KALESERAMİK ÇANAKKALE KALEBODUR SERAMİK SANAYİ A.Ş.

Investor Presentation • Dec 3, 2025

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Turkish Ceramics Industry

• Although the ceramic industry consists of 6 main product groups, 80% of the sector consists of ceramic coating (tile) materials and ceramic sanitary ware in terms of production value.
• Turkiye is the largest producer in Europe and the 4 th largest producer in the world in the ceramic sanitary ware sector, whereas it is the 2 nd largest producer in Europe and the 9th largest producer in the world in the ceramic coating sector.
• The ceramic tile industry is the 6th largest exporter in the world with a share of 5%, and the ceramic sanitary ware sector is the 4 th largest exporter in the world with a share of 4%.
• The top 5 export markets are Germany, USA, France, UK, and Italy.

2 Bu mesaj/doküman HİZMETE ÖZEL (CONFIDENTIAL) etiketi ile sınıflandırılmıştır.

• In the ceramics industry, the export-domestic value-added ratio in all sub-categories is over 80%.
• With 2020 data, the sector provides 50,000 direct and around 300,000 indirect employment.

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Turkish Ceramic Tile Industry

• The installed capacity in the ceramic tile industry, where around 50 manufacturers operate, has reached approximately 700 million m².
• Due to the capacity utilization rate, which is estimated to be around 50%, price-based competition in domestic and export markets has increased, leading to a decrease in the added value created in the sector.
• The issues that affect the profitability in the sector the most are energy prices, imported inputs and recently labor costs.
• The ceramic industry, where energy is consumed intensively, is especially sensitive to natural gas prices. Energy expense in ceramic production corresponds to ~25-30% of the cost.
• In addition to price and exchange rate fluctuations in natural gas markets, the recent increase in labor costs in USD has created difficulties in competing with other major ceramic producers such as India, Iran, China and Brazil in the international market.

3 Bu mesaj/doküman HİZMETE ÖZEL (CONFIDENTIAL) etiketi ile sınıflandırılmıştır.

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Turkish Market: Construction Sector

• Housing sales in Turkiye seem to have settled in the band of 1.5 million units since 2020 excluding 2023.
• However, it is predicted that with the wealth effect, housing sales for investment purpose have come to the fore in the recent increase.
• The share of both new homes and mortgage homes in total sales fell to their lowest level in the last decade.
• Although the number of houses completed and given occupancy permits has increased recently, it is still below the average of the last 10 years.

(2014-18: 804 K vs. 2019-24: 639 K)

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Turkish Market: Construction Sector

• The construction sector, supported by reconstruction activities, urban transformation, and other construction activities in the earthquake zone, grew by 9.8% in the first half of 2025. The sector also grew by 13.9% in the third quarter of the year.
• Although there was a 4.5% increase in cement sales in the domestic market in the January-July 2025 period, it is seen that this increase was mainly due to the earthquake zone.
• Although sectoral indices (confidence index, last 3 months activities, current order books) have improved compared to the lowest levels in the 2019-2020 period (pandemic process), they remain below their levels in the 2010-15 period.

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Export Markets: Construction Materials Industry

• During the pandemic period, while countries such as China, India, Italy and Spain, pioneers in ceramic production, suspended production, Turkiye continued its production and came to the fore in world market.
• With the increase in demand in the domestic market in the inflationary environment, capacity increase was realized with a very large investment in the sector. Turkiye has increased its capacity from 350 to 700 million m² with additional investments.
• 6 Bu mesaj/doküman HİZMETE ÖZEL (CONFIDENTIAL) etiketi ile sınıflandırılmıştır. - The re-emergence of India and Iran after the pandemic, and the EU's imposition of anti-dumping duties on Turkish ceramic manufacturers since mid-2023 have weakened Turkiye's competitiveness.

Source: IMSAD

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Export Markets: Construction Materials Industry

• In export markets, where the recession continues, there have been fluctuations in commodity and metal prices in recent months due to uncertainties regarding customs tariffs.
• According to the data for 2025 H1, which has been announced by IMSAD so far, our country's construction material exports increased by 6.9% compared to the same period of the previous year.
• Exports of ceramic tile materials, which is the main product group of our company, decreased by 0.9% and exports of ceramic sanitary ware were down by 9.2%.

7 Bu mesaj/doküman HİZMETE ÖZEL (CONFIDENTIAL) etiketi ile sınıflandırılmıştır.

(USD ) mio Exports	Jan-June 2025	Jan-June 2024	Change
Materials Construction	835 14 ,	13 878 ,	6 9%
Seramic Coating -	332	335	0 9% -
Seramik Sanitary ware -	120	132	2% 9 -

Source: IMSAD

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Strategic Transformation Moves

❑ Post-IPO Strategic Investments and Restructuring

❑ Improving Operational Profitability Margins

❑ Optimization of Working Capital Needs

❑ Correct Debt Management in a High-Interest Rate Environment

8 Bu mesaj/doküman HİZMETE ÖZEL (CONFIDENTIAL) etiketi ile sınıflandırılmıştır.

❑ R&D and Digital Investments for Sustainability

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Post-IPO Strategic Investments and Restructuring

LARGE SIZE High Profitable Growth (1,6 mln. m² 4,6 mln. m² )

• 160x320 cm. 6-12-20 mm. Slab Investment / 1 mln. m² - July '23
• 120x280 cm. 6-12 mm (Supera), same line 120x280 cm. and 60x120 cm. production flexibility / 1,2 mln. m² - Mar.'25
• 100x300 cm. / 120x360 cm. modernization and capacity increase – Line 1 / 0,8->1,2 mln. m² - June'25
• 100x300 cm. / 120x360 cm. modernization and capacity increase – Line 2 / 0,8->1,2 mln. m² - Ongoing

