KALESERAMİK ÇANAKKALE KALEBODUR SERAMİK SANAYİ A.Ş.

Investor Presentation • May 28, 2024

Sectoral Evaluations & New Investment in Iraq

May 28, 2024

Legal Reminder

Sınıflandırma: GENEL (PUBLIC)

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With the Capital Markets Board of Turkey's Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions.

Accordingly, this presentation on 2023 year-end financial results contain the Company's audited financial information prepared according to Turkish Accounting / Financial Reporting Standards by application of IAS 29 inflation accounting provisions, in accordance with CMB's decision dated 28.12.2023.

In addition to these, given that the guidance information and the 2023 interim financial results announced so far were presented without the application of inflation accounting, in order to enable investors and analysts to conduct a full-fledged analysis, supplementary historical information for selected key performance indicators used in prior periods' investor presentations were provided. Such supplementary information is made available only for this period, and contains unaudited financial information prepared for management reporting purposes.

2023 Highlights

Sınıflandırma: GENEL (PUBLIC)

• Around EUR 34 mio. investment in new slabsinterflex production line
• Acquisition of 49% of shares of Al Sadaf, a ceramics manufacturer in Iraq
• Impact of high interest rates and tight monetary policy on demand both in Turkiye and in Europe, which is the main export market.
• Very low net debt/EBITDA ratio, despite weak operational profitability
• An IPO of TL 2,7 billion
• Application of inflation accounting
• Publication of the first Sustainability Report

Turkish Market: Construction Industry

Source: Turkstat, Association of Turkish Construction Material Producers (IMSAD)

Sınıflandırma: GENEL (PUBLIC)

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• The construction sector grew by 7.8% in 2023 for the first time in 5 years.
• Construction activities in the earthquake zone, urban transformation and infrastructure activities that accelerated before the local elections were the factors that supported the sector.
• With the 24% contraction in the last quarter, the decline in housing sales in the whole of 2023 reached 17.5%.
• Due to increasing housing interest rates, the share of mortgage sales in total was 5% in the last quarter.
• While the share of second-hand house sales was around 70% at the start of the year, it decreased to 63% at the end.

Turkish Market: Construction Industry

Source: Turkstat

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Sınıflandırma: GENEL (PUBLIC)

Number of Damaged Buildings in 11 Provinces hit with earthquake	Number of Buildings	Independent units
No damage	860.006	2.387.163
Slightly damaged	431.421	1.615.817
Moderately damaged	40.228	166.132
Heavily damaged	179.786	494.588
Ruined	35.355	96.100
To be destroyed immediately	17.491	60.728
Not detected yet	147.895	296.508
TOTAL	1.712.182	5.117.036

Bu mesaj/doküman GENEL (PUBLIC) etiketi ile sınıflandırılmıştır. Source: TR Presidency of Strategy and Budget Department, Earthquake Report 2023 March

DETERMINANTS IN THE CONSTRUCTION INDUSTRY

- Strong organic demand for housing

(Increasing population, need for new households due to marriages/divorces, decreasing number of people per household

• Mobility in the markets before local elections
• Recent increase in building permits received
• Construction activities in the earthquake zone

(Construction of approx. 810 thousand independent units in the earthquake zone)

• Urban transformation activities
• (According to a 2020 report, the number of independent units that need to undergo urban transformation is 6.7 million.)
• Tightening steps in monetary policy (high interest rates, etc.)
• High construction costs & wage increases
• Limited qualified workforce in the sector
• Slowdown in public investments & tax regulations

Export Markets: Construction Materials Industry

Bu mesaj/doküman GENEL (PUBLIC) etiketi ile sınıflandırılmıştır.

• The contraction in the construction industry in Europe, which is our main export market as a country, continued to have a limiting effect on the country's exports.
• In 2023, construction materials exports decreased by 13.4% to USD 29.2 billion.
• In Turkiye's total exports, there was a 38% decline in the ceramic coating product group and an 8% decline in ceramic sanitary products.
• Kaleseramik increased its share in Turkiye's exports of ceramic coating materials.

