Polisan Holding – 3Q 2013

POLISAN HOLDING February 2014 NOTICE 2 This presenta>on may contain statements that are forward looking. These statements are based on current expecta>ons and assump>ons that are subject to risks and uncertain>es which may cause actual results to differ materially due to factors discussed in Polisan Holding’s prospectus filed during the IPO of the Company in compliance with the procedures of the Capital Markets Board of Turkey. We undertake no duty to update or revise any forward looking statements, whether as a result of new informa>on, future events or otherwise. POLISAN HOLDING: POISED FOR GROWTH IN ALL BUSINESS LINES CHEMICAL ACTIVITIES PAINT 100% 100% 51% 40% INTERNATIONAL EXPANSION 3 100% PORT OPERATIONS AGRICULTURE 93% 100% REAL ESTATE 99% POLISAN HOLDING: BOARD OF DIRECTORS ! 
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NecmeBn Bitlis Chairman ! 
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Ahmet Faik Bitlis Board Member ! 
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Fırat Yemeniciler Board Member 4 ! 
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High School 70 years of work experience Dilovası Industrial Zone Chairman Chairman of Polisan Boya, Polisan Kimya, Poliport, Polisan Tarım, Polisan Yapı and Şark Mensucat Founding member of Malatya Educa>on Fund President of Dilovası Industrial Zone Entrepreneurs’ Board Deutsche High School Bosphorus University, Industrial Engineer (BSc) 25 years of work experience Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı, Şark Mensucat, Poliport and Rohm and Haas Chairman of Polisan YapıKim BOSAD Chairman İMMİB Board Member Saint Joseph High School University of Istanbul, Chemical Engineer (BSc) University of Brussels, Petrochemicals (MSc) 18 years at Polisan Group Board member of Polisan Holding and Poliport GM of Poliport Chamber of Shipping, Vice President of Port Opera>ons Commiiee !
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Mehmet Emin Bitlis Deputy Chairman ! 
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Bundesau\au Gymnasium Wirtscha]s Universität (BSc), Austria 27 years of work experience Deputy Chairman of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım and Polisan Yapı Board member of Poliport, Şark Mensucat and Rohm and Haas ! 
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Ahmet Ertuğrul Bitlis Board Member Notre Dame de Sion High School ITU, Chemical Engineer (BSc) 25 years of work experience Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı, Şark Mensucat and Poliport Fatma Nilgün Kasrat Board Member ! 
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University of Boston ,USA Produc>on Engineer (BSc) and Mechanic Engineer (MSc) 26 years of work experience Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı and Şark Mensucat Deputy Chairman of Poliport University of Istanbul, Faculty of Law 36 years at Polisan Group Polisan Holding CEO since 2005 Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı, Şark Mensucat and Poliport Erol Mizrahi Board Member ! 
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İzzet Özberki Independent Board Member ! 
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Galatasaray High School University of Ankara; Poli>cal Sciences (BSc) METU, Economics (MSc) Research Fellow at Gazi University for 5 years 28 years of work experience Corporate Financier (CF) degree from the Ins>tute of Chartered Accountants of England and Wales ! 
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Ahmet Temizyürek Independent Board Member ! 
University of Ankara; Poli>cal Sciences (BSc) University of Boston, Financial Economy, E-­‐Trade, Systems and Technologies (MSc) 15 years of Audi>ng experience as State Officer Sworn Financial Advisor for 2 years POLISAN HOLDING: EXECUTIVE COMMITTEE ! 
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University of Istanbul, Faculty of Law 36 years at Polisan Group Polisan Holding CEO since 2005 Board member of Polisan Holding, Polisan Boya, Polisan Kimya, Polisan Tarım, Polisan Yapı, Şark Mensucat and Poliport ! 
