Migros Ticaret A.Ş.

9M 2019 Financial Results

Migros Sustainability Report 2018

Sales

CONTENTS

Management

Overview

1

Expansion

Format

Summary

Financial

Overview

Financial

Results

Ataşehir Migros

Market Share

Evolution

Capital

Expenditures

21.3%top-line growth in 3Q19 despite relatively low space growth of 1.6% y-o-y

▪ Migros recorded 24.7% sales growth in 9M 2019

▪ Strong customer traffic at existing Migros stores

Sales in 3Q (TL million)

2

Sales in 9M 2019

6,464

5,331

3Q 2018 3Q 2019

Sales in 9M (TL million)

17,195

13,794

9M 2018 9M 2019

Sales Growth in 3Q19 21.3% Sales Growth in 9M19 24.7%

Market Share Evolution

3

Market Share Gain Migros FMCG Market Share Evolution (%)

7.1

16.9

7.9

17.7

Total FMCG Market Share Modern FMCG Market Share

9M 2018

◼ 80 bps market share gain in modern FMCG market.

◼ 80 bps market share gain in total FMCG market.

Source: NielsenNote: FMCG stands for Fast Moving Consumer Goods; Modern FMCG market and total FMCG market include all food-retail formats

9M 2019 9M 2018 9M 2019

4

Expansion

Net Sales Area Split By Banner - 9M 2019

Space growth (m2) 1.6%*

Net Sales Area (3Q19) 1,517 K sqm

9M 2018 9M 2019

Number of Stores - Total

2,090

2,165

+7596new store openings in 9M 2019

9new store openings in October 2019

81 cities

operating in every city in the Country

2,165number of stores as of 3Q19

* Hypermarket space optimization (m2) impact: 100 bps

* High base of 9M18 due to acquisition of Uyum&Makro stores

Capital Expenditures

5

Capex (TL million)

% of Sales

Cautious stand in capex plans continues

Space optimization in large storescontinues

21 completed since Kipa acquisition

(including 7 in the current year)

297

399

488

2016 2017 2018

2.7% 2.6% 2.6%

370

208

9M 2018 9M 2019

2.7% 1.2%

More value to thecustomers through reduced prices in fruits & vegetablesand fresh meat

1,7721,749

1,387

3Q 2018 3Q 2019 3Q 2019 [IFRS 16]

Gross Profit 3Q (TL million)

6

Gross Profit in 9M (TL million)

4,690

Margin 27.3%25.8% 26.9%

4,628

3,553

9M 2018 9M 2019 9M 2019 [IFRS 16]

Margin 27.4%26.0% 27.1%

Consolidated Gross Profit in 9M 2019

7.8%EBITDA margin in3Q19, w/o IFRS 16 impact

12.3% EBITDAR margin in 3Q19

7

Consolidated EBITDA(R) in 9M 2019

*EBITDA(R)= Operating Profit+Amortization+EmployeeTermination Benefits +Unused Vacation Provision-Other Income+Other Expenses+(Rent Expenses)

EBITDA 9M (TL million)EBITDA in 3Q (TL million)

EBITDAR 9M (TL million)

Margin 11.7%11.0%

2,0131,512

EBITDAR 3Q (TL million)

Margin 12.3%11.7%

794625

3Q 2018 3Q 2019 9M 2018 9M 2019

Margin 10.3%6.2% 7.1%

1,774

859

1,214

9M 2019 [IFRS 16]

9M 20199M 2018

Margin 10.8%7.2% 7.8%

698

383503

3Q 2019 [IFRS 16]

3Q 20193Q 2018

▪ Delivery within 30 minutes only

▪ Same prices with Migros stores

▪ Over 1,800 SKUs

▪ Same day delivery,▪ Over 28,000 SKUs,▪ Service available in 48 cities,▪ Night delivery between 22:00-

24:00 in selected regions

Six online channels

8

▪ Delivery within 3 days▪ Products available for courier

shipping

▪ Increased service quality▪ Improved order fulfillment ratio▪ Labor efficiency and last mile

optimization

Darkstore

1

2019 Initiatives

Enhancing online penetration

2

3

Migros 9M 2019 Cash and Leverage Position

1 Includes capitalized costs of lease contracts over their maturity

2 IFRS 16 was implemented since 01.01.2019. Includes the IFRS 16 LTM rent cost impact which was extrapolated based on 9M19 rent cost. (TL 560.3 / 3 x 4 = TL 747.1 mn)

