TAB GIDA SANAYİ VE TİCARET A.Ş.

Earnings Release • Mar 3, 2025

FY 2024 Financial and Operational Highlights

(All financial figures are in line with IAS 29 unless otherwise stated)

(million TL)	FY 2023	FY 2024	YoY change
Revenues	28,858	32,009	11%
Gross profit	4,901	5,530	13%
Gross margin	17,0%	17,3%	0,3 pp
Adj. EBITDA1	6,361	6,941	9%
Adj. EBITDA margin	22,0%	21,7%	-0,4 pp

Key highlights in FY 2024

(All financial figures are in line with IAS 29 unless otherwise stated)

• ➢ Revenues increased by 11% YoY in real terms to 32 billion TL in FY 2024. (Without applying IAS 29, net sales grew by 65% YoY to TL 27.8 billion.)
• ➢ Gross profit came in at 5.5 billion TL in FY 2024, up by 13% in real terms over FY 2023. (Without applying IAS 29, gross profit grew by 62% YoY to 5.9 billion TL.)
• ➢ Adjusted EBITDA posted a solid real growth of 9% on a YoY basis and was recorded at 6.9 billion TL in FY 2024. (Without applying IAS 29, adj. EBITDA grew by 63% YoY to 5.9 billion TL.)
• ➢ System-wide sales (without applying IAS 29) increased by 64% YoY to 41.1 billion TL in FY 2024.

Comments of Co-CEOs

As we conclude 2024, we are proud to reflect on a year of strong execution and resilience, despite ongoing macroeconomic challenges. Our unwavering focus on sustainable profitability and value creation has driven meaningful progress across key metrics, further solidifying our leadership in the industry.

We are pleased to have successfully achieved our 2024 guidance across all key performance indicators, underscoring the strength of our business model and the exceptional execution of our teams. Despite a challenging environment, we exceeded our restaurant opening target by launching 246 new locations —well above our 200+ goal— expanding our market presence and enhancing customer accessibility. This restaurant opening performance means that on average we have opened a new restaurant every working day in 2024. On an IAS 29 unadjusted basis, revenues reached 27.8 billion TL, near the upper end of our projected range (27.5–28 billion TL), while Adjusted EBITDA margin stood at 21.1%, meeting our guidance of over 21%. System-wide sales grew to 41.1 billion TL, marking a 64% year-on-year increase before inflation adjustments.

When adjusted for IAS 29 inflation accounting, our revenues grew by 11% in real terms to 32 billion TL, while Adjusted EBITDA increased by 9%, reaching 6.9 billion TL—demonstrating our ability to drive consistent real growth even in a volatile environment.

Our expansion strategy remains a key pillar of our success. The addition of 246 new restaurants brought our total footprint to 1,830 locations, with franchise-operated restaurants now accounting for 45% of our portfolio, up from 43% at year-end 2023. Our franchisee revenues grew remarkably by 36% in real terms, highlighting the strength of our franchise systems.

¹Adjusted EBITDA is calculated by deducting operating expenses (G&A and marketing expenses) from gross profit and adding depreciation and amortization, waste oil income, salary protocol income, and insurance income related to profit losses.

Operational efficiency and digital transformation were major performance drivers in 2024. We installed 766 new self-order screens, bringing the total to 1,359, which accelerated service times and enhanced customer experience — contributing to around 20% increase in ticket sizes through effective cross selling. Digital sales now account for around 35% of total revenue, reinforcing the success of our digital strategy. Additionally, we tested innovative initiatives such as SmartBox Lockers, Table Service Enhancements, and Buzzer Systems throughout the year. In 2025, we will accelerate these efforts to further enhance operational excellence, customer convenience, and overall efficiency.

Marketing and product innovation also played a vital role in our success. Our campaigns resonated strongly with consumers, driving a 9% increase in 4Q ticket volumes to 51.3 million. Seasonal product launches further boosted sales, while our 'Ne Yediğini Bil' ('Know What You Eat') platform reinforced customer trust in our commitment to quality and transparency.

As we look ahead, we remain dedicated to delivering sustainable growth and long-term value for all our stakeholders. We extend our sincere gratitude to our franchisees, employees, and investors for their continued trust and support. Together, we are building a stronger, more resilient company for the future.

Outlook for YE 2025

As we move towards 2025, our focus remains on growth, innovation and market leadership. We plan to open approximately 180 new restaurants, the majority of which will be franchised, reinforcing the scalability and strength of our business model.

In parallel, we will continue to invest in self-order screens, which significantly enhance operational efficiency, and increase the share of digital sales in total revenues. By leveraging value-oriented offers and targeted campaigns, we aim to elevate customer loyalty and maximize sales potential.

