Arçelik A.Ş.

Investor Presentation

February 2017

2

Company Profile

• Listed on ISE since 1986

• Bonds trade on Irish Stock Exchange

- 3.875% Notes due 2021 (EUR350mn)

- 5% Notes due 2023 (USD500mn)

Shareholder Structure

Koç Group57.2%

Burla Group17,6%

Free Float25,2%

Performance Indicators- 2016

Ticker ARCLK TI

Revenues TL 16,096 mn

EUR 4,819 mn

Share of international sales 60%

EBITDA TL 1,769 mn

EBITDA margin 11,0%

Net Profit * TL 1,304 mn

Production plants 18

Present in +140 countries

Employees

Blue Collar 24.048

White Collar 5.503

* Net income pre minority

2016 Full Year Results

3

1955: Arçelik establishment

1959: Washing machine production

1960: Refrigerator production

1977: Compressor production

1980: Economic Liberalization

1991: R&D center establishment

1993: Dishwasher production

Domestic Regional

1996: Customs Union with EU

1999- 2000: Consolidation of

Arcelik’s Turkish operations

2002: International investments :

Arctic (Romania), Blomberg

(Germany), Elektra Bregenz

(Austria), Leisure and Flavel

(UK)

2006: Arçelik greenfield investment in

Russia

Global

2007: Acquisition of washing machine

plant in China

2008: Grundig acquisition

2011: South African acquisition(Defy),

sales and marketing company

in Australia

2012: Sales and marketing company

in Egypt and Ukraine

2015: Thailand Investment

2016: Acquisition of Dawlance in

Pakistan

60 Years of History

4

A Global Player

5

• Refrigerators

• Freezers

• Washing machines

• Dryers

• Dishwashers

• Ovens

• Hobs

• Hoods

• Microwave oven

Small Household

Appliances

• Vacuum cleaners

• Kitchen appliances

• Personal care

• Garment care

• Steam cleaners

• Fans

• Warming drawers

• Water dispensers &

water filtration

• TVs

• Home theatre

systems

• Hi-Fi systems

• Portable audio

systems

• Dect & mobile phones

• Notebooks & tablets

• POS cash register

Other

• Hermetic

compressors

• Industrial motors

• Appliances motor

pumps

• Kitchen Furniture

Appliances

Product Groups

Consumer

ElectronicsOther

HVAC

• Air conditioners

• Combi boilers

• Water heaters

• Room heaters

6

Brand Portfolio

6

The leading brand in Pakistan

home appliance market.

7

Competitive Strengths

8

Competitive Strengths

Strength in Turkey

Cost competitiveness

Leading R&D capabilities

International growth

• Leading producer of white goods with a c.50% market share

• Exclusive dealer network for Arçelik and Beko brands

• Exclusive authorized after-sales service points, the widest network in Turkey

• Production in low cost regions

• Proximity to the key markets

• Manufacturing facilities are largest of their kind=> economies of scale

• Flexible manufacturing to address different local needs efficiently

• Manufacturing with its technology, no external licensing

• The only TR company repeatedly on the top 200 PCT applicants list of WIPO

• R&D activities in locations with favorable cost base

• Strategy: delivering an innovative product pipeline, energy efficient products

with world records and cost competitiveness

• c.60% of sales from international markets

• Beko the second brand in Europe (up from 7th position in 2004)

• Arçelik the third largest white goods player in Europe

• Sales &marketing organizations in 32 countries, sales in +140 countries

• Expansion into higher segment via Grundig brand in appliances

• Further diversification via greenfield investment in Thailand and acquisition of

Dawlance in Pakistan

9

Strength in TurkeyStrong sales and dealer network

Dealer network

After-sales service

• Around 3,000 exclusive dealers in Turkey for Arçelik and

Beko brands on long-term relationship

• Dealer network => customer loyalty, proximity, and brand

awareness

• Arçelik manages marketing, store formats and dealer

training

• Indirect consumer financing=> Arçelik supports dealers

via payment terms, while dealers bear consumer risk

• After-sales services includes delivery, assembly,

installation, repair and general customer support

processes

• 10 regional after-sales service centers

• Widest after-sales service network in Turkey, +600

exclusive after-sales service points

• Strong technology infrastructure. Extensive database and

immediate feedback on product performance

• Local call center to address customer issues quickly and

effectively (7 days/24 hours)

