Lila Kagit Sanayi Ve Ticaret Anonim Sirketi · BIST:LILAK
Lila Kagit Sanayi Ve Ticaret Anonim Sirketi — Lila Kağıt — Investor Presentation (October 2026)
49 slides from Lila Kagit Sanayi Ve Ticaret Anonim Sirketi's investor presentation, October 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 Hygienic 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: 3Q 2026 Financial and Operational Performance
3Q 2026 FINANCIAL AND OPERATIONAL PERFORMANCE
Slide 32: 3Q 2026 Volumes Held Steady Amid Pricing and FX Pressure on Margins
3Q 2026 Volumes Held Steady Amid Pricing and FX Pressure on Margins Export performance supported operations, while geopolitical uncertainty, pricing and FX dynamics weighed on margins 3Q26 Operational Performance 3Q26 Financial Performance Sales Sales Volume Domestic Branded Net Sales EBITDA EBITDA
Slide 33: Strong Production Recovery and Above-Industry Capacity Utilization
Strong Production Recovery and Above -Industry Capacity Utilization Lila Kağıt’s capacity utilization rate increased by 1 percentage point year over year to 83% in 3Q26, 6 percentage points above the Turkish tissue paper industry average. In 9M26, Lila Kağıt’s capacity utilization reached 87%, excee
Slide 34: Pricing Pressure and the FX–Inflation Gap Constrained Profitability
Pricing Pressure and the FX –Inflation Gap Constrained Profitability Pressure on foreign currency selling prices, exchange rate increases below inflation and higher TRY -denominated operating expens es affected profit margins Gross Profit Margin EBITDA Margin Net Profit Margin 3Q 2026 23.6% (-786 bp
Slide 35: Pricing Pressure and TRY Cost Inflation Contracted EBITDA Margin
Pricing Pressure and TRY Cost Inflation Contracted EBITDA Margin Value Analysis of Net Sales (TL million) EBITDA Margin Bridge (%) 4,136 84 3,709 (407) (68) (35) 20.8% -786 bp -272 bp +65 bp 10.9% 3Q 2026 Price / Product Mix Volume Price / Product Mix Volume 3Q 2026 Q3 2025 Gross Margin OpEx D&A Exp
Slide 36: Working Capital Efficiency Supported Operational Cash Flows and Strong Balance Sheet
Working Capital Efficiency Supported Operational Cash Flows and Strong Balance Sheet Trade Receivables (Days) Inventories (Days) Strong Net Cash Position of Net Cash Bridge (TL million) Trade Payables (Days) Cash Conversion Cycle (Days) TRY 4.3 Billion 2,815 • The net cash position 122 was maintaine
Slide 37: Positive Free Cash Flow Maintained During Intensive Investment Period
Positive Free Cash Flow Mainta ined During Intensive Investment Period Cash Flow from Operations (TRY million) Erzurum Plant (1) Free Cash Flow (TRY million) Ergene Plant & Others Free Cash Flow / Net Sales CAPEX / Net Sales Total Capital Expenditures (TRY million) 18.2% 6.9% 6.6% 11.6% 1,541 2,815
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 October 2026 2024 IPO Promises Meaning of These Investments ✓ Erzurum Plant Project Status: Phase I Converting Operations A significant portion of IPO Commissioned on June 8, 2026. pro
Slide 40: Our Regional Strength Supported by Two Factories
Our Regional Strength Supported by Two Factories Our production plants in western and eastern Türkiye provide Lila Kağıt with a strategic advantage through broad domestic mar ket coverage and access to nearby export markets. The Erzurum plant is the first major industrial tissue paper facility servi
Slide 41: Erzurum Phase I Facility Successfully Commissioned
Erzurum Phase I Facility Successfully Commissioned Production and sales at the Phase I converting facility began on June 8, 2026, with a gradual capacity ramp -up expected during t he second 9M 2026. Erzurum Facility • Located on a 168 thousand m² site, the facility is the first tissue paper product
Slide 42: 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 43: 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 44: Sustainability
Stila Kagit SUSTAINABILITY
Slide 45: 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 46: 2026 Guidance
2026 GUIDANCE
Slide 47: 4Q26 Closing Outlook: Margin and Cash Discipline in a Weak Pricing Environment
4Q26 Closing Outlook: Margin and Cash Discipline in a Weak Pricing Environment Drivers Supporting Year -End Targets Key Risks • Our year-end outlook does not assume a broad -based market • Flat and regional ly divergent global tissue paper demand, together recovery. We expect export growth in the mi
Slide 48: We Revise Our 2026 Guidance
We Revise Our 2026 Guidance Initial Guidance Revise d Guidance C urrent Guidance Sales Volume Growth 7%-10% 7%-10% 1%-3% Domestic Market High double -digit growth Mid-to-high single -digit growth Flat Export Markets Low-to-mid single -digit growth High single -digit growth Mid-single -digit growth E
Slide 49: 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. 49