Turkey has had growing volume of private equity transactions with market growth as the most important value creation lever
Characteristics of private equity in Turkey
Favorable investment environment with reservations
• Turkish economy has demonstrated growth between 2002-2010 and forecasted GDP growth is one of the highest among OECD countries • Increasing current account deficit and lack of transparency are some investor reservations

Growing volume of private equity transactions
• While the first private equity investment occurred in 1995, there has been substantial increase in investments since, especially from 2005 to 2006

Abundance of family owned businesses
Private Equity in Turkey
• While abundance of family owned businesses creates challenges for private equity across all stages of an acquisition, weak succession planning increases availability of deals

Booming services industry
• Turkey has had strong growth in the services industry since 1998 and private equity investments have historically been concentrated on this industry
* Based on a survey with private equity funds Source: Industry interviews, Santa research and analysis

Market growth as an important value creation lever
• 35% of value creation* is achieved through market growth and the weight of the lever is expected to stay about the same within the next 2-3 years

8 2.5 4. Compared to other OECD countries. throughout 2017 Turkey's past and forecasted GDP growth rate Turkey GDP Growth Rate. IMF. political stability combined with high growth throughout the world 6.9 4.2 5.FAVORABLE INVESTMENT ENVIRONMENT WITH RESERVATIONS Turkish economy has demonstrated solid growth since 2002 and the growth is expected to continue at 6.7 4.7 7. This is due to implementation of sound economic policies.7 Average: 4. Turkey is expected to be among the highest growing economies mainly due to increasing exports.4 6.4 Comments • Turkey had the 16th largest economy in the world and 6th largest economy compared with EU countries in 2009 • Since the banking crisis in 2001. Turkey's GDP has grown at an average 4. Morgan Stanley.88%.a.7 4.6 2. a tight fiscal policy. 2002-2010 (%) 9.88% 0.3 8. foreign investment and factor productivity Turkey SlovakiaHungary South Czech Korea Republic Source: OECD.7 2002 2003 2004 2005 2006 2007 2008 2009 2010f Annual Average Real GDP Growth Forecast in OECD Countries.6 1. Santa Analysis UK Poland US OECD Japan .1 3.4 2.2 • Turkey has recovered rapidly from the 2009 economic crisis due to a good export performance.7% p.0 -4.9 4. 2011-2017 (%) 6.

UK.3 4.0 5.5 6. Morgan Stanley.2 1. Worldbank.9 6.5 6.8 -4.0 11.a.6 1.3 12. As derivate products were not widely used in Turkey.1 0.9 -5.2 6. the performance is above average among emerging economies Turkey's economic performance in 2009 Change p.3 2. 2009 2010 • Increase in debt-to-GDP ratio for Turkey is below most of the developed economies as well as emerging economies.9 China Brazil US CzechRep Turkey Germany UK Japan Russia UK US Czech. While the bounce-back is stronger than US.2 2.7 5.7 -4. banks continued their profitability trend during the crisis • Turkish economy bounced back from the negative GDP growth in 2009 fairly strongly.3 10.0 4. 2009-2010 (%) Change in GDP Growth (%) 0.FAVORABLE INVESTMENT ENVIRONMENT WITH RESERVATIONS Turkey has performed better than most developed economies in 2009.5 1.2 -7. the growth has been weaker Source: IMF.9 7.China JapanGermanyBrazil Turkey Russia Rep.2 -8. Turkey has strengthened its banking system following the 2001 crisis that held Turkey's economy relatively strong during the crisis.4 -4.4 9.7 -4. Germany and Japan.9 0.8 7.1 7.1 GDP growth rate for select countries.1 2.1 9. Santa analysis . 2006-2009 (%) 16. compared to China and Russia.2 -2.7 7. in debt-to-GDP ratio for select countries.8 -0.