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Saint Joseph High School University of Istanbul, Chemical Engineer (BSc) University of Brussels, Petrochemicals (MSc) General Manager of Union Carbide between 1993-­‐1995 18 years at Polisan Group Board member of Polisan Holding and Poliport GM of Poliport Chamber of Shipping, Vice President of Port Opera>ons Commiiee Erol Mizrahi Polisan Holding CEO Fırat Yemeniciler Poliport GM ITU, Chemical Engineer !  IU, Ins>tute for Excellence in Business Educa>on (MBA) !  30 years work experience at Henkel and Cognis a]er spin-­‐off of Henkel !  6 years at Polisan Group ! Kocaeli Chamber of Industry, Board Member Neca\ Hakoğlu !  Turkish Chemical Manufacturers Site Director Associa>on, Board Member !  Turkish Quality Associa>on , Execu>ve Commiiee Member Haceiepe University; Faculty of Economics & Administra>ve Sciences, Department of Economics !  29 years work experience, various managerial posi>ons in Banking and Manufacturing !  HR Director at Polisan Holding since July 2012 Ahmet Türkselçi !  Member of Peryön HR Director ! 
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Haluk Erşen Polisan Kimya GM ! 
ITU, Chemical Engineer (BSc) Polymers Chemistry (MSc) Research Fellow at ITU un>l 1981 Various managerial posi>ons at Yasar Group mul>na>onal JV‘s Joined Polisan Holding in 1994 General Manager of Rohm and Haas, Turkey between 1999-­‐2009 GM of Polisan Kimya since 2009 Board member of Polisan YapıKim POLISAN HOLDING STRATEGY: TO MAXIMIZE SHAREHOLDER VALUE Sustaining Profitable Growth of Exis\ng Businesses Maximizing Intra-­‐Group Synergies Forming Strategic Alliances to Expand in High Margin, New Business Lines U\lizing Holding’s Other Assets in its Porfolio Professional Management Dedicated to Have a High Level of Corporate Governance 6 POLISAN HOLDING: GROWTH ABOVE TURKISH ECONOMY 30.0% 20.0% 10.0% 0.0% -­‐10.0% Polisan Holding 2009 6.4% 2010 19.2% 2011 30.4% 2012 7.8% GDP -­‐4.7% 9.2% 8.5% 2.2% Polisan Holding 7 Source : GDP: h-p://www.imf.org/external/datamapper/index.php Polisan Holding GDP POLISAN HOLDING: CONTINUING TO GROW 2012 Revenue Breakdown 24% 2012 EBITDA Breakdown 15% 2% 1% 27% 9% 58% 65% Polisan Boya (Paint) Poliport Polisan Boya (Paint) Poliport Polisan Kimya (Chemical) Other Polisan Kimya (Chemical) Other Please note pie charts represent combined figures excluding intra-­‐group eliminaAons. 8 TURKEY PAINT INDUSTRY: EUROPE’S 3RD LARGEST MARKET Rela\vely lower consump\on sugges\ng further growth Decora\ve Segment, which has ~60% share, drives growth ~$2 billion Market 7% 6% 3% 2% 10% 58% 14% Italy Great Britain Germany France Decora>ve Wood Metal Spain Turkey Automo>ve Sea Others 19.5 17.0 7.0 1.6 0.5 US France UK Turkey China India § 
Share of Turkish paint market in global revenues: 2% § 
Decora>ve paint produc>on: 520,000 tons/year § 
Per capita paint consump>on: 12 kg (~25 kg in developed economies) § 
Paint produc>on: 850,000 tons/year § 
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Turkey’s Capacity Usage Rate: 61% 90% of decora>ve paint goes to renova>on Per capita decora>ve paint consump>on: 7 kg § 
Facili>es at global standards § 
18 million households available for renova>on § 
