KOCTASKOCTASMay 16th, 2012

Istanbul

I dIndex

▪ Macroeconomic Environment▪ Retail Market in Turkey▪ Business Highlights▪ Commercial Overview

E P l d S i tEconomy, People and Society

United Kingdom France Poland Turkey

Population - mn* 63,0 65,6 38,4 74,8Age St t eAge Structure

0-14 17,3% 18,5% 14,7% 26,6%15-64 66,2% 64,7% 71,6% 67,1%>65 16,5% 16,8% 13,7% 6,3%

Population Growth** 0,6% 0,5% -0,08% 1,2%Median age (years)** 40,0 39,9 38.5 28,5

GDP (purchasing power parity) - bn USD*** 2 250 2 214 765 6 1 026 0GDP (purchasing power parity) bn USD 2.250 2.214 765,6 1.026,0GDP (official exchange rate) - bn USD*** 2.481 2.808 531,8 763,1GDP - real growth rate*** 1,1% 1,7% 3,8% 8,5%GDP - per capita - USD*** 35.900 35.000 20.100 10.444Source: CIA – The World Factbook,

*July 2012 estimation; **2012 estimation; ***2011

With 75 million population and 8,5% growth in 2011, Turkey has the 16th largest economy in the world.

Europe’s Biggest EconomiesEurope s Biggest Economies(GDP based on Purchasing Power Parity, Trillion Dolar, 2010)

d

Austria

Switzerland

Greece

P l d

Netherlands

Belgium

Sweden

Italy

Spain

Turkey

Poland

Germany

UK

France

Italy

Source: IMF, World Economic Outlook, September 20110.0 0.5 1.0 1.5 2.0 2.5 3.0

Germany

Turkish economy is the 6th largest economy in Europe.

Sectoral Based GDP GrowthSectoral Based GDP Growth

GDP Growth (%)

Agriculture, hunting and

forestry Manufacturing Construction

Wholesale and retail

trade

Transport, storage and

communicationHome

ownership

Real estate, renting and

business act Other Total(%) forestry Manufacturing Construction trade communication ownership act. Other Total

Q1 3.8% 22.0% 9.0% 21.2% 12.7% 1.8% 12.8% 5.5% 12.6%Q2 2.8% 15.4% 21.7% 14.0% 10.4% 1.7% 10.5% 5.7% 10.4%Q3 0.9% 7.2% 23.7% 7.5% 6.0% 2.6% 2.2% 2.6% 5.3%Q4 4.5% 11.3% 18.7% 13.4% 13.8% 1.3% 4.5% 5.2% 9.3%

2010 growth 2 4% 13 6% 18 3% 13 6% 10 6% 1 8% 7 6% 4 7% 9 2%2010 growth 2.4% 13.6% 18.3% 13.6% 10.6% 1.8% 7.6% 4.7% 9.2%Q1 7.1% 14.9% 15.3% 17.3% 12.4% 2.0% 10.3% 8.3% 11.9%Q2 5.0% 9.1% 13.0% 14.2% 12.4% 1.8% 7.2% 6.3% 9.1%Q3 4.2% 9.2% 10.2% 11.5% 12.0% 1.3% 10.2% 7.8% 8.4%Q4 6.7% 5.2% 7.0% 3.9% 6.8% 2.5% 9.3% 3.9% 5.2%

2011 growth 5.2% 9.4% 11.2% 11.4% 10.8% 1.9% 9.3% 6.5% 8.5%

8.4%

6.9%

9.2% 8.5%

7%

9%

11% Real GDP Growth

g

4.7%

0.7%1%

3%

5%

%

-4.8%-5%

-3%

-1% 2005 2006 2007 2008 2009 2010 2011

Years

Despite the slowdown in the last quarter GDP growth was realized by 8 5% at the end of the year 2011Despite the slowdown in the last quarter, GDP growth was realized by 8.5% at the end of the year 2011.Wholesale & retail trade sector growth was 11.4% in 2011. The annual GDP growth expectation is between1.5-4% for year-end 2012.