Gross Euro Debt (in million)

692

672

611

462 432

2016 2017 2018 9M19 2019E

Deleveraging Profile - Net Debt / EBITDA LTM

3.2x2.9x 2.7x 2.6x

2.3x

2014 2015 2016 2017 2018

Euro/TL Rate 2.8207 3.1776 3.7099 4.5155 6.1836

Change: - 11%

6.0280 6.9505

Deleveraging

Cash & Debt Items Total TL mTotal TL m [w/ IFRS 16]

Cash & Cash equivalents 2,282 2,282

TL m 1,598 1,598

EUR m 111 111

Financial Debt 4,344 7,5221

TL m 1,484 4,662

EUR m 462 462

Net Debt 2,062 5,240

EBITDA LTM 1,572 2,3192

Net Debt / EBITDA LTM 1.3x 2.3x

9

Gross Euro debt is expected to be decreased by €30 mn with an earlydown payment in 4Q19

Note: Net debt / EBITDA ratios without IFRS 16

3.0x

1.3x

9M 2018 9M 2019

10

Management Agenda in 2019

Growth & Operational Profitability Online Business

• Operational performance is on track and the management maintains2019 FY top-line growth &operational profitability guidance

• Normalization in EBITDA margin is expected in 4Q19

Deleveraging

Recalibrating our online channel;

• Geographical coverage of Migros Hemen, concept aiming a “delivery time of 30 minutes”, is expanding in three big cities

• Collaboration with Trendyol(a subsidiary of Alibaba Group)facilitated and increased online business penetration momentum

• ~30% y-o-y decrease in Gross Euro debt is expected in 2019

• Asset divestitures reached TL 616 mnin total (TL 406 mn in 2019)

* excluding IFRS 16 impact

Expectations and Guidance

2019 Guidance [Consolidated]

2019E Guidance

Sales Growth 23-25%

EBITDA Margin 6-6.5%*

Expansion Target125+

new stores

CAPEX ~TL 320 mn

- Financials

- Operations

Financials &Format Summary

IFRS Consolidated Income Statement Summary

Summary of Income Statement – 9M 2019

12

Net Sales 17,195 13,794

Cost of sales -12,504 -10,240

Gross Profit 4,690 3,553

Operating Expenses -3,635 -2,985

Other Operating Income / (Expense) -358 -282

Operating Profit 697 286

Income / (Expense) from Investment activities 15 -15

Operating Income Before Finance Income / (Expense) 711 271

Financial Income / (Expense) -883 -1,685

Income/Loss Before Tax From Continuing Operations -171 -1,414

Tax Income / (Expenses) -8 -31

Deferred Tax Income -23 239

Net Profit / Loss -202 -1,207

Net Profit / Loss - Non-controlling interest 0 0

Net Profit / Loss - Equity holders of parent -202 -1,207

EBITDA 1,214 859

EBITDA (with IFRS 16 impact) 1,774 -

EBITDAR 2,013 1,512

(TL Million) 9M 2019 9M 2018

IFRS Consolidated Balance Sheet Summary

Summary of Balance Sheet – 9M 2019

13

Current Assets 5,127 4,474

Non-current Assets 9,289 6,411

Total Assets 14,415 10,885

Current Liabilities 7,448 6,675

Non-current Liabilities 6,512 3,575

Total Liabilities 13,960 10,250

Equity 455 635

Total Liabilities and Equity 14,415 10,885

(TL Million) 9M 2019 2018

Geographical Footprint

◼ Operating in 3 countries

— Turkey (81 cities out of 81)

— North Macedonia and Kazakhstan (44 stores)

2,165 Stores1

◼ 2,044 (supermarkets)

◼ 56 (upscale supermarkets)

◼ 21 (wholesale and foodservice stores)

◼ 44 (international stores)

◼ Migros Online

— 3.5m members and 70% mobile orders

— Tazedirekt

Innovation, Loyalty & Customer Service

◼ 7m loyal households Money Club Card

◼ Introduced more than 100 innovations for the retail market

Sustainability andCorporate Governance

◼ Member of “BIST Sustainability Index”

◼ Included Corporate Governance Index since 2015

◼ 32,114 employees of which 40% are women

◼ Best retailer of the country 15 years in a row2

Migros at a Glance

80% of HH

+10038% of HH

65th

Year!

