Efes

Efes Beverage Group ("EBG" or "the Group") is the system of companies composed of Anadolu Efes Biracılık ve Malt Sanayii A.Ş. (Anadolu Efes) and its subsidiaries and affiliates. The Group produces and markets beer, malt and soft drinks across a geography including Turkey, Russia, the CIS countries and Southeast Europe.

EBG is the beverage division of the Anadolu EndÑŒstri Holding A.Ş. (Anadolu Group), one of Turkey's leading conglomerates. Anadolu Group was founded by Yazıcı and Цzilhan families in the early 1950's and has principal interests in beverage, automotive, finance, writing instruments and office supplies sectors.

A majority of Anadolu Group companies conduct their businesses through partnerships and joint ventures with a number of international corporations like Coca-Cola, Interbrew, SAB Miller, Warsteiner, Isuzu, Itochu, Lombardini, Faber-Castell, Findomestic and Cetelem.

The brand name "Efes Pilsen" has become synonymous with "beer" in Turkey. In 1969, The Anadolu Group started production in its first breweries, the Erciyas Brewery in İstanbul and Ege Brewery in İzmir. Efes Pilsen has long been the preferred brand of beer-lovers in Turkey. With its state of the art technology, high production capacity and export potential, the Efes Beverage Group is a major contributor to the Turkish economy. Efes' Ege brewery produced the first canned beer in Turkey in 1986. 1993 saw the introduction of first Efes Light, then Efes Extra. The company's product range was further expanded in 1995 with the addition of Everest Beer, followed by the introduction of Efes Dark in 1998.Also in 1998, the LÑŒleburgaz factory was purchased; this marked the introduction of Marmara beer brand to the Group's product line.

Efes Beverage Group, Turkey's leading beverage group has mergered its four beer companies which are Erciyas Biracılık ve Malt Sanayii A.Ş. (Erciyas), Ege Biracılık ve Malt Sanayii A.Ş. (Ege), GÑŒney Biracılık ve Malt Sanayii A.Ş. (GÑŒney) and Anadolu Biracılık Malt ve GIda Sanayii A.Ş. (Anadolu) under the name of Anadolu Efes. Following the merger, Anadolu Efes Biracılık ve Malt Sanayii A.Ş. has been the largest brewer in Turkey with 5 breweries and 2 malteries, leading the Turkish beer market with a market share of almost 80 %.

The sales and marketing firm of Efes Pilsen, Efes Pazarlama, has one of the most powerful distribution networks in Turkey, with distribution organisations in the provinces of İstanbul, Adana, Bursa, İzmir and Ankara, sales offices in Antalya, Samsun and 300 main distributors. Efes Pilsen, Turkey's beer market leader, has an annual production capacity of 910 million litres of beer, 97,500 tons of malt and 2,000 tons of hops.

Web Site: www.efespilsen.com.tr

Beer Business

Commencing its operations with two domestic breweries in Turkey in 1969, Efes Beverage Group's beer business today comprises a total of 14 breweries, 4 malteries and 1 hop processing facility in 6 countries, coupled with various companies for distribution, licensing and technical support.

Currently total annual brewing capacity of the Group is 20 million hectolitres whereas the total malting capacity is around 150,000 tonnes per annum.

Our vision is to become the leading Beverage Group in a region spanning from " The Adriatic Sea to China "

Our mission is to improve the living standards of societies we serve thereby creating the maximum sustainable value to our stakeholders.

In order to realize our vision and mission we aim to;

Maintain rapid growth of our Turkish beverage businesses

Establish an international beer business that is twice as large as our Turkish beer business, by 2008.

Become a preferred Coca-Cola bottler in our region

In order to create long-term sustainable shareholder value, we;

1. Ensure the share of value we get from the market exceeds the share of volume,

2. Deliver consistent above average return, on capital invested

2003 was the most dynamic year in our entire 35 year history marked by our strongest operating performance in all four of our business segments , which in turn translated into very healthy positive returns for our shareholders.

We managed to grow our entire business significantly ahead of our already aggressive plans whilst simultaneously improving margins markedly ahead of our business plans.

Anadolu Efes's Consolidated Revenues were up by 51% to reach 746 million USD whilst EBITDA more than doubled in 2003 to 267 million USD . Resulting Net Income grew 182% to 165 million USD . Consolidated Net Debt was down from 127 million dollars in 2002 to 106 million dollars .

Our domestic Coca-Cola Operation, Coca-Cola İÐ*ecek generated a revenue of 556 million dollars in 2003 which is not included under Anadolu Efes's consolidated revenues, since our 33 ,3 % shareholding in Coca-Cola İÐ*ecek is accounted for on equity method.

Our total group Beer volumes in 2003 grew by 28% reaching 1,2 billion liters.

We added 5 new breweries and 2 new countries in our International beer business. Stripping out acquisition volumes our total beer volumes grew organically by 13%, again making us the fastest growing major beer business in Europe.

Our total group Coca-Cola franchise volumes grew overall by 10% from 226 million U/C to 248 million U/C.

All four of our business segments contributed measurably towards this outstanding overall operating performance.

Our Domestic Beer business posted its best volume growth since 2000. Including export volumes which grew by 31% in 2003, total sales of our Turkish Beer Operations reached an all time high of 642 million liters , growing by 8% and outstripping market growth.

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