Investor Presentation | BORUSAN BİRLEŞİK BORU FABRİKALARI SANAYİ VE TİCARET A.Ş.

November 7, 2025


# **Legal Disclaimer**

Some information in this presentation may contain certain "forward-looking statements", including, without limitation BORUSAN BİRLEŞİK BORU FABRİKALARI SANAYİ ve TİCARET A.Ş. (Company)'s business projects, strategic objectives, future revenues, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, future developments regarding acquisitions, future-oriented financial information and "financial outlook" under applicable Capital Market Laws (collectively referred to herein as forward-looking statements). Forward-looking statements provide an opportunity for the potential investors to evaluate management's forecasts and opinions in respect of the future before they make a decision to invest. These forward-looking statements reflect the Company's views at the time such statement was made with respect to future events and are not a guarantee of future performance or developments and undue reliance should not be placed on them. Such forward- looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.

Accordingly, the Company's board members, advisors, or employees shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in, or omission from, this presentation, or on any other information or communications in connection with it. All information contained was believed to be accurate at the time of publication of this presentation and the Company accepts no responsibility for any spelling or printing errors that may occur during its preparation.


# **BORUSAN BORU AT A GLANCE**


- **Foundation and Status:** Established in 1958 as Borusan Group's first industrial venture, BBB is one of the leading manufacturers in the European and global steel pipe industry.
- **Public Listing:** BBB shares have been traded on Borsa Istanbul under the ticker symbol BRSAN since 1994, with a current free float rate of 19.85%.
- **Global Expansion:** BBB commenced operations in Italy in 2001 and entered the U.S. market in 2014; it acquired Berg Pipe in the USA in 2023.
- **Expansion in Europe:** In 2024, a service center was commissioned in Romania to serve the automotive industry.
- **Strengthening in the U.S.:** In 2024, BBB launched operations at the SRM factory in Baytown and announced the JCO (advanced forming technology) investment in Panama City.
- **Merger:** On January 10, 2025, BMB Holding was merged into BBB through the transfer of all assets and liabilities.
- **Restructuring in Türkiye:** On June 19, 2025, a strategic investment decision was made to restructure production infrastructure in Türkiye in line with sustainable growth, profitability, and operational efficiency goals.


## LEADING GLOBAL POWER IN STEEL PIPE PRODUCTION

| | | 4.0 | | |
|---|----|-----|----|-----|
| 5 | Co | nti | ne | nts |

**10** Facilities

1 million m² Area

2,328 Employees

1.75 million ton Capacity

**4,000** Product Types

| | FACILITY | PRODUCT | SECTOR | YEAR | CAPACITY (tons) |
|---|-------------------|----------------------------|--------------------------------------------------------------|------|------------------------------------|
| | TR - Halkalı | ERW and<br>Cold Drawn Pipe | Automotive, Industry & Construction | 1958 | 100,000 - welded<br>40,000 - drawn |
| | TR - Gemlik | ERW Pipe | Industry & Construction,<br>Infrastructure & Project, Energy | 1976 | 550,000 |
| | TR - Bursa | Service Center | Automotive | 2016 | 21 mln units |
| | TR - Gemlik | Cold Drawn Pipe | Automotive | 2019 | 60,000 - welded<br>50,000 - drawn |
| | USA - Baytown | ERW Line Pipes | Energy | 2014 | 300,000 |
| | USA - Baytown | SRM Pipe | Industry & Construction | 2023 | 100,000 |
| | USA - Panama City | LSAW Pipe | Infrastructure & Project | 1979 | 330,000 |
| 7 | USA - Mobile | HSAW Pipe | Infrastructure & Project | 2007 | 220,000 |
| | IT - Vobarno | ERW and<br>Cold Drawn Pipe | Automotive | 2001 | 30,000 - drawn |
| | RO - Romania | Service Center | Automotive | 2023 | 21 mln units |


### STEP BY STEP JOURNEY TO GLOBALIZATION

In 9M25 84% Global Market\* Revenue Share


Gemlik ERW Pipe

Facility commenced



1958 Borusan Boru has been established 1968 Halkalı ERW Pipe Facility commenced operations.

1969
First export has been realized.

operations.