Financially, we expect revenue growth of over 40%, driven by both a higher number of tickets and increased average ticket sizes. On the profitability front, we anticipate an Adjusted EBITDA of TL 8- 8.2bn, reflecting our commitment to efficiency and balanced growth. All in all, we plan to increase both revenue and Adjusted EBITDA above inflation. In addition to indigenous drivers that is shaping our forecast, it is noteworthy to mention that the current competitive environment is also working to our favor by way of providing us with a rare opportunity to increase our market share.

Above all, we are committed to sustainable and profitable growth, creating long-term value for our stakeholders through operational excellence and a diversified sales approach. With these strategic priorities, we are confident in our ability to outpace market growth, shape industry trends, and further strengthen our leadership position.

Key Operational and Financial Figures

Based on the CMB's decision dated 28 December 2023 and numbered 81/1820 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published by the POA with the announcement made on 23 November 2023, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29, starting from their annual financial reports for the accounting periods ending as of December 31, 2023.

As of March 31, 2024, an adjustment has been made in accordance with the requirements of IAS 29 ("Financial Reporting in High Inflation Economies") regarding the changes in the general purchasing power of the Turkish Lira. IAS 29 requirements require that financial statements prepared in the currency in circulation in the economy with high inflation be presented at the purchasing power of this currency at the balance sheet date and that the amounts in previous periods are rearranged in the same way. The indexing process was carried out using the coefficient obtained from the Consumer Price Index in Turkey published by the Turkish Statistical Institute ("TUIK").

The relevant figures for the previous reporting period are rearranged by applying the general price index so that comparative financial statements are presented in the unit of measurement valid at the end of the reporting period. Information disclosed for previous periods is also presented in the measurement unit valid at the end of the reporting period.

However, certain items from our financials are also presented without inflation adjustment for information purposes in order to give an idea of our performance relative to the Price Determination Report, which was prepared on 4 September 2023 and published on Public Disclosure Platform on 13 October 2023 and relative to our 2024 forecasts, which we announced on 25 December 2023 and which were based on the financials without inflation adjustment. Below analysis is based on unaudited financial statements without the application of IAS 29.

Key Operational and Financial			YoY			YoY
Figures* (million TL)	4Q 2023	4Q 2024	change	FY 2023	FY 2024	change
Number of tickets ('000)	47,081	51,309	9%	203,718	207,648	2%
Average ticket size (TL)	147	214	46%	123	198	61%
System-wide2 sales	6,906	11,005	59%	25,136	41,147	64%
Revenues	4,729	7,494	58%	16,887	27,806	65%
Gross profit	1,020	1,568	54%	3,622	5,857	62%
Adj. EBITDA	1,090	1,613	48%	3,606	5,874	63%
Profit before tax	885	1,163	31%	2,051	4,567	123%
Net income	770	929	21%	2,271	4,086	%0%
Gross margin	21,6%	20,9%	-0.7 pp	21.4%	21.1%	-0.3 pp
Adj. EBITDA margin	23,1%	21,5%	-1.6 pp	21.4%	21.1%	-0.3 pp
Net income margin	16,3%	12,4%	-3.9 pp	13.4%	14.7%	1.3 pp

* Unadjusted for IAS 29

In FY 2024:

Our system-wide sales saw a 64% year-on-year increase, reaching 41.1 billion TL. This was achieved by 2% increase in number of tickets and 61% increase in average ticket size. The number of tickets rose notably by 9% year-on-year to 51.3 million in 4Q 2024, carrying our full year growth to 2%. Our strategic initiatives addressing the purchasing power decline have been well received by our customers. This growth in ticket count is especially striking given these campaigns were centered around double-meal deals. Moreover, the trend towards delivery orders continued in 4Q 2024 quarter as well.

Average ticket size rose by 61% year-on-year in FY 2024, slightly higher than inflation. This was on the back of higher share of double-meal deals and delivery orders which include higher products in one ticket. In 4Q 2024 specifically, despite higher share of economy meals in our mix, average ticket size increase was broadly in line with inflation, once again due to serving multiple customers in a single ticket. Moreover, our successful up-sell efforts supported by deployment of self-order screen supported our average ticket size throughout 2024.

2System-wide sales refer to the total sales of TAB-operated and Franchisee-operated restaurants.

New product launches in sweets and drinks category, such as bubble tea line and new ice cream products, as well as some side products and sandwiches catering various customer demands help achieving solid top line growth.

