Coca-cola Icecek Anonim Sirketi

Ladies and gentlemen, thank you for standing by. I would like to welcome you to the Coca-Cola ETHX conference call and live webcast to present and discuss the second quarter 2026 financial and operational results. We are here with the management team and today's speakers are the CEO, Mr. Karim Yahi, and CFO, Mrs. Cicek Uşaklıgil Özgünes. Before starting, I would like to kindly remind you to review the disclaimer on the webcast presentation. After the call, there will be an opportunity to ask questions. I would now like to turn the call over to Burak Berki, Head of Investor Relations. Sir, the floor is yours. Please go ahead.

Good morning and good afternoon, ladies and gentlemen. Welcome to our second quarter 2026 Results Park webcast. As the operator said, I'm here with our CEO, Ahmet Ertin, and CFO, Çiçek Uşaklıgül Özgüneş. Today's remarks will be accompanied by a slide deck, then we will turn the call to all our questions. Before we begin, please kindly be advised of our cautionary statements. The conference call may contain forward-looking management comments, including projections. These should be considered in conjunction with the quotiental language contained in our earnings release. A copy of our earnings release and financials are available on our website. In addition, in accordance with the decree of the Capital Markets Court, our 2026 financials are reported using TAS 29, financial reporting in hyperinflationary economies. The financial figures in this presentation and all comparative amounts for previous periods have been adjusted according to the changes in general purchasing power of Turkish lira in accordance with PAS 29 and finally expressed in terms of the purchasing power of TR as of June 30, 2026. However, certain items from our finances are also presented without inflation adjustment for information purposes. These honorable figures are clearly identified as such. Following the call, a full transcript will be made available as soon as possible on our website. Now, let me turn the call over to Ahmet Bey.