1976

1979
Borusan Port, providing competitive advantage to Borusan Boru became operational.


1994
Borusan Boru A.Ş. shares started to be traded on BIST.


1998
Borusan and
Mannesmann
merged their pipe
operations in Türkiye.


2001
Borusan Vobarno
Tubi S.p.A.; the first
company abroad has
been acquired.


**2004**The Company has been titled as Borusan Mannesmann.


**2011**Gemlik HSAW Pipe Facility commenced operations.


2014
OCTG Pipe Facility in
Baytown constructed
with a \$150 mIn
investment, has
commenced operations.


**2016**Bursa Service Center serving for the automotive segment established.


**2019**Gemlik Automotive
Pipe Line established.


**2021**Germany
Commercial Office
has been launched.


2021
Second investment in
Europe: Borusan Tube
has been established
in Romania.


2022
BBB's revenues
surpassed the \$1
billion threshold,
reaching \$1.3 billion.


2023

Berg Pipe's two facilities in North America acquired for \$162 mln.

Borusan Group acquired Salzgitter Mannesmann shares. Title was registered as Borusan Birleşik Boru Fabrikaları San. ve Tic. A.Ş.

#### 2024

The SRM factory in Baytown, USA, and the Service Center in Ploieşti, Romania have commenced production.

#### 2025

JCO (advanced forming technology) investment of \$68 mln has been launched at Berg Pipe Panama City.


Strategic investment decision has been made to entegrate Türkiye's production infrastructure in Gemlik.


^\* Represents total revenue generated from all products manufactured in facilities abroad and exported from Türkiye.

# **BUSINESS MODEL THAT MANAGES RISKS THROUGH SECTOR AND GEOGRAPHICAL DIVERSITY**




**INDUSTRIAL & CONSTRUCTION**


**AUTOMOTIVE ENERGY**


#### **Revenue Breakdown**

2023 29% 18% 12% 41% **2024 47% 18% 12% 23%**

**Production Centers**

- Mobile (USA)
- Panama City (USA)


- Gemlik (TR)
- Halkalı (TR)
- Baytown (USA)


- Halkalı (TR)
- Gemlik (TR)
- Vobarno (IT) • Ploieşti (RO)


- - Gemlik (TR) • Baytown (USA)

- **Products** LSAW Line Pipes Industrial Pipe and Profiles Cold Drawn Pipes OCTG Pipes

- SRM Installation Pipes
- Spiral Welded Pipes ERW Natural Gas Pipes Hydraulic Cylinder Pipe ERW Line Pipes

- ERW Line Pipes Water Pipes Advance Processed Pipes
- Construction Pipe and Profiles Precision Pipes and Profiles


# **SUSTAINING PROFITABILITY WITH FINANCIAL DISCIPLINE AND OPERATIONAL EFFICIENCY**


Change in volume by business line as of 9M25 vs. 9M24:

- + Industrial and Construction: 36.6% increase
- + Energy: 2.6% increase
- Automotive: 2.9% decrease
- Infrastructure and Project: 11.0% decrease

Change in revenue by business line as of 9M25 vs. 9M24:

- + Industrial and Construction: 45.5% increase
- + Energy: 1.4% increase
- Automotive: 6.0% decrease
- Infrastructure and Project: 18.0% decrease


- + Operational profitability and net income increased in 3Q25 compared to 2Q25:
- + The continued profitability impact of the favorable pricing environment in the U.S. OCTG market that emerged in the second quarter
- + Contribution of elevated deliveries and on-going large scale projects in the Infrastructure and Project segment
- + Lower production costs driven by increased capacity utilization in Türkiye and operational efficiency initiatives across all plants
- + Reduced financing expenses as a result of decrease in net debt in comparison to YE 2024 and the decline in TRY-denominated financial debt within the total indebtedness
- Effect of the real appreciation of the TRY on production costs and operating expenses


## **BUSINESS LINES MITIGATING THE EFFECTS OF GLOBAL VOLATILITY**

# INFRASTRUCTURE & PROJECT


- Positive impact of deliveries of the Blackcomb Project in 9M25
- Base effect of the high-volume deliveries completed in 9M24