10

1. Arçelik

2. Adidas

3. Samsung

4. Nike

5. LC Waikiki

General White Goods

1. Arçelik

2. Bosch

3. Beko

4. Siemens

5. Vestel

Consumer Electronics

1. Arçelik

2. Bosch

3. Samsung

4. Beko

5. LG

Source: IPSOS Lovemark survey, 2014

Lovemark

Arçelik ranks first in most loved brand survey of IPSOS in general and respective categories

Strength in TurkeyPowerful brand image

11

Strength in TurkeyDemand drivers

1- Favorable demographics

Population : ~78mn

• Population growth rate : 1.3%

• Population under age 30: 48%

• Population under age 15: 24%

Average household size: 3.6

New household formation: c. 2-3%

Number of marriages annually: ~ 600,000

2- Replacement sales

• Old appliance pool. 60-65% of refrigerators, and

45-50% of washing machines currently in use

have energy rating below A+ level*.

• Transition to built-in

3- Penetration levels

• Low penetration in categories like dryers and

air conditioners

0-14, 23,7%

15-29, 24,1%

30-59, 39,7%

60+, 12,5%

Marriages

Young population

Source: TurkstatSource: Arçelik estimates

Divorces

Construction permits

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10 11 12 13 14 15 16

International Growth

Share of International Sales

# countries present

• International sales account for c.60% of revenues

• 3rd largest appliance company in Europe

• Beko: 2nd brand in Europe

• Leading positions in core markets

• Third largest player in EMEA region

• Leading manufacturer in Romania, S. Africa and

Pakistan

• Refrigerator plant in Thailand has started mass

production in 2016 Q1.

Share of International Employees

0%

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60%

70%

10 11 12 13 14 15 16

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13

• Beko: Fastest growing white goods brand in the European

market since 2000.

• Beko moved from 21st position in 2000 to 2nd position in

2013

• Beko is the Number 1 brand in free-standing market in

Europe (excl. built-in segment)

International GrowthBeko: Fastest growing white goods brand in the European market

Beko rank in EU27

Beko market share in EU27Market share of top-5 manufacturers

• Despite the ongoing consolidation, European market is

still relatively fragmented => further organic growth

opportunities

Source: GFK, unit volume share

0%

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60%

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90%

EE

(12

)

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(13

)

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sia

Spa

in

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k

UK

Ger

man

y

Aus

tria

Lith

uani

a

Est

onia

Italy

Bel

gium

Rom

ania

Pol

and

Latv

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Source: GFK, unit volume share

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00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

00 04 08 09 10 11 12 13 14 15 16

Rank 21 7 5 5 3 3 3 2 2 2 2

14

International GrowthVirtuous cycle for growth

Scale economies

R&D investments and

competitive product design

capabilities

Expansion to new distribution channels and

countries

Brand Investments

Positive buyer & retailer

experience

Awards & endorsements

Product mix Improvement

Sustainable growth

15

IT

DE

CH AT

GRTR*

GB

ES

FR

NO

SE

DK

NL

BE

PT

IE

CZ

PL

SK

HU

LT

EE

LV

RO*

FI

RU

BG

HR

MEAL

RS

KZ

SI

UA

BA

MK

LU

BY

GEAZAM

1-3

4-6

> 6

Data not available

International GrowthCore positions in European markets

Source: GFK Jan-December 2016 (ranking based on volume share)

Beko is:

• The 2nd largest brand in total

market and the 1st brand in free-

standing segment in Europe

• The leading brand in the UK and

Poland total white goods market

• Leader in France in the

freestanding white goods market

• The fastest-growing brand in the

German white goods market,

doubling its market share in the

last five years.

• Leader in Belgium in refrigerator

and FS cooker segment

• Leader in Italy and Spain in

freezer segment

In addition to Beko’s success, Arçelik and Arctic are the

leading brands in Turkey and Romania, respectively.

