tatks

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Investor Presentation

February 2010

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P2

Agenda

Profile – Brief Overview

Vision Statement

Strategy and Goals

Shareholder Structure

Key Competitive Advantages

Key Company Figures

Annexes – Financials and Other Data

Contacts

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Profile – Brief History

1967

Foundation of TAT Konserve

Public Offer of Tat

Shares Merger between Tat, Sek,Maret and Pastavillamerged under TatKonserve umbrella

1992

2003• 1981: One of the world’s three

firms in the aseptic filling

technology in tomato paste.

• 1984: Foundation of MARET A.Ş.

• 1989: Aseptic Diced Tomato

Technology for the first time in

Turkey with TAT

• 1995 : Acquisition of Pastavilla by

Koç Group

• 1997: Acquisition of majority

shares of SEK by Koc Group

• 1998: Public offer of Pastavillashares

2004: Establishment of a JV

between Tat and Tariş, a local

agricultural co-operative, toproduce and sell rakı, the

traditional and most consumed

spirit drink in Turkey.

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Profile – Key Highlights

Strong brandnames

One of the largestfood company in

Turkey

“The mostsatisfying brand”,

Q3 2006, TCSI byKalder

Highly experiencedemployees

Customer loyalty,

product quality

Fast growingmarket and

positive economic

outlook

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Profile – Key Highlights (continued...)

• One of the largest tomato paste producer in Europe

• Targeting to be the largest tomato paste producer in Europe and one of thefirst 5 producers around the world in three years

• Winner of “Kırmızı” Award in the Best Advertisement Text category, Success

Award in the Best Beverage Advertisement in Press category and in the Best

Advertisement Campaign in Press with “Sek Milk Stories”

• Tat Ketchup, Tat Tomato Paste and Tat Mayonnaise- The most recognized brands

by ACNielsen, 2008

• Tat Ketchup- the best radiospots and outdoor activities by Ekonomist*, 2009

• SEK Pasteurized Milk- the best radiospots by Ekonomist*, 2009

• SEK- the most growing milk brand in Turkey by Capital, 2009**

• SQMS ( Supplier Quality Management System ) Approval

• ISO 9001:2000 Quality Management Certificate* Weekly Economy Magazine , ** Monthly Business Magazine

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Profile - Key Highlights (continued...)

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Profile - Key Highlights (continued...)

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Profile – Brief Overview of Operations

• One of the largest food company

in the sector

• Manufacturing tomato, dairy,

meat and pasta products

Key Indicators

Stock Info- as of Jan 31, 2010

Ticker TATKS.IS

Price TL 3,26

MCap. $ 299 mio

* The paid-in capital has been increased from TRY 86 mio to TRY 136 mio in July, 2007.

TL Million, as of Dec.07 Dec.08 Dec.09

Total Revenues 547 629 694

Gross Profit 97 114 140

EBITDA 40 51 70

Total Employees 1. 145 1.222 1.013

Registered Share Capital 250

Paid-in Capital* 136MCap. $ 276 mio

Stock Info- as of December 31, 2009

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Profile – Merger Operation

Advantages Created by Merger ;

Synergy between the brands,

Reduction of the costs,

Utilization of the sources more efficiently

Being one of the largest food companies in Turkey

In 2003, Tat, Maret, Sek and Pastavilla mergedunder Tat’s umbrella.

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Profile –Production Facilities & Brand Portfolio

Canning & Tomato ProcessingFoundation: 1967Facilities : Mustafa Kemal Pasa, Karacabey,

TorbaliCapacity : 182.000 tons/year

Meat ProcessingFoundation : 1984Facility : TuzlaCapacity : 36.000 tons/year

Pasta ProductionFoundation : 1928Facility : İzmirCapacity : 87.000 tons/year

Dairy ProductsFoundation : 1963Facility : Mustafa Kemal PasaCapacity : 139.000 tons/year

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Vision Statement

Our Mission...

To become a profitably developing company together with the strong brands

which presents renovated and unique products being close to the consumers

with innovations, high R&D structure, increasing productivity and consistency in

the area of food production and distribution.

Our Vision...

“To be the revolutionary, leading food production and distribution company in

Turkey.”

