PINAR SU SANAYİ VE TİCARET A.Ş.

2012 H1 Earnings Presentation

Pınar Su

Pınar Su Highlights

1

• 2nd Brand that comes to mind in PET and PC categories. (Nielsen)

• Müşteri memnuniyetinde ambalajlı su kategorisinde lider marka *

Brand Recognition

• 499 PC, 168 PET dealers

• Call Center Implementation

Distribution Network

• HACCP Food Security Management System

• NSF Sufficiency Certificate

• ISO Quality Certificates

• TS18001 ISG Certificate

Quality

• Natural spring water reaching consumers in most natural anda hygenic conditions

• Know-How

• Production from 3 sources close to target markets

• Clean room technology

Production

• Production in all SKUs from sources of Madran, Toros and Gökçeağaç

Product Portfolio

* Kalder, (TMME Index) 2011

Pınar Su

9 bn Lt 9,5 bn Lt 9,9 bn Lt 10,3 bn Lt

69% 67% 66% 64%

31% 33% 34% 36%

2009 2010 2011 2012 (t)

Damacana PET

Market Dynamics - I

2

There are 296 firms having Ministry of

Health License.

Average CUR of the sector is %40. (SUDER)

Per capita water consumption is 133 lt in

Turkey, in 2011.(SUDER)

Export sales of the sector is 25 mn USD, in

2011. (TUİK)

%6 %4 %4

%13 %10 %9

Source: SUDER (Packaged Water Manifacturers’ Association of Turkey)

Source: SUDER

Breakdown of Turkish Bottled Market Sales Volume Resin Prices (KG/USD)

Per Capita Water Consumption by Countries (2010)

PC

(E)

1,00

1,25

1,50

1,75

2,00

2,25

2009 2010 2011 2012

Pınar Su

Market Dynamics - II

3

The growth rate of

Turkish Bottled Water

Market remained under

GDP growth rate of Turkey

in 2010 and 2011.

Source: TUİK, SUDER

Source: SUDER * Estimated

The Bottled Water Sector in Turkey 2003-2012

GDP vs. Turkish Bottled Water Market Growth Rate

9,4%

8,4%

6,9%

4,7%0,7%

-4,7%

8,9% 8,5%

3%

14%

7%

13%

7%

3% 6% 4,5%

-5,0%

0,0%

5,0%

10,0%

15,0%

2004 2005 2006 2007 2008 2009 2010 2011

GSYİH Büyüme Hızı Türkiye Şişelenmiş Su Sektörü Büyüme Hızı

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

Production (bn

Lt) 5,7 6,2 7,0 7,8 8,1 8,7 9,0 9,5 9,9 10,3

Market Value

(bn TL) 0,6 0,8 1,0 1,2 2,5 3,0 3,1 3,3 3,5 3,6

Per Capita

Consumption

(Lt) 81 83 93 105 115 122 124 128 133 138

Pınar Su

Market Overview

4

In 2012 H1, PET market has grown by

%22 in terms of value and %10 in terms of

volume, YoY. (Nielsen)

Pınar Su has increased its market share

in 2012 H1.

Increasing investments of multinational firms

like nestle, Danone and Coca Cola is a sign the

room for growth of the market (M&As, spring

source investments etc)

Trend in the market is to increase the

number of spring sources in order to optimise

logistic costs. Small scale local producers are

causing a fragmented market structure.

Source: Value, Nielsen, 2012 H1

Natural Mineral Water - PET

Pınar Su; 7%

Competitor 1;

22%

Competitor 2; 9%Competitor

3; 7%

Competitor 4; 7%

Others; 48%

Pınar Su

Sales & Distribution

5

Share of exports in all sales for 2012 H1 is

7,8%. (2011 H1: %7,5)

Yurtdışı Stışlar (2012 1Y)

20% 20% 21%

30% 32% 32%

28% 26% 26%

22% 22% 21%

2009 2010 2011

4Ç 3Ç 2Ç 1Ç

Exports (2012 H1)

Breakdown of Sales Volume (PET/PC) (2012 H1)

Seasonality

Q4 Q3 Q2 Q1

Germany; 46,1%

Denmark; 3,8% UK; 19,6%

Cyprus; 7,5%

Kuwait; 4,6%

Libya; 3,8%

Others; 14,6%

PET 53%

PC 46%

Glass 1%

Pınar Su

New Concept & New Products

6

Pınar Su has introduced its consumers, the new summer-

concept glass bottle, which is the first of the special series

of glass bottles based on the concept of seasons.

The new 0,5l Pınar Yaşam

Pınarım (My Life Source) bottle,

which carries the illustrations of

Father Smurf, Smurfette and the

Smurf Village eases the drinking

of water with its practical cap.

