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Next StageChallenge

About the Acquisition of Shares of Three Beverage Manufacturing

Subsidiaries of Turkish Manufacturer Yildiz Holding A.Ş. by DyDo DRINCO

DyDo DRINCO, Incorporated

September 24, 2015

(First Section of the Tokyo Stock Exchange: 2590)

<The presentation materials>

Next StageChallenge

1. About the Turkish Market

1

Copyright (C) DyDo DRINCO. All Rights Reserved.

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• Turkey has the largest market of any country in the Middle East.

GDP of countries in the EU, Middle East, and North Africa

2

Size of the Turkish market

(Unit: USD 1 million)

0

1,000,000

2,000,000

3,000,000

4,000,000

Ger

man

yFr

ance

Uni

ted

Kin

gdom Ita

lyR

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an F

eder

atio

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pain

Net

herla

nds

Turk

eyS

audi

Ara

bia

Sw

itzer

land

Sw

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Pola

ndB

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ayAu

stria

Uni

ted

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b E

mira

tes

Den

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rael

Finl

and

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ptG

reec

eIre

land

Por

tuga

lC

zech

Rep

ublic

Alg

eria

Qat

arIra

qR

oman

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krai

neK

uwai

tH

unga

ryM

oroc

coS

lova

kia

Om

anLi

bya

Aze

rbai

jan

Bel

arus

Luxe

mbo

urg

Cro

atia

Sud

anB

ulga

riaS

love

nia

Leba

non

Tuni

sia

Lith

uani

aS

erbi

aS

yria

n A

rab

Rep

ublic

Yem

enJo

rdan

Bah

rain

Turkey’s economy is second only to that of Europe’s economic powerhouses, and it is the largest in the Middle East.

Source: Compiled by DyDo DRINCO based on United Nations data.


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• The Turkish market is growing at one of the fastest rates of any OECD member country.

Nominal GDP growth rates of OECD member countries (2016 outlook)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

India

Turkey

Indo

nesia

Russian Fede

ratio

nSouth Africa

China

Chile

Brazil

Colombia

Mexico

Iceland

Latvia

Estonia

Ireland

Poland

Hungary

Australia

Slovak Rep

ublic

Swed

enKo

rea

Israel

United States

New

Zealand

Luxembo

urg

Canada

Norway

Czech Re

public

Germany

Denm

ark

Spain

Nethe

rland

sUnited Kingdo

mAu

stria

Belgium

Japan

France

Italy

Greece

Portugal

Switzerland

Finland

Sloven

ia

(%)

3

Rate of growth in the Turkish market

Source: Compiled by DyDo DRINCO based on the OECD Economic Outlook.


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Trend in breakdown of Turkey’s nominal GDP and trend in per capita GDP

4

Breakdown of principal components of Turkey’s GDP

• The principal driver of growth in Turkey’s GDP is rising consumer spending, which accounts for 70% of GDP.

• The proportion of consumer spending is high despite per capita GDP in excess of $10,000.

Left axis: Turkeyʼs nominal GDP（TRY 1million） Right axis: Per capita GDP (USD)


0

2,000

4,000

6,000

8,000

10,000

12,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Net exports

Gross capitalformation

General governmentfinal consumptionexpenditure

Householdconsumptionexpenditure

Per capita GDP


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• Young people make up a large proportion of the population in Turkey, which can be expected to exhibit additional growth in the future. The average age is about 30 years (Japan: about 47 years). The population is expected to increase by an average of at least 500,000 people per year

(from 2015 to 2040). Production-age people (age 15 to 64 years) make up a large proportion of the total population. Participation of women in the labor force is rising (at an annual rate of 3.7% [averaged over

the last 5 years]).

Population by gender and age in 2014Trend in population by age group

(including outlook)

5

Turkey’s population


0～45～9

10～1415～1920～2425～2930～3435～3940～4445～4950～5455～5960～6465～6970～7475～7980～8485～8990～9495～99

100+

Mail Female

4 3 2 1 4321（millions of people)

0

1

2

3

4

5

6

7

8

9

10Populationof seniorcitizens(65 andover) (leftaxis)

Populationofproduction-age people(15 to 64)(left axis)

Populationof youth (0to 14) (leftaxis)


(Tens of millions of people)


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• Turkey’s beverage market can be expected to continue to grow thanks to support from growth in the larger Turkish market.The beverage market has grown at an average annual rate of 2.3% over the last

five years.The beverage market as a whole is expected to grow at an annual rate of at

least 1.9% over the next five years.

TL 2.6 BN, 39%

TL 3.0 BN, 46%

TL 1.0 BN, 15%

CSD*

Water

Juice

Size of Turkey’s beverage market (billions of TRY)

Size of the CSD market (millions of liters) Size of the water market (millions of liters)

Size of the fruit juice market (millions of liters)

6

Growth in Turkey’s beverage market

*Carbonated Soft Drinks

Source: Compiled by DyDo DRINCO based on data provided by Yildiz.