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Strategy and Goals

We aim to reach a company that

• Is the leader in its sector

• Maximizes the shareholders’ earnings

• Keeps its technology up to date

• Keeps the environmental sensitivity

• Maximizes the application of Corporate Governance Principles

• Keeps the sensitivity to customers’ expectations

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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47 % of the shares are traded in ISE

41,4

9,6

5,3

43,7

Koc Holding Kagome & Sumitomo Other Koç Group Public&Other

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Key Competitive Advantages/ Strong Brands

Product Differentiation

Tomato Paste Market Share

Source:AC Nielsen

0

10

20

30

40

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

%

Tat Tukaş Tamek Akfa

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Key Competitive Advantages / Strong Brands


Premium Pasta Market Share

Source:AC Nielsen

0

20

40

60

80

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

%

Pastavilla Barilla La Fiamma Veronelli

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Key Competitive Advantages/Strong Brands


Meat Products Market Share

Source:AC Nielsen

4

9

14

19

24

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

%

Maret Pınar Aytaç Polonez

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Key Competitive Advantages/Strong Brands


Yoghurt Market Share

Source:AC Nielsen

0

5

10

15

20

25

30

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

%

Sek Danone Sütaş Ülker Pınar Yörsan

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Sales Network

Duzey Tuketim Mallari Pazarlama A.S. : is a Koc Group company that operates in thesales and distrubution area of consumer goods. Tat utilizes the sales and distributionnetwork of Duzey in domestic market that penetrates almost all of Turkey.

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Net Sales

TL Mio

380350

448

547

629

694

2004 2005 2006 2007 2008 2009

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Net Sales Breakdown by Product Group

132 124 128 164

112 91

201

3841

44

56

13

182167

276

184

221

171

8590

105

143

160

66

50

4

2004 2005 2006 2007 2008 2009

Tomato Paste & Canned Food Meat Dairy Pasta Other

TL Mio

380 350 448

547

Total

629

694

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Net Sales Breakdown by Region

84 89 92 94 93 95

16 116

8 76

2004 2005 2006 2007 2008 2009

Domestic Export

%

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EBITDA

7051

-36

4024

1

10,1%

-9,4%

0,4%

7,2%8,1%

5,4%

-60

-40

-20

0

20

40

60

80

2004 2005 2006 2007 2008 2009

-15%

-10%

-5%

0%

5%

10%

15%

EBITDA EBITDA Margin %

TL Mio %

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Gross Profit

114

97

71

4010

140

2,7%

11,3%

15,8%

20,2%

17,7%

18,1%

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009

0%

5%

10%

15%

20%

25%

Gross Profit Gross Margin %

%TL Mio

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Gross Profit Margin by Product Group

5 5

-4

1012

9

16

22

19

9

16

26

19

9

19

28

19

10

16

28

23

13

23

11

-10

-5

0

5

10

15

20

25

30

Tomato Paste&Canned

Food

Dairy Meat Pasta

2004 2005 2006 2007 2008 2009

%

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Net Operating Profit

56

3831

17-17

-56

6,1%

8,0%

3,9%

-5,0%

-14,7%

5,7%

-80

-60

-40

-20

0

20

40

60

80

2004 2005 2006 2007 2008 2009

-20%

-15%

-10%

-5%

0%

5%

10%

EBIT EBIT Margin

%TL Mio

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Net Income

7

-4

11

-19

-15

-54

4,9%

-0,7%

-4,3%-4,4%

-14,2%

2,0%

-60

-50

-40

-30

-20

-10

0

10

20

30

40

2004 2005 2006 2007 2008 2009

-20%

-15%

-10%

-5%

0%

5%

10%

Net Income Margin

%TL Mio

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Annexes

Summary Profit & Loss Statement

Summary Balance Sheet

CapEx

Agenda -2010

Tomato Plantation in Turkey & Tomato Processing in Tat

Tomato Processing Investment in Urfa

Why GAP Region?

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Summary Income Statement

Net Sales in 2009 increased to 694 mio TL from 629 mio TL by 10% YoY.

Gross Profit in 2009 increased to 140 mio TL from 114 mio TL by 23% YoY, and Gross Margin in 2009realized as 20,2% compared to 18,1% in 2008.