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600 producer (20 being large scale) § 
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2 interna>onal brands Earthquake damaged houses need to be renewed § 
The sector is going through consolida>on due to compe>>on § 
Exterior wall insula>on to prevent energy loss is now compulsory Con>nous increase in demand (6% CAGR between 2005-­‐2012): §  Young and growing popula>on §  Decreasing popula>on per household §  100,000 new building permissions each year Kaynak: BOSAD, 2012 iAbarıyla 9 Powder 22.0 POLISAN PAINT: LEADER IN DECORATIVE PAINT SEGMENT Polisan Paint Grows Higher than Market POLISAN’S FIRSTS IN THE SECTOR Polisan 1 INTRODUCED HOME COSMETICS CONCEPT TO THE WORLD 2 PRODUCTION OF TURKEY’S FIRST WATER BASED PAINT WITH MIX MACHINES 3 DESIGNED SHOPS FOR WOMEN TO PROMOTE «BUY-­‐
IT-­‐YOURSELF» HABIT Source: Company data, BOSAD 2012 2011 2010 2009 18% 18% 2012 17% 19% 19% 2011 16% 17% 18% 2010 15% 16% 2009 15% 16% 16% 2008 15% 16% 2007 15% Revenue 2006 5 FIRST IN THE SECTOR TO PRODUCE 7-­‐FEATURE INTERIOR AND 9-­‐FEATURE EXTERIOR PAINT 2008 Leader in Revenue and Volume in Decora\ve Paint 2005 4 LOYALTY PROGRAM AND PAYMENT THROUGH SINGLE POS 2007 2006 2005 53% Volume 10 95% Market DIFFERENTIATION STRATEGY: PAINT IS NOT ALL ABOUT COLOR 1 FOCUS ON RETURN OF SALES CHANNEL 2 ENSURE LOYALTY OF PAINTERS 3 Value for Money 11 MANAGE BRAND PERCEPTION OF CONSUMERS Most Extensive Sales Channel Best Quality & Service High Brand Awareness GROWTH STRATEGY: CONTINUE TO LEAD & PROFITABLE GROWTH GROW IN ALL SEGMENTS IN PAINT § 
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Con\nue to lead decora\ve paint Grow in other business lines INDUSTRIAL LEAD GROWING INSULATION MARKET § 
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FURNITURE MARINE 12 Maintain leadership at package sales Exelans share in total package system: 16% Benefit from EPS business Con\nue superior growth in insula\on market § 
Exelans 2007-­‐2012 package CAGR: 153% EXPAND AUXILIARY PRODUCT BUSINESS § 
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Outsource produc\on of construc\on materials U\lize Polisan sales channel Quality products for painters (Roller, silicon, foam, brush,spray paint...) POLIPORT: STRATEGIC LOCATION WITH 1.2 KM BERTH AVAILABILTY TEM highway Cargo handled in 2013: 3.1 mln ton 3 1 2 3 Dry Bulk and General Cargo Loading & Unloading Bulk Liquid Storage § 
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13 168,000 m3 capacity 127 tanks (size: 100 m3 -­‐ 6,200 m3) Terminal Capacity: 1 .5 million tons Jeiy: 250 mt length, 12 mt wide, dra] 10.5-­‐13.5 mt Accommodate 4 vessels (up to 40,000 DWT) § 
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730 meter quay and pier Width: 40 meter Dra]: 12-­‐24 meter Handling Capacity: 4.5 million tons Accommodate 6 vessels Warehouse Bulk Liquid Storage Bulk Liquid Loading & Unloading Stevedoring Services § 
