Lila Kagit Sanayi Ve Ticaret Anonim Sirketi · BIST:LILAK
Lila Kagit Sanayi Ve Ticaret Anonim Sirketi — Lila Kağıt — Investor Presentation (May 2026)
50 slides from Lila Kagit Sanayi Ve Ticaret Anonim Sirketi's investor presentation, May 2026
Slide 1: Investor Presentation 2026
INVESTOR PRESENTATION 2026 1
Slide 2: Legal Notice
Legal Notice Pursuant to the Capital Markets Board (CMB) Bulletin dated December 28, 2023, and numbered 2023/81, it was publicly announced that issuers and capital market institutions subject to the CMB’s financial reporting regulations are required to implement inflation accounting in accordance wi
Slide 3: Agenda
AGENDA WHO WE ARE 4-6 WHAT WE DO & HOW WE DO IT 7-10 KEY STRATEGIC PILLARS 11-14 GROWTH & OPPORTUNITIES IN THE SECTOR 15-24 BUSINESS SEGMENT OVERVIEW 25-30 FINANCIAL OVERVIEW & PERFORMANCE 31-37 CAPITAL ALLOCATION POLICY 38-44 SUSTAINABILITY STRATEGY 45-46 2026 GUIDANCE & CLOSING REMARKS 47-49
Slide 4: Who We Are
WHO WE ARE Investor Presentation ‘26
Slide 5: From Today to Tomorrow: Sustainable Growth with Strong Fundamentals
From Today to Tomorrow: Sustainable Growth with Strong Fundamentals A growing industrial powerhouse with productivity and sustainability focus since foundation 2017 - 2024 2025 - 2028 ➢ TM3 and TM4 investment ➢ Erzurum factory investment 2009 - 2016 2006 - 2008 (Gross 271k tons/year (Gross +70k tons
Slide 6: Strong Shareholder Structure and Sound Corporate Governance
Strong Shareholder Structure and Sound Corporate Governance Free Float Composition of BoD %17 7 Members %56 (3 Independent) %27 ÖĞÜCÜ Family Azimut Portfolio Equity Hedge Fund Corporate Governance Rating (*): 8.75 JCR Credit Rating Score (**) : AA+ Member of BIST Corporate Governa nce Index *As of 1
Slide 7: What We Do & How We Do It
Stila Kagit WHAT WE DO & HOW WE DO IT
Slide 8: Leader Hygenic Tissue Paper Player with Export to +80 Countries
Leader Hygenic Tissue Paper Player with Export to +80 Countries… Diversified Business Model with Market Depth and Brand Variety Geography Portfolio Business model Brands Channel Volume Share (*) B2C ~25% TÜRKİYE Retail Away From Home HYGENIC TISSUE PAPER PRODUCTS B2B ~25% & Converting REGIONAL MARKE
Slide 9: With an End to End Production Process
With an End to End Production Process… We carry out production at every stage, from raw materials to final products, guided by the principles of quality, sustainabi lity, and efficiency. Investor Presentation ‘26 9
Slide 10: Generating Sound Operational & Financial Figures (FY2025)
Generating Sound Operational & Financial Figures (FY2025) 300.000 271.000 TM1, TM2, m2 Tonnage /Year TM3 and TM4 TL 13.6 Billion TL 9.1 Billion 73%* Gross Paper 4 paper Net Sales Export Production Plant Export Ratio Production Capacity production lines A total of 26 production lines, 10. including 7
Slide 11: Key Strategic Pillars
Stila Kagit KEY STRATEGIC PILLARS
Slide 12: Strategic Priorities Enhance Our Competitive Advantage
Strategic Priorities Enhance Our Competitive Advantage … A scalable model for sustainable profitability, powered by integrated production, data-driven management, and financial discipline 01 05 02 03 04 Automation and Tech Sustainable Value Strong & Trusted Sustainability & Growing Business Driven E
Slide 13: Based On Simple & Value Driven Structure Immune to Volatility
Based On Simple & Value Driven Structure Immune to Volatility… TR- Tissue Paper Export price -$/Ton (*) TR- Pulp Import Price - $/Ton (*) Gross Profit Margin Multiplier COGS Breakdown JUMBO ROLL ~ 65% Pulp ~ 15% Energy Overhead s ~ 10% incl. labor ~ 10% D&A 1.8x – 2.0x Sep-23 Jan-23 May-23 Jun-23 Ja
Slide 14: Yielding Consistent & Strong Liquidity in Challenging Landscape