- + The continuation of the increasing contribution of the newly commissioned SRM factory in the U.S.
- Rising labor costs in Türkiye and stagnancy in export markets



- Rising labor costs in Türkiye



# **REVENUE GENERATED FROM GLOBAL MARKETS MAINTAINS ITS STRONG MOMENTUM**

**REGIONAL BREAKDOWN 9M25 (%)**


## **EXPORT REVENUES FROM TÜRKİYE (\$ mln)**


**As of 9M25, international markets accounted for 84% of total revenue. (9M24: 81%)**


# **GEMLİK CAMPUS IS TO BECOME A STRATEGIC HUB, INTEGRATING ALL OPERATIONS IN TÜRKİYE**


| | EXPECTED<br>FINANCIAL IMPACT |
|-----------------------------------------|------------------------------|
| Decrease in Working Capital Requirement | \$30 mln |
| Investment | \$29 mln |
| One-Off Expense | \$27 mln |
| EBITDA* | 50 –<br>100 pps |

➢ **Need for alignment with changing macroeconomic and sectoral trends:**

- Excess capacity in the global steel industry
- Weak short-term demand and declining price trend
- Intensifying price-driven competition in Türkiye

#### ➢ **Single-location production strategy:**

- Use of idle capacity
- Optimization of production costs
- Reduction in climate and environmental impact of production across three different locations

#### ➢ **Investment process:**

- **Location:** Machinery and equipment from the Istanbul Halkalı and Bursa Advanced Processing Centers will be relocated to the Bursa Gemlik Campus.
- **Production:** The investment will be completed gradually, without any disruption to production, within 24 months (by 2027).
- **Financing:** To be provided through internal resources and/or financing to be secured under favorable market conditions.

#### ➢ **The Gemlik Campus will be positioned as an integrated, highly efficient, and strategic production hub:**

- Strengthened coordination
- Accelerated decision-making processes
- Synergy in resource utilization
- Increased capacity utilization
- Focusing on high value-added products in production lines
- Reduced emission levels

# **SUMMARY INCOME STATEMENT (\$ MLN)**

| CONSOLIDATED<br>(\$<br>mln) | 9M25 | 9M24 | Change<br>(%) | 3Q25 | 3Q24 | Change<br>(%) | 2Q25 |
|-----------------------------|---------|---------|---------------|--------|--------|---------------|--------|
| Revenue | 1,317.2 | 1,339.2 | (1.6%) | 542.6 | 398.5 | 36.1% | 455.5 |
| Gross Profit | 117.3 | 103.0 | 13.8% | 53.3 | 16.3 | 227.2% | 47.3 |
| Gross Profit Margin (%) | 8.9% | 7.7% | 1.2 pps | 9.8% | 4.1% | 5.7 pps | 10.4% |
| Operational Expenses | (58.5) | (59.2) | (1.3%) | (19.0) | (20.9) | (9.0%) | (19.8) |
| OPEX Margin (%) | (4.4%) | (4.4%) | - | (3.5%) | (5.2%) | 1.7 pps | (4.3%) |
| Other | 8.7 | 21.8 | (60.1%) | 0.9 | 6.1 | (85.1%) | (0.4) |
| EBIT | 67.4 | 65.5 | 3.0% | 35.2 | 1.5 | n.m. | 27.1 |
| EBIT Margin (%) | 5.1% | 4.9% | 0.2 pps | 6.5% | 0.4% | 6.1 pps | 6.0% |
| Financial Expenses | (23.1) | (46.4) | (50.2%) | (8.1) | (13.9) | (41.3%) | (3.0) |
| Profit Before Tax | 44.3 | 19.1 | 132.1% | 27.1 | (12.3) | n.m. | 24.2 |
| PBT Margin (%) | 3.4% | 1.4% | 2.0 pps | 5.0% | (3.1%) | 8.1 pps | 5.3% |
| Net<br>Income | 38.0 | 10.5 | 261.2% | 23.0 | (9.8) | n.m. | 22.8 |
| Net Income Margin<br>(%) | 2.9% | 0.8% | 2.1 pps | 4.2% | (2.5%) | 6.7 pps | 5.0% |
| Amortization | 37.0 | 31.4 | 17.6% | 12.8 | 10.6 | 21.4% | 12.5 |
| Other | (3.0) | (1.0) | 216.8% | (0.2) | (1.8) | (90.7%) | (3.8) |
| EBITDA* | 101.4 | 96.0 | 5.6% | 47.9 | 10.3 | 364.9% | 35.8 |
| EBITDA<br>Margin (%) | 7.7% | 7.2% | 0.5 pps | 8.8% | 2.6% | 6.2 pps | 7.9% |