16

International GrowthLeveraging on sponsorships

Beko-Basketball League Sponsorships

• Germany: German Basketball League- Beko Basketball

Bundesliga

• Italy: Premier Basketball League-Beko Lega Basket

Serie A

• Lithuania: Lithuanian Basketball League-Beko LKL

League

Beko-Basketball Event Sponsorships

Presenting Sponsor of

• 2015 EuroBasket European Basketball Championship

(France, Germany, Latvia, Croatia)

• 2014 FIBA World Basketball Cup (Spain)

• 2013 EuroBasket European Basketball Championship

(Slovenia)

• 2011 EuroBasket European Basketball Championship

(Lithuania)

• 2010 FIBA World Basketball Cup (Turkey)

Main Sponsor of

• 2009 EuroBasket (Poland)

• 2009 FIBA Asian Championship (China)

Other• Grundig: Sponsor of Fenerbahçe Volleyball Team

• Grundig: Main Sponsor of Norway Handball League -

Grundig Ligaen

• Beko: 2014 Major Home Appliance Sponsor of NRL

Auckland Nines (New Zealand)

• Beko: Official Naming Rights Sponsor of the Ocean

Thunder Surf Boat Series for 2014-2015 (Australia)

Football sponsorships

• Beko: Sponsor of Beşiktaş Football Team (Turkey)

• Grundig: Official Technology Partner of Bundesliga

• Beko Sponsor of FA Cup in UK in 2012-2013 & 2013-

2014

• Grundig: Partner of Borussia Dortmund

• Grundig: Sponsor of Nürnberg and 1.FC Nürnberg in

Germany

Beko FC Barcelona Premium Partner

17

International GrowthSoutheast Asia investment overview

Investment

• Investment of c.USD100mn (during initial 3 years),

including working capital requirement

• 263k sqm plot at Hemaraj Rayong Industrial Land.

Ground breaking ceremony on 6th January

• Expandable capacity

• Start-of mass production by 2016 Q1

ASEAN Market

• 620mn population

• Low penetration of white goods

• Expected GDP CAGR between 14 and 2017E: +5%

• Washing Machine market is estimated to be

c.USD1.65bn and at c.6.8mn units*

• Refrigerator market worth c.USD2.5bn at c.8.6mn

units*

Strategy

• Leverage Beko brand and its European image across

the region

• Sourcing to 10 countries incl. Philippines, Vietnam,

Malaysia, Singapore, Indonesia, Australia and New

Zealand

• Local production for refrigerator from Thailand. WM

sourced from other Arçelik plants.

Expectations

• c.90% of production will be exported

• c.USD500mn revenues and +800k units production in

3 years following the completion of the investment

(cumulative)

Incentives

• Corporate tax exemption for 8 years (capped at

investment amount excluding land cost). Reduction on

corporate tax during the following 5 years

• Exemption on import duties on machinery

• Partial exemption on duties on raw materialsSource: GFK 2013

18

Vietnam

Thailand

Cambodia

Malaysia

Indonesia

Philippines

Laos

Singapore

$ 308

5

$/ 56.3

$ 3.1%

Source: WEO April 2015

Asean total

GDP (USDbn) $ 2,459

Population (mn) 620

GDP/capita(USD 000’s) $/ 4.0

GDP growth (14-17E) $ 5.1%

Malaysia

$ 327

30

$/ 10.8

$ 4.9%

Vietnam

$ 186

91

$/ 2.1

$ 5.9%

Philippines

$ 285

99

$/ 2.9

$ 6.3%

Singapore

Indonesia

$ 889

251

$/ 3.5

$ 5.5%

Laos

$ 12

7

$/ 1.7

$ 7.6%

Myanmar

$ 63

51

$/ 1.2

$ 8.4%

Cambodia

$ 17

15

$/ 1.1

$ 7.2%

Myanmar

Thailand

$ 374

69

$/ 5.4

$ 3.9%

International GrowthASEAN countries overview

19

International GrowthPakistan

• Leading appliance company in Pakistan

- Market leader in cooling and microwave ovens

(around 45% unit market share)

- Runner up in laundry and A/C segments

- One of the most recognised brands in Pakistan

• A workforce of around 3.000 with a professional management

team & well equipped engineers

• Three production facilities in Hyderabad and Karachi

- Karachi Refrigerator & Washing Machine

- Karachi Air Conditioner & MW Oven

- Hyderabad Refrigerator & Freezer

• Extensive distribution and service network with 16 sales

offices, 181 after sales service centers and around 2.000

dealers

• Annual sales of USD 220 million

• High EBITDA margin of around 20%

Why Dawlance ?