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Storage and logis>c services in 25,000 m2 Open and closed warehouses Internet access for stocks monitoring TURKEY’S SEABORNE TRADE OUTLOOK: FROM 5. TO 1. IN EUROPE 600,000 CARGO HANDLED IN TURKEY SURGED BY 94% BETWEEN 2004-­‐2012 500,000 387,426 400,000 300,000 200,000 213,105 2004 2005 Holland CAGR -­‐1.6% 2006 UK 2007 Italy 2.6% -­‐0.5% 2008 2009 2010 Spain Turkey 2% 8% 2011 France 2012 Germany 0.5% 1.5% 800,000 699,002 700,000 TURKEY IS EXPECTED TO RANK THE FIRST IN EUROPE BY 2023 600,000 500,000 400,000 300,000 2013 2014 Holland CAGR 14 384,931 1.8% 2015 UK 3.1% 2016 2017 Italy 1.2% 2018 Spain 0.6% 2019 2020 Turkey %5,6 5.5% Source: Company esAmates and Eurostat h-p://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=-r00009&plugin=1 2021 France 2.1% 2022 2023 Germany 1.8% TURKEY SEABORNE TRADE: GROWTH PACE ABOVE 1.5X GDP 2% BY CARGO TYPE: 35.0% 22% 2012: One \me impact of the Governor ‘s decision to relocate coal importers at Kocaeli 30.0% 25.0% 20.0% 17% 32% 27% 15.0% 10.0% General Cargo Container 5.0% BY REGIMES: 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 Bulk Liquid Cars Dry Bulk 14% 2013E 14% -­‐5.0% -­‐10.0% GDP AVERAGE GROWTH: 4.4% Seaborne Trade 7.3% Poliport 72% 12% Foreign Trade Source: Republic of Turkey, Ministry of Transport, MariAme Affairs and CommunicaAons Directorate General of Merchant Marine 15 Transit Cabotage KOCAELİ PORT: POSTED HIGHEST GROWTH AT 12% IN EU IN 2012 TURKEY’S LARGEST PORT (2013) 22% FOREIGN TRADE 19% 4% 13% 4% 5% 5% 8% 10% 22% CARGO HANDLED 11% 16% 3% 3% 15% 4% 10% Kocaeli İskenderun Gemlik 16 11% 8% Botaş Ambarlı Others 8% Aliağa Tekirdağ Mersin İzmir KOCAELI IS AMONG TOP 10 EU PORTS Rank Port Ton (2012) Change 1 Roierdam 441,528 1.6% 2 Antwerp 184,136 -­‐1.6% 3 Hamburg 130,938 -­‐1.0% 4 Amsterdam 94,261 1.3% 5 Algeciras 88,745 6.9% 6 Marseille 85,633 -­‐2.8% 7 Bremen 83,979 4.2% 8 Valencia 66,053 0.5% 9 Le Havre 63,520 -­‐6.0% 10 Kocaeli 61,458 11.7% Source: EU Port Volumes; ESPO (European Sea Ports OrganizaAon) h-p://www.espo.be/images/stories/staAsAcs/espo%20-­‐%20q4-­‐2012.pdf EU Port Growth Rates: Ministere De L’ecologie, Du Developpement Durable Et De L’energie website Data for Kocaeli Port; Republic of Turkey, Ministry of Transport, MariAme Affairs and CommunicaAons Directorate General of Merchant Marine STRATEGY: TAKE THE LION’S SHARE IN GROWING SEABORN TRADE CHEMICAL INDUSTRY § 
Con>nuous growth in Chemical Industry: §  Imports total $25 billion §  With $18 billion, Chemicals Industry ranks the 2nd in Turkey’s total exports 17 NEW OPPORTUNITES § 
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Increasing share of Gulf Region products at Poliport: §  Kuwait, Saudi Arabia, Qatar, Israil, Egypt Capturing share from boos>ng Saudi Arabia chemical exports: §  Petrochemical complexes using aboundant feedstock POLIPORT BUSINESS § 
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Engaging new business ac>vi>es with mul>na>onal companies Building new capacity to reach 271,500 m3 Further capacity increase through reloca>on of Polisan Paint Realizing group synergies with Polisan Hellas CHEMICAL ACTIVITIES: POLISAN; FROM BASEMENT TO ROOF ... POLISAN CHEMICALS § 
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18 Revenue breakdown: §  Formaldehyde resins and Urea: 87% §  Concrete and Cement Admixtures: 9% §  Aus-­‐32 (AdBlue©): 4% New investment: Produc>on of Expandable Polystyrene (EPS) for the insula>on sector ROHM & HAAS (DOW) POLISAN CONSTRUCTION CHEMICALS § 
