Company Presentation 1H 2018 P0
Agenda Migros in a snapshot 2 1 Operating environment 6 2 Review of historical financial performance & projections 27 3 P1
Migros at a Glance 64 th Year! Operating in 3 countries — Turkey (81 cities out of 81) Geographical Footprint — Macedonia and Kazakhstan 1,742 (supermarkets) 50 (upscale supermarkets) 161 (Supermarkets and Hypermarkets) 17 (wholesale and foodservice stores) 2,011 Stores 1 41 (international stores) Migros Online — 1.7m members and 56% mobile orders — Acquisition and re-launch of Tazedirekt 7.7m active households Money Club Card Innovation, Loyalty & 38% 80% +100 Customer Service Introduced more than 100 innovations for the retail market of HH of HH Only retail company in the “BIST Sustainability Index” Included Corporate Governance Index since 2015 Sustainability and 27,596 employees of which 40% are women A- Corporate Governance Best retailer of the country 14 years in a row 2 2017 CDP Grade: 1 as of June 30, 2018 2 Capital Business magazine. P2
Ownership Structure JV Structure between BC Partners & Anadolu Group Shareholding Structure as of June 2018 AG Anadolu BC Partners Grubu Holding & related funds A.Ş. MH Kenan Moonlight Free Float Perakendecilik Investments Capital S.A. ve Ticaret A.Ş . S.A. 26.8% 8.07% 50.00% 15.13% Migros Ticaret A.Ş . P3
Migros has been a leading supermarket operator since its foundation 64 years ago Migros was established in 1954 (as a joint venture between Swiss Migros & Istanbul Municipality/State Institutions). Throughout its history, the company had 5 different ownership structures. Ownership changes did not interfere with the long established Company operating principles and management. Istanbul Municipality/ State BC Partners 80.51% Institutions (49%) & Private & Public 19.49% Sector (Koç Holding 51%) 1st era 2nd era 3rd era 4th era 5th era (1954 – 1974) (1975 – 1990) (1991 – 2008) (2008 – 2015) (2015 –… ) Foreign investment Private Sector BC Partners 23.2% & (Swiss Migros 50%) & (Koç Holding 51%) Anadolu Group 50.0% Istanbul Municipality/State & Public 49% Joint Venture Institutions (50%) Joint Free Float 26.8% Venture Note: Shareholder structure as of June 30, 2018 P4
Agenda Migros in a snapshot 2 1 Operating environment 6 2 Review of historical financial performance & projections 27 3 P5
Operating Environment A Attractive market with significant upside potential to support future growth B F #1 supermarket operator with Experienced management an outstanding reputation E C Flexible and efficient business Multi-channel synergistic model combined with state of offering with a footprint in 81 art facilities Turkish cities and abroad D Retail technology and innovation leadership P6
A Attractive domestic market Attractive market with significant upside potential to support future growth Population (m) Total Grocery Spend per Capita ($) 3,670 83 3,516 81 3,200 3,008 66 65 61 2,031 46 1,781 38 1,282 Turkish Food Retail Market MGD Grocery Market Share (%) 85% 82% 81% Unorganized Organized 66% 34% 80% 54% 43% Total Grocery Spend in 2017 34% [~ TL 380bn] Source: Planet Retail P7
B #1 supermarket operator with an outstanding reputation Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) Migros on a consolidated basis 16.1 16.0 maintained its market shares in FMCG markets. However, Migros brand continued its market share gains. 6.8 6.8 1H17 1H18 1H17 1H18 Total FMCG Market Share Modern FMCG Market Share Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; Modern FMCG market and total FMCG market include all food-retail formats * including Kipa P8
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad With a clear strategy to organically and inorganically drive growth in the decades ahead Proven ability to launch new, successful formats and products, achieve business transformations Conversion of Tansas Launch of online Launch of new concept Private label relaunch Launch of Migros jet in Acquisition of stores into Migros petrol stations format 1997 2008 2010 2012 2014 2017 2013 1997 2005 2009 2011 2016 Acquisition of Introduction of self Acquisition of Club Card launch Launch of 1 Space optimization of check-out Hypermarkets Growth Levers Macro Product Inorganic / Format Evolution International Fundamentals Innovation Acquisitions 1 The format started operating in 2010 on a trial basis and was fully launched in 2011 P9
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad Multi-channel expertise anchored around large, full-service supermarkets Sales Banner Key concept Supermarkets Large SPMs & HPMs Total # of stores area split (Target size) 40-800 sqm 800-7,000 sqm [333] Core supermarkets [680] 67% (Migros) expertise anchored [23] [1,742] around large 7% (5M) [593] supermarkets [113] [69] Focused on the Western 19% [47] [161] regions of Turkey 2 [45] Well positioned in upper 3% [50] [50] income segment International operations 3% [21] [20] [41] First and leading e- commerce food retail website Wholesale & Food Service 1% [17] [17] Total # of [1,425] [586] [2,011] stores (#): Number of stores as of June 30, 2018 P10
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad Migros Migros, Largest National Supermarket Chain Number of stores: 1,742 including 469 5M, MMM & MM stores and 1,273 Migros Jet & M 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 Focus on proximity supermarkets 680 Migros Jet and 593 M Migros Proximity Stores, (40*-300) sqm, 1,800* – 3,000 SKUs Loyalty Program CRM applications for different customer segments ─ Customized & Differentiated Offering for Money Club Card holders ─ Club Card Loyalty Program for 17 years (*): including Migros Jet stores and Migros Jet 7/24 forecourt stores as of June 30, 2018 P11
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad Macrocenter Exclusive shopping Number of stores: 50 400 - 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 Penetration: 6 cities P12
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad Kipa as of June 2018 Focused on the Western regions of Turkey Number of stores: 161 Space optimization in 4 Kipa stores completed in 2017 Space optimization in 8 more stores completed so far in 2018, 6 more in 2018 pipeline Product portfolio optimization is in progress Penetration: 20 cities (#): Number of stores as of June 30, 2018 P13
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 17 Wholesale stores Penetration: 12 cities P14
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad Online Business Turkey’s first and leading e -commerce web site in food retail Top-line growth is significantly higher than the Company average Improved operational efficiency through picking automation Direct delivery from stores ( 111 stores in 28 cities across Turkey) Healthy Organic Natural Fresh P15
C Multi-channel synergistic offering with a footprint in all 81 Turkish cities and abroad International Operations Kazakhstan Macedonia 1.3% of consolidated sales from Kazakh operations 1.4% of consolidated sales from Macedonian operations Number of stores: 16 , including 2 hypermarkets, 13 Number of supermarkets: 25 supermarkets and 1 Macrocenter. Owns 1 shopping mall in Almaty Owns 1 shopping mall in Skopje Total sales area of 23,789 sqm Total sales area of 21,485 sqm Serving in the cities of Almaty and Astana in a large ─ country Operations started in 2005 Operates in multi-format since 1999 1 Shopping Mall 2 Hypermarkets 13 Supermarkets 1 Macrocenter 1 Shopping Mall 25 Supermarkets P16
D Retail technology and innovation leadership Innovations Migros Mobile App & Personalized Self-Service Checkout+ Campaign Engine BKM E-Wallet & Self-Service Sales Over Checkout ‘pin -on- receipt’ Integration Technologies Mkolay Scan&Go Migros Intelligent Office Mi-Fi Me-Mobil Supplier Information Center Electronic Smart Tag Migros R&D Center P17
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