• A potential with its large population size and economic

growth expectation

- 6th largest country (200 M) in terms of population

- Stable GDP growth over the years

(CAGR of 3,9% in last 5Ys, expected CAGR of 5% in

next 5Ys)

- FDI of multinationals, ranging from automobiles to

energy, FMCG, medicine, telecom

- Mega infrastructal projects underway (China Pakistan

Economic Corridor)

- Member of SAFTA (South Asian Free Trade Area)

- Relatively low-cost country

- An estimated market size of 1,9 mln. units of

refrigeration and laundry, and 0,9 mln. units of air

conditioners and microwave ovens

Why Pakistan ?

20

R&D and Innovation1000+ R&D staff

• More than 1,000 researchers in 14 R&D Units in

5 countries (Turkey, UK, Taiwan, USA, Portugal)

• Most active Turkish company in European research

platforms (FP7/H2020)

Patent applications

• +2,000 patent applications

• The only Turkish company in top 200 of WIPO

international list in the past five years (78th in ‘16 ranking)

• 50% of the patents are actively used in products

Patent applicationsR&D staff

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Cost advantages

• R&D activities in locations with favorable cost base

Self reliant

• Manufacturing with own technology

• R&D capability in motors and compressors

21

R&D and InnovationWorld records in energy efficiency

A++

A+ Lowest average annual

energy consumption(A+++)-70%

(A+++)-10%Heat Pump Dryer

World’s most efficient gas burners

25% more efficient, 35% time saving

Side by Side

(A+++)-%10No-Frost combi

(A+++)-%30

5.5LWater Consumption

22

R&D and InnovationInnovative product launches in 2016-17

Innovative products

• HomeWhiz Technology offers you to control and monitor your oven, cooler, washing machine, tumble

dryer and dishwasher via HomeWhiz application that can be downloaded to smart phone or tablet.

• IonFresh® technology, which prevents the release of unpleasant odors from dirty dishes in the

dishwasher

• Autodosing technology in dishwashers, which promises optimum detergent consumption with

automatic dosing – one detergent load up to one month

• Auto Glass Shield® technology prolonging life of glasses by more than 20 times (dishwasher)

• Combination Microwave Oven which is equipped with microwave integrated pizza stone and drying

accessory. This innovative pizza stone saves 50% of preheating period and drying accessory saves up

to 80% of time for drying healthy snacks.

• An induction hob that can measure and control the meal’s temperature very precisely and assists the

user while cooking.

• New 8/5kg Washer Dryer provides A class energy and great performance with competitive water

consumption in its class.

• ExpressDry which merges conventional heater and heat pump technology, offers fastest drying in its

class. Product with that techology became Stiwa Test Champion.

• ProScent Feature has small capsules which pleasently freshens up your laundry with natural odours.

• SteamRefresh Feature in tumble dryers can refresh your clothes getting rid of 80% of any smells from

clothes and decreases wrinkles by 30% saving ironing time.

• EverFresh+ 0O C compartment – Special insulated compartment in our refrigerators with minimum

temperature fluctuations, providing up to 3 times longer freshness for meat, fish and dairy.

• Refrigerators with Turbo Ice Maker - Automatic Ice Machine placed inside our selected refrigerators

with 5kg/day ice making capacity, making it highest capacity in the World.

• VioLED – Special hygiene technology with up to 90% odor removal inside refrigerator

• First OLED TV produced in Turkey.

• First Ultra Slim Android LED TV produced in Turkey.

23

R&DInnovative product launches in 2014

R&D and InnovationExpanding in value added services: New generation payment systems

A new business model

• As per regulations, in Turkey cash registers

need to be replaced by new generation cash

registers

• New generation payment systems combine the

features of cash registers and POS

machines=> facilitate controls and audits of

revenue administration

• Phase I: Oct 1st 2013 deadline for replacement

of EFT-POS machines (mobile POS) with new

generation payment systems

• Phase II: Jan 1st 2016 deadline for replacement

of cash registers (extended to Jan 1, 2017)

• Apart from the first time machine sales,

opportunities for Arcelik in:

1. banking services

2. retail & value added services

Competive advantages of Arcelik

• Strong sales and after sales network

• Leader in cash register with Beko brand

24

• strategically located in markets comprising

c.50% of the global market share

347mn

Mar

kets

cov

ered

by A

rçel

ik

0

500

1.000

1.500

2.000

2.500

Turkey China Turkey China

Germany Germany UK UK

Avg. Logistic Cost (EUR/40 dc container)USD 164bn

Cost CompetitivenessProximity to the markets

Source: GFK 2014 Source: Arçelik market estimates

• logistics cost is significantly lower than Asian

manufacturers due to shorter distance to

target markets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MDA Market(volume)

MDA Market(value)

Other

South East Asia

Africa

Middle East

East Europe

West Europe

25

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AZAM

Cost CompetitivenessProduction plants located in low labor cost countries

< 7

[7- 14)

[14 – 24)

[24 – 32)

>32

n.a..