*^\* EBITDA is calculated including Net Operating Income, Income from Investment Activities and excluding Extraordinary Income (Expense).*

# **SUMMARY INCOME STATEMENT (TRY MLN)**

| CONSOLIDATED<br>(TRY mln)* | 9M25 | 9M24 | Change<br>(%) | 3Q25 | 3Q24 | Change<br>(%) | 2Q25 |
|----------------------------|-----------|-----------|---------------|----------|----------|---------------|----------|
| Revenue | 51,253.7 | 42,983.8 | 19.2% | 22,079.8 | 13,337.6 | 65.5% | 17,623.7 |
| Gross Profit | 4,602.0 | 3,286.0 | 40.0% | 2,170.2 | 545.4 | 297.9% | 1,830.4 |
| Gross Profit Margin (%) | 8.9% | 7.7% | 1.2 pps | 9.8% | 4.1% | 5.7 pps | 10.4% |
| Operational Expenses | (2,252.0) | (1,912.5) | 17.7% | (772.9) | (698.5) | 10.7% | (764.1) |
| OPEX Margin (%) | (4.4%) | (4.4%) | - | (3.5%) | (5.2%) | 1.7 pps | (4.3%) |
| Other | 317.4 | 693.5 | (54.2%) | 37.0 | 203.8 | (81.9%) | (16.5) |
| EBIT | 2,667.4 | 2,067.0 | 29.0% | 1,434.2 | 50.8 | n.m. | 1,049.8 |
| EBIT Margin (%) | 5.1% | 4.9% | 0.2 pps | 6.5% | 0.4% | 6.1 pps | 6.0% |
| Financial Expenses | (880.5) | (1,492.5) | (41.0%) | (331.3) | (463.7) | (28.6%) | (114.9) |
| Profit Before Tax | 1,786.9 | 574.5 | 211.1% | 1,102.9 | (412.9) | n.m. | 934.8 |
| PBT Margin (%) | 3.4% | 1.4% | 2.0 pps | 5.0% | (3.1%) | 8.1 pps | 5.3% |
| Net<br>Income | 1,534.1 | 311.4 | 392.7% | 936.2 | (328.2) | n.m. | 882.3 |
| Net Income Margin<br>(%) | 2.9% | 0.8% | 2.1 pps | 4.2% | (2.5%) | 6.7 pps | 5.0% |
| Amortization | 1,427.0 | 1,012.7 | 40.9% | 521.6 | 353.0 | 47.7% | 484.6 |
| Other | (117.5) | (31.0) | 278.9% | (6.3) | (59.2) | (89.3%) | (143.3) |
| EBITDA* | 3,976.9 | 3,048.7 | 30.4% | 1,949.5 | 344.7 | 465.6% | 1,391.1 |
| EBITDA<br>Margin (%) | 7.7% | 7.2% | 0.5 pps | 8.8% | 2.6% | 6.2 pps | 7.9% |

^\* EBITDA is calculated including Net Operating Income, Income from Investment Activities and excluding Extraordinary Income (Expense) and EBITDA margin is derived from the USD-based income statement.