GDP Growth RateGDP Growth Rate

7

8 GDP Growth Rate (Annual Average, %)

4

5

6

5.34.3 4.4

7.2

3.52

3

4

1.50

1

1982-1986 1987-1991 1992-1996 1997-2001 2002-2006 2007-2011

Source : TURKSTAT, Undersecretariat of Treasury

Annual average GDP growth of Turkey ise 3 5% between 2007 and 2011 mainly due to the globalAnnual average GDP growth of Turkey ise 3.5% between 2007 and 2011 mainly due to the globaleconomic crisis especially in 2008 and 2009

InflationInflation20% Inflation Rates

PPI CPI

CPI (YoY): 10.4%PPI (YoY): 8.2%

5%

10%

15%

‐5%

0%

07 07 07 07 07 08 08 08 08 08 08 09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12

Housing i t d

Mar‐0

May‐

Jul‐ 0

Sep‐0

Nov‐0

Jan‐

Mar‐0

May‐

Jul‐ 0

Sep‐0

Nov‐0

Jan‐

Mar‐0

May‐

Jul‐ 0

Sep‐0

Nov‐0

Jan‐

Mar‐

May‐

Jul‐

Sep‐

Nov‐

Jan‐

Mar‐

May‐

Jul‐

Sep‐

Nov‐

Jan‐

Mar‐

12%

14%

Sectoral Inflation Rates

maintenance and repair : 7.36%Furniture, household

i t d2%

4%

6%

8%

10%

equipment and house maintenance services : 11.76%

-4%

-2%

0%

Mar

-07

May

-07

Jul-0

7

Sep-

07

Nov-

07

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep-

08

Nov-

08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-

09

Nov-

09

Jan-

10

Mar

-10

May

-10

Jul-1

0

Sep-

10

Nov-

10

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep-

11

Nov-

11

Jan-

12

Mar

-12

Maintenanceand repair of dwelling

i hForeign Exchange Rates

EURO & USD vs. Turkish Lira

1 82.02.22.42.62.8

RL /

FX

1.01.21.41.61.8

-07

-08

-08

-08

-08

-08

-08

-09

-09

-09

-09

-09

-09

-10

-10

-10

-10

-10

-10

-11

-11

-11

-11

-11

-11

-12

-12

TR

Dec

-

Feb-

Apr-

Jun-

Aug-

Oct

-

Dec

-

Feb-

Apr-

Jun-

Aug-

Oct

-

Dec

-

Feb-

Apr-

Jun-

Aug-

Oct

-

Dec

-

Feb-

Apr-

Jun-

Aug-

Oct

-

Dec

-

Feb-

Apr-

TRL / EURO TRL / USD Linear (TRL / EURO) Linear (TRL / USD)

EURO apreciated by 8% and USD apreciated by 14% compared to April 2011

K GKoc Group

Overview: International Alliances:

The only Turkish company in “Fortune Global500” list, rising to 250nd palace in the 2010rankings.

The Group was named as `Most AdmiredCompany` in the world in the energy sector inFortune’s 2012 rankings.

Combined revenues corresponding to 9% ofCombined revenues corresponding to 9% ofTurkey’s GDP in 2011.

Consolidated revenues were TL75,740m in2011 with TL5,490m operating profit.

Exports corresponding to 11% of Turkey’s totalexports.

Operates in 23 countries in automotive,durable goods, food, retailing, energy, financialservices, tourism, construction and IT industries.

The Group employed 80,987 poeple, of which73,339 work in Turkey and 7,648 abroad.3,339 o u ey a d ,6 8 ab oad

I dIndex

▪ Macroeconomic Environment▪ Retail Market in Turkey▪ Business Highlights▪ Commercial Overview

P iti f R t il S t i T kPosition of Retail Sector in Turkey

Retail Sector is the 4th biggest sector after energy, education and health sectors in Turkey, estimated sector size is around 200 billion dollars and the share of organized retail sector is 40% in total.

According to the studies, as of 2010, there are 2 7 million employess working inthere are 2.7 million employess working in retail sector in Turkey.