1 as of September 30, 20192 Capital Business magazine.

14

15

Consolidated Sales (TL million)

9,39011,059

15,344

18,717

2015 2016 2017 2018

Consolidated sales & EBITDA doubled in 3 years

Consolidated EBITDA (TL million)

602677

872

1,217

2015 2016 2017 2018

Three-year Summary

◼ Number of stores: 2,044 including 1,170 Supermarkets. 56 Hypermarkets,

and 818 Migros Jet stores,

◼ Penetration: 81 cities

─ (40*-4,500) sqm / (1,800* – 18,000) SKUs

─ Differentiated offering and service on fresh product categories

─ Wide branded assortment of FMCG products

─ Consistent Every Day Low Pricing on commodity Private Label products

─ Fashionable, complementary and seasonal non-food selection

Migros

Migros, Largest National Supermarket Chain

16

Focus on proximity supermarkets

◼ Migros Jet and M Migros

◼ Proximity Stores, (40*-300) sqm,

◼ 1,800* – 3,000 SKUs

◼ CRM applications for different customer segments

─ Customized & Differentiated Offering for Money Club Card holders

─ Club Card Loyalty Program for 18 years

Loyalty Program

(*): including Migros Jet stores and Migros Jet 7/24 forecourt stores as of September 30, 2019

Macrocenter

Exclusive shopping

Penetration: 6 cities

◼ Number of stores: 56

◼ 400 - 2,500 sqm / 10,000 SKUs

─ Upscale gourmet store serving with strong brand

loyalty

─ Wide product range in delicatessen, appetizers and

spirits. Premium quality in fresh products

─ Complementary and premium non-food

◼ Customized service such as banquet ready meal delivery

17

◼ Currently operating in 7 regions through dedicated salesteam.

◼ Dedicated warehouses and customer delivery

◼ 21 Wholesale stores

Penetration: 16 cities

18

Wholesale & Food Service

Focus on Horeca Penetration

Kazakhstan North Macedonia

19

◼ 1.1% of consolidated sales from Kazakh operations

◼ Number of stores: 17, including 2 hypermarkets and

15 supermarkets.

◼ Owns 1 shopping mall in Almaty

◼ Total sales area of 22,898 sqm

◼ Operates in multi-format since 1999

◼ 1.4% of consolidated sales from Macedonian operations

◼ Number of supermarkets: 27

◼ Owns 1 shopping mall in Skopje

◼ Total sales area of 22,568 sqm

◼ Operations started in 2005

International Operations

1 Shopping Mall2 Hypermarkets15 Supermarkets

1 Shopping Mall27 Supermarkets

20

Store Portfolio

1,988Supermarkets(incl. 818 Migros Jet stores)

56Hypermarkets

56Macrocenter storesUpscale format

44RamstoresNorth Macedonia & Kazakhstan

September 30, 2018 September 30, 2019

# of stores Sales area(th sqm)

# of stores Sales area(th sqm)

Migros (M, MM,MMM) 1,153 959.8 1,170 980.4

Migros Jet 769 149.4 818 165.7

5M 58 292.6 56 274.1

Wholesale 18 10.3 21 12.0

Macrocenter 50 35.9 56 39.5

Domestic Total 2,048 1,447.9 2,121 1,471.7

Ramstores 42 45.7 44 45.5

Grand Total 2,090 1,493.6 2,165 1,517.1

Ownership Structure

Direct Shareholding Structure

Migros Ticaret A.S.

AG Anadolu Grubu Holding

A.Ş.

50.00%

Free Float

26.81%

Migros Ticaret A.Ş.

BC Partners

& related funds

23.19%

Indirect Shareholding Structure

Kenan Investments S.A.