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2. Yildiz Holding A.Ş. and Its Beverage Manufacturing

Subsidiaries and Beverage Brands

7


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Note: Calculated based on exchange rates as of September 18 (TRY 1 = JPY 39.86, GBP1 = JPY 186.66).Sources: Ulker FY2014 Annual Report, United Biscuits Group Accounts 2014, media coverage of Yildiz’s purchase of Godiva

Net sales of ¥221.6 billion(FY2014) Listed on the

London Stock Exchange and part of the FTSE 100 Index Purchased by Yildiz in

November 2014

Purchased by Yildiz in November 2007

Turkey’s largest food products manufacturer with group Core business of sweets such as cookies and chocolates

Expanding its business globally by means of an active M&A program

Turkey’s largest manufacturer of sweets and candy with net sales of

¥115.2 billion(Listed on the Istanbul Stock

Exchange)

Beveragebusiness

Broad range of brands with CSD, water, and

juice products

In addition, Yildiz has group companies that are involved in a

broad range of businesses, including containers and

packaging, gum, real estate, frozen foods, and IT.

Target b

usin

ess

Overview of Yildiz


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Della Gıda Sanayi ve Ticaret A.Ş.

Bahar Su Sanayi ve Ticaret A.Ş.

İlk Mevsim MeyveSuları Pazarlama A.Ş.

Business Manufacture of carbonated soft drinks and bottled mineral water

Manufacture of bottled sparkling mineral water

Manufacture of fruit juice

Net sales TRY 181,154,000 TRY 18,409,000 TRY 134,939,000

Operating income

TRY 3,861,000 TRY 687,000 TRY 5,480,000

Brands Cola Turka, Çamlıca,Saka Su, Sunny, Maltana

Eskipazar, Flores Link

Target beverage manufacturing subsidiaries and the brands they deal with

*Net sales and operating income figures reflect business results for the fiscal year ended December 2014.


Next Stage

• The companies whose businesses are being transferred have a strong line of brands fronted by Camlica, one of Turkey’s leading beverage brands.

• By adding coffee, tea, energy drinks, and other products made possible by its product development capabilities, DyDo will complement and expand the acquired companies’ product lines.

Visualization of future brand lineup

CSD Water Fruit Juice Tea OtherMineral

Sparkling

Flavored

DyDo product line (partial)

Turkey’s top-selling lemon-lime flavored CSD brand

A cola brand that has long been loved by the Turkish people

The most profitable brandA good fit with the trend in Turkey toward healthy living (high pH level)

Low-priced yet highly profitable juice products

Acquired brands


Next Stage

11

Future Image of Overseas Deployment

SHANGHAIDyDo DRINCO, INC.

DyDo MY

DyDo Rus

CIS region with Russia as the

hub

290 million people

Chinese region with China (Shanghai) as the

hub

1.38 billion people

Islamic region with

Malaysia as the hub

1.6 billion people Make shipments from overseas in

the future

Expand into the CIS region with Russia as the hub; the Islamic region with Malaysia as the hub; the Chinese region with Shanghai as the hub.


Next Stage

12

Mid-term Business Plan: “Challenge the Next Stage”

- Four Challenges to the Next Stage -Ex

isti

ng

fie

lds

Domestic Overseas

New

fie

lds

FoodProduction and Sales Division

OEM Beverage

Production Division

Development of new food and health related business

Optimized business results / Improved productivity

(Generate stable cash flow)

Market expansion through overseas business

development

Beverage Sales

Division

Challenge to establish new business foundations Challenge to

grow existing businesses

Challenge to expand overseas

businesses

Challenge to enhance product

strength

Achievement of innovative product development

FY2018Net Sales: 200 billion yenOperating margin: 4.0%


Next StageVisualization of sales breakdown for beverage sales division

13

Domestic Domestic

Overseas

Overseas

75,000

100,000

125,000

150,000

Currently After Turkish consolidation

Visualization of sales breakdown for the beverage sales division(Millions of JPY)

0


Next Stage

14

Realizing sustainable growth

Specific corporate philosophy / vision

FY2013 FY2018～～

Challenge

200 billion yen

Next StageChallenge

APPENDIX


Next Stage

16

Overseas development of DyDo’sbeverage sales division: Russia

Promoting the installation of vending machines in Moscow, Russia

DyDo vending machine inside the Aero Express station from Sheremetyevo International Airport, Russia's second-largest airport, to the central city.

Subway

Gas station

Bus terminal

Train station Cinema


Next Stage

・・・

17

・・・・・・

Overseas development of DyDo’sbeverage sales division: Malaysia

Mamee-Double Decker(M) Sdn.

Bhd.

Manufacturing company

MDD BeverageSdn. Bhd.

(MDD Bev)

Sales companiesMilk Specialities

DistributionSdn. Bhd.(MSD)

Pacific Food Products Sdn.

Bhd.

49% equity

Capital participation in the beverages business division of the Malaysian food giant Mamee, making a joint venture company

Business Overview:Manufacture and sale of snacks and confectionery, instant noodles, beverages, and chilled drinks

51% equity


Next Stage

18

Overseas development of DyDo’s food production and sales division: Indonesia

Early AprilPutting on sale three types of Tarami Fruit Market jellies in Indonesia

• Production using factories of our local partner as the first step in overseas market entry

• Aiming at sales of 100 million yen in the first fiscal year

Next StageChallenge

This document includes forward-looking statements. These statements do not guarantee future performance and are subject to risk and uncertainty. Future performance may diverge from planned or anticipated levels due to changes in the business environment and other factors. This document was compiled for the sole purpose of providing information and does not constitute an invitation to participate in any financial transaction.

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