5 • FDI in Turkey has shown a steady increase since 2002 due to improving key macroeconomic indicators in addition to achieving political stability.. Insurance has been one of the active segments within financial services as it is underpenetrated while manufacturing is attractive due to cheap labor opportunities for European companies 44% 15% Wholesale and retail trade Electricity.1 0 1.. water and gas Real estate Other 22% * Includes 2010H1 and value for BBVA-Garanti Bank transaction Source: Turkish Central Bank. The value has decreased starting in 2008 due to credit crisis and has started the increasing trend in 2010 1. based on value 4% 6% 7% 3% Financial Services Manufacturing Transport.0 0.5 1. and the increasing trend is expected to continue in 2010 Foreign direct investment in Turkey Turkey FDI Volume (bn USD) and FDI to GDP ratio (%) 25 20 15 10 5 Comments 4.9 9. FDI to GDP ratio has stayed above those of developing countries.0 2.5 2.8 2003 2.* Major Industries Invested in 2006-2009.0 10. Santa analysis .0 1.5 3.9 0. Desktop Research. storage and communications • With the surge of FDI in 2007.0 20.3 FDI-to-GDP FDI 3.0 2002 2004 2005 2006 2007 2008 2009 2010H1.0 7.FAVORABLE INVESTMENT ENVIRONMENT WITH RESERVATIONS FDI has increased considerably from 2002 to the credit crisis. however the decrease thereafter has put Turkey below • Share of energy sector FDI is expected to increase in the near future.2 18.0 22.

intervention of government in commercial matters. some factors still create discomfort for foreign investors Common reservations of foreign investors 1 Legal environment. enforcability of contracts. Santa analysis .FAVORABLE INVESTMENT ENVIRONMENT WITH RESERVATIONS In spite of a favorable investment environment. such as recent tax fine to a large media company. results of elections expected to be held in 2011 may bring a coalition government bringing political instability 5 Potential government intervention. Desktop Research. protection of shareholder rights and legal concepts familiar to private equity are not fully covered by the Turkish legal system. this creates discomfort for foreign investors 4 Political stability concerns. Slow moving legal environment is another disadvantage 2 Increasing current account deficit. is widening with increase in energy prices and appreciating TL as the country's competitiveness is decreased 3 Lack of transparency. and changes in regulations and working environment pose risks Source: Industry Interviews. cash transactions that stay out of the book are widespread in Turkey.

28 1.65 0.81 • International buy-out houses have entered the market to compete for a number of the country’s largest assets as evidenced by Texas Pacific Group’s acquisition of Mey Icki • Increasing confidence in the country’s stability was further displayed in 2007 by KKR’s acquisition of UN Ro-Ro for $1. 2000-2010 (bn USD)* # of deals with known values / total 16/16** 5/5 10/10 18/21 13/27 6/10 Comments • Since 2000.03 2000-4 average 0. Industry Interviews.85 0.45 0. Desktop research.54 1. The increasing trend has started again in 2010 as number of deals started to increase globally as well 0.89 0. domestic private equity funds have shown an increase in activity which has in turn attracted international buy-out houses 11/18 2. Santa analysis .93 1. 2000-2010 Private Equity Investment Value.66 1.2bn • Number of deals kept increasing until the credit crisis.GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS Private equity investments have soared in Turkey starting in 2006 primarily due to stable economic growth Private Equity Investments in Turkey.45 2007 2008 2009 2010YTD Very large deals*** Other deals * Annual investment value only includes deals where value is known ** Includes the total number of private equity transactions within the timeperiod *** Transactions above USD 800m have been categorized as "very large deals" Source: Ernst&Young M&A Reports.09 2005 2006 0.65 0.

