Vestel Presentation

1
Beyaz EsyaSanayi ve Ticaret A.S.
August 2007
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Company Profile

• A leading designer and manufacturer of a broad
  range of white goods
• refrigerators, washing machines,
  air-conditioners, ovens and dishwashers
• Capitalising on Vestel Groups past experience
  and reputation in consumer electronics
• Revenues of USD783mn and EBITDA of USD94mn in
  2006.
• Focusing on export growth by providing value
  added OEM/ODM services to customers in Europe
• manufacturers (eg Fagor, SMEG, Whirlpool,
  Electrolux, Candy, Vestfrost, GE, Gorenje, Glen
  Dimplex)
• retailers (eg Carrefour, Metro, Conforama,Quelle,
  Aldi, Otto)
• distributors (eg Jama, Zora)
• Strong brand name and market position at home
• market share ranging between 15-18 for various
  white goods products in the domestic market
• Operates through 1,250 excl. dealers 570
  dedicated after sales service points in the
  domestic market
• while Vestel Groups eight offices located
  across Europe provide proximity to major export
  customers

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Product Development
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Road Map (Refrigerators)
Target Products
THERMOFORM DOOR
ENERGY EFFICIENCY
NEW ENERGY CLASS
LOW NOISE LEVEL
ALTERNATIVE ENERGY SOURCES
A
A
NEW GENERATION VACUUM INSULATION PANEL PRODUCTION
INTELLIGENT FRIDGE
NEW COOLING SYSTEM TECH. REVOLUTION
SIDE BY SIDE
ULTRA HIGH SEGMENT
FROST-FREE COMBI
2007 2008 2009 2010 2011
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Road Map (Washing Machines)
Target Products
IMPROVEMENT OF WASHING PERFORMANCE OF COTTON 40
V.B. PROGRAMS
HIGH LEVEL HYGIENE
SHORTER TEST PROGRAMS
HIGH SPEED WASHING PROGRAMS
NEW CLEANING TECHNOLOGIES
MACHINES WITH WIDER DOORS
MACHINES COMPATIBLE WTIH AUSTRALIAN ENERGY
EFFICIECY STANDARDS
SUPER SILENT MACHINE
SMART MACHINE
A MACHINES WITH 7KG CAPACITY
A MACHINES WITH 6KG CAPACITY
2007 2008 2009 2010 2011
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Road Map (Ovens)
Target Products
PYROLYTIC OVENS
ANTI-OXIDANT COOKING TECHNOLOGY
SMART OVENS WITH ODOUR SENSORS
OVENS WITH ELECTRONIC CONTROL
OVENS WITH TOUCHSCREEN CONTROL
70cm HOBS
STEAM OVENS
INDUCTION HOBS
GAS HOBS WITH TOUCHSCREEN CONTROL
50X50 ELECTRICAL OVENS
45cm (SLIM TYPE) OVENS
INDUCTION OVENS
DOUBLE OVENS
2007 2008 2009 2010 2011
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Road Map (Dishwashers)
Target Products
A
REDUCTION IN DETERGENT CONSUMPTION LEVELS
REDUCTION IN WATER CONSUMPTION LEVELS
LOW NOISE LEVEL
ENERGY EFFICIENCY
45cm (SLIM TYPE) DISHWASHERS
60cm SOLO BUILT-IN, FULLY BUILT-IN DISHWASHERS
DISHWASHERS SUITED FOR THE AMERICAN MARKET
2007 2008 2009 2010 2011
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Market Trends

• Low growth rates, high penetration levels,
  combined with margin pressure due to increasing
  cost of labour and raw materials
• limited opportunities for top-line growth for
  traditional white goods manufacturers
• Cost cutting is one of the key available
  mechanisms for enhancing profitability
• move to low cost countries, outsourcing and
  consolidation
• B brands among retailers are growing
• European Manufacturers reduce the number of
  production platforms in Europe and shift
  manufacturing to low cost countries.
• Vestfrost closes down its factories and starts
  purchasing from Vestel White Goods
• Electrolux closes down its production facilities
  in Italy and shifts manufacturing to Poland
• Whirlpool considers exit from production in
  Western Europe.