Exports (USD mio.)	Jan.-Dec 2023	Jan.-Dec 2022	Change
Construction Materials	29.200	33.731	-%13,4
- Ceramic Coating	634	1.023	-38,0
- Ceramic Sanitary	312	339	-7,9

Source: Association of Turkish Construction Material Producers (IMSAD)

Source: Ceramic Coating Materials Manufacturers Association (SERKAP)

*Calculation based on SERKAP data of exports and company data.

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Sınıflandırma: GENEL (PUBLIC)

New Investment Abroad: Iraq

• Our company started production on May 19, 2024, in the factory of Al-Sadaf company, headquartered in Baghdad, Iraq, in the province of Kirkuk, in which it has a 49% participation in the capital.
• In the facility, which has an annual production capacity of 2.5 million m² of matte and glossy porcelain plates, in the first phase, porcelain tiles will be produced in 8 series with dimensions of 60x120 cm and 60x60 cm, which are needed by the Iraqi market.
• It is expected that local production in Iraq will initially contribute approx. USD 20 mio. annually to net sales.
• It is planned to increase the capacity to 7 million m² in the coming period in line with the needs of the market and to further enrich the product sizes and series.

Bu mesaj/doküman GENEL (PUBLIC) etiketi ile sınıflandırılmıştır.

Representative photos

Sınıflandırma: GENEL (PUBLIC)

Financial Statements

IAS-29 APPLIED

Sınıflandırma: GENEL (PUBLIC)

(TL million)		2023 12 M -	2022 12 M -	Y -on-Y Change
Sales Net		9 713 7 ,	12 258 4 ,	8% 20 - ,
Profit Gross		1 527 6 ,	2 586 0 ,	40 9% - ,
	Margin	15 7% ,	21 1% ,
Profit Operating		378 8 ,	1 236 7 ,	69 4% - ,
	Margin	3 9% ,	10 1% ,
Profit Before Financing		405 4 ,	1 372 6 ,	70 5% - ,
	Margin	4 2% ,	11 2% ,
Profit Before Tax		378 6 ,	1 363 8 ,	72 2% - ,
	Margin	3 9% ,	11 1% ,
Profit Net		295 3 ,	2 177 6 ,	86 4% - ,
	Margin	3 0% ,	17 8% ,
EBITDA		872 6 ,	1 693 9 ,	48 5% - ,
	Margin	9 0% ,	13 8% ,

P&L Summary*

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	31 12 2023	31 12 2022		31 12 2023	31 12 2022
(TL million)	31 12 2023	31 12 2022		31 12 2023	31 12 2022
Current Assets	7 074 5 ,	5 799 7 ,	Liabilities Current	3 643 6 ,	4 885 7 ,
Cash Cash Equivalents &	2 281 6 ,	383 1 ,	Short bank liabilities -term	0 1 777 ,	958 8 1 ,
Financial Investments	0 0 ,	160 2 ,	Liabilities Lease	15 2 ,	32 6 ,
Trade Receivables	1 717 7 ,	1 844 9 ,	Trade Payables	1 357 1 ,	1 903 0 ,
Inventories	2 738 7 ,	2 770 8 ,	Deferred Incomes	326 1 ,	733 0 ,
Prepaid Expenses	144 1 ,	156 8 ,	Provisions	26 4 ,	132 4 ,
Current Tax Assets	21 6 ,	197 7 ,	Others	141 7 ,	125 9 ,
Others	170 8 ,	286 2 ,	Liabilities Non-current	085 1 1 ,	804 1 ,
Non-current Assets	5 426 1 ,	4 618 8 ,	Bank Loans	570 5 ,	368 2 ,
Tangibles Assets	4 105 7 ,	3 414 1 ,	Provisions	264 2 ,	421 8 ,
Intangible Assets	278 8 ,	221 4 ,	Liabilities Lease	18 2 ,	14 0 ,
for Properties Investment Purpose	245 1 ,	206 0 ,	Payables Trade	36 2 ,	8 7 ,
Deferred Tax Assets	685 9 ,	636 4 ,	Total Equity	7 771 9 ,	4 728 7 ,
Others	110 6 ,	140 9 ,	Issued Capital Inflation adj &	6 095 0 ,	957 6 5 ,
TOTAL ASSETS	12 500 6 ,	10 418 5 ,	& TOTAL LIABILITIES EQUITY	12 500 6 ,	10 418 5 ,