3 7 6.5 3 9 2.07 0.7 1.32 0.15 0.24 0. a further USD 653m would have been invested in 2008 Source: EMPEA.61 0.90 0.18 0.15 0.37 0.21 0.5 0. Desktop Research.20 0.40 0.53 0.06 Russia 2008 Emerging Asia Latin America CEE/CIS South Africa India Brazil China Turkey Poland 2007 Comments  Turkey's private equity investment to GDP ratio was above the CEE/CIS average in 2007 and 2008  Among major emerging economies.16 0. South Africa.3 2 7.29 0.29 0. IMF. Santa analysis .GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS Turkey's ratio of private equity investment to GDP is higher than CEE/CIS and Latin America regions whereas lower than certain countries Private Equity Investment as a percentage of GDP (%) 2008 Value – bn USD 28.14 0.67 0. India and Brazil have demonstrated higher ratios in 2007 than Turkey has  If Turkey's ratio was to reach the Emerging Asia average.22 0.4 2.

Santa analysis . Economic Freedom of the World (EFW) Index. Turkey ES 2008 (World Bank Report). Turkish firms will require further financing and this gap can be bridged with private equity * Based on survey with Turkish firms Source: Fraser Institute. Turkey United Kingdom United States Comments  Measure of conditions for private business have improved in Turkey (based on EFW Index) and it is getting closer to those of developed economies. leading to an increase in the number of companies of interest to private equity  Turkey is experiencing growing domestic credit to private enterprises and a transition from a state-owned financial system to more private sector involvement. Even though there are improvements. resulting in easier access to finance...GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS Key drivers of growth for the private equity market have been increased availability of companies and their challenges to accessing finance Key drivers of growth for private equity investment Economic Freedom of the World Index for select countries 9 8 7 6 5 4 3 2 1 0 2002 2003 2004 2005 2006 2007 2008 Major obstacle levels for firms in Turkey (% of companies perceiving the topic as an obstacle) 29 26 18 18 18 17 15 14 9 8 Access to Tax Rates Political Informal Unskilled Finance Instability Competition Workforce All Firms SMEs .

Desktop Research. "IPO Summit" in ISE is making the IPO route more attractive Source: Industry Interviews. Large transactions such as Migros and Un-Ro-Ro were financed by local banks These two drivers are making all stages of private equity investments easier Increasing number of private equity funds operating in Turkey Increasing volume of private equity transactions Improving exit prospects Exit prospects for private equity is improving. Increasing FDI has demonstrated trade buyer interest while increasing number of active private equity funds are positive for the secondary market. Santa analysis .GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS Other key drivers for growth have been availability of local financing and increasing exit prospects Other key drivers of growth for private equity Availability of local financing Private equity funds are able to find local leverage.

GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS Global private equity funds have assets in Turkey while as expected. local players are ahead in terms of number of transactions Private equity landscape in Turkey* # of transactions*** 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Is Private Equity Turkven RHEA Actera Esas Holding Bancroft NBK Capital CVCI Abraaj Capital Bedminster Capital Invest AD Carlyle Group Investcorp Eurasia HSBC PE Providence Swicorp ADM Asian Dev Bank GEM 50 100 150 200 250 300 TPG KKR 1.300 Average Deal Size (USD m)** 0 * The chart does not include all private equity funds operating in Turkey ** Average deal size is calculated using deals with known values within 2000-2010 timeperiod *** # of transactions includes both deals with disclosed and undisclosed values within 2000-2010 timeperiod Source: Ernst&Young M&A Report. Deloitte Private Equity report. Santa analysis .

Desktop Research.GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS Average deal size in Turkey is higher than emerging markets although it is expected to decrease as the availability of medium-size deals increase Private equity deal size and deal sources Private equity deal size comparison of Turkey to other regions (m USD). Industry Interviews. Investment banks are perceived to be less successful in sourcing good deals. GIA Asia Report.Un-Ro-Ro. 2007-2008 435 2007 2008 Comments • Deal size in Turkey is higher than emerging markets average and Asia primarily due to a number of very large deals . EMPEA. Migros to name two – as well as cultural issues related to selling equity at mediumsized enterprises • Deal sizes globally were high due to abundance of credit and a high number of LBO transactions in 2007 215 158 106 107 196 61 69 Emerging Markets 58 66 Asia 38 74 Global Europe Turkey Deal Sources in Turkey 3% Individual Referrers Turkey w/o very large deals* 20% 41% 28% 8% Self-researched&identified Approached by companies Investment bank/brokers Others • Majority of deals in Turkey are sourced through investment banks/brokers although less so than in developed economies. it is expected to increase as the awareness for the asset class increases * Un-Ro-Ro and Migros transactions have been discarded Source: Dealogic. Santa analysis . requiring funds to use other methods of identification • Although "Approached by companies" category is low.