Hourly labour cost (exc. apprentices)

(EUR/employee)

Most labour intensive functions including headquarters and production plants are located in low labour

costs countries (LCC)

Source: Eurostat 2014, Arçelik estimates for Turkey and Russia

26

Organic growth

Inorganic growth

Turkey

• Growth in

• Products with low penetration

• upper segment in white goods, built-in products and SDA

• Strengthen dealership network

• Position dealer network as destination stores

• Design focus on SDA and products creating customer

traffic

• Continued roll-out of dealer stores with the new concept

• Continue efficient utilization of CRM

• Focus on B2B

International

• Strengthen brand awareness and image

• Continue to improve product mix

• Improve market share of built-in

• Strengthen SDA position in international markets

• Improve the penetration in existing countries

• Grow Grundig brand in the more premium segment of

appliance category (vs. Beko)

• Use internet channel more effectively

Overall

• Focus on R&D, innovation, design, brand and customers

• Continue rolling-out world leader products in resource

efficiency and low noise levels

• Leverage on sponsorships

Access to high-end segment

Opportunistic M&A: Acquisition of a higher-end brand in

developed markets

Growth in emerging markets

Via acquisitions, partnerships, and greenfield investments in:

• MEA

• South and Southeast Asia

Growth Strategy

27

Financial Performance

28

* EBIT was calculated by deducting the impact of foreign exchange gains and losses arising from trade receivables and payables, credit finance income and

charges and cash discount expense and adding income and expenses from sale of property plant and equipment.

