Polisan : FY2023 Presentation

FY2023

FINANCIAL RESULTS

PRESENTATION

April 3, 2024

This Investor Presentation ("Presentation") is prepared solely to provide information to the shareholders, and is not intended to form the basis of

any investment decisions. The realization of forward-looking opinions DISCLAIMER and estimated figures in this Presentation may differ depending on the variables and assumptions on which the relevant estimates are based.

Accordingly, Polisan Holding, and its Board members, advisors, or employees shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in, or omission from, this Presentation, or on any other information or communications in connection with the Presentation. All information contained in this Presentation was believed to be accurate at the time of publication. Polisan Holding accepts no responsibility for any spelling or printing errors that may occur during the Presentation's preparation. Percentage changes in the presentation are calculated taking all digits into account, rather than rounded figures.

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POLİSAN HOLDİNG: INNOVATIVE AND PIONEERING SOLUTIONS FOR OUR SECTORS

Chemical Activities

Polisan Kimya %100

Polisan Yapıkim Yapı Kimyasalları %100 (*)

Foreign Partnership

Rohm & Haas (**)

Polisan Holding %40

Dow Chemical %60

Operations Abroad

Polisan Hellas %100

Port Operations

Poliport %100

Real Estate

Polisan Yapı (***) %100

Paint

Foreign Partnership

Polisan Kansai Boya (**)

Polisan Holding %50

Kansai Paint %50

1. Polisan Kimya's construction chemicals activities are carried out by Polisan Yapıkim Yapı Kimyasalları San. ve Tic. A.Ş. with the same partnership structure, as of September 30, 2022. (**) The shares represent Polisan Holding's direct and indirect stake in the related group companies. Rohm and Haas Kimyasal Ürünler Üretim Dağıtım ve Ticaret A.Ş. (Rohm and Haas) is an associate and Polisan Kansai Boya Sanayi ve Ticaret A.Ş. is a joint-venture of Polisan Holding, whereas other holding companies are subsidiaries.

3 (***) Polisan Holding's two subsidiaries merged by the acquisition of Polisan Yapı with all its assets and liabilities as a whole, without liquidation, by Poliport. The registration process has been completed on July 29, 2022. The title deeds of Kağıthane and Pendik have been registered in Poliport's name.

POLİSAN HOLDİNG: SUSTAINABLE GROWTH FOCUS

Port Operations

• Liquid cargo investment for 19.600 m3 was completed in May 2023 and an increase in capacity utilization rate was achieved.
• The 5,850 m³ liquid cargo investment approved in November will be completed in September.
• The strategic plan to increase liquid cargo capacity to 436,000 m3 (EIA approval has already been granted)
• Focus on higher value added products in liquid and dry cargo operations.
• Turkish State Railways (TCDD) project: increasing product diversity and volume in dry cargo by obtaining a railway connection to the port

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Chemical Activities

POLİSAN KİMYA

• 190k ton new resin plant with Industry 4.0 standards (2022:150k tons)
• Investment plan for high value- added resin derivatives
• Plan to grow in EMENA region and widen the product range in different sectors
• Strategic partnerships with foreign firms in similar business lines.

POLİSAN YAPIKİM

• Strong domestic demand with the acceleration of urban transformation
• Adana PCE investment that will increase the polymer capacity to 50k tons
• Plan to increase exports through strategic partnerships

POLİSAN HELLAS

• Evaluation of strategic cooperation and models

Paint

• High-capacityand efficient production facility aligned with Industry 4.0 standards
• Growth above the market in the decorative segment.
• The investment in the new technology-equipped junior GEBKİM solvent-based paint facility has become operational (annual water/solvent paint production capacity of 40k tons)
• Export-orientedgrowth with a 10% export/sales target
• Revenue increase in road paints through highways and local government tenders

Real Estate Portfolio

• Follow up developments on Pendik Project
• Completion of Z Ofis Project sales (25 offices and 24 stores)
• Disposal of non-strategic real estate assets

Sustainability

• UN Global Compact Turkey Board Membership
• Focus on 10 principles involving human rights, employee rights, environment, and anti-corruption
• 2023 ESG Score: 72
• Ranked 57th among 425 global chemical companies participating in the evaluation
• Percentage of electricity consumption covered by I-REC certified renewable energy sources in 2022: 60%
• The goal of achieving zero Scope II emissions by 2025
• Reduction in Scope I and II emissions since 2019 by 46%
• Carbon neural target: 2053

POLİSAN HOLDİNG: FY2023 CONSOLIDATED FINANCIAL RESULTS (*)

Consolidated Revenue Breakdown	Consolidated Revenues (TL mn)

PET

23.8%
Other 8.0%	Chemicals
26.9%
19.8%
Construction Chemicals	21.6%
	Port

Consolidated EBITDA Breakdown

Chemicals

PET	10.1%
-3.3%
Other	68.6%Port
	3.8%

20.9%

Construction Chemicals

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2023	5,604
	9A 23
	-26%
2022	7,612

Consolidated EBITDA* (TL mn)

2023 9A 23	997
		-16%
2022		1,190

Consolidated Net Income (TL mn)

2023		748	1Ç 23
	9A 23
	-66%
2022		2,182

(*) Polisan Kansai Boya and Rohm & Haas are accounted for using the equity method.

POLİSAN HOLDİNG: FY2023 CONSOLIDATED FINANCIAL RESULTS

Operational

2,182

Non-Cash + One off items

-86	Current year
	Tax Exp.
-485	Deferred
	Tax Exp
-572	TL1.3 bn			-1,434
TL million	-732	63
209	-101	-46	748
	-63
			-193

Net Profit 2022 Tax expense	Income/Exp. Depreciation	Monetary	Net Financial	Income from	Other	EBITDA	Net Profit 2023
	Investment	Gain/Loss	Exp.	Equity meth.	Income/Exp
	Activ.