GROWING VOLUME OF PRIVATE EQUITY TRANSACTIONS While there are challenges for private equity funds in Turkey. the landscape is improving in terms of legal. highly skillled individuals work towards understanding fund expectations Source: Industry Interviews. Private equity funds willing to invest in minority deals need to carefully craft legal documents and perform personal due diligence for company owners carefully Scarcity of Human Resources • There is scarcity of individuals that have experienced the various stages of a successful private equity transaction. finance and HR Challenges to sustainable growth for private equity Outdated Commercial Law • There are gray areas in terms of taxation and deal structuring • Bureaucracy and personal liabilities at the board level are barriers to investing Minority Rights Issue • Legal framework is not protective of minority shareholders . Desktop research. Santa analysis . This is especially important for top management positions at target firms • Commercial Law is in the process of being updated helping in creating a better private equity investment environment • As private equity investment increases.

with an average 30 percent annual growth Analysis of Services sector in Turkey GDP by sector in Turkey.BOOMING SERVICES INDUSTRY Since 1998. Santa analysis . 1998-2009 (TL bn) Value added as share of GDP by sector. services sector contribution is generally lower in Turkey – there is room for additional growth Source: Turkey ES 2008 (World Bank Report). the services sector has grown rapidly. 2008 100 100 9 100 2 100 7 100 4 100 5 100 6 100 7 100 1 100 1 140 120 16 24 29 38 31 31 29 27 25 22 100 80 60 40 20 0 1998 2000 2002 2004 Industry 33 51 62 60 62 65 66 67 68 75 77 2006 2008 Turkey (1998) Turkey Czech Bulgaria Poland Hungary Brazil Romania Rep UK US Agriculture Services Agriculture Industry Services • The services sector has not only been the fastest growing in the past decade. but is also hit by the economic crisis to a lesser extent than the manufacturing sector • Sector's relative contribution to GDP increased from 51% in 1998 to 62% in 2008 • When compared to developing economies and the CEE. Desktop Research.

Food&Beverages industry makes up for 14. Construction.8% of total investment value in Turkey within the timeperiod Source: EVCA.BOOMING SERVICES INDUSTRY Retail has been the dominant sector in Turkey whereas TMT is one of the more common sectors for CEE and Asia Private Equity Investment by Industry. Desktop Research. comparison of Turkey to other regions Turkey Private Equity Investment Value By Industry. Agriculture. 2006-2009* CEE Private Equity Investment Value By Industry. 2008 10% 22% 32% 3% 3% 26% 9% 7% 4% 0% 15% 52% 25% 17% 23% 20% 20% 12% Retail Transportation Healthcare Manufacturing TMT Other** * Deals within 2006-2009 timeperiod has been added to make a representative sample due to a low number of deals with known values only in 2008 ** Other includes FSI. GIA Asia Report. Energy and Food&Beverages. 2008 Asia Private Equity Investment Value By Industry. Santa analysis .

