker Gıda merged under its own title with Anadolu Gıda 1,322 2,736 1,131 2,070 Mcap as of year-end 2015 FY Revenue Appointment of Murat Ülker as Chairman of Ülker and Yıldız Holding: new generation & new vision 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 Rapid growth led to complex corporate structure 4 sales companies, 4 production companies and minority stakes in 7 non-core assets : 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% - 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 2014 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 2014: Ülker Biskuvi acquired 30% minority stake in Biskot Divested stakes in Istanbul Gıda, Birleşik Dış Ticaret and Rekor 2016: Ülker Biskuvi acquired 45.9% majority stake in Hi-Food(Egypt) Ülker Biskuvi acquired 100% stake in Istanbul Gıda Ülker Biskuvi acquired 100% stake in FMC (Saudi Arabia)

5 The Best Recognized FMCG Brand 5 Ülker has always been the most recognized brand and closest to consumers Strength of the brand is proven by national and international awards Best Recognized Brands Brand One Feels Closest To # 1 # 2 # 3 # 4 # 5 Source: ACNielsen Most Genuine Company (MediaCat & Ipsos, 2014) The Brand Award (International Brands Conference, 2011) Long lasting relationships with end users enhance brand perception Ülker Perception Study in 2014 Proves that Ülker is positioned well above Turkey Benchmark in Trust, Like, Recognition, Familiarness, and Advocacy Source: Ipsos Trust Like Ülker Turkey Consensus 79% 45% 79% 47% Recognition Familiarness Advocacy 83% 56% 99% 91% 73% 42%

6 Strong Product Portfolio 6 Market leader or strong 2nd in the largest majority of our portfolio Strong leadership in Chocolate Covered, Solid Chocolate, Chocolate Covered Sandwich and sandwich biscuits segments New innovative product launches reaffirm our category leadership Biscuits 34% Market Share Chocolate 42% Market Share Cake 29% Market Share # 1 in Petit Beurre Segment # 1 in Creamy Biscuits Segment Top 3 in Chocolate Covered Segment #1 in Cake Segment # 1 in Special Biscuits Segment # 1 in Chocolate Covered Sandwich Segment In Top 5 in Chocolate Covered Segment #2 in Portion Cake Segment # 2 in Cracker Segment #1 in Solid Chocolate Segment # 1 in Sandwich Biscuits Segment #2 in Wet Cake Segment # 2 in Chocolate Biscuit Segment Retail market, Shares as of 1H2016 including BIM,A101&Sok #1 in Spread Chocolate Segment

7 7 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

8 Favorable Demographics & Young Target Population Sizeable market with a growing population Youngest population in Europe 8 Turkey has one of the youngest and fastest growing populations Attractive target consumer group Malaysia Turkey Indonesia S.Africa CAGR % 1.4% 1.3% 1.2% Population % 17% 12% 14% 7% 8% 11% 41% Brazil 0.9% 199 European median 41 yrs UK 0.7% % 14% France 0.5% % 17% Turkey median 31 yrs Italy 0.5% 61 Netherlands 0.5% % 12% 17% 59% Czech Rep. Poland 0.3% 0.2% % 25% Russia 0.2% 144 EU-27 Turkey Greece 0.2% 11 Source: Turkstat, Eurostat Germany -0.1% 82 Source: World Bank, Turkstat Total population in millions

9 Spending Increases In Tandem With GDP Per Capita kg biscuit consumption in 2015 Biscuits consumption vs GDP per capita Per Capita GDP (US$) Chocolate consumption vs GDP per capita Per Capita GDP (US$) 2.3 kg Chocolate consumption in 2015 Increasing GDP per capita expected to fuel biscuit and chocolate consumption Kg Per Capita Source: Euromonitor, World Bank Source: Euromonitor, World Bank Kg Per Capita Biscuit consumption in Turkey gained momentum since 2009 delivering 3,9% average annual growth versus EU average growth of 0,6% Chocolate consumption in Turkey also accelerated since 2009 delivering 5,0% average annual growth versus EU average growth of 0,3%