Our annual gross profit increased by 62% YoY and reached 5.9 billion TL. Accordingly, gross margin materialized at 21.1% broadly in line with last year's margin despite higher personnel expenses. This achievement demonstrates our capability to pass on cost increases into product prices.

TAB Gıda reported Adjusted EBITDA of 5.9 billion TL, corresponding to 63% YoY growth. Accordingly, the Adjusted EBITDA margin was posted at 21.1%, in line with our guidance of over 21%.

Profit before tax rose by 123% year-on-year to 4.6 billion TL in FY 2024. Strong operational performance along with net financial income of 1.0 billion TL booked in FY 2024 versus net financial expense of 155 million TL in FY 2023 helped our company to post strong improvement in profit before tax. At the bottom line, TAB Gıda recorded 4.1 billion TL net income in FY 2024, marking an 80% year-on-year increase.

On the balance sheet front, we were able to grow our total assets by 11% in real terms as of 2024 versus 2023 year-end. Similarly, our equity grew by 13% in real terms, providing a solid foundation for our future growth and profitability.

As of the end of FY 2024, total cash stands at 6.0 billion TL with practically no financial debt. Our balance sheet and operations have virtually no foreign currency risk with no FX denominated debt and due to procurements taking place locally.

TAB Gıda Consolidated Income Statement

(TL)	1 January - 31 December 2023	1 January - 31 December 2024	Change (%)
Revenue	28,858,468,239	32,009,061,817	11%
Cost of revenue	(23,957,130,083)	(26,478,652,353)	11%
Gross profit	4,901,338,156	5,530,409,464	13%
General administrative expenses	(817,365,430)	(1,126,558,245)	38%
Marketing, selling and distribution expenses	(1,499,533,945)	(1,495,770,243)	0%
Other income	447,088,301	502,871,086	12%
Other expense	(577,322,543)	(590,348,572)	2%
Operating income / loss	2,454,204,539	2,820,603,490	15%
Income related to investing activities	681,342,743	2,038,262,417	199%
Expense related to investing activities	(95,326,925)	(91,898,834)	-4%
Operating profit before financial income	3,040,220,357	4,766,967,073	57%
Financial income	446,354,146	142,411,444	-68%
Financial expenses	(1,423,593,027)	(887,445,090)	-38%
Monetary gain / (loss)	1,847,837,344	(1,144,589,956)	-162%
Profit before tax	3,910,818,820	2,877,343,471	-26%
Tax expenses	(422,898,138)	(732,167,732)	73%
Deferred tax income	60,604,345	(233,508,363)	-485%
Profit for the period	3,548,525,027	1,911,667,376	-46%

Adjusted EBITDA calculation (TL)	1 January - 31 December 2023	1 January - 31 December 2024	Change (%)
Gross profit	4,901,338,156	5,530,409,464	13%
- Operating expenses	(2,316,899,375)	(2,622,328,488)	13%
+ Waste oil income	69,264,420	59,110,946	-15%
+ Salary protocol revenues	8,390,995	17,114,703	104%
+ Insurance income related to profit losses	171,673,770	-	-100%
+ Depreciation and amortization	1,419,744,550	1,650,706,174	16%
+ Depreciation related to lease obligations	2,107,876,355	2,305,911,770	9%
Adjusted EBITDA	6,361,388,872	6,940,924,569	9%

TAB Gıda Consolidated Balance Sheet

	as of	as of
(TL)	31 December 2023	31 December 2024
Current Assets
Cash and cash equivalents	5,695,848,444	6,033,282,124
Trade receivables	938,295,696	1,384,624,439
- Trade receivables from related parties	382,547,812	732,553,326
- Trade receivables from third parties	555,747,884	652,071,113
Other receivables	4,123,733	2,620,522
- Other receivables from related parties	-	-
- Other receivables from third parties	4,123,733	2,620,522
Inventories	407,252,611	393,466,641
Prepayments	1,204,677,128	988,071,807
Other current assets	27,066,388	37,750,734
Total current assets	8,277,264,000	8,839,816,267
Non-Current Assets
Other receivables	38,719,721	32,975,419
- Other receivables from related parties	-	-
- Other receivables from third parties	38,719,721	32,975,419
Property, plant and equipment	7,546,045,772	8,700,549,188
Intangible assets	843,952,174	954,820,658
Right of use assets	5,094,473,600	5,774,282,952
Prepayments	48,847,365	47,144,380
Other non-current assets	8,649,310	6,382,241
Total non-current assets	13,580,687,942	15,516,154,838
TOTAL ASSETS	21,857,951,942	24,355,971,105