060 1. Carlyle Group's investment in Medical Park and Abraaj Capital's investment in Acıbadem Sağlık Hizmetleri are the largest investments in the sector • Turkey's health expenditure per capita is among the lowest in OECD countries. As health spending is correlated to income. Santa analysis .538 Healthcare Food and Beverages Manufacturing TMT Transportation Business Services 9 9 9 7 6 5 1138 973 224 215 1481 220 3. Deloitte Private Equity report.BOOMING SERVICES INDUSTRY Healthcare has been another attractive sector for private equity funds within 2006-2009 timeperiod Private Equity investment in healthcare sector Industry Retail # of deals* Value (USD m)** Health expenditure per capita. Turkey's lower than average figure is expected • Growth in GDP and GDP per capita is expected to increase health expenditure which in turn will affect market growth rates * Includes disclosed and undisclosed deals within 2006-2009 timeperiod ** Includes deals where value is known within 2006-2009 timeperiod Source: OECD Health data 2010. 2008 (USD) 12 2075 7. Ernst&Young M&A Report.696 3.781 1.737 3.213 852 767 Others 5 126 US Germany France UK OECD Czech Poland Republic Mexico Turkey • Healthcare has been the second most invested sector in terms of number of deals.129 3.

ABUNDANCE OF FAMILY OWNED BUSINESSES Abundance of family-owned businesses present both challenges and opportunities for private equity funds Challenges and opportunities Due to Turkey's capitalist heritage. private equity firms can restructure the cost base and put proper policies in place to increase profit margins Source: Industry Interviews. This environment creates a sustainable pipeline for private equity investors. limiting possibilities for strategy change • Good monitoring practices and strict focus on agreed business plan elements have potential to bring results • Owners tend to have a revenue focus rather than EBITDA focus. Santa analysis . level of institutionalization is not high and succession planning is usually weak. there are a large number of family business. tackling critical strategy and marketing issues with a different perspective is beneficial • Implementing corporate governance and a performance management culture becomes a key value creation element CHALLENGES • Owners tend to have an emotional attachment with their companies – View private equity funds as sources of equity rather than the potential best practice it could bring and optimization it could perform – Unrealistic price expectations – Reluctance regarding selling majority stake • Low level of corporate governance results in a low-level of transparency making it harder for outsiders to understand past actions • Lack of data availability is hindering data mining and proper analytics in firms • As the owners are generally the CEOs. yet comes with its own challenges OPPORTUNITIES • As Turkish company owners are entrepreneurial in nature and are generally not strategic-thinkers. private equity funds are usually not able to change the CEO.

MARKET GROWTH AS AN IMPORTANT VALUE CREATION LEVER Market growth has been the dominant value creation lever so far. Operational improvements will require experience. expertise and process 14% 19% 21% 21% 26% 21% 35% 36% Last 2-3 years Other Next 2-3 years Leverage Market Growth Operational Improvement Multiple expansion * Findings are the result of a survey with private equity funds and are based on estimates rather than statistical analysis Source: Industry Interviews. the share is expected to stay about the same in the upcoming years Value creation lever analysis Private Equity Value Creation Levers in Turkey (%)* 4% 3% Comments • Substantial amount of private equity investment has been in retail. Desktop Research. healthcare sectors which have been high growth sectors in Turkey confirming survey results • Importance of leverage is expected to decrease slightly in line with global expectations due to debt becoming more expensive and financing terms more onerous • Operational improvements through best practice implementation and optimization will drive profitability and this lever is expected to increase in the coming years. Santa analysis . in line with global expectations.

tax and business environment within the country fully preacquisition and hire skilled people for operational excellence during monitoring Source: Industry Interviews. implement management dashboard and perform KPI benchmarking • Sector data including market size.There are key challenges for private equity funds operating in the Turkish market Main challenges throughout the life of a successful investment Pre-Acquisition • Even though third parties conducting financial and legal due diligence is widely available. transparency in finance and accounting are key issues Exit • Emerging market appetite worldwide needs to be maintained in order for favorable private equity exits to increase • In order to demostrate company's true value. parties conducting insightful commercial due diligence. it is important to increase transparency. Santa analysis . market share is hard to find making the due diligence effort more cumbersome • Increasing multiple expectations by target companies due to a variety of reasons including emotional attachment is an obstacle IMPLICATIONS • Private equity funds need to understand the legal. especially for mid-market are scarce Monitoring • High level of entrepreneurship in the country is resulting in poor strategic focus and unawareness of global trends • Company owners generally have topline focus rather than EBITDA focus • Implementing change requires higher level of effort due to resistance from owners and company employees • As some business has been conducted off the record preacquisition.