10 Category Growth In Turkey 10 Biscuits Market Growth (Tons) Chocolate Market Growth (Tons) Source: A.C. Nielsen Source: A.C. Nielsen New innovative product launches affects the growth of biscuits Chocolate coated biscuits grew highest in Consumer preference for practical, nutritious snacks and meal replacement alternatives including sandwich biscuits & filled biscuits Cake Market Growth (Tons) Bagged selflines/softlines was the fastest growing category in Tablets and countlines continue to grow at high single digits More sophisticated new products with novel formats and better-quality will continue to drive the category growth The trend of hybrid products with varied flavors and formats persists The new format of wet cakes which can be re-heated in the microwave has been the new trend

11 Regaining Market Share With Portfolio Management... Streamlined product portfolio and increased brand investment for improved share 11 Market Share Development, Volume Based Biscuit Market Share 9M16 vs 9M15 (LTM) Chocolate Market Share 9M16 vs 9M15 (LTM) Cake Market Share 9M16 vs 9M15 (LTM) Source: ACNielsen

12 12 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

13 International Operations 13 Saudi Arabia: A Market On The Move Saudi Arabia Key Facts; Population of 31.4 mn on a sq km land Average population growth of 1.6% in the last 5 years One of the world s top 25 most competitive economies with a total GDP of US$ 770 bn Largest free market in the Middle East, having 38% of the total Arab GDP One of the world s fastest growing countries- 8% average growth in the last 5 years One of the world s most stable currency- Saudi Riyal c.us$ 2,8 bn confectionery market FMC Established in % Yıldız Holding, 45% local partner Biscuit, chocolate and cake production Capacity: tons c. 100 trucks reaching c. 10,000 sales points GDP Growth 7,4% 9,6% 1,4% 3,6% 3,5% Inflation 5,2% 3,9% 3,1% 2,5% 2,9% Population 29,4 29,9 30,5 30,9 31,4 Population Growth 1,7% 1,7% 2,0% 1,3% 1,5% Tons Chocolate Biscuit Cake Value (US$ mn) Chocolate 738,7 852,4 993, , ,3 Biscuit 385,1 429,1 481,1 531,4 588,6 Cake 599,1 671,3 757,3 838,7 933,8 Source: Euromonitor, World Bank (SAR x000) Sales Volume (Tons) 26,764 29,404 29,133 Net Sales 341, , ,750 EBITDA 18,727 31,725 40,366 EBITDA Margin 5.5% 8.2% 10.6% Net Debt (17,279) 46,974 24,591

14 International Operations (cont) 14 Egypt Key Facts; Egypt: Presenting Various Opportunities In A Sophisticated Market Population of 91,0 mn on a 1,001,450 sq km land Average population growth of 1.5% in the last 5 years %50 of the population is under the age of 24 Second largest economy in the Arab world with a GDP of US$ 282,2 bn c.us$ 1,7 bn confectionery market Traditional channel is still dominant with c75% GDP Growth 7,8% 11,4% 3,5% 2,2% -1,5% Inflation 12,0% 12,0% 9,0% 11,0% 11,6% Population 85,6 86,9 88,3 89,6 91,0 Population Growth 1,5% 1,5% 1,6% 1,5% 1,6% Tons Chocolate Biscuit Cake Value (US$ mn) Chocolate 288,9 323,0 325,6 360,4 391,7 Biscuit 868,3 955,6 969, , ,9 Cake 149,7 161,9 159,1 172,6 182,5 Source: Euromonitor, World Bank Established in % Yıldız Holding, 54% - 2 Local partners Biscuit, production Hi Food Capacity: 30,000 tons (EGP x000) Sales Volume (Tons) 21,943 21,948 26,645 Net Sales 289, , ,734 EBITDA 44,883 40,728 48,938 EBITDA Margin 15,4% 13,4% 13,6% Net Debt 42,053 81, ,002