The number of Shopping Malls in Turkey exceeded 298 at the end of the 2011 and it e ceeded 98 at t e e d o t e 0 a d tis expected to be 360 as of 2013. The rentable areas in malls were 6.7 million sqm at the end of 2010 and they are also going to be 10 million sqm in 2013.

Turkish retail sector is the 7th biggest sector in Europe and 10th in the world.

H I t M k t i T kHome Improvement Market in Turkey

Total HI Ma ket**

86,6%

Total HI Market**

Traditional

(10 stores) (5 stores)

(37 stores) 13,4%

Organized

(10 stores)

HI MARKET

$10 bln

(5 stores)

12%

Organized Market Shares**

Praktiker(2 stores) (5 stores)

12%

14%43%

Bauhaus

IKEA

Tekzen

(79 stores) (7 stores) 15%

12%

2%2%

Leroy

Baumax

Koçtaş

* As of March 2012** No official data for 2011 and available calculations are based on estimations.

2%2%

Competition OverviewCompetition Overview

Edirne

KırklareliBartın

Kastamonu SinopArtvin ArdahanEdirne

Tekirdağ İstanbul

Çanakkale

KocaeliYalova

Bursa

SakaryaDüzce

BilecikAnkara

Bolu

ZonguldakKarabük

Çankırı

Kastamonu

Çorum

Samsun

Amasya Ordu

Tokat GümüşhaneBayburt

GiresunTrabzon

Rize

Artvin Ardahan

Kars

Erzurum

Ağrı

Iğdır

Balıkesir

Manisa

İzmir

Kütahya

UşakAfyon

Eskişehir

Ankara Kırıkkale

Kırşehir

Nevşehir

Yozgat

Kayseri

Sivas

MalatyaElazığ

Tunceli

Erzincan

BingölMuş

Batman

VanBitlis

Ağrı

İzmir

Aydın Denizli

MuğlaAntalya

Burdur

IspartaKonya

Karaman

Aksaray

NiğdeKahraman

Maras

AdanaOsmaniye Gaziantep

Şanlıurfa

Adıyaman

DiyarbakırBatman

MardinSırnak

HakkariSiirt

y

Mersin

Hatay

Kilis

Store number 37 10 7 5 79 2 5

Cities 19 6 3 4 40 2 5

I dIndex

▪ Macroeconomic Environment▪ Retail Market in Turkey

▪ Business Highlights▪ Commercial Overview

Koçtaş TimelineKoçtaş TimelineFounded by Vehbi Koc as a wholesale retailer.1955

1996 Entered into the Home Improvement retailing business. 1996

2000

2001

p g

50%-50% JV agreement with Kingfisher Group.

Opening of first large format store in Kartal, Istanbul.

2005

As of December 2011, total store numbers reached to 36 in 19 cities

10 stores

Opening of first shopping mall store in Sisli, Istanbul.

2011

with 185k sqm selling space andTotal net sales are £332m.

In 2011, DIY & Home Improvementd

10 stores76k sqm

15 storesmarket constitutes 13.4% of the totalmarket and Koctas’s share is about 43% in organized market.

Medium15 stores71k sqm

11 storesThe first new concept store of

2012In the first quarter of 2012 total selling space reached to 190k sqm

38k sqm The first new concept store of Eryaman was opened in October 2011.

Mar In the first quarter of 2012, total selling space reached to 190k sqmwith the opening of Gaziemir store in İzmir that is our 37th store in Turkey.

KPIsKPIs

KPIs 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

l ( )Sales (TL m) 50 74 112 150 277 404 543 643 776 913Sales growth (%) 49% 50% 35% 84% 46% 35% 18% 21% 18%Number of Stores 5 5 5 7 10 15 21 26 30 36Selling Space (sqm k) 26 26 26 35 57 78 108 135 160 185Staff number 326 381 474 744 1.140 1.666 2.051 2.338 2.492 2.964

776

913900

1,000

35

40

404

543

643

776

500

600

700

800

20

25

30

L m

15

2126 30 36

50 74 112150

277

404

200

300

400

500

5

10

15

20

TL

5 5 5 7 10

0

100

0

5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Number of Stores Sales (TL m)

Average sales growth in the last 5 years is 37%

I dIndex

▪ Macroeconomic Environment▪ Retail Market in Turkey

▪ Business Highlights▪ Commercial & Marketing Overview

Brand Awareness (Unaided Recall)Brand Awareness (Unaided Recall)

2007 (n 508) 2008 (n 550) 2009 (n 539) 2010 (n 551) 2011 (n 555)

What is the first brand you remembered in home improvement and diy sector?

