KOTON MAĞAZACILIK TEKSTİL SANAYİ VE TİCARET A.Ş.

Investor Presentation • Mar 11, 2025

4Q2024 Analyst Presentation 4Q2024 Analyst Presentation

Notes: unless stated otherwise, based on inflation accounting applied FY2024 figures. ¹For eleven years between 2012-2024 in Türkiye according to the Association of Shopping Malls and Shopping Mall Investors; Company EBITDA calculation method as stated in the IPO prospectus and following financial reports: EBITDA: Profit before tax + net interest expense + net imputed interest + net investment income + amortization + IPO related expenses – monetary gain.

4Q2024 HIGHLIGHTS

• Türkiye sales rose by 36% in real terms
• 50% real sales growth in Koton.com supported 28% consolidated e-commerce sales growth
• Consolidated gross profit rose 3.5% in real terms while 42.8% gross margin resulted in market share gains in Türkiye
• Opened 7 new stores of which 6 were international stores
• Koton Club member count reached 6.5mn

Financial Performance

Robust Sales Growth in Türkiye Compensated Weakness in Int'l Sales

2.4 Deviation from the latest sales guidance is largely due to sharper than expected contraction in international revenues and e-commerce underperforming its targets.

SIMULATION REGARDING IMPACT OF REAL APPRECIATION OF TL ON CONSOLIDATED SALES

SIMULATION REGARDING IMPACT OF REAL APPRECIATION OF TL ON CONSOLIDATED SALES

IMPACT OF STRONG TL ON SALES COMPOSITION

Share of Int'l Sales Retreated From 45% in 4Q2023 To 24% in 4Q2024

Trendy Product Offering and Flexible Procurement Resulted in Higher Gross Margins

-

IAS 29

2024 EBITDA MARGIN REALIZED AT 19.4%

-

Wage Support, Rise in Other Operational Expenses and Limited FX Gains Weighed on 4Q EBITDA Margin

Int'l LFL volumes 4Q24: -14.6% 2024: -6.2%

Türkiye LFL sales 4Q24: +12,0% 2024: +6.6%

Int'l LFL sales 4Q24: -25.8% 2024: -19.1%

Operational Performance

7 new stores opened in the fourth quarter 6 of which were international stores

Koton.com Sales Increased by 50% in the 4Q2024 and 30% in 2024

Sales (Mn, TL)	4Q2023	4Q2024	Change	2023	2024	Change
E-Commerce (Consolidated)	767,558,413	980,761,974	27.8%	2,665,399,726	30.3mn 3,061,861,063	14.9%
Koton.com (B2C)	154,568,990	232,296,862	50.3%	522,642,092	682,221,316	30.5%
Local Marketplaces (B2C)	199,228,832	191,801,182	-3.7%	593,792,277	739,741,436	24.6%
Int'l Marketplaces (B2C)	243,932,153	250,646,205	2.8%	751,827,933	928,408,121	23.5%
Marketplaces (B2B)	169,828,438	306,017,724	80.2%	797,137,424	711,490,189	-10.7%

• Koton.com is expanding internationally on the back of suburb performance in Türkiye. Encouraging initial results from the test market Romania. More to come with Russia, Kazakhstan and GCC.
• Koton.com traffic grew by 14% and reached 67.5 million in 2024 while Koton mobile app active user count increased 190% and reached 7 million*.

Koton Club 2025 target is 9mn members

Koton Club Members (mn)

2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 1.6 2.5 3.1 4.1 5.0 5.7 6.5

Koton Club supports online and offline sales

Opex to Sales Ratio Rose in 2024

Higher wages, logistic and marketing related costs accompanied by TL related sub-potential sales growth resulted in higher opex/sales ratio

ONGOING EFFICIENCY RELATED PROJECTS

Continuation of disciplined and flexible procurement

• SS25 procurement cost inflation below 30%

Further improvement in sales area efficiency

Restructuring in the GCC region

• LFL sales (YTD) +%20*

Slow selling products to be sold in other regions and channels

Boosting operational efficiency

Net working Capital related improvements

• Utilizing letters of credit more often in import procurement
• Improving supply chain management