15 15 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

16 Inorganic Growth Opportunity 16 Kazakhstan Key Facts; Kazakhstan: A Bridge From East To West Population of 17,5 mn on a 2,724,900 sq km land Average population growth of 1.5% in the last 5 years One of the largest economy in CIS with a GDP of US$ 246 bn Located right in the heart of Eurasia A gateway to Russia, China, India c.us$ 1,3 bn confectionery market Traditional channel is still dominant with c80% GDP Growth 27,0% 8,2% 13,9% 4,3% 1,9% Inflation 8,0% 5,0% 6,0% 7,0% 7,9% Population 16,6 16,8 17,0 17,3 17,5 Population Growth 1,6% 1,4% 1,5% 1,5% 1,4% Tons Chocolate 85,500 87,700 90,800 91,500 93,900 Biscuit 44,070 45,167 47,730 49,387 50,816 Cake 13,300 13,500 13,700 13,800 14,000 Value (US$ mn) Chocolate 816,1 878,5 977, ,0 932,0 Biscuit 201,9 219,2 245,4 251,8 238,4 Cake 85,8 91,7 97,5 93,5 87,0 Source: Euromonitor, World Bank Hamle (KZT in bn) Sales Volume (Tons) 12,540 11,036 9,601 Established in % Yıldız Holding Net Sales 5,593 5,826 6,051 Biscuit, chocolate and cake production Capacity: tons Covering 14,000 sales points with 62 trucks EBITDA EBITDA Margin 2,4% 0,3% - Net Debt 3,816 3,515 9,054

17 Godiva A Valuable Financial Asset 17 Leading premium chocolate producer with significant brand equity worldwide Entry into China, S.Korea, Indonesia, S. Arabia, Thailand, Australia 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 and reach US$ 1bn in revenues and US$ 120mn EBITDA in 2017 Geographical presence of Godiva as of 2015 year end Owns and operates 601 retail boutiques, with presence in over 100 countries as of 2014 year-end Available via over 10,000 specialty retailers Key figures 207 stores in the US &Canada 17 stores in Europe 377 stores in Asia # of stores Revenues US$ 470mn US$ 732mn US$ 792mn EBITDA - US$ 48mn US$ 8mn Godiva store in Harrods, London Geographical store evolution Godiva store in Denver, the US Year U.S. Japan China Pac Rim Belgium Others

18 18 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

19 Strong Track Record In Operations 19 Continuing growth trend * Change (CAGR 2015/2011) Consolidated Volume (Tons) % Consolidated Revenue (mn TL) 1, , % Consolidated EBITDA (mn TL) % Consolidated Net Profit (mn TL)** % *These figures do not contain the delisted SKU s **Net profit for the equity holders of the parent 2011 Net profit excluding financial gains in 2011

20 Steady Improvement In Operational Front 20 Components of EBITDA margin improvement 3,7% 13,3% 1,3% 4,0% 2011 EBITDA Margin Distribution Restructuring Category Mix Effect Better Cost & Opex Management 9M 2016 EBITDA Margin

21 Simplified Route To Market Strategy 21 Traditional channel - Efficiency gains from restructuring Before Current Simplified and consolidated route to market creates cost efficiencies paving the way for further margin improvement Previous Structure Domestic Traditional Channel Biscuits Chocolates Other Food & Beverage Products Atlantik (Ülker brand) Atlas (Ülker brand) Distributors Distributors Completed New Structure Domestic Traditional Channel Biscuits Chocolates Other Food & Beverage Products Horizon (New Sales Company) Distributors Cakes Atlas Cakes 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: 200k % of invoice issued by visit: 90% Lower logistics expense More efficient route to sales points Enhanced distribution profit Better and faster execution capability Stronger distributors with higher nominal gains Owned by Yıldız Holding, took over all traditional sales activities of Ülker as well as Yıldız Holding s other companies sales activities