Thank you, Burak. Daniyal, thank you. So, I mean, this is a term that we were together with Karim, so it is good to remember him as well, so we always keep his name in our mind and heart. Good morning and good afternoon everyone. Thank you for joining CCI's second quarter 2026 results webcast. It's a pleasure to speak with you for the first time. As CEO of CCI, having spent many years with the company, I have had the privilege of witnessing the dedication of our people and the strength of our business across our diverse markets. Our values, strategic priorities and disciplined approach to execution remain firmly in place. We will continue to focus on sustainable, profitable growth, disciplined capital allocation, and creating long-term value for all our stakeholders. Our second quarter performance once again highlighted the resilience of our business model and the benefits of our diversified geographic footprint. Despite continued macroeconomic and geopolitical uncertainty across several of our markets, including the impact of the ongoing regional conflict, we delivered another strong quarter, and the resilient first-half performance. Supported by the balanced contribution of our operations, we continue to deliver on our quality growth algorithm, turning robust volume growth into value creation across the P&L and converting that value into strong cash generation. We delivered a solid second quarter with consolidated phase volume increasing by 9.8% year-on-year to 519 million cases. Strong momentum across our international operations, led by Pakistan and Central Asia, more than offset the subdued volume performance in Turkey. Pakistan delivered an outstanding quarter, while Central Asia sustained its growth momentum. In line with our mixed improvement strategy, the consolidated immediate consumption share improved by 23 basis points from 28% to 20.2%. in second quarter 26. Similarly, our on-premise channel continue to gain transaction with its share in total volume increases to 33.8%. We also continue to increase the penetration of no sugar products within the sparkling category with their share rising by 84 basis points year on year to 3.8%. Further, strengthening our portfolio mix and increasing the share of high margin products. We deliver their 284 basis points expansion in gross margin to 38.2% driven by improvements in both Turkey and our international operations. In Turkey, timely pricing actions, favorable input cost and disciplined cost management supported productivity. Our international operations also deliver 30 margin expansion supported by solid volume growth and continued cost discipline despite a more moderate pricing environment. Below the gross profit line, we continue to deliver strong financial performance, with EBIT margin expanding by 287 basis points to 17.9%, supported by stronger gross profitability, disciplined operating excellence management across both Turkey and our international operations, and to a lesser extent, a softer base in the prior years. This translated into an increase in net profit to TL 8.3 billion, supported by stronger operating profitability and lower net financial expenses. We generated a strong free cash flow of TL 2.3 billion in the first half of the year, or TL 2.5 billion excluding inflation accounting, supported by improved profitability, disciplined capital allocation, and lower financing costs. Finally, while our first-half performance was ahead of expectations, Next slide, please. International operations delivered strong volume growth, led by Pakistan and Central Asia, with positive contributions from all markets. The sparkling category maintained its growth momentum in second quarter 26, delivering a 7.9% increase on top of a 4.9% growth base in the same period last year. Coca-Cola trademark outperformed the category, posting an 11.1% growth in sales volume. The fifth category, including ice teas, NIH drinks and juices, delivered robust growth of 18.5%, primarily driven by PUSTI, whose sales volume increased by 23.9% year-on-year, and remained the key contributor to overall category performance. The energy segment also posted a strong 21.2% year-on-year growth. supported by the continuous solid volume performance of both Monster and Predator along with Predator launch in Pakistan. The water category posted an 18.4% year-on-year increase in second quarter 26 due to low days effect and pre-summer inventory build-up by distributors. Our mix optimization initiatives continue to strengthen portfolio quality, supported by higher immediate consumption. On-premise and knowledgeable mix in line with our commitment to sustainable long-term value creation. Next slide, please. Turkey's sales volume declined by 1.1% year-on-year, 259 million unit cases in second quarter of 2016. bringing the cumulative six-month volume 289 million unit case, broadly flat compared to first six months of last year. Our increasingly diversified portfolio continued to support volume performance during the quarter. While sparking volumes declined by 6.6%, Coca-Cola Zero Sugar grew by 16.9% year-on-year. At the same time, the Sins category expanded by 8.8% year-on-year, led by the continuous strong momentum of 50% of 11% year-on-year, and the Water category increased by 15.1% due to the low days of last year and pre-summer inventory built by distributors. Turkey reported NSR of TL 26 billion in second quarter, down 3.4% year-on-year. Excluding TAS 29, NSR grew by 28% year-on-year, with NSR per unit case reaching to TL 162, up 29.4% year-on-year. Gross profit, EBITDA and EBITDA, margins all improved sharply year-on-year, driven by the utilization of previously secured Secured low-cost raw material inventories, favorable sugar prices, and disciplined cost and operating expense management. Next slide, please. International. International operations delivered a robust 15.4% year-on-year sales volume growth in second quarter of 26, building on a strong 10.6 growth based in the same period last year. Growth was growth-based across markets. with Pakistan emerging as a standout performer during the quarter, while Central Asia continues to deliver strong momentum. All major categories posted double-digit growth. NSR increased by 12.3% to PL 41.2 billion, driven by disciplined revenue growth management initiatives that balance affordability with volume growth along with mix optimization and successful product innovations. EBIT margin expanded by 296 basis point 0 in year in second quarter 26 mainly driven by substantial improvement in gross profit margin while discipline management operating expenses provided additional support next slide please so largest international market Pakistan Sales volume increased by an impressive 17% year-on-year to 122 million unit cases in second quarter 26. Growth was driven by Coca-Cola trademark. Successful product innovations, particularly pomegranate and prediators, as well as the each season, despite a challenging geopolitical environment, outstrengthened competitive market positioning, supported by continued investment in coolers, returnable glass bottles, and outlet expansion remained a key competitive advantage. Kazakhstan delivered 12.7% year-on-year boiling growth, cycling a solid 16.7% growth. Supported by commercial initiatives and innovation launches, growth was broad-based across both sparkling and silk categories. with PUC remaining a key growth driver while the immediate consumption mix continues to improve. Uzbekistan sustained its strong growth trajectory in the second quarter of 26 with sales volume increasing by 21.1% year on year following an exceptional growth of 40.7% in the first quarter. The operating environment remained highly supported benefiting from favorable macroeconomic conditions and multiple demand tailwinds. which continued to underpin healthy consumer demand and business momentum. Commercial initiatives, including product innovations and under-the-cap promotions across both RGD and pet packs also contributed to the strong performance. Market conditions remained broadly unchanged from the first quarter. Operating conditions in Iraq remained challenging with regional geopolitical tensions Oil-rated disruptions and lower tourism continue to weigh on consumer demand. Despite these headwinds, we delivered resilient volume performance, growing sales volume by 1.1% to 37 million liters in the quarter. Our immediate consumption needs reached 77.2% in second quarter 2006. Now I will leave the floor to Cech for the financial review. Thank you.