Pınar Su

Media Campaign

7

Consumer communication is achieved through new concept and placement. Customers are reached via

different channels.

Newspaper

Outdoor

Leaflet

•TV •Newspapers •Outdoor •Leaflet

FINANCIAL RESULTS

Pınar Su

16,7 10,4 10,9

6,6

1,4 0,5

3,3

2007 2008 2009 2010 2011 1Y11 1Y12

60,6 61,2

75,3 69,0

78,9

38,0 47,3

2007 2008 2009 2010 2011 1Y11 1Y12

Sales & Profitability

9

In 2012 H1, net sales have grown by %24,4 in

terms of value and %9,4 in terms of volume

compared to 2011 H1.

Thanks to price adjustments in sales side, lower

raw metarial prices and lower exchange rates in cost

side, the gross profit margin has been increased in

the first half of 2012 compared to 2011 H1.

Continued strengthening of sales and distribution

network and investment in marketing, parallel to our

strategies.

The improvement in the opex without

compromising marketing investments and the

increase in the gross profit margin made a positive

impact on operating profit margins.

Net Sales (Million TL)

EBITDA *(Million TL)

* Earnings before Interest, Tax, Depreciation, and Amortization

%1,3

%7,0

11H1 12H1

11H1 12H1

Pınar Su

Income Statement

10

(Million TL)30.06.2012 30.06.2011 Difference % Change

Net Sales 47,3 38,0 9,3 24,4

Cost of goods Sold (24,0) (21,1) (2,9) 13,6

Gross Profit 23,3 16,9 6,4 37,8

Sales, Distribution and Marketing Expenses (17,4) (14,2) (3,2) 22,6

General Administration Expenses (5,3) (4,7) (0,6) 13,0

EBIT 0,6 (2,0) 2,6

Other Income 0,9 3,4 (2,4) (72,0)

Other Expenses (1,7) (1,2) (0,5) 46,7

Financial Income (Net) 0,8 0,4 0,3 79,4

Profit Before tax 0,6 0,7 (0,0) (5,6)

Tax 0,0 0,1 (0,1) (85,2)

Net Profit for the Period 0,7 0,8 (0,1) (16,4)

EBITDA 3,3 0,5 2,8 549,7

Total Assets 117,4 95,4 22,0 23,1

Equity 74,4 64,2 10,2 15,9

Pınar Su

Growth Analysis

11

38,0

47,3

2011 1Y Miktar Fiyat ve Ürün Miksi

Kur 2012 1Y

%24,4

%0,6 %11,7

%12,1

Net Sales – Million TL

2011 H1 2012 H1

Pınar Su

14,4%

9,6%

1,8%

-2,6%

7,0% 7,0%

2009 2010 2011 2Q11 2Q12 1Q12

Profit Margins

12 • * ex. other net income

• ** Earnings before Interest, Tax, Depreciation, and Amortization

Gross Profit Margins (%) Operating Profit Margins* (%)

EBITDA Margins** (%) Net Profit Margins (%)

49,0%50,1%

45,9%

43,5%

49,6%49,0%

2009 2010 2011 2Q11 2Q12 1Q12

8,1%

2,5%

-4,2%

-8,6%

2,6%

-0,6%

2009 2010 2011 2Q11 2Q12 1Q12

8,2%

5,5%

-1,0% -2,8%

0,7%

2,4%

2009 2010 2011 2Q11 2Q12 1Q12

Pınar Su

Quarterly Results

13

Net Sales (Mn TL)

EBITDA* (Mn TL)

The effect of our selective price policy,

lower raw material prices and the decline

in exchange rates boosted the gross profit

and the operating profit margins in 2012

H1.

Both volume and value growth was achieved

in the first and second quarters of 2012

compared to 2011 1Q and 2011 2Q.

Marketing investments have been continued in

the first half of 2012 in line with our growth

strategy.

* Earnings before Interest, Tax, Depreciation, and Amortization

%28 %36

(0,5)

1,9

1,4

2Q11 2Q12 1Q12

21,3

27,3

20,0

2Q11 2Q12 1Q12

Pınar Su

-25

-15

-5

5

15

Trade Recevables Trade Payables Inventories

Basic Ratios, Net Financial Debt & Net Working Capital

14

Mn

TL

June 30, 2012 December 31, 2011(Million TL)

June 30, 2012 December 31, 2011

Current ratio 1,02 1,06 Cash & Cash Equivalents 1,84 1,75

Leverage ratio 0,37 0,29 S/T Bank Borrowings 8,41 1,78

S/T Fin Debt/T. Fin Debt 0,97 0,65 L/T Bank Borrowings 0,30 0,95

Net Financial Debt/EBITDA 1,64 0,70 Net Financal Debt 6,87 0,97

Total Fin Debt/Equity 0,12 0,04

►Continuous focus on risk management and productivity ►Effective working capital management

►Strong balance sheet and liquidity management

Pınar Su

Overview of 2012 H1

15

In 2012 H1, positive impact of resin prices which remained at the level of

2011 4Q and lower exchange rates compared to beginning of the year led to a

cost advantage. Also with price adjustment, the gross profit margin gain was

remarkable compared to 2011 H1.