22 22 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

23 Sales Volume & Revenue Breakdown 23 Sales volume Net sales revenue

24 Increasing Sales 24 Sales volume by category Tons Ak Gıda Other Cake Chocolate Biscuit LFL Consolidated biscuits sales contracted by 4.2 in 3Q16 vs 3Q15 & 1.5% in 9M16; Turkey sales was down by 1.7% in the quarter & 3.0% in 9M16 Int l sales was down by 10.2%, yet was up 1.8% in 9M16 Consolidated chocolate sales contracted by 12.7% in 3Q16 vs 3Q15 & 2.5% in 9M16; Turkey sales was down by 13.2% in the quarter and 3.1% in 9M16 Int l sales was down by 10.1% LFL Consolidated cake sales contracted by 4.0% in 3Q16 vs 3Q15 & 7.3% in 9M16; Turkey sales was down by 3.9% in the quarter and 3.7% in 9M16 Int l sales was down by 4.3% in the quarter Q2015 3Q2016 9M2015 9M2016 Net sales by category TL mn Other Cake Chocolate Biscuit Consolidated biscuits sales revenue increased by 2.1% in 3Q16 vs 3Q15 & 6% in 9M16; Turkey sales was up by 5.4% in the quarter & 4.7% in 9M16 Price adjustments Mix impact ,2 25,8 91,2 96,8 376,7 381,8 304,0 310,3 2, ,9 119,8 294, ,9 991, ,2 Int l sales was down by 5.2% in 3Q & was up by 8.2% in 9M Consolidated chocolate sales revenue grew by 1.3% in 3Q16 vs 3Q15 & 7.4% in 9M16; Turkey sales was down by 1.4% in 3Q & was up by 6.8% in 9M Int l sales was up by 18.3% in 3Q and 10.6% in 9M 2, , ,6 3Q2015 3Q2016 9M2015 9M2016 Consolidated cake sales revenue expanded by 6.1% in 3Q16 vs 3Q15 & -0.3% in 9M16; Turkey sales was up by 4.8% in the quarter and 4.1% in 9M Int l sales grew by 16.5% in the quarter and -21.7% in 9M

25 Improving Margins 25 Gross profit and margin % EBITDA and margin % * TL mn Margin 22.2% 20.8% 22.8% 23.0% TL mn Margin 11.5% 12.7% 11.9% 13.3% LFL-21.7% LFL-22.5% LFL-11.5% LFL-11.7% LFL-173,3 LFL-597,3 623,8 643,9 LFL-91,3 LFL-309,8 326,7 371,9 182,5 169,3 94,8 103,8 3Q2015 3Q2016 9M2015 9M2016 Gross profit decreased by 2.2% to TL mn in 3Q16 on a like for like basis Gross profit expanded by 7.8% to TL mn in 9M16 on a like for like basis Gross margin contracted by 0.9 pp to 20.8% on LFL basis due to; Gross margin improved by 0.5 pp to 23.0% in 9M16 vs 9M15 on LFL basis 3Q2015 3Q2016 9M2015 9M2016 *Excludes Other Nonoperating Income&Expenses EBITDA grew by 13.7% to TL mn in 3Q16 on LFL basis EBITDA margin widened by 1.2 pp to 12.7% mainly due to; Effective pricing policy Efficiencies gained from investments Lower personnel cost EBITDA surged by 20.1% to TL mn in 9M16 on LFL basis EBITDA margin enhanced by 1.6 pp to 13.3% in 9M16

26 Working Capital & Net Debt 26 Average working capital days Net debt A/R A/P Inv. Cash Cycle Net debt - TL mn M16 Financial debt Short term financial debt Long term financial debt M 2016 Net working capital was TL 658 mn in 9M2016 and TL 488 mn at the end of 2015 Working capital requirement over sales ratio was 18.0% in 9M2016 vs 12.6% in Net Debt (TL mn) M 2016 Cash and cash equivalents Net debt Net debt as of Sept. 30, 2016: TL 716 mn (US$ 239 mn) Net debt to EBITDA is 1.4x Financial debt - US$ denominated due to company strategy - Maturity breakdown as of Sept 30, 2016: FX short position of TL 508 mn (US$ 173 mn) - Short term 23.2% - Long term 76.8% Cash & cash equivalents breakdown based on currency - TL: 107,7 mn - US$: 1.336,9 mn - Euro: 235,3 mn Amounts expressed in Turkish Lira TL

