Çuhadaroğlu Signs Agreement with Deniz Yatırım for Public Offering

·Çuhadaroğlu has reached an agreement with Deniz Yatırım for its public offering preparations. The IPO is targeted to be completed in February. ·With over 600 employees and full integration from ingot aluminium to profile production and facade system application, Çuhadaroğlu is going public. ·Using IPO proceeds to complete its investments, Çuhadaroğlu will significantly increase capacity in profile production and facade system applications. ·With its debt-free structure, steady growth and profitability, Çuhadaroğlu's nine-month consolidated revenue for 2015 stands at TRY 164 million, with parent company net profit at TRY 18.7 million. ·In the IPO, the share unit price will be TRY 2, public float will be 26% and offer size will be TRY 37 million. ·With a market value of TRY 142.5 million after the IPO, Çuhadaroğlu will be subject to a Daily Purchase Order for 20 trading days on the exchange. Çuhadaroğlu Metal Sanayi ve Pazarlama Anonim Şirketi, which has been one of the industry's important institutions for over 60 years with knowledge, quality and reliability, has initiated its public offering process. Continuing its IPO preparations, Çuhadaroğlu plans to complete the process in February. General Manager Kenan Aracı of the company, which has partnered with Deniz Yatırım for intermediary services related to the IPO process, stated in his statement: "Çuhadaroğlu is an established and reliable organization that, through its integrated structure, provides services from production to system installation and manufactures profiles (semi-finished products) and finished products (Interax Products) used in architectural and industrial applications from aluminium ingot raw material. We have reached an agreement with Deniz Yatırım for our public offering activities. We have submitted our applications to the Capital Markets Board and Borsa İstanbul. We believe we will bring a fresh perspective to the Exchange," he said.

Continuing his remarks, "Çuhadaroğlu sells high value-added products through aluminium system designs it has developed with its know-how and experience.

The technical support and R&D departments established within the company continuously evaluate requests from customers. Our workforce of over 600 people develop, design and produce our own aluminium systems, and with the application support we provide to our customers, we differentiate ourselves from our competitors. Approximately 30% of our white-collar employees consist of architects and engineers. Thanks to this engineering infrastructure, we produce customized solutions and provide qualified project support." Kenan Aracı continued, describing the public offering as a strategic step and an important milestone towards institutionalization. "Our public offering will be a very important driving force for corporate governance principles to guide company activities and for the company's institutionalization. It will provide us with the opportunity to continue our activities on firmer grounds. We are leaving behind another important stage in our work towards listing on the Exchange. We are pleased to work with Deniz Yatırım to manage our IPO process, which we expect to complete in February," he said. Hüseyin Melih Akosman, Executive Board Member of Deniz Yatırım, stated that they are very pleased to mediate the meeting of Çuhadaroğlu, an important player in the sector, with investors. Akosman said: "The aluminium sector, of which Çuhadaroğlu is a part, is expanding beyond construction into automotive, transportation, defense and machinery industries, finding new applications. Çuhadaroğlu is one of the leading organizations that has tried to capture this momentum in the aluminium sector through its investments over the past 10 years. Çuhadaroğlu is a regularly growing company with growth plans and significant profitability... We are greatly excited to mediate the IPO of an established and reliable organization currently managed by professionals and debt-free, with attractive pricing and IPO structure, and to bring another strong company to the exchange."

Ø Differentiating through integrated facilities

Through its integrated facilities comprising a foundry, extrusion presses, surface treatment and mechanical processing sections, the company is able to provide a wide range of production and contracting services from aluminium ingot raw material to profiles and facade systems used in architectural and industrial applications. This integrated structure provides both cost, quality and delivery time advantages. Prior to capacity expansion, which Çuhadaroğlu is continuing and which is planned to be completed in 2016, the company has annual capacity of: 16,200 tonnes ingot, 19,000 tonnes profile production, 10,000 tonnes anodising, 5,000 tonnes powder coating, 140,000 m² facade systems design, production, testing and assembly capacity. With the capacity expansion targeted to be completed in 2016, ingot production capacity will reach 32,400 tonnes and facade systems capacity will exceed 250,000 m².

130% growth in revenue and earnings before interest, taxes, depreciation and amortization in two years, significant increase in net profit

Çuhadaroğlu's sales, which stood at TRY 82.3 million in 2012, reached TRY 189.7 million in 2014 with a 130% increase in two years. As of nine months in 2015, the company's revenue stands at TRY 164.2 million. Çuhadaroğlu's earnings before interest, taxes, depreciation and amortization (EBITDA) rose from TRY 12.4 million in 2012 to TRY 28.5 million in 2014. In the nine-month period of 2015, EBITDA amounted to TRY 30.9 million. Parent company net profit, which stood at TRY 4.9 million in 2012, increased to TRY 14.5 million in 2014 and amounted to TRY 18.7 million in nine months of 2015.

IPO planned for mid-February under Deniz Yatırım leadership

In the IPO, where 50% capital increase and 50% shareholder sale are planned, the company's current issued capital of TRY 62,000,000 will be increased to TRY 71,250,000 in exchange for TRY 9,250,000 in cash, and TRY 9,250,000 will be subject to shareholder sale. The public float ratio will be 25.96%. The IPO is expected to be completed in mid-February.

Share unit price TRY 2

In Çuhadaroğlu's IPO, where 80% is allocated to domestic individual investors and 20% to domestic institutional investors, the share unit price has been set at TRY 2. The IPO size will be TRY 37 million and the company's value after the IPO will be TRY 142.5 million. The company will use the IPO proceeds from capital increase to complete ongoing production capacity, machinery and equipment investments and for procurement of aluminium ingot used as raw material.

Daily Purchase Order Application

Using resources of TRY 14.8 million, equivalent to 40% of the IPO size, which will be provided by company shareholders, a daily valid purchase order of 500,000 shares at the IPO price will be entered through Deniz Yatırım for 20 trading days.

30% Cash Dividend Planned

Another application will relate to cash dividend distribution... For the fiscal years 2015, 2016, 2017, 2018 and 2019, the company envisages distributing at least 30% of the distributable net period profit calculated within the framework of applicable legislation in cash to shareholders. IPO DETAILS

IPO Structure

• Pre-IPO capital TRY 62 million
• Capital increase TRY 9.25 million
• Shareholder sale TRY 9.25 million
• Share unit price TRY 2
• IPO size TRY 37 million

Post-IPO

• Capital TRY 71.25 million
• Public float ratio 25.96%
• Company value: TRY 142.5 million

IPO Allocations

• 80% Domestic individual investors
• 20% Domestic institutional investors

Consortium Leader: Deniz Yatırım

The content herein is for introduction and information purposes only, and investment decisions regarding the publicly offered shares must be made by examining the Prospectus and Offering Announcement containing detailed information about the company and the publicly offered shares. The Prospectus and Offering Announcement have not yet been approved by the Capital Markets Board (SPK). Following SPK approval, the Prospectus and Offering Announcement will be announced on the Public Disclosure Platform (www.kap.gov.tr), on Çuhadaroğlu Metal Pazarlama ve Sanayi A.Ş.'s website (www.cuhadaroglu.com) and on Deniz Yatırım Menkul Kıymetler A.Ş.'s website (www.denizyatirim.com). The Capital Markets Board or Borsa İstanbul A.Ş. has no discretionary authority or approval in determining the IPO price of the shares.