# **SUMMARY BALANCE SHEET AND FX POSITION**

| (\$ mln) | 3Q25 | 2Q25 | 2024 | 3Q24 |
|----------------------------------------------------------------------------------------|-----------------------|------------------------|------------------------|-----------------------|
| Cash and Cash Equivalents<br>Trade Receivables<br>Inventories<br>Inventory Prepayments | 84<br>213<br>490<br>1 | 126<br>238<br>551<br>1 | 67<br>149<br>353<br>36 | 63<br>170<br>443<br>3 |
| Current Assets | 888 | 1,012 | 698 | 807 |
| Non-Current Assets | 890 | 881 | 874 | 868 |

| TOTAL ASSETS | 1,778 | 1,893 | 1,571 | 1,676 |
|------------------------------|-------|-------|-------|-------|
| | | | | |
| Short Term Borrowings | 246 | 243 | 260 | 344 |
| Trades Payables | 271 | 302 | 159 | 117 |
| Advances Received | 150 | 241 | 56 | 94 |
| | | | | |
| Short<br>Term<br>Liabilities | 731 | 845 | 539 | 616 |
| | | | | |
| Long Term Borrowings | 81 | 106 | 87 | 98 |
| | | | | |
| Long<br>Term<br>Liabilities | 156 | 182 | 179 | 184 |
| | | | | |
| Paid<br>in Capital | 69 | 69 | 69 | 69 |
| | | | | |
| Equity | 891 | 867 | 853 | 876 |
| | | | | |

**TOTAL LIABILITIES 1,778 1,893 1,571 1,676**

#### **BALANCE SHEET NET FINANCIAL DEBT\*/EBITDA**



| (\$ mln) | 3Q25 | 2Q25 | 2024 | 3Q24 |
|------------------------------------------------|------------|------------|------------|------------|
| Net<br>Working Capital**<br>Net Financial Debt | 284<br>243 | 247<br>223 | 324<br>281 | 405<br>379 |

¹² *\* Net Financial Debt/EBITDA ratios are calculated using EBITDA for the last twelve months.*



# **9M25 CASH FLOW**

## **101 18 -1 -55 2 FREE CASH FLOW CHANGE IN CASH** *(\$ mln) (\$ mln)* EBITDA Change in Net Working Capital Tax and Other Cash Outflow from Investing Activities Dividend Free Cash Flow **65**



# **OPERATIONS AND FINANCIAL DISCIPLINE**

#### ➢ **Issue:**

• Challenging conditions and weak demand in the markets where we operate

#### ➢ **Impact:**

• Profitability and cash flow pressured by declining revenues

#### ➢ **Focus Area:**

- Continuing cost containment measures
- Managing working capital effectively
- Reducing leverage
- Prioritizing high capacity utilization and profitability in the Turkish market
- Restructuring the production infrastructure of Turkish operations

# **TARIFF MEASURES PLANNED IN THE U.S. MARKET**

#### ➢ **Issue:**

• Ongoing negotiations regarding the trade tariffs intended to be implemented by the U.S.

#### ➢ **Impact:**

• A potential restriction on imports could lead to higher prices and improved short-term profitability in the domestic market. However, the subsequent market reaction will be a key determinant of overall profitability.

#### ➢ **Focus Area:**

- Closely monitoring how the tariffs will be implemented
- Achieving optimal capacity utilization to maximize profitability

# **SUSTAINABILITY COMPLIANCE EFFORTS**

#### ➢ **Issue:**

• Deadline for the transitional phase of the Carbon Border Adjustment Mechanism (CBAM): January 1, 2026, marking the start of the EU's enforcement of carbon regulations on import processes.

#### ➢ **Impact:**

• Potential financial liabilities that may arise if raw material emission levels remain high, if the EU deems decarbonization measures insufficient, or if equivalence is not achieved between international agreements and Emissions Trading Systems or carbon pricing mechanisms

#### ➢ **Focus Area:**

• Accelerating ongoing compliance efforts

# **2025 GUIDANCE**

| | 2020 | 2021 | 2022 | 2023 | 2024 | 9M25 | 2025<br>Initial Guidance | 2025<br>Revised<br>Guidance |
|----------------------------|------|------|-------|-------|------|------|--------------------------|-----------------------------|
| Sales Volume (mln<br>tons) | 0.63 | 0.76 | 0.85 | 1.06 | 1.17 | 0,97 | 1,05 –<br>1,20 | 1,20 –<br>1,35 |
| | | | | | | | | |
| Revenue (\$ billion) | 0.5 | 0.8 | 1.3 | 1.7 | 1.7 | 1,3 | 1,6 –<br>1,8 | 1,7 –<br>1,9 |
| | | | | | | | | |
| EBITDA Margin (%) | 9.9% | 9.8% | 14.9% | 18.2% | 6.0% | 7,7% | 5% -<br>7% | 6% -<br>8% |