4Q & FY 2024 Financial Bulletin

(TL)	as of 31 December 2023	as of 31 December 2024
LIABILITIES
Short term financial liabilities	81,867,978	21,590,544
Current portion of long-term financial liabilities	52,088,326	-
Short term lease liabilities	1,002,199,875	1,383,948,148
Trade payables	2,162,031,616	1,963,098,098
- Trade payables to related parties	1,531,730,618	1,363,944,971
- Trade payables to third parties	630,300,998	599,153,127
Other payables	1,171,716	42,431
- Other payables to third parties	1,171,716	42,431
Employee benefit obligations	461,366,251	531,167,363
Current provisions	182,814,993	215,794,261
- Current provisions for employee benefits	146,550,066	165,758,340
- Other current provisions	36,264,927	50,035,921
Deferred revenues	248,841,737	266,388,694
Current tax liabilities	215,645,154	294,650,711
Other current liabilities	108,610,415	85,818,428
Total current liabilities	4,516,638,061	4,762,498,678
Long-Term Liabilities
Long term lease liabilities	1,938,658,622	2,263,025,763
Long term trade payables	202,437,457	151,720,386
- Long term trade payables to unrelated parties	202,437,457	151,720,386
Non-current portion of employee benefit obligations	144,749,652	162,531,247
Non-current portion of unearned revenues	263,952,821	126,090,327
Deferred tax liabilities	815,798,672	1,047,202,002
Total non-current liabilities	3,365,597,224	3,750,569,725
Shareholders' Equity
Share capital	261,292,000	261,292,000
Share capital adjustment differences	2,625,105,116	2,625,105,116
Share premium	5,313,357,310	5,313,357,310
Treasury shares	-	(26,317,148)
Restricted reserves	-	196,295,423
Gain on remeasurement of defined benefit plans	5,362,430	4,662,254
Revaluation of property, plant and equipment	723,333,446	723,333,446
Currency translation adjustment	17,768,519	169,876,482
Profit for the year	3,548,525,027	1,911,667,376
Retained earnings	1,480,972,809	4,663,630,443
SHAREHOLDERS' EQUITY	13,975,716,657	15,842,902,702
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	21,857,951,942	24,355,971,105

About TAB Gıda

TAB Gıda's activities in the quick service restaurant sector started in 1995 when it acquired the master franchise rights of Burger King® and brought it to Türkiye.

Never compromising on the principles of quality and health in the quick service restaurant sector, TAB Gıda introduced Sbarro®, which offers the most delicious slice of life, to the Turkish public in 2007.

Launched in 2007 under TAB Gıda, Popeyes® is Türkiye's largest chicken restaurant chain in terms of number of restaurants. Combining unique flavor formulas developed by renowned chefs from Louisiana and the traditional flavors of New Orleans with authentic tastes, Popeyes® offers hearty and delicious options.

Arby's®, which distinguishes itself from its peers with its unique products, has been serving in Türkiye with the assurance of TAB Gıda since 2010.

In 2013, TAB Gıda created the Usta Dönerci® brand, to which it transferred its quarter-century of experience in the sector. After Usta Dönerci®, Usta Pideci® is the second brand created by TAB Gıda in 2019. Usta Pideci®, which offers delicious pita varieties prepared with carefully selected ingredients, charcuterie, and veal from reliable sources and loyal to classical methods, invites pita lovers to taste the flavors of Türkiye with the slogan "Pita is eaten from the master!".

Subway®, which TAB Gıda added to its global brands in 2022, is one of the world's largest quick service restaurant brands.

Special Note Regarding Forward-Looking Statements

This document includes forward-looking statements including, but not limited to, statements regarding TAB Gıda Sanayi ve Ticaret A.Ş.'s ("TAB Gıda") plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "target," "believe" or other words of similar meaning. These forward-looking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. These forwardlooking statements include statements about TAB Gıda's expectations and beliefs regarding: (1) the sales, revenue and restaurant growth and expansion opportunities for TAB Gıda's brands and the drivers and pace of such growth, (2) TAB Gıda's restaurant pipeline and its long-term restaurant growth goal, (3) TAB Gıda's approach and goals concerning digital and technology initiatives, (4) TAB Gıda's business strategies, strategic initiatives and growth prospects, (5) capital allocation, (6) TAB Gıda's ability to create value for its shareholders, (7) competition in its markets and its relative position, and (8) sources of revenue and the drivers of TAB Gıda's financial and operational performance.

Should any of these risks and uncertainties materialize, or should any of management's underlying assumptions prove to be incorrect, TAB Gıda's actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated or expected. Forward-looking statements speak only as of this date and TAB Gıda has no obligation to update those statements to reflect changes that may occur after that date.