1.075,9 1.024,8 5,0% 1.011,5

230,3 213,9 7,7% 207,4

21,4% 20,9% 0,5% 20,5%

147,4 114,7 28,5% 116,3

13,7% 11,2% 2,5% 11,5%

1.075,9 723,1 48,8% 956,0 12,6%

230,3 119,4 92,9% 203,9 13,0%

21,4% 16,5% 4,9% 21,3% 0,1%

147,4 321,3 -54,1% 114,8 28,4%

13,7% 44,4% -30,7% 12,0% 1,7%

Valuation Metrics (Year end Dec) 2015 2016 2017E 2018E 2019E

Recommendation: HOLD P/E 10.17 4.83 8.3 8.3 7.6

Fair Value: TRY 4.25 EV / Sales 1.3 1.1 1.4 1.4 1.3

EV / EBIT 28.1 14.4 11.1 11.8 11.6

Share Price: TRY 3.49 EV / EBITDA 10.1 6.7

Upside / Downside: 21.9% P/BV 0.56 0.80 1.0 0.9 0.9

FCF Yield -8.0% 3.2% 9.7% 9.6% 10.8%

Previous Fair Value: TRY 2.97 OCF Yield 0.4% 9.8% 17.0% 19.2% 21.2%

% change to Fair Value: 43.2%

Bloomberg ticker: TRKCM TI Key Ratios 2015 2016 2017E 2018E 2019E

Reuters code: TRKCM IS

EBITDA margin 13.0% 15.8% 20.5% 19.5% 19.5%

Operating Profit margin 4.6% 7.4% 12.6% 11.6% 11.6%

Capex / Revenue (15.6%) (8.6%) (7.6%) (9.2%) (9.2%)

Shares In Issue Less Treasury (m) 1,130 Capex / Depreciation (1.88) (1.02) (0.96) (1.16) (1.17)

Market Cap (TRY m) 3,944 Net Debt / EBITDA 2.6 2.4 1.7 2.1 2.3

Net Debt (as of 2Q17-end) 1,259 ROA 3% 8% 6% 5% 5%

Adjustments For Associates & Minorities - ROE 6% 17% 13% 12% 12%

Enterprise Value (TRY m) 5,203

Net Pension Deficit (Surplus) -

P&L Summary (TRY m) 2015 2016 2017E 2018E 2019E

Forthcoming Catalysts Revenue 2,118 3,016 3,776 4,123 4,460

% change 4.9% 42.4% 25.2% 9.2% 8.2%

3Q17 financial results October 2017 EBITDA 274 478 772 802 868

% change (15.0%) 74.2% 61.7% 3.9% 8.2%

% margin 13.0% 15.8% 20.5% 19.5% 19.5%

Depreciation & Amortisation 176 254 298 325 352

Operating Profit 98 223 474 477 516

% change -42.9% 127.2% 112.3% 0.5% 8.2%

% margin 4.6% 7.4% 12.6% 11.6% 11.6%

Associates - - -

Global Securities Analysts EBIT 98 223 474 477 516

Utku Uygur, Ph.D. Net Financials -18 -119 -81 -82 -84

+90 850 201 94 89 Other Pre-tax Income 117 498 208 206 223

utkuu@global.com.tr Pre Tax Profit 197 602 601 601 655

Income Tax Expense -28 -27 -95 -95 -103

Discontinued Operations - - -

Revenue Pie chart split by geography (as of 12M16) Minority Interests (10) (28) (30) (30) (33)

Net Income 159 547 476 475 519

Reported EPS (TRY) 0.18 0.59 0.51 0.51 0.56

Underlying EPS (TRY) 0.18 0.59 0.51 0.51 0.56

DPS (TRY) 0.10 0.14 0.16 0.16 0.18

Payout Ratio 55.0% 50.0% 32.0% 32.0% 32.0%

Shares In Issue Less Treasury (m) 895.00 930.00 930.00 930.00 930.00

,

Cash Flow (TRY m) 2015 2016 2017E 2018E 2019E

Revenue Pie Chart split by products (as of 12M16) EBIT 98 223 474 477 516

-Taxes paid (28) (27) (95) (95) (103)

+Depreciation 176 254 298 325 352

+ Increase in accounts payable (66) 375 40 37 18

-Increase in accounts receivable 84 301 (83) 1 (10)

-Increase in inventory 81 120 122 (17) (40)

-Increases in other current assets (2) 18 9 4 (4)

Cash flow from operations 17 387 669 756 837

Capex 331 260 287 378 412

FCFF (314) 127 381 379 424

Balance Sheet (TRY m) 2015 2016 2017E 2018E 2018E

Margin Trends

Cash & Equivalents 1,170 1,216 1,522 1,662 1,798

Inventory 440 548 563 546 506

Trade Receivables 402 703 621 621 611

Fixed Assets 2,722 3,327 3,362 3,351 3,403

Other Assets 892 1,085 1,902 2,803 3,587

Total Assets 5,627 6,879 7,969 8,983 9,904

Interest Bearing Debt 1,886 2,369 2,852 3,334 3,817

Trade Payables 261 446 703 740 759

Other Liabilities 340 478 599 654 707

Total Liabilities 2,488 3,293 4,038 4,729 5,283

Shareholders' Equity 2,889 3,293 3,610 3,906 4,243

Minority Interests 249 293 322 348 378

Total Equity 3,139 3,587 3,932 4,254 4,621

Net Debt (Cash) 716 1,153 1,330 1,672 2,020

Trakya Cam

Turkey56%

Europe38%

Other6%

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10%

15%

20%

25%

20

15

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20

17

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20

18

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19

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Cash

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EBITDA margin Operating profit margin

Float63%

Auto&Other37%