27 Financials 27 Consolidated Income Statement Income Statement (in TL mn) 3Q Q 2015 Restated 9M M 2015 Restated Sales Revenues 814,7 821, , ,6 Growth (%) -0,9% 2,1% Gross Profit 169,3 182,5 643,9 623,8 Growth (%) -7,3% 3,2% Gross Profit Margin 20,8% 22,2% 23,0% 22,8% Marketing, Sales & Distribution Expenses (60,4) (75,0) (241,9) (263,5) General Administration Expenses (24,7) (29,4) (84,9) (83,5) Research Expenses Other Operating Inc/Exp, net (1,4) (1,7) (5,7) (5,3) 8,3 13,9 23,9 28,1 Operating Profit 91,2 90,3 335,3 299,6 Income from Investments 67,7 374,1 115,3 679,3 Operating Profit before Financial Inc/Exp 158,8 464,3 450,6 978,9 Finance Inc/Exp, net (91,3) (405,2) (136,8) (752,8) Profit Before Taxation 67,5 59,2 313,7 226,1 Tax Charge from Continued Operations (12,2) (5,3) (60,2) (33,9) PROFIT FOR THE PERIOD 55,3 53,8 253,5 192,1 Non Controlling Interests 1,1 4,9 21,3 21,2 Equity Holders of the Parent 54,2 48,9 232,2 170,9

28 28 1. Ülker: Ülker In Brief 2. Organic Growth Drivers 3. International Operations 4. Inorganic Growth Opportunities & Godiva 5. Operational Performance 6. Financials 7. Appendix

29 Yıldız Holding: Strong & Supportive Parent 29 Operates in 6 sectors with USD 12 bn gross sales in 2015 The largest branded food group in CEEMEA 72 production facilities, 310 brands in 40 categories including biscuits, chocolate, confectionary, margarine & liquid oils, culinary products, 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, and Şok accounting for 7% of organized food retail sales in Turkey Diversified product portfolio holding strong market shares Best recognized food brand #1&2 in chocolates & biscuits #1 in edible oils and fats #1 in culinary products Bizim and Şok - 8% of Ülker s net sales as of 2015 Real Estate Personal Care Retail Finance Food Packaging Experience in managing international operations 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 Premium segment chocolate producer acquired in 2008 Leading international baked snacks producer acquired in 2014 In excess of 220k sales points nationwide c.90% coverage, second best after beverage companies 2012 revenues

30 pladis: Promise happiness to the world with every bite 30 Yıldız Food

31 Synergies With United Biscuits 31 Creating synergies at all fronts Procurement Joint Cocoa, Palm Oil, and packaging material procurement Lower cost due to scale advantage Cross-Production 16 facilities of United Biscuits vs 8 facilities of Ulker Biskuvi s facilities Lower costs mainly due to lower logistics, sales and distribution costs Use of Sales&Distribution Network Complimentary footprints of United Biscuits Leveraging each others brands and route-to-market expertise Combination of the two supply chain networks particularly in sourcing and distribution, given Ulker s vertically integrated supply chain

32 Sustainability 32 Placing great importance in making customers happy and being happy at work Sustainability Practices Our Commitments By 2024 Detailed commitments are available at sustainability/sustainability-approach/ourcommitments.aspx Sustainability approached publicized in the beginning of June key issues are underlined within the context of sustainability practices Environmental Sustainability Value Chain Innovation Employees Social Responsibility Leadership First Sustainability report of Ulker Biskuvi will be released in 2016 Environmental Sustainability: to grow with zero increase in Carbon Emissions 40% reduction in carbon emissions 100% recycling and Zero Waste to Landfill 25% increase in energy efficiency 30% reduction in water usage at factories Value Chain Increasing vehicle capacity usage to 90% in logistic operations 20% reduction in logistics-related carbon emissions Halving the amount of returned raw materials and packaging Social Responsibility 8,000 fewer tons of saturated fat in all bakery products 3,000 fewer tons of saturated fat in all chocolate products Employees Increasing training hours per person by approximately 40%. Reducing personnel turnover rate from 5% to 3.5%.

33 Cost Structure 33 Components of Cost of Goods Sold (Consolidated) Other 35% Raw Material 65% Raw Material Breakdown Cacao 15% Palm Oil 15% Wheat 20% Sugar 15% Palm Oil and Cacao are imported in USD terms Wheat and Sugar is procured from domestic sources in TL terms

34 Disclaimer 34 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