** Net income before minority

Income Statement

TL mn 2016 Q4 2015 Q4 2016 Q3

Δ%

YoY

Δ%

QoQ 2016 2015

Δ%

YoY

Revenue 4.526 4.067 4.083 11 11 16.096 14.166 14

Gross Profit 1.432 1.322 1.361 8 5 5.340 4.536 18

margin 31,6 32,5 33,3 33,2 32,0

EBIT * 301 371 375 -19 -20 1.331 1.157 15

margin 6,7 9,1 9,2 8,3 8,2

Profit Before Tax 108 243 283 -55 -62 1.202 785 53

margin 2,4 6,0 6,9 7,5 5,5

Net Income** 230 212 264 9 -13 1.304 893 46

margin 5,1 5,2 6,5 8,1 6,3

EBITDA* 423 465 484 -9 -13 1.769 1.527 16

margin 9,3 11,4 11,9 11,0 10,8

29

Revenue and Gross Profit by Segment

TL mn 2016 Q4 2015 Q4 2016 Q3

Δ%

YoY

Δ%

QoQ 2016 2015

Δ%

YoY

Consolidated

Revenue 4.526 4.067 4.083 11 11 16.096 14.166 14

Gross Profit 1.432 1.322 1.361 8 5 5.340 4.536 18

Gross Profit % 31,6 32,5 33,3 33,2 32,0

White Goods

Revenue 3.368 2.915 3.130 16 8 11.707 10.299 14

Gross Profit 1.099 1.024 1.079 7 2 4.138 3.578 16

Gross Profit % 32,6 35,1 34,5 35,3 34,7

Consumer Electronics

Revenue 634 649 528 -2 20 2.266 1.966 15

Gross Profit 191 157 151 22 26 633 433 46

Gross Profit % 30,2 24,2 28,7 27,9 22,0

Other

Revenue 525 503 426 4 23 2.123 1.901 12

Gross Profit 141 142 130 0 8 568 524 8

Gross Profit % 27,0 28,2 30,6 26,8 27,6

30

Balance Sheet

TL mn 31.12.2016 31.12.2015 31.12.2016 31.12.2015

Current Assets 10.986 9.406 Current Liabilities 6.606 5.236

Cash and Cash Equivalents 2.442 2.168 ST Bank Borrowings 2.251 2.185

Trade Receivables 5.295 4.791 Trade Payables 3.086 2.090

Inventories 2.762 2.140 Provisions 412 335

Other 487 308 Other 857 627

Non-current Assets 5.924 4.332 Non-current Liabilities 4.299 3.826

Property, Plant and Equipment 2.750 2.056 LT Bank Borrowings 3.407 3.269

Intangible Assets 2.304 1.171 Other 892 557

Financial Investments 239 749

Other 630 357 Equity 6.005 4.676

Total Assets 16.909 13.739 Total Liabilities 16.909 13.739

31.12.2016 31.12.2015 31.12.2014 31.12.2013

Net Financial Debt/Equity 0,54 0,70 0,72 0,72

Total Liabilities/Total Assets 0,64 0,66 0,65 0,64

31

Working Capital

Working Capital / Sales

TL mn FX Basis TL Basis 31.12.2016 FX Basis TL Basis Total

ST Trade Rec. 2.381 2.914 5.295 ST Trade Payables 1.402 1.684 3.086

Other Receivables 48 58 106 Other Payables 313 44 358

Inventory 1.649 1.113 2.762 Working Capital 2.363 2.357 4.719

TL mn FX Basis TL Basis 31.12.2015 FX Basis TL Basis Total

ST Trade Rec. 2.038 2.753 4.791 ST Trade Payables 798 1.292 2.090

Other Receivables 29 33 62 Other Payables 248 44 292

Inventory 1.035 1.105 2.140 Working Capital 2.057 2.554 4.611

33,3% 38,9% 39,2% 39,1% 38,7% 36,2% 37,2% 39,3%41,8%

32,5%30,9% 30,3% 30,8% 29,3%

Dec-12 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

32

Debt Profile

416 905 1.317 1.174 1.741 1.267 1.621 2.168 2.491 2.467 2.722 2.442

-1.915 -1.924-839

-1.629 -2.144 -1.673 -1.803 -2.185 -2.508 -2.078 -2.370 -2.251

-1.577

-188-1.218

-1.528-1.859 -2.581

-2.965-3.269 -3.084

-3.078 -2.843 -3.407

-7.000

-6.000

-5.000

-4.000

-3.000

-2.000

-1.000

0

1.000

2.000

3.000

4.000

2008 2009 2010 2011 2012 2013 2014 2015 16 Q1 16 Q2 16 Q3 16 Q4

Cash and cash equivalent Short term debt Long term debt

TL mn

3.076

1.207

740

1.983

2.263

2.9883.146

3.2863.100

2.6892.491

3.216

5,1

1,30,9

2,3 2,22,6

2,3 2,21,8

1,5 1,4

1,8

0

1

2

3

4

5

6

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2008 2009 2010 2011 2012 2013 2014 2015 16Q1 16Q2 16Q3 16Q4

Net Debt (TL mn) Net Debt/EBITDA

Debt maturity profile

Debt profile (as of Dec 31 2016)

Effective mn Original TL mn

Interest Rate p.a. (%) Currency Equivalent

TRY 10,7% 1.540 1.540

EUR 1,7% 151 559

ZAR 9,9% 750 193

RUB 8,9% 475 27

CNY 4,4% 110 55

GBP 1,0% 5 23

USD 1,4% 0 2

PKR 6,3% 5.432 182

Total Bank Borrowings 2.581

USD 5,1% 504 1.773

EUR 4,0% 352 1.304

Total Eurobond 3.077

Total 5.658

201740%

20185%

2019-201%

202123%

202331%

33

Cash Flow

TL mn 2016 12M 2015 12M

Beginning Balance 2.166 1.621

Net Operational Cash Flow 2.067 1.723

CapEx -831 -640

Acquisition of subsidiary -746 -1

Acquisition of minority interest 0 -282

Fixed Asset Sales 7 19

Financial Asset Sales 559 0

Dividend Paid -262 -350

Dividends Received 13 24

Changes in Bank Borrowings -440 230

Other Financial & Investing Activites -409 -330

Differences due to FX Conversion 317 153

Changes in Cash 275 546

Ending Balance 2.442 2.166

34

2017 Expectations

35

2017 Expectations

Market Share

White goods market volume growth

Revenue Growth

EBITDA Margin (2017)**

Long-TermEBITDA margin**

Stable or higher market share in key regions

Turkey* : c.3%

International : c.2%

>20% in TRY

c.11%

c.11%

*6 main products, in compliance with WGMA data.