EBIT in 2009 increased to 56 mio TL from 38 mio TL by 45% YoY,and EBIT Margin in 2009 realizedas 8,0% compared to 6,1% in 2008.

EBITDA increased to 70 mio TL from 51 mio TL by 39% YoY, and EBITDA Margin in 2009 realizedas 10,1% compared to 8,1% in 2008.

Net Income increased to 34 mio TL from -4 mio TL by 888% YoY, and Net Margin in 2009 realized

as 4,9%.

Summary Income Statement (Millions TL) 2004 2005 2006 2007 2008 2009

Net Sales 380 350 448 547 629 694

Gross Profit 10 40 71 97 114 140

EBITDA -36 1 24 40 51 70

Net Operating Profit -56 -17 17 31 38 56

Net Income -54 -15 -19 11 -4 34

Main Indicators (%) 2004 2005 2006 2007 2008 2009

Gross Profit Margin 2,7 11,3 15,8 17,7 18,1 20,2

EBITDA Margin (9,4) 0,3 5,4 7,2 8,1 10,1

Net Operating Profit Margin (14,7) (5,0) 3,9 5,7 6,1 8,0

Net Margin (14,2) (4,4) (4,3) 2,0 (0,7) 4,9

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Summary Balance Sheet

TL million 2004 2005 2006 2007 2008 2009

Current Assets 183 168 190 219 323 343

Non-current Assets 170 147 141 179 204 196

Total Assets 352 315 331 397 526 538

Current Liabilities 231 181 191 149 332 239

Non-current Liabilities 10 40 68 100 36 100

Shareholder's Equity 111 94 73 149 158 199

Total Liabilities 352 315 331 397 526 538

Current Ratio 0,79 0,93 1,00 1,47 0,97 1,43

Liquidity Ratio 0,26 0,40 0,52 0,49 0,42 0,62

Debt/Equity 1,49 1,81 2,79 1,17 1,84 1,29

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Capital Expenditures

Capital Expenditures for up-to-date technologies

$ Million 2005 2006 2007 2008* 2009*

Machinery , Equipment, Modernization 5 2 5 20 6

Infrastructure& Construction 3 1 6 14 4

Other 0 1 1 1 1

Total 8 4 12 35 11

* Includes Harranova investments in GAP region

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Agenda 2010

Milestone Project in Harranova,GAP had already begun in 2008.

141.000 tons of tomato harvested and 21.000 tons of tomato paste produced in GAP in 2009.

22.000 decars of plantation and over 200.000 tons of tomato harvesting are planned in 2010.

Higher penetration to both domestic and export market.

After full integration of slaughterhouse to Harranova in 2008, the debonning unit was engaged by 350

tons/month capacity in 2009. The capacity target is 700 tons/month for 2010.

Research for new markets in pasta business, and new products have launched

Lasagne, Tortellini

Sale of idle plant, buildings and machineries creating quite positive impact to both P&L and cash flow

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Tomato Plantation in Turkey & Tomato Processing in Tat

Tomato Processing by Tat (000 tons)

220 250330

500

340415

780

950

1300

0

200

400

600

800

1000

1200

1400

2005 2006 2007 2008 2009 2010P 2011P 2012P 2013P

Tomato Paste by Tat (000 tons)

34

145

120

6552

72

55

39

200

0

50

100

150

200

2005 2006 2007 2008 2009 2010P 2011P 2012P 2013P

(tons/year) 2004 2005 2006 2007 2008 2009

Total TomatoProduction in Turkey

1.861.500 1.679.000 1.513.800 1.541.000 2.800.000 2.000.000

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Location ; Sanliurfa

Total Plantation Area ; 15.000-100.000

decars

Production Start Date(P) ; June 2008

Season Length ; 56 days

Tomato Processing; 1.000K tons/year

after year 2012

Tomato Paste ; 160.000 tons/year after

year 2012

First Tomato Investment in Southeastern Anatolia Project (GAP)

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Why GAP Region

Why GAP Region?

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Why GAP Region ?

Close to export markets

Source: Prime Ministry Southeastern Anatolia Project Regional Development Administration

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GAP REGION9.7 %OTHER

90.3 %

ECONOMICALLY IRRIGABLE AREA

GAP REGION20.0 %

OTHER 80.0 %

Land Potential

TOTAL AREA

Why GAP Region ?