Yielding Consistent & Strong Liquidity in Challenging Landscape Throughout the pandemic, supply chain crisis, and geopolitical uncertainties, we maintained financial discipline, de -levered and built a solid foundation for sustainable growth with a strong liquidity position . Net Debt/EBITDA Covid -
Slide 15: Sector Growth & Opportunities
SECTOR GROWTH & OPPORTUNITIES
Slide 16: Stable Demand Increase and Long-Term Growth in the Sector
Stable Demand Increase and Long-Term Growth in the Sector… Rising per -capita consumption, improving living standards and the expansion of modern retail channels continue to support growth momentum across both global and local markets. Türkiye is strengthening its position as a strategic manufacturi
Slide 17: Creating a Growing Tissue Paper Economy on a Global Scale
Creating a Growing Tissue Paper Economy on a Global Scale … North America and Western Europe lead tissue paper consumption, while Asia -Pacific and the Middle East are fast -growing markets . Annual Tissue Paper Consumption Globally Target Markets’ Consumption 47+ Million Tonnes %60 Middle East Afri
Slide 18: Tissue Demand Growth Also Driven By Rising Per Capita Income
Tissue Demand Growth Also Driven By Rising Per Capita Income … Emerging Markets including Türkiye has lower per capita consumption compared to world average KG/Capita vs. GDP/Capita Nominal 14,00 Greece 12,00 China Romania GDP Per Capita above $5,000 opens Mexico door to higher Tissue Consumption Ti
Slide 19: High Growth Potential in Our Key Markets, Supported by Two Factories
High Growth Potential in Our Key Markets, Supported by Two Factories Our key markets have low per capita consumption, strong growth prospects within reasonable geographical proximity. 100m population 1.7m ton Market potential 750k ton market Ergene Factory Erzurum Factory * 90m population 650k ton m
Slide 20: Stronger Domestic Market Prospects with Higher Demand and Capacity Investments
And Stronger Domestic Market Prospects with Higher Demand and Capacity Investments Continuous investmentsdrive capacity expansion, reinforcing the country’s position as a regional leader in the industry. Türkiye Tissue Paper Sector Türkiye Tissue Machine Production Lines 1.600.000 120% 1970-2025 1.4
Slide 21: Sector's Global Direction: Balance of Opportunities & Risks
Sector’s Global Direction: Balance of Opportunities & Risks … Structural demand growth and innovation are driving the sector forward, while fluctuations in energy and raw material costs, environmental regulations, and trade uncertainties necessiate a strategic perspective essential Challenges and Ri
Slide 22: Also Effected By Changes in Wood Pulp Supply Dynamics
Also Effected By Changes in Wood Pulp Supply Dynamics… New facilities will boost global supply, while shutdown of high -cost production lines may limit price volatility. This transitio n will shape wood pulp cost trends. St or 3600 Wood Pulp Capacity Change (000’ ton) a E Hardwood Arauco n 3200 Soft
Slide 23: Positioning Tissue Paper as Driving Force of Türkiye Paper Exports
Positioning Tissue Paper as Driving Force of Türkiye Paper Exports … Türkiye’s strong production capacity supplies not only domestic demand but also global markets —a sector expanding with jumbo rolls and converting products, standing out in regional competition Türkiye Paper Export Breakdown Jumbo
Slide 24: And Bringing Export Leadership in 2025
And Bringing Export Leadership in 2025 • Lila Kağıt accounted for 26% of 45% 45% 33% Türkiye’s tissue paper exports. (1) 29% • Export markets accounted for 73% 14% 2025 of our total sales volume (kTon). 12% 2024 2024 2025 8% 6% • The converting business maintained its strong momentum, 2024 2025 2024
Slide 25: Segment Overview
Stila Kagit SEGMENT OVERVIEW
Slide 26: Jumbo Roll; Export Oriented Segment
Jumbo Roll ; Export Oriented Segment… Grew 4 pp above Türkiye’s average in the last five years with positive momentum in developed and developing markets Jumbo Roll Export (kTon) U.K. EUROPE Lila Kağıt - Jumbo Roll NORTH&SOUTH %50 %23 TR- Jumbo Roll Export Tonnage Export Tonnage (1) AMERICA +%7 ASIA