**EBITDA margin calculations are inline with the methodology used in calculation of historical values

36

Appendix

37

Arçelik conducts a dividend policy within the framework of the provisions of the Turkish Commercial Code, Capital Markets Leg islation, Tax

Regulation, other relevant legislation and the provisions of the Articles of Association governing the distribution of profits. A balanced and consistent

policy incorporating shareholders’ and Company requirements in line with Corporate Governance Principles is followed.

In principle, subject to be covered by the resources existing in legal records, by taking into consideration market expectations, long-term strategy,

investment and financing policies, profitability and cash position, other legislation, and financial conditions, minimum 50% of the distributable profit for

the period calculated within the framework of the Capital Markets Legislation is distributed in the form of cash or stock.

The dividend distribution date is determined by General Assembly and targeted to be within one month after General Assembly Meeting date. General

Assembly, or if authorized Board of Directors, could decide to pay dividend in installments within the framework of Capital Markets Legislation.

According to Company’s Articles of Association, Board of Directors can distribute advance dividend with the condition of being authorized and

compliant with Capital Markets Legislation.

Dividend Policy

68,0%77,0%

98,0%

22,0% 21,0%

48,0%

58,0%67,0%

45,0%53,0%

28,0% 29,5%

2005 2006 2007 2008* 2009 2010 2011 2012 2013 2014 2015 2016

Average

51%

Excl. KFS shares sales,

pay-out ratio is ~48%

38

Financial Risk Management

Receivable risk

Liquidity risk

FX risk

Credit risk of receivables is managed by securing receivables with

collaterals covering receivables at the highest possible proportion.

Apart from bank guarantees (guarantee letters, LOC etc.), Arçelik

utilizes credit insurance for international receivables and mortgages for

receivables in Turkey.

In credit risk control, for the customers which are not secured with

collaterals, the credit quality of the customer is assessed by taking into

account its financial position, past experience and other factors.

Arçelik seeks to minimize gap risk in its financial and commercial

liabilities by managing its balance sheet according to expected cash

flows. Maturities of financial liabilities are arranged according to

maturities of assets, and where possible, a mismatch between the

maturities is eliminated

Average maturity of debt extended via issuance of two bonds (due in

2021 and 2023)=> now at +3 years

Arçelik targets to maintain a net FX position close to zero and limit its

exposure to set amounts as a % of capital.

On top of the on-balance sheet natural hedge and financial liability

management, derivatives are also employed to maintain the FX risk at

targeted levels.

39

Turkish White Goods Market

0

1

2

3

4

5

6

7

894 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

mn units

mn units 06 07 08 09 10 11 12 13 14 15 16

Cooling 2,1 1,9 1,9 1,7 1,9 2,2 2,3 2,6 2,4 2,5 2,7

Laundry 1,8 1,6 1,5 1,5 1,6 1,9 1,9 2,0 2,0 2,1 2,2

Dishwasher 0,8 1,1 1,1 1,2 1,3 1,6 1,5 1,4 1,4 1,5 1,6

Oven 0,7 0,8 0,7 0,7 0,6 0,8 0,8 0,8 0,9 1,0 1,0

Total 5,4 5,4 5,2 5,0 5,4 6,5 6,5 6,8 6,7 7,1 7,5

40

Breakdown of sales by currency (2016) Breakdown of raw material cost (2016)

Revenue and COGS structure

TRY; 40%

FCY; 60%

Plastics; 50%

Metal Sheet; 40%

Copper; 4%

Aliminium; 4%

Others; 2%

41

Polat Şen

CFO

Tel: (+90 212) 314 34 34

www.arcelikas.com

Contacts for Investor Relations

Hande Sarıdal

Finance Director

Tel: (+90 212) 314 31 85

investorrelations@arcelik.com

Orkun İnanbil

Investor Relations Manager

Tel: (+90 212) 314 31 14

42

This presentation contains information and analysis on financial statements as well as

forward-looking statements that reflect the Company management’s current views with

respect to certain future events. Although it is believed that the information and analysis

are correct and expectations reflected in these statements are reasonable, they may be

affected by a variety of variables and changes in underlying assumptions that could

cause actual results to differ materially.

Neither Arçelik nor any of its managers or employees nor any other person shall have any

liability whatsoever for any loss arising from the use of this presentation.

Disclaimer