Mostly local small scale and economic brands cause an aggressive price

competition in the market.

With the positive effects of advertisement campaigns, dealer restructuring

and Call Center (444 99 00), net sales have grown by %24,4 through both

volume and price increases. Pınar Su increased its market share in this period.

Companies come to the fore with the quality and reliability are expected to

grow in the mid and long term.

Pınar Su

Strategies and Targets

16

2012 TARGETS Growth in Net Sales: %20-%25 EBITDA Margin: %5 - %7 Capex: 5 - 6 Million TL

To increase our market shares in both PET and PC businesses.

To maximise our profitability by improving our processes with Lean 6 Sigma,

with a cost oriented approach all through the value chain and without

compromising quality.

To increase customer loyalty by, keeping our service quality high and improving

communication with consumers (Call Center project etc.)

To maintin our optimum cost distribution model regarding spring source

locations.

To keep human resource in the forefront for success

To ensure a growth in export sales particularly in Europe

Pınar Su

Ownership & Participation Structure Share Performance

17

Yaşar Holding; 58%

Pınar Süt; 9%

Halka Açık; 32%

Yaşar Birleşik Pazarlama; 1%

Pınar Su

Yaşar Birleşik Pazarlama (%4,7)

Desa Enerji (%6,1)

Yaşar Dış Ticaret (%1,8)

Viking Kağıt (%1,7)

Ownership Structure

31.12.2010 = 100

0

1

2

3

4

5

6

7

-

20

40

60

80

100

120

140

Pınar Su Hissesinin Mutlak ve Göreceli Performansı (İMKB-Tüm ile Kıyaslı)

İMKB-Tüm'e Göre (Sol Eksen) PINSU (Sağ Eksen)

Free float;

Relative and Absolute Performance of Pınar Su Shares

Relative to ISE-TUM (left axis) PINSU (Right Axis)

Share Performance

Thank you

Pınar Su

1984 ’85 ’90 ’95 ’00 ’02 ’04 ’06 ’08 ’09 2010

1984

Potable water (for the first time) in non-recycled package... Pınar Şaşal

1984

Pınar Su plant was established in İzmir, Menderes to produce first bottled water in Turkey

1985-86

Pınar Şaşal in PVC packages

1997

The first Madran water in plastic bottle. Turkish Standards Institution was awarded Golden Package with the plastic bottle of Madran Memba Suyu

1995

Annual production reached 100,000 tones. New resources were started to be searched.

1989

%90 of total water exports of Turkey is realised by Pınar Su

1996

Second factory of Pınar Su was established in Nazilli, Aydın and Pınar Madran water, one of the top-notch waters in the world in terms of taste, met with the customers.

1985

Pınar Şaşal was exported to Germany for the first time

1999

ISO 9002 Quality Management System Certificate

2001

TSE ISO 14001 Environmental Management System Certificate

2002

Pınar Madran water packed in demijohns was introduced

2003

Pınar, Yaşam Pınarım and Pınar Denge waters were launched in the market.

2003

TS ISO 9001-2000 Certificate

2004

www.pinarmutfagi.com site was established.

2003

Marmara Water Inc. Was established upon acquisition of two springs in Adapazarı and Isparta

2005

TS 13001 HACCP Food Safety System Certificate

2007-2008

Pınar Su receives natural mineral water licenses for all three of its factories.

2010

Pınar Su Order Hotline

444 99 00 was established.

2010

Merged with Birmaş Tüketim Malları Ticaret A.Ş.

History

Pınar Su

Production

Efficiency in transportation and supply

Long term agreements with the State

Aydın - Bozdoğan Isparta - Eğirdir Sakarya - Hendek

Turkey’s first bottled natural spring

water

Modern production facilities and

sources in 3 territories:

Gökçeağaç (2003) / Adapazarı

with 400,000 tonnes capacity

Madran (1996) / Aydın with

490,000 tonnes capacity

Toros (2003) / Isparta with

210,000 tonnes capacity

Pınar Su

Brings unique gift of nature to consumers in its purest form

Long term cooperation with local

multinational producers sustain quality

assurance

Sustainable improvement in packaging costs

(short-neck, light-weight bottle)

High quality natural spring sources in 3

different regions

Diversified sources in Aydın, Isparta, Sakarya

provides benefits in distribution and

transportation costs

Long term agreements with the State

Spring Sources PET Preform Supply

Supply