Company Presentation 3Q 2018 P0
Agenda Migros in a snapshot 2 1 Operating environment 7 2 Review of historical financial performance & projections 26 3 P1
Migros at a Glance 64 th Year! Operating in 3 countries — Turkey (81 cities out of 81) Geographical Footprint — Macedonia and Kazakhstan 1,980 (supermarkets) 50 (upscale supermarkets) 18 (wholesale and foodservice stores) 42 (international stores) 2,090 Stores 1 Migros Online — 1.7m members and 60% mobile orders — Acquisition and re-launch of Tazedirekt 5.8m active households Money Club Card Innovation, Loyalty & 38% 80% +100 Customer Service of HH Introduced more than 100 innovations for the retail market of HH Only retail company in the “BIST Sustainability Index” A- Included Corporate Governance Index since 2015 2017 CDP Sustainability and 27,596 employees of which 40% are women Grade: Corporate Governance Best retailer of the country 14 years in a row 2 1 as of September 30, 2018 2 Capital Business magazine. P2
2018 At a Glance Merger of Kipa under of Migros Ticaret A.Ş. Expansion Acquisition of Uyum/Makromarket stores (54 stores) Good progress on space optimization of Kipa-legacy hypermarkets Operations Physical store expansion continued as planned Debut of TL bond issuance Financing Reduction of Euro debt exposure from € 672m to € 610m in 9M 2018 Migros’ long -term strategic growth plans are unscathed even after the external macro Strategy shocks 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 Anadolu Group 50.0% (Swiss Migros 50%) & (Koç Holding 51%) & BC Partners 23.2% Istanbul Municipality/State & Public 49% Joint Venture Institutions (50%) Joint Free Float 26.8% Venture Note: Shareholder structure as of September 30, 2018 P4
Ownership Structure JV Structure between BC Partners & Anadolu Group Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu BC Partners Grubu Holding AG Anadolu A.Ş . & related funds BC Partners Grubu Holding Free Float 100.00% & related funds A.Ş . 26.81% 23.19% 50.00% MH Kenan Moonlight Migros Ticaret Perakendecilik Free Float Investments S.A. Capital S.A. A.Ş .* ve Ticaret A.Ş . 26.37% 14.88% 7.94% 1.64% 49.18% Migros Ticaret A.Ş . Migros Ticaret A.Ş . (*): Migros purchased its own shares due to the Migros-Kipa merger Note: Anadolu Group maintains its 50% stake in Migros P5
Agenda Migros in a snapshot 2 1 Operating environment 7 2 Review of historical financial performance & projections 26 3 P6
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 P7
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 (%) 84% 81% 79% Unorganized Organized 66% 34% 79% 54% 43% Total Grocery Spend in 2017 34% [~ TL 377bn] Source: Planet Retail P8
B #1 supermarket operator with an outstanding reputation Market Share Evolution Migros FMCG Market Share Evolution (%) Market Share Gain 16.9 16.9% 16.7 Migros ’ market share in modern FMCG market in Turkey 7.1 7.0 7.1% Migros ’ market share in total FMCG market in Turkey … 9M17 9M18 9M17 9M18 Total FMCG Market Share Modern FMCG Market Share 20 bps & 10 bps improvement respectively Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; Modern FMCG market and total FMCG market include all food-retail formats P9
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 & Merger of stores into Migros petrol stations format 1997 2008 2010 2012 2014 2017-2018 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 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: 1,980 including 1,153 Supermarkets. 58 Hypermarkets, and 769 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 Focus on proximity supermarkets Migros Jet and 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 September 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 Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 18 Wholesale stores Penetration: 13 cities P13
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 Data oriented, personalized customer experience & digital journey Top-line growth is significantly higher than the Company average Improved operational efficiency through picking automation Direct delivery from stores ( 124 stores in 28 cities across Turkey) Healthy Organic Natural Fresh P14
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 1.5% of consolidated sales from Macedonian operations Number of stores: 16 , including 2 hypermarkets, 13 Number of supermarkets: 26 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 21,919 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 26 Supermarkets P15
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 P16
D Retail technology and innovation leadership Money Club & CRM 6 Life Style 73% Segments 11.5 Million of Loyalty Card Active Cards Sales Advanced Turkey’s Segmentation Programme With 62.3 Million largest loyalty Highest Customer Money Points Customer Value programme Interaction Model 2.1 Million 5.8 Million Money Winning Customer Active Households Store 923k customer benefited Segmentation "Just For You" campaigns Effective Partnerships Communication With Strong Network 25 Brands 4.4 Million 285 k Mobile Phones Communication & CampaignChannels 538 k 1.7 Million Followers E-Mails 1 Money = 20 Miles P17
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