Slide 27: Converting; Growth Engine With Branded Product Exports
Converting ; Growth Engine With Branded Product Exports … By feeding our converting capacity with branding and private label production strategies, we are building a sustainable growt h model in exports. Our goal is to stand out in every market with high value -added products tailored to local consu
Slide 28: Entry Into New Markets with Higher Capacity
Entry Into New Markets with Higher Capacity … With our new Erzurum production facility and premium product portfolio, we are expanding our brands to more countries, aiming for over 50% growth in export sales volume Regional Power Strategic Positioning Sustainable Growth with New Capacity with Export
Slide 29: Driven by Value Added Products Strengthening Quality Growth Pillar
Driven by Value Added Products Strengthening Quality Growth Pillar … Converting Strategy Shaped by Profitable Growth and Premium quality, high durability, and innovative products Focus on Premium Products 1 1 Lila Kağıt Export Share(*)/Tonnage +%21 2 %47 +%7 Lila Kağıt 1 16% Value Added Products 14%
Slide 30: With Double Digit Market Share Ambition in Türkiye
With Double Digit Market Share Ambition in Türkiye Lila Kağıt ranks among the top three players in the Türkiye hygienic tissue paper market with Maylo,Ultra Berrak and Sophia representing approximately ~ 25% of its total sales volume. TR Company Revenue Shares in the Tissue Paper Market 33,9% • Mark
Slide 31: Financial Performance 2025 FY
FINANCIAL PERFORMANCE 2025 FY
Slide 32: Strong Financial Results with Profitability Focus
Strong Financial Results with Profitability Focus … (1) GROSS MARGIN Adj. EBITDA MARGIN NET INCOME MARGIN 27.7% (+68bp y/y) 4Q25 18.1% (-46bp y/y) 4Q25 7.5% (+259bp y/y) 30.1% (+196bp y/y) FY25 22.8% (+84bp y/y) FY25 12.5% (+314bp y/y) 35% sales tonnage increase in value added mix Strong operational
Slide 33: Backed By Strong Balance Sheet with Tight Financial Management
Backed By Strong Balance Sheet with Tight Financial Management … 116 122 Net Cash (mTL) Net Cash/EBITDA 4.2 Billion TL Strong Net cash Position 2,000 82 Trade Receivables (day) 79 9000,0 1.61 63 70 1,5000 • In 2025, financial debt; 26% Inventories (Day) 1.32 7000,0 1,000 denominated in USD and 30 Tr
Slide 34: And Sound Margin Outlook with Branded Product Contribution
And Sound Margin Outlook with Branded Product Contribution … Net Revenue Bridge (mn TL) Adj. EBITDA Margin 16.385 -983 654 13.604 +196 bp -1.728 +120 bp %22,8 -725 %21,9 +18 bp -251 bp 2024 Price/product mix Volume Price/product mix Volume 2025 Net Revenue (exports) (exports) (domestic) (domestic) N
Slide 35: Generating Strong Cash Flows and Prudent Capex Focus
Generating Strong Cash Flow s and Prudent Capex Focus… Cash Flow From Operations(mTL) Capex (mTL) Capex/Net Revenue Cash Flow From Investments(mTL) 15% 1900,0 11,3% Free Cash Flow(mTL) 1700,0 10% 5.133 1.537 5,6% 4.225 1500,0 05% 3.088 1300,0 2.131 1100,0 00% 922 900,0 -05% 700,0 500,0 -10% -908 202
Slide 36: Bringing Superior Financial Structure in the Sector and BIST Index
Bringing Superior Financial Structure in the Sector and BIST Index … Lila Kağıt BIST KAGT BIST INDUSTRIALS 30,1% 2025 FY 29,1% • Positive performance in Gross Margin, EBITDA 26,2% Margin, and Net Profit Margin driven by value - added products and effective cost management 23,0% • Positive Free Cash
Slide 37: Also Well Positioning Lila Kağıt Among International Benchmarks
Also Well Positioning Lila Kağıt Among International Benchmarks Lila Kağıt Int.l Peers 30,1% 2025 FY 29,0% 29,1% • Lila Kağıt running better profitability margins 19,2% across international industry players . 17,8% 17,7% 15,7% • Lila Kağıt’s profitable business model is generating positive free cash