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due diligence. it is important to increase transparency. cost reduction and 100-day plan Mapping of private equity fund challenges to services offered Pre-Acquisition • Even though third parties conducting financial and legal due diligence is widely available. parties conducting insightful commercial due diligence.There are three main services offered to private equity funds. implement management dashboard and perform KPI benchmarking • Increasing multiple expectations by target companies due to a variety of reasons including emotional attachment is an obstacle 1 Due Diligence 2 Cost Reduction 3 100-day plan . transparency in finance and accounting are key issues Exit • Emerging market appetite worldwide needs to be maintained in order for favorable private equity exits to increase • In order to demostrate company's true value. market share is hard to find making the due diligence effort more cumbersome Monitoring • High level of entrepreneurship in the country is resulting in poor strategic focus and unawareness of global trends • Company owners generally have topline focus rather than EBITDA focus • Implementing change requires higher level of effort due to resistance from owners and company employees • As some business has been conducted off the record preacquisition. especially for mid-market are scarce • Sector data including market size.

competitors and company’s competitive advantages • Identifying the potential risks to be faced by the investor post-acquisition and developing appropriate risk mitigation strategies . various other research methods and analyzing the sustainability of these advantages • Performing reality check regarding the management’s business plan taking into account the market. sector interviews. customer and supplier concentration figures and change in these figures over time • Identification of the firm’s competitive advantages following management. risks and whether competitive advantages are sustainable within the planned investment period. It is important for companies/investors looking to acquire or partner with a company to better understand the market.1 Due Diligence and benefits to firms Due Diligence involves providing an objective third party opinion to companies/investors looking to acquire or partner with target companies. competitors. purchasing behaviour and other criteria • Analyzing current state of domestic and global competitiors and identifying strenghts/weaknesses • Identifying risks and critical success factors within the market • Analyzing product profitability. Benefit #1: Market and Competitor Analysis Demand Curves and Growth Rates Sales Channels Benefit #2: Current State Assessment Customer / Supplier Competitive Concentration Advantages Benefit #3: Business plan and risk analysis Business Plan Analysis Risk Analysis • Identifying domestic and global market size and determining the growth forecast for the market • Analyzing the various customer segments within the market in terms of size.

target firm’s expectations of the future were understood and reality check was performed • The attractiveness and growth potential of agriculture sector both domestically and globally • Growth potential of the target firm and the risks associated with reaching this target • The management’s business plan Goal • Providing opinion regarding the feasibility of the management’s business plan after gaining an understanding about the market. past growth rate and market growth forecasts • Following a thorough analysis of target company’s financial and accounting data. important metrics such as customer and supplier concentration was analyzed • Through interviews with the firm’s domestic and international customers and suppliers. critical success factors and risks Results • It was determined that the agriculture sector is expected to grow both domestically and globally • As a result of customer and supplier interviews. target firms competitive advantages were determined by product and sustainability potential was analyzed • Following an analysis of management’s business plan.1 Project Example: Private Equity – Due Diligence Customer’s Need • The private equity fund requested a third party opinion before acquiring minority stake in a Turkish agri-trading and processing company. target firm’ss competitive position and advantages were identified • Through a review of management’s business plan and management interviews. it was reported to the private equity fund that plans regarding certain products were realistic while some were overly aggressive . This was followed by the identification of market size. Opinion was requested regarding: Highlights of Solution Proposed: Activities performed during the project can be summarized as below: • Using a variety of resources. agriculture sector was defined both domestically and globally.