Marke>ng and sales of: §  Concrete produced by Polisan Chemicals and chemical products for the cement industry § 
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Polisan Chemicals is the 1st emulsion polymer producer in Turkey Rohm & Haas is one of the largest formaldehit resin producers globally §  A JV was formed in 2004 §  Acquired by Dow Chemicals in 2009 Selling and marke>ng of: §  Emulsion polymers §  Their raw materials POLISAN HELLAS § 
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Opera>onal in Greece The sole Polyethylene Terephthalate (PET) resin and preform producer in Greece and Balkan region POLISAN HELLAS: INTERNATIONAL EXPANSION TRANSACTION HIGHLIGHTS Ø 
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19 Polisan Hellas bought 100% of the assets of Artenius Hellas in Greece Polisan Hellas will be controlled by Polisan Holding The sole Polyethylene Terephthalate (PET) resin and preform producer in Greece and Balkan region Capacity: Produc>on of over 80,000 tons/annum of PET resin or boile preforms UTILIZING LOGISTIC SYNERGIES Ø 
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Raw material for produc>on is available at Poliport Polisan Hellas is to increase Poliport’s turnover Polisan Chemicals will e asily market the product in Turkey No immediate financial impact due to consolida>on The company is expected to generate double digit revenues star>ng from 2014 POLİSAN HOLDING’S PROPERTIES: ~TRY620 MLN KAĞITHANE Z OFFICE BUSINESS CENTER: ~TRY112 MLN § 
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Rapid urbaniza>on area, easy access in terms of transporta>on Acces to Çağlayan – Kağıthane road, commercial real estate project Joint Project (DAP Yapı: 58%, Polisan Yapı: 42%) Polisan Holding: 14.200 m2 (309 offices, 64 shops) DAP Yapı already sold out all their offices in 3 weeks Project is expected to be completed as of Q1 2014 KURTKÖY PROJECT: TRY400 MLN § 
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Easy access to the motorway to E – 6 2 km to E-­‐ 5 Pendik junc>on Next to Sabiha Gokcen Airport Property is around 175,000 m2 The price per m² in the region is approximately TRY2,300/
m2 Discussions are underway for a flat for land basis project OTHER ASSETS: ~TRY110 MLN § 
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Proper>es used for investment: ~TRY102 mln Other assets: ~TRY8 mln * Please note above values are not based on experAse value, rather the market prices that the property can be sold at this Ame. 20 POLISAN AGRICULTURE: REVENUES EXPECTED IN 7 YEARS Ø 
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Polisan Holding decided to grow walnuts and almonds in 2010 Polisan Holding has all the necessary cer>ficates for produc>on In talks with Government to purchase and lease land so as to reach 1,000 hectares and 6,000 tons produc>on per year Sales price per kilogram is at least TRY10 The ~1,066,000 m2 land in Balikesir will be used for produc>on 100,000 WALNUTS 21 200,000 ALMONDS FINANCIAL HIGHLIGHTS: BOOST IN OPERATIONAL PROFITABILITY POLISAN HOLDING FINANCIAL RESULTS TRY million FY 2011 FY 2012 YoY (%) Q3 2012 Q2 2013 Q3 2013 YoY (%) QoQ (%) Revenue 471.4 507.9 7.8% 119.5 184.9 147.2 23.2% -­‐20.4% EBITDA 64.8 75.5 16.5% 18.5 35.2 25.4 37.4% -­‐27.9% 13.8% 14.9% 1.1 pp 15.5% 19.0% 17.2% 1.8 p.p. -­‐1.8 p.p. 4.1 48.9 n.m. 10.7 12.2 8.9 -­‐17.6% -­‐27.5% EBITDA Margin Net Income § 