37 41 52 5643KOÇTAŞ

2007 (n=508) 2008 (n=550) 2009 (n=539) 2010 (n=551) 2011 (n=555)

30

29

17

24

20

16

27

24

16

33

31

17

39

27

23

BAUHAUS

PRAKTİKER

IKEA 17

10

9

16

9

7

16

12

11

17

12

7

23

19

8

IKEA

TEKZEN

CARREFOUR 9

6

7

2

2

11

6

2

7

4

2

8

7

6

1

CARREFOUR

METRO

ARÇELİK 6

6

23

2

6

26

2

3

24

2

5

13

6

43

9

ARÇELİK

DİĞER

AKLIMA BİR YER GELMİYOR 23 26 24 13 9AKLIMA BİR YER GELMİYOR

Base: 550 respondents from İstanbul, İzmir, Ankara, Bursa, İzmit, Antalya /April 2011

2011 Brand Awareness Research2011 Brand Awareness Research (conversion & awareness)

65

60

65

KOÇTAŞ

50

55

stür

me)

BAUHAUS IKEA45

sion

(Dön

üs

PRAKTİKER

35

40

Con

vers

TEKZEN

25

30

75 80 85 90 95 100 105 110 115 120

Total Awareness(Toplam Bilinirlik)

25

2011 Brand Awareness Research2011 Brand Awareness Research (conversion & retention)

60

KOÇTAS55

IKEA45

50

tma)

BAUHAUS

IKEA

40

tent

ion(

Tut

PRAKTIKER

30

35

Ret

TEKZEN

20

25

25 30 35 40 45 50 55 60

Conversion(Dönüstürme)

20

C t P filCustomer Profile

Target consumers 39 yrs old   Well‐educatedg

Families

Young couples Teenagers Working

50‐50% male‐female 

63% married

37% AB, 33% C1 SEC

Teenagers gon it

High internet usage – 66%* 46% visit alone

Price & payment conditionsusage  66%

to get info, make research, enter facebook 

54% visit with family/friends

Product quality & variety

ConvinienceImportant

factors in DIY shopping

*42% in Turkey

shopping

Source: Koçtaş Customer Profile Survey, 2010, will be updated in July 2012

P ice Pe ception Resea ch

Which DIY / home improvement store have the lowest prices?

Price Perception Research

50.5

18.6

Koçtaş

Ikea

%33

%15

15.2

7.4

Praktiker

Tekzen

%18

%7

5.1

0.8

Bauhaus

Leroy Merlin

%13

0.2

0.2

1 0

Baumax

Carefour

Yok / ucuz bılduğu 1.0

1.00 10 20 30 40 50 60

Yok / ucuz bılduğumarka yok

Bilmiyor / fikri yok /hatırlamıyor

2009 results for comparison

Base: 1105 people who live in İstanbul, Ankara , İzmir, Bursa, Antalya, Adana, Kayseri, Malatya, Konya & Trabzon and shop from DIY stores held on 15June-15July 2011 / compared with 2009 results

CRM Activities ytd 2012y

500.000 Mailing

600.000 SMS

%50 of turnover 

ith

Min 300 CRM 

i Mailingyearly

SMS yearly

with parocards

campaignsyearly

2,5 million KOCTAS KART alive!

136 cards

,%50 0f them are ACTIVE!

in 2011

30.000 trade 600 active cards, March YTD

cardholders approx.

Min 12% of  5% paropoint gift 10% discount for Fabel paints Special campaigns for paint

total sales with trade cards

shopping