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Tax:

1. The impact of changes in tax and exemption rates on 2023 and prior years;
2. Classification of the tax effect of the TFA revaluation reserve from Equity to 2022 Profit/Loss

Income/Expense from Investment Activities:

1. The significant increase in the Pendik land valuation following the acquisition of zoning permission in 2022,
2. TL198 mn impairment for fixed assets: Classification of value increases shown under Equity to Previous Year Profits due to the transition to inflation accounting, and the presentation of the 2023 value change under Profit/Loss as cannot be net off.

Profit/(loss) from investments accounted using the equity method:

1. The impact of changes in tax and exemption rates on 2023 and earlier
2. The tax impact of the tangible fixed assets revaluation fund's classification from Equity to 2022 Profit/Loss

POLİSAN HOLDİNG: FY2023 CONSOLIDATED FINANCIAL RESULTS

1,190
					-193
			20	38	997
	-210	-40
TL mn
EBITDA 2022	Hellas	Holding	Poliport	Kimya & Yapıkim	EBITDA 2023

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Hellas: The contraction in demand for PET products in 1Q led by the recession in Europe, and the impacts of the flood disaster that occurred in September.

EBITDA without IAS 29 impact
		+116%
380			655
303	243
1H2022	2H2022	1H2023	2H2023

POLİSAN HOLDİNG: FY2023 COMBINED FINANCIAL RESULTS (*)

Combined Revenues Breakdown

Others Paint

5.3%

PET29.7% 15.8%

13.1%

Construction Chemicals

21.7%

14.3% Chemicals

Port

Combined EBITDA Breakdown

Chemicals

Paint 8.8%

	Combined Revenues (TL mn)
2023		8,775
	9A 23	-17%
2022		10,612
	Combined EBITDA* (TL mn)
2023 9A 23	1,187
			-14%
2022		1,383

Others

15.4%

Combined Net Profit (TL mn)

PET 3.2% -2.8%

57.9%

17.6%Port

Construction Chemicals

2023 733

9A 23	-76%

2022 3,085

8 (*) Provided by consolidating the standalone financial statements of the company before elimination. Subsidiaries Polisan Kansai Paint and Rohm and Haas have been included based on Polisan

Holding's partnership shares of 50% and 40%, respectively in these companies. Previous year financial statements have been rearranged accordingly

POLİSAN HOLDİNG: FY2023 CONSOLIDATED FINANCIAL RESULTS

REVENUES (TL mn)

	-26%
7,612
	5,604
2022	2023

EBITDA* (TL mn) & EBITDA Margin (%)

18%

16%

-16%

1,190	997
2022	2023

NET PROFIT (TL mn)

	-66%
2,182
	748
2022	2023

INVESTMENT EXPENDITURES (TL mn)

	-25%
461
	345
2022	2023

Revenues declined by 26% in FY2023

+ Yapıkim: Increased domestic demand and acquisition of new customers

+ Port: The effect of exchange rate increases on USD revenues, price increases in USD terms, and handling of higher value-added products

- Chemicals: Decreased sales prices in the first half of the year and shrinking domestic and international demand

- PET: Decreased PET revenues due to shrinking demand.

- PET operations halted in September due to

EBITDA Margin up by +2 p.p.

• Narrowing of the inflation-exchange rate gap and increase in sales prices (chemicals, construction chemicals, and port)
• Hıgher share of high-margin products in Port and Construction Chemicals operations
• Increased sales volume effect in Port and construction chemicals
• Lower PET and Chemical export revenues due to low demand
• Higher personnel expenses, compensations, and EYT (early retirement) payments.

Net Profit TL748 mn

+ EBITDA rise in H2, offsetting H1

shortfall.

+ Effective working capital management

+ Lower finance expenses despite higher

financing cost

- Real estate value changes (the effect of

the zoning permit for the Pendik land)

- Impairment of fixed assets not netted

from equity funds (TL198mn)

- Changes in tax and exemption rates /

Funds classified from Equity to

Profit/Loss (2022)

Investment spendings postponed

• Poliport's second tank farm renewal and modernization investment
• Reduced H1 investments due to elections and earthquake

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flood.

POLİSAN HOLDİNG: CONSOLIDATED BALANCE SHEET & FX POSITION

BALANCE SHEET SUMMARY

TL MN	31.12.2022	31.12.2023
Current Assets	3.221	2.083
Non-current Assets	10.780	11.854
TOTAL ASSETS	14.001	13.938
Short-Term Liabilities	2.597	1.878
Long-Term Liabilities	1.124	799
Equity	10.280	11.260

FX - LOCAL CURRENCY BREAKDOWN

(TL mn)				FX			TL
Cash	ST Debt**			LT Debt**
	16%
420	700	3%	170			6%
TL mn			TL mn
TL mn

84%

97%94%

**Toplam 870 mTL olan KV+UV borcun %68'I (592 milyon TL), para birimi Euro olan Polisan Hellas'a aittir.

TOTAL LIABILITIES & EQUITY

14.001

13.938

Net Debt(*)/EBITDA
	0,6
	0,3
	574
(TL mn)	344

NET FX POSITION

US$

2

EUR

-2

-4

-8

10	2022	2023	2022	2023

*Net debt/EBITDA is calculated annually, on a rolling basis and the amount of Net Debt is indicated in the columns in TL mn. (**) ) Short and long term financial debt exclude IFRS 16 effects.