KALESERAMİK ÇANAKKALE KALEBODUR SERAMİK SANAYİ A.Ş.

Regulatory Filings • Apr 26, 2024

RATING NOTIFICATION

Rating Agency Rated Company Address Phone & Fax No Date	: :JCR AVRASYA DERECELENDİRME A.Ş. : :KALESERAMİK ÇANAKKALE KALEBODUR SERAMİK SANAYİ A.Ş. : Maslak Mahallesi Taşyoncası Sokak No:1/F F2 Blok Kat:2 34485 Sarıyer, :: İstanbul- Türkiye : :0212 352 56 73 – 0212 352 56 75 : :25/04/2024
Subject	: :Article 26 of the CMB Serial VIII, No. 51 Communiqué on Principles

Capital Markets Board of Türkiye (SPK)- To the Accounting Standards Department Central Securities Depository of the Turkish Capital Markets (MKK)– Public Disclosure Platform

JCR Eurasia Rating has evaluated "Kaleseramik Çanakkale Kalebodur Seramik Sanayi Anonim Şirketi".

• Favorable gross and net profit margins in FY2022
• Cash surplus position as of September 2023 thanks to the IPO proceeds
• Consistent FFO and net working capital generation
• Effective foreign exchange risk management through utilization of derivative instruments
• Collateral policy leading to asset quality
• Leading domestic position in the ceramic tiles industry, and broad sectoral experience
• High compatibility with the corporate governance practices as a publicly traded company
• Noteworthy focus on R&D and sustainability

• Operational synergy with Kale Group

• Slowdown in sales growth and contraction in profitability in 9M2023, driven by the intense competition environment as a result of the sector's weak export performance

• Anti-dumping measures by the EU against Turkish and Indian manufacturers
• Leading economic indicators signal global economic slowdown whereas quantitative tightening actions aim to restrict consumption growth and achieve a soft-landing in the domestic side

The Long-Term National Issuer Credit Rating of "Kaleseramik Çanakkale Kalebodur Seramik Sanayi Anonim Şirketi" has been affirmed at 'AA (tr)' and its outlook has been revised from 'Stable' to 'Positive' considering the above-mentioned issues. All notes of the Company are determined as follows.

Long-Term National Issuer Credit Rating		AA (tr) / (Positive Outlook)
Short-Term National Issuer Credit Rating		J1+ (tr) / (Stable Outlook)
Long-Term International Foreign Currency Issuer Credit Rating		BB / (Negative Outlook)
Long-Term International Local Currency Issuer Credit Rating		BB / (Negative Outlook)
Long-Term National Issuer Specific Rating		-
Short-Term National Issuer Specific Rating		-

Note: JCR AVRASYA DERECELENDİRME A.Ş. ratings are objective and independent opinions regarding the creditworthiness of a security and/or issuer and should not be considered as a recommendation to buy, hold, sell, or lend any security. Unless otherwise stated, rating reports are valid for 1 year from the publication date. The validity date of interim reviews cannot exceed the validity date of the original report.

Regards, JCR AVRASYA DERECELENDİRME A.Ş.

Şevket GÜLEÇ Executive Vice President Prof. Dr. Feyzullah YETGİN General Manager

Copyright © 2007 by JCR Eurasia Rating. Maslak Mahallesi Taşyoncası Sokak No: 1 / F F2 Block Floor: 2 34485 Sarıyer / Istanbul / Türkiye Telephone: +90 (212) 352.56.73 Fax: +90 (212) 352.56.75 Unauthorized duplication is prohibited. All rights reserved. All information has been obtained from sources JCR Eurasia Rating believes to be reliable and from information/disclosures provided by the Company. However, JCR Eurasia Rating does not guarantee the accuracy or adequacy of this information. JCR Eurasia Rating's ratings are objective and independent opinions regarding the creditworthiness of a security and its issuer and should not be considered an investment recommendation for the purchase, holding or sale of any security or issue of bonds. This rating report has been prepared within the framework of methodologies and internationally accepted rating principles and guidelines registered and approved by the CMB (Capital Markets Board), BRSA (Banking Regulation and Supervision Agency), and is not within the scope of NRSRO (Nationally Recognized Statistical Rating Agency) regulations. http://www.jcrer.com.tr