4Q23 EARNINGS ÜLKER BİSKÜVİ

Quarterly Update

35% market share with continued share improvements
Significant brand investment

Robust top-line growth
Successful cost management
Strong free cash flow generation
Record bottom line performance
Strong volume growth across all regions particularly in Domestic and Central Asia Markets

Beyond Hazelnut project
Beyond Cocoa journey
Success in global indexes

Operational Performance

It is a Cultural Transformation towards «End-to-End» Excellence

Eliminate silos and barriers Transform to «One-Team with Winning Culture»

Transformation to Lean & Agile Teams focusing to End-to-End Excellence

Deployment of Winning Culture. Layers & Spans optimizations. Remove silos in organization. Implement High-Performance-Work System and Culture
Coaching in factories. Operator trainings, Focus on OEE, Material Balance and Loss eliminations.
Standard Procedures. Roll-out best practices.Implement Reward & Recognition system. «Akıl küpü» Kaizen system.

Lean transformation. Consolidate our sales operations. Establish learning organizations. R&D Academy, Mnf Academy, SC Academy, etc..
Optimization and Synergy projects among manifacturing units. Focus on digitalization,MCC and productivity leading edge projects.

Initiate projects with Suppliers, focus on supplier capability developments.

Fully leverage digital platforms and Technologies. Ensure SC visibility end to end via digital solutions. Explore loT and future of manufacturing techniques.
Implement AI particularly into our supply chain and sales functions

A more agile and simplified organization has been set up with the new structure.

Too many organizational layers eliminated in order to increase productivity, a lean organizational structure formed within the scope of Leadership Success Model, manifesto of our entrepreneur spirit.

Our strategy is to become a cost leader in Leadership Success Model.

65%

Revenue contribution is calculated over snacking revenue

Sustainability Update

OUR PLANET

MAIN GOALS:

Implementing pioneering practices in the transition to net zero and circular production models, guided by our waste-free corporate culture

VALUE CHAIN

MAIN GOALS:

Focusing on local agriculture, local development and farmers' prosperity and promoting regenerative and sustainable agricultural practices.

COMMUNITY

MAIN GOALS:

Supporting the basic habits necessary for an active and balanced lifestyle

EMPLOYEES

MAIN GOALS:

Cultivating a work culture that promotes happiness, productivity, diversity and inclusion, and becoming the most sought-after company to work for.

For more info on our targets, achievements, sustainability efforts in our factories, click on the link: https://www.ulker.com.tr

As part of our Beyond Hazelnut project;

we provided sustainable farming practices training to 75 farmers, including 25 women
Distributed young hazelnut saplings to interested farmers
Soil analyses were conducted for female farmers.

OUR SUSTAINABLE WHEAT PROJECTS

Water Risks Project
- partners: BCSD Türkiye and Ankara University.
- drip irrigation was first experimented in wheat cultivation in Türkiye
- 20% increase in yield while 30% water efficiency.
Biofortification project
- collaboration w/ Sabancı University
- aimed to increase the levels of essential micronutrients Zinc (Zn) and Selenium (Se) in wheat.
- 50% increase in Zn content and a 10-15 times increase in Se content were achieved
The Aliaga Wheat Project has won Sustainable Food Awards held by the Sustainability Academy in "Sustainable Food Supply Chain" category!

15th Stars of the Year Beyond Cocoa - Happiness: CORPORATE SOCIAL RESPONSIBILITY CATEGORY WINNER!

OUR SUCCESS IN GLOBAL INDEXES

We are ranked 4 th in Turkiye with on S&P Global ESG index. We are in the top 4% globally
We have been listed in the S&P Global Sustainability Yearbook for the 4th time, maintaining our position as one of the 19 food companies listed worldwide and the only food company from Turkey to be included in this list.
In 2023 Carbon Disclosure Project (CDP) assessment, we increased our water security score to B and remained B rank on climate change.
We ranked 1 st position globally (89 points) among over 450 food companies globally with the highest ESG performance according to the assessment conducted by the London Stock Exchange Group (LSEG).

Beyond Cocoa Journey

COLLABORATIONS

No Deforestation Verification w/ Earthworm Foundation, enabled us to verify there has been no deforestation in the cooperatives from which we source cocoa since 2016.
Agroforestry projects with Agro-map

COMMUNITY WELL-BEING PROJECTS

school renovation in Ivory Coast
mobile health services for women.

OUR CARBON MANAGEMENT STRATEGY

We have an SBTi commitment to become a net zero company by 2050.

We have partnered with Carbon Trust to calculate our carbon emissions (including scope 1,2 &3) for Turkiye, MENA and Central Asia.

Financial Performance

Pre-Inflation accounting numbers

Total Revenue (Mtl)		Gross Profit (Mtl)		EBITDA (Mtl)		Net Income (Mtl)
28.197	46.861	29,8% 8.409	34,1% 15.970	19,4% 5.467	22,3% 10.469	-353	2.570
FY'22	FY'23	FY'22	FY'23	FY'22	FY'23	FY'22	FY'23

Snacking revenue was up by 66,4% and total revenue increased by 66,2% as a result of;
- Successful pricing and effective product mix management in all categories
- Positive contribution of higher sales volume
Gross profit expanded by 89,9% in 2023 while gross margin grew by 430 bps to 34,1%; cycling a very strong expansion last year
Main drivers;
- Effective procurement
- Timely pricing
- Stable overheads
- Increased production efficiencies
Thanks to the impact of gross profitability and successfull opex management EBITDA expanded by 91,5% while margin grew by 300 bps to 22,3% in FY'23
Net income improved to 2.5 bn TL with a 5.5% net margin.
Improvement in net income was primarily driven by higher EBITDA and favorable FX impact

-Total snacking sales volume increased by 1.4% in 2023 supported with strong sales and new launches

• Biscuit volume increased by 1,0% ,Chocolate volume grew by 1,1% and Cake volume was up by 5,6

-Total snacking revenue increased by 66,4% supported with strong volume and revenue growth across all operations in all segments

• Biscuit sales was up by 59,4% , Chocolate sales was up by 71,7% and Cake sales was increased by 74,5%

INTERNATIONAL

Pre-Inflation accounting numbers

Average Working Capital Days & Net Working Capital Highlights

(*)Covenant Based Net Debt/Ebitda (X) Maturity Breakdown of Financial Liabilities as of December'23

~69% of the net position is closed. Further hedges are Subject to the approval of Hedge Committee per market conditions.
As of December 2023, M\$332 of the open position is hedged
Eurobond refinancing in progress

(*) covenant based net debt/EBITDA ratio is calculated through definition stated in syndication facility agreement based on IAS-29 adjusted financials

Pre-Inflation accounting numbers except covenant based Net Debt to EBITDA