GRANITE

Transformation

(Price/capacity/cost) (12,6 mln.m² 19,6 mln.m² )

• KB3 Production Line transformation for 60x120 cm. production - Nov.'24
• Yerköy Production Line 2 transformation for 60x120 cm. production - Jan.'25
• KS5 Line 60x120 cm. floor/wall flexibility transformation with size transition - Ongoing
• KS6 Line extension Ongoing
• KS7 Line modernisation Ongoing

9 Bu mesaj/doküman HİZMETE ÖZEL (CONFIDENTIAL) etiketi ile sınıflandırılmıştır.

IRAQ

Localization & Capacity Increase

(0 2,5 mln.m²10 mln.m² )

• Local production partnership with 2,5 mln. m² capacity - Aug.'23
• Southern Iraq branch establishment - Sept.'25
• Sales and marketing activities of TR and Iraq origin products through the branch-2026
• Capacity increase up to 10 mln. m² - Planned 9

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Post-IPO Strategic Investments and Restructuring

GRANITE Transformation (Price/capacity/cost) (12,6 mln.m²→19,6 mln.m²)

TARGET*

10

Gross Margin

* Non IAS-29 applied data

*Kale Seramik

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Post-IPO Strategic Investments and Restructuring

• Thanks to the investments made, the conversion from floor tiles and wall tiles to granite was realized in the 2024-2025 period, and Slab-Sinterflex capacities were increased.
• In Iraq, one of the world's largest importers of ceramics, actions were taken to focus on production in Kirkuk with a capacity of 2,5 mln. m² capacity with Al Sadaf & Kale cooperation, and on sales and marketing activities with Southern Iraq branch.

28,9 mln. m²

40,8 mln. m²

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Reflection of Large Size & Granite Transition on Sales

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Improving Operational Profitability Margins

The inflationary effect of inventories and depreciation has a high negative impact on the margins of the ceramic industry.

Operational margins, which hit their lowest level in Q4 2024, have been on an improvement trend for three consecutive quarters thanks to the structural actions taken.

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Optimization of Working Capital Needs

INVENTORY MANAGEMENT

The finished product inventory, which increased to around 12 mln. m² in 2024 Q3, were reduced to 6-6.5 million m² in 2025 with the actions taken.

RECEIVABLES MANAGEMENT

The receivables collection period, which was reduced to 92 days as of 2025, has been maintained since the beginning of the year.

PAYABLES MANAGEMENT

• Actionable actions have been taken in supplier payment terms and the 2-day improvement has been maintained since the beginning of the year. (There is no possibility of maturity improvement for labor and natural gas, which corresponds to 45% of the cost)

^* Last 12 months

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Correct Debt Management in a High-Interest Rate Environment

• The improvement of operational margins, the optimization of working capital and the end of the intensive investment period reduce the company's need for new financial resources.
• In 2026, maintenance and cost-cutting investments are expected to be around USD 12-13 million.
• In addition to the reduced resource needs, the expected reductions in interest costs in the upcoming period are expected to have a positive impact on the company's financing burden.

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R&D and Digital Investments for Sustainability

PROCESS R&D

• We continue our work with a focus on cost improvement with process R&D studies in all our production processes.

INNOVATIVE R&D

• Studies continue for new ideas developed as a result of the research and development activities of our R&D Center. These investments are the first investments to be operational in the sector and are innovative projects that will disrupt the ceramic production process.

DIGITAL TRANSFORMATION INVESTMENTS

• Traceability with IoT in production, together with data analytics applications, are digitalization investments that will improve the digital experience of the customer.

SUSTAINABILITY INVESTMENTS

• Including a possible solar power plant investment, we prioritize resource utilization efficiency investments in all our investment items.

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Our Expectations for 2025 Year-End

& 2026 Guidance

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2025 Year-End and 2026 Expectations (IAS-29 not applied)

Year-end 2025 Forecast

2026 Guidance

❑ Net Sales :

❑ EBITDA :

❑ CAPEX :

❑ Working Cap. / Net Sales :

USD 280-290 million

Around USD 20 million

USD 35 million

30%-35%

USD 310-330 million

Around USD 30-35 million

USD 12-13 milion

30%-35%

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Disclaimer

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.

This presentation contains "forward-looking statements." These statements include such terms as "anticipate," "will," "believe," "intend," "guess," "expect," and similar. Except for historical information, all related statements, including but not limited to the Company's financial position, prospects, growth, business strategy, plans, and management's objectives for future operations, are forward-looking statements. These statements include known and unknown risks and other important factors, including but not limited to risks or uncertainties that could cause the Company's actual results, performance, or achievements to differ significantly from the results, performance, or achievements stated or implied in this forward-looking statements. These statements are based on numerous assumptions regarding the Company's current and prospective business strategies and the business environment in which the Company will operate in the future. These forward-looking statements are to be taken into consideration only as of the date of this presentation. The Company warns the recipients of this presentation that the forward-looking statements do not constitute a commitment to the future performance of the Company and that the Company's actual financial position, expectations, growth, business strategy, plans, and management's objectives regarding future operations may differ materially from those stated and disclosed in the forward-looking statements in this presentation. In addition, even if the Company's financial position, prospects, growth, business strategy, plans, and management's objectives for future operations are consistent with the forward-looking statements in the presentation, these results and developments do not constitute an indicator of the results or developments to be achieved in any future period.

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Thank You