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Business Strategy

• Exploit position as the exclusive OEM/ODM only
  producer in the European market
• Pursue branded marketing strategy in the
  countries at the Turkish time zone
• Provide highly differentiated products to
  different customers
• Broaden product offering, invest in new moulds
• Continually improve Vestel products and operating
  processes focus on energy efficient, noiseless,
  environmentally friendly products

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gra
Vestel White Goods

• Production Capacity on a rising trend

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gra
Vestel White Goods

• Ongoing Investments

• 2007 Investment Program
• Refrigerator Plant USD 18mn Process
  Development, Efficiency,
• Thermoform machine, door polyurethane machine,
  RD side by side
• project, ultra high segment project, new moulds
• Washing Machine Plant - USD 14mn Process
  Development, RD,
• new product moulds
• Air Conditioner USD 0.9mn RD, new moulds
• Cookers USD 11.7mn 2 Press Machines, RD,
  Double Oven Project,
• New product moulds
• Dishwashers USD 4.4mn - Process Development,
  RD, new product
• moulds

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Vestel White Goods

• Revenue Breakdown - Increasing product offering
  - recent addition of ovens adds of dishwashers
  in 07

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Vestel White Goods

• Domestic Sales (units) Capitalising on strong
  brand name...

• Market Share Domestic Market

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Vestel White Goods

• Exports (units) Exploit position as the
  exclusive OEM/ODM only producer in Europe

• Vestel Market Share in Exports from
  Turkey ()

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grain
Vestel White Goods

• Total Sales (units) Strong growth in line with
  ongoing capacity expansion new product
  investments coupled with companys aggressive
  sales efforts

FY07 Revenue Target US1.0bn
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Vestel White Goods

• Appendix 1 Shareholder Structure

• 4.1 also owned by Vestel Elektronik

• Vestel White Goods products are sold
  through Vestel Foreign Trade (exports) and Vestel
  Domestic Marketing, both of which are Vestel
  Elektroniks 100 owned subsidiaries.
  Additionally, there is shared management
  expertise at the executive board level.

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Vestel White Goods

• Appendix 2 Balance Sheet Summary

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Vestel White Goods

• Appendix 3 Income Statement Summary

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Vestel White Goods

• Appendix 5 Short FX Position

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Vestel White Goods

• Appendix 7 Breakdown of cost of goods sold
  (2006)

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Vestel White Goods

• Appendix 8 Currency Breakdown of Revenues and
  Purchases (2006)

• Purchases (US554mn)

• Revenues (US783mn)

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Vestel White Goods

• Appendix 9 Raw Materials Expenditure (2006)

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Vestel White Goods

• Appendix 10 Share of suppliers in Manisa
  (production base) within total domestic
  procurement

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Vestel White Goods

• Appendix 11 Domestic Market Share Evolution

• 2000 2006

• Refrigerators

• Washing Machine

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Vestel White Goods
Brands owned by manufacturers (exports)

• 
  
  

Brand spectrum

• 
  
  

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Vestel White Goods

• Disclaimer Statement

The information and opinions in this document
have been obtained by Vestel Beyaz Esya A.S. from
sources believed to be reliable however, Vestel
Beyaz Esya does not guarantee the accuracy,
correctness or completeness of such information.
The Company does not accept any liability
whatsoever for any direct or consequential loss
arising from any use of this document or its
contents. All estimates contained in this
document are the opinions of the Company and can
be subject to change without notice. The
information contained in this document is
published for the assistance of recipients it
can not be interpreted as an advice to the
investors and the Company can not be held
responsible for the results of investment
decisions made on account of this document. This
document is strictly confidential and may not be
reproduced, distributed or published for any
purpose.