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In 3Q13, Polisan Holding increased its revenues by 23.2% YoY §  Growth in all major business lines, par>cularly Paint Segment Polisan Holding recorded a solid EBITDA Margin of 17.2% in 3Q13 Higher profitability in Paint business compared to a year ago 17.6% decline in net income compared to 3Q12 §  Increasing financial expenses due to f/x denominated liabili>es § 
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22 POLISAN HOLDING: 2013 TARGETS CONSOLIDATED HOLDING TARGETS Revenue Double Digit Growth EBITDA Maintaining Profitability 23 Growth mainly driven by higher Polisan Paint and Poliport revenues Maintaining profitability at current levels BACK UP POLISAN HOLDING: MILESTONES 2013 Launch of Polisan POS Loyalty Programme Introduced «Home Cosme>cs» concept globally 2008 2006 Launch of Mix Centers Headquarters moved from Dilovası to Istanbul 1994 1985 1975 The first manufacturer of Formaldehyde in Turkey The first manufacturer of emulsion resins in Turkey Launch of Şark Mensucat at Kağıthane 1971 1968 1964 1961 1956 25 First tex>le plant at Zey>nburnu Establishment of Poliport 2004 2000 2012 2011 2009 Produc>on of concrete addi>ves and AdBlue© SOCIAL RESPONSIBILITY PROJECTS: TARGETING WOMEN Every Voice is a Breath 26 Dance with Polisan Everything for Lizle Hearts TURKEY: 13TH MOST ATTRACTIVE FDI DESTINATION IN THE WORLD Ø 
6th largest economy in the EU Ø 
Ins>tu>onalized economy fueled by $123 billion FDI in the last decade Ø 
Infla>on at single digits Ø 
Turkey is now at investment-­‐grade ranking 27 Source: www.invest.gov.tr Turkish StaAsAcal InsAtute (TurkStat) GROWING ECONOMY WITH A YOUNG POPULATION USD 786 billion (2012-­‐Current Prices) GDP GDP Per Capita USD 10,504 (2012) Popula>on 75,627,384 (2012) Exports Value USD 153 billion (2012) Imports Value USD 237 billion (2012) Foreign Direct Investment USD 12.4 billion (2012) Infla>on Rate 6.2% (CPI-­‐2012) TURKEY: 16TH LARGEST ECONOMY IN THE WORLD 5.0 AVERAGE ANNUAL REAL GDP GROWTH (%) 2002-­‐2012 Real GDP growth of 5% on average between 2002 -­‐ 2012: Ø 
Increasing role of private sector Ø 
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Social security system on a more solid founda>on Ø 
Solid macroeconomic fundamentals 28 3.6 3.5 Turkey Chile Slovakia Poland Brazil Bulgaria 2.9 Czech Republic South Africa 2.5 Mexico Source: www.invest.gov.tr Romania 1.6 US 1.1 1.0 Euro Area (17) Hungary 0.8 Japan 3.3 3.5 4.3 4.5 4.7 TURKEY: ECONOMY IS TO CONTINUE TO GROW Con\nuing GDP growth Increasing Foreign Trade Volume Single digit infla\on 6% 8% 7% 9% 5% 2002 2003 2004 2005 2006 2007 2008 $ billion 88 117 2002 2003 161 190 225 2004 2005 2006 9% 1% 1 277 2% 4% 4% 2012 2013E 2014E -­‐5% 2009 334 2007 2008 2010 243 2011 299 2009 2010 7% 6% 2009 2010 376 389 367 2011 2012 Nov-­‐13 30% 18% 2002 29 9% 5% 2003 9% 8% 10% 8% 10% 2004 2005 2006 2007 2008 Source: GDP: h-p://www.imf.org/external/datamapper/index.php Turkish StaAsAcal InsAtute (TurkStat) 10% 2011 6% 7% 2012 2013