Turkey – Netherlands Business Forum 17 April 2012, Amsterdam

Blessed with one of the very best climates for dairy farming Many large-scale dairy farms established or rapidly increased in scale Many of state-owned farms being privatized Joint ventures and foreign investors Seasonal milk production: rises from January, decreases from June Demand following an opposite trend to production Production-demand imbalance: price instability WDS Report-2011

Number of bovine animals: 11,4 million heads Number of dairy cows: 4,2 million heads Av. milk yield/year: kg/cow – Breeders Ass. Members : kg/cow – Modern farms : – kg/cow Number of animals recorded in pedigree: 2002: heads 2011: heads Number of sheep & goats: 29,4 million heads

Source: National Milk Council

Milk production volumes are similar Cow herd in TR is 2,5 times the size compared to ND; differences in average yield due to: – Fragmented production base – Cow genetics – Feeding patterns – Varying management systems WDS Report-2011

One of the world’s major milk processing countries Rapid growth in capacity, technological infrastructure and number of modern dairy plants Amount of milk collected by integrated dairy facilities in 2011: 7 mln tons – 1,2 mln tons processed to drinking milk – tons to cheese – 1 mln tons to yoghurt – tons to yoghurt drink

Source: National Milk Council

WDS Report-2011 Milk is consumed mainly as white cheese, yoghurt drink and yoghurt 26 grams/capita/day of animal protein consumption: 51% from dairy products Drinking milk consumption is low: 26 lt/year Pastorised milk constitutes of 10% of processed milk Demand for UHT milk and low fat milk is rising 75 % of the milk consumed by children Ready-to-drink flavored milk consumption growing with an annual av. of 20 %

 One of the largest markets in the region with a young population of 70mn  Rising incomes and changing consumer habits fuel domestic consumption  Favorable ecological conditions and climate; one of the world's strongest livestock sectors  Government made development of the sector a priority, ensuring continued levels of investment  Food industry is better developed than many neighbouring countries, creating strong export opportunities  Good location for trading with EU and Middle East countries  Benefits from a large pool of cheap labour

Boosting supply for growing population combined with economic development: availability of sufficient milk Fragmented production base Land ownership and regulations Feed price and water resources/availability Logistics Availability of cows/heifers Quality issues (raw milk&processing) Animal diseases Stronger cooperation in the chain

Initiation of today’s YAŞAR dates back to 1945 One of leading and most respected consumer products group in Turkey 22 companies, 2 foundations, 18 facilities, 6,500 employees Consolidated Revenue of TRY 2.03 bn in FY10 Food &beverage net sales 1,5 bn TL Core businesses “Food & Beverages” and “Coatings” Well established and widely recognised leading brands: PINAR and DYO Six companies listed on the Istanbul Stock Exchange with a combined market cap of TRY 1.5 bn** Joined the UN Global Compact, world’s largest corporate citizenship initiative, in 2007 *EBITDA is operating profit before depreciation and amortisation expenses, and other non-cash/non-recurring income and expense items ** as at 31 May 2011

 Founded in 1975 – two production plants  Production and sale of dairy products, fruit juices, mayonnaise, ketchups, powdered products  Introduced the concept of wholesome milk and dairy products in Turkey  Raw milk processing capacity: t/year  Net sales in 2010 : 577 million TL  Works with 250 farms based on contracted farming model Market leader in milk and specialty cheeses Exports to 20 countries with 29 million USD export earnings

 Founded in 1983 as a dairy feed company  Main activities: Feed production, dairy farming, turkey farming, fish farming and processing, plant nutrition  Net Sales : 150 million USD  Export value: 10 million USD

Turkey – Netherlands Business Forum 17 April 2012, Amsterdam