Slide 38: Capital Allocation Policy
Stila Kagit CAPITAL ALLOCATION POLICY
Slide 39: Heavy Investment Cycle Since IPO
Heavy Investment Cycle Since IPO … We delivered on our IPO investment commitments; creating more visibility by 2025 2026 2024 IPO Promises Meaning of These Investments ✓ Erzurum Factory A significant portion of IPO Project status: Advanced proceeds allocated to investments 2Q26 Phase I converting pr
Slide 40: With Disciplined Capital Allocation
With Disciplined Capital Allocation… Opening the way for shareholder return maximization (1) Organic Growth Inorganic Growth Strong Liquidity Shareholder Return • Optimum Capex • Scalable balance • Cash generative • Stable dividend policy Allocation sheet operations and dividend payout • Capacity Ex
Slide 41: Built on Disciplined CAPEX, Efficient Working Capital
Built on Disciplined C APEX, Efficient Working Capital C APEX Trend (% of Revenues) Working Capital Evolution (% of Revenues) 44,0% 21,1% 21,7% 8.9% 41,1% 41,0% 39,3% 37,6% 37,0% on average 29,9% 29,1% 26,4% 11,3% 8,9% 4,9% 5,6% 4,3% 1,0% 1,1% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2017 2018 2
Slide 42: Sound Cash Flow Generation and Consistent Dividend Policy
…Sound Cash Flow Generation and Consistent Dividend Policy Free Cash Flow Yield (%) Dividend Payout (%) 89,6% 80,2% 38,2% 52.5%(*) 25% 31,1% 28,3% 15% 15% 16% 17% 14% 8% 10,2% 13,3% 8,4% 4% 2017 2018 2019 2020 2021 2022 2023 2024 2025 -7%(*) 2017 2018 2019 2020 2021 2022 2023 2024 2025 (*)Negative F
Slide 43: And a Bold Step; Erzurum Factory: Next Phase of Growth
And a Bold Step; Erzurum Factory: Next Phase of Growth … Planned to become operational in the second quarter of 2026 145k m2 23k m2 production field CONVERTING land allocation PRODUCTION enabling PULP WAREHOUSE TM-5 PAPER JUMBO ROLL 10+MW WAREHOUSE PRODUCTION +70k ton Solar panel project Investor Pr
Slide 44: Help to Achieve Global Scale Through Value Driven Inorganic Growth
Help to Achie ve G lobal Scale Through Value Driven Inorganic Growth We evaluate inorganic growth opportunities in new geographies with a disciplined approach . Inorganic growth Management control Reasonable Complementary Attractive return rate guiding proximity market dynamics (ROIC>WACC) and full
Slide 45: Sustainability
Stila Kagit SUSTAINABILITY
Slide 46: Bold Steps in our Sustainability Journey
Bold Steps in our Sustainability Journey In alignment with the Sustainable Development Goals, we set a total of 15 targets across 7 focus areas and defined our ultimate long -term ambition as becoming a Carbon -Neutral company by 2050. 2022 2025 Gains Certified Cellulose/Pulp Water Consumption (Ton/
Slide 47: 2026 Guidance & Long Term Targets
2026 GUIDANCE & LONG TERM TARGETS
Slide 48: 2026 Guidance Reinforcing Value Creation Focus
2026 Guidance Reinforcing Value Creation Focus • Normalization in Export Markets Sales Tonnage Growth 7%-10% • Strong Momentum in Domestic Market • Positive Impact of Erzurum Investment Türkiye market High double -digit growth • Maintaining Over 70% Export Share in Sales Volume Export market Low-mid
Slide 49: With Strategic Commitment Through Value Creation in The Long Run
With Strategic Commitment Through Value Creation in The Long Run Profitability Focus ESG & Productivity • Diversified product and • Footprint spanning more than 8 0 customer portfolio 1 countries • Growth focus in value added • Efficiency-focused way of working • categories Profitable growth through
Slide 50: Contact Thank You
Contact Işıl Tireli Doruk Sazer, CFA Şevval Hacer Şenol Deputy General Manager of Finance, Strategic IR Head IR Specialist Planning and Information Technologies +90 (216) 251 27 00 +90 (216) 251 27 00 +90 (216) 251 27 00 www.lilakagit.com investor.relations @lilakagit.com THANK YOU. 50