OUTLOOK

2025 Outlook (Pre-IAS29)

Sales Growth

~%40

Net New Stores

14

Gross Profit Margin

50%

FINANCIAL TABLES & RATIOS

Balance Sheet Summary	31 December 2024	31 December 2023
Total current assets	12.244.524.297	10.597.930.932
Total non-current assets	7.078.818.887	7.143.094.631
Total Assets	19.345.801.977	17.741.025.563
Total S/T liabilities	10.641.210.677	9.000.669.419
Total L/T liabilities	2.529.295.634	2.914.020.496
Total Liabilities	13.170.506.311	11.914.689.915
Total Equity	6.175.295.666	5.826.335.648
Total Equity & Liabilities	19.345.801.977	17.741.025.563
	31 December 2024	31 December 2023
Cash & Cash Equivalents
Bank Loans	585.006.930 3.279.943.538	518.436.830 2.172.568.450
Lease Obligations	3.169.834.508	3.192.913.780
Net Financial Debt	-5.864.771.116	-4.847.045.400
Net Financial Debt (USD*)	165.952.776	137.154.652
Net Financial Debt /EBITDA	1.2	0.7
Net Financial Debt (excl. lease obligations)	-2.694.936.608	-1.654.131.620

Notes: Company EBITDA calculation method as stated in the IPO prospectus and following financial reports: EBITDA: Profit befo ²¹ re tax + net interest expense + net imputed interest + net investment income + amortization + IPO related expenses – monetary gain. *USD conversion based on 31 December 2024 CBT rate of 35,34

	4Q2024	4Q2023	2024	2023
Revenue	6.115.799.706	6.178.413.249	25.086.294.418	24.824.204.132
Cost of Sales	(3.498.236.247)	(3.649.745.538)	(11.580.985.334)	(12.918.519.879)
Gross Profit	2.617.563.459	2.528.667.711	13.505.309.084	12.918.519.879
Gross Profit Margin	42.8%	40.9%	53.8%	52.0%
Administrative Expenses	(729.639.003)	(626.965.505)	(2.325.477.471)	(2.027.686.969)
Selling and Marketing Expenses	(2.260.471.846)	(2.160.676.875)	(8.862.328.780)	(8.148.778.029)
R&D Expenses	(131.942.587)	(90.879.383)	(374.673.273)	(311.408.909)
Other Income	96.819.632	232.723.355	879.337.936	1.849.897.955
Other Expenses	(864.635.915)	(93.740.047)	(2.703.707.272)	(1.989.537.538)
Operating Profit	(1.272.306.260)	(210.870.743)	118.460.224	2.291.006.390
Investment Income	1.295.873	(2.589.986)	3.831.342	4.968.267
Investment Loss	(8.204.700)	3.176.778	(9.279.499)	(14.803.017)
Operating Profit Before Financial Expenses	(1.277.754.417)	(210.283.951)	113.012.067	2.281.171.640
Interest Expense, net	(501.179.334)	(484.036.854)	(1.611.354.799)	(1.685.014.704)
Monetary Gain/(loss)	113.697.568	687.262.525	947.669.352	2.637.717.575
Profit Before Tax	(1.666.696.853)	(7.058.279)	(550.673.380)	3.233.874.511
Current Tax Expense	99.923.821	(33.619.584)	-	(407.402.109)
Deferred Tax Expense	155.773.598	170.476.210	155.773.598	(221.049.481)
Profit	(1.410.999.434)	129.798.346	(394.899.782)	2.605.422.921
EBITDA	(73.094.100)	859.382.897	4.877.619.946	6.600.675.224
EBITDA Margin	-1.2%	14%	19.4%	26.6%

²² Notes: Company EBITDA calculation method as stated in the IPO prospectus and following financial reports: EBITDA: Profit before tax + net interest expense + net imputed interest + net investment income + amortization + IPO related expenses – monetary gain

This Presentation prepared only to provide information, and it is not intended to form the basis of any investment decision. This presentation may include forward-looking statements. Forward looking statements involve risks, uncertainties and other important factors over which the company may have limited or no control. These factors could cause the actual results, performance or achievements to differ materially from any future circumstances, results, performance or achievements expressed or implied by such statements. The forward-looking statements included in this report represent the Company's views as of the date of this report. All information contained in this Report was believed to be accurate at the time of publication. The company accepts no responsibility for any spelling errors that may occur.