Beer Group President and Anadolu Efes CEO Can Çaka’s Comments

“I am deeply saddened by the devastating earthquakes which took place on February 6th affecting millions of our citizens in 11 cities of Türkiye. I would like to express my sincere condolences to the ones who lost their families or relatives and wish rapid recovery for the ones who were wounded. It is a consolation for us to know that none of our employees lost their lives; however we feel sorrow for the colleagues and business partners who lost some of their relatives. As soon as we heard about the earthquake, our first focus has been the health and safety of our employees, business partners and their relatives. In the framework of solidarity, we have been working in coordination with employees, business partners, local municipalities and NGOs in order to provide social aid for people who were affected and we will continue our efforts to meet their needs. The recovery will take time but we will be healing our wounds together; in solidarity.” commented Mr. Can Çaka, Beer Group President and Anadolu Efes CEO.

We have concluded a year of challenges and now heading to another one. We are pleased to have finished such a difficult year with exceptional results with consecutive improvements in expectations in every quarter. We managed to beat our own expectations in almost all lines, reaching record high levels in financial metrics. We reported the highest consolidated EBITDA (BNRI) margin in the last 10 years, despite facing inflationary pressures in many of our operating markets. I would also like to share that our Board of Directors proposed TL 1.3 billion dividends for 2022.

Throughout the year, beer group volumes were resilient except for Ukraine. Volume pressures in certain markets were offset by the others; thanks to our geographical diversification. In terms of product diversification, it was encouraging to see the good results delivered in NABLAB2 and beyond beer categories in almost all of our beer operations. In soft drinks, successful integration of Uzbekistan and solid momentum achieved by the key international markets led to sound operational performance.

In Russia, there was a volume trend turnaround from strong demand in 1H to a decline in 2H resulting a year-on-year flat volume performance in the market. Our volumes were slightly below market as a result of our volume-value balance strategy throughout the year which led us to report a very strong operational margin in international operations. In Türkiye, 2022 was a year of success in terms of our volume performance. Market growth and our execution initiatives led us to reach to this superior performance. Together with the strong performance recorded in international beer, we were able to achieve more than 600 bps of margin expansion in beer group.

Our operations and financials are in good shape and we are confident to deliver another year of sound results, thanks to our agile approach to the business and adaptability. We will continue to invest on our operating markets, focus on brand portfolio, do scenario planning in all streams, stick to our financial policy and tight expense management while taking necessary actions in terms of risk management.

I must thank all my colleagues, business partners and stakeholders for being with us along this journey, for their endless efforts and dedication to break new records and beat our own success.