top-down bottom-up analysis to identify cost reduction potential and development of project progress measurement tools to make the cost cuts sustainable Benefit #1: Understanding of cost drivers and trends Company Cost Map Benefit #2: Identification of cost reduction potential Prioritization Matrix Benefit #3: Measurement of project progress Measure Sheets Cost Reduction Realization Trend Analysis Benchmarking • Based on the analysis of company's overall OPEX structure. KPIs are determined for each project and measure sheets are developed • Project KPIs are tracked to calculate revized and realized cost reduction figures • Cumulative figures are presented to top management .2 Cost reduction and benefits to firms Cost reduction projects involve a thorough analysis of company's cost buckets. performance matrix tool developed and used as data source for top-down and bottom-up analysis • Each cost bucket is compared at different timeperiods to understand increase/decrease trends and cost drivers • Company's KPI values are calculated and compared to benchmark figures to identify top-down cost reduction potential • Meetings/workshops conducted with relevant departments to perform bottom-up analysis • Cost reduction projects are identified and prioritized based on impact and ease of implementation • In order to make cost cuts sustainable.

Client has asked to: • Understand cost drivers and benchmark various cost buckets to peer operators Highlights of Solution Proposed: Activities performed during the project can be summarized as below: • Operator's overall OPEX structure analyzed and clustered into four main cost blocks: Marketing/Sales/Customer Care. IT and Billing) • Propose cost reduction initiatives where inefficiencies are identified using both topdown and bottom-up analysis methodology • Measure effectiveness of cost reduction projects as part of the Cost Reduction Initiative PMO • Important cost buckets were compared at different time periods to perform a trend analysis and understand cost drivers • Benchmark figures from peer operators were used to identify OPEX cost reduction potential.2 Project Example: Leading Telecom Operator OPEX Cost Reduction Customer’s Need • Turkish incumbent telecom operator's EBITDA margin was expected to decrease as the competition in the fixed line business is increasing and number of subscribers is falling. Network Operations and G&A (incl. Network Operations and Technical Field Services areas are expected to decrease as a result of a list of cost reduction initiatives • Projects to reduce cost were scoped and discussed with project owners. General&Admin. Technical Field Service. potential was discussed with department personnel to confirm the area using a bottom-up analysis Goal • Operational costs of the operator at Sales&Marketing. KPIs were determined to measure project progress Results • A significant amount of cost reduction potential was identified and discussed with top management for support • Projects were scoped to decrease OPEX at the telco operator .

A 100-day plan with well targeted actions can have a significant impact on the success of a deal. operations. assets and IT infrastructure • Perform risk assessment and develop a risk mitigation plan • Develop employee. all other initiatives • Develop initiative template for each potential opportunity • Develop dashboard wıth KPIs and target values plus tracking process for value capture implementation . Wave I prioritized initiatives. customer retention and supplier communication plans • Develop PMO office structure and processes to bridge gap between strategy and execution • Review strategy with management and private equity firm to gain alignment • Analyze key elements of the strategy (investigate upside opportunities.3 100-day plan and benefits to firms A 100-day plan is a detailed agreement on the steps necessary to achieve strategic and operational goals postsigning. a continuous change management effort is necessary Benefit #1: Assurance of business continuity PMO office structure and processes Risk assessment and mitigation plan Benefit #2: Refinement of strategy Strategic analysis Impact of strategic initiatives Benefit #3: Development of Value Capture Plan Initiative prioritization Dashboard with KPIs • Gain full transparency into finance. risks. As the new plan will bring change to the organization. ensure they are linked to 100-day plan • Perform screening analysis to identify possible areas of opportunity • Prioritized list of initiatives broken down into three categories: quick-wins. new developments post-signing) • Prioritize major strategic initiatives based on impact and ease of implementation.

with robust analysis. preclosing First 100 days Medium / long-term Exit Key Elements Out of scope • Banker road shows • Legal due diligence • Accounting due diligence • Regulatory filings In scope • Governance and organizational change • Risk management and maintenance of business • Refinement of strategy and investment thesis • Creation of value capture plan. clear KPI targets and budgets • Alignment and mobilization of the company .3 Scope of the 100-day program Initial Due Diligence Deal Structuring Postsigning.