Balance Sheet *

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Cash vs. Financial Liabilities

• Total value of cash, cash equivalents and financial investments* is TL 2,28 billion at year-end.
• The breakdown of short and long term financial liabilities of TL 2,38 billion is as follows:
  • ➢ TL 33,4 million due to short and long-term leasing
  • ➢ 75% short-term

Sınıflandırma: GENEL (PUBLIC)

• ➢ 31% FX-based*
• ➢ 56% fixed 44% floating (out of floating, 71% FX based)
• As stated in the prospectus, 20% of the net TL 2,64 billion fund provided from IPO was used to pay TL 528,3 million financial debt.
• The high cash level and very low net debt/EBITDA ratio provide opportunities for new growth opportunities.

Bu mesaj/doküman GENEL (PUBLIC) etiketi ile sınıflandırılmıştır.

* FX risk is completely eliminated through hedging transactions.

CAPEX

Sınıflandırma: GENEL (PUBLIC)

investments are planed for the sanitaryware plant in Semedeli. Up to the date of this report, TL 49.4 million was spent. (1.9%)

Bu mesaj/doküman GENEL (PUBLIC) etiketi ile sınıflandırılmıştır. recycling and sustainability projects. Up to the date of this report, TL 58,7 million was spent (2,2%)

sizes and thicknesses. Up to the date of this

report, TL 29 million was spent (1,1%).

Appendix

Sınıflandırma: GENEL (PUBLIC)

P&L Summary (IAS-29 not applied)

Sınıflandırma: GENEL (PUBLIC)

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(TL million)		2023 12 M -	2022 12 M -	Y -on-Y Change
Sales Net		7 419 5 ,	6 276 2 ,	18%
Profit Gross		1 873 0 ,	1 747 6 ,	7%
	Margin	2% 25 ,	8% 27 ,
Profit Operating		037 6 1 ,	108 2 1 ,	6% -
	Margin	14 0% ,	17 7% ,
Profit Before Tax		491 8 ,	805 1 ,	39% -
	Margin	6 6% ,	12 8% ,
Profit Net		1 133 5 ,	1 385 1 ,	18% -
	Margin	15 3% ,	22 1% ,
EBITDA		1 170 4 ,	1 194 8 ,	2% -
	Margin	15 8% ,	19 0% ,

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None of the information contained in this presentation contains investment advice, and any advice contained herein is not based on specific buyers' assessments of investment objectives, financial standing, or particular needs. This presentation does not constitute, in whole or in part, an offer to sell any of the Company's securities or an invitation for another offer or subscription or takeover, or incentive to make an investment. No part of this presentation and the fact that it has been distributed shall form the basis of any contract, commitment, or investment decision and cannot be considered in this regard. This presentation is solely the responsibility of the Company. This presentation is not intended to cover all information about the Company, nor has it been independently verified. The information and opinions given within the scope of this document are provided as of the date of presentation, and changes in the information and opinions contained in the presentation will not be subject to notification. The Company has not made, nor will it make any express or implied representations or commitments regarding the impartiality, sufficiency, accuracy and completeness of the information or opinions contained in this presentation (or whether the entry of any information into this presentation has been neglected), and no such assumptions are made.

The sector and competitive environment data contained in this presentation have been obtained from official or independent sources as far as possible. Independent industry publications, studies, and surveys generally state that the data contained in such sources are obtained from sources considered to be reliable, but that no commitment is made as to the accuracy or completeness of this information. While the Company believes that each publication, study, and survey has been prepared by reliable sources, it has not independently verified the accuracy of such information. In addition, the sector and competitive environment data in this presentation are based on the Company's internal surveys and estimations based on the Company management's knowledge and experience in the sectors in which the Company operates. While the Company believes that these surveys and estimates are appropriate and reliable, the accuracy and completeness of these surveys and estimates and the underlying methodologies and assumptions have not been verified by any independent source, and changes in them will not be subject to notification. Therefore, undue meaning should not be attributed to any data contained in this presentation.