Strictly confidential

2016 Year End / Earnings Release

Feb 21, 2017

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The information and opinions contained in this document have been compiled by Kordsa Global Endüstriyel İplik ve Kord Bezi Sanayi ve Ticaret Anonim Şirketi (the “Company”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document may contain forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Company management’s current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Company’s current judgment and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. The Company does not undertake any obligation, and disclaims any duty to update or revise any forward looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell the Company and/or Its group companies’ shares. The Company cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of the Company and its group companies. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither the Company, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.

Disclaimer

2

• APAC (Incl. China, India, Thailand, Vietnam) still has the

strongest growth with CAGR 5.5%

• Automotive is expected to grow more than others in China,

India, Mexico and Thailand.

• EU market still significantly below saturation, slower growth

is expected after a dynamic year of %5 growth.

• Assembly in EU is expected to grow till 2023 with additional

plants and added capacity coming online

Global Automotive Market

Global LV Assembly – M Units / Year

2016-2021E CAGR: 3,4%

Global Tire Market

Global LV Tire Production– M Units / Year

60% 60% 61% 62% 64% 67% 70%

3

2016-2021E CAGR: 3,3%

Source: PWC Autofacts

Source: LMC Tyre Forecast

93 95 100 104 108 110

2016 2017E 2018E 2019E 2020E 2021E

Ap exc China China EMEA NA SA

2016 2017E 2018E 2019E 2020E 2021EAP exc. China China EMEA NA SA

1,637 1,682 1,754 1,817 1,871 1,931

Market Dynamics

• Tire Market is aligned with Automotive Market Growth • Europe growth expected around 2.3% • Mexico investments continue in 2017 – mostly to supply

increasing N.American demand

• LATAM expected to recover - but slowly after 2 years of poor performance

• Chinese imports increase at all regions except US due to ADD

200

300

400

500

600

700

800

900

1000

2016 2017E 2018E 2019E 2020E 2021E

kton

Supply Demand

200

250

300

350

400

450

500

550

600

2016 2017E 2018E 2019E 2020E 2021E

kton

Supply Demand

Tire Reinforcement Market (PET HMLS)

Passenger & LV tire driven growth

Tire Reinforcement Market (NY6.6)

Cap-ply grows, Agro & Mining Tires demand is low

60% 60% 61% 62% 64% 67% 70%

2016-2021 CAGR: +3.5%

2016-2021 CAGR: +2.5%

Source: Company Estimates

Source: Company Estimates

PET HMLS

• Increasing rate of PET HMLS penetration to Agro tyres

• Carcass demand grows with passenger & light vechicle tire demand

• Increased capacity utilisation drives investments

• Significant quality differences of suppliers

Nylon 6.6

• 2017: Above 90 % capacity utilisation rates, good demand • Cap ply demand grows with passenger & light vechicle tire

demand

• Still the preferred product in tire performance compared to PET and N6

• Slow growth in Chinese market

• Low prices of caprolactam makes N6 use attractive in low end applications

Market Dynamics

4

1. Operating Excellence

a. Continuing Cost Reduction Programs

• Raw material diversification and improvement for best yields

• Creep capex driving energy & labor efficient production

• TPM (total productive maintenence) initiatives at all locations

b. Lean Kordsa

• High capacity utilization at all entities

• Organizational Simplification decreasing OPEX and fixed costs

2. Profitable Growth in Tire Industry

a. Segmental focus in meeting different customer needs

• provide better cost of use and value for customer (superior quality, sustainable supply, joint product development,

technical support, customised service level, commercial flexibility, geographical presence)

b. Offer more value added products (fabric vs yarn mix)

c. Increase new product sales including improved generations of tire products and non tire applications

d. Further investment in PET HMLS for new generation yarns

3. Profitable Growth in Adjacent Industries

a. Composites Excellence Center – build up approval base, develop pace in commercial sales

b. Construction Reinforcement Business – develop new application areas and partnerships

Must Win Battles

Focus on tire industry for profitable growth, selectively grow adjacencies

5

Segmental Progress

50%

57%

60%

66%

13% 12% 12% 11%

6% 5% 6% 6%

31%

26%

22%

17%

0%

10%

20%

30%

40%

50%

60%

70%

2013 2014 2015 2016

Global Players Regional Players Emerging Players Others

6

Regional Revenue Split Progress

36.1%

28.0%

22.3%

13.7%

38.6%

29.5%

17.4% 14.5%

36.0%

30.6%

18.4% 15.0%

EMEA APAC NA SA

2014 2015 2016

7

2016 Revenue Split Progress by Products

71% 74% 76%

23% 18% 19%

7% 8% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016

TCF NY Yarn Other

8

Strong Focus on R&D

10 28

41 52

42

120

1.2%

3.4%

5.2%

7.7%

6.6%

11.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2021

In MM$

Revenue From New Products (US$m) % of Total Rev.

• Incl. Replacement products and incremental new products • The products whose “new product life cycle” has been completed, transferred to “conventional sales

portfolio

9

2016 - Key Financials

In MMTL 2015 YE 2016 YE Change

Net Sales 1,735 1,908 10%

Gross Profit 315 397 26%

Gross Profit % 18.2% 20.8% 3 pts

Operating Profit 171 240 41%

Operating Profit % 10% 13% 3 pts

EBITDA* 242 288 19%

EBITDA* % 14.0% 15.1% 1 pts

Net Income 99 143 44%

10

*EBITDA Calculation = Operating Profit - [Dep&Amort] - [A]* - [B]** [A]* : FX Gain/Loss on trade Rec. & Pay. [B]** Unearned finance inc/exp on credit sales

2016 - Balanced Sheet (Selected Items)

In MMTL Dec 31, 2015 Dec 31, 2016 Change

Cash and Cash Equivalents

18 39

(21)

Account Receivable

297 372

(75)

Other Current Assets

109 114

(5)

Inventories

425 537

(113)

Accounts Payable

(172) (284)

112

Oth. Curr. Liab. (Excl. Borrowings)

(50)

(71)

21

WCAP Turnover

3.2 3.5 -

11

2016 - Free Cash Flow

In MMTL Dec 31,

2015

Dec 31, 2016

Change

EBIT*(1-t) 142 204 62

Depreciation and Amortization 81 79 1

Change in Working Capital (23) (124) (102)

Cash Used in Investing Activities (77) (134) (54)

Free Cash Flow** 124 26 (98)

* FCF: EBIT(1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure

12

2016 - Dividend Distribution*

32

76

35

-

68

61

-

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016

In MMTL

* Kordsa distributes all the distributable income subject to Gen Assembly approval. Basis of distribution is the lower of the Turkish solo tax books or consolidated TFRS net income.

13

2016 - Operating Profit Bridge

14

APPENDIX

15

0

50

100

150

200

250

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

NY Material Trend

BZ BD PP OIL

Forecast

RM Price Drivers

Source: Company Estimates

16

50

60

70

80

90

100

110

120

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Polyester Raw Material Trend, MEG

MEG CFR AP Contract $/ton MEG CFR NEA Spot $/ton MEG Deliv.WE Contract €/ton

Forecast

50

60

70

80

90

100

110

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Polyester Raw Material Trend, PTA

PTA NEA CFR Contract $/ton PTA NEA C&R Spot $/ton PTA Deliv.WE Contract €/ton

, Forecast

RM Price Drivers

Source: Company Estimates

Source: Company Estimates 17