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Why GAP Region ?

Price of Land in Organized Industrial Zones

(per square m eters)

$27.00

$9.66

$100.00

$5.17

Denizli(centre)

İstanbul(Tuzla)

Bursa(centre)

Diyarbakır

Land Prices


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Why GAP Region ?

State Incentives

Investment Encouragement

Scheme Custom Duties And Fund Exemption

VAT Exemption On Imported And Locally Procured Machinery &Equipment

Exemption From CertainStamps Duties And Charges

Subsidized Credit Cost

5084

Others


2009/15199

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Why GAP Region ?

Law 5084

80%-100% exemption onincome withholding tax on labor,

80%-100% exemption onsocial security premiums on labor;

20%-50% reduction on energy costs;

Subsidized Credit Cost for specific regions and investments

Allocation of free land.

Investment EncouragementScheme

State Incentives

Others


2009/15199

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Why GAP Region ?

2009/15199

Credit upto 500K TL with 5% and 2% subsidyin interest rates On TL and F/X based loans respectively,

Corporate Income Tax Rate of 2%.

45 TL/decar incentive for corn silage plantation(In 2010, as a second crop, corn silage would be planted

on 25K decars of land.)


5084

State Incentives


Others

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Why GAP Region ?

Others

INVESTMENT ALLOWANCE(40% FIXED)

KOSGEB(National SME Development Agency)

Executes a comprehensiveSME support Scheme

UNDERSECRETARIAT for FOREIGN TRADEsupports exporters


5084

State Incentives


2009/15199

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Why GAP Region ?

Labour Costs

272,6

371,1419,3

529,8547,2558,4

934

0

100

200

300

400

500

600

700

800

900

1000

Slovenia Czech Rep. Poland Hungary Slovakia Turkey GAP Region

Monthly Salaries (Minimum Wage Rate €)

* Source: ILO for data on other countries.

* Minimum Wage Rate in Turkey from MoLSS .

* Cost to the employer in GAP Region is based on incentives offered by Law No 5084.


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Why GAP Region ?

I t a l y

J a p a n

I r e

l a n d

D e n m a r k

P o r t u g a l

H u n g a r y

S w i t z e r l a n d

S l o v a k R e p .

F i n l a n d

G r e e c e

C z e c h R e p .

U K

P o l a n d

M e x i c o

C h

i n e s e T a i p e i

N e w Z e a l a n d

K o r e a

F r a n c e

U n

i t e d S a t e s

G e r m a n y

S p a i n

N o r w a y

A u s t r a l i a

S . A f r i c a

A u s t r i a

T u r k e y ( 2 ) ; $ 0 , 0 6 2 4 k W h

T u r k e y ( 1 ) ; $ 0 , 0 9 1 7 k W h

G A P R e g i o n ( 3 ) , $ 0

. 0 4 9 9 k W h

G A P R e g i o n ( 4 ) ; $ 0 , 0 3 1 2 k W

h

Law no 5084 allows for

20%-50% savings on

electricity costs.

(1) Turkey, normal tariff

(2) Special tariff for less developed regions

(3) Tariff based on 20% exemption from electricity costs as per Law no 5084

(4) Tariff based on 50% exemption from electricity costs as per Law no 5084

Energy Prices

Industrial Electricity Prices in Selected OECD Countries


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Why GAP Region ?

Manufacturing Cost

14.90%100.0%Total

0.00%26.5%Others

6.25%12.5%Energy

3.40%8.5%Labor

5.25%52.5%Raw Material

Savings in GAPRegion

Average Costs

Frozen Food Manufacturers


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THANK YOU

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Agenda


Vision Statement

Strategy and Goals



Key Company Figures


Contacts

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Contacts

• Guclu TOKER

CEO

+90 216 430 00 30

[email protected]

• Tamer SOYUPAK

CFO

+ 90 216 430 01 92

[email protected]

mailto:[email protected]




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Disclaimer

This presentation contains forward-looking statements that reflect the

Company management’s current views with respect to certain future events. Although it is believed that the 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 Tat Konserve nor any of its directors, managers or employees nor anyother person shall have any liability whatsoever for any loss arising from use of

this presentation.

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