14.88%

MH Perakendecilik ve Ticaret A.Ş.

49.18%

Free Float

26.37%

MoonlightCapital S.A.

7.94%

Migros Ticaret

A.Ş.

AG Anadolu Grubu Holding

A.Ş.

100.00%

Migros Ticaret A.Ş.*

1.64%

BC Partners

& related funds

(*): Migros purchased its own shares due to the merger in 2018 in accordance with relevant CMB legislation

Note: Anadolu Group maintains its 50% stake in Migros

21

Carbon Footprint Water Management Energy Management

Our Target: Reducing daily carbon

emissions per sales area (m2) by 25%in 2023 compared to 2015

Our Target: Reducing daily water

consumption per sales area (m2) by 5%in 2023 compared to 2017

Our Target: Reducing daily energy

consumption per sales area (m2) by 17%in 2023 compared to 2013

Sustainability

22

We completed 78% of this target bythe end of 2018

We reduced our daily water consumption

per sales area (m2) by 1.1% comparedto 2017

We completed 61% of this target by theend of 2018

Waste Management & Biodiversity Conservation

23

Combating Food Waste

Combating DeforestationGood Agricultural Practices

Combating Plastic Waste

We supported 1,124,023 meals to be delivered to those in need thanks to Respecting Food Project

We saved food amounting to total revenues of 10 Migros Jet stores throughdiscounted sales of fresh food products and ripened vegetables & fruits

5,281 tons of organic was sent to a biogas plant

The amount of plastic we use in our 40 different private label products in the detergent and paper category contains 327 tons less plastic

We sold 317,518 nonwoven and cloth bags

We made life cycle assessment for 50% of our private label product purchases,

We delivered 663,565 tons of Good AgriculturalPractices (GAP) fruit and vegetables to ourcustomers in 8 years

Our whole chicken and turkey products were produced in accordance with GAP procedures and principles including 317 checkpoints

We supported planting 543,350 olive trees in 10 years

We saved 33,830 trees by printing all campaign and promotional brochures and booklets on recycled paper

Pillars of Migros Sustainability VisionMigros Better Future Plan

24

Consider compliance with human rights in all

our activities, and to respect gender and equal

opportunities;

Ensure transparent, consistent and rapid flow

of product content and information;

Implement innovative practices that increase

our efficiency, add convenience and speed to

the lives of our stakeholders;

Measure and strive to reduce our carbon

footprint in order to combat climate change;

Conduct environmental impact assessments

before establishing our new areas of activity;

Develop solutions with our suppliers in order

to improve the life cycle of the products we

offer to our customers;

Measure, reduce, reuse or recycle waste from

our operations;

To combat environmental, water, air, soil, noise

and visual pollution and to develop preventive

solutions;

Develop projects to ensure efficient consumption

of water and energy;

Support the activities in the field of conservation

of biodiversity and to eliminate the negative

impacts that may arise from our activities;

To raise awareness towards the value adding

activities our stakeholders can implement for a

more habitable world and future;

Create shared value by including our

stakeholders in our sustainability development

goals towards our generated economic value,

jobs and business partnerships.

Disclaimer Statement

25

Migros Ticaret A.Ş. (the “Company”) has prepared this presentation for the sole purpose of providing information about its business, operations and financial results.

The informaation in this presentation is subject to updating, revision and amendment. The information in this presentation, which includes certain information drawn fromexternal sources, does not purport to be comprehensive and has not been independently verified. No reliance may be placed for any purpose whatsoever on the informationcontained in this presentation or any assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, any of itssubsidiaries or any of its advisers, officers, employees or agents, as to the accuracy, reliability or completeness of the information or opinions contained in this presentation or inany revision of the presentation or of any other written or oral information made or to be made available to any interested party or its advisers. Save in the case of fraud, noresponsibility or liability is accepted (and all such liability is hereby excluded for any such information or opinions). No liability is accepted by any of them for any suchinformation or opinions (which should not be relied upon) and no responsibility is accepted for any errors, misstatements in or omissions from this presentation or for any losshowsoever arising, directly or indirectly, from any use of this presentation or its contents. The information and opinions contained in this document are provided as at the dateof this presentation and are subject to change without notice.

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