- Similar to the 2Q25; in 3Q25, financial results were in line with expectations, supported by improved profitability driven by the positive pricing environment particularly in the U.S. market - and operational efficiency initiatives implemented across all plants.
- The positive trend is expected to continue in the fourth quarter of 2025, albeit to a more limited extent.
- In 4Q25, the favorable pricing environment observed in OCTG products in the U.S. market is expected to normalize. In the U.S., the potential impact of possible changes in tariffs applied to steel product imports on operational profitability will be closely monitored. In Turkish operations, cost increases driven by inflation and exchange rate fluctuations are expected to continue to adversely affect the overall competitiveness of the sector in the coming period.
- At this stage, a limited upward revision has been made to the year-end 2025 expectations.
- In line with its outlook for the remainder of the year, Borusan Pipe expects to achieve a sales volume of between 1.20 and 1.35 million tons, revenue in the range of \$1.7 - \$1.9 billion, and an EBITDA margin between 6% and 8% in 2025.
- Under normal circumstances, guidance is disclosed four times a year, in conjunction with quarterly financial disclosures.

# **OUR TARGET: POSITIONING BBB FOR THE FUTURE GROWING STAKEHOLDER VALUE**

- **Quality and leading** brand perception
- **Strong customer satisfaction** thanks to customer and solution focused approach at the maximum
- **Qualified human resources** with agility to take prompt action and vision to turn crises into advantage
- **Preferred manufacturer by suppliers** due to value-added products, continuous growth and reliable partner approach
- **Wide product portfolio** continuously supported by new investments
- **Ranked 1. in Europe** in cold drawn pipes and **leading manufacturer in the USA** in welded steel pipe market
- **Balanced portfolio approach** with presence in geographies and segments having different dynamics

## **COMPETITIVE ADVANTAGES FOCUS FOR TRANSFORMATION STRATEGIC ACTIONS**

- ESG oriented **cultural transformation**
- **Compliance studies on CBAM** (Carbon Border Adjustment)
- **Digital transformation** initiated with the SAP project
- Ongoing efforts to **maximize capacity utilization** and **optimize production costs**
- **Generating value add with smart pipes,** enabling customer and product communication
- **Targeting new markets** with hydrogen, carbon capture and energy storage products
- **Profitability oriented sustainable growth** in business lines and geographic regions

- **Strategic investment decision in Türkiye's production infrastructure** for sustainable and profitable growth
- Infrastructure and Project: **Growth in Northern America Market and new commercial partnerships** through Berg Pipe in the USA
- Industrial and Construction: Increasing the weight of new products in the portfolio through **SRM investment in the USA**
- Automotive: Penetration in Tier 1 Tier 2 customer segments in Europe with the **Service Center investment in Romania**
- Energy: **Diversification in product portfolio**
- Continuous evaluation of **acquisition and mergers** options


# **OUR ENVIRONMENT, SOCIAL, GOVERNANCE (ESG) ORIENTED ACTIONS**

- Occupational Health and Safety
- Social Contribution
- Effective People Management
- Waste Management
- Circular Economy
- Combating Climate Crisis
- Transition to Zero Carbon Economy
- Sustainability in Supply Chain
- Effective Risk ve Crisis Management
- Excellence in Customet Relations
- Adopting Innovative Business Models
- New Product and Innovation
- Digital Transformation
- Artificial Intelligence
- Operational efficiency

## **PRIORITIES RELATED KPI'S RELATED SDG**

- Decrease in Frequency and Weight of Accident
- Female Employee Rate
- Employee Loyalty
- Talent Retention Rate
- Reduction of Scope 1 and 2 Emission
- Reduction of Waste
- Reduction of Water Consumption
- Increase of Recycled Water
- Compliance with Corporate Governance Principles
- All Sustainability KPI's
- Green Purchase at Supply Chain
- Revenue Generated from Innovative Business Models
- Implementation of Circular Business Model (Product or Service)













**CLIMATE**

**GOVERNANCE**

**INNOVATION**