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Turkey Project Experience (selected) > Led a team of consultants to define the roles and responsibilities of branch and regional sales staff. London Business School London.OZAN CIGIZOGLU Citizen: Turkish Education 2007 MBA. for a leading Turkish bank > Managed the project to get executive buyin and to implement Segment Management within the marketing organization of a leading telco operator in South Africa > Due diligence for investments of an international private equity fund > Feasibility analysis and business planning for clients in variety of sectors 2001 20012005 Cap Gemini Ernst & Young. marketing efficiency and organization > Business Process Redesign > Information Technology . New York. ABD Languages > Turkish > English Industry Experience > > > > Telecommunications Financial Services Retail Private Equity Capabilities > Cost Optimization > Sales. UK Computer Engineering. IN. Purdue University. Istanbul. ABD Professional Experience Since 2009 20072009 Santa Consultants Peppers&Rogers Group. sales processes for retail and commercial business units.

Turkey Professional Experience Since 2010 JulyAugust 2010 Santa Consultants Project Experience (selected) > Supported the cost optimization activities in the Sales&Marketing. Sabancı University.MERT ULUFI Citizen: Turkish Education 2011 Manufacturing Engineering. General&Admin Departments of a leading Turkish telecom operator > Business planning and feasibility analysis for clients in variety of sectors > Demand planning and market analysis for a retail company Deloitte Touche Tohmatsu Istanbul. Turkey Languages > Turkish > English > German Industry Experience > Private Equity > Telecom Capabilities > Operational Improvement > Cost Optimization > Market analysis . İstanbul.

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and also by helping implement these recommendations • We have a collaborative working style and use an analytical and structured approach to solving business issues • Organizational: Change Management • Operational: Business Process Redesign.About Santa Consultants About Santa Consultants Who are we What are we working on • We focus on the following areas: • Santa Consultants helps companies improve their business through formulizing innovative solutions to their issues • Strategy: Due Diligence. 100-day plan • We provide value to our clients by making recommendations for their business issues. Cost Reduction • Technology: CRM System Analysis .

to reduce cost at Sales&Marketing and General&Admin departments and analyzing opportunities for low cost energy sourcing at a leading telecommunications operator in Turkey Supported the equipment manufacturer during its partner/vendor selection process to increase its presence in the Turkish market Global Telecommunications Equipment Manufacturer Services Company Advised a supply chain consultancy firm regarding product portfolio management and sales best practices * Partly subcontracted from a global management consulting firm . carried out market.Santa Consultants has completed the projects below COUNTRY CUSTOMER ENGAGEMENT TOPIC International Retail Chain* Advised the retail company board of directors regarding strategic options for the non-performing business in Turkey. competitor and capability analysis TURKEY Private Equity Company* Performed commercial due diligence for a global private equity company planning to invest in an agri-commodities trading and processing company in Turkey Leading Telecom Operator* Managing the initiatives. within the Program Management Office.

Santa Consultants has completed the projects below COUNTRY CUSTOMER Media Company – Internet sector ENGAGEMENT TOPIC Managed the development of the growth strategy for an internet business within the photosharing and printing sector and supported the implementation this strategy TURKEY Leading Telecom Operator SAUDI ARABIA Developed and executed a change management plan to ease the migration to the new CRM software (Siebel) for the employees and to increase user adoption within all business units of a leading telecommunications operator in Saudi Arabia Energy Company NORTHERN CYPRUS Performed feasibility analysis for a company looking to invest in the energy sector in Northern Cyprus